Why should a buyer buy a home in today's market?
If we don't know the answer to that, then it's gonna be a struggle to talk to buyers about why they should buy. Because everybody thinks they should wait:
"Shouldn't I wait for prices to come down? Shouldn't I wait for interest rates to come down? Shouldn't I wait for the recession to kind of come and go?"
There's gonna be a lot of those mindsets. And we have to be able to answer the question: "Why should I buy now?"
And really we have to sell ourselves first before we sell anyone else. So I'm gonna give you four reasons here that someone should consider buying now as opposed to waiting or not buying at all.
1. Some sellers are panicking.
Why are they panicking? Because they put their home on the market yesterday and they expected just to get overrun with buyers. Then maybe two or 3, 4, 5 days goes by and they still don't have multiple offers. They don't even have very many showings. So they begin to panic. And that panic often can mean that they overshoot the mark on price reductions. And they're willing to just do anything to get that property sold. Not every seller's in that category, but there's some sellers that are in that category.
So there's an opportunity there for buyers that are sharp, that are savvy to take advantage of some sellers that begin to panic.
2. There's less competition.
Every time that interest rate goes up by 1%, it takes 10% of the buyer pool out of the market.
And that means there's a lot less buyers you're competing with.
Whereas a year ago you had to do escalation clause, multiple offers on everything. Now there's less buyers. And because there's less buyers, you as a buyer become more valuable. Which means that you can negotiate much, much, much better.
So more listings to choose from. There's a lot more properties out there to look at. There's less competition.
3. Price reductions are accelerating across the country.
We're seeing the fastest rise of price reductions we've seen in years. When you look at that, and begin to study your local market and look at how many price reductions occurred in the last 30 days. It'll be a mind blowing number. Be able to quote that number to your buyers. "We had a thousand price reductions in the last 30 days alone." "Last a week, we've had 510 price reductions. There's a lot of bargains starting to happen in the market."
"This is the time where people, you know, are really finding some good buys out there. Remember, you're not buying the market, you're buying a very specific property. I wanna make sure you get a great deal."
4. Fewer multiple offers, but also better negotiation strategy.
I can come in even sometimes a little bit less than full price today. I don't have to give up inspections. I can actually ask for closing costs. I can ask for repairs to be done — much, much better position for buyers.
Buyer's got a lot more power today and what a great time to flex that power. As a buyer, interest rates are higher, but they're still historically low. So when you look back and you ask your parents what their first house was in terms of interest rates or your grandparents, they're gonna say a higher number than what you can get right now.
Most of the time, like for me, for instance, my first house, I was happy to get it is 10 and a half percent. And that was a bargain compared to what it was like a year earlier than that.
So when you talk to these people, your parents, your grandparents, you're gonna find that hey paid how much higher interest rate five and a half. Sounds like a lot or six sounds like a lot, but relatively speaking, it's not.
Remember: we're not marrying the rate. We're dating the rate. We're marrying the house. If interest rates come back down, we can get a better deal later on.
What we wanna do is lock in that good deal that we can get today.
So lots of things we should be talking about with buyers. Remember the first person we have to sell is ourselves. But this is now a great time to be a buyer in the marketplace. You have such strength, use that strength, go out there and flex a little bit.
Have a great day, good song. And I hope this helps you in your local marketplace.
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