Fort Lauderdale Area Home Buyers Are Regaining Some of Their Negotiation Power in Today’s Real Estate Market
If you’re thinking about buying a home in the Fort Lauderdale area today, there’s welcome news. Even though it is still a sellers’ market in Fort Lauderdale, it’s a more moderate sellers’ real estate market than last year. And the days of needing to waive contingencies or pay over the asking price to get your offer considered have softened and maybe has come to an end
Today in the Fort Lauderdale Real Estate Market, you should have less competition and more negotiating power as a buyer. That’s because the intensity of buyer demand and bidding wars is easing this year. So, if you were or are exhausted from not getting our offer accepted and of bidding wars w here are two trends that may be just what you need to re-enter the market.
1. The Return of Contingencies in Offers
Over the last two years in Fort Lauderdale, more buyers were willing to skip important steps in the home buying process, like inspection, and if it was a cash deal appraisal to try to win a bidding war. But now, fewer people are waiving the inspection and appraisal.
The latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection and appraisal is declining. And a recent survey from realtor.com confirms more sellers are accepting offers that include these conditions today. According to their August study:
95% of sellers reported buyers requested a home inspection
67% of sellers negotiated with buyers on repairs as a result of the inspection findings
This goes to show buyers are more able to include these conditions in their offers today and negotiate as needed based on the outcome of the inspection.
2. Fort Lauderdale Home Sellers Are More Willing To Help with Closing Costs
Generally, closing costs range between 2% and 5% of the purchase price for the home. Before the pandemic, it was a common negotiation tactic for sellers to cover some of the buyer’s closing costs to sweeten the deal. This didn’t happen as much during the peak buyer frenzy over the past two years.
Today, as the Fort Lauderdale real estate market shifts and demand slows, data from realtor.com suggests this is making a comeback. A recent article shows 32% of sellers paid some or all of their buyer’s closing costs. This may be a negotiation tool you’ll see as you go to purchase a home. Just keep in mind, that limits on closing cost credits are set by your lender and can vary by state and loan type. Work closely with your loan advisor to understand how much a seller can contribute to closing costs in your area.
Regardless of the extremely competitive Fort Lauderdale housing market of the past several years, today’s data suggests negotiations are starting to come back on the table. This is good news if you’re planning to enter the housing market. To find out how the market is shifting let’s connect.
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