Home sellers are once again making repairs and accepting
contingencies as we move toward a more balanced housing
market
SANTA
CLARA, Calif., Aug. 30,
2022 /PRNewswire/ -- The days of frenzied sales
with waived inspections might be behind us, as buyers regain a bit
of bargaining power. According to a new
Realtor.com® survey, 92% of people who sold
their home within the last year accepted some buyer-friendly terms
and 41% accepted some contingencies in the contract. Additionally,
among those surveyed, the number of buyers asking for repairs based
on the inspection results more than doubled in recent months and
the number of sellers refusing to make repairs dropped to zero.
Whether it be financing, timing, repairs or flexibility, the art of
negotiation is returning to the housing market.
Realtor.com® surveyed 449 people who sold their home
within the last 12 months. To highlight the shifting market,
responses were collected based on how long ago the home sold.
"Our survey shows that the overheated housing market of the past
two years, which predominantly favored sellers, is beginning to
regain a sense of normalcy, which is welcome news for home buyers,"
said George Ratiu, manager of
economic research, Realtor.com®. "The combination of
higher mortgage rates and prices have noticeably cooled demand over
the first half of the year. In addition, as more homeowners have
been listing their properties, rising inventory is motivating more
of them to resort to price cuts in order to successfully close
transactions. At the same time, even as we are seeing a shift
toward a more buyer-friendly market, it's worth noting that the
majority of recent sellers are still satisfied with the outcome of
their home sale."
Room for negotiation
Despite the extremely competitive housing market of the past
several years, the survey suggests that negotiation is back on the
table – for both price and contract terms. Homes that sold at- or
above-asking price peaked at 82% in Feb. and March of 2022 when
mortgage rates were below 4% and dropped to 69% for homes that sold
within the last month when rates hovered near 6%. By contrast, the
share of sellers who sold below-asking jumped from 18% in Feb. and
March 2022 to 31% for those sold
within the last month.
Additionally, 92% of all recent sellers accepted some
buyer-friendly terms. Those included:
- 41% Accepted some contingencies in the contract (appraisal,
home inspection, home sale, financing, etc.)
- 32% Dropped the price because the home didn't meet
appraisal
- 32% Paid for some or all of the buyer's closing costs
- 30% Had to be flexible on the ideal timeline for closing
- 29% Paid for repairs to the home after the appraisal
- 28% Were not able to rent the home back after close despite
asking to
Inspections and repairs make a
comeback
A professional home inspection is always a good idea for
homebuyers, but during the housing market's peak, many buyers
waived this important step in order to be competitive with their
offer. Of those who sold within the last month, 95% reported that
the buyer requested a home inspection, up from 82% of those who
sold 6-12 months ago. More than twice as many buyers of homes that
sold in the last month asked for repairs as a result of the home
inspection (67%) compared to homes that sold 6-12 months ago (31%).
The number of surveyed sellers who refused to pay for any repairs
during that time dropped from 8% to zero.
Nearly all respondents (95%) who sold their home in the last
month made some updates or repairs to the property prior to
listing, compared to 71% who sold 6-12 months ago. The average
amount that recent sellers spent on repairs prior to listing was
$14,163.
Not all bad news for
sellers
Despite the shifting market, homes are continuing to sell
quickly. In fact, 22% of people who sold within the past month said
that their home went under contract in less than a week. This is up
from 14% of people who sold 6-12 months ago. Additionally, 92% of
people who sold their home in the past month were satisfied with
the overall outcome of their home sale, down slightly from the 98%
who were satisfied 6-12 months ago. Nearly half (46%) of sellers in
the last month were satisfied with the price of their home sale,
compared to 72% of those who sold 6-12 months ago.
Changing needs motivate
sellers
After two years of the pandemic, sellers' needs have changed,
prompting a search for another home. Of those who sold within the
last year:
- 31% were looking for different amenities/features
- 29% found that the home no longer met the needs of their
families
- 26% needed a home office for remote work
- 23% wanted to live closer to family and friends
- 20% felt they bought their home in a hurry/panic and decided it
was not the right home for them
- 17% no longer needed to live near an office
Methodology
This survey was conducted online within the United States from Aug. 9-12 among 3,001 adults, of which 449 had
sold their home in the last 12 months. The sampling margin of error
of this poll is plus or minus 1.8 percentage points. The results
reflect a nationally representative sample of U.S. adults. Results
were weighted for age by gender, region, race/ethnicity, and income
where necessary to align them with their actual proportions in the
population.
About
Realtor.com®
Realtor.com® is an open real estate marketplace built
for everyone. Realtor.com® pioneered the world of
digital real estate more than 25 years ago. Today, through its
website and mobile apps, Realtor.com® is a trusted guide for
consumers, empowering more people to find their way home by
breaking down barriers, helping them make the right connections,
and creating confidence through expert insights and guidance. For
professionals, Realtor.com® is a trusted partner for
business growth, offering consumer connections and branding
solutions that help them succeed in today's on-demand world.
Realtor.com® is operated by News Corp [Nasdaq: NWS,
NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information,
visit Realtor.com®.
Media Contact
nicole.murphy@move.com
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SOURCE Realtor.com