More good news for homebuyers: A new Realtor.com survey finds sellers are making more concessions to lure buyers into signing contracts.
The survey, called Bargaining Power Back, looked at 3,001 responses, including 449 of those who sold their homes in the past 12 months.
It found that new sellers were facing more pressure from buyers in the market than those who sold last year.
(Realtor.com is owned by the same parent company as MarketWatch.)
The report tracks a previous study from Redfin, which also found that buyers are gaining negotiating power in the market.
According to Realtor.com, 92% of home sellers who sold within the past year agreed to some buyer-friendly terms. 41% accepted some contingencies in the contract.
But those who sold in recent months saw a slight increase in buyers’ orders: According to the survey, the number of buyers who ordered repairs based on inspection results has doubled in recent months. The number of sellers who refused to make repairs in the past few months has fallen to zero.
““The frenetic housing market of the past couple of years, which has mostly favored sellers, is beginning to regain a sense of normalcy.”“
“The overheating housing market of the past two years, which has mostly favored sellers, is beginning to regain a sense of normalcy,” George Ratio, director of economic research at Realtor.com, said in a statement.
Mortgage rates have doubled since last year, recession fears have pushed home buyers to the sidelines, and demand has subsided. Ratio said home sellers have adjusted accordingly, and as listings increase, they have had to “resort to price cuts,” “in order to successfully close transactions.”
Buyers were better able to negotiate terms like contingencies in the contract, which includes things like appraisal, home inspection, financing, etc.
About a third of sellers lowered the price because the home did not meet appraisal, and another third paid “some or all” of the buyer’s closing costs; 30% should be flexible in the ideal closing schedule, and 29% paid for repairs after evaluation.
For example, the percentage of sellers who sold their homes below asking price increased to 31% over the past month, compared to 18% in February and March.
About 95% of respondents who sold their homes in the last month made some repairs or updates to their property before it was listed. That’s up from 71% of sellers who did the same thing before selling 6 to 12 months ago.
The average amount spent was about $14,163.
Ratio noted that sellers were not far from happy. The majority are still happy with the outcome of their home sale.
Homes are still selling quickly, with 22% of homes contracted out in less than a week.
Do you have ideas about the housing market? Write to MarketWatch reporter Aarthi Swaminathan at aarthi@marketwatch.com