Real Estate Sellers: In the Drivers’ Seats
In 2006, when the U.S. real estate bubble burst, home sellers suffered from distraught worry and anxiety. Within months, homeowners went from a seller’s market to a buyer’s market, which meant that buyers were in control of pricing and contract considerations.
As the economy starts to recover, homebuyers are finding themselves in the backseat, not in charge of negotiations. As buyers’ financials become more solid with unemployment in certain areas decreasing, sellers are once again in the drivers’ seats. The market demand for home purchases has increased, which is helping create availability demands.
In May 2013, more than 2.16 million homes were currently for sale nationwide. This number was down 13.6-percent from the previous 12 months. As more buyers begin to enter the real estate market, combined with fewer available homes, sellers are finding they are primed for a perfect negotiating stance. Statistics show that 42-percent of potential homebuyers have made an offer on a home over the last six months, while only 11-percent of these offers were accepted by sellers.
The current market is causing more buyers to reconsider their home purchase options. Approximately 85-percent of buyers now claim they are more than willing to compromise on their purchase requirements, provided the transaction closes. Nearly half of that same group said they would be willing to offer flexibility in relation to the closing date, while 31-percent of potential buyers said they would consider purchasing a home “as is” in order to avoid repair negotiations. More than 29-percent of potential buyers said they would consider spending more money than they originally anticipated on a home purchase.
Homebuyers are also letting their home features wish lists fall to the wayside. With available housing decreasing, more homebuyers are forcing themselves to settle for less than their original expectations. A study indicated that more than half of homebuyers said they would forgo their swimming pool requirements, with 49-percent opting to part with a finished basement and 37-percent not making an updated kitchen or walk-in closets deal breakers.
Many studies highlight that homebuyers are more willing to consider purchasing a home further from the city, work or families. This news is especially positive for rural areas, which sustained a difficult blow during the real estate recession.
While the banking industry has yet to make a full economic recovery, obtaining a home loan is more difficult than ever. Sellers want some sort of guarantee that homebuyers are approved for a loan. My Hard Money Lenders offers an alternative to traditional lender financing, including offering hard money loans. My Hard Money Lenders offers fast loan funding for bridge loans. This type of loan is ideal for buyers that do not want to sell their current residence until they purchase a new one.