The national media often paints a grim picture of the housing market, but according to Joel Sandman, a realtor, 2023 might actually be a surprisingly favorable time for prospective homebuyers. In his video "Ways To Win As A Buyer 2023 | Home Buying Tips 2023," Sandman breaks down several compelling reasons why the current market could work to your advantage.
Gone are the days of frantic bidding wars and blink-and-you-miss-it home viewings. Sandman highlights that homes are now staying on the market longer, giving buyers a comfortable few weeks to explore properties rather than just days or hours [00:40]. This increased time, coupled with more available inventory, translates to greater selection and a much-needed boost in buyers' negotiating power [00:50].
A significant shift in the market is the newfound willingness of sellers to make concessions and perform repairs – a rarity in the preceding 18 months [01:12]. This opens up several opportunities for buyers:
Closing Costs: Sellers are now more open to covering closing costs. This can be strategically used for temporary buy-downs, such as a 2-1 loan, which lowers your interest rate for the first two years, providing a buffer and allowing for refinancing if rates drop [01:32].
Adjustable-Rate Mortgages (ARMs): If you anticipate a shorter stay in a home (e.g., 3-4 years due to relocation), an ARM could be a smart choice, offering a lower initial interest rate [01:53].
Repairs: Buyers now have room to negotiate on significant material issues identified during inspection, like problems with the roof, windows, or HVAC system [02:19].
The headache of appraisal gaps, where the appraised value of a home was significantly lower than the offered price, forcing buyers to pay the difference out of pocket, is also less common now [02:52]. This provides greater financial predictability for buyers.
Joel Sandman encourages viewers to share their thoughts on the current market and offers his contact information for those looking to buy, sell, or understand their home equity. If you've been on the fence about homeownership, 2023 might just be the year to make your move!
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