Yahoo Finanza Real Estate Experts: How To Negotiate Home Prices in 2024
From record-high mortgage rates to limited supply, the housing market has changed significantly over the past few years. If you are hoping to buy or sell your home this year, it is important to understand the factors that may affect your home price. Navigating the housing market in 2024 is a bit different than it has been in the past.
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At GOBankingRates, we asked real estate experts to explain how the housing market has changed in the past year and how you can negotiate home prices in 2024.
Negotiate a Reduction on New Builds
“In 2024, buyers will have a rare chance to haggle over the price of newly constructed homes, particularly since builders will be facing difficulties and lower sales rates,” said Danny Margagliano, an experienced Realtor and owner of Destin Property Expert.
According to HomeLight, there are a few ways that individuals can negotiate a reduction on newly built construction. You may be able to negotiate financing by asking the builder to pay the closing costs or a year’s worth of HOA (homeowners association) fees. You may also be able to negotiate the cost of the lot itself or upgrades on the property. The more research you do, the more likely you will be able to secure a better home price.
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Time It Right
Margagliano also suggests using an effective timing strategy.
He said, “When negotiating the price of a home, timing is everything. Buying off-plan, when builders are trying to fulfill their targets towards the end of the year, or when there are only a few remaining properties in a development are all common times to find opportunities for deals.”
Prioritize a Home Inspection
“Something a lot of people have done over the past few years as a negotiation tactic has been to forgo a home inspection in order to secure a sale,” said Seamus Nally, CEO of TurboTenant. “This is something I highly advise against doing.”
He continued, “Going forward in 2024, I want to see buyers prioritizing the home inspection because not only will it highlight problems that need fixing, but it will provide evidence for better negotiation in favor of buyers. Housing supply should be increasing this year, so buyers should prioritize getting a home that has passed an inspection favorably rather than accidentally agreeing to buy a home that has costly damage simply to secure the sale.”
Think Outside the Price
If a seller is unwilling to negotiate the price, consider asking for other discounts or upgrades.
Margagliano explained, “Buyers have the option to haggle for extra benefits including stamp duty payment, fixtures, fittings, and white goods in addition to the sale price. Securing a decent deal requires knowing the worth of these extras and making sure they meet your demands.”
Get Preapproved for a Mortgage
Andreis Bergeron, VP of sales at Awning, said, “Navigating the housing market in 2024 requires a blend of traditional diligence and an appreciation for the nuances of current economic factors. Interest rates, inventory levels, and economic sentiment play pivotal roles.”
He continued, “For example, in a market where inventory is low but demand remains high, buyers should focus on being pre-approved for mortgages to move quickly on opportunities.”
Understand the Seller’s Motivations
“Negotiating a favorable price in 2024 involves understanding the seller’s motivations and aligning them with your terms,” noted Bergeron. “This could mean accommodating a longer or shorter closing period based on the seller’s circumstances.”
He added, “Recently, a buyer I advised succeeded in lowering the purchase price by agreeing to a seller’s need for a leaseback agreement, which allowed them to stay in the home for several months post-sale.”
Utilize Technology
When asked whether anything was different about negotiating the housing market this year, Bergeron said, “Yes, the rise of technology and data analytics in real estate has shifted some traditional strategies. For instance, with tools that predict market trends and valuations, buyers and sellers can enter negotiations armed with a data-backed understanding of a property’s worth and potential future value.”
He added, “This shift means that negotiations are becoming more informed, with each party bringing a higher level of data to the table, thus changing the dynamics and potentially speeding up the decision-making process.”
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This article originally appeared on GOBankingRates.com: Real Estate Experts: How To Negotiate Home Prices in 2024
