Real Estate News: Sellers in the Drivers’ Seats

When the real estate market plummeted in 2006, sellers found themselves doused with anxiety and financial worries. Within months, the market went from being a seller’s market to one that was dominated by buyers – with buyers calling nearly 100-percent of the transaction details.

As the economy begins to recover, buyers are finding themselves taking a backseat to sellers. As buyers’ financials become more solid, sellers are once again finding themselves in the drivers’ seats. The demand for purchasing a home has increased, which puts availability in demand.

In May 2013, it is estimated that more than 2.16 million homes were for sale nationwide, down 13.6-percent from a mere 12 months ago. With more buyers entering the real estate market and fewer homes for sale, sellers are finding themselves in prime negotiating positions. In fact, statistics show that while 42-percent of potential homebuyers made an offer on a home over the past six months, only 11-percent of those offers were accepted.

This is causing buyers to rethink their home purchase positions. Today, nearly 85-percent of buyers claim they are willing to compromise on a purchase, provided the deal closes. Of that number, nearly half said they could afford greater flexibility on the closing date, while 31-percent said they would simply purchase a home in “as-is” condition to forgo repair negotiations. In an astonishing statistic, 29-percent of potential buyers say they would be willing to spend more money on a home purchase when compared to their original home buying plans.

Homebuyers are also finding that their giant wish list of expectations when shopping for a home is going unfulfilled. This is due largely in part to a decrease in available housing, which makes homebuyers have to settle for less than they originally anticipated. A recent study indicated that half of homebuyers would forgo a swimming pool, 49-percent were willing to part with a finished basement and nearly 37-percent would consider not requiring walk-in closets or an updated kitchen.

Studies are also showing that homebuyers are willing to purchase a home further from work, the city or families. This is especially helpful for rural areas that were hard hit with the housing recession.

Unfortunately, the banking industry has yet to make a full recovery and obtaining a home loan has been a difficult process for many homebuyers. Sellers want to see that a homebuyer is fully qualified and having a fast closing date means less red bureaucratic tape from big banks. Fortunately, Better Than Loans offers a number of alternative financing services, including hard money loans. As a hard money lender they specialize in fast loan funding, including bridge loans, which are perfect for buyers that want to purchase a home before putting their current home on the real estate market.