"In markets where inventory is outpacing demand and contracts are falling through, sellers are getting desperate. This is an opening for motivated buyers: homebuilders and homeowners are cutting asking prices and, in some cases, offering incentives or concessions. "There are more homes to fill than there are buyers out there," Daryl Fairweather, chief economist at Redfin, told Business Insider. "Those are going to vary by geography, but especially in places where there's a lot of new construction, it is a buyer's market.""
"A lower purchase price has many benefits. Because the down payment is a percentage of the price, a reduction cuts your upfront costs. It also pays off over time: If you have a mortgage, you'll borrow less, so your principal-and-interest payment decreases, reducing the total interest paid over the life of the loan. Fairweather says builders are more likely than existing homeowners to agree to a price cut."
Inventory is outpacing demand in many markets, shifting power to buyers and prompting sellers to offer concessions. Homebuilders and some homeowners are cutting asking prices to attract buyers and sometimes offering incentives. Buyers can negotiate lower purchase prices, which reduces down payment and long-term interest costs, or ask for mortgage-rate buydowns. Sellers may agree to cover repairs, offer credits, or include closing-cost assistance. Builders frequently show more willingness to negotiate because unsold homes carry carrying costs. Existing homeowners may resist deep cuts if they hold low mortgage rates. Each concession carries trade-offs such as reduced seller flexibility or short-term cost shifts.
Read at Business Insider
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