LV BUYER ALERT! Sellers Still Making Concessions – How to Get Yours
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Today, I'd like to discuss the shifting dynamics in the Las Vegas real estate market. Not too long ago, homebuyers were in a frenzy, willing to pay well above asking prices and forgoing contingencies just to secure a home. It was a seller's market fueled by high demand, low interest rates, and limited inventory.
However, things have changed since then. As per the National Association of Realtors, Las Vegas ranked fourth in the number of transactions with concessions in the fourth quarter of 2022. And it's projected that the first quarter of 2023 will see an even higher percentage of properties sold with concessions, reaching a staggering 61.3% of transactions in Las Vegas.
Interestingly, other Western cities like San Diego, Phoenix, and Portland also ranked high in this regard. While many parts of the country still experience low supply and high demand without any price decreases, the Western market, including Las Vegas, has seen some significant declines in prices.
So, where are sellers making concessions, and how are buyers benefiting from these changes in the market?
First and foremost, sellers are making concessions in prices. In the past, buyers were willing to pay well above the asking price, but now sellers are more open to negotiation, leading to more reasonable sale prices.
Closing costs are another area where sellers are willing to compromise. Buyers often have additional expenses beyond their down payment, and sellers are now stepping in to cover those costs. This allows buyers to keep more money in their pockets, whether it's for house improvements or to build up their savings.
"It was a seller's market fueled by high demand, low interest rates, and limited inventory."
Buyers are also benefiting from interest rate buy-downs. With higher interest rates, some buyers want to secure lower rates, and there are products available that allow them to do so. These buy-down options can lower the interest rate by three points in the first year, two points in the second year, and one point in the third year. This provides buyers with a buffer and allows them to refinance when interest rates become more favorable in the future.
Furthermore, sellers are now willing to address repairs and provide home warranties to buyers. In the past, buyers often waived these requests, but now sellers are more accommodating, offering added security and peace of mind during the first year of homeownership.
In some cases, buyers are even able to negotiate for certain personal property items, such as kitchen appliances or a washer and dryer, to be included in the sale.
As the market has shifted, sellers are feeling the pressure and making concessions to attract buyers. If you're considering purchasing a home, now is a great time to take advantage of these incentives. This buyer's market won't last forever, so I encourage you to reach out to us soon to explore the opportunities available to you.
Feel free to call or email us if you have any questions or if you're ready to make a move in this evolving real estate landscape.