Washington buyers have more power this winter
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It was a bad year to be a buyer, but the tail end of 2023 might hold a bright spot for Washington house hunters.
Why it matters: With still-high mortgage rates, home shoppers are desperate for even a little more buying power.
The big picture: There's less competition among buyers right now — thanks to mortgage rates and the typical holiday season demand dip — which leaves some room for buyers to negotiate better deals.
- More than one in three U.S. sellers gave concessions — like cash for repairs or closing costs — to buyers August-October 2023, according to a new Redfin report.
What they're saying: "Seller concessions were almost unheard of a year ago," DMV agent Avi Adler says. But with limited competition among buyers, house hunters have a little negotiating power.
- "Being able to negotiate on price and seller concessions probably feels like a great deal compared to what they may have faced a short time ago," Adler says.
What's happening: Most sellers — sitting on record-low mortgage rates — are only moving if they have to. Desperate to close the deal, they might throw in cash for repairs, closing costs or mortgage rate buydowns, per Redfin.
- Some sellers will pay cash toward a temporary lower mortgage rate for the buyer instead of reducing the asking price, mortgage lender Donny Kirby tells Axios.
- It helps make "the payment palatable in the first couple of years," and most buyers are betting they can refinance later, he says.
Bottom line: Desperate sellers and minimal competition help give buyers a little more power this winter.