Homes linger longer on market giving buyers negotiation power

Homes are currently spending more time on the market than they have in the past five years, according to Realtor.com's September Housing Market Report. The report indicates that homes now average 55 days on the market, an increase of seven days compared to last year and two days from the previous month.

In certain cities such as Austin, Texas; Jacksonville, Florida; and New Orleans, Louisiana, properties are listed for over 70 days. This trend is providing buyers with a significant advantage.

Denise Supplee, a Realtor with Long and Foster in Doylestown, Pennsylvania, notes a shift in buyer behavior. "Up until the last few months, buyers had to compete by relinquishing home inspections, more cash, and of course, higher bids," she explains. Now she observes fewer bidding wars and believes a buyer's market is emerging. "This works two-fold for the buyer: one, lower mortgage payments; two, negotiation possibilities will increase."

Noelle Tassey from real estate platform Redy mentions that buyers can now afford to be more selective. "Buyers have more time to consider the property they’re buying," she says. Tassey advises focusing on long-term value rather than rushing into agreements.

Cara Ameer of Coldwell Banker suggests not waiting too long despite current advantages. "Many are waiting for interest rates to drop," she states but warns against delaying purchases until competition increases again.

Nikki Beauchamp from Sotheby’s International Realty in New York highlights opportunities in properties that have been listed longer. She points out that flexibility might be greater than anticipated if buyers craft compelling offers.

David H. Michan of Terra Equity Management shares an example where his team successfully negotiated $20,000 off the asking price and secured $15,000 towards closing costs for a client.

Ron Meyers from Ron Buys Florida Homes has observed a change since the COVID-19 pandemic era when decisions were rushed. "There’s less of a rush," he says. He emphasizes being prepared to negotiate as crucial in today's market conditions.