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What is your home buying power in todays market?

What is your home buying power in todays market?

There is a lot to be said about today’s real estate market. Home prices have fallen but mortgage rates remain high.

So, as a buyer, how do you determine your buying power?

Home shoppers often ask me- what should they do in today’s market….should they wait to buy or take advantage of the lower prices despite the higher mortgage rates? My answer is, YES, if you see that house you want to make your next home, you truly do want to take advantage of this moment.  Here’s why.

Right now buyers have all the leverage to negotiate with sellers. We are no longer in a seller’s market because interest rates have reduced the number of buyers in our market. 

This means less competition and fewer offers on each and every house. This means sellers may be more willing to offer:

  • more buyer concessions,
  • closing cost credits,
  • rate buy downs, or
  • even make repairs.

More importantly, sellers are no longer asking buyers to remove all their contingencies with an offer like we saw last spring and summer. These include elements such as appraisal waivers, and as is no repair offers.

Combining all of these together gives a buyer more leverage in negotiations and it actually can outweigh the cost of the higher mortgage rates. And guess what, you can refinance in a few years when the interest rates come back down.  It’s a win-win!

Of course, it’s best to consult a trusted, knowledgeable real estate agent – one that knows what is happening in our Raleigh/Durham area.

Please feel free to reach out to my team and I with any questions, we can help you make an informative decision regardless of your desired timeline.

Warren Hall


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