LAS VEGAS, NV – While housing in the United States may not be a buyer’s market, the overall burdensome economy – combined with sky-high home prices and mortgage interest rates still hovering at just over seven percent – have resulted in a growing number of sellers finding themselves forced into giving concessions to buyers in order to get bites on their listings.
According to a new report by Redfin, the current number of sellers that are offering some sort of concession to potential property buyers is 44 percent, which represents a whopping year-over-year increase of 39 percent. This signifies that the leverage sellers held on buyers in recent years is obviously starting to decrease, as market conditions are encouraging many who are looking to buy a home to wait things out in hopes that things improve.
One example of concessions being offered by sellers, as per the Redfin report, include a homeowner who had been attempting to sell a residence that required several costly repairs, including a new roof and a new boiler; the grand total for these repairs would have run any buyer an estimated $100,000 extra on top of the cost of the home itself.
However, this seller experienced multiple potential buyers in a row refusing move forward with the deal when faced with the extensive repairs, forcing the seller to carry them out himself before anyone would proceed.
During the height of the COVID-19 pandemic, when interest rates were much lower, this situation would almost certainly not been the case, but current high interest rates and ballooning inflation are causing buyers to become far pickier regarding how and when they spend their money, said Las Vegas Realtors President George Kypreos.
Most of the buyers are asking for something and they’re getting it,” he said, with Redfin noting that other concessions can include credit towards repairs or credit towards buying down their interest rate. The number of negotiations is going up, and while it’s not considered a buyer’s market yet, the scales are certainly tipping more in that direction than they have in several years.
Shelter Realty Property Management specializes in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
Christopher Boyle is an expert investigative journalist for SEARCHEN NETWORKS® and reports for independent news and media organizations in the United States. Christopher keeps a keen-eye on what’s happening in the Vegas real estate market on behalf of Shelter Realty Property Management