Homebuyers

6 Smart Moves Buyers Can Make While Homes Sit on the Market Longer

Elevated mortgage rates and high home sales prices have likely left many prospective buyers feeling disadvantaged in today’s real estate market. However, recent developments in the housing market are helping to give homebuyers back some leverage.

Over the last several months, homes have begun to linger a little longer on the market. The median time it now takes for a home to sell is 60 days, with “days on market” going up in 25 of the top 50 metro markets in August, according to Realtor.com.

While that may not sound like a lot, it could be just enough to give some potential homebuyers more time to make up their minds and possibly negotiate better terms.

“During extremely competitive periods, people can feel as though they have to make one of the biggest purchases of their lives almost immediately, whereas a slightly slower market can be healthier for buyers,” said Susie Dempsey, a Corcoran real estate agent in Manhattan and the Hamptons, NY. “Having a little more breathing room allows buyers to separate the fear of missing out from the question that really matters: Is this the right home for me, and am I comfortable with what I’m paying for it?”

With that in mind, here are some smart moves future homebuyers can make to work extra time on the market to their advantage.

Tour the property more than once

One of the best ways to use this extra time is to visit a potential home for additional viewings.

“Buying a home is such a significant financial and emotional commitment, and it’s valuable to be able to see a property more than once rather than feeling pressured to make an offer after a 20-minute showing,” said Dempsey.

Another solid reason for a follow-up visit is to check for unseen issues that might have been missed on the first pass.

“You definitely want to see the home at least twice before making an offer, because it never looks as glamorous on the second visit as it did on the first,” said Cara Ameer, a Realtor with Coldwell Banker in California and Florida and host of the Real Estate Reckoning Podcast. “That is when you’ll notice more of the flaws, bumps, and bruises and can look at the systems of the home to get a better idea of their condition.” 

Consider bringing in a home inspector for a general overview

If you see a home that you really like but are concerned about the condition of certain components or unforeseen issues, it might be reassuring to bring in a home inspector to do a general overview of the home before you make an offer. 

“You’ll need to get permission from the listing agent,” said Ameer. “And while it makes a seller nervous to have this done beforehand, the good news is they and you as the buyer won’t waste your time getting the home under contract if there are issues you aren’t comfortable with and/or end up too costly to fix.”

Check out the area at different times of the day

In addition to revisiting the home you’re considering, it’s also important to get a feel for the general area at different points in the day.

“I always encourage buyers, when possible, to see the property and neighborhood under different circumstances,” said Dempsey. “A neighborhood can feel very different at 11 a.m. on a Saturday than it does at 7 p.m. on a Tuesday.”

Walk around on a weekday and a weekend. Test the commute. See where you would actually buy groceries, get coffee, walk the dog, or go to dinner.

“If you enjoy walking, biking or running, spend some time doing those things on the streets where you would go if you lived there,” said Ameer. “A buyer should definitely see how the neighborhood lives during different times of the day and on different days and weekends.”

Research the neighborhood online, but also talk to some neighbors

Speaking of the neighborhood, this is the moment to do a deep dive into the details.

Try researching local Facebook groups, neighborhood forums and Reddit, as well as local news outlets and municipal resources.

“For condos and co-ops, I also think it’s important to look beyond the apartment itself and understand the building—its financial health, recent or planned capital projects, assessments, amenities and overall management,” added Dempsey.

“NextDoor is another platform to connect with those living in an area you are interested in where you can ask questions,” said Ameer. However, an even better “in” is to talk to the people who would become your actual neighbors.

“Neighbors will tell you things you’ll likely never learn from the internet or even seeing the property,” said Ameer. “If the neighborhood floods when it rains, they’ll tell you. If there is a backstory to the home, you’ll find out.” 

The bottom line here is that a home becomes someplace where you’ll spend the majority of your time. So, it’s important to make sure the surroundings also fit your lifestyle.

Use the time to learn more about the seller’s position

Longer time on market can also give buyers more information about the seller’s position. If a property has been sitting, or has already had a price reduction, there may be more room to negotiate on price or other terms. However, that doesn’t necessarily mean submitting an aggressively low offer.

“A good buyer’s agent should look at comparable sales, the property’s pricing history and current competition, and use that information to determine where there may realistically be leverage,” said Dempsey. “I think that’s particularly important right now because buyers can’t control mortgage rates, but they can be thoughtful about the price they pay and the terms they negotiate.”

Even when a seller won’t move substantially on price, Dempsey said there may be opportunities around closing timing, repairs, credits, or other terms that have value to the buyer.

Negotiate with the seller, but know when to move fast

While more time might give a potential buyer the opportunity to negotiate, it can also backfire.

That’s because real estate continues to be very local, and the best properties in popular areas can still move very quickly.

“Everyone wants ‘turnkey perfect,’ but you will pay a premium for that in this market and those are the homes that don’t last long, so you can’t delay on those,” said Ameer. “However, a lot of the inventory on the market right now is ‘so-so’ and those are the properties that are sitting.”

When that’s the case, a buyer can mull over their options a bit longer, and potentially try to strike a better deal with the seller. Especially if a home needs some work.

“Buyers who can see the hidden potential in a property and negotiate accordingly will come out with equity on the other side as the market will reward them for improvements made,” said Ameer. 

However, many buyers aren’t keen to take on renovation costs on top of what their mortgage payment will be or may lack the additional funds for needed upgrades. In that case, one option Ameer suggests buyers explore is a home renovation loan that rolls the funds needed for renovations into the new mortgage.

Just keep in mind that even with some homes spending additional days on the market, having more leverage doesn’t necessarily mean the right property will still be there tomorrow.

“The important distinction is that more time should be used for due diligence, not indecision,” said Dempsey. “If you’ve done your homework, understand the comparable properties and know a home checks the boxes that matter to you, waiting simply because national days-on-market numbers are higher can still cost you the property.”