Rising interest rates have put the brakes on the home buying market. Average listings are staying on the market for more than a day, and even the perfectly updated cream puffs are not commanding multiple offers which were so common since the summer of 2020. And it’s a good thing. The market is always moving which implies that either the buyers or sellers are favored. But long periods on one side of an unbalanced market is exhausting.
It was not uncommon for buyers to have submitted six or seven offers on homes before they secured a purchase. At each step, they learnt a little more about what is required of them to win the bid. Perhaps on the first house, they bumped up their offer price by a couple of thousands. As they relayed their experience to friends and co-workers they learnt that simply wasn’t enough of a bonus- one must bid more.
The next time around they found out that many people were offering non-refundable earnest money. In the event the transaction did not close, the earnest money would be automatically relinqueshed to the seller. Then some people forewent their inspection. This allowed the seller the peace of mind of knowing nothing more would be asked of them
Most purchases in the US are done without haggling. Price are offered through different vendors or shops and you have the option to pay or buy somewhere else. The process of bid and discovery, and bid again, and more information can agitate buyers to the point that they pull out of the market entirely.
Those are the folks we see come back in to buy now that the market has cooled. They no longer have to give it all away to be the winning bid. Paying a higher interest rate is a sacrifice, but they are getting something in return.