5 Tips as We Move Into a Buyer's Market in Bozeman

It wasn’t long ago that Bozeman was considered a seller’s market.  A listing would hit the market, mass showings would ensue and multiple offers would come pouring in. There was little to no room for negotiation on the buyer’s side. With rising interest rates and inventory catching up to the demand we have seen a shift in the real estate market in Bozeman.  Here are five tips for buyers in the current market.

1) If you paused your home search, start it back up

Many people faced buyer fatigue in the last couple of years and hit the pause button on their home search. It could be worth taking a look at things now. Inventory is up, in fact, the number of homes on the market is 70% higher than it was at this time last year! With home prices coming down, and many price reductions, it is worth seeing what is now available within your budget.

2) Know your negotiation power

In a buyer’s market, there is more room for negotiation than there was earlier this year. Homes are sitting on the market longer which means sellers are more likely to consider your offer. Especially if it has been on the market for over 30 days. Previously asking for anything other than full price meant your offer probably wouldn’t be taken seriously. This is no longer the case. Buyers are getting the opportunity to write offers with their terms. This means if you need any contingencies, longer escrows, or want to offer a lower price, you can and there is a good chance it will be considered by the seller. 

3) Take your time

Gone are the days when you had to make an offer sight on seen! Now that the frenzy of the market has calmed, buyers can take a minute before making an offer on a home. This is a relief to many and can prevent buyer's remorse. There’s less of a concern about losing out on a property you’re interested in so you can think it through before making the offer.

4) Know the inventory

Sellers are struggling to determine how to price their homes right now. Some are going with the high prices people were getting months ago and some are paying attention to current market conditions. Either way, it’s hard to gauge how to price so as a buyer check out what is available and have your agent weigh in on the current inventory. This will give you an idea of what homes are going for within your criteria and you can make the best decision when it comes to writing an offer.

5) Inspections have returned

During the last two years of an extreme seller’s market, many buyers waived inspections to make their offer more desirable. As we have shifted into a buyer’s market we are seeing the return of inspections.  This is helpful as a buyer because you know what you are getting into and if the inspection comes up with something (as they often do) you will have room to negotiate and a seller might be more likely to accept what you are asking for.

Bonus tip-

Keep in mind that during a buyer’s market you are more likely to be able to negotiate and get a lower price, however, it is still Bozeman and the market is stronger here than in a lot of places. Don’t insult a seller with a lowball offer and if you really want the property keep the negotiations reasonable!

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