Location is the most important aspect of the real estate industry. While there are certainly national trends that we need to consider when evaluating the market, it’s also important to understand that real estate markets vary from one area to the next. If you’re in the market for a home and want to find a place that is buyer friendly, be sure to check out these five cities where buyers are negotiating the best prices possible on their homes.
Interest rates have made homes that were once affordable so expensive that many people are forced to sit out of the real estate market until things return to normal. When it’s harder for people to get the mortgages that they need to buy a home, the impact on the market is felt immediately. In many cases, fewer qualified buyers leads to a decrease in prices, but since the nation has been facing a housing inventory shortage, that’s not the case right now.
Read More »There are two markets that you need to monitor as someone who is looking to buy a home: the national market, and the local market. There are some real estate trends that are going on nationally that will dictate everything that you do. For instance, rising interest rates are a national real estate trend that you certainly can’t ignore. However, you also need to pay attention to local market trends, especially for the area that you’re hoping to buy a home in.
Real estate is cyclical, so local markets that favor buyers today may favor sellers at this time next year. Based on data provided by Realtor.com, we have put together a list of cities in the United States where buyers are able to negotiate the best prices. Knowing how to find cities that are conducive to negotiations can help you get the best possible deal on your home.
Rocky Mount, NC
Rocky Mount, NC, located around 45 minutes outside of Raleigh, is becoming a popular area for homebuyers, thanks in large part to a growing tech industry and the biomedical companies who are setting up headquarters in the area. There was a time between October of 2019 and September of 2021 where the median listing price for a home in the metro area more than doubled, going from $131,000 to $283,000.
It’s easy to look at those numbers and assume that Rocky Mount, NC isn’t a place that you want to purchase right now. However, there are some studies that indicate that more than 40% of people who buy a home in Rocky Mount, North Carolina are able to negotiate the price down. If you’re considering moving to the Raleigh, North Carolina area, Rocky Mount is a great choice. Even though median asking prices in Rocky Mount are around $275,000, that is nearly $200,000 less than the median asking price in Raleigh.
Concord, NH
There was a time not all that long ago when the capital of New Hampshire was one of the hottest real estate markets around. At the height of the COVID-19 pandemic, many Bostonians were looking for a more affordable place to live that would still allow them to drive into the city for work one to two days per week, as many employers switched to hybrid model that allowed employees to work a few days a week at home.
The low tax rates associated with living in New Hampshire also made it a popular choice. Right now, median asking prices are still high ($475,000), but local real estate agents are saying that they’re seeing buyers who are more willing to negotiate than they were only a couple years ago.
One such example is Pamela Young, a local broker with eXp Realty, who is also a lifelong resident of New Hampshire. She reports that she has seen clients purchase homes for up to $20,000 less than asking price.
This is largely because the Concord, New Hampshire real estate market is starting to slow down. While there are still high-end properties in the capital city that come with a hefty price tag, you can usually come in at $20,000 or more under asking price if you find a property that has been sitting on the market for a while.
Lakeland, FL
In 2019. Lakeland, Florida was named as one of the best markets for homebuyers who were operating on a budget. It also became a very popular destination at the height of the Coronavirus pandemic.
Lakeland has a lot going for it in addition to the opportunity to negotiate prices down. First of all, it is situated conveniently between Orlando and Tampa, which gives you fast access to some of the most popular activities that Florida has to offer. Amusement parks, professional sporting events, world-class dining, beautiful beaches, and popular shopping destinations all make Orlando and Tampa popular destinations. Lakeland is a short drive away from both cities, providing potential homebuyers with a great place to land.
Without much explanation, home prices in Lakeland, Florida have started dropping during 2022. For instance, a four-bedroom home that was listed for just under $450,000 went for $45,000 less than asking, a discount of more than 10%.
If you’re looking for an area in which you can negotiate the price down while also taking advantage of beaches and other attractions, Lakeland, Florida should certainly be on your destination list.
Elizabethtown, KY
Referred to as “E-Town” by locals, Elizabethtown, Kentucky is a great option if you’re looking for a small-town, midwestern feel but still want to be relatively close to some bigger cities. Louisville, Lexington, and Cincinnati are all within close driving distance, and you can be in Nashville and Memphis in only a few hours.
Elizabethtown being mentioned on this list does come with a bit of a caveat. According to historical data, home prices have never been higher in Elizabethtown than they are right now. However, it appears that home sellers have marked their prices up in order to give themselves some room to negotiate the prices back down.
For instance, there was a recent sale of a home that needed some repairs going for more than $23,000 less than asking, a discount of more than 16%. If you’re looking for a midwestern, smalltown feel, Elizabethtown is a great option for you.
Myrtle Beach, SC
Myrtle Beach, South Carolina is a well-known tourist destination, but it’s also a popular place for people who want to live near the beach without paying some of the more astronomical prices associated with life on the Florida coast or along the Pacific Coast.
We’ve already established that the real estate industry is all about supply and demand. Right now, that concept is driving prices down to record lows in Myrtle Beach, SC. At the height of the pandemic, people who lived in Myrtle Beach stopped selling their homes, because they were being permitted to work from home. Who wouldn’t want to work from home while looking out over the Atlantic Ocean? This led to the prices of properties that were listed to jump up.
Higher prices then motivated people who weren’t selling their homes to list theirs. Now, the market has been flooded with homes, and prices are going down. Moreover, the homes that are being sold are being negotiated down even lower than asking price. This is great news for buyers who want to enjoy proximity to the beach without breaking the bank.
Knowing how to find the best deals on any homes that you’re planning to purchase is an important part of winning the deal. Spend some time talking to local realtors about which areas are most conducive to negotiations, and make your decision based on where you can save the most money on the house that you want.
