5 Market Updates — EMILY JOHNSON

This won’t come as a shock, but the Springfield-area housing market is still changing all the time. To make it a little easier for those of you who are in the middle of buying or selling a home, here are the five big changes I’m seeing these days.

1.Homes are Staying on the Market Longer

Everyone will remember how quickly homes were getting scooped up between 2020 and 2022, but that has slowed down a bit. While homes priced competitively are still seeing multiple offers in the first 72 hours, many are staying on the market for an average of 33 days before going under contract. Fun fact for you: In Q1 of 2022, the average days on market was 19. This not only allows an agent to preview a home for their client during the day while they are tied up at the office, it allows buyers a bit of breathing space to see the home when they are off work or potentially over the weekend. However, this slow down in pace doesn’t mean you have time to sleep on a great home. If a home comes on the market, you still need to get in to see it as quickly as you can. You never know who was there before you and is writing an offer while you sleep on it or wait to go until the next day.

2. Sellers are More Receptive to Negotiating Terms

This is a relief to buyers. Sellers are once again open to terms such as paying a buyer’s closing costs and even considering offers that are contingent on the buyer selling their current home. A contingency of closing was common practice in real estate years back but has not really been an option the past three years with so many buyers in the market. Typically a homeowner needed to sell their home first in order to free up their credit in order to qualify and buy their next home. Now with homes staying on the market longer, a buyer is able to list their home, get it under contract and make an offer on the home they want to buy. With this process both homes will close on the same day as the buyer sells their home then turns around and buys the next home.

3. Government Loans are Being Considered by Sellers

One of the biggest differences between a government loan (FHA, VA and USDA) and a conventional loan is the appraisal process. While a conventional loan is focused primarily on the value of a home, a government loan appraiser also completes a head and shoulder inspection during their appraisal process. This means they are looking in the crawlspace, attic, testing windows, etc. to make sure the home is safe and sanitary for the buyer while meeting the government loan requirement. Sometimes this extra scrutiny from a government appraiser comes with a list of required repairs to be completed prior to closing. This extra layer of risk or potential requirements was not favored over the last few years when there were so many cash and conventional loan buyers ready to buy a home in its current condition. But the slowdown in the market has caused sellers to open up to more offers.

4. Open Houses are Back

It’s been years since we’ve had a steady stream of open houses over the weekend. With inventory selling so quickly, most homes were no longer available on the weekend for the agent to even hold an open house. Now they’re back! In Southwest Missouri, we typically see open houses held on the weekends from 1—4 p.m.

5. Agent Bonuses

Sometimes a seller has difficulty selling their home in a timely manner. This is when the agent bonus comes in. This bonus is offered by the seller if a buyer’s agent can bring a buyer and close by a specific date. Sometimes these bonuses range from $1,000 up to $10,000 depending on the home and seller’s situation. While an agent is already receiving a commission based on the sales price at closing, it is best practice for an agent to not accept the additional bonus monies but rather negotiate for their buyer with a lower sales price in lieu of the bonus.