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Why Now May Be the Time to Purchase Your Home — Despite Higher Interest Rates

by Nicole Strom 01/09/2025

With interest rates remaining high, you might be tempted to hit pause on your home-buying plans. While this instinct is understandable, it’s important to step back and take a strategic view of what’s happening in the housing market. Waiting could lead to more challenges down the road, including significantly higher competition and costs when you decide to re-enter the market.

Here’s why now might actually be the best time to purchase your home:

Pent-Up Buyer Demand Will Create a Strong Seller's Market

Recent polling shows that a significant number of buyers plan to jump back into the market as soon as interest rates drop. When they do, those buyers will be bringing over two and a half years of pent-up demand with them. This will likely cause an intense surge in competition for homes, driving up prices and reducing the negotiating power of individual buyers.

Did You Know? According to the data:

  • 93% of buyers are asking and getting the seller-paid buyer’s agent fees paid.

  • 91% of buyers want and are getting appliances or furniture included in the sale.

  • 89% of buyers request credits for cosmetic upgrades.

  • 83% of buyers are looking for seller-paid repairs.

These statistics highlight a key trend: Buyers are leveraging today’s slower market to negotiate better terms, saving money upfront and at closing. This kind of flexibility is harder to come by when the market heats back up.

Understanding Seller Concessions: What Buyers Are Asking For

In today’s market, buyers are leveraging negotiation power to request a range of seller concessions. Here’s a breakdown of the most common requests:

Concession or Seller-Paid Cost Percentage of Transactions (%) Why It Matters
Seller-Paid Buyer’s Agent Commission 93% Makes the home more attractive to buyers by eliminating upfront agent-related costs.
Appliances or Furniture Included in the Sale 91% Saves buyers the hassle and expense of purchasing these items separately.
Credit for Cosmetic Upgrades 89% Allows buyers to customize the home without upfront financial strain.
Seller-Paid Repairs 83% Ensures the home is move-in ready, reducing the buyer’s immediate expenses.
Seller-Paid Points to Lower Interest Rates 82% Helps buyers lower monthly mortgage payments, making homeownership more affordable.
Seller-Paid Closing Costs 77% Reduces the buyer’s out-of-pocket costs at closing, especially helpful for first-time buyers.
Prepayment of HOA Fees 77% Reduces upfront costs and ensures buyers are financially ready to take on the property’s future expenses.
Landscaping or Exterior Maintenance Credits 72% Avoids unexpected costs for buyers to improve curb appeal or maintain the property.
Home Warranty Coverage 67% Provides peace of mind to buyers, especially in older homes.
Fixture Replacements 67% Ensures buyers don’t need immediate upgrades, offering modern standards.
Financial Assistance for Inspection/Appraisals 67% Reduces upfront cash requirements, making the deal more attractive to buyers.
Credit for Property Taxes or Adjustments 65% Ensures a fair distribution of costs during the transfer of ownership.
Agreement to Extend Closing or Move-In Timeline 56% Offers flexibility, helping buyers coordinate their moves and transactions.

Why Buying Now Could Be Your Best Bet

  1. Negotiation Power: Right now, buyers have more leverage to negotiate seller concessions, such as:

    • Repair costs

    • Closing cost assistance

    • Interest rate buy-downs

  2. Less Competition: With fewer active buyers in the market, you’re less likely to face bidding wars. This could save you thousands on your purchase price and allow you to request concessions for other things like the seller paying for some of closing costs.

  3. Building Equity Sooner: Even with higher rates, purchasing now allows you to begin building equity immediately. When rates drop, you’ll have the option to refinance, putting you in a stronger financial position overall.

  4. Avoiding the "Perfect Storm": By buying now, you’ll bypass the wave of buyers who will re-enter the market when rates fall. This means less competition and less stress during your home-buying journey.

Conclusion: Don’t Let High Rates Hold You Back

While higher interest rates can feel like a hurdle, the current market offers opportunities to negotiate favorable terms and avoid future competition. Waiting for "the perfect time" may cost you more in the long run, both in terms of upfront costs and lost equity.

If you’re thinking about buying a home, let’s connect. I’ll help you navigate the market to secure the best possible terms and get you into a home you love. Don’t wait for the market to shift out of your favor — let’s make your move happen today!

Contact Nicole Strom:

About the Author
Author

Nicole Strom

Nicole is a retired military spouse of over 25 years, as well as a full time Real Estate Professional serving her clients in and around Colorado Springs. 

You need a REALTOR® with vast experience and knowledge of our specific market. You need a REALTOR® that genuinely cares about you and puts your needs first. You need a REALTOR® you can trust. Nicole is that REALTOR®.