TAMPA, Fla. — As mortgage interest rates continue to remain high, new home builders and sellers are putting the buyers in the driver's seat.
ABC Action News reporter Michael Paluska sat down with a developer in Tampa and two realtors: Alex Jandick in Pinellas County, and Brian Stephens in Polk County.
"The average days in the market right now in Lakeland is about 75-80," Stephens said. "So, homes are sitting longer, and sellers are getting a little frantic, and they want to negotiate by paying some of the buyers' closing costs and coming down off the price."
Stephens said incentives for new construction are even higher.
"It might be easier to negotiate with a builder," Paluska asked.
"Yes. They're going to buy down your interest rate, give you $15K to $ 17K for the closing costs. You're going to get a brand new home. They'll offer a 3.99% FHA buy-down rate. Sometimes it's for the life of the loan. Sometimes it's a five, one buy down. They'll buy it down for five years, and then it'll adjust to the market rate, but then the buyer can refinance. So, they're incentivizing people a whole lot."
In Pinellas County, Jandick is seeing similar trends.
"What would I ask for if I'm a buyer, to get the most bang for my buck?" Paluska asked.
"You might want to ask for $5K to $10K in closing credits, which will reduce your overall out-of-pocket cost at the closing table. After your inspection, you may find that the house needs a new roof or a new AC. You can also ask the seller for those things. Those aren't unreasonable anymore, and they're almost becoming expected by sellers that the buyers are going to ask for these things to get to the closing table."
Shane O' Neil is the owner and general contractor of Viking Homes. The Tampa natives told Paluska he's built 137 homes around Seminole Heights, Tampa Heights, and Riverside Heights. His team is also offering incentives.
"We have an in-house lender that we work with that we can get your rate down to about four to 5% for the first couple of years," O'Neil said.
Over the past couple of years, O'Neil said he's seeing a reverse migration of people moving from the suburbs back into Tampa.
"We've seen kind of a shift," O'Neil said. "I'd say. Six 6-years ago, people were moving out to the suburbs, and it seems like the last five years or so, we've kind of seen a resurgence of the urban core, like being close to all these cool things, Water Street, River Walk, so you kind of see people come in like a boomerang effect. We call it coming back, and try to get close to downtown and all the cool restaurants and stuff to do."
O' Neil said the growth in Tampa almost guarantees that if you buy now, despite mortgage interest rates, you'll be better off in the long run.
Tips for potential buyers:
- Always negotiate the price
- Ask for big-ticket items to be replaced
- Try to have a builder buy down interest rates
- Ask for closing costs
"Now is the time to be picky, have options, have all the things you dreamed of in a house, and I don't just say that I am in real estate. I say that if I were personally looking for a house, now would be the time to buy 100%," Jandick said.
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