Nobody's talking about how good buyers have it this fall.
Everyone's focused on mortgage rates and home prices, and they're missing what's happening right in front of them. The market has slowed. Builders are getting aggressive with incentives. Resale sellers are a lot more willing to negotiate.
And plenty of buyers are still on the sidelines, waiting for rates to come down.
I've been selling real estate along the Wasatch Front since 2012, and I don't always tell people it's a good time to buy. But right now I'm seeing opportunities for buyers that weren't there earlier this year.
Earlier this year I was seeing multiple offers, bidding wars and sellers with very little reason to negotiate.
Now it's October. Showings have slowed, homes are sitting longer, and some sellers are cutting prices to get sold before the holidays.
When five buyers want the same house, the seller calls the shots. When a home has sat for a few weeks without an offer, that conversation looks different. Buyers have leverage again, on price, closing costs, repairs and other terms.
I'm seeing this across Salt Lake County, Utah County, Davis County and parts of Park City. Every neighborhood and price point is different, and well-priced homes still sell. But the pace has changed, and if you've been waiting for some breathing room, this is it.
Some Utah builders are advertising rates under 4%. Before you assume that's your rate for 30 years, know that many of these deals use a temporary buydown. The most common is a 2-1 buydown:
So if your actual rate is 6%, you'd pay as if it were 4% the first year, 5% the second and 6% from year three on. The builder pays for that discount upfront. Your loan rate doesn't change. The builder's money just covers part of your payment for two years.
Some builders pair that with money toward closing costs or upgrades, and with year-end coming, a lot of these offers have deadlines.
The catch: incentives don't apply to every home. Some require the builder's preferred lender, specific inventory or closing by a certain date, and you still have to qualify. Still, if you've been considering new construction, these are worth a look.
I work with buyers and sellers, so I see both sides of these conversations. When a listing has been sitting, sellers become open to things they would have shut down a few months ago.
That doesn't mean every seller is desperate or that you should throw out lowball offers. It means there's room for strategy. You might negotiate:
Sometimes money toward closing costs is worth more than a slightly lower price. Depending on your loan, seller concessions can lower the cash you bring to closing, or they can buy down your rate, temporarily or permanently. That matters a lot for first-time buyers trying to hang on to their savings, and for move-up buyers juggling the costs of selling and buying at the same time.
A price cut, a closing-cost credit and a rate buydown aren't interchangeable. Each one changes your upfront cost or your monthly payment differently, and lenders cap how much a seller can contribute. This is where it pays to have someone who knows the numbers.
The rate you see online usually isn't the rate you'll get. Your rate depends on your credit, down payment, loan type, the property and whether you're paying points.
Some advertised rates require paying discount points upfront. Others are temporary buydowns or adjustable-rate loans. Those are very different things. A temporary buydown lowers your payment for a set period. A permanent buydown means paying points for a lower rate for the life of the loan. An adjustable-rate mortgage can change on its own schedule.
That's why I recommend getting pre-approved with a good local lender before you start shopping, not just an online prequalification. A lender can compare the real payment, cash to close and long-term cost of each option, and tell you whether a builder incentive, seller concession or price cut does more for you.
With a 2-1 buydown, you generally have to qualify at the full rate, not the lower first-year payment. Make sure you're comfortable with the payment after the incentive ends. Don't plan on refinancing in a year or two. Rates might come down. They might not. Your purchase should make sense either way.
The friendly salesperson in the model home works for the builder. That's their job, and there's nothing wrong with it, but they represent the builder's interests, not yours.
Buying directly from a builder doesn't mean you're getting a better deal. In many cases builders pay a buyer's agent, so you can have your own representation without paying an extra fee. Arrangements vary, so confirm the details first.
A good buyer's agent can compare incentives, review the builder's contract, which is not the same as a standard resale contract, and negotiate beyond the advertised deal. There's often room for more closing-cost help, upgrades or a better price.
One more thing. Some builders require your agent to be involved from your very first visit. Call me before you walk into a model home and register. I'd much rather help from the start than find out you've already committed to something.
If you've been seriously thinking about buying in Salt Lake City or anywhere along the Wasatch Front, I wouldn't automatically wait until spring.
Not because everyone needs to rush out and buy a house. Waiting for lower rates just doesn't guarantee a better deal. If rates drop, buyers come back, and the negotiating room we have right now could disappear. A lower rate doesn't help much if you're up against multiple offers and paying more for the house.
Of course, nobody can predict prices, rates or inventory. The point is to look at the real opportunity in front of you instead of waiting for a perfect market.
Here's what I'd do before year-end:
If you're selling a home to buy another, let's look at both sides together.
The best time to buy isn't always when rates are lowest. It's when the numbers work and you have room to negotiate. Right now, buyers have more of that room than they've had in a while.
If you want to know what's actually on the table right now, text or call me at 801-440-6368 or send me a DM on Instagram @stephanie_hoffee.
Stephanie Hoffee | Wasatch Mountain Realty