Sellers are slashing their asking price in key markets, but finding those best deals may still require some know-how. A recent Zillow study published in November 2022 uncovered trends that can help you get a leg up on the competition when it comes to finding the best deals.
For example, most price cuts will occur by Thursday of any given week, but the most significant reductions occur in that latter part of the week. Furthermore, it's definitely worth revisiting any favorite properties at the three-week mark, as this marks a time when even deeper price cuts are likely to happen.
However, as winter approaches, the time window when sellers are likely to reduce their asking price will narrow.
"...[as] new listings fail to enter the market at their usual pace, this year's buyers could feel as though there are fewer fresh options to choose from each week," states the report by Zillow.
Because of this, homebuyers are encouraged to keep an eye on those particularly overpriced homes and consider reaching back out to the seller about 3 weeks after it's first listed. At this time, sellers are much more likely to entertain a price cut or, at the very least, be more open to negotiating concessions.
Let's keep in mind that this 3-week mark was not the case earlier this year. Last winter, one would have to wait for a property to be sitting untouched for seven weeks during the winter months before seeing any significant movement in the asking price.
Since then, the housing market demand has experienced a cooldown, benefitting homebuyers still looking to invest in property despite the rising rates.
The same Zillow report found that the typical price cut amounts to about a 3 percent reduction of the asking price. After all, a great deal can still be found, given a considerable markdown from the initial asking price.