NASHVILLE, Tenn. (WTVF) — Prices are dropping, and home buyers have more room to haggle, as the local market adjusts to higher interest rates.
A Treutland Avenue home was built in 1910 by the local sheriff in Davidson County. It was originally listed in the $900s, but on Friday it was listed at $810,000, according to Helton Real Estate Group's Kevin Banks.
When they dropped the price, more showings were scheduled.
“And the interest has spiked up since then with a lot more showings. We have an offer as of this morning for the home," Banks said.
Interest rates have been around 5% or 6% in August, so Banks said there's been an adjustment period.
"Over the last couple of months or so, we’ve definitely seen things softening, to the point where some of our buyers are getting houses under asking price," Banks said.
Months ago there were bidding wars, and a lot of buyers were going over the asking price. But now, some sellers are willing to chip in to help close the deal.
"We’ve even had sellers who’ve been willing to pay money at closing to lower our buyers' interest rates, and get their monthly payments back to being affordable."
At Steadfast Mortgage, loan officer Mike Smalling noticed that too.
"That gets them a rate more like what they would have gotten had they bought last year. And for a seller, normally if they offered to pay the costs for the buyer to do that, it’s a whole lot cheaper to do that than it is to come way down on their price," Smalling said.
There are a lot of incentives going on currently.
"In that spirit of marry the house, date the rate. We came out with a program that follows along that line," Smalling said, "And if you close your loan with our appointed and approved attorney, we will offer you a free refinance."
More home sale contingency offers are being accepted too according to Banks. That was pretty rare in the last couple of years in the Nashville area.
In some cases, buyers have more time to decide on a home because they're on the market longer.
