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For the first time since March 2021, the average home is selling below the asking price. In fact, prices have fallen by 6% since June. As the market cools, home buyers savvy enough to hang in there may be the ones to benefit. If you’re in the middle of house hunting, things may still feel too hot to handle, but stay with us here. As housing markets cool, home buyers are ultimately rewarded in these five ways.

1. Buyers can’t go back and change the price of a home, but they can refinance

Home prices hit an all-time record high in June. They’re down 6% since then. A home selling for $400,000 last spring is likely to sell for around $376,000 today. That said, home prices are still 5.9% higher than they were this time last year, but the 6% drop since June is a good sign for buyers.

My husband and I happened to sell our home in June at a price that surprised us, particularly because interest rates had already jumped by 2%. Not only did we receive multiple offers the first day the house hit the market, but buyers were willing to skip contingencies, including a home appraisal (which seemed absolutely outrageous to us).

When my husband and I moved, we were willing to buy the ugliest house on the block for this one reason: We knew that we would never be able to renegotiate the sales price, but we can refinance when rates drop. We were not willing to get into a bidding war over a house, and frankly, buying ugly prevented that.

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If you offer $100,000 more than a home is worth, you owe that money until the day you send your final payment to the mortgage lender. However, if the best interest rate you can snag right now is 7%, you have a couple of options. If you don’t plan to stay in the home for long, look at an adjustable-rate mortgage (ARM) for a lower upfront rate. Or, better yet, wait until rates dip again and refinance your mortgage. The decision is in your hands.

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