Basically, Trulia surveyed just over 2000 potential homebuyers in an online survey. It really seems to highlight some of the changes we are seeing in the market - more DEMAND, less supply, and buyers who are willing to do whatever it takes to get the house of their dreams. You can read the full results with the link above, but here are some stats that I found interesting!
Top worries of home buyers:
- Interest rates will rise before I can buy
- Home prices will rise before I can buy
- I will not find a home for sale that I like
- I won't qualify for a mortgage
- I will have to compete with many other buyers for the home I want
In addition to the worries, these buyers are willing to take extreme measures to get the home of their dreams. Buyers need to beware that submitting a lowball offer might have been fine a couple of years ago, but now that the market is recovering, you might be competing with buyers that are willing to do whatever it takes.
According to the Trulia article:
Among Americans who would buy a home someday, 2 in 3 (66 percent) would use aggressive[1] tactics to buy a home, including bidding above asking, paying the seller’s closing costs, writing personal letters, or removing contingencies, to name a few. Households earning more than $100,000 a year are more likely to offer to pay the seller’s closing costs or bid above asking, whereas lower-income households making less than $50,000 a year are more likely to borrow money from family or friends to put down 20 percent or make an all-cash offer. Young adults – many of whom are likely to be first-time homebuyers – are especially aggressive in their house hunt, with 78 percent likely to do at least one of these tactics.
I think this infographic from KCM shows it perfectly.
So buyers, what do you think? Does this seem accurate? I know that several of my recent buyers were faced with multiple offer situations, and we did use some of these tactics. Do you have a buyers agent that knows that today's market is different?
Contact me if I can help, I would love to work with you to find that home of your dreams!
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