The residential real estate market is changing. Though the last few years have been marked by enough homes on the market to satisfy buyers’ demands, the number of homes available for purchase has dropped off both here in Massachusetts and elsewhere in the country. Additionally, rising home prices and rising mortgage interest rates are driving up concerns among buyers who fear that they may not be able to get into the homes they want without spending more money than they have budgeted.
These fears have led some potential buyers to admit that they would engage in forceful practices to get sellers to take their offers seriously. A recent internet-based survey of more than 2,000 people revealed that potential buyers would try offering more than a house is listed for or appealing to a seller’s sense of humanity in order to win a bidding war over a residential property.
The survey indicates that abound 66%, or 2 out of 3 people would try such tactics when attempting to purchase a home. In addition to offering over the asking price and writing letters to the sellers, other potential buyers noted that they would offer to pay the seller’s closing costs or remove certain contingencies from the real estate agreement in order to come out on top in a bidding war.
While dealing with such residential real estate matters can be stressful, the results of this survey do demonstrate that most buyers have a realistic picture of what it might take in order to get into a home. While individuals with higher incomes are more likely to be willing to pay more for desired homes, individuals in lower economic demographics appear to have shifted their expectations with regard to the sizes of homes they are willing to buy.
As more people attempt to buy homes, the practice of utilizing aggressive buying strategies may increase. Though this survey suggests that some people may still try to buy homes without making extra concessions to sellers, sellers may come to expect extra effort on the part of buyers before agreeing to purchase offers.
Source: Forbes, “Desperate To Win Bidding Wars, Two Of Three Home Buyers Would Use Aggressive Tactics,” July 29, 2013