Desperate times call for desperate measures. According to a new survey conducted by Qualia, a digital real estate closing platform, more home buyers are making concessions to get the home they want. Thirty percent of respondents claim that they paid more than anticipated on a recent home purchase. In fact, nearly a third of those who say they spent more than anticipated offered $52,000 or more than the asking price.
Other buyers say they needed to waive certain contingencies to gain an advantage over others. Approximately one in every five respondents to the survey said they waived their inspection contingencies from their home purchase contract.
The tough competition for homes that leads to these concessions is being driven primarily by the combination of a limited selection of homes for sale and favorable mortgage rates for those looking to purchase a new home. Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.