Tight inventories, rising home prices and now mortgage rates a full percentage point above their all-time lows are making for some desperate measures in this recovering housing market.
Among Americans who would buy a home, 2 in 3 (66 percent) would use aggressive tactics to buy their dream home, including bidding above asking, paying the seller’s closing costs, writing personal letters, or removing contingencies — to name a few and when they get their dream home they might consider working with a company similar to ConstructionHQ to extend it even further to model it exactly to what they want.
Trulia’s new survey of 2,029 U.S. adults also found that young adults – many of whom are likely to be first-time homebuyers – are especially aggressive in their house hunting, with 78 percent likely to do at least one of these tactics (see chart below).
However, rather alarmingly, a lower percentage of these buyers would get their potential home a professional home inspection because they want to make an offer as soon as possible. No matter how good a buyer thinks a home is, they should always get Tulsa home inspectors to look at it first. This way they will know if there is anything wrong with the house before putting in an aggressive bid.
Not surprisingly, households earning more than $100,000 a year are more likely to offer to pay the seller’s closing costs or bid above asking.
Also not surprisingly, 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.
What’s somewhat striking is the sentiment of many regarding the American dream of homeownership.
Rising mortgage rates and home prices are taking their toll with some. It’s no wonder that so many people are having to get independent advice to help them with things like this and make sure that they are not spending too much.
Only 67 percent of Americans believe homeownership is part of their personal American Dream, compared to 72 percent seven months ago.
Consumers also appear to also be downsizing their dream homes. Some people might even consider something similar to the granny flat approval cost in Sydney to afford an enjoyable space. Among those who said owning a home is part of their American Dream, just 7 percent say their ideal home size would be 3,200 square feet or larger, down from 11 percent last year.
Despite these sentiments, the housing recovery seems to have renewed Americans’ faith in real estate as an investment. Over the past two years, the percentage of consumers who say owning a home is one of the best long-term investments they could make has increased from 47 percent to 60 percent.