Buyers are getting more “aggressive” according to a recent survey from Trulia, but that might not be such a bad thing. According to the study, a quarter of all buyers were willing to “bid one to five percent above the seller’s asking price…in order to secure the desired home,” and those buyers were also likely to offer to pay closing costs as well. 17 percent of buyers were likely to write a personal letter to the buyer to go along with their offer in hopes of getting their bid accepted over another buyer’s.
Jed Kolko, Trulia’s chief economist, said that buyers are more likely to make bold moves like over-bidding because they are “worried that mortgage rates and prices will keep rising before they buy.” He said that this concern is a main factor in buyers’ willingness to “fight over the limited number of homes for sale”. Overall, about two-thirds of buyers are willing to overbid to some extent or utilize other aggressive tactics like borrowing money from loved ones for a down payment, with young adults (ages 18 to 34 years) dominating the aggressive population.
by Carol VanSickle