Low inventory coupled with rising mortgage rates and home prices are leading prospective home buyers to consider using “aggressive” tactics such as overbidding to obtain a home, according to recent survey.
In order to secure the desired home, 25 percent of prospective home buyers in the survey said they were willing to bid 1 to 5 percent above the seller’s asking prices.
When it came to overbidding, younger buyers (aged 18 to 34) are more likely to use the strategy. Millennials are more willing than their parents’ generation to outbid, borrow, or make a personal plea to get the house they want.
For example, another 9 percent of respondents said they were willing to bid 6 to 10 percent over the asking prices, while 12 percent of younger respondents said the same. Additionally, the survey showed 17 percent of buyers would write a personal letter to the seller, while 23 percent of Millennials said the same.
The survey, conducted by Harris Interactives, also examined top worries and found rising mortgage rates weighed on the minds of 41 percent of potential home buyers. Another 37 percent cited rising home prices as the top concern, while 36 percent said they were worried about not finding a home for sale they would like.