Pam and Richard O’Bryant can attest to that. The couple, who sold their three-bedroom, single-family house in Cleveland Heights, Ohio, in March after receiving nine offers, struggled to buy a home in Northern Virginia, using a V.A. loan.
They lost bids on four homes, despite bidding about 10 percent above the asking price on each of them, before finally purchasing a three-bedroom rowhouse in Alexandria, Va., an estate sale that will need about $125,000 to $150,000 in renovations.
“I’m not sure if I’m more relieved or excited to have finally gotten a house in today’s market,” Ms. O’Bryant said. “We really wanted to capitalize on today’s interest rates and are looking forward to creating a fabulous home.
”Ms. Stoughton said sellers who haven’t yet purchased their next home should strongly consider buyers who will offer a rent-back agreement. “Most buyers in our market right now are throwing in a free rent-back,” she said. “Usually sellers pay the buyer to rent back their home.”
“Right now, sellers are in the position where they can direct buyers to have as few contingencies as possible,” Ms. Newquist-Nolan, the California broker, said. That’s a smart move, she said, because fewer contingencies mean fewer opportunities when a transaction might fall through.
Take home inspections for example. From September 2020 through February 2021, 13.2 percent of winning Redfin offers had waived the inspection contingency, up from 7.3 percent a year ago, the brokerage reports.
(Such a contingency would allow buyers to pull out of a deal if an inspection uncovered unexpected repair issues.) “Most buyers are waiving home inspections right now in our area,” Ms. Wethman said. “Pre-offer inspections have become the norm.”
Most sellers are now open to allowing buyers to bring in a home inspector before they make an offer on a home. A pre-offer inspection that finds few problems could give a buyer the confidence to waive an inspection contingency, which subsequently might make the buyer’s offer a more appealing choice for the seller.
Buyers are also finding ways to waive home appraisal contingencies, in an effort to make their bid more attractive to a seller. (Appraisal contingencies allow buyers to terminate a contract if an appraisal comes in lower than their offer price.)
“Some buyers who are putting down 20 percent are agreeing to reduce their down payment to pay the difference if there’s an appraisal gap,” Ms. Wethman said. For example, in a deal where a buyer is offering $300,000 for a home and has a 20 percent down payment if the house is appraised at $270,000, the buyer could drop their down payment to 10 percent, and use that 10 percent in cash to make up the appraisal shortfall.
Comparing Apples to Apples