Opendoor’s latest survey reveals interesting trends – Guess what groups are getting competitive

Estimated read time 3 min read

Knowing the market is important if you plan to buy or sell an investment property. Are you expecting a bidding battle? You must pay all cash in order to win. What concessions may you have to make to buyers?

It’s impossible to answer these questions in a definitive way, but the results of a new Opendoor survey offer some insight.

What to remember when you’re preparing to buy or sell a home in today’s market.

Buyers Are Prepared for Competitiveness

A vast majority of home buyers expect a bidding battle when they purchase a house. Bidding wars are expected by 76% of Millennials and 73% of Gen Z. Baby Boomers expect the least competition when purchasing a home.

But that doesn’t allow you to price your home extravagantly. Nearly 70% say that homes are priced too high, and 72% cite affordability as their main concern when purchasing a home. So much so, that 73% of buyers plan to bid under the asking price. Baby Boomers, Gen Xers and Millennials are the most likely to intend to bid below asking price.

Amita Amora, Opendoor Vice President of Investments wrote that Baby Boomer buyers were looking for bargains. “About 80% of Baby Boomer buyers say they are prepared to offer a home below or at the same price as its asking price. Only 14% will offer a higher offer.

For sellers, speed and certainty are most important

You can gain an advantage when you buy a house by offering the seller speed and certainty. Nearly 9/10 sellers consider it “extremely important” that an offer does not fall through. Another 58% also value cash offers.

Amora reported that the number of cancellations in contracts has increased dramatically as buyers face financing issues and search for better deals. “Today, home sales are falling through at a rate of 18% – the second highest percentage since 2014. .”

Preapproval for your mortgage and having all your documents ready can help. Inspections and repairs requests are also important. Cash offers are even better.

Be selective in your demands during negotiations. Most sellers are willing to negotiate their asking price and closing date, while 42% will cover inspection fees. Sellers are less willing to pay for home warranties, help with closing costs or offer repair credit.

A Disconnect

In today’s market the buyer and seller are not always aligned, which can be challenging for both parties. Be reasonable with your price list and willing to negotiate if you are a seller. Expect fewer over-asking offers and be ready to play hardball with older buyers. Baby Boomers don’t expect to see a bidding battle or overbid the asking price.

Make sure that your offers for a new home are as clear as possible. Be prepared financially (or make a cash-only offer) and watch what you demand in negotiations. Some concessions will be more likely to occur than others.

Amora writes, “The good thing is that both buyers and sellers are willing to make concessions in order to speed up their process.

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