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Nearly a third of buyers—30%—say that, to triumph in a competitive offer situation, they paid more than they anticipated on their home purchase. Of those who did, 32% paid $52,000 or more over the asking price, according to the Homebuyer Sentiment Index conducted by Qualia, a digital real estate closing platform. The survey reflects about 1,000 consumer attitudes over home buying.
Some buyers say they waived contingencies to gain a competitive edge. Nineteen percent of respondents said they removed inspections from the contract.
The index “shined a light on the risks consumers may be taking when they act too quickly without understanding the home purchase process or transaction costs involved,” the survey said.
Only one in five home buyers surveyed said they understood all of the documents they were signing at closing.
With the high competition lately, buyers report feeling stressed. Real estate closings are the most stressful and complicated part of the process, they reported. Forty-four percent of recent home buyers said they were surprised by higher-than-anticipated transaction costs.
More than half—55%—of future home buyers said they’d like to receive information face-to-face about the closing process prior to the closing date, and nearly half would like to receive information over a secure mobile app or web-based portal, according to Qualia’s survey.