4 Tips to Avoid Overpaying in Today's Changing Housing Market
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Since the start of the coronavirus pandemic, homebuyers have grown accustomed to overpaying and playing a risky game of bidding wars and waived contingencies.
In a recent survey by Money and Morning Consult, 36% of people who purchased a home in the past two years said they believe they overpaid. The survey also indicated recent buyers were willing to compromise on home size, style, location and features in order to purchase a home.
But with mortgage rates turning sharply upward during the first half of 2022, the housing market is starting to cool. Suddenly, home buying strategies that seemed absolutely necessary as recently as March, may no longer make sense.
So what has changed? Pretty much everything.
Don’t assume you’ll automatically be in a bidding war. Instead, find out how competitive the market really is
Bidding wars may have been the rule of the day since the surge in home buying took off in late spring of 2020 — but the competition may not be as fierce as it once was. In May, nearly 58% of homes under contract with Redfin agents were involved in a bidding war, a 15-month low.
