'Exceptionally well-qualified' buyers are closing on homes in 2018

Those with experience and cash are undeterred by today's buyer frenzy

'Exceptionally well-qualified' buyers are closing on homes in 2018

Homebuyers who succeeded in closing on homes in the first half of the year have been exceptionally well-qualified, according to survey results released by realtor.com.

"While would-be buyers struggle with limited inventory, rising prices, and mortgage rates, those who closed were undeterred by today's buyer frenzy,” realtor.com Chief Economist Danielle Hale said. “This is likely attributed to their experience, cash, and perhaps the market they've chosen to buy in."

The survey revealed that 34% of those who bought a home were unfazed by increases and prices and rates. Additionally, 51% did not pay above asking, and 42% only made one or two offers. The survey was conducted by Harris Research and included online responses from more than 1,000 people who closed in 2018.

Realtor.com found that the typical successful buyer during the period was in the market for six months or less (61%), made four or fewer offers (72%), and bought a three-bedroom, two-bath home. Older buyers, or those 55 years old or older, had the easiest time purchasing a home.

While a majority of successful homebuyers (51%) did not have to pay more than asking price, realtor.com found that these buyer succeeded by enticing sellers with cash. Realtor.com also said that more than 30% of buyers during the first half of 2018 put more than 20% for their down payment.

Larger down payments were found to be most common among those aged 55 and older (51%). Only 22% of those aged 18 to 31 and 32% of those aged 35 to 54 put more than 20% down.

 

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