Homebuyers are taking unprecedented measures to make their offers stand out to sellers as the red-hot real estate market booms.
Prospective homeowners are going as far as offering over-asking prices, dropping contingencies for inspections and appraisals and closing on the home within 30 days, FOX Business’ Gerri Willis said on "Cavuto Coast-to-Coast."
As market competition stiffens, data from Redfin showed that between September 2020 and February 2021, nearly 18% of successful offers waived the appraisal contingency, while 13% waived home inspection contingencies.
The trend comes as the real estate market is seeing an uptick in sales amid the coronavirus pandemic, with houses often getting several offers each. The median price of a home is currently at the highest level in history, hovering around $353,000 — a 17% increase from a year ago.
Escalator clauses, which allow a seller to increase a suggested purchase price in order to secure the bid, are also being offered.
"They're doing escalation clauses to beat whatever was the highest offer. They're doing everything and anything they can because... every single property, pretty much, is getting multiple offers and some of them, as many as 20 or 30 offers on each property," Berkshire Hathaway HomeServices CEO Candace Adams told Willis.