The record-setting housing market brought stories of frustrated home shoppers being repeatedly outbid and using risky strategies, such as waiving contingencies, to be competitive. But Zillow’s Consumer Housing Trends Report says otherwise.
The typical homebuyer surveyed this year submitted only two offers before one was accepted, up from one in each of the previous three years, and a majority (88 percent) had an inspection done before they closed.
“Our 2021 survey of buyers found buying a home got more challenging in the past year, but many buyers were ultimately successful in landing a home without taking unnecessary risks,” Zillow Population Scientist Manny Garcia said in a release. “Most buyers continue to get inspections, and sellers appear to prioritize higher offers over waived inspections. Most buyers are ultimately achieving homeownership by doing their research, making trade-offs, and considering a diverse array of options.”
The survey finds first-time buyers do struggle more than repeat buyers. First-time buyers tend to have smaller down payments, in large part because they are less likely to have equity from a previous home, which can make their offers seem less competitive. About two-thirds (67 percent) of first-time buyers submit more than one offer, compared with 54 percent of repeat buyers.
While desire for virtual tools and 3D home tours is growing, home shoppers still value seeing a home in-person before making an offer, according to the report. In 2020 and 2021, the typical buyer went on three private tours, and only 5 percent skipped a private tour completely. The typical homebuyer went to one open house, and over half (56 percent) attended between one to four.
“Buyers still strongly prefer in-person tours, but virtual tours help people see a home if circumstances don't allow and have helped a number of buyers get a speed advantage in the market. Virtual tools are a great addition to help buyers decide what houses they want to go see in-person,” Tom Toole, team lead at Tom Toole Sales Group at RE/MAX Main Line, said.
About two in three survey respondents (68 percent) said 3D tours would help them get a better feel for the home than static photos, and 61 percent said both they wished more listings had 3D tours available and preferred to schedule in-person tours online.
The share of buyers who say they are at least somewhat confident making an offer after seeing a virtual tour, but not an in-person viewing, increased from 55 percent in 2020 to 58 percent this year.