Thanks to historically low inventory and high demand for properties, in today’s market, bidding wars are the norm. And in order to give themselves a competitive edge in said bidding wars, many buyers are willing to go the extra mile to make their offers more attractive—including waiving contingencies.
According to the most recent REALTORS® Confidence Index from the National Association of REALTORS®, in May 2021, 28 percent of buyers waived their appraisal contingency—while 25 percent were willing to waive their inspection contingency.
Buyers are also putting more cash down in an effort to make their offer more attractive and win bidding wars. According to the index, in May, 52 percent of mortgages had at least a 20 percent down payment, including about one in three first-time buyers—a significant increase over the past 10 years (in 2011, 40 percent of mortgages and 25 percent of first-time home buyers put down a down payment of 20 percent or more).
So, what does this mean for you? In today’s market, competition for properties is fierce—and if you’re planning to buy a home, you may need to go the extra mile to make your offer stand out in a bidding war.