There’s a unique phenomenon happening in the real estate market between buyers and home inspections. Many real estate agents have noticed that buyers are bolting after an inspection report comes in, even one with the slightest repairs. There have been cases when potential buyers ask for a refund back before even allowing the seller to offer new repairs on the property.
Why is this happening, you may ask? This blog post dabbles into the reason why, and we have more insight into this situation.
The author of said blog post believes that there are several factors that play into buyers leaving after inspections. For example, since the market is so hot right now, many buyers are pressured into jumping at any listing without careful consideration. True, a few years ago, there were a lot more houses on the market, and buyers had the pick of the litter. But now, some potential buyers don’t even get to go inside the property as it’s already under agreement (some within seven days on the market).
And because these buyers had more time to negotiate or shop around, they often felt good about their decision.
This scenario doesn’t happen quite often anymore. Buyers are feeling the pressure, they are feeling the competition. And in result, they aren’t sure whether they are putting in an offer because they truly want to the property, or if it’s because it’s difficult to find something else. That’s why when the last leg of the process presents itself (the inspection report), buyers then bolt. Even on the slightest list of repairs. They just aren’t sure this is the one because they hadn’t had time to process the entire transaction.
Think about it: Let’s say you’re in the mood to buy a new suit, or a pair of shoes, and the clothing store was about to close in 20 minutes. You like what you see but you can’t decide. You feel rushed so you go with whatever’s in front of you or whatever just fits properly. This future purchase fits the basic criteria: it’s black, affordable, you can wear it anywhere. Yet as you’re waiting in line to purchase the product, you may feel like you’re settling.
You deem this purchase as an “impulse buy” instead of feeling proud of how quickly and convenient this transaction was for you.
Since buying a home is more of a larger commitment, buyers just run out the door. It makes sense, right?