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Credit: Getty Images/ BARTON
The housing market in 2021 was a wild ride. Waived inspections, houses going for way over asking price, and the three words all buyers dread: all cash offer. How is it possible to compete in this market in 2022? And is it really as frenetic as it seems? To find out, I asked 14 homebuyers how they managed to get their offers accepted in cities across the country. Their answers might surprise you. (Spoiler: There were far fewer waived contingencies than I expected!)
1. Kaylee — Cashiers, North Carolina
When: September 2021
Asking Price: $280,000
Offer: $260,000 — “The house had been on the market just shy of two months and we knew we’d need to gut the primary bathroom and rework the kitchen at a minimum.”
Original Budget: $300,000
Contingencies Waived: None
Final Sale Price: $270,000
Number of Homes Toured: Seven in 13 months
“We had already waited for nearly a year and we were watching the prices climb pretty rapidly. We tried to reset after each house we lost out on, but it’s difficult not to feel the pressure to buy before you’re priced out of the market. On the flip side of that, our equity has increased by at least $200,000. There is currently nothing on the market in the area for less than $500,000.”
2. Katie — Washington, D.C.
When: November 2021
Asking Price: $284,500
Offer: $275,000
Original Budget: Under $300,000
Contingencies Waived: None
Final Sale Price: $275,000
Number of Homes Toured: Nine in two months
“I wasn’t initially looking to buy, but was pushed because of the pressure and hype around the market and low interest rates. I ended up buying a condo that needs some work, but it’s in a good location and the price will allow me to make improvements.
3. Lauren — Atlanta, Georgia
When: March 2021
Asking Price: $335,000
Offer: $310,000
Original Budget: N/A
Contingencies Waived: 30-day closing
Final Sale Price: $310,000
Number of Homes Toured: 18 in ten months
“The 2021 Atlanta market was insane and I felt a huge amount of pressure to offer high, decline contingencies and settle for less. People are moving to Atlanta at a rapid pace — particularly from tech and film industries in more expensive cities like LA, San Francisco, and New York. That means more money is often available for down payments and more all cash offers; I felt left behind. Overall, the experience was stressful.”
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4. Helen — Lexington, Virginia
When: August 2021
Asking Price: $400,000
Offer: $400,000 through an off-market private sale
Original Budget: $400,000 to $550,000, depending on the renovations needed
Contingencies Waived: None
Final Sale Price: $400,000
Number of Homes Toured: Four in 12 months
“We bought through a private sale which allowed us to purchase at/below market value rather than at an inflated price point. The sellers own the neighboring property, which is the only other home on the road, and wanted to sell to us because we’re family friends. We feel lucky to have been able to have it work out because similar properties were priced much higher. Before this, we never purchased a home without an agent.”
5. Rachel — Silver Spring, Maryland
When: September 2021
Asking Price: $460,000
Offer: $450,000, but matched up to $10,000 in appraisal to cover closing costs
Original Budget: No set budget, but wanted my all-in monthly payment to match my rent
Contingencies Waived: None
Final Sale Price: $460,000
Number of Homes Toured: One
“I was offered to purchase the house I was renting. I was not looking to become a homeowner in 2021, however knowing how the housing market is, I felt it was the best decision to purchase. I knew there would be no competition and we liked the house and area we lived in and thought we would struggle to find something we liked elsewhere for a ‘reasonable’ price.”
6. Sara — Nashville, Tennessee
When: June 2021
Asking Price: $529,000
Offer: $529,500 — “We met them at asking, but added a request of around $5,000 of custom work added to the house. Custom work included making the porch wrap around, adding millwork above the fireplace, adding hidden/millwork coat and shoe closet space under the stairs.”
Original Budget: $450,000 to $550,000
Contingencies Waived: None
Final Sale Price: $535,500
Number of Homes Toured: Five in three months
“Looking back, I would have bought the same house but I would have been more attentive and assertive during the closing process. In hindsight, this was partially because it was our first homebuying process, so we didn’t know what we didn’t know and it was a new build, which presents new challenges. We got really lucky that we missed the early 2021 lumber issue — we were told other contracts in the area had riders that stipulated the contracted price could change based on the price of lumber at the last minute.”
7. Patricia — Alexandria, Virginia
When: November 2021
Asking Price: $625,000
Offer: $625,000
Original Budget: $700,000
Contingencies Waived: Home Inspection was “right to void” only, conveyances “as-is”
Final Sale Price: $625,000
Number of Homes Toured: 10 in two months
“We were SHOCKED by how quiet the market was at the time we were on our search. We were able to tour homes and they’d still be on the market for a few weeks with some new inventory still appearing. We didn’t have to compromise, we actually got more than we thought we would. We did not expect to have a basement, a yard, and a 10-minute walk to public transit.”
8. Mackenzie — Oak Park, Illinois
When: June 2021
Asking Price: $659,000
Offer: $680,000 “We had an escalation clause as we knew we were in a multiple offer situation, and we went right up to our escalation clause. We also had a late close to allow the homeowner time to finish out the school year.”
Original Budget: $750,000
Contingencies Waived: None
Final Sale Price: $680,000
Number of Homes Toured: Six in two months
“We were moving cross-country and did not want to have to rent upon arrival to our new city, so we made this offer sight unseen (though we did fly in a few days later for inspection and would have been able to pull out if desired). We were really decisive and quick to make a decision, but we still got all our non-negotiables, including a move-in ready house in need of cosmetic-only updates and a historic and safe neighborhood.”
9. José — Boston, Massachusetts
When: May 2021
Asking Price: $699,000
Offer: $740,000
Original Budget: $650,000
Contingencies Waived: A $5,000 inspection contingency waiver. Made clear in the terms that flooring and windows were not subject to that contingency. We knew that they clearly needed repair.
Final Sale Price: $740,000
Number of Homes Toured: 12 in five months
“We felt like 2021 was our time to buy. We saved considerably over almost a decade and were tired of renting. When we started the market was still fairly tempered, but as we started to get serious, that is when the hype engine kicked in. It was frustrating to see open houses looking like nightclubs with lines around the block. But working with our agent and our loan officer, we felt a house was within our reach and interest rates remained favorable.”
Credit: rSnapshotPhotos/Shutterstock.com
10. Melissa — Atlanta, Georgia
When: December 2021
Asking Price: $799,999
Offer: $799,999
Original Budget: $800,000
Contingencies Waived: None
Final Sale Price: $799,999
Number of Homes Toured: 10 in three months
“I felt pressure to buy in 2021 because I knew interest rates would rise! I had to make a decision on the spot, but I got my big kitchen and the only thing I sacrificed was a yard.”
11. Laura — Charlottesville, Virginia
When: November 2021
Asking Price: $1.1 million
Offer: $1.1 million
Original Budget: $900,000
Contingencies Waived: Inspection — “We bought a flip and put it under contract before it was completed to avoid a potential bidding war. This put us at risk of losing our earnest deposit of 5 percent if we walked before closing due to construction issues or the flooding basement we found at inspection due to the gutters being removed.”
Final Sale Price: $1.1 million
Number of Homes Toured: 15 in 20 months
“We started looking in February 2020 before COVID hit and the pandemic made finding a house increasingly difficult. Most of the houses we looked at went for cash and 20 percent over asking. We were concerned about the rising mortgage rates and lack of inventory in our small city, and, looking back, we would not have bought the same house.”
12. Jennifer — San Diego, California
When: March 2021
Asking Price: None, off-market listing
Offer: $1,100,000
Original Budget: Absolute max was $1,500,000 but that would have been a real struggle and made us “house poor”
Contingencies Waived: Didn’t waive inspection, but waived any inspection repairs
Final Sale Price: $1,150,000 with some furniture included
Number of Homes Toured: Over 25 in six months
“We had to look in different areas than we initially envisioned. Although we absolutely adore our neighborhood now, it was never on our radar. We sacrificed walkability for a quieter neighborhood and much larger house than we could afford otherwise. In hindsight, I wouldn’t change anything because we found our dream home in a great hidden gem of a neighborhood!”
13. Meredith — Washington, D.C.
When: November 2021
Asking Price: $1.89 million
Offer: $1.75 million, with escalation clause at $15,000 up to $1.825 million
Original Budget: $1.75 million
Contingencies Waived: None
Final Sale Price: $1.825 million
Number of Homes Toured: Six in 18 months
“The market is crazy. Low inventory and VERY high prices. We compromised and bought an older home that needs some updates but we know we can make them eventually. Also needs work in all bathrooms but the house has good bones.”
14. Jennifer — Bethesda, Maryland
When: May 2021
Asking Price: $2.4 million
Offer: $2 million, it had been sitting on the market for a few weeks with no offers
Original Budget: $1.5 million
Contingencies Waived: None
Final Sale Price: $2.22 million
Number of Homes Toured: Over 50 in 10 months
“We started looking before we had our second baby and I had the baby during our search. Our baby was sleeping in the bathroom and it wasn’t sustainable for long! We previously bought in 2016; 2021 was a whole different ball game. The competition was insane — we lost out on four houses to all cash offers. We would be touring houses right when they were listed online and they would sell while we were in them!”