Today, we are seeing good deals on properties being offered as short sales and bank foreclosures. Often times there are multiple offers on these lower priced properties, especially on homes in good condition. This is making it difficult for some buyers to get the home they really want.
Investors are back in the market and are snapping up these properties with cash. In some areas cash buyers comprise about one quarter of the purchasers. These investors are driving the prices up over asking price and winning the highest bid.
It's good news that we are moving many of these properties off the market.
However, the buyer looking to occupy the property as his primary residence, buying with a traditional mortgage, often times feels as if he just can't compete.
The banks are finding the cash offers more attractive, since there are no inspection contingencies or financing contingencies. Thus, there is no concern as to whether the investor is overpaying for the property or whether it will appraise for today's market value.
This article is authored by
Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate
Brevard County Real Estate & Investing
I also buy, sell, rent, own and manage Investment Property.
that for you
Sandy, there is no doubt that this is happening! The asset companies are taking the easy way out by taking the investors cash offers........how can you blame them!
The banks are trying to protect their hind ends. Unless the investor is really seasoned, no inspection contingencies is disastrous. I'd rather see owner occupancy but money talks...
Hi Sandy, In our little market, I have no experience. However! I can see how this would be happening, and I think this is good in some ways. I'm with Paul, I would rather see a homeowner get the property, but any property that is no longer on the market, reduces inventory and eventually will bring about more balance in the marketplace.
Hi Sandy
As is sales with no inspections are becoming an issues with vacant homes.
Good luck and success.
Lou Ludwig
Hi Sandy, I see it happening here as well. They are buying some of the run down homes and will fix them up and most likely make a huge profit when they decide to sell them....
Hi Sandy-The saying money talks is so true. It happens more often than we know I am sure. Have a great Thursday. :-)
Sandy - That is a good question! However, here in Sacramento I don't think that is happening. With such a large percentage of our sales being repossessions, the bidding process can become quite virulent. But appraisers seem to be bringing in a number of low (if not very low) appraisals. It makes it difficult to bid on short-sales and repos, because the winning bid is not always the highest bid. Or if the highest bid wins, it won't appraise. Writing offers is becoming more voodoo magic, than educated guess!
Sandy, when the investors show up they will be competition for the traditional buyer. It is just the nature of the market, and the regular buyer has to make a fair offer with its terms and see where it goes.