Considering today's low home prices, especially with distressed properties, and still low mortgage rates, this is a very good time to invest. An increasing number of investors recognize the opportunity and are actively pursuing the purchase of properties.
This trend is making it more difficult for some young first-time home buyers who are also very active in the market. In some cases, both investors and first-time home buyers make offers on the same property. It becomes a bidding battle, but the investor usually wins because he can usually offer a larger down payment and stronger qualifications for obtaining financing. However, most first-time buyers are very persistent. If they lose on one deal, they will quickly move to another property.
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services
Tony - with most of my clientele being first time buyers, many of them are indeed persistent, but not all. I have two clients right now that have lost out on so many properties that they are absolutely raging now because of all of the investors that they are losing out to and it's not because the investor offers are better than theirs.
In several cases, my clients offers were higher than the investor offers (one by 20%) but the REO LA took the investor offers because they were all cash. Personally, if I were some bank Asset Mgr, I would have taken the higher offers even if they were financed. Go figure!
Jul 22, 2009 02:51 AM
1st Metropolitan Mortgage - Manasquan, NJ
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services
Well I still believe "Cash is King" especially in this market. However, money is definitely not talking, at least in many cases where lower priced cash offers are being accepted over higher priced financed offers. Just doesn't make sense to me. You would think that they would want the most money for the property?
Jul 22, 2009 10:16 AM
Mid Jersey Inspections - Edison, NJ
Home Inspector, Mold Inspector, Radon and More!
Real Estate Resources
Recent Posts
Helpful information on the real estate and lending market.
Comments(4)