My family had a garage sale this past summer and we had an old recliner to which it was finally time to bid adieu. The chair was a beloved friend, accompanying us through football Sundays, scary movies and rocking sleepless babies at 3 a.m. We’d clearly gotten our money’s worth.
Coincidently, two gentlemen walked up at the same time and offered to buy our old soldier for asking price.
One gentleman pulled out a checkbook.
One pulled out cold, hard cash.
Guess who got the recliner?
Folks, this is no different than what’s been happening daily in the housing market. Banks and sellers looking to close deals quickly and easily take a look at investors’ cash-for-homes offers, weigh it against the average Joe with mortgage in hand, and they take the perceived easy route.
Who can blame them? But the tide is turning, friends!
In an article from REALTORMag.org, about 48% of those sweet-talking investors with their cold, hard cash surveyed by Campbell/Inside Mortgage Finance say they plan to lessen their home purchases over the next year. In fact, only 20% of the investors surveyed said they planned to buy homes in the next year at all.
Fewer investors in the market for homes means banks and sellers need to consider all their options. Suddenly, that potential buyer with preapproval in hand looks like an excellent option.
The good news with housing values going up, and consequently bargain-basement prices harder to find, investors are turning away from purchasing homes. If you’re a first-time home buyer, now is a great time to dig deeper, get educated and get into the game!
Have you been beat out by investors waving cash at banks or sellers? Let us know about it in the comments below.