Investors Snagging House Bargains
Investors are out in droves snapping up discounted properties.
I haven’t done a scientific poll to prove this, but if you listen to real estate agents, auctioneers and even some prospective homebuyers who’ve had their purchase offers rejected you’ll believe that to be the case.
In today’s Boston Herald, for example, a story about an auction held in Boston on Monday night gives readers an idea of what kind of deals can be had in this housing market. At the auction, one bidder bought a Foxboro condo that previously went for $206,349 for a little over $89,000
“First-time homeowners and investors walked away with some incredible bargains,” the auctioneer told Herald reporter Thomas Grillo.
In some cases, these investors are also driving up prices. A friend recently told me about a multifamily home in Newton that he and his wife wanted to purchase. He put in an offer but there were several other offers on the home.
He refused to increase his offer and the home eventually went to someone who was prepared to pay several thousands more than the asking price.
Such multiple offer situations and bidding wars are a bit disappointing for prospective homebuyers who’ve been told that price reductions make this a good time to buy — particularly in neighborhoods that they previously couldn’t afford.
November 9th, 2009 at 2:42 pm
In regards to this article in which the writer leads one to believe that allthough there are opportunities to buy a home that homeowners are getting shortchanged here because investors are driving up the price and in reality it is usually the number of buyers out there compared to the number of vialble homes for sale. What I mean is that allthough there are a lot of home for sale and homes prices are down when a good home (based on location and condition)comes on the market there can be times when there are multiple offers on the homes hence the rise in prices but in those case you will find that it is usually the homeowners who drive it up as investers are there to make a profit and will not over bid on homes but homebuyers or the inexpierenced investor over bids and forces up the home.
What homebuyers need to do is find and select a realtor to work with.
This person can keep them informed when these hot properties become available and also recommend what to offer based on their expierence. They can also help you find a way to buy that is being over looked. That is the tired and in need of repair home that has been on the market for a while because it is more then an investor wants to pay and needs more work then a homebuyer want to do or pay for but with the goverment sponsored 203K program homebuyers with an eye can gets some good deals.