Home Buying in Tampa>Question Details

Tracy Hoyt, Real Estate Pro in Valrico, FL

Investors vs. traditional home buyers

Asked by Tracy Hoyt, Valrico, FL Mon Feb 25, 2013

What do you think of the homes being scooped up by the investors, leaving only the rejects for traditional buyers? What are you doing to combat that problem? Or do you see it as a problem?

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7
Tracy,

I agree with Octavia. Inventory is low and the plainfield is competitive all around. I built my business working alongside novice investors and found that it's important to strategize. Buyers need to understand that when a property comes available that they like, they need to act fast and present their best offers. Trying to low ball may cost them the deal.
1 vote Thank Flag Link Mon Feb 25, 2013
If a bank has a property on the market the so called traditional buyer has the first choice for the first 15days than the investors has the chance to buy only if the property is still on the market after the 15 day waiting period,even the investors have hard time to find properties, the inventory is very low.
1 vote Thank Flag Link Mon Feb 25, 2013
Well said, Octavia. Seeing the XX-day investor lockout notice on homes that hit the market frustrates me immediately.
Flag Tue Feb 26, 2013
While I sympathize with the spirit of the question, the facts don't. Traditional buyers, might get more of the "non rejects" if they spent less time on the internet and more time trusting professional realtors to get them in homes so they can make a move. The potential of finding the perfect home is always there, and most buyers understandably want the perfect home; however that desire for perfection most of the time stands in the way between them getting a reasonably "good deal" on a house they will like and being stuck on the sideline blaming the industry. While Trulia, Zillow, Realtor.Com, etc, are helpful "sparks" there are by no means a replacement to expertise, and "most traditional buyers, think the proper search, negotiation, inspections, and closing can be handled with simplicity- and that is not reality. Again, I totally agree with the spirit of the question, but most buyers have not yet realized it is no longer a true buyer's market.
0 votes Thank Flag Link Tue Feb 26, 2013
My situation and POV are different from yours. I have to rely on MLS web sites and sites like Trulia to keep me abreast of deals - even as an investor. I've had /maybe/ one agent I've worked with contact me personally to say she had a property I might be interested in.

Maybe it's the market I work in (typically Tampa and NW Florida), but agents do not seem to want to build relationships; so, I get on the Internet and do my hunting there.
Flag Tue Feb 26, 2013
Because a home is not bought by an investor does not make it a reject. For example, I would never buy a single-family home based on its charm and proximity to my workplace like a traditional buyer might. If I did not think the income it could generate would be a worthwhile investment, I pass it by; yet, it could be ideal for a young family looking for an extra bedroom and a shorter commute to work.
0 votes Thank Flag Link Tue Feb 26, 2013
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HOW DO YOU COMBAT

You take the preliminary steps to get a solid pre-approval letter and you deposit a significant amount of good faith money in your realtor's or title company's escrow to receive an escrow letter

Then make sure your realtor does not take short cuts like so many of them do, and send the two letters with every single offer

You'll be surprised at how something so basic will improve your chances to secure a deal.

===
0 votes Thank Flag Link Tue Feb 26, 2013
Traditional home buyer's and investors are two separate buyers who are not found fighting for the same product. I find investors cleaning up the market to be a positive and not a problem.
0 votes Thank Flag Link Tue Feb 26, 2013
I will like to add anyone buyers and investors cannot sleep on it any longer the old saying us back You snooze you loose
0 votes Thank Flag Link Mon Feb 25, 2013
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