Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Foreclosures
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 8 years ago on . Most recent reply

User Stats

321
Posts
412
Votes
Kevin Hill
  • Real Estate Agent
  • Westwood, NJ
412
Votes |
321
Posts

Biggest Competition for Investors This Year: The Owner Occupant

Kevin Hill
  • Real Estate Agent
  • Westwood, NJ
Posted

Here in Northern New Jersey, single family inventory is down over 25% from last year and there wasn't exactly a plethora of homes on the market then. This is also happening nationally (http://www.cnbc.com/2017/01/24/why-the-supply-of-h...).

I am an REO agent and it seems to be getting tougher and tougher to find good deals for my buyer investors. Banks are wanting full market price for their 'as-is' REOs and others they are actually renovating. Just sold a foreclosure listing where the bank did $85k+ in renovations including 2 completely new bathrooms, upgraded the kitchen, roof, HVAC, redid the floors, and even landscaping. They listed it slightly under value and had a bidding war with the winning buyer paying $10k over the list price.

Even if there is some money to be made on the 'as-is' sales for investors, your new enemy is the owner occupant.

A few years ago, it didn't matter what price point you were at, buyers wanted that updated kitchen with granite and the home to be move-in ready. Those days are done.

With less options to choose from, buyers are willing again to do major renovations to homes. Bad news for investors.

Recently had an REO listing where the home needs an entirely new roof and the 3rd floor needs to be gutted from leaks that permeated down into the 1st floor kitchen.

Never thought an owner occupant would want to buy this house. Bank wanted it priced too high I thought, an investor would never pay that much. Low and behold, I received 2 offers from buyers using renovation loans for full list price. The highest investor bid was $40 below that.

Investors, make sure you are doing your own marketing to generate leads and not relying on the MLS, because those good deals are drying up fast.

Anyone else seeing this in their markets?

Most Popular Reply

User Stats

1,100
Posts
701
Votes
Mark Gallagher
  • Flipper/Rehabber
  • Allentown, PA
701
Votes |
1,100
Posts
Mark Gallagher
  • Flipper/Rehabber
  • Allentown, PA
Replied

@Kevin Hill

Every "decent" home in the Lehigh Valley is going to multiple offers right now. Inventory is extremely thin. As you say, need to find other avenues to purchase. The sheriff sales have been packed with people looking for deals. There are still deals to be had, you just have to search a little deeper. If you find a good one, you should be able to get it back on the market quick and have no problem finding a buyer.

FHA 3-month anti-flip rules will really come into play if people are trying to turn over inventory quickly to that 150-250K buyer.

Loading replies...