Are investors keeping prices down?

[Account Closed]

We all stress when we flip properties to buy as low as possible, do the work right, and then price 10% (or whatever your prefer) under the competition on the market. If investors continue to do this, we will be undercutting the market it seems, right?? We will be selling properties that are rehabbed and in better condition for much less money. What impact does this have on normal sellers who just need to sell? Will this not perpetuate the foreclosure crisis? Maybe I'm missing something, but I would love to hear different opinions.

[Mitch Kronowit]

Another way of looking at it is investors form a large market of buyers, purchasing properties what would otherwise go unsold, at least at their current prices. That helps support the bottom, otherwise they would fall even further dragging down the rest of the market. And just because they're selling their shiny new flips for 10% below prevailing market rates, remember those market rates would be much lower were it not for investors supporting the "floor" in the first place.