Are Wholesalers Hurting Local Buyers?

[Micki M.]

When I work as a real estate broker here in Denver, I do primarily buyer rep. As you all know it is getting harder and harder to get buyers under contract with the lack of inventory. Recently I've been noticing many properties going under contract then showing up on my wholesale emails. It is frustrating because my buyers - starter home budget owner occupiers - are getting beat out by wholesalers. And it's surprising because I'm seeing that the offer prices must be significantly lower from the wholesalers. What are your thoughts on this Denver investors?

[Bill S.]

It's not fun but it represents the market. Saw a show home finish house sell for full price cash. It then shows up on the MLS 3 months later for about a 25% mark up ($285,000 to $350,000). How are they helping the market? Inventory is low and cash is king. At some point the music will stop again and we'll see who is left without a seat.