I get where you’re coming from about sellers just holding out for the highest offer, especially in places where demand is nuts. But I do think if big investors are actually pushed out, it could at least slow down the crazy bidding wars. Last year, I tried to buy a place and got beat by an all-cash offer from a company that never even toured the house. It’s hard to compete with that, even if you’re pre-approved and ready to go.
That said, I’m not convinced prices would drop overnight either. There’s still a shortage of homes, and regular buyers are still competing with each other. Maybe it just means fewer “as-is” sales or less pressure to waive inspections? I’d honestly settle for just having a fair shot without feeling like I’m up against a hedge fund every time. But yeah, loopholes always seem to pop up... wouldn’t be surprised if some investors just find workarounds anyway.
I’ve seen a lot of clients frustrated by those all-cash offers too. Even if big investors are sidelined, you’re right—inventory is still the main issue. It might just shift the competition from hedge funds to regular buyers, but at least it could level the playing field a bit. Inspections and contingencies might actually come back into play, which wouldn’t be a bad thing. Still, I wouldn’t expect prices to drop fast unless more homes get built or listed. There’s always someone ready to find a loophole if there’s money to be made...
Inspections and contingencies might actually come back into play, which wouldn’t be a bad thing.
I get where you’re coming from, but I’m not convinced banning corporate investors will really “level the playing field.” Even if those buyers are out, you’ll still have folks with deep pockets—think doctors, tech workers, or people moving from pricier markets—making all-cash offers. The real bottleneck is supply, like you said. Until builders ramp up or more owners decide to sell, prices aren’t likely to budge much. I’ve seen plenty of buyers lose out to regular people paying cash, not just hedge funds. It’s a tough market either way.
I refinanced last year and had to compete with a couple of cash buyers—none of them were corporations, just people moving from out of state. Even with rates up, the demand’s still there. I agree, unless more homes hit the market, it’s not going to get easier for buyers.
Even with rates up, the demand’s still there. I agree, unless more homes hit the market, it’s not going to get easier for buyers.
That’s what I keep noticing too—there just aren’t enough listings. Do you think banning corporate buyers would actually free up more homes, or are regular folks from out of state still going to keep things tight? I’m curious if it would really make a dent, or if we’d just see a different kind of competition.