Things to Know About Institutional Buyers
These investors often rely on data- and technology-driven tools to find neighborhoods where buying in bulk is likely to pay off, then typically make cash offers.
NORWALK, Conn. – House-hunters searching for their ideal home in today's tight market must compete not only with individual buyers but also institutional investors. These powerhouses lean on data- and technology-driven tools to point them to neighborhoods where buying in bulk is likely to pay off.
Once they identify good bets, they typically approach owners with cash offers to buy them out. Although a cash deal is tempting and theoretically quicker, agents and brokers should educate clients about individual investors to equip them to make informed decisions about selling.
The goal for investors targeting single-family homes is typically to convert them into rental units, which some say reduces available options for buyers.
One camp of economists, however, argues that increases in single-family rentals will balance out through new single-family construction. The point may be moot, as persistently high interest rates are dragging down buyer interest – whether individuals or institutional investors.
Source: RISMedia (10/27/23) Meenan, Devin
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