Are Cash Buyers Driving Down Home Prices?
I saw another real estate article in my daily update from Florida Realtors that made me roll my eyes.
In the article (link here), cash buyers are blamed for forcing down home prices, because a recent survey showed 1 in 3 buyers were cash investors.
Since when does having cash translate into a bank or a private seller dropping their sales price? Yes, it's a great tool to have in a negotiation to leverage terms or in a multiple offer situation (in which case, the property price is usually bid UP), but it's a bit of a stretch to blame the continued soft real estate market on investors.
As Realtors we should be watching unwanted government intervention as the cause of unhealthy real estate markets to help speed recovery and rebuild confidence in the buying public.
In the article (link here), cash buyers are blamed for forcing down home prices, because a recent survey showed 1 in 3 buyers were cash investors.
Since when does having cash translate into a bank or a private seller dropping their sales price? Yes, it's a great tool to have in a negotiation to leverage terms or in a multiple offer situation (in which case, the property price is usually bid UP), but it's a bit of a stretch to blame the continued soft real estate market on investors.
As Realtors we should be watching unwanted government intervention as the cause of unhealthy real estate markets to help speed recovery and rebuild confidence in the buying public.
Comments
Post a Comment