Average home buyers are being shut out due to all cash offers in today's market. With the influx of inventory being released by the banks, an enormous amount of all cash offers are swooping up the inventory and dominating the market. The lineup against average buyers are fiercely competitive investors, others paying cash, a scarcity of homes for sale, and bidding wars that have run up prices and even problematic appraisals.
In a normal market, increasing demand and rising prices would encourage more sellers to put their homes on the market which is a slow occurrence because home prices fell so low during the crash that many homeowners can still only sell their homes at a loss with little to no profit.
Another obstacle for some would-be buyers are those who are paid by commission or who are self-employed. The self-employed or comission paid people may fall outside the credit guidelines of Fannie Mae or Freddie Mac; the two government-owned companies that purchase mortgages from banks.
According to Barbara Caley, part owner of LCL Realty and Property Management "With the increase of market inventory, banks have been offering to carry. However, since there has been a significant increase of all cash buyers the banks have opted to accept the cash offers over any carry. This has been making the market highly competitive and inventory has been flying off the shelves."
If you or anyone you know are in this type of situation please contact our office at (951) 260-0711. We have experienced agents that will work with you given any situation. Let us help secure your dream home today!