The 2021 investment property boom saw institutional investors account for roughly 25% of transactions, competing with homebuyers using cash purchases and waived contingencies that pushed prices higher across the board.
Investor Activity
- 25% of transactions investor-buyers
- Cash purchases common
- Waived contingencies standard
- Price insensitive
Investors competing with homebuyers.
Market Impact
Investor purchases reduce homebuyer inventory.
Prices driven up by investor competition.
Appraisal Considerations
Investment properties valued on rental income + appreciation potential.
Income approach often weights equally with market approach.
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