Why you should be SELLING your multifamily investments NOW
For the first time in a while FHA buyers have a chance to win. This may sound like good news, but it is not.
In the past 2 years, it was likely that you would put your property on the market and investment buyers would be willing to pay close to the amount that FHA buyers were willing to pay. This is switching as investment buyers are losing value as rates rise.
FHA buyers and other low down payment owner-occupant buyers still need a place to live, while investors can find returns in other areas.
Current Market Conditions
The good thing for sellers is that appraisal prices should remain high for another 2-4 months as the houses purchased with loans that had rates locked in December of 2021 at around 3% have higher actual values than houses purchased today with 4.5% interest rates.
Appraisers don't have the luxury that buyers do of seeing the direction of the market. FHA buyers are almost forced to pay appraisal price, which keeps their exuberance in check so they don't spend too much.
Opportunities for FHA Buyers
Now the FHA buyer has an opportunity to mess up and buy houses that appraise but are not valued as much by investors. If you sell now, you can get one of these FHA buyers to purchase at appraised value.
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