A new report from the National Association of Realtors shows that here in Texas, 28% of all homes were sold to institutional buyers, defined as companies, corporations and LLCs.
That's the highest share among all states by a very wide margin and more than double the national rate (13%).
The survey showed that the median price of homes sold to institutional buyers is typically 26% lower than the area's median price, since many were homes that needed repairs.
Of all the homes sold to institutional buyers, 45% were flipped, and 42% were offered as rentals.
41% of offers from institutional buyers were higher than offers submitted by individual buyers, with 8% of those offers being 20% higher. 15% of offers from institutional buyers were about the same as those from individuals.
Some of the reasons that homeowners sold their homes to institutional buyers include:
- Wanted cash (29%)
- Sell as is (27%)
- Wanted to sell at a specific date to a guaranteed buyer (18%)
- Ease of sale or other reasons (11%)
- Did not want multiple showings (8%)
- Could not obtain mortgage (4%)
- Help with moving (3%)
When broken down by county, 10 out of the top 21 counties were in Texas, with five of them being in the DFW area:
3. Tarrant County (52%)
4. Rockwall County (45%)
5T. Midland County (44%)
7T. Dallas County (43%)
9. Travis County (41%)
11. Denton County (39%)
12T. Harris County (38%)
12T. Kaufman County (38%)
15T. Williamson County (37%)
20T. Collin County (34%)
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