BUSINESS + ECONOMY

Cash purchases making it harder for people to buy a home, some buyers say they’re being ‘priced out’

Jun 3, 2021, 7:54 AM | Updated: 7:59 am

SALT LAKE CITY — Are large corporations getting in the way of people buying homes in this state?  One Utah couple said they were priced out of buying a house after an out-of-state company bought some of the homes they were trying to get, but analysts don’t believe this is happening on a large scale.

Justin and Brenda Matthews have looked at over 40 houses in the last month and a half, and they don’t have anything to show for it, yet.  They had to look for a place ever since their landlord decided he wanted to flip his property, so he kicked them out.  Plus, they were already under incredible financial strain since their daughter had a kidney transplant.

Since they started searching, they’ve made offers on 12 different homes, and each offer was shot down.  They would have made 15 offers, but Justin Matthews said their realtor told them they would never be able to afford three of those homes since other people were offering thousands more above asking price.

He said, “It’s very frustrating.  There were a couple where our realtor said, ‘This is going to go for so much over that you just aren’t going to be able to compete.’”

Matthews said their realtor found out one specific company was able to be successful where his family wasn’t.

“She did some research, later, and she said at least four of them had the same LLC that bought the property,” he said.

Brenda Matthews said they were told very little information about the company who reportedly bought four of these homes.

She said, “We were told that they were an out-of-state company.”

Matthews said they were able to move in with another family, so they’re not under as much of a time crunch to find a new place to live.  Still, she wishes the process could be easier.

“It’s immensely frustrating, especially since we had a time limit where we had to get out of our place and we have a daughter who is super immune-compromised.  They didn’t want us to have her around other people,” she said.

The Utah Association of Realtors can’t confirm if corporations are buying homes in Utah on a large scale.  In fact, their research shows the opposite seems to be happening, with most buyers intending to live in the homes they purchase.  However, they are seeing an increase in cash purchases, which is making it harder for lower-income families to have their offers considered.  Former association president Dave Robison these kind of purchases are very attractive to the buyer since the seller has enough money to buy the property without going through a lender.  Robison said the shortage in housing has created such a frenzy, buyers are willing to do anything they can to speed up the purchase.

“They’re willing to forgo due diligence.  They’re willing to forgo an appraisal and they may not know until later what was in the property,” Robison said.

Robison said buyers are also willing to offer many thousands more than what the sellers are asking for, and families that can’t afford to do that have little chance of buying that home.

He said, “It’s very accurate to state that someone who has only three percent down or five percent down, they don’t have the ability to pay above an appraisal.  Those people being squeezed out… it’s definitely fair to say.”

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business + Economy

Lake Powell as seen from Navajo Mountain. The Navajo Nation is asking why their request for funding...

Eric Cabrera

Navajo Nation left wondering why funding continually denied

The Navajo Nation is asking why their request for funding for a road has been denied for the last 15 years.

2 days ago

Now hiring sign...

PAUL WISEMAN AP Economics Writer

US economy grew solid 3.2% in fourth quarter, a slight downgrade from government’s initial estimate

Far from stumbling, the economy grew 2.5% for all of 2023, topping the 1.9% growth in 2022.

2 days ago

baby feet, utah postpartum retreat helps new moms...

Britt Johnson

Utah company aims to help postpartum moms with special retreats

The founder of Utah Postpartum Retreat said she thinks new moms are at high risk for developing postpartum mood disorders because they lack support.

2 days ago

Power lines are pictured in utah, utah has lower electricity bill than other states...

Tammy Kikuchi

Study shows Utahns pay cheapest electricity bills in the country

Utah residents are paying less for power than any other state. Rocky Mountain Power says they work hard to keep it that way.

3 days ago

Welcome to Tooele sign is pictured on Saturday, Oct. 10, 2020.A Child was taken to a nearby Hospita...

Britt Johnson

Tooele Valley Airport to get some major updates

A new master plan for the Tooele Valley Airport will be shared with the public this week.

3 days ago

FILE - President Joe Biden speaks on student loan debt forgiveness, in the Roosevelt Room of the Wh...

AAMER MADHANI, COLLEEN LONG and COLLIN BINKLEY Associated Press

Biden says too many Americans are saddled with school debt as he cancels federal loans for 153,000

The first round of forgiveness from the SAVE plan will clear will help with $1.2 billion in student loans.

3 days ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

Cash purchases making it harder for people to buy a home, some buyers say they’re being ‘priced out’