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You've most likely identified the signs around your neighborhood: "We buy houses," "Cash for houses," or "Offer us your home as/is!" You may have even groaned at how pervasive they've become. If so, you're not alone. These signs, which come from realty investment groups that scoop up homes across the nation often paying 10% or more below the marketplace worth are becoming increasingly more typical in today's hot realty market.

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Investor are using cash for houses in practically any neighborhood in any part of the U.S. nowadays, no matter the condition of the property, says Nick Bailey, chief customer officer at RE/MAX. In January 2021, average existing home prices jumped to $303,900 14. 1% greater than last year, according to the National Association of Realtors (NAR).

With house costs increasing, homeowners may be lured to sell their homes quickly, especially if they've lost their jobs or are under financial stress from COVID-19. And because a lot of homeowners don't understand how much their houses are worth, or that a couple of repair work might up its worth for a reasonably low cost, an info space is including fuel to the fire, according to Eric Sussman, an adjunct property professor at the University of California Los Angeles (UCLA).