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Why some people are refusing to sell their homes to investment funds

A lot of people are refusing to sell their homes to investment funds, an estate agent says. Howev...
Stephen McNeice
Stephen McNeice

14.14 20 Aug 2021


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Why some people are refusing t...

Why some people are refusing to sell their homes to investment funds

Stephen McNeice
Stephen McNeice

14.14 20 Aug 2021


Share this article


A lot of people are refusing to sell their homes to investment funds, an estate agent says.

However, he says this isn't a new development - suggesting some vendors will always see the "human side" when considering the bids they receive.

It comes after the Crazy House Prices Instagram page highlighted cases of sellers who are now making sure they sell to first or second-time buyers rather than funds.

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Ciaran Mulqueen, who runs the popular page, told Lunchtime Live it has been "really lovely" to hear so many examples of this happening.

He said: "I do this thing called weekly good news… what has been coming in over the last while is a lot of people who have refused to sell their homes to investment funds or investors, and opted to sell to a first or second-time buyer - a real person rather than a fund.

"Sometimes it’s nice to delve into the nuance of property and understand this is someone’s home  - not everyone is out just to make as much money as possible.

“The reasons they’re giving me… a lot of the time they want to look after their neighbours. They want to sell their home to somebody who will be a good neighbour.

“They also want to see their home go to someone else, so it will be a home rather than an investment.”

He said a lot of this is anecdotal evidence, and there will always be people who won't have the luxury of not choosing a fund if they're offering the highest price.

He said: "People who are selling now... the next house they’re buying is obviously inflated in price as well.

"It does take a lot for someone to take a little bit less… to give a real person a chance."

“Not all vendors are driven by price"

Barry McDonald is an estate agent with REA McDonald and a spokesperson for the REA.

He said they've definitely seen many vendors opting to sell to couples and families rather than funds, but it's "nothing new".

He explained: “It has been something I’ve witnessed since I began in my career 20 years ago. More recently… we’re in a housing crisis, and there’s a real awareness of how difficult it is for buyers.

“There have been a number of occasions where we’ve seen vendors getting more for their house than they budgeted for, and as a result, they’re not as price-driven and are open to having empathy for the buyer.

“Not all vendors are driven by price. Of course, some are - some have to be because of their situation."

He stressed that estate agents "are human beings too", and it can often be beneficial to establish a rapport with an estate agent and let them know your particular circumstances so they can communicate that to the seller.

That was advice echoed by Ciaran, who said: "Sometimes that can work in your favour.

“A buyer just needs to set themselves out from the pack in any way they can."

However, property consultant Ciara Sheehan says she hasn't seen a trend of sellers rejecting funds in favour of families or first/second-time buyers.

She said: “I did hear of a case a couple of years ago… where a family decided they’d sell to another family rather than a builder. But that was before we got to the extremes of the market we’re in now.

“Unfortunately, funds are in the room with first-time buyers. It’s very disheartening when you can see what will happen and how it will play out.”

Why some people are refusing to sell their homes to investment funds

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Recent reports have shown a 'more or less unprecedented' rise in house prices over the past year.

Nationally, prices have risen by around 13% in just 12 months.

Meanwhile, the Government earlier this year took steps to increase stamp duty on funds attempting to bulk-buy houses amid widespread outcry over funds buying up the majority of homes in some estates.

Main image: File photo. Picture by: Andrew Matthews/PA Archive/PA Images

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