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First, I apologize if this is a question that has been asked recently, as I don't regularly visit this forum.
Second, I am not sure that I phrased the question coherently, so I will try to explain it better as it might apply to myself in ten years:
In my tourist-oriented community, many of the more modestly-priced SFH's are being bought up by investors to use as investments as STRs, but there is a serious shortage of homes for "ordinary people". Would it therefore be illegal, or is it even possible, to "screen" offers as to whether the buyer is looking for a home to live in, or whether it is a wealthy person looking to make some extra money and add to their 'portfolio'?
You are not permitted to screen for race, and other protected items, but you are not required to accept any offer that comes in, as long as your reason for declining is not for one of the forbidden reasons.
Sure, as stated above, be aware of housing discrimination laws and don’t violate them. Its perfectly legal to make sell decisions based on the planned use of the property. Many sellers have done this.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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For people like you selling and wanting to help the community, that's great. Unfortunately for most people the offer accepted is the highest, and easiest. In other words, a full price or over, with cash, no mortgage needed, and that's most likely going to be the investors. No worries about qualifying, needed PMI, or additional work after inspections to meet lender requirements.
What’s to stop an investor from saying they plan to live in the house?
Well, my guess would be that if it was a family or couple making an offer was currently living in a nearby apartment, or in a small house that they had apparently outgrown, and their household income according to their last tax return showed less than, say, $80k a year with all that income coming from jobs, I would think that chances are that they are not "investors" would be pretty good. (Of course, I could be wrong about that.)
But that being said, if someone bought it, lived in it, modernized it and then sold it a few years later, I would have no problem with that (if I found out). However, we are not talking about a fixer-up or "flip" house here -- so unless the market really exploded, someone in modest circumstances would probably not make a great profit on it. (Again, I am talking about my specific home, and not homes in general here,.)
In the Bay Area, some groups will only sell within their group so Americans are getting pushed out of the market. It may not be legal but it is a common practice, just look at the results. If you are interested in selling your home, let your own circle of friends know so they can have an opportunity or know someone who may be interested. There is no law requiring anyone to use a commissioned salesperson who are required to comply with the law so you are free to use For Sale By Owner to set your own agenda. When I worked for a college HR, it was common to target who they sent job announcements to which allowed them to claim there weren't enough qualified candidates so they standards were lowered. You can also target who you advertise your house to and avoid investors when you eliminate commissioned sales people and get legal advice from an actual lawyer about the contract.
Sadly, with today's interest rates many buyers will be pushed to the sidelines for years to come.
Well, my guess would be that if it was a family or couple making an offer was currently living in a nearby apartment, or in a small house that they had apparently outgrown, and their household income according to their last tax return showed less than, say, $80k a year with all that income coming from jobs, I would think that chances are that they are not "investors" would be pretty good. (Of course, I could be wrong about that.)
But a seller doesn't get to see any of that. The seller of my current home had no idea where I lived or my salary.
But a seller doesn't get to see any of that. The seller of my current home had no idea where I lived or my salary.
Thanks -- I was wondering if that info would be/could be shared -- but then I have been reading about people sending a "personal letter" with their offer telling the seller why they want the house. I think there might be some kind of "this is okay, but don't cross this line" kind of situation?
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