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IRVINE, CA-Local investors may have the advantage of large institutional home buyers for a variety of reasons, Daren Blomquist, VP of RealtyTrac, tells GlobeSt.com. Having “boots on the ground” and intimate knowledge of the market gives local buyers better perspective on how much homes are actually worth.

Blomquist says the trend of large institutional buyers purchasing single-family homes for rental “is pushing out the smaller, mom-and-pop investor—as well as owner/occupant buyers—because these institutional investors are typically willing to operate on thinner margins and buy at smaller discounts than those mom-and-pop investors and owner/occupant buyers. The local mom-and-pop investors still have the advantage when it comes to knowing the market and the true value of homes that are being purchased. For this reason, I think in some cases the institutional investors are probably overpaying for homes.”

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