WHAT BUYERS SHOULD KNOW BEFORE BUYING A HOME

April 25, 2012 at 12:37 pm Leave a comment

I frequently hear my clients say “the market is good. So, you must like it!” My response is, “Well, not necessarily, it depends on which side you are representing”. To clarity further, it is a simplier market if you represent the seller than if you represent the buyer. It is a good market for sellers because homes are selling quickly. However, it is a tough market for buyers who often lose out on several offers before finding a home. In this market, it pays if buyers are realistic than ever about price, length of time to find a home, home features, seller requirements and finding a great deal.

1. Price: Sellers are getting 97% of list price at current market. Low ball offers are a waste of everybody’s time.
2. Length of Buying Process: It takes longer to close on a home due to short sales that require lender approval and the bidding wars that exist among properties that show well.
3. Home Features: Because the demand for homes surpasses the supply of homes and because there is a 60% shortage of homes, it is helpful for buyers to shorten their “WANT” list and stick to the “NEED” list more than ever. It helps to be open-minded in this market. Otherwise, you could end up getting “nothing”.
4. Seller Requirements: It is a seller’s market. Some sellers require buyers to “see” the property before making an offer. In the past, many local and out of state investors make low ball offers without seeing the home and eventually cancel if the lender counters with a higher price. Without seeing the house, the buyer does not know the value of what they are buying.
5. Great Deals! – Buyer’s who are looking for the best deals in town can pose unrealistic expectations! Great deals come around less frequently than before. It takes “cash”, patience, a knowledgeable Realtor, connection and luck to make it happen.

If you’re the typical investor who cares only about the price not the house, I suggest conducting a prior research about the market and stay with a Realtor who you could trust. Otherwise, it may benefit you to find a home on your own.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Real Estate Deals. Tags: , .

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