
You would think after watching the news that this would be a buyers market. Unfortunately, nothing could be further from the truth in Phoenix. Because home prices are ridiculously low, probably about the lowest they've been since the late 1970's or earlty 1980's, together with interest rates also being the lowest they've been EVER, not to mention stimulus monies of up to $8,000 if you buy a home before the end of this year! The moratorium that they placed on foreclosures starting with former President Bush and continuing with President Obama, the short sale inventory became very low, much lower than the demand. The Moratorium was lifted at the beginning of April and the foreclosures began at record numbers. However, the supply also increased.
At this point, you have to expect to be competing against a minimum of 5 offers. It is very common for you to compete against more like 10, maybe 15, or even 30!
So what do in a market like this? Most people want to throw their hands in the air and call it quits until things slow down. Unfortunately, things are very likely not to slow down until prices rise much higher, as they've already begun to do. I've got better ideas. You need to take control of the situation! Look at it like a game. People are going to be purchasing some killer properties at even more killer prices. Here are some tips to help!
*Know and understand the process before you start. Knowing the process allows you to move through it quickly, without feeling rushed or stressed! Being on your toes and moving quickly means getting a lower price & getting the home you like.
*You need to find a lender and get an LSR (Loan Status Report). You must have an LSR in order to turn in an offer to a bank, so you might as well have that ready before you start looking. It's also important to know that your lender is experienced & can move fast. A loan that can close fast can help beat out the competition.
*Take your time to study the properties available on the market right now. Take a few days and drive through all the potential neighborhoods that you are considering. This will help you know when you've found the right house for you!
*Find a good realtor that can also move fast! Not pushy, but knows how to move quickly. They should also have good negotiating skills. They need to build raport with the other side and get the listing agent to start working with you!
*Have a fresh list of properties emailed to you every day from a realtor, if this is not happening already, & go see those properties you like that day!
*Be prepared to put down an earnest money amount of atleast $2,000. The banks especially love to see a high earnest money amount. Don't worry about losing it. As long as you have good contingency deadlines and stick to the contract, you have no chance of losing it.
*Expect problems to arise. If you have built a good team of experts around you, such as a good realtor, lender, title company, etc... then you can let them handle the problems & you can worry about picking out the new furniture.
You can contact me with any questions or needs!
Aaron Gates Carlton
Investment Realtor
602-810-4035
www.MeritRealty.org
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