The Buying Process - Just Some Thoughts

Some say that the real estate market is still in the tank. I can tell you that from my perspective, the market is rockin & rollin. There are still a variety of challenges in the market, but there is a possibility out there for almost everyone!

One of the unique challenges that buyers face in this market is an interesting hybrid between homes that are overpriced, short sales that take months to close, and homes that are being bid on by multiple parties and selling for well above list price. So, how does a buyer know what situation they are in?

First and foremost, it is important to contact your Realtor to determine the history on the property that you are interested in. Ask questions like: How long has it been on the market? How many times have they changed the price? Do they have any offers? Is this a traditional sale, a short sale or a lender owned property? You will gain quite a bit of knowledge about a property through these questions, and as one of my favorite cartoons taught me --- "Knowing is half the battle!"

Secondly, be very selective in the properties that you wish to see. With over 37,000 homes currently on the market in the Phoenix metro area, there will ALWAYS be another home to look at. You can spin your wheels quite a bit and spend a lot of time out looking at multiple homes only to find out that you are not going to have a chance to get them, or that they are in such bad shape...you don't want them anyway. Work with your Realtor to set up a very refined online search. Then narrow down the search to your top 3-4 properties for the first showing. That way, your Realtor can work with you to determine your likes & dislikes and can then refine your search criteria even further.

Lastly...what happens when you find the home you love? A lot of people are confused about what the market is telling them to do with their offer. Obviously, your Realtor is going to be able to provide you with a lot of guidance as to specific market conditions in that area, any mitigating factors, etc. What I always tell my buyers is once you've looked at the comparable sales statistics in the area, weighed in things like repairs, clean-ups, lot placement, and amenities...then it really comes down to what you are comfortable paying for THAT house. Keep in mind, this ever changing market can have you spending 10% less than asking price on a home, but can also see you spending 10-20% over the asking price to ensure you get the home you are looking for. Cash investors competing with buyers who need to use financing can definitely throw a wrench into the mix. So ultimately, bid what you are comfortable paying for the particular house based on your interest level and the qualities of the home.

The current real estate market has created several great opportunities for buyers. From the $8000 tax credit for first time buyers to interest rates which are at the lowest levels we have seen in a long time...the market is prime right now for any & all buyers. Please consult your Realtor to take advantage of this fantastic time to buy (hopefully...that Realtor would be me!).