Arizona is truly a goldmine right now! Although the economy is not at its peak, as it was in 2005/2006, we are surrounded in a Buyers Haven!!
The three most commonly purchase properties in Arizona are:
- Short Sales
- Lender Owned properties
- Traditional Sales
We see very few traditional sales in this market; in fact, they are few and far between. It’s always a pleasure for a Buyer and Seller to work a traditional sale where deals still close, timely, have little to no frustration, and all parties are satisfied.
There are many Lender Owned properties and these are also a relatively satisfying experience as long as we are working with the Lender before the scheduled auction date. Typically the Lender will have an appraisal done, so if the Buyer is being financed, we could encounter a problem. Why? Because we have absolutely no idea what the appraisal value will come in at. If it’s lower than the purchase price, the deal is pretty much dead since the Buyers Lender won’t fund, unless of course the Buyer comes in with more cash… and would a Buyer want to do that in this economy when the home doesn’t appraise for the purchase price? Likely not!
So in summary, Lender owned properties are perfect for Cash Deals, and financed deals, as long as they appraise in your favor.
Short Sales are another matter. I have seen them cause both Buyers and Sellers, misery, grief, frustration, upset, yet on the flip side, relief. Allow me to explain. A short sale is a property being sold short of the debt owing on the property. In saying that, the Seller/Homeowner, is not the sole decision maker when offers come in on the Short Sale. Because they are selling the house short of their debt, the Lender/Investor, also has a say in this matter. The dilemma we are faced with is that the Lender/Investor do not expedite these transactions, in fact, they are extremely slow, tedious, and require a lot of patience and perseverance. Again the appraisal factor comes in, and ultimately, several months (typical time frame) later the Investor either accepts, denies, or counter offers the Buyer. Often times a Buyer wants a house and they don’t particularly care to wait through this long drawn out process and they ‘walk’. When they do persevere, it could be a win/win/win; the Buyer gets a great house, the Seller breathes a sigh of relief, and the Investor is satisfied.
On the flip side, when the buyer walks, it’s lose/lose/lose, with the Buyer gets no home, the Seller/homeowner is still at risk of a foreclosure, and the Lender/Investor still does not acquire any funding towards their loan.
In summary, if everyone works together, and commits to a transaction, working in a timely manner, can you imagine how we can turn this around and have our economy back in much better standing in lieu of dragging this out with the predicted 5 years of Short Sale inventory on our hands? We CAN get through this together, we CAN close deals together, and we CAN get families the relief they need, and we CAN find Buyers wonderful properties. The inventory is all there, the Buyers are there, it’s just a matter of getting people to work together.
Your thoughts ?
Joyce Corsi Hazen, REALTORLong Realty Arizona Properties Cell: 602-284-9822 Email: JoyceHazen@ymail.com