Welcome to the hottest Real Estate market in the recent history of Arizona. We have an inventory crisis on our hands! As of this writing there are only 4200 homes available in all of the
10 Things Homebuyers Need To Know About The Arizona Housing Market
Dated: March 9 2021
Welcome to the hottest Real Estate market in the recent history of Arizona. We have an inventory crisis on our hands! As of this writing there are only 4200 homes available in all of the Valley of the Sun. Population is increasing, interest rates are down and rental prices have double. Homeowners may want to move but with no inventory they are not putting their homes on the market. What does that mean for the influx of new residents wanting to move here? What can they expect when they go to purchase a home?
Below are 10 things every potential buyer should know about the Phoenix market right now.
1) Expect a bidding war. Homes are being listed high but then are being bid up by $20,000 to $40,000 over asking price.
2) Cash is still king. Buyers do not have to worry about loans, appraisals and will close quicker in most cases.
3) Homes might not appraise. You will need to pay the difference in the appraisal price and the agreed upon price you bid to win the home or cancel the contract.
4) Waiver of appraisal contingency. It is attractive to sellers when the appraisal is waived meaning you must pay the difference regardless of the what the appraisal comes out at. The contingency allows you to cancel if it does not appraise, by waiving this right the seller is guaranteed the price they agreed to at contract.
5) Some sellers will not accept an offer without first seeing the home. Sounds crazy but many people are making offers unseen!
6) Homeowner may want to stay in the home after till close till they find another. Buyers are offering up to 90 days for a nominal fee just to win the home bid.
7) Plan on paying any HOA and transfer fees.
8) If you send a nice letter to the seller dont expect it to be shared with the homeowner till after you win the bid. Fair Housing Laws make this a tricky situation for sellers and sellers agents.
9) Homes on the market average of 2-3 days. Plan on a Saturday and Sunday open house with offers being accepted and reviewed on Monday.
10) Have a Realtor who is engaged and thinks outside the box! It is not always the highest bid that gets the home.
With no end in sight, we could be at this for at least all of 2021. You will be frustrated at times but stick with it and you will get a home and start enjoying the Arizona lifestyle!
Jeff Seman is the Owner/Broker for Ironwood Fine Properties
We are a group of local knowledgable Anthem Realtors. We live, work and raise our families here! North valley homes and communities are our specialties. It pays to have local expertise. Over 1....