The real estate market in Phoenix, Arizona has become very competitive over the last year. Home buyers and investors are taking advantage of the historically low real estate prices (50% discount in most situations). With the complexity of the short sale transaction, increasing demand and tight mortgage lending standards can make purchasing a property difficult in Phoenix.
There is no way around the tight mortgage lending requirements (he who has the gold makes the rules) but there are different strategies for purchasing short sales and beating the competition. When there is an offer on a short sale where the listing agent is currently negotiating the offer with the banks, the MLS listing will show “Active With Contingency”. Due to the increased competition in the market a lot of buyers are submitting multiple offer and wait to see which short sale is approved first. These buyers are only planning to purchase one property and will have to cancel the other offers.
This means “opportunity” for you to get your offer in as a back-up offer and if the first buyer cancels their transaction, then you will be first in line to purchase the property, without any competition. This is a great strategy since about 50% of all short sales with go through several buyers before it actually closes.
I have purchased a few investment properties this way and I have help a lot of my buyer clients purchase properties using the same strategy. If you are having difficulty getting your offers accepts or under contract, then give us a call and we can help you get your dream home!!
Furthermore, you could be the buyer that is submitting multiple offer (as long as the seller’s are aware) and wait until the first offer is accepted. The short sale contract give a buyer the option to cancel their offer at any time; therefore, your earnest money deposit is fully protected. You should also add additional language to your offer to make sure the seller fully understands this concept.
Also, try making your offer the “Purple Cow” that stands out over and above all the other buyers. You necessarily don’t have to pay more than fair market value but you could offer terms like a larger earnest money deposit, a 5 day inspection period, no seller concessions or a 20 to 15 days closing (you will want to check with your lender). These terms will make your offer stand out over and above the other buyers.
We can guarantee we can help you purchase a great property! Give us a call TODAY!! 480-213-5251