Paul Pastore shares his list of the Top Ten Reasons It's a Great Time To Buy Real Estate!
- Selection, selection, selection. There are about
57,000 resale homes on the market in Maricopa county(Phoenix).
Regardless of the price range a buyer desires, there are plenty of
houses from which to choose. Just a few years ago the resale inventory
dropped below 5,000 units. A buyer was forced to make compromises if
they were going to locate the home of their dreams. There is a great
selection of attached homes, condos, and townhouses. You can find large
lots, small lots, and a lot that will accommodate your boat or RV.
There are lots of options in this market.
- No Bidding Wars. In
2005 we had one client that made an offer on ten homes. They lost the
first nine to the 'feeding frenzy' that existed. Other buyers bid the
properties up substantially from the original listing price. There were
escalation clauses where buyers authorized their agents to outbid other
offers by thousands of dollars. There is no competitive bidding in this
buyer's market.
- You can make an offer. A few
years ago when you made an offer, the only question was how high above
the list price could the buyer reach in hopes of being the best offer
on the table. Today the sell price list vs. price ration is about 96%.
A seller will not be insulted if you 'make them an offer they can't
refuse'.
- Patience is tolerated. In the hot
seller's market that existed everything was rushed. Find a house before
other buyers did. Hurry up and make the offer. Today a buyer can take
their time. Look at several homes and think about your decision for a
few hours.
- Due diligence is welcomed. In this
market a buyer is encouraged to obtain a home inspection, termite
inspection, and appraisal. In 2005 many buyers waived these
contingencies in order gain an advantage with multiple offers.
- There are plenty of specs.
In the not too distant past buyer had to 'play games' if they wanted a
new home. There were lotteries and waiting lists in order to obtain new
construction. Some buyers slept in their cars in order to get to the
head of the lines. R.L. Brown estimates that builders have thousands of
specs ready for immediate occupancy.
- Repair requests are welcomed.
After a buyer completes a home inspection, they are allowed to submit a
repair request to the seller. In the past a seller might insist the
home was sold 'as is'. Many times, there were back-up buyers waiting
for a primary buyer to upset the seller whose home was increasing in
value almost daily.
- Few, if any investors. It
is estimated that one third of all sales in 2005 were to investors.
These non-owner occupied buyer caused the market to inflate and
affordability to decline. Mortgage fraud became commonplace. It's a
great time to buy without having to compete with hundreds of
prospective landlords.
- Location, location, location.
Today's buyers can find homes closer to work. In the past buyers
flocked to Maricopa and Queen Creek in order to find affordable homes.
In this market, reasonably priced homes are within biking or walking
distance to schools, rapid transit lines, and relatives.
- Real Financing is available.
The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are
gone. Fixed rates are back. FHA financing, first time homeowner bond
programs, special loans for teachers, and police officers are back in
business. It's a great time to buy real estate!
About the Author:
Paul Pastore, ABR,CRS,CRB,G.R.I.,MRE,e-pro,RECS, Re/Max Achievers.
www.paulpastore.com, (480) 603-3800,
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