Some of my clients are getting frustrated with the Arizona Real Estate Market. They keep hearing how low houses are priced and that it is a "Buyers Market". With the best of intentions they contact me trying to find a home for themselves. Maybe a first time home buyer trying to take advantage of the tax credits available, or maybe someone looking for a second home. We find the house of their choosing, write the offer and keep getting rejected because someone else out bid our offer. After the third or fourth time at this my Buyers are getting frustrated! Do I blame them? Nope!
This market is really THREE markets.
Traditional or "Owner" owned homes
Short sales or pre-foreclosures
and of course Bank Owned, or foreclosed homes.
All competing with each other at prices that are up to and even less than half of what they sold for 2/3 years ago. Is it fair that my lovely home has to compete with a foreclosed home a few doors down? No, but it is what it is. Sellers are crying because their equity has vanished and the price of their home competes with the one that has no kitchen!
True, some prices haven't been this low since the 80's! Nice single family homes can be found for 65k. With these low prices Buyers need to understand it isn't only the first time buyers looking for a deal........but also those looking for vacation or second homes as well as the investors. New listings hit the MLS (multiple listing service) and by the end of the day there are already multiple offers on a home. So then we go into a bidding war where the list agent sends back to the buyers agent a new game with a "highest and best" offer form.
Another frustrating round for my clients just to hear that someone beat them out. As annoying as this is, I must encourage them to stick with it. It is not just them going through this maze, it's everyone from the buyers to the sellers to the agents.
Hang on, let's all ride this roller coaster together.......eventually we will all succeed!
