Buyers in this current Phoenix home market may need to bid above list price to get the home of their choice. Foreclosures in Phoenix continue to come onto the market, and owners are still attempting to sell their homes as a short sale, before the banks swoops in to foreclose. And prices are still low. But the Phoenix real estate market is seeing another trend as well – multiple offers and bidding wars on home in some communities and sections of the Valley
Investors are flocking into Phoenix to buy low priced foreclosed homes with some investors buying dozens of these low priced homes at a time. For the individual buyer who simply wants a home for their family to live, this is creating a bit of a challenge. Often times when a well priced foreclosed home that is in reasonable condition comes onto the MLS market, there may be six (6) , or more, offers made on the home in the first 24 hours. It is likely some of these offers will be investors who are paying cash and can close the transaction quickly which may give them the edge. Often times a bidding war is the result. It is becoming common to see homes in good condition sell for more than they are listed for in the lower priced markets.
Some investors look for homes where the owners are in pre-foreclosure and will end up buying the home and offering the home back to the former owners to rent.
Other investors are buying low priced foreclosed homes and in rapid fashion they are having repairs done, repainting and cosmetic additions, turning the home back onto the MLS market in 30 days or less and selling the home at a profit. These investors are known as “flippers”. The investors are making a profit, the home is still priced low, and it has been repainted, fixed-up and is in good condition – all things that a buyer wants. These formerly foreclosed homes that are now refurbished and back on the market are selling like hot-cakes. These homes that are refurbished by investors almost always get offers almost immediately – often times many offers – and end up being sold many times above the listed price.
If you are a buyer looking for a home, this is a good time to snag a good deal. It may take a bit of patience, and you may be in a bidding war with many buyers and you may lose some homes in the bidding process before ending up with an offer that gets accepted and a house to call your home.
Whether you are an investor, a buyer of a second home, or a primary home buyer, we can help you. The market is taking on the ear-marks of being the “wild west” all over again. We can help you to “corral” the market and help you find a home. We can also refer a lending broker to you to help you with the needed financing Call us – 480-201-3001
You must log in to post a comment.