The Pendulum Swings towards Normal!
- Investors have started to slightly pull back from buying homes in Arizona. It is very subtle but perceptible.
- More and more homeowners are now able to sell their homes at a profit or at least with some equity and see the opportunity to make the move they have been contemplating for 8 years.
- New home builders, because of the elevated values are again entering the market.
- Inventory and time on the market are increasing every so slightly.
- New builders that 3 months ago would only sell 3 homes a month are now accepting some contracts with contingencies on the sale of a home.
- More and more sellers are having to offer small concessions in price and/or closing costs to get their homes sold.
- The overall frenzy on every listing is slowing somewhat. That is not to say that you can come back and buy a home a week later but at least it is possible it will still be available tomorrow.
- You can probably get an FHA offer accepted now. Which has been very difficult to do since the beginning of the year.
- You may not have to bid over the list price and pray that an appraisal comes in at value.
- The seller may actually be willing to pay your closing costs or lower the price slightly (but still probably not both)
- I still would not wait until the weekend to look at a home or make a decision. There are still plenty of buyers out there.
- Your home will probably not sell at $10,000 over list price in 5 hours.
- Condition and pricing are even more crucial. If a home is not sold in two weeks, it is likely overprices or has some condition issues.
- You may have to be a little more flexible on price, terms, or occupancy to get it sold.
- You have to make the home easy and appealing to show eliminating all of the obstacles that have traditionally kept homes from selling.
- You may have to fix the "laundry" list of minor repairs the buyer is asking for.
As the market approaches "normal", you need an agent with years of experience operating in a normal market to price, market, negotiate and close your home without any problems. That is not to say that we cannot also do the "specialty" sales such as 1031's, estate, short sale or REO transactions. Most agents who were not in the business in 2000 have very little experience in marketing property that is not "as-is", settling occupancy date conflicts, or having the resources to handle the inevitable laundry list of minor repairs that most homes need.