It is no surprise that we are in a depressed economy and the housing market is struggling.
Arizona is the one of the hardest hit States nationally.
The primary reason is because Arizona had one of the biggest booms in recent years and therefore requires more price adjustments than other States across America.
The good news is Arizona is strong in many other areas such as job growth, with large corporations continuing to move here.
The bad news is real estate investors likely will not be able to purchase property 20-30% under market value.
Arizona is attracting flocks of investors due to this distressed market.
Homes are selling 30-50% less than what they were going for 5 years ago.
The normal 5-7% appreciation per year is a thing of the past.
Many banks control pricing on all these distressed properties.
Before many of these homes are put on the market, comparable sales research has already been completed.
Most homes are currently listed based on these comparable sales.
Several BPO's (Broker Price Opinion) have been done and many of these homes have already had an appraisal completed on the property.
Banks feel they have a very small cushion with which to move on their asking price.
In the past 6 months, banks are holding their ground on asking prices.
They are countering offers in many instances.
This does not always hold true, but if there is any cushion or room to move on an asking price, it is usually less than 10%.
Many investors are coming into the Arizona real estate market and offering 30-50% under market value.
They are having their real estate agent write 10-20 offers per month, hoping that they will get lucky and contract a deal with one of these "low ball" offers.
Well, anything is possible but I would prefer the odds of winning the lottery.
What is difficult to understand is where the investors are getting their information.
Writing an offer on a property, if done correctly, consumes a minimum of 3-6 hours of an agent's time.
It consumes approximately 1-2 hours of the investors time.
Although the agent represents the best interests of the investor, investors are becoming overly greedy.
With the influx of homes appraised by the banks prior to a contract, very few will move on their asking price.
Appraisals are done based on "current" market conditions.
Time is money and being pro-active and productive in investment strategies can be accomplished by using better strategic planning.
Arizona is the one of the hardest hit States nationally.
The primary reason is because Arizona had one of the biggest booms in recent years and therefore requires more price adjustments than other States across America.
The good news is Arizona is strong in many other areas such as job growth, with large corporations continuing to move here.
The bad news is real estate investors likely will not be able to purchase property 20-30% under market value.
Arizona is attracting flocks of investors due to this distressed market.
Homes are selling 30-50% less than what they were going for 5 years ago.
The normal 5-7% appreciation per year is a thing of the past.
Many banks control pricing on all these distressed properties.
Before many of these homes are put on the market, comparable sales research has already been completed.
Most homes are currently listed based on these comparable sales.
Several BPO's (Broker Price Opinion) have been done and many of these homes have already had an appraisal completed on the property.
Banks feel they have a very small cushion with which to move on their asking price.
In the past 6 months, banks are holding their ground on asking prices.
They are countering offers in many instances.
This does not always hold true, but if there is any cushion or room to move on an asking price, it is usually less than 10%.
Many investors are coming into the Arizona real estate market and offering 30-50% under market value.
They are having their real estate agent write 10-20 offers per month, hoping that they will get lucky and contract a deal with one of these "low ball" offers.
Well, anything is possible but I would prefer the odds of winning the lottery.
What is difficult to understand is where the investors are getting their information.
Writing an offer on a property, if done correctly, consumes a minimum of 3-6 hours of an agent's time.
It consumes approximately 1-2 hours of the investors time.
Although the agent represents the best interests of the investor, investors are becoming overly greedy.
With the influx of homes appraised by the banks prior to a contract, very few will move on their asking price.
Appraisals are done based on "current" market conditions.
Time is money and being pro-active and productive in investment strategies can be accomplished by using better strategic planning.