Phoenix Metro Area Housing Market Faces Multiple Offers.
The Phoenix Metro Area Housing Market faces multiple offers even in the higher end and luxury market as buyers try to snag homes before the market rises further. We have seen multiple offers for quite some time in the lower price ranges, but now as the market is returning, and returning strong, we are seeing multiple offers in the higher price ranges. We are now seeing multiple offers on homes in the move up and luxury home market. We are seeing offers that are $50,000 over asking that are not the winning bid. This is causing quite a bit of frustration as buyers are trying to get into a home before the market prices go up further.
A Google search of the Phoenix Metro Area Housing Market might bring you mixed feelings about the market. But, from the perspective of someone that is in the trenches every day, I can tell you that the Phoenix Metro Area Housing is on fire right now and has been for months. Every offer we have written has been on homes that are receiving multiple offers. Even in the half-million dollar homes and up. We have had multiple offers on homes under $200,000 for a couple years as investors have been picking up homes below replacement costs for their investment portfolios. Now this is happening to our move up and luxury home market. Buyers know that this is the time to pick up that luxury home before prices return, and return they will. I have seen a jump in prices already and they seem to be facing a frenzy as buyers lose bids only to bid higher the next time. Some of the buyers in this higher price range are investors as well. They are speculating that they will be able to make a healthy profit as prices are on the rise.
Appraisals causing a problem? Sometimes, but this is the reason that many offers that are contingent on getting financing are having trouble getting offers accepted. Many sellers are chosing the cash offers so that they don't have to deal with the appraisal issues. Cash buyers are plentiful and they are willing to make strong offers and wave the appraisal. If the comparables look good then a cash buyer many times will not even have an appraisal done which is making their offer more favorable to the sellers. So if you are in the market for a home in the Phoenix Metro Area and have to use financing, the key is to have patience. We are able to get the financed offers accepted, but being prepared for the roller coaster ride helps to keep frustrations down. Patience in this market is definitely helpful. Don’t spend too much energy trying to figure out what’s really going on with the other offers. If you love the property, keep moving forward, but at your own pace. Make the offer you’re comfortable with, and only when you’re comfortable making it. Don’t feel pressured to make an offer in order to compete, especially if you’re not ready to put in a bid.
How to help make your offer stand out? Make sure that you have substantial earnest money deposit, try shortening the inspection time frame, and try to keep the offer clean (without extra costs to the seller). In today's market we need to make the offers the best we can.
If you are in the market to buy or sell a home in the Phoenix Metro Area, please give us a call, we are here to help.