A client had a full price offer out on a bank-owned home in Chandler 85286.
My client had some problems with the bank’s counter offer. The bank’s standard addendum said in any dispute that the buyer’s earnest money would be disposed of “at the sole discretion” of the bank, that the Buyer would pay for the Seller’s title insurance policy for the Buyer, and that the inspection period would be 5 days instead of 10.
My buyer client countered out those 3 items yesterday morning. I just found out, unfortunately, than in the interim a full price, all cash offer with a 2 week closing came in and was, of course, accepted. I’m guessing that the all cash offer was from an investor.
We are starting to see more and more real estate investors coming back into the Phoenix market. Many more investors are on the sidelines just waiting to enter.
We may see even more investment in the Phoenix real estate market as people shift their money out of the stock market and into real estate. [Dru Bloomfield first mentioned this possibility to me a few days ago and today I heard someone else mention it as well.]
On the good side, my client has now found a community that he loves where he will focus his house hunting efforts.
{ 6 comments… read them below or add one }
Artur | Phoenix Real Estate 10.01.08 at 1:00 pm
The competition for good homes priced well seems to be quite fierce. Several of our clients had to compete with cash offers as well.
Sometimes these other buyers, maybe investor, are bidding the home’s prices up.
krogers 10.02.08 at 9:05 am
This is EXACTLY the problem my wife and I are currently facing.
We’ve had 3 bids that we’ve lost to investors and frankly, we’re getting really sick of it. The first one we didn’t get a best and final, they just went with another offer, the second was a full cash bid, and the third was actually a lower offer that the bank took due to them putting a higher down payment, which totally blows my mind. Why do banks care if they end up getting the money in the end anyways? It’s not like they are the ones doing the loan, so if someone defaulted on it, it has nothing to do with them in the slightest…
We’ve just bid 5k over the asking price on a residence because we are really hoping to get it, and it’s looking more and more like it will be a 4th missed place due to competition or a cash bid.
Can’t these investors go put their money into alternative energy research or something positive instead of artificially driving up home and oil prices above what they are worth?
Cbass 10.02.08 at 12:14 pm
“More than 47,000 in Ariz. expected to lose jobs”
I don’t think you have to worry about competition from any of these folks.
http://www.eastvalleytribune.com/story/127179
yelanda 10.03.08 at 6:40 am
As I always say, the price is mainly driven by demand and supply. Interest rate, affordability, etc are all secondary. Sad, but true.
Stacy Klein 10.03.08 at 10:13 am
You mentioned that many investors are on the sidelines waiting to enter. If the bailout is approved, is that going to turn the housing market crazy again?
John Wake - Real Estate 10.03.08 at 1:09 pm
Stacy,
I haven’t figured out how the bailout will effect the Phoenix real estate market.
It won’t make the market crazy again. I’m not even sure if it will make things better or worse.