Home Buying in Phoenix>Question Details

nf314, Home Buyer in Phoenix, AZ

Looking to purchase home but all of the "Great" deals seem to be snatched up the moment (sometimes within only a few minutes) of them being listed.

Asked by nf314, Phoenix, AZ Wed Oct 31, 2012

Looking for a home around 180k - 350k. Cash Buyer. The type of deal that I am talking about is, a house that is selling for around or below it's zillow/trulia/tax/real value estimate. These are typically short sales and from the agents I have talked to they get sold very fast, some of them even being "off limits" to a normal buyer because there are people and groups that snatch them up instantly.

An example of a "deal" I am talking about:
http://www.zillow.com/homedetails/2523-W-Minton-St-Phoenix-A…

How do I become someone who can actually grab one of these shorts or deals instead of being someone on the outside looking in? I have found about a dozen of houses similar to the one above but of course they are all taken right away. All of the houses still on the market after a few days are ones that are not "Great" deals. They are the houses you see that were sold within a year and then people try to flip them for 40-70% more. I want to get the deal they got.

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14
nf314, unfortunately the types of deals you are referring to are few and far between in today's market. Two years ago was the time to pick up these kinds of deals, they were everywhere. If you are looking to make 40-70% on a flip, you should probably avoid properties listed in MLS. Today, Fannie Mae is demanding 105% or higher of FMV on all short sales where they own the note, forcing buyers to pay 6 months of appreciation up front. REOs are also being priced high and in line with regular resales.

My suggestion to you would be to purchase properties at the Trustee's Sales or hook up with a local wholesaler who buys at the trustee's sale and then turns them around for a small profit. These properties are still sold well below FMV. Check out http://www.PhoenixWholesaleHomes.com - good place to start.
1 vote Thank Flag Link Wed Oct 31, 2012
It sounds like you are in need of a realtor to help you out. A few advantages of having a realtor are that they will be able to see homes come available as soon as they hit the market and know which ones are still available or under contract already. They will also be able to set you up with searches on sites like listingbook or the MLS that are current and not lagging behind likes sites like Trulia and Zillow do. If you are still in need of some assistance go ahead and give me a call or email at 605-870-0865 or casey@teaminvestmentsinc.com

Thanks,

Casey Cuppy
Team Investments
0 votes Thank Flag Link Thu Nov 29, 2012
Have you found a home yet? We can always find well priced homes if we decide to work together.
0 votes Thank Flag Link Sun Nov 18, 2012
Some great answers here. Let me add a couple more things. With deals going so fast, make sure you are working with a full time agent. With homes going so quickly, you need to know that real estate is the agents main priority so they can do the best job for you.
Also, the agent needs to have phone skills. As an agent handling listings as well as buyers, it would probably amaze you how many offers come in without the agent even calling and speaking to me. Wouldn't it make the most sense for the agent to pick up the phone and see what my client is looking for? It isn't always price. Sometimes it is other factors such as needing to rent back for a month.
0 votes Thank Flag Link Sat Nov 17, 2012
In order to give you the best chances you literally have to be "up with the birds" and have a realtor who is ready and available to show you homes quickly and write purchase contracts on the fly. Do your part aswell, have everything ready with your realtor up front. LSR (if financing) Proof of funds if a cash buyer. Make sure your realtor knows your full legals names(s) and whether you want to purchase a home warranty. Once all these pieces are in place you will have as good of a chance as anyone else. Good luck!

Chris & Michelle
Web Reference: http://thespaldingteam.com/
0 votes Thank Flag Link Mon Nov 12, 2012
Hello! I own a real estate investment company that focuses only on obtaining short sales and REO's. We obtain about 8 properties per month and then for a small fee sell them to Buyers. Our clients purchase them for fix and flip, rental portfolios and to live in. Please contact me to discuss how to get on our list and receive these properties. We are one of the most successfull investor based real estate companies in the Valley. Sarah@buytru.com, http://www.buytru.com.
0 votes Thank Flag Link Mon Nov 12, 2012
Sarah - I work with investors in several US states & internationally, plus personal purchases. Would like to receive your list of properties. Please contact me. Thanks much.
Flag Mon Nov 12, 2012
Your are not alone in your search for a "good deal". The real bottom of the Phoenix market was a year or two ago now. Very generally speaking, Phoenix real estate was up about 20% last year. The more desired areas as much as 30%.

That said....there are still nice profits to be made because we still have a long way to go to get back to a realistic, established market. Phoenix was one of the hardest hit areas of the country in the housing crisis. But we are also one of the first to come back. Historically, that's what we do.
Also, consider the growth potential for the city as a whole. The sunbelt states continue to get an infusion of folks moving from the colder climates. Phoenix has one of the lowest priced housing markets in the country. And business will continue to grow, bringing with it jobs with employees looking for housing.

My first question for you would be....are you looking to hold property a few years as a rental, or looking for a quick fix & flip? Each of these scenarios would be handled very differently.

My partner and I both have have over 30 years investor experience in the Phoenix area, not only for our personal portfolios but for clients both in the US and abroad as well. Please feel free to contact me if I can help you in any way. Gathering solid information is your best way to move toward a good decision.
0 votes Thank Flag Link Thu Nov 1, 2012
I think the key to your question is in the last line where you state "I want to get the deal they got"...in past tense and that's exactly what's going on in the market. Because of low inventory, foreclosures and short sales down and more 'normal' properties now on the market there just aren't as many options on those great deals. You really needed to be in the market a year ago or prior to that.

That being said, there still are good deals because of HOW FAR PRICING DROPPED OVER THE PAST 5-6 YEARS and the pricing trend is now upwards.

Additionally, many agents have pocket listings that are sold before they even hit the market. In other words, they are pre-selling them before they show up in the MLS to the general public.

Have an agent set up a portal for you along with auto emails that you would get on properties that fit your criteria so that you know the "minute" they are on the market and can move quickly.

In your price range $180-$350K, there are approximately:
4,602 active in the entire metro phx area as of today (299 are short sales, 4,304 are not).
1,116 are AWC status (pending transaction with contingencies) of which 798 are short sales and 318 are not.
2,393 are pending (accepted contracts) and 552 of those are short sales and 1,841 are not.

So you can see the short sales are down substantially.

A couple recent stories on where pricing has come in the past year:
http://goo.gl/UHhFF

I wouldn't put too much stock into Zillow's "zestimate". It's based on statistics only and compares a general area rather than specific "like" neighborhoods and home condition.

All the best!
0 votes Thank Flag Link Thu Nov 1, 2012
All good answers. If you are an investor you are unlikely to realize the profit you would have a year or two ago. You're just too late. If you are looking for a home to live in you must be more flexible in what you will pay and with the property itself. If you can handle this, there are still great options and good values to be had. With the current and projected market growth you will likely realize equity quickly. Partner with a dedicated Realtor instead of the internet and you will find your "great deal"
0 votes Thank Flag Link Wed Oct 31, 2012
nf314, in addition to the comments from my peers, my recommendation would be to avoid using Zillow as a reliable source of information as far as home values. Zillow can be off by 20-30% or even more, depending on the market, the particular home, and recent activity int he local market. If two identical-size homes are next door, Zillow looks at the size of the box and the number of features... not what's inside and the care that may have been taken of a particular home (or not). Best source of information in coming up with reasonable/fair market value? Your local MLS - and a Realtor willing to run comps or do a market analysis for you. There's no such thing as "magic money" in this market. It takes careful research, knowledge, and work. Good luck to you!
0 votes Thank Flag Link Wed Oct 31, 2012
The key is finding an agent that will be persistent in submitting offers. Inventory levels are very low right now and there is not enough available homes to support the demand for buyers. As we go into the holidays, this may loosen up a bit.
0 votes Thank Flag Link Wed Oct 31, 2012
As all cash buyers you have an advantage. It is the financing offers that are having the most difficulty. Still, a seller is not going to sell for less just because you are paying cash as they probably have numerous cash offers even above asking.

You best bet it to work with an agent that is very familiar with the market. Remember that if you pay market today for a property and the values continue to climb, then you will still make money. We work with many investors and would love to assist you in your real estate needs.

Best Regards,

Brenda

Ron & Brenda Cunningham
West USA Realty
602-980-3133

*** Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley" ***

Search the Active Official FlexMLS like a Realtor through our website for FREE:
http://www.CunninghamHomesAZ.com
0 votes Thank Flag Link Wed Oct 31, 2012
Hello!
You are feeling the effects of our current market, which has changed dramatically from a year ago.
The best thing to do is allign yourself with an agent who can send you listings as soon as they are listed on MLS and also has access to homes going onto the market perhaps before they hit the MLS. On homes under 350K, it is not unusual for the there to be multiple offers on the home the first day it goes on the market. There you need the savvy of an agent who can write strong offers (I can tell you more about that). As a cash buyer, you have a strong advantage over a buyer needing to obtain a mortgage. And of course, timing is of the essence; I have had clients who ponder a listing for 3-4 days then want to go look at it...that doesn't work!

What part of the metro area are you considering? I have the skills and the resources; would welcome the opportunity to work with you. Call or email me!

Eileen
Nextage Realty Professionals
480.370.6520
0 votes Thank Flag Link Wed Oct 31, 2012
Hello,
You need an agent that will be able to right those offers as the properties are listed. They are indeed under contract the first day or so. You will need an MLS portal to monitor the listing and be engaged and ready to go DAILY. Short sales are probably the option for you if you have the patience. Let me know if you would like assistance. I can provide the results you desire. Best of luck.

Mike Cave 602-410-7660
0 votes Thank Flag Link Wed Oct 31, 2012
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