Cash isn’t king here in the Phoenix real estate market – it’s a necessity, at least if you’re shopping for homes under the $60,000 mark and it’s damn helpful all the way up to $100,000.
So far this year, there have been 783 closed sales of properties listed at $60,000 or less. Of those, 674 have been cash sales – that’s 86 percent.
Under $100,000, there have been 1,500 cash sales from among the 2,307 closed sales so far this year – that’s 65 percent.
It’s a strong sellers market – little inventory, lots of demand. And, with that, a lot of games are being played by the sellers, particularly the banks. To whit:
“This particular seller has made a business decision on a great majority of their properties to implement an “Offer Acceptance Holding Period”, thus for the first 10 days of the initial listing period we are not able to accept, counter, or reject any offer. Please advise the buyer or buyers of this policy and to be patient with us. This will give you some more time to gather additional offers and enter them into Res.Net, hopefully making it possible for all involved to obtain the absolute highest & best offer for this property. Also, I believe that it will weed out those buyers who may really have not been all that interested and aren’t willing to wait for the 10 day period to expire.”
Let’s just forget that last part about “weeding out” buyers who might not have been all that interested. This is a money play, pure and simple. Collect the offers, build the tension and see how high things can go.
Or how about this note from another listing:
Go check it out, understand that the price is meant to drive in higher offers than the original price, and make an appropriate offer. It has only been in MLS for 6 hours and it already has at least a full price offer. Ask your professional real estate agent for more info.
To be honest, my stomach clenches every time I see something like this as it reminds of me 2005 and not whatsoever in a good way.