“What I’m looking for,” the e-mails say, “is a deal.”
Unfortunately, so is everyone else. And the Phoenix real estate market’s a rather large place to try and uncover those handful of sweetheart deals that come on the market every month.
And even those “deals” often aren’t.
What’s often required is a check-in with reality on a few different levels:
1) Let’s say you’re looking for a $90,000 home in an area where market value is hovering around $150,000. By chance, a home goes on the market for $90,000 anyway. Now, is this because the owner has decided to price the home at a 40 percent discount for the hell of it or because of other factors that are particular to the property?
2) Let’s say you’ve found a good home in good condition priced at a deep discount to the market. What are the odds that you’re the only one who has spotted this home? And as other bidders start jumping in, how close to the actual market value are you going to be willing to go to purchase the home?
3) There are just under 20,000 detached homes for sale in Maricopa County, which is an area larger than several states. Finding the one or two homes priced aggressively and without substantive flaws across an area that large is akin to finding that proverbial needle in a haystack. Focus on a specific area – think neighborhood level, not city – and I can tell you when an outlier appears. But look on a larger scale and it’s impossible to do.
4) Have we mentioned those short sale prices largely are imaginary? Just because the listing agent on a short sale posts a list price well below market doesn’t mean the lender who will have to take the write off is going to agree to that price. These are great if you want to take a flier but there are better ways to focus your energy.
[tags]Phoenix real estate[/tags]