Want the Best Deal on Phoenix Real Estate?

The Best Deal on Phoenix Real Estate starts with keeping up to date on the constantly changing real estate market.

If this blog is more 6 months old when you’re reading it, current times may be different.

Best deal on Phoenix real estateTex called me to inquire about a property ad I had running in a home guide. I told him about it and we made an appointment to for him to see inside as well as look at a few other homes. Tex was looking for a home to buy for “the best deal on Phoenix real estate ” to rent for a few years then occupy as his retirement winter getaway.

We met at my office and as we introduced ourselves I asked him, “What part of Texas are you from?”  Tex said, “I’m not from Texas, I’m from Louisiana, but I’d look pretty silly if I went by Louise!” Yep, Tex was a character! I then learned Tex was actually a farmer from Iowa. Go figure!

The  year was 1989 and the real estate market in the Phoenix area was saturated with inventory. Home prices had slipped over a few years and it was definitely a buyer’s market. After introductions we sat down to discuss the day and what I had lined up for Tex to see. The first thing he says is, “I can’t wait to get started. I heard you can buy a house for 50 cents on the dollar here!” I told Tex, “I have the perfect house. It appraised at $2 million and its currently listed at $1.1 million but I think you may be able to get it for $1 million.” Tex protests, “I can’t afford a million dollar home! I’m a farmer for god’s sake.” I asked Tex what he could afford and he says, $80-100K. I said, “Well, you’re in the 95 cents on the dollar price range. And that’s the price range of home I have lined up, so let’s get started.”

Tex and I got to be friends. Tex ended up buying a house which I negotiated at about 98 cents on the dollar and he was happy as a hog in mud! The house was perfect for Tex. After seeing what was really happening in the market he was happy to pay close to asking at $82,500 for a house that was worth over $120K a few years earlier. Today that house is worth $150k. In 2006 it was worth $260K. But 50 cents on the dollar? Not so much in that price range. The luxury market had seen a much bigger tumble. Tex had heard from friends who had ventured out before him. Apparently, bragging friends.

The moral of the story? Don’t believe everything you hear!  In those days there was no internet, no information highway. If you contacted an agent they would cobble together home magazines and pamphlets from the Chamber of Commerce and send it out snail mail. It was certainly easy to form a misconception about what was really happening in the market.

So now we have the Internet. Every tidbit of information is available to buyers online. You can’t possibly make the mistake that Tex did in 1989, right? I’ve always said be careful about taking advise from people who know just enough to be dangerous. The Internet is loaded with misinformation. In fact, it could be called the misinformation highway!

If your doctor told you you have strep and need to take antibiotics and rest to get well, but your hippie coworker, Joe, said  he has an homeopathic herb tea concoction that will do the same thing and there’s no reason to take  prescription drugs like antibiotics, who’s advise has credibility? Who would you be more likely to listen to? Might the herb concoction work? Could Hippie Joe be a savant and possess more knowledge on the topic than any other person on the planet!?  Absolutely yes to both! Do you want to risk lockjaw and a myriad of other possible bad things on that chance? I wish I had a nickle for every person who, hypothetically, listened to Hippie Joe.

The Phoenix area real estate market is hot right now. It is a seller’s market. That said, you can buy a house for 50 cents on the dollar, again. That’s 50 cents on the dollar from 2006 prices. If a home was worth $280K in 2006 and today is a short sale on the market at $140K at asking price, it is already 50 cents on the dollar from it’s peak value. A common misconception is you can now buy that home at 50% of the current asking price.  If that is your plan save yourself some time and see if Joe has room for an extra bedroll in his tee pee. Or you can align yourself with a professional who has true knowledge about what is happening in the market, honed negotiation skills and great experience in finding the best deals in the market.

Did you know Realtors are normally paid by the seller even though they work for you?  Buyers rarely have to write a check to an agent for their services. There’s  no cost and nothing to lose by leveraging an agent’s experience and knowledge into a great deal.

How do you go about finding the best deals? Hire a professional and strongly consider what he has to say!

Have questions or need information? Contact me today!

Speak Your Mind