Why Can’t I Buy A Bank-Owned Property in Phoenix?
June 15, 2009 by Kristin LaVanway · Leave a Comment
| The Phoenix Metro area has made just about every Top Ten Foreclosure List out there…yes, the media is quick to point out how tough things are in the Valley of the Sun when it comes to real estate. The way the news media makes it sound, there are rows of “FORECLOSURE” signs lining every street in town.
But there’s the media and then there’s reality. And that is what is frustrating buyers. |
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| I have talked to several folks in recent weeks who can’t understand why they can’t saunter out on a Sunday afternoon, check out a couple of bank-owned homes, write up an offer for 10% below the asking price, and pick up the keys in a couple of weeks. The banks must be desperate to unload these homes, right?
About two-thirds of the homes sold in Phoenix and its suburbs are bank-owned, but only about 15% of the inventory consists of bank-owned properties. Consider that a 6 months inventory of homes is a balanced market giving the Buyer and Seller equal advantage. There is currently less than 1 months supply of bank-owned properties on the market, and that includes trashed-out candidates for the bulldozer that may never sell. If you are looking to buy a bank-owned home, this market is even tighter than it was in 2005. There is just not enough to go around. It remains to be seen how the inventory is affected by the lifting of the foreclosure moratorium that occurred in March. Some experts speculate that inventory levels will rise as these homes “flood” the market. It would take a Hurricane Katrina of foreclosures to flood this market. Buyers are feeling the pressure from increases in interest rates and the promise of an $8,000 tax credit running out at the end of the year. They can sense that we have hit bottom and they want to cash in before it’s too late. So, can you buy a bank-owned property on Phoenix? Sure you can. But you have to go about it the right way. You need to be prepared by researching the market and getting pre-qualified so you can write up an offer quickly. You need to work with a Realtor who understands the guerilla warfare required to get an offer accepted. With some patience and realistic expectations, you can definitely cash in on one of these deals. Just not while Sunday driving. |
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I am a Realtor in Gilbert, AZ, working with clients throughout the Phoenix Metro area. I am lucky to love what I do and appreciate the difference I can make in people's lives.
In a previous life, I was a rocket scientist - really! - but decided to step away from corporate America to be a Mom to my four boys. Found it hard to do bake sales, so I ran a small independent programming business instead.
Flash forward...I am now a single mom and I face many, many challenges everyday. I am living through the hardships that many are facing in this economy. These experiences have motivated me to help other people in my shoes.
I have teamed up with Dean Ouellette to form the East Valley Team - the best darn team in the Valley. Check out our site at http://www.EastValleyTeam.com. I spend way too much time on YouTube - check ou tmy channel at http://www.youtube.com/klavanway
