It's a crazy housing market in the Goodyear area right now! We are in what a lot of people are referring to as an extreme seller's market. A seller's market arises when the demand for housing exceeds the housing supply. In a seller's market, the seller has the power. In today's market, they have extreme power because there is a lack of housing inventory as well as a high demand from home buyers.
So how can you buy a home when there is so much competition and not a lot of homes to choose from? 1st, find someone to be your advocate and help you through the process. Then keep in mind the following things:
- Time is of the essence, you will need to act fast when a property hits the market.
- Be prepared, you will need to submit an offer quickly and it must include a pre-qualification or loan approval form from your mortgage bank. To beat the competition you need to present yourself as a strong buyer that won't cancel due to not being able to complete your mortgage financing.
- Submit a clean offer, remember that the seller has the upper hand and this is not the time to ask the seller for assistance with paying your closing costs, it's not the time to ask for special terms or conditions, it's not the time to ask for a specific closing date, and it's not the time to ask for repairs.
- Expect to pay over the listing price on the MLS. The majority of the time full-price list offers are not even being considered by sellers. Competitive buyers are offering over list price. That means if you are getting financing, you may need to come in with some cash. It's important to have a great lender to help you figure out the best way to financing your new home.
- Give the seller the terms that they want. Determine what is most important to you, but your Realtor should find out what is most important to the seller so you can create an appealing offer.
- Be patient because you will most likely need to make offers on more than one property. This process can be frustrating if you don't know what to expect.
- Stick to what is important to you, don't offer on a property you don't like because of lack of inventory. Don't settle on a home unless you need a property to live in right away.
- Be prepared for a low appraisal. Demand is pushing up the prices, but homes still have to appraise for the buyer's lender to complete the financing process. The majority of buyers are offering over market value for a home and then agreeing to pay a certain amount of money over the appraised value if the appraisal comes in lower than the agreed-upon purchase price. For example, if the agreed purchase price in the purchase contract is $330,000 and the home only appraises for $310,000, buyers are letting the sellers know upfront how much of the gap or deficit they will cover in cash.
- Complete a Discovery Tour with your Realtor. If you don't need to move into a home right away, complete a discovery tour to get a feel for the homes in your target neighborhood. If you are from out of state, it will be important to tour the neighborhoods as well. We will tour homes without the intention of making an offer, but to discuss the things you should be looking for. When the time is right, and the right property hits the market, you will have a solid understanding of the process, if you want to put an offer in on that property, and if you do submit an offer, what to expect next.
- Start working with a Realtor months before you are ready to buy. Your Realtor can get you ready for the process and also keep an eye out for any properties that will be hitting the market soon.
I'm available to help you get a game plan together for when you are ready to make a move in the Goodyear/Litchfield Park area. I grew up in Old Litchfield and I currently live in Goodyear, so I've seen this area grow and change throughout the years. Contact me today to schedule a time to chat: 623-252-9350. Or respond to this email.
I look forward to hearing from you!
