I had two phone call back-to-back this week. Both potential buyers said that they only wanted to look at short sales and foreclosures Scottsdale.
While I tried to explain the realities of the current Scottsdale real estate market, I don’t think that buyers understand just how few houses are for sale, and how many buyers are competing for this limited inventory. And that by eliminating 75% of the properties for sale, buyers are going to be challenged to find and win the bidding war for this limited pool of homes.
That’s not to say that it can’t be done. Or that it will be easy.
But, I do think buyers needs to know the facts about our real estate market.
Housing inventory in Scottsdale has dropped by 50% over the past 2 years.
Appreciation is now in the positive ranges, approaching 8% in late March.
Buyer are anxious to get in the market. With about 50% of the buyers paying cash, the appraisal contingency is no longer in play, and many of those buyers are more willing to go over the listing price. Buyers who assume that they can offer less, because they are paying cash, are not up-to-date on the current realities of the market.
So, if you want to buy a house in Scottsdale, I recommend that you look at all the properties that are on the market. Then, write a very strong offer when you find the house you want.
For more on getting your offer accepted in Scottsdale’s competitive real estate market, read: Ten Ways to Get an Offer Accepted
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Those are tough phone calls to take. You want to show them what they want to see, but lately, there hasn’t been very many new short sales or foreclosures to show them… What percentage of buyers would you estimate are waiving their appraisal contingency these days, Dru?
Joshua, I’m not seeing a lot of appraisal contingency waiving. Buyers are stepping back in this case. What are you seeing?
That’s good to hear, Dru! The only clients I’ve seen waive the appraisal contingency lately are cash buyers buying lender owned properties, but I’m encouraging our clients to hold on to that contingency as often as possible. Sounds like you’re doing the same.
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