You’ll either laugh or cry! Buying a bank-owned home in Phoenix can be a contact sport.
Kris Berg at San Diego Castles Realty created the following video to put it all in perspective! ☺
Posts tagged as:
foreclosure
I just published a post over at Click2AZ.com on the current foreclosure situation in the Phoenix Metro area. Mike Orr at the CromfordReport.com has done some number-crunching to keep us in the know.
Is the REO bubble over in Phoenix?
.
photo credit: TheTruthAbout…
The real estate auction company, Hudson & Marshall, is in town this weekend, for an auction of foreclosed properties to be held at the JW Marriot at Desert Ridge.
We had a 2 bedroom single family home listed that the bank entered into the auction about 2 weeks ago. Several pre-auction offers came in, so that property in Surprise has been pulled from the auction. However, there are still quite a few other properties available.
You may want to know a few of the helpful home buyer tips that the auction company provided to me:
- Anyone can attend the auction, it’s free and open to the public.
- The auction moves fast and the bidding process on 20 properties typically take less than 40 minutes.
- Hudson and Marshall does not have an opening bid, although I’m under the impression that there is a reserve on some properties.
- You should definitely pre-inspect the home(s) you may are interested in prior to the auction.
- You can bring your real estate agent with you to the auction.
- Arrive early to register for the auction. Bring your photo ID and $2500, in the form of a cashier’s check or cash, if you are going to bid.
- The $2500 earnest deposit is required upon winning the bidding for a property.
- Homes are sold with a “clean title”, free and clear of back taxes and liens. Seller pays for title insurance.
- Property is sold in “AS IS” condition.
- Closings typically take place within 30-45 days.
Auction starts at 1 pm, both today and tomorrow, May 16/17.
Here’s a couple photos of a foreclosure property in Phoenix.
And a view from the upstairs loft.
Photo credit: D. Patrick Lewis
What can you say?
Mostly we are speechless.
If you are buying a bank-owned home, please, please, please, do yourself a favor and get a home inspection.
I got an email from someone this week, asking for some advise. Her friend had just come home to her apartment building to find an trustee sale notice on it. The sale is in May, and the renter is totally panicked about finding a place to live.
I just stumbled across this article, ” Firm Helps Renters Avoid Foreclosure Homes“, this morning. Seems like it could be a big help for someone looking to rent a home, or for someone already renting who wants to keep tabs on their landlord.
photo credit: Dru Bloomfield – At Home in Scottsdale
I’ve been pretty quiet on the blog-front this past month and a half. However, it’s been six weeks of massive action, and an introduction to the world of bank-owned (REO) properties, where the majority of home buying and selling appears to be occurring in the Phoenix metropolitan real estate market.
Last year, most of my business was in Scottsdale. In the past, I’ve worked in a much broader area, and this year will be similar. I currently have homes listed all over the Valley of the Sun, and about 75% of them are foreclosures, priced at $200,000 and under.
Our market has changed, and, in my opinion, Scottsdale is out of sync. Granted, it’s a unique city, land-locked, with many beautiful homes. Foreclosures are few and far between. Short sales are becoming much more common. However, as a whole, it’s not a moving market.
While home sales demand is increasing in Phoenix, Glendale, Mesa, and Goodyear, in Scottsdale it’s decreasing.
Click for full-size view of Scottsdale real estate supply demand graph
And, supply, or the number of homes on the market, is increasing.
Click for full-size view of Scottsdale real estate supply index graph
And when you look at the appreciation rates, comparing the City of Phoenix with Scottsdale, you can see that Scottsdale has experienced a much lower rate of depreciation, appearing to bottom out at about 20%. In Phoenix, the depreciation is much greater hovering at 40%.
Click chart for full-size view of Scottsdale vs. Phoenix Home Appreciation / Depreciation Rates
So, I’ve been pondering the reason that Scottsdale is experiencing a different real estate market. Do you think it’s because:
- Fewer number of foreclosures in the city, and many buyers are only looking at bank-owned properties, thinking they will get a better deal.
- Reluctance of Scottsdale home sellers to reduce home listing prices to incent on-the-fence buyers to make a buying decision.
- First time home buyers are looking to other communities where they can buy a larger and newer house for the same price.
- A trend towards smaller is better.
- Challenges in getting a jumbo loan (greater than $417K)
- General uncertainty and conservatism in spending.
I’m curious. What do you think?
