By Joseph Callaway
Last month the number of homes for sale in Maricopa County hovered above 12,000, but in the final days, inventory slipped to 11,722. This is good news for sellers as prices should remain firm or even go up if the shortage worsens. This is especially good for sellers of homes with challenges. If you are on a busy street, have no pool, or have deferred maintenance issues, now is the time to sell that normally hard to sell home.
All this spells bad news or challenges for buyers looking to move up, downsize, or relocate. We may soon return to multiple offers on every listing the moment they hit the market.
What can a buyer do? A number of things.
First, you can shop in earnest now rather than waiting ‘til summer’s end.
Second, get prequalified by a lender so you know how much you can offer. Then, only look at homes below that number. You don’t want to fall in love and then get outbid because you can’t go higher.
Third, you need an agent now more than ever. When the counter offers start flying and you’re being asked to waive the appraisal, you want a real estate professional who can break through the noise and have a relationship with that seller’s agent, resulting in you getting the deal when you really want it.
Fourth, have a cash alternative. In tight seller markets, cash is king. You might want to think of ways to raise cash for your purchase and refinance to a conventional loan once you’re moved in. Sources can be savings, borrow on your 401k, get a HELOC on another property, family gift (you pay it back with the refi) or even a hard money loan which can be presented as proof of cash. Your Those Callaways agent has these lenders to introduce you too.
Joseph Callaway is with Those Callaways eXp Realty and has been selling houses in The Magic 85254 Zip Code for more than 26 years.