Do we want to live bidding wars again? Do we actually have a choice?
Hanna and I practice real estate in Metro Phoenix AZ, heavily in East Valley Cities.
It is crazy out there! Tougher and tougher to "win" a property for a buyer.
First, finding a property that is an a good shape- with REO it is already a challenge. If one is found, there are multiple offers placed on the first day on the market. Trying to outbid the price 10-20% knowing exactly, that property will not appraise for offered amount! Explaining the strategy to the buyer that is being implemented just to get in the door. Next, waiting time to receive executed contract back from
the lender (sometimes 14 days or longer). You still not sure if you have the property tied up in or not, neither your buyer. Finally, appraisal came in low...what a bummer... Re-negotiating the terms with the lender again. By now, escrow is extended for 60 days or more. Finally, you are ready to close and just waiting for Title to be done. And waiting...
Second, the short sale bidding process. Competing against other bidders, having no idea if bank will even consider the price. If you buyer's offer gets chosen and offer is accepted by the seller, the waiting process starts there. To receive approval (or denial) from the lender/bank may take several weeks. So, eventually you may raise against nothing.
Third, "regular" sales by individuals that actually own the house and could sell on their terms. It seems like it is a sellers' market again, so multiple offers are very welcomed. Your seller will love you for bringing more than one offer to the table. It is great to be a listing agent in that position.
To survive a bidding wars again, we have to consider: buyer comfort zone, knowing the value of the property, and not letting emotion to drive a buying decision even though, buying a house is an EMOTIONAL process.
Megan Izdebska & Hanna Manoufar
Prudential Arizona Properties
3155 S Price Rd, Chandler, AZ 85248