Buyer Confusion
There is a lot of buyer confusion in the market again. The news is letting out a steady drumbeat of bad economic news and there is great anticipation and angst with regard to the general election.
More locally in our Phoenix housing market, buyers and sellers know that times are tough. It’s tougher for buyers in that they don’t know if this is the right time to buy a home again. The news out there isn’t positive and so they are concerned about committing to a home right now.
So, when I get asked the question as to what I think of the market, my answer is the following:
1. This is a great time to buy a home. I see trends in the marketplace that suggest that the Phoenix housing market, whether we are talking Chandler, Gilbert, Scottsdale, Tempe, Peoria or Glendale, is slowly repairing itself. I feel this is very much happening. There is a long way to go, but I believe we are moving in the right direction.
a. These trends also vary from sub-market to sub-market here in the Valley. So understanding what’s happening in a more narrow area is important.
2. Regardless of it being a great time to buy, the actual deal to purchase a home should be compelling for the buyer.
3. Buyers should be committed to living for the home long term. The value may drop more in the short term but a buyer shouldn’t be buying for the short term.
4. Buyers should buy the home that “sings” for them. There is a lot to choose from. If a buyer settles and the home is not a great fit, then the likelihood that the buyers will want to move later and not stay in the property goes up.
5. Don’t buy on the upper edge of pricing for the community. I don’t recommend people buying ‘model’ homes as these are usually priced at the high for the community. As well, the model home may look fantastic when it is a showpiece, but don’t be surprised when it doesn’t look as good for you. BTW, builders often deck the homes out with numerous flooring and designer options that later will not appeal to buyers for the home’s inconsistency.
6. Keep the fundamentals of real estate in mind. Location is always important. Understanding any home buyer resisitance issues is important. The community is important. The characteristics of the home, especially as it relates to future buyers when you go to sell, are important. Don’t lose sight of that.
Buyers need to assess their particular situations and commit when they are ready. As well, one last tip for buyers here. If a property is a ‘deal,’ then go for it. Don’t expect that a great deal can be low-balled to be even cheaper. If it is a great deal to start, expect that other buyers will come forward to win it. If you really love it, don’t risk losing it by being unrealistic and assuming that you can nic off another 10-15%. It just doesn’t happen that way in many instances and you will walk away disappointed.
Finally, don’t get so wrapped up in a home that you are willing to pay more than it’s worth to get it. Be careful here. With this market, you don’t want to put yourself in a situation that any additional short-term decline in value is compounded by the fact that you paid more than you should have. Be willing to walk away.
David - www.LortiHomesArizona.com
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