Many home owners in Arizona are facing tough times because of several underlying issues that home owners may or may not be aware of. An Executive Sales Associate with Coldwell Banker Residential Brokerage wants to discuss these issues so that you have useful information to make an informed decision about your future regarding Real Estate in Arizona. Do what you will with this information. This is one Real Estate Agents opinion and makes no guarantees. Market conditions are impossible to forecast. This article is designed to tell you what has been happening in the past, and where we are today regarding Arizona Real Estate issues.
Now may be an excellent time to purchase a home in Arizona. The interests rates are good, the prices are low, and sellers are giving amazing incentives. There is now way to determine if the prices have fallen as far as they are going to go, but home prices seem to be leveling out. Home builders in Arizona are still building massive communities on the outskirts of Phoenix, Mesa, Buckeye, Chandler, and Casa Grande. Builders would not be building if people were not buying these homes. Yes, the builders are giving great incentives. Residential re-seller’s are also giving great incentives because they are imitating the builder incentives.
Home buyers in Arizona are facing a complicated decision right now. Should they live sixty miles from work and pay two hundred thousand dollars for a home, or should they live ten miles from work and pay three hundred thousand dollars for a home? When making this decision, it would be best to calculate how much money you will spend on gas, how much your vehicle will depreciate because of the amount of miles you are putting on your car, how much time you will spend away from family with a long commute, and how much traffic you are willing to put up with. It would be wise to do a mathematical calculation on these factors versus a higher mortgage payment to see which would make more sense financially. However, other factors will be involved such as school districts and amenities.
Buying a home in Arizona is getting more difficult. Lenders are raising the bar because of the drastic increase in foreclosures. When there is a high percentage rate of foreclosures, lenders must raise their standards to protect their investments. Someone thinking about purchasing a home in Arizona will need a series of qualifications to get into a home loan such as a good work history, a descent credit score, and a good debt to income ratio. Lenders are requiring higher credit scores, more income, and longer work histories given the recent foreclosure rates. Lenders are also requiring more documentation on your assets and liabilities.
When lenders raise the bar, not as many people can qualify to purchase a home. This, combined with builders and sellers flooding the market with home listings, is creating an overall slow down of the market because the public’s confidence has weakened. The growth in Arizona is still phenomenal. Arizona is now the number one growing state in the entire United States.
If you are thinking about purchase a home, now may be the best time with the current interest rates, and the amazing incentives available. It is extremely common for people to get into homes with zero down. If you are a seller, now may not be the best time to put your home on the market. If you have to move, consider renting your home out to a good tenant. A qualified Realtor will be able to help you put your home on the market for lease. Lease option purchases are also becoming very popular in Arizona. They are designed to help a person that does not yet qualify for a home have a possibility of purchasing your home at the end of the term of the lease. This gives someone time to clean up their credit issues. However, a lease option purchase does not guarantee that the tenant must buy your home, they just have the option.
There is a link below, a website developed by an Executive Sales Associate with Coldwell Banker Residential Brokerage, that is truly helpful and is designed to educate the public. Definitely take a look at the website if you have been thinking about buying or selling a home in Scottsdale, Phoenix, or any other city in Arizona If you choose Coldwell Banker Residential Brokerage to represent you in a Real Estate transaction, of course they are going to make money. That is not a secret. The seller always pays both the buying and selling Real Estate professionals. When you are the buyer, you do not pay a Realtor. Choosing the right firm to represent your best interests is of paramount importance. Coldwell Banker Residential Brokerage makes it mandatory for their Realtors to get proper education and training. They take the time to train their Realtors properly so that your best interests are always number one.