Q And A

Lately I have to tell a lot of people that 'this home is pending' or 'under contract' and sometimes I get a question, "what does that mean?"

It means that a seller and buyer have come to terms, to an agreement on the sale/purchase of that particular real estate and put in writing. The property is sold subject to the terms of the purchase contract and any addenda attached to it.

Once this happens the seller cannot accept another offer, unless that subsequent offer is in a back up position. A back up contract may go into the first position, subject to the term of the back up agreement, if the first position offer falls though. 

A transaction that is pending is one in which the seller has more confidence that the transaction will close. There are

…

Q. Can we put an offer on a house if it is currently under contract?

A. Yes, but.

You can put in an offer on a house that is already under contract if the seller will take it. The seller does not have to take any additional offers after a home is under contract. In fact, the seller is under no obligation to accept an offer period, ever and at any time. 

Though:

Once a home is under contract it's under a legal document by which both parties have to abide or suffer the consequences if it is broken. 

Many times a seller will take subsequent offers from buyers even if the homes is already under contract, but those offers will be in a back-up position and there are usually additional clauses in the back-up contract protecting both the buyer

…

When the days are like they are in early Winter in Phoenix with weather perfect for wearing shorts and playing golf, basking in the sun, taking a hike or simply sitting on the patio and listening to the birds, it's not surprising to learn that more Canadians have purchased real estate then in the past, especially with the high value of the Canadian dollar and the low prices of Phoenix real estate. It's a perfect combination for both second home buyers and investor.

"In 2003 Canadians accounted for only 0.4% of real estate purchases in Greater Phoenix. Since 2008 they have been buying far more and now are buyers in about 4% of residential transactions." → Cromford Report

Below is a map fo where Canadians are buying real estate in Greater Phoenix.

…

Selling real estate is somewhat of an art form and science. Neither one alone will do the magic, but a combination of the two can do wonders. Not everyone has the luxury of timing their home's sale or even when the property goes on the market, but for those who can, there is some data to consider. There is the timing of listing the property as we'll cover below and there is seasonality in the Phoenix market which I covered before. 

Now, Redfin has added some more useful data to the mix, that is when you should or at least should consider, listing your home for sale: winter, spring, summer or fall. There is a reason why most homes sell in the early summer, so besides timing the market, timing seasonality there is coordinating your life with the sale

…

Q: Should I offer less than asking price for the home I want to buy?A: You could, but the question could easily be, 'should I offer more...' The asking price is just an indicator of what the seller wants: it could be a market price, a price suggested by their Realtor or it could be what the seller wants or needs. Each of which could or could not be the price that's parallel to what that market, buyers are willing to pay.It could be a price that is right on the market, over the market or below market. In other words it's a suggestion rather then a rule, but it is indicative of where the seller want's to be.You as the buyer along with your agent need to study the market and determine what the value is based on other similar home sold. You need to…

Q.  How are regular owned, non distressed, homes sold with so many short sales and bank owned properties competing for the same buyers? A. The simple answer is supply and demand and peoples need, current market acceptance and future market expectations dictate which properties buyer pursue and end up buying.  No matter what type of property it is, normal sale, short sale or bank owned, they all need to play by the market forces against which it's very difficult to fight.The first chart below shows active properties.  The lender owned homes make up the smallest share, followed by short sales and almost 50% are normal for sale properties.  In terms of choices, buyers have a very limited choice of lender owned homes.  These seem to be the ones…

Q. Are the asking prices for foreclosed Phoenix home the price for which the bank wants to sell?A. Price is always negotiable, in so far as the parties to the transaction and the market allow and accept it.Pricing a home is very difficult, especially if the condition is not the best as it should be.  There are so many factors that affect price that it becomes an educated guess at best.  Who truly established the price is the market place.It does not matter who the seller is: they need to adhere to market forces or they will lose: not sell.  So the price that foreclosed homes are on the market is approximately at which they want to sell it, unless they are using other strategies, like pricing low to generate lots of offers which will raise the…

Q. As a buyer should I use a buyer's agent or is it better to deal directly with the listing agent.  Will the seller’s agent be helpful or hinder me from a great sale price? 

A.  The easy answer is, have your own representation: have your own agent to represent your interests.  Although it's possible to strike a good win-win contract on the property dealing with the listing agent directly, there are too many factors where some party will not be represented as they should be.

Realtors are held to a certain standard which includes loyalty, disclosure, confidentiality and accountability.

The issue is that when the agent works both sides they should have a duty to both parties and that's where there may be a conflict of interest and when that

…

Less costly, and less destructive then a foreclosure, the benefits of a short sale are good for all parties involved.Q.  Is there a benefit of doing a short sale vs. letting the home go to foreclosure.  What's the benefit for the home owner and for the bank?A. A foreclosure is a nasty thing.  It's a very negative process with a more destructive effect on all parties involved, and especially more destructive where it matters most for the home owners and the community.The short sale is not a negative experience.  They are sometimes done for reasons other then distress and often sellers sign notes paying off the difference that resulted in the short sale voluntarily:  this happens when there is a job transfer or a need to move for other reasons,…

Q.  What can one do to sell a house quickly, besides pricing a property correctly?A.  The assumption is that it is priced aggressively.  Because if it's not then there is little that can be done to sell a home fast in most cases.  Since that is a given we won't go into it.To sell quickly there is a need to create a sense of urgency on the part of potential buyers, scarcity of the goods and opportunity or at least a perception of opportunity.   Sometimes the latter is done by outside forces and it's simply a matter of taking advantage of them.  A good example of this is the $8,000 tax credit of 2009.To do that you need to generate lots of exposure.  The goal is to create an auction effect for a scare object.  Scarcity is created by endowing…