Multiple Offers on Homes Priced below $350,000 (Phoenix, Tucson: real estate market, first time home buyer, transfer)

[Rick Lee]

I can't imagine not attending an inspection. In fact, I'll be bringing my own flashlight, camera and tool bag to the next one.

[rjrcm]

Originally Posted by Rick Lee

I can't imagine not attending an inspection. In fact, I'll be bringing my own flashlight, camera and tool bag to the next one.

Good for you (I mean it). Most show up to meet the inspector when done, then walk through and review what was found. Many don't want to hang around for the hours it takes, they just want the summary. Then there's the out of state buyers that can't always travel to be at the inspection. They just get the report and talk to the inspector about any concerns.

[Captain Bill]

Originally Posted by musicforme

I'd say what street we're on if there were more than one house for sale on it. But no, that isn't the street.

My Realtor was surprised that I wanted to attend the inspection. From the way he spoke, he made it sound like that people in Arizona don't typically attend their inspections. In Texas, where I'm from, it is rare that someone doesn't attend it.

If the buyer can attend the inspection, they should because they can learn more about the house.

If they can't, then the inspectors do a good job of going through the summary with them, and will physically point out and discuss anything the buyer needs more information on.

An important thing for the buyer and the seller is understanding what the seller must fix (if it isn't being sold AS IS).

Read Section 5 of the contract and fully understand all three sections 5a, 5b, 5c.

Inspectors write up a lot of items in their report, some of which may be considered very nit picking, and just having them in the report to deal with can and has been a deal killer.

However, the inspector has the job of pointing out everything, and it's up to the buyers to determine what is important to them, (knowing the seller has no obligation to repair the non-warranty items). Small items that are not important may just cause the seller to refuse all the non-warranty repairs.

The seller is only obligated to repair the warranty items spelled out in section 5a.

Also read and understand sections 6i, 6j, and 6k.

The seller must repair all non-working Warranted items. If they refuse, then they may be in breach of contract and the buyer then proceeds to Section 7 for the cures that are available.

They buyer can request the seller to repair as many non-warranty items as they desire, however, the seller is not obligated to repair any of them. Section 6i and 6j deal with the options available in that case.

There is no place in the BINSR Buyers Inspection Notice and Sellers Response to formally request a monetary solution to repairs. The BINSR is fairly cut and dry. The seller has to repair warranty items, and if they refuse then the buyer can issue a cure notice.

The seller can refuse any or all of the non-warranty items, and the buyer has to either accept that, or they can cancel the contract.

There can, however, be a verbal negotiation prior to the end of the due diligence period, if both parties are willing to do a verbal negotiation for money credit in lieu of repairs. Everything must be on the HUD-1. It's illegal to exchange money outside the transaction. So just know that some mortgage companies will not allow a repair credit to show on the HUD-1 (Settlement statement).

Time is the essence in these contracts, and it is extremely important to adhere to the time limits of the due diligence section. If one passes a time limit without taking action, then they have accepted the item and have no recourse.

[Ritchie_az]

I'm in the same boat as some others here. I'm relocating to the Phoenix area from the Tucson area, but lived in Surprise from 2000 to 2005, so I'm not a stranger to the area.
I'm most interested in bank owned homes in Buckeye and Surprise, using a VA loan. I have a great Realtor who has been very helpful.
Last Wednesday I put an offer on a home $25,000 above asking price (list price was under 100,000) and felt confortable that the offer was justified based on comps of the same floor plan in the same neighborhood. Unfortunately, someone with cash offered $20,000 above asking price and had his offer accepted.
We have an offer on a different house, but only for the list price. I don't believe the comps give much wiggle room. Also, our Realtor goes to church with the listing agent and thinks he'll work particularly hard to get our offer accepted. We have to wait for the bank to open on Monday to find out, so we'll see. I'm not holding my breath, though.
If the offer gets rejected I'll move on to another house. I'll keep that up until an offer gets accepted. I have a limited window, however, because I need to close no later than early October so that I can move my family.
I think if I keep plugging away at it eventually something will work out.

[Skywayy2001]

I am in the $450-550k market in N. Phoenix/Scottsdale and I can attest that in the last 2 months, inventory has moved. We put a full price offer on a great foreclosure that went pending in 12 hours; we never even heard back from the bank even though we were willing to go 20K or so over asking. Unfornately (or fortunately for realtors), investors are really moving the market now and it remains to been if this will have some real effect in the future (too many rentals..not enough people). My belief is that this mini boom had a lot to do with low interest rates and the high season of selling real estate. Now that interest rates went up a full point, I've seen activity really go down in the over $400k market and I believe that once interest rates really start to sky rocket in late 2009/2010, the market (at least on the upper end) will finally bottom then. For now, this market is very much a seller's market..even in the upper end; that is, when your home is priced right (and that's few and far between)

[Carnivoregal]

Is the competition as fierce for condos? My sister is moving to Phoenix and she is looking for condos, 2 or 3 bedrooms under 1300 square ft. for no more than 140K or so? Are people getting into bidding wars for condos?

[Carnivoregal]

Bump!

[foma]

Originally Posted by Ritchie_az

I'm in the same boat as some others here. I'm relocating to the Phoenix area from the Tucson area, but lived in Surprise from 2000 to 2005, so I'm not a stranger to the area.
I'm most interested in bank owned homes in Buckeye and Surprise, using a VA loan. I have a great Realtor who has been very helpful.
Last Wednesday I put an offer on a home $25,000 above asking price (list price was under 100,000) and felt confortable that the offer was justified based on comps of the same floor plan in the same neighborhood. Unfortunately, someone with cash offered $20,000 above asking price and had his offer accepted.
We have an offer on a different house, but only for the list price. I don't believe the comps give much wiggle room. Also, our Realtor goes to church with the listing agent and thinks he'll work particularly hard to get our offer accepted. We have to wait for the bank to open on Monday to find out, so we'll see. I'm not holding my breath, though.
If the offer gets rejected I'll move on to another house. I'll keep that up until an offer gets accepted. I have a limited window, however, because I need to close no later than early October so that I can move my family.
I think if I keep plugging away at it eventually something will work out.

i saw that u r looking in buckeye. have you looked in verrado? it's off of verrado way and i-10. i LOVE the neighborhood!!

[Ritchie_az]

I love Verrado and the "new urbanism" idea. It's a bit out of our price range, though. Sundance is one of the neighborhoods we are looking at in Buckeye. Also looking in Surprise (boy, has the town grown!).

[foma]

Originally Posted by Ritchie_az

I love Verrado and the "new urbanism" idea. It's a bit out of our price range, though. Sundance is one of the neighborhoods we are looking at in Buckeye. Also looking in Surprise (boy, has the town grown!).

I don't know your price range but i've seen homes as low as $145K.

Verrado is kind of a "cheesy" concept but both my husband and I bought into it. We love the neighborhood and the people there. You should definitely talk to your real estate agent if you like it there!! GOOD LUCK!