Prices going up slowly since last week (Chandler, Maricopa: bank owned, days on market)

[phoenix_new]

i am observing daily listings, and observed that prices in Chandler area have stabilized and prices of some of the listings have gone up, what is your opinion ?

[khuntrevor]

rents are up....and the pickings on the bottom, where I feed are slimmer. Even in CG, STV, and Maricopa there are very few listings under 50K. Different story in hopeless Maryvale.

[observer53]

The OP's question seems to be about Chandler, not any of those other areas.

[Captain Bill]

Originally Posted by phoenix_new

i am observing daily listings, and observed that prices in Chandler area have stabilized and prices of some of the listings have gone up, what is your opinion ?

You're correct. I've seen the list prices for homes for sale in Chandler increase recently also. I've seen a couple of Chandler homes that had the home on the market for a few days and changed the price to a higher list price.

Part of the reason for this may be that the Intel in Chandler is adding more jobs so we are seeing some relocation buying.

In the Alma School corridor from 202 to Ocotillo Lakes the homes in top condition are selling with multiple offers from around $105/sf to around $120/sf.

My client just bought a great home in that corridor for $117/ft, and with the condition and upgrades this home had by it's owner (not a rehab) it was a bargain.

Through the example below here are a few tips for home buyers:

My buyers loved this home when they first saw it, but had just started looking and naturally wanted to see some more homes. They found another home they liked but between the time I scheduled to see it, and we viewed it, the home was sold (a great rehab on the market around 8 days).

Earlier I had asked the listing agent of the first house to call me if she got an offer, in case my clients decided to make an offer. She called me one evening and said she just received an offer and was going to present it, so I notified my clients. That offer gave the seller until 6 pm the following day (24 hours) to respond.

Giving 24 hours to respond in this market was a mistake by the buyers agent. The listing agent wisely advised her clients to hold their response until the deadline, giving her an opportunity to get multiple offers.

The next morning around 11am my clients decided to make an offer. We wrote it up and I got it submitted around 1pm, with a cover letter. What I write in my cover letters is proprietary so I don't disclose that, but I will tell you that (Tip 1) cover letters are extremely valuable if the agent knows what to include, and how to write it.

(Tip 2) In a sellers market that we're in (believe it or not) you cannot give the seller 24 hours to respond. Give them only 4 hours, or less; and be prepared to walk if they don't respond by the deadline. Go find another house because if you let them go past the deadline then they are holding off for another offer. Had the first buyers offer only given them 4 hours, then we would not have gotten that house.

(Tip 3) With the sellers written instruction, a listing agent can shop the offer. That means they can disclose to other agents the exact amount of all offers. Without that written instruction, they are not allowed to give that information. This listing agent did not disclose the other offer amount to us.

We made our response time for 6pm the same day so the seller would have to respond to us either earlier or at the same time as the first offer. I would have made it earlier but the clients wanted to see the house again so we got permission to go over to see it.

The sellers countered our offer with a reasonable counter and we accepted that.

Had we given them 24 hours, or anytime later than 6pm that evening, they would have had to counter the first buyer so they wouldn't lose them. Knowing there was a second offer, the first buyer may have made his counter at a number higher than ours which the sellers would have most likely accepted. They didn't want to play bidding wars. They wanted to respond to one offer.

Our cover letter, price, and terms, as a package got us the house.

The amount one should offer for a house in this market needs to be determined by the condition and location of the home (desirability factor), number of days on market; how close the home is priced to the current market value; and on how bad the buyer wants the home.

The buyers agent needs to discuss all these factors with the buyer so the buyer can arrive at an offer price that s/he's comfortable with. From there it's up to the agent to use his/her skills and knowledge to negotiate an acceptable contract.

[AZJoeD]

The inventory of homes for sale has dropped dramatically in the past 3 months. What do think will happen when demand exceeds supply?

One week is not a good indication, but keep your eyes open. Let's see if the trend continues.

[phoenix_new]

It will be intersting to see if trend continues,

I am only tracking

- 85248, 85249, 85286 and 85226
- 2200 sqft+ , upto $250k, and 7000 sqft+ Lot size
- Age 1995+


I see only 11 houses available for sale so far, and there were about 23 available couple of weeks back...

[mdtscoates]

Chandler is where I work and live. Prices are definitely stabilizing.

[jimj]

Well can y'all give me any indication on Waddell? The commercial building at 303 and I10 is now occupied by Wolf/SubZero and Wal-Mart Prasada just broke ground so commercial seems to be picking up out here. Prices have been running around $48-$50 sqft and it seems most of the cheaper foreclosures have been snapped up for rentals.

[propertyvirgin2011]

Originally Posted by Captain Bill

You're correct. I've seen the list prices for homes for sale in Chandler increase recently also. I've seen a couple of Chandler homes that had the home on the market for a few days and changed the price to a higher list price.

Part of the reason for this may be that the Intel in Chandler is adding more jobs so we are seeing some relocation buying.

In the Alma School corridor from 202 to Ocotillo Lakes the homes in top condition are selling with multiple offers from around $105/sf to around $120/sf.

My client just bought a great home in that corridor for $117/ft, and with the condition and upgrades this home had by it's owner (not a rehab) it was a bargain.

Through the example below here are a few tips for home buyers:

My buyers loved this home when they first saw it, but had just started looking and naturally wanted to see some more homes. They found another home they liked but between the time I scheduled to see it, and we viewed it, the home was sold (a great rehab on the market around 8 days).

Earlier I had asked the listing agent of the first house to call me if she got an offer, in case my clients decided to make an offer. She called me one evening and said she just received an offer and was going to present it, so I notified my clients. That offer gave the seller until 6 pm the following day (24 hours) to respond.

Giving 24 hours to respond in this market was a mistake by the buyers agent. The listing agent wisely advised her clients to hold their response until the deadline, giving her an opportunity to get multiple offers.

The next morning around 11am my clients decided to make an offer. We wrote it up and I got it submitted around 1pm, with a cover letter. What I write in my cover letters is proprietary so I don't disclose that, but I will tell you that (Tip 1) cover letters are extremely valuable if the agent knows what to include, and how to write it.

(Tip 2) In a sellers market that we're in (believe it or not) you cannot give the seller 24 hours to respond. Give them only 4 hours, or less; and be prepared to walk if they don't respond by the deadline. Go find another house because if you let them go past the deadline then they are holding off for another offer. Had the first buyers offer only given them 4 hours, then we would not have gotten that house.

(Tip 3) With the sellers written instruction, a listing agent can shop the offer. That means they can disclose to other agents the exact amount of all offers. Without that written instruction, they are not allowed to give that information. This listing agent did not disclose the other offer amount to us.

We made our response time for 6pm the same day so the seller would have to respond to us either earlier or at the same time as the first offer. I would have made it earlier but the clients wanted to see the house again so we got permission to go over to see it.

The sellers countered our offer with a reasonable counter and we accepted that.

Had we given them 24 hours, or anytime later than 6pm that evening, they would have had to counter the first buyer so they wouldn't lose them. Knowing there was a second offer, the first buyer may have made his counter at a number higher than ours which the sellers would have most likely accepted. They didn't want to play bidding wars. They wanted to respond to one offer.

Our cover letter, price, and terms, as a package got us the house.

The amount one should offer for a house in this market needs to be determined by the condition and location of the home (desirability factor), number of days on market; how close the home is priced to the current market value; and on how bad the buyer wants the home.

The buyers agent needs to discuss all these factors with the buyer so the buyer can arrive at an offer price that s/he's comfortable with. From there it's up to the agent to use his/her skills and knowledge to negotiate an acceptable contract.

I would assume this story was not a bank owned or short sale? We all know this would not work for a short sale as you have to be willing to wait many months for an answer from the banks on that. Maybe it would get the seller to accept your offer, but that really makes not difference in a short sale.

I would also assume the cover letter, and giving a short window to respond would have no bearing on a bank owned sale either. Banks want to get rid of these places, but they still have standard operating procedures that keep most of them from answering within a 4 hour window. (We did get a acounter offer in about 7 or 8 hours on one wihtout even asking for that though)

I do agree with you that it is somewhat a sellers market these days. It is still a great time to buy if you can find a place you like and actually get the deal. We are currently on offer #5, and we have tried everything from HUD to bank owned to a short sale. All work very differently, and all fell apart for different reasons (well 2 offers are still standing, but we will see). None of these sellers would even care if we asked for an answer in 4 hours, the seller will answer when the seller is ready in these cases. I would love to find a home that was a normal sale and use these tactics, but have not found that opportunity in my search yet.

[Captain Bill]

Originally Posted by propertyvirgin2011

I would assume this story was not a bank owned or short sale? We all know this would not work for a short sale as you have to be willing to wait many months for an answer from the banks on that. Maybe it would get the seller to accept your offer, but that really makes not difference in a short sale.

I would also assume the cover letter, and giving a short window to respond would have no bearing on a bank owned sale either. Banks want to get rid of these places, but they still have standard operating procedures that keep most of them from answering within a 4 hour window. (We did get a acounter offer in about 7 or 8 hours on one wihtout even asking for that though)

I do agree with you that it is somewhat a sellers market these days. It is still a great time to buy if you can find a place you like and actually get the deal. We are currently on offer #5, and we have tried everything from HUD to bank owned to a short sale. All work very differently, and all fell apart for different reasons (well 2 offers are still standing, but we will see). None of these sellers would even care if we asked for an answer in 4 hours, the seller will answer when the seller is ready in these cases. I would love to find a home that was a normal sale and use these tactics, but have not found that opportunity in my search yet.

You're correct, it was a traditional sale. There are different strategies, for different types of offers, and different types of sales. Some of them work some of the time.

If the seller is not interested in responding by the deadline, then the buyer should be willing in advance to let the seller know that the offer is off the table, and move on to the next one. Otherwise the seller will use that offer as a notice to another buyer that they have multiple offers, even though the deadline has passed.