Gilbert Real Estate Blog
~ by Randy Hooker of Dreamcatcher Realty
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Archive for September, 2009
Wordless Wednesday in Phoenix ~ “Waking Up Is Hard To Do”
Ever had one of those days when you just can’t get enough coffee? LOL
Greater Phoenix Real Estate ~ “Is this property still available?”
At least 2-3 times every day we receive an online inquiry, email or phone call regarding a listing. The question is typically phrased, “Is this property still available?”
My initial answer is always, “It depends!“ I’m not trying to be a smart-ass; I’m simply attempting to lay the groundwork for what is often a complex and confusing answer to many home buyers in the greater Phoenix real estate market.
“On WHAT does it depend?”
The first issue is whether or not the listing is showing as Active in the Arizona Regional MLS. If it is, then it means the property is indeed available to purchase – correct?!?! Not necessarily so! These days, we often see comments in the confidential Realtor Remarks section of a listing saying the bank/seller has received multiple offers on a home, they’re not receptive to any more offers, and they are simply waiting on the bank to notify them which offer they will be accepting. That waiting process can take up to two weeks, and all the while, the listing remains in Active status. In effect, however, the property is not available.
Another example is when the listing is in AWC status. An AWC status is considered to be an “active” status, and the listing will continue to be picked up by Realtor IDX sites, secondary search engines, etc. However, what the AWC status means is that a contract has already been accepted, but the seller is willing to consider back-up offers. So is the buyer willing to enter into a contract that will be in second position, at best? And if there are already 2 other back-up offers accepted, is the buyer willing to take the number 4 position? Back to the point of this post ~ even in AWC status, the property is not available for a first position contract.
MLS status is the first thing we look at, but are there any other factors? You guessed it! What if the buyer is pre-approved for an FHA loan, but the property is not available via FHA financing? That happens all the time. If the property’s condition will not make it past an FHA appraisal, then it is not FHA-friendly. What if the present owner is an investor who just purchased the property at trustee’s sale (foreclosure)? The property must be owned by the seller (“seasoned”) for at least 90 days before FHA will approve the purchase/loan. What if the owner/seller is not receptive to a Conventional loan? Yes, that happens as well. If the type of financing a buyer is using does not fit the type of payment terms required by the seller, then the property is not available.
Finally, what if the buyer is paying cash? Answer — it depends on whether or not s/he can provide “proof of cash funds“. I’ve lost count of the ‘assets’ folks have brought to me to cover the purchase price of a house, but those assets were not liquid, couldn’t readily be converted into US dollars or were under the control of another person or company. I once had a client who was expecting to receive a large insurance claim settlement from the courts – “sometime withing the next 6-9 months.” You get my drift?. If the buyer does not have hard, cold, US dollars, or cannot furnish evidence of sufficient funds, satisfactory to the seller, then the property is not available.
A mortgage lender that I consider to be one of the best in the state, Jeremy House, sent me the following chart of the major loan products and guidelines that are out there right now. He was careful to note that many things in the mortgage lending industry change on a daily basis, and can be outdated/changed in a heartbeat. So before you make any decisions about mortgage loans, I would heartily recommend that you check with Jeremy or another local, reputable, experienced lender. In the meantime, his chart does provide a fairly good overview of what’s out there and available, at this moment, in this room. And the next time you’re tempted to contact your Realtor/Broker to ask if a particular property is available, be sure to smile and laugh when s/he says, “It depends!”
Greater Phoenix Area ~ Labor Day Weekend Freeway Closures & Restrictions ~ September 4–7
Have a safe and fun holiday weekend, hopefully with very little labor!
