So much has changed about buying Arizona real estate, the top of which is how competitive it has become over the last decade or so. Whether you’re a buyer with an offer on the table, or you’re a seller looking at a bidding war, you want to make sure you walk away the winner. And since tensions can run high during fierce competition, it’s helpful to have a guideline to keep your deal on track. In this post, we share What You Need to Know About Buying Arizona Real Estate. (And we share some great info about selling Arizona land as well.)
Financing
When you’re buying Arizona real estate, especially in a competitive market, you want to make sure your ducks are lined up and ready to go. Having a preapproval letter and a substantial down payment prepared build confidence in your offer. Most sellers want to close as quickly and stress-free as possible, so doing everything you can on your end as a buyer to move the process along will give you a leg up on the buying competition.
Selling in a competitive market can be overwhelming. We recommend sorting out the offers into two stacks. First, put those with financing in place in the keep pile. Next, you’ll want to sort out those with the best debt-to-income ratios. Cash buyers often prove a better choice as they can close quickly and you don’t have to worry about working with any kind of financing. But, if you’re okay with a seller-financing kind of deal, look for buyers who can make a large down as proof of intention and give them a gold star.
Offers
When buying Arizona real estate, bring your best offer from the start and skip the contingencies. Buyers who play a numbers or negotiation game typically lose out. Set an upper limit on your bid and the stick to it. If you find yourself in a bidding war, don’t let emotions gain the upper hand and find you’ve overpaid for the property—buyer’s remorse sets in quickly once the passion of the moment wanes.
Selling in a competitive market requires that you remain calm and carefully consider all of the factors that make an offer the best. It helps tremendously to know the property’s actual market value so that you have realistic expectations of incoming offers. When you do get bids, avoid those loaded with contingencies. Remember, you’re locked in once you’ve accepted an offer. That said, you can still look at other offers, and if the deal you have falls through, you’ll have a backup.
Timeline
When you’re buying Arizona real estate in a competitive market, consider being extremely flexible with the closing timeline. You don’t always know the sellers situation, so a willingness to work with them could go a long way to put your offer at the front of the line.
Most times, sellers are looking to close as quickly as possible. But in some cases, you may have a reason to hold the property a bit longer. Selling in a competitive market may provide you the opportunity to negotiate a rent-back agreement with your buyer. This agreement will give you extra time after closing.
Buying? If you haven’t found your next investment property in Arizona, we have a steady inventory of the best properties available. Check out Southwest Land Deals to see a wide variety of vacant land throughout Arizona and the Southwest.
Selling? Our sister company, Investment Land Alliance, pays cash for your land, with closing in a few days or whenever you’re ready. After detailing what you could sell for on the market vs. our offer, Investment Land Alliance will make an offer you’ll agree is more than fair.