Unfortunately, many buyers are competing against cash buyers – and losing.  The old saying, “cash is king” is true in this competitive  real estate market.

Recently one of my buyers made an offer on a foreclosed property. Over asking price, very clean, and a desirable offer to any potential seller. However, the buyer lost out to a cash buyer even though the cash buyer offered less. Even the REO agent wanted my buyer to get the home, but has no say!

Why? You ask? Would the bank accept a lower offer? In our market, appraisals are all over the place. As of May 1, in order to “fix” or “remedy” the problem, a new federal Home Valuation Code of Conduct  was placed into effect. No longer are the lenders allowed to speak with the appraisers – nor are they allowed to “choose” the appraisers that will be appraising a home “they” are lending on. Bottom line? It’s a mess!

The left doesn’t know what the right is doing, homes are not appraising, and there are multiple bids on the most desirable homes.

Despite the issues we face, Realtors will continue to push through the paperwork, the difficult appraisals, and we will write two, three, four and more offers in order to get our buyers a home. Ridiculous? Yes!! BUT, this, too, shall pass!

For more insight and understanding about what’s going on, click on the links here and here.

Many buyers that ARE in the market to purchase a home have an unreasonable expectation of what homes cost. They hear all about the “deals” out there for $50,000 $60,000 and up, and are looking at those prices. And they want a four bedroom, pool, three car garage, etc. I’m even hearing such things as “that home is way overpriced!” Really? How does the buyer know that – unless he/she hears that from a friend, or watches the news, or reads the newspaper. How about “asking” the Realtor?

EVEN if the property is overpriced, it won’t appraise! Typically, those low ball prices indicate a beginning price, or the property has major issues. Even up to $100,000 is a questionable number when purchasing a nice home – even in Arizona.

Many are walking away from the short sales. One warning for all of those buyers considering of a short sale, and thinking what a great deal they will get. Yes, SOME may work, but the majority do NOT.

For one example: What if you make an offer on a short sale, and the seller, as most do, has a second on the property? What if the second lender won’t acquiesce on the money owed to them? Then what? I’ll tell you what!! For months you wait – the first finally agrees on a dollar amount -  but the second won’t budge.

The deal falls through. Simple as that. Never mind that the second loses its entire dollar amount owed if the home is foreclosed upon. I was showing a home on Saturday, spoke with the listing agent, and after months of waiting, this exact scenario happened, and the buyers walked.

Consider purchasing from a seller with whom you can negotiate, and who will make those repairs, and provide you with the disclosures and insurance information that is important. On Saturday, last, I showed several homes – one of which was listed by a seller! It was comparable in size and in price – and in STELLAR condition.

Yes, this is a great time to buy a home, but do so wisely. Work with an experienced and knowledgeable Realtor who can advise and counsel you through the process.

If you love to hike, you will LOVE Arizona. Right now, we are unusually warm - in the mid to high 70's, but it's perfect for being outdoors. For anyone that hikes or just wants to stroll along a trail, be sure to be prepared. Bring plenty of water and a cell phone.  Even when I take a stroll - because it certainly isn't a "hike" for me, I bring water, and I'm never alone.

When those that are unfamiliar with our climate, exit the airplaine with shorts and t-shirts, (coming from the east) they're ready to rock and roll and love our warm and sunny outdoors.

I'm providing a list of some of our hiking trails for those of you looking for a good trail.

1.  Camelback Mountain Echo Canyon Recreation Area - East McDonald Drive - Phoenix, Az 85018; Phone: 602.262-4837

2.  Piestewa Peak - 2701 East Squaw Peak Drive, Phoenix, Az 85016; Phone: 602.262-7901 (right off of the 51)

3.  Superstition Mountains at Lost Dutchman State Park - State Route 88, Apache Junction, Az; Phone: 520.982-4485

4.  Dreamy Draw Recreation Area - 2421 East Northern Avenue, Phoenix 85021; Phone: 602.262-6696

5.  Tempe Town Lake - Mill Avenue and Rio Salado, Tempe 85289; Phone: 480.350-8625

6.  Papago Park - 625 North Galvin Parkway, Phoenix 85008; Phone: 602.256-3220

7.  South Mountain Park - 10919 South Central Avenue, Phoenix 85042; Phone: 602.495-0222

8.  Shaw Butte Park - 12898 North Central Avenue, Phoenix 85020; Phone: 602.262-6696

9.  Thunderbird Park - 9170 East Thunderbird Road, Scottsdale 85260; Phone: 480.312-2771

These trails are very popular and well marked. There are others as well. Just off of I-60 heading east from Mesa into Gold Canyon, there is a nice and mild hill on the north side of the freeway. I see cars parked there daily. Enjoy your hike, but again - take plenty of water, wear good hiking shoes, and take a cell and a friend. ;-)