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The real estate market in the Phoenix, Arizona and Mesa, Arizona valley is going through more twists and turns as foreclosed homes come onto the market.
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.
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