What No One Tells You About Real Estate (that you need to know)
There's a lot of noise out there about Arizona Real Estate. Lately, you've likely heard about foreclosure rates going up, potential market changes, and that "love letters" can help sway a seller. You've probably also seen ads on TV and online about wholesalers who will buy your home, no questions asked. As your Realtor, I want to keep you informed so you can have all the facts about what's going on in Valley Real Estate.
Foreclosures Are Increasing—But Still Low
The media is making a big deal about forbearance and foreclosure increases. While it’s true that foreclosures are on the rise, the numbers are still way below what we’ve seen traditionally.
The increase in foreclosures seems so dramatic because they are coming up from such low numbers. With the end of the moratorium on foreclosures, the numbers are simply heading back toward normal.
If you are searching for a new home, foreclosures may bring you a few more choices. Foreclosed homes are often sold for less, bringing more options to buyers who haven’t yet been able to find a home within their budget.
The rise in the number of foreclosures is nothing to worry about. Overall, the market is still hot, so even if you get behind on payments, chances are high that you’ll be able to sell your home. If you find yourself in this situation, don’t hesitate to reach out to me.
One thing to note is that real estate is hyper-local, which is why it's not uncommon to have two different cities in the same county with a different real estate landscape. For example, Scottsdale is still experiencing a seller's market, while Tempe has become more balanced, and is nearing a buyer's market.
Love Letters Are A Liability
In real estate, a “love letter” is sometimes written by the potential buyer to stand out when they’re competing against other offers. This person tries to convince the seller to choose their offer, often describing how they can picture their family living there.
On the surface, these letters seem like a good idea, but they also contain personal information about the potential buyer. This could cause the seller to choose an offer unlawfully. Whether intentional or not, using race, religion, or family status as a basis for accepting or rejecting an offer is a violation of the Fair Housing Act.
When it comes to selling your house, an offer should be chosen based on price and terms, not based on who the buyer is. In order to remain objective, it’s best to not accept love letters at all. If you do receive a love letter, don’t read it. Instead, reach out to me so I can assist you in determining the market value of your home and help you sell it!
Wholesaling Real Estate Has Pros and Cons
Real estate wholesalers don’t actually buy or sell property, but rather connect sellers with interested buyers. They find properties that can be sold below market value, often older homes or those needing renovations, and agree on a price with the seller. The wholesaler then reaches out to interested buyers, like real estate investors, and eventually assigns the contract to the final buyer. The wholesaler earns a profit on the difference between their agreed-upon price with the seller and the final sale price for the buyer.
Through a wholesaler, a seller can quickly sell without the hassle of finding a buyer. However, you often won’t make nearly as much as you would if you sold your house on the market since wholesalers contract houses for less than market value in order to make a profit.
Real estate agents can also help you find a buyer—without having to sell your house for less. Instead of selling below market value, I can show you how to get the most for your property.
Now that you're informed, when you’re ready to sell your home, buy a new home, rightsize or downsize, I'd be happy to help. Connect with me today.