I recommend you Pay full Asking Price for that Carefree (AZ) Home!

June 7, 2008

Price is Right LogoI have been working with several buyers in Metro Phoenix, Scottsdale and Carefree who are finally eager to purchase a home. Though, like anyone who can read a newspaper or stand by the proverbial water cooler, they now it is just that; a buyer’s market and can afford to be , shall I kindly put it, aggressive with offers.

Now I do suggest , recommend and share comps (which seem to be of little value in this market) with my buyers to arrive at a price that for which we can make a compelling argument to the seller to facilitate a transaction.

However, as a Realtor, we have to do what our client wishes. and, when they ask me to prepare an offer, it seems to start at a dollar value at a large percentage discount to whatever the home is listed.

However, yesterday, we made a full price offer on a home. Here is what happened.

Mr. & Mrs. client have been looking for a home in Carefree, AZ. a wonderful community with breathtaking mountain views. The home that they first wanted was listed at $1,050,000. My clients offered $850K and their offer was rejected.

However, we next found a home in the same area that was listed at $819K , reduced from $1.2MM that it was purchased for just 4 years ago.

They asked my opinion, and I said, if you want the house, “I recommend you Pay full Asking Price !”

Today, we joked around about the look on their face when they heard that. However, like they said the Price is Right !!

By the way, they did offer full price and as you might imagine, it was quickly accepted.

In fact, there are situations that still occur, with the abundance of foreclosures, that i recommend you bid higher than asking price. In fact, Real Estate auctions have bids starting below $100K for homes that will sell for more than twice that amount.

The general rule for buyers (not investors) who will own the home as a primary residence is to find the home you love, and offer a price you can comfortably afford.

make sure you or your realtor helps guide that offer price with a detailed comparative market analysis.

Make sure you stay in your home awhile (at least 5 years). You will receive tax benefits, long-term savings in equity, a hedge against inflation (if you have a fixed rate mortgage) and since you are buying 20%+ below the market highs, you will likely see some wealth creation through long-term equity appreciation.

Most importantly, you will have a place to live, to call a home and share with family.

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Here are a few excellent Realtors who can help you prepare a detailed CMA

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Copyright © 2008 By James Wexler, All Rights Reserved. *I recommend you Pay full Asking Price for that Carefree (AZ) Home!*

Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs

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Written by James Wexler · Filed Under Articles, Buyers, Short-sales / Foreclosures 

Comments

One Response to “I recommend you Pay full Asking Price for that Carefree (AZ) Home!”

  1. Mark Harrison on June 8th, 2008 10:41 am

    I saw the article title, and felt compelled to read and then post a rebuttal.

    However, on reading, what you are proposing does, indeed, make sense. I hope, however, that you are going to follow up with an article explaining how, for investment buyer with time to spend, using low offers as a filter to shake out the “motivated vendors” can be effective.

    This is what is now known, in the UK at least, as “monkey tree negotiation” (ie - you shake each tree first, quickly, to work out which one has the monkey up it”).

    Regards,

    Mark Harrison
    UK Real Estate Investor, and author of “Property Negotiation”.

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