Phoenix Real Estate Sellers Get Their Cocky Back
Competitive Phoenix Real Estate Market Inspires Insanity
As more and more local property owners clue in to the state of today’s frenzied market, we’re starting to see some of the crazy cockiness that sellers exhibited in the mid-2000’s during the height of the boom.
Yes, our market is looking better for sellers than it has for 6-7 years, but I’m not yet convinced that some of today’s tactics are justified…if they ever are.
Here are some of my ‘favorites,’ if you can call them that.
“We’re not considering any offers that are less than asking price.”
Yep, I recently showed a property in Chandler where the Listing Agents had been instructed by their seller to not even present any offers below asking price…which was 20% over market value. I’ve been around the block. I understand that there are opportunists who are willing to try and capitalize on extreme market conditions. However, this was short-sighted. After years of negative media, excessive inventory, and fire sales, most Phoenix real estate buyers aren’t yet accustomed to the idea that they can’t at least negotiate a few thousand dollars off the asking price. Even the savviest of buyers who are in tune with today’s aggressive conditions aren’t prepared to pay 20% over market value. As for the sellers, if they want 20% over fair market value, that’s completely their prerogative. However, they should ask 21% over market value so they can at least give the appearance of negotiating.
“Buyers Must Waive All Contingencies in the Contract After 15 Days”
This is a flashback to the “good ol’ days” that I’ve even used myself. Unfortunately, today’s market is different than even that of 6-7 years ago. Lending guidelines have become tighter and HOAs are less cooperative than ever with delivering docs in the contractual timeline…among other issues. In short, my job as a Buyer’s Agent is to advise my clients of the risks of accepting this condition. It’s up to them to determine whether or not the potential reward is worth the risk. Personally, I wouldn’t do it today because too many things can go sideways in a transaction that one can’t foresee or prevent.
“Showings only at 2pm on Tuesdays and Thursdays”
Seriously. I called a Listing Agent today to confirm availability on a property and she said her clients only allow showings on Tuesdays and Thursdays at 2pm. Not 1:45. Not 2:30. 2pm. I explained to her that my clients were only in town on Friday, Saturday, and Sunday and were going to make a decision while they’re here. Too bad, she said. Wow! If she was advocating her client’s interests, she would have called them and explained the extenuating circumstances and allowed them to decide whether or not to allow the showing.
As Phoenix real estate continues to sell at a torrid pace, I expect to see more unique terms and conditions from sellers that show they’ve indeed gotten their cocky back