So I just had a phone call from a person that wanted to offer on a proerty that I had listed. Guess what? I am not kidding, the Seller about 30 seconds before signed the Purchase ad Sale agreement. This means that it is an accepted offer and the property is considered “in contract”.
In the Phoenix Market and frankly in any other market it is important to get the contract accepted. It is not that you have all of the information, it simply means that you have the property under contract. I can assure you that by the time I request all of the due diligence, in this market the property will have gone to contract with someone else.
I am pretty good at being able to estimate the cost of running the building-stablized. I also work with Property Management to know what the rents can or should be.
As far as the condtion of the interior (as we rarely get to see interiors) this is often a negotiated factor after inspections.
Remember that you also have an apprasial condition in the contract as well.
The way that I write a contract, we make sure that you have a due diligence period so that you can do your analysis of the proformance of the property. Remember until we get past the due diligence phase of a contract, it really is all paper.
I never want someone to CLOSE on a property that is not right for their needs but without an accepted contract, we will never figure this out.
Do not think that low ball offers work in a good market. They DO NOT! Remember you still have the apprasial contengency.
Real Estate is location and pick you price range and location.
Here is something else that is non-negotiable. You must have a proof of funds for either the purchase amount (if cash) or for the down payment. In addition, if you are going to finance part of the purchase ABSOLUTELY need to be prequalified. Contracts are not worth much if there is not one or maore of these items in place. Today alone I received two offers on properties and niether one had a proof of funds (both cash). I immedaily sent an email to the agents for the POF and in both cases received it back in minutes. Agents and Investors know that they need this piece.
Off Market Is not a deal as many think. Who cares if it is an advertised listing or an “Off Market”. If it is on the MLS for expample you are actually more protected legally as Realtors have rules that govern. I have bought off market and while we did the best due dilligence possible, once we closed there always seem to be more hair on the dog so to speak.
I promise my clients that if we write on a proerty and it is not the right one that they will have the ability to cancel during the Due Dilligence period. Please read my past blog on Critical Dates Letters as you will agian see how important that these are.
Stay tuned for more Broker’s Advantage Blogs next week.
And remember that I answer my phone. Cal me 602-688-9279