The Condo Mania Team
Negotiating a Price on a Phoenix Condo - Some FAQs
A short sale in the community I like is listed for $100,000 less than any other listing in the community. Why?
AH, the joys of short sales. Remember that short sales must be approved by the seller's lenders. In most cases, the lender(s) have not approved the price the listing agent has set for the home. Some listing agents price very low to get multiple offers for the condo. Offer prices on short sale condos and townhomes must be reasonably close to the lowest priced units that have sold recently in the community - if not, the bank will not approve the sale and you'll have wasted a month or 2 of your time and effort waiting for a low probability event.
Another reason for a price discrepancy is that some non-distressed seller's prefer to "try out" the market to see if they can get a higher price. Sometimes they have plans to drop the price if they don't receive an offer.
Can I ask the seller to pay for my closing costs?
Yes. This is a good option if you want to conserve cash for a downpayment or other uses. Closing costs can average average 2-3% when a lender is involved, depending upon the fees your lender charges (make sure you get a good faith estimate).
Can I get bank-owned properties for sale 30% off list price?
Beware of advertising that states that you can get a home for a huge amount "off list". The advertiser can manufacture his own "list" price. But in general, bank-owned properties are priced very close to what they will accept for an offer. Sometimes they will price a property extremely low in order to pull in multiple bidders. In those case, you may need to offer OVER LIST to win in a bidding situation. We'll use our experience in handling condos and bank-owned sales to help you determine the right price to bid for a property.
How much is that nice view worth?
A fair price for any piece of real estate is what the buyer is willing to pay and what the seller is willing to accept. A view is such an emotional characteristic of a home, that it is hard to put an objective price on one. However, there are statistics that we take into consideration - one is the premium that buyers paid for other homes with similar views in the same condo development, ON THE SAME FLOOR. If there are no recent sales of condos with the same view on the same floor, we have to be a little more creative in evaluating the price. Even though view is important, you'll want to determine the value of the view by also examining the unit as a full package of amenities, location, layout and view.
One additional consideration when looking to pay more for a view: can that view disappear by future building? Take a close look at the neighbors between you and the view to determine whether they have the ability to destroy your view with the next new thing. In urban areas, there is never a guarantee, but vacant lots pose a more immediate threat.
I see a condo development I like but don't see a condo that I want to bid on. Do I wait?
No! Contact us first. Sometimes in high-demand communities good properties may go quickly. First we'll help you determine if the community you are considering truly fits your wants and needs. Then, we can contact you immediately when a new listing comes on in the community you like.
Back to: Articles
Though not guaranteed, information and statistics in this article have been acquired from sources believed to be reliable.
The Fair Housing Act prohibits discrimination in housing based on color, race, religion, national origin, sex, familial status, or disability.
Information Deemed Reliable But Not Guaranteed. The information being provided is for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. This information, including square footage, while not guaranteed, has been acquired from sources believed to be reliable.
Last Updated: 2021-10-17 06:54:11