Real Estate Short Sales and Real Estate Investments

Arizona real estate short sales market is really hard work for a Arizona real estate agent and a real estate investor.  Our Encompass Realty group is processing over 60 short sales at a given time. If you are an investor looking for a real estate flip then good luck, the real estate foreclosure auctions is a better bet.  However if you can wait 2 weeks to 5 months for a bank to approve on your offer, there are still real estate deals for the real estate owner occupied buyer or the long term investor. Investing in the Arizona real estate market requires companies like Encompass Realty ® to the best buyer broker representaton.

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Should I buy or rent?
Some people buy a real estate vacation home with the idea of turning it into a permanent retirement home down the road. Others like the tax benefits or wish to expand or diversify their investment portfolio. Most people who decide to buy on the Vineyard understand that this is a special place and have come to love it here. Owning real estate brings the benefit of having your own place, becoming part of the community, blending into the daily fabric of the island, and living in all its seasons. Ownership brings great benefits, but also the responsibilities of home management and maintenance.
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Is now a good time to buy? What do you think the market will do?
Although the Fall of 2001 saw significant changes in our economy, the state is still experiencing an very active real estate market. Pricing has adjusted somewhat to current market conditions, resulting in a moderate softening of prices. There is a slight increase in the number of available listings, providing potential buyers with greater choice of properties from which to select. Additionally, interest rates are at, or near, 20-year lows. These factors combine to make this a great time to buy. For more information talk with your Encompass Agent or visit the Buyers section of our site.
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What costs I will encounter with a second home?
As with ownership of any property, there are mortgage, utilities, insurance, and maintenance and repair costs. If you’re thinking of renting your property, or using the property seasonally, it’s best to have local property manager or caretaker who can check in on the property and deal with issues that arise. If you’ll be renting the property, you will also have agency commissions associated with each group of tenants. Many owners prefer to have lawn care and cleaning services to keep the place in ready-to-use condition.
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Who does the Real Estate Agent work for?
In Arizona, the state mandates that real estate brokers disclose their agency representation to you. Before showing you any properties, a broker must disclose their representation and have you sign a form that confirms that you have been properly notified. An agent may be a Buyer’s Agent, a Seller’s Agent or a Disclosed Dual Agent. Be sure you clearly understand the representation of any agent you work with.
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If I am looking to buy a property with the intent of using is as a rental, where should I buy?
If you’re planning to use your property exclusively for investment purposes (rentals) you should consider current rental rates in that area. However, the most important consideration is to choose a property you think is a good value, in a location that appeals to you. Contact an Encompass Agent for more information.
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What’s the difference between a REALTOR® and a Real Estate agent?
Anyone who has completed their real estate certification course in Arizona can show you properties and act as a real estate agent. REALTORS®, however are a group of agents who have achieved higher levels of professionalism and adhere to a strict and monitored code of ethics.
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What does it mean when a property is listed as Exclusive?
An Exclusive Listing, is when the property is contracted with one agency who works to find buyers, and oversees advertising and promotions. With Shared Listings two agencies offer the same home for sale, which may result in the same property being advertised slightly differently by two different firms. With a Tri-Listing three different agencies market the property simultaneously.
As a potential buyer, any real estate agent can show you almost any property available, whether or not they are the listing agent, even if it’s an exclusive listing. In a few rare situations, very high-end properties may be offered privately to select agency customer lists, but by far the majority of the properties available will be included in the AZMLS network, the multiple-listing service for Arizona.
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What’s the difference between an Offer and a Purchase & Sale?
The Offer is the legal document, which is signed by both parties when a buyer and seller agree on the initial terms of the sale. The Purchase and Sale is a more detailed, lengthy legal document, which is often executed after certain contingencies (such as inspection) have been completed. When either document is signed by both the buyer and seller, they constitute a legally binding agreement. Be sure to consult with your attorney before signing any legal documents.
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What’s the difference between the assessed and appraised value of a property?
The assessed value of a property is used to determine local and city taxes. This is usually a fraction determined by local custom of the appraised value.
The appraised value of a property is the current market value of the property as determined by a professional appraiser and reflects sales prices of comparable properties within the prior six-month period.
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What is a covenant?
Properties which are in historic districts or that are part of neighborhood associations, may be subject to certain covenants(CCR's). These are restrictions which must be adhered to by all residents of the area and may include, use or building restrictions, siting or sizing guidelines, and behaviors which have been agreed upon by the association or commission. Covenants help to maintain a consistency within an area and protect its’ value.
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How long will it take for my property to sell?
There are three main variables that affect the length of time a property is on the market: the price of the home; the condition of the home; and the current market conditions. The seller can affect the first two of these variables—an appropriately priced home in great condition, with fresh paint and all details in order, will have appeal to many potential buyers and is more likely to sell more quickly—even in a slower market. For more information on what to expect when you’re selling visit the Sellers section of the site or talk with your Encompass agent.
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