Since October 2010, the local real estate market has seen reductions in housing inventory of over 40%.  With price points remaining similar to 2010, buyer demand continues to be very strong.  Combining this strong demand and lack of supply, the Phoenix Real Estate market is seeing multiple offers (or “bidding wars”) on hot Phoenix Arizona Homes.  While our clients are glad that their new home purchases should result in immediate appreciation of the property, that feeling does not go very far in offsetting the pain of trying to win a bidding war or losing bidding wars on multiple occasions.  So here are a few thoughts on how to win a bidding war:

• Be Prepared – Do anything up front that can help prepare for fast decision-making.  Getting homework items out of the way up front should also allow for better decision- making at the time of contract.  Completing items such as loan prequalification with a lender, completion of real estate disclosures, and anything else that would prevent the writing of a real estate contract will allow your Realtor more time to focus on getting and presenting your offer to purchase a property.
• Avoid Under Priced Homes – Unfortunately, in any market there are items that are overpriced and items that are under-priced.  A savvy Realtor should be able to point out the overpriced and under-priced properties.  With low inventory, under-priced properties inevitably end up in bidding wars.  By focusing on properties priced more at the market, home buyers are likely to avoid the bidding war and get better terms in the contracts that are negotiated.
• House Shop During the Week – In real estate the primary time for buyers to shop Phoenix Homes for Sale is Saturday and Sunday due to weekly work schedules.  However, most buyers forget about that lunch break or an extra 30 minutes before or after the work day where the viewing of a couple of properties is possible.  Many times buyers can get a hot property under contract before the weekend and before any other buyer ever sees the home.
• Don’t Hesitate – Last but not least, when you see that great property, don’t hesitate.  While one buyer is hesitating, another buyer is likely to be writing the contract.  If it is a Saturday or Sunday, then there could be two buyers writing a contract.  However, if you hesitate and don’t get an offer accepted on a home, asking why you hesitated is a great idea!  Solving the reason for the hesitation will likely yield a better decision when the next fantastic home comes on the market.

Maybe you are a first-time home buyer needing help understanding the logistics of your first home purchase.  Or, maybe you are looking to move up to a bigger, more spacious home.  We at the Thompson Group pride ourselves in helping you search the Phoenix MLS to find that special home that will be enjoyable for years to come!  Please contact any of our Phoenix AZ Realtors for your private, no-obligation consultation at www.ThompsonGroupAZ.com or 480-776-5214.