Buyers often ask me "Can I put in a really low offer on this house?" The short, simple answer to that is that anyone can offer whatever they wish on a property. What really matters is if the offer will be looked at...and even considered. A few times I've had clients who really, really liked a particular home, but ended up heartbroken because, in their attempt to "get a steal" because "it's a buyer's market," they either poisoned the seller against them or wasted time in a competitive foreclosure market by offering w-a-a-y below asking price.
Lets take a look at a typical scenario:
Buyer A is approved for a loan that will allow them to buy a home priced up to $200,000. The question comes up about the possibility of offering say $200,000 on a property priced at $225,000 (which is a 12.5% discount).
There's absolutely nothing wrong with offering that, if comparable properties in the area are going for the lower price.
In reality, chances are, that offer won't even get a response. Generally speaking in the Tucson market, prices being asked nowadays are fairly close to what the market is bringing. If the seller is asking more than what the market is showing, you can just about guarantee that asking for a discount like this is going to be met with rejection instead of a counter-offer back. If it is a bank-owned house, you don't have to deal with the "human factor" i.e. "ego" like you would with one that is owned by a human being - there's nobody that would take personal offense or get cranky about a "lowball" offer - but they have their bottom line too, and a rejection is a rejection.
In the Tucson real estate market of today, many bank-owned homes (aka REO, foreclosure) are underpriced and seeing multiple offers in the first week or two. Taking the time to submit a lowball offer and wait for a response can often be an exercise in futility - with a more realistic offer (many times OVER the asking price, but within comparables for the area) snapping it up before another offer can be made.
Most often, a home priced above market IS owned by a real-live person who is still attached to their property emotionally, and either can't or won't face the reality of the marketplace. Many times, the home will have been sitting on the market quite a while (DOM or, Days On Market), and will probably remain there for quite a while until the seller either takes it off of the market or comes to grips with it & eventually lowers the price.
If you see a home that is priced at $225,000 and want to offer $200,000 on it - I have no problem putting together the offer...just realize that the likelihood of positive results are close to nil in today's market. We could get lucky, just don't count on it!
Something else to factor into an offer is whether you want the seller to help pay your "closing costs" which generally run about 3% of the purchase price ($6000 on a $200,000 home). Typically, sellers in today's market are willing to help out that way, but not with a large discount on the asking price included...it is like asking them for 2 discounts at the same time - similar to showing up at a resort offering "Locals Only Summer Rates" and wanting a AAA discount on top of it. You might get one, but not both.
I also work with investors who are market-savvy, looking at capitalization rates, market saturation ratios, historic vacancy rates & projected growth patterns...the principles work the same way: If the property works for you, and you want it, messing around may cost you a good property.
Smart investors know where the market is & are willing to pay the price because it is right. Amateurs, blowhards & wannabes "paper the town" with offers looking for "the steal of the decade" while others make money.
Yep - the announcement is true: I'm opening an office right in the heart of Downtown Tucson. Tierra Downtown is a going to be a branch office of Tierra Antigua Realty...and the TucsonKent Group is one of the founding partners!
We're located in the historic Pioneer Hotel Building (could be haunted!), on the top floor with views that can't be beat. The best part of being located downtown is that we're right in the thick of the community that is revitalizing Downtown Tucson - Congress Street, Pennington Street, Broadway, Stone Avenue...the Modern Streetcar and much more.
We're having a Grand Opening Celebration on November 12 from 3PM to 6PM, with wine, women & song (at least the wine part is a go), munchies & a lot of fun. If you're in Tucson that Friday afternoon - come on up & help us celebrate the beginning of what portends to be a very exciting beginning in Tucson history as Downtown continues to grow & come alive again.
Downtown Tucson has quite a few murals adding a little spice to the walls and construction sites in the area. How often do you get to watch the artists at work?
Often it seems that these works spring up "overnight" or perhaps we get so used to seeing the same old monolithic walls on buildings or drab plywood "safety barriers" around construction sites that we don't notice the art until it stares us in the face!
Just the other day, I was fortunate enough to see local artists Rock Martinez & Ed Muren work on their temporary canvas in the heart of Downtown Tucson - at 50 E. Broadway Boulevard - as this building gets renovated.
If you haven't been to Downtown Tucson in the past year...or even in the last 6 months...you'll be amazed at the entergy, vitality & transformation that is happening. The downtown area is coming alive with new investment and a sense of destiny in becoming a showcase of promise in The Old Pueblo.
Yet one of many reasons my partners & I have decided to locate our office in downtown...right in the thick of things! Stay tuned for photos & updates on what is happening in the heart of Tucson.
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This photo is of Sombrero Peak, which is a landmark to help point out where Continental Ranch is in Tucson. It is on the northern end of the Tucson Mountains - and stands out visible for miles and miles. If anyone needs to know where the community of Continental Ranch is, you can simply point out Sombrero Peak & say,
"Head that way, you can't miss it!"
I was driving to an appointment late in the afternoon when I saw this combination of clouds & light with Sombrero Peak silhouetted beneath them. Seeing the rays of sunshine defined like this doesn't happen very often, so I knew I just had to try to capture this scene!
Continental Ranch is a large, master-planned community west of I-10 in the northwest part of the Tucson Metro. Begun in the early 1990s, the community is still growing as it matures - new subdivisions are still being built, new commercial space is supplementing that which has been serving the area for the past 2 decades and more.
Late this fall, the Twin Peaks Interchange will add direct freeway access to the northern end of the community, which will ease traffic on Silverbell and make things much easier for those living on the northern end!
If you live in the Starr Pass Residences of Tucson, you know one of the perks of owning a home here is a great setting for spectacular sunsets. Located on the west side of the metro, cradled by hills studded with saguaros, the JW Marriott Starr Pass Resort anchors this community of single family homes, condos and casitas.
Rated as one of the world's best spa resorts by the Conde Nast Traveler, Fodor's & other noteworthy guides, the Starr Pass Resort also serves as an intersting backdrop for sunsets - especially on a stormy night like this one.
Owning a home in the Starr Pass Residences isn't nearly as expensive as one would think - even one of the golf course casitas. Don't take my word for it though, check out the current properties on the market below. Lets play a round at the Jack Nicklaus Signature course, relax with a massage at the Hashani Spa then enjoy a meal at one of the 5 restaurants while we celebrate your new home with luxury at your doorstep - without paying a mint for it.
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Buyer's agents, seller's agents. Tucson homes, condos, townhomes, golf homes, university property, land & investment. First time homebuyers, luxury home, Catalina Foothills, Sabino Canyon, commercial
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