As recent as February of this year, it was common for a seller to contribute to a buyer’s closing cost. Usually a buyer would pay full price on a listing and then ask the seller to pay a portion of their closing costs that usually equaled between 2 or 3% of the purchase price. This helped the buyer who had an adequate FICO score, enough money for a down payment but not enough for closing costs. It was win/win.
Since March, with the sudden low inventory across the Valley, there is a new trend in real estate we are seeing. Sellers are getting multiple offers on their homes and the days of a seller contributing towards buyers closing costs are getting few and far between. In fact, I wrote an offer for a buyer this week and the buyer had to contribute to the seller’s closing cost in order to get the home.
The market is competitive and it favors the seller in all aspects. There are only 62 single family homes in an HOA subdivision available for sale today in the city of Maricopa. Sellers are enjoying multiple offers over the list price of their home, no concessions paid by seller and in some cases appraisals are waived. This sounds great right? Well, it is for the seller but what is happening to the buyer?
For the buyer, this means you have to get yourself positioned well in order to buy. You may need to delay your purchase to save a little more money to cover your own closing costs. You may need to sell your home and then look for a home to buy because contingent offers overall don’t win in this market. There is a bit more creativity being used now to write a good offer and it really is a lot more work for everyone involved. If you are a buyer you are at an all time low for interest rates which means your buying power has increased. If you are thinking of buying in the next three to six months you should start now building your Realtor and lender relationships. The preparation work you do now will be vital to purchase your home when you are ready to do so.
There are 186 homes that are under contract right now in the city of Maricopa. You can see with numbers like 62 active homes and 186 homes under contract homes are flying off the MLS. The average days on market right now is 48. This means days from the time it is listed to the time it closes. An average loan take 30 to 45 days to close so homes are going under contract quite fast.
This is an interesting and still a very good market in many ways. Knowing when and how to navigate right now is crucial whether you want to buy or sell. If you are considering selling or buying a home, please contact a local Realtor who understands this market and can work hard for you.
Stay safe and well!