Scottsdale Foreclosures - Top 5 Buyers Tips

By Author: Barry Cox
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Over the past few months, home sales in Arizona have increased dramatically. The Arizona Regional Multiple Listing Service (ARMLS) reported approximately 9,300 home sales for the month of June. Currently there is a 4 month supply of homes on the market (in other words not many).

In the lower price ranges, multiple offers are the norm.. Above $500,000, the market is still relatively soft and in most cases buyers are able to negotiate off the list price.

For those interested in the Scottsdale area, Scottsdale foreclosures, REO's, and bank owned properties continue to draw the most interest from perspective home buyers due to the fact that many homeowners simply can't compete with bank pricing.

Although competition is fierce for those shopping for Scottsdale foreclosures, there's some great deals to be had. Prior to shopping for your next home or investment, do yourself a favor and review our top 5 buyers tips for those purchasing foreclosures in Scottsdale.

1. Get pre-approved for financing before you start shopping for homes.

* This one may sound simple, but banks seem to change their guidelines ...
... on a daily basis due to the mortgage meltdown over the past few years. Just because you were approved for financing last year, or even a few months ago does not mean you will be approved for financing today. Upon being pre-approved, have your lender send you what's called a "LSR" (Loan Status Report). This form is required when submitting a purchase offer on a foreclosure.

2. If paying cash, have proof of funds available prior to writing an offer on a foreclosure.

* When paying cash, banks (sellers) will require that you submit proof of funds with your purchase offer. The proof of funds must be for at least the purchase price of the home, and are commonly in the form of bank statements, brokerage accounts etc. Many institutions make it very easy to login to your account and print the necessary statements.

3. Have your real estate agent set you up on a email home search.

* Most agents have the ability to set you up on a custom home search via email. Talk to your agent and give them the details of what you require in a home. The more specific the information, the better. You will be emailed with the full listing details of any properties that match your search criteria as they become available on the market. I cannot emphasize how important this is in today's heated foreclosure market. When a home becomes available you need to view the home as soon as possible and make a decision as to whether or not you would like to put together a purchase offer. If you wait 2 or 3 days you may find that the seller has already accepted an offer on the home.

4. Be prepared to pay over asking price.

* This may come as a shock to some, but be prepared to go over asking price on many of the foreclosures on the market, particularly at the lower price points.

5. Read all contract documents related to your foreclosure purchase.

* The AAR (Arizona Association of Realtors) purchase contract really does a good job protecting buyers and sellers in a real estate transaction. Unfortunately, banks (sellers) in foreclosure transactions require buyers to sign their own drafted addendums prior to contract acceptance. These addendums effectively alter the AAR contract (not in a good way). It is very important that you as a buyer read and understand everything in the purchase contract and associated addendums to help minimize risk, and to ensure a smooth transaction.

With today's low interest rates, tax credits and affordable pricing, buying a Scottsdale foreclosure presents a great opportunity for those looking to purchase a new home. Take the time to educate yourself, devise a solid plan and use a competent, experienced real estate agent who looks out for your best interest.

Happy house hunting!
About Author:
Barry Cox is a Scottsdale real estate agent who has lived and worked in the Phoenix metropolitan area for over 13 years. Barry enjoys working with a select number of clients who are interested in purchasing Scottsdale foreclosures. Barry specializes in Scottsdale, Carefree, Cave Creek, North Phoenix, Rio Verde and Paradise Valley real estate. Please visit our website to view all available foreclosures in Scottsdale from our easy to use home search. If preferred, you may contact us direct at 480.209.6277