As the Phoenix market continues its transition from a “balanced” state towards one that favors prospective homebuyers, some forgotten terms have returned to the real estate lexicon.
“Concession” and “contingent” are the most prominent reentries.
“Contingent” is an offer placed on a home by a buyer that is conditional upon the sale of their own home, while “concession” refers to a request (or requests) granted by a seller to a buyer in order to facilitate a real estate transaction.
Both have been rare inclusions in real estate contracts in recent years, according to Phoenix real estate expert Tina Tamboer.
“We’re starting to hear stories about contigent offers, which is something we haven’t really (seen much of) in 10 years,” Tamboer told That Real Estate Show. “So, when you think about it, there are going to be a lot of these old school tactics that might be coming into play in the next few months.”
Old school also applies to home seller “concessions,” which haven’t been necessary in recent years, due to Phoenix’s low home inventory situation.
“The seller’s advantage has pretty much dwindled away,” said Tamboer. “Our entire market right now is in balance, so basically what that means for sellers is that (they) may want to consider those seller concessions again.”
Some common seller concessions include monetary contributions to help cover closing costs, appraisal/inspection fees and/or home warranties. More unusual examples would be upgrade allowances or purchasing furniture or appliances for the new home. All of these examples, however, would depend on the individual seller’s motivation and circumstances, as well as the condition of their home. Still, there’s evidence that some sellers in Phoenix are finding creative ways to set their home apart and get the deal done.
“Sellers are getting aggressive,” said Tamboer, who recounted a recent story of a buyer asking for and receiving the installation of a new garage from a seller.
These types of stories may increase, as Phoenix’s real estate market becomes one that favors buyers. According to Tamboer, the cities of Tempe and Queen Creek already fit that classification, and Anthem, Peoria and Gilbert could become buyer’s markets very soon.
In other words, if you’re getting ready to move, you may also want to get ready to negotiate.
- Stretches and exercises for carpal tunnel syndrome
- The best Major League ballparks have their own personality
- Comparing the best regular seasons: The '96 Bulls and '16 Warriors
- 3 Arizona road trips and the vehicles to get you there
- Colon cancer is preventable. Check these signs and symptoms to stay healthy.
- 6 of the biggest skin cancer myths
- Affordable small home makeover ideas
- Locals helping locals: 6 success stories you need to know about
- Sunscreen facts that could save your life
- 6 energy saving hacks for your home
- 5 tips for choosing a company to end your timeshare
- Overlooked water tips to save you money
- 5 of the most adored gentlemen in professional sports today
- The real danger of sitting at your desk
- Most surprising NBA playoff performances of the last 40 years
- 11 classic baseball movies you must see again
- Finally getting rid of fat: 3 methods that actually work
- 4 reasons cancer survivors should focus on food
- 5 spring cleaning spots everyone forgets
- 5 reasons to look forward to watching the D-backs this season
- Common virus attributed to spike in head and neck cancers
- 5 signs it’s time to end your timeshare ownership
- 3 most overlooked ways to keep your home healthy
- 6 ways the air in your home could be making you sick
- CrossFit dangers: 5 common injuries and how to deal with them
- Today's radiation treatments offer better success, fewer side effects
- Tips to make watching TV on the patio even better
- What really happens when you donate to a community college?
- Sun and skin cancer: Separating fact from fiction
- 5 critical lifestyle changes for a healthy colon