THAT REAL ESTATE SHOW

Phoenix real estate goes old school

Nov 16, 2013, 11:00 PM | Updated: 11:00 pm

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.

Listen for more Phoenix real estate news with Realtors Diane Brennan and Rod Lakin on That Real Estate Show Saturdays at 3 p.m. on News/Talk 92.3 KTAR.

That Real Estate Show

...

Diane Brennan, That Real Estate Show

Free money still out there to buy a home in the Phoenix area

If you're in the market to buy a home and need a little help with the down payment or closing costs, we have the answer to your prayers.

8 years ago

(AP Photo/Jeff Chiu)...

Diane Brennan, That Real Estate Show

Phoenix housing market, already good for sellers, getting better for buyers

Phoenix's housing market, which has favored sellers as of late, is beginning to shift centrally to benefit buyers.

8 years ago

(AP Photo/Wilfredo Lee)...

Diane Brennan, That Real Estate Show

Five things to stop doing to your Realtor

Your Realtor is working for you to make your life and home selling or buying process easier, so show them a little love. Please?

8 years ago

...

Diane Brennan, That Real Estate Show

Good news for self-employed Arizonans looking to buy a home

And they thought they were forgotten: There's help coming very soon for the self-employed who want to buy a home in Arizona.

8 years ago

Luxury Paradise, Valley, Ariz., home is on the market. (Photo: prnewswire.com)...

Sloane Kingston

Luxury Paradise Valley, Ariz. estate on the auction block

Even if you are not currently in the market for a mansion, one can’t help but absorb the specs for the luxury home on the auction block in Paradise Valley, Arizona, this weekend.

9 years ago

...

Sloane Kingston

No change in Fed interest rate good news for Phoenix homebuyers

The Federal Reserve’s recent decision to not raise interest rates is welcome news to those who may be sitting on the fence about buying a home.

9 years ago

Sponsored Articles

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

...

Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

...

Canvas Annuity

Interest rates may have peaked. Should you buy a CD, high-yield savings account, or a fixed annuity?

Interest rates are the highest they’ve been in decades, and it looks like the Fed has paused hikes. This may be the best time to lock in rates for long-term, low-risk financial products like fixed annuities.

Phoenix real estate goes old school