Canadian Investors Are Taking Advantage of the Arizona Real Estate Market

While there is an abundance of property investment opportunities throughout the nation, let’s examine the Arizona real estate market more closely. This is a very interesting market because Arizona is one of the Top 3 leaders in this country for short sales, foreclosures, pre-foreclosures and bank owned homes. Canadian investors are taking full advantage of this downturn in the economy.

The main goal in investing in property is obviously to make a profit. As most already know, the best way to achieve this is to buy when the market is at the bottom and sells when the market has peaked. This is particularly applicable to the Arizona market as property is selling at severely low prices right now. There is huge opportunity to make a profit and one should not pass up on this lull in housing prices.

If you are trying to flip a house and turn a quick profit, your risk is clearly higher. Many investors try to buy properties at 20% below their current market value and turn them around for a profit. This is hard to accomplish and one will definitely need an experienced agent who can produce excellent research. When considering a home do not forget that you will probably have to put some money into fixing up and updating the property before you are able to put it back on the market. Luckily, if this is not your first home purchase your risk is reduced immensely. It is evident that when purchasing a secondary home you will be buying low and you have time to consider when to sell at a high in the market.

One of the most active foreign investors at the moment is the Canadian investor. With its close proximity and the harsh winters it is not surprising. Many Canadians are purchasing second homes or a retirement option instead of trying to gain speedy profit.

While it is harder to receive financing as a foreign investor, it is not impossible. There are many banks and lending institutions, which will provide financing to foreign investors and most of them require between twenty five and thirty percent down payment. As always, cash is King!

While there has been a significant downturn in the national housing market things do seem to be stabilizing, at least partly, in some areas. There are even areas in which the market has seen increases, albeit small. And obviously, there are still areas in which home prices are on the decline. All of this relates to Arizona and is relevant in most parts of the country as well. Many investors may be waiting for home prices to decrease even further. However, this may not be the best idea especially if you are considering financing your purchase. The interest rate has practically bottomed out and has nowhere to go but up from here. Therefore, even if home sales do decrease, the increase in the interest rate will make that decrease negligible.

While there is a large amount of inventory from foreclosures, many banks still have hundreds of homes that they have not put on the market. They are trying to protect the market from flooding it with even more properties. These bank owned homes are great investments and will slowly be released onto the market. Additionally, there are most likely many foreclosures to take place.

The economy is on the rise and has been helped by the government’s stimulus package. Additionally, many new rules and laws are being enforced which is helping to boost the economy. Despite all of this, the recovery is still moving at a very slow pace.

The economy is fluid and continually going through ebbs and flows. For example, in the mid 2000’s home prices increased anywhere from thirty to fifty percent in some areas. This market is helping to rectify the over inflated prices of these properties and creates a great opportunity for Canadian investors.

Words of Wisdom For Arizona Real Estate Investors

It is no surprise that we are in a depressed economy and the housing market is struggling. Arizona is the one of the hardest hit States nationally. The primary reason is because Arizona had one of the biggest booms in recent years and therefore requires more price adjustments than other States across America.

The good news is Arizona is strong in many other areas such as job growth, with large corporations continuing to move here. The bad news is real estate investors likely will not be able to purchase property 20-30% under market value.

Arizona is attracting flocks of investors due to this distressed market. Homes are selling 30-50% less than what they were going for 5 years ago. The normal 5-7% appreciation per year is a thing of the past.

Many banks control pricing on all these distressed properties. Before many of these homes are put on the market, comparable sales research has already been completed. Most homes are currently listed based on these comparable sales. Several BPO’s (Broker Price Opinion) have been done and many of these homes have already had an appraisal completed on the property. Banks feel they have a very small cushion with which to move on their asking price.

In the past 6 months, banks are holding their ground on asking prices. They are countering offers in many instances. This does not always hold true, but if there is any cushion or room to move on an asking price, it is usually less than 10%.

Many investors are coming into the Arizona real estate market and offering 30-50% under market value. They are having their real estate agent write 10-20 offers per month, hoping that they will get lucky and contract a deal with one of these “low ball” offers. Well, anything is possible but I would prefer the odds of winning the lottery.

What is difficult to understand is where the investors are getting their information. Writing an offer on a property, if done correctly, consumes a minimum of 3-6 hours of an agent’s time. It consumes approximately 1-2 hours of the investors time. Although the agent represents the best interests of the investor, investors are becoming overly greedy.

With the influx of homes appraised by the banks prior to a contract, very few will move on their asking price. Appraisals are done based on “current” market conditions. Time is money and being pro-active and productive in investment strategies can be accomplished by using better strategic planning.

A Guide For Canadians: 4 Key Elements When Investing In Arizona Real Estate

The real estate industry is governed by local, state, and Federal laws and therefore varies not only from state to state, but also country to country with each having its slight differences. The following is meant as a quick reference guide for Canadians (currently buying in Arizona more than in other group) considering the Arizona market.

The number of Canadians investing in Arizona real estate continues to trend upward. And, it is extremely important for these investors to understand the key elements of finding the right property. Even though the housing market in Arizona for Canadians is particularly favorable, the property buying process is important to understand as it may differ slightly from the process north of the border. It is now more important than ever, especially since the market is so saturated with property, to know how to buy to get into a profitable investment property as oppose to a money pit.

The 4 key elements of finding the right property in Arizona are:

1. Method of Acquiring the Property

2. Property Use

3. Location

4. Finding the Right Real Estate Company

These four key elements are not new concepts and have been practiced for as long as people have been buying property. The challenging part is being able to combine the knowledge of the market with understanding of which method should be used acquire the property. This article will provide a clearer picture into the how, what, and where of finding the right property in Arizona for Canadians taking a step forward and investing outside their home country.

The first key element is to determine which method will be used to acquire the property. Financing or cash? With the recent tightening of the US credit markets, the ability for Canadians to obtain financing to purchase US real estate has limited the number of banks offering the specific program needed. According to the National Association of Realtors (NAR) 2010 Profile of International Home Buying Activity Report, 34% of potential international purchasers were unable to complete a transaction due to financing problems. Typically, the more conventional options require large down payments and are limited to certain transaction types. There are some non-conventional options that allow for more lenient guidelines; however, the trade off is higher interest rates.

Although it is more challenging to obtain financing in Arizona for Canadians looking to purchase, there are options available. Another method used more commonly among Canadian buyers is cash. According to that same report by the National Association of Realtors (NAR), 55% of international purchasers paid cash. The majority of Canadian buyers use cash because it provides flexibility and since it is difficult to obtain financing. There are advantages and disadvantages to each method; however, it is important to pick the one that best fits the investment objective.

Once the decision has been made on how to acquire the property, the second element of finding the right property is to determine the best use for the property. There are really only two main options; second home or investment. According to the previously mentioned report by the NAR, 22% of all international buyers purchase their property as a vacation home for family and friends compared with 14% that use it as an investment. The numbers in Arizona specifically, trend a little higher toward the investment side… Closer to 20%. The use of the property will determine what type of property to acquire. Would you be looking to use their property as a vacation home or an investment home that is all about cash flow.

Its very important for Canadians to remember… How the property is going to be used sets the stage for what a Canadian’s strategy is when it comes to buying because the few programs available for Canadian borrowers may stipulate that the purchase is a second home and not an investment. Largely, Canadians who are buying with cash are drawing money from either their Canadian home equity or Canadian line of credit.

Once the use of the property is decided, the third element is determining the best location. The reason that the use of the property is so important when looking at location is that some areas of Arizona cater more towards vacation homes and recreation whereas other areas are more advantageous for investment properties and may not be where a family would want to spend its days. The popular vacation destinations are in resort-like areas, typically close to one of the many Arizona golf courses. These obviously tend to sell for more, since the areas are more desirable. A few examples of these locations are North Scottsdale or Fountain Hills. If one is looking for investment properties, then prime locations are lower priced homes with a high rent demand. These are typically located closer to the city. Examples are Tempe (near Arizona State University) or North Phoenix. A good real estate broker or agent can provide you with zip code maps which demonstrate rents or sales for a particular area based on zip code alone. A zip code is the same a postal code north of the border. And, Canadians looking to purchase should really develop a good working relationship with an agent on the ground in Arizona prior to buying or even visiting so that time and money is not wasted for either party.

The final element is finding the right real estate company. You will want one with experience working with Canadian buyers. Again, the market in Arizona is different. Look at what could happen if the right company is not chosen. Mis-representation, lack of market knowledge leading to buying a property in the wrong location, paying too much for a property, not identifying what property type that best meets the buyers needs from a mortgage or tax basis… the list goes on and on. But the biggest danger for Canadians is the belief that the real estate market in Arizona is similar to what they are accustomed to north of the border. It isn’t.

So, how is someone unfamiliar with the Arizona market supposed to find the right real estate company? There are several ways to locate real estate companies operating in Arizona. One good way is to speak to your local real estate agent in Canada. They may work with a larger agency that has branch offices throughout North America or have other buyers who have purchased property in Arizona. This is a great way to get feedback on the buyer’s personal experiences with these companies. Also, make sure that any company you work with has a good rating with the Better Business Bureau and Arizona Association of Realtors (AAR). Do the homework. It is much easier to do a little work upfront rather than deal with a potential issue later.

In closing, finding the right property in Arizona for Canadians looking to take advantage of this incredible real estate market may be right for you. Obviously, when it comes to real estate transactions there is no guarantee of a completely smooth event even after following the guidelines set forth in the previous paragraphs. However, following the advice of this article may allow Canadian buyers to minimize the potential issues that could arise and be prepared to deal with them so that they do not disrupt the end result… finding the right property in Arizona

An Overall Warm Climate – Arizona Real Estate

Unusual rock formations, panoramic views, and the unbelievable painted deserts, as well as the majestic sights of the Grand Canyon make for spectacular scenery in the Great State of Arizona. Rich in commerce and in environment, Arizona real estate is an ideal investment for homebuyers, businesses, and investors alike.

Boasting more than 300 days of sunshine annually, The Grand Canyon State has perfect atmosphere to enjoy. Although temperature fluctuations vary across the region, the majority of Arizona, is primarily a Biseasonal atmosphere. Although areas to the extreme north do experience quite a bit of cold weather in the winter months, mainly the state has an overall warm climate. It is this pleasant climate that encourages the northern ‘snowbirds’ to come here to purchase desirable Arizona real estate.

While the median household income and the per capita income are nearly inline with the nation, the median value of homes is slightly higher, largely due to certain overpopulated and overdeveloped areas. The areas less populated and not maturely developed produce the best bargains in Arizona real estate.

Scenic views and pleasant climate are just two good rerasons to invest in arizona real estate. The progressive economy and adjacency to more advanced areas, also make Arizona a smart move. As a result of NAFTA, the economies have realized a boost, both privately and from government sources in developing the regional economies. The short distance to major metropolitan areas, like California and Nevada, has also provoked attention to the Arizona real estate market.

Recent growth in the Arizona real estate market has inflated prices in the prime areas, yet the less developed areas are becoming great bargains. For instance, the most desirable acreage will yield up to $80,000 per acre while rural Arizona real estate is selling in some cases less than $1000 per acre.

Even in our slow economy, it may seem unlikely that many people would be looking to build or buy a home in the near future. However, the FHA recently announced that it has made available loan programs for Arizona real estate buyers. The offering allows buyers to borrow up to $271,050 with 3.5% down payment and a very low FICO score requirement of 620. An added advantage is the Federal IRS tax credit for first time home owners, $7500 this year and expected to rise to $15000 next year.

A multitude of reasons to look into Arizona real estate exist; including the gorgeous scenery, escaping the overcrowded cities, and enjoying the great outdoor climate of the vast open land in Arizona.

Phoenix, Arizona Real Estate

Phoenix is a nice residential city in the state of Arizona in United States. The capital city is the fifth largest in terms of US population, which is a pointer to the flourishing Phoenix real estate business in ‘The Valley of the Sun’. The Phoenix Metropolitan Statistical Area or MSA is officially dubbed as Phoenix-Mesa-Scottsdale because these three are the major Arizonan counties lying within the area. The city of Phoenix has been home to several well-known dignitaries and politicians. Being a cultural, industrial, economic, financial and transportation hub it is a preferred choice of residence in Arizona (US). Phoenix, Arizona real estate comprises of a network or recognized real estate agents.

Metropolitan Phoenix has earned its name as a place to find the best of affordably-priced new homes. The city has actually become a target of affluent home buyers because it is home to the coolest and most expensive homes. The Phoenix area housing options comprises of resale homes and condos featuring urban setup. Homes with backyard swimming pool are popular choice because of hot summers in Arizona. The housing options also include master-planned and gated communities, usually built around golf courses and active-adult communities. These communities feature homeowners associations and hence you are assured of a secured living. They have common swimming pools and recreational facilities.

If you are looking for a new home or planning to sell off your home you can take the help of Phoenix, Arizona real estate agents. You can find housing market information; right home value and Arizona mortgage rates. Phoenix is a place of tourism interest in Arizona and its warm climate in winter months makes it an ideal golfing destination. The real estate agents of Phoenix have listing of all the golf properties. In fact, Phoenix/ Scottsdale metropolitan area is a vibrant Fall and Winter paradise for many. This also spurs the demand of rented apartments.

Everyone is on the lookout for the best bargain for home sale and purchase. Phoenix real estate agents help in negotiating the right bargain for the home buyer. The licensed agents have databases which helps a client in house hunting. You can get information about luxury homes, condos and golf properties. You can also locate custom new homes.

Phoenix, Arizona real estate homes for sale are listed and located by the licensed brokers of the city. Their web portals have updated information, property purchase offers and all phoenix real estate listings of old and new property. You can get accurate information about prices of the available home and rental properties. It will take you on a virtual tour of Phoenix, Arizona property. These sites have contact information about Phoenix real estate guy; so you can clarify all your questions over phone or through personal appointment. The agents also provide Phoenix relocation information for people relocating to the city.

The lifestyle and need of the clients differ; it is in the responsibility of the Phoenix, Arizona estate agents to tailor the customer’s requirements and help them find home of their choice.

Pennsylvania born Christine Scott is a Scottsdale AZ Real Estate Specialist whose comprehensive site can be treated as the authentic source of real estate information along with housing services for prospective home buyers and sellers. Her site is a snapshot of the Scottsdale real estate market and provides listing of homes for sale, new homes, apartments for rent and foreclosures in the area. She represents her clients in land sale and purchase in cities of Scottsdale, Glendale and Phoenix with her professional expertise. Her site is the perfect home finder in Scottsdale area.

Arizona Real Estate Law – Using a Partition Action to Resolve an Ownership Dispute

It is a frequent occurrence that people who jointly own Arizona real estate find themselves unable to agree about whether to sell and/or how to manage the property. When that happens the Arizona Revised Statutes provide a mechanism whereby one of the owners of the property may compel the sale of the property and distribution of the resulting proceeds.

The partition statute, set forth at A.R.S. Section 12-1211 et seq., provides for the appointment of one or more “commissioners” who are charged with selling the property. If the property can be physically partitioned by dividing it into equitable portions, an owner who wishes to retain ownership of his or her share may be able to do so. In most cases involving single family homes or other properties that are generally not divisible, however, the property will have to be sold and the proceeds distributed.

The commissioner(s) appointed to manage this process will usually be Arizona real estate brokers or other similar professionals who are uniquely qualified to prepare the property for partition and/or sale. Although the court can make whatever order is deemed fair and necessary, the commissioner(s) are usually compensated by receiving a sales commission.

In most cases partition actions do not involve defenses allowing on or more owners to block the sale (unless they want to buy out the other owner(s)). That being the case, partition actions that do not involve other related issues can be handled fairly quickly without excessive expense. Nonetheless, because an Arizona partition action must be filed in the Arizona Superior Court and must strictly comply with the statutory guidelines, a party seeking to force partition of a property or facing a partition complaint filed against him or her should seek professional advice.

An experienced Arizona real estate lawyer should be able to help guide you through a partition action. If you’d like to force a partition a lawyer can help make sure your partition complaint meets the statutory requirement and that the order compelling the partition provides the relief you seek. If a partition action has been filed against you an experienced Arizona real estate attorney can help make sure you receive an equitable hearing and distribution of any partition proceeds.

Kevin R. Harper is an Arizona real estate and business litigation attorney, representing individuals and small businesses throughout the state of Arizona from his Central Phoenix and Chandler, Arizona offices. His primary office is located at 1 N. Central Ave., Suite 1130, in downtown Phoenix.

For more information about Arizona real estate law, feel free to contact Harper Law PLC at 602-256-6400, or visit the firm online at http://www.HarperLawArizona.com

North Scottsdale, Arizona Real Estate

People from all over the world come to Scottsdale, Arizona to be a part of all that Arizona has to offer. Arizona has beautiful weather, tremendous views, and a wonderful atmosphere. After visiting many east coast cities such as New York, Chicago, Atlanta, Miami, and several other major United States cities, there is one factor that sets the Phoenix / Scottsdale metropolitan areas apart from the others.

Arizona is growing at a tremendous rate. The factor that sets us apart from others is that we grow out, not up. Arizona has so much land available that we seem to grow out like a spider web versus building high rises. This gives people more breathing room from an opinionated standpoint. It may be nice not to have neighbors below or above you, it might be nice to pull into your own garage and have your own backyard with your own pool. The parking in most major cities is a nightmare, but not in Arizona. Arizona has much to offer that many places do not.

Horse back riding, no problem. Want to take a balloon ride, we have it. Three major water parks, ample movie theaters, hiking, hunting, jet skiing, boating, indoor shooting ranges, shopping galore, more restaurants than one could imagine, and some of the best views in the world. Scottsdale has much to offer, and that is why so many people come here to live.

Las Vegas, Disney Land, Sea World, Rocky Pointe, Grande Canyon, Skiing Resorts, Palm Springs, and Flagstaff are all only a few hour drives away just to mention a few. These major attractions are not in our backyard, but some believe that is what makes Scottsdale unique. There is really no defining factor that brands Scottsdale which makes it a great place to live because the people define it, not a structure. It is what you make of it and Arizona is happy to have you.

Arizona home prices have always been affordable compared to most places in the United States. Builders are building homes at an incredible rate. You could purchase a nice three bedroom, two bath home for under two hundred thousand dollars in many areas of Arizona. Like every place, some locations are pricier than others. No matter what you are looking for, Coldwell Banker will help you find it. We help people buy two hundred thousand dollar homes, and help people purchase eight million dollar homes.

Your first step when purchasing a home is to get in contact with an aggressive, educated, and experienced Realtor. Please visit the link below to get in contact with a Realtor you can trust, a Realtor that has lived in Scottsdale for twenty seven years, and a Realtor that will represent your best interest. Coldwell Banker looks forward to working with you on all of your Real Estate needs.

Scottsdale, Arizona Real Estate Market Trends

Many buyers and sellers in Arizona know through the news, word of mouth, and Realtors what is happening in the Real estate market. There is always a good time to sell, and there is always a good time to buy. Very rarely is it in between. Right now is an excellent time to buy because the prices are leveling out, sellers are willing to negotiate, and the interest rates are relatively stable.

If you are thinking about putting your home on the market in Arizona, wait. Now is not the time. If you have been thinking about buying a home, now may be the best time. All market fluctuate including the Real Estate market. With the current market conditions in Arizona you might be able to get a property extremely under list price. Everything is negotiable in Real Estate. If you see a property you like listed for six hundred thousand dollars, have your Realtor look up the tax records and find out how much the seller owes on their mortgage. This is a great way to know if you can offer considerably less than the list price.

If the list price is six hundred thousand dollars, and you see that they owe four hundred thousand dollars on their mortgage, a good offer might be five hundred thousand. With the right Realtor, you may be able to knock off one hundred thousand dollars off the list price depending on what the seller owes on the property. Sometimes people put down a considerable amount of money on their home when they buy it, when they turn around to sell it they may be walking away with money but not as much as they put down on the home. In essence the seller may be willing to take a loss which a buyers gain. The difference between a great Realtor and a bad one could literally cost you tens of thousands of dollars. Please do not make that mistake and visit the links below this article to get in touch with a Realtor that knows the ropes.

When the market favors the buyer the seller will usually negotiate depending on how desperate they are to sell. There are millions of reasons why people move but some reasons are more serious than others. The buyer should capitalize on the desperate seller.

When there is an abundance of homes on the market it does not necessarily mean that it is a bad time to be a property owner. Everyone needs a place to live. If people are not actively buying, they are renting. If you are having trouble selling your home now may be a very good time to rent out your home as long as it is not overpriced. Many home owners want to rent out their home for what their mortgage payment is at least which in many cases is unreasonable. Rental rates are based on what has recently rented in the area and what is currently available for rent in the area, not what your mortgage payment is.

The interest rates have remained steady for a while. They fluctuate daily so it is not a good idea to mention what the rate is now because by the time you read this it will be different. If you are curious to find out what interests rate you would get if you were to purchase a home please visit the links below to get in contact with a Realtor that can help you. If you are a seller, it may be a good idea to wait to sell your home. Try renting your home out if you must leave immediately. Another good option is putting your home up for sale or lease with a lease option purchase. This way, you can attack both markets, the lease market and the buying market. Right now may be an excellent time to buy because the prices are leveling out, sellers are willing to negotiate, and the interest rates are relatively stable. Visit the link below to get in touch with a highly qualified Realtor in Scottsdale, Arizona.

Nick McConnell

Executive Sales Associate for Coldwell Banker Residential Brokerage in Scottsdale, Arizona. Lived in Arizona all his life, Graduated from Northern Arizona State University and has been a Realtor ever since.

Scottsdale, Arizona Real Estate Topics

There are several questions to consider when thinking about buying or selling a home in Scottsdale, Arizona. How much can you afford? What will your payments be? How do you know you are getting a good deal? How do you contact a good Realtor? How do you get a loan? How do you get insurance? How do you know the house you are buying is in good shape? All of these questions are normal, and will be answered in the article.

When discussing how much house you can afford, your fist step is to get pre-qualified for a loan. This step is the very fist step when purchasing a home. If you need a good lender to help you get pre-qualified for a loan, you may visit the websites below this article to get in contact with a good Realtor in Scottsdale, Arizona that will be able to refer you to some great lenders.

When you are getting pre-qualified for a loan, the lender wants to know how much money you and your significant other make (if applicable) and how much debt you have. If you make four thousand dollars a month and have one thousand dollars a month in bills or debt, this would be a good ratio. Basically, they want proof that you will be able to make your payments by looking at bank statements and your credit history. If you can prove that you can afford the payment you are looking for and have good credit, you should be in good shape.

If you tell a lender that you can afford two thousand dollars a month to apply towards a mortgage payment, he or she will be able to tell you how much home you can afford. The current interest rate at the time you decide to purchase a home will depend on your payment. Depending on how much you can afford to apply towards a monthly mortgage payment will determine your price range on a home. If you are putting money down, they will factor all of this issues into your loan to give you the terms of your loan. To find out how much house you can buy, feel free to visit the sites linked to this article to contact your Realtor. Your Realtor will make sure all of your questions are answered.

Once you know how much you can afford, you may then start looking for homes in your price range in the area you want to look in. To start looking at homes, you can contact a great Realtor in Scottsdale, Arizona by clicking on the websites below this article. You can tell your Realtor what you are looking for and he will find it for you. Things to consider would be square footage, area, pool, number of bedrooms, number of bathrooms, school district, commute to work, and year built. Tell your Realtor exactly what you are looking for and your Realtor will email you the results. Once you find a few homes that you would like to view you simply make an appointment with your Realtor to view the homes in person.

At this point, you have not spent one dollar yet. To complete the above steps is absolutely free. Once you have found the home you want to purchase, you simply write an offer to purchase the home with your Realtor. Once you have written an offer and there is an accepted contract between the buyer and the seller, the buyer has ten days to complete inspections. Inspection are not mandatory but recommended. You can spent about three hundred dollars for a professional to inspect your home. It is money well spent because they inspect everything. The roof, electrical, plumbing, stucco, and landscaping. If you do not do an inspection, you may move into the home and discover a major roof leak which will cost thousands to repair. Get the inspection, but again, not mandatory.

At that point, your Realtor will guide you through the contract until the keys to the home are in your hand. Most of your questions will have already been answered by this time. You will know what your payments will be, you know what type of loan you are getting into, you will know if you are getting a good deal by looking at what has recently sold in the area with your Realtor. Your Realtor will also show you what is currently available on the market in your area with similar attributes. You will also know if there is any major problem with the home. If there is a problem, you have the option to back out of the deal within the first ten days of the purchase contract. That is why it is imperative that you complete your inspections within the first ten days.

It is of extreme importance to you use a Realtor with aggressiveness, ample experience, education, and a fine knowledge of the area you are buying or selling in. Would you rather have a Realtor that is a high school drop out that has lived in Arizona for a few months, or a Realtor with a College Degree that has lived in Arizona all their life that has been doing Real Estate for a very long time with awards and letters of appreciation? Visit the website below to get in touch with a Real Estate Professional that will give you the quality server you deserve. This may be the largest investment of your life, put it in the right hands.

Scottsdale, Arizona Real Estate Investing

There are several factors to consider when thinking about investing in Arizona Real Estate. Is this a short term or a long term investment? Is this going to be a rental property or a personal residence? Is this going to be a vacation home? Before jumping into an investment property, it may be a good idea to ask your self what type of investment is going to fit your needs.

The days of flipping houses have seem to come to a screeching halt in Arizona. A little over a year ago this was extremely common because there were too many buyers, and not enough sellers. The inventory was very slim. Now, the inventory has seemed to increase, not enough buyers and too many sellers. Obviously, when this happens prices drop.

There is no way to predict future market conditions, but now may be a good time to start purchasing property in Arizona. The sellers are giving extraordinary incentives and the interest rates are relatively low. To make an informed decision, some might think to take a look at what is happening around them.

The price of homes have been dropping, that is not a secret. When the prices of homes start dropping, this may be an indication of a market fluctuation. When the market fluctuates it is a good time to be in the right place at the right time. Many lenders have gone out of business because there is such a high foreclosure rate. It is becoming harder and harder for people with marginal credit ratings to obtain a loan. This may be an indication that the rental market is about to get stronger.

When lenders start going out of business, and the remaining lenders tighten up their criteria, not as many people can qualify to purchase a home. People have to live somewhere, so their only other option is to rent.

When investing in Arizona Real Estate, it is important to analyze the rental market of the area you may be thinking about purchasing. It is also very important to know what your payments are going to be and how much you need to put down in order to have even or positive cash flow. If you are going to purchase a home to rent out, make sure that your payments are close to what the rental rates are in the area. To find out what the rental rates are you can ask a qualified Realtor to tell you what is currently on the market for rent in the area, and what has recently rented out. Basically, you are doing a comparative market analysis on the rental market in the area you are thinking about buying. Most qualified Real Estate professionals can help you with this.

It is extremely important to find a Realtor to represent your best interests when investing in Arizona. The difference between a good Realtor and a bad Realtor could cost you thousands of dollars. Make sure your Real Estate professional is experienced, educated, and knowledgeable of the area you are thinking about buying in. Above all, make sure your agent is aggressive.

In order to get the best price possible with the current market conditions, it is imperative to start extremely low regarding an offer to purchase. Rarely is the sticker price the purchase price. A good Realtor that is representing an investor may see a home for three hundred thousand dollars, offer two hundred and fifty thousand, and have the seller pay for all of the investors closing costs. Will the seller except this contract? There is no way to know for sure. All the seller wants to know is how much money they are walking away with in most cases. If the seller will have to pay to close escrow the contract will probably not fly. It is always a great idea to find out how much the seller owes before writing an offer on any home by having your Realtor look at the tax records. This way, you know how much flexibility you have. A desperate seller with an enormous amount of equity may have some opportunity.

Make sure when you are investing in Real Estate in Arizona, you have proper representation, you do your homework with your agent, and know that there is risk involved. Like any investment, there is risk involved. There is no way to determine future market conditions. Real Estate markets are cyclical. What goes up may very well come down. It is better to have an honest Realtor that tells you the truth versus a Realtor fluffing the truth that may cost you a lot of money. If you need a good, honest, hard working aggressive Realtor to help you with any and all of your Arizona Real Estate needs, please click on the link below to visit an extremely helpful website to get you in contact with a professional Realtor in Arizona.

Nick McConnell

Executive Sales Associate for Coldwell Banker Residential Brokerage in Scottsdale, Arizona. Lived in Arizona all his life, Graduated from Northern Arizona State University and has been a Realtor ever since.