Quantcast
Buying Arizona Real Estate - Beyond.ca - Car Forums
Results 1 to 5 of 5

Thread: Buying Arizona Real Estate

  1. #1
    Join Date
    May 2010
    Location
    Scottsdale, Arizona
    Posts
    0
    Rep Power
    0

    Default Buying Arizona Real Estate

    I am starting a thread about Canadians buying real estate in Phoenix Arizona. I would like to share some information about the market in Arizona and answer any questions that Beyond members may have. I have a lot of Canadians asking me the same questions so I think a thread specific to these questions will clarify everything and be a good resource of information.

    There are 3 types of properties here in Arizona:

    Traditional Sales - Sellers with equity that make 100% of the decisions on what price to accept, closing date, Earnest Money, etc.. This is the type of transaction that Canadians are use to. A typical closing date is 30 days with a 10-day inspection period and a minimum of 1% Earnest Money.

    Short Sales - Seller owes more on their mortgage than the home is currently worth. The home is listed at market value (less than the debt owing) and the contract price needs to be approved by the Sellerís lender. Short sales can take anywhere from 30-120 days for the lender to review the offer and make a decision. Itís a waiting game for the Buyer and Seller and patience is definitely necessary. The lender will generally accept a minimum of 88% of the appraised value of the home. Short sales currently account for 38% of the active listings on the MLS.

    Bank Owned Sales (REOís) - The Seller is actually a bank and this type of transaction is very similar to a traditional sale with regards to response times, inspection periods, etc.. The major difference is the lack of disclosure. Since the lender has never lived in the home they will not provide the Buyer will a Seller Property Disclosure Statement (SPDS) or Insurance Claims History (CLUE) which informs the Buyer if the Seller is aware of any problems with the house. These transactions can close as quickly as the Buyer, Seller, and Title company can get all closing documents signed (generally a minimum of 10 business days). Bank owned homes currently account for 12% of the active listings on the MLS.

    Financing:

    A Canadian Buyer can obtain financing from a US lender solely based on Canadian income and credit. There is 1 US commercial bank here in Arizona that lends to Canadians and 2 mortgage brokers who have specific programs designed for Canadians. These programs differ, but here is an example of 1 of the programs:

    -25% down payment for loans up to 1 Million
    -35% down payment for loans up to 2 Million
    -2nd Home only
    -3,5,7,10,and 30 year fixed rates available
    -Interest rates vary

    Escrow/Title:

    Here in Arizona we use Escrow & Title companies to facilitate the transaction. In Canada, most provinces use Lawyers. The Escrow company will prepare all the closing documents, issue Title Insurance, receive and hold funds, and coordinate the signing of documents. Here in Arizona itís customary that the Seller pays for the Buyerís Title Insurance. The Buyer doesnít need to be present in Arizona for the closing as the Escrow Officer will email all necessary documents to you in Canada to sign and you can courier them back overnight. They will also provide you with their bank account number so you can wire the purchase money directly to them.

    I hope this answers some of your questions.
    Last edited by ARIZONAREALTOR; 05-14-2010 at 12:13 AM.

  2. #2
    Join Date
    May 2010
    Location
    Scottsdale, Arizona
    Posts
    0
    Rep Power
    0

    Default

    Here is current information as of today on the Arizona real estate market in the greater Phoenix area and a comparison to 2 years ago:

    5/13/2010

    -41,082 active listings in the MLS
    -14,593 pending listings in the MLS
    -9,231 sales per month
    -97 average days on market
    -4.5 months of supply
    -$89.50 average price per square foot - Monthly Sales
    - +6.3% monthly average appreciation
    -96.22% average sales price percentage of list price
    -65.5% listing success rate
    -$172,239 average sales price
    -$129,000 median sales price
    -1,924 average home square footage

    5/13/2008

    -55,765 active listings in the MLS
    -7,333 pending listings in the MLS
    -4,919 sales per month
    -134 average days on market
    -11.3 months of supply
    -$138.49 average price per square foot - Monthly Sales
    - -23.5% monthly average appreciation
    -94.87% average sales price percentage of list price
    -38.5% listing success rate
    -$278,428 average sales price
    -$212,000 median sales price
    -2,011 average home square footage

    As you can see our inventory has dropped from 55,765 in May 2008 to 41,082 and our pending sales are almost double from 7,333 to 14,593. Sales are almost double what they were in 2008 up from 4,919 to 9,231. The other indictor to look at is the months supply which has dropped from 11.3 months to 4.5 months.

  3. #3
    Join Date
    Apr 2009
    Location
    calgary
    My Ride
    acura TYPE A
    Posts
    394
    Rep Power
    0

    Default

    why do illegal mexicans get better rates and full competitive mortgages? i am sure they are not putting down 25 percent either. iE. bank of america (vs canadians)
    westnet speedtest

  4. #4
    Join Date
    Nov 2007
    Location
    Calgary
    Posts
    8
    Rep Power
    0

    Default

    Because they make better burritos.

  5. #5
    Join Date
    Apr 2009
    Location
    calgary
    My Ride
    acura TYPE A
    Posts
    394
    Rep Power
    0

    Default

    are you a forum sponsor?
    westnet speedtest

Similar Threads

  1. investin in real estate, with out physically buying property

    By Blacura in forum Real Estate / Finance
    Replies: 7
    Latest Threads: 01-06-2011, 10:58 AM
  2. Real Estate Buying videos..all you need to know

    By eblend in forum Real Estate / Finance
    Replies: 0
    Latest Threads: 12-31-2010, 09:25 AM
  3. Arizona Real Estate

    By JordanLotoski in forum RE/MAX Realty Professionals
    Replies: 1
    Latest Threads: 11-17-2009, 12:22 AM
  4. arizona real estate and the us economy

    By finboy in forum Real Estate / Finance
    Replies: 16
    Latest Threads: 01-27-2008, 03:27 AM
  5. FS: Vacation home in Arizona

    By HRD2PLZ in forum Miscellaneous Buy/Sell/Trade
    Replies: 0
    Latest Threads: 05-27-2007, 07:25 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •