The Search Continues

I’ve been house hunting for several weeks in a soft housing market. There are a lot of homes for sale and they aren’t selling quickly, mainly because sellers are listing their homes for more than the market will currently bear. Phoenix real estate values have decreased over the past year while the previous three years saw record gains. Sellers are still holding on to the fantasy of making a huge profit at the expense of the buyer, but this mentality is costing them time and money. I’ve seen more than a few listings where sellers refuse to accept an offer below asking price on homes that have been on the market for six months.

I’ve made offers on three homes in the past three weeks. The first offer was verbally accepted but the seller did not return the contract. When my agent called to inquire what the delay was, we were told they had received a higher offer. I wasn’t willing to be involved in a bidding war so I declined. Two weeks later, that home is still an active listing, so I think I was told a little white lie.

My second offer was accepted and we moved on to the inspection phase. The house is 50 years old but it was completely remodeled so everything was shiny and new inside. The home inspector went over every inch of the place and discovered that all was not well beneath the shiny veneer. Apparently the remodel was not completed by a licensed contractor and there are major structural and electrical problems. Add to that a termite infestation which was improperly treated last fall and it was enough to turn my stomach. We got away from that property as quickly as possible.

I made an offer on a third home just yesterday and received a counter offer this morning. The seller was only willing to come down $1,000 in price, which to my mind isn’t much of a counter offer. The home has been on the market for 41 days and counting, so maybe they’ll get nervous enough to take my offer seriously in a few weeks.

I’m in no hurry.