Now, one of the most frequently asked questions from buyers in the current Phoenix Real Estate market is: “how do I get the best deal on my new home, when the bank won’t budge on price.”
My answer is: “there is always a way around the bank’s initial price.” Especially if it is unreasonable.
Many buyers are obtaining a loan for their new home purchase. The best way I know to make sure you are getting a great deal on your new home is to have an appraisal. Most appraisers are currently VERY CONSERVATIVE meaning, they are appraising at the lower end of the market vs. the higher, anticipating a decline in the market. Even if this decline doesn’t happen, they haven’t “over appraised” the home. That seems to be most appraisers fear, in a market that has already declined.
If you are buying your new home & obtaining a loan, the appraisal is automatic. If you are paying cash, I suggest paying for your own appraisal.
Then if the appraisal is lower than the price you agreed to pay, your SRE agent sends the appraisal to the seller/ bank and the bank should lower the price. The bank can’t expect any buyer to pay more than the appraised value.
TO RECAP:
- The buyer agrees to pay the bank’s initial price
- The buyer obtains an appraisal
- If the appasial is lower than the purchase price- the appraisal is sent to the bank/ seller to reduce the price of the home
If the banks were realistic initially, all the extra step wouldn’t be necessary, but they aren’t! This is the best way to get a deal on real estate in the Phoenix Market.
