Author Topic: Foreclosures in Phoenix/Scottsdale  (Read 2930 times)

sulaco

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Foreclosures in Phoenix/Scottsdale
« on: May 09, 2013, 08:34:31 PM »
My wife and I are moving back to Phoenix (Scottsdale, really), and we're interested in buying a foreclosure. I'd rather not work with a real estate agent if I can avoid it, but I also don't have any experience with foreclosures.

Some background - we're looking primarily in the north Scottsdale area. We already have a rental property in that area, so we're familiar with the area and the real estate market. We have cash for 20-30% loan to value in the price range we are looking for. We have a place to stay for the indefinite future, we're OK waiting for a long closing. We'll be moving down at the end of June (we don't mind the heat).

I'm not sure where to start. Most of the websites I've seen seem like big scams and want more information than I'm comfortable providing without knowing their efficacy. Any pointers?

Another Reader

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Re: Foreclosures in Phoenix/Scottsdale
« Reply #1 on: May 09, 2013, 08:54:58 PM »
You are about 3-4 years too late.  There are very few foreclosures available, not that there were ever that many in North Scottsdale.  Foreclosures are selling at fair market value or close to it at the courthouse steps these days.  No discount for distress or risk to the buyer.

If a bank takes back a property, they list it for sale on the MLS when they want to sell.  These often have multiple offers, as does pretty much everything in Phoenix now.  In case you have been out of touch with values, they are up over 30 percent in the last year or so.  If a property goes to a third party at the auction, it may be bought by a flipper or by an owner-occupant.  I understand getting something at auction that will make a profit in a flip is very difficult.  Amateurs are often losing money on flips.  Short sales are rare now as well, and are bid up to market value.

To buy anything, you will need full loan approval and proof of funds.  You may get beaten out by a better financed offer or all cash.

Prices are not back to the peak, but the buying frenzy is.  Anyone that tells you they can get you a below market bank deal is likely not telling you the truth.

Another Reader

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Re: Foreclosures in Phoenix/Scottsdale
« Reply #2 on: May 09, 2013, 09:07:53 PM »
Here's a blog article by a local agent summarizing the Phoenix market as of April 1.

http://allphoenixrealestate.com/phoenix-market-update-april-1/

Yep, as of April 1 there were 616 bank owned properties and 475 short sales on the market in ALL of Maricopa County.  That's 4 million people. and over 1 million tax parcels.

sulaco

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Re: Foreclosures in Phoenix/Scottsdale
« Reply #3 on: May 09, 2013, 09:11:39 PM »
Thanks for the quick reply. Great information.

tryan

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Re: Foreclosures in Phoenix/Scottsdale
« Reply #4 on: May 16, 2013, 11:13:20 AM »
I picked up a SF from auction.com last year.  Pretty much all bank owned there. 

Just don't get caught in the hype ... set your price limit and be prepared to walk away.  I bid 5-6 properties before landing one.  It closed below the reserve ... so don't pay attention to the "reserve price"

sdp

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Re: Foreclosures in Phoenix/Scottsdale
« Reply #5 on: May 17, 2013, 11:26:10 AM »
I live in flagstaff, so totally different market, but I grew up in phx and have several friends who are real estate agents down there.  things are crazy down there, if I had just bought a rental property down there in 2010..... oh well.  anyway I have a good friend that specializes in forclosures and short sales and understands the reasons why someone like you might not want to work with an agent and if you want his info, let me know.  My guess is that as an absentee buyer, you would be behind the 8 ball and miss out on the right proprty at the right price without an agent in today's market, three years ago? totally different story.  For very little work, my friend will be able to send you some new-to-the-market listings as they come to the market and he would probably be able to set up a discount commission schedule that works for both of you.  My friend doesn't need the money, he is already a mustachian entrepreneur , he does it for fun because he loves it, he is not like a lot of agents that are looking to close a deal so he can make money.  My advise is to find an agent that will help you find the right property, they are experts and have privileged information that the average person doesn't have access to, and in this hot rising market with such limited inventory, that can make all the difference.
Cheers,
Scott

RobinAZ

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Re: Foreclosures in Phoenix/Scottsdale
« Reply #6 on: May 27, 2013, 02:40:38 PM »
I am a real estate and bankruptcy lawyer here in Phx/Scottsdale, I agree with the above assessments.  We put off buying a house until after we got married, and just closed on our house ... that one year wait added about $50k to the purchase price, and the competition for a "bargain" was insane.  We gave up and were just happy we got something that has some potential for equity. 

Welcome back to the Valley of the Sun!!

Robin

SunshineGirl

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Re: Foreclosures in Phoenix/Scottsdale
« Reply #7 on: May 28, 2013, 05:25:10 PM »
The phrase "shadow inventory" comes to mind....

bkru21

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Re: Foreclosures in Phoenix/Scottsdale
« Reply #8 on: May 29, 2013, 09:33:16 AM »
Same phenomenon is happening in Orange County. It is crazy! Flippers putting down $300k in cash for dumps and turning around asking for $550+