Whether you are a first time home buyer, investor or someone who is up-sizing or down-sizing the real estate and home buying landscape in Arizona has become more complicated. That includes cities like Mesa, Gilbert & Chandler or any of the other cities in the Phoenix area.
One big change is that buyers need to prepare to provide evidence that they have the ability or have taken preliminary steps that show that they likely can complete the transaction financially.
This requires a buyer to have proof of funds, like a bank statement or letter from your bank verifying that you have sufficient cash resources to purchase the home. If you are financing your purchase you will need to obtain a Pre-Qualification form from a lender. If you don’t have a lender, GET A COPY OF MY REFERRAL LIST, it is free as it has multiple home lenders and other real estate related businesses listed in it.
There are several different types of real estate sale that you should be aware of:
-Equity Seller – This is what we refer to as a traditional sale, where the homeowner owes less on the home than its current market value.
-Short Sale – The term short sale refers to the fact that the homeowner owes more on the home than the current fair market value and when the real estate transaction closes it will be “short” of paying off all lien holders.
-REO (Bank owned foreclosures) - The term REO refers to “Real Estate Owned” or real estate owned by a bank/lender and generally is acquired by the bank through foreclosure or deed in lieu of foreclosure.
-Trustee Sale – This is any transaction that involves an Administrator or Trustee in a transaction. This would include probate where court approval is required or a divorce where the parties have an Administrator who is likely an attorney responsible for the disposition of the real estate.