How to buy a home in Arizona without having to buy your own
Real estate agents in Arizona say they’re starting to see a flood of buyers interested in buying their own home in the state.
But they’re not the only ones with a hard time finding buyers for their properties.
In the past year, some homeowners have been losing millions of dollars because of a string of high-profile mortgage defaults that were blamed on the housing market.
The average price of a home on the market in Arizona has been about $1.6 million, according to real estate agent Chris Hargrove of Hargrob.
But he says many of his clients are just trying to make ends meet and are not taking the extra steps needed to buy.
Hargroves company, The Real Estate Firm of Scottsdale, has been doing more than a dozen auctions in recent weeks and is expected to close in the next week or so.
He said a large percentage of his transactions are sold on behalf of family members, who have a financial stake in the home.
“There’s a real desire for homes, and they’re trying to do that, but they don’t have the time, the patience, the expertise or the finances to do it,” Hargob said.
The buyer’s average down payment in Arizona is about $150,000, according, Hargbrove.
In San Francisco, a $1 million down payment typically requires a $50,000 down payment and a $200,000 mortgage, according the National Association of Realtors.
Hougroves sales team is selling at auction at least a dozen properties a week, ranging from small town homes to luxury condominiums.
Hargrotys inventory includes some of the most expensive homes in the Valley.
He said it’s the demand for these properties that has led to a shortage of homes for sale in the region.
“I would say that we’ve had a shortage in the last couple of years,” Hougrove said.
“The average sales price is about 30 percent higher than last year.”
A big problem for buyers who want to purchase is the price tag.
Hougrotys website says the average price for a home is $1,835,000.
That includes a down payment of $350,000 and $1 for the mortgage.
Houghroves website says that if the buyer is looking for a house with a lower price tag, they can go with a seller who’s selling the house on behalf.
Houghrove also said the market is tough for first-time buyers because there’s a huge difference between a $300,000 home and a four-bedroom house.
He says some buyers will only buy a house they can afford to pay down.
“When you are going to a buyer’s market, they’re willing to take on a lot of risk.
If you are not prepared, there’s going to be a lot more money that goes missing,” Houghrotys said.”
They are looking to get a house in the neighborhood that they can live in, a home that is affordable to them, and a house that they are able to sell,” he said.
Harbob says if a buyer wants to buy on behalf, they have to have a downpayment of at least 30 percent of the home’s value.
Haren says that includes refinancing the home or purchasing it on the open market.
Haren said a buyer could also be interested in a smaller home that has a lower down payment.
“If you can get a home with a down payments of $400,000 to $600,000 then there is a buyer for that,” Haren said.