The Arizona Association of Realtors updates the language in our contracts/forms on a regular basis to assure that we are in tune with changes in the marketplace.
As we know, the real estate market is a buyer’s market and has been for some time.
One of the new forms allows buyers to make offers on multiple properties for the sellers consideration.
To consummate the sale, the seller must accept the offer but the contract is not in force until the buyer ratifies the seller’s acceptance.
This new form was likely devised because of the slow response time by banks in responding to offers.
Banks are notorious for ignoring contract response deadlines, seemingly to see if a better offer comes in or possibly because they cannot handle the workload.
With this new arrangement, the buyer is no longer held hostage waiting for an answer and missing out on another property that may also suit their needs. This will be an interesting new wrinkle in contract negotiations and may put some pressure on lax sellers who do not respond to offers on a timely basis.
Speaking of lax sellers, the government continues to amaze me.
Our office submitted an offer (albeit, it was a lowball offer) to the U.S. Department for Housing and Urban Development (HUD) on a government owned home.
We waited and waited and waited for a response.
Never got one and we are still waiting.
We found out later that if you do not get a response from HUD in 48 hours, your offer is rejected. Talk about an unmotivated seller.
In this day and age, you would think they could at least send out an e-mail advising us of their decision so we could advise our clients.
To some lending institutions’ credit, a number of them are getting far better in their handling of short sales and foreclosures.
Their response time has improved and some are reliably communicating with real estate agents.
On occasion we are seeing banks making concessions relative to the home’s condition.
Many local Realtors are also members of other multiple listing services in the state.
Members of Arizona Regional Multiple Listing Service (ARMLS), the Valley’s MLS service, are provided with access to the Cromford Report (www.cromfordreport. com).
The report provides insightful, day-to-day analysis of the real estate activity and trends in the Valley.
Trends in the Valley can be useful to help forecast and compare activity in our local market and may signal when the market will begin its upswing.
Ray Pugel is a designated broker for Coldwell Banker Bishop Realty. Contact him at (928) 474-2216.