BUYAZRE Team Discussions

November 2023 Newsletter

In the dynamic world of real estate, understanding buyer contingencies is crucial. There are many but here are the big 3 contingencies + 1 that are very common in real estate transactions: 

1. Inspection 

2. Appraisal

3. Loan 

These contingencies play a vital role in shaping the buying process, ensuring a smooth and informed transaction. 

+1 Today we want to make sure you are aware of the buyer contingency addendum specifically for Arizona. A buyer contingency addendum often arises when you need to sell your current property to fund the purchase of a new home, whether it's your primary residence, rental property, or a second home. 

The Arizona Perspective 

In the state of Arizona, being a contingent buyer involves two key options outlined in the buyer contingency addendum. The first option is when you're already under contract for your current home, moving steadily towards closing. The second, slightly less favorable option, is when your current home isn't under contract. In this case, we work together to paint a clear picture for the seller, estimating the timeline to secure a contract and the approximate dates for closing on both your current and prospective homes. 

Market Shifts 

With the current real estate landscape, we anticipate a rise in contingent buyers. This shift means sellers may need to be more open to accepting contingent offers—a change up from recent years. When representing buyers needing to sell before purchasing, effective communication between real estate agents along with managing critical dates are paramount to create a win-win situation for both parties. 

Additional Consideration 

When you're a contingent buyer not under contract for your current home, it's important to note that the seller of your new home retains the ability to market their property, entertain offers, and potentially consider other buyers. This adds a time-sensitive element as you must promptly remove the contingency to secure the deal within a few days, or risk being pushed out of the transaction. 

Looking Ahead 

As we approach 2024, we foresee a growing prevalence of buyers needing to sell a property in order to buy a property in the market, especially if inventory and interest rates remain at current trends. This newsletter serves as a forecast, preparing you for what might become more commonplace.  In conclusion, our goal is to make this information easily digestible for you. 

Feel free to reach out if you have any questions or if you're considering entering the real estate market with a buyer contingency. 

Community:

Thank you for your incredible support and teamwork! Together, we've made a meaningful impact by donating 270 pounds of food to St. Mary's Food Bank for Thanksgiving. Your generosity has helped make a difference in the lives of those in need. Let's continue working together to spread kindness and make our community even stronger.