It is always wise to know what you are buying. From inspecting eggs in a grocery store, to looking over a new car for scratches, thorough investigation benefits the buyer so that he or she can be confident in the product he or she is buying. Nowhere is this more true than in real estate transactions. Due diligence in a real estate transaction is the act of thoroughly investigating all components of the transaction, including the property, seller and financing.
Real estate transactions can present a multitude of logistical concerns. An Arizona family who owns a home and is considering moving into a new home may face one common issue: the possibility of two residential mortgages.
Pursuing a real estate transaction can be a stressful situation for the parties involved. There are often many complex legal and logistical issues at hand during what may be an emotional time for a person buying or selling a home, or facing a foreclosure.
Despite the lower home sale numbers in most of the Phoenix area, one region of the housing market has actually seen an increase. Real estate transactions for multimillion-dollar mansions are occurring at nearly twice the rate of last year.
The old saying that it's wise to purchase real estate because they're not making any more of it is beginning to be taken seriously in Arizona as the overall economy is getting better. Because mortgage rates are declining and the financial circumstances of many is improving, bigger and costlier homes are selling in the state. The median cost for certain homes is on the rise in comparison with several months ago.
With its warm weather and beautiful landscapes, Arizona is a great place to live. This has drawn many to the state, including individuals from other countries. In fact, across America last year, more than $92 billion in real estate was snatched up by overseas purchasers. The primary driver of such sales is wealthy Chinese, whose buying increased 72% last year with the mean purchase in excess of $590,000. Arizonans may be interested to know that much of these foreign purchases are occurring in their state.
As many Arizona residents are likely aware, house flipping is the act of buying a house or property with the intention of eventually selling it for profit. For many, this can be a potentially lucrative investment. However, it can involve many complicated logistics. Not only does an investor have to be aware of certain market trends, there are also often many legal complexities involved. Successfully navigating such real estate transactions often requires legal expertise.
As was previously covered in this blog, Arizona once had one of the highest number of underwater homeowners in the country. During the worst of the Great Recession, somewhere around 50 percent of homeowners in Phoenix were underwater. The housing market in metro Phoenix was highly unstable, even when the market in many other cities began to improve. Now, thankfully, the Phoenix housing market is starting to look more and more attractive to buyers.
The decision to become a homeowner is usually an exciting one. It is often a big step in a person's life. However, it can also be a source of much stress. People are oftentimes uncertain as to how the process works and the intricacies involved in real estate transactions. With expert guidance, however, much of this stress can be alleviated as legal counsel can help prospective homebuyers identify red flags and ensure that real estate transactions go as smoothly as possible.
Investing in real estate can be a potentially lucrative affair. However, navigating the sometimes murky waters of real estate transactions can also be challenging. Avoiding potential real estate disputes and contract issues often requires an investor to make decisions informed by legal expertise. Ensuring that all steps along the way are backed by a solid legal foundation can help real estate investments go smoothly and can reduce the chances of any potential problems.