The Arizona housing market had one of the biggest booms earlier in the 2000s. It was only a few years ago, in 2006, that the markets crashed all around the nation, causing home values to decline at an alarming rate and one in seven mortgages to go into arrears. Despite the crash, Arizona and several other states have begun an incredible recovery starting in 2012. Since that time, home values in the Phoenix metropolitan area have risen twenty percent, while Tucson home prices have risen fifteen percent.
Yet, despite all of this improvement, Arizona still had the seventh highest number of foreclosures in the nation over the last year according to the Phoenix Business Journal. The Phoenix Metropolitan area had the third-highest number of foreclosures over the last year across the entire country, and the Bureau of Labor Statistics reported an 8 percent unemployment rate – up from 3.8 percent in January of 2007. If the market is making a comeback, it is a slow one.
A still-recovering economy poses problems for those looking to sell their homes. Job losses, job transfers and pending foreclosures are all valid reasons for needing to sell a home, but the act of actually finding a buyer is very difficult. Not only is it hard to find someone who will pay what the home is worth, but it is doubly more difficult to find a buyer who will purchase the home in a very short amount of time. Because the value of homes dropped so much during the recession — as much as sixty percent — a value increase of 25 percent still leaves sellers in debt when they have to sell their home.
Growing repair and maintenance costs are also challenges that face sellers. In order to get a fair price, many sellers have to completely renovate the home in question. This involves ensuring that appliances like the air conditioner are working properly and that the house is clean and free of any damage. The home will also need fresh paint, new carpet and some kind of order to the landscaping to make the staging of the home presentable enough to attract potential buyers.
Many people turn to equity purchase companies in these situations because they often pay with cash and have a fair offer within 24 hours. A good equity purchase company always consults with an appraiser for the home and they often look more at the location and general floor plan of a home rather than focus on the repairs it needs. The companies provide an excellent community service by stepping in to take ownership of the home, repair it and then resell it. A good company does not even charge fees or ask for commission. With the market still crippled, these companies are going to become even more common in the following years.