What is a real estate lottery and how does it work? It is an interesting way to buy a home but it works. For so many moving, and especially to the Arizona area, this may be the only way they can get themselves into a home or new build. Potential homebuyers put their name into a lottery. Yes, you read that right. They then wait to be chosen to buy a home.
Sometimes this means your name can be included with several other home buyers and it is drawn at random. If you are selected, you still need to be qualified to purchase a property and have your finances and pre-qualification in order. Some lotteries prequalify you before you can be entered into the lottery. This has been more popular with the increasing demand for new homes but it doesn’t mean existing homes are still being purchased. If you don’t want to deal with a lottery then that may be the route for you. It isn’t mandatory to enter into the lottery system to buy a home but it is very prevalent when it comes to purchasing a new build.
A Lottery for the Market?
The Arizona housing market is extremely hot right now and that is why many buyers are considering the lottery. The market is hot, but not necessarily by investors, it is by buyers who have families who are moving from out of state into Arizona. An additional reason is how low mortgage interest rates are right now. Combining these two things together creates a difficult and competitive buyers market. Along with the low mortgage rates, there is also low property taxes, great weather, and many job opportunities that make this a hot spot to move to.
Additionally, there is an extremely low supply of homes on the market and home builders can’t keep up with the demand. Keep in mind that this isn’t just happening in Arizona and many of the people you see moving happen to be coming from California with cash in hand. The lottery systems were put into place to try and slow and reduce the number of interested bidders because of the inability to keep up with the demand. There are still some builders that are not in a lottery system yet, but act fast if you find them because they are sure to adopt this system soon.
If you’re concerned that you might not get a home due to the demand for homes in Arizona, contact me below. As an expert in the area and knowing how to find the best deals and negotiate, I can help you get the right home, at the right price, at the right time.
Are you looking for more help navigating the real estate market during these confusing times? Check out more informative articles here on our blog. For more information on Peoria real estate, Paradise Valley homes for sale, Phoenix real estate market and Glendale AZ property, contact my office at any time.