By Mikhail Quijada | Scottsdale & Paradise Valley Realtor
Buying a home involves much more than finding the right property and negotiating a purchase price. Sometimes, the most important work begins before an offer is submitted and continues well beyond getting a property under contract.
I recently represented buyers purchasing a condo in Old Town Scottsdale. We successfully negotiated an additional $40,000 off an already-reduced asking price, but the transaction presented financing challenges related to litigation involving the condominium's homeowners association.
The litigation was something I was aware of before entering into contract negotiations. Understanding those issues and their potential implications was an important part of helping my clients evaluate the purchase.
Despite the financing complications that followed, we were able to find a solution, negotiate additional time with the seller, and successfully close on the property.
Identifying Potential Challenges Before Making an Offer
Condominium purchases require an additional layer of due diligence beyond evaluating the individual unit.
The financial condition of the homeowners association, insurance coverage, pending litigation, and other project-level considerations can affect a lender's willingness or ability to finance a property.
In this particular transaction, I was aware of litigation involving the HOA and property owners before we entered into contract negotiations.
That information was important to consider as we evaluated the property and prepared our offer.
My role as a buyer's agent is not simply to help clients find a home they like. It's also to identify potential concerns, help them understand the implications, and provide the information they need to make an informed purchasing decision.
In this case, we moved forward with the purchase knowing that the condominium's existing litigation could present additional considerations during the financing process.
Negotiating an Additional $40,000 Off an Already-Reduced Asking Price
By the time my clients became interested in the Old Town Scottsdale condo, the seller had already reduced the asking price.
After evaluating the property and negotiating on my clients' behalf, we reached an agreement at an additional $40,000 below the then-current asking price.
That reduction was particularly meaningful because the property had already undergone a substantial price adjustment before we began negotiations.
We entered into the contract with an anticipated 30-day closing, knowing that the condominium's existing HOA litigation could present additional considerations during the financing process.
When HOA Litigation Complicated the Financing
Financing a condominium can be considerably different from financing a single-family residence.
In addition to evaluating the borrower's financial qualifications, lenders must consider the condominium project itself. Depending on the type of loan and the lender's underwriting requirements, issues involving an HOA, including pending litigation, can affect whether a property qualifies for financing.
In our transaction, the existing litigation involving the HOA and property owners created financing complications that prevented us from meeting the original 30-day closing deadline.
The delays were not the result of a lack of cooperation or effort from the buyers, seller, real estate agents, or original lender. The circumstances surrounding the condominium project required us to find an alternative financing solution.
With the original closing date approaching, the priority became finding a lender who could complete the transaction while securing enough additional time to keep the purchase together.
Finding a New Lender and Keeping the Transaction Together
Rather than allowing the financing complications to derail the purchase, I helped my clients identify another lender who could work through the situation and get the financing across the finish line.
At the same time, I worked with the seller and their agent to secure additional time to close.
Throughout the extended transaction, I maintained communication with the parties involved, helped coordinate the next steps, and kept everyone informed as we worked toward a successful closing.
When a transaction encounters an unexpected delay, communication becomes particularly important.
Buyers need to understand their options and the steps being taken to resolve the issue. Sellers need confidence that the transaction is progressing, especially when they are being asked to extend the original closing date.
Keeping everyone informed and working toward the same objective helped us navigate the additional time required to complete the purchase.
Ultimately, we were able to resolve the financing complications and successfully close on the condo in 54 days rather than the originally anticipated 30.
The Outcome
- Additional reduction negotiated: $40,000
- Original closing timeline: 30 days
- Actual closing timeline: 54 days
- Final result: Successfully closed
My clients were able to purchase the Old Town Scottsdale condo at the negotiated price despite the financing complications associated with the HOA litigation.
The transaction took longer than originally anticipated, but we found a workable solution and successfully completed the purchase.
Why Buyer Representation Matters Beyond Negotiation
Negotiating a favorable purchase price is important, but it's only one component of effective buyer representation.
Real estate transactions involve multiple parties, contractual deadlines, financing requirements, and circumstances that can affect a buyer's ability to close.
In this transaction, my involvement began with identifying and evaluating the potential implications of the HOA litigation before entering into the contract.
When the financing process became more complicated than anticipated, my role shifted to helping my clients find an alternative lender, negotiating additional time with the seller, and keeping the transaction moving forward.
My background in finance influences how I approach real estate. I believe buyers should understand not only the purchase price of a property, but also the financial, contractual, and long-term considerations that can affect their investment.
Whether you're purchasing a condo in Old Town Scottsdale or a luxury home in Scottsdale or Paradise Valley, having an experienced Realtor who remains actively involved throughout the entire transaction can make a meaningful difference.
Getting a property under contract is only the beginning. Helping my clients make informed decisions and successfully navigate the process through closing is the objective.
Every transaction presents different challenges. In another Scottsdale buyer transaction, I helped clients evaluate significant property concerns and ultimately purchase a better alternative. Read my Scottsdale buyer-protection case study to learn more about my approach to property evaluation and long-term resale considerations.
This case study describes an actual buyer transaction. Client identities and identifying property details have been omitted to protect privacy. Individual transaction results vary.
