Susan, Home Buyer in San Francisco, CA

Hows the housing market in Scottsdale, Arizona?

Asked by Susan, San Francisco, CA Tue Dec 4, 2007

My brother thinks his house is worth 1.3MM and he paid 500k for it a few years ago. Are the bubble prices holding or coming down?

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Answers

11
With out the address and a bit of research any answer is just a guess. A good Realtor is going to base their Comparable Market Analysis on the recent sales in the neighborhood. Current properties that are Active on the market is just your competition during the market period of your home. An active listing could be vastly over valued for the market and will continue to remain on the market until the market catches up to that listing.. Does that happen? Yes it does, probably more that you would have imagined. Do your brother a favor and have him contact one of the many reputable listing agents in Scottsdale.

Jeff Daley - Scottsdale Real Estate
0 votes Thank Flag Link Thu Jul 8, 2010
Hi Susan:

Is your brother thinking about selling or are you just curious about the market in Scottsdale, AZ?

If he is thinking about selling and as savvy as you are about real estate, I think you know he should contact a realtor and get a market analysis on his specific house instead of doing a wide guess on paper.

If you are just curious and the fact that his neighbor has a house listed for $1,3M since July, and assuming they are similar (since you are using that as a comp), what do you think about how it reflects the price of your brother's house? I am pretty sure you know the answer.

Sylvia
0 votes Thank Flag Link Wed Dec 12, 2007
Sylvia Barry,…, Real Estate Pro in Novato, CA
MVP'08
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A lot would go into establishing the value of your brother's home. It could easily be worth $1.0M, and it could also easily be worth $1.2M. I doubt it would command much more than that, however. Assuming his home is in the prestigious gated community Raptor, within Grayhawk, the home is located in an excellent subdivision. As well, unlike most parts of the Valley, the zip code 85255 actually saw a valuation increase in 2007 of around 1/2%. That's not huge, but it's certainly not a loss. Much of that increase stems from nearby DC Ranch and specifically Silverleaf, but still Grayhawk is an area that people strongly desire to live in, and are willing to pay accordingly.

For your brother's home to command an excellent price, it would need to be perfect. And by this, I mean everything would have to be done as if it were a full custom home. Not just stainless/granite in the kitchen, but granite in the secondary baths, a resort-style pool, etc. If there were no objections, and nothing left undone, it could well be worth $1.2M. If there's cultured marble in the secondary baths, and the pool is nice, but not spectacular, you'd probably be looking closer to $1.0M.

Buyers are being very, very picking, because they can be right now, but quality homes, in quality neighborhoods are still selling for premium prices. The last 2 sales in Raptor were for $1.2M and $1.1M back in June/July. The next sale probably won't be until February, just due to the nature of the real estate cycle in Arizona, but it wouldn't surprise me if the neighbor's home was able to transact right around $1.2M.
0 votes Thank Flag Link Wed Dec 12, 2007
His next door neighbors house has been for sale since July. I think he listed it for 1.3MM. The house is on Winwood Lane in Scottsdale. 85255.
0 votes Thank Flag Link Wed Dec 12, 2007
Things aren't to bad compared to other areas in the valley. Prices are down however.
Web Reference: http://getprequalified.com
0 votes Thank Flag Link Wed Dec 12, 2007
The homes PENDING SOLD in Grayhawk in the price range are $700K to $799K - The SOLDS in the previous 3 months are $750K to $925K. My first answer was close. I say based on the very little information you have provided me that his home is in the $700 to $799K range based on the market data. 1.3 million - I don't think so.
Web Reference: http://www.480ForSale.com
0 votes Thank Flag Link Wed Dec 5, 2007
He lives in a planned community called Grayhawk. His house is like 3500 sqft and he has a casita. His yard is average size. He has neighbors on all sides of his house. It is a tract home community.
0 votes Thank Flag Link Wed Dec 5, 2007
I have referred a client to our office in Scottsdale and the client was very pleased. You should call the Coldwell Banker in Scottsdale at 888/590-8181 or 480/595-8181 33765 N Scottsdale Rd, Scottsdale, AZ 85266 and ask to speak to the office manager or broker to find out who is the best agent there. I am sorry I do not remember who the specific agent was but in my experience the office manager usually will direct you to a great Realtor!
0 votes Thank Flag Link Wed Dec 5, 2007
I've got a tool on my website called a "Market Snapshot" that pulls real-time recent sales data from the MLS. All you need to do is enter an address and you'll have an answer in less than 30 minutes. It will give you accurate data on the most recent sales prices. The tool is located at http://www.joejanus.com/How_Much_did_it_Sell_for/page_1912154.html

I hope it helps.
Web Reference: http://www.joejanus.com/
0 votes Thank Flag Link Wed Dec 5, 2007
The period of three years makes it nearly impossible to answer as prices have both gone up and gone down or stabilized in that period of time. Scottsdale is also very diverse, from Old Scottsdale with basic homes built in the 1960's to very modern, luxury communities. We have a site we are putting together for just Scottsdale at http://www.eScottsdaleArizona.com . You can search for homes right down to his community. My immediate reaction is his home is not worth $1.3MM, but without more information, who knows???
0 votes Thank Flag Link Wed Dec 5, 2007
If you give me the address of your brother's home, I can give you a B.P.O. (Broker Price Opinion). I highly doubt that a home in Scottsdale purchased a few years ago for 500K is now worth 1.3m but it is possible. In general we have had a 25 to 40% price increase in the previous few years and an 8.8% average decline in prices. Using general numbers if your brother paid 500K and it when up 40% it would have been worth 700K at the peak of the market and then come down to around 650K. Real Estate is VERY LOCAL. Your brother could be living in a very high demand area of Scottsdale and his home could have appreciated rapidly and not have come down. Scottsdale in general is a good are of the valley to purchase a home because of the world wide recognition that Scottsdale has. You might want to check out one of my websites: http://www.480ForSale.com where you can see all of the homes for sale on a map - you could zoom down into your brother's neighborhood and see what the asking prices in his neighborhood are.
Web Reference: http://www.480ForSale.com
0 votes Thank Flag Link Wed Dec 5, 2007
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