Property Q&A in 85255>Question Details

Joy, Home Buyer in 85255

I am interested in Silverleaf Park Villas and prices have been distressed and traditional. It's hard to make an offer on a traditional price!

Asked by Joy, 85255 Fri Jan 28, 2011

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Joy
Ask your agent to get in touch with their appraisal connection and discuss how the appraiser values distressed vs non distressed home values when doing their appraisal. There is a variance that is considered as well as condition and all the other obvious factors. Also, have your buyers agent show the comparables and come up with a fair price to offer the seller. Don't pay based on what they want but only what you are willing to pay and realize you will also have your own appraisal on the home for sure if you are financing and by option if paying cash.
I will say on my equity sellers that have prepared their homes for sale, sell for more than the distressed sales by several percent. We always price at the top of the comps and they get close to that asking within 60 days. If the entire area is full of distressed numbers then your offer should consider this as well. Complete your research and you should be good to go.
Best of luck
Laura Myers
Keller Williams AZ Realty
0 votes Thank Flag Link Fri Jan 28, 2011
Joy,

Hi again - I updated the link so it includes all the listings in Silverleaf including active, short sales awaiting bank approvals, pending, and sold within the last month. There's a couple priced well to the current market ... Call 480 414-3410 or email pattysellsaz@gmail.com for more info on the few I see as well as info on some upcoming bank owned listings...
1 vote Thank Flag Link Sat Jan 29, 2011
Hi Joy,
I agree that price is way too much. the seller is not being realistic about their price. They are charging more than they paid when the market was at it's height. DC Ranch is a great place to live, but many of the sellers think their community is not affected by what is going on in the market. If you want to search like we do as agents, go to the below link. This will allow you to see the tax records of the properties as well so you can get an idea of when the previous owner bought it and what they paid. The value of the home has nothing to do with what a person paid for it, but you can assume if they bought it in the years when the market was skyrocketing, then it is most likely it is worth less today. Take your time, you will find the right property at the right price.

http://link.flexmls.com/romi5a5id8g,12

Lorrie Feld
lfeld@azrealtygroup.com
1 vote Thank Flag Link Fri Jan 28, 2011
Thanks, Stephanie. I am a cash buyer and it is amazing that the lower the square footage, the higher the cost per square foot. I am looking for small and cozy so the Park Villas suit me. In particular, the smaller ones! I made an offer last week and ultimately, we failed to reach an agreement. I was at $348sf for a 2654 sq ft Villa. I just can't see paying more in todays market. So few of these models come on the market but I will be patient.
0 votes Thank Flag Link Wed Feb 9, 2011
Joy
the Villas with respect to pricing are all over the place. Typically the lower the square footage, the higher the "price per sq ft" will be but our current market isn't typical. Other factors can be location, view, etc. The active listings range from $211 PSF for a 4,480 sq ft unit and $450 PSF for a 2,650 sq ft unit. Of the 2 units that sold since Oct 2010, a 3,040 size unit sold for $273 PSF and was a short sale while the 3,860 size unit sold for $203 PSF and was a lender owned property. Both of these closings were cash deals. A lender owned home or short may not be in as good of condition as one that is owned and "taken care of" by the property owners that still live there. You have to find one that works for you and if it needs some $ put into it, are you willing to do that to get a good deal or do you want the "move in ready" property? Everyone has different priorities.
0 votes Thank Flag Link Sat Jan 29, 2011
Park Villas is a great area within Silverleaf. There are still distressed properties within this community. Of the 29 homes for sale in The Parks: one is Lender Owned, 2 pre-foreclosures, and 4 are short sales. These homes have high-end finished and are very well built. I would not hesitate putting a client in a Park Villas home.
Web Reference: http://lisalucky.com
0 votes Thank Flag Link Sat Jan 29, 2011
Joy,

"Traditional" sales are still being effected by the distressed property values. Your agent will go through all the closed sales and determine the value of the property. You do have to compare conditions, locations, etc to come to a good idea of the real value. Your offer should be well thought out and based on the home's actual value. Many of the distressed homes will take some fix up and you will need to weigh out how much money you will spend for this.

If the seller is not willing to accept an offer you feel comfortable with you could always make an offer on a distressed property and fix it back up as well.

Best Regards,

Brenda & Ron Cunningham
602-980-3133 / 602-499-0694
Recognized in the Phoenix Business Journal (July 2010) as one of the Top 50 Realtors of the Valley
0 votes Thank Flag Link Fri Jan 28, 2011
Hi Joy, I understand your dilemma and many buyers don't want to pay more on a traditional sale. I actually live and work in this area and view properties in Silverleaf and DC Ranch very frequently. There are traditional sales that are not far off price from a bank owned or short sale. Many of the clients that I've worked with understand the value of a traditional sale after actually going inside a bank owned or short sale and then understanding the process of buying a distressed property. You have to ask yourself how much money will you have to spend to get a distressed property in the condition of a traditional sale? If its close then maybe the decision is not that difficult. If your far apart, then you need to have a Buyer's Agent represent your interests and negotiate the traditional sale. Good Luck with your Search! It's a beautiful community and a great place to live.
0 votes Thank Flag Link Fri Jan 28, 2011
Joy,

There's actually a few good prices in Silverleaf right now... I've pulled all the active and pending/sold homes in the community over the last 3 months for you to view with the link below. I'd be happy to help you with the ones I think are good buys. I also have some leads on upcoming foreclosures in the community. Contact me if you'd like more info...

:) Patty
0 votes Thank Flag Link Fri Jan 28, 2011
Joy,
The riding here is great! Easy to get out of the traffic. I don't like riding in CA either. I'm out almost everyday sure we will run into each other!
0 votes Thank Flag Link Fri Jan 28, 2011
Shawn, off the subject but I cycle too! I love the thought of cycling in Scottsdale. The traffic in Manhattan Beach, CA makes it a dangerous sport! See you on the road!
0 votes Thank Flag Link Fri Jan 28, 2011
Joy,
There are more to come! Just keep watching.
0 votes Thank Flag Link Fri Jan 28, 2011
Thank you, Shawn....you are one of the few that gets it. They are not realistic in believing I would gladly pay nearly double for the same home. I understand upgrades count! Thanks again.
0 votes Thank Flag Link Fri Jan 28, 2011
Joy,
I know this community very well & you are completely right! They are not trashed at all they are all nice (some have better upgrades). There are just some owners that should not have their home on the market right now, the are not realistic.
0 votes Thank Flag Link Fri Jan 28, 2011
Joy

You are correct, we are seeing at times significant spreads between traditional and distressed properties. It is extremely important to correctly compare the properties as you make your determination on offering price. The least expensive one might be the best deal and then again not.

Silverleaf looks to have 68 currently on the market in an active status so we really do have enough to put together a great comparison of the properties. Higher end markets like this do take more experience and a real commitment to determine the correct offer to make.

Some sellers are willing to sell a property for what its worth and some aren't. The ticket is to know what the properties are worth and have an excellent negotiator on your side.

Good luck in your efforts, please make sure you have great representation.

Doug McVinua
HomeSmart

Arizona Homes for Sale by a Guy from Iowa
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Fri Jan 28, 2011
Those sold properties weren't trashed. I saw them before my house in CA went in to escrow so I missed out. I am comparing apples and apples.
0 votes Thank Flag Link Fri Jan 28, 2011
Joy,
The Villas are tough right now you are right! There are many
0 votes Thank Flag Link Fri Jan 28, 2011
As my dad would have said, you have to compare apples with apples, and oranges with oranges. To compare a trashed out, bank owned property with a move-in-condition traditional property is like comparing apples to oranges. Yes, they're both fruit, but is there a difference??

As Paul delineated, there can be a LOT of advantages to buying a traditional property/listing. If you're not happy with what you're seeing in foreclosures, and you're not interested in the insanity of short sales, then ask your Buyer's Agent to program a customized search profile for you (from within the MLS database), and exclude the ones on which you don't want to waste your time. After all, life is too short.

All the best!
0 votes Thank Flag Link Fri Jan 28, 2011
Thank you to all. When 3 distressed Park Villas sold for $700, $830k and $929k and the same floor plan is listed for $1.395, it's hard to buy the traditional. Sad but true.
0 votes Thank Flag Link Fri Jan 28, 2011
Most non-distressed sellers in that area will soon be destressed sellers themselves or they will take the property off the market. . . .
0 votes Thank Flag Link Fri Jan 28, 2011
Also, Silverleaf is a highly sought after, exclusive luxury community, you are going to see a bunch of super desperate sellers, maybe some in financial trouble but that area is very limited so not the same as other hard hit areas.
0 votes Thank Flag Link Fri Jan 28, 2011
There is value to a traditional sale. Availability of disclosures, possibility of repairs, a caretaker in place (assuming owner occupied) for the duration of the escrow period to minimize the risk of vandalism or theft, ability to get a quick, valid response to an offer and reasonable closing time frame, etc. Unfortunately, many homeowners mistake that value for a couple hundred thousand dollars. All things being equal, a human owned property should sell for slightly more than the bank properties (even if comparable in condition), but not for the astronomical premiums some like to attach. Of course, the mitigating factor in a traditional seller's ability to offer a competitive price is his/her current equity position. Some hope to avoid the damage to their credit that a short sale entails by selling traditionally, but simply cannot offer a competitive price if the home was purchased within the last five to six years.

I wish you luck. It's not easy for anyone out there.
0 votes Thank Flag Link Fri Jan 28, 2011
Hi Joy,

I'm assuming you're represented right? Before submitting offers for my clients we thoroughly engage in an extensive comparative and market analysis. Hopefully you're getting similar counsel. Good Luck.
0 votes Thank Flag Link Fri Jan 28, 2011
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