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
Keller Williams AZ Realty
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 email@example.com for more info on the few I see as well as info on some upcoming bank owned listings...
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.
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.
"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.
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
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...
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.
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.
Arizona Homes for Sale by a Guy from Iowa
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!
I wish you luck. It's not easy for anyone out there.
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.