i want to by a second home (for my mom) in my small subdivision. All the homes are the same sq ftge.

Asked by Kathy, Phoenix, AZ Tue Sep 16, 2008

Some have had Az rooms or garages added) There have been two foreclosures this year that sold at $130 each. Two homes sold a year and a half ago at $185. Now two houses (both vacant) are listed at $200k or more. Seems to me the prices should be 15 -20% less than year and half ago. Nothing extra special about these homes or the subdivision for that matter. One's been on the market for 7 mo, the other 2. I made one cash offer and it was ignored. I've talked to two buyers realtors and one said I should offer atleast $180 k and the other says $200k. I think these figures are too high given the market. Should I just keep waiting to see if the owners get more realistic? or am I wrong about the value?

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Steve Belt, , Scottsdale, AZ
Tue Sep 16, 2008

You haven't provided enough information to answer your question.

And are you working with an agent? Your agent would be your most reliable source of market value information, as they have seen all of the homes in question, compared values to past sales, and have the best understanding for how you value property.
Web Reference:  http://www.teambelt.com
2 votes
Jarrod Wood, , Chandler, AZ
Sun Sep 21, 2008
The market will dictate the value of the houses. The market value is an average of many variables. What might be lower value in one area might be higher in another. So, it is hard to say without knowing some more details. If you would like some one on one help just let me know. My email is listed below.
0 votes
Jonathan Dal…, Agent, Glendale, AZ
Wed Sep 17, 2008
On the surface it doesn't make much sense that the current listings are higher than the sales from 18 months ago. It also doesn't make sense that there wouldn't be listings below $200K when the foreclosures sold at $130K, at least on the surface.

At the end of the day, the issue you're facing is the sellers aren't willing to sell their homes for that lower price. That can't be helped. I am very curious as to what the comps should be, though, because the data seems to be more than a little conflicted right now.
0 votes
Carlos Ramir…, Agent, Mesa, AZ
Tue Sep 16, 2008

Market conditions are very regional and can vary a lot, even within different sections of Phoenix. Without any more information it is impossible to make a fair assesment. That 15 - 20% might or might be accurate.

It is strange to me that there is such a big difference between the two Realtors you talked to. If you are not working with any of them, those are probably just very rough estimates, hence the difference between them. I will advise you to be represented by a Realtor, he will then take the time to collect all the necessary data and make a good comparison with the properties to give you a good estimated value.

Most Realtors will give you a rough estimated value based on some quick comparables. If you want something deeper than that you will have to commit to a Realtor who will in turn dedicate a few hours to make more in depth comparables and will be able to provide you with a more accurate figure.

Good luck!
Web Reference:  http://www.SmartAZRealty.com
0 votes
Lucinda Tkach, , Phoenix, AZ
Tue Sep 16, 2008

The forclosure homes often sale for significantly less! Also, in some areas of the city there are increases in new build prices from a few months ago.

Feel free to contact me if you need further assistance!

0 votes
Maria Swan, , Phoenix, AZ
Tue Sep 16, 2008
Kathy, is not that simple. A lot has to do with zip code or subdivision. Some are sliding lower than others. If the houses are short sales, sometimes the numbers in the listings have little meaning. In general short sales will close at about 30% below the bank appraisal, however, short sales need to be approved by the sellers and the lenders. Notice I said lenders as sometime there is more than one loan on the property. I know this isn't helping much but without more precise info that's all I can offer. Feel free and contact me if you have more questions,
Maria Swan-John Hall & Associates
0 votes
Daniel B Ste…, , Maricopa, AZ
Tue Sep 16, 2008

I agree with Todd. You will need to provide more information concerning the location of those properties in order for any professional to begin researching this.

0 votes
Tonje Kearney, Agent, Scottsdale, AZ
Tue Sep 16, 2008
The declines are valley wide, but some areas are being hit harder than others, so it is impossible to tell what the values should be at in your subdivision without more info. But if two bank owned homes sold at 130k, then wait until another one comes along, then offer on that one. Lowballing 130k on a 200k property even if the 200k property should not be 200k won't get you very far. If the owners wants 200k at this time, they aren't going to go to130k right now.
Web Reference:  http://www.TeamKearney.com
0 votes
Todd Lee, Agent, Phoenix, AZ
Tue Sep 16, 2008
Without knowing the subdivision it's hard to say. Some areas are already making a comeback in pricing. Which subdivision are you referring to and I can run some comps to see if what you are seeing makes sense?
0 votes
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