While reviewing the sales statistics for September and current inventory for Desert Ridge I got to thinking about what constitutes a “good deal” in this market? What will it take for a buyer to feel like they “bought right” while making a purchase in 2008.
In the midst of bank bailouts, a real estate down turn and a fledgling economy, it is tough to get buyers to sign on the dotted line. When people ask me if I think we have reached “bottom” I always respond by saying that it depends on several factors. If they want to know if we have hit bottom as far as real estate prices, I also say that some homes are priced at what I would consider a bottom. How do I know that? They are evidenced by mulitple offers after 1-3 days on market. Usually these are bank owned properties and obviously are in varying condition. These are usually under $150k.
In a an are like Desert Ridge, it can be tough to determine. The home prices are higher, especially in Aviano where they can exceed 1.5 million. There is still a lot of inventory relative to monthly closings. Today there are 52 active listings in Aviano. Something will have to give to move that many properties considering only 2 properties closed in September. Prices have already experienced a major price correction in Aviano, so we are close. That being said, is it imperative to buy at the absolute bottom?
What is most important? Buying a distressed property may elicit the best price, but may need work. Without having a strong understanding what repairs and/or upgrades are going to cost, a good deal may not be that good of deal when it is all said and done. When I show or preview properties I always pay close attention to what the previous owner has already done. Is the landscaping complete? Are there window coverings? What kind of upgrades were done? Are there necessary repairs? Is it a premium lot?
Each month I will recap the monthly Desert Ridge & Cave Creek statistics, but beyond that I want to really breakdown the stats. I want to highlight what I consider to be the best deals and why. I want to help sellers be ahead of the curve so we can list home prices appropriate and sell them quickly. I want to help educate buyers on what is a good deal for THEM! By the way, with interest rates as good as they are now, a buyer doesn’t have to worry about hitting the absolute bottom. If they are going to live in the home for more than 5 years, the rate intself will be as important as the sales price. If you wait to see if prices are going to drop a lot more and rates go up, you will wind up paying more for the home.
In addition to the market analysis I will highlight homes that are offering creative financing. For many this will be the definition of a good deal. Stay tuned! I will be providing you with NEWS YOU CAN USE!
~Kim
Ready to sell you your slice of the Arizona sunshine!
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