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Distressed in Buckeye, Arizona

By
Industry Observer

Stressed out on properties

Distressedamania .... I don't think it's a real word.  As a matter fact I know it's not.  You can't find it in a dictionary or Wikipedia but it does exist.  I define it as a condition caused by the overly active, highly aggressive, center focused buyer seeking distressed properties at an incredibly high value for an incredibly low price.  Here in the west valley of Phoenix, Buckeye in particular, I believe it's spreading at an unimaginable rate.  It's like the "best kept secret of our time".  Homes selling for $70,000 to $80,000 with swimming pools, on golf courses that not too long ago sold for $200,000 or more.  Cost per square foot averaging $56.91/square foot this year in Buckeye, compared with $91.26/square foot a year ago as reported by The Cromford Report www.cromfordreport.com for single family homes.  It has literally brought people out of the woodwork from all points of the compass.  First home buyers, investors and second home buyers from all over the country.

It's not paradise or a cake walk by any means.  The Wall Street Journal today answered a very interesting question in it's article titled Are Distressed Properties Worth It? .  It's a question that many have to answer for themselves but for the most part, my clients are saying it is.  Their patience is stretched and frustration levels are often tested beyond belief but the final reward seems to please them all.

 

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Audrey Spencer
People Dimensions LLC - Buckeye, AZ

Great post, Ken!  It looks like a lot more folks can afford that vacation they have always dreamed about, especially here in Arizona.

Oct 01, 2009 05:58 AM
Judi Boad
SOLUTIONS REAL ESTATE - Scottsdale, AZ

Hi Ken,

We are in a very interesting position here in the greater Phoenix area. More people wanting to buy these bargain basement homes than homes to buy!

All of our buyers looking to cash in on the tax credit are part of multiple offers on everything that they are interested in. It isn't uncommon for buyers to put in up to ten offers and not get accepted. Investors are using cash and we all know Cash is King.

Some of the many short sales out there will inevitably become foreclosures and the foreclosures not yet released will be available at some point, and we will find a whole new problem to cause Distressamania!!!

Oct 01, 2009 05:58 AM
William Johnson
Retired - La Jolla, CA
Retired

Hi Ken, There was a lot of cash taken from the stock market, a lot lost of course but a lot anticipated a crash and pulled out. Many with millions in cash and no place to put it brings them to a real property. Unlike stock, real property never becomes worthless and it fluctutaes up and down but overall, it is always more expensive than it used to be. So the future for real property is vibrant. They are buying everything in sight and then some. Think in terms of lifetimes and next generation and you will glimpse at where we are today. Real property will always have value, most of the time increasing. Our tax laws favor real roperty ownership. Little wonder at the low prices so many want what others had and gave up.

Oct 01, 2009 06:21 AM
Rashel Beaver
Phoenix, AZ

Buckeye, Queen Creek and Maricopa deals are outrageous right now. If I was looking for a home myself, i'd get caught up in it too! $80k in Buckeye on the golf course with a pool. That's just crazy!!!

Oct 01, 2009 06:32 AM
Ken Spencer
Buckeye, AZ
for Verrado, Buckeye, Sundance

Judi:  You hit the nail on the head.  A lot of properties and a lot of buyers with multiple offers.  I'm feeling the pain representing my buyers.  Ten offers sounds like a lot but not out of the question.  I have an out of town buyer traveling back into the valley from Utah this weekend for the third time in one month ready to look again and make another one or two offers (of 5 already made and rejected, above asking price).  It keeps us busy as realtors in this market for sure.

Thanks for your input

Oct 01, 2009 07:39 AM
Ken Spencer
Buckeye, AZ
for Verrado, Buckeye, Sundance

Yes William.  The smart ones did start taking that cash from the market and already knew that property would be the solid way to go.  They are absolutely doing the right thing, putting their investment cash where it will grow , no question about it.  This is a good thing for all of us.

Oct 01, 2009 07:44 AM
Ken Spencer
Buckeye, AZ
for Verrado, Buckeye, Sundance

Hi Rashel.  Yes you bet.  Outrageous is an understatement.  I don't work Queen Creek or Maricopa but I've heard it's going crazy like the west valley.  Thanks for the input.

Oct 01, 2009 07:47 AM
Ken Spencer
Buckeye, AZ
for Verrado, Buckeye, Sundance

Thanks for your comment Audrey.  People are looking for that vacation home here to get away from that coooool weather that's lurking around the corner.  I'm expecting more activity as we get to January and February.

Oct 01, 2009 07:50 AM