I would like to start off by introducing my self.
My name is Micah Schisel, I have been working in the Real Estate business for 7 years now, and originally started working for Realty Experts here in Prescott AZ, and I just recently switched companies to Keller Williams Check Realty.I specialize in Residential homes and Commercial properties, and mainly deal with buyers, but I will never turn down a good listing to ad to my sold portfolio.
From what I have seen, the Real Estate market here in Prescott has been surprisingly strong in comparison with the rest of the western states. As we all know the Phoenix market is so soft right now that you can purchase a very nice home in a very nice area for around $50,000. But the Prescott market is different, our supply and demand is not as nearly uneven as it is in the rest of Arizona. The reason for this is that we have such a limited area to build and also the impact fee's are so high right now, it is just not worth it to build when you can buy an existing Foreclosure or Short Sale for less than half it would cost to build.
Now getting on to the topic of Foreclosures in the Prescott and Prescott Valley market. The price of some of these Foreclosures have been just about half of what the previous value of the home was. If you would like to get into a Foreclosed home, there are a few things to keep in mind.
1. What is the actual value of this home?
2. What is the actual condition of this home?
3. What is the Price that I am willing to pay?
4. What is the Conditon of the local area?
- I'm sure the first question that will come to your mind is why would I pay attention to the condition of the local area? The reason behind this, is you don't want to over pay for a home in an area that has been plagued by Foreclosures. Some areas in Prescott and Prescott Valley have several Foreclosures on the same street!! So it is very important to do a very good study of the area and know what economic state it is in.
- As for the Actual value of the home, you or ME your Realtor will need to do an in depth search of the sold comps ( comps= comparison of sold homes) and also of the homes that are currently listed, because in a volatile market the price of a home that just came onto the market could be up to several thousand less than the homes that just sold !! So pay close attention to what the market is doing.
- As for the condition of the home, this will be the ultimate deciding factor of what you need to pay for it. There have been several homes that when the bank foreclosed on the owners, the owners would go back into the home and remove anything they felt had some sort of value, such as sinks, granite counter tops, doors, cabinets, and in some extreme cases all of the electrical wiring from the home to sell it for the value of the copper!! So be very careful to work in all of these expenses when looking at the purchase of a home.
- And now for the Price that you are willing to pay. It will be easier now to come to a conclusion of what you should pay if you have read the info above :) . When looking at the amount to pay you need to know the condition of the HOME, MARKET, AND THE AREA. But never forget the total amount that it will cost to fix not only the home but also the landscaping, as both of these can get very expensive very fast.
So the purchasing of a Foreclosure and being able to get a good deal for your money, will come down to you or ME as your Realtor being able to do research and knowing the current conditions of not only the home but also the area and also what the market is doing at that moment in time. So stay alert and pay close attention to the details, and you will be on your way, to being a successful investor in these not so easy times !!
My next Blog will be about Short Sales in Prescott and Prescott Valley
Please visit my website http://www.micahschisel.com
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Kind Regards Micah Schisel
Keller Williams Check Realty