There are some downright stupid buys to be had in the current Real Market here in Scottsdale. In the past two days, I have looked at three different properties that were $100,000-$200,000 under market in my estimation. Given they were located in my primary market, my estimation is pretty darn accurate if I do say so myself. And I do.
It seems that the investor activity on the fringes of the Valley is trickling into the more central locations like McCormick Ranch, South Scottsdale and the Kierland area. Why? Because of the outbreak of crazy values like these few I mention. While I have written at length about the pitfalls of the bank-owned buying craze, I must say that many of the better values as of late have been bank properties. Sure, most require some work, but we're talking tens to hundreds of thousands under market ... even in the current distressed condition. Now I caution that many of these homes are not going to be suitable for end users or amateurs. It will take a professional investor to see past the current grime and filth. In some extreme cases, the properties may even have trouble qualifying for conventional financing due to the condition. Picture a crack house where the owner's fellow crack addicts are concerned about how he really let the place go. Think banks are tough on properties in primo shape right now? Try running one with animal feces ground into the carpet and holes in the walls past them. Okay, they aren't all that bad, and some are actually in very livable shape, but the cash and/or private financing that many professionals operate with still gives them a decided advantage.
What I am having trouble understanding is why some of these prices are so incredibly low. I know that banks are eager to offload them, and the incentive to the buyer must be strong enough to look past the required fixup, but some of these properties are overshooting (or should I say undershooting) the mark by such a wide margin that it is simply staggering. My hypothesis? Out of area agents offering BPOs (broker price opinions) to out of area banks. I don't know of many institutions that are hiring specific agents for individual properties based on their locational specialty. They simply have a group of agents to whom the listings are funneled, and it's often luck of the draw as to who gets what. So they run their numbers, not knowing the neighborhoods, builders and specific submarket forces, and come up with an unenlightened evaluation. Taking it a step further, they will dutifully report the treacherous Valley wide market conditions, spurring the bank to lop even more off the asking price.
With this cheap inventory being pounced on immediately, it is not an easy prey. Like the supernova that erupted our market in '05, the current low end of the market is generating multiple offers and bidding wars, and selling within 48 hours of hitting the market. You don't want to bring American Express to one of these. Cash is king.
Even with the spring high season behind us, the sheer absurdity of some of these prices is bringing non-Phoenix residents back to town in the midst of 110+ degree heat. While there is ample competition for the very best deals, the odds of securing such a steal are significantly better than they were a few months ago when all of the seasonal residents were still in town and vying for their pieces of Scottsdale's pie.
I'm calling on the professional investors from Scottsdale, Arizona to Alberta, Canada and beyond. I see unbelievable values every day, and it's killing me not to have anyone to offer them to at present. Don't make me form an LLC with a few partners and start buying all of this low-hanging fruit myself. I really don't have the money and can't take on the added responsibility right now, but ...
Shoot me an email, and I'll put you on my watch list for the next investment opportunity that comes down the pike. I won't fill your inbox with clutter, but you'll need to be ready to rock and roll when I do forward something. As fortunes are unfortunately being lost in this market, so will they be made. You in?
_______________________________________________________________________________________________
Paul Slaybaugh is Your Scottsdale AZ Real Estate Specialist
Whether Buying, Selling, Investing or simply burning my gas at $4.15 a gallon,
I'm your guy.
(480) 220-2337
paul@rayandpaul.com
Multiple Offers? Bidding Wars? Cash Sales? Oh My!
Surely I refer to the good ole days of 2005, right? Not exactly. Try 2008.
How do I know that we have either reached or are very near the nadir of the Great Phoenix Real Estate slump of 2007-2008? Well, I don't. Unlike the "experts" who like to think they can accurately forecast our market's health, I offer no promises as to the month, week, day and minute that we hit absolute rock bottom. I am but a simple Realtor. I do know one thing. When it does happen, there will be no starter's gun fired into the sky signaling that it is time to BUY NOW! We will only know with certainty that we hit the mythical bottom when looking back from a vantage point of 3-6 months past the mark. That fleeting moment in time will last about as long as a Bob Saget tribute reel before prices begin the slow march back up. Until then, it's all speculation.
Speaking of speculation, I do offer the reappearance of the investor to the local Real Estate scene as anecdotal evidence that we may be finally nearing the elusive bottom. While many still see only the inky darkness of the abyss, others have firmly planted their feet where they believe the ocean floor to be.
Investors are back in a big way in the Phoenix Real Estate market.
Bank REO properties are getting gobbled up at an amazing rate. In the most price driven market this agent has ever seen, the cheap properties are selling at a startling clip. This is not just happening in the historically sought after communities, but in the far reaches of the Valley as well. The dinner bell is ringing, and the professional investors are heeding the call.
Ah, the scavengers! Loathe them or love them, the Real Estate investor can help stabilize a market by establishing the basement. When the bottom feeders (affectionately dubbed in this instance) start snapping up the delicacies that fall to their depths, it's a signal that the tide may be set to turn. Not only does it display confidence that values are at a perceived low point from a group of buyers that purchases for the sole purpose of making money, but it helps to cut through the ample inventory that has plagued our market. With sales increasing with each passing month this year, builders pulling very few permits as they sell their existing inventory and investors now fighting tooth and nail over low-priced homes, I like our chances of turning the corner sooner rather than later.
Like it or not, the banks are setting the market. Foreclosure properties are what is selling right now. As long as investors keep gobbling up this segment of the market, it will bring the regular Mom and Pop buyers back to the regular Mom and Pop sellers. They just can't compete with the deep pocketed investors (who often pay cash) for the distressed properties, and often don't have the means to invest in the required fix up costs. Shoot, we still have one of the fastest growing populations in the country. There is no shortage of demand. With signs of life permeating the market, a nice big dose of consumer confidence may be just what the doctor ordered. Needing livable housing, and unable to swim with the sharks, these buyers will turn to you, Mr. and Mrs. Seller.
Fear not, better days are near.
And they will begin on August 17th, 2008 at 5:24 PM.
Damn, couldn't resist.
| Property Type: Residential Status: Active | |||||||||||||||||||
| Subject Property |
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| # | ML# | Status | Address | Built | Fe Code | SqFt | List Price | LP/ SF | ADOM | CDOM | |||||||||
| 1 | 2986087 | act | E VIA DE BELLEZA -- Scottsdale | 1974 | 42RDXP2G | 2011 | $336,000 | $167 | 32 | 27 | |||||||||
| 2 | 2889565 | act | E Via de Belleza RD Scottsdale | 1979 | 42FRDXPS2G | 2331 | $349,900 | $150 | 187 | 189 | |||||||||
| 3 | 2977228 | act | N Via De Paesia ST Scottsdale | 1975 | 42FRDX2GS | 2152 | $399,900 | $186 | 41 | 41 | |||||||||
| 4 | 3000850 | act | N Via De Amigos -- Scottsdale | 1974 | 32RDXP2G | 2011 | $415,000 | $206 | 47 | 296 | |||||||||
| 5 | 2953545 | act | N VIA DEL PARAISO -- Scottsdale | 1978 | 32FRDXP2G | 1857 | $419,900 | $226 | 80 | 80 | |||||||||
| 6 | 2858695 | act | N Via Del Paraiso -- Scottsdale | 1977 | 32RDXP2G | 1642 | $424,900 | $259 | 241 | 241 | |||||||||
| 7 | 2972121 | act | N VIA DE LA LUNA -- Scottsdale | 1982 | 32.5RDXO2G | 2089 | $425,000 | $203 | 49 | 49 | |||||||||
| 8 | 2983328 | act | N Via De Amigos -- Scottsdale | 1980 | 33RDXPTO2G | 1882 | $439,900 | $234 | 271 | 270 | |||||||||
| 9 | 2954618 | act | E VIA DEL ARBOR -- Scottsdale | 1979 | 32RX2G | 1700 | $444,995 | $262 | 78 | 78 | |||||||||
| 10 | 2955746 | act | N 77TH PL Scottsdale | 1991 | 22RXQ2G | 1514 | $455,000 | $301 | 79 | 194 | |||||||||
| 11 | 2957369 | act | E Oakshore DR Scottsdale | 1993 | 22RDX2G | 1514 | $469,900 | $310 | 74 | 73 | |||||||||
| 12 | 2925403 | act | N VIA DE LA MONTANA -- Scottsdale | 1978 | 32RXPO2.5G | 2650 | $499,000 | $188 | 124 | 124 | |||||||||
| 13 | 2967083 | act | E SORRELWOOD CT Scottsdale | 1990 | 42.5RDXPS2G | 2419 | $549,900 | $227 | 58 | 507 | |||||||||
| 14 | 2980520 | act | E VIA DE JARDIN -- Scottsdale | 1976 | 32FRDXP2G | 2268 | $550,000 | $243 | 212 | 211 | |||||||||
| 15 | 2890155 | act | E Foxmore LN Scottsdale | 1993 | 42.5FRDXS2G | 2419 | $569,000 | $235 | 186 | 186 | |||||||||
| 16 | 2984831 | act | E Via del Futuro -- Scottsdale | 1978 | 42RDXP2G | 2331 | $569,900 | $244 | 29 | 28 | |||||||||
| 17 | 2965550 | act | N VIA DE LA MONTANA -- Scottsdale | 1974 | 42FRDXPS2G | 2367 | $594,000 | $251 | 60 | 60 | |||||||||
| 18 | 2989805 | act | E Via del Futuro -- Scottsdale | 1974 | 52FRXPS2G | 2400 | $595,000 | $248 | 20 | 20 | |||||||||
| 19 | 2921397 | act | E Via de Viva ST Scottsdale | 1988 | 32.5FRDXP2G | 2171 | $595,000 | $274 | 138 | 130 | |||||||||
| 20 | 2948216 | act | E Via de Viva -- Scottsdale | 1979 | 32RDXSO2G | 2300 | $599,000 | $260 | 88 | 88 | |||||||||
| 21 | 3000958 | act | E FOXMORE LN Scottsdale | 1989 | 32RDX2G | 1813 | $599,000 | $330 | 5 | 1 | |||||||||
| 22 | 2967346 | act | E Sorrel Wood CT Scottsdale | 1990 | 32.5FRDXLO2G | 2294 | $609,000 | $265 | 56 | 56 | |||||||||
| 23 | 2995886 | act | N Via Del Mundo DR Scottsdale | 1976 | 42FRXP2G | 2214 | $620,000 | $280 | 11 | 11 | |||||||||
| 24 | 2996660 | act | E VIA DE VIVA -- Scottsdale | 1973 | 42FRDXP2G | 2556 | $624,900 | $244 | 548 | 545 | |||||||||
| 25 | 2793968 | act | N 78TH ST Scottsdale | 1991 | 33RDXPO2G | 2294 | $639,000 | $279 | 341 | 341 | |||||||||
| 26 | 2938285 | act | N 79th PL Scottsdale | 1979 | 32RDPO2G | 2350 | $649,000 | $276 | 104 | 104 | |||||||||
| 27 | 2782188 | act | E VIA MARINA -- Scottsdale | 1979 | 42RDXPO2.5G | 2386 | $650,000 | $272 | 360 | 360 | |||||||||
| 28 | 2960660 | act | E Via De Jardin ST Scottsdale | 1976 | 42.5FRXPO2G | 2307 | $650,000 | $282 | 67 | 67 | |||||||||
| 29 | 2973529 | act | E VIA SIERRA -- Scottsdale | 1978 | 42FRDXP2.5G | 2386 | $665,000 | $279 | 47 | 47 | |||||||||
| 30 | 2981075 | act | E VIA DE LA ENTRADA -- Scottsdale | 1978 | 32.5RXPS2G | 2360 | $719,000 | $305 | 37 | 35 | |||||||||
| 31 | 2957050 | act | E VIA DE LINDO -- Scottsdale | 1977 | 42.5FRDXO2G | 2966 | $730,000 | $246 | 75 | 74 | |||||||||
| 32 | 2992651 | act | E VIA SIERRA -- Scottsdale | 1979 | 42.5RDXP2G | 2852 | $750,000 | $263 | 17 | 17 | |||||||||
| 33 | 2994906 | act | N Via De La Siesta -- Scottsdale | 1982 | 44FRDXPQ2G | 3483 | $900,000 | $258 | 13 | 12 | |||||||||
| 34 | 2987994 | act | N Via Linda -- Scottsdale | 1977 | 33RDXP3G | 2862 | $1,100,000 | $384 | 24 | 24 | |||||||||
| 35 | 2956783 | act | E Via Bonita -- Scottsdale | 1978 | 54RDXPQO2GS | 3685 | $1,275,000 | $346 | 74 | 74 | |||||||||
| 36 | 2934377 | act | N Via Linda DR Scottsdale | 1978 | 33.5FRDXP2G | 3300 | $1,395,000 | $423 | 110 | 295 | |||||||||
| 37 | 2890930 | act | E VIA DEL PLACITO -- Scottsdale | 1979 | 43.5RDXP2G | 3612 | $1,495,000 | $414 | 185 | 185 | |||||||||
| 38 | 2847856 | act | E Via Del Reposo -- Scottsdale | 2005 | 22.5RPO2G | 3852 | $1,950,000 | $506 | 257 | 257 | |||||||||
| 39 | 2957173 | act | N Via De Lago -- Scottsdale | 1985 | 64FRDXPSO3G | 6000 | $3,995,000 | $666 | 74 | 74 | |||||||||
| Average | 2,502 | $761,951 | 115 | 140 | |||||||||||||||
| Number of Properties: 39 | |||||||||||||||||||
| ( Average ListPrice / Average SqFt ) : ( 761951 / 2502 ) = $ 304.54 | |||||||||||||||||||
| Property Type: Residential Status: Active With Contingencies | |||||||||||||||||||
| Subject Property |
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| # | ML# | Status | Address | Built | Fe Code | SqFt | List Price | LP/ SF | ADOM | CDOM | |||||||||
| 1 | 2874369 | awc | E SORRELWOOD CT Scottsdale | 1990 | 32RXP2G | 1813 | $470,000 | $259 | 215 | 215 | |||||||||
| Average | 1,813 | $470,000 | 215 | 215 | |||||||||||||||
| Number of Properties: 1 | |||||||||||||||||||
| ( Average ListPrice / Average SqFt ) : ( 470000 / 1813 ) = $ 259.24 | |||||||||||||||||||
Pending Sales (Not Accepting Backup Offers)
| Property Type: Residential Status: Pending | |||||||||||||||||||
| Subject Property |
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| # | ML# | Status | Address | Built | Fe Code | SqFt | List Price | LP/ SF | ADOM | CDOM | |||||||||
| 1 | 2945558 | pend | N Via de La Sombre ST Scottsdale | 1977 | 32RDX2G | 2037 | $350,000 | $172 | 92 | 92 | |||||||||
| 2 | 2979845 | pend | N VIA DE PLATINA ST Scottsdale | 1979 | 22RDXS2G | 1812 | $419,000 | $231 | 37 | 37 | |||||||||
| 3 | 2917506 | pend | E VIA DE LA ENTRADA -- Scottsdale | 1978 | 32FRX2G | 1908 | $429,000 | $225 | 123 | 123 | |||||||||
| 4 | 2930901 | pend | E VIA DE BELLEZA -- Scottsdale | 1978 | 32.5FRDXP2G | 2360 | $459,000 | $194 | 112 | 215 | |||||||||
| 5 | 2968358 | pend | E via costa -- Scottsdale | 1979 | 42.5FRDXPO2G | 3067 | $779,000 | $254 | 9 | 9 | |||||||||
| Average | 2,236 | $487,200 | 75 | 95 | |||||||||||||||
| Number of Properties: 5 | |||||||||||||||||||
| ( Average ListPrice / Average SqFt ) : ( 487200 / 2236 ) = $ 217.89 | |||||||||||||||||||
Sold (5/1/08 - 5/31/08)
| Property Type: Residential Status: Sold | |||||||||||||||||||
| Subject Property |
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| # | ML# | COE Date | Address | Built | Fe Code | SqFt | List Price | LP/ SF | Sale Price | SP/ SF | ADOM | CDOM | |||||||
| 1 | 2978969 | 5/13/2008 | N Via Del Sol -- Scottsdale | 1976 | 42RXP2G | 2072 | $225,000 | $109 | $225,000 | $109 | 13 | 11 | |||||||
| 2 | 2972846 | 5/27/2008 | N Via Del Paraiso ST Scottsdale | 1977 | 32FRDXP2G | 1746 | $439,000 | $251 | $415,000 | $238 | 22 | 22 | |||||||
| 3 | 2917244 | 5/16/2008 | E VIA DE LA ENTRADA DR Scottsdale | 1978 | 32FRXPS2G | 1908 | $449,000 | $235 | $435,000 | $228 | 97 | 97 | |||||||
| 4 | 2845795 | 5/06/2008 | E Via de Encanto -- Scottsdale | 1974 | 41.75FRDXP2G | 2333 | $499,900 | $214 | $461,000 | $198 | 199 | 198 | |||||||
| 5 | 2948082 | 5/16/2008 | E STALLION RD Scottsdale | 1991 | 32.5FRDXO2G | 2294 | $550,000 | $240 | $530,000 | $231 | 35 | 209 | |||||||
| 6 | 2895714 | 5/31/2008 | E VIA DEL FUTURO -- Scottsdale | 1978 | 32.75FRDXPO2.5G | 3318 | $800,000 | $241 | $750,000 | $226 | 143 | 143 | |||||||
| Average | 2,278 | $493,816 | $469,333 | 85 | 113 | ||||||||||||||
| Number of Properties: 6 | |||||||||||||||||||
| ( Average SalePrice / Average SqFt ) : ( 469333 / 2278 ) = $ 206.03 | |||||||||||||||||||
All facts and figures provided by ARMLS data. The data included in this report reflects listings from participating brokers of the Arizona Regional Multiple Listing Service. It is not intended to suggest that Ray and Paul were responsible for the sale of these properties unless denoted.
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Ray and Paul Slaybaugh
Realty Executives
Your Source for Scottsdale AZ Real Estate
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Scottsdale AZ Real Estate: A Slaybaugh family tradition since 1974! We haven't sold every home in the Valley, but we're working on it!
A native of Scottsdale, Arizona, I grew up in the planned community of McCormick Ranch. As a second generation Scottsdale Real Estate agent, I make my living selling the area I love. To this day, I place special emphasis on the McCormick Ranch Real Estate market in particular. After receiving a degree in criminal justice from Texas Christian University, I joined my father, Ray, in the industry in 1999. My company, Realty Executives, has been the top producing broker of residential Real Estate in Arizona since 1972 in every category that matters: total sales volume, total transactions, transactions per agent, luxury home sales ... you name it! Within the company, my wonderful clients have helped me achieve the prestigious 100% Club Award for production in 2004, 2005, 2006 and 2007. It is not about the numbers, however. I tackle each new client and transaction like they are the only ones I have. I have unique local knowledge and drive. I did not come to the profession late in life as a career change or form of semi-retirement. This is the only profession I have known, and my clients get a great mix of experience and vigor. As a relatively young man with a burgeoning family, I am still growing my business. You can expect to get my very best as I envision selling my clients several properties over their lifetimes, and referring their friends and relatives as well.
In the rare times that I am not working, I am doting over my sons, Jack and Wyatt, with my wife, Brandi. When I had a personal life, I was a collegiate soccer player, music lover, aspiring/dabbling writer, and martial arts enthusiast. I change diapers now.
Please visit my site for more information about our services or to search for homes in Scottsdale AZ!
Specializing in all facets of Paradise Valley, Phoenix and Scottsdale AZ Real Estate.
Don't just take my mother's word for it, here's what Arizona home buyers and sellers have to say about me!
"Paul came recommended to me from a co-worker of mine. She swore he was the most patient realtor she had ever worked with. When I was looking to buy a home in North Phoenix/North Scottsdale area, Paul was all that and more. We must have seen 40 houses. What I appreciated more than his patience was that he truly wanted to find us a house we loved, not just make a quick sale. He had our best interest at heart. I am happy to say that he found me and my wife a home we love!" -Corey Loucy
"Yes- you were great! Greg and I wouldn't hesitate to recommend you to friends that were buying or selling. One of the things that impressed us about you is that you werent trying to push your own agenda in terms of places or prices. You had done your research and were very knowledgable about every place you took us. We were in a time crunch to find a place and you were very flexible and accommodating. You took care of a lot of the "details" and made it less hectic on us throughout the whole process. And, darn it, you're just such a nice, likeable guy!" -Greg and Amy Brill
"In April 2006 we spontaneously bought a new home prior to selling our existing house. The real estate market in general had slowed considerably and we had a few sleepless nights wondering if we would be able to sell our existing house prior to the close of escrow on our new house. We had talked with Ray & Paul previously about selling our house, but we were never quite ready. So, when we called Ray and told him what we had done he immediately prepared a market analysis to determine a market value range for our house. Ray and Paul both counseled us on what was going on in the market and gave us some suggestions regarding how to price our home given our needs. Ray and Paul understood our position and helped us arrive at an asking price that would be attractive to buyers and yet fair and acceptable to us. We received two offers. Paul negotiated the offer we eventually accepted, which was at our asking price. ... We can say that our experience with Paul and Ray's real estate services and results far exceeded our expectations and we appreciate them for their real estate knowledge and being there through the whole transaction. We would highly recommend their services to others. They would be the first people we would call if we needed to buy or sell real estate in Arizona." -Dave & Barbara
I just wanted to take a moment to send my sincere thanks to you for the job you did selling my home. I was extremely impressed by your work ethic and professionalism through the entire process. The AZ market is a tough one to price right and the hard work you put into sales research, finding the right comps, and analyzing market curve placed it right where it needed to be to get the home sold quickly and get the margin I was looking for. I was also impressed at how quickly the deal was put together even though I was out of town and signing documents via fax and email! So thank you so much for everything. I intend to do all of my future AZ real estate business through you! -Jason de Queljoe
"Ray and Paul sold two homes for us and we would enthusiastically recommend them to anyone. They guided us through every step of the process and helped us to achieve top dollar for our properties. They really care about their clients and are a pleasure to work with."
-James S. Collofello
"Jenn and I enthusiastically recommend Paul Slaybaugh to anyone who wishes to purchase or sell a home in Phoenix. We worked with Paul to purchase our new home and sell our condo. Throughout the entire buying/selling process we were very impressed with Paul's knowledge and his responsiveness. He helped us work through the mortgage process and assisted in setting realistic expectations for the home we wanted to purchase. Paul listened patiently to us and learned our likes/dislikes as we visited several properties. In the end, the home we purchased with Paul exceeded our expectations and the condo we sold brought a strong sales price. Even now, a year after the purchase of our home, Paul continues to be a resource whenever we have questions. At no point in working with Paul will you ever feel like you're just another sale. It is no surprise that Paul was recommended to us from a very successful realtor-friend in Southern California who uses Paul exclusively to purchase investment properties in the Phoenix area." -Rob and Jenn
"I met Paul through his sister and he was a fantastic realtor! He was very patient with me as a nervous first-time homebuyer. He took the time to explain things to me and helped make the whole transaction go smoothly. I told him exactly what I was looking for in a home and he found it after only a week! I have been living in my dream home for four years now and I couldn't be happier! I would highly recommend Paul to anyone looking for their perfect home!" -Lisa McCandlish
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