Should I Buy a $750,000 home in gated community for $500,000?? (Scottsdale: short sale, selling a home)

[patty8]

I'm considering making an offer on a home in a short sale situation. $750,000 was the purchase price of the previous owner, the realtor says $500K will get it done and avoid forclosure. Home is 3,900 sq ft, one level, beautiful craftsmanship, 4 car garage, swimming pool, gated community, 1/3 acre lot, 3 years old, south chandler area. Should I wait for market to settle, or is the price a good enough deal to move forward? Any advice would be great.

[Captain Bill]

Is the agent who recommended $500k the listing agent, or your agent?

If you are represented by an agent, then s/he should have prepared a CMA for you showing the recent Sold homes, Expired Listings, and Active listings in order to help you determine todays value.

If you are not represented by your own agent, then you should be. You do not want to enter into a dual agency agreement with an agent who is representing the bank in a short sale. You need an agent who is your agent and working only for you. The bank will pay his/her commission.

From the assessment of the market in that area, along with the condition of the home, the neighborhood, etc your agent can help you determine what the home is worth "today".

What the previous owner paid for the home is not revelent.

While $500k is $128 per square foot, and seems reasonable for a 3900 sf home in south Chandler, I would not attempt to advise you on the value without having seen the home and performed a comparative market analysis.

I know the south Chandler area pretty well, and most of it is good, with a lot of old established communities with excellent homes.

If you plan on being in your home for at least 6 years, then you should be ok. If you may have to sell in a couple of years, then you may wish to wait. The decision should be made by your needs today, and your possible needs tomorrow.

[ILuvAZ]

What gated community is it? I'm just curious if youre comfortable sharing. Thanks!

[SOON2BNSURPRISE]

I would say that a home selling for $500,000 is only worth $500,000. Homes are worth what people are prepaired to pay for them. Maybe there are people that are willing to offer $750,000 for the home, and maybe there aren't any that will. Chances are if more people will only pay $500,000 for the home then that place is only worth $500,000.

[londonbarcelona]

Originally Posted by patty8

I'm considering making an offer on a home in a short sale situation. $750,000 was the purchase price of the previous owner, the realtor says $500K will get it done and avoid forclosure. Home is 3,900 sq ft, one level, beautiful craftsmanship, 4 car garage, swimming pool, gated community, 1/3 acre lot, 3 years old, south chandler area. Should I wait for market to settle, or is the price a good enough deal to move forward? Any advice would be great.

I think 750K is a lot for S. Chandler. Gated or not...

[sheena]

Originally Posted by patty8

I'm considering making an offer on a home in a short sale situation. $750,000 was the purchase price of the previous owner, the realtor says $500K will get it done and avoid forclosure. Home is 3,900 sq ft, one level, beautiful craftsmanship, 4 car garage, swimming pool, gated community, 1/3 acre lot, 3 years old, south chandler area. Should I wait for market to settle, or is the price a good enough deal to move forward? Any advice would be great.

I agree with London S Chandler 500K? If you want to buy and spend that kind of money look in Scottsdale.

[ILuvAZ]

Originally Posted by sheena

I agree with London S Chandler 500K? If you want to buy and spend that kind of money look in Scottsdale.

That's a ridiculous thing to say... there are plenty of 500k and above houses in Chandler. Not everyone wants to live in Scottsdale.

If it were me and I were looking to buy a resale today I would probably have the realtor tell me what the comps were selling for in say... 2003 ... and go from there. I'm not saying that's the price you should pay but it would put things in prospective. Good luck!

[HTPR]

Hi all! New here but been reading for awhile.......interesting I must say!!

Anyway I just bought a TW Lewis home in Estrella that sold for $516 two years ago. Builder listing today is $650 and they are trying to close out at 20% less.

I bought this resale for $410 and it is better than new as finished inside, outside, and garage. It was appraised at only $450 but still a great deal.

I am selling a home in Buckeye, 2500 SF, 4B, 4C that is tax assesed at $275, was appraised by BofA in January of 2006 at $380. It's been on market for 9 months starting at $288, down to $230 and have offers yesterday finally!

This market is whacked but good deals are around. My advice, based on my tow experiences here, is if you are serious about a house spend the $300 for a professional appraisal to see what reality is today.

I would have thought what i am buying is worth more, but I'm still really happy as other comps on the market now are in the high 4's and low 5's.

While on the other hand I'm getting out by the skin of my teeth only because I bought in 2004 and value is in the toilet. Good luck and I hope you get what you want!!

[londonbarcelona]

Originally Posted by ILuvAZ

That's a ridiculous thing to say... there are plenty of 500k and above houses in Chandler. Not everyone wants to live in Scottsdale.

If it were me and I were looking to buy a resale today I would probably have the realtor tell me what the comps were selling for in say... 2003 ... and go from there. I'm not saying that's the price you should pay but it would put things in prospective. Good luck!

I don't think Sheena meant any kind of disrespect. There is nothing wrong with S. Chandler, however, for 500K it is fairly easy to find a nice house in Scottsdale with a better reputation and school districts.

[Jaded]

Originally Posted by patty8

I'm considering making an offer on a home in a short sale situation. $750,000 was the purchase price of the previous owner, the realtor says $500K will get it done and avoid forclosure. Home is 3,900 sq ft, one level, beautiful craftsmanship, 4 car garage, swimming pool, gated community, 1/3 acre lot, 3 years old, south chandler area. Should I wait for market to settle, or is the price a good enough deal to move forward? Any advice would be great.

patty8: Unless I misunderstand your question, it would probably be better presented to a financial advisor you trust...and no, I'm not one. This is just my $.02.

It's quite a risk, financially, to ask a forum whether or not you should spend a half a million dollars on a home...afterall, none of us will be there to bail you out if you decide to take the advice offered here