Same House: $75k Less in Gilbert vs Chandler - What to do? (Mesa: apartment, renting)

[sterbz]

Hi all. I am in a price vs. location quandary that I need to respond in regards to within the next 24 hrs. The builder and home are identical. The price and location aren't. Please let me know your thoughts:

Location 1 Details:
Chandler
Germann & Dobson
One of the very last new build developments available in "core" area
Sales were at 1 or 2 per month since May '07
There were suddenly 14 contracts written in Feb '08 after a $45k incentive increase in January, and now they have pulled $10k back from the incentive after the stronger sales
Base lots are 60 x 120

Location 2 Details:
Gilbert
Val Vista & Queen Creek
In the heart of all kinds of new construction, but not on the far out fringes of humanity. All amenities are already in place. It'll just be an area under construction for awhile.
Sales have been between 1 & 2 per month since development inception and have stayed there
Additional $60k incentive was added over the weekend
Base lots are 65 x 125
Still in the Chandler Unified School District

Debate:
I've priced out the same home in both developments, knowing which lot I'd choose, options, etc. All things considered, for the exact same home by the exact same builder, I am looking at $400k in Gilbert vs. $475k in Chandler for 3280sf (2200 single story + 1100 furnished basement).

I would be staying there for at least 5 yrs as a primary residence. I'm currently renting an apartment so selling my current residence is not an issue. $10k of the Chandler incentive will be lost if I don't sign within 24 hrs (the pullback mentioned earlier...no more back-dating possible).

I understand location, location, location, and that carrying a premium, but the Gilbert location is only 8.5 miles from the Chandler location, and the premium is nearing 20%. Do you feel this is justified?

A Chandler vs. significant outlying area comparison would be a no-brainer. But this is East Valley to East Valley. If I chose Gilbert, I'd basically be building a home in an area that is exactly what Germann & Dobson was 2 years ago.

I'm majorly struggling here and am seeking advice.

Thanks in advance!

[aj661]

We faced the same dilemma about 12 years ago, same builder, same home, different locations, similar lot sizes but 20k price difference. For us it was Gold Canyon vs Red mountain in far north Mesa. Both areas turned out just fine over the years. We ended up in Gilbert in an even better location. (Waking distance to Freestone Park)

If it were me, it would come down to the money. What can you do with the cash if you buy the cheaper of the two? Maybe put it in your children's college fund or buy a new Mini Cooper for commuting. Secondly, five years is not a long time to own a house. The ones we've owned for less than 10 years either were break even or cost us money. The extra 8-8.5 miles is a non-issue since both are very close to the 202. Both are big homes on tiny lots-the five feet extra in each direction might be worth it also. It sounds like you've weighed the pros and cons and it's almost a toss up. If that doesn't do it, follow your gut feelings.

Good luck on your decision.

[JoePAz]

This is a very classic price vs location. In the end we can't decide for you. It comes down to how much you will like the location vs making higher payments. 8.5 miles can be a long way or a short way. Good neighbors vs bad neighbors can be worth alot.

[Ponderosa]

It's not like this is Tolleson versus Gilbert (sorry Tollesonians). Chandler and Gilbert are tweedle-dee, tweedle-dum. So it turns on the commute/convenience factor in my opinion.

[Captain Bill]

At Val Vista and Queen Creek you are close to a lot of shopping areas, restaurants, and movies; and very close to the new Mercy Gilbert hospital at the 202 and Val Vista. You're 2 miles to get on the 202 for commuting anywhere. There are a couple of large auto malls to have your car serviced if needed. Everything is right there.

There is new construction going on and it's going up fast.

If I were making that decision, it would be the Gilbert location.

[artvandelay]

Ponderosa, thanks for the reminder.

[AZ Tracy]

If I'm guessing correctly, you are looking at a Maracay home? If so, I think there is a quite a difference in HOA fees. Another consideration would be schools....is being real close to a high school a positive thing, or detrimental?

[azcater]

All things being the same.. if it were me I would take the Gilbert location and spend less money. But if AZ Tracy is saying the Gilbert home is next to a high school, yes.. I would hesitate. We lived in a subdivision that is across the street from Gilbert High School and it was terrible! Something I would never do again. I have no idea if this helps you at all!

[aj661]

Originally Posted by azcater

All things being the same.. if it were me I would take the Gilbert location and spend less money. But if AZ Tracy is saying the Gilbert home is next to a high school, yes.. I would hesitate. We lived in a subdivision that is across the street from Gilbert High School and it was terrible! Something I would never do again. I have no idea if this helps you at all!

Really? We did too and except for the traffic, Gilbert HS never caused us any grief. Were you in the Fulton's just north of the school? What was so terrible?

[sterbz]

Thanks for the replies.

Yes, it's Maracay homes.

The convenience factor is minimal. The daily drive to work wouldn't bother me (9 miles vs 1.5 if I were to pick Chandler), and the drive to play in Tempe/Scottsdale or the airport wouldn't be often enough to make a difference.

The schools are still in Chandler Unified. A HS is at the N of the sub, built in July '07, and an elementary school is across the street at the S of the sub. It's gated, so hopefully the traffic wouldn't continually cut through there. I'm curious to hear why living so close to a school is a bad thing. There are schools built into subs these days. Not necessarily high schools, so I assume that opinion is directed towards kids' behaviors at that age?

HOA fees are $98/mo at Gilbert due to the private road structure. $65/mo in Chandler. I've also gotten an agreement for 2 yrs of no HOA fees at Gilbert.

My gut is telling me that I don't know what to do I already thought I had bought my dream house once, and that turned majorly sour on me. It was in MI, before my whole career turned upside down with the auto industry collapse.

I'm pretty much down to the wire now before I lose the extra $10k in Chandler. I just wish the lots were a little bigger there, and that the options pricing matched up. But they're not, and it doesn't. I'd still be at nearly $150/sf in Chandler, and I think that's too high when resales in neighboring communities are only getting $120/sf, and they're taking a long time to sell.

But why the sudden jump in interest in Chandler in Feb?

If either development were to add a "price guarantee until closing" addendum to your purchase contract, would that change your opinion? For example, if incentives increased before COE, I would get the difference.