Housing prices-high or low? (Phoenix, Chandler: best neighborhood, short sale, for rent)

[LeprechaunSean]

Ok, when I do a search of almost any area of phoenix(greater area) you can find some decent looking single family homes under 100k. I see people on here all the time talking about spending between 200-400k. So why would you want to spend more instead of less? is it investment? even if you had to put 10-20k into a 100k house you still come out ahead.

[Ponderosa]

Originally Posted by LeprechaunSean

Ok, when I do a search of almost any area of phoenix(greater area) you can find some decent looking single family homes under 100k. I see people on here all the time talking about spending between 200-400k. So why would you want to spend more instead of less? is it investment? even if you had to put 10-20k into a 100k house you still come out ahead.

Don't do it. Even if you find one like that it is guaranteed to be in a current or future ghetto. If it sounds to good to be true, it is. People spend more because they don't want to live in a shooting gallery.

[thedreamteam]

Originally Posted by LeprechaunSean

Ok, when I do a search of almost any area of phoenix(greater area) you can find some decent looking single family homes under 100k. I see people on here all the time talking about spending between 200-400k. So why would you want to spend more instead of less? is it investment? even if you had to put 10-20k into a 100k house you still come out ahead.

the market is very efficient, i am sure the $100k house is not the same size, in the same neighborhood and same age as the $300k house.

[azcater]

Oh come on... not all houses that are under 100k are in a scary ghetto shooting gallery.
If you search Queen Creek, you will see some very nice modest homes from 70k on up... The ones under 70k seem to need major work, or have some very big drawback. But I just spent 2 days touring homes in Queen Creek (specifically JOhnson Ranch) and there are some excellent deals to be had in nice neighborhoods. Plus if you travel via Ironwood it's only 16 minutes to the 60 from Johnson Ranch, not bad!

[Ponderosa]

Originally Posted by azcater

Oh come on... not all houses that are under 100k are in a scary ghetto shooting gallery.

Not yet. Give it time. Anyone who has been in Phoenix for a few years knows what happens to low priced neighborhoods. If I were a realtor, which I am not, I would not advise a client to purchase a cheap house unless a) it's all they could afford or b) it's for rental/rehab. The exception might be if the overall neighborhood is selling for much more and the house is a dump that needs fixing up to bring it to the neighborhood standard. Buying in a future slum is no way to save. Buy the best house in the best neighborhood you can afford.

[SOON2BNSURPRISE]

I have seen some great deals in Surprise and I don't consider it a dump. It is a drive to the airport, or downtown. My thoughts are to buy something that you would live in 10 years from now. Look at the area and if your best guess is that the development will be a viable community 10 years from now, you may have a winner on your hands. For me, Surprise is that kind of place.

[azcater]

Ponderosa, I understand what you are saying.. but it doesn't fit the Johnson Ranch profile. Johnson Ranch and slum just don't go together.

[Rick Lee]

I've seen some dumps for in the $200k's that you couldn't give me. I can't imagine how bad a $100k or less house is unless it's someplace where no wants to live, in other words, not likely to appreciate. A house we're close to putting an offer on is a short sale for $280k. The last time it sold, it went in 2005 for $560k. So, if we can get it for a little less than asking price, we're below 50% of the peak. House is the kind you see in magazines. I'm in love with it and it's going for a relative song.

[azcater]

Well of course, a 560k house is going to be awesome.. but don't make blanket statements about areas in which you know nothing about. Have you even be to Queen Creek lately? I'm fairly confident when I say that if someone buys an $80k house in Johnson Ranch that they will see appreciation, just not in the next few years. These houses were just as grossly overpriced as many other areas a couple years and they've been hit hard because it's on the outskirts of town, but it doesn't mean the area is a slum or the houses are disgusting and no one wants to live there. Here is an example:

Moderator cut: realtor links not allowed

[he's so hott]

Sure. But it is in QUEEN Creek. That's too far out on the edge. I knew this woman who bought a house out there in 2005 and she sold it a year later because she wanted to be closer to her friends, job and things to do. It was just too much of a trek for her friends to hangout with her and visa versa. Potential buyers take those kind of things into consideration when buying a home.

When I do move back to the area there is no way I would buy in QC or Maricopa. No matter how low-priced the home is. I'd rather be closer to the things I like to do and closer to friends. If that means holding off on buying a home until I could afford something in Chandler or Gilbert then that's what it is.