help: bought a house, under construction, thinking to drop (Phoenix: for sale, mortgage)

[sheena]

Originally Posted by arun196

Hi all,

I bought a house in baseline rd, 35th ave in courtland homes around 2700 sq.ft including upgrades coming upto 290,000. I made a down payment of 3000$ and expecting the house to be build by oct-nov 2007. Looking at the phoenix market and median home prices going down. And everyone is telling me baseline is crime ridden area. I'm thinking its a bad time and bad neighbourhood to buy a house. I'm thinking buying a home around dec 2008-june 2009 will be a good time. As I made a down payment of only 3000$, i'm thinking to back off from buying this home.

Any ideas????.

Yeah walk away fast! 35th and Baseline 290,000 what were you thinking?

You must have found this forum after the fact. New people need to really investigate before buying in those areas.

[sheena]

Originally Posted by Magnum Mike

I wouldn't back out of it because 290,000 is a bargain, compared to what it will most likely be 10 years from now. Don't let the median price of a home in the metro Phoenix area discourage you from buying a house now because that happens sometimes. Overall, when buy real estate, you don't buy for the short term.

Also, see if you can negotiate a lower price with the builder that's comparable to the value of other similar homes in the area.

That's true she can always bullet proof her walls and not shop locally.

I would have sold her my 4/3 home in Gilbert with a pool and spa for 290,000 but I only sold it for 276,900.

[sheena]

Originally Posted by foma

$290K a bargain in a supposed crime-ridden area? Man, I really know nothing about buying homes in the PHX market! I'm really not trying to sound like a smart-alec. DH&I are first time homebuyers and haven't lived in PHX very long.

For not knowing nothing you know something and you are right.

[country pride]

Prices will drop. A lot of builders and sellers right now are desperate because this 'pyramid' has maxed out and homes arent selling. Many are foreclosing because the sellers have already moved out and were relying on a buyer for the old home, they end up losing because they cant afford to keep 2 house payments going. Its been in the newspapers nearly everyday now for several months, how sellers are having a tough time and many just dont have a choice but to come a little lower, or they just give up trying and end up renting it. And the way it looks now, they'll go down a little more before they come back up again. They may never go back down to where they were 3 years ago but at least there might be a little hope for some who want to buy.
Dont know that you'll get your 3k back but at least you learned about the neighbourhood before actually moving there. That is one of the not-so-safe areas to live and Im surprised that anything out there is worth that much. Id wonder what someplace, nicer area, would cost....?

[Ponderosa]

There's been a lot of comments on how much crime there is in this neighborhood. Can anyone back that up with facts? I looked at the crime map thing posted in the other thread and SURPRISE, there has been very little crime in that area in the last six months. It would qualify as one of the safer neighborhoods if that display is to be believed.

When I lived in S. Phoenix, the reputation was far worse than the reality. I think maybe it still is.

[sablebaby]

Originally Posted by Ponderosa

There's been a lot of comments on how much crime there is in this neighborhood. Can anyone back that up with facts? I looked at the crime map thing posted in the other thread and SURPRISE, there has been very little crime in that area in the last six months. It would qualify as one of the safer neighborhoods if that display is to be believed.

When I lived in S. Phoenix, the reputation was far worse than the reality. I think maybe it still is.

You also have to remember that in lower income/poor areas, not all crime is reported. I wonder what the percentage is that is actually reported? That of course can be said in many neighborhoods, but I believe more so in these types of areas.

Reputation is all I need to stay out of a place. Who was it today that said that pride of a neighborhood/city is important? I agree with that point.

[arun196]

Originally Posted by sheena

Yeah walk away fast! 35th and Baseline 290,000 what were you thinking?

You must have found this forum after the fact. New people need to really investigate before buying in those areas.

l

yeah, but for 2700sqft, i would be paying 100k more in chandler or gilbert for a new house. My wife will be studying in asu and I work on 51st, elliot. I really cant find anything close to my work and asu within my price range other than laveen.

Most of the new houses in baseline 48th st-61th ave for a new house for over 2700sqft is notting less than 280k including upgrades.

[Axiom]

I'm with Boatdrinks on this one.

If you're really concerned about the area, take the $3,000 hit and get out now. Much easier than going through with the deal and being unhappy and/or trying to sell just a year or two in.

If you're just getting cold feet because you think prices might continue to drop... I'd think long and hard about losing $3,000 on that gamble. Sure it could pay off, but it could just as easily backfire on you.

I know you've stated that you're interested in new construction, but there are some smokin' deals on resale properties out there right now. Have you considered going that route at all?
In this market many sellers have upgraded and re-done up the wazoo trying to attract an offer. Might end up being a much better deal to buy a move-in ready resale than going with new construction.
Just a suggestion.

[Gretchen B]

Just a couple of thoughts here. First off, look for the part in your contract about any possible refund of earnest money. It is very unlikely on a new build you could get it back, but find it in the contract before you give up on that.

Secondly, I don't live in Phx, so I only know that part of town from having driven through there a time or two. From the other posts, sounds like a questionable neighborhood, to say the least. However, I do know of a couple of areas in Denver that were originally really nice areas, then they became blighted areas, but later because it was such a great location (as in close to downtown, etc) with well-built brick homes, etc, people gradually starting buying in there and fixing them up. Now that area is one of the trendiest areas in the city. So . . . the people with the future vision made a killing. Could this be one of those kinds of areas, or this area destined to continue to decline? If that's the case, figure your $3k was a small price to pay to save additional 1,000's down the road!

[sablebaby]

Originally Posted by arun196

l

yeah, but for 2700sqft, i would be paying 100k more in chandler or gilbert for a new house. My wife will be studying in asu and I work on 51st, elliot. I really cant find anything close to my work and asu within my price range other than laveen.

Most of the new houses in baseline 48th st-61th ave for a new house for over 2700sqft is notting less than 280k including upgrades.

Then you downsize! Of course your not going to find the same deal in better areas, there's a reason for it. Location, location, location. What people do to get in a better area is buy a smaller home. You could get a house that is 1000sf smaller in a MUCH better area for the same price.

It seems like we are beating a dead horse here. Your concern was if that market is going down further and not about location. But if you listen to RESIDENTS of phx, we (most of us) are telling you the location sucks. If it's a bad location then most likely you WON'T be making much on your home in the long run. Ever heard of buying the smallest house in the best area?? There's a huge reason to do that. Think about it.