Buyers market.... really? (Mesa, Chandler, Gilbert: power lines, house, safe area)

[Vinny536]

Originally Posted by Captain Bill

There are homes available under $200k in good areas of Mesa, Gilbert, and a few in Chandler. In Gilbert they will be smaller homes, like 3 br 2 bath and around 1500, 1700sf. In Chandler they are older homes, circa 1970's.

I have one in a gated community in east Mesa (in the Gilbert school district) that was built in 2004, has 2370 sf and in move in condition for under 200k.

I have another one in another area of east Mesa with a pool built in 1998. We haven't closed on that one yet and haven't determined a selling price, but it will be less than $200k

So they are available under $200k in good areas, and more are coming available.

And for those of us that like the outlying areas houses can be had for even less. I just bought my new construction 3 bedroom 2 bath 1300 sq foot house in a lake community (NOT a lake lot) for $130,000.

I know its not for all, but for me it works out perfect. I'm in a small, new, growing community with low crime rates, 30 minutes from the airport and 20 minutes from my job. Also, as I calculated in my earlier post, It would take longer than the term of my mortgage to make up the price difference of a home in chandler near my work versus the fuel i will use commuting to work.

[foma]

Originally Posted by blueeyz911

I totally understand where you are coming from. I feel the exact same way. It may be hard for people with lots of extra money or people that already own a home to understand how frustrating it is for a first time buyer who needs to get a home and does not want to continue renting.

Can I join the club? I've noticed the houses I can afford are in bad neighborhoods and the houses I like are still in the "unattainable range". It is very frustrating!

[Captain Bill]

Originally Posted by Rick Lee

Careful there with fudging sales prices for the purpose of maximing seller assistance. If an FHA appraisal comes in low, it ruins everyone's day pretty quickly. I don't know if this is still the rule, but I had it happen about 10 yrs. ago when I was a loan officer. If that appraiser files the appraisal with FHA, regardless of list price, no one can get an FHA loan on that house for more than that appraisal amount for six mos. So, if you're offering $200k on a house listed for $220k and the appraisal comes in at $195k, no one can get an FHA loan on that house for more than $195k. And that just makes sellers refuse to deal with FHA borrowers or take the house off the market. FHA also requires sellers to pay for certain closing costs that they might not be willing to pay. If a listing says seller will not pay any borrower closing costs, FHA is not feasible. I don't even think FHA will allow a borrower to pay closing costs that FHA requires the seller to pay. It's kinda strange. But FHA is still a smoking deal if you can find the right house.

I completely agree with you that one must be careful, and must be sure of the market value of a property in order to make that price adjustment.

What I'm referring to is a home priced at a discount to the market where we're sure of what the appraisal range will be.

We buy homes at a large discount to the market, get them prepared to resell to the end user, and price them at a discount to the current market at a price point that will generate a quick sale. We consider 30 days a quick sale. In the past we would not sell FHA because we had to hold the home for 90 days.

When my partner and I price a home to sell, we know the value, because we both do mini-appraisals, or BPO's, for banks. (Actually, we know the price range we can sell a home for before we buy it, and the range will depend on the amount of work we decide to do on the home.)

We perform a number of BPO's every day, so we stay on top of how to determine a selling price for a particular home, and know that we are using the same tools and resources that the appraiser is using, so we're going to be in the ball park. Knowing the restrictions on the use of comps that the appraiser have, which is very close to the BPO restrictions, our numbers will be very close.

We feel confident that when we say the home is priced at $200k and the market value is $230k, that the home is going to appraise at that price. If we were to sell the home at 200k, under market, and the buyer wanted 6% then we would counter at $212k and accept the 6% concession. We know the house will appraise for more than that amount. The LSR will show us how much the buyer is qualified for.

[blueeyz911]

Originally Posted by azriverfan.

Under 200,000? Not trying to be rude but at some point you have to get realistic here. I understand you want a home and are frustrated by living in an apartment but this isn't Omaha. I mean if you can't afford a home over 200K, it's time to start looking elsewhere. I don't know if you will be able to ever find a home that cheap in a safe area even with these lower prices.

I think she is being very realistic. Not everyone can afford a home over $200,000. There are plenty of nice homes in nice areas right now for under $200,000. You can find some very nice homes in North Phoenix for under $200K. I'm not trying to be rude, but where you have been lately? I just bought a bank owned foreclosure for $108,000 in a nice area too. I'm out of the city but that does not matter to me.

[Captain Bill]

Originally Posted by foma

Can I join the club? I've noticed the houses I can afford are in bad neighborhoods and the houses I like are still in the "unattainable range". It is very frustrating!

forma, if it will make you feel better, most of the people who are in homes were first time home buyers at one time, and went through the same frustrations you are going through.

Not everyone was born with a silver spoon. I certainly wasn't. My parents didn't own a home until I was 16 years old.

I've mentioned before that there are homes available for first time home buyers under $200k.

If you are looking in the close to $200k range, then you may be able to find what you want, unless your expectations of what the house should be like is too great. What are you looking for?

[foma]

Originally Posted by Captain Bill

forma, if it will make you feel better, most of the people who are in homes were first time home buyers at one time, and went through the same frustrations you are going through.

Not everyone was born with a silver spoon. I certainly wasn't. My parents didn't own a home until I was 16 years old.

I've mentioned before that there are homes available for first time home buyers under $200k.

If you are looking in the close to $200k range, then you may be able to find what you want, unless your expectations of what the house should be like is too great. What are you looking for?

I must admit, there is a part of me that prob has high expectations for my "first home" but I am aware of that and will keep an open mind when we start looking next year. We currently live in Buckeye and I definitely know I do NOT want to buy a home there.

There are two main parts of the house that I have to like: the kitchen and the master bedroom. Everything else is negotiable as far as the way the house is set up. Preferably one story but I'm open. I'm actually very flexible!

We haven't really started looking seriously so perhaps I'm jumping the gun a bit but from what I've seen that I like in a house, it's usually in the high range prices (that goes back to high expectations!). I will probalby have to make concessions when we really start looking!

[GilbertMom]

Would someone mind explaining the wide disparity in square footage pricing? It is all over the map. For instance, some small homes in our neighborhood have sold for around $160 sq. ft, while some much larger (over 3,000 sq. ft.) homes are selling for $90 sq. ft. We paid about $72 sq. ft in 1999 and have upgraded our kitchen to granite and stainless steel, installed hardscape in our front and back yards, added an additional driveway and RV parking, have over 25 mature trees with citrus and fruit, but the market apparently doesn't want to take our upgrades into consideration (according to a fairly recent appraisal.) Our neighborhood doesn't have many houses for sale, maybe 10 out of 240 and we only had one or two foreclosures. What is the sq. footage price based on? You couldn't build our house now for less than 500K (on a 1/4 acre lot,) but the market says 400K. What gives?

[azriverfan.]

Originally Posted by GilbertMom

Would someone mind explaining the wide disparity in square footage pricing? It is all over the map. For instance, some small homes in our neighborhood have sold for around $160 sq. ft, while some much larger (over 3,000 sq. ft.) homes are selling for $90 sq. ft. We paid about $72 sq. ft in 1999 and have upgraded our kitchen to granite and stainless steel, installed hardscape in our front and back yards, added an additional driveway and RV parking, have over 25 mature trees with citrus and fruit, but the market apparently doesn't want to take our upgrades into consideration (according to a fairly recent appraisal.) Our neighborhood doesn't have many houses for sale, maybe 10 out of 240 and we only had one or two foreclosures. What is the sq. footage price based on? You couldn't build our house now for less than 500K (on a 1/4 acre lot,) but the market says 400K. What gives?

Its' the location not the home itself that determines price per square footage. It's sad but true. The same builder will charge you more to build a house in Scottsdale than Chandler simply because of the area. Regarding upgrades, you would be suprised but very few things actually increase the value of your home that are worth the cost of putting them in. Energy efficient appliances are an upgrade that does increase the value of your home whereas putting in a pool or hottub will not increase the value of the home that much.

[sablebaby]

Originally Posted by GilbertMom

Would someone mind explaining the wide disparity in square footage pricing? It is all over the map. For instance, some small homes in our neighborhood have sold for around $160 sq. ft, while some much larger (over 3,000 sq. ft.) homes are selling for $90 sq. ft. We paid about $72 sq. ft in 1999 and have upgraded our kitchen to granite and stainless steel, installed hardscape in our front and back yards, added an additional driveway and RV parking, have over 25 mature trees with citrus and fruit, but the market apparently doesn't want to take our upgrades into consideration (according to a fairly recent appraisal.) Our neighborhood doesn't have many houses for sale, maybe 10 out of 240 and we only had one or two foreclosures. What is the sq. footage price based on? You couldn't build our house now for less than 500K (on a 1/4 acre lot,) but the market says 400K. What gives?

The bigger the home the cheaper it is per square foot on average. It's like buying in bulk. LOL The more you buy the cheaper it is per unit. Seriously, that is how it is with housing.

[GilbertMom]

Originally Posted by azriverfan.

Its' the location not the home itself that determines price per square footage. It's sad but true. The same builder will charge you more to build a house in Scottsdale than Chandler simply because of the area.

These prices are all for homes in my neighborhood or adjacent neighborhoods-- all in the same Zip code. That is what is troubling me. Especially the disparity in sq. footage price between very small homes (1300-1800 sq. ft.) and very large homes (2400-4400 sq. ft.) I guess it has to do with how many people can afford a 300,000 home as compared with a 500,000 home.