by Paul Slaybaugh | Jul 13, 2010 | Home Buying, Scottsdale Real Estate
The current Scottsdale Real Estate market does not favor buyers. I repeat, the current Scottsdale Real Estate market does not favor buyers.
Allow me to explain. For months, if not years, you have been told that the glut of housing inventory here in the greater Phoenix area makes for a buyer’s market of epic proportions. Why, the ancient Greeks themselves would write songs about the opportunities that abound for any would-be hero with a hankering for a house. The only problem with this suggestion? It’s just not true.
What is a buyer’s market? Most would define it as a preponderance of available supply and an accompanying dearth of demand. Let’s take a look at both aspects of that equation.
In a perfect financial world, a buyer waits for the market stars to align in just such a manner before swooping in to claim a nest at a fraction of the “normal” cost. It all works great in theory, but real world application necessitates that the prospective buyer be subjected to the same set of variables that has drawn down the pool of demand at large. It’s a buyer’s market when few have the wherewithal to actually buy.
Appraisal difficulties and tightened lending regulations are contributing to a somewhat artificial suppression of demand. The “want” is present in the market. Consumers want to buy houses. They want to take advantage of the greatly reduced pricing and sublimely low interest rates. Homeowners want to refinance their houses so that they can stay in them, thus contributing to the lowering of the overall supply.
Want has nothing to do with it. Without ability, all of the consumer confidence and desire does not translate to actionable demand.
So to clarify the lead-in to this post, the current Scottsdale Real Estate market does not favor ALL prospective buyers, as the “buyer’s market” connotation suggests.
Further, the favorable conditions for those who are in positions to purchase do not necessarily translate to negotiable strength. Well-heeled cash buyers, W2 employees with verifiable income, solid credit history/scores, etc will find that they do not call the shots to the extent that they were led to believe. The bargain bin of bank-owned foreclosures is incredibly crowded. You are elbow to elbow with competing consumers when a new shipment arrives. The mom & pop resellers, by and large, do not have the equitable flexibility to negotiate the 30-50% off of list price that many buyers envision. The short sale properties with the absurdly low price tags are, more often than not, pie-in-the-sky figments of the listing agent’s imagination. You submit an offer 10% off list price to the bank, which in turn proves to be 40% off the BPO (Broker’s Price Opinion) that is performed three months later. The bank tells you they will gladly approve the sale – for 75k more than you offered.
While the inflated inventory levels in the housing sector are cited often enough, it is not widely reported that the number of unencumbered properties available for purchase is far less. In a market that is most assuredly not of the “see house, buy house” variety, the redaction of readily purchasable properties (due to competition in the low end, and lien encumbrances across the full pricing spectrum) tilts the negotiation playing field back towards center. Neither party has a clear cut advantage when facing each other at the negotiating table.
The truth of the matter is that most of the savings that you can expect to uncover have already been factored into the asking price by the time a listing is brought to market. Sure, there will be those that require substantial negotiation, and plenty others still that simply fail to sell. Never underestimate one’s ability to overprice a house. These aren’t the homes you are most likely looking at, though. The ones that buyers are flocking to in droves are those that present the best value opportunities. And why not? Just be prepared for the competition that you did not think existed in this ballyhooed “buyer’s market.”
Trying to cobble “x” percent off the list price in circumstances in which others are offering “x” above the list price will only lead to frustration. Don’t get greedy. Do what it takes to lock up the lowest pricing the Valley has seen for seven to eight years (longer in some areas) while interest rates continue to hover around 5%, and you are well ahead of the game.
And lastly … smile. You are the guy that so many lament not being right now. You know, the hypothetical guy who spurs such proclamations at office parties and cocktail hours all across Scottsdale:
“If I had two nickels to rub together right now, I’d buy every house on my block for less than I paid for this albatross back in ‘05.”
by Paul Slaybaugh | Jul 11, 2010 | McCormick Ranch Subdivisions
Cuernavaca Segundo (known to many by its marketing name, “Colonia Encantada”) in McCormick Ranch is a guard-gated, luxury patio home community. Developed by Geoffrey Edmunds as the sister subdivision to the original Cuernavaca subdivision (located on Scottsdale Road, just South of Indian Bend Road and the McCormick-Stillman Railroad Park), Cuernavaca Segundo lies along McCormick Parkway, across from Camelback Lake, the Millennium Resort and the McCormick Ranch Golf Club.
For Scottsdale patio home buyers with a discerning eye, Cuernavaca Segundo is a good place to start and stop the search. Out of reach for those on more modest budgets, it is a rival to Gainey Ranch for security-conscious, high end shoppers.
- Legally classified as townhouses, Cuernavaca Segundo is comprised of 42 total properties: 16 of which are single level, and the remaining 26 2-stories.
- Not your average townhouse / patio home community, the average size home is approximately 3026 square feet.
- 10 properties feature private swimming pools.
- Zoned R-4 for residential lots with 4000 square foot minimums.
- Construction dates range from 1979-1981.
- Block construction w/ stucco finish, tile roofing and 2 car garages are standard.
- Kiva Elementary | Mohave Middle | Saguaro High School districts
- HOA fees of $415 /month in addition to annual $185 McCormick Ranch PAD fee (current as of time of posting)
- Dues include front yard & common area maintenance, manned guard gate, heated community pool & spa, community tennis court(s) and clubhouse.
View Cuernavaca Segundo home floor plans
Before you get too excited about this subdivision, know that Cuernavaca Segundo, aka Colonia Encantada, is for those with the wallet to match their discriminating tastes. With the low end of the pricing scale still firmly entrenched in the luxury market, it is not unusual to encounter asking prices in excess of $1 million.
For those with a penchant for the lock and leave lifestyle, however, it’s tough to beat this subdivision. With homes larger than the averages found in most single-family subdivisions throughout McCormick Ranch, privacy is as valued here as the worry-free, low maintenance lifestyle. Central to everything worth being central to, the location is similarly unbeatable. For my money (which admittedly would not buy me a closet in one of these beauties), it falls along one of the two prettiest stretches in all of Scottsdale. With Camelback and Mummy Mountain views rising above the golf course and lake, it’s hard to imagine a nicer visage to serve as an escort to the daily commute.
Nearby shopping, dining, etc is a stone’s throw in virtually every direction. Options include the Shops at Gainey Village, the Paseo Village shopping center and Fashion Square Mall (approx. 1 mile South) among others.
Homes currently for sale in Cuernavaca Segundo
_____________________________________________________________
Ready to launch your McCormick Ranch Home Search?
You’ve come to the right place.
Contact Ray and Paul Slaybaugh for all of your McCormick Ranch Real Estate needs. With over 50 years of combined experience, we’re the agents that other agents Google for McCormick Ranch Real Estate information.
(480) 220-2337 | paul@scottsdalepropertyshop.com
by Paul Slaybaugh | Jul 9, 2010 | McCormick Ranch Subdivisions
Just about anyone who has spent any time at all in Scottsdale is familiar with the planned community of McCormick Ranch.
Lake Margherite in McCormick Ranch
A community which includes some 23,000+ residents, many are less familiar with the approximately 50 individual subdivisions that fall under its umbrella. With radical differences in architecture, amenities, pricing, etc from one subdivision to the next, a prospective home buyer will need to drill down further than general awareness of the McCormick Ranch community at large to find the specific pocket that best suits his/her needs. With this in mind, we launched our McCormick Ranch Subdivision Series.
Featuring individual spotlights for the various subdivisions that compose McCormick Ranch, you now have a one-stop resource shop for everything you want to know about Scottsdale’s first master planned community. Builder overviews, subdivision statistics, editorial opinion, neighborhood values, homes for sale, amenities, school info, new listing feeds, photos, maps, street views, floor plans … this is as comprehensive as McCormick Ranch Real Estate gets.
This page serves as an overview to the subdivision spotlights. Peruse the subdivision map of McCormick Ranch, or choose a subdivision link by name from the tables below to learn more.
For a detailed review of the community on a macro level, visit our McCormick Ranch in Scottsdale AZ page.
You can also skip directly to our McCormick Ranch Home Floor Plans page if you know the subdivision/builder you seek.
North McCormick Ranch (Chaparral High School District)
South McCormick Ranch (Saguaro High School District)
Ready to buy, sell or rent in McCormick Ranch? Give Ray & Paul a call. We’re the agents that other agents Google for McCormick Ranch Real Estate information.
by Paul Slaybaugh | Jul 8, 2010 | McCormick Ranch Subdivisions
Los Tesoros in McCormick Ranch is a small pocket of homes that dots the cul-de-sacs along the West side of Arabian Trail between Via Linda and Hayden Rd. Comprised of 48 total homes, Los Tesoros features custom homes that are sometimes mistaken for the Golden Heritage built homes of the neighboring Heritage Terrace, or the Dix built homes of Tierra Feliz.
Bordering the walking path that separates McCormick Ranch from Gainey Ranch, Los Tesoros features unique architectural styling and floor plans. No cookie cutter boxes here. Following are the pertinent neighborhood statistics.
- Of the 48 total homes, 47 are single-level. The lone holdout is a two-story.
- 41 of the homes (85%) feature private swimming pools
- Most construction occurred between 1979-1983. Two homes were built after that period: one in 1985, and one in 2000.
- The average home size is approximately 2170 square feet
- Mix of flat and tile roofs
- 2 car garages are typical
- Zoned R1-7 for single-family residences with 7000 square foot lot minimums
- Cochise Elementary | Cocopah Middle | Chaparral High School districts
Some of the properties which fall on the Western edge of the subdivision (in the curves of the cul-de-sacs) include private gates that lead directly out to the walking path. Following the path, Rotary Park lies to the South and Mountain View Road lies to the North. All residents are within walking distance of Lake Angela (as well as Lake Nino and Lake Margherite beyond). Camelback Walk (the McCormick Ranch walking path system) will actually lead residents to virtually all reaches of the Ranch and beyond. Nearby attractions include dining (Buster’s On the Lake, Royal Barge, The Melting Pot, Zipps, TCBY, Chipotle, etc), golf (The McCormick Ranch Golf Club), parks (Mountain View Park, Rotary Park, McCormick-Stillman Railroad Park, etc), fishing / boating, shopping (The Shops at Gainey Village) and more.
Looking for something a little different than what you’ve seen in McCormick Ranch thus far? Check out Los Tesoros for the home that is as unique as you are.
___________________________________________________________
Homes For Sale in Los Tesoros (Updated Daily)
___________________________________________________________________
McCormick Ranch Overview
McCormick Ranch Home Floor Plans
McCormick Ranch Homes For Sale
Contact Ray & Paul for all your McCormick Ranch Real Estate Needs!
(480) 220-2337 | paul@scottsdalepropertyshop.com
by Paul Slaybaugh | Jul 6, 2010 | Home Selling, Scottsdale Real Estate
2010 is the Year of the Niche.
It’s true, feel free to consult the Chinese calendar to verify. Scottsdale Real Estate practitioners, in self-defense, have turned to new and interesting means of keeping their businesses relevant in these inexplicable times. Today’s homework assignment for a Real Estate adventurer? Finding a profitable, niche specialty. Thus, the members of the rank and file have been advised to choose a tunnel and follow it out of the malaise. Two examples stand above the rest as the most popular paths to career CPR: bank-owned property sales and short sales.
Forever a fringe subset of the industry, the foreclosure market has become a predominant segment. Virtually unheard of outside a counter-culture circle of practitioners a few short years ago, short sale specialization is another a bully of the current Real Estate pulpit. Given the adapt or perish mantra that permeates a commission based existence, it is hard to fault an agent for migrating to either avenue in an effort to remain profitable. It’s Survival 101.
I won’t pretend that I have not considered both routes as viable solutions to the systemic problems facing the current Real Estate market here in Scottsdale. The smart money goes where the action is. And yet, I have no particular affinity for the institutions that contributed to the implosion of my clients’ property values. I have no burning desire to represent said institutions in transactions against the little guy whom they have summarily defrocked. I’ll put my buyer in the car and go try to steal a property from the bank, but there aren’t enough deflated greenbacks in the US Treasury to convince me to sign on as the Devil’s listing advocate.
Short sale sellers deserve professional assistance. Sadly, I fail to believe that an agent who would flee to “specialization” in this sector at this late stage would prove a legitimate source of the expertise that so many need (and so few actually have). A weekend course and some moxie do not an expert make. Perhaps the specialists that are being churned out at an alarming rate will boast the training and experience necessary to be of legitimate value during the next down cycle, but such “expert in training” zygotes are not the answer for those who need assistance NOW. The stakes are too high to navigate the short sale obstacle course on a bike whose training wheels were only recently, and prematurely, removed. A substantial incubation period is necessary before such a “specialist” fully morphs from a liability to an asset.
Beware the marketing Sirens who would lead a negative equity seller onto the rocks with good intentions.
So where does that leave a conscientious objector to the hordes of freshly minted “experts” with 6 months of experience in a chosen area of specialization? Right back where I started: 100% loyal to real, live humans.
There is nothing wrong with diversifying one’s business practice to gird against shifts in the market, but I refuse to abandon a loyal client base for the new money of bank business. Once you become beholden to the financial institutions, there is little time left in the day to service those who now constitute an under-represented segment of the Real Estate market. Sure, the bank guy might take on a few moms and pops here and there, but can an overextended agent really provide a private seller the level of service required to do this job? A dubious proposition in the best of times, let alone in the murkiness of 2010. With a market that is still twenty thousand leagues beneath the sea, your agent’s periscope better be nimble and at the ready if you are to avoid the same shipwrecked fate that has befallen so many neighbors. Unthinkable in an industry with more per capita agents than snakes on a plane, but I surmise that all of this nichefying has relegated the non-distressed homeowner to afterthought status.
Assuming you have no equity in your home, or will be unwilling to part with it at the market’s nadir if you do, the industry has given up on you as a viable source of business. It has moved on. And yet, there are a few straggling agents who aren’t quite ready to throw in that towel.
While it may seem that every agent and his recently licensed brother have gone to work for the banks, know that there are still a few of us diehards around who pledge allegiance to you. Our phones aren’t always jammed with 8 bazillion calls about our 8 bazillion listings. We won’t take a week to respond to your questions and concerns. We have staked our careers to providing a certain level of service, and we will not compromise it. Market conditions be damned.
Tempting though it may be to wear the “Certified Gastrointestinal Distress Expert” or “Short Sided Career Reinvention Specialist” hats, we stay away from the light and cement our enduring commitments to those left behind in the industry’s pursuit of the next big thing.
Our niche is you.
Should you require the hands on, fully attentive assistance of a couple of non-certified, non-distressed, non-toxic property experts, give us a call. We’re not too busy panning for the bank’s gold to take it.
