As usual, I review the most recent sales and market data in the Tucson luxury real estate market, particularly in the Foothills 85718 and Oro Valley. Check one, no recent surprise sales in the Oro Valley luxury market , but plenty of surprises in the Tucson foothills , there were two sales so high since the beginning of the year that they qualified as definite 'head scratching high closing numbers" ... and there is a nearly 2 million dollar pending sale that will close much higher than market comparables. A recent example, is a home that just closed on 1/5/2012 in Pinnacle Ridge Estates for $765,000 when the last two most recent closings in the same community of similar size, age and equal view homes were respectively $605,000 and another more highly finished home with better views and larger sold for $700,000.. uummm, I can only attribute the the "high buys" to emotional purchases... or lack of market knowledge, facilitated by a less than focused appraisal, which allows for bank funding of these transactions. The particularly high closing (for Pinnacle Ridge) of $765,000 and others like it, remind me a little of the loose appraisals & 'high' buys seen in 2005... let's hope this is not going to be a trend again.
There are however two sides to the equation, One is, the appraiser and Realtor should be there as voice of fact and reason" but at the same time making sure '' an agreement/ the voice of a buyer and seller is the final word' ; which reminds me of a meeting I had the other day relevant to this discussion; I was talking with a very nice seller.. I saw that he had paid over a million dollars for his home just under three years ago,,, and looking at the market data , it was pretty clear, even at that time of his purchase, the home was worth closer to a market value of $850,000 to $895,000 (now worth in 700's) so as gently as I could, because again the seller was as nice and intelligent as could be, I asked ,," did you know you were paying a premium at the time of purchase" and he said,
"Yes, but I just loved the home" ...
I absolutely respected his answer , he knew he was paying beyond top dollar but was still interested in going all in ,,, " great" life is short, so if you cannot wait for the price to drop and your agent can not negotiate the price down to market value or is not familiar enough with the market to inform you .. than by all means, live where it makes you feel good. I just hope and try to remind buyers , " if you pay a premium at purchase, when you go to sell a few years latter" chances are, the "love it buy" is going to cost you at least $50,000.00 for home costing under a million ....and the " love it buy" for homes over a million could cost you between $150,000 and $400,000 or more, this is occurring even in today's foothills real estate market with the toughest appraisal guidelines ever. The best tool, when buying a Tucson luxury home is knowledge and usually plenty of patience.
Please call me if you would like to chat about the luxury home market in Tucson and how you can make sure you make the best luxury home purchase possible.
Michael Chaisson
Long Realty, Foothills and Oro Valley Luxury homes
*Listed as one of the Top Realtors in the U.S*
Please note :when I reference paying beyond "market value" that does not mean homes with superior finishes and views should not be purchased at a premium but given equally finishes homes, views, lots , community etc..there is 'market value' experienced Realtors in a given area are aware and should inform buyers.
Comments