Luxury Home Fix and Flips
October 6, 2020
Global Real Estate Representation Private Client Group
What makes a luxury flip sale a solid transaction for the seller or the buyer in Maricopa County, Arizona? When isn’t a sale good for one or the other? Did the buyer pay too much; could the seller have gotten more money? Here’s our perspective on today’s market cause and effect:
In 2019, 16 homes recorded above $7 million, almost four times greater than 2018 numbers in booming Maricopa County, an acceptable estate-luxury starting point for area closings. Frank Aazami, Global Advisor, and principal of the Private Client Group, Russ Lyon Sotheby’s International Realty in Scottsdale, recently evaluated these sales based on location, size, acreage, age condition, future salability, amenities plus other circumstances such as orientation, access and floor plan.
Of the approximately 98,000 Multiple Listing Service Sold properties in 2019, these single-family homes represent an ethereal territory where only the wealthy venture. With about 70 percent of the sales, in fact, were “all cash,” and just more than 50 percent were out-of-state buyers.
“The first thing you notice from the concentration of sales is that they are in Paradise Valley, specifically east of Tatum Boulevard, and Silverleaf in north Scottsdale, with the remainder at Desert Mountain in far north Scottsdale east of Carefree/Cave Creek,” Aazami explains. “These continue to be the premium areas in the Valley of the Sun, including other luxury communities such as Estancia and DC Ranch. The key zip-codes are 85253, 85255 and 85262.”
Aazami adds: “We believe all buyers and sellers should have seasoned representation. In particular, those outside these popular areas looking to sell or buy at this level should interview, then select an expert who will best promote a good design and well-constructed home, track where and how to promote and convert the right buyers for it; not just viewing in, yet purchasing these special homes.”
“A luxury-property specialist, should distinguish grade differences, notice superior workmanship and follow the trends; an experienced professional will help both the luxury seller and buyer obtain more. At this level, savvy buyers are going to want to examine a property in depth, and sellers should know what the market will bear and how to present their properties at the best posture”. Most luxury fix and flips take place because the seller is unwilling to remodel what the market is calling for.
It all works the same throughout the global markets, your advisor should know that market, down to the streets, know the architects, the builders; know the quality and less than quality. It’s like a diamond. You can look at a home from many perspectives, but are you seeing just the shimmer and not the imperfections? A good advisor should identify the fixing parts, the best way to sell a property is to remove all objections (if you can) upfront, before entering the market. Crediting buyers is not always our first recommendation. After all, the buyer typically falls in love with your place or your price.
“You’ve worked hard for your money, your home, your security. And, you don’t want your home for sale for months and months or even years and years. You want to get on with the next chapter in life. After all, all we have in life is time. Trust that to a specialist.”
For more information, please visit: WhyPrivateClientGroup.com and pcgagents.com, email Frank Aazami, email@example.com, or phone/text, 480.266.0240.