Congratulations to our clients who received a great offer, 6k higher than the same house down the street that was more upgraded AND had a pool! We cannot explain enough how important it is to prep the home before listing and market correctly. Makes a HUGE difference!
Phoenix Real Estate
I have had some clients ask…what is a spec home?
While a spec home is not the right choice for those who want to choose every single detail of their new home, it is a good option for those who want to enjoy the benefits of owning a new home without waiting several months before moving in. Still, this is not to say that the spec home buyer doesn’t enjoy any options. Rather, the spec home buyer typically does enjoy choosing from a limited number of colors, floor plan options and cabinetry styles. By limiting the number of options available, the builder keeps the cost down. This, in turn, makes purchasing a new home more affordable for those who are on a tight budget. If you are interested in purchasing a brand new home, but you do not want to wait several months to have the home built from scratch, you might want to consider purchasing a spec home. As the name suggests, a spec home is a home that is built on speculation. In other words, the construction company builds a home with the features it believes will appeal to the most buyers. By building a home on “spec,” the construction company hopes to offer a package that potential buyers will find attractive.
Aside from the potential money savings associated with purchasing a spec home, purchasing one of these homes gives the buyer the opportunity to walk through the home before making a purchase. When buying a brand new home that must be built from the ground up, on the other hand, the buyer does not have the same opportunity. Therefore, for those who want to have the opportunity to actually walk through the home before making a purchase, a spec home may be the way to go. The same is true for those who do not have their heart set on including specific options in the home.
For those who are in the market for a spec home, there are several different terms that are used to describe this type of home. Some of these terms include move-in ready homes, immediate delivery homes, inventory homes, and featured homes. When discussing your desires with a real estate agent, you may find these terms used interchangeably. Rest assured that they all refer to the same type of home. So, if you want to shorten your wait from more than 6 months to just 30 to 60 days, a spec home may be the right choice for you.
If you are thinking about building a home in the Phoenix area, we would love to help!
About The Author – Kevin Koitz is a member of the Koitz Group and works with clients interested in Bethesda real estate and other Maryland area homes.
Congratulations Christian, the newest homeowner! We love helping first time home buyers! Big shout out to Sean Harrington for doing an awesome job on the loan! No closing costs+very little down payment+low interest rates+long term investment=so much better than renting! Best wishes with moving and making the house your own!
If you are thinking about selling, now is a great time. The market is healthy, interest rates are low and we still have a couple of month before the holidays.
Click below for an estimate on your home value. Please call/email for a full evaluation.
Quick Hits: If you’re planning to buy a home in Phoenix, Flagstaff or Prescott, do it now, because prices are going up for the next few years. Investments in single-family rental properties have good potential mainly in Phoenix. Apartment developments have the best potential in Phoenix, where splitting homes into rental units is also attractive, and in Tucson. Mortgages and construction loans have average risk. Best bets for investments in retail are Phoenix, especially the southeast suburbs; worst bets are Tucson and Prescott.
Investing in Arizona no longer means dubious retirement projects in the desert – a kind of Florida West with sand instead of swamp. You can find those too, if you like taking a flyer, but Phoenix and Tucson have grown up and offer investors a range of possibilities. In addition to the big cities, Prescott does cater to retirees, Flagstaff has a younger demographic, and Yuma has a heavily immigrant population; all have different housing needs.
The strongest economic growth, and therefore strongest demand for housing, is in Phoenix, where jobs are being added at twice the national rate – many of them in healthcare, retail, and the large finance sector. Job growth has also been strong in Prescott, mostly in the retail and healthcare sectors as you would expect from the retiree population. Growth in Tucson, on the other hand, has recently been slow. Flagstaff depends heavily on the cyclical tourist trade.
Flagstaff, Tucson and Phoenix have a high proportion of renters, almost 40 percent, but because home prices in the former two are high compared to rents, investing in single-family properties to rent them out is most feasible in Phoenix – where the ratio is much more favorable and where housing needs encourage splitting single-family homes into multiple rental units. The relatively lower pay in the growing retail and healthcare sectors will expand renting in future years.
Mortgages are a good investment right now. Because home prices will keep rising the next few years, the equity cushion for new mortgages will grow quickly; yet prices are in balance with local incomes, so the risk of default will stay average. Construction loans also will have average risk in the growing markets, especially Phoenix, where I expect 60,000 new single-family homes built over the next three years and 60,000 apartments. In Prescott I expect a modest 5,000 homes built and in Tucson 5,000 apartments. In Flagstaff and Yuma I expect less than a thousand new housing units, mainly apartments.
Because of the rapid population growth, investments in retail stores and restaurants are favorable in Phoenix; the suburbs in Pinal County are greatly underserved for both. Such investments in Flagstaff face stronger competition and the cyclicality of tourism. The retail sector has been flat in Prescott and has actually shrunk in Tucson. The large growth of finance and healthcare in Phoenix will probably call for more office space.
View full article at: www.forbes.com