I have a property in Arizona currently but have decided to live out of the country. I had an offer from the builder of the community or someone connected to them to purchase our house for $420 taking care of closing costs, they tried to offer $415 initially. I had the property evaluated and was told it could sell for about $430-440k but would only net me about $2k more after seller and buyer agent fees. I’m wondering what you guys thoughts are on this sale. It’s a lot going on in the market so not sure I want to deal with a renter, but also don’t want to be taken in this “convenient sale offer “ either.
Property Manager · Queen Creek, AZ · Member since 2016 · 608 posts · 426 votes
5y
@Elisa Gary Isn't it great to have choices, keeps us awake at night sometimes. lol
Rentals in Ahwatukee are of course very strong and with proper screening, we could surely obtain a high-quality tenant. As a property manager, one of the most important things I believe we do is screening to obtain the best possible tenant for the property. We pull eviction, credit, criminal, ID, bank statements, photos of cars photos of pets, etc all in an effort to screen. When you compare all of the information received 99% of the time you get a realistic picture of the applicants, allowing the owner to make a qualified decision. Once we select a tenant we continue to manage the property. Owning an investment house with a good property manager is not hard work on the owner's behalf.
The market to sell is red hot, most properties are reviewing multiple offers in the first few days, sometimes hours, and often selling for way over the asking price. We could tailor a sale to meet your time frame, needs, and wants in this seller's market.
Do you desire to be an investor? Do you have thoughts you might one day return to AZ? Do you just want to take your cash and leave? Lots of choices, really none of them are right or wrong, it's what fits your wants and needs the best.
Thanks a lot for the response. I think that may be the case, I like the property and the location just don’t know I want to be bothered with it just now. Having a tenant kind of concerns me right now with all that is going on and then if the place is messed up ugh..... I think I may have made peace with selling just don’t want to sell myself short by taking this builder offer . Maybe I should take it for a spin for about 30 days on the market and see what happens ?
Property Manager · Queen Creek, AZ · Member since 2016 · 608 posts · 426 votes
5y
@Elisa Gary My first real estate office in AZ was in Ahwatukee, 22 years later still going strong. Happy to consult with you regarding the value and expected market reaction for your home.
Real Estate Agent · Scottsdale, AZ · Member since 2021 · 4 posts · 0 votes
5y
@Elisa Gary
Elisa. Don’t sell it for $420l! I am a local realtor that works full time.
I have some elderly clients that have lived in Ahwatukee for 30 years, they own a single level, 4/2.5 with pool in backyard and 3 car garage. Their home would sell for $550k+ if they listed it today. Also, this is the HOTTEST market we have ever been in and it is the fast growing market.
If you listed it, a seller would more than likely ask to pay your closing costs anyway, just to win. Not to mention to 20-30k over asking price offers that count out to roughly 10-30 offers- it really is worth it for you to sell it by placing it ON Market to determine what a buyer is willing to pay - because it’ll be more than what you list it at.
Also: whomever is trying to get it from you OFF market is going to turn around and list it up for sale to make a profit- the same profit you would have by listing it.
Real Estate Agent · Tempe, AZ · Member since 2011 · 1k+ posts · 543 votes
5y
If you don't want to be a landlord, then yes sell, but the longer you wait to sell, the more your property value could increase ... could increase $5k-$10k each month for the near future!
Based on my research in tax records and MLS, and assuming my research is correct, yours is a new build that was purchased in 2019, and at the current market value with the proximity to a main road and entrance to the community, $420k for your property is good ... not great, but pretty good. Keep in mind that if you have owned the property for less than 2 years, you may have to pay capital gains tax on the profits, even if the property is your primary residence (check with your CPA for any advice/loopholes).
It's possible the person/entity who contacted you wants to rent it out or hold on to it for 6-12 months and sell for more $$$.
If my research is incorrect, provide zip code, # bd, #ba, and size to see if $420k is fair.
Also, consider being a hands-off landlord and let a property manager take care of it for you. If you don't need the money from the sale or don't have any better use for the money from the sale, and you could hold on to the property long term, what harm will it do you to have a renter pay off your mortgage for you?