All Forum Posts by: Chad McMahan

I just wanted to rejuvenate this great post about Sedona real estate. The market has gone from red hot to lava hot.

Expect quite a few multiple offers, many of which will be cash. Commonly we are seeing 10% - 20% above asking, as buyers are getting frustrated with making offers over and over again and not getting properties into escrow, as there is so much buyer competition and not enough property inventory. It's rough out there for buyers right now.

My forecast is we will likely see at least a few more years (and possibly 10+) of major heat, before things cool a bit. We are still on the front of this wave.

Be bold, buyers. Remember the show American Gladiators? Yep, it's a bit like that. The good news, is, there is a LOT of support here. The other good news, when you have the right team (The best local title company, realtor, mortgage broker, contractor, house cleaners, property management, etc), it goes smoothly and you get the best results).

Your timing to retire here in 4 years is fantastic. You should have quite the appreciated value by then.

The Verde Village subdivision is in Cottonwood, a nearby town. Are you asking about that area, or about the Village of Oak Creek (VOC), Southern Sedona area? Assuming you mean VOC (FYI, for property searching, look by zipcode: 86351), I'm very familiar.

Short version: Anything in the VOCA HOA restricts rentals to 1 month minimum. Most single family in VOC is within VOCA. Those not in this HOA- many of them are short term rental friendly, some are not. Rentals in VOC do extremely well. It's less crowded than some other parts of Sedona, has views, hiking/biking and some nice restaurants.

VOC is mainly single family, and also with some condo rental options. 

Longer version: Let's chat on the phone. I look forward to it.

Hi Christian. 
Wow, getting out of the restaurant industry. How are you going to handle less stress and more time? I thought about opening restaurants, many times, but I didn't think I had the pain threshold.

When I got into real estate, I read 20 investing books and attended some of the top investing and financial conferences across the country and really buckled down. But... I wish someone had just said- talk with a really aggressive and considerate mortgage broker who can tell you where you need to be to buy- and help you get there. Partner with a really tactful and considerate (investor) realtor to walk you through your first purchase. And learn as you go.

Yes, it's risky and you can lose when you get into real estate. Vastly minimize risk and maximize results by putting an amazing team around you- with lots of experience and ask a lot of questions. Take them out to lunch. This will cost a lot less, teach you a lot more and more quickly, and get you insanely motivated. You won't be able to help yourself- you will start your portfolio, before you know it.

It's less costly and faster/easier to just get zoning and prep land and market as a RV park where people bring their own RV's. Quite a few local business are crushing it, doing just that. I don't think they have tapped the market, and there is still opportunity to add more.

The investment strategies have changed quite a bit in this area. Flipping, for the most part is a waste of time. Short and long term rentals are very hot, including single family, multi family, resale and new construction is working well. Lumber costs are starting to come down a bit, which is helping on new construction.

FYI, land prices are starting to come up, as inventory is getting gobbled up and getting developed. It's been sitting for years, but now it's starting to move.

I know buyers are flocking to Sedona for STR's. Our main issue is low inventory. Buyers need to be aggressive, in order to get into the market. That can be frustrating for many buyers.

There are lots of hot market STR locations in Arizona right now. I like Bruce's list of locations. I'd add most of North Phoenix (up to Cave Creek and a bit beyond) to that list.

Hi Ashley.

In Sedona, the biggest challenges are:

1) Property inventory (available listings are low on the MLS, almost everything is pending/sold)

2) Wait times to get remodels, service providers, even to get estimates. Many service providers now have several+ months wait time.

The good news for all of Arizona, is towns/counties can no longer control if homes can be rented or for how long. This is a very good thing for owners and for renters. It is determined by HOA's. If there is no HOA, you're good to go. Some HOA's restrict, some HOA's do NOT. Some of the restricted are accepting monthly+ rentals, 6+ months, or 12+ months on rental minimums.

Knowing this up front, helps a great deal, to help you be efficient in your hunt for property.

We can relate. Home owners insurance here in Sedona, really became an issue when we had the "Rafael" fire spring up. Now everything is fine, but all financed/loan purchases were on pause and not closing escrow for about a week, while the insurance carriers applied the "wait and see" principle. It was pretty stressful for buyers and sellers.

Fortunately, it now seems to be a thing of the past. I think local carriers "seasoned" a bit. Their skin thickened and everyone is marching forward.

If anyone in our area needs a referral for a Mortgage Broker, insurance carrier, or title company, please let me know. Choosing a strong team to get the best outcome, is everything.

Hi Kent. I'm so sorry for not responding sooner. I haven't been accepting new clients until now, and I haven't been checking in. I know you reached out to me directly, as well.

I'll be happy to give you a couple of Sedona area house cleaner recommendations. It is definitely tough out there, right now.

For others who are reading this, expect the following Sedona services wait times right now, with *most* providers:

Minor remodels: 2 weeks - 2 months
Moderate remodels: 1-3 months
Major remodels: 2-6 months
New residential construction (From signed/initial deposit to 95% completed project): 15-18 months (can be 18-30 months for larger projects)
Garage doors: 4-6 months, manufacturing time

(If you want other wait time estimates, please let me know)

Being good girl/boy scouts (be prepared) is everything, in a hot market. Often times, you can cut these wait lines, by making arrangements in escrow, shortly after the inspection period, so that work can start shortly after close of escrow. That way, you can get your properties finished, occupied and income producing, ASAP.

Balachandar, Most parts of Greater Phoenix are hot market areas with several+ years of more of the same we have been seeing. However, I would caution you from putting too many eggs in the Phx basket, as they will likely start to see water concerns that will impact the market. I predict people will start talking about it in 2-5 years, with real estate impact in 3-10 years.

Most people don't know this, but the Sedona aquifer has a 500+ year supply of fresh, delicious, naturally filtered water. The city has an A+ grade (has to do with how well they clean the water) water recycling plant that cleans recycled water, and they are pouring it back into the aquifer, so Sedona won't run out. It's a great long term plan.

Only problem with purchasing here, is there is a limited inventory. It's a smoking hot market with multiple offers- lots of cash flying around and commonly properties are purchased 10% - 20% above asking, as buyer get tired of making offers that are beat by other buyers.