After Repair Value for Arizona? Help!

Bird Dogs, Wholesaling
1

:help … I had a disappointing experience with a realtor. I was trying to find the ARV of a home in South Casa Grande yesterday. I told him I wanted a CMA on the property, but I also wanted to know what it would be worth once fixed up but he was in a hurry and didn’t let me tell him about the house and what I wanted to do with it. The realtor got back to me within the hour and told me the house CMA value was $23k, around the same price what the seller wanted for the house. The house was bought as part of a big bank package last month at $12k.

I heard from other people that house values in AZ (Cali, and Florida) are declining like crazy. Is this true for every house in Arizona, that the value will be around $20k for each house? If so, this won’t be good for my wholesaling efforts as I live in Coolidge. Is there anything I can use or try to come out on top, so I can make some money and help others out in this part of the country at the same time? Am I going about this all wrong?

Thank you in advance. :biggrin

2

Hi,

And all this time I thought that idhomebuyer meant "Idaho Home Buyer"! How long have you been in Coolidge? There are hearts breaking all over Idaho tonight!!!!!! The state will never be the same without you!

With that said welcome to Arizona, home of hot summer days, cactus and more hot summer days!
Now we know who’s been buying all of our real estate! You gotta throw us a bone and let us buy at least 1 in 1000? lol

Ok, an Arizona CMA (Comparative Market Analysis) has all the data and information you need to determine value, but you must be the one to view and discern value, both current “As Is” value and ARV (After Repair Value) don’t rely on someone else to define, discern or analyze your deal because there understanding and experience as to what they read and understand is different from your’s!

The comp’s give you FMV or ARV so you work your numbers backwards, then depending on those numbers buy or don’t buy, it’s as simple as that! Now the real estate agent was giving you there perspective on the value of the property you were looking at, probable not ARV but certainly not a fair assessment of current value?

Arizona, Nevada, California and Florida all have already declined like crazy! Right now these markets are skipping the presumable bottom and will continue to skip forward for probable 1 to 2 more years until finally inching up little by little, we probable will not see home value’s like we saw 5 years ago until 2035.

We hope we do not have a double dip recession as we could see home value’s turn and continue to drop, although right now home prices have been fairly steady, but still fluctuating back and forth!

If the price drop’s to $20k per home I am going back to Scottsdale to buy another 30,000 sq.ft. home, that would be a smok’in deal at $0.66 cents a square foot!

No I think your doing fine, but watch buying in area’s you would be hard pressed to resell! Watch the average days on market and what the area statistics are for the foreclosure rate!

You and I can’t be more than 60 miles apart tonight, have a great Christmas “coolhomebuyer”!!
(Coolidge Home Buyer)

                      GR
3

Gold River,

 It did, when I lived in Idaho.  :smile  There aren't that many hearts breaking from there, as far as I know. :crossfingers  I am living in Coolidge now, but  I grew up in Florence. Although, I was born in Mesa. I only lived in potato country for a few years, but my 3 y/o son is living there with his mom. 

 I am amongst the many wholesalers / flippers out there, and I am willing to throw a good bone to any buyer.   :deal  

 Should I get the realtor to meet me at the property to [i][i][b]show[/b][/i][/i] them the work that needs done, and at that point they can tell me what it would be worth after rehab costs?  I know tax value doesn't matter, and Zillow estimates don't count, either. 

 The hot spots I've seen are parts of Coolidge, CG, Florence, Magic Ranch (Florence), Queen Creek and the majority of Phoenix, if the deal is great. What's your opinion about this?
4

Hi,

What you need to do is get comp's for a property your interested in, then go around and drive and look at every property. Try to get your real estate agent to spend a day with you doing nothing but looking at properties for sale.

Make sure you note the address, exterior condition, first impression, bedrooms and baths, HVAC or swamp cooler with heater, type of construction, finishes, type of cabinetry, type of appliances, type of counter top, formal living and dining, garage and garage size, garage door opener, type of flooring, hardwood, tile, carpet, type of tub backer, tile, vynal, insert, age of hot water heater, light fixtures, fans, GFCI baths and kitchen, bronze, chrome or nickel finish door knobs, hinges, door stops, faucets and bath trim and light fixtures, sprinkler system, desert landscape, fenced, RV parking, tree’s, pool, age of pool, age of pool equipment, flush doors or 6 panel doors, custom paint job or standard all white paint, size of lot, in an HOA, not in HOA.

These are all questions you want to ask your self and more, you have to be the one as it is your money and you have to be the one to discern if $100k here, looks like $100k there???

The rule of thumb is your buying based on the comp’s and your reselling based on improvements and comp’s, depending on how much improving you do, depends on how much additional revenue can be generated by improvements. Watch HGTV, when they talk about improvement and what the improvement add’s to the value.

Generally speaking when I do a full remodel fix and flip and let’s say the comp’s say the property is worth $90k, I may be able to get close to $100k or about 10% more because the property has been completely gone through and is in very good condition.

Just remember your buying for $90k minus 30% average, minus repair cost, minus some closing and carrying cost’s. But you use the comp’s, then if you happen to get a little more or end up with a bidding war, you get the bonus.

IDHOMEBUYER send me a PM and maybe we can meet for lunch this week, I will spend some time with you and answer some questions. Maybe I will take you over and show you one of my rehabs?

                     GR
5

Gold,

That sounds great - I look forward to it.  :beer  I sent you a pm, but if you didn't get it, send me a PM

Thanks & have a happy new year. :smile