It's difficult to believe 2015 is almost at an end. The weather in Arizona has been absolutely spectacular, with crisp cool air and lots of sunshine. For those readers who are in other parts of the world: we wish you were here! For those readers who are in town, I hope you're making the most of this glorious weather.
Year end is always a very slow time for real estate. People are simply too busy to think about real estate, with family and social gatherings.
Would you be briefly inconvenienced to save hundreds of thousands of dollars?
The home that sells for $1.8 million in January may just sell for $1.6 million today. There are very real factors that can make a seller agree to terms they would never otherwise agree.
Why would this apparent inefficiency in the market exist?
1. Tax Consequences. For some people, the tax consequences of selling in 2016 are quite different than 2015. In these cases, consider Uncle Sam the loser, and both the buyer and seller winners.
2. Divorce. It's a sad situation, and the people who are in it want one thing more than anything else: to be done with it. Knowing that they can close the books on what is likely a major point of contention has tremendous value.
3. Psychology of a Clean Slate in the New Year. What's the most common thing associated with every New Year? Resolutions. People resolve to do something differently in the New Year, something better, than they've done before. Letting go of the home they've been living in can be a great release for people who've been trying to sell a long time. This simple psychology is more powerful, and more prevalent, than people may realize.
4. Investment Opportunities. A seller may very well want to take advantage of a buying opportunity, and therefore be more motivated to sell.
Sometimes, one can even reap these rewards without closing the deal by year's end. In other words, just negotiating the deal is sometimes enough to get the benefits.
I negotiated my own home purchase during the holiday lull in 2014, but didn't close until 2015 due to inspection items the seller was fixing. When I would return to check on progress from the various contractors, there were prospective buyers showing up constantly, disappointed to learn that they had missed their opportunity.
In conclusion, it may be an inconvenience to be out looking at real estate this busy time of year. However, you may be very well compensated for the effort.
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Closings Unsurprisingly given the season, another slow week with just 3 closings totaling $5.7 million. Listings
This week brings 13 new listings, ranging from $995k for a mid-century modern in need of TLC, to $6.5 million for a European style estate.
There are two homes I'd recommend making an effort to see sooner than later:
Over 2 Acres Near Doubletree A light remodel of this 5,316 square foot home would turn it into quite a showpiece. The 2.21 acre lot sits on a cul de sac in the prime area just north of Doubletree. There's a lot of potential here at the asking price under $2.3 million.
Mark Candelaria New Build Superb views from this exquisitely designed home near Paradise Valley Country Club. This 8,400+ square foot home has high ceilings and excellent light. The finishes are exceptional including walnut floors and onyx countertops. I wouldn't be surprised to see this home sell quickly, so if it's of interest please call me today at (480) 442-7325.
To see all of this week's new listings please click here.
To see everything on the MLS in Paradise Valley please click here.
That's all for this week, I'll be back next week with all the latest in Paradise Valley real estate.
Thank you,
Alex Goldstein(480) 442-7325
p.s. Have you signed up for the VIP list? Click here for priority notification about unlisted properties, and opportunities that meet your specifications. You will only be contacted about properties that meet your specific criteria, and there is never any obligation.
(c) 2015 Alex Goldstein PLLC
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