Why do old houses in Scottsdale fetch huge prices?
I always wondered why people pay huge prices for old junk. Old houses generally have low ceilings, inferior technology, choppy floor plans, etc. Today, I am sitting an open house at 5831 E Charter Oak Rd. Scottsdale AZ 85254. It’s a 1974 and it looks it. 2,580 sqft. 4/3/2. That means 4 bedrooms, 3 bath, 2 car garage. This is a pool house that needs a re-plaster.
I believe there are a few factors relating to this ridiculous pricing. 1. The California exodus. In CA, they often live in small and old houses. When they come here, they can buy bigger, pocket some money and to them it’s a huge upgrade. 2. Hot Zip Code, every building in 85254 is getting a rehab, pushed over to build a mansion or otherwise upgraded. And 3. Access to the best restaurants, shopping, downtown, airport, mountains, etc. This is just a great location.
It all comes down to location, location, location. This particular home is under contract at $950,000. I use a simple rule of thumb. For every 500k financed, your payment is roughly $3,500 PITI. Principle, Interest, Taxes and Insurance. If this home were 100% financed, it would cost roughly $7,000/month. Ouch. That means the Buyer would need to earn $14,000/month (assumes 50% taxation) just to pay the house note. Ouch, Ouch, Ouch.
The Californians don’t finance 100%, they sell their property in Cali and come here to pay cash. The interesting thing is that the Californians don’t seem to have any trouble selling their property for top dollar.
If you need to buy or sell a home, see us at www.5kflatfeelisting.com. We look forward to hearing from you.
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Best,
Geoff Nowlin, Phoenix Realtor Brett Young, Cleveland Realtor
480-466-3737 (216) 703-5740
www.5kflatfeelisting.com by56083@gmail.com
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