Searching for the perfect home is a fun, and often emotional, process. Searching for the perfect investment is a whole other ball game. Whether buying, selling, downsizing, or flipping, high-value properties have long been considered a solid investment and important tool in the expansion of any elite financial portfolio. But with market trends and values changing every day, the real estate market can be a difficult entity to follow in even the most predictable of times. The current cultural climate – while not negatively impacting the present state of the market – adds an extra layer of confusion, stress, and uncertainty, and online exploration often leaves a potential buyer or seller without the localized knowledge necessary to navigate specific luxury enclaves, including the much-sought-after Paradise Valley community in the Phoenix metropolitan area.
No matter which specific neighborhood interests you, understanding the norms of the luxury market, the current available inventory, and the different pricing structures associated with the properties therein remains essential for those interested in pursuing a luxury investment. The basic principles of supply and demand will always rule — increasing demand in a market of excess supply, for example, logically results in the lowering of price —but it’s imperative to consider both the market data and the specific properties you are pursuing before making that big leap of faith. No matter what stage in your real estate journey, entering the market requires extensive personal research and expert assistance from a professional. Read on to learn how to better navigate the Paradise Valley luxury market and reach your real estate goals.
Named for its profusion of wildflowers and palo verde trees, Paradise Valley is an authentic desert oasis. This municipality, the wealthiest in the state, straddles Phoenix and Scottsdale and boasts eight full-service resorts, making it one of Arizona’s premier tourist destinations. The community’s affluence and central location provide residents easy access to the ample delights of Greater Phoenix. Escape to a world-class spa or enjoy an afternoon on one of the many luxury golf courses; savor nearby fine-dining or indulge in a high-end shopping spree. From art and culture to entertainment and nightlife, this town proves a Southwestern Shangri-La.
While Paradise Valley holds a small handful of high-density developments, most of the community’s home market consists of one-acre single-family residences. The scenic views and rugged terrain provided by such landmarks as Camelback Mountain, Piestewa Peak, and the Phoenix Mountain Preserve contribute to the value of Paradise Valley’s renowned real estate.
As anyone with a head on their shoulders will tell you, a hefty price tag alone does not luxury make. Real estate isn’t considered luxury just because it’s pricey; the property’s value makes it luxury, as determined by its perceived distinctiveness, exclusivity, and superiority. Things to consider: location, curb appeal, kitchen and bathroom renovations, high-end interior finishes such as high-quality appliances, customized closets, marble countertops, and hotel-like amenities such as fitness centers, spas and golf clubs, or a concierge service. While these are the classic hallmarks of a luxury property, not every high-end home is the same.
In non-urban settings, the community’s prestige – being gated or part of an association with access to exclusive country clubs – increases the standing of the neighborhood. Another major factor is the surrounding community. High-end buyers want access to luxury activities like shopping, dining, and the arts, as well as proximity to other luxury homes.
All that being said, luxury does often come at a price. The Institute for Luxury Home Marketing, which specializes in training real estate professionals in high-end home sales, defines luxury agents as those performing in the top 10 percent of their given market. In many large U.S. cities and metro areas, the typical luxury price point is $1 million and above: according to Christie’s International Real Estate, the market typically begins at $3 million in San Francisco, $5 million in Los Angeles and New York, and $7 million in London. In 2012, the Forbes magazine named Paradise Valley’s zip code, 85253, the 71st-most expensive in the United States. This ranking also makes it the most expensive in the state of Arizona, with the title of “luxury” bestowed at the million-dollar mark.
Buying in Paradise Valley, as in any luxury community around the world, requires an understanding of the subtleties of its specific market; it also requires a firm grasp on each property’s unique selling points, the most obviously important ones being location and square footage. Other factors include the present condition and size of the house itself, any recent renovations, or any of the potential amenities referenced prior.
At any given price, there is always a trade-off between the value of the land and location, and the finishes and condition in the home. In other words, the nicer the view, the less likely a seller will feel pressure to renovate before putting their property on the market. This can be an advantage, as every buyer has a specific set of priorities in their house hunt. For some, the number of bedrooms and baths will determine the comfort of a potential homestead; for others, striking views of Mummy Mountain will seal the deal.
Looking for trends in Paradise Valley’s pricing requires interpretation and insight provided by experts with years of navigating the Paradise Valley market. The art of negotiating the most competitive pricing with favorable terms for the buyer requires a mastery of form, as well as personal talent to achieve the most advantageous end. Click here for our recommended Luxury Real Estate Agents who specialize in the Paradise Valley market. However, there are some skeleton considerations for a buyer once they are certain of their interest in making an offer.
Much depends on the ever-fluctuating market—but with the potential for multiple competing offers, buyers in the Paradise Valley market must determine their willingness to offer over the asking price. Some example questions to ask yourself: if the property is listed for $2.5 million, and you know the seller will accept $2.6 million, would you be willing to pay $2.6 million? If your answer is no, ask yourself again, decreasing the potential offer by increments of $10K – $25K until you arrive at the number that provides you confidence in your offer in price.
To increase the appeal of your offer, contemplate which conditions, if any, you can waive. If you propose a secure offer removing home inspection and financing, you will generally have a better chance of success. Another important factor for your offer is the closing date. Especially in the current Covid-market, the closing date can be equally important to the seller as price. Cooperating with the requested date will give your offer an advantage. If you cannot, account for that ask by adjusting the price, deposit, or the conditions to gain favor. Lastly, it’s important to remember that money talks. A substantial deposit is louder than a thousand words: if the transaction is not finalized, the seller keeps the deposit, as reintroducing the property to the market may affect its pricing. By putting up front, you offer certainty to the seller – a condition very much appreciated by the seller.
Intrinsically linked to the buying process is the selling process. On the other side of the plate, changing market truths are rooted in consumer behavior, which can be altered by anything from the current economic environment to the nuances of current buyer profiles. Click here for current Paradise Valley market stats. While there are many ways to prepare your luxury property for listing, most journeys to the marketplace begin with a successful “Real Estate Redesign.” Yes, this includes proper maintenance and staging, but encompasses a much broader set of actions a seller can take to increase the perceived value of their property. It may be emotionally taxing, but that typically begins by depersonalizing the space. No longer your family home, your property should emphasize its most attractive features. Spacious, bright rooms and limited décor allow a potential buyer to envision the potential lifestyle offered by the property. Due to the heat of the season, the Paradise Valley market typically slows in the summer, traditionally yielding high closing-rates during the spring and autumn. This particular autumn will yield a less predictable market, as the impending presidential election naturally slows down transactions and softens prices.
Upon entering the real estate market, it’s important to seek out an experienced real estate agent to guide you through the process. Whether you’re planning on buying or selling a house, real estate agents provide a number of benefits to you. Agents have developed deep relationships with the community they work in and can give you a better understanding of the market. If you want to know more about an area or find the average rates of homes in the community, an agent can help. Hiring an agent is highly recommended to make the whole process much easier. They can turn a bad real estate experience to something a little more memorable.One of the most essential benefits an agent provides is access to MLS services. MLS allows your home to be seen by a large amount of people. The more people who come across your home’s listing, the more potential selling power it has.
Walt Danley Christie’s International Real Estate is synonymous with the Valley of the Sun’s dynamic luxury home market. Since 1978, Walt and his hand-picked team of real estate professionals have been providing our clientele with keen guidance and market insights while delivering an unparalleled level of service. There is no substitute for experience.