Inexpensive housing - Phoenix (Mesa, Glendale: low income, short sales, real estate) - Arizona (AZ) - City-Data Forum

DRCR · 02-03-2010, 12:25 PM

Hi all, we're considering moving to the Phoenix area. While perusing homes online I was shocked to see very nice looking homes in the 60-100k range. Is this for real? Or is this something that could only be found in a "scary" part of town? We're looking for a standard starter home.

I should also note that while it would be nice to have a college nearby, schools aren't important in our decision (no kidlets). Thanks!

AZJoeD · 02-03-2010, 01:02 PM

There are many good deals in the Phoenix area right now due to the large number of foreclosures having driven the prices down. Yes, those prices are for real! They may not be in the "scary" (???) part of town, but they may be in the far suburban areas which may be inconvenient if you need to commute very far.

You need to determine where you will be working, going to school, visiting friends, enjoying activities, etc. Then look for properties that are within a reasonable commute to those places.

There are many good deals, it all depends on your needs.

azdr0710 · 02-03-2010, 01:42 PM

and don't forget that you get what you pay for.....(usually)

DRCR · 02-03-2010, 01:59 PM

Thank you for that info AZJoeD. I guess I'm just a little shocked to see those prices coming from the Chicago area. Even with the economic downturn it's difficult to touch a detached house (even in a distant suburb) for less than 300k or so. Closer to the city in decent areas it's much more than that here. It wouldn't be that bad but property taxes are crazy as well, we pay 6k a year in property taxes for a townhouse.

Azdr0710, do you think that many of these less expensive homes may likely be of lower quality (or in bad areas)? Many of them looked quite nice but it is difficult to really tell through an Internet photo. :-)

AZJoeD · 02-03-2010, 02:16 PM

Quote:

Originally Posted by DRCR

Thank you for that info AZJoeD. I guess I'm just a little shocked to see those prices coming from the Chicago area. Even with the economic downturn it's difficult to touch a detached house (even in a distant suburb) for less than 300k or so. Closer to the city in decent areas it's much more than that here. It wouldn't be that bad but property taxes are crazy as well, we pay 6k a year in property taxes for a townhouse.

Azdr0710, do you think that many of these less expensive homes may likely be of lower quality (or in bad areas)? Many of them looked quite nice but it is difficult to really tell through an Internet photo. :-)

Actually, most of these homes are tract homes, built by large builders like D.R. Horton, Engle, Centex, K&B, etc. While they are not custom homes they will be your standard "builders grade" materials. The same homes that were built all across the country. They built thousands of them. Most were built in the 2003 - 2006 time frame.

Property taxes here can range from $1200 up to $2500 depending on community, school district, etc.

fcorrales80 · 02-03-2010, 02:31 PM

I'd say the biggest defining similarity between most of those cheap homes are distance/short-sales/stripping (meaning they will need to be remodeled or have lots of interior work done), and are in neighborhoods relatively empty. Even semi-distant suburbs like Tempe, Chandler, etc have homes averaging over 200K. So I think distance from civilization is the biggest factor.

DRCR · 02-03-2010, 03:22 PM

Are there areas then that actually fall under Phoenix (with regards to zip code at least) that are in reality pretty far out? Any specific Phoenix zip codes a person should avoid?

Yes these are obviously mainly tract homes, but they seem to be decent (stucco, tile roof) for the most part. We aren't looking for a custom home; we're still young(ish) and working on getting established. Luckily we have family fairly close who are contractors that can help out with any updating/upgrading that we need to do (not close enough to advise us on where to buy in Phoenix unfortunately).

Many of the homes I'm seeing seem to be short-sales or similar. We don't mind a little work and purchasing appliances; I just don't want to end up in an empty, crime-ridden neighborhood haha.

Obviously, as we get closer to a move we will consult with a realtor in the area, but in the meantime I want to get an idea of whether looking in this range is a realistic possibility or just a pipe dream.

Ponderosa · 02-03-2010, 03:49 PM

Quote:

Originally Posted by DRCR

Are there areas then that actually fall under Phoenix (with regards to zip code at least) that are in reality pretty far out? Any specific Phoenix zip codes a person should avoid?

Yes these are obviously mainly tract homes, but they seem to be decent (stucco, tile roof) for the most part. We aren't looking for a custom home; we're still young(ish) and working on getting established. Luckily we have family fairly close who are contractors that can help out with any updating/upgrading that we need to do (not close enough to advise us on where to buy in Phoenix unfortunately).

Many of the homes I'm seeing seem to be short-sales or similar. We don't mind a little work and purchasing appliances; I just don't want to end up in an empty, crime-ridden neighborhood haha.

Obviously, as we get closer to a move we will consult with a realtor in the area, but in the meantime I want to get an idea of whether looking in this range is a realistic possibility or just a pipe dream.

That is a very real risk. Many of these 60K specials are in neighborhoods that are going to be low income and possibly elevated crime areas in a few years. Think about who is buying these homes. 60K homes are attracting investor/rentals and people who can't afford more in addition to the guy from out of town who thinks he has found the home equivalent of a free lunch. If you plan to live there a while, or have kids in the schools, you need to be very careful where you buy. There's a lot of areas around here I would not want to live even if I could find a 3000 sf foreclosure for under 100K.

DRCR · 02-03-2010, 04:11 PM

Thanks for the reply. Are there any cities or zip codes that you would consider generally safe for real estate in the Phoenix area?

azdr0710 · 02-03-2010, 07:48 PM

I don't know neighborhoods by zip code.....based on stability, "safe" cities include Tempe, Scottsdale, most areas of Phoenix, Glendale, parts of Mesa, Chandler and Gilbert and parts of Litchfield, Peoria, Buckeye....I'm forgetting some places....

I think I'd stay away from anything built by a mass tract-home builder that's newer than ten years old, but there are exceptions.....you should look for an established and stable area with few foreclosures/short sales....the newer tract homes on the fringes of the urban area may be the areas to avoid....you won't get a $60K deal, but you'll get stability, faster appreciation, possibly less crime, more owner-occupied homes nearby.....

also you need to consider where you need to be in the valley for work access, getting to friends and relatives, access to important family activities.....