Ask a Scottsdale / Phoenix Real Estate Expert

Have questions about buying a home or investing in real estate in Scottsdale or Phoenix? Relocating from Canada? Buying a second home? Or just want to share your experiences?

Long-time real estate expert in Scottsdale and Phoenix Warren Neal can answer your questions, whether it’s about working with realtors, getting the best conditions on a home purchase, or just life in Scottsdale or Phoenix.

Go ahead. Ask a question now. Or browse our answers to previous Scottsdale and Phoenix real estate questions.

You’ll receive the response to your question by email, and it may also be posted as an anonymous question on this site.

Scottsdale and Phoenix Real Estate Q & A

Q1: My husband and I want to make sure our next house in Scottsdale has maximum resale value, as we plan to live in it for a few years and then sell it, as an investment. What things should we look for to make sure of the greatest resale value?

A: Location – As in all real estate transactions, location is king. Make sure the house is a good distance from busy streets yet convenient to schools, shopping, cultural activities, etc. Avoid corners and busy intersections in communities.

The view – A good view sells at a premium. The view can be very important in Arizona homes, helping to sell your property and enhancing the property value.

Lot and landscaping – A level, rectangular shaped lot sells best. There should be a decent sized front and back yard. You’ll enjoy more value if you buy an under-landscaped home and improve it yourself, as landscaping yields a premium. (Remember, you’re trying to buy the best value and sell for the highest possible later.)

House Size – Don’t buy the largest model in the neighborhood. The homes closest to yours will affect your homes value, so the value of a smaller or moderately sized home can be enhanced by nearby bigger ones. Conversely, a larger home’s value may be negatively affected if it is surrounded by smaller homes.

Rooms – Two and a half bathrooms with 3 or 4 bedrooms is the most popular, so you’ll have more potential buyers.

Garage and Storage – Garages add to the resale value. At least 2-car garages are recommended, although 3-car garages are becoming more popular here. Of course walk-in closets for the master bedroom and plenty of closet space throughout the house. Laundry should be on the first floor, out of sight.

Kitchen – The most important room. The larger the better, with modern appliances. Easy access from the kitchen to the dining room, family room, garage, and back yard are important.

Fireplaces – A fireplace in the family room can add value but don’t pay extra for one in the living room (if separate).

Swimming Pools – Buy for your own enjoyment, as a pool may actually restrict the number of potential buyers (families with children sometimes avoid them for safety reasons).

Q2. We want to get a house with a pool in Scottsdale, as we figure we’ll use it a lot with the heat. Do you recommend buying a house with a pool or one with no pool and then installing one?

A. Financially, you’ll be better off if you can buy a house with a pool already installed. Paying a contractor to install one is very expensive and you won’t recoup the investment when you sell.

Many communities here in Scottsdale and Phoenix offer nearby swimming pools as alternatives if you can’t find the house you want with a pool. If you do decide to install a pool, you should be planning to stay in that home long term to derive maximum enjoyment from your investment.

Q3. The seller hasn’t found a replacement property and the 60-day escrow is closing. They want to extend another 30 days. If we don’t agree, will we lose the appraisal fee, home inspection fee, and our deposit? We really want to move now…

A. You’re likely to get your deposit returned with a cancellation fee deducted. But you’ll be out the amounts you paid for appraisals and inspections. You’ll also need to pay them again if you decide to buy a different property.

If you really want this property, why not place some conditions on the contract extension? For example, stipulate that the seller must find a home with a certain number of days. Specify that they must pay the escrow cancellation fees and provide compensation for the appraisal and home inspection if they do not.

Q4. What are the homeowners insurance rates like in the Phoenix area?

A. The State Of Arizona 2005 Homeowners Premium Comparison Survey compared premium quotes from over 45 insurers for a two story, single family dwelling with single-cylinder dead-bolt locks, one fire extinguisher, and two smoke detectors, in excellent condition, with masonry walls, and built in January, 2004.

You can see rates varied by thousands of dollars for the same house, depending on the insurance agency.

Phoenix: $653 – 3,544
Mesa: $653 – 3,612
Peoria: $653 – 2,719

The moral of the story is that rates can vary widely by insurer in the Scottsdale and Phoenix area. You’d be advised to shop around. You can access the State Of Arizona 2005 Homeowners Premium Comparison Survey for the price by insurer and their contact information.

Q5. Do you know why homes in Arizona (Phoenix) are built without basements? It seems to me that basements would be ideal for escaping the heat.

A. While northerners may build part of their leisure life around a family or games room in the basement, you’ll rarely find basements in homes in Scottsdale and Phoenix. I believe the reason has to do with the cost.

Basement foundations are more expensive to build. Homes with basements may have a slightly higher sales price, but not high enough to compensate the builder for the added cost of building a basement. Excluding a basement from the home design allows builder to offer more options in a house while keeping costs low. Basements can also be troublesome during a rainy season when flooding may occur.

Q6. I signed a listing agreement, but I have changed my mind about selling. How do I cancel, and will it cost me anything?

A. Sellers and buyers do change their minds sometimes, and a professional real estate agent is aware of that. Just tell your agent you have changed your mind and decided not to sell after all.

It’s not likely that the agent will give you a hard time about canceling. They need your cooperation to sell the house, so there’s no way they can hope to proceed if you really don’t want to sell. They will want to maintain goodwill, so you will want to get in touch with them when you do decide to proceed with the sale.

However, if you attempt to put your Scottsdale / Phoenix home back on the market during the contracted listing period using another agent, your original agent will be likely to enforce their contract.