Two weeks ago, Sean and I went to view 21 properties with the goal of adding to our portfolio. Out of the 21 potential projects, we were able to find two properties that fit our acquisition criteria. Upon speaking with the listing agent, we learned that there were 4 other offers on the property and were entering into a highest and best scenario. For those of you unfamiliar with House #3, this is deja vu. Find out about our bidding strategy by reading our previous post: House #3 – Pasadena: The Art of Negotiations Part 1. Long story short, our offer was accepted due to our favorable terms.
In this segment, I want to discuss our typical buyer profile and our mission to lead the change in buyer tendencies and their paradigm shifts. According to the U.S. Census Bureau 2009, 54.1% of the Greater Phoenix population consisted of people between the ages of 20-59. Contrary to popular belief that Arizona is a destination intended solely for senior citizen retirees, with an average age of 33.7, Greater Phoenix is actually the 5th youngest metro region nationwide. So what’s the relationship between age and a buyer’s homeowner needs? The old adage of our parents generation is more square footage = a better home. The inherent problem with this school of thought lays in the trade off between more square footage and the location to which more square footage is available. Most of you may know that the current expansion pattern of the Greater Phoenix area trends outwards away from the city core (Naturally this is the only way to construct a new home on land that has not yet been developed). Therefore, living in a larger new build requires you to be further from the city core. When this expansion hits its critical mass, at some point consumers will reach their threshold for outer city limits living and that larger home is no longer worth the commute back into the city. We at Versutia_ believe that Generation Y has reached that threshold and we want to lead the change and bring awareness back to inner city living.
In the past couple years, there has been a strong push for environmentally friendly, energy efficient, green products. The greenest building is the existing one. An additional component of green living includes quality of life improvement. We believe we can tastefully fuse green living and great design to provide an amazing product that future homeowners will be proud to call home. Reference House #4: 5548 N. 12th Ave:
These types of homes were typically block construction built between the 1920-1960s. Most of these homes are twice our age and everything except for the shell is obsolete. For example, these homes contain aluminum wiring, galvanized plumbing, cast iron waste lines, plaster walls, single pane windows, outdated fixtures, etc. Over time, all of these items will fail. Currently, many of our fellow Gen Y’s are already shopping for homes in these neighborhoods. These first time home buyers will most likely encounter two scenarios:
1. Old everything – The home has never remodeled. At some point they will need to go through the daunting task of remodeling the home on their own (over spending, unreliable contractors, etc.).
2. Investor “remodeled” – The home has a lipstick makeover. Investors will paint and carpet the floor, cover up structural issues, leave old wiring and plumbing, and call their finished product a “complete remodel.”
For homeowners that don’t know any better and purchase one of these homes, everything will fall apart thereafter. These are the types of experiences that push people to live on the outskirts. Versutia_ is extremely passionate about changing the old adage of more square footage = a better home. We want to prove that homeowners can work with smaller spaces provided the floor plan has been reconfigured for a higher and best use. We want homeowners to improve their quality of life. We want homeowners to help the environment. We want homeowners to cut down on energy consumption. We want homeowners to live in great design. We want homeowners to enjoy a hassle free ownership experience. We want homeowners to have a Versutia_Home.
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