Scottsdale Luxury Homes take a hit as real estate market continues decline.

The Scottsdale real estate luxury home market has taken quite a fall lately as it seems even the luxury market is not immune to the nation’s real estate crisis.  With home prices falling at a rapid pace even high affluent areas of the country like Scottsdale Arizona are feeling the squeeze.

I receive 2-3 calls per week from Scottsdale homeowners who are upside-down in their home.  Usually the best thing for them is to let us help them do a short sale.

A short sale is when more money is owed on the home than it is worth and the bank agrees to accept less than what is owed in order to avoid foreclosing on the property.

We are consulting clients who paid 1.2 million for their home a few years ago but now face a market that values the home around $800,000.  With outstanding mortgage balances of around $950,000 their best option is usually a short sale.  Unless the homeowner wants to come up with the $150,000 in cash  to make up the difference.   We don’t see that too often.  We are having lots of success negotiating deals like this with the bank and it benefits all parties involved.  The homeowner can get on with their life and the bank doesn’t have to worry about dealing with the time and costs of foreclosure which usually nets them much less money.

With no end in sight to the real estate decline its a sure bet that we’ll continue to see homeowners faced with difficult decisions but it’s good to know that there are options out there for all of us.

Related posts:

1. Arizona Real Estate market supply of homes varies greatly
2. Real Estate Short Sales – Scottsdale Az
3. Phoenix & Scottsdale Real Estate Statistics
4. Luxury Homes Making a Comeback?
5. Phoenix & Scottsdale Homes market Stats