Interested in new construction homes in Paradise Valley 2023. Good news!

There are currently over 35 NEW construction homes for sale in Paradise Valley. Noting, Prices range from 3 million to over 30,000 million. This in stark contrast to a low inventory just a few years ago.  Consider this,  There are over 140 properties on the market in Paradise Valley, over 20% of these are new construction – single family – detached homes. This is one of the highest percentages of new construction homes we’ve seen in years. This translates to excellent opportunities for Paradise Valley home buyers. Interestingly, even in a very uncertain real estate market, home-builders are shooting for the moon on the pricing.  Per square foot pricing on these homes goes as high as over $2,300 Per square foot. So beware. New construction homes in Paradise Valley 2023 have the highest depreciation of any home you can buy in Arizona. Curious why? Please feel free to call.

Featured is a sample of just one of the Beautiful homes available.

The Process of Buying New Construction in Paradise Valley

My goal is to be of service to you. I say it often but it cannot be emphasized enough. ” In Real Estate, there is a difference in Real Estate professionals” For more tips on a ‘best home buy” Please call me now at 480-450-4632.

Realtor -Specializing in Scottsdale , Arcadia and Paradise Valley Arizona

Michael Chaisson – Realtor
Russ Lyon Sotheby’s International Realty
Premier Client Services
Ranked Top 1% Nationally
Circle of 26 Excellence Award Recipient
480-450-4632

Please feel free to browse this site for information on activities in Scottsdale, Arcadia and Paradise Valley (see resources Tab)and recommendations for the best restaurants and service providers in the community. I also encourage your recommendations.

One of the most important aspects; yet least understood part of the home purchase process is, how Paradise Valley home appraisals are done. In other words, “formulated”. Home appraisals are prepared for three primary reasons. #1. Homeowner is refinancing an existing loan on a property. The lender requires a new appraisal. #1B. A NEW lender needs an appraisal done for a new loan. #2. A Home buyer is purchasing a home and the bank requires an ‘appraisal’ in order to establish value and approve the loan based on the value of the security. #3. The third most common appraisal is ordered independently by the home owner. This appraisal is ordered to determine or obtain an estimate of a home’s market value.

When is a Home Appraisal Ordered

In many cases appraisals are ordered prior to placing the home on market for sale.  In the first two scenarios. It is the lenders primary goal to be assured they have a “valuable security” in the event of default. Essentially an ‘asset’ – The lender requires a security ratio that meets lender guidelines. For example, If the borrower is qualified for a $800,000 loan on a $1,000,000 property (Known as an 80/20). The lender/note holder requires confirmation the property is in fact worth $1,000,000.

How do Appraisers Appraise a Paradise Valley Home

So let’s get to it. How Paradise Valley Home Appraisals are Done, actually formulated. The myths and the facts of appraisals. In any home appraisal. The appraisers goal is to compare similar “sold” properties with the “subject” property and then make ‘feature value adjustments’. Adjustments up or down are made based on the plus or minus attributes of subject property versus, the properties being compared. Seems easy enough right? Well it is not so cut in dry in the custom luxury market of Paradise Valley, Scottsdale or Arcadia AZ.

The Tract Home Appraisal

In tract home communities. There are usually three or four floor-plans, most of the homes are on similar lots with similar features. Minor adjustments might be made for a home with granite counter tops vs. Formica. In addition, because the price range in tract communities are so much less. The adjustments are less significant.

Examples – Tract Appraisal

For example, if a home being appraised is the same size as a home that sold two weeks ago. On the same size lot, built the same year. Neither home with a pool, however one home has upgraded counter tops in kitchen and bathrooms. The appraiser may make a line item adjustment as a ‘plus’ for the subject property of $5,000.00. If the comparable home sold for $400,000 the additional upgrade of the granite might allow the subject property to be appraised for $405.000. If this still seems easy and clear cut – ahhh wait. It gets more complicated as we move up to custom luxury homes. That is why there are appraisers certified to do appraisals on properties valued at over a million dollars. Below is an example of why there are specific appraisers – certified for luxury homes.

The Luxury Home Appraisal in Paradise Valley

How Paradise Valley Home Appraisals are done is fundamentally the same way as tract communities. Firstly, there is a value comparison of like properties similar in size, age, condition, lot size, views, gated vs. non gated, pool, no pool, age range, size range, proximity etc. However the stakes and features, carry substantially more weight and vary dramatically in the luxury home market.
Not only do the standard finish variables carry more weight. In addition, features not as easily jotted down on a standardized form have a significant impact on value.  For Example. The actual over-all presence of a home. How finishes are installed, manner and feel of construction, design and floor-plan. In the luxury real estate market, particularly in Paradise Valley. We may see two 6500 square foot homes. Both built same years, same size lots etc. However from a personal perspective.  You may enter one of these homes and it may feel and look absolutely breathtaking.  Whereas the other may feel like an over-sized tract home.  I see this all the time. So, what is the “luxury homes market value.  How is fit, finish and presence justified/quantified on a piece of paper.

The Un-quantifiable Must be Quantified in Luxury Appraisals

Can the luxury home appraiser check the adjustment box “breathtaking? ” No, they cannot.  As an interesting note here. Even IF the appraiser were to itemize the finishes on the “appraisal forms”.  The homes may sound equal. Both may have marble, hardwood, etc. However again. The #1.Application #2. Design #3. Build Quality and  #4. Presence of one may make the luxury subject property’s market value (to the savvy luxury buyer) a million dollars more.  Having subjective variables like these carrying so much weight with the luxury home buyer. Therefore, qualified Luxury Appraisers must be allowed to submit appraisals with a very high degree of manipulation. There are so many variables factored into the value of a luxury home. I could write entire articles on any single value adjustment on any luxury home appraisal.

Appraisal Adjustments in Paradise Valley – What are They

For example “Views”. ‘View’ value assessment’ alone could be a book. Don’t get me started. I have been working as a Realtor specializing in Luxury Homes for a number of years. As a result, I’ve learned a book or two about luxury homes. For instance, one of the most interesting facts to me is. One of the most significant features affecting a Luxury Home’s value is not typically part of the appraisal, even though this singular feature can affect up to 35% of a luxury home’s market value. Yet little or no value is given to it on the appraisal. There is limited space here to review details. However please free to call me to find out what may affect up to 35% of a home value but is NOT on the appraisal form.

Weird Science Appraisals

Before we get to the rest of the article. Is anyone reading old enough to remember the movie weird Science. I digress. Following is an example of how appraisals work and how they can be manipulated. However, as I write this article I am not placing any judgement whatsoever on the ability of appraisers to manipulate an appraisal. But to educate and dispel any myth that appraisals represent supreme value accuracy. I am here to share. #1. Home appraisals are simply a ‘science of opinion’. Depending on the #2.Experience of appraiser #3. The purpose of appraisal. #4. The “intent” of appraiser. The completed appraisal for the same luxury home can vary wildly.

Example of ‘Science of Opinion’ Appraisal

I had a buyer interested in an exclusive pocket listing of mine in Paradise Valley.  The seller said, “he would be happy to sell his home for – “appraised value”.   I said, “great”, the buyer would be happy to pay “true market value” which should translate to “Appraised value”. Meaning, what others buyers paid for similar size, age, featured homes in the same community.
To make sure the seller felt 100% comfortable with market value, I provided the names of three very experienced Paradise Valley appraisers. I further suggested that the seller, “interview the different appraisers”.  Then “pick the most experienced Paradise Valley appraiser. With whom they felt most comfortable”. I offered, “that I would need not information on whom they selected”. I was nice, honest and helpful.

How Appraisals can be Inaccurate

How Paradise Valley Home Appraisals are done and not done correctly. 10 days after discussing the appraiser options with sellers . I receive the appraisal from an appraiser based in central Phoenix. Not an appraiser specializing or intimately familiar with Paradise Valley homes. The seller did not use any one of the three professional Paradise Valley appraisers I shared. Therefore, the appraisal came in approximately $125,000.00 OVER true market value.  I know this because that home later sold after 202 days on market for 125,000 less than appraisal prepared by the central Phoenix appraiser.
You ask. how did that happen? First we have go back to the cornerstone of any appraisal which should be “like properties” with adjustments according to the “public’s cash value assessment of attributes or negatives.”

Let’s Appraise the Seller’s Paradise Valley Property

#1. The subject property was #1. Very dated with very basic finishes #2. Condition was a ‘5’. #3. The yard had virtually no landscape. The pool was in a very odd location. All of these issues were fine with my buyers. Again as long as they paid market value. However, the appraiser did not use “like home comparables”.  The appraiser used homes that “penciled out” as ‘like homes comparable’ i.e. same age range, similar square footage etc but on fundamental points, the homes were not equal. So rather than use all the sales in the last six months of equal, similar, condition, finishes, yards, age, size homes which sold for between 2.45 million and 2.75 million. The appraiser used “sold’ homes that matched only the subject property’s base attributes. Age and size were equal but the compared homes were superior in all other areas.

Comparing Homes For Sale in Paradise Valley

In this manner, the appraiser was able to adjust the subject properties ‘appraised’ value UP. The appraiser matched only the base criteria i.e size and age homes. Then applied sold homes that were perfection, beautifully remodeled, gorgeous yards, landscape, condition ‘9’, impressive entries and interiors. In addition; to support the two impressive “sold’ homes. The appraiser used “active listings” to also support what the subject home might sell for. The application of ‘active listings ‘is part of a standard ‘ home appraisal’.  However the appraiser used the most expensive “active listings”.  Then made an adjustment downward from a “high point”.  Rather than using comparable homes that were more reflective of the subject property.

Playing with the Appraisal Numbers

So the appraiser manipulated the standard – allowing for a higher appraised “market value”. Did the appraiser technically do anything wrong?  Actually no.  In Fact, by guidelines he/she followed the rules. Was the finished ‘appraisal’ accurate or reflective of the homes actual market value? The answer was a resounding “no”. Did my buyers purchase the home? Again the answer was a “no”.

Both of the Homes featured below were built within one year of eachother and livable space is within 400 square feet of eachother.  One sold for 2 million MORE.

Tips for Ordering an Appraisal in Paradise Valley

My recommendation when ordering an independent appraisal is #1. Make sure to use an appraiser very familiar with the area. #2. If you are appraising a luxury property make sure to use a appraiser certified to do luxury homes.
#3. Make sure the appraiser knows you are looking for an accurate, fair market value appraisal. Home appraisals can be similar to how politicians play with numbers to favor their agenda. In other words. An appraiser can manipulate the numbers in such a way as to raise or lower the “appraised value of a home”. So make sure your appraiser does not “play” with the numbers. There are so many features that factor into a buyer’s value decision for a home. The very best, most experienced Realtors have the knowledge to quantify those numbers into a reasonable range price when considering a purchase offer. Or assist in determining market value in order to sell a luxury home for the highest price. Please note.  I said the “Very Best Realtors”  I did not say, ‘check with your friendly local real estate agent or a friend with a real estate license’.

More Home Buyer and Seller Real Estate Tips

To learn more about the #1.Real estate market. #2. The best luxury home finds. #3. Real estate trends. #4 the best values in this market. #5. Your home’s value in Paradise Valley, Scottsdale and Arcadia. Please feel free to call me. I am always happy to discuss real estate.

Michael Chaisson.Realtor. 480-450-4632. Russ Lyon Sotheby’s International Realty. Premier Client Services. Ranked Top 1% Nationally. Circle of 26 Excellence Award Recipient.

Bonus Round – Home Appraisals

*As a result of the financial crisis circa 2008.   Federal guidelines mandate that all home appraisals are to be arm’s length transactions.  Lenders are not supposed to be able to have any influence on the appraisal results. Laws instituted as result of the 2007-2009 financial crisis. Lenders are required to order appraisals through “independent appraisal management companies”. Oddly enough Wells Fargo bank owns one of the largest independent appraisal management companies. “Arms length? “
*Appraisers do not base ANY value adjustments based on what improvements may have cost the home seller.

If you’re buying or selling a home in Paradise Valley; it is easy to get mis-information attempting to derive all facts and data from internet searches. Cursory home research is clearly possible online. However, to achieve the highest net value from any research and add to this comprehensive assessment and evaluation skills, only a talented Paradise Valley Realtor is going to be able bring this value. To this end, the goal is to work with the very best!  A Realtor, specializing in Paradise Valley homes and the community. The net result is, ‘ the buying and selling process goes smoothly’, while still saving you or netting you the most funds on your transaction. Words cannot express how important hiring an honest experienced professional is. I see buyers routinely lose hundreds of thousands by NOT using the Best Realtor. There is absolutely a difference! In real estate, as in every profession there are those individuals with MORE talent, *honesty, knowledge and experience than another.

Buyers, many times, want to see every listing

Most home buyers will spend an extensive amount of time searching for homes for sale in Paradise Valley online. Early research is imperative!  However it is always essential to work with a specialist in the community. One that can evaluate (with you) the plus and minus of a particular property. Is the home worthy of further review ?…Or is one worthy of previewing for offer consideration. A professional Realtor will study different factors about the property before spending your families valuable time. For Example, Is the home, on the best street for value, back to a busy road or has it been on and off the market for months or even years.  Is it a great price?.. requiring a faster preview ? This is just a small sample of the preliminary research a good Realtor will share with you BEFORE you view a home in Paradise Valley.

Sellers – Pricing and looking at neighborhood competition

Sellers bring on unnecessary financial risk and stress by looking at neighbors Paradise Valley homes for sale and doing personal comparisons. Again, this is what an experienced Paradise Valley Realtor, who specializes in Paradise Valley is for. I know how to advertise your home for the greatest market reach. I know what comparable homes in Paradise Valley are selling for, I also know how to MAXIMIZE your home’s value. Together we will price your home to SELL at a TOP price within the community. Consider this;  The real estate agent that priced and is marketing your neighbors home may not be the best agent. Or the agent that represented the buyers for the home you are using as a ‘comparable’ may NOT have been the best negotiator. So a home sellers needs the best agent in Paradise Valley and/or Scottsdale to evaluate, prepare and market your home.

Paradise Valley Real Estate Specialist – Buyers

As a Paradise Valley Realtor, l love what I do. Accordingly, for buyers, I am most interested in finding you the very best Paradise Valley home for sale without compromise and without rushing.

Paradise Valley Neighborhood Specialist – Sellers

For Paradise Valley Sellers, I bring over thirty marketing tools that consistently result in the highest sales in the neighborhood. Coupled with, I make the selling experience go as smoothly as possible to provide you extra tremendous value.

*An excellent-talented Paradise Valley Realtor, I also helps buyers and sellers shop for lenders and financing. Consider this, when you do this yourself; you may miss opportunities. Yes, there is more to consider than shopping for the best interest rate. There are many more features and options to consider when preparing to buy or sell a Paradise Valley Home –Scottsdale – Phoenix home. In one case, my lender saved the entire contract for my seller – by helping other agents buyer close the loan.

Research Is Important

So YES!..invest time researching a home for sale in Paradise Valley – Arcadia, Phoenix or Scottsdale but also, please kindly take a minute to share your home buying or selling goals with me. Being a respected and talented Paradise Valley Realtor has been dutifully earned.  In other words, a talented REALTOR is as important as great doctor during an important surgery!  If you align yourself with an expert real estate professional like myself,  I will either save you money on your home purchase or net you additional funds on your home sale.   There are many houses for sale in Paradise Valley, Scottsdale and Phoenix but selecting and differentiating the “best” one takes a very experienced professional. My Clients always buy the very best home, within their budget. In fact – Settling is not an option.

Hire the Right Paradise Valley Realtor

My goal is to be of service to you. I say it often but it cannot be said enough, “in real estate, there is a difference in Real estate professionals.” For more tips on a ‘best home buy” Please call me now at 480-450-4632.

Realtor -Specializing in Scottsdale, Arcadia and Paradise Valley Arizona

Michael Chaisson – Realtor
Russ Lyon Sotheby’s International Realty
Premier Client Services
Ranked Top 1% Nationally
Circle of 26 Excellence Award Recipient 480-450-4632

Please feel free to browse this site for information on activities in Scottsdale, Arcadia and Paradise Valley (see resources Tab) and recommendations for the best restaurants and service providers in the community.

Paradise Valley – Scottsdale – Home with a Guest House

Buyer tip #102  Guest House

Paradise Valley, Scottsdale and Arcadia are three of Arizona’s top destinations for those seeking natural beauty and a lifestyle second to none. When searching for a second home or primary residence in Paradise Valley – Scottsdale.  There are many home features to consider. Certainly, at or near the top of the criteria list to consider might be a #1. Paradise Valley Home with a Guest House. Equally as important may be, a home with GREAT views. And, while we are reviewing, I ALWAYS recommend #2. Purchasing a home in Paradise Valley, Arcadia, Scottsdale,  area in the “higher” appreciation area. Especially in the most sought after communities, there are the “most sought after streets”. Properties on those streets tend to hold their value better, sell faster and increase in value at higher rate. The list goes on… but in this article we review benefits of a Paradise Valley home with a Guest House

You say, “Paradise Valley is like Miami Beach”.. What ?

Ahhh let me count the ways a home with a guest house in Paradise Valley becomes not just a convenience but an asset. Starting with # 1. Many of the people who fall in love with Paradise Valley do not realize until after living here, just how fast their friends and family ‘catch on’ and want to come visit… Let’s put it this way; “Having a great house in Paradise Valley is like having a beach house in Miami” especially for those loving great weather, no humidity and slightly different scenic beauty.

TOP 6 Reasons to Buy a Home with a Guest House in Paradise Valley

Number #2. A guest house is great to have for visiting family and friends. Everyone wants to come out and visit when they know you have a home in one of the most beautiful cities in the world… Haha, of course, this could also be a reason not to have a guest house.

Number #3. Guest houses are great for potential rental income. You will likely never need it but it’s nice to know the asset is available and alternatively, it is an asset If you are feeling philanthropic and you feel like helping out a college student or expanding your outreach to other cultures via guest.

Number #4. If you travel a lot, you may consider having a friend or caretaker in guest house to make sure the home is taken care of.

Number #4.  You instantly have a private home office in one of the most beautiful scenic cities in the world.  Is it tax deductible ?? maybe and likely. Check with your tax advisor.

Number #5.  Have wondered what it would be like to have your own Private Art Studio, Yoga Palace or Man Cave?

Number #6 reason… The kids toys are everywhere!  They need a place to play outside the master bedroom !!

More ideas include storage area , crafts room, game room, pool hall, committee gathering spot. And whatever you can imagine.. a guest house is a great additional feature for any Scottsdale or Paradise Valley home. Lets look at a few homes in the premier areas with a guest house. 

Another home in the Scottsdale area with a nice guest house.

Picture below is of Guest house , Home is listed active.

Below another luxury Guest house.

And at a higher price point.

Getting even more homey.

And last but certainly not least.

To view these or more homes in Scottsdale, Arcadia or Paradise Valley or any finer residential community in the Scottsdale area

Please call Scottsdale Realtor, Michael Chaisson , Luxury Homes Specialist, specializing in luxury and architecturally significant homes in Scottsdale, Arcadia and Paradise Valley 480-450-4632   RL Sotheby’s International Realty –  Arizona’s #1 Luxury Home Broker