Real Estate

Strategies to Consider While Waiting For Your New Build Home to Be Finished

By Shelley Sakala

The shortage of homes for sale in Phoenix has been reported ad nauseum. Too many buyers, not enough homes. That means if you sell your current home right now, you might have no place to go. And while the market may correct itself before too long, this shortage has kept many sellers out of the real estate game for the past year – which contributes to the shortage of houses for sale. Vicious circle. For all these reasons, we’re seeing more people looking at new build homes. Unlike existing homes, these have a more stable price point that isn’t subject to a weekend bidding war with California investors. Once you’ve signed the papers and put down your deposit, you’re on a direct path to home ownership – but you might have to wait several months until construction is complete. If that’s the case, here are four strategies you can leverage to buy yourself some time while your new home is being built.

LEASE BACK THE HOME YOU’RE SELLING

The lease-back is a situation whereby after the closing date, the seller no longer owns the home but still gets to live there for a set period of time at a set price. In other words, the sellers pay rent to keep living in the home they just sold. This can be a win-win for buyers and sellers, giving everyone time to get their affairs in order before moving in or moving out.

STRETCH OUT YOUR CLOSING DATE

A typical closing can take up to two months, and longer closes can be negotiated. Long closes, however, have built-in risks. They give the buyer more time to keep shopping for a different home and try to wiggle out of the deal you have in place.

FIND AN APARTMENT

Leasing an apartment can be a smart way to bridge the gap while waiting for your new build. Keep in mind that this option requires you to move twice and pay for storage for everything that won’t fit inside your apartment.

EXTENDED STAY HOTELS

In an extended stay hotel, the ease of hotel living is combined with the comfort of a fully furnished apartment. Most offer suites with separate bedroom/living areas, full kitchens, and nightly dinner service. There will be little room for anything aside from your clothes, but the amenities help make up for any inconveniences. One last recommendation: If you ultimately decide to purchase a new home, I strongly recommend bringing a Realtor with you the first time you visit the community. It costs you absolutely nothing to have a Realtor in your corner, and he/she can guide you in the negotiations, upgrades, paperwork, and financing.

Shelley Sakala is a local Realtor with The Sakala Group.

Two Developers Seeking Planning Approval to Build Nearby Apartment Complexes

By Jenna-Lee Neff

As the area continues to grow, two developers are in the planning and planning approval process that, if all goes as expected, will bring a 14-story apartment building and a five-story apartment building to the area.

The 14-story high-rise apartment building is planned for the southwest corner of Scottsdale and Bell roads, across the street from The Promenade shopping center. The Hampton Group, Inc., a commercial real estate development and investment firm in Scottsdale, lists the project on their website as a 255-unit multi-family apartment complex in the design and development phase.

In a recent committee meeting, two members of Phoenix’s Paradise Valley Village Planning Committee stated they think the building, which will reach 157foot according to current plans, is too tall. The proposed building would stand 32 feet taller than the 125-foot landmark Frank Lloyd Wright Spire that stands directly across Scottsdale Road from the development site.

Committee Vice Chairman Joe Lesher, one member concerned about the height, also expressed concerns over the impact the development would have on traffic at the intersection.

Nicholas Wood, a development lawyer from the Phoenix law firm Snell & Wilmer who presented during the committee meeting, says the Valley’s growth is making it a necessity to build taller residential buildings.

The development would still need approvals on the building plans and approvals on rezoning the area to move forward. Those approvals will need to come from the planning commission and the Phoenix City Council later this year. Two businesses currently operate on the proposed site; La Torretta Ristorante and Coconut’s Fish Café would be displaced if the planned development gets the approval to move forward.

The second planned development, a five-story apartment building, which will sit across the street from the Kierland Commons shopping center, will be a 360-unit multi-family building with an attached parking garage.

In a project overview submitted to the City of Phoenix, developer RD Kierland says the project provides an opportunity to redevelop two underutilized onestory office buildings with surface parking on the 7.14 acre site along the Greenway Parkway corridor into the proposed five-story luxury rental residential community.

“The overall goal of the project is to provide a quality, modern urban living experience for its future residents and to create a pedestrian friendly, walkable environment along its three roadway frontages for the benefit of the larger community,” according to the project overview.

Recently, Phoenix’s Paradise Valley Village Planning Committee unanimously approved the general plan and rezone change for the property. However, the project still needs approval from Phoenix’s Planning Commission. The commission is expected to review the project during a Thursday, May 6 meeting.

Snell & Wilmer is representing both The Hampton Group, Inc. and RD Kierland on these projects.

Jenna-Lee Neff is a freelance journalist, digital audience analyst, and nonprofit public relations professional. Learn more about her work at jennaleeneff.com.