Homes in Mesa follow a fairly simple rule when determining values, but it’s a rule even most owners of homes in Mesa might not believe: Single-level homes in Mesa sell for an average of 30% more than a similarly-sized two-level home in the same area!
| Community | Single-level sales | Single-level sp/sf (1) | Two-level Sales | Two-level sp/sf (1) | Difference |
| Amberly Lane | 1 | 93.56 | 7 | 71.53 | 30.8% |
| Boulder Mountain | 7 | 128.82 | 2 | 98.23 | 31.1% |
| Cecina | 3 | 98.50 | 7 | 75.64 | 30.2% |
| Crystal Manor | 1 | 90.62 | 6 | 79.63 | 13.8% |
| Desert Heights | 7 | 81.27 | 8 | 71.7 | 13.4% |
| Estates at Desert Shadows | 8 | 111.73 | 6 | 85.6 | 30.5% |
| Grandview Estates | 8 | 114.12 | 4 | 82.29 | 38.7% |
| Las Sendas | 69 | 156.77 | 45 | 125.06 | 25.4% |
| Marble Creek | 2 | 80.44 | 4 | 77.75 | 3.5% |
| Moondance | 15 | 82.94 | 1 | 79.67 | 4.1% |
| Saguaro Mountain | 5 | 105.76 | 4 | 75.66 | 39.8% |
| Sierra Estates | 3 | 113.91 | 2 | 87.95 | 29.5% |
| Total | 129 | 130.62 (2) | 96 | 100.18 (2) | 30.4% |
| 1. Sales price per square foot 2. Calculated using weighted averagesData based upon sales from Arizona Regional Multiple Listing Service for the period 9/28/09 – 9/27/10. Only Mesa communities with a mix of single-level and two-level home sales were included. |
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Without overstating the obvious, knowing this information is important when considering selling a home. Many websites and inexperienced real estate agents alike will simply apply a simple formula of price-per-square-foot times your home’s size to determine its value.
(sales price/sq ft) x (building size) = value
Right? Not at all. It may apply to a commercial warehouse, but not to a residence.
The error in this thinking (actually one error of many) is that the price-per-square foot value being used is usually an average of all the homes in an area; single-level and two-level alike (not to mention those with and without pools, home sites of varying sizes, location in the community differences, view differences, improvements to the property…you get my point).
This issue recently came to light when a client recently going through the process of a mortgage refinance received an appraised value much lower than what they had expected…about 5% lower! We know homes in Mesa have decreased in value over the past few years, but to see such a significant drop over the six months since he had purchased his Mesa home was surprising, especially since values have remained level or, in some cases, actually improved. And, unfortunately, this lower value would preclude my client from refinancing his home mortgage.
While reviewing the appraisal of my client’s single-level home, I noted that the appraiser used a nearby two-level home as a comparable sale and weighted it rather heavily in the value calculation. The appraiser had not applied what we felt to be accurate adjustments when comparing a single-level home in Mesa to a two-level home. The appraiser applied an adjustment of $10,000 to compensate for the multi-level home, about a 3% adjustment in value instead of the 30% difference that is more reflective of the Mesa real estate market.
Armed with this information, my client and I put together a package to request a value reconsideration of the appraisal. The appraisal company carefully reviewed the information and did, in fact, revise the overall appraisal upward by 4.75%, allowing him to proceed with his refinance.
There are many factors that apply when determining the value of a home. It’s okay to use the websites for seeing trend information, but when you want an accurate valuation of your home you should seek the advice of a experienced local real estate professional.
Alex Casteel is owner of Casteel Real Estate Professionals, a real estate brokerage serving the communities of Mesa, Arizona, and the Phoenix metropolitan area. Alex is a Certified Distressed Property Expert and earned an MBA from the W. P. Carey School of Business at Arizona State University.