By Mike Bodeen · 18 January 2016
View Randy Johnson’s Home for Sale and the Valley’s Most Expensive Listing
Question: “What is the most expensive house that has ever sold in the Greater Phoenix area?” Michael Orr of ASU/Cromford Report, responds:
“This is harder to answer than it sounds. We can easily see the highest price paid for a closed listing through ARMLS (Arizona Regional Multiple Listing Service). The answer is $12,500,000 – for 6902 E Grapevine which closed in Cave Creek in 2000. This ranch property claims over 10,000 SqFt of living space on 225 acres. Since a lot of the value is in the land, which includes 8 different parcels, it’s hard to determine what the home itself sold for, but it is probably less than $10,000,000.”
“The highest price ever seen recorded for a single family home is $14,000,000 for 8040 N Mohave Rd in Paradise Valley during 2008. It is probably worth much less than that today, because luxury home prices were still peaking in 2008.”
There are currently 7 active listings that aspire to set a new record for the highest “sales price” ever seen in Greater Phoenix through the MLS. The highest asking price is currently $32,000,000.” It’s been on the market for 735 days.
Well, what about former Diamondback’s great Randy Johnson’s home for sale at $25,000,000 in Paradise Valley? Well maybe he can get his price if he includes his sports memorabilia in his (Trophy) room. It’s been on the market a mere 504 days.
So for these 7 incredibly gorgeous estates that are on the market for more than $14,000,000, what are their chances of selling at or near their asking prices? Well, according to history, they have a zero percent chance of selling! Zero? Zero. Zilch. Nada. That’s right, there are no buyers and never have been any buyers in this price range, hence the elongated listed periods.
Are there any homes currently under contract for over $14 Mil? No. The highest priced home under contract is in Paradise Valley with a listed price of $10,000,000.
In valuating homes for sale in any price range, no matter how awesome the home is, there’s always a certain price point in which history has said there are no buyers. This is called “reality.” It doesn’t mean that someone won’t pay your (high) price in the future, but your odds for finding that buyer diminish more so the higher beyond reality you go.
The real question then becomes, “Whereas some buyers out there may have the funds to buy, do we have the time to wait?”
Market data referenced in this article comes from The Cromford Report.