CHOOSING APPROPRIATE COMPARABLES

The Sonoran Lifestyle team always – first – takes a broad approach to selection of comparable properties. In the case of 14408 N. Shadow Canyon, we choose a size and price range we felt bracketed the home and applied that search over an area approximately 15 miles square to encompass some of the finest neighborhoods in Scottsdale that we believe a buyer might also consider if they are the ideal buyer for 14408 N. Shadow Canyon. While there may be additional areas a buyer might consider, we feel the adjacency to the dining and entertainment corridors of Scottsdale along with the convenience and proximity to Sky Harbor Airport and other key entertainment and corporate areas within the east Valley of the Sun are likely to be a key. The search of these comparables netted the following, which gives us only a starting point to understand velocity, inventory, pricing and competition. You will see we break out single-level vs multi-level homes. Of this group of 84 homes, only 5 possessed elevators, and none of those five exhibited price per square foot one would generally expect this type of amenity deserves. We continue to find that dynamic throughout the marketplace, year in and year out. While an elevator does provide a high level of convenience, there is still a perceived benefit to single level homes. Often times the existence of a master suite on the main level is of primary importance and will tend to nullify the impact of stairs. Ideally the outdoor recreation area will also be on the same level making entertaining ultimately convenient and memorable. Such is the case at 14408 N. Shadow Canyon.

Twelve comparable properties were chosen that represented similar but differing ways to 14408 E. Shadow Canyon. Within the body of the Competitive Market Analysis (attached) the homes were adjusted for various aspects: Lot size, views and orientation, fit and finish, age, garage count, outdoor amenities. Below is a brief summary of the most comparable homes. The Competitive Market Analysis follows this presentation.

ACTIVE PROPERTIES:

• Of the active properties, the Lost Canyon home by Kitchell Custom Homes is the most comparative property both in terms of fit and finish to equal the quality by MS Dudley Homes, but also in terms of the homesite location and views. Age is similar.

PENDING/UNDER CONTRACT:

• Paradise Lane represents the closest comparison due to its stunning location “at the end of the world” in the highest reaches of McDowell Mountain Ranch, overlooking Scottsdale. The decorating, unfortunately, is very uninspiring as are the view decks that figure prominently into the view corridor. The master suite is “upstairs” and there is no elevator.

CLOSED SALES:

• 14371 E Kalil Drive represents one of the best sales comps, and while the homes have different characters, they are similar in age, fit/finish/style and have awe inspiring views. Kalil, at 9300 Sq. Ft. sold at $500/ft seems to have sold at a discount which may be owing to the timing of the sale: Contract date was January 13, 2023 at the “bottom” of a market slide that began in July 2022.

• 12255 E Paraiso Drive is a remarkable property on 2.3 acres on the eastern slope of the McDowell Mountains. Views from this newer 2019 home are spectacular, many of which (but not all) are offered at 14408 E Shadow Canyon.

SUMMARY VALUATION:

• We believe the home at 14408 E Shadow Canyon should be priced-sans furnishings-between $5,200,000 and $5,600,000. This price closely aligns with several that have sold within the past few months in the area, but higher than many currently on the market. We believe the lack of good, comparable inventory in the current market will be a benefit to the Seller.

• Furnishings: Our team has been very effective at selling furnished homes and have sold about 30% of our inventory furnished in the past few years. In most circumstances, the furnishings provide a convenience to both the Buyer and the Seller. Because the furnishings and accessories are so beautifully designed for the home, we recommend the furnishings be included in the sale. We would prefer to have a better opportunity to view the furnishings with our Design Partners prior to sale and to set a final price. However, a value of $80,000 to $140,000 is not unlikely. While this is certainly not close to the original retail value, furnishings typically sell for approx. 25% of value.