SAN FRANCISCO—Wouldn't it be convenient if someone had clear, intelligent answers to most of your CRE-related questions? Problem solved. Nina J. Gruen, a.k.a. Ms. Real Estate, a.k.a. the principal sociologist overseeing market research and analysis at Gruen Gruen + Associates, is here to answer readers' questions.

Dear Ms. Real Estate:

My husband and I are going through a friendly divorce. He has offered me first choice as to which of our two properties I would like to own. We jointly own our full-time residence, a five-year-old, 900-square-foot Downtown Scottsdale condo, and a 15-year-old, 1,800-square-foot second home in Sedona, Arizona. Can you offer me words of wisdom as to which I should go for?

—Divided by Divestiture

Dear Divided,

The good news is you're going through a friendly divorce – not a lot of those these days. Since you didn't indicate whether there is a significant mortgage on either property, my response will be based on the assumption that if there is, it's about equal on both properties.

There are two additional unanswered questions: Do you plan to sell the property in the immediate future, or do you plan to utilize the property as your primary residence?

If the former, you are either smart or lucky, since both locations have strong market potential in the longer term. But if you anticipate selling the property within the next two years, you should bear in mind that Downtown Scottsdale is close to being overbuilt, which may exert a downward pressure on condo prices. Sedona continues its past land use policies of being more restrictive, so historically has not experienced the housing price fluctuations experienced in Scottsdale and Greater Phoenix.

On the other hand, if you do not anticipate selling in the near term, the values at both locations are likely to increase; Downtown Scottsdale because every day it's becoming a more “happening” place, and Sedona because it successfully maintains its attractiveness for year-round retirees and summertime occupants who want to get out of the heat. If your motivation is to sell in the near future, I would also advise you to obtain preliminary appraisals for both properties.

On the other hand, if your choice is primarily based as to where you will live year round, you are the best person to answer this question. On the whole, do you prefer living in a dense, more active, amenity filled downtown, or in a beautiful, peaceful and bucolic setting? How free are you at this point in your life to make this choice? Do your present obligations, i.e. job, required trips to the airport, health concerns, family relationships, restrict your move in important ways?

Ms. Real Estate believes you to be a very lucky lady to be faced with two such attractive choices. Good luck!

Instant Insights /

More Upside: Scottsdale or Sedona?

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