They wanted space in the East Valley. Could they find it for $400,000?
It took patience and a willingness to renovate, but family scores home in Mesa
Alain and Heather Melchor began searching for a home in May 2021 after moving in with Alain’s parents in Mesa a few months earlier to save money.
The young couple’s lives were rapidly changing, and they needed more space.
In March, Heather had given birth to their second child. Alain had recently graduated from Brigham Young University and had a job lined up as a software engineer for General Motors in Chandler.
When they embarked on their home search, they did not know it would span more than a year. They initially felt they could afford a $400,000 home mortgage, but prices were climbing fast, and competition for houses in that price range was intense.
The couple hoped to find a home with at least three bedrooms and two bathrooms. They wanted it to be close to Alain’s job and his parents.
“I didn’t want to commute longer than a half hour,” said Alain. “At the same time, I grew up here, so I have a lot of friends and family around.”
The house also had to have curb appeal. That was Heather’s requirement. “She’s a big plant person,” Alain said. Space in the backyard for a garden was also essential for Heather.
“I want to have lots of different types of herbs to cook with and give to my friends and family,” Heather said.
Alain, up for the challenge of a fixer-upper, said he wanted to renovate and earn sweat equity.
The couple began working with veteran real estate agent Rebecca Hidalgo Rains with Berkshire Hathaway’s Integrity All Stars team. She encouraged them to move quickly if there was a house
they really wanted.
“I think we just had a roller coaster of ups and downs, market shifting,” Hidalgo Rains said. “The demand got obscene, and then it went to nothing. But in the meantime, a deal just happened to land in his lap.”
The Melchors looked at almost a dozen homes. There were two homes they liked enough to make offers on.
House #1: An overbudget single-story charmer
This four-bedroom, two-bathroom house exceeded Heather’s standards for curb appeal. Located in the Neely Ranch neighborhood of Gilbert, the street was lined with trees which made the house “so pretty and so green,” Alain said.
Another perk: The 1,992-square-foot home came with new stainless steel appliances, light fixtures and bathroom cabinets. The home also had a two-car garage.
“We loved it. It looked so beautiful,” Alain said.
But at $499,900, the asking price was over their budget.
House #2: A fixer-upper with backyard jungle
Built in 1989, this three-bedroom, two-bathroom home had “great bones,” but was in dire need of repair, Alain said.
The house had a breakfast bar, fireplace and a primary bathroom with ample closet space. But it also had popcorn ceilings, unlivable carpets and a large column that closed off the kitchen.
The backyard, which was swamped with plants, was “a jungle.” A mound of branches and sticks filled up the space. There was so much debris, the block fence at the back of the yard was barely visible.
“I’ve never seen anything like it,” Alain said. “Basically everything needed some maintenance.”
The couple liked that the 1,402square-foot home was one street over from his parents’ house in Mesa.
The asking price was $350,000.
House #3: A dream house in the center of a bidding war
This three-bedroom, two-bathroom home in the Eastmark neighborhood of Mesa was near Alain’s sister. It was built in 2001 and featured new interior paint, wood laminate flooring and carpet in all the bedrooms.
Alain and Heather liked that the 1,308-square-foot home was near family and in a rapidly developing neighborhood.
The home “met all our criteria,” Alain said, so the couple made an offer.
But they weren’t the only interested buyers. A bidding war commenced. Finding themselves with the second highest offer, Hidalgo Rains said if they increased their bid, the house would be theirs.
The house was listed for $359,000.
Which home did they choose?
The home in the Neely Ranch neighborhood was too expensive, and even though the Eastmark home checked all their boxes, Alain and Heather went with their gut feeling and decided not to raise their offer on the home.
“We were kind of kicking ourselves like, why didn’t we do it?” Alain said.
After being outbid and seeing interest rates rise, the couple paused their home search in January. They didn’t feel comfortable buying a home.
In February, Alain received a significant pay raise, which allowed them to increase their budget by roughly $100,000. So when Heather received a message in a group chat with friends that the fixer-upper house near Alain’s parents was going on the market, the couple moved quickly.
“It was such a low price, I didn’t want to miss the opportunity,” Alain said. “We got in there first with the agent and Rebecca was there to help us out and work her magic.”
During August, the housing market was slowing, and interest rates were climbing. Alain and his wife were able to purchase the home for $350,000 and use the remainder of their increased budget for a remodel.
The family is continuing to live with Alain’s parents while they complete the renovations. All the flooring in the house has been removed, and the column in the kitchen was torn down to
make the floor plan more open. The popcorn ceilings have been scraped off, and a 16-foot glass door is being installed.
Once the interior renovations are complete, Alain will tackle the backyard to make space for Heather’s garden. She plans to teach their children how to grow food and the importance of not being wasteful.
“I’d like to teach them about the Earth and how it gives us food,” Heather said. “Eventually, I want them to be able to grow their own food and harvest it.”
After work, Alain and his family walk over to their new place, which has been dubbed “the broken home” by their 3year-old daughter.
“Our kids can see us working on this home and building it together,” Alain said. “They help us where they can and grab little rocks and throw them in a bucket.”