Park City, UT Real Estate Foreclosure Market

By Todd Anderson

Nov 20, 2011

How Low Can My Offer Be on an REO Property?

Bank owned real estate in Park City, UT is a very small portion of our inventory. In fact, of the 1048 homes and condominiums listed across the Park City Multiple Listing Service in the greater Park City area, only 16 are currently listed as being bank owned. There are 46 homes and condominiums listed as Short Sales, but those are different from bank REO properties.

To date this year 137 sales of bank owned condominiums and single family homes are shown across the Park City MLS. This number makes up over 15% of Park City sales (yet active bank REO listings make up less than 2%). As you look at the number of sales and active listings, it is easy to see that the turn-over of bank REO property in Park City is very fast.

The fast sale of bank owned real estate is by design. Property on a bank’s asset sheet is not a good thing and thus the banks price property to move quickly. That is not to say that they will give property away. Remember that banks are publicly held and at the end of the day banks are accountable to their shareholders; giving away assets is not viewed positively by the owners. As a rule of thumb, the bank REO properties are offered at a price considered to be 20-30% below market value. Due to this pricing strategy it is not uncommon to see multiple offers bid the price up above the asking price.

A recent article in HousingWire.com shows that Freddie Mae sold over 80,000 properties in the first 3 quarters of 2011 and that the sales prices averaged 94% of the asking price.

So when it comes time to make an offer on a bank owned property in Park City, UT, keep these things in mind and also keep in mind that the strength of your offer is measured by the speed at which you can close the transaction (think no contingencies) as well as the offer price. There are many players in the REO market searching for a deal in Park City; the relatively low number of REO offerings makes this market very competitive.

If you would like a list of current distressed properties in the Park City, UT area contact the YouInParkCity.com Group of real estate professionals at (888)968-4672.

Tags: bank owned, bank REO, distressed sale, foreclosure, Park City, Park City real estate, property, sale, Utah
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Promontory ‘Steals’ Getting Harder to Find

By Todd Anderson

Feb 13, 2011

A look at sales for 2010 shows that the Promontory Club area of Park City was one of the sales "hot spots". 87 Homes and Vacant Lots were sold in the Promontory area during 2010. This accounts for over 9% of all the sales in the greater Park City area for the year. To date there have been about 800 lot sales in Promontory and there are currently about 300 completed homes with another 25 under construction. The Promontory area was hit hard by the economic downturn, but recent indications show that investors and value shoppers are buying the deals up quickly. The developer is waiting to release new areas and building lots when they feel that prices and inventories warrant new product. Promontory executives currently consider any lot priced under $300,000 or home priced at less than $300/sq ft to be a distressed sale. Given these parameters, all but one of the 52 lots that sold last year were distressed, and nearly 70% of the 35 homes that sold last year were distressed properties. A look at the current inventory shows an inventory level of slightly more than one year for vacant lots, but most still fit within the developer's distressed category (there are 64 lots for sale in Promontory and 50 of them are priced under $300K, ten are actually under $100K). Current available Single Family Homes in Promontory total 74 including 4 bank REO's and 8 short sales with a total of 19 being offered at less than $300/sq ft. The offerings in the distressed category (less than $300/ sq ft) represent less only 10 months worth of inventory at last year's absorption rate. To put this number in perspective, the absorption rate for Park City as a whole is over 24 months. So far this year, 8 sales have closed in the Promontory area of Park City and there are 20 sales pending. Current trends show prices within Promontory on the rise and inventory levels falling. The deals are getting harder to find and Buyers need to react quickly. Current levels of distressed homes in the greater Park City area are down considerably from their peak. For more Promontory Ranch Club information and assistance finding the Park City home that is a "steal" in your book, contact a realty professional with YouInParkCity.com.

Tags: distressed sale, Park City, prices, Promontory, Real Estate, REO
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