As a real estate professional in Park City, Utah the most common question I hear after “How is the market?” is probably “What’s the best deal in town?”

            There are so many factors that go into what a deal is that the question is nearly impossible to answer without asking at least 20 more questions. I generally respond by trying to find out how the prospective Buyer will use the home. With nearly 1500 Single Family Homes and Condominiums available in the Greater Park City area, there are many deals.

            Often times as we look at a deal, we are looking back and making a comparison to what things were a few years ago. With this as the criteria, there are a ton of great real estate deals in Park City. Unfortunately, they may also have been a deal back then when someone bought the property. We just don’t have a crystal ball, and don’t know what the future will be in terms of value.

            The recent influx of bank owned and distressed sales bring many questions about the “deals” in our market. When we make comparisons between the asking price of the bank owned properties and a nearby home or condominium, a very close look needs to be taken in terms of deferred maintenance and what it will take to make this property a true equivalent of the other nearby properties.  The risk factor in what may have been covered up (water damage is very common) and what you won’t learn about a home due to banks’ “as is” and ‘non-occupant” addendums. Distressed sales throw another variable into the picture: Can the home truly be purchased for the advertised price, and if so, how long will it take?

            Best Buys can take on many different forms in Park City and will be very different for every buyer. A best buy may be the $4 million ski-in/ski-out home that needs $1 million in renovations or it may be the new studio condominium at the base of The Canyons that is auctioned off with an asking price of under $150,000. Sometimes the Best Buy is the home that hasn’t been for sale that you’ve been watching for years that can finally be yours. In the end, it should be the place that is best for you the Buyer, the perfect home or weekend get-away that you will use to its fullest making memories and enjoying the Park City lifestyle.

            Financing can also play a part of a Park City real estate Best Buy, not only what you can get from a conventional source, but Seller financing options and lease options can make a property a deal.

            Let us help you in your search for your Park City Best Buy. Contact a real estate professional with YouInParkCity.com .

            The successful auction of property at the Empire Pass area in Park City has spurred another Park City area real estate auction. The Lodge at the Westgate announced last week that it will hold an auction to sell 44 of its whole ownership condominiums on the 28^th of March.

            Like the auction held last month, the developer has set minimum bids for the units at slightly below half of the current asking prices. Units are being offered with a minimum price starting as low as $149,000 for a 360 square foot studio. Models range up to a four bedroom four bath penthouse with a minimum bid of $995,000.  

            If the auction at Silver Strike in Deer Valley is any indication, prices will be bid up only modestly and other real estate sales near The Canyons Resort will likely be on hold as Buyers and Sellers wait to see the final results.  Prices in the Empire Canyon area of Deer Valley are still adjusting after the auction held there last month.

            The auction at The Lodge at the Westgate Park City should pique the interest of many with national advertising in Sunday’s Edition of the New York Times and other metropolitan areas. The initial bid pricing for the units places them near the asking prices of property resales at Silverado and lower than offerings at the nearby Sundial Lodge and Escala Lodges. Determining the value of The Lodges at Westgate isn’t easily done due to the number of available condominiums near The Canyons Resort. While the Westgate is not a true ski-in, ski-out property, the amenity package that the Westgate offers is impressive.  The prices of all condominium property near the base of The Canyons as well as the fate of the still to open Sunrise at Escala will likely be impacted by the auction.

            For more information about real estate near The Canyons Resort and to discuss the likely impact of the upcoming auction at The Lodges at The Westgate Park City may have, contact a professional with YouInParkCity.com.

            Park City real estate encompasses many showcase homes and ultra high-end luxury properties. Slope-side homes in The Colony at The Canyons, Upper Deer Valley, Deer Crest, and more as well as golf course homes in Glenwild, Tuhaye and Promontory commonly see price tags of over $5 million (in fact there are over 60 such homes currently listed on the Park City MLS). But the home at 5000 Royal St. in Park City’s Upper Deer Valley real estate area with an asking price of $55 million stands apart in the premium Park City property listings.

            What makes this Park City home different from the others (apart from the price tag)? There are many features that one would expect of a luxury residence in Deer Valley. The home is over 20,000 square feet and includes 12 bedrooms and 16 baths and custom built furniture throughout. The gourmet kitchen is designed to make a professional chef feel at home while still being a comfortable living area. Exterior spaces offer great gathering areas amid the pines away from nearly any city feel. A large gaming room provides a location for hours of fun and an indoor pool and hot tub make for alternative recreation to the outdoors. Two attached garages provide adequate capacity for transportation. The hillside location provides great views. The home’s location, while not slope-side is just yards from the slopes at Deer Valley and minutes from Historic Main St. Park City. These things can be found in many of Park City and Deer Valley luxury resort residences. What 5000 Royal St has that others don’t is: a private 60+ acre estate, the size of the estate alone is something that sets it apart; the fact that it is so central to Park City makes it truly one of a kind. While there may be the ability to subdivide apportions of the estate, it would be a shame.  An attached heated garage is capable of storing and show-casing a car or “toy” collection of 20 or more vehicles. The main home lies within a 3 acre fenced and landscaped grounds.

            The construction and materials of this home come with a story as do the residents and guests. The home was constructed with logs reclaimed from the Yellowstone park area of Wyoming. The logs represent the structural integrity of the home as steel beams were not used. This is truly “old world” craftsmanship that took years to complete. The rustic finishes and western feel are authentic and irreplaceable.  The Huntsman family has many fond memories of the estate.  The home has been an escape for Governors, Heads of State and Prime Ministers from around the world.  This home can truly be said to stand apart from other multi-million dollar homes in Deer Valley, Park City, Utah or the world.

            Contact your YouInParkCity.com real estate professional for more.

            Real estate prices in Park City, Utah show a wide array of ownership possibilities. Single family home prices start in the mid $300K range and top out at over $50M. While there are homes that may be considered reasonably attainable for the average buyer, the influences of the luxury resort community impact averages and median pricing. Of the nearly 600 homes currently listed for sale across the Park City MLS, more than one third presently are priced above 2 million dollars. Over sixty percent of the homes on the market are priced at $1M and above. These offerings bring the average asking price to well over $2 million.

            Many agents in the Park City area have considered these multi-million dollar homes and their Buyers and Sellers to be somewhat insulated from the effects of the national economy. There is without a doubt a certain air among Sellers that the price they paid or believed the home was worth a few years ago is still the current value. Other Sellers however are aggressively making price reductions in an effort to move their property. It would almost appear as if these Sellers are living in different worlds.

Here are some examples of each:

            In the Glenwild subdivision - a 200 unit private development of custom luxury homes situated around Utah’s best rated golf course - a showcase home finished and offered for sale in the middle of 2008 has seen price reductions of over $2M since its first offering. The price reductions and aggressive changes make for a nearly 40% off sale price.

            In the Deer Crest community of 144 homesites and the new St. Regis luxury hotel, the “Ski Magazine Dream Home” with its 6 bedrooms, 10 baths, 15 fireplaces, fantastic view and ski-in/ski-out location has actually seen its price rise by over $2M during the 3 years that it has been offered for sale.

            The Promontory golf club and resort second home community in Park City has after emerging from bankruptcy seen prices slashed in many cases by more than half of original asking price. Some homes in this area have been priced below their replacement or build costs in an effort to move them quickly.

            The new Dakota Mountain Lodge at The Canyons Resort is part of the Waldorf-Astoria collection of luxury hotels. The resort condominium hotel has been open just a few months and still has over 50 contracts still waiting to close (most all were written years ago during the height of the Park City real estate boom). One owner recently closed on their 4 bedroom 4 bath top floor model and immediately offered it for sale at $300K over the price they paid.

            The developers of the Silver Strike Lodge in the Empire Pass area of Deer Valley are auctioning 8 units of the development next month with opening bids set at approximately half of their original asking price. Approximately one third of the homes and condominiums that are complete in the Empire Pass area are currently offered for sale.

            Sellers in the Park City real estate market appear to have dramatically different ideas of current valuations. In the end, no matter what belief the Sellers have about the market, it is the Buyers that will set the value. Recent sales would appear to show that those Sellers willing to negotiate and/or aggressively reduce their prices are those that will sell their properties in our current market.

            For more information regarding Park City sales trends, home valuation opinions, and marketing alternatives contact a YouInParkCity.com real estate professional.

             The Park Record reported Saturday that a portion of the Black Rock Ridge Development outside Park City, Utah has been sold to the Talisker Company and is slated to become employee/affordable housing.  Talisker owns the Canyons, Tuhaye, Empire Canyon and other properties in Summit and Wasatch Counties. Black Rock Ridge was slated to be a community of approximately 250 condominiums and townhomes ranging form 800 to 2000 square feet. The development offered its first completed models for sale in early 2008.

            Black Rock Ridge was promoted as affordable mountain style townhomes and condominiums in Park City, Utah. The development offered new construction homes at prices just below $300 per square foot. The product appeared well received, but the timing was poor. Black Rock Ridge is technically in Wasatch County and not Park City. This may have had something to do with its poor sales too as Wasatch County is outside of the nationally ranked Park City School District.

            Five unit sales in Black Rock Ridge were recorded across the Park City MLS. The remaining project was foreclosed upon by the bank this past spring. What will happen with the uncompleted common area amenities and future phases of the development is unknown. The Talisker Corporation purchased 26 of the unfinished units and has an agreement with Park City which will allow Talisker to use them (along with other concessions) to satisfy some of their employee and affordable housing components of the Empire Pass development. A Talisker representative was quoted as saying the company would sell the 9 townhomes at market value and the 17 condominiums when complete for $200K - $240K. The current owners at Black Rock Ridge will welcome some completion to the project, but are unhappy (to say the least) that the development will become “affordable housing” as the impact on their investment is decidedly negative.

            The location of Black Rock Ridge is less than 5 miles from the center of Park City making the area easily accessible. There are 2 other residential developments currently under construction in the area - Park’s Edge and The Retreat at Jordanelle. There are also commercial development possibilities in the area which is home to Stock Building Supply. Presently the area is a bit of no-man’s land and given the current economic state, it may be a while before this changes. The YouInParkCity.com group advises to carefully examine these and other unfinished Park City real estate developments before purchasing.

             I recently read a blog post by another Utah real estate agent discussing Buyers in her area that were putting in offers on property that were sure to be accepted by sellers (as they would be the highest priced offers) with the background idea that the property would later not appraise for the offer price and then the seller would lower the price to the appraisal value and settle on that as the selling price.

            It is an interesting type of bidding scheme and an idea that probably works well for short sales and bank owned properties in the current national real estate market where appraisers are bearing some of the blame for our financial crisis.

            Buyers using the ‘offer high and hope to pay less’ tactic are counting on the appraisal coming in lower than the offer price. This will mean that the Buyer can’t get their expected loan or that they simply state that they are not willing to “overpay” for the home unless the price is lowered.

            Appraisers in Park City currently have a tough time with property appraisals not only because they are under increased scrutiny, but also because there are relatively few sales and therefore finding a comparable property that has sold recently can be tough.

            I have seen a few Park City real estate sales recently that were affected by low appraisals. The end result is not always a lower price. In one recent case, the seller did lower the sales price (although not to the appraised price). In another case of an appraisal lower than the agreed upon sales price, the seller just removed the property from the market; effectively stating that they would not sell for what the appraiser had established was market value. The Buyer did subsequently purchase the home at the original offer price.

            The Buyer’s side tactic of offering over what the buyer wants to pay in hopes of an appraisal effectively lowering the price may or may not work in Park City. It is probably best left to investors that have no emotional attachment to the property they are buying. The YouInParkCity.com group suggests finding a property that you want based on location, features and local amenities. Present an offer that makes sense to you as a buyer. The appraisal may give you an idea of fair market value or it may not. Appraisers only have data as to other “similar” sales, but no two properties are alike. In the end, fair market value can be defined by a willing Seller and a willing Buyer.

          The end of September marks a shift in focus for Park City and Deer Valley real estate Buyers. Traditionally we see a shift away from single family residential homes and toward resort and ski property as the winter nears. This marks a good time to take a look back and compare the latest quarter real estate sales with past years.

            Park City real estate sales for the 3^rd quarter 2009 show only a small drop in sales and unit volume versus the same period last year. Unit sales were effectively flat while dollar volume dropped by about 9%. -Note that for statistic purposes The YouInParkCity.com Group uses only sales in the 84060 and 84098 zip codes and only considers sales of single family homes, condominiums and vacant land-  The 3^rd quarter of 2008 is when sales in the Park City area started seeing the impacts of the economic downturn and people began to realize that we were not totally insulated from the national housing crisis.

            The downturn in dollar volume indicates that prices have receded slightly. Price corrections have varied greatly by neighborhood and the relatively small unit volume means that a few sales can have a large impact statistically. As a case in point, Dakota Mountain Lodge at The Canyons Resort sales represent over 10% of the dollar volume for this past quarter.

            Pricing in general is also showing downward pressure as the sold prices versus the list price was off by 8% while the list prices had shown an 8% discount already.

            Year to date sales versus the same period in 2008 show a decrease in dollar and unit volume of over 35%. The fact that the current period is flat may indicate that the downward market pressures have subsided and we are experiencing a bottom. There is a “feel” among most REALTORS® in town that business is getting better. Most agents are busy with many clients searching for values and beginning to write offers.

            To discuss more in depth statistics and analysis of the Park City and Deer Valley real estate markets, contact a YouInParkCity.com realty professional.

             The Chateaux at Silver Lake in Deer Valley is a fantastic option for people who are considering the purchase of a condominium in Deer Valley and want the potential for rental income. The home owners recently signed a contract with the Stein Eriksen Lodge to manage the property which, in my opinion, makes the future even brighter.

            When a client is interested in generating rental income one of the key factors I look for is the ability for a property to generate revenue on a year round basis. Obviously the Chateaux at Silver Lake’s location at mid mountain in Deer Valley generates winter revenue. But what about the spring, summer and fall? With over 9,000 square feet of meeting space the Chateaux has the ability to attract meetings, weddings and other special events throughout the year. Contracting with the Stein Eriksen Lodge will go a long way toward enhancing the perception of the Chateaux in the mind of meeting planners. Convention services, banquets and room standards will all go up a notch.  Under the watchful eye of the Stein Eriksen staff the Chateaux’s impressive amenities and services which include a large atrium lobby, on-site check-in, evening turndown service, concierge and bell services, complimentary wireless service in each guest room, outdoor heated pool and hot tub, fitness center, specialty shops, underground parking and a gourmet restaurant and lounge will all shine a little brighter.

            Another asset that the Stein Eriksen Lodge brings to the Chateaux is an experienced sales and marketing team. These people have been working for years developing relationships with groups that appreciate what Park City and Deer Valley have to offer and demand the high level of service and attention to detail that Stein’s provides. This group will hit the street running and should have an immediate and positive impact on rental income for those fortunate enough to own a condominium at the Chateaux at Silver Lake.

            Rob Harris

http://youinparkcity.com/

Buy It for All the Right Reasons

            I recently had someone walk into the office asking questions based on what seems to be the most common theme right now: “What is the best deal in town?”  This gentleman then went on to tell me he’d be flying in from Texas to use the home or condominium and reiterated that he was looking for a bargain.

            I probed for some more background: Do you think you will be using it more in the summer or winter? Are you a skier, golfer, hiker, biker, fisherman, horseman, shopper? Will your family be coming with you? How many bedrooms would you like? Will you be renting it when you aren’t using it yourself? Do you picture this as a retreat of sorts or an access point to recreation? Do you envision possibly living in the home full time at some point in the future? How familiar are you with the Park City area? Have you vacationed here in the past?

            Almost all of the responses were at best vague and ended with “I’m just looking for a good deal”. I went on to try and explain that there are great values in just about every neighborhood within Park City. Pricing has retreated back to pre 2005 levels and inventories are high, there is no contesting the fact that we are in a Buyers market.

            “So what is the best deal in town under $1.5M?” the gentleman asked as he grabbed flyers ranging from a fractional interest condominium to a slope-side home to a horse ranch with 20+ acres and everything in between -asking “what about this area?” for each flyer.

                 During the flyer barrage he mentioned a home he’d seen yesterday and that he was working with another REALTOR® and planning to write an offer - what did I think of X as an offer price (about 35% off the asking price for what most that have been in the home would consider a very well priced Park City home already)?  I offered the same advice that I give to my own clients.

            Take some time and figure out how you will use the Park City or Deer Valley property you wish to purchase. Will it become home, a family vacation get-away, an income producing property, an investment flip or whatever? There are strong values and even some outright “steals” in our market, but many of the values should not be measured by a pure monetary value. What value can you put on the memories, lifestyle and pure enjoyment that owning Park City can bring?

            While the end result of your purchase in Park City may well prove to be a good investment financially when you decide to sell, the rewards you receive while you own here are truly the right reason to buy Park City real estate.

            SKI Magazine’s annual reader poll has awarded Deer Valley Resort the number one ranking as the best resort in North America.  Pick up the October edition of SKI Magazine (not yet released) for the full rankings.

            This marks the third year in a row that Deer Valley has been named the top ski resort in North America. Deer Valley earned top honors in five categories including Guest Services, Slope Grooming, on mountain food and dining, and Lodging.

            Ski Magazine’s subtitle for the resort on Skinet.com reads “The ultimate upscale destination resort. Five-star all the way.” Resort president Bob Wheaton points to the staff at Deer Valley as well as the commitment to customer service as the reason for the rating and guest comments like the resort description subtitle back that theory.

            Deer Valley edged out Whistler and Vail which took the number 2 and 3 spots in the readers poll.

            What effects this may have on the local Park City and Deer Valley real estate are probably negligible. But good publicity never hurts and it is a great reminder for people that this is a fantastic spot to own and the desire to be here isn’t waning