All Real Estate is Local

By Todd Anderson

Jun 02, 2008

One of the most commonly asked question a Park City REALTOR® gets asked is "how is the market?" We've written about this before in the YouInParkCity.com blog, but we think it deserves to be said again. "It really depends on where you are and what you are trying to accomplish in terms of buying, selling or investing, but most important is the idea that all real estate is local. We've noticed some recent Park City numbers that reinforce this point on a local neighborhood level. The Silver Springs real estate area in Park City, Utah currently has 19 active single family home listings. During the month of May, 7 single family homes were put under contract and 1 sale closed (given the average under contract / pended times, the others should close in June). This represents quite a lot of activity in this neighborhood. So the answer to the "how's the market?" question could be "great" or "hot". To the contrary, we can look at the available homes, new pending sales and closed transactions for the Promontory neighborhood in Park City: There are currently 63 active single family home listings in this real estate area, zero went pending in the month of May and only 3 have gone pending this year. So, the answer to the "how's the market?" question might be "tough", "slow", or "a Buyer's market". These two real estate markets are both part of Park City real estate and tell very different stories. The idea that all real estate is local can be narrowed even further than this may suggest. It may be the perfect view of the ski run, access to a great running trail, or proximity to a local school that makes a home "perfect". These limiting factors bring about scarcity and drive demand. The "perfect home" that you want may be represented by only a few possibilities in a given neighborhood, and the fact that one is currently available may make it the right time to buy. "How is the market?" is really determined by what is available in a given local area. Think of this in terms not only of a state, county, or city, but down to specific neighborhoods and even streets and which side of a particular street. For information regarding your present or future home in the Park City area; contact http://www.youinparkcity.com/ . submitted by Todd Anderson Data mentioned herein was taken from the Park City MLS on May, 30, 2008 deemed accurate and reliable, but not guaranteed.

Tags: Buyer, investor, local, market, neighborhood, Park City, Promontory, Real Estate, seller, silver springs, Utah
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Short Sales in Park City, Utah

By Todd Anderson

May 13, 2008

Short sale and foreclosure property always seem to catch people's attention. The idea of really getting a "steal" on property peaks investor and home-buyer interest. While a short sale can be a great deal, there are a few things to consider before you go searching for that "steal". First we should define a short sale. A short sale is a sale of property in which the sale price is less than the value of the loans against the property. Short sales can be initiated by the seller (property owner), but must be approved by the parties with loans which are using the property as collateral. The purpose of the short sale is to try and sell the home before it is foreclosed upon (lenders tend to lose more money in a foreclosure sale than a short sale). The parties on the selling side are losing money in the deal. The seller is losing whatever equity they had in the property (unless they got in with some type of "exotic" loan with no money down or cash out at the original loan origination (in this event the seller may not be losing real money, but is still damaging their credit)). The lien-holders are losing whatever money that was their original loan less the sale price. Secondary lien-holders stand to lose nearly all of their loan amounts. All of these parties have to agree to take their losses. None of them wants the loss and few of them want to admit they made a bad loan. The loss that a 1^st mortgage holder is willing to accept is generally about 20%-40% (they usually stand to lose as much as 60% in a foreclosure). Second or junior lien-holders also have to approve the sale. If in anyone's judgment the sale price is too low, they can refuse or send a counter-offer back to the Buyer. Timing may be the most confusing and frustrating issues that short sales present. Unlike a normal offer and acceptance type of negotiation, once the offer has been accepted by the seller, the contract must be approved by all parties holding liens on the property. These parties do not respond in a timely manner. There is often quite a bit of bureaucratic "red tape" to get through in approving a short sale and just finding the correct representatives that can approve the sale can be very frustrating. And while this process may take months (this is not an exaggeration) for the "third parties" to get approval back to the buyer, they will then ask for a closing within days. This timing issue means that as a Buyer, you need to keep from getting emotionally attached to the property and have no need to move quickly into owning the property. On the other hand, the Buyer needs to be able to move very quickly through their due diligence, evaluations and approvals as the third parties may ask for the sale to close within 10 days of their approval (in a "normal" sale this would be a 25-30 day process). Another curve that is thrown into the short sale is that the seller can (and will) keep marketing the home while the Buyer's offer is awaiting approval in hopes of another or better offers. So it may be months before you find out that your offer was bettered by someone else and you should have been trying to find something else instead. Buying a home can be very stressful and buying a home in a short sale situation is even more stressful. That being said, there are some short sale properties available in the Park City area (though not nearly as many as in areas where the housing market is "depressed") and they may represent a good value for the Buyer. If you want to know more about the short sale process and whether it is an option that works for your Park City real estate needs, contact us at http://www.youinparkcity.com/

Tags: buyers, deal, foreclosure, home-buyer, investor, Park City, property, Real Estate, short sale, Utah
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Finding Park City Real Estate Value

By Todd Anderson

Apr 24, 2008

Park City real estate, like else where in the country, is experiencing a buyers market. Most of the people I have been working with lately are in search of a "great deal". To many people this means a property that is priced below previous sales. This is certainly one element to consider but we have also been finding value in another area; the remodeled property that is priced at or just slightly above previous sales. When the market was in its frenzy with multiple offers and not enough sellers many people saw the increased equity in their Park City home or condo as an opportunity to renovate their home. Investors jumped into the market with the intent to buy, fix and flip a unit. But markets change and some investors entered the market at the end of the cycle. As a result there are properties in most areas that have undergone extensive renovations and can be a much better value than one that is just "priced to sell". You may be able to buy that "fixer upper" at a discount but after your remodel will you still come out ahead? The answer is often no. We think you can find some strong values in investor owned properties. These people, while seeking to maximize their returns, may be willing to break even or sell at a loss in an effort to free up their cash and "keep their money working" via other investment opportunities. Some people, myself for instance, who have remodeled their primary residence will usually decide to stay put unless they have to relocate for work. See blog post of April 21, 2008 The advantage of buying remodeled homes and condos is two fold. If you decide you want to own it long term you don't need to do much to bring it up to today's standards; it already has the granite counter tops, fresh paint, new carpet and nice cabinetry. So, when the market moves up and you decide to sell the property it will be positioned ahead of those that have not undergone the renovation. In the interim, you don't have to do the work and/or live in a construction project. So when you are having the http://www.youinparkcity.com/ group help you find a best buy in the Park City real estate market don't be surprised if one of the opportunities we uncover isn't necessarily the least expensive.

Tags: Buyer, buying, investor, Park City, Real Estate, remodel, Utah, value
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Park City Home Buyers Exercise

By Todd Anderson

Feb 13, 2008

I have found that Buyers in the Park City market often share something in common. I am sure that what they share is true of not just Buyers of Park City real estate, but is true of real estate buyers everywhere. I've experienced that it is possible to show a home that seems perfect for what I was told the buyer wanted and was well within the price range we discussed, only to have no offer written. The affliction here is; not knowing what all the Buyers want. It really isn't that the Buyer doesn't know, but the fact that Buyer is rarely a singular term. Buyers can represent a couple, a family, an extended family, a group of like-minded vacationing friends, investor group and more. Each person in these groups has their own "perfect" house, condominium or property in their head. Rarely is it the same as the others in their buying group. In fact I'd say never is it exactly the same. Before going out to search for the perfect property, it is necessary to come to terms with what the perfect property is. I suggest that all members of a buying group (or all people affected by the new purchase) draw up a list (individually) of the ten most important features the new property needs to have. These should be ranked most important to least important. Once this is done, all interested parties in the Buying process should get together and come up with one list of the most important features their new property will have. This can be a very eye-opening exercise for all of the people involved. The new list will definitely be longer than the original 10 features, but it will also be much more useful when trying to narrow down what homes you spend time looking at. The new list becomes the game plan and final goal for the Buyers and their Realtor. With this game plan in hand, winning is nearly a foregone conclusion. We will find a new home or property that works for you. This same type of exercise can be used when building a new home or remodeling your current home. In the end some compromises are made and rarely are all of the wanted features met, but the time savings and understanding of what all the buyers involved will be worth the effort. Take some time and start your list. We'd be more than happy to work with you on this and become the mediator when it's time to combine the list into one. Give us a call or email and we'll get started on finding the perfect Park City property for you. Get a head start by searching Park City properties on our website http://www.youinparkcity.com/ .

Tags: Buyer, buyers, home, investor, Park City, property, Real Estate, search
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