Comps and Appraisals only measure the past

Real Estate comps and appraisals only measure what has happened in the past. 

Well, that's the point right? Yes, they are a great tool to help determine the value of a property, but they are not the only source to consider in today's changing market.

Important to know what homes have been selling for recently to measure what a home may be worth, but that does not tell us what is happening right now.

Example: Have a client with an inherited property to sell in an area they do not know well.  The agent pulled the comps to show them what has been happening in that market. Good Job. Because this agent really knows and lives this market, they know what has been hanging out not selling, what is in demand and how to price this property. It's possible  only 1 property has sold that would be comparable, but what if there is a pent up demand (not measurable by comps or appraisals) for this type of property and nothing similar has been for sale for a long while? Only your agent would know this and be able to price it right.

Consulting with your agent about more than just what the comps say is essential. 

Example 2: Buyer has been watching the market for a while and notices there are several bank owned or short sale properties in the area they wish to buy. They watch and watch and watch. When they finally decide to buy the market has changed, yet there are not comps as of yet. The Agent will know what is really happening in that market - how many homes are pending and how fast they are selling. This conversation with your agent can help with what the home(s) may really sell for and in turn, make the offer process more productive instead of offering low, below market prices.

So, use that appraisal and the comps as one of the tools available to help you as a Buyer or Seller make the right choice when pricing or buying your home.

Vacant land is desirable again???

Seems to go against what we have seen in the last few years, doesn't it?

With available homes in Park City at a low - only 418 last I checked, buyers are turning to building again to get the home they want in the area they like.

Land is not selling at a rapid pace or a high price as only those that can brave the year or more of the stress and time commitment to build are buying.  With 125 parcels of land closed already this year and another 40 pending, land is looking up.

Call me with questions about where you can build your dream home.
Heather Feldman
435-731-0803
heather@parkcityhousehunters.com
SEARCH THE PARK CITY MLS

Park City's Real Estate market today

A question we are all asking constantly - what is the market like in Park City today? 

Should I sell now? Should I buy now? 

Well, as I have said before, my crystal ball isn't working! However, we can look at some really interesting indicators to make some educated choices.

Today we have the lowest inventory since 2007, approx 820 single family and condo listings in Park City including Park City Proper and Park City Extended. These areas include Deer Valley, Park City, Snyderville Basin ( Silver Springs, Canyons etc) Trailside, Jeremy Ranch, Pinebrook, Summit Park, Glenwild and Promontory and everything in between.

In 2010 there were approx 2600 properties on the market in those same areas.  This change has created a shift from a Buyer's market to a Balanced market.  We are not in a Seller's market where homes are flying off the market at highly increased prices, but we definitely have seen a shift.

Stats courtesy of Rick Klein, Wells Fargo Mortgage. For full stats package, email me at heather@parkcityhousehunters.com

Foreclosures have slowed, short sales are much fewer which is causing the regular inventory to sell. We are just not seeing the screaming deals like we have in the past few years. What does this all mean to you?

In my opinion if you are looking to buy, it doesn't pay to gamble. Rates are lower than we will probably ever see again, home prices have not jumped - it is a win-win.
Call me for more information about any home or condo in Park City.
Heather Feldman
435-731-0803
heather@parkcityhousehunters.com
SEARCH THE PARK CITY MLS

When is a Short Sale a good deal ?

When is a short sale a good deal?

Short sales can snag a great property for a buyer at a screaming deal…sometimes.

Short sales can take months and months before the bank accepts an offer, it can be one of the most frustrating purchases you can make, and it isn’t always your best deal. If you would like more detailed information about Short Sales, read on…

Buyers make the mistake of assuming because it is a short sale it is automatically their best deal.  Sometimes they’re right.  Many times the seller owes such large amounts to the bank and the bank(s) price the home based on what they are willing to take, not what the current market dictates.   

So, in a nutshell here is how the typical short sale works:

• Seller decides/needs to sell, they owe more on the home than they can sell it for. Maybe they bought at the top, maybe they borrowed against the home – either way their loan is too high. 
•  The seller goes through an arduous process to get the bank to agree to allow a short sale
• Bank agrees to a short sale, home is placed on the market.
•   Some sellers continue to maintain the home, others do not
• Short sale homes are sometimes not available to show very easily, or are not listed with the local brokerage ( have to wonder about their motives – to sell it or squat until they are booted out?)

Pricing:

• Most banks won’t tell the Seller or the Agent what they feel an acceptable price is, and it is left up to the agent to list and price the property to sell.  
•  Some agents price the property to reflect market value, some go just below and some properties are priced like a K-Mart blue light special.
•  Banks will conduct a BPO – Broker Price Opinion of what the property pricing should be. This is based on closed sales within a given area. This number can depend on which properties the broker uses for comparison.  Did they use a good range of sold properties or just the distressed ones?

The process:

The short sale process can take months and months to complete. There is no standard processing time or procedure the banks follow.  Many times the bank will not even look at any offers for weeks and weeks. The Buyer’s agent has no ability to communicate with the bank – the listing agent often has spotty communications with the bank.  You place the offer and wait, and wait and wait. 

Many Buyers get anxious and become tired of waiting. They walk away and find another property. In Utah, earnest money is not required of the Buyer until acceptance by the bank, so it is easy to walk away.  The banks don’t always use logic when choosing the offer they like.  You could give them a full priced cash offer closing in 3 weeks and they might choose a lower financed offer closing in 5 weeks because it serves their purposes better – or maybe they are just too busy and approve the first one they grab off the pile on their desk! Plan on longer than you think it will take. Don’t give up your rental until you have bank acceptance and loan approval.  

Things to ask:

When you are working with an experienced buyer’s agent, they will do the research to find out if this property is viable. Here are some of the questions your agent should get answered for you prior to getting emotionally invested in a home:

•  Where is the bank in the short sale process
• Do they have any offers currently?
• Are they planning on submitting multiple offers
• Have they had past offers and how has the bank responded?
•  Is this home priced in a reasonable range to make it a good deal and worth the wait?

If the short sale process has just started, the bank is less likely to take a low ball offer and will be more likely to try and get the highest price possible.  If there are offers in currently that can make the possibility of your offer getting accepted lower. Sometimes the bank will work with the first offer until it dies or closes, then move on to the next.  If the seller is planning on submitting multiple offers you know you will have some competition to face and should offer accordingly. How the bank has responded to past offers can be an indicator of how long the process could take.  If the home is in a $700,000 neighborhood and is priced at $850,000, chances of getting a screaming deal price are slim and none – at least not right away.

Things to avoid:

·         Click the links below to see some of the Short Sale pitfalls to avoid:

Nolo Legal - short sale fraud scams 

 AOL - Short Sale flopping

5 common buyer short sale mistakes 

SEARCH THE PARK CITY MLS

Promontory Ranch Club Open House today!

Come by and see this beautiful Promontory home.  Open house today from 11-5
CLICK HERE TO SEE MORE INFORMATION ABOUT THIS HOME

CONTACT ME FOR DIRECTIONS 435-731-0803
HEATHER FELDMAN
EQUITY REAL ESTATE LUXURY GROUP

Experiencing Mortgage Loan Hell?

Mortgage Loan Hell. Means something different to each person you ask.
Renters respond with ignorant bliss and an innocent questioning look on their faces. Borrowers trying to obtain a loan show a face of rage and frustration. Those caught up in the hell of bank mistakes and mismanagement show a face hardly recognizable as human.


What is it going to take for the Mortgage loan industry to get it together?
Case in point - Borrower X, excellent credit history and scores, plenty of income, sounds like it should be a slam dunk, right? Give this borrower a loan! Not so fast. This borrower has some complications that underwriters can't seem to grasp. This borrower was divorced in the last year, and as divorces go property and assets were split. In this case, the couple owned two successful businesses, each party receiving one of the two businesses in the divorce.

As we start the loan process prior to offering on a property, the loan officer gathers all of the required and customary papers to document this borrowers information. It is sent off to underwriting, approval should take 10 days or so. The first bank decides there is no history of this borrower running the business - the same one the borrower has owned and run for the last 5 years!!!

The underwriters then begin to ask for a litany of additional documentation - they want 12 months of payment evidence on a vehicle only owned for 10 months  - really?!?  and can't understand why 12 months isn't available. Then unreasonable paperwork shuffling :After 2 months of document gathering, with each updated bank statement or piece of documentation requested they have a list of 5 more requests  to verify the same thing they already verified 2 weeks ago, but since it has taken them 2 months they need updated information and have to re verify all of the updated information. It is beyond ridiculous. This has now taken more than  2 months and they continue gathering information. Again, all from a borrower making plenty of documented income and great credit.

The underwriters seem to have a difficult time deciphering complicated tax returns and income scenarios.

 It's almost like they are fast food kids and 

retail workers given a crash course in 

paper pushing with no concept of anything 

more than a weekly paycheck and a W2 scenario, and are terrified to make a decision. 

The frustration is doubled as the Utah Housing Corp has started advertising programs for down payment assisted loans available. Loans for people that have not been able to save a down payment and only a 620 credit score is required. Seriously? And this qualified, well funded borrower is being put through 2 months of HELL to get a loan?

How about borrowers that are self employed and take full advantage of all legal tax write offs? Loans are calculated on the net income, so the choice for the self employed borrower is to not take legal, allowed write offs for at least 2 years, paying a sizable tax increase to show more net income, or simply buy only what they can mostly pay cash for. Case in point - borrower Z, husband and wife are self employed, have mid 700 credit scores, good income and want to refinance the loan they took out 5 years ago down to a current lower rate. They owe $400k, their home is worth $1M. No can do. Even though they have made every payment on time and have great credit history, no lender will touch them because their net income shown is not sufficient for their current loan. Yet, there are loans out there for people that have no down payment.


I suppose it could be worse. Click on the link I found below from The Fiscal Times about loan hell stories from those caught up in the mistakes and mismanagement of existing loans.


Article from The Fiscal times with Loan Hell examples

UPDATE - 

THE BUYER REFERENCED IN THE FIRST PART OF THIS POST GOT THEIR LOAN AND CLOSED ON THEIR HOME. TOO BAD IT HAD TO BE SUCH A DIFFICULT PROCESS FOR THEM!

Park City Utah median sales price up

Park City, Utah –The highlight for the first quarter of 2012, as reported by the Park City Board of REALTORS®, is that the median sales price for vacant land and condos, in all areas, has gone up. The median sold price for condos went from $335,000 in the first quarter of 2011 to $401,628 for quarter one in 2012.

This is great news for any Park City homeowner.

A year ago, we continued to see downward pressure on prices which seems to have flattened.  “Prices throughout our market seem to have stabilized, and in certain segments prices have started to increase.  We saw this trend start in 2011 with single family homes, and we are now seeing it in condo and vacant land sales,” says Mark Seltenrich, statistician for the Park City Board of REALTORS®.  He adds, “In certain parts of the market, and in certain areas, some pent up demand is being demonstrated and even among buyers there is little talk of prices continuing to fall.”

Click here to read the entire article

For information on any Park City, Utah home, condo or investment property, contact me at
heather@parkcityhousehunters.com

The Best Place to live in Park City Utah, Part 3, Old Town

Old Town is the perfect place to live for many residents. They like the bustling energy, the closeness to all things Park City. Read on to see if Old Town sounds right for you:

Click here to see information about this Old Town Home

Park City’s Old Town has a colorful history and is full of character. Old Town reflects the rich mining history of Park City, which was incorporated as a city in 1884, eighteen years after silver was discovered in its mountains. Many of the original commercial and residential buildings still remain, reflecting the Victorian architecture of that era. Main Street in Old Town is known for its great shops, world class restaurants, art galleries and unique character.

You will see multi-million dollar mansions next to small miner’s cottages, homes that are maintained beautifully next to rental properties in need of some love. That’s the beauty of Park City’s Old Town. It’s not cookie cutter subdivision bland. The beauty is in the diversity, the diversity of homes and of residents. Approximately 50% of the homeowners are full-time, the other 50% are either second home owners or investment/rental properties.

Click here for more information about this Old Town home

From Old Town you can walk to Historic Main Street for dining or shopping. The City has installed stairs at intervals to get you up to Lowell and down to Park Ave. You are in the middle of all the action. Many of the Old Town homes are within walking distance to Park City Mountain Resort for skiing or hiking and biking in the summer.

Prices range from the $200’s for a condo up to $8 Million dollars for a large home on a large lot. The average home right now is 3-4 bedrooms, 1 car garage, 2000 sq ft and runs between $799,000 and about $900,000.

Click below to see some Old Town properties available for purchase.

Search Park City's Old Town Homes

 

To see any Park City Real estate, contact me at heather@parkcityhousehunters.com
SEARCH THE PARK CITY MLS 

The Best place to live in Park City, Utah Part 2, TRAILSIDE PARK

Trailside Park


Trailside Park is one of my favorite areas – I live there! I chose this area because of the proximity to everything . Trailside Elementary is within walking distance of most Trailside homes along with a fantastic park that includes 2 soccer fields, 2 play jungle gyms, 2 tennis courts, sand volleyball, a bike pump track and a skate park! Whew! That’s a lot of fun right here!

Trailside is mostly primary residents and the homes range from the $300’s to well above $2 Million. It is super popular with families because of all the recreation and fun listed above. No kids, or older kids? The Park City free bus runs right through the center of Trailside, so easy to send your teens off to the slopes on the bus.

Click here for more information about this Trailside Home

Park City Mountain is about 8-10 minutes from Trailside, Canyons about 6 minutes and Deer Valley about 10 minutes. Park City’s historic Main Street is only 10 minutes away as well. It's considered a little bit "out of town" compared to Old Town living, but works well for most locals. Salt Lake City is about 25 minutes from Trailside and both the I-80 fwy and the SR-40 are withing minutes making this a great commuter neighborhood. Doctors that need to be able to be down in SLC within 30 minutes when on call live in Trailside.

Redstone center is about 5 minutes away and you will find grocery shopping, movie theatres, stores like Bed Bath and Beyond, TJMaxx, WorldMarket and many others. My dentist is in that center too!

Click here for more information about this Trailside home

So, let’s talk about the name…Trailside Park. There are tons of trails connecting through Trailside for biking , hiking or jogging. The trails connect with Round Valley, Mountain Ranch Trails, Glenwild Trails and Silver Creek Trails. Plenty of exercise and recreation for everyone.

TRAILSIDE HOMES AVAILABLE

For more information about living in Trailside, contact me at heather@parkcityhousehunters.com , or call me at 435-731-0803
Heather Feldman
Equity Real Estate Luxury Group Park City Utah

The Best place to live in Park City, Utah Part 1, JEREMY RANCH

I promised Park City neighborhood overviews, so here we go!

Let's start with Jeremy Ranch.
Jeremy Ranch is a community clustered around The Jeremy Ranch Golf and Country Club. Easy access to the I-80 and Salt Lake City makes Jeremy Ranch ideal for families with a commute to down to the Valley.

Click here for more information about this Jeremy Ranch home

Jeremy Ranch is home to mostly full time residents. There are moderately priced homes on the lower part of the mountain along with townhomes and condos starting in the $200's. Larger, estate-sized homes in The Back Nine, Moose Hollow and The Trails subdivisions towards the top of the mountain, priced up to well over $1 million. Many homes have dramatic views of The Jeremy Ranch golf course and all three ski resorts.

Hiking and biking trails surround this community. Shopping is close by with Fresh Market and restaurants at the Jeremy Ranch exit off the I-80.

There is a mixture of homes styles in Jeremy Ranch. While some communities feature the rustic home style only, Jeremy Ranch has a nice combination of rustic along with a more city style of home featuring less wood and some brighter lighter feels with a little more of the Salt Lake influence.

Click here for more information about this Jeremy Ranch home

Jeremy Ranch has an excellent Elementary School, and Golf club. Check out the links below for more information.

The down side of Jeremy Ranch is the I-80 noise from some parts of the area and the drastic diversity of price. Some buyers have a hard time to wrap their heads around spending just under $1 million for a home in a neighborhood where you can find a single family home for about $400,000.

Some feel Jeremy Ranch is too removed from town to really feel like they are in Park City. It is about 6 miles from Main Street - not really far. Super easy to Salt Lake City - about 20 minutes to Sugarhouse. Some have called Jeremy Ranch a bedroom community of Salt Lake City.

For more information about Jeremy Ranch or to view properties in Jeremy Ranch, call me at 435-731-0803 or search for properties on the SEARCH THE MLS  link on this site.

JEREMY RANCH HOMES AVAILABLE

Jeremy Ranch Elementary

Jeremy Ranch Golf
SEARCH THE PARK CITY MLS