Foreclosure Activity in St George Utah
News from Paula
The majority of my calls and conversations with clients involve the St George Utah foreclosure market. Everybody wants a deal, so are they getting them? There are "deals" with foreclosures, but some of the calls I receive are just plain dreaming. No….all foreclosure homes in St George are NOT selling for pennies on the dollar. Yes, there are some great deals, and yes, you can SOMETIMES offer ridiculously low amounts on a property and have it accepted by the bank. BUT…these are fewer than some may expect. Here is how those unbelievable deals sometimes work:
An owner purchases a home back in the height of the selling market lets say 2005 for our example. They purchase their home for $550,000 then in 2008 they face personal trouble and the foreclosure process starts. Since purchasing their property, the St George Utah real estate inventory has swelled to record numbers and St George foreclosures have started to rise. Soon after purchasing their home, property values stabilized (after the rapid rise) and soon began to decline. Many homes comparable to theirs have sold, and many more are now for sale. Using the comps for today, their home may now be worth around $330,000. The bank may opt to start the price around what they are actually owed…can’t blame them for tryin'. The bank will begin a series of price reductions, simultaneously being advised by the listing agent of the "expected" price to sell. Some brave sole steps forward with their buyers’ agent who has already performed a CMA of the home and knows what the home is actually worth. They make the offer of $320,000…the bank accepts. The bank knew all along what the value was and yet this buyer got the home for $200,000 LESS THAN ASKING PRICE…wow…sounds like a superb deal.
Of course this is merely an example, but a very familiar one lately. The point of the story…I know you all are wondering what my point is…there ARE deals but the banks have not totally given up and lost their minds! You CAN get a half million dollar home for $300,000…because that may be the value of it is today. Homes are not selling for ridiculous amounts UNDER value (well some do, but like I said-few and far between). The value has gone down in St George but more important the prices are again affordable. You have to keep in mind; property sold in 2006 for $800,000 may have originally been purchased in the 80’s or 90’s for $200,000. The prices have not miraculously plummeted; actually prices miraculously shot up (as did much of the nation) and now have come back down to reality.
Also, for those looking for a foreclosure "deal" remember to exercise your due diligence. Sometimes these foreclosure deals come with a real price tag in the long run. Connect AND COMMIT to a buyers' agent who can offer assistance and guidance on these "good deals". Just because you may be that brave, independent, (buyers’ agent-less) sole who holds his head up high by telling the listing agent "I’d like to offer $50,000 less than asking price!" and you get it! Well you had just better be sure that the 5 comparable homes didn’t sell for $90,000 less…
View all MLS listed St George foreclosures right here on my website! Also, if you would like to see St George real estate statistics, check back each month and keep up to date with how the market is performing.
Date: Sunday, March, 15th 2009 @ 11:09:55 AMViews: 616
This blog entry currently has 2 comments posted.
Gil Slaw
A good onsight, I have just started the search for a foreclosure property and this helps me better to understand the process