Mark Alder

Utah Notice of Defaults October 2008

Unfortunately, Realty Trac reports that the Notice of Defaults for Utah returned to their July high with 889 filings, 3 filings shy of July's 892 filings. Given the lending environment, trends in other states, and this increase in NODs, it is looking like the Salt Lake market could be at least 9-12 months from prices bottoming out. As a seller, pricing right in order to avoid chasing the market is key. As a buyer, take your time and get signed up for automatic emails so you can track the market. By filling out this form , you can get customized automatic emails of the type of home you want. Some of the most popular searches are REOs and Short Sales . This means the system will autmatically send you all the REOs and Short Sales in your price and and in the neighborhood you would like. This easy way to track the market will have you on top of the best deals when the come on the market.

All data taken from the WFRMLS. Information reliable but not guaranteed. All rights reserved Mark Alder ©, A Salt Lake City REO Real Estate Agent cell (801) 979 6275

Utah Notice of Defaults September 2008

Notice of defaults continued their upward trend after a August lull with 574 default filings for the month of September. Although this is a relatively high number, it is still less than July's dramatic jump to 892 filings. We can expect a portion of these loans to end up as foreclosures on the Salt Lake Market. Given the foreclosure time line, it is likely we will see a surge in foreclosures in Spring 2009

All data taken from the WFRMLS. Information not guaranteed. All rights reserved Mark Alder ©, a Salt Lake City Real Estate Agent cell (801) 979 6275

2008 3rd Quarter Numbers

The WFRMLS just released the 3rd Quarter 2008 market numbers. For a year over year comparison:

Single Family

1) Total units sold 2459. ↓ 12%

2) Average sales price $286,461. ↓ 7.49%

Condos

1) Total units sold 633 ↓27%

2) Average sales price $191,076 ↑ 1%

County Totals

1) Average time on market 68 days. ↑ 88%

2) Average asking price $336,110 ↓6%

The current market offers a smorgasbord of deals for the buyer with money to put down, good credit, and patience.  For first time homebuyers or those struggling with down payment and credit issues, your best bet is still going to be going FHA with a normal seller situation.  But for those with something to bring to the table, there is plenty to choose from.  Below is a sampling of the types of deals available and the benefits and risks of each.
 
REO
REO stands for Real Estate Owned property and it is property that is owned by the bank.  REOs are properties that have already been through the foreclosure process, to the auction, and are now offered back on the market.  Banks will hire REO specific real estate agents to help them sell  these properties.
 

 

Short Sale
Short Sales are properties where the seller owes more than the property is worth.  Instead of bringing money to the closing table in order to get out from under the property, the seller may be able to sell the home "short" or for less than it is worth.  This is where the buyer comes in and picks the home up at a discount often at 70%-80% of market value.  The key here is getting the bank to agree.
 
 

The Auction
You buy at the auction when a trustee fulfills his legal duty as part of the foreclosure process and offers the property for sale at a public auction to the highest bidder.  This can be a quick way to get a great deal.  But I would not do it alone the first time.  I recommend Vestus.com for help with this.

Pre-Foreclosure
In a pre-foreclosure deal, you negotiate directly with the seller to purchase the property from them before the property is foreclosed on them at the auction.  The seller will need enough equity in the home to make this kind of deal work.
 

If you need help getting started, contact me and point you in the right direction.  Or if you are ready to go and want lists of short sale and/or REO properties fill out this form and indicate they type of property you are looking for.  Thanks for reading!

All data taken from the WFRMLS. Information reliable but not guaranteed. All rights reserved Mark Alder ©, A Salt Lake City REO Real Estate Agent cell (801) 979 6275

5 Tips For Buying a Foreclosed Home

After turning on the T.V. this week I felt like grabbing all my money and heading for the hills. But when the dusts settles a little bit and the panic recedes, there is going to be a ton of opportunity. And a perfect example is REOs or Bank Owned Homes. As you can see in an article recent article on defaults in Utah, bank owned homes are expected to rise soon here in Utah. So here are 5 tips to help you make the best of the market.

1) Know Your Seller
Banks tend to become habitual in the way they sell homes. With a savvy agent you can research the seller and see some trends. Does this seller always do 30 day price reductions? If the answer is yes, then maybe you want to wait a few more days until the next price reduction before you put in an offer.

2) Sell Your Home
Banks are not going to want to wait around while you sell your home. They are losing money every day they have the home on their books because of costs associated with "carrying" the home or carry costs. These costs can be quite high and they include things like maintaining the property, paying attorneys, and paying interest on money owed. The main reason they will let the property go at a discount is so they can avoid these fees. This purpose is defeated if they have to wait around for you to sell your home.

3) Get To Know a Contractor
It is highly likely that your home is going to need some work. The bank likely did some minimal repairs to put the home on the market but it may take more to make it livable. Remember that this home was foreclosed on and the last people to live there were probably not too happy on their way out. Anticipate doing at least some minor repairs like new carpet and paint

3) Don't Forget to Negotiate
Just because they are a bank owned home does not mean that the banks will not negotiate. They are a seller just like any other. And sometimes they are more motivated than most sellers. In fact, many markets in the U.S. are currently "REO Driven" where REOS are the ones selling and are the price setters. So don't hesitate to throw in a low ball offer. Just don't make it so low that you end up wasting everyone's time.

4) Make it a Clean Offer
The cleaner the offer the better. You can still do an inspection and have the property contingent on financing, but be careful to add too many contingencies. Also, offer at least 1% of the purchase price for earnest money and be flexible on settlement dates.

5) Get Set Up With a Just Listed Auto Email
Since many of these properties are going to sell quick, you want to be the first to know about them. Click here and indicate that you are looking for foreclosures and the area you are interested in. then you will get homes emailed to you the day they come on the market.

All data taken from the WFRMLS. Information reliable but not guaranteed. All rights reserved Mark Alder ©, A Salt Lake City REO Real Estate Agent cell (801) 979 6275