An article in the Steamboat Pilot this past weekend discussed the increase in bank owned properties and short sales here in Steamboat Springs, Colorado. The number of foreclosure filings, as of this point in the year, has reached 178, compared to the 195 in all of 2009, this is a significant increase but few actually result in a foreclosure sale to a third party. Most are sold beforehand or the banks will bid the full loan which is often higher than value of the property creating another bank owned property.
Forces are acting on both sides of the coin here in that while foreclosure numbers have increased, the volume of home sales in Routt County is up about 174% YTD over 2009 so more inventory is being sold before problems arise and buyers are there once the price gets to the right range. This is the natural process where the market can reform and bring together buyers and sellers at realistic prices to work through things and restore balance. Some of these bank owned properties are a great opportunity to find homes that are at or below fair market value but you have to do your homework as some work out to be a high percentage but are not a good value given the location, floor plan or quality of the home. Some of the biggest discounts are found on product that was only desirable when nothing else was available so in a market where buyers have many choices they are very hard to sell.
If you are looking for bank owned properties it is important to consult with someone familiar with the local economy, recent comps that are truly seen as equals, what active buyers are looking for, the unique characteristics we have in a resort town and condition of the homes.
Bank owned properties can be a very good deal but you really need to know because there can be a very good reason they didn’t sell before going to the bank and only an active broker who puts in the hours can see that.
It is often true that current sellers can often be a lot more motivated than the banks are, I have found much more more flexibility working with owners of the property that have a good basis and are motivated to end their negative cash flow. Some of the very best values are in higher end homes where significant discounts to recent comps can be found on truly exceptional homes.
If you would like to do real time searches for bank owned properties and short sales check out Steamboat Springs Bank Owned Real Estate. Our website is the only place in Steamboat to search for Bank Owned homes or available for short sale via our custom IDX MLS feed. If you have any specific questions or would like to see what I mean by knowing the factors that make a good buy or not feel free to give me a call at 970.879.0879 or send an email at JonW@TheSteamboatGroup.com
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