Nancy’s Park City Real Estate Blog

The number of home sales is down and only about one-third of homes listed for sale in Park City actually sell.   If you are serious about selling a home, it must look its best.  Think of it as a beauty contest or a job interview.  Would you show up for a job interview in tattered clothes?  Would you sell a car without getting it detailed? New paint and carpet are the two most valuable improvements because they establish a clean first impression.  Decluttering and depersonalizing are also important.  Buyers need to picture themselves living in your home.   Buyers do not want to picture themselves living in a messy home full of someone else’s stuff.  Remember, the home that is perceived to be the best value in its class will sell the quickest and for the highest price.  [We work with accredited staging professionals to ensure all of our listings look their best.]

Remember to visit us at www.tallman.biz to:

.  read our Newsletter: INSIDE Park City Real Estate
.  customize and save your own searches in the Park City MLS
.  discover what your home is worth and what is selling in your area (across the nation)
.  sign up for “Neighborhood News”: MLS updates for the Park City neighborhood of your choice delivered to your email
.  and much more…

How many times have you seen these words when it comes to investing?  How many times have you followed this advice?  It takes courage to buy when everyone else is selling.  I recently came upon the following story by Robert Kiyosaki (author of “Rich Dad, Poor Dad” and many others):  In 1989 Kiyosaki and his wife set a goal of buying two rental houses per year for ten years.  They were buying real estate in Phoenix at a time when the housing market was crashing.  They found so many bargains that they bought five homes in their first year.  Five years later, the housing market recovered and these homes formed the base for Kiyosaki’s retirement, or, as he calls it, “financial freedom”.   In hindsight, it makes so much sense.  Buy low and sell high.  The reality is that it takes foresight and guts to move in the opposite direction of the herd.

Trying to pick the top and bottom of any market is tricky for the best investor.   If you have the means, desire and fortitude, this is a great time to hunt for bargain properties.  You can take your time and negotiate your best deal.    Sellers understand that the leverage has moved over to buyers and are more flexible.  Interest rates are still at record lows and as long as you have some money for a down payment, lenders are still in the business of lending money. 

In Park City, the property selection is good.  Click here to request our complimentary booklet, “How to Buy Park City Real Estate the Easy Way - A Dozen Strategies to Save Time & Money on Your Next Purchase.”   We’ll be delighted to ship our booklet directly to your mailbox or front door.

Flagstaff – A New Project at Empire Pass at Deer Valley

East West Partners, developers of the Village at Empire Pass, recently announced the sale of its Flagstaff Condominium project at Empire Pass.  The 37 units will be completed in the late spring of 2009.  Finishes include walnut floors, travertine floors, copper tiles, marble countertops, 2-3 fireplaces and a “bunk room” which features separate contained beds with curtains and mini-flat screen televisions, internet access and DVD players.  There will also be additional owner amenities, including a pub, a daily continental breakfast and exercise room, and a live-in groundskeeper and full time concierge.  Prices range from $2 million-$6 million.  John Calhoun, Vice-President of Sales and Marketing with East West Partners, told the Park Record, “We’re at the highest end of the game.  This is expensive real estate.  They are marketed to very successful people who are rewarding themselves for their successes.”   The project is ski in/out and owners will automatically become members of the Talisker Club and have on-mountain access to The Tower Club.

Greetings from Park City!“Has Chicken Little Struck Again or Is the Sky Really Falling?”

The latest UCLA “Anderson Forecast” stated the nation’s economic performance was “near recession”.  Many of the report’s dire predictions were picked up by the media, including: 

• An expected drop in home prices through the end of 2009, particularly in Florida, California, Arizona, Nevada and parts of the Northeast. 
• Fewer qualified home buyers as mortgage lenders lean towards full documentation, larger cash down payments and higher income standards. 
• Working families with “middle-of-the-pack home prices and extremely high usage of adjustable-rate mortgages” would be most susceptible to foreclosures.

What do these predictions mean for the real estate market in Park City, Utah?  According to statistics provided by the Park City Multiple Listing Service:

• The average sale price for homes, condominiums and land in Park City is higher in 2007 than 2006. 
• Less property was sold in 2007 than 2006.
• Less property was listed for sale in 2007 than 2006.   As the number of sales dropped, the inventory dropped by an even greater percentage.       

My analysis of how the Anderson Forecast predictions will play out differently in Park City vs. the nation is as follows:

• Owners in other parts of the country may be forced to sell their homes, even at a loss.  Park City owners have the staying power to hold onto their property until conditions are favorable for selling.   
•  As a bedroom community to Salt Lake City, [which is experiencing a robust economy], and a premier 4-season resort community,Park City continues to see an influx of buyers entering our real estate market.  I have heard that as many as half of theses buyers pay cash.  Clearly, Park City will be somewhat buffered by the current mortgage debacle.
• The average sale price for Park City homes is now over $1,000,000.  Working families with “middle-of-the-pack home prices” do not make up a large segment of our real estate market.

In my opinion the proverbial sky is not falling in Park City real estate market, no do I expect it to.  We will continue watching the real estate market and keeping our clients informed. 

As always, please do not hesitate to contact us with your real estate questions and concerns.

There is an interesting interview with financial guru Suze Orman in this month’s Realtor magazine.  
Here is one of the questions followed by Suze’s answer:

Q. How serious is the subprime mortgage problem?

A. It’s as bad as people perceive it to be. Reality doesn’t matter, believe it or not. All that matters is people’s perception. In this case, laypeople perceive it to be true, and that has an effect on the real estate market. It’s not good. Of course, real estate is specific to the market, and there will always be areas where real estate is just fine. But I don’t think the real estate market will recover for another year or two. Perception is everything.  

Here is the link to the entire interview:  http://www.realtor.org/rmomag.NSF/pages/backpageaug07?OpenDocument

This interview was conducted for the August issue of Realtor magazine and obviously, the mortgage crisis has spread since then.  Nevertheless, what I liked about Suze’s response was her take on “perception” when it comes to investing. “Laypeople” (as Suze refers to them) will base their decisions on what the media tells them.   In contrast, the reality is that there are always great opportunities to make money buying and selling real estate.  The key is to work with a good real estate agent who understands the local market you are buying or selling in.  

Presently, the subprime mortgage crisis is turning some “would be buyers” into renters.  These people would have qualified to buy a home a few months ago, but today, they are unable to get financing due to the tighter underwriting guidelines.  This is creating the best opportunity I have seen to buy rental properties in Park City.  One of my clients had renters moving into a home she purchased this month just 3 days after it closed.  It is also a great time to be a qualified buyer, because there will be fewer buyers competing for each property.

As always, please do not hesitate to give me a call if I can help you or your friends with their real estate questions or needs.

Using data from the Park City MLS, we compared metrics from January-July 2006 to January-July 2007 for Single Family Homes. 

All of Park City & Basin (zip codes 84098 and 84060 combined) 

                                    2006                2007 

# Properties Listed         635                  669
# Properties Sold           345                  276
Avg. Sold Price              $1,365,919        $1,499,862
Avg. List/Sold Price        96.32%             95.51%
Avg. DOM                     159                   165 

The 2007 market shows greater inventory, 20% fewer properties sold, longer days on market and a lower list/sold ratio—

but the average sale price is higher in 2007.  It appears that buyers of more expensive homes are taking advantage of some

great purchase opportunities and negotiating lower sale prices.   

As of today, there are 463 homes listed for sale in 84098 and 84060 combined: 

Size                             Number for
                                         Sale                    Average List Price       Inventory*

Studio                           1                                  $  539,000                       n/a
1 Bedroom                     1                                 $  349,000                   3  month
2 Bedrooms                   2                                 $1,008,000                    6 month
3 Bedrooms                   13                               $1,126,000                    10 months
4 Bedrooms                   158                             $1,940,000                    10 months
5+ Bedrooms                 214                              $2,934,585                   14.5 months 

These numbers demonstrate that Park City is shifting into a buyer’s market but the value of property is not decreasing.  Presently, buyers have great selection and room to negotiate with sellers.  It’s a great time to be a buyer! If you are interested in specific numbers for your neighborhood, please call or email us and it will be our pleasure to run the numbers. 

*Inventory is explained as follows:  If there were no more homes listed, based on the rate of sales from January-July of 2007, it would take the number of months listed under Inventory to sell all the homes currently on the market.  A 4-6 month inventory is considered a balanced market.  Over 6 months is considered a buyers market.   

Dear Friends

I came across an article about the Heber Valley in the July-August edition of Via magazine (published by AAA).  The Heber Valley offers a pastoral alternative to Park City and is only 20 minutes away.  I have been to most of the recommended restaurants and places of interest and I think this article does a good job of capturing the “best of the Heber Valley”.  I especially recommend the Snake Creek Grill for dinner.  Dairy Keen is not to be missed if you have small children in tow.  I have stayed and dined at the Blue Boar Inn, and it is a lovely and intimate getaway.

Please stay in touch and be sure to respond with YOUR favorite places of interest in the area!

Read the Article

Below is a selection of properties in different price points that we feel represent excellent investment values in Park City.

Note:  None of these are our listings.
If you are curious about any of these properties, please contact us.

Prospector Studio Under $100,000
Priced under $100,000, with gross rental income of $12,000 annually, this unit has one of the best cash on cash returns in Park City!  Updated with air conditioning, new carpet, tile and paint. ADA Accessible.

Ski In/Out PCMR Resort Center Under $500,000
Great Resort Center location and a strong income producer, this one bedroom unit can be updated to add further value.

Updated Historic Old Town Home Under $1 Million
This 3 bedroom, 3 bath home is walking distance to the Town Lift and Main Street. Charming, updated Victorian. High ceilings and hardwood floors. Price reduced by $300,000!

Welcome to Nancy Tallman’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Park City. Visit my website at http://www.tallman.biz