Foreclosed homes offer good buys in Routt County
May 21, 2011
Steamboat Springs — Foreclosed homes continue to filter into the real estate market, but local Realtor Cheryl Foote, of Prudential Steamboat Realty, has seen them filtering out in recent months, as well.
In the past two months, Foote has sold two bank-held Routt County properties for what she calls "exceptional" prices.
Both properties — one in Silver Spur and one in Blacktail Mountain Estates near Stagecoach — sold for well below their initial listing price, attracting more attention when they reached a certain reduced price — what Foote called the magic number — leaving prospective buyers with no choice but to make a move.
Selling single-family homes
The first property on Silver Spur Street is a three-bedroom, three-bathroom single-family home built in 2002. At 2,700 square feet, Foote said the house was in great condition.
It was held by Deutsche Bank after it was foreclosed last year, according to the Routt County Assessor's Office website.
Foote said the house, which sold for $790,000 in 2007, initially was priced aggressively at $525,000 when it entered the market just after Thanksgiving 2010.
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Because the house was ideal for a single family and not many families are looking to buy around the holidays, Foote said the timing of the listing prompted the lowering of the price through winter to $480,000.
On March 31, a family that was moving to Steamboat closed on the house for $460,000.
"Just really, for the quality of that house and the location of Silver Spur — it's still an expensive neighborhood because the houses are all still new — I don't think there's a house of that quality that has even gotten close to that price," Foote said.
2nd home worth the wait
The second property is a large house in Blacktail Mountain Estates on Yellow Jacket Drive, and it was held by J.P. Morgan Chase.
Situated on 8 acres with what Foote described as breathtaking views on all sides, the 5,278-square-foot home was in good shape with moderate cosmetic needs such as paint, stain and carpets.
It was built in 1979 and remodeled in the early 1990s.
"The house did need some work, but the potential was — holy cow," Foote said. "And that's what (the buyers) saw, was the potential for this property."
Foote said she was working with a couple that had seen nearly every foreclosed home in the Yampa Valley. They had been looking for a second home in the area for more than a year, she said.
"They were very sophisticated, knowledgeable buyers," she said.
And here was a house that came on the market just before the holidays, like the Silver Spur property, and its listing price was dropping from the initial $693,000 asking price.
When the price hit $525,000, the showings shot up.
"That's a key thing with a lot of these foreclosures," she said. "They sit there and finally they get to that magic number, and then it's multiple offers."
With several other showings in the works, the couple went right back to Foote's office after they saw the property to get started on paperwork.
"They literally offered that afternoon," she said. "They were ready."
The couple closed on the house in mid-April for $499,000.
Banks "will price a property at market values, but they're not a typical seller because they absolutely want to get it sold," Foote said. "The banks are your true motivated seller."
Foote said foreclosures are going to happen — and keep happening — and there's nothing anyone can do about it. But unloading the foreclosed properties sets the stage for recovery.
"The best thing we can do is get rid of the bank inventory," she said. "Those are the steps we need for the market to rebound."
— To reach Nicole Inglis, call 970-871-4204 or email ninglis@SteamboatToday.com
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