Click here to close now.

SYS-CON MEDIA Authors: Liz McMillan, Kevin Jackson, Peter Silva, Greg Wind, Glenn Rossman

News Feed Item

New RealtyTrac Analysis Profiles Single Family Homes That Sell at the Deepest Discounts and Highest Premiums Based on Foreclosure Status, Equity, Occupancy, Year Built

24 Discrete Profiles Analyzed for Sales Price Relative to Estimated Market Value; Profiles Ranked Nationwide and by State Based on 12-Month Analysis of Home Sales

IRVINE, CA -- (Marketwired) -- 07/10/14 -- RealtyTrac® (www.realtytrac.com), the nation's leading source for comprehensive housing data, today released an analysis profiling what single family homes sell at the deepest discounts and what single family homes sell at the highest premiums based on four variables: foreclosure status, equity, occupancy and year built.

"In a competitive real estate market with still-low inventory and multiple offers the norm, it's more important than ever for buyers and sellers to identify properties that offer the best possibility for a discount and those that are the most likely to sell at a premium," said Daren Blomquist, vice president at RealtyTrac. "A data-centric evaluation of potential purchases is important for both buyers and sellers to help counterbalance the emotions that often emerge during a typical real estate transaction. Those emotions can range from frenzy to fatigue -- both of which can result in poor decisions."

The RealtyTrac analysis looked at 24 discrete property profiles based on the four variables and what average discount -- or premium -- each of those profiles sold for in the 12 months ending in March 2014. The discount or premium was calculated based on the average percentage that properties in each profile sold below or above their estimated full market value, and then comparing that percentage to a control group: all single family homes not in foreclosure that sold during the same time period. The 24 different profiles were analyzed for discount or premium for all U.S. properties and also for each state separately, with the profiles with the biggest discounts varying from state to state.

"Nationwide and in most states we found the types of homes selling at the biggest discount were those that were in the earlier stages of foreclosure, were vacant and had negative equity," Blomquist said. "One notable exception to the negative equity marker was homes in default with positive equity, which sold at the second biggest discount nationwide. The top five property profiles with the biggest discounts nationwide all sold at average discounts of 25 percent or more.

"On the other end of the spectrum, it may surprise many to see that nationwide and in several states some profiles of bank-owned homes actually sold at a premium," Blomquist continued. "Overall bank-owned properties nationwide sold at a 2.5 percent premium, and bank-owned properties built before 1950 sold at a 6.7 percent premium. There were in exceptions to this: for example, bank-owned homes in Ohio sold at a 17 percent discount, and in Michigan they sold at a nearly 13 percent discount."

Top five property profiles with biggest discounts
The property profile providing the biggest average discount was that of a home scheduled for foreclosure auction with negative equity (outstanding amount of loans secured by the property was more than the estimated market value of the property), vacant, and built between 1950 and 1990. Properties matching this profile sold at an average discount of 28.2 percent below market value when compared with the control group of all properties not in foreclosure that sold during the 12 months ending in March 2014.

The property profile with the second biggest average discount was that of a home in default (where the bank had initiated the foreclosure process but not yet scheduled a foreclosure auction) with positive equity. For this profile, the occupancy status included both vacant and occupied properties and all years built. Properties matching this profile sold at an average discount of 26.0 percent below market value, and this profile by far had the most available properties matching it nationwide: 87,882, representing 11 percent of all properties in some stage of foreclosure.

Other property profiles among the top five with the biggest discounts were homes in default with negative equity, vacant and built before 1950 (25.8 percent average discount below market value); homes scheduled for foreclosure auction with negative equity, vacant and no filter for year built (24.7 percent average discount below market value); and homes scheduled for foreclosure auction that were vacant with no filter for equity status or year built (24.6 percent average discount below market value).

Four property profiles selling at a premium
Four of the 24 property profiles analyzed sold at an average premium above market value when compared to the control group. The profile with the biggest premium was that of a home not in foreclosure but with negative equity, with no filters for equity, occupancy or year built. Properties matching this profile sold at a premium of 19.2 percent above market value when compared to the control group of all properties not in foreclosure that sold in the 12 months ending March 2014.

Other property profiles selling at a premium were bank-owned homes built before 1950 with no filter for equity or occupancy status (6.7 percent premium); bank-owned properties with no filter for equity, occupancy or year built (2.5 percent premium); and homes in default with negative equity, vacant and built after 1990 (1.7 percent premium).

States with the biggest available discounts
The top property profiles with the biggest discounts available differed from state to state, as did the biggest percentage discount available for each state. States with the biggest available discounts:

  • Illinois: 56.0 percent discount on homes scheduled for foreclosure auction with negative equity, vacant and built between 1950 and 1990

  • Missouri: 49.6 percent discount on homes scheduled for foreclosure auction with negative equity, vacant and built in 1950 or earlier.

  • Oklahoma: 40.2 percent discount on homes scheduled for foreclosure auction with negative equity and vacant and no filter for year built

  • New York: 38.5 percent discount on homes scheduled for foreclosure auction with negative equity and vacant and no filter for year built

  • Wisconsin: 37.3 percent discount on homes scheduled for foreclosure auction with negative equity and vacant and built in 1950 or earlier.

Markets with the most properties matching top five profiles with biggest discounts
Metropolitan statistical areas with the most single family homes matching the top five profiles with the biggest discounts in their respective states were led by Los Angeles-Long Beach-Santa Ana, where 5,864 single family homes matched one of the top five profiles -- representing nearly 27 percent of all homes in some stage of foreclosure in the metro area.

"The best homes for re-sale are the houses in good neighborhoods within great school districts," said Chris Pollinger, senior vice president of sales at First Team Real Estate, covering the Southern California market. "It's always a better deal to buy the least expensive house in a better neighborhood and fix it up versus buying the best turnkey home in the area."

About 9 percent of homes in some stage of foreclosure matched one of the top five discount profiles in the Chicago-Naperville-Joliet metro area, but the 4,365 properties represented by that 9 percent was the second highest total nationwide.

The Philadelphia-Camden-Wilmington metro area had 3,438 single family homes matching one of the top five discount profiles, the third highest total of any metro area nationwide and representing nearly 17 percent of all homes in some stage of foreclosure.

Other markets in the top 10 for most homes matching the top five discount profiles were Riverside-San Bernardino-Ontario in Southern California (3,018), Miami-Fort Lauderdale-Pompano Beach (2,714), Atlanta-Sandy Springs-Marietta (2,544), New York-Northern New Jersey-Long Island (2,344), Columbus, Ohio (1,838), Cleveland-Elyria-Mentor (1,774), and Denver-Aurora (1,548).

"When consumers are considering what home makes the best deal there are many amenities to consider such as location, curb appeal and age of home," said Michael Mahon, executive vice president/broker at HER Realtors, covering the Cincinnati, Columbus and Dayton, Ohio markets. "To determine the best deal when making a home purchase consumers must be true to themselves and their own personal goals in regards to the timing of a purchase, anticipated length of stay in the home, values of homes in the vicinity, proximity to work and reputation of local schools."

"The properties that seem to be the best deals are those with easy access to transportation -- bus stops, park-n-rides, light rail stations and highways," said Kelly Moye of RE/MAX Alliance, covering the Denver, Colo. market. "More affordable properties in good condition that would make good rentals are also high in demand as the rental market is seeing record rental rates and very low vacancy."


         10 Markets with Most Homes Matching Top 5 Discount Profiles

----------------------------------------------------------------------------
                                                Number of
                                                Properties    Percentage of
                                              Matching Top 5      Total
                                                 Discount      Foreclosure
Metropolitan Statistical Area                    Profiles         Market
----------------------------------------------------------------------------
Los Angeles-Long Beach-Santa Ana, CA                   5,864          26.72%
----------------------------------------------------------------------------
Chicago-Naperville-Joliet, IL-IN-WI                    4,365           8.67%
----------------------------------------------------------------------------
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD            3,438          16.80%
----------------------------------------------------------------------------
Riverside-San Bernardino-Ontario, CA                   3,018          15.66%
----------------------------------------------------------------------------
Miami-Fort Lauderdale-Pompano Beach, FL                2,714           4.82%
----------------------------------------------------------------------------
Atlanta-Sandy Springs-Marietta, GA                     2,544          15.47%
----------------------------------------------------------------------------
New York-Northern New Jersey-Long Island,
 NY-NJ-PA                                              2,344           3.82%
----------------------------------------------------------------------------
Columbus, OH                                           1,838          24.52%
----------------------------------------------------------------------------
Cleveland-Elyria-Mentor, OH                            1,774          20.29%
----------------------------------------------------------------------------
Denver-Aurora, CO                                      1,548          49.02%
----------------------------------------------------------------------------

Report methodology
For this analysis, RealtyTrac evaluated historical sales data for single family homes from Q2 2013 to Q1 2014. RealtyTrac broke down the sales into 24 property profiles based on four variables: equity, foreclosure type (pre-foreclosure, auction, bank owned), year built, and occupancy status (vacant or occupied). The 24 property profiles were evaluated nationwide and by state. To calculate the discount or premium, RealtyTrac first determined the average percentage of estimated value represented by the actual sales price (sales price divided by each property's estimated market value) and then subtracted that percentage from the same calculation for the control group: single family homes that were not in any stage of foreclosure or bank-owned. For any possible combination tested, where the count number for the state was less than 40, the national discount percentage was used instead. The results were than ranked on a state level and on a national level.


          Discounts and Premiums Available by U.S. Property Profile

----------------------------------------------------------------------------
Property Profile (All Single Family Residential Property)   U.S.
----------------------------------------------------------------------------
Discount/Premium=Avg Pct Below/Above Market Compared to
Control                                                     Discount/Premium
----------------------------------------------------------------------------
Auction + Negative Equity + Vacant + 1950 < Effective Year
Built > 1990                                                          -28.2%
----------------------------------------------------------------------------
Default + Positive Equity                                             -26.0%
----------------------------------------------------------------------------
Default + Negative Equity + Vacant + Effective Year Built <
= 1950                                                                -25.8%
----------------------------------------------------------------------------
Auction + Negative Equity +Vacant                                     -24.7%
----------------------------------------------------------------------------
Auction + Vacant                                                      -24.6%
----------------------------------------------------------------------------
Auction + Negative Equity + Vacant + Effective Year Built <
= 1950                                                                -23.8%
----------------------------------------------------------------------------
Auction + Negative Equity + Vacant + Effective Year Built >
= 1990                                                                -23.6%
----------------------------------------------------------------------------
Auction + Positive Equity                                             -23.6%
----------------------------------------------------------------------------
Default                                                               -23.3%
----------------------------------------------------------------------------
Default + Negative Equity + Vacant + 1950 < Effective Year
Built < 1990                                                          -22.4%
----------------------------------------------------------------------------
Default + Negative Equity                                             -20.9%
----------------------------------------------------------------------------
Auction                                                               -20.5%
----------------------------------------------------------------------------
Default + Vacant                                                      -20.2%
----------------------------------------------------------------------------
REO + Vacant                                                          -18.2%
----------------------------------------------------------------------------
Auction + Negative Equity                                             -16.8%
----------------------------------------------------------------------------
Default + Negative Equity +Vacant                                     -16.4%
----------------------------------------------------------------------------
Control+ Positive Equity                                               -7.6%
----------------------------------------------------------------------------
REO + Effective Year Built > = 1990                                    -6.3%
----------------------------------------------------------------------------
REO + 1950 < Effective Year Built < 1990                               -1.7%
----------------------------------------------------------------------------
Default + Negative Equity + Vacant + Effective Year Built >
= 1990                                                                  1.9%
----------------------------------------------------------------------------
REO                                                                     2.5%
----------------------------------------------------------------------------
REO + Effective Year Built < = 1950                                     6.7%
----------------------------------------------------------------------------
Control+Negative Equity                                                19.2%
----------------------------------------------------------------------------
Control- All SFR transactions without foreclosure event                 0.0%
----------------------------------------------------------------------------
Sales Price Percent of Estimated Market Value on Average                1.10
                                                           -----------------

Report License
The RealtyTrac U.S. Residential & Foreclosure Sales report is the result of a proprietary evaluation of information compiled by RealtyTrac; the report and any of the information in whole or in part can only be quoted, copied, published, re-published, distributed and/or re-distributed or used in any manner if the user specifically references RealtyTrac as the source for said report and/or any of the information set forth within the report.

Data Licensing and Custom Report Order
Investors, businesses and government institutions can contact RealtyTrac to license bulk foreclosure and neighborhood data or purchase customized reports. For more information contact our Data Licensing Department at 800.462.5193 or [email protected].

About RealtyTrac
RealtyTrac is a leading supplier of U.S. real estate data, with nationwide parcel-level records for more than 125 million U.S. parcels that include property characteristics, tax assessor data, sales and mortgage deed records, Automated Valuation Models (AVMs) and 20 million active and historical default, foreclosure auction and bank-owned properties. RealtyTrac's housing data and foreclosure reports are relied on by many federal government agencies, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
SYS-CON Events announced today that Alert Logic, the leading provider of Security-as-a-Service solutions for the cloud, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® and DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo® and DevOps Summit 2015 Silicon Valley, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Plutora, Inc., the leading global provider of enterprise release management and test environment management SaaS solutions, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Headquartered in Mountain View, California, Plutora provides enterprise release management and test environment SaaS solutions to clients in North America, Europe and Asia Pacific. Leading companies ...
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular In...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud....
SYS-CON Events announced today that FierceDevOps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. FierceDevOps keeps software developers and IT operations personnel updated on the latest news and trends around the rapidly evolving role of the traditional IT worker.
SYS-CON Events announced today that StorPool Storage will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. StorPool is distributed storage software that allows service providers, enterprises and other cloud builders to run data storage on standard x86 servers, instead of using expensive and inefficient storage arrays (SAN).
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
SYS-CON Events announced today that Soha will exhibit at SYS-CON's DevOps Summit New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Soha delivers enterprise-grade application security, on any device, as agile as the cloud. This turnkey, cloud-based service enables customers to solve secure application access and delivery challenges that traditional or virtualized network solutions cannot solve because they are too expensive, inflexible and operational...
SYS-CON Events announced today that IndependenceIT, a leading software provider of simplified IT management solutions for workspaces, applications and desktops-as-a-service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IndependenceIT's Cloud Workspace® Suite combines application, end-user and infrastructure management into a seamless, easy-to-manage platform, with a unified management interface an...
SYS-CON Events announced today that that Innodisk, the service-driven provider of industrial embedded flash and DRAM storage products and technologies, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies. With satisfied customers across the embedded, aerospace and defense, cloud storage markets an...
Chef and Canonical announced a partnership to integrate and distribute Chef with Ubuntu. Canonical is integrating the Chef automation platform with Canonical's Machine-As-A-Service (MAAS), enabling users to automate the provisioning, configuration and deployment of bare metal compute resources in the data center. Canonical is packaging Chef 12 server in upcoming distributions of its Ubuntu open source operating system and will provide commercial support for Chef within its user base.
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.
SYS-CON Events announced today that Site24x7, the cloud infrastructure monitoring service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Site24x7 is a cloud infrastructure monitoring service that helps monitor the uptime and performance of websites, online applications, servers, mobile websites and custom APIs. The monitoring is done from 50+ locations across the world and from various wireless carr...