Welcome!

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
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Announcing Poland #DigitalTransformation Pavilion
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
CloudEXPO | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
For far too long technology teams have lived in siloes. Not only physical siloes, but cultural siloes pushed by competing objectives. This includes informational siloes where business users require one set of data and tech teams require different data. DevOps intends to bridge these gaps to make tech driven operations more aligned and efficient.
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution. In his session at @ThingsExpo, Akvelon expert and IoT industry leader Sergey Grebnov provided an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let's say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...