Tooele homebuyers find deals in tough times

(Tooele Transcript Bulletin) Sean Hamilton has rented a home in Tooele for years. Recently, however, Hamilton and his wife, Dina, decided it was time to purchase a home for their family of five. They ended up paying $154,000 for a 2,600-square-foot, five-bedroom home that had been foreclosed on and was appraised a year ago at $184,000.

“It is a wonderful home, in good condition, and with 2,600-square feet there is plenty of room for the family,” Sean said. “It took a while to get our offer approved by the bank, but it was worth it.”

The Hamiltons’ story is being echoed across Tooele Valley as tough financial times for some sellers turn into bargains for buyers.

“In my entire real estate career, I have never seen so many short sales and foreclosures on the market,” said Sandy Critchlow, of Prudential Utah Real Estate Tooele, who helped the Hamiltons find their home. In the last 180 days, there have been 256 homes and condos sold in the county, of which 31 were short sales, according to Vicki Griffith, president of the Tooele County Board of Realtors. Of those 31 short sales, 12 were in the Silver Fox subdivision in Grantsville, where homes that once listed at $347,000 sold for $249,000, Griffith said.

The amount of discount in a short sale or foreclosure depends on the bank, said Tom McCarty, broker of Stansbury Real Estate.

McCarty has seen homes in Stansbury that were worth $260,000 selling now for $220,000 on short sales.

“Some banks hold on to get as much money as possible, others are easier to work with and accept a payment so they can sell the house quicker,” McCarty said.

A short sale is one step before a foreclosure. It occurs when the home owner agrees to sell their home for less than the balance of their mortgage. The bank then has the option of approving the final purchase price with the understanding it will comprise full payment of the debt.

The number of short sales and foreclosures makes for some great bargains, as banks will sometimes settle for less because they would rather have cash than own a home, Critchlow said.

Brad Sutton, managing broker of the Tooele office of Coldwell Banker, agrees that short sales and foreclosures are popular right now, but said Tooele County doesn’t stand out in that regard.
 

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