Mammoth Foreclosure of The Week | Solstice #22

Solstice #22 –– This project gets skipped-by because some potential buyers immediately see objections. The first is always the high common area fee, which is right around $1000 per month. The second is cash buyers only. So if you can move past that, you’ll find this 2 bedroom/2 bath condo that was completed in 2006. The condition is almost new. The property has a large under structure parking area with an elevator. It is located in the heart of the Sierra Star golf course and a short walk to the club house. Nice location both winter and summer. These units originally sold for $700,000. There’s a washer and dryer in the unit and pretty decent storage. 1144 square feet according to the tax records. The project only has a spa. This is currently priced at $309,900. So now, what about this common area fee? This is one of those Intrawest built properties that has a main boiler so there is endless hot water for showers and baths. But on this project they ran the hot water into radiators in the living space (pretty rare in Mammoth). The common area fee also covers the gas at the fireplace which is a also a heat source. Basically, with a fixed cost for heating and hot water, the common area fee isn’t so bad if the unit gets used (rented?) a lot, especially in winter. And cash? We do have plenty of cash buyers in the market. And this is not one of the “front desk” restricted projects. Here, the Association has jumped on the “sue-Intrawest” bandwagon like so many others. Serious buyers can delve into the specifics with the Association. All of these lawsuits are yet to be sorted out. And the price? This is an REO, if it doesn’t sell the price will come down. A similar sale a year ago was $315,000. There’s a short sale under contract for less but it may have a compromised location, and it hasn’t closed yet. Banks appear to be conservative on REO pricing. But the market will speak.

The pre-winter buyers are starting to show in the market. Despite all the turmoil, it should be a busy late summer and fall. People obviously want to ski. And I’m heading to the Pacific for a week of fishing.