Understanding The Real Estate Market of Park City, Utah
My Goal with Every Client is to Provide Unsurpassed Service & Expert Knowledge
When Buying Real Estate in Park City and Deer Valley.
As we work together to help you purchase your new property in Park City or Deer Valley I believe it is important to make the home-buying process as fun, convenient, and efficient as possible. Welcome to the crash course of buying Park City Real Estate.
How much do homes cost in Park City?
The entry-level price point for Park City single-family homes starts around $500,000 and can surpass the $20,000,000 mark. Studio condos may be in the $100,000 price range while large luxury condos may surpass $8,000,000. When searching for homes online you'll begin to recognize that there is more value in homes priced over $1,800,000, townhomes over $1,000,000, and condos over $750,000.
What types of homes does Park City offer?
Condo: When you buy a condo, you have full ownership, and some part of the building’s common areas (gym, pool, playground). You have full control if you would like to rent or sell the property at any time. Condos are typically a great option for second homeowners that are looking for a turn-key property where the HOA controls the maintenance schedule. HOA fees in Park City tend to start at the $300/mo mark and luxury condominiums in Park City work their way up over $3,000/mo - depending on what type of amenities you're wanting. Typically the cost of ownership, especially around the ski resorts, can be offset by renting the property on a nightly basis.
Townhouse: A Park City townhouse is typically a three+ story building that may or may not be attached to another building. It may serve as a single-family home or a condominium. While townhouses are closer together than single-family homes, they usually have backyards and are more vertical in living rather than being on a different floor like you would have in a condominium. Townhouses tend to be valued higher than condominiums and provide the same turn-key lifestyle, but live more in line with a single-family home. Depending on the subdivision, townhomes may be classified as a home or condo on the Park City MLS.
Fully detached single-family home: Single-family homes in Park City come in all different shapes and sizes. In Old Town, it is common to find a home smaller than 1,000 square feet while in areas such as The Colony at White Pine there are homes that are 33,000 square feet. Outside of Old Town, homes are often larger and more spacious than condominiums and provide the full benefits of homeownership. There are many areas of town that don't allow for nightly rentals of single-family homes.
Is it better to Rent or Buy a home in Park City, Utah?
I've worked with several buyers that started living in Park City by renting a place and taking their time to better understand where they want to live long term. If you're planning on living the Park City lifestyle that may work best for you but with a few hours of touring Park City we can narrow down the areas that will work best for you. Some people in Park City have chosen to purchase a smaller property to get their foot-in-the-door and after several years step up to a larger property that will work well for living in Park City year-round. Ultimately, it's what works best for you!
Should I hire a real estate broker when buying in Park City?
You can buy a property in Park City without a Realtor but you'll be at a disadvantage. The listing agent works for the seller and their duties are to maximize the profit for the seller, much like the board of a publically traded company. There are many great agents in Park City that have been in the market for a long time and understand the market very well. We are skilled in negotiation, the direction the market is headed, and how to the best deal for our client.
Should I get pre-approved?
If you need financing the answer is Yes, Yes, and Yes! A pre-approval letter usually takes a twenty-minute phone call with a lender and can be provided to the seller with the purchase contract. If you're paying cash, be prepared to supply proof of funds when we go under contract. We want you to look as strong as possible for the negotiations when submitting an offer to purchase Park City real estate. In order to get a great price on a property, it is extremely important to show you come from a position of strength and can make the transaction as easy as possible for the seller. No one wants to go under contract and start the moving process just to find out the buyer doesn't have the ability to purchase the property.
When can I move into a property I'm buying?
Possession of a property, or when you can move in, is negotiated in the purchase contract. If the property is not occupied as a full-time residence you'll most likely be able to move in after funding and recording. If someone lives in the property I typically ask for 72 hours until possession takes place. 72 hours gives the sellers time to ensure that the closing took place, money is in their account, and have everything moved out.
Are you ready to buy a Park City property?
Here's our process of buying real estate in Park City.
- Maintain continuous communication.
- Carefully analyze your needs and remaining sensitive to your special requirements.
- Orient you to current market conditions.
- Provide helpful community data.
- Explain local real estate practices and procedures.
- Provide information on financing alternatives.
- Thoroughly analyze the entire inventory of homes on the market.
- Provide information on selected properties that meet your needs.
- Avoid wasting everyone's time.
- Professionally show selected properties.
- Explain the process of offer presentation.
- Carefully review the offer to purchase.
- Conscientiously facilitate the negotiations.
- Explain post-purchase activities and responsibilities.
- Follow up on post-purchase activities.
- Keep in touch after closing.
My job is to help make your dream of buying a Park City property come true!
Advantages of Working The Carlson Real Estate Team To Buy a Home
Buying a home in the Park City area is often a longtime goal and one of the most rewarding experiences most of us will ever have . . . without the proper knowledge, it can also be one of the most challenging. If you haven't purchased a property in a while the online research process may seem overwhelming; and even if you’ve been through it dozens of times, every move is different and presents new challenges. So, one clear advantage of enlisting my help is simply that you don’t have to “go it alone.” I have the training, knowledge, and experience to help you through each step of the process. That means I know the process of buying Park City real estate and I am here to help you every step of the way, ensuring that every detail is handled properly. I'd like to make the process of finding, buying, and moving into your new home as smooth, quick, and enjoyable as it can be. In addition, I can provide a valuable source of information about market trends, communities, neighborhoods, and especially homes for sale throughout the Park City area. Remember, not every home seller runs an online ad, or even puts in the local paper or places a yard sign. With my website, www.RealEstateInParkCity.com, I'm able to offer you access to complete, regularly updated information about every home listed by every broker on the Park City Multiple Listing Service (MLS). My combination of unique skills ensures a smooth process every step of the way.
Buying a Property in Park City
Buying a house or condo can be confusing at times. There can be many different directions and options of where you want to be in Park City. Do you golf, would you like to be close to skiing, how far away from the airport is acceptable, what amenities would you like to have, and so on. I can often take a client that has been looking at properties in Park City for years and have their search narrowed down within two hours - I am here to help. I can show you properties that any broker in Utah has listed for sale. Full-service real estate means all you have to do is call me at 435-200-5478 for all the information you need.
Call Derrik at 435-200-5478 or (833)SKI-HOME When You . . . . .
- Would like to see a property you found online: RealEstateInParkCity.com, Realtor, Zillow, etc.
- See a real estate sign
- Read about a house in the paper or magazine
- Hear about a property
- Want to preview property
- Want more information or to preview new construction.
- By having me represent you with a builder, you get all our services, as well as those offered by the builder without paying more. The builder is paying for you to have representation - the project agent is there to protect the builder’s interest only.
Give me a call and I'll get the details for you!
The Process of Buying a Park City / Deer Valley Home or Condo:
Purchase Contract (Offer and Acceptance)
In negotiating the purchase of your new Utah property, the initial step will be to make an offer to purchase. This is required to be writing and will include:
- The amount you are willing to pay,
- Financing terms,
- Any personal property specifically included or excluded,
- Loan commitment date or possibly proof of funds,
- Closing and occupancy date,
- Other contingencies and dates, including inspections.
The offer will be written on a standard real estate purchase contract provided by the State of Utah. If the seller does not accept the initial offer, we’ll continue negotiating until agreeable terms to both the buyer and seller are reached. When both agree on the terms, the buyer completes financing and arranges for inspections. I will provide a list of lenders I feel are best suited for your situation as well as local inspectors.
Are you an international buyer? Check out our page on "How to buy a property in Park City, Utah if you live out of the country."
Earnest Money Deposit for Park City real estate:
After we have a fully executed contract you will be required to submit a check or wire transfer to my brokerage to hold the earnest money. The amount deposited will be kept in a non-interest bearing trust account. This money represents your sincerity in the attempt to purchase and is fully refundable if the contract is canceled prior to contract deadlines which would include financing and appraisal, if your loan is not approved, or if the seller does not meet the conditions of the contract. The standard amount of earnest money for a Park City real estate transaction is 3% to 5%. This earnest money will be credited to you at closing as part of your down payment or funds to close.
Title Insurance on Park City and Deer Valley Properties:
When a property is sold or refinanced, the lender and/or buyer needs a preliminary title report to see exactly what liens and encumbrances are against the property. The seller of the property pays for the buyer's title insurance policy and the buyer pays for the lender's policy. If you are paying cash when purchasing a Park City home or condo the title fees are inexpensive since the seller is paying for your policy.
Items that a preliminary title report show include:
- Easements of record,
- Restrictions, covenants, and conditions (CC&Rs),
- HOA minutes and budge
- Liens and/or judgments,
- Exact vested owner of record, and
- Legal description.
When the sale of the subject property is final and the title company has recorded the necessary documents, they will issue a policy of title insurance to the new lender and the buyer showing clear title to the property.
Understanding Real Estate Brokerage Relationships With Your Park City Realtor- who represents you:
In real estate, brokers and agents are required to disclose the type of working relationship they have with the buyers in a real estate transaction. There are several types of relationships that are available to you. You should understand these relationships at the time a broker provides specific assistance to you in buying real estate. Buyer’s Agent and Seller’s Agent relationships are commonly referred to as “agency” relationships and carry with them legal duties and responsibilities for the broker as well as for the buyer and seller. the Transaction Broker relationship places the broker in the role of a “middleman” who assists both parties in the transaction. A buyer is advised to consult legal counsel before entering into any agency relationship.
A Buyer’s Agent acts solely on behalf of the buyer and owes duties to the buyer which include the utmost good faith, loyalty, and fidelity. The agent will negotiate on behalf of and act as an advocate for the buyer. The buyer is legally responsible for the actions of the agent when that agent is acting within the scope of the agency. The agent must disclose to sellers all adverse material facts concerning the buyer’s financial ability to perform the terms of the transaction and whether the buyer intends to occupy the property. A separate written buyer’s agreement is required which sets forth the duties and obligations of the parties.
A Seller’s Agent acts solely on behalf of the seller and owes duties to the seller which include the utmost good faith, loyalty, and fidelity. The agent will negotiate on behalf of and act as an advocate for the seller. The seller is legally responsible for the actions of the agent when that agent is acting within the scope of the agency. The agent must disclose to buyers or tenants all adverse material facts about the property known by the agent. A separate written listing agreement is required which sets forth the duties and obligations of the parties.
A Transaction Broker assists the buyer or seller or both throughout a real estate transaction with communication, advice, negotiation, contracting and closing without being an agent or advocate for any of the parties. A Transaction Broker does not owe the duties of a Buyer's Agent or Seller's Agent to either the buyer or the seller. However, a Transaction Broker does owe the parties a number of statutory obligations and responsibilities, including using reasonable skill and care in the performance of any oral or written agreements. A Transaction Broker must also make the same disclosures as agents about adverse material facts concerning a property or a buyer’s financial ability to perform the terms of a transaction. When representing a seller I require the buyer to either have a buyer's agent or to sign a form stating they are unrepresented. I do this because, from my understanding, 70% of all real estate lawsuits involve a Transaction Broker.
Using an Agent to Purchase a Newly Built Home or Condo in Park City and Deer Valley:
You might be asking - why should I use an Agent to purchase a new home? The advantages of having me help you purchase a new home are the same as those for purchasing a resale home. I can provide you with valuable insight into the market, find the perfect fit quickly, and provide you with expertise in contract writing, negotiation, and closing assistance.
The builder has a professional real estate representative watching out for their interests and you deserve expertise representation watching out for your interests.
Buying a new home is a little more difficult and time-consuming than buying a resale. Having spent years working with builders, I have built rapport with the builders and their agents that allow me to negotiate a better deal for you. I can provide you with more information that the builder will supply regarding sold data, future development in the area that might affect your property's value, floor plans, and other options that might work well for you at a better value.
I provide you guidance through the builder’s purchase contracts that tend to protect the builder rather than the buyer. It is very important that your interests be professionally represented when you are entering into a contract for a semi-custom or a build-to-suit home. These transactions are complex and the contract details must be exact in order to protect you and to ensure you get exactly the home you want!
Is there any advantage to not using an Agent to purchase new construction?
No. There is no financial advantage for you to buy directly from the builder. Builders usually are represented by a real estate broker and the listing agreement and compensation has already been predetermined and the listing contract signed. This is referred to as a “single-price” policy meaning you will be charged the same price whether your interests are represented by an Agent or not. Just as in any resale, the Seller pays your Buyer's Agent. Item to note: There are some builders that require your Agent accompany you on your first visit to the builder’s sales office or they will not pay your representative’s fee leaving you with no representation. Quick story: I recently helped navigate getting a new construction home under contract while many other buyers were left in line. In a new development, there were only a handful of highly desirable homes being released every few weeks with a waiting line. I was able to position my client where we were able to get under contract and save her $30,000 from what she originally budgeted.
During the Property Search, Derrik Carlson will . . .
- Discuss the benefits and drawbacks of each property in relation to your specific needs.
- Keep you informed on a regular basis.
- Check the MLS database and check with other brokers daily for new listings that meet your criteria.
- Prepare an itinerary and "tour" map on which all homes meeting your criteria have been located.
- Keep you up to date on changing financial conditions that may affect the housing market.
- Be available to answer your questions or offer assistance regarding your home purchase.
- Discuss market trends and values relative to properties that may be of interest to you.
- Introduce you to local builders to discuss building your next home.
Viewing Park City and Deer Valley Homes & Condos
After our initial counseling appointment, I will have a good idea of your wants, needs, price range, and location. I will use the Park City MLS as well as the Wasatch Front MLS to find homes and condos that are currently for sale. We will discuss what properties will work best for you and make arrangements to show you the best homes or condos within your budget.viewingewsing properties remember to wear shoes that are easy to slip on and off. As you walk through the homes, feel free to open the cabinets and closets. Most often the sellers will be absent, but should they be present, they will understand your need to examine the home carefully. When a home appeals to you, make notes. It is easy to forget details so I suggest you make a name for each property we preview. Don’t be surprised if the first property you see is the perfect one for you, and don’t be discouraged if none of those you visit the first day are exactly what you want. I am committed to finding the one property that you will want to call "home" and will work diligently until you find it. More often than not, we are able to find the home of your dreams rather quickly and will find 3- 5 homes that best fit the desires you expressed.
At the Conclusion of the Search for Your Park City Home or Condo
- You will be provided any information you may request that can help you make a decision on a property you wish to purchase. I will be your resource for providing information. Please let me know what information you need.
- Prepare an offer to purchase agreement and explain each detail.
- Provide you with copies of all the documents involved in the purchase agreement and financing.
- Make arrangements with a loan officer and accompany you to the loan application if you haven’t done it earlier.
- Coordinate any necessary inspections of the property to evaluate the property and negotiate the results of the inspection.
- Track the step-by-step process of completing the terms of the contract.
After Finding Your Home or Condo: Understanding Closing Costs
- Application Fee: ......................... The fee charged by the lender to pay for the fixed costs related to mortgage loan processing, such as appraisal, credit report, and underwriting.
- Closing Fee: ............................... The fee charged by the agent who prepares the closing documents and closes the loan on behalf of the lender.
- Commitment Fee: ....................... This is often called an origination fee and is generally computed at 1% of the mortgage amount or an amount as charged by the lender.
- Discount Points:......................... Each point is equal to 1% of the mortgage amount. Points are used by the lender to adjust the yield on the mortgage when it is sold to an investor. By paying more points, the borrower can obtain a lower mortgage interest rate.
- Funding Fees: ............................ Normally applicable to VA loans only, equal to a percentage of the loan amount. The fee is due at closing or may be added to the loan amount and financed.
- Homeowner’s Insurance:............ One-year premium is due in advance of the time of closing.
- Mortgage Insurance:................... Insurance required by the lender when the down payment is less than 20%. In the case of loan default, this insurance reduces the lender’s loss.
- Pre-Payables: ............................. Adjustment to escrow accounts from the date of closing to the date of the first payment. Interest is paid through the end of the month of closing; taxes are paid through the end of the month of closing, plus the following month. Two months of PMI may be collected. Two months of homeowner’s insurance may be collected. A homeowner’s insurance policy must be provided along with a receipt showing that the first year’s premium is paid.
- Processing Fee:........................... Fees charged by the escrow processor (either working for the escrow company, title company, or real estate company) for administrative escrow services performed from the point-of-contact through closing.
- Recording Fees: ......................... Fees charged by state and municipal entities for entering the closing documents into the public record.
- Survey Fee: ................................ The fee usually required and used by the lender to check for encroachments from within or from outside the subject property.
- Title Insurance:........................... Provides protection for lenders and homeowners against financial loss resulting from legal defects in the title.
- Underwriting Fee:...................... The fee usually included in the application fee, although practices do vary from lender to lender.
Flood Certification Fee: ............ The lender must determine if the home requires flood insurance.
- Tax Service Fee:......................... A one-time charge collected at closing which arranges for the payment of real estate taxes from the borrower’s escrow account to the taxing authority or verifies payment to the taxing authority.
I've been involved with selling real estate in Utah since 2004 and have come to rely on a group of professionals that I feel are best suited for a specific need. Approximately 50% of Park City buyers pay cash but if you're searching for financing I typically refer two or three lenders that will be best suited based on your needs and the property type. Sometimes a particular lender will be better suited for a Deer Valley condo while another will be able to provide you a better option for a Park City single-family home. There are plenty of home inspectors that are licensed to inspect properties but I have one particular inspector that is the best I have worked with and he does the inspections for my buyers a majority of the time. If you have a lender you love to work with it is fine to use them when purchasing property in Park City - I do ask that they understand the type of property you will be purchasing, the HOA nuances, and the nightly rental aspect of Park City. When working with me my I will be referring you to the best of the best and only people I would work with myself. By working with true professionals it has allowed my buyers to have smoother transactions and overall a great experience.
- How to buy a property in Park City, Utah if you live out of the country.
- Find out more about Keller Williams in Park City, Utah - The largest international real estate brokerage in the world.
- The Advantages of Working with Derrik Carlson
Have Any Real Estate Questions You Want Answered?
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