Phoenix Business Journal - by Mike Sunnucks Friday, January 15, 2010
But a new trend is emerging in state tourism, and it’s not based on one of
In foreclosure tourism, out-of-towners take mini-vacations in the Valley to shop for foreclosure and short-sale bargains as investments, second homes and even primary residences.
“They seem to lay in the sun at their resort and make phone calls to attorneys and lenders, trying to see if there is a deal to be had,” said Jordan Rose, managing partner of
Rose said she’s received dozens of calls from foreclosure tourists from
“It seems as if ‘Fodor’s’ is suggesting that one of the things you do on a holiday to Phoenix is buy a foreclosed house — like be sure to try the cactus jelly, see the Grand Canyon and, by the way, don’t dare leave without a cheap house,” Rose said.
“We thought it was an odd submarket niche, as we have been getting calls from out-of-staters who want ultra-fast due diligence and contract review in order to do a quick close on a foreclosure,” she said.
Rose said out-of-state investors and buyers comprise the bulk of her real estate business right now.
“Nearly all the buyers we talk to — dozens over the last two weeks — have at least out-of-town financial backers. Money is trying to flow into
Joseph Maggiore, a Realtor with
“They are structuring their visit around touring a predetermined set of listings, based on weeks or months of searching and refining the available properties,” he said. “The goal that I have seen has really been to get in; take a look; identify the right property, possibly with a backup or two; make a move on it; and then head home after writing the offer.”
Maggiore said he’s seeing buyers from
He said such buyers now make up about one-third of his business.
Most resort and tourism officials contacted for this story weren’t specifically aware of the foreclosure tourism trend. But Kirsten Schaefer, public relations director for the
“We eventually want to create partnerships with local real estate agents for both foreclosure tourists and relocation visitors,” Schaefer said.
But the fallout is not all good, according to ASU economist Jay Butler.
He said foreclosure and other bargain-basement sales drive down home values.
“Investment interest is being driven by the anticipation that home prices will rise again in the next few years. While lower prices can greatly improve affordability, they can adversely impact many owners and potential sellers who are watching their limited equity erode as prices decline to — and even below — existing debt level,” he said.
Get Connected
Rose Law Group: www.roselawgroup.com
Joseph Maggiore: www.joemaggiore.com
InterContinental Montelucia Resort & Spa: www.icmontelucia.com
Most Foreclosures
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