RealtyTrac Adds Sold Property Information to Database

RealtyTrac populated its website starting in July with sales information for properties that have been posted on the site, equipping subscribers with a barometer of sales activity in local foreclosure, pre-foreclosure and for-sale-by-owner markets.

The nationwide sales information – not available through any other online foreclosure data service – brings closure to the life cycle of a property in foreclosure, whether it sold during pre-foreclosure, at the public auction or directly from the foreclosing bank. The new sales information is also available on for-sale-by-owner and new homes.

“It adds an entirely new dimension to what we do,” said Randy Green, director of data acquisition for RealtyTrac. “We don’t just publish data, now we show that as a result of what we publish, things are happening.”

Beginning the day after a pre-foreclosure property enters RealtyTrac’s database, RealtyTrac checks public deed records to find out if the property sold. Sold properties are clearly marked on any property search results page, and subscribers can open the property details to view the sale date, sale price, seller name and sale type. The sale price may not always be available due to non-disclosure laws in some states. The sale type and seller name will indicate whether the property was sold directly by the owner, at a public auction or by the foreclosing bank.

The original property information is included on sold properties so subscribers can compare the property’s final purchase price with the estimated market value, unpaid loan amount, opening bid at the auction and asking price if it was a FSBO or new homes property. A sold property remains posted on RealtyTrac for six months after it was sold so that subscribers have sales information on the most recent sales in their area.

By focusing on sales of foreclosure and FSBO property, subscribers can more accurately evaluate the extent of bargains available on those types of properties in their area, according to Green.

“They can look at the estimated value and see if a property sold high or low,” he said. “That will demonstrate geography’s sell-ability: does it sell higher or does it sell lower?”

The new data also should provide insight into other trends in local foreclosure markets, including how rapidly properties typically sell after they enter foreclosure; if most sell during pre-foreclosure, at the auction or from the bank; and during what stage of foreclosure the best bargains can be found. RealtyTrac plans to archive the sales data and track how these trends bear out over time.

“We can do some really good statistical modeling down the road,” said Green.

In some cases, a sold property may still represent an opportunity for a purchase. Many pre-foreclosure and foreclosure properties are purchased by investors who wish to resell. Although the investors will want to realize a profit, the sales information on RealtyTrac equips potential buyers with some leverage in negotiating the purchase price.