Further Proof the Real Estate Market Is Coming Back

Last week, the National Association of Realtors (NAR) released their Pending Sales Report which showed that contracted sales were 12.8% higher than the same month last year and higher than any time since sales were impacted by the Homebuyers’ Credit back in April of 2010. The index stood at 101.4 which represents a level that is “historically healthy” (see methodology below).

Here is a graph showing pending sales over the last twelve months:

 
 
 
 
 
 
 
 
 
 
 
 
by The KCM Crew

Steps to Get a Home Ready For Sale

Check out this link for ideas and tips to get your home ready to sell, or just to spurce it up during "Spring Cleaning"
http://www.cleaninginstitute.org/clean_living/cleaning_tips_for_home_sellers.aspx

Housing Market: About to SPRING Back

We believe that 2012 will be the year that home sales start to climb again. Over the past thirty days, more and more experts are saying the same thing.

Jamie Dimon, JPMorgan Chase CEO “I believe we’re very close to the inflection point. People look at prices that are still coming down but all the other signs are flashing green… You could come up with a pretty bullish case (for housing).“

Frank Nothaft, Freddie Mac chief economist “Even the housing market is showing some signs of shaking off the depression like conditions that have plagued it for much of the past few years.”

Goldman Sachs Group “Stabilization in U.S. housing fundamentals is creating an attractive investment
opportunity. Many of the ingredients are in place for continued improvement in housing.”

Lawrence Yun, NAR chief economist “If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that’s what we’re expecting with sales rising 7 to 10 percent in 2012.”

KCM Blog

Want a Greener Lawn Sooner?

Mowing your lawn early in the spring will result in the lawn greening up sooner. 

We receive many calls each spring from our customers wanting their spring treatments immediately because the lawn is not greening up.  Generally, the lawn has plenty of fertilizer left the previous years fall or winterizer treatment to green up.  The lawn is dormant in the spring and needs to be stimulated to wake up and start to grow again.  Mowing the lawn as early as possible provides stimulus the helps promote the greening process. As you mow it removes the nutrients necessary to start greening up.  Occasionally, some light raking may be needed to stand the grass plants up before mowing. 

Green Pointe Lawn Care

2500 Government Houses Up for Bulk Sale

Barely six hours after billionaire investor Warren Buffett said that if he could he’d like to buy “a couple of hundred thousand single family homes,” the regulator of Fannie Mae and Freddie Mac put about 2,500 of theirs up for sale.

It is the next step in the government’s REO (bank-owned) to rent program; the plan, announced earlier this month, is designed to help Fannie and Freddie unload thousands of foreclosed properties weighing on their books. Fannie Mae alone owns more than 100,000 repossessed properties.

“This is another important milestone in our initiative designed to reduce taxpayer losses, stabilize neighborhoods and home values, shift to more private management of properties, and reduce the supply of REO properties in the marketplace,” said FHFA acting director Edward DeMarco in a press release.

While the prequalification phase began several weeks ago, investors can now move to the next phase, where, if accepted by proving financial capacity and experience, they can get access to the properties for sale. The bulk of the properties are in the most distressed markets, such as Florida, parts of California, Phoenix, and Las Vegas. Atlanta, however, has the highest number in the mix, 572 properties making up 23 percent of the total up for sale. Atlanta housing was hit hard by the recession and high job losses. Just 17 percent of the properties are vacant, so investors would largely be getting assets with existing cash flow.

As these first properties hit the market, there is no shortage of investors ready to scoop them up. Rental demand is still surging, and rents continue to rise, despite record high affordability and record low mortgage rates. Nearly 47 percent of all closings in January were of distressed properties, according to a new survey from Campbell/Inside Mortgage Finance, and investors now make up nearly a quarter of all buyers, according to the National Association of Realtors.

As banks start to ramp up the foreclosure process again, after a year of delays following the “robo-signing” scandal, more properties will be repossessed and put up for sale; investors are flocking to the deals, largely using all cash, as they get into increasingly competitive situations. Even owner-occupants (non-investors) are turning more to cash, as credit is still tight.

“Despite near record low mortgage rates, homebuyers are finding it very advantageous in the current housing market to shop with cash. And low returns on money deposited in banks as well as mortgage approval hassles also are pushing homebuyers to consider all cash transactions,” according to Campbell/IMF. “Between last October and January, the use of cash by current homeowners purchasing a new principal residence surged from 30.8 percent to 34.1 percent.”

Critics of the bulk REO to rent program say that giving large investors with hoards of cash bulk deals squeezes out smaller investors who might do more improvements to the properties and then turn around and sell them at higher prices, thereby increasing overall home values. Investors in the FHFA program are required to hold the properties and rent them for “a specified number of years,” according to the agency’s initial announcement.

By: Diana Olick



CNBC Real Estate Reporter

Warren Buffet AGAIN Says it is a Great Time to Buy

Warren Buffett appeared live on CNBC’s Squawk Box this week. During the interview, he was asked about the current real estate market and whether he felt now was the time to buy. His response was rather emphatic and has been used as a headline in hundreds of articles since the interview:

“If I had a way of buying a couple hundred thousand single-family homes I would load up on them.”

However, throughout the interview, he addressed the market from a few angles. Here is what he said:

Why invest in real estate now?

“It’s a way, in effect, to short the dollar because you can take a 30-year mortgage and if it turns out your interest rate’s too high, next week you refinance lower. And if it turns out it’s too low, the other guy’s stuck with it for 30 years. So it’s a very attractive asset class now.”

Is buying your own home better than investing in stocks right now?

“If I knew where I was going to want to live the next five or 10 years I would buy a home and I’d finance it with a 30-year mortgage… It’s a terrific deal.”

Should we buy multiple houses?

“If I was an investor that was a handy type and I could buy a couple of them at distressed prices and find renters, I think it’s a leveraged way of owning a very cheap asset now and I think that’s probably as an attractive an investment as you can make now.”

Over the last couple of months, there have been more and more financial analysts coming to the same conclusion: It’s time to buy real estate.

Year-End Home Sales Highest in Three Years

Utah home sales in 2011 were the highest they’ve been since 2007, according to a new report from the Utah Association of Realtors. The report indicated that Utah Realtors sold nearly 33,000 homes last year, up from the final tallies in 2010, 2009 and 2008.

Compared to 2010, sales were nearly 9 percent higher, the result of increased homebuyer confidence, affordable home prices and record-low interest rates. Even though sales faltered during the spring, they picked up significantly at the end of the year.

Since July, monthly home sales have recorded double-digit gains compared to the prior year. Including the 9 percent increase from June, statewide sales have been up for seven straight months.

Among property types, single-family homes had the highest sales increases, up more than 10 percent compared to 1 percent for condos and townhomes.

The trend of rising sales should continue into this year. Pending sales, which measure contracts that have been signed to buy properties, were up more than 11 percent in 2011 compared to 2010.

The year 2011 was also significant because the market began to absorb excess supply. At the end of December, inventory levels were down nearly 24 percent. For the past 10 months, inventory declines have been in the double digits, with levels falling for more than a year. The number of homes on the market has not been this low since March 2007.

The effect of the steep inventory drop was to bring supply and demand more in line. The 20,243 homes listed for sale at the end of December represented a 7.2-month supply of inventory. That’s down more than 31 percent from the 10.5-month level in 2010. Traditionally, a market is balanced between buyers and sellers when the inventory represents a supply of about six months.

While prices remained weak in 2011, the reduced supply and increased demand suggest that trend will not continue. A new report from Fiserv and Moody’s Analytics this week predicts Utah home prices will have increased by the end of summer, with the state having the seventh-highest appreciation in the country.

The organization says from third quarter 2011 to third quarter 2012, Utah home prices will have increased 1.5 percent. During that same period from 2012 to 2013, Fiserv says values will be up 7.4 percent.

Of course, the forecast varies depending on the area. Fiserv says St. George will have the state’s strongest home price appreciation. By July, prices are expected to increase 4 percent from the previous year. Coming in second is the Logan metro area at 2.3 percent. In Ogden-Clearfield, Provo-Orem and Salt Lake, prices are expected to see slight increases, with no major Utah metro area forecasted to have a price decline

Read the full article here
 
utahhousingtracker.com

Why Deals Die

I have seen estimates stating that 29% of deals that go to contract and require a mortgage, don’t close. That number boggles my mind. It means that even after a buyer and seller come to terms on a sale (not an easy feat these days), 3 out of 10 transactions fall apart. What are some of the more common reasons?


Appraisal issues – In many markets, we are still seeing declining values. Appraisers are in a difficult position, and with so many transactions (including seller’s concessions to assist buyers with closing costs) values aren’t always coming in at sales prices.

Short Sales not being approved by the current lender – With so many sellers owing more than their home is worth, buyers’ proposals need to be sanctioned by the lender (who will be receiving less than they are owed). Some of the offers are too low, but often, the lender isn’t local and they really don’t know what the property is worth today.

Bad pre-approvals from the loan officer – Today, loan officers who are not reviewing tax returns, analyzing bank statements, and asking for detailed explanations and documentation on credit blemishes, are truly hurting the customers. Issuing pre-approvals based on the representations of the customer is reckless and a cause for dismay later.

A lack of transparency – Whether it’s a seller or agent not disclosing property issues, or a buyer trying to sneak things by an underwriter, too many people think they can cut corners. That is not the world we live in anymore. Everything is uncovered. Being honest in the beginning, gives you the best chance to overcome obstacles.

It is clear by the numbers that closing loans can be more difficult today. However, with proper planning and integrity, many of the challenges can be dealt with early and successfully. Agents documenting values of the homes, loan officers doing complete reviews of the loan profile up-front, and everyone telling the truth helps get deals to a successful conclusion and avoids horror stories.

by Dean Hartman on January 26, 2012

10 Surprising Reasons You Can’t Get a Home

Getting a home signifies financial security and an investment for the future. Owning a home is part of the American Dream. There are some surprising reasons why you can’t get a home.


Down Payment – You may have the required 10%-25% on the asking price of the home you are interested in but how you acquired it and how long you’ve had it could keep you from getting the home. Many times relatives offer young couples the down payment. Lending institutions take this into consideration when looking at the ability of a homeowner to keep up with mortgage payments. Saving the down payment over time lends to the credibility of money management.

Credit– Credit history is an ongoing process. Student loans are one of the first obligations a person may have as an adult. Late payments may have a bearing on your ability to acquire a home later in life. Credit scores are also affected by utility payments. Any recurring bill that is paid late may come back to haunt you even though your financial situation is now more sound. Your debt to income ratio ideally needs to be under 45%. Less than a 3 month asset reserve in a bank account will generally keep you from getting a home. Check your credit score with all 3 agencies and make sure there is nothing being reported incorrectly. You need to aim for a score of 660 or better.

Job Security – Your job history may be why you can’t get a home. Lenders look for stability. If you jump from job to job, regardless of monetary or career improvement, lenders see you as a financial risk. When the economy takes a downward turn, employers tend to retain employees with seniority. Also taken into consideration is the risk of the job.

Parent History – If your parents have a questionable credit history, you may be dealing under their shadow. If parents foreclosed, you may be affected. If they were late with mortgage or credit card payments, you may be looked upon as having the same traits. If you are asked information on parent particulars, you may need to look elsewhere for home financing.

Location – The location of a home may affect whether or not a lender is willing to risk mortgaging it. LNG routes, Super Site areas, fault lines, destructive weather patterns all have bearings on mortgage risks lenders are willing to take on.

Inspection – More and more, home inspections are being required to seal the closing deal. Hopes have been dashed to learn major expenses must be incurred to pass inspection for the approval of the sale.

Condition – Fixer-uppers may offer pricing that appears affordable. If you have no background of construction or home improvement projects completed, lenders are leery to finance such undertakings. They may require a lump sum amount be in an account to cover the improvements necessary to ensure the property does not result in a loss to the lender.

Liens – If you owned property before and were subject to liens for unacceptable reasons such as credit card debt or unpaid taxes, you may not get the home you desire. A current homeowner may also have substantial liens that need to be satisfied at closing either from the sale itself or as additional costs to the buyer.

History – The history of the home may be the deciding factor that keeps a lender from financing in your behalf. A murder, haunting, nearby sinkhole, or other less favorable activity, bear upon the lender’s willingness to finance such a home.

The Bank – Economic conditions and bank lending history may be the reason you can’t get a home. Banks may be leaning toward only very secure clients to up their lending credibility. If a bank turns you down, look to other options before you decide to settle on thinking you can’t get a home. FHA, VHA, or a first time buyer program offer other alternatives for which you may qualify.

If you can’t get a home loan with one lender, chances are good that another institution will also turn you down. You should take some time and work at increasing the good points that will work in your favor. Try again when your situation has improved.


by Ann Douglas

When the Prophet Says Buy – BUY!

John R. Talbott, previously a Goldman Sachs investment banker, is a bestselling author and economic consultant. When it comes to the housing market he is also a prophet. When housing prices started to skyrocket in 2003, he published The Coming Crash in the Housing Market correctly warning us that a real estate bubble was forming. Then in January 2006, he called the absolute peak of home prices in the US by releasing a new book, Sell Now! The End of the Housing Bubble.

Mr. Talbott, the person who accurately predicted the housing bubble and its bust, now has a new prediction – IT IS THE TIME TO BUY A HOME! In a recent article, Homes – Buy Now!, Talbott simply explains:

“I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with thirty-year fixed rate mortgage debt.”

He goes on to explain that his conclusion is based on four different metrics, all of which favor buying today:

Home Prices Relative to Peak Prices During the Bubble

Home Prices Relative to Construction Costs or Replacement Costs

Home Prices Relative to Incomes and Rents

Home Prices in Real Terms, Not US Dollar Terms

Bottom Line -If the person who called the real estate bubble and its bust says now is the time to buy, we believe it is time to buy.


by The KCM Crew

5 Real Estate Trends to Look For in 2012

Predicting trends during the most volatile housing market in American real estate history is no easy task. We strongly believe these are the five real estate items we should keep an eye on in 2012:

1. Buyers Will Return

In 2011, a lack of consumer confidence in the overall economy dramatically impacted the housing market. Buyers were afraid to make a purchasing decision on any big ticket item. By the end of 2011, consumer confidence began to return and sales increased. Economic conditions will continue to improve throughout 2012 and consumer sentiment will solidify. Once that happens, home buyers will realize that now is the time to buy.


2. Foreclosures Will Increase

The ‘shadow inventory’ of foreclosures which has been growing since the robo-signing challenges of late 2010 will finally be introduced to the market. Distressed properties sell at discounted prices. They will impact the housing values of the non-distressed homes in the area.


3. Prices Will Soften

As more and more foreclosures come to market, there will be greater downward pressure on the values of houses in the region. Foreclosures impact values of non-distressed properties in two ways:

They will eat up some of the buyer demand in the market.

They will impact the appraisal on ALL transactions in the area.


4. Short Sales Will Increase

As mentioned above, we strongly believe that home prices will soften through at least the first half of 2012. Falling prices will force more homeowners into a position of negative equity. Negative equity is one of the triggers that cause people to strategically default on their mortgage obligations. If this happens, there could be an increase in the number of foreclosures. However, we predict that banks will take preventative measures which will help many of these homes avoid foreclosure by easing the requirements in the short sale process for both homeowners and real estate professionals.

5. Great Agents Will Be VERY Successful

Real Estate professionals who have invested the money, time and energy to truly understand what is happening and why it is happening will separate themselves from their competition and do very well this year.

Those who take that next step of learning how to simply and effectively communicate the market to their clients will be seen as industry leaders. These experts will dominate their markets.

Short Sale Vs. Foreclosure: A Short Sale Always Wins

Today’s ever changing real estate industry has brought upon some very challenging questions from our clients. We as counselors, want to put forth the best, non-emotional advice that we can, in hopes that we can help our clients and their families navigate the rough waters of the short sale process.

The most prevalent question and one that continues to permeate the industry is:
“Why should a seller go through the short sale process rather than letting their house be foreclosed upon?”

While we cannot speak to every client circumstance, we can say one thing with complete conviction. In almost all instances in which a potential seller is contemplating whether they should short sell their house or let it go through the foreclosure process, a short sale is the better option. The following are examples to consider:

Example A- Short Sale

Mr. Smith owns a home in which he has a mortgage balance of $220,000 and a current market value of $150,000. Mr. Smith has elected to short sell his property. His Realtor successfully obtains a buyer who puts forth an offer price of $120,000 (80% current market value according to Realty Trac Foreclosure Report 5/26/2011). After reviewing the buyers offer and the financial hardship information from Mr. Smith, Mr Smith’s bank agrees to accept the short payoff of $120,000 which would leave a deficiency balance of $100,000.

The transaction closes and is final. Mr. Smith then pulls his credit report 30 days after the transaction takes place. On the report he notices that the mortgage trade line states “Mortgage debt was settled for less than full” and the balance on the mortgage is $0. Mr. Smith is now on the road to financial recovery.

Example B- Foreclosure

For the ease of illustration we will use the same value and mortgage debt amounts as in Example A. However, Mr. Smith has elected to forgo the short sale process and let the bank foreclose on the property. The bank holding his mortgage facilitates the proper legal procedures to foreclose on the property, all of which are costly. Mr. Smith is notified and his property foreclosed upon of which is taken back by the bank to sell as an REO.

Six months later, the bank finally sells Mr. Smith’s home only they sell it for $90,000 (60% of current market value according to Realty Trac Foreclosure report dated 5/26/2011). Remember, as a short sale, the home would have sold for $120,000 keeping the deficiency to $100,000. In addition to the deficiency now being $130,000, the bank has elected to add on legal costs of $15,000 and asset preservation costs of another $5000 for a total deficiency liability of $150,000. Mr. Smith pulls his credit report 30 days after being notified that the bank has sold his property and of his liability.

On the report he notices that the mortgage trade line states “Foreclosure” and the balance is $150,000. Because of Mr Smith’s choice to choose foreclosure vs. short sale his road to financial recovery has taken a major detour. He not only has a foreclosure on his credit report but now has a much larger deficiency balance in which the bank, in most cases, will report on his credit report as a balance owed.

The Best Option is Clear

While the financial and credit advantages are clear when choosing a short sale over a foreclosure, other advantages are sometimes overlooked. The most important of all of them is maintaining the seller’s dignity and peace of mind. We have heard too many stories of families having to leave their homes because of a Sheriff’s order or some other type of legal action. The short sale process alleviates this negative social impact. The process puts the control back in the seller’s hands so that they can get back on the road to financial recovery and start providing for their families. In the battle of the two evils, a short sale always wins!!!

KCM Crew

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We are #5 and #8 on the List for Best Cities to Start Over in!

#8, Provo, Utah

Median income: $66,200

Cost of living score (average=100): 90.2

Student-friendly rank: N/A

Independent business score (average=100): 101.3

Unemployment: 6.6%

#5, Ogden, Utah

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Median income: $70,600
Cost of living score (average=100): 90.5
Student-friendly rank: N/A
Independent business score (average=100): 99.2
Unemployment: 6.9%

READ THE COMPLETE STORY HERE

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The 8 Healthiest Housing Markets

Many of the housing markets projected to have the biggest gains into 2012 tend to be the home to major universities, strong private sector employment, or have nearby military bases, according to a list of the healthiest housing markets by Builder Magazine. Builder teamed with Hanley Wood Market Intelligence to compile its annual list of the healthiest housing markets in the country, factoring in housing projections from Moody’s Economy.com. The list was based on projected price appreciation, population growth, income growth, and improving employment picture.

The following are the eight cities that topped Builder’s list, including projected housing permits in 2011 and 2012.

1. Minneapolis-St. Paul-Bloomington Minn.-Wis.
2011 Building Permit Forecast: 4,511
2012 Building Permit Forecast: 10,118
Home prices here are expected to rise 8 percent next year, the highest growth projected in the 100 cities analyzed. As a hub for medical technology and headquarters for several large companies, employment is expected to grow 2.5 percent in 2012.

2. Fort Collins-Loveland, Colo.
2011 Building Permit Forecast: 1,004
2012 Building Permit Forecast: 1,650
With Colorado State University the major employer here and often ranked as one of the best cities to live in the country, households are expected to grow by 2.7 percent in 2012 and employment is expected to grow 2.6 percent. Housing permits are expected to rise 50 percent as well, according to Moody projections.

3. Salt Lake City, Utah

2011 Building Permit Forecast: 1,294

2012 Building Permit Forecast: 1,181

With lots of high-tech businesses, Salt Lake City is poised to have some grains in employment and income in the coming year. After a drop in home prices, prices are expected to rebound and increase 4.7 percent next year. 

4. Jacksonville, Fla. 
2011 Building Permit Forecast: 2,284
2012 Building Permit Forecast: 4,363
Jacksonville has a strengthening employment picture, with a military presence and a growing financial services sector. Employment is expected to increase 3.2 percent in 2012. With stabilizing home prices already, prices are expected to rise 5 percent next year and housing permits are expected to double.

5. Miami-Fort Lauderdale-Pompano Beach, Fla. 
2011 Building Permit Forecast: 2,708
2012 Building Permit Forecast: 7,522
This metro area is expected to reverse course with jobs forecasted to grow by 2.7 percent, home prices stabilizing, and housing permits expected to double. The rebound is expected to be mostly driven by two major projects, the CitiCentre and Resorts World Miami, are expected to add tens of thousands of jobs in coming years.

6. Charlottesville, Va. 
2011 Building Permit Forecast: 634
2012 Building Permit Forecast: 798
The city is home to the University of Virginia and also continues to attract a surge in second-home buyers from the Washington, D.C., area. Home prices are expected to rise 1 percent in 2012 and median income is forecasted to grow by 3.7 percent.

7. Colorado Springs, Colo. 
2011 Building Permit Forecast: 2,099
2012 Building Permit Forecast: 3,639
The biggest employers in Colorado Springs are military bases and the Air Force Academy, which are expected to see big growth when the troops from Afghanistan return. Home prices are expected to rise 2.6 percent, employment to grow by 1.4 percent, and households to increase by 1.8 percent in 2012.

8. Oklahoma City, Okla. 
2011 Building Permit Forecast: 3,417
2012 Building Permit Forecast: 5,284
At 6.1 percent, Oklahoma City has one of the lowest unemployment rates in the country. Furthermore, the job market is expected to continue to rise there, and incomes are projected to increase 3 percent next year. While the area has a seen a drop in home prices recently, housing prices are projected to rebound and increase 2.6 percent as Oklahoma City’s low cost of living continues to attract businesses and new households.

10 Ways to Stay on Budget When Remodeling

1. Plan cautiously. Make all the changes you want on paper; they're expensive later. 
2. Prioritize.  Decide where to economize and where to focus your funds. 
3. Shop critically.  Avoid one stop shopping; you may end u paying too much for the convenience.
4. Stick to standard and stock choices.  Find out how much special finishes and colors will add to your costs.
5. Understand the differences in materials. Consider long term value as well as initial cost.
6. Don't be swayed by status.  Does that stylish product really suit your needs? And will you still like it next year?
7. Refurbish and recycle.  Can you reuse windows, doors, appliances, and other equipment instead of replacing them?
8. Keep the structural framework. Before adding on, explore the more economical possibility of reconfiguring the existing space. 
9. Pay for professional advice: A skilled designer of architect can help stretch your budget.
10. Do some of the work yourself but take care not to overestimate your zeal or skill.   

Real Estate is the Best Long Term Investment

What’s First? The House or the Mortgage?

Most people get it backwards. They shop for a home, THEN, they try to structure the financing for it. They make the emotional decision of buying the home of their dreams, THEN, try to apply logic in how they pay for it.  Many even go “online” and play with what is affordable by underwriting standards without TRULY considering their future.

I am always fascinated by mortgage underwriting “standards” when they don’t even take into account some very large variables that affect an applicant’s cash flow, and thereby, their ability to repay the loan or maintain a lifestyle they want:

Are you single or a family of six? Costs for food and clothing alone are very different.

Do you live in a state that requires State Income Tax or not? Another significant part of the equation.

How often do you like to eat out or vacation? Are you willing to sacrifice these things for a bigger or nicer home?

Falling in love with a home without considering the REAL impact on your lifestyle is a recipe for unhappiness….either in re-adjusting to a “lesser” home or disappointment over the lack of vacations or nights out.

My advice is to first work on your financing. Go the logic route. Find out what you can afford from a lender’s underwriting perspective, but then, spend some time considering the the cash flow realities of your choice. Work with your loan officer to make wise choices.

Additionally, your loan officer should be advising you on ways to properly represent and transfer your assets, how to explain and document your income, as well as, assisting you in methods to get your optimal credit score. This counsel can be invaluable in smoothing out some of the bumps in the mortgage process, besides giving you the best chance to get the most aggressive pricing available.

To me, the choice is crystal clear…the mortgage before the house!

by Dean Hartman - KMC

Wall Street Journal & Forbes: It's Time to Buy a Home

by The KCM Crew

We believe very strongly that now is the time to buy a home. Some will say we are just saying this to create real estate transactions and commissions. Because of that, today we will quote what those outside the real estate profession are saying to the people who look to them for financial advice.

The Wall Street Jornal Last week, in an article entitled It’s Time to Buy That House, the WSJ told their subscribers:

“It’s an excellent time to buy a house, either to live in for the long term or for investment income…Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.”

In an article two weeks ago,  MarketWatch.com (the on-line blog for WSJ) told their readers:

“Now could be the best time in history to buy a home.”

Forbes.com
In a report to their subscribers, Capital Economics reported that:

“The previous declines in house prices and the more recent drop in mortgage rates to record lows have created an unusual situation in which the median monthly mortgage payment is more or less the same as the median rental payment.”


Why is this important? Last week, Forbes explained to their readers:

“If rents simply kept up with inflation at a 3.2% annual increase, a $1,500 rent payment would cost that renter nearly $900,000 over the next 30 years. The same $1,500 payment made to their mortgage would be only $540,000 (because the payments don’t increase with inflation).”

They went on to explain the advantages of homeownership during retirement:

“Even with a dismal 1% growth rate over 30 years, a $300,000 property would appreciate well over $100,000 giving the homeowner an additional nest egg for retirement…

At a time when retirement is becoming much more challenging, an extra $400,000 (or likely more) can make a major difference not to mention the impact of NOT having to pay a mortgage. How much less would you have to save for retirement if you didn’t pay the mortgage?”

Bottom Line....

When the iconic financial newspaper and the iconic financial magazine say that it now makes financial sense to purchase a house, perhaps it’s time to buy a home.

Tips To Present a Stronger Mortgage Application

ShareShare As underwriting guidelines for lenders become more stringent, we need to re-examine what a good mortgage application looks like. As home buyers begin their search for a home, there are a few items they should be aware of that they can do to help get their loans approved (with the best possible terms), and, at the same time, lessen some of the stress that goes along with the mortgage process.

1. Income documents

Most lenders want to see a full month of paystubs and two years’ complete Federal Tax Returns. Assembling them ahead of time and holding on to every paystub you get is a good idea even before you find a home and/or submit your mortgage application because it will save you time later. Moreover, looking at those documents and being prepared to explain any deductions that show up is crucial. Child support, alimony, garnishments, and Unreimbursed Employee Expenses are often crippling factors that, if explained and dealt with upfront, can make your loan approval smoother.

2. Asset documents

Most lenders will scour your bank accounts for the two months prior to going to contract. They are looking for large deposits because large deposits can signal a new loan that wouldn’t show up on your credit report yet. What’s a “large deposit”? Typically, any deposit that would represent more than your income can support. If you make $5000 a month, after taxes you likely net $3800 (or $1900 a bi-weekly pay period). Therefore, deposits in excess of that will need to be explained and documented. Sold a motorcycle? Have a paid receipt and motor vehicle documents in place. Received a gift? You will need a Gift Affidavit, proof of the donor’s ability and transfer of the funds. Any and all questions should be discussed with your loan officer.

3. Credit Score Optimization

Do your best to curtail your use of credit as it relates to your available credit lines. Target a cap of 30% of usage of available lines to get the best scores. Do NOT cancel credit cards. That will lower your amount of available credit, thereby raising your percentage of usage. That will damage your score. Do NOT shop for a car, explore life insurance, apply for a new credit card or increase the limits on your current cards because the running of your credit by people in other industries will also lower your credit score. Most importantly, don’t do anything that will require having your credit run without first discussing it with a mortgage professional who knows the impact it could have.

4. Appraisal Concerns

It’s unlikely you will make an offer to purchase without checking out comparable home sales. It’s also likely you received that type of data from the real estate agent you are working with. Make sure your agent prepares the same information for the appraiser. Data about similar sales, similar homes currently on the market and maybe even cost estimates for any repairs or improvements anticipated can preempt future problems with appraised values and conditions.

Overall, it is recommended that you hold onto copies of everything financial, think before allowing your credit to be run and work with an agent and loan officer who can use their experience to put your loan application in its best possible light…as soon as you start thinking about buying a home.

by Dean Hartman on KMC

Did You Actually Save Money By Waiting to Buy?

by The KCM Crew on October 7, 2011

Utah Realtors Say There is a Ray of Hope For The Local Market

According to the Utah Realtors Association, homes are starting to sell again, and August was a pretty good month.

But it's still a buyers' market, and many sellers are finding they have to put up some bargain prices to get their homes sold.

Like many other homeowners in Utah, Krista Numbers has learned that selling a home right now isn't all easy.  "You're competing with a lot of things — like short sales, and bank-owned, and foreclosure — so you have to be aggressive," she said.

And that's what she did. Also a short sale, she put her home up for a bargain price and got a buyer in just a few days.

Numbers has no doubt it's a buyers' market out there, and that brings some hope for the future. "All across the valley we are finding that there are some fantastic homes out there," she said.

Overall, Utah Realtors say that's bringing a positive trend for Utah. While sale prices are still low, the increase in activity means there are signs that our local market is on the gradual road to recovery.

"We're seeing more confidence in the market, and we're seeing people get out there and take advantage of the positives out there — like affordability," said Deanna Devey, with the Utah Association of Realtors.

Realtor Vann Larsen says the good news is homeowners can make that quick sale if they're willing to face the facts.

"The sellers aren't going to get what they thought their home was worth a few years ago, but those values were inflated," he said.

That is the bad news. The median price for homes sold is down about 10 percent from last year.

Still, Numbers says if her family can just stick it out, things may work out better in the long run.

"The thing that I have definitely learned with this market is you have to roll with it. You're buying high and selling high, or you're in a market where you're gonna sell lower and you're gonna buy lower," she said.

There were also fewer homes on the market in August than a year ago. Overall, realtors say since prices didn't get as inflated as they were in other parts of the country, things are improving faster. Still, it's a buyers' market out there, as the conditions very slowly improve for sellers.

 KSL - By Mike Anderson

Perfect Time To Buy?

Economy and Market Conditions Create Perfect Opportunity to Buy a Home in Utah


Although the US Economy is still sputtering, the stock market is on a roller coaster ride and a recent report on the sale of homes in the US predicted that 2011 could be the worst year for new-home sales records in nearly 50 years, local Bank of Utah and Metrostudy experts say this has created a perfect opportunity to buy a home along the Wasatch Front. Apparently some Utahns are discovering this. A recent report by the Utah Association of Realtors showed that July home sales rose 16.4 percent higher than July’s 2010 sales. And, according to Metrostudy, a nationwide provider of primary and secondary market information to the housing industry, inventory for new single family homes under construction has increased 7.1 percent since last quarter, signaling a demand for new housing.

“Some people may have been hesitant to buy a home because of the instability of the national economy,” said Amber Wykstra, vice president and residential loan production manager for Bank of Utah. “But, certain favorable conditions in Utah’s housing market have created a great window of opportunity for those anticipating buying a new or existing home. If you have money for a down payment, good credit and a stable income, now is a great time to buy. Mortgage rates have been at record lows, homes are the most affordable they’ve been since 2004, and new home inventory is currently adequate, but these conditions will not stay this way forever.”

In recent weeks, a 30-year fixed-rate mortgage averaged 4.15 percent. Government-backed loans are also very low, averaging 3.36 percent for a 15-year fixed rate mortgage, and a five-year adjustable rate mortgage was recently as low as 3.08 percent. (Freddie Mac National Averages)

The National Association of Home Builders recently reported that Salt Lake City reached a seven-year high for home affordability. In the Salt Lake area, 79 percent of homes sold in the second quarter were within reach of families who make a median income. The Ogden-Clearfield and Provo-Orem areas were also rated as affordable based on mortgage rates, incomes and the median prices of homes. The median price for homes sold in Utah since January has hovered around $175,000. And, if you need to sell your existing home, keep in mind that Salt Lake is one of the top five housing markets in the nation, meaning that home values have dropped the least in Utah.

“Prices for homes will continue to be low for a time, added Wykstra. “However, economists are predicting that both lending rates and home prices will eventually rise, so the time to act is now. There are so many opportunities out there to work with a builder or take advantage of great prices on existing homes due to the lower prices and the number of foreclosure or short sale homes on the market.”

“There is a healthy balance of inventory of newly-built homes within the Greater Salt Lake Market (a seven-county area),” said Eric Allen, director for the Utah/Idaho Region of Metrostudy. “While the annual pace of new home starts for detached single family homes decreased 18.8 percent compared to last year at this time, it’s important to note that last year at this time the market was inflated due to the government tax credit; which means we are comparing inflated demand with today’s real demand, therefore resulting in a larger than expected decrease. Conversely, inventory for single family new homes under construction has actually increased 7.1 percent from last quarter, signaling that there is demand for new housing as builders continue to maintain a very low level of finished vacant home inventory. Of the 2,000 new single family homes currently in inventory, 28 percent are currently under construction and priced below $300,000, and only 18 percent of these homes are finished and vacant. New home inventory for homes above $300,000 is split with 31percent under construction and 13 percent being finished and vacant (with the remaining homes being models).”

“Based on the current pace of absorption, there is a four-month supply of single family homes under construction and only 2.1 months of finished vacant homes, added Allen. “The recent influx of 20 new companies bringing jobs and new residents to the state may deplete the current supply of new single family homes.”

According to Wykstra, if you’re building a new home it’s to your advantage to have your builder and lender work together. There are construction loans that require no down payment and the closing process is fast and easy for the home buyer and builder alike.

Mike Schultz, president of Castlecreek Homes commented, “Our customers have benefited greatly from local community banks, including Bank of Utah, that are willing to lend for construction loans with little or no money down. Their ability to lend has allowed buyers the opportunity to build a new home at a great price and has kept the market going.”

Utahpulse.com

Bank Of America Stops Filling Mortgage Default Notices in Salt Lake County

Bank of America stopped filing foreclosure default notices in Salt Lake County earlier this month, but its attorney argued in court Thursday that it still has the legal right to do so.

The seeming contradiction wasn’t explained by the bank, though the halt in filing of notices of default in county property records apparently comes ahead of a pending agreement with the Utah Attorney General’s Office to end the practice state attorneys consider illegal.

Gary Ott, the Salt Lake County recorder whose office keeps official property records, confirmed Thursday that ReconTrust, the foreclosure arm of Bank of America, has not filed a default notice since earlier this month. That appears to mean the banking giant stopped the procedure after a letter from the A.G.’s Office saying that ReconTrust does not qualify to carry out foreclosures under Utah law.

North Carolina-based Bank of America did not return several emails seeking an explanation. Its attorney, William Boland, also declined to comment after a Thursday court hearing in Salt Lake City.

But in the hearing in federal court Boland said that a proposed class action lawsuit against ReconTrust and Bank of America should be dismissed because federal bank laws preempts a Utah law that says only Utah attorneys and title companies can carry out foreclosure filings and sales.

"Those laws allow ReconTrust to exercise the powers of foreclosure," he told U.S. District Judge Dee Benson.

Salt Lake City attorney Craig Smay, who filed the lawsuit, tried to counter Boland’s argument that because ReconTrust is competing with title companies for business federal law allows it to carry out foreclosures just like the title companies do.

Responding to a series of questions by Benson, Smay said ReconTrust is not a competitor to Utah title companies.

By Tom Harvey

The Salt Lake Tribune

MORE GREAT JOBS FOR UTAH

We are thrilled to report on eBay's decision to expand its existing operations in Draper by building a $110 million state-of-the-art facility there. The company will add up to 2,200 employees and pay 125% of the average wage in Salt Lake County.

This is a fantastic development and certainly emphasizes eBay's confidence in Utah's economic future. eBay is a world-class company, an excellent corporate citizen, and will add significantly to Utah's strong technology sector.

eBay currently employs approximately 1,400 people in Utah with its customer service center and data center, in Draper and South Jordan respectively. This project was assisted by the Governor's Office of Economic Development (GOED), Salt Lake County, Draper City, and Rocky Mountain Power.

EDCUtah's annual meeting is coming up October 12. We hope you are planning now to attend. You can secure your company's sponsorship by calling Art Franks, (801) 323-4242. This is sure to be an exciting and informative event. You'll not only learn about our economic development activities from the past fiscal year, but will also hear a keynote address by Wayne Rogers, author of "Make Your Own Rules." He's also an acclaimed actor, television personality and economic adviser. I hope to see you there!

Salt Lake City is on the list again!

The 10 happiest towns in the West
Salt Lake City made Sunset Magazine's CAPTION Sunset Magazine "Can where you live make you happy? And if so, who's to say what happiness is?"

We won't go down that existential path. And neither does Sunset Magazine in its February issue (out now). Instead, the article hedges its bets, declaring "…the happiest place is where we can find the things that matter most to us."

And that could mean anything from starting a business to living off the grid.

Coincidentally, Oprah on Wednesday featured a segment annointing San Luis Obispo, Calif., America's Happiest City. (It didn't make Sunset's list.) A giddy chamber of commerce, perhaps anticipating a tourism windfall from the so-called "Oprah effect," hosted a viewing party. The coastal college town was the only U.S. location to get a nod in the book Thrive, published last year, which pinpointed the world's happiest spots.

Here's the magazine's top 10 list with the outstanding quality that make these places so appealing to certain types.

Salt Spring Island, B.C. (population 10,000; median house price: $569,300) for wannabe farmers/gardeners. The 74-square-mile island's temperate climate makes year-round gardening possible.

Salt Lake City (population: 182,000; median house price $213,000) for aspiring entrepreneurs. Low corporate tax rates and an educated workforce, among other factors, make this an attractive spot to start a business.

Taos, N.M. (population 5,500; median house price $268,250) for those seeking a vacation home. Year-round recreation and limited housing makes this a good bet for second-home owners looking to rent out their dwelling.

Portland, Ore. (population 582,000; median house price $233,500) for people who prefer to go car-less. The city has a vibrant cycling culture with 300 miles of dedicated bike paths and lanes. And for longer jaunts, there's excellent public transportation.

Bellingham, Wash. (population 77,500; median house price $305,000) for outdoor recreationists. With 143 miles of Puget Sound shoreline in one direction and the Cascade Mountains in the other, there's outside action year round.

Eureka, Calif. (population 25,000; median house price $207,000) for aspiring artists. Art is taken seriously in a town that's home to more than 1,000 artists.

San Diego (population 1.37 million; median house price $330,000) for innovators. From pioneering computer technology to decoding the human genome, all kinds of cutting-edge endeavors are happening here.

Sonoma County, Calif. (population 472,000; median house price $484,000) for gourmands. With more than 300 wineries and a plethora of great restaurants, the area is a foodie's paradise.

Scottsdale, Ariz. (population 235,000; median house price $270,000) for parents of young kids. Low crime, good schools and lots of park land make it a good choice for raising a family.

Crestone, Colo. (population 146; median house price $250,000) for people who want to live off the grid. With 330 sunny days a year, this former mining town is a hotbed of solar power.

By Jayne Clark, USA TODAY



Salt Lake Makes List of the Top 10 Best Markets

Record affordability provides rare window of opportunity for house-hunting investors. 

In an in-depth, data-driven special report, "10 Best Markets for Real Estate Investors," Inman News analyzed hundreds of housing markets nationwide to develop a list of those that may be best suited for investors.

The full report -- available at no charge - took into account economic, housing and demographic data from sources including median sales price data from CoreLogic, loan data from Lender Processing Services, foreclosure sales and discounts statistics from Realty Trac, InvestorScores from SmartZip, walkability scores from Walk Score, and population and unemployment data from the U.S. Census Bureau and the Bureau of Labor Statistics.

The data analyzed suggested that the 10 best markets for investors are: Indianapolis-Carmel, Ind.; Winchester, Va.-W.Va.; Gainesville, Fla.; Tucson, Ariz.; Tallahassee, Fla.; Hagerstown-Martinsburg, Md.-W.Va.; Salt Lake City; Richmond, Va.; Gainesville, Ga.; and Winston-Salem, N.C.


Seven out of the 10 markets are in the South, two are in the West, and one is in the Midwest. None of the markets are in the Northeast.

The results of the analysis reflect population growth and improving employment. In the past decade, the South has seen the biggest jump in population -- up 14.3 percent to about 114 million people -- and the West saw 13.8 percent population growth, to nearly 72 million.


Four of the top 10 markets are state capitals and at least three others benefit from proximity to either a state capital or the national capital.

Despite recent job growth, unemployment is still high across the country, and in many markets foreclosures have turned homeowners into renters. Affordability is at a record high, but as home prices continue to fall in many markets, some buyers are staying on the sidelines waiting for the market to bottom.

Investors accounted for 21 percent of transactions in the first three months of 2011, and 33 percent of transactions during that period involved cash buyers -- the highest share since NAR began tracking that statistic at the end of 2008.

By contrast, first-time homebuyers have accounted for an average 32 percent of purchases for the past two quarters, which is the lowest share since fourth-quarter 2008.

Distressed property sales including foreclosures and short sales accounted for 40 percent of existing-home sales in March, NAR said, and investors bought 54 percent of those properties, according to economic research firm Capital Economics.

Only 39 percent of investors used a mortgage to finance their purchase in 2010, compared with 80 percent of primary-home buyers, according to NAR's 2011 Investment and Vacation Home Buyers Survey.

The survey showed that the biggest proportion of investors bought their property through a real estate agent (44 percent). Another 20 percent bought directly from an owner they knew, and 17 percent bought through a foreclosure or trustee sale.

The most popular reason cited by investors for buying an investment property was to rent it out, followed by "to diversify investments/good investment opportunity."

The median length of time investors planned to own their purchase was 10 years. More than half of investor buyers (52 percent) said it was at least "somewhat likely" that they would buy another vacation or investment property in the next two years.

Investors tended to be more confident about the housing market than primary homebuyers: 77 percent of investors said "now is a good time to purchase real estate," compared with 68 percent of primary-home buyers.

Read the full report

Inman News - By Andrea V. Brambila



Money Magazine: 2 Utah Cities As Some Of The Best Places To Live!

FARMINGTON
Top 100 rank: # 12

Population: 18,300

This friendly town near the Great Salt Lake lies 20 minutes from Salt Lake City’s job and cultural opportunities. More Small Town USA than suburb, Farmington is safe and quiet. That’s not to say it’s no fun: in the center of town is Lagoon, a 125-year-old amusement park that attracts visitors from all over Utah. The town has a mix of expensive turn-of-the-century houses and more affordable homes; a typical three-bedroom ran around $180,000 in mid-2011. What’s more, Farmington’s taxes are low, yet the town is in excellent financial shape

NORTH SALT LAKE
Top 100 rank: # 23

Population: 13,800

In this friendly community with easy access to Salt Lake City, running out of sugar rarely means a trip to the store. Instead, residents pop over to the neighbors’ for a chat and a cup of sugar. Jobs can be had at several small businesses in town (or, of course, in the city). Outdoor activities such as biking and in-line skating are big here, and a 13-acre park for community gatherings has just been constructed. What’s missing is a downtown area to call their own, residents say--but city officials are looking into creating one.

Source : Money Magazine

QR Codes Are Averywhere! Even On a Tombstone!

When Edouard Garneau died last August, his wife of 53 years ordered a bench-style tombstone.


"I go and talk with him," said Faye Garneau, who admits she isn't so sure she likes that her own name is already inscribed there, too.
 

That wasn't all: Several months later, the monument maker added a high-tech innovation — a small, square image known as a quick response or QR code, affixed alongside the big letters spelling out Garneau.

The monument maker — a friend — was working on the code before Garneau died of cancer at age 78.

People scanning the code with their smartphones are taken to a website that includes Garneau's obituary and a photo gallery highlighting the Seattle-area businessman. They learn he was a collision auto body repair expert, a world traveler and a loving uncle. In the future, more photos and stories from family and friends can be added.

Faye Garneau recently added a QR code to the gravestone bench memorializing her husband Ed Garneau at Holyrood Cemetery in Shoreline, Wash.

"I think it's a neat deal," Faye Garneau said. "It kind of keeps people alive a little longer, down through the generations."

When scanned with a smart phone's QR reader, code on Ed Garneau's tombstone takes users to a web site memorializing him in words and pictures.

The Seattle-based tombstone company is one of many new adopters of quick response or QR codes that also includes, a Florida nature trail and a T-shirt maker.

New uses for the technology are popping up almost daily, said Shane Greenstein, a professor at Northwestern University in Evanston, Ill., who studies IT markets. That's because "the bugs are worked out" from the code, which was created in Japan in the early 1990s, Greenstein said, adding that "there's no licensing fee; there are no restrictions. Users are free to think creatively." And, they are.

In Seattle, Quiring Monuments has made code-adorned "living headstones" for about two months. It has sold about 30 so far, General Manager Jon Reece said, adding he's gotten "tons" of inquiries, often from people still very much alive: "They say, 'I want my story to be told the way I want it to be told.'"

Quiring Monuments offers the QR code, website and website hosting free to people buying new monuments from the company, Reece said, noting the company will add it to existing grave markers for $65.

On Sanibel Island, Fla., the J.N. "Ding" Darling National Wildlife Refuge unveiled QR code signs last month along Wildlife Drive, on which nearly 800,000 visitors a year travel by car, foot or bicycle.

"It was nice and easy," said 13-year-old Tom Garvey of Delran, N.J., who put his iPhone — an eighth-grade graduation gift — to use on the trail. The refuge's iNature Trail sports 10 signs, each with two QR codes — one that pulls up videos and educational websites for adults, and another that's tailored to children.

"We wanted to find that niche to get kids outdoors and excited about nature," said refuge ranger Toni Westland. The videos feature snippets about ospreys, alligators and other creatures living along the mangrove forest-dotted estuaries of the 6,400-acre refuge.

Newspapers, including USA TODAY, use the codes to direct readers to such items as videos and photos.



A multitude of uses
Examples elsewhere include:

•Boulder, Colo., acoustic rock band SoundRabbit sells or hands out T-shirts with codes that take smartphones to free music downloads, said Chris Anton, band member, shirt creator and website design company co-owner.

•Lafayette, N.J.-based Fuzzy Nation, a designer and wholesaler of gifts for dog lovers, for the first time is putting QR codes on hangtags on its products sold at Macy's department stores nationwide, said Fuzzy Nation owner Jennifer Liu. The scanned code helps people enter a contest that began July 11. The contest promotes pet adoption and will earn one shelter a $10,000 stipend.

•Organizers of the Chevrolet Fireball Run Adventurally, from Sept. 23 through Oct. 1, say it will be the first national motoring event to use QR codes. For this year's multistate run though the South, competition cars will sport decals with codes. And, driving teams will distribute missing-child posters with codes. The scanned codes aid people with crucial information to share with the National Center for Missing & Exploited Children, said J. Sanchez, event executive producer.

•Kansas City, Mo.-based mobile tech marketing firm Kickanotch sends code-imprinted frosted graham crackers to new clients as a "thank you" and to take them to a website offering more ideas for the codes, CEO Andy Lynn said.

•Trinity Baptist Church in Lake Charles, La., is using QR codes in its bulletins and posters to encourage sign-ups for special family and youth programs, said Steven Haney, church media director.

Real estate sales agent Marilyn Boudreaux did a double take when spying a code for the first time in the church's bulletin: "I was like, wow — we are with the times."  Her discovery occurred shortly after the worship service began. That made the QR code a temptation, Boudreaux said: "I wanted to pull out my phone, and scan it."

By Andy Rogers, Red Box Pictures for USA TODAY

Why They Are Saying to Buy A Home Now

Despite what appears to be a non-stop wave of tough news regarding real estate, four major media players have come out this month with the same advice: It Is Time to Buy a Home! Here are the four articles and a breakdown as to why the advice makes sense.

The Wall Street Journal: Why It’s Time to Buy

CBS Money Watch: Why the Time to Buy is Now

Forbes Magazine: 9 Reasons to Buy a House Now

National Public Radio: For Many, It’s Still a Good Time to Buy a Home

With prices continuing to depreciate in most regions of the country, some may wonder why these four entities are suggesting to their readership that now is the time to buy. Each organization realizes that PRICE is not as important as COST. The cost of a home can go up even if prices continue to fall. Unless you are an all cash buyer, you must take into consideration the expense of mortgaging when calculating the full cost of a home. Here is some information to consider.

Interest Rates

Currently, interest rates sit at historic lows. However, Fannie Mae, Freddie Mac, PMI and the National Association of Realtors are all projecting approximately a 1% increase in mortgage rates over the next year. A one percent increase in rate negates a ten percent fall in prices.

Lending Standards

The government has proposed a tightening of lending standards called Quality Residential Mortgage (QRM). If accepted as proposed two things will happen:

1. The qualification process for loans will become more difficult

2. The cost of a loan will increase

Bottom Line

There is a reason more and more financial organizations are suggesting to their followers that now is the time to buy a home: because the cost of purchasing a home is about to increase (even if prices continue to fall).

by The KCM Crew

My HGTV Episode is on Tomorrow Friday August 5th

Property Alert! Deal of the Day! Price- $55,000

 

Realtors Turn to QR Codes to Sell Homes

SALT LAKE CITY -- You've probably seen them at the store or in a magazine -- the printed black boxes you can scan with your smartphone to get more information on a product or to find out more about a certain story. Now realtors are trying to cash in on the boxes' quick response codes.


Salt Lake Board of Realtors President Deanna Dipo is starting to use them on signs and fliers. She said one click can provide a lot of information to smartphone users.

"It will automatically populate the information of that home: pictures, detailed information about the home, the price. It's just a wonderful tool," she said.

Dipo says so far she has had a great response and she believes she knows why.

"People can get the information and no one is hounding them or calling them," she said.

But not everyone has a smartphone and not everyone knows about the codes. Also, it could cost agents more on the front end since someone has to set up the code. Dipo has hired an independent company that takes pictures of listed homes and creates the QR code.

Dipo said it seems like more people are moving to buy smart phones or tablet computers, so she expects agents to catch on, too.

"We're always trying to stay on the cutting edge and trying to give consumers the best service possible. And that's what it is. It's just another service or feature that we can offer." she said.


What is ... QR Code?•"Quick response" code
•Two-dimensional barcode
•Often used for adding web links or additional information to a printed page
•Meant to be scanned by mobile phone camera
•Information encoded may be text, URL, or other data

Property Alert Deal of the Day!

Justin will be on HGTV Don't miss it!

I was Featured as Utah's Real Estate Expert for HGTV's Bang For Your Buck.  They filmed late fall 2010, and it will be airing DECEMBER 10th at 1pm mnt standard time. 

Read more about the show here: http://www.hgtv.com/bang-for-your-buck/three-contemporary-master-bath-renovations-in-salt-lake-city/index.html

GET READY FOR A SUCCESSFUL YARD SALE!

1. FOLDING TABLES are the easiest to set up- throw colorful tablecloths on top if they're not in good shape. Use any large for sale items as extra display surfaces.

2. PUT A PRICE TAG ON EVERYTHING. If there are multiple components, like a box of dvd's post a sign stating the cost per item. 

3. DISPLAY EYE CATCHING PRODUCTS in a prominent place that can be seen from the street.  A large sign indicating a $1 table will also draw customers.

4. GROUP LIKE THINGS, kitchen utensils, children's toys, electronics- together.  Run an extension cord from the garage so people can test the gadgets.

5. DUST AND WASH EVERYTHING. If people believes the goods were well taken care of, they'll be more likely to buy them.

6. PROMOTE PRICIER ITEMS (Like cameras) by laying out all the pieces they came with, including manuals or Amazon descriptions. 

7. STOCK YOUR CASH BOX WITH CHANGE and have plenty of newspapers ready to wrap breakables.


From Sabrina Soto, Target's home style expert and host of  HGTV's Get It Sold.  

Real Estate News

The Deseret News on June 14 featured a story on renting vs. buying. The story cited a survey by the National Association of Home Builders in which 31 percent of respondents said their biggest barrier to owning a home was saving for a down payment.

REALTOR Carolyn Kirkham was quoted in the story as saying this past winter was one of the slowest in her 20-year career, but this past spring has been one of the busiest she can recall.

"Last week she wrote offers in a single day on homes for two young couples who'd been saving and had found their dream homes," the story said. "It's a fact that the very downturn that has so many people upside down in homes...has also put home ownership within reach for many first-time home buyers."

Property Alert. Deal of the Day! Messy House

For RENT- BEWARE of FRAUD

We recently listed a great property near the University of Utah, vacant and easy to show.  We had no idea it would be the next target of Fraud that has hit Utah.  I had a few appointments the day after we listed and when I get out there are voice mails on my phone about the property 'For Rent'.  People call all the time and ask if we will rent but not stating 'We are ready to rent'.  Someone had placed an ad with an email address that MATCHED my home owners name collecting DEPOSITS on the property.  Complete Fraud.  Luckily they called me, I investigated, and after a few phone calls it was under control.  No deposits sent, no one hurt.  I also placed the attached sign to the property just in case.  The email is a red flag but for $700 a month would be tempting to any starving college student.  See email below.  So if you have this issue, be sure to flag the listing and contact the Police.  Just so you know, I still think the world is good and well...just goes to show there is still a good rental market out there :).

Hello,

We are pleased that you have an interest in our house, Our lovely home is still available for lease and we want responsible adults/family who are neat and also believe that they have what it takes to take care of our house as if it were theirs. My wife and I initially had it up for sale but had a change of mind in leasing it out ourselves because the agent that was in charge of our rental property was asking too much of an agent fee and also making it difficult for people who cannot afford the rent, stay away from renting my house.

The reason why our house is up for lease is because I got transferred from my place of work to West Africa, I will be away with my family for at least 4 to 5 years because of the love I have for them, I have decided not to sell our house and also assuring them that we only have few years to spend here and will be willing to lease it out to person/family who is willing to assure us of taking absolute care of our home and pay their rent on time. I will start by telling you more in regards me and my family. I have a daughter named Leslie (20yrs) who attends University of Oklahoma as a medical student,she has a lot going for her and she is also down to earth in all that she does to keep us happy and when she is back home on vacation, she also assist her mom in the house work when am at work. I work as a Robotic Programmer & Welder/Fitter here in West Africa and got married to a lovely wife who is a member of Joyce Meyer Ministries . We will be very pleased if we can find the right tenant to rent our home, a person who is a clean freak and does not tolerate anything that has to do with dirt... we also would like to know more about you and your family, your renting experience and how long and when you plan moving into our home.1,996 sqft. I have received some proposals regarding the rent because it is located in a very good area of (Salt Lake City),but I still have to make sure it is rented out to someone who can take good care of it.It includes facilities such as water and heat laundry facilities, air condition, internet and telephone access and a car park and other necessary facilities, also comes with trash collection, pets are allowed as well as long as they are not destructive.

These 4 bedrooms and 2 baths home are very specious and neat.

Below is the rental property address:


2558 Simpson Avenue,Salt Lake City,UT 84109.

Pets allowed: Yes

Rent: $700

Deposit: $700

The rental fee is inclusive with utilities and my home available as at this moment.

PLEASE NOTE THAT YOU WILL ONLY BE ABLE TO DRIVE BY THE HOUSE BUT NOT HAVE A LOOK AT THE INTERIOR UNTIL WE HAVE SENT THE KEYS AND DOCUMENT OF THE HOUSE TO YOU.

5 Lies All Home Sellers Tell

Home sellers are solely their own kind of client. While my career in real estate brought me in contact with many home sellers who all had different expectations and varied reasons for selling their home, they all had one thing in common: They shared the same spiel. I'm not sure if they all read from the same "home seller handbook" or if there was a secret website that gave them a scripted dialogue, but if I heard these things once I heard them a thousand times. Before signing a listing agreement, there were five things almost every seller would say that they knew weren't necessarily true. Regardless, we savvy and experienced agents are on to these sellers. From my years of experience, I knew how to persuade a seller to tell the truth.


'My house is the best in the neighborhood'
Indeed, in their mind, it may be the best house in the neighborhood. The truth is that they haven't been in every house in the neighborhood, so there is no possible way that they know this. As attached to a home as a seller might be, it's been my professional experience that once you take them to see other properties in the area, they start seeing their home in an entirely new light. It's an eye-opening experience, and they realize there is stiff competition.

'I've done more improvements than any of the neighbors'
This tiny fabrication ties in to the seller professing that he has the "best" house in the neighborhood. Honestly, he doesn't know what the Joneses and the Smiths have done to their homes. The more homes that I took a seller to see in the general neighborhood, the less he said that his home was the most improved in the neighborhood. In fact, in many instances, sellers found their home right on par with improvements, if not under-improved. This not only brought down the seller's expectations for his property, it also usually got me the price reduction I needed.


'I won't take less than...'
Many sellers begin the process with a dollar amount that they want to make on their property. They are unwavering in the fact that they won't take less than "X" amount for their property. They have no problem vocalizing it loudly and often. For many sellers, however, I found this to be an all-out lie. The fact is that a seller will "take" a fair amount for his house, and that ultimately the amount he will "take" is in direct proportion to what a buyer will pay. Unfortunately, this usually isn't the highest-dollar amount that he wanted when starting the sales process.

'I'm not going to give my home away'
For many sellers "giving" their house away ties in to the "I won't take less than X" speech. Sellers believe anything less than what they "want" for the house is giving it away for next to nothing. As a real estate agent, I knew this was the time to hammer the seller with market data. After explaining the sales facts in their neighborhood, I could usually get sellers to see the light.

'I'll do whatever it takes to sell'
Admittedly, I was always suspicious of these folks. Sure, they say that they will do "whatever it takes," but they are not entirely prepared for the stress associated with selling a home. When meeting with these sellers, I would explain the factors that go into a successful sale. The "I'll do whatever it takes to sell" speech was usually quickly replaced with admissions of "I didn't know that."


This list is of the utmost importance for sellers to review, before putting their house on the market. I have seen many a seller lose many an excellent agent because he didn't do this homework before his listing appointment. If you want the best agent, as a seller, you have to know the ins and outs of being the best seller for that agent. One way to be the best seller on the block is to avoid these all-too-common lies that so many sellers so often tell.

Yahoo.com by Shauna Zamarripa