JUSTIN UDY

Warren Buffet AGAIN Says it is a Great Time to Buy

2012-02-29T14:16:00.000-07:00

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

2012-02-14T10:05:00.000-07:00

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

2012-01-27T12:54:00.000-07:00

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

2012-01-23T08:36:00.003-07:00

10 Surprising Reasons You Can’t Get a Home

2012-01-23T08:34:00.000-07:00

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!

2012-01-10T09:01:00.000-07:00

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

2012-01-04T09:59:00.000-07:00

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

2011-12-29T13:49:00.000-07:00

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

And the winner of the iPad is......

2011-12-20T14:58:00.000-07:00

Make sure to like us on FACEBOOK and check my website often for upcoming contest, Real Estate News, Investment Vidoes and Home Improvement Tips!

2011-12-13T09:31:00.000-07:00

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Justin's HGTV BANG FOR YOUR BUCK Episode is on again.

2011-12-06T09:35:00.000-07:00

WATCH THE HGTV Trailer.
Episode Airs again this
Saturday Dec. 10th at 1pm MST

Only 5 days left to ENTER to WIN an iPad!

2011-12-02T09:55:00.002-07:00

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

2011-11-30T09:17:00.000-07:00

#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

Nasa Videographer / Flickr
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

‎$52k New on Market!

2011-11-23T12:09:00.002-07:00

Justin Udy, Real Estate
‎$52k New on Market! This property is a dump and needs some LOVE. It has room to fix and sell for a profit or fix and rent for cashflow. Priced at $52k, After Repair Value is $100k. Let me know if you are interested! Thanks. http://justinudyrealestate.utahrealestate.com/1065232

I'm giving away a FREE iPad!

2011-11-23T12:05:00.002-07:00

Funny Family Photos Click for details on how to win!

The 8 Healthiest Housing Markets

2011-11-15T13:48:00.001-07:00

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

2011-11-08T13:41:00.001-07:00

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

Real Estate is the Best Long Term Investment

2011-11-07T09:12:00.003-07:00

2011-11-02T11:05:00.003-06:00

What’s First? The House or the Mortgage?

2011-10-24T09:19:00.000-06:00

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

2011-10-17T09:29:00.000-06:00

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

2011-10-11T10:47:00.000-06:00

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?

2011-10-11T10:43:00.000-06:00

by The KCM Crew on October 7, 2011

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

2011-09-27T11:22:00.000-06:00

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?

2011-09-22T12:00:00.000-06:00

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

2011-09-14T08:46:00.001-06:00

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

2011-08-30T09:43:00.001-06:00

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!

2011-08-23T10:23:00.000-06:00

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

2011-08-22T12:33:00.000-06:00

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!

2011-08-16T13:50:00.000-06:00

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!

2011-08-15T10:23:00.000-06:00

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

2011-08-08T14:27:00.000-06:00

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

2011-08-04T09:41:00.002-06:00

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

2011-08-04T09:04:00.002-06:00

Realtors Turn to QR Codes to Sell Homes

2011-07-26T13:44:00.000-06:00

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!

2011-07-21T14:09:00.002-06:00

Justin will be on HGTV Don't miss it!

2011-07-21T09:25:00.003-06:00

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.

GET READY FOR A SUCCESSFUL YARD SALE!

2011-07-11T13:45:00.000-06:00

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

2011-06-29T14:01:00.000-06:00

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

2011-06-23T14:24:00.000-06:00

For RENT- BEWARE of FRAUD

2011-06-20T17:35:00.000-06:00

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

2011-06-09T11:14:00.000-06:00

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

2011-05-25T13:22:00.002-06:00

Sometimes Additions Can Be Subtractions

2011-05-25T13:00:00.001-06:00

Not all remodeling projects add
value come selling time

The Salt Lake Tribune - Lesley Mitchell
Remodeling your home is kind of like buying a new car. Over time, it will be worth a lot less than you paid for it.

That sun room addition? Expect to recoup only about 40 percent of your investment — if you’re lucky. In fact, real estate agents say many home buyers don’t even like these costly additions. What about the time you remodeled and created a home office with all those built-in book shelves? For all your trouble, you would end up getting only about a third of that investment when it came time to sell.

Even among remodeling projects with the highest return on investment, you can expect to recoup only about 83 percent of what you spend on vinyl replacement siding in Salt Lake City, 74 percent on a minor kitchen remodel and about 70 percent on new windows, according to the annual Cost vs. Value report 2010-2011 by Remodeling magazine.

Perplexed? Real estate agents and others in the housing industry aren’t.

"A lot of homeowners are really surprised at how little they can get back on the money they spent on remodeling projects," said Kim Boekholder with Results Real Estate in Sandy. "It can create some hurt feelings when they want to sell and we have to break the news to them that although what they did is beautiful, buyers aren’t willing to pay extra for it."

One of the biggest mistakes homeowners make, Boekholder said, is making changes that don’t have broad appeal. You may like bright yellow walls, but some buyers don’t.

One of Boekholder’s recent listings was a home with purple carpet. Even though it was in great condition, "every single buyer commented on it," she said. "It was a huge negative and cost some offers." Another Realtor had to break the news to sellers who had remodeled their home with an outdoorsy flair that potential buyers were being turned off by wallpaper, bathroom tiles and kitchen back-splash tiles adorned with hunting scenes.

Another myth is that all remodeling projects are created equally — or that the biggest, most expensive projects have the biggest return on investment.

The report in Remodeling magazine, updated annually, shows that simply isn’t the case. Homeowners can expect to see an average return of 64 percent on the investment in a major kitchen remodel, 62 percent return on a two-story addition, 57 percent on a new master suite and only 44 percent on a bathroom addition.

Why such low returns? Many home-improvement projects appeal to only some buyers — some don’t want a fancy kitchen for example, or don’t like the cabinetry and decor that the seller selected. Buyers who have no intention of working at home will find little or no value in a home office addition, and many buyers prefer a deck to a sunroom.

How much a homeowner reaps from an investment varies, based on the overall condition of the property, the neighborhood and many other factors.

Not all projects are done with an eventual sale in mind. Terry Moore of West Valley knows that home values are down in her area, as well as along virtually the entire Wasatch Front. But after living in her home for two decades, she and her husband do not want to move away from neighbors and two adult children who live nearby, including one only five minutes away.

Two years ago, she had her kitchen remodeled and square footage added. Next up is replacing more windows and her home’s vinyl siding.

"We are doing these projects with the intention to stay," she said. "This is the house we’ll die in."

Although how much value any remodeling project will add is uncertain, one thing is for sure. It’s not always the priciest changes that benefit homeowners most when it comes time to sell. A new steel front door or new garage door aren’t the most expensive additions — but they can deliver big results. According to the report, homeowners could recoup 95 percent of the cost of a new steel entry door and 93 percent on a new garage door. Those aren’t the only practical home improvements that seem to score high — expect about 83 percent on vinyl siding and nearly 70 percent for new windows.

Real estate agents say the return on these types of projects is so high because they are maintenance items that are going to have to be done at some point. Buyers place a premium on properties that already have such projects completed.

Hidden Potential- Highest and Best Use

2011-05-18T13:30:00.002-06:00

Million Dollar Homes are Selling!

2011-05-03T08:48:00.000-06:00

SANDY -- The real estate industry has seen some rough times the last couple of years. Buying and selling has certainly been a challenge.

Just this week, we learned that Utah is 4th in the nation when it comes to the number of foreclosures. But there is a sector of the housing market that's still strong -- and the price tags are big.

"There is a segment of the market that hasn't been affected by the economy, and they are just taking advantage of the pricing right now," said Deanna Dipo, president of the Salt Lake Board of Realtors.

She's talking about big homes, custom-built with all the bells and whistles, sitting on a couple of acres: Million-dollar homes.

The highest priced home sold along the Wasatch Front in 2010 went for just over $6 million. In 2009, $3.5 million was the highest price.Believe it or not, homes in this price range are selling well in Utah, and have been for the last couple of years.

According to the Salt Lake Board of Realtors, 91 million-dollar-plus homes sold along the Wasatch Front last year, up 12 percent from 2009. So far this year, 15 have sold.

"The price per square foot has dropped," Dipo explained. "Our pricing has stabilized here in Utah, so the high-end properties are definitely of value."

That's encouraging for someone like Sandy resident Jesse Riddle.

"We built this home about 14 years ago as our dream home," he said. "We have a beautiful home, custom design."

But his four children are grown now, and the Riddles are ready to downsize. With their home, there's plenty to downsize from -- the pool, sport court and lighted football field notwithstanding.

The activity in high-end homes is not just a Wasatch Front phenomenon. Seven-figure priced homes are up 4 percent nationally as well, an indication that properties like Riddle's are somewhat insulated from the economic downtown.

"I just think there are a lot of people in a position financially that are really taking advantage of our market, just buying properties that they couldn't have otherwise in the past," Dipo said.

By Keith McCord - KLS News

Gophers... don't let them ruin your property

2011-04-28T08:18:00.002-06:00

NEW — March Home Sales Down From Last Year, Up From March 2009

2011-04-26T08:53:00.000-06:00

Sales of existing homes in Salt Lake County in March totaled 940 units (all housing types), down 8 percent compared to 1,020 units sold in March 2010, but up 25 percent compared to sales in March 2009, according to the Salt Lake Board of REALTORS®.

Home sales in March were up 44 percent compared to February 2010 (non-seasonally adjusted).

“Home sales are down compared to last year at this time because of the federal home buyer tax credit,” said DeAnna Dipo, president of the Salt Lake Board of REALTORS®. “However, home sales in March of this year are up 25 percent compared to March 2009, when the recession was in full force.”

The median home price in March was $185,250, down 7 percent compared to a median price of $200,000 in March 2010, but up 3 percent compared to February’s median price of $179,990.

Based on sales trends over the past 12 months, Salt Lake County has a nine-month supply of housing inventory. There are 6,520 active listings of homes for sale in Salt Lake County.

Cash-Wielding Investors Snap Up Resold Homes

2011-04-25T09:00:00.000-06:00

Investors lifted U.S. home sales last month, plunking down cash to grab cheap homes at risk of foreclosure. But purchases made by first-time homebuyers fell, a troubling sign for the weak housing market. Sales of previously occupied homes rose in March to a seasonally adjusted annual rate of 5.1 million, the National Association of Realtors said Wednesday. That’s a 3.7 percent increase from the February pace, but far below the 6 million homes a year that economists say represents a healthy market.

Foreclosures or short sales — when the lender agrees to accept less than what is owed on the mortgage — rose to make up 40 percent of all purchases. And deals paid for entirely in cash accounted for 35 percent of all resold homes. The Realtors group says that’s the biggest percentage since it has been tracking all-cash sales. Many of those purchases are being made by investors, who are targeting cheap properties in areas hit hardest by foreclosures. The trade group’s data takes into account only individual investors. It does not include homes sold in bulk at auction or on courthouse steps. Many of the foreclosure sales probably are being picked up en masse by private equity firms.

Another sign of investor activity is that sales of homes priced under $100,000 have risen 10 percent from a year ago. In that same period, sales of mid-priced homes, from $100,000 to $500,000, have fallen more than 14 percent. Fewer first-time homebuyers are entering the market. Sales among these buyers, who typically set down roots and raise families, fell to 33 percent in March. The trade group and economists say a healthier makeup is40 percent.

The median sales price rose slightly in March, to $159,600, but it is still down 5.9 percent from a year ago. Foreclosures are dragging down home prices. A record 1 million homes were lost to foreclosure last year and foreclosure tracker RealtyTrac Inc. said it expects 1.2 million more will be lost this year. Homes at risk of foreclosure usually sell at 20 percent discounts.

Joshua Shapiro, chief U.S. economist with MFR Inc., said that “part of the market-clearing process is that distressed properties must be sold, so the fact that this is occurring is good.”

Many would-be buyers are holding off, worried that home prices haven’t bottomed out. Others are having trouble getting mortgages because banks have tightened lending requirements. The average credit score for Freddie Mac and Fannie Mae-backed mortgages is 760, up from 720 in 2007. A major obstacle to a housing recovery is the glut of unsold homes. There were 3.55 million unsold homes on the market in March. It would take 8.4 months to clear them at today’s sales pace. Analysts say a healthy supply can be cleared in six months.

The situation is much worse when taking into account the “shadow inventory” of homes, economists say. These are homes that are in the early stages of the foreclosure process but have not been put on the market yet for resale.“It is unlikely that home prices can recover on a sustained basis until the inventory-to-sales balance improves further and the number of distressed properties is significantly reduced,” said Steven A. Wood, chief economist at Insight Economics

Salt Lake Tribune

Deal of The Day!

2011-04-22T08:49:00.000-06:00

Be Smart Before Taking Flight From Your Mortgage

2011-04-19T08:57:00.001-06:00

I just want out... what are my options...

Short Sale
In this process the borrower asks the lender for permission to sell the house for less than what is owed on the mortgage. For example, the market value of a property is $250,000, but $300,000 is owed and the lender is asked to take a $50,000 hit. short Sales hurt credit scores, but not as much as a foreclosure.
Foreclosure
Walking away from your property letting a lender foreclose has the greatest effect on your credit, remaining on your report as a negative item for 7 years.

More than three years after Utah's real estate bubble popped, tens of thousands of homeowners have some tough decisions to make. Am estimated 8 percent of Utah households with a mortgage are behind on their payments. About one in five homeowners in Salt Lake City are "under water" meaning they owe more than their homes are worth. another 6% are close to that point according to housing data from Corelogic.

Should they try to get their lender to modify their mortgage? Should they hold on and wait for better times? Is trying to get a lender to agree to short sale a better option? Or should they just give up and walk away?

Each situation is different of course, but the solutions are often universally complicated and can be painful. "A lot of people believe, or hope there's a government program that can fix everything for them," said Ryan Carver, director of housing counseling of AAA Fair Credit Foundation "But there just isn't one."

I am in mortgage trouble, but want to keep my home - so what now? Here is what to do if you are having trouble making your mortgage payment and can't sell your house because yu owe more than it's worth:

Start with your lender or HUD approved counselor- call 211 to find a counselor in yuor area.
Your lender's offer is likely to dissapoint- the lender will do what is best for them.
You must prove hardship in order to get help
Be persistent, and keep track of your conversations.
Help is not guaranteed- Your lender doesn't ahve to help you.
You may want to change your spending habits - the bank will see what you spend your money on.
think twice before you stop making your mortgage payment - you may think that is the only way toget help, this really may not be the best decsion
Denied modification? Try, try again.

For more of this article please go to: http://www.sltrib.com/sltrib/money/51583950-79/mortgage-loan-lender-payments.html.csp

Salt Lake Tribune - Lesley Mitchell

Property Alert - Deal of the Day

2011-04-12T10:03:00.001-06:00

This week I posted a property on our 'Deal of the Day' on my website/blog. It was a property for $265k in the Avenues. Well, one of my clients called after seeing it, we looked at it (I also brought a contractor to give us estimates on fix up), and we made an offer. It truly must have been a deal! After we made the offer I begged the agent to present it before other offers rolled in. By the time we were supposed to get a response, he already had 3. By the end of the next day there were 6 offers total, 2 were cash and the final counter offer my client received was for $308,350! We did not accept it.

This is really exciting to see how many people that are looking at properties on the market that are a good deal and making offers. As many know, there is roughly a 9 month inventory of properties along the Wasatch Front. Many sellers feel like buyers are on the fence and not pulling the trigger. I am seeing different. If the property is priced right, has value, and is marketed correctly I am seeing homes go same day! This property was a perfect example of that.

click here to see the property I am talking about.
http://www.screencast.com/users/Justinudy/folders/Jing/media/34d6b404-b113-43bc-8036-8a1aa04b03c9

How Are We Seeing Properties?

2011-04-06T10:23:00.000-06:00

How are we seeing properties? Check out how a few quick alterations can change your persepective on a home. From no appeal to Curb appeal. I always trust one guy to help our properties go from ordinary to extraordinary- Kendal Wardle (Builder)- Thanks my friend!

Property Alert! Deal of the Day

2011-04-05T10:30:00.002-06:00

Please click on this link for Justin's Deal of the Day Webcast
http://www.screencast.com/users/Justinudy/folders/Jing/media/34d6b404-b113-43bc-8036-8a1aa04b03c9

Utah Law Gives Owners Some Protection in Forclosure

2011-04-04T14:59:00.001-06:00

Gov. Gary Herbert has signed into law the only bill to emerge from the Legislature that attempts to deal with the thousands of home foreclosures expected in Utah this year.

One in every 273 homes in Utah had a foreclosure filling in February, the fourth highest in the nation, according to RealtyTrac, a California company that collects Real Estate data. It said that 3,488 properties had some kind of foreclosure notice filled last month.

SB261 allows homeowners who were illegally foreclosed on to seek damages. It also requires that homeowners be given written notification that a foreclosure sale is proceeding despite any reduced payment agreement and are liable for damages if they do not.

The Legislation was pushed by the Utah Attorney Generals office, which is in a legal fight with ReconTrust, the foreclosure arm of Bank of America that had thousands of foreclosures pending in Utah at the end of 2010. The G.A's office filed a brief recently in a foreclosure case pending before the 10th circuit court of appeals in which it argued that ReconTrust could not legally foreclose on properties in Utah.

The new law allows some homeowners to try and recover attorney fees and damages of at least $2,000 for illegal foreclosures or failure to properly notify homeowners of a sale.

"These are important steps but they're small; steps in attacking what we perceive to be the problems that are being caused by out-of-state foreclosing companies that are not following Utah laws and not providing notice of what their intentions are" said John Swallow, chief deputy in the Attorney Generals Office.

Marco Fields, founder of Teems Utah, a group that advocates for homeowners facing foreclosure, said that although the legislation does provide for financial penalties for banks and others who conduct foreclosures illegally, last minute changes blunted it's effectiveness.

"The unfortunate compromise is that bill created a scenario that while there is a penalty imposed on illegal behavior, it does not invalidate the sale of the home", Fields said.

"We have to go back to the stakeholders , the title companies in particular and find a different solution. If the foreclosure sale was illegally done not only should there be a penalty but the foreclosure sale should have been be invalid. If it's an illegal foreclosure, it's an illegal foreclosure."

But Swallows said the bill included monetary penalties because title companies were concerned that anything more could cloud titles and endanger insurance on subsequent transactions.

Fields is among homeowner advocates, mediators, attorneys and others who are forming a coalition with which they hope to formulate new legislation that could be considered at a special session of the Utah Legislature.

Salt lake Tribune
Tom Harvey

This Just In

2011-04-01T14:54:00.002-06:00

Energy Tax Credits

2011-03-31T09:32:00.000-06:00

Homeowners may qualify for a federal tax credit for making improvements or installing appliances designed to boost the energy-efficiency of a home. Basic Requirements: You purchase and install qualifying energy-efficient in your main home in the years 2006,2007,2009, 2010, or 2011. You must purchase new energy - efficient equipment, and the equipment must be expected to remain installed for at least five years. Examples of home improvements that could qualify as tax credits:

Exterior doors and windows

Storm windows

Skylights

Metal roofs

Insulation

Central air conditioning and heating

Geothermal heat pumps

Hot water boilers

Advanced main air circulation fans

Biomass fuel stoves with thermal efficiency of 75% or more

Water heaters

Kitchen appliances

Washer and dryers

Asphalt roofs with cooling granules

Small wind turbines

Solar panels

For a complete list of qualifying improvements go to www.energystar.gov

You can receive up to 30% of the purchase price for energy efficient products. Take advantage of the rebates out there!

Market Update

2011-03-22T11:48:00.000-06:00

KSTU-FOX news reported on March 1, that home sales in Salt Lake County were up by 7% compared to January last year.

January's sales were significant because this year there was no $8,000 federal home buyer tax credit.

St. Patricks Day

2011-03-17T14:36:00.000-06:00

St. Patrick's Day Facts

St. Patricks Day first came to America in 1737. The very first St. Patrick's Day parade was not in Ireland. It was in Boston in 1737.
In Chicago, on St. Patrick's day the rivers are dyed green.
Nine of the people who signed the Declaration Of Independence were of Irish origin, and nineteen Presidents of the United States proudly claim, Irish heritage---including our first president, George Washington.
In Seattle, there is a ceremony where a green stripe is painted down the roads.
Most people attend mass in the morning and then attend the St. Patrick's day parade.
Shamrocks are worn on the lapel.
Young boys and girls wear shamrocks and harp badges.
The phrase "Drowning The Shamrock" is from the custom of floating the shamrock on the top of whiskey before drinking it. the Irish believe that if you keep the custom, then you will have a prosperous year.
Many people dye their hair green for the special day.
Stay lcuky by waering a 4 leaf clover, wearing green, kissing a barley stone, or finding a lephrecaun.
According the the Guiness Book of World records, the most leaves found on clover was 14.
The work lephrecan means "shoemaker"
St. Patrick himself was bord in 385 AD.
St. Patrick is credited for the leap year tradition of women proposing to men.

I look forward to the Good Luck this St. Patricks day will being this year. I am already seeing a lot of movement and activity in the Market around me. with the economic outlook we recieved earlier this year, I beleive it! Watch this vidoe from the Board of Realtors.

www.slrealtors.com/flash/index.php?m=marketedge

Gas Prices - Biggest Hike in 2 Years. No End in Sight.

2011-03-07T13:23:00.000-07:00

Utahns who enjoyed the lowest gasoline prices in the country in January are now paying more than many other states and will see prices continue to rise. Rolayne Fairclough of AAA Utah says Utah drivers as of Tuesday were paying $3.15 per gallon, up $.33 cents from a month ago, It's the highest jump in two years. Fairclough says gasoline prices in the state typically begin to rise in March as the seasons change. Prices typically peak during the summer.

Though Utah's supplies come from Canada and western states, she said international crude oil prices still affect local rates. As of Tuesday, Fairclough says 24 states had lower prices than Utah - a sharp contrast from January when the states average was $2.80 per gallon.

In California many stations are reporting gas prices hoovering $4.00 per gallon.

Many Utah drivers say they are starting to alter how much they drive and how much they spend. Economic experts are worried that cutbacks on consumer spending Will hurt what was already a slow economic recovery.

Salt Lake Tribune Randall Jeppesen

Market Update

2011-03-02T10:42:00.000-07:00

In bust's aftermath.... $200,000 is a home sweet home

At the height of the Wastch Front's real estate market, finding a home in great condition for around $200,000 wan't all that easy. In fact, depending on the neighborhood, it could be difficult - even possible.

But after three years of post-bubble price declines, something in that price range in move-in condition is vastly easier to come by.

Today, the median sellign price in Salt Lake City is around $200,000, meaning half the homes sell for more, half or less. And as Salt Lake Board of Realtors President DeAnna Dipo demonstrated on a recent tour of homes for sale, you can get a nice hosue and neighborhood for that amount of money.

Desitnation Sugar House > At the market's zenith. those who wanted to buy in popular areas such as Sugar House in Salt Lake City faced slim pickings in the low $200,000 range. The patch of neighborhoods, roughly bordered by 900 East and 1700 East, 1700 South and 2700 South, has always been sought after, with homes typically selling at a premium.

Dipo remembers well the frustration of buyers in 2006 and 2007. "It was hard to find anythign nice, updated and clean in sugar house even for $285,000," she said.

But on a recent weekday, Dipo showed a home around 900 East and 2700 S that was all that- in fact the interior looked much liek a model home. It was bright, airy, clean and tidy, and the asking price was $219,000.

Before the downturn, "this could have sold for as much as $300,000," Dipo said. Although the homes was bult in 1915, it's been remodeled and updated, with features such as granite countertops. It has 2160 sqaure feet, a large lot, a two car detached garage, an outdoor patio with fireplace and a seperate mother-in-law apartment with small kitchen.

Even though it's in great condition, Dipo said the homes seller probably will still have to come down on the price a little, probably to about $200,000 bacuase of it's location on a busier street. Many potential buyers are fearful prices will continue to deteriorate and are trying to get the best deal possible to hedge against further declines.

Resistance is futile > Despite the realities, Dipo said, there are soem sellers still trying to find someone willing to pay what their home might have been worth a year ago or even three. that's why she can't help swinging by a Sandy home that has languished on the market at $300,000.

"They'll never get that much," she said during a walk-through. In fact, she believes the home sill end up selling in the low to mid $200,000's.

There's nothing wrong with the property, she explained. It has a nice roomy backyard with a deck, waterfall and gazebo. But it's just priced much too high, especially for its average interior condition and ameneties, she said. there are too many other competing properties with similar ameneties that are in top condition and priced more realistically.

"It needs to be cleaned up and they need to drop the price. It's a price war and a bauty contest right now, and if you want to sell, you have to be priced right and look good."

Salt Lake Tribune by Lesley Mitchell

Benefits of Home Ownership

2011-02-22T10:57:00.000-07:00

Being a home owner is more than just having a roof over your head. Home ownership instills feelings of comfort, security, stability and pride. In addition there are substantial social benefits for families, communities and the country as a whole.

1. Higher Academic Achievement
One of the most important social benefits of home ownership is how it affects children and their academic achievement. Howe owners tend to be more involved in their children's lives and schooling, and homeowners also tend to move less than renters, this adds stability in a child success in school.

Homeowners are:

Reading is up 7%
Math Scores are up 9%
High School graduation is up 25%
College graduation is up %116

2. More Cohesive Communities

Home owners tend to stay in their homes longer than renters. They also spend more money to improve their home and are more engaged in enhancing their community. Simply put, home owners care more and take more action. Which leads to nicer neighborhoods, stronger communities and more overall involvement in civic duties.

Homeowners are:

28 % more likely to repair or improve their home
28 % more likely to vote
11 % more likely to know who represents them in congress
12 % more likely ti maintain a garden outside their home
10 % more likely to report they have worked to solve local problems
Live 4 times longer in a community
9 % more likely ti know who their school-board representative is

3. Better Connected Families

Along with being more involved in their communities, home owners are more active and connected to their own families.

Home Owners are:

Less likely to have alcohol and substance abuse problems
16 % more likely to belong to parent-teacher organizations, book clubs, etc.
1.3 times more likely to read newspapers
10 % more likely to attend church
59 % more likely to own a home within 10 years of moving from parents household

4. Improved Health and Safety

Home owners are happier and healthier than non-owners. In fact, one study found that people who recently became home owners reported higher life satisfaction, higher self esteem and higher perceived control over their lives. Home owners also enjoy better physical and psychological health.

Home owners are:

Children of home owners are 20 % less likely to become teenage mothers
Proven to reduce Crime

5. Stronger Economy

Being a home owner also has a positive economic impact in your neighborhood, your town, your city and even on a national level. That is because it creates jobs. Each home purchase generates as much as $60,000 of economic activity in the local and surrounding area.

A home owners net worth is 45.9 times that of a renters.

Market Update

2011-02-14T11:27:00.000-07:00

Taylorsville/Kearns Top Area for Wasatch Front Home Sales

SALT LAKE CITY- A new report released Wednesday showed more people purchased homes in the Taylorsville/Kearns area during the fourth quarter of 2010 than any other city along the Wasatch Front.

Data from the Salt Lake Board of Realtors indicated that there were 151 existing single-family homes sold in zip code 84118. More affordable home prices were a driving factor the report stated, with the median price of a home in Taylorsville/Kearns at $138,000 compared to the Wasatch Front's median home price of $199,900.

Of the top 10 areas for home sales, only one had a median price above $300,000 - Zip code 84020 in Draper at $349,000, which ranked sixth in sales for the period.

Half of the top 10 cities ranked had sales prices above the Wasatch Front median fourth quarter sales price, the report stated. Single-Family home prices along the Wasatch Front have fallen 16 percent from their high point in the summer of 2007, said DeAnna Dipo, president of the Salt Lake Board of Realtors.

More than 4,000 homes were sold along the Wasatch Front during the last three months of 2010.

Top 10 Cities for home sales in fourth quarter of 2010 - with median sales price:

Taylorsville/Kearns (84118) 151 sales - $138,000.
Lehi (84043) 144 sales - $210,000.
Farr West (84404) 128 sales - $133,225.
South Jordan (84095) 127 sales - $272,000.
Clearfield (84015) 117 sales - $160,000.
Draper (84020) 111 sales - $349,000.
Tooele (84074) 104 sales - $160,450.
Riverton (84065) 100 sales - $259,950.
Herriman (84096) 93 sales - $295,000.
Roy (84067) 90 sales - $ 145,655.

Article from the Deseret News

1st Quarter Newsletter.

2011-02-08T09:04:00.000-07:00

Click for a larger image.

Ten Secrets To Wealth And Life

2011-01-31T10:01:00.000-07:00

Reinvest Your Profits: "Even a small sum can turn into great wealth," Schroeder writes, "If you're disciplined to not touch your profits." Let the power of compounded interest work for you.
Be Willing To Be Different: Don't follow the herd. Do what is best for you and your situation.
Never Suck Your Thumb: Ah, how I could learn from this one. Buffett makes decisions quickly based on the available information. I tend to sit and stew about things. Acting decisively can give you an advantage and prevent procrastination.
Spell Out The Deal Before You Start: I stress this all the time: Don't sign a contract unless you've read it (especially not a mortgage). Read the fine print. Understand what you're getting yourself into.
Watch Small Expenses: While it is true that the big things matter, the little things do too. Frugality is an important part of personal finance. But this principle also applies when investing, which is one reason I'm not a fan of low-cost index funds.
Limit What You Borrow: "Living on credit cards and loans won't make you you rich" writes Schroeder. Sure, leverage can get you into a home or a new car, but too much debt is one of the biggest drags on on your financial well-being.
Be Persistent: If you know what you're doing is important and right, stick to it. Doggedly pursue your goals. Learn to "fail forward."
Know When to Quit: The other day, I wrote about the danger of sunk cost fallacy. Just because you've already paid $10 to see Indiana Jones and the Kingdom of the Crystal skull, doesn't mean you should sit through to the end. Be willing to cut your losses and walk away.
Assess the Risks: "Asking yourself 'and then what?' can help you see all of the possible consequences when your struggling to make a decision - and can guide you to the smartest choice."
Know What Success Really Means: Success is different for each of us. Find what it is that brings meaning in your life, what makes each day important. Make this your focus. Buffett says "When you get my age, you'll measure your success in life by how many of the people you want to have love you actually do love you. That's the ultimate test of how you've lived your life."

- Warren Buffett September 8, 2008

10 Commandments For Owning Rental Property

2011-01-24T08:37:00.000-07:00

Choose your own charities; don't let renter's make themselves your charities. There are no acceptable excuses for late rent. Require your renter's to pay rent on your schedule, not theirs.
Always get cash, or equivalents, such as money orders or credit cards.
Always check credit references. Don't act desperate. Having no tenants is better than having a bad tenant.
Be aware of who actually lives in and who comes and goes from your property. Don't allow individuals you do not approve as renters to live in your property, conduct shady activity, or alienate your other renters or neighbors.
Deny applicants for legitimate risk factors. Including credit, income, pets, criminal, rental history, employment, maximum occupancy. Don't insist that your tenants follow your lifestyle or family rules.
Begin evictions IMMEDIATELY if necessary. the only thing worse than a tenant who doesn't pay and moves is a tenant who doesn't pay and stays.
A clean and attractive rental helps attract better tenants. Most important are the entry, curb appeal, the smell, kitchens and bathrooms.
The best way to to avoid evicting a bad tenant id not to rent to that person in the first place. Remember that 90% of a landlords' problem is self inflicted.
Never buy rental property more than an hour away from your your home or in an area where you would be afraid to go and collect rents.
Get everything in writing. Don't trust your memory. No one else will.

From the Utah Apartment Association - Good Landlord program

Quick Facts

2011-01-19T08:39:00.000-07:00

Facts from the latest 2010 survey of buyers and sellers from the National Association of Realtors.

What Sells?

The typical home purchased was 1,780 sq. ft., was built in 1990, and had 3 bedrooms, 2 bathrooms.

Appealing To Buyers

44% of sellers offered incentives, like home warranties and help with closing costs, to attract buyers.

The Price Is Right

Recent sellers typically sold their homes for 96% of the listing price; 57% reduced the asking price at least once.

Gender Gap

There are more single female buyers than single males. But single male buyers grew by 2% between 2009-2010, and single female buyers dropped by 1%.

Cost of Living

The median price buyers paid for homes was $179,000.

Why Does Home Ownership Matter?

Historically, home owners' net worth has ranged from 31-46 times that of renters.
A fixed-rate mortgage might not change for 15-30 years; rent typically increases 3% per year.
Every home purchased pumps $60,000 into the economy.

9 Ways Utah Will Have a Better Year in 2011

2011-01-11T08:48:00.001-07:00

A Better year in 2011

Utah's unemployment rate will drop from 7.6% in 2010 to 7.1% in 2011.
New residential construction will register again for the first time since 2005.
Home builders' unsold inventory is at a very low level, improving prospects for upturn in residential construction.
Total wages paid will increase by 4%, adding nearly a billion dollars in wages to the Utah economy.
Net in-migration continues. In 2011 the state is expected to have net in-migration of 10,000.
Retail sales improve. In 2011 sales are expected to be up 3.9% and increase nearly $1 billion in sales.
Auto and truck sales will help boost retail sales in 2011. the number of new vehicle sales is expected to grow from 70,000 to 80,000 units in 2011, an increase of 14%.
Tax revenues for state and local governments improve in FY 2011. State tax revenues are up 9.6% through the first four months of FY 2011.
Utah exports will grow to $13.5 billion in 2011, up 7.3%.

Jim Woods forecast/Salt Lake Board of Realtors

Tax Tips - Home Ownership

2011-01-04T09:21:00.000-07:00

Buying a home is a great way to reduce your income tax. The qualified mortgage interest you pay and your real estate taxes are both tax deductible.

Claim the Mortgage Interest Tax Deduction
Mortgage interest you pay on loans up to $1 million ($500,000 Married Filling Separately) is tax deductible, provided you use the money to buy, build or improve your home and the loan is secured by your home.

Plus, interest you pay on loans secured by your home and used for a purpose other than to buy, build or improve your home is tax deductible for loans up to $100,000 ($50,000 Married Filling Separately). The limit may be reduced depending on the market value of the home at the time you take out the loan. Use equity lines of credit wisely. If you fail to make the payment, you put your home at risk.

If your income meets the requirements and your state and local government issues you a mortgage certificate credit, you may be eligible to claim a tax credit (the mortgage interest tax credit) based on the amount of interest you paid. If you claim the tax credit, you must reduce your interest deduction by the amount of the credit.

Deduct Loan Origination Fees
Finally, don't forget about points, also called loan originating fees. One point equals 1% of your loan. Points you pay (and even points the seller pays) when you purchase your home are generally tax deductible in full the year you pay them.

Alternatively, you may choose to amortize the points over the term of your mortgage. This choice is usually made only when you itemized deductions are less than the standard deduction for the year you bought the home.

Points paid to refinance your loan must be deducted over the term of the loan. If you deduct points over the term of the loan and sell the home or refinance it gain before the loan expires, you can deduct in the year of the sale or refinancing any points that you didn't previously deduct.

Mortgage Insurance Premiums
If you took out a first mortgage in 2007, 2008 or 2009, you may be able to deduct qualified mortgage insurance premiums you pay in connection with the loan. Qualified mortgage insurance is a mortgage insurance provided by the Veterans Administration, and Federal Housing Administration, or the Rural Housing Administration, and private mortgage insurance (as defined in section 2 of the Home Protection Act of 1998 as in effect Dec. 20, 2006). Prepaid mortgage insurance premiums generally must be deducted over the period to which they apply.

Gain On The Sale Of Your Home
When you sell your home, the IRS allows you to exclude gain on the sale from taxable income, up to $250,000 ($500,000 Married Filling Jointly and you both meet the use requirement.)

You can claim the exclusion if you own and use the home as your main home for the last 2 years during the 5-year period ending on the date of the sale. You may claim this exclusion only once in any 2-year period.

If you don't meet the 2-year requirement, you may be eligible to claim a reduced exclusion if you sell your home because of "unforeseen circumstances", such as a change in employment or a divorce. A loss on the sale of your home, however, isn't tax deductible.

If you used the home other than as your residence after 2008 (for example, as rental property), gain allocable to that use (nonqualified use) generally can't be excluded. The rule does not apply to:
Any nonqualified use before 2009
Any Period during the 5 year period that is after the last period of use as a principal residence.
A period of temporary absence of up to 2 years for reasons of health, employment and unforeseen circumstances.
Any period (not to exceed 10 years) during which the tax payer or spouse was serving on qualified official extended duty.

9 Unexpected Energy (and Money) Savers

2010-12-27T11:09:00.000-07:00

Here are a few surprising and simple ways to cut your energy bill this season.

Put Lamps in The Corners:
Did you know you can switch to a lower wattage bulb in a lamp or lower it's dimmer switch and not loose a noticeable amount of light? It's all about placement. When a lamp is placed in a corner, the light reflects off the adjoining walls, which makes the room lighter and brighter.

Switch to a laptop:
If you're reading this article on a laptop, you're using a 1/3 less energy than if you're reading this on a desktop computer.

Choose an LCD TV:
If you're among those considering a flat-screen upgrade from your old TV, choose an LCD screen for the biggest energy save.

Give Your Water Heater a Blanket:
Just like you pile on extra layers in the winter, your hot water heater can use some extra insulation too. A Fiberglas insulation blanket is a simple addition that can cut heat loss and save 4% to 9% on the average water-heating bill.

Turn Off The Burner Before You're Done Cooking:
When you turn off an electric burner, it doesn't cool off immediately. Use that to your advantage by turning it off early and using residual heat to finish up cooking.

Add Motion Sensor:
You might be diligent about shutting off unnecessary lights, but your kids? Not so much. Adding motion sensors to playrooms and bedrooms only costs $15 to $50 per light, and ensures you don't pay for energy you're not using.

Spin Laundry Faster:
The faster your washing machine can spin excess water out of your laundry, the less you'll need to use your dryer. Many newer washers spin clothes so effectively, they cut drying time and energy consumption in half- which results in an equal drop in your dryer's energy bill.

Use an Ice Tray:
Stop using your automatic ice maker. It increases your fridge's consumption by 14% to 20% . Ice trays, on other hand, don't increase your energy costs one iota.

Use The Dishwasher:
If you think doing your dishes by hand is greener than powering up the dishwasher, you're wrong. Dishwashers use about 1/3 as much hot water and relieve that much strain from your energy- taxing water heater. Added bonus: you don't have to wash any dishes.

copyright National Association of Realtors 2010

Will We Remember the Effects of the Recession?

2010-12-20T10:44:00.000-07:00

Is the end of the economic recession in Utah just down the road? Here are some positive "green shoots" that suggest we may be bouncing off the bottom.

Forbes Magazine, in an October article titled "The Best States For Business and Careers" , reported, :"Who's doing the best job when it comes to fostering growth?" Utah, according to our fifth-annual look at the Best States for Business. the Beehive State captured the top spot in our rankings for the first time. Utah's economy has expanded 3.5% annually over the past five years, faster than any other state except North Dakota. this is three-and-half times faster than the U.S as a whole. Total employment in the U.S has shrunk over the past five years, but in Utah it increased 1.5% annually (fourth-best in the nation.) Household incomes have surged 5% annually, which is tops in the country and twice as fast as the national average.

The November 15 issue of Newsweek had a piece headlined, "How Utah Became the New Economic Zion," in which the reporter wrote, "it set its own records for new companies (more than 40) and capital investment (nearly $2 billion)." The article provided these specifics: "Greater Salt Lake City...has absorbed massive new data centers for eBay, Twitter, and Oracle; splashy new offices for Disney Interactive and EA sports; and just last month, a commitment from Adobe... to build a 1,000 person software-development campus, where the minimum average salary will be $60,000.

At the end of September, the U.S. Army Corps of Engineers announced a contract award for a National Security Agency Building at Camp Williams that will cost approximately $1.5 billion, have one million square feet and will employ 7,000 people during it's construction. It will also create several hundred permanent jobs. The winning bidder was Big-D Construction of Salt Lake City, who will have two other partners on the project from California and Texas.

The National Bureau of Economics Research declared that the Great Recession, which started in December 2007, ended in June of 2009. This may be technically correct, but some economists believe that it will be a long, slow recovery and it will be difficult to have sustained economic growth when so many people are out of work. However, history has shown that the economy is cyclical and eventually conditions will improve. Hopefully Utah is at the beginning of a recovery.

When times get better will we return to traditional spending and borrowing patterns? Will we have learned from our current experiences? My hope is we will continue our thrifty behaviors of saving, paying down debt, and not purchasing things we don't need and can't afford. I hope these lessons will be ingrained in our children and grandchildren.

Article by Rick Craig, President of America First Credit Union

Make Your Home FHA Friendly

2010-12-14T08:40:00.000-07:00

Know the basics for FHA loan rules and you stand a better chance of selling your home.

Make your house FHA-Friendly, and it will appeal to more home buyers. Why? Because the Federal Housing Administration is insuring the mortgage loans used by 30% of today's' home buyers. If your house passes the FHA rules, it will appeal to buyers who plan to use an FHA-insured mortgage. If your house doesn't qualify for an FHA loan, you're cutting out 30% of potential buyers. FHA is especially important for first time home buyers and those with small down payments because it allows borrowers with good credit to make down payments as low as 3.5% of the purchase price.

Here is how to make your home appealing to FHA borrowers:

Know The FHA Limits in Your Area
Start by checking to see if your homes list price falls within the FHA lending limits for your area (www.fha.com/lending_limits_state.cfm?state=utah) FHA Mortgage limits vary alot.

Home Inspections
Most buyers will ask for a home inspection, whether or not they're using an FHA loan to buy a home. You must give FHA buyers a form explaining what home inspections can reveal, and how inspections differ from appraisals.

How Much Do You Have To Repair?
If their inspection reveals problems, FHA will not give the okay to buy the home until you repair serious defects like roof leaks, mold, structural damage, and pre-1978 interior or exterior paint that could contain lead.

Dealing With FHA Appraisals
Help the lender's appraiser by providing easy access to attics and crawl spaces, which usually must be photographed.

Your buyer can hire their own appraiser to evaluate your home. But FHA only relies on reports by it's approved appraisers. If the two appraisals conflict, the FHA appraisal preempts the buyers appraisal.

Help With FHA Closing Costs
Most FHA buyers need help with closing costs. so a prime way to make your home FHA-Friendly is to help with those costs.

FHA currently allows sellers to pay up to 6% of the sales price to help cover closing costs, but is considering lowering that limit to 3%.

If You're Selling A Condo
FHA also has to approve your condo before a buyers uses and FHA loan to purchase your unit. Be sure your condo is FHA-approved for mortgages the lists has been updated, so if your association was approved a year ago, check again to make sure it's still n the approved list. (https://entp.hud.gov/idapp/html/condlook.cfm)

FHA generally won't insure loans in condo associations if more than 15% of the unit owners are late on association fees. Ask your property manager or board of directors for your associations delinquency rate.

Other rules cover insurance, cash reserves and how many units are owned-occupied and the types of condos that can be purchased with an FHA mortgage.

FHA sometimes issues waivers for healthy condominiums that don't' meet regular rules. If your condo isn't FHA-approved, it doesn't necessarily have to meet every single rule to gain approval. Ask your REALTOR to consult with local lenders about getting an FHA waiver for your condo if it doesn't meet all the requirements.

FHA also limits its mortgage exposure in homeowners associations. With some limited exceptions, no more than 50% of the units in an association can be FHA-insured.

FHA Loans For Planned Unit Developments
FHA no longer requires lenders t review budgets and legal documents for planned-unit-developments.

Houselogic.com by Terry Sheridan

6 Tips for Buying a Home in a Short Sale

2010-12-08T11:11:00.000-07:00

When Sellers need to sell their home for less than they owe on their mortgage they're shooting for a short Sale. Short Sale homes can sometimes be bargains, but only if you do your homework, stay patient, and remain unemotional during the sometimes lengthy and difficult short sale process.

Here are 6 steps for protecting yourself emotionally and financially when bidding on a short sale.

1. Get Help From a Short Sale Expert.
A real estate agent experienced in short sales can identify which homes are being offered as a short sale, help you determine a purchase price, and advise you on what to include in your offer to make the lender view it favorably. Ask your agents how many buyers they've prospected in a short sale and of those, how many successfully closed the transaction.

2. Build a Team
Ask agents to recommend a real estate attorneys knowledgeable in short sales and title experts. A title officer can do a little title research to identify all the liens attached to a property you're interested in. Because each lien holder must consent to a short sale, a property with multiple liens, like first and second mortgages, mechanics and condominium liens, or homeowners association liens, will be harder to purchase.

A title search may cost up to $250 to $300 up front, but it can help weed out less desirable properties requiring multiple approvals.

3. Know the Home's Market Value
By agreeing to a short sale, lenders are consenting to lose money on the loan they made to the sellers to purchase the home. Their goal is to keep those losses as low as possible. If your offer is dramatically less than the home's fair market value, it may be rejected. Your agent can help you identify the price that's good for you. the lender will determine whether to approval is in it's best interest.

4. Expect Delays
There are two stages to a short sale. First, the sellers must consent to your purchase offer. Then they must submit the offer to their lender, along with documentation to convince the lender to agree to a short sale.

The lender approval process can take a few weeks or months, even longer if the lender counteroffers. Expect big delays if several lien holders are involved; each can make a counteroffer or reject the offer.

5. Firm Up Your Financing
Lenders will weigh your ability to close the transaction. If you're pre-approved for a mortgage, have a large down payment, and can close at any time, they'll consider your offer stronger than that of a buyer whose financing is less secure.

6. Avoid Contingencies
If you must sell your current home before toy can close on the short sale property, or you need to close at a form deadline, your offer may present too many moving parts for a lender to approve it.

Also, consider ordering inspections so you're fully informed about the home. Keep in mind that lenders are unlikely to approve an offer seeking repairs or credits for such work. you'll probably have to purchase the home "as is" which means in its present condition.

Houselogic.com by G.M Filisko.

6 Reasons to Reduce Your Home Price

2010-11-29T09:37:00.000-07:00

While you'd like to get the best price for your home, consider our six reasons to reduce your home price.

Home not selling? That could happen for a number of reasons you can't control, like a unique home layout or having one of the few homes in the neighborhood without a garage. There is one factor you can control, your home price.

These six signs may be telling you it's time to lower your price.

1. You're Drawing Few Lookers
You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling and asking about your home than there have been for homes in your area, that may be a sign buyers think it is overprices and are waiting for the price to fall before viewing it.

2. You're Drawing Lots of Lookers But Have No Offers
If you've had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.

3. Your Home's Been On the Market Longer Than Similar Homes
Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you're pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there's something wrong with it, which can delay sale even further. At least consider lowering your asking price.

4. You Have A Deadline
If you've got to sell soon because of a job transfer or you've a;ready purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in the area. Remember, it's not how much money you need that determines the sale price of your home, it's how much money a buyer is willing to spend.

5. You Can't Make Upgrades
Maybe you're plum out of cash and don't have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from your buyers is that your home isn't well -appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it's time to accept that buyers expect to pay less for a home that doesn't show as well as others.

6. The Competition Has Changed
If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what's still on the market? what new listings have been added since you listed your home for sale? If comparable home sales are new listings show your price too steep, consider a price reduction.

houselogic.com by G.M Fjiisko

How To Asses The Real Costs Of A Fixer Upper

2010-11-22T13:00:00.000-07:00

When you buy a fixer-upper house, you can save a ton of money, or get yourself into a financial fix. Trying to decide whether to buy a fixer upper house? Follow these seven steps, and you'll know how much you can afford, how much to offer, and whether a fixer upper house is right for you.

1. Decide what you can do yourself

TV remodeling shows make home improvement work look like a snap. In the real world, attempting a difficult remodeling job that you don't know how to do will take longer than you think and can lead to less-than-professional results that won't increase the value of your fixer upper house.

Do you really have the skills to do it? Some tasks, like stripping wallpaper and painting, are relatively easy. Others, like electrical work, can be dangerous when done by amateurs.
Do you really have the time and desire to do it? Can you take time off of work to renovate your fixer-upper house? If not, will you be stressed out by living in a work zone for months while you complete projects on the weekends?

2. Price the costs of repairs and remodeling before you make an offer

Get your contractor into the house to do a walk through, so he can give you a written cost estimate on the tasks he is going to do.
If you are doing the work yourself, price out supplies.
Either way, tack on 10% to 20% to cover unforeseen problems that often arise with a fixer upper house.

3. Check permit costs

Ask local officials if the work you're going to do requires a permit and how much that permit costs. doing work without a permit may save money but it'll cause problems when you resell your home.
Decide if you want to get the permits yourself or have your contractor arrange for them. Getting permits can be time-consuming and frustrating. Inspectors may force you you to do additional work, or change the way you want to do a project, before they give you a permit.
Factor in the time and aggravation of permits and plans.

4. Double check pricing on structural work

If your fixer upper home needs major structural work, hire a structural engineer for $500 to $700 to inspect the home before you put in an offer so you can be confident you've uncovered and conservatively budgeted for the full extent of the problems. Get written estimates for repairs before you commit to buying a home with structural issues.

Don't purchase a home that needs major structural work unless:

You're getting it at a steep discount.
You're sure you've uncovered the extent of the problems.
You know the problem can be fixed.
You have a binding written estimate.

5. Check the cost of financing

Be sure you have enough money for a down payment, closing costs, and repair without draining your savings.

If you're planning to fund the repairs with a home equity or home improvement loan:

Get yourself pre-approved for both loans before you make an offer.
Make the deal contingent on getting both the purchase money loan and the renovation money loan , so you're not forced to close the sale when you have no loan to fix the house.
Consider the Federal Housing Administration's Section 203(k) program, which lets qualified purchasers wrap up to $35,000 into their mortgages to upgrade their home before they move in.

6. Calculate your fair purchase offer

Take Fair market value of the property (what it would be worth if it were in good condition and remodeled to current taste) and subtract the upgrade and repair costs.

For example: Your target fixer-upper house has a 1960's kitchen, metallic wallpaper, shag carpet, and high levels of radon in the basement.

Your comparison House, in the same subdivision sold for $200,000 last month. That house had a newer kitchen, no wallpaper, was recently re-carpeted, and has a radon mitigation system in the basement. The costs to remodel the kitchen, remove wallpaper and replace carpet and put in a radon mitigation system is $40,000. Your bid for the House should be $160,000.

Ask your Real Estate Agent if it is a good idea to share your cost estimates with the seller, to prove your offer is fair.

7. Include inspection contingencies in your offer

Don't rely on your friends or contractors to eyeball your fixer-upper house. Hire pros to do common inspections like:

Home inspections, this is key for a fixer-upper. the home inspector will uncover hidden issues in a need of replacement or repair. you may know you want to replace those 1970's kitchen cabinets, but the home inspector has a meter that can detect water leaks behind them.
Radon, Mold, lead based paint.
Septic and well.
Pest.

Most home inspection contingencies let you go back to the seller s and ask them to do the repairs, or give you cash at closing to pay for the repairs. The seller can also opt to simply back out of the deal, as can you, if the inspection turns up something you don't want to deal with.

If it happens, this isn't the right fixer-upper House for you. go back to the top of the list and start again.

From Houselogic.com by G.M Fjiisko

2010-11-16T10:00:00.000-07:00

Here is this quarters newsletter. Click on the images for a larger view. If you want to be on our mailing list, please send your address to: justinudy@rciut.com

A Note From Justin

2010-11-16T09:30:00.000-07:00

There are always ups and downs, but the key is to find a way to succeed!

One thing is guaranteed, when you're on the river of life you are bound to hit a few rocks. That's not being negative, that's being realistic. Rather than focus on failures, focus on results.

Real Estate is cyclical and we are seeing results. Sellers are still selling and buyers are still buying. The Facts: we have lower interest rates, low prices, and a huge inventory. While some areas continue to go down value the Board of Real Estate reports that a handful of properties went up in the 3rd quarter- West Jordan up 10.7% and Canyon Rim (84109) up 4.7%. We are seeing things happen and I am seeing movement. Yet, I know that I have to be creative, persistent and put in the time to find buyers for my properties and great properties for my buyers.

"We will either find a way, or make one". - Hannibal

Whatever economic times, industry or circumstances, I know we can see success. consider these examples:

Dr. Seuss's first children's book was rejected by 23 publishers.
Henry Ford failed and went broke five times before he succeeded.
Franklin D Roosevelt was struck down by polio, but never quit.
Helen Keller, deaf and blind, graduated cum laude from Radcliffe College and went on to be a famous author and lecturer.
It took Noah Webster 36 years to compile Websters Dictionary.
Babe Ruth struck out 1,330 times.
Michael Jordan was cut from his high school basketball team.

"The difference between winning and loosing is most often...not quitting". - Walt Disney

Let's keep pushing forward. there are opportunities. Be creative, be persistent and keep moving forward. I look forward to working with you and appreciate your trust in me.

- Justin Udy

4 Tips to Determine How Much Mortgage You Can Afford

2010-11-08T11:33:00.000-07:00

1. The General Rule of Mortgage Affordability
As a rule of thumb, you can typically afford a home priced two to three times your gross income. If you earn $100,000, you can typically afford a home between $200,000 and $300,000.

To understand how that rule applies to your particular financial situation, prepare a family budget and list all the costs of home ownership, like property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care costs.

2. Factor in Your Down Payment
How much money do you have for a down payment? The higher your down payment, the lower your monthly payment will be. If you out down at least 20% of the homes cost, you may not have to get private mortgage insurance, which costs hundreds of dollars each month. That leaves you with more money for your mortgage payment.

The lower your down payment, the higher the loan amount you'll need to qualify for and the higher your monthly mortgage payment .

3. Consider Your Overall Debt
Lenders generally follow the 28/41 rule. Your monthly mortgage payments covering your home loan Principal, interest, taxes and insurance shouldn't total more than 28% of your gross annual income. Your overall monthly payments for your mortgage plus all of your other bills like car loans, utilities, and credit cards shouldn't exceed 41% of your gross annual income.

Here's how that works. If your gross income is $100,000, multiply by 28% and then divide by 12 months to arrive at a monthly mortgage payment of $2,333 or less. Next, check the total of all your monthly bills including your potential mortgage and make sure they don't top 41%, or $3,416 in our example.

4. Use Your Rent as a Mortgage Guide
the tax benefits of home ownership generally allow you to afford a mortgage payment- including taxes and insurance-of about one-third more than your current rent payment without changing your lifestyle. So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment.

Here is an example. If you currently pay $1500 per month in rent, you should be able to comfortably afford $2000 monthly mortgage payment after factoring in the tax benefits of home owner ship.

However, if you are still struggling to keep up with your rent, consider what amount would be comfortable and use that for the calculation instead.

Also consider whether or not you'll itemize your deductions. If you take the standard deduction you can't also deduct interest payments, Talking to a tax advisor, or using a tax software program to do a "what if" tax return, can help you see your tax situation more clearly.

Article from houselogic.com
by G.M Fjiisko

How To Use Comparables To Price Your Home

2010-11-02T11:17:00.001-06:00

Before you put your home up for sale, use the right

comparable sales to find the perfect price.

How much can your home go for? Probably about as much as the neighbors got, as long as the neighbors sold their house in recent memory and their home was just like your home.

Knowing how much homes similar to yours, called comparable sales (or in real estate lingo, comps) sold for gives you the best idea of the current estimated value of your home. The trick is finding sales that closely match yours.

What makes a good comparable sale?
Your best comparable sale is the same model as your house in the same subdivision- that closed in escrow last week. If you cant find that, here are the other factors that count.

Location: The closer you are to your House is better, but don't just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and your school district.

Home Type: Try to find comparable sales that are like your home in style, construction, material, square footage, number of bedrooms and baths, basement(having one and whether it is finished), finishes, and yard size.

Amenities and Upgrades: Is the kitchen new? does the comparable sale house have full A/C? Is there crown moulding, a deck, or a pool? Does your community have the same amenities(pool, workout room, walking trails, etc.) and homeowners association fees?

Date of Sale: You may want to use a comparable sale from two years ago when the market was high, but that won't fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.

Sale Sweeteners: Did the comparable sale sellers give the buyers down payment assistance, closing costs, or a free television? You may have to reduce the value of any comparable sale to account for any deal sweeteners.

Agents Can Help Adjust Price Based on Insider Insights:
Even if you live in a subdivision, your home will always be different from your neighbors. Evaluating those differences - like the fact that your home has one more bedroom than the comparable, or a basement office- is one of the ways real estate agents add value.
An active agent has been inside a lot of homes in your neighborhood and knows all sorts of details about comparable sales. They will have read comments the selling agent put into the MLS, seen the ugly wallpaper and heard what other REALTORS, lenders, closing agents and appraisers said about the comparable sales. Ask your real estate agent to be honest about your home and the other homes on the market, and then listen without taking the criticism personally.

Are Foreclosures and Short Sales Comparable?
If one or more of your comparable sales was a foreclosed home or a short sale (a home sold for less money than the owners owed on the mortgage), ask your real estate agent how to treat those comps.

A foreclosed home is usually in poor condition because owners who can't pay their mortgage can't afford to pay for upkeep. Your home is in great shape, so the foreclosure should be priced lower than your home.

Short sales are typically in good condition, although hey are still distressed sales. The owners usually have to sell because they are divorcing, or their employer is moving them to Kansas.

How much a short sale is discounted from the market value varies among local markets. So you have to rely on your real estate agents knowledge of the local market to use a short sale as part of your comparable sale.

houselogic.com
Article by: Carl Vogel

Coming Up With a Down Payment

2010-10-25T11:35:00.000-06:00

Coming up with a down payment can certainly be the hardest part about being able to afford a new house, especially if this is your first home. However, there are more than just a couple of was you can do this. We'll take you through the top 10 ways according to MSN. com that will enable you to come up with that down payment.

1. Ask for help. Parents, friends and relatives may be willing to give you a loan with favorable rates- with parents, that often means no interest rate, and no strict time frame. If a loan (or gift) doesn't seem feasible maybe the would be willing to co-sign the loan.

2. Use your other assets- either by selling them, or by borrowing against them. This can include things like cars, boats, bicycles, as well as stocks, or trinkets, such as heirlooms, or vintage trading cards.

3. If you have life insurance with any built up value, you could cash in that value, or possibly borrow against it.

4. If you are a first-time home buyer, you can take up to $10,000 from your IRA, penalty free, to put toward your home purchase.

5. You can also borrow against your retirement funds.

6. Sometimes, you can get help from a non-profit organization, such as a church. There are loans out there that will let you put a lower down payment down if a non-profit organization puts in part.

7. Increase your income - you can do this by getting a second job, or doing some freelance work.

8. If you can make it work, change your withholding taxes in anticipation of being able to deduct the interest. This will give you more take-home pay, which you can start saving!

9. Offer to give something other than cash for a down-payment. This could include offering the seller something like a car or a boat in lieu of the down payment, or it could be services; for example, you could offer to do some landscaping in the person's new home, or give them automobile services, or do their taxes!

10. Finally, you can look for options that don't require a large down payment. such options include loan programs such as VA or FHA. Another option is to purchase a foreclosure property, which can often be had with little or no down payment. You can also consider getting an 80:20 loan, where you essentially have two loans; one is the regular mortgage on the property and the other is a loan for the down payment- even though these are separate loans, they often come from the same lender.

Article from househunt.com

Increase Home Values : Easy & Cheap Improvements

2010-10-20T10:53:00.000-06:00

10 Residential Renovations that Reap Rewards

Whether you are selling or dwelling, home improvements can add a pretty penny to the bottom line or can help you fall back in love with your abode. There are plenty of inexpensive tricks that can provide some incentive to perk up your investment, without a complete overhaul. We have compiled a list of the top 10 boosters to get the beautification process rolling.

1. Modernize the Mess Hall
As the hub of the family interaction, the kitchen is the heart of the home. Brighten the cabinets with a fresh coat of paint or some updated hardware. Add a new faucet or light fixtures to rejuvenate the space or change the window coverings for a more modern feel. Buyers are always interested in the kitchen, so try a quick face lift that will turn up the heat on your bottom line.

2. Spa Sparkle
Shine up the bathroom to offer a clean and calming spa-like refuge from the daily hustle. A quick fixture change, a new toilet seat and fresh accessories can be all you need to brighten up the bathroom. the bathroom is the second in line tot he kitchen to potential buyers, so use a discerning eye. A fresh coat of grout in the shower or maybe even a new prefabricated tub can do wonders. Open up the space with a pedestal sink and lay new vinyl sheeting or individual tiles right over your existing floor to inexpensively revive the floor.

3. Ardent Appliances
Hopefully the avocado green electric stove is long gone, but if your appliances come in a variety of colors, it may look just as unsavory. Experts agree that a mismatched kitchen may leave a bad taste with buyers. If new appliances aren't in the budget look to re-facing. Some appliances doors can be flipped inside out for the opposite color. so all you need is a screwdriver to update. you can also request new fronts and tops from the manufacturers to create a more seam lined look.

4. Room Conversion
If you have an extra playroom or den, consider yourself in line for a windfall. When selling your home, increasing numbers of bedrooms can significantly increase your profits. the only difference is between a den and a bedroom is a closet; so invest in the storehouse to up the ante.

5. Machine Clean
Spruce up neutral carpets with a professional cleaning, brightening the room and clearing any unwanted odors or stains. If your carpet is blemished, try placing area rugs over the worn spots. It may seem like you are hiding the problem, but most experts agree that replacing the carpet for a House on the market isn't worth the investment unless it is in really bad shape.

6. Lighten up Your Life
Lighting can dramatically affect your mood, so brighten things up! Breezy window coverings allow you to control how much natural lighting you'd like to let in. a strategically placed table lamp or a dramatic chandelier can add character while making your rooms appear larger and more open.

7. Straighten Out Your Storage
Older homes present the ever present storage problem. Crate space by utilizing closet organizers or wire and laminate shelving in the pantry, closet and garage. Purging some old junk in the yard sale or through donations can remove clutter, while making the space look bigger.

8. Nut and Bolts
Potential buyers sometimes take a look under the hood o assess there amount of wear and tear a house had endured. Hiring a professional to check, fix and update electrical wiring and plumbing can confirm to the purchaser that your house is healthy inside and out.

9. Opportunity Knocks
Still opening the front door with a flimsy standard issue door know? Choose a hearty piece of hardware that emphasizes sturdiness, while a bold color says "look at me!" Refinish the front door with a bright hue or faux finish a steel door to look like wood for a refreshing first impression.

10. Groundwork
The front yard is the first thing that potential buyers see, so don;t miss out on your chance to pique their interest. focus on a clean cut, straighten up the lawn edges, freshen the landscaping and add some color spots or striking shrubs for impact.

Article from www.househunt.com

5 Tips for Choosing a Neighborhood

2010-10-07T09:15:00.000-06:00

You're not just buying a house, you're also buying a neighborhood. Sometimes, though, one resident's "neighborhood glories" are another resident's "neighborhood warts".

There is more to weigh than just crime, prices and commute.

1. The time of day when you first lay eyes on a prospective house can affect your impression of the neighborhood. Make sure to visit at various hours. A property can be totally different at night. The same can be said for neighborhood traffic, which can change dramatically at rush hour, or traffic ona Saturday can be completely different than on a Tuesday.

2. Neighborhood choice can be a pocketbook issue, and not just because of house prices and property taxes. Commuting costs, of both time and money are critical.

3. Ask questions of people who already live there. The locals usually freely offer their opinions of neighborhood safety, noise, school performance, commuting times, etc.
4. The Internet can be a boon for researching the nitty-gritty. Neighborhoodscout.com, for example is a subscription service that offers in depth look at such considerations as crime statistics (for 17,000 law-enforcement jurisdictions), school performance data, and quarterly price-appreciation records of area homes. The service costs $ 29.99 a month or $14.99 for a six month subscription.
5. Some neighborhood characteristics can be hard to cram into numerical categories or scores. Nabewise.com has taken 65 "quality of life" characteristics and set them up as criteria for neighborhood-hunters. You can actually search for "trendy" or "clean" neighborhoods. Perhaps you want to live around liberals, or conservatives. Maybe you want to be near a farmers market, public transit, night life. Currently this company only does this for New York, Chicago, Boston and Los Angeles. More Cities are coming soon the company says.

Article from inmannews.com By Mary Umberg.

1% Flip Tax

2010-08-24T23:38:00.000-06:00

http://money.cnn.com/2010/08/23/real_estate/home_resale_fee/
This resale fee is pretty interesting. I understand a fee for service or transfer fee from work performed. Banks charge an origination fee every time they do a loan. then again they assume the risk and have to process the entire loan every time they do it. Whatever you do, read the fine print, review the title report, and be sure to look at all informaton on the CC and R's.

Foreclosures Still on the Rise:

2010-06-28T15:25:00.001-06:00

Utah's foreclosure rate continue to climb in the first quarter to 3.43% , up from 2.36% a year ago during the same periods, according to the Mortgage Bankers Association. 19 other states posted higher foreclosure rates in teh fristy quarter compared to Utah, Nationally, the foreclosure rate rose to 4.63%, up from 3.85% a year earlier.

How Overpricing Kills Home Sales.

2010-03-30T16:20:00.001-06:00

If there is one thing that will kill a sale- it is overpricing! Everyone know the logic, we think, "lets start high and then we can negotiate". Wrong! How can you negotiate when people are not willing to look at something that is overpriced?

Reasons overpricing will kill your home sale:
You WILL have fewer showings.
Less internet activity, fewer property tours, less activity.
It helps sell your competition.
Rather than having a bidding war, there are no offers to negotiate.
You are not creating VALUE in the eyes of a buyer.

Therefore, let's get serious and price it right. You will find that you are not following the market down. You save money in monthly payments. You take advantage of the low interest rates.

Like my Grandpa used to say, "Pigs get fed, Hogs get slaughtered." Don't be greedy but get what you can.

Salt Lake 2010 Market Forecast

2010-03-24T16:23:00.000-06:00

Between 2007 and 2008 home sales dropped 42 percent, falling from 15,300 homes sales to 8,800 home sales.

However, in 2009 home sales increased 9,100 sales, a 3 percent increase compared to 2008. The increase in home sales in 2009 suggests that 2008 was the bottom of the downturn. In 2010, as many as 10,000 homes could be sold in Salt Lake County, a nearly 10% increase compared to sales in 2009. Since the peak, single-family home prices have retreated 13%.

Local housing prices will continue their drift downward in 2010, falling another 3% to 5%, the report noted.

At the end of the fourth quarter, the median price of a single-family home in SL County was $222,000, down 13% compared to $255,000 at the peak of the market (third quarter 2007).

Power of Curb Appeal

2010-01-14T22:59:00.000-07:00

I had to laugh when I heard the following story from a good friend and investor client. He told me a story about his first investment property that sat on the market for 6 months with zero activity. "I never realized all I had to do was mow the lawn and give it a little curb appeal and waaalaaah! One lawn mow and it sold in a week!"
There is too many properties and too much competition. Your property must stand out whether it have better rents, more ammenties, and further more have curb appeal.

Here is a watered down version of my investor to do list.

There are four rules with investing in Residentail Real Estate
1. Curb
2. Kitchen
3. Baths
4. Sizzle features

Curb appeal captures buyers. First impressions are everything. It makes people want to stop the car. Over 90% of buyers find their home on the internet. If the front view of the house is not inspiring, they will NEVER get to your online property Tour. No matter what the inside of the home looks like, if the outside is not enticing, they will move on.
Curb appeal changes could include changing a front door, adding shutters, or even just mowing the lawn! Trim or remove trees or shrubbery, add a picket fence, or just add some water to the dead grass just do something. Be creative but keep in a budget. It is easy to go overboard on anything without a budget in mind.
Keys to curb appeal. Improve your buyers first impression of the home from the street. Be sure the porch and entry are clean and updated, feels comfortable, and safe. Minimal landscaping is necessary from adding additional mulch and making sure the grass is green. Finally, be sure there is some design elements (this could include front porch light, mailbox, door color, shudders, front entry, picket fence, front door knob....this list goes on). Finally, a fresh coat of paint never hurt anything.

$4000 Home Run 2 Grant

2009-09-15T16:09:00.000-06:00

$4000 Home Run Grant is nothing but cash in your pocket! An Amazing opportunity to contract a property to build or purchase existing property that has never been occupied. Be sure to go through an approved lender, watch your deadlines, and apply EARLY!
Currently there are 500 new construction properties that will qualify for the home run grant in the Wasatch Front and nearly 200 in Davis County. For more details on these properties, email me at judy@rexut.com, or call 801-573-1601.

Web link:
http://b2b.utahhousingcorp.org/cgi-bin/R?P=HOMERUN2_INFO

HOME RUN GRANT 2 DETAILS

The property must be your primary residence. You DO NOT have to be a first time home buyer. Purchase a SFR, condo, PUD, Twin homes, town homes and even mobile (see details).

Homes that qualify:
1. Purchase a home contracted for construction, partially finished, or contracted for completion- be sure to reserve your Commitment by November 30 , 2009 and it must be completed by June 30, 2010.
2. Purchase a new construction home that has never been lived in.

Eligibility:
Single person with maximum income of $75000, couples $150,000
Cash buyers can qualify.

Good luck

Real Estate and Rents

2009-06-18T11:29:00.000-06:00

I recently had a a tenant request a $50 reduction in rent. They have been renting for over 18 months with no late payments. Every quarterly walk through the property is super neat and clean. I signed a new lease agreement and they will continue to rent.
By keeping my steady income stream from properties it allows me to continue to fish for new properties in the market. I can show low vacancy rates and consistent income. In addition, it allows me to keep the property cash flowing even if more residential homes are to be leased, I am still competitive.
If I decide to refinance, I can show the income. In the end, it is a long term investment. As long as it cash flows, I plan on this property being very lucrative.

Decrease Has Upsides, Home Run Grant and Tax Credit.

2009-06-04T17:07:00.001-06:00

Buying a home right now may be the best decision you can make! Reasons you should be buying today:

Interest rates are low
Rents are going up
High property inventory
Concessions are plentiful
Free money is available (Grants, Tax Credits, local incentives)
Creative financing available like never before
Banks, Credit Unions, and Corporations are realistic
Sellers are motivated

The last few weeks have been absolute dream come true for new home buyers due to the incentives, prices, and properties available on the market.
This week I sold 3 town homes and one residential home. Two were successful in qualifying for the $6000 Utah home run grant program and three received the $8000 tax credit. Not to mention the properties were great deals and the seller covered all their closing costs. These buyers were absolutely ecstatic.
This market really excites me. The market provides more inventory than ever before to pick and choose the home or rental property that absolutely fits. Sellers are willing to be creative in carrying contracts, cover closings costs, and even provide creative incentives.
However, if you want to take advantage of these opportunities you better move quick. According to City Weekly, of the 1600 home run grant programs, there were only 600 available 2 weeks ago. If you want to confirm you qualify, go to

http://www.utahhousingcorp.org/Homerun.htm.

The Tax Credit from the Government is available until November.
Today's opportunities are plentiful. The stars have aligned, all lights are green, its time to make a move. If you have been holding back because you have not found the absolute best deal then you are not looking hard enough. I look forward to assisting you and showing properties I have on my radar. It's exciting! Hope to talk to you soon.

Residential Rental with Cash Flow

2009-04-11T10:18:00.000-06:00

What an amazing market to be creative. Fortunately, we can really help those that haven given up and are ready to walk away from their property. I know you have heard it before but, "Dont wait to buy real estate, buy real estate and wait." I just submitted an offer yesterday to purchase a single family home for my business portfolio. The owner wants out and will seller finance the property. After negotiating details on the phone, I am putting $5000 down and the price is $135,000. It is a 5 bedroom that rents at $1000 a month. This will be a long term hold with great cash flow.
My goal is keep this property and use it to 1031 into a larger multi-unit, development project, or another income producing property.

Commercial Deal with Great Terms

2009-04-11T10:13:00.000-06:00

We closed on a property last week. The property was a For Sale By Owner Commercial building on State Street with 8000 square feet of commercial space and an additional 3000 square foot garage. We purchased the space for $410,000! Price per square foot is amazing and great ability to lease. Don't stop reading. We put $25000 down and the seller is financing the note for 7.5 yrs at a rate of 6%. Now thats a deal.

Value in Property

2009-04-10T23:48:00.000-06:00

When establishing value with property we look at the features and benefits of a given property vs. the current competition. With properties sitting on the market, foreclosed homes increasing, and sellers getting more motivated- there is more and more competition.
My properties are selling simply by providing easy terms, understood incentives, and sticking to a bullet proof marketing plan. "VALUE" does not mean PRICE. Creating phenomenol terms, knowing how to provide funds, and keeping a disciplined schedule may be the difference. Call me, let me show you what I mean.

Foreclosure and Bank Owned Properties

2009-01-24T00:34:00.000-07:00

We missed a bank property this week by offering $5000 too low on a $600,000 property. One of my daily tasks is to know of every foreclosure and bank owned property that hits the market. By networking with local banks, agents, and loss mitigators, I find out more about properties that will be coming. This provides my clients the best deals before they are on the market or the day of. Good deals go and others may see them too.
Well...get ready for it. More foreclosures are coming. If you have note read it yet check out the story at: http://www.sltrib.com/realestate/ci_11454615.
Daren Blomquist, RealtyTrac's marketing communications manager said, "Utah now ranks 13th in terms of foreclosures, compared with 20th place a year ago. Foreclosures appear to be rising at a faster pace now because the housing boom in Utah came later than other states, so the bust is coming later, too," She went on to say "We have some tough times ahead of us. Even though we're approaching record-high levels of foreclosures, we're still in a better situation than most other states," she said.
As many of you know, my goal is always to find 'MOTIVATED' Sellers. Although REO's are motivated, they are not my favorite. In fact, I am not a huge fan of foreclosures of bank owned properties for the following reasons:

All homes are sold 'as is'
No Sellers Disclosures
A normal home inspection may not be enough
Any internal damage, mold, or methamphetamines are unknown.
Builder mistakes may be severe
Our extreme climate may have caused damage and property may not be winterized correctly.
The deal of the decade may be a money pit.

Although there are lots of deals available. Be sure to plan on spending more than the average $350 home inspection. Spend the time and money to get mold testing, meth testing, engineering reports, details from neighbors, and anything else you can. Consider hiring a professional contractor in addition to your home inspector. Better safe than sorry. Calculated risk is key when purchasing these types of property.

There is Hope

2009-01-09T12:53:00.000-07:00

The great thing about our market isthere are opportunities. There are motivated sellers, people will carry financing, and renters want to stay somewhere nice. My dad always told me there are 3 things people always need: food, clothing, and housing.
I admit, it is not fun to see equity going down, jobs being lost, and people losing their homes. It's not fun taking a call from a client asking why their property has not sold and you have to explain that the price reduction you requested is a must not a suggestion. It's not fun seeing my parents heart sink every time the stock market drops.
However, there is hope. Even the people that have lost everything they have worked for can start moving forward and they do not need to wait years for a market recovery. In fact, many have said they will just start renting and try to qualify for a loan in 3 to 5 years. So here is what these people need to understand. No credit...No money...No problem.
While prospecting THIS WEEK I found 3 great deals that would benefit such a situation.
1. Owner has had a rental for 20 years. He wanted 10% down and then actually said he would take no money down if he got his price. This is in a good are in Salt Lake! He will carry the note for 20 years at 6%.
2. Seller rents property in Utah County and really just wants to stop land lording. Will carry financing.
3. Seller willing to sell their fixed up property at any price to get into their dream home. Yes, carrying the note is an option.
Lets keep pushing. There is hope. The harder we work the luckier we get. Call me, let me show you how.

Do What Others Are Not Willing To Do

2008-12-03T23:00:00.000-07:00

The last few weeks I have had peers ask how I am selling property, finding good investments for clients, or how I am finding new business. "How are you closing deals?"
The answer...I continue to scratch at the concrete. I put my head down and go to work. I cold call, I knock doors, I call ads on the internet or newspaper, I have my assistant create lists for me to call and I do whatever I have to make more contacts, set more appointments, and sell my clients properties or find new properties for my buyers. I continue to spend money on marketing. I make sure I follow up on every interested call. It is the constant daily effort of finding, marketing, and being in front of people and properties. Its the daily routine and doing things constantly and consistently that has created some deals that would have never happened. I seem to get luckier the harder I work. The more consistently I do it, the more deals come about. How did the tortoise win the race, one step at a time.

Be Creative and Make It Happen

2008-11-03T20:45:00.001-07:00

This last week we were able to close on two deals that likely would have never consumated and closed. This market is fabulous for creating win win transactions with creative techniques that benefit all parties. In addition, it makes deals close in a market where they would likely sit and never sell at all. That is why we are selling properties and our deals are closing.
Examples from THIS Week:
1. Our fixer upper property was under contract for $158,000. After all evaluations were complete and the day of closing arrived, we found that the buyers partner did not have his half of the money. Therefore, IT WAS DEAD. So rather than take the buyers earnest money and put it back on the market with 8,600 other homes I asked the question. "How much money was promised by your partner?" "What if I could provide you the money you need to make up for your partners lack of funds, would you still close?" Therefore, he came in with 30% down as required by the bank and we did a 10% carry back for 3 years. He was happy to save the additional 10% and my seller was ecstatic to earn a higher percent on her money than the bank would or money market would yield her.
2. We had a buyer that had $40,000 cash down but no credit. Also, they did not want their payments to exceed $2000 AND wanted a $500,000 home. Is this reality or fantasy land? Well...this is what we did. We searched the MLS and found a builder/agent wanting to sell. I proposed a few options and our goals, in the end we closed at $470,000 at a 5% rate for 5 years!!! No mortgage insurance and $40,000 down. Not only is that a good deal, the TERMS are powerful!
3. I am currently negotiating on an income producing duplex for myself. The term would be for 4 years at 8%. Sounds a little high but in reality by the time I am saving the cost of no mortgage insurance, no closing costs, and the ability to raise low rents to market rates, it really is the deal of the decade.

My point is this. This market has some deals that people really think would never happen or are simply over looked. So, just remember there is sunlight through the clouds and there are deals everywhere. Just think about it a little longer and be creative and ask, "how could I make this happen?"

It Can Happen, Anytime.

2008-09-11T20:51:00.000-06:00

Two weeks ago we were bid out on an investment. The day of closing the deal did not go through for the other party. Although there were better offers on the table, we could close quick and they called us to close for our offer $20,000 less than competing offers. What an amazing deal. As I stated before, 50% of the time those deals go through. Always be the back up.

Since then I found a property with foundation problems for $99,000. What a deal right? But here we are two weeks later and it is still sitting on the market as investor after investor cannot seem to justify the price with the major foundation issues. Remember, I am not interested in what a property is but what it can be.
This property can actually be split into 3 lots and 3 townhomes built on the property. This property is not getting justice. I would take 20 minutes to have a preliminary plan approved and market it has a possible 3 unit development for $135,000. Would you rather have one junky house for $100k or a possible unit for $45,000 a door?

A fixer upper found this week

2008-08-25T22:30:00.000-06:00

We located a real fixer upper this week for $185,000. It needed about $50,000 and would be worth $280,000.It was really a dump and needed significant rehab. There were 6 offers and It went for full price the first day on the market.
Interestingly enough, our offer was $20,000 less. When I asked the agent if we could be in a back up position, they agreed.
This is my favorite type of deal and this is why. Lessons to be learned:
1. Always stick to your numbers. A feeding frenzy can sometimes make you feel pressure that get you away from your numbers. Put a pencil to it and stick to it.
2. Always be in a back up position. I do not care if the next deal is cash. Anything can happen! My ratio of success is roughly 50% of back up offers go through. You do not get all of them but when they go through it is awesome.
3. There are more fish in the sea. This deal came up this week there will be another next week. It was just fun to see how many offers came in on the deal and how active this market really is. Like I said, this market is a great opportunity to get some good deals.