Archive for the 'Buying' Category
Spotting Opportunity
July 5th, 2008 Categories: Buying
SPOTTING OPPORTUNITY
IN TODAY’S MARKET
Why trading up makes sense
If home prices dropped by 5%, here’s what it
could look like if you decided to trade up.
The smaller loss at sale will be compensated by greater savings at
purchase, resulting in a significant net gain.
A BUYER’S MARKET IS A TRADING UP MARKET!
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Salt Lake MLS Map Searching
July 4th, 2008 Categories: Buying
Salt Lake MLS Map Searching
Finally the long anticipated arrival of Salt Lake City Map Searching.
This is something we have been working on getting for quite some time.
Let’s examine what Salt Lake City Map Searching really is.
The landing page will be a map of most of Salt Lake County and will show you the amount of properties that are for sale in that screen.
In the upper left corner you have map control options Zoom or Move. When you select Zoom you can draw a box and the map will display the available properties in the new screen. The second option is move, when you select this option you can use the hand to move the map around and get new results. Naturally you have the zoom in and out selections on the left side of the map.
Also in the upper right corner of the amp you can change the view to Street, Hybrid or Aerial View.
Now below the map is the ability to refine the property search. You can choose property type such as Single Family, Condo… You have the option to select more than one. By not selecting any, you have selected all by default. Then you can move over to price range where you have minimum and maximum. Then other choices such as bedroom and bathroom counts, style, year built range and more …
Once you have refined your search you can Go to Search Results to view your choice in a quick report or can save your search. When you select save this search you can create an account, this will take you to a registry window.
Once you are registered, you have the option to receive an email of NEW OR UPDATED listings.
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The Tug of War Over The Buyer’s Agent Commission
March 12th, 2008 Categories: Buying
Unrepresented Buyer Wants Half The The Commission
I came across two different buyers recently and I asked if they were working with an agent. Both said they would represent themselves and they would negotiate the buyer’s agent commission.
For the sake of this discussion the seller and the listing broker negotiate a contract and the seller is to pay the listing broker a commission. The listing broker is offering a Buyer’s Agent Commission (BAC)
A Buyer comes along and says I don’t have an agent they want the commission.
One buyer asked, “I assume there are two commissions.”
There is actually only one commission paid by the seller. The listing broker can offer compensation to a broker for any amount they see fit. They can offer no compensation and expect the buyer’s agent to collect a commission from the buyer.
So if there is no agent representing the buyer, what should happen to the commission?
Should the unrepresented buyer be entitled to the commission?
What about the seller? After all they are the one paying the commission, shouldn’t they be entitled to it?
What about the listing agent shouldn’t they be entitled to it?
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The Case Against Waiting To Buy
March 11th, 2008 Categories: Buying
I found this awesome little slide show.
It compares interest rates going up versus properties going down in value.
| Discussion: 3 Comments »
Mortgage Rates In Salt Lake City
March 8th, 2008 Categories: Buying, Mortgage
Conforming mortgage rates mentioned below are considered with loan amounts up to $729,750 for a single family residence and is owner occupied. It is with proving your income and a “full document borrower”.
The rates quoted are based on a purchase price of $200,000 on a 30-day lock. On these conforming loans, there are no prepayment penalties involved.
Conventional and Government Loan Interest Rates
|
Program |
Rate |
APR |
| 95% | 6.25 | 7.43 |
| 100% With Mort Insurance | 6.38 | 7.74 |
| 100% No Mort Insurance | 7.00 | 7.15 |
| My Community 100% | 6.88 | 7.76 |
| VA 100% | 6.00 | 6.19 |
| FHA 97% | 6.00 | 7.08 |
If you would like any additional scenarios done, please call for that information at 801-747-1233 and ask for Cindee or email to Cindee@CindeeStone.com
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Investing or Loan Fraud
March 2nd, 2008 Categories: Buying, Investing, Real Estate News
You Notice He Said Co-Conspirator Not Victim
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Salt Lake Market Update
February 25th, 2008 Categories: Buying, Real Estate News
Salt Lake Market Update
The Salt Lake Real Estate Market seems to be finding itself. Currently there are (as of this writing) 7,115 active residential listings in the MLS while more than half are between $120 - 350,000 at 4,120.
Here is the real story there are 1,591 listings that have a sale pending. For the total market that is just a hair over 18% which is not bad but not good when compared to the runaway seller’s market that we have come accustomed to in the past couple of years…
BUT over 75% of all the listings that have a sale pending are between the $120 - 350,000 ranges. That segment has a total of 5,325 listings. 4,120 active listings 1,205 with a sale pending which is almost 1 in four homes in that price range has a sale pending.
The average days on market for all properties that have a sale pending is 56, the $120-350,000 range the average is 51.
Click for a Full Copy of the Salt Lake County Real Estate Market Stats.
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Why You Should Buy Salt Lake Real Estate Now
November 24th, 2007 Categories: Buying
Should Buy Real Estate Now.
There are some really good deals out there, interest rates are low. Remember the time to buy is when everyone else thinks it is not.
If you are thinking of retiring in five or six years, why not buy your one level living home now and lease it out and then you can sell your current home at tomorrow’s prices and buy at today’s price.
That way Y O U win all the way around.
Although the above is true, I needed to do my part for the big game today.
| Discussion: 1 Comment »
When Buying A Home, Should I Get A Home Warranty?
October 20th, 2007 Categories: Buying
Home Warranty 101
A Home Warranty is an insurance policy against mechanical defects of the home. If a mechanical item breaks down the home owner then calls the Home Warranty Company. The company then sends out a technician to look at the defects. The home owner will pay a $55 deductible and the technician will invoice the Home Warranty Company for all of the covered costs over and above that amount.
The basic cost of a Home Warranty policy can start at about $255 for condos and $275 for single family homes. The basic plan for a home warranty policy will include items such as heating, plumbing, dishwasher, garbage disposal, garage door opener, water heater, plumbing stoppages, attic and exhaust fans, duct-work, electrical system, oven/cook-top/range, trash compactor, built-in microwaves, instant hot water dispensers, circulating pumps, toilets, sump pumps, and jetted tubs. A home owner can pay extra for coverage on refrigerators, washer/dryer, air conditioning, and swimming pools/hot tubs.
If you are buying a home I recommend asking the seller to give a home warranty, if they are not willing to purchase one for you. I recommend you purchase one for yourself.
They are so common that it is a fill in the blanks of the Salt Lake Board Of Realtors Purchase Contract, section 10.3
| Discussion: 2 Comments »
Property Appraisal
October 13th, 2007 Categories: Buying
The Bank Qualifying The Property
As I mentioned in Things You Need To Know When Buying A Home the Bank qualifies the borrower AND the property. Let’s talk about qualifying the property, for the most part it means an appraisal. When you are borrowing money the bank will require it. If paying cash it is not necessary and sometimes a good set of comparable sales can satisfy the need for an appraisal. How an appraiser does an appraisal.
There are three approaches to appraising a property.
1. The cost depreciation approach.
First the appraiser will establish the value of the land and then what it would cost to build the home today and then minus for depreciation of the building.
2. The income approach.
Take the income of the property minus out expenses and determine a net income and then divide it by the average capitalization rate of the area (look for a post on CAP Rate in the future)
3. The comparable sales approach.
This is the most common used in residential real estate sales. An appraiser will take the recent sales in the area that closest match the subject property and make adjustments to the comps to determine an estimate of value. They are really not trying to establish an exact value such as $218,953.28. They are really trying to determine if the property will work as collateral for the loan.
They also do a basic inspection (NOT to be used instead of a professional home inspection). They will indicate the overall appearance and note if there are utilities and the property appears to be in a normal condition for the area. An appraiser can require that certain items be certified by a licensed professional such as a roof if the roof looks suspect or evidence of electrical malfunctions, then they can ask for an electrical certification.The next thing that the bank looks for in a property is the title work. They want to know if there are any deed restrictions that could affect the value. In residential there are not too many things that will have a real affect.
A good example of a deed restriction. The old Villa Theater on Highland Drive. Well it was bought by Harmon’s grocery store and they put a restriction that if anyone were to buy the land they could not build a grocery store to protect their interest of their store a couple blocks away.So once the borrower and the property finish being qualified then the loan can close and you get the property.
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