Schools Out
June 8th, 2008 Categories: Not Real Estate
Schools Out
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Pricing Your Salt Lake Home
June 5th, 2008 Categories: Selling
Pricing Your Salt Lake Home
The most common method for pricing a home is the CMA or the Comparative Market Analysis, Comparing the subject property to the homes that have recently sold.
Although an official appraisal can go back 6 months, I don’t like to go more than 3-4 months.
Once I have gathered the comparable sold data you will notice a range. I will then take the high and the low and then I will establish a center line. Then based on the features and condition of the subject I determine where on the center line you fall.
Then I look at the active listings in the area to see what the competition is. You will quickly see where the “REAL” competition is. You will see homes listed and think, they are never going to sell at that price (you’re right). After a little studying you will identify the competition and then “If You Want To Sell” you have to be the better deal.
Now this is not a one size fits all, it is more of a guiding principal.
I see a lot of agents use CMA software that uses adjustments and then establishes averages which is not wrong. The problem with that method is that the closed properties are one part of the equation. The software approach is to scientific and appraising is an art and not a science.
Tags: Appraisal, CMA, Salt Lake| Discussion: No Comments »
Another FHA Article
June 1st, 2008 Categories: FHA
FHA and The Salt Lake Real Estate Market
I have been talking about FHA loans since last summer and the role FHA will have now that the market has shifted. FHA is not as sensitive to FICO scores. This does not mean you can have bad credit and still get a loan. Some people have lower FICO scores not because of a less than desirable payment history. Believe it or not there are still people that do not use credit to buy things other than a house.
FHA only requires a 3% down payment and it can be a gift, a grant or Down Payment Assistant Program aka DPA.
Some people interpret this as a Government bailout and the Government is making bad loans. FHA DOES NOT LOAN MONEY, FHA is an insured loan that is funded by the mortgage insurance premiums of the borrower. The reason FHA works is very simple, it is what is called a full doc loan. Meaning full documentation, all things must be verified. You know trivial things like employment, rental history…
FHA has loosened up in the past few years on some physical requirements. They used to be so stringent that it didn’t make sense. Things like a handrail going to a basement could not be raw wood or a small crack in a window of a detached garage. The purpose of the requirements is to assure people were buying safe homes.
The latest is the increase in the loan limits. This one is huge, there are a lot of people that have homes that were considered a jumbo and therefore the loans had higher interest rates. Even with mortgage insurance FHA loan will be better than most conventional products that have 10% or less down. After all why shouldn’t someone with a good credit history good income minimal debt and a fair down payment get a good interest rate?
I have written quite a few pieces on FHA and still say when choosing a mortgage company make sure they are an FHA approved lender. For more read 8 Reasons Why You Should…
Tags: FHA, FICO Score, First Time Home Buyer, Home Loan, Mortgage| Discussion: No Comments »
CO OP Agent Of The Month
May 22nd, 2008 Categories: Real Estate News
This month’s Co Op Agent of the month is Beckie Meisenheimer
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The Salt Lake County Real Estate Market
May 17th, 2008 Categories: Real Estate News
Salt Lake Real Estate Market
The Salt Lake County Real Estate Market has seemed to found itself for the most part. We have seen slight improvement in most “not all” sections. Number of homes sold in April is up 3.75% over March, the average sold price is up 1.5%. While these are not numbers that suggest that the housing market is on the climb, it certainly does not look like it is declining either.
Now this does not mean all of Salt Lake is out of the woods. We still have to deal with pockets like Draper. Currently there are 698 Active Listings in the City of Draper with an average price of just over $625,000 and a median price of $478,900 with only 48 homes sold in the last 30 days. However there seems to be a little traction catching in Draper, nothing to suggest that hangover is cured but it appears that the aspirins have showed up. Herriman is not quite as bad but has its own hangover. The unseen issues in Herriman are the available lots for sale. It will be some time before that is cured. It will be interesting to see what happens when the lot prices start bottoming out in Herriman.
| City/County |
Active Listings |
Sale/Pending |
Sold 30 Days |
| Draper |
698 |
90 |
48 |
| Herriman |
409 |
76 |
35 |
| SLCo |
8,145 |
1,784 |
906 |
Some of the reasons for this activity is the increase of the FHA Loan Limits from $362,000 to $729,000. Prior to the increase anything over $417,000 was considered a jumbo loan and came with a higher interest rate. Now that there are better loans for amounts above $417,000 this will help those segments of the market climb back.
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Utah Real Estate Division Cracking Down
April 13th, 2008 Categories: Real Estate News
Utah Division Of Real Estate’s
Licensing Actions and Disciplinary Sanctions
Incoming Director of Real Estate Mark B. Steinagel is quoted “My vision for the Division of Real Estate is to continue making things easier for the good guys and harder for the bad guys”.
The Utah Legislature has been adding new teeth to its bite on fraudulent activity in the Real Estate World. Up until a few years ago loan officers were not regulated. Now Mortgage Brokers, Loan Officers, Appraisers and Real Estate Licensee are governed by the Utah Division of Real Estate. The fact that all three of these licensees are handled by one department makes things a little easier. It is tough to work across different divisions.
Some new legislation that has been enacted is HB 346, SB 134, HB 128 and they are adding new investigators.
Below are a couple of Disciplinary Sanctions from the Utah. I took out the names, I am not interested in the who as much as I am the what. I would like to inform the public of some of the things that were being done during the boom. I am always amazed at the audacity of some people.
Sales Agent, Lehi, UT. Agreed to pay a $40,000.00 civil penalty and the revocation of his sales agent license for a five year period in an October 17, 2007 Order. Sales Agent admits to using the identity of another individual for purchasing a home for his personal residence, falsely indicating on settlement documents that the home would be “owner occupied” and acting as a real estate agent in three separate transactions using that same individual’s information on settlement documents. He forged signatures of that same individual on documents, obtained an appraisal for the purpose of inflating the price of the subject property to obtain money in excess of the sales price and acquired cash at the closing for his personal benefit. Sales Agent also diverted proceeds from loans to a company controlled by him at closing as part of the scheme to conceal the true terms from the lender. Case # RE35870.
A MORTGAGE COMPANY, Draper, UT. Agreed to the revocation of it’s mortgage license in the State of Utah and not to sell the company to any other individual or entity in a November 7, 2007 Order. A Mortgage Company admits to violating Utah Code Annotated Section 61-2c-301(1)(d)(l) in which the company submitted a fraudulent CPA letter, added different individuals temporarily to bank accounts to show they had sufficient funds to meet underwriting conditions, submitting false employment and income information, submitting loans to lenders stating that properties were “owner occupied” when they were investment properties and had never been occupied, and misrepresenting income on a personal loan. Case # 36257.
These are good reasons when interviewing an agent to check the State’s Web Site to see if they have any actions. http://realestate.utah.gov/
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Shhh Don’t tell Anyone
April 13th, 2008 Categories: Real Estate News
Salt Lake Real Estate Market
Showing Signs of Improvement
Shhh Don’t tell anyone but the Salt Lake Real Estate Market inched forward. Could be seasonal, could be amazing interest rates, could be buyers are not listening to media, it could be a lot of things or a combination of all of the above.
Number of residential units sold in Salt Lake County for the month of March is up a little over 17% from February and up 30% from January. Average sold price up a hair nothing special. List to sale ratio went from 97% to 98%.
One of the things not reflected in the price is seller concessions to the buyer. For example if a property is listed for $280,000 and the buyer and seller agree to the list price BUT the seller agrees to pay $7,000 in closing cost concessions to the buyer. The price was $280,000 as reported but the affective price to the seller was $273,000.
Although appraisers will not count the concession when appraising, it still shows up in averages.
Tags: Salt Lake Real Estate Market| Discussion: 1 Comment »
Spanish Eclectic
April 12th, 2008 Categories: Architecture
Most common in the Southwest and Florida, Spanish-style architecture takes its cues from the missions of the early Spanish missionaries–such as the one at San Juan Capistrano in California–and includes details from the Moorish, Byzantine, Gothic, and Renaissance architectural styles. The houses usually have low-pitched tiled roofs, white stucco walls, and rounded windows and doors. Other elements may include scalloped windows and balconies with elaborate grillwork, decorative tiles around doorways and windows, and a bell tower or two.
Source Realtor.org
Tags: Salt Lake City Architecture| Discussion: No Comments »
Sellers Market, Sellers Market, Now A Waiters Market
April 5th, 2008 Categories: Real Estate News
Sellers Market
You have heard of a seller’s market. Inventory is low demand is high prices are going up. Listings are getting multiple offers, sellers are netting more than list price even after paying commissions. Things are really good for a seller.
Buyers Market
Of course to be followed by a buyer’s market. Inventory is up demand is low, buyers are getting concessions from sellers such as closing cost, down payments, appliances… Things are really good for a buyer.
Waiters Market
But this waiter’s market, I never heard of it before. This is when the seller’s market is over and inventories are high, interest rates are phenomenal, jobs are strong and yet people are waiting. You have to assume people are waiting for the prices to bottom out. No one knows when the bottom is until prices start going up and that is when interest rates start going up.
The difference between almost the bottom and the bottom is not very much money and not a long period of time. So when you see interest rates start going up it is a good sign that the bottom has already happened.
Salt Lake County Real Estate Market
Now remember Salt Lake County has three markets based on prices. The upper market $500,000 and above still has uncertainty to it, especially in the south end of the valley in places like Draper and South Jordan, Herriman areas. The $300,000 and under is not that soft of a market. The $300 - 500,000 market is patchy.
Check out the chart below, it illustrates buying at almost the bottom. Whether you buy almost at the bottom on the way down or the way up the prices really aren’t any different. The difference is how much your money is going to cost.
Now is it possible to time the bottom? Yes, but not by science or skill by luck. Remember we do not know where the bottom is till the market turns and then we can look back and say where it was.
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Shotgun
April 5th, 2008 Categories: Architecture
Tradition has it that if you fire a shotgun through the front doorway of this long, narrow home, the bullet will exit directly through the back door. The style is characterized by a single story with a gabled roof. Shotguns are usually only one room wide, with each room leading directly into the next. Exterior features include a vent on the front gable and a full front porch trimmed with gingerbread brackets and ornamentation. Mail-order plans and parts for shotgun homes were widely available at the turn-of-the-century, making it a popular, low-cost structure to build in both urban and suburban settings.
Source Realtor.org
Tags: Salt Lake City Architecture| Discussion: 2 Comments »
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