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.
| Discussion: No Comments »
International
December 20th, 2007 Categories: Architecture
Initiated by European architects–such as Mies van der Rohe–in the early 20th century, this is the style that introduced the idea of exposed functional building elements, such as elevator shafts, ground-to-ceiling plate glass windows, and smooth facades.
The style was molded from modern materials–concrete, glass, and steel–and is characterized by an absence of decoration. A steel skeleton typically supports these homes. Meanwhile, interior and exterior walls merely act as design and layout elements, and often feature dramatic, but nonsupporting projecting beams and columns. With its avant-garde elements, naturally the style appeared primarily in the East and in California.
| Discussion: No Comments »
Gothic Revival
December 10th, 2007 Categories: Architecture
The influence of English romanticism and the mass production of elaborate wooden millwork after the Industrial Revolution fueled the construction of Gothic Revival homes in the mid-1800s. These picturesque structures are marked by “Gothic” windows with distinctive pointed arches; exposed framing timbers; and steep, vaulted roofs with cross-gables. Extravagant features may include towers and verandas. Ornate wooden detailing is generously applied as gable, window, and door trim.
American architects Alexander Jackson Davis and Andrew Jackson Downing championed Gothic in domestic buildings in the 1830s. Most Gothic Revival homes were constructed between 1840 and 1870 in the Northeast.
| Discussion: No Comments »
Utah Real Estate Purchase Contract REPC
December 6th, 2007 Categories: Selling
Utah Forms For Selling Real Estate
When selling Real Property in Utah the standard form to use is called Real Estate Purchase Contract. a.k.a. the REPC (pronounced Rep-See).
This is the form that Licensed Real Estate Agents must use, buyer and sellers may use any form they choose however if there is a Real Estate agent involved then this is the form. This form is approved by the Utah real estate commission and the office of the Utah attorney general, effective august 5, 2003. It replaces and supersedes all previously approved versions of this form.
It is actually a very good document and covers most circumstances that could arise. It is a very win-win and allows a buyer and seller to enter into an agreement to sell-buy real property and allows the buyer to do their diligence with deadlines. It covers things like inspection, appraisal, loan and remedies for defaults.
To download a copy of the Real Estate Purchase Contract.
Everything must be in writing no matter how much you know or like someone or how nice they seem.
Remember “Money Changes Everything“.
| Discussion: No Comments »
Cottonwood Heights Trying To Decide Whether To Police Themself
November 28th, 2007 Categories: Real Estate News
The City Of Cottonwood Heights is trying to decide whether to create their own police force or continue to contract with the Salt Lake County Sheriff’s Office.
According to the City of Cottonwood Heights Web Site, there have been abuses of the contract and it seems they feel the city would be better served on there own. The reasons are the same as the reasons were to incorporate in the first place, to control how the taxes are spent.
Read all about it at the City of Cottonwood Heights Web Site
| Discussion: No Comments »
Average Home Sales For Salt Lake County
November 14th, 2007 Categories: Real Estate News
This graph tells some good things, the number of listings, number of sales and the average home sales for Salt Lake County by quarters.
Number of listings shown by the green line has maintained a pretty consistent with seasonal ups and downs, till 3rd quarter of ‘06, then the inventory started to climb to an all time high.
Total number of sales shown by the red line has stayed pretty consistent also with it’s seasonal ups and downs.
The Price of the Average Home Sales For Salt Lake County have consistently rose since the 3rd quarter of ‘03 with two minor drops, one for a $100 dollars and another time dropped $500 dollars.
Remember when you want real estate information seek out a real estate professional, someone that has been in the business for a complete cycle.
Average Home Sales per Quarter
Salt Lake County
Last Updated: October 20 2007 02:09:13
| Discussion: 2 Comments »
Salt Lake Real Estate Absorption Rate
November 14th, 2007 Categories: Real Estate News
Here is the Salt Lake Real Estate Absorption rate.
We have some segments that are doing well and others that are not moving.
To understand the Salt Lake Real Estate Absorption Rate, you simply divided the number of active listings by the number of homes that have sold in the previous month. For example the $120,000-139,999 range. There are 122 active listings and in the month of October there were 53 closings. Divide 122/53 and you get 2.3 months supply. Mean if no other homes came on the market it would take 2.3 months to absorb the current inventory.
The key is, the ones that are priced right are selling and the rest are not. See the graph for The Tale of Two Markets Based on the data from a prior post. The days on the market for priced correctly and that are in good condition is fairly short.
|
List Price Range |
# Listings Active |
# Listings Sold in October |
Months Supply |
||
|
$0 |
- |
$9,999 |
3 |
0 |
??? |
|
$10,000 |
- |
$19,999 |
4 |
0 |
??? |
|
$20,000 |
- |
$29,999 |
5 |
4 |
1.25 |
|
$30,000 |
- |
$39,999 |
6 |
4 |
1.50 |
|
$40,000 |
- |
$49,999 |
12 |
2 |
6.00 |
|
$50,000 |
- |
$59,999 |
8 |
3 |
2.67 |
|
$60,000 |
- |
$69,999 |
6 |
6 |
1.00 |
|
$70,000 |
- |
$79,999 |
12 |
3 |
4.00 |
|
$80,000 |
- |
$89,999 |
9 |
5 |
1.80 |
|
$90,000 |
- |
$99,999 |
12 |
4 |
3.00 |
|
$100,000 |
- |
$119,999 |
53 |
16 |
3.31 |
|
$120,000 |
- |
$139,999 |
122 |
53 |
2.30 |
|
$140,000 |
- |
$159,999 |
225 |
79 |
2.85 |
|
$160,000 |
- |
$179,999 |
399 |
87 |
4.59 |
|
$180,000 |
- |
$199,999 |
520 |
97 |
5.36 |
|
$200,000 |
- |
$249,999 |
1,226 |
207 |
5.92 |
|
$250,000 |
- |
$299,999 |
1,179 |
157 |
7.51 |
|
$300,000 |
- |
$349,999 |
854 |
91 |
9.38 |
|
$350,000 |
- |
$399,999 |
677 |
52 |
13.02 |
|
$400,000 |
- |
$449,999 |
462 |
25 |
18.48 |
|
$450,000 |
- |
$499,999 |
423 |
22 |
19.23 |
|
$500,000 |
- |
$599,999 |
560 |
27 |
20.74 |
|
$600,000 |
- |
$699,999 |
351 |
17 |
20.65 |
|
$700,000 |
- |
$799,999 |
228 |
7 |
32.57 |
|
$800,000 |
- |
$899,999 |
120 |
8 |
15.00 |
|
$900,000 |
- |
$999,999 |
99 |
3 |
33.00 |
|
$1,000,000 |
- |
$1,249,999 |
88 |
6 |
14.67 |
|
$1,250,000 |
- |
$1,499,999 |
76 |
0 |
??? |
|
$1,500,000 |
- |
$1,749,999 |
28 |
0 |
??? |
|
$1,750,000 |
- |
$1,999,999 |
41 |
1 |
41.00 |
|
$2,000,000 |
- |
$2,499,999 |
28 |
1 |
28.00 |
|
$2,500,000 |
- |
$2,999,999 |
18 |
1 |
18.00 |
|
$3,000,000 |
- |
$3,999,999 |
14 |
0 |
??? |
|
$4,000,000 |
- |
$4,999,999 |
5 |
0 |
??? |
|
$5,000,000 |
- | and over |
12 |
0 |
??? |
| Discussion: No Comments »
How To Evaluate An Income Property
November 11th, 2007 Categories: Investing
Cap Rate
We hear many different ways to evaluate rental property. The one method that is the most effective is called the Capitalization Rate, affectionately called the Cap Rate.
I have heard many variations of the cap rate, things like 100 times the rent. That is called the rent multiplier, takes the rent and times it by say 120. The problem with that approach is it doesn’t account for expense variations. It is a good rule of thumb measure to see if it is worth drilling down.
Are you ready for the unequivocal simple version of the Cap Rate, drum roll please?
Income, Minus Expenses, Divided By The Sales Price, Equals Rate of Return. It really is that simple. Always use annual numbers.
| Gross Income | $18,000 |
| Minus Expenses | $3,600 |
| = Net Income | $14,400 |
| Divided By Sales Price | $200,000 |
| = Rate Of Return | 7.2% |
Property evaluations are based on cash purchases. When you leverage a property that is a different equation and has more factors than evaluating just the property, remember we are evaluating the property. If you are going to leverage a property, the property must perform at a higher interest rate than what you can borrow at.
Click for full functioning Excel Spread Sheet
Now the trick is getting real income and expenses on a piece of property you don’t own. Remember the seller’s motivation is the highest price. So based on the above formula, they like to overstate income and understate expenses.
When purchasing an income property the surest way to get the most accurate information is, for income use a tenant landlord estoppel letter. This letter is signed by both parties stating the basic terms of the lease, start date, end date, monthly payment, how much security deposit and where is it, that the tenant is current. Compare the letters to the leases and now you have your income.
As for expenses, if you really want to know how much a property owner has spent ask for a copy of the Schedule E of their tax returns. You know they didn’t leave anything out there.
Here are some things to consider when looking at the expenses.
How Many Utility meters are there?
How old is the-
Roof
Furnaces
Water Heaters
| Discussion: 5 Comments »
Run Don’t Walk To Magna The Last Affordable Frontier In Salt Lake County
October 30th, 2007 Categories: Magna
Run Don’t Walk To Magna The Last Affordable Frontier In Salt Lake County
Magna is located right off of highway 201 and you can be down town Salt Lake City in 15 minutes and to the airport in 10 minutes easy.
Magna is little town that is different than most Salt Lake City Suburbs. Magna has some really cool old buildings on Main St. It has affordable housing and is home to the Kennecott Copper Mine Smelter.
Magna is going through some changes, it is growing. Main Street is getting some much needed face lifts and new businesses are starting to go there. The Empress Theater is going in full swing with the Mystery Of Edwin Drood, very affordable entertainment.
Magna has Brand New Single Family Homes that you can buy for under $250,000 and yes this is not a misprint there are a few BRAND NEW HOMES UNDER $200,000.
Click to view Magna Homes for Sale
| Discussion: No Comments »
Grant Money For Salt Lake Home Buyers
October 24th, 2007 Categories: FHA, Mortgage
Cindee Stone called me and said that the grants had been funded and there was money to be had. In the hectic day of helping families move around the country, that is a call I don’t mind getting. So I asked her a few specific questions about grants because she is the grant queen.
1) What is a grant?
A down payment assistance grant is not free money. Depending on what city you get the grant from will determine if you have to pay it back at some time or if it is forgiven. For instance, in Taylorsville they have a $5000.00 grant and if you live in that home for 5 years it is forgiven. If you get a grant in Magna for $10,000 it is forgiven after 15 years. But, if you get a grant where there is not a city grant available and we use the federal grant which is up to $10,000, it is never forgiven. But, you will only need to pay it back only if you sell the home, refinance and take cash out or take out a 2nd mortgage. So, they are all different depending on the city.
The grant will go in as a silent 2nd mortgage where no interest will accrue and no payment is due.
2) How much can I get?
The grants start at $5000 and can go up to $15,000. There are restrictions on each one, so you would need to call for more details.
3) What can the money be used for?
The money can only be used for down payment and closing cost only.
4) What restrictions are there?
First, there are restrictions on income. There is a scale that is used and depending on how many people are in your family, will determine how much they will allow you to make.
You have to be a first time homebuyer (this includes people who have not owned a home in the last 3 years) or recently divorced.
You also have to have $500.00 of your own money involved in the transaction.
There are other guidelines, but these are the basics. The other guidelines will apply to which grant you are going for and which city.
5) Is it all of Salt Lake?
We currently have money in all cities and counties in Salt Lake Valley. We even have money in Utah county (expect Provo and American Fork)
6) How do I get it?
Me! I will help you determine how much and if you can qualify. I will also assist you in filling out the application and submitting your paperwork. This is all part of the service that I offer to my borrowers.
| Discussion: 1 Comment »
Copyright © 2007 Salt Lake Real Estate Blog Agent Login Design by Real Estate Tomato Powered by Tomato Blogs