Top 10 Worst Home-Showing Offenses

1. Leftover home owners

By far, one of the top offenses cited by buyer’s agents was home owners still lingering around when agents arrived with clients to preview the home. Awkward encounters ranged from buyers finding sellers taking a shower, asleep in the bed, to even the “stalker sellers” who liked to follow buyers and the agent all over the home to see what they thought.

2. Pets and their messes
Numerous agents also cited the not-so-friendly dog and kitty encounters as a top offense. Even pets left in a crate can pose a distraction since they might make noise the entire time others are in the house. Plus, if they seem mean, the buyer might not even step in the room.

3. Bad smells
A displeasing smell can really turn buyers off. Common offenses include cooking smells lingering around the home, such as garlic, fried bacon, or fish. Also, watch for cigarette smoke and animal smells, agents say.

4. Critters running wild
Wild animals and pests roaming around is a surefire way to send buyers running. Agents described worms crawling on the floor and bats and raccoons lounging in the attic.

5. Odd home makeovers
Do-it-yourself disasters were also prevalent, like doors opening the wrong way or unprofessional paint jobs. Also, rooms not being used for their intended purposes can confuse buyers, such as an office being used as a bedroom even though it has no closet,.

6. Dirt and clutter
Dirty laundry piles, unflushed toilets, dishes on the counter or in the sink, unmade beds, clothes scattered about, soiled carpets, dirty air conditioner filters, and overflowing trash cans.

7. Personal information left in plain sight
Sellers should be careful not to leave in plain sight important documents that may pique buyers’ curiosity. Some agents say they’ve seen personal information like bank and credit card statements—even mortgage payoff notices—left on the kitchen counter.

8. Too dark
Dark or dimly lit houses aren’t showing the home in the best light.

9. Keys missing from lockboxes
All too often, agents arrive at a listing appointment with their client only to find there’s no key to get in.

10. Distracting photos
Watch the photos displayed on the walls too, agents warn. Tara Hayes, ABR, e-PRO, with Rector-Hayden, REALTORS®, in Winchester, Ky., recalls showing a family a home that had life-sized, nude photos hanging, which left her clients racing for the door covering their eyes.

Read the full article here

Realtor.org By Melissa Dittmann Tracey

Salt Lake County Second Quarter Home Sales

Exciting News! I am a Dave Ramsey Endorsed Local Provider

I am excited to announce that I am now a Dave Ramsey Endorsed Local Provider for Real Estate in Utah.


Dave Ramsey is a New York Times Best Selling author and a nationally recognized talk show host, TV personality and expert on achieving financial peace. I have been working with Dave Ramsey clients for some time and I am an advocate of his time tested strategies and financial steps. I am passionate about the mission of Dave Ramsey in helping individuals, families and businesses understand the habits and processes necessary in achieving financial independence.

Dave Ramsey's Story and The Endorsed Local Providers Program:

Every day, thousands of Americans turn to us to help connect them with professionals they can trust. Why?

We believe it’s too complicated to find trustworthy and competent investment advisors, realtors, insurance agents or tax services—too many lazy businesses, too many unfulfilled promises.

So we decided that Dave Ramsey fans deserved better. We wanted his fans to be able to quickly find an accomplished professional they can trust—a pro who gives the same, helpful advice our fans expect to hear from Dave. That’s why we created the Endorsed Local Providers (ELP) program—a network of endorsed professionals who are held accountable by members of Dave’s team and customer reviews.

What started as a service for one city has now grown to help hundreds of thousands of people across the nation. People love our simple process and the high-quality professionals we endorse.

Dave’s audience depends on us to provide reliable, trustworthy professionals who provide exceptional customer service. It’s a responsibility we take seriously every day.

Find out more about Dave Ramsey Here

The Number of Homes in Foreclosure is Falling — Especially in Utah

According to the RealtyTrac U.S. Foreclosure Market Report for September and the third quarter of 2012, the number of foreclosure filings — default notices, scheduled auctions and bank repossessions — for the Beehive State in September fell nearly 54 percent from the same month last year.


However, the number of default notices rose just under 1 percent from August 2012.

For the month, one in every 908 Utah households registered a foreclosure filing, compared to a U.S. rate of one in every 730 households.

Florida (one in 318), California (one in 361) and Illinois (one in 376) reported the highest monthly default rates, with Utah ranked at No. 16.

On a quarterly basis, Utah foreclosures dropped more than 43 percent from the previous three-month period, and 60 percent from the same quarter last year....

The report also stated that the decrease in September helped drop the third quarter foreclosure numbers to the lowest level since the fourth quarter of 2007....

...Daren Blomquist, vice president at RealtyTrac said,  “A backlog of delayed foreclosures will likely build up in some states as lenders adjust to the new rules, with many of those delayed foreclosures eventually hitting down the road.”
Jason Lee, KSL

Read the full article here

Stage your home on the cheap to get sale!

This article is from the Sunday Paper.  I wanted to sum up Lesley Mitchell's article from the Salt Lake Tribune.

...Agents will tell you that many home sellers neglect these time tested ways to help sell your home, so here is a list of do's and don'ts to help you get the most out of property.

1. GET RID OF CLUTTER-Remove 10 percent to 30 percent of the "stuff" in your home. Clean up the knick knacks. Clear off the items on your kitchen counters and remove everything from the front of your fridge. Children's rooms can be the biggest challenge. Need some inspiration? Stop by a model home. In terms of stuff, your home needs to look like that - inviting but fairly sparse on the personal effects...

2. DE-PERSONALIZE- You want buyers to be able to picture themselves in your home. Take down family photos, remove children's artwork...

3. THINK NEUTRAL - You might like bright blue paint in your kitchen...buyers however, may be put off by all the painting they are going to have to do...

4. CLEAN IT UP - Even buyers who don't keep their own homes clean want to buy something that's spic and span. So, scrub your bathrooms.  Wipe down the kitchen.  Clean your refrigerator and pantry- yes, buyers may take a peek inside...

5. DOWNPLAY THE PETS-  There's nothing quite as unappealing as a a bad smell from pets or the sight (and odor) of a litter box... keep the litter box and food bowls tucked away when people come to look at your home.

6. DON'T FORGET THE YARD- Pull weeds.  Mow your lawn.  Get rid of clutter.  Invest in a bag or two of mulch for your flower beds. 

7. BAKE A BATCH OF COOKIES-  Smells are important, and the scent of freshly baked cookies beats a store bought air freshener any day.

8. GET OUT OF THE HOUSE - Home buyers do not like the owner lurking in the background while they are trying to look.

None of these actions, of course, are not going to guarantee that you will sell your house or get more money for it. But many of them can help you avoid turning off potential buyers... and that's something worth doing.

There is still time to get a good deal!

 

There are great deals on the market.  Call me if your looking at buying a move up property, second home, or investing in the market- I am finding fantastic deals and great homes to live in long term.  I look forward to assisting you!  Justin Udy. 

Some food for thought! Good Real Estate Information

Deer Valley Mansion Owned by Hollywood Producer on the Market!

This Deer Valley mansion, owned by Hollywood producer Jeffrey Katzenberg, is on the market. It's listed at $20.5 million.   See more photos and details  www.utahrealestate.com/1103730

Salt Lake Tribune

Increase Home Value with Mature Trees and Landscaping!

Well-maintained yards can fetch a higher price and quicker sale.  Mature trees in a well-landscaped yard can increase a home's value by almost 20 percent. Towering trees on your property provide more than beauty -- they increase the value of your home.

Several recent nationwide surveys show that mature trees in a well-landscaped yard can increase the value of a house by 7 percent to 19 percent.  A  lush lawn with flower gardens is pretty, but didn't add to the value of a house, the surveys showed. Buyers love landscaping

The numbers don't surprise Pat Vredevoogd Combs, immediate past president of the National Association of Realtors. "People tell us they want trees and privacy behind," she said.

Well-landscaped yards with mature trees and bushes that provide privacy not only fetch higher prices -- they sell more quickly than houses with little or no landscaping, she said, noting that they provide the ultimate "curb appeal" by impressing buyers before they even walk into a house.

The surveys were done in 2007 by the University of Washington and the National Gardening Association. "It's a significant increase," said Charlie Nardozzi, senior horticulturist with the National Gardening Association, about the effect trees have on the value of a house. But buyers don't stop there. "People are looking at big trees, rock walls, patios -- the whole feeling," he said.

Nardozzi suggests that people reconsider when they neglect their yards to focus on renovating kitchens and bathrooms. "With housing values dropping in many areas of the country, having a beautiful landscape could make the difference between breaking even on your home and making some money on the sale of your home," he said.

Plan before you plant
A Clemson University study found that homeowners get a 100 percent or more return on the money they put into landscaping. Nardozzi advises homeowners with bare lots to start landscaping immediately because it takes 5 to 7 years for plants to mature. A good professional landscaper will look comprehensively at the site before planting.

Homeowners who decide to go it alone should get advice from a local gardening shop before planting "willy-nilly," Nardozzi says, because this often results in planting the wrong plant in the wrong location. The result can be overgrown plants that cover the windows of a house or trees with roots that buckle a driveway.

"Do your homework," Nardozzi says, because a poorly landscaped yard negates your efforts to add value to the home.


By Valerie Finholm, FrontDoor.com

Home Prices Have Risen For The First Time in 5 Years!

Salt Lake County home prices have risen for first time in five years, the Salt Lake Board of Realtors said Thursday.

The single-family median price was $214,900 in the second quarter, up 6 percent from $203,000 in the same period in 2011, the Realtors group said in releasing its quarterly statistics. The last time area home prices increased was in the second quarter of 2007, just as the real estate bubble was about to pop, when the median home price reached a peak of $256,000.

"Many homebuyers don’t realize that over the past six months the housing market has shifted to more of a seller’s market," Donna Pozzuoli, president of the Salt Lake Board of Realtors, said in a statement. "Many sellers are witnessing multiple offers and in some cases offers are coming in above asking prices."

The Salt lake Tribune

7/27/2012

July's Newsletter

click here to check out my latest newsletter!

Check out the progress on our new 4 unit subdivision!

Check out the progress on our new 4 unit subdivision!  The model is almost complete. Completion date to be in 45 days.  Check out MLS 1098743 for more details or call me 801-573-1601.

www.utahrealestate.com/1098743

Crafstman and Remodel Exteriors!

I needed some inspiration for our project and took a few photos in the Millcreek/ Holladay area.  Check it out.

Home Sales Up in Salt Lake City and Nationwide!

Consumers are buying more homes in Salt Lake City and nearly every other area of the country, the latest indication that the housing market could slowly be on the mend.

Median existing home and condo selling prices in the Salt Lake area rose 4 percent, to $195,000, in April, compared with the same month in 2011, the Salt Lake Board of Realtors reported Tuesday. The number of homes and condos that changed hands rose 15 percent, to 1,088 from April of last year.

• Positive April signals in SLC
• Median price » Up 4 percent, to $195,000
• Home-condo sales » Up 15 percent

The year-over-year increase in selling prices is the first for an April in three years, the board said. Selling prices, however, are still well off the April 2008 peak of $234,000.

Realtor DeAnna Dipo of the Salt Lake Board of Realtors said she isn’t surprised by the rise.

 "We’ve been seeing multiple offers in a lot of instances, inventory is low and demand is higher — all of those things tend to boost prices a bit." Low mortgage rates are another factor, motivating those who were waiting for the right time to buy, she added.

  

"Many buyers who were waiting to see when prices will stop falling have decided to buy now."

Nationally, sales of previously occupied rose 3.4 percent in April from March, to a seasonally adjusted annual rate of 4.62 million, the National Association of Realtors said. That nearly matches January’s pace of 4.63 million —the best in two years. It is still well below the nearly 6 million that most economists equate with healthy markets.

A pickup in hiring and cheaper mortgages, combined with lower home prices in most markets, has made home buying more attractive. Although many economists acknowledged that the market has a long way to go, most said the April sales report was encouraging. Another positive sign is that an increasing portion of those sales are from first-time buyers, who are critical to a housing recovery.

"The trend in sales is upward, and we think it has a good deal further to go over the next few months as payrolls pick up and mortgage availability improves," said Ian Shepherdson, chief U.S. economist for High Frequency Economics.

Sales rose last month from March in all regions of the country —5.1 percent rise in the Northeast, 3.5 percent in the South, 4.4 percent in the West and 1 percent in the Midwest

Salt Lake Tribune

Utah Ranks No. 3 in Housing Growth Nationwide

The U.S. Census Bureau released estimates Thursday saying that in 2011, the number of housing units in Utah were up from 979,709 to 993,060 — an increase of 13,351, or 1.36 percent.

Utah ranks No. 3 in housing growth nationwide

Utah achieved the nation’s third-fastest growth last year in housing units, including homes, apartments and condominiums. But area homebuilders and economists say growth remained slow — it was just better than other states where lingering effects of the recession are even worse.


Housing unit growth

■National average in 2011: 0.5 percent.

■Utah in 2011: 1.36 percent (No. 3 in nation).

■Highest growth in Utah: Summit County, 3.25 percent (No. 27 in nation).

■Lowest growth in Utah: San Juan County, minus 0.21 percent (meaning more housing was demolished than was built).
Source: U.S. Census Bureau

"In 2011, we had slight growth — and it was welcomed by many," said Robert Nelson, president of the Home Builders Association of Utah.  He said that homes priced between $170,000 and $230,000 "seem to be doing pretty well, but other markets seem to be slow." "I’m surprised that we ranked third. We are at very low levels" of new construction, said James Wood, director of the Bureau of Economic and Business Research at the University of Utah.

The U.S. Census Bureau released estimates Thursday showing the number of housing units in Utah were up from 979,709 in 2010 to 993,060 in 2011— an uptick of 13,351, or 1.36 percent. That was almost triple the average national growth of 0.5 percent. The only states that fared better than Utah were Wyoming, with 1.4 percent growth, and Alaska, with 1.38 percent.

Nelson said reports from other homebuilders nationally indicated to him that Utah "had a lot of homes that were foreclosed on, but maybe not as many as the other states"— helping to create a bit higher demand for new housing here.

Wood said Utah in recent years has ranked in the middle of the pack among states for foreclosures, but such homes tend to resell relatively quickly.


Read MORE here

By Lee Davidson

The Salt Lake Tribune
First Published Jun 14 2012 04:18 pm • Last Updated Jun 14 2012 11:46 pm

Discover the History of Your Salt Lake Home

Do you know who designed your home? Who had it built? What the original cost was? The folks at the Utah State Historical Society’s Office of Preservation may already have your home’s history documented. They have files on hundreds of building throughout the state, including those listed on the State and National registers. The Office of Preservation is located in the old Rio Grande depot at 300 S Rio Grande St. (450 W). Stop by, or give them a call at 801-533-3500 and they’ll let you know what type of information they have on your property. If your home has not yet been documented they have several resources available for digging up more information such as Sanborn Maps, building permit registers, tax files, and architects files. More information on researching your property is available here


SaltLakeDigs.Com

Further Proof the Real Estate Market Is Coming Back

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

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

 
 
 
 
 
 
 
 
 
 
 
 
by The KCM Crew

Steps to Get a Home Ready For Sale

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

Housing Market: About to SPRING Back

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

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

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

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

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

KCM Blog

Want a Greener Lawn Sooner?

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

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

Green Pointe Lawn Care

2500 Government Houses Up for Bulk Sale

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

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

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

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

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

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

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

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

By: Diana Olick



CNBC Real Estate Reporter

Warren Buffet AGAIN Says it is a Great Time to Buy

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

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

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

Why invest in real estate now?

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

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

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

Should we buy multiple houses?

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

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

Year-End Home Sales Highest in Three Years

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

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

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

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

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

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

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

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

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

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

Read the full article here
 
utahhousingtracker.com

Why Deals Die

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


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

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

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

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

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

by Dean Hartman on January 26, 2012

10 Surprising Reasons You Can’t Get a Home

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


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

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

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

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

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

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

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

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

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

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

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


by Ann Douglas

When the Prophet Says Buy – BUY!

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

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

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

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

Home Prices Relative to Peak Prices During the Bubble

Home Prices Relative to Construction Costs or Replacement Costs

Home Prices Relative to Incomes and Rents

Home Prices in Real Terms, Not US Dollar Terms

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


by The KCM Crew

5 Real Estate Trends to Look For in 2012

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

1. Buyers Will Return

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


2. Foreclosures Will Increase

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


3. Prices Will Soften

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

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

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


4. Short Sales Will Increase

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

5. Great Agents Will Be VERY Successful

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

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

Short Sale Vs. Foreclosure: A Short Sale Always Wins

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

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

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

Example A- Short Sale

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

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

Example B- Foreclosure

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

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

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

The Best Option is Clear

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

KCM Crew

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The 8 Healthiest Housing Markets

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

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

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

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

3. Salt Lake City, Utah

2011 Building Permit Forecast: 1,294

2012 Building Permit Forecast: 1,181

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

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

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

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

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

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

10 Ways to Stay on Budget When Remodeling

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

Real Estate is the Best Long Term Investment

What’s First? The House or the Mortgage?

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

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

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

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

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

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

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

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

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

by Dean Hartman - KMC

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

by The KCM Crew

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

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

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

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

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

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

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


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

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

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

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

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

Bottom Line....

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

Tips To Present a Stronger Mortgage Application

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

1. Income documents

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

2. Asset documents

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

3. Credit Score Optimization

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

4. Appraisal Concerns

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

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

by Dean Hartman on KMC

Did You Actually Save Money By Waiting to Buy?

by The KCM Crew on October 7, 2011

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 KSL - By Mike Anderson

Perfect Time To Buy?

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


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

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

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

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

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

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

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

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

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

Utahpulse.com