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
Thursday, December 29, 2011
Tuesday, December 20, 2011
And the winner of the iPad is......
Tuesday, December 13, 2011
Tuesday, December 6, 2011
Friday, December 2, 2011
Wednesday, November 30, 2011
We are #5 and #8 on the List for Best Cities to Start Over in!
#8, Provo, Utah
Median income: $66,200
Cost of living score (average=100): 90.2
Student-friendly rank: N/A
Independent business score (average=100): 101.3
Unemployment: 6.6%
#5, Ogden, Utah
Nasa Videographer / Flickr
Median income: $70,600
Cost of living score (average=100): 90.5
Student-friendly rank: N/A
Independent business score (average=100): 99.2
Unemployment: 6.9%
READ THE COMPLETE STORY HERE
Wednesday, November 23, 2011
Tuesday, November 15, 2011
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.
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.
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.
Tuesday, November 8, 2011
10 Ways to Stay on Budget When Remodeling
- Plan cautiously. Make all the changes you want on paper; they're expensive later.
- Prioritize. Decide where to economize and where to focus your funds.
- Shop critically. Avoid one stop shopping; you may end u paying too much for the convenience.
- Stick to standard and stock choices. Find out how much special finishes and colors will add to your costs.
- Understand the differences in materials. Consider long term value as well as initial cost.
- Don't be swayed by status. Does that stylish product really suit your needs? And will you still like it next year?
- Refurbish and recycle. Can you reuse windows, doors, appliances, and other equipment instead of replacing them?
- Keep the structural framework. Before adding on, explore the more economical possibility of reconfiguring the existing space.
- Pay for professional advice: A skilled designer of architect can help stretch your budget.
- Do some of the work yourself but take care not to overestimate your zeal or skill.
Monday, November 7, 2011
Wednesday, November 2, 2011
Monday, October 24, 2011
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
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
Monday, October 17, 2011
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.
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.
Tuesday, October 11, 2011
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
Tuesday, September 27, 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
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
Thursday, September 22, 2011
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
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
Wednesday, September 14, 2011
Bank Of America Stops Filling Mortgage Default Notices in Salt Lake County
Bank of America stopped filing foreclosure default notices in Salt Lake County earlier this month, but its attorney argued in court Thursday that it still has the legal right to do so.
The seeming contradiction wasn’t explained by the bank, though the halt in filing of notices of default in county property records apparently comes ahead of a pending agreement with the Utah Attorney General’s Office to end the practice state attorneys consider illegal.
Gary Ott, the Salt Lake County recorder whose office keeps official property records, confirmed Thursday that ReconTrust, the foreclosure arm of Bank of America, has not filed a default notice since earlier this month. That appears to mean the banking giant stopped the procedure after a letter from the A.G.’s Office saying that ReconTrust does not qualify to carry out foreclosures under Utah law.
North Carolina-based Bank of America did not return several emails seeking an explanation. Its attorney, William Boland, also declined to comment after a Thursday court hearing in Salt Lake City.
But in the hearing in federal court Boland said that a proposed class action lawsuit against ReconTrust and Bank of America should be dismissed because federal bank laws preempts a Utah law that says only Utah attorneys and title companies can carry out foreclosure filings and sales.
"Those laws allow ReconTrust to exercise the powers of foreclosure," he told U.S. District Judge Dee Benson.
Salt Lake City attorney Craig Smay, who filed the lawsuit, tried to counter Boland’s argument that because ReconTrust is competing with title companies for business federal law allows it to carry out foreclosures just like the title companies do.
Responding to a series of questions by Benson, Smay said ReconTrust is not a competitor to Utah title companies.
By Tom Harvey
The Salt Lake Tribune
The seeming contradiction wasn’t explained by the bank, though the halt in filing of notices of default in county property records apparently comes ahead of a pending agreement with the Utah Attorney General’s Office to end the practice state attorneys consider illegal.
Gary Ott, the Salt Lake County recorder whose office keeps official property records, confirmed Thursday that ReconTrust, the foreclosure arm of Bank of America, has not filed a default notice since earlier this month. That appears to mean the banking giant stopped the procedure after a letter from the A.G.’s Office saying that ReconTrust does not qualify to carry out foreclosures under Utah law.
North Carolina-based Bank of America did not return several emails seeking an explanation. Its attorney, William Boland, also declined to comment after a Thursday court hearing in Salt Lake City.
But in the hearing in federal court Boland said that a proposed class action lawsuit against ReconTrust and Bank of America should be dismissed because federal bank laws preempts a Utah law that says only Utah attorneys and title companies can carry out foreclosure filings and sales.
"Those laws allow ReconTrust to exercise the powers of foreclosure," he told U.S. District Judge Dee Benson.
Salt Lake City attorney Craig Smay, who filed the lawsuit, tried to counter Boland’s argument that because ReconTrust is competing with title companies for business federal law allows it to carry out foreclosures just like the title companies do.
Responding to a series of questions by Benson, Smay said ReconTrust is not a competitor to Utah title companies.
By Tom Harvey
The Salt Lake Tribune
Tuesday, August 30, 2011
MORE GREAT JOBS FOR UTAH
We are thrilled to report on eBay's decision to expand its existing operations in Draper by building a $110 million state-of-the-art facility there. The company will add up to 2,200 employees and pay 125% of the average wage in Salt Lake County.
This is a fantastic development and certainly emphasizes eBay's confidence in Utah's economic future. eBay is a world-class company, an excellent corporate citizen, and will add significantly to Utah's strong technology sector.
eBay currently employs approximately 1,400 people in Utah with its customer service center and data center, in Draper and South Jordan respectively. This project was assisted by the Governor's Office of Economic Development (GOED), Salt Lake County, Draper City, and Rocky Mountain Power.
EDCUtah's annual meeting is coming up October 12. We hope you are planning now to attend. You can secure your company's sponsorship by calling Art Franks, (801) 323-4242. This is sure to be an exciting and informative event. You'll not only learn about our economic development activities from the past fiscal year, but will also hear a keynote address by Wayne Rogers, author of "Make Your Own Rules." He's also an acclaimed actor, television personality and economic adviser. I hope to see you there!
This is a fantastic development and certainly emphasizes eBay's confidence in Utah's economic future. eBay is a world-class company, an excellent corporate citizen, and will add significantly to Utah's strong technology sector.
eBay currently employs approximately 1,400 people in Utah with its customer service center and data center, in Draper and South Jordan respectively. This project was assisted by the Governor's Office of Economic Development (GOED), Salt Lake County, Draper City, and Rocky Mountain Power.
EDCUtah's annual meeting is coming up October 12. We hope you are planning now to attend. You can secure your company's sponsorship by calling Art Franks, (801) 323-4242. This is sure to be an exciting and informative event. You'll not only learn about our economic development activities from the past fiscal year, but will also hear a keynote address by Wayne Rogers, author of "Make Your Own Rules." He's also an acclaimed actor, television personality and economic adviser. I hope to see you there!
Tuesday, August 23, 2011
Salt Lake City is on the list again!
The 10 happiest towns in the West
Salt Lake City made Sunset Magazine's CAPTION Sunset Magazine "Can where you live make you happy? And if so, who's to say what happiness is?"
We won't go down that existential path. And neither does Sunset Magazine in its February issue (out now). Instead, the article hedges its bets, declaring "…the happiest place is where we can find the things that matter most to us."
And that could mean anything from starting a business to living off the grid.
Coincidentally, Oprah on Wednesday featured a segment annointing San Luis Obispo, Calif., America's Happiest City. (It didn't make Sunset's list.) A giddy chamber of commerce, perhaps anticipating a tourism windfall from the so-called "Oprah effect," hosted a viewing party. The coastal college town was the only U.S. location to get a nod in the book Thrive, published last year, which pinpointed the world's happiest spots.
Here's the magazine's top 10 list with the outstanding quality that make these places so appealing to certain types.
Salt Spring Island, B.C. (population 10,000; median house price: $569,300) for wannabe farmers/gardeners. The 74-square-mile island's temperate climate makes year-round gardening possible.
Salt Lake City (population: 182,000; median house price $213,000) for aspiring entrepreneurs. Low corporate tax rates and an educated workforce, among other factors, make this an attractive spot to start a business.
Taos, N.M. (population 5,500; median house price $268,250) for those seeking a vacation home. Year-round recreation and limited housing makes this a good bet for second-home owners looking to rent out their dwelling.
Portland, Ore. (population 582,000; median house price $233,500) for people who prefer to go car-less. The city has a vibrant cycling culture with 300 miles of dedicated bike paths and lanes. And for longer jaunts, there's excellent public transportation.
Bellingham, Wash. (population 77,500; median house price $305,000) for outdoor recreationists. With 143 miles of Puget Sound shoreline in one direction and the Cascade Mountains in the other, there's outside action year round.
Eureka, Calif. (population 25,000; median house price $207,000) for aspiring artists. Art is taken seriously in a town that's home to more than 1,000 artists.
San Diego (population 1.37 million; median house price $330,000) for innovators. From pioneering computer technology to decoding the human genome, all kinds of cutting-edge endeavors are happening here.
Sonoma County, Calif. (population 472,000; median house price $484,000) for gourmands. With more than 300 wineries and a plethora of great restaurants, the area is a foodie's paradise.
Scottsdale, Ariz. (population 235,000; median house price $270,000) for parents of young kids. Low crime, good schools and lots of park land make it a good choice for raising a family.
Crestone, Colo. (population 146; median house price $250,000) for people who want to live off the grid. With 330 sunny days a year, this former mining town is a hotbed of solar power.
By Jayne Clark, USA TODAY
Salt Lake City made Sunset Magazine's CAPTION Sunset Magazine "Can where you live make you happy? And if so, who's to say what happiness is?"
We won't go down that existential path. And neither does Sunset Magazine in its February issue (out now). Instead, the article hedges its bets, declaring "…the happiest place is where we can find the things that matter most to us."
And that could mean anything from starting a business to living off the grid.
Coincidentally, Oprah on Wednesday featured a segment annointing San Luis Obispo, Calif., America's Happiest City. (It didn't make Sunset's list.) A giddy chamber of commerce, perhaps anticipating a tourism windfall from the so-called "Oprah effect," hosted a viewing party. The coastal college town was the only U.S. location to get a nod in the book Thrive, published last year, which pinpointed the world's happiest spots.
Here's the magazine's top 10 list with the outstanding quality that make these places so appealing to certain types.
Salt Spring Island, B.C. (population 10,000; median house price: $569,300) for wannabe farmers/gardeners. The 74-square-mile island's temperate climate makes year-round gardening possible.
Salt Lake City (population: 182,000; median house price $213,000) for aspiring entrepreneurs. Low corporate tax rates and an educated workforce, among other factors, make this an attractive spot to start a business.
Taos, N.M. (population 5,500; median house price $268,250) for those seeking a vacation home. Year-round recreation and limited housing makes this a good bet for second-home owners looking to rent out their dwelling.
Portland, Ore. (population 582,000; median house price $233,500) for people who prefer to go car-less. The city has a vibrant cycling culture with 300 miles of dedicated bike paths and lanes. And for longer jaunts, there's excellent public transportation.
Bellingham, Wash. (population 77,500; median house price $305,000) for outdoor recreationists. With 143 miles of Puget Sound shoreline in one direction and the Cascade Mountains in the other, there's outside action year round.
Eureka, Calif. (population 25,000; median house price $207,000) for aspiring artists. Art is taken seriously in a town that's home to more than 1,000 artists.
San Diego (population 1.37 million; median house price $330,000) for innovators. From pioneering computer technology to decoding the human genome, all kinds of cutting-edge endeavors are happening here.
Sonoma County, Calif. (population 472,000; median house price $484,000) for gourmands. With more than 300 wineries and a plethora of great restaurants, the area is a foodie's paradise.
Scottsdale, Ariz. (population 235,000; median house price $270,000) for parents of young kids. Low crime, good schools and lots of park land make it a good choice for raising a family.
Crestone, Colo. (population 146; median house price $250,000) for people who want to live off the grid. With 330 sunny days a year, this former mining town is a hotbed of solar power.
By Jayne Clark, USA TODAY
Monday, August 22, 2011
Salt Lake Makes List of the Top 10 Best Markets
Record affordability provides rare window of opportunity for house-hunting investors.
In an in-depth, data-driven special report, "10 Best Markets for Real Estate Investors," Inman News analyzed hundreds of housing markets nationwide to develop a list of those that may be best suited for investors.
The full report -- available at no charge - took into account economic, housing and demographic data from sources including median sales price data from CoreLogic, loan data from Lender Processing Services, foreclosure sales and discounts statistics from Realty Trac, InvestorScores from SmartZip, walkability scores from Walk Score, and population and unemployment data from the U.S. Census Bureau and the Bureau of Labor Statistics.
The data analyzed suggested that the 10 best markets for investors are: Indianapolis-Carmel, Ind.; Winchester, Va.-W.Va.; Gainesville, Fla.; Tucson, Ariz.; Tallahassee, Fla.; Hagerstown-Martinsburg, Md.-W.Va.; Salt Lake City; Richmond, Va.; Gainesville, Ga.; and Winston-Salem, N.C.
Seven out of the 10 markets are in the South, two are in the West, and one is in the Midwest. None of the markets are in the Northeast.
The results of the analysis reflect population growth and improving employment. In the past decade, the South has seen the biggest jump in population -- up 14.3 percent to about 114 million people -- and the West saw 13.8 percent population growth, to nearly 72 million.
Four of the top 10 markets are state capitals and at least three others benefit from proximity to either a state capital or the national capital.
Despite recent job growth, unemployment is still high across the country, and in many markets foreclosures have turned homeowners into renters. Affordability is at a record high, but as home prices continue to fall in many markets, some buyers are staying on the sidelines waiting for the market to bottom.
Investors accounted for 21 percent of transactions in the first three months of 2011, and 33 percent of transactions during that period involved cash buyers -- the highest share since NAR began tracking that statistic at the end of 2008.
By contrast, first-time homebuyers have accounted for an average 32 percent of purchases for the past two quarters, which is the lowest share since fourth-quarter 2008.
Distressed property sales including foreclosures and short sales accounted for 40 percent of existing-home sales in March, NAR said, and investors bought 54 percent of those properties, according to economic research firm Capital Economics.
Only 39 percent of investors used a mortgage to finance their purchase in 2010, compared with 80 percent of primary-home buyers, according to NAR's 2011 Investment and Vacation Home Buyers Survey.
The survey showed that the biggest proportion of investors bought their property through a real estate agent (44 percent). Another 20 percent bought directly from an owner they knew, and 17 percent bought through a foreclosure or trustee sale.
The most popular reason cited by investors for buying an investment property was to rent it out, followed by "to diversify investments/good investment opportunity."
The median length of time investors planned to own their purchase was 10 years. More than half of investor buyers (52 percent) said it was at least "somewhat likely" that they would buy another vacation or investment property in the next two years.
Investors tended to be more confident about the housing market than primary homebuyers: 77 percent of investors said "now is a good time to purchase real estate," compared with 68 percent of primary-home buyers.
Read the full report
Inman News - By Andrea V. Brambila
Tuesday, August 16, 2011
Money Magazine: 2 Utah Cities As Some Of The Best Places To Live!
FARMINGTON
Top 100 rank: # 12
Population: 18,300
This friendly town near the Great Salt Lake lies 20 minutes from Salt Lake City’s job and cultural opportunities. More Small Town USA than suburb, Farmington is safe and quiet. That’s not to say it’s no fun: in the center of town is Lagoon, a 125-year-old amusement park that attracts visitors from all over Utah. The town has a mix of expensive turn-of-the-century houses and more affordable homes; a typical three-bedroom ran around $180,000 in mid-2011. What’s more, Farmington’s taxes are low, yet the town is in excellent financial shape
NORTH SALT LAKE
Top 100 rank: # 23
Population: 13,800
In this friendly community with easy access to Salt Lake City, running out of sugar rarely means a trip to the store. Instead, residents pop over to the neighbors’ for a chat and a cup of sugar. Jobs can be had at several small businesses in town (or, of course, in the city). Outdoor activities such as biking and in-line skating are big here, and a 13-acre park for community gatherings has just been constructed. What’s missing is a downtown area to call their own, residents say--but city officials are looking into creating one.
Source : Money Magazine
Top 100 rank: # 12
Population: 18,300
This friendly town near the Great Salt Lake lies 20 minutes from Salt Lake City’s job and cultural opportunities. More Small Town USA than suburb, Farmington is safe and quiet. That’s not to say it’s no fun: in the center of town is Lagoon, a 125-year-old amusement park that attracts visitors from all over Utah. The town has a mix of expensive turn-of-the-century houses and more affordable homes; a typical three-bedroom ran around $180,000 in mid-2011. What’s more, Farmington’s taxes are low, yet the town is in excellent financial shape
NORTH SALT LAKE
Top 100 rank: # 23
Population: 13,800
In this friendly community with easy access to Salt Lake City, running out of sugar rarely means a trip to the store. Instead, residents pop over to the neighbors’ for a chat and a cup of sugar. Jobs can be had at several small businesses in town (or, of course, in the city). Outdoor activities such as biking and in-line skating are big here, and a 13-acre park for community gatherings has just been constructed. What’s missing is a downtown area to call their own, residents say--but city officials are looking into creating one.
Source : Money Magazine
Monday, August 15, 2011
QR Codes Are Averywhere! Even On a Tombstone!
When Edouard Garneau died last August, his wife of 53 years ordered a bench-style tombstone.
"I go and talk with him," said Faye Garneau, who admits she isn't so sure she likes that her own name is already inscribed there, too.
That wasn't all: Several months later, the monument maker added a high-tech innovation — a small, square image known as a quick response or QR code, affixed alongside the big letters spelling out Garneau.
The monument maker — a friend — was working on the code before Garneau died of cancer at age 78.
People scanning the code with their smartphones are taken to a website that includes Garneau's obituary and a photo gallery highlighting the Seattle-area businessman. They learn he was a collision auto body repair expert, a world traveler and a loving uncle. In the future, more photos and stories from family and friends can be added.
Faye Garneau recently added a QR code to the gravestone bench memorializing her husband Ed Garneau at Holyrood Cemetery in Shoreline, Wash.
"I think it's a neat deal," Faye Garneau said. "It kind of keeps people alive a little longer, down through the generations."
When scanned with a smart phone's QR reader, code on Ed Garneau's tombstone takes users to a web site memorializing him in words and pictures.
The Seattle-based tombstone company is one of many new adopters of quick response or QR codes that also includes, a Florida nature trail and a T-shirt maker.
New uses for the technology are popping up almost daily, said Shane Greenstein, a professor at Northwestern University in Evanston, Ill., who studies IT markets. That's because "the bugs are worked out" from the code, which was created in Japan in the early 1990s, Greenstein said, adding that "there's no licensing fee; there are no restrictions. Users are free to think creatively." And, they are.
In Seattle, Quiring Monuments has made code-adorned "living headstones" for about two months. It has sold about 30 so far, General Manager Jon Reece said, adding he's gotten "tons" of inquiries, often from people still very much alive: "They say, 'I want my story to be told the way I want it to be told.'"
Quiring Monuments offers the QR code, website and website hosting free to people buying new monuments from the company, Reece said, noting the company will add it to existing grave markers for $65.
On Sanibel Island, Fla., the J.N. "Ding" Darling National Wildlife Refuge unveiled QR code signs last month along Wildlife Drive, on which nearly 800,000 visitors a year travel by car, foot or bicycle.
"It was nice and easy," said 13-year-old Tom Garvey of Delran, N.J., who put his iPhone — an eighth-grade graduation gift — to use on the trail. The refuge's iNature Trail sports 10 signs, each with two QR codes — one that pulls up videos and educational websites for adults, and another that's tailored to children.
"We wanted to find that niche to get kids outdoors and excited about nature," said refuge ranger Toni Westland. The videos feature snippets about ospreys, alligators and other creatures living along the mangrove forest-dotted estuaries of the 6,400-acre refuge.
Newspapers, including USA TODAY, use the codes to direct readers to such items as videos and photos.
A multitude of uses
Examples elsewhere include:
•Boulder, Colo., acoustic rock band SoundRabbit sells or hands out T-shirts with codes that take smartphones to free music downloads, said Chris Anton, band member, shirt creator and website design company co-owner.
•Lafayette, N.J.-based Fuzzy Nation, a designer and wholesaler of gifts for dog lovers, for the first time is putting QR codes on hangtags on its products sold at Macy's department stores nationwide, said Fuzzy Nation owner Jennifer Liu. The scanned code helps people enter a contest that began July 11. The contest promotes pet adoption and will earn one shelter a $10,000 stipend.
•Organizers of the Chevrolet Fireball Run Adventurally, from Sept. 23 through Oct. 1, say it will be the first national motoring event to use QR codes. For this year's multistate run though the South, competition cars will sport decals with codes. And, driving teams will distribute missing-child posters with codes. The scanned codes aid people with crucial information to share with the National Center for Missing & Exploited Children, said J. Sanchez, event executive producer.
•Kansas City, Mo.-based mobile tech marketing firm Kickanotch sends code-imprinted frosted graham crackers to new clients as a "thank you" and to take them to a website offering more ideas for the codes, CEO Andy Lynn said.
•Trinity Baptist Church in Lake Charles, La., is using QR codes in its bulletins and posters to encourage sign-ups for special family and youth programs, said Steven Haney, church media director.
Real estate sales agent Marilyn Boudreaux did a double take when spying a code for the first time in the church's bulletin: "I was like, wow — we are with the times." Her discovery occurred shortly after the worship service began. That made the QR code a temptation, Boudreaux said: "I wanted to pull out my phone, and scan it."
By Andy Rogers, Red Box Pictures for USA TODAY
"I go and talk with him," said Faye Garneau, who admits she isn't so sure she likes that her own name is already inscribed there, too.
That wasn't all: Several months later, the monument maker added a high-tech innovation — a small, square image known as a quick response or QR code, affixed alongside the big letters spelling out Garneau.
The monument maker — a friend — was working on the code before Garneau died of cancer at age 78.
People scanning the code with their smartphones are taken to a website that includes Garneau's obituary and a photo gallery highlighting the Seattle-area businessman. They learn he was a collision auto body repair expert, a world traveler and a loving uncle. In the future, more photos and stories from family and friends can be added.
Faye Garneau recently added a QR code to the gravestone bench memorializing her husband Ed Garneau at Holyrood Cemetery in Shoreline, Wash.
"I think it's a neat deal," Faye Garneau said. "It kind of keeps people alive a little longer, down through the generations."
When scanned with a smart phone's QR reader, code on Ed Garneau's tombstone takes users to a web site memorializing him in words and pictures.
The Seattle-based tombstone company is one of many new adopters of quick response or QR codes that also includes, a Florida nature trail and a T-shirt maker.
New uses for the technology are popping up almost daily, said Shane Greenstein, a professor at Northwestern University in Evanston, Ill., who studies IT markets. That's because "the bugs are worked out" from the code, which was created in Japan in the early 1990s, Greenstein said, adding that "there's no licensing fee; there are no restrictions. Users are free to think creatively." And, they are.
In Seattle, Quiring Monuments has made code-adorned "living headstones" for about two months. It has sold about 30 so far, General Manager Jon Reece said, adding he's gotten "tons" of inquiries, often from people still very much alive: "They say, 'I want my story to be told the way I want it to be told.'"
Quiring Monuments offers the QR code, website and website hosting free to people buying new monuments from the company, Reece said, noting the company will add it to existing grave markers for $65.
On Sanibel Island, Fla., the J.N. "Ding" Darling National Wildlife Refuge unveiled QR code signs last month along Wildlife Drive, on which nearly 800,000 visitors a year travel by car, foot or bicycle.
"It was nice and easy," said 13-year-old Tom Garvey of Delran, N.J., who put his iPhone — an eighth-grade graduation gift — to use on the trail. The refuge's iNature Trail sports 10 signs, each with two QR codes — one that pulls up videos and educational websites for adults, and another that's tailored to children.
"We wanted to find that niche to get kids outdoors and excited about nature," said refuge ranger Toni Westland. The videos feature snippets about ospreys, alligators and other creatures living along the mangrove forest-dotted estuaries of the 6,400-acre refuge.
Newspapers, including USA TODAY, use the codes to direct readers to such items as videos and photos.
A multitude of uses
Examples elsewhere include:
•Boulder, Colo., acoustic rock band SoundRabbit sells or hands out T-shirts with codes that take smartphones to free music downloads, said Chris Anton, band member, shirt creator and website design company co-owner.
•Lafayette, N.J.-based Fuzzy Nation, a designer and wholesaler of gifts for dog lovers, for the first time is putting QR codes on hangtags on its products sold at Macy's department stores nationwide, said Fuzzy Nation owner Jennifer Liu. The scanned code helps people enter a contest that began July 11. The contest promotes pet adoption and will earn one shelter a $10,000 stipend.
•Organizers of the Chevrolet Fireball Run Adventurally, from Sept. 23 through Oct. 1, say it will be the first national motoring event to use QR codes. For this year's multistate run though the South, competition cars will sport decals with codes. And, driving teams will distribute missing-child posters with codes. The scanned codes aid people with crucial information to share with the National Center for Missing & Exploited Children, said J. Sanchez, event executive producer.
•Kansas City, Mo.-based mobile tech marketing firm Kickanotch sends code-imprinted frosted graham crackers to new clients as a "thank you" and to take them to a website offering more ideas for the codes, CEO Andy Lynn said.
•Trinity Baptist Church in Lake Charles, La., is using QR codes in its bulletins and posters to encourage sign-ups for special family and youth programs, said Steven Haney, church media director.
Real estate sales agent Marilyn Boudreaux did a double take when spying a code for the first time in the church's bulletin: "I was like, wow — we are with the times." Her discovery occurred shortly after the worship service began. That made the QR code a temptation, Boudreaux said: "I wanted to pull out my phone, and scan it."
By Andy Rogers, Red Box Pictures for USA TODAY
Monday, August 8, 2011
Why They Are Saying to Buy A Home Now
Despite what appears to be a non-stop wave of tough news regarding real estate, four major media players have come out this month with the same advice: It Is Time to Buy a Home! Here are the four articles and a breakdown as to why the advice makes sense.
The Wall Street Journal: Why It’s Time to Buy
CBS Money Watch: Why the Time to Buy is Now
Forbes Magazine: 9 Reasons to Buy a House Now
National Public Radio: For Many, It’s Still a Good Time to Buy a Home
With prices continuing to depreciate in most regions of the country, some may wonder why these four entities are suggesting to their readership that now is the time to buy. Each organization realizes that PRICE is not as important as COST. The cost of a home can go up even if prices continue to fall. Unless you are an all cash buyer, you must take into consideration the expense of mortgaging when calculating the full cost of a home. Here is some information to consider.
Interest Rates
Currently, interest rates sit at historic lows. However, Fannie Mae, Freddie Mac, PMI and the National Association of Realtors are all projecting approximately a 1% increase in mortgage rates over the next year. A one percent increase in rate negates a ten percent fall in prices.
Lending Standards
The government has proposed a tightening of lending standards called Quality Residential Mortgage (QRM). If accepted as proposed two things will happen:
1. The qualification process for loans will become more difficult
2. The cost of a loan will increase
Bottom Line
There is a reason more and more financial organizations are suggesting to their followers that now is the time to buy a home: because the cost of purchasing a home is about to increase (even if prices continue to fall).
by The KCM Crew
Thursday, August 4, 2011
Tuesday, July 26, 2011
Realtors Turn to QR Codes to Sell Homes
SALT LAKE CITY -- You've probably seen them at the store or in a magazine -- the printed black boxes you can scan with your smartphone to get more information on a product or to find out more about a certain story. Now realtors are trying to cash in on the boxes' quick response codes.
Salt Lake Board of Realtors President Deanna Dipo is starting to use them on signs and fliers. She said one click can provide a lot of information to smartphone users.
"It will automatically populate the information of that home: pictures, detailed information about the home, the price. It's just a wonderful tool," she said.
Dipo says so far she has had a great response and she believes she knows why.
"People can get the information and no one is hounding them or calling them," she said.
But not everyone has a smartphone and not everyone knows about the codes. Also, it could cost agents more on the front end since someone has to set up the code. Dipo has hired an independent company that takes pictures of listed homes and creates the QR code.
Dipo said it seems like more people are moving to buy smart phones or tablet computers, so she expects agents to catch on, too.
"We're always trying to stay on the cutting edge and trying to give consumers the best service possible. And that's what it is. It's just another service or feature that we can offer." she said.
What is ... QR Code?•"Quick response" code
•Two-dimensional barcode
•Often used for adding web links or additional information to a printed page
•Meant to be scanned by mobile phone camera
•Information encoded may be text, URL, or other data
Thursday, July 21, 2011
Justin will be on HGTV Don't miss it!
I was Featured as Utah's Real Estate Expert for HGTV's Bang For Your Buck. They filmed late fall 2010, and it will be airing DECEMBER 10th at 1pm mnt standard time.
Read more about the show here: http://www.hgtv.com/bang-for-your-buck/three-contemporary-master-bath-renovations-in-salt-lake-city/index.html
Monday, July 11, 2011
GET READY FOR A SUCCESSFUL YARD SALE!
1. FOLDING TABLES are the easiest to set up- throw colorful tablecloths on top if they're not in good shape. Use any large for sale items as extra display surfaces.
2. PUT A PRICE TAG ON EVERYTHING. If there are multiple components, like a box of dvd's post a sign stating the cost per item.
3. DISPLAY EYE CATCHING PRODUCTS in a prominent place that can be seen from the street. A large sign indicating a $1 table will also draw customers.
4. GROUP LIKE THINGS, kitchen utensils, children's toys, electronics- together. Run an extension cord from the garage so people can test the gadgets.
5. DUST AND WASH EVERYTHING. If people believes the goods were well taken care of, they'll be more likely to buy them.
6. PROMOTE PRICIER ITEMS (Like cameras) by laying out all the pieces they came with, including manuals or Amazon descriptions.
7. STOCK YOUR CASH BOX WITH CHANGE and have plenty of newspapers ready to wrap breakables.
From Sabrina Soto, Target's home style expert and host of HGTV's Get It Sold.
2. PUT A PRICE TAG ON EVERYTHING. If there are multiple components, like a box of dvd's post a sign stating the cost per item.
3. DISPLAY EYE CATCHING PRODUCTS in a prominent place that can be seen from the street. A large sign indicating a $1 table will also draw customers.
4. GROUP LIKE THINGS, kitchen utensils, children's toys, electronics- together. Run an extension cord from the garage so people can test the gadgets.
5. DUST AND WASH EVERYTHING. If people believes the goods were well taken care of, they'll be more likely to buy them.
6. PROMOTE PRICIER ITEMS (Like cameras) by laying out all the pieces they came with, including manuals or Amazon descriptions.
7. STOCK YOUR CASH BOX WITH CHANGE and have plenty of newspapers ready to wrap breakables.
From Sabrina Soto, Target's home style expert and host of HGTV's Get It Sold.
Wednesday, June 29, 2011
Real Estate News
The Deseret News on June 14 featured a story on renting vs. buying. The story cited a survey by the National Association of Home Builders in which 31 percent of respondents said their biggest barrier to owning a home was saving for a down payment.
REALTOR Carolyn Kirkham was quoted in the story as saying this past winter was one of the slowest in her 20-year career, but this past spring has been one of the busiest she can recall.
"Last week she wrote offers in a single day on homes for two young couples who'd been saving and had found their dream homes," the story said. "It's a fact that the very downturn that has so many people upside down in homes...has also put home ownership within reach for many first-time home buyers."
REALTOR Carolyn Kirkham was quoted in the story as saying this past winter was one of the slowest in her 20-year career, but this past spring has been one of the busiest she can recall.
"Last week she wrote offers in a single day on homes for two young couples who'd been saving and had found their dream homes," the story said. "It's a fact that the very downturn that has so many people upside down in homes...has also put home ownership within reach for many first-time home buyers."
Thursday, June 23, 2011
Monday, June 20, 2011
For RENT- BEWARE of FRAUD
We recently listed a great property near the University of Utah, vacant and easy to show. We had no idea it would be the next target of Fraud that has hit Utah. I had a few appointments the day after we listed and when I get out there are voice mails on my phone about the property 'For Rent'. People call all the time and ask if we will rent but not stating 'We are ready to rent'. Someone had placed an ad with an email address that MATCHED my home owners name collecting DEPOSITS on the property. Complete Fraud. Luckily they called me, I investigated, and after a few phone calls it was under control. No deposits sent, no one hurt. I also placed the attached sign to the property just in case. The email is a red flag but for $700 a month would be tempting to any starving college student. See email below. So if you have this issue, be sure to flag the listing and contact the Police. Just so you know, I still think the world is good and well...just goes to show there is still a good rental market out there :).
Hello,
We are pleased that you have an interest in our house, Our lovely home is still available for lease and we want responsible adults/family who are neat and also believe that they have what it takes to take care of our house as if it were theirs. My wife and I initially had it up for sale but had a change of mind in leasing it out ourselves because the agent that was in charge of our rental property was asking too much of an agent fee and also making it difficult for people who cannot afford the rent, stay away from renting my house.
The reason why our house is up for lease is because I got transferred from my place of work to West Africa, I will be away with my family for at least 4 to 5 years because of the love I have for them, I have decided not to sell our house and also assuring them that we only have few years to spend here and will be willing to lease it out to person/family who is willing to assure us of taking absolute care of our home and pay their rent on time. I will start by telling you more in regards me and my family. I have a daughter named Leslie (20yrs) who attends University of Oklahoma as a medical student,she has a lot going for her and she is also down to earth in all that she does to keep us happy and when she is back home on vacation, she also assist her mom in the house work when am at work. I work as a Robotic Programmer & Welder/Fitter here in West Africa and got married to a lovely wife who is a member of Joyce Meyer Ministries . We will be very pleased if we can find the right tenant to rent our home, a person who is a clean freak and does not tolerate anything that has to do with dirt... we also would like to know more about you and your family, your renting experience and how long and when you plan moving into our home.1,996 sqft. I have received some proposals regarding the rent because it is located in a very good area of (Salt Lake City),but I still have to make sure it is rented out to someone who can take good care of it.It includes facilities such as water and heat laundry facilities, air condition, internet and telephone access and a car park and other necessary facilities, also comes with trash collection, pets are allowed as well as long as they are not destructive.
These 4 bedrooms and 2 baths home are very specious and neat.
Below is the rental property address:
2558 Simpson Avenue,Salt Lake City,UT 84109.
Pets allowed: Yes
Rent: $700
Deposit: $700
The rental fee is inclusive with utilities and my home available as at this moment.
PLEASE NOTE THAT YOU WILL ONLY BE ABLE TO DRIVE BY THE HOUSE BUT NOT HAVE A LOOK AT THE INTERIOR UNTIL WE HAVE SENT THE KEYS AND DOCUMENT OF THE HOUSE TO YOU.
Hello,
We are pleased that you have an interest in our house, Our lovely home is still available for lease and we want responsible adults/family who are neat and also believe that they have what it takes to take care of our house as if it were theirs. My wife and I initially had it up for sale but had a change of mind in leasing it out ourselves because the agent that was in charge of our rental property was asking too much of an agent fee and also making it difficult for people who cannot afford the rent, stay away from renting my house.
The reason why our house is up for lease is because I got transferred from my place of work to West Africa, I will be away with my family for at least 4 to 5 years because of the love I have for them, I have decided not to sell our house and also assuring them that we only have few years to spend here and will be willing to lease it out to person/family who is willing to assure us of taking absolute care of our home and pay their rent on time. I will start by telling you more in regards me and my family. I have a daughter named Leslie (20yrs) who attends University of Oklahoma as a medical student,she has a lot going for her and she is also down to earth in all that she does to keep us happy and when she is back home on vacation, she also assist her mom in the house work when am at work. I work as a Robotic Programmer & Welder/Fitter here in West Africa and got married to a lovely wife who is a member of Joyce Meyer Ministries . We will be very pleased if we can find the right tenant to rent our home, a person who is a clean freak and does not tolerate anything that has to do with dirt... we also would like to know more about you and your family, your renting experience and how long and when you plan moving into our home.1,996 sqft. I have received some proposals regarding the rent because it is located in a very good area of (Salt Lake City),but I still have to make sure it is rented out to someone who can take good care of it.It includes facilities such as water and heat laundry facilities, air condition, internet and telephone access and a car park and other necessary facilities, also comes with trash collection, pets are allowed as well as long as they are not destructive.
These 4 bedrooms and 2 baths home are very specious and neat.
Below is the rental property address:
2558 Simpson Avenue,Salt Lake City,UT 84109.
Pets allowed: Yes
Rent: $700
Deposit: $700
The rental fee is inclusive with utilities and my home available as at this moment.
PLEASE NOTE THAT YOU WILL ONLY BE ABLE TO DRIVE BY THE HOUSE BUT NOT HAVE A LOOK AT THE INTERIOR UNTIL WE HAVE SENT THE KEYS AND DOCUMENT OF THE HOUSE TO YOU.
Thursday, June 9, 2011
5 Lies All Home Sellers Tell
Home sellers are solely their own kind of client. While my career in real estate brought me in contact with many home sellers who all had different expectations and varied reasons for selling their home, they all had one thing in common: They shared the same spiel. I'm not sure if they all read from the same "home seller handbook" or if there was a secret website that gave them a scripted dialogue, but if I heard these things once I heard them a thousand times. Before signing a listing agreement, there were five things almost every seller would say that they knew weren't necessarily true. Regardless, we savvy and experienced agents are on to these sellers. From my years of experience, I knew how to persuade a seller to tell the truth.
'My house is the best in the neighborhood'
Indeed, in their mind, it may be the best house in the neighborhood. The truth is that they haven't been in every house in the neighborhood, so there is no possible way that they know this. As attached to a home as a seller might be, it's been my professional experience that once you take them to see other properties in the area, they start seeing their home in an entirely new light. It's an eye-opening experience, and they realize there is stiff competition.
'I've done more improvements than any of the neighbors'
This tiny fabrication ties in to the seller professing that he has the "best" house in the neighborhood. Honestly, he doesn't know what the Joneses and the Smiths have done to their homes. The more homes that I took a seller to see in the general neighborhood, the less he said that his home was the most improved in the neighborhood. In fact, in many instances, sellers found their home right on par with improvements, if not under-improved. This not only brought down the seller's expectations for his property, it also usually got me the price reduction I needed.
'I won't take less than...'
Many sellers begin the process with a dollar amount that they want to make on their property. They are unwavering in the fact that they won't take less than "X" amount for their property. They have no problem vocalizing it loudly and often. For many sellers, however, I found this to be an all-out lie. The fact is that a seller will "take" a fair amount for his house, and that ultimately the amount he will "take" is in direct proportion to what a buyer will pay. Unfortunately, this usually isn't the highest-dollar amount that he wanted when starting the sales process.
'I'm not going to give my home away'
For many sellers "giving" their house away ties in to the "I won't take less than X" speech. Sellers believe anything less than what they "want" for the house is giving it away for next to nothing. As a real estate agent, I knew this was the time to hammer the seller with market data. After explaining the sales facts in their neighborhood, I could usually get sellers to see the light.
'I'll do whatever it takes to sell'
Admittedly, I was always suspicious of these folks. Sure, they say that they will do "whatever it takes," but they are not entirely prepared for the stress associated with selling a home. When meeting with these sellers, I would explain the factors that go into a successful sale. The "I'll do whatever it takes to sell" speech was usually quickly replaced with admissions of "I didn't know that."
This list is of the utmost importance for sellers to review, before putting their house on the market. I have seen many a seller lose many an excellent agent because he didn't do this homework before his listing appointment. If you want the best agent, as a seller, you have to know the ins and outs of being the best seller for that agent. One way to be the best seller on the block is to avoid these all-too-common lies that so many sellers so often tell.
Yahoo.com by
'My house is the best in the neighborhood'
Indeed, in their mind, it may be the best house in the neighborhood. The truth is that they haven't been in every house in the neighborhood, so there is no possible way that they know this. As attached to a home as a seller might be, it's been my professional experience that once you take them to see other properties in the area, they start seeing their home in an entirely new light. It's an eye-opening experience, and they realize there is stiff competition.
'I've done more improvements than any of the neighbors'
This tiny fabrication ties in to the seller professing that he has the "best" house in the neighborhood. Honestly, he doesn't know what the Joneses and the Smiths have done to their homes. The more homes that I took a seller to see in the general neighborhood, the less he said that his home was the most improved in the neighborhood. In fact, in many instances, sellers found their home right on par with improvements, if not under-improved. This not only brought down the seller's expectations for his property, it also usually got me the price reduction I needed.
'I won't take less than...'
Many sellers begin the process with a dollar amount that they want to make on their property. They are unwavering in the fact that they won't take less than "X" amount for their property. They have no problem vocalizing it loudly and often. For many sellers, however, I found this to be an all-out lie. The fact is that a seller will "take" a fair amount for his house, and that ultimately the amount he will "take" is in direct proportion to what a buyer will pay. Unfortunately, this usually isn't the highest-dollar amount that he wanted when starting the sales process.
'I'm not going to give my home away'
For many sellers "giving" their house away ties in to the "I won't take less than X" speech. Sellers believe anything less than what they "want" for the house is giving it away for next to nothing. As a real estate agent, I knew this was the time to hammer the seller with market data. After explaining the sales facts in their neighborhood, I could usually get sellers to see the light.
'I'll do whatever it takes to sell'
Admittedly, I was always suspicious of these folks. Sure, they say that they will do "whatever it takes," but they are not entirely prepared for the stress associated with selling a home. When meeting with these sellers, I would explain the factors that go into a successful sale. The "I'll do whatever it takes to sell" speech was usually quickly replaced with admissions of "I didn't know that."
This list is of the utmost importance for sellers to review, before putting their house on the market. I have seen many a seller lose many an excellent agent because he didn't do this homework before his listing appointment. If you want the best agent, as a seller, you have to know the ins and outs of being the best seller for that agent. One way to be the best seller on the block is to avoid these all-too-common lies that so many sellers so often tell.
Yahoo.com by
Wednesday, May 25, 2011
Sometimes Additions Can Be Subtractions
Not all remodeling projects add
value come selling time
value come selling time
The Salt Lake Tribune - Lesley Mitchell
Remodeling your home is kind of like buying a new car. Over time, it will be worth a lot less than you paid for it.
That sun room addition? Expect to recoup only about 40 percent of your investment — if you’re lucky. In fact, real estate agents say many home buyers don’t even like these costly additions. What about the time you remodeled and created a home office with all those built-in book shelves? For all your trouble, you would end up getting only about a third of that investment when it came time to sell.
Even among remodeling projects with the highest return on investment, you can expect to recoup only about 83 percent of what you spend on vinyl replacement siding in Salt Lake City, 74 percent on a minor kitchen remodel and about 70 percent on new windows, according to the annual Cost vs. Value report 2010-2011 by Remodeling magazine.
Perplexed? Real estate agents and others in the housing industry aren’t.
"A lot of homeowners are really surprised at how little they can get back on the money they spent on remodeling projects," said Kim Boekholder with Results Real Estate in Sandy. "It can create some hurt feelings when they want to sell and we have to break the news to them that although what they did is beautiful, buyers aren’t willing to pay extra for it."
One of the biggest mistakes homeowners make, Boekholder said, is making changes that don’t have broad appeal. You may like bright yellow walls, but some buyers don’t.
One of Boekholder’s recent listings was a home with purple carpet. Even though it was in great condition, "every single buyer commented on it," she said. "It was a huge negative and cost some offers." Another Realtor had to break the news to sellers who had remodeled their home with an outdoorsy flair that potential buyers were being turned off by wallpaper, bathroom tiles and kitchen back-splash tiles adorned with hunting scenes.
Another myth is that all remodeling projects are created equally — or that the biggest, most expensive projects have the biggest return on investment.
The report in Remodeling magazine, updated annually, shows that simply isn’t the case. Homeowners can expect to see an average return of 64 percent on the investment in a major kitchen remodel, 62 percent return on a two-story addition, 57 percent on a new master suite and only 44 percent on a bathroom addition.
Why such low returns? Many home-improvement projects appeal to only some buyers — some don’t want a fancy kitchen for example, or don’t like the cabinetry and decor that the seller selected. Buyers who have no intention of working at home will find little or no value in a home office addition, and many buyers prefer a deck to a sunroom.
How much a homeowner reaps from an investment varies, based on the overall condition of the property, the neighborhood and many other factors.
Not all projects are done with an eventual sale in mind. Terry Moore of West Valley knows that home values are down in her area, as well as along virtually the entire Wasatch Front. But after living in her home for two decades, she and her husband do not want to move away from neighbors and two adult children who live nearby, including one only five minutes away.
Two years ago, she had her kitchen remodeled and square footage added. Next up is replacing more windows and her home’s vinyl siding.
"We are doing these projects with the intention to stay," she said. "This is the house we’ll die in."
Although how much value any remodeling project will add is uncertain, one thing is for sure. It’s not always the priciest changes that benefit homeowners most when it comes time to sell. A new steel front door or new garage door aren’t the most expensive additions — but they can deliver big results. According to the report, homeowners could recoup 95 percent of the cost of a new steel entry door and 93 percent on a new garage door. Those aren’t the only practical home improvements that seem to score high — expect about 83 percent on vinyl siding and nearly 70 percent for new windows.
Real estate agents say the return on these types of projects is so high because they are maintenance items that are going to have to be done at some point. Buyers place a premium on properties that already have such projects completed.
Wednesday, May 18, 2011
Tuesday, May 3, 2011
Million Dollar Homes are Selling!
SANDY -- The real estate industry has seen some rough times the last couple of years. Buying and selling has certainly been a challenge.
Just this week, we learned that Utah is 4th in the nation when it comes to the number of foreclosures. But there is a sector of the housing market that's still strong -- and the price tags are big.
"There is a segment of the market that hasn't been affected by the economy, and they are just taking advantage of the pricing right now," said Deanna Dipo, president of the Salt Lake Board of Realtors.
She's talking about big homes, custom-built with all the bells and whistles, sitting on a couple of acres: Million-dollar homes.
The highest priced home sold along the Wasatch Front in 2010 went for just over $6 million. In 2009, $3.5 million was the highest price.Believe it or not, homes in this price range are selling well in Utah, and have been for the last couple of years.
According to the Salt Lake Board of Realtors, 91 million-dollar-plus homes sold along the Wasatch Front last year, up 12 percent from 2009. So far this year, 15 have sold.
"The price per square foot has dropped," Dipo explained. "Our pricing has stabilized here in Utah, so the high-end properties are definitely of value."
That's encouraging for someone like Sandy resident Jesse Riddle.
"We built this home about 14 years ago as our dream home," he said. "We have a beautiful home, custom design."
But his four children are grown now, and the Riddles are ready to downsize. With their home, there's plenty to downsize from -- the pool, sport court and lighted football field notwithstanding.
The activity in high-end homes is not just a Wasatch Front phenomenon. Seven-figure priced homes are up 4 percent nationally as well, an indication that properties like Riddle's are somewhat insulated from the economic downtown.
"I just think there are a lot of people in a position financially that are really taking advantage of our market, just buying properties that they couldn't have otherwise in the past," Dipo said.
By Keith McCord - KLS News
Just this week, we learned that Utah is 4th in the nation when it comes to the number of foreclosures. But there is a sector of the housing market that's still strong -- and the price tags are big.
"There is a segment of the market that hasn't been affected by the economy, and they are just taking advantage of the pricing right now," said Deanna Dipo, president of the Salt Lake Board of Realtors.
She's talking about big homes, custom-built with all the bells and whistles, sitting on a couple of acres: Million-dollar homes.
The highest priced home sold along the Wasatch Front in 2010 went for just over $6 million. In 2009, $3.5 million was the highest price.Believe it or not, homes in this price range are selling well in Utah, and have been for the last couple of years.
According to the Salt Lake Board of Realtors, 91 million-dollar-plus homes sold along the Wasatch Front last year, up 12 percent from 2009. So far this year, 15 have sold.
"The price per square foot has dropped," Dipo explained. "Our pricing has stabilized here in Utah, so the high-end properties are definitely of value."
That's encouraging for someone like Sandy resident Jesse Riddle.
"We built this home about 14 years ago as our dream home," he said. "We have a beautiful home, custom design."
But his four children are grown now, and the Riddles are ready to downsize. With their home, there's plenty to downsize from -- the pool, sport court and lighted football field notwithstanding.
The activity in high-end homes is not just a Wasatch Front phenomenon. Seven-figure priced homes are up 4 percent nationally as well, an indication that properties like Riddle's are somewhat insulated from the economic downtown.
"I just think there are a lot of people in a position financially that are really taking advantage of our market, just buying properties that they couldn't have otherwise in the past," Dipo said.
By Keith McCord - KLS News
Thursday, April 28, 2011
Tuesday, April 26, 2011
NEW — March Home Sales Down From Last Year, Up From March 2009
Sales of existing homes in Salt Lake County in March totaled 940 units (all housing types), down 8 percent compared to 1,020 units sold in March 2010, but up 25 percent compared to sales in March 2009, according to the Salt Lake Board of REALTORS®.
Home sales in March were up 44 percent compared to February 2010 (non-seasonally adjusted).
“Home sales are down compared to last year at this time because of the federal home buyer tax credit,” said DeAnna Dipo, president of the Salt Lake Board of REALTORS®. “However, home sales in March of this year are up 25 percent compared to March 2009, when the recession was in full force.”
The median home price in March was $185,250, down 7 percent compared to a median price of $200,000 in March 2010, but up 3 percent compared to February’s median price of $179,990.
Based on sales trends over the past 12 months, Salt Lake County has a nine-month supply of housing inventory. There are 6,520 active listings of homes for sale in Salt Lake County.
Home sales in March were up 44 percent compared to February 2010 (non-seasonally adjusted).
“Home sales are down compared to last year at this time because of the federal home buyer tax credit,” said DeAnna Dipo, president of the Salt Lake Board of REALTORS®. “However, home sales in March of this year are up 25 percent compared to March 2009, when the recession was in full force.”
The median home price in March was $185,250, down 7 percent compared to a median price of $200,000 in March 2010, but up 3 percent compared to February’s median price of $179,990.
Based on sales trends over the past 12 months, Salt Lake County has a nine-month supply of housing inventory. There are 6,520 active listings of homes for sale in Salt Lake County.
Monday, April 25, 2011
Cash-Wielding Investors Snap Up Resold Homes
Investors lifted U.S. home sales last month, plunking down cash to grab cheap homes at risk of foreclosure. But purchases made by first-time homebuyers fell, a troubling sign for the weak housing market. Sales of previously occupied homes rose in March to a seasonally adjusted annual rate of 5.1 million, the National Association of Realtors said Wednesday. That’s a 3.7 percent increase from the February pace, but far below the 6 million homes a year that economists say represents a healthy market.
Foreclosures or short sales — when the lender agrees to accept less than what is owed on the mortgage — rose to make up 40 percent of all purchases. And deals paid for entirely in cash accounted for 35 percent of all resold homes. The Realtors group says that’s the biggest percentage since it has been tracking all-cash sales. Many of those purchases are being made by investors, who are targeting cheap properties in areas hit hardest by foreclosures. The trade group’s data takes into account only individual investors. It does not include homes sold in bulk at auction or on courthouse steps. Many of the foreclosure sales probably are being picked up en masse by private equity firms.
Another sign of investor activity is that sales of homes priced under $100,000 have risen 10 percent from a year ago. In that same period, sales of mid-priced homes, from $100,000 to $500,000, have fallen more than 14 percent. Fewer first-time homebuyers are entering the market. Sales among these buyers, who typically set down roots and raise families, fell to 33 percent in March. The trade group and economists say a healthier makeup is40 percent.
The median sales price rose slightly in March, to $159,600, but it is still down 5.9 percent from a year ago. Foreclosures are dragging down home prices. A record 1 million homes were lost to foreclosure last year and foreclosure tracker RealtyTrac Inc. said it expects 1.2 million more will be lost this year. Homes at risk of foreclosure usually sell at 20 percent discounts.
Joshua Shapiro, chief U.S. economist with MFR Inc., said that “part of the market-clearing process is that distressed properties must be sold, so the fact that this is occurring is good.”
Many would-be buyers are holding off, worried that home prices haven’t bottomed out. Others are having trouble getting mortgages because banks have tightened lending requirements. The average credit score for Freddie Mac and Fannie Mae-backed mortgages is 760, up from 720 in 2007. A major obstacle to a housing recovery is the glut of unsold homes. There were 3.55 million unsold homes on the market in March. It would take 8.4 months to clear them at today’s sales pace. Analysts say a healthy supply can be cleared in six months.
The situation is much worse when taking into account the “shadow inventory” of homes, economists say. These are homes that are in the early stages of the foreclosure process but have not been put on the market yet for resale.“It is unlikely that home prices can recover on a sustained basis until the inventory-to-sales balance improves further and the number of distressed properties is significantly reduced,” said Steven A. Wood, chief economist at Insight Economics
Salt Lake Tribune
Foreclosures or short sales — when the lender agrees to accept less than what is owed on the mortgage — rose to make up 40 percent of all purchases. And deals paid for entirely in cash accounted for 35 percent of all resold homes. The Realtors group says that’s the biggest percentage since it has been tracking all-cash sales. Many of those purchases are being made by investors, who are targeting cheap properties in areas hit hardest by foreclosures. The trade group’s data takes into account only individual investors. It does not include homes sold in bulk at auction or on courthouse steps. Many of the foreclosure sales probably are being picked up en masse by private equity firms.
Another sign of investor activity is that sales of homes priced under $100,000 have risen 10 percent from a year ago. In that same period, sales of mid-priced homes, from $100,000 to $500,000, have fallen more than 14 percent. Fewer first-time homebuyers are entering the market. Sales among these buyers, who typically set down roots and raise families, fell to 33 percent in March. The trade group and economists say a healthier makeup is40 percent.
The median sales price rose slightly in March, to $159,600, but it is still down 5.9 percent from a year ago. Foreclosures are dragging down home prices. A record 1 million homes were lost to foreclosure last year and foreclosure tracker RealtyTrac Inc. said it expects 1.2 million more will be lost this year. Homes at risk of foreclosure usually sell at 20 percent discounts.
Joshua Shapiro, chief U.S. economist with MFR Inc., said that “part of the market-clearing process is that distressed properties must be sold, so the fact that this is occurring is good.”
Many would-be buyers are holding off, worried that home prices haven’t bottomed out. Others are having trouble getting mortgages because banks have tightened lending requirements. The average credit score for Freddie Mac and Fannie Mae-backed mortgages is 760, up from 720 in 2007. A major obstacle to a housing recovery is the glut of unsold homes. There were 3.55 million unsold homes on the market in March. It would take 8.4 months to clear them at today’s sales pace. Analysts say a healthy supply can be cleared in six months.
The situation is much worse when taking into account the “shadow inventory” of homes, economists say. These are homes that are in the early stages of the foreclosure process but have not been put on the market yet for resale.“It is unlikely that home prices can recover on a sustained basis until the inventory-to-sales balance improves further and the number of distressed properties is significantly reduced,” said Steven A. Wood, chief economist at Insight Economics
Salt Lake Tribune
Friday, April 22, 2011
Tuesday, April 19, 2011
Be Smart Before Taking Flight From Your Mortgage
I just want out... what are my options...
Short Sale
In this process the borrower asks the lender for permission to sell the house for less than what is owed on the mortgage. For example, the market value of a property is $250,000, but $300,000 is owed and the lender is asked to take a $50,000 hit. short Sales hurt credit scores, but not as much as a foreclosure.
Foreclosure
Walking away from your property letting a lender foreclose has the greatest effect on your credit, remaining on your report as a negative item for 7 years.
More than three years after Utah's real estate bubble popped, tens of thousands of homeowners have some tough decisions to make. Am estimated 8 percent of Utah households with a mortgage are behind on their payments. About one in five homeowners in Salt Lake City are "under water" meaning they owe more than their homes are worth. another 6% are close to that point according to housing data from Corelogic.
Should they try to get their lender to modify their mortgage? Should they hold on and wait for better times? Is trying to get a lender to agree to short sale a better option? Or should they just give up and walk away?
Each situation is different of course, but the solutions are often universally complicated and can be painful. "A lot of people believe, or hope there's a government program that can fix everything for them," said Ryan Carver, director of housing counseling of AAA Fair Credit Foundation "But there just isn't one."
I am in mortgage trouble, but want to keep my home - so what now? Here is what to do if you are having trouble making your mortgage payment and can't sell your house because yu owe more than it's worth:
Salt Lake Tribune - Lesley Mitchell
Short Sale
In this process the borrower asks the lender for permission to sell the house for less than what is owed on the mortgage. For example, the market value of a property is $250,000, but $300,000 is owed and the lender is asked to take a $50,000 hit. short Sales hurt credit scores, but not as much as a foreclosure.
Foreclosure
Walking away from your property letting a lender foreclose has the greatest effect on your credit, remaining on your report as a negative item for 7 years.
More than three years after Utah's real estate bubble popped, tens of thousands of homeowners have some tough decisions to make. Am estimated 8 percent of Utah households with a mortgage are behind on their payments. About one in five homeowners in Salt Lake City are "under water" meaning they owe more than their homes are worth. another 6% are close to that point according to housing data from Corelogic.
Should they try to get their lender to modify their mortgage? Should they hold on and wait for better times? Is trying to get a lender to agree to short sale a better option? Or should they just give up and walk away?
Each situation is different of course, but the solutions are often universally complicated and can be painful. "A lot of people believe, or hope there's a government program that can fix everything for them," said Ryan Carver, director of housing counseling of AAA Fair Credit Foundation "But there just isn't one."
I am in mortgage trouble, but want to keep my home - so what now? Here is what to do if you are having trouble making your mortgage payment and can't sell your house because yu owe more than it's worth:
- Start with your lender or HUD approved counselor- call 211 to find a counselor in yuor area.
- Your lender's offer is likely to dissapoint- the lender will do what is best for them.
- You must prove hardship in order to get help
- Be persistent, and keep track of your conversations.
- Help is not guaranteed- Your lender doesn't ahve to help you.
- You may want to change your spending habits - the bank will see what you spend your money on.
- think twice before you stop making your mortgage payment - you may think that is the only way toget help, this really may not be the best decsion
- Denied modification? Try, try again.
Salt Lake Tribune - Lesley Mitchell
Tuesday, April 12, 2011
Property Alert - Deal of the Day
This week I posted a property on our 'Deal of the Day' on my website/blog. It was a property for $265k in the Avenues. Well, one of my clients called after seeing it, we looked at it (I also brought a contractor to give us estimates on fix up), and we made an offer. It truly must have been a deal! After we made the offer I begged the agent to present it before other offers rolled in. By the time we were supposed to get a response, he already had 3. By the end of the next day there were 6 offers total, 2 were cash and the final counter offer my client received was for $308,350! We did not accept it.
This is really exciting to see how many people that are looking at properties on the market that are a good deal and making offers. As many know, there is roughly a 9 month inventory of properties along the Wasatch Front. Many sellers feel like buyers are on the fence and not pulling the trigger. I am seeing different. If the property is priced right, has value, and is marketed correctly I am seeing homes go same day! This property was a perfect example of that.
click here to see the property I am talking about.
http://www.screencast.com/users/Justinudy/folders/Jing/media/34d6b404-b113-43bc-8036-8a1aa04b03c9
This is really exciting to see how many people that are looking at properties on the market that are a good deal and making offers. As many know, there is roughly a 9 month inventory of properties along the Wasatch Front. Many sellers feel like buyers are on the fence and not pulling the trigger. I am seeing different. If the property is priced right, has value, and is marketed correctly I am seeing homes go same day! This property was a perfect example of that.
click here to see the property I am talking about.
http://www.screencast.com/users/Justinudy/folders/Jing/media/34d6b404-b113-43bc-8036-8a1aa04b03c9
Subscribe to:
Posts (Atom)