Why use a good realtor??

Several years ago, before I became a realtor, I had a different view about what real estate professionals do. I THOUGHT that they listed a home and waited to be paid at the closing. I THOUGHT they didn't have to return phone calls or listen to your needs. I THOUGHT they drove you around all day to waste your time and their gas. I THOUGHT they did not work for their money. I THOUGHT they would lie.
So when it came time for me to sell my own home, I THOUGHT I could do it all on my own! I did not realize until then how much I did not know about selling real estate. I needed a good real estate professional. I called a friend who I knew worked for Coldwell Banker Residential Brokerage. He sold my home for me and it was an easy, smooth, happy process. It was only after that that I decided real estate professional really do know what they are doing. But there are good and bad professionals in every occupation. It is important to find a GOOD real estate professional!

It is important for a real estate professional to help direct the process of purchasing a home. A realtor is also helpful with issues that concern first time home buyers. There are so many options for buyers to consider during each step of the home buying transaction, and they can make the best decisions with the assistance of a good real estate professional. Take time to find one that will really help you. A realtor can help you get the information needed to find the ideal home and get it at a great price!

1. Choosing a home that fits the buyer's life and family- As you meet with your real estate professional you will be able to discuss your needs. A good realtor can usually narrow down the home choices very quickly to save you time on looking at home options.
2. Picking the right mortgage- There are so many good mortgage products out there, and so many great financing options. A good realtor will provide you with names of reputable lenders so you can feel comfortable about your biggest investment.
3. Making offers that sellers can't refuse- A good realtor has the experience to know what works and what doesn't. Your time will not be wasted. You will be accessing the professionalism of a great negotiator.
4. Handling appraisals, inspections, title policies, and insurance- There is so much more to buying a home then just making an offer and getting the financing. A good realtor will not miss any important issues along the way.
5. Dealing with homeowner associations and management companies- You will have all of the facts. A good realtor makes sure that you are informed about all details of your home purchase.
6. Doing the final walk-through and closing- Buying a home is a big detailed process. A good realtor will be with you until then end, to fix any little hang ups along the way. An even better realtor will stay in touch with you long after your new home purchase! Call me, your professional realtor, to find out what I can do for you.
By Heidi Alldredge

About Coldwell Banker

About Coldwell Banker ®

Since 1906, the Coldwell Banker ® organization has been a premier full-service real estate provider. In 2006, Franchise Times magazine’s prestigious Top 200 issue ranked the Coldwell Banker system number one in real estate for the seventh straight year and number eight among all franchisors. The Coldwell Banker System has approximately 3,800 residential real estate offices and more than 120,000 sales associates in 42 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury properties through its Coldwell Banker Previews International ® division. It is a pioneer in consumer services with its Coldwell Banker Concierge ® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Mortgage is one of the largest telephone/web based lenders in the country. Coldwell Banker Real Estate Corporation is a subsidiary of Realogy Corporation, the world’s largest real estate franchisor. Realogy is owned by an affiliate of Apollo Management, L.P., a leading private equity and capital markets investor. Coldwell Banker ® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.

What Teachers Make

WHAT TEACHERS MAKE

The dinner guests were sitting around the table discussing life. One man, a CEO, decided to explain the problem with education. He argued, "What's a kid going to learn from someone who decided his best option in life was to become a teacher?"He reminded the other dinner guests what they say about teachers: "Those who can, do. Those who can't, teach."
To stress his point he said to another guest; "You're a teacher, Bonnie. Be honest. What do you make?"

Bonnie, who had a reputation for honesty and frankness replied, "You want to know what I make? (She paused for a second, then began...)
"Well, I make kids work harder than they ever thought they could. I make a C+ feel like the Congressional Medal of Honor.
I make kids sit through 40 minutes of class time when their parents can't make them sit for 5minutes without an I Pod, Game Cube or movie rental.
You want to know what I make?
I make kids wonder.
I make them question.
I make them apologize and mean it.
I make them have respect and take responsibility for their actions.
I teach them to write and then I make them write. Keyboarding isn't everything.
I make them read, read, read.
I make them show all their work in math. They use their God given brain, not the man-made calculator.
I make my students from other countries learn everything they need to know in English while preserving their unique cultural identity.
I make my classroom a place where all my students feel safe.
I make my students stand, placing their hand over their heart to say the Pledge of Allegiance to the Flag, One Nation Under God, because we live in the United States of America.
Finally, I make them understand that if they use the gifts they were given, work hard, and follow their hearts, they can succeed in life. (Bonnie paused one last time and then continued.)
"Then, when people try to judge me by what I make, with me knowing money isn't everything, I can hold my head up high and pay no attention because they are ignorant... You want to know what I make?
I MAKE A DIFFERENCE. What do you make Mr. CEO?"

His jaw dropped, he went silent.

Thanks to all of our teachers, even all of our personal teachers like mothers, fathers, brothers, sisters, and our spiritual leaders and teachers! They all make a difference!

Building Wealth

From the National Association of Realtors Jan. 2008

Building Wealth

A wealth of housing data clearly demonstrates that housing is a good long-term investment. According to a study by the U.S. Department of Housing and Urban Development, 60 percent of a homeowner’s wealth is from the equity they have built in their home. A Federal Reserve study has shown that the average homeowner’s net worth is 46 times the net worth of the average renter.

This emphasizes the importance of homeownership in creating long-term wealth, and encourages buyers who are on the fence about making a home purchase to contact a REALTOR® who can help them make a smart investment in their future.

Second best market in the country!

PROVO/OREM REAL ESTATE MARKET SECOND BEST IN COUNTRY

Orem, Utah — 2008 President of the Utah County Association of Realtors® Kenny Parcell is pleased but not surprised by recent national reports that many Utah housing markets are defying national trends and remain healthy and robust.

Business Week recently announced the best housing markets for the third quarter with Provo/Orem coming in at a solid number two. They compared markets across the U.S. that performed the best in terms of price appreciation in the third quarter of 2007 compared with the same period in 2006. Also in the top five were Ogden-Clearfield at number four and Salt Lake City at number five.

According to Parcell, Broker in the RE/MAX Results Spanish Fork office, “We continue to enjoy a stronger market than many national areas because our economic fundamentals like a healthy job market, population growth, increasing wages, and low interest rates, to name a few, show that while slower than last year, our market is stable and represents a great buyers market.”

The Utah County Association of Realtors® reports that the third quarter average sales price for Utah County homes was $301,065 with condos coming in at $175,167. This is a rise of 5.78% for homes and 17.41% for condos from the 3 rd quarter average sales price of 2006. In addition, existing home sales show the average ‘days on market’ are only one percent longer than this same time in 2006.

“One of the factors that makes a difference for our local market is population growth. Growth indicates that demand for homes will continue into the future,” stated Association CEO Taylor Oldroyd. According to the U.S. Census Bureau, Utah is the third fastest growing state in the country.

“With the national media indicating almost daily that the housing market is in trouble, I want all potential buyers to know the facts,” said Parcell. “The fact is our market is strong. Hey, we’re the second best market in the entire country.”

From the Utah County Association of Realtors Jan. 11, 2008

Mortgage Insurance

Great news for Mortgage Insurance
January 2008

Congress has approved the renewal of the Mortgage Insurance Tax Deductibility, which is an extension that will apply to policies written through the year 2010.
That can be a significant savings for many homeowners. Mortgage insurance premiums can be up to 100% tax deductible, depending on ones tax situation. (Homeowners should consult with their tax advisor for exact figures.)
Mortgage insurance is an important benefit, allowing a home purchase with conventional financing and less than the required 20% down. It offers default protection without adding liens to the property. And the premiums are tax deductible. That’s value for the money!
Talk to your Axiom Financial mortgage consultant for more information about this positive tax news for homeowners!
Orem, Utah Branch (801) 765-0066
Stevan Davis
Garett Petersen
Susan Gifford

Home Value

From the National Association of Realtors January 2008

Home Value
Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years, according to historical data from National Association of Realtors existing home-sales series. Thanks to the power of leverage, a homeowner’s return on investment is even more impressive over time.

For example, over 10 years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield $23,600. The same investment as a down payment on a $200,000 home at a normal appreciation rate of 5 percent would return nearly 5 times the stock market return, at $110,300.

Home value demonstrates the long-term value of housing as an investment, and encourages buyers who are on the fence about making a home purchase to contact a REALTOR® who can help them make a smart investment in their future.

Bringing Jobs to Utah

Bringing Jobs to Utah—Success Stories in Manufacturing and Distribution
By Gretta Spendlove
(Published in the Utah Business Journal Dec. 2007)

“Most dynamic economy.” “One of America’s top states for business.” Forbes, CNBC and the Kauffman 2007 State New Economy Index have all recently recognized Utah as a business-friendly place. In the midst of a fragile national economy, aggressive state and local efforts are attracting major companies to Utah, and bringing thousands of jobs.

In 2007, Proctor and Gamble announced plans for a new manufacturing plant near Brigham City, bringing 900 full time jobs and over $400 million in new state wages over the next ten years. Barnes Aerospace is expanding its plant in Ogden, bringing 474 new high technology jobs. Thermo Fisher Scientific is expanding its biotech manufacturing plant in Logan, The Hershey Company has announced a new western distribution center in Ogden, and FiberTEK Insulation is establishing a fiberglass insulation plant in Nephi. These projects are on the “Top 10” list of 2007 corporate investment and community impact projects, assembled by the Utah Governor’s Office of Economic Development (GOED).

Jonathan Cohen , vice president of relocation for Coldwell Banker, explains one way in which attracting new business to Utah creates ripples of benefit throughout the state’s economy. Companies which move to Utah typically bring some workers with them, in addition to hiring many new employees locally. Coldwell Banker has been assisting companies and their employees relocate into Utah for years. Most recently, relocations have dramatically increased into the state. Organizations such as IM Flash, Rossignol, Kraftmaid, Amer Sports, Adam Aircraft and Proctor and Gamble are just some that are making Utah their new home. “All that relocation business helps keep Utah’s real estate market healthy,” says Cohen. Across the country, including Utah, the real estate market has slowed down. “However, because Utah is still one of the healthiest states, and continuing to attract new business, its real estate market is significantly stronger than other markets across the nation. New workers moving into the state and additional jobs being created provide more opportunities for Utah sellers; as a buyer, people moving into Utah benefit from our appreciating market.”

“We target areas of business in which Utah-based companies can compete with any companies throughout the world,” says Jason Perry, executive director, GOED. “Our current targets are aviation and aerospace, defense and homeland security, life sciences, outdoor products, information technology, energy, and financial services. We’re looking for companies that will provide high quality, family-sustaining jobs with benefits. We want jobs that pay at least 125% of the county median wage, or in rural areas at least 100%.”

And what future goals does Perry have for business development in Utah? “Now we’re building the base, and in the future we’ll become even more proactive in targeting the businesses we want,” he states. “We’ll say ‘What is the key company in that industry?’ We’ll try to get more corporate headquarters in Utah.”

100 Years Ago

The year is 1907... One hundred years ago.
   (What a difference a century makes!)

Here are some  statistics for the Year 1907 :
*The average life expectancy was 47 years.
*Only 14 percent of the homes had a bathtub.
*Only 8 percent of the homes had a telephone.
*There were only 8,000 cars and only 144 miles of paved roads.
*The maximum speed limit in most cities was 10 mph.
*The tallest structure in the world was the Eiffel Tower!
*The average wage in 1907 was 22 cents per hour.
*The average  worker made between $200 and $400 per year
*More than 95 percent of all births took place at HOME
*Sugar cost four cents a pound.
*Eggs were fourteen cents a dozen.
*Most women only washed their hair once a month, and used Borax or egg yolks for shampoo.

*Five leading causes of death  were:
1. Pneumonia and influenza
2. Tuberculosis
3. Diarrhea
4. Heart disease
5. Stroke

*The American flag had 45 stars.
*The population of Las Vegas, Nevada, was only 30!
*There was no Mother's Day or Father's Day.
*Two out of every 10 adults couldn't read or write.
*Only 6 percent of all Americans had graduated from high school.
*Eighteen percent of households had at least one full-time servant or domestic help.

Try to imagine what it may be like in another 100 years.

3 Signs of Predatory Lending

3 Signs of Predatory Lending

Always be on the lookout for signs of abusive lending practices. Here’s a rundown of the three most common strategies predatory lenders use.
BY MARIE SPODEK, GRI, AND JEROME MAYNE

By definition, greater upfront costs and continuing higher interest payments are some of the differences between prime lending and subprime lending. While providing opportunities to build equity through homeownership, subprime lending does cost more.

Ideally, responsible, risk-based subprime lenders provide access to credit for prospective home owners with poor credit scores. However, lenders are considered predatory when their practices, although legal, are not in the best interest of the borrowers.

These lenders can include mortgage companies, creditors, mortgage brokers, and even home improvement contractors. Suspect practices include targeting certain groups of people and using pressure tactics to force borrowing decisions while not disclosing valuable decision-making information.

In addition, these loans are often bundled with higher interest, lump-sum credit life insurance, excessive fees, and high prepayment penalties without regard to the borrower’s ability to repay.
Most subprime lenders and the loans they make are not subject to federal legislation, so it has been difficult to document how these practices impact predatory lending.

1. Reverse Redlining: Finding Easy Targets

After decades of redlining (when lenders would not make loans in certain communities because of racial composition), today many predatory lenders specifically seek out groups to which it will market these excessive loans. In other words, these groups become the victims of “reverse redlining.” Predatory lenders also seek borrowers who need cash due to medical issues, unemployment, or other debt-related problems, and they look for borrowers who may not be aware of their choices.

Here’s a closer look at the groups that are most often targeted by predatory lenders:
• The Elderly. Many of the older generation have lived in their homes for a long time and have built up equity. They may be “house rich and cash poor.” When they encounter cash problems due to medical, unemployment, or other debt problems, predatory lenders encourage them to turn to cash-out refinancing to solve their cash flow problems. Because they may not have the experience to comparison-shop, they are vulnerable to contractors and their lenders who suggest the only way to find the money for repairs is to sign papers through the contractor or loan officer, who then charges rates that do not correspond to the risk of the loan. They may be pressured into borrowing money with payments that are so high they are unlikely to make the payments on their fixed incomes.
• Minorities. Although minorities have greater access to credit than ever before, many African Americans and low-income families are paying far more for their credit than corresponding whites. According to the analysis by three reporters from the Charlotte Observer of more than 2.2 million 2004 mortgage applications, in 2005 blacks and Hispanics continued to pay more in interest rates than did whites — no matter high how their incomes.
• Immigrants. Many immigrants are eager to invest in their own homes, and, in fact, owning their own homes may be one of the reasons they immigrated to the United States. However, immigrants can lack the language skills and previous homebuying experience to enable them to effectively analyze loan terms and their implications. They may also lack the bank accounts and credit histories that would qualify them for traditional loans, thus making them easy prey for predators with “alternative” loan programs.
• Individuals with Low Credit Scores. Low credit scores do not always indicate poor credit risks. Sometimes, borrowers fall behind in payments due to circumstances that are not likely to be repeated: unforeseen medical bills, an unexpected job layoff. However, they can end up with unscrupulous subprime lenders who use abusive practices.

2. Charging Unnecessary Costs

As if loan predators have not found enough ways to soak these borrowers, they can always pack in more unnecessary or nonexistent products and services (generally overpriced insurance), sometimes to borrowers who have no beneficiaries. Lenders have especially added to the cost of manufactured homes by folding in overpriced fixtures, appliances, and even free trips. Before borrowers make their first payments, these loans are underwater because the market value of the collateral is less than the loan amount.

3. Giving Misleading or No Information About Loans

Predatory lenders can use bait-and-switch tactics by offering loans that seem almost too good to be true. What they initially offer is often lost in the process, and borrowers may not even realize that the cost or loan terms are not what they originally agreed to. Borrowers have been told that the FHA insures against property defects and loan fraud, neither of which is true.

Borrowers should take time to shop around and compare houses, prices, estimates, and referrals. No reputable lender will ask a borrower to sign a blank contract or loan documents, because blank forms only present the opportunity for dishonest individuals to fill in false information.

Changing the Climate: It’s Up to You

Predatory lending is a big problem in today’s economy. However, this practice is not being perpetrated by ALL loan officers, and not ALL mortgage brokers are crooks. The key to changing the climate is to educate borrowers. There are crooks in every profession, and the consumer needs to know what to watch out for.

*Make sure you have an honest and reliable real estate agent who can guide you in the home financing process.*

5 Investors Tips

From the Book: 5 Investor Tips in a Slower Market

Slower markets can offer rich opportunities for investors: real estate sellers are more open to negotiate and lower home prices — and combined with low interest rates — can help you get properties at bargain levels. Yet, some buyers are reluctant.

“The market may not look perfect,” the authors write. “This is why prices haven’t taken off yet” — and why you want to get in before they do! The book offers the following tips:

1. Timing is everything. Enter the market cycle early. “When it’s quiet, when the media isn’t saying ‘record levels of appreciation,’ that’s when you want to jump in,” the authors write. As billionaire oilman J. Paul Getty once said: “Buy when everyone else is selling and hold until everyone else is buying.”

2. Get financially ready. Before you buy, consider holding costs, tax implications, and cash flow potential. Many things can go wrong when buying investment properties — such as a vacant rental or a property that won’t sell. Have cash reserves (get a partner if you don’t have any) and you’ll be prepared to ride out any market cycle. Identify your risk level and what you want: For example, an investor who wants to turn a quick profit with low holding costs would want to sell their new-home property before construction is complete. On the other hand, an investor looking for a bigger return with less capital gains tax would want to hold the property until after construction is complete and keep it as a rental property for at least one year.

3. Buy and hold. In a distressed market, this can be a smart move. A buy-and-hold strategy can help give the property an opportunity to appreciate over time. Buy at the right price, though. Compare the home’s price to what homes are selling for over a reasonable time period in that community and what you expect is the lowest price the market will reach. Get in at that price. Consider lease option investments so you can rent the property to cover payments, having the property practically pay for itself each month. Also, continue to pay down the mortgage and eventually you may even have the home paid off — an ideal position for an investor!

4. Find best deal. In a slow market, you can get great deals — and some extras. Builders overbuilt during the housing boom, resulting in high inventories of unsold properties. Now, many builders report slashing prices, offering free upgrades, absorbing all financing points for their buyers, and paying closing costs or fees. Extras aside, other good investment properties include homes five years old or less and properties in the $200,000-range, which can particularly be desirable to a large pool of buyers. Also, look for a property in an emerging market. Some indicators: sales of existing homes and new construction permits are starting to trend upward, supply is steadily dropping, mortgage loan defaults are high but starting to fall, days-on-market move below 90, and low interest rates.

5. Have an exit strategy. Have a selling strategy in place before you buy so you’re not just randomly banking on the property appreciating and then doing a quick sale. Come in with a solid selling plan. For new construction investing, your selling options might be to assign your purchase contract during the construction period, sell when construction is complete, lease and then sell, or a lease option. Reduce the taxable impact of selling your real estate investments by talking to your tax adviser about a 1031 exchange or self-directed IRA. “Know how you will get out before you get in!” the authors advise.

Payment Holiday

Payment Holiday
Wouldn’t you love a vacation from your first mortgage payments as you settle into your new home?
Axiom Financial offers a new program designed to take the financial sting our of the first months of homeownership and help ease you into your new payment schedule!

Here is how it works:
*The seller may contribute toward the purchase of your home.
* The amount contributed may pay a full month or more of principal and interest.
* You will be obligated to pay only the tax and insurance payments for the program term.
* Seller contributions in excess of the allowed payments may be applied to the actual costs of closing, interest buy downs, or property repairs
* This program is available with many types of loans, including some with loan-to-value ratios up to 100%.
Call your Axiom Financial Loan Officer today for details about this new flexible program:
Stevan Davis, Garett Petersen or Susan Gifford located at the Orem, Utah branch. They can be reached by phone at 801-765-0066

If not now, WHEN?

“Our challenge is to ensure we do everything possible to share the reality of Utah’s current market. Tell your family, tell your friends, what is really happening in our market. Seek out opportunities to have conversations with everyone you come in contact with. Help the public to be educated.

Share the Facts
• Utah’s unemployment rate is 2.6%
• Utah's economy is the best ever and the prosperity the state's residents are experiencing is anticipated to continue through the first half of next year.
• Utah’s unemployment rate is anticipated to remain low at 3 percent during the first half of 2008.
• More than 48,000 new jobs are anticipated for the first six months of 2008—a 3.9 percent increase over the number of new jobs that emerged during the first half of 2007.
• Utah is named “Most Dynamic Economy”
• Interest rates are at historical lows. The reality is, if buyers have a job, and they have income, and they have a good credit rating, they can buy a house today!

*Housing inventories offer more options than in the last year. Inventory is up 24%. Buyers and sellers have opportunities.
IF NOT NOW, WHEN? It’s a great time to buy real estate.”

Max Thompson, COO
Coldwell Banker Residential Brokerage
Nov. 2007