You have probably received your tax notice for your property taxes recently. What does this mean?
The property taxes are calculated using a certified tax rate and the taxable value of each home and property. The tax rate is calculated based on adopted budgets of the various entities, while the property value is determined by a review of the property and current market data.
Between now and the last valuation period home prices have declined typically 5 to 9 percent. Owners should not be surprised if they notice a drop in value with no corresponding drop in taxes, given the process of how the tax rate is calculated.
Each tax entity determines its own tax rate, and the Utah County Assessor’s Office determines property value. The Assessor's office has worked hard to consider valuation changes in neighborhoods and communities for the upcoming year, but residents should also be aware of the process to appeal their valuation notice.
Property owners who wish to appeal their notices must contact the Utah County Board of Equalization within 45 days from the date of their notice. Owners will set an appointment for a hearing in an informal setting with a County real estate appraiser to reevaluate the property value.
Those who do not receive a tax notice or who have any questions can contact the Utah County Auditor's Office at (801) 851-8227.
Showing posts with label Need to Know. Show all posts
Showing posts with label Need to Know. Show all posts
Monday, August 2, 2010
Monday, March 29, 2010
Tax Credit!
Two versions of the tax credit are still being offered: a maximum credit of $8,000 for first-time buyers (and those who last owned a home 3 or more years ago), as well as a $6,500 credit for current homeowners. Either way, the credit applies only to the purchase of a new principal residence costing $800,000 or less, and there are income restrictions and other limitations, including a requirement to close the sale before July 1.
How can buyers eager to capture the tax credit streamline their home shopping?
Here are some suggestions:
1. Get to Know Your Market: Buyers can do that using Internet sites that permit you to see the homes currently on the market, and by finding a good real estate agent who is ready to expedite the shopping process.
2. Line Up Your Financing: Talk to a reputable lender right away and go through the pre-approval process. That will tell buyers quickly how much they can borrow. At today’s extremely low interest rates, that amount may be more than many buyers imagined. But either way, the process will help buyers determine how much they are willing and able to spend on the home.
3. Start Narrowing Your Search: With a large inventory of homes to choose from in the current market, buyers won’t have time to look at everything in their price range. By establishing specific criteria of the home they want, buyers can screen out homes that won’t fit their needs.
4.Separate Needs from Wants: Buyers can look at fewer homes if they can tell their agent what features the home they buy must have and what features would be nice but aren’t required.
5. Consider Condition: In today’s market, many of the best values are foreclosed homes that aren’t in perfect condition. Buyers should decide up front if they are willing to tackle a home that needs work, and if so, how much.
6. Keep Things in Perspective: As nice as it may be to get the tax credit, don’t let the desire to do so completely control your home search. The tax credit is a great incentive, but an $8,000 credit equals just 2.5% of the price of a $320,000 home. Buying the wrong home can end up costing you a lot more.
7. Leave Time to Handle Standard Contingencies: The typical purchase contract may have several contingency clauses, for such things as a home inspection, attorney’s approval, obtaining financing and even the sale of the buyer’s current residence. Fortunately, standard contingencies in a contract won’t prevent it from qualifying for the tax credit. However, if an issue arises in the home inspection, and it can’t be resolved, the buyer may want to find another house, but doing that after April 30 will mean losing the tax credit. Allowing time to work through the contingencies before the deadline reduces that risk.
8. Be Careful of Short Sales: If the home you want to buy is offered as a short sale, qualifying for the tax credit may become more difficult. Short sales require that purchase offers be approved by both the seller and the sellers’ lender, and lenders often are slow about responding. Waiting for lender approval could leave you without a binding contract on April 30.
How can buyers eager to capture the tax credit streamline their home shopping?
Here are some suggestions:
1. Get to Know Your Market: Buyers can do that using Internet sites that permit you to see the homes currently on the market, and by finding a good real estate agent who is ready to expedite the shopping process.
2. Line Up Your Financing: Talk to a reputable lender right away and go through the pre-approval process. That will tell buyers quickly how much they can borrow. At today’s extremely low interest rates, that amount may be more than many buyers imagined. But either way, the process will help buyers determine how much they are willing and able to spend on the home.
3. Start Narrowing Your Search: With a large inventory of homes to choose from in the current market, buyers won’t have time to look at everything in their price range. By establishing specific criteria of the home they want, buyers can screen out homes that won’t fit their needs.
4.Separate Needs from Wants: Buyers can look at fewer homes if they can tell their agent what features the home they buy must have and what features would be nice but aren’t required.
5. Consider Condition: In today’s market, many of the best values are foreclosed homes that aren’t in perfect condition. Buyers should decide up front if they are willing to tackle a home that needs work, and if so, how much.
6. Keep Things in Perspective: As nice as it may be to get the tax credit, don’t let the desire to do so completely control your home search. The tax credit is a great incentive, but an $8,000 credit equals just 2.5% of the price of a $320,000 home. Buying the wrong home can end up costing you a lot more.
7. Leave Time to Handle Standard Contingencies: The typical purchase contract may have several contingency clauses, for such things as a home inspection, attorney’s approval, obtaining financing and even the sale of the buyer’s current residence. Fortunately, standard contingencies in a contract won’t prevent it from qualifying for the tax credit. However, if an issue arises in the home inspection, and it can’t be resolved, the buyer may want to find another house, but doing that after April 30 will mean losing the tax credit. Allowing time to work through the contingencies before the deadline reduces that risk.
8. Be Careful of Short Sales: If the home you want to buy is offered as a short sale, qualifying for the tax credit may become more difficult. Short sales require that purchase offers be approved by both the seller and the sellers’ lender, and lenders often are slow about responding. Waiting for lender approval could leave you without a binding contract on April 30.
Saturday, February 20, 2010
Tax Credit Deadline Quickly Approaching!
What buyers and sellers need to do now so they don’t miss out.
With only three months until the new $8,000 first-time homebuyer and the $6,500 existing home buyer federal tax credits are set to expire, time is running out on an opportunity that buyers and sellers may not see again. The tax credit, which was originally created in mid 2008, then expanded in January 2009 and extended again this past November, was only designed to be a short-term incentive to drive more buyers into the housing market. That’s why many people in Congress are saying that, come April 30, 2010 when the credit expires, “That is it!”
So the clock is ticking. The average real estate transaction, from offer to closing, takes approximately 90 days and that is just about where we are now. To meet the federal deadlines, a buyer must have a binding sales contract in place by April 30, and have the home purchase completed by June 30. To achieve those time frames, buyers need to act almost immediately. Those deadlines also mean that this is also a prime opportunity for sellers. As the April 30 deadline gets ever closer, we are bound to see an influx of home-seekers who are hoping to find a house and make an offer in time to receive the tax credit. So for sellers who have been considering moving up in the market, downsizing, or relocating, now is an opportune time to put their house on the market.
We’re at a unique time in real estate. The tax credit deadline is helping to create the “perfect storm” in the market, due to four key elements – I.I.I.P:
Inventory: Although there are an overwhelming number of markets where inventory is down, and even with a decline in inventory year over year, there are still plenty of homes on the market for buyers to choose from.
Interest Rates: Mortgage rates remain at near historic lows. This means higher purchasing power for buyers.
Incentives: The extension and expansion of the homebuyer tax credit is providing benefits to buyers who may have otherwise not been interested in getting into the market.
Prices: Affordability remains at an all time record level nationally and in many of our local markets as well.
While the urgency of trying to find and close on a home before the deadline may seem stressful, it doesn't have to be. For those who are in the early phase of the home buying process, there are a few key things that you can do to speed up the process:
Find A Qualified Real Estate Agent. If you do not already have one, work with a real estate agent who will be able to help identify mortgage lenders, home inspectors, lawyers and others who will play a role in helping to get the buying process completed by the April 30 deadline.
Know Before You Go. Free online tools and mobile applications for smart phones are available to help you quickly and conveniently learn about neighborhoods and view homes on the market. Consult with your own tax advisor as to your ability to qualify for the tax credit based upon income levels, length of residency/homeownership and housing prices. Arming yourself with as much knowledge as possible in the beginning is bound to save time in the long-run.
Get Pre-Approved for a Loan. “Pre-approval” means that a lender has checked your credit and other credentials and is prepared to making a loan. Not only is this valuable to sellers, and may give you an advantage over other offers they receive, but it could speed up the loan process and allow you to complete the necessary paperwork before the tax credit deadline.
The tax credit has done a lot for the real estate industry since its inception. According to the National Association of Realtors, 47% of all homes sold last year were purchased by first-time home buyers. Paul Bishop, NAR vice president of research, has said that first-time buyers “are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services.”
With only three months until the new $8,000 first-time homebuyer and the $6,500 existing home buyer federal tax credits are set to expire, time is running out on an opportunity that buyers and sellers may not see again. The tax credit, which was originally created in mid 2008, then expanded in January 2009 and extended again this past November, was only designed to be a short-term incentive to drive more buyers into the housing market. That’s why many people in Congress are saying that, come April 30, 2010 when the credit expires, “That is it!”
So the clock is ticking. The average real estate transaction, from offer to closing, takes approximately 90 days and that is just about where we are now. To meet the federal deadlines, a buyer must have a binding sales contract in place by April 30, and have the home purchase completed by June 30. To achieve those time frames, buyers need to act almost immediately. Those deadlines also mean that this is also a prime opportunity for sellers. As the April 30 deadline gets ever closer, we are bound to see an influx of home-seekers who are hoping to find a house and make an offer in time to receive the tax credit. So for sellers who have been considering moving up in the market, downsizing, or relocating, now is an opportune time to put their house on the market.
We’re at a unique time in real estate. The tax credit deadline is helping to create the “perfect storm” in the market, due to four key elements – I.I.I.P:
Inventory: Although there are an overwhelming number of markets where inventory is down, and even with a decline in inventory year over year, there are still plenty of homes on the market for buyers to choose from.
Interest Rates: Mortgage rates remain at near historic lows. This means higher purchasing power for buyers.
Incentives: The extension and expansion of the homebuyer tax credit is providing benefits to buyers who may have otherwise not been interested in getting into the market.
Prices: Affordability remains at an all time record level nationally and in many of our local markets as well.
While the urgency of trying to find and close on a home before the deadline may seem stressful, it doesn't have to be. For those who are in the early phase of the home buying process, there are a few key things that you can do to speed up the process:
Find A Qualified Real Estate Agent. If you do not already have one, work with a real estate agent who will be able to help identify mortgage lenders, home inspectors, lawyers and others who will play a role in helping to get the buying process completed by the April 30 deadline.
Know Before You Go. Free online tools and mobile applications for smart phones are available to help you quickly and conveniently learn about neighborhoods and view homes on the market. Consult with your own tax advisor as to your ability to qualify for the tax credit based upon income levels, length of residency/homeownership and housing prices. Arming yourself with as much knowledge as possible in the beginning is bound to save time in the long-run.
Get Pre-Approved for a Loan. “Pre-approval” means that a lender has checked your credit and other credentials and is prepared to making a loan. Not only is this valuable to sellers, and may give you an advantage over other offers they receive, but it could speed up the loan process and allow you to complete the necessary paperwork before the tax credit deadline.
The tax credit has done a lot for the real estate industry since its inception. According to the National Association of Realtors, 47% of all homes sold last year were purchased by first-time home buyers. Paul Bishop, NAR vice president of research, has said that first-time buyers “are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services.”
Tuesday, January 5, 2010
WELCOME 2010
Contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in November, fell to 96% from 114.3% in October, but is 15.5% higher than November 2008 when it was 83.1%.
Lawrence Yun, NAR chief economist, said a drop was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” he said. “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”
Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for the tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.
The Pending Home Sales Index in the Northeast dropped 74.4% in November but is 14.7% above a year ago. In the Midwest the index fell to 82.0% but is 9.2% higher than November 2008. Pending home sales in the South fell to an index of 97.8%, but are 14.7% higher than a year ago. In the West the index declined to 124.6% but is 21.4% above November 2008.
Yun projects an additional 900,000 first-time buyers will qualify for the extended tax credit in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit.
“Many trade-up buyers, who have historically timed their purchase based on school-year considerations, will have to accelerate their buying plans if they need the tax credit to make a trade,” Yun said. Repeat buyers do not have to sell their existing home to qualify for the credit, but they must occupy the home they buy as their primary residence.
Yun added that mortgage interest rates cannot remain at rock-bottom levels for a sustained period and will likely inch higher in 2010. But the tax credit impact in the first half of the year and expected job growth impact in the second half will support home buying activity and absorb enough inventory to bring a rough balance between buyers and sellers. Home prices are expected to stabilize or even modestly rise as a result in 2010.
Washington, January 05, 2010, The National Association of Realtors®, “The Voice for Real Estate”
Friday, November 6, 2009
Home Buyer Tax Credit Extension
Congress passed two measures for the housing market on November 5, 2009!
The first time home buyer tax credit deadline was extended to loans purchased on or before May 1, 2010, and closing by July 1, 2010. For first time home buyers the credit will remain at $8000, and all other home buyers could be eligible for up to $6500. The income limits to qualify for the credits was increased as well, to allow more buyers to qualify, and hopefully boost the move up and move down buyers. This will also hopefully move some inventory in the higher priced homes that have been very hard to sell all this year.
For current home owners looking to cash in on this credit, they must have owned their current home at least 5 years. The tax credit is available for the purchase of principal homes costing $800,000 or less. Purchase of second homes or vacation homes are ineligible. The credit will be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.
Congress also voted to extend the higher conforming loan limits for Fannie, Freddie and FHA loans. These limits are set at 125% of the average home price in your area, up to a high limit o$795,000. You have to check your county limits to determine the actual high price limit for your area. This will have the greatest impact on states like California, Washington, and the Northeast where average home prices are substantially higher than most of the country. But, this is good news for home buyers in those areas who would otherwise have to finance home purchases with "jumbo" loans which typically have much higher rates.
The first time home buyer tax credit deadline was extended to loans purchased on or before May 1, 2010, and closing by July 1, 2010. For first time home buyers the credit will remain at $8000, and all other home buyers could be eligible for up to $6500. The income limits to qualify for the credits was increased as well, to allow more buyers to qualify, and hopefully boost the move up and move down buyers. This will also hopefully move some inventory in the higher priced homes that have been very hard to sell all this year.
For current home owners looking to cash in on this credit, they must have owned their current home at least 5 years. The tax credit is available for the purchase of principal homes costing $800,000 or less. Purchase of second homes or vacation homes are ineligible. The credit will be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.
Congress also voted to extend the higher conforming loan limits for Fannie, Freddie and FHA loans. These limits are set at 125% of the average home price in your area, up to a high limit o$795,000. You have to check your county limits to determine the actual high price limit for your area. This will have the greatest impact on states like California, Washington, and the Northeast where average home prices are substantially higher than most of the country. But, this is good news for home buyers in those areas who would otherwise have to finance home purchases with "jumbo" loans which typically have much higher rates.
Thursday, May 14, 2009
FHA Appraisal Tips
The following are excerpts from HUD Mortgagee Letter 2005-ML-48 regarding repair and inspection requirements.
FHA Repair Requirements: Below are examples of minor property conditions that no longer require automatic repair for existing properties include, but are not limited to:
* Missing handrails * Cracked or damaged exit doors that are otherwise operable * Cracked window glass * Defective paint surfaces in homes constructed post 1978 * Minor plumbing leaks (such as leaky faucets) * Defective floor finish or covering (worn through the finish, badly soiled carpeting) * Evidence of previous (non-active) Wood Destroying Insect/Organism damage where there is no evidence of unrepaired structural damage * Rotten or worn out counter tops * Damaged plaster, sheetrock or other wall and ceiling materials in homes constructed post- 1978 * Poor workmanship * Trip hazards (cracked or partially heaving sidewalks, poorly installed carpeting) * Crawl space with debris and trash * Lack of an all weather driveway surface
Below are examples of property conditions that may represent a risk to the health and safety of the occupants or the soundness of the property for which FHA will continue to require automatic repair for existing properties include, but are not limited to:
* Inadequate access/egress from bedrooms to exterior of home * Leaking or worn out roofs (if 3 or more layers of shingles on leaking or worn out roof, all existing shingles must be removed before re-roofing) * Evidence of structural problems (such as foundation damage caused by excessive settlement) * Defective paint surfaces in homes constructed pre-1978 * Defective exterior paint surfaces in home constructed post-1978 where the finish is otherwise unprotected * Exposed sub-flooring, missing carpet, vinyl, tile floors
FHA Inspection Requirements: FHA no longer mandates automatic inspections for the following items and/or conditions in existing properties:
* Wood Destroying Insects/Organisms: inspection required only if evidence of active infestation, mandated by the state or local jurisdiction, if customary to area, or at lender's discretion * Well (individual water system): test or inspection required if mandated by state or local jurisdiction; if there is knowledge that well water may be contaminated; when the water supply relies upon a water purification system due to presence of contaminants; or when there is evidence of: Corrosion of pipes (plumbing)Areas of intensive agriculture within 1/4 mile Coal mining or gas drilling operations within 1/4 mile Dump, junkyard, landfill, factory, gas station, or dry cleaning operation within 1/4 mile Unusually objectionable taste, smell or appearance of well water (superceding the guidance in Mortgagee Letter 95-34 that requires well water testing in the absence of local or state regulations) * Septic: test or inspection required only if evidence of system failure, if mandated by state or local jurisdiction, if customary to the area, or at lender's discretion * Flat and/or unobservable roof
FHA Appraisal Requirements: Appraisers are to recommend only those repairs necessary to make the property comply with FHA’s Minimum Property Requirements (MPR) or Minimum Property Standards (MPS) together with the estimated cost to cure. Recommended repairs are based on a visual inspection of readily observable items only.
Cosmetic repairs are not required; however, they are to be considered in the overall condition rating and valuation of the property. Examples of cosmetic repairs would include surface treatments, beautification or adornment not required for the preservation of the property. For example, generally, worn floor finishes or carpeting, holes in window screens, or a small crack in a windowpane are examples of deferred maintenance that do not rise to the level of a required repair but must be reported by the appraiser. The physical condition of existing building improvements is examined at the time of the appraisal to determine whether repairs, alterations or inspections are necessary - essential to eliminate conditions threatening the continued physical security of the property.
Required repairs will be limited to necessary requirements to:
protect the health and safety of the occupants (Safety)
protect the security of the property (Security)
correct physical deficiencies or conditions affecting structural integrity (Soundness)
FHA Repair Requirements: Below are examples of minor property conditions that no longer require automatic repair for existing properties include, but are not limited to:
* Missing handrails * Cracked or damaged exit doors that are otherwise operable * Cracked window glass * Defective paint surfaces in homes constructed post 1978 * Minor plumbing leaks (such as leaky faucets) * Defective floor finish or covering (worn through the finish, badly soiled carpeting) * Evidence of previous (non-active) Wood Destroying Insect/Organism damage where there is no evidence of unrepaired structural damage * Rotten or worn out counter tops * Damaged plaster, sheetrock or other wall and ceiling materials in homes constructed post- 1978 * Poor workmanship * Trip hazards (cracked or partially heaving sidewalks, poorly installed carpeting) * Crawl space with debris and trash * Lack of an all weather driveway surface
Below are examples of property conditions that may represent a risk to the health and safety of the occupants or the soundness of the property for which FHA will continue to require automatic repair for existing properties include, but are not limited to:
* Inadequate access/egress from bedrooms to exterior of home * Leaking or worn out roofs (if 3 or more layers of shingles on leaking or worn out roof, all existing shingles must be removed before re-roofing) * Evidence of structural problems (such as foundation damage caused by excessive settlement) * Defective paint surfaces in homes constructed pre-1978 * Defective exterior paint surfaces in home constructed post-1978 where the finish is otherwise unprotected * Exposed sub-flooring, missing carpet, vinyl, tile floors
FHA Inspection Requirements: FHA no longer mandates automatic inspections for the following items and/or conditions in existing properties:
* Wood Destroying Insects/Organisms: inspection required only if evidence of active infestation, mandated by the state or local jurisdiction, if customary to area, or at lender's discretion * Well (individual water system): test or inspection required if mandated by state or local jurisdiction; if there is knowledge that well water may be contaminated; when the water supply relies upon a water purification system due to presence of contaminants; or when there is evidence of: Corrosion of pipes (plumbing)Areas of intensive agriculture within 1/4 mile Coal mining or gas drilling operations within 1/4 mile Dump, junkyard, landfill, factory, gas station, or dry cleaning operation within 1/4 mile Unusually objectionable taste, smell or appearance of well water (superceding the guidance in Mortgagee Letter 95-34 that requires well water testing in the absence of local or state regulations) * Septic: test or inspection required only if evidence of system failure, if mandated by state or local jurisdiction, if customary to the area, or at lender's discretion * Flat and/or unobservable roof
FHA Appraisal Requirements: Appraisers are to recommend only those repairs necessary to make the property comply with FHA’s Minimum Property Requirements (MPR) or Minimum Property Standards (MPS) together with the estimated cost to cure. Recommended repairs are based on a visual inspection of readily observable items only.
Cosmetic repairs are not required; however, they are to be considered in the overall condition rating and valuation of the property. Examples of cosmetic repairs would include surface treatments, beautification or adornment not required for the preservation of the property. For example, generally, worn floor finishes or carpeting, holes in window screens, or a small crack in a windowpane are examples of deferred maintenance that do not rise to the level of a required repair but must be reported by the appraiser. The physical condition of existing building improvements is examined at the time of the appraisal to determine whether repairs, alterations or inspections are necessary - essential to eliminate conditions threatening the continued physical security of the property.
Required repairs will be limited to necessary requirements to:
protect the health and safety of the occupants (Safety)
protect the security of the property (Security)
correct physical deficiencies or conditions affecting structural integrity (Soundness)
Monday, March 16, 2009
Foreclosure Fraud
Fight Foreclosure fraud
The Utah Division of Real Estate is offering advice on how to avoid foreclosure scams in light of Utah's rising foreclosure rate.
The division has compiled the "Top Five Common Foreclosure Frauds" as well as "Five Ways Consumers Can Protect Themselves against Foreclosure Fraud" lists for the public.
Top Five Common Foreclosure Frauds
Consumers should be wary of any offers that include the following language:
*Save Your Credit: "Pay us a fee and sign your house over to us. The foreclosure will be recorded against us, not you." In this scheme, the lender will record the foreclosure against the homeowner who does not pay as promised under a mortgage.
*Lease-Back Repurchase Schemes: "We'll buy your property, lease it to you, and you have the option to buy it back!" Fraudsters prey on trusting individuals to get access to their home equity, title to property, credit, or money. Legitimate lease-back or lease-option agreements exist, but consumers must closely scrutinize the deal.
*Bank Relationships: "We have a special relationship with banks and can solve your problem quickly with no harm to your credit!" There are no easy solutions when you are facing foreclosure.
*Guaranteed Short Sale: "A short sale can save your credit, guaranteed!" Short sales can be a legal, effective method for preventing a foreclosure, but they are not guaranteed to be accepted by your lender, and they can affect your credit.
*Claim Bankruptcy: "Stop foreclosures with bankruptcy!" Financial advisers typically recommend bankruptcy only when all other avenues have failed so consumers should weigh all options before pursuing this path.
Five Ways Consumers Can Protect Themselves against Foreclosure Fraud
Below are tips to assist consumers who may be facing foreclosure:
1. Contact your lender as soon as you become delinquent. It costs lenders a significant amount of money to foreclose on a property, and many lenders have programs to help consumers.
2. Seek the advice of a competent professional, recommended by someone you know and trust. Real estate licensees, attorneys, and mortgage licensees can help you identify options for your situation. Make sure you are working with a licensed professional.
3. Do not transfer the title to your home to a third party. Individuals who are truly working in your best interest will want to help you keep your home or help you evaluate your best options.
4. Contact government agencies that can help you. Many agencies provide services for those facing foreclosure. The U.S. Department of Housing and Urban Development provides a list of HUD approved housing counseling agencies. They can be found at www.hud.gov.
5. Report any person or company who guarantees they will solve your problem. Your awareness may help government agencies prevent others from being harmed. You can report real estate fraudsters to the Utah Division of Real Estate at 801-530-6747 or by filing a complaint form: www.realestate.utah.gov.
The Utah Division of Real Estate is offering advice on how to avoid foreclosure scams in light of Utah's rising foreclosure rate.
The division has compiled the "Top Five Common Foreclosure Frauds" as well as "Five Ways Consumers Can Protect Themselves against Foreclosure Fraud" lists for the public.
Top Five Common Foreclosure Frauds
Consumers should be wary of any offers that include the following language:
*Save Your Credit: "Pay us a fee and sign your house over to us. The foreclosure will be recorded against us, not you." In this scheme, the lender will record the foreclosure against the homeowner who does not pay as promised under a mortgage.
*Lease-Back Repurchase Schemes: "We'll buy your property, lease it to you, and you have the option to buy it back!" Fraudsters prey on trusting individuals to get access to their home equity, title to property, credit, or money. Legitimate lease-back or lease-option agreements exist, but consumers must closely scrutinize the deal.
*Bank Relationships: "We have a special relationship with banks and can solve your problem quickly with no harm to your credit!" There are no easy solutions when you are facing foreclosure.
*Guaranteed Short Sale: "A short sale can save your credit, guaranteed!" Short sales can be a legal, effective method for preventing a foreclosure, but they are not guaranteed to be accepted by your lender, and they can affect your credit.
*Claim Bankruptcy: "Stop foreclosures with bankruptcy!" Financial advisers typically recommend bankruptcy only when all other avenues have failed so consumers should weigh all options before pursuing this path.
Five Ways Consumers Can Protect Themselves against Foreclosure Fraud
Below are tips to assist consumers who may be facing foreclosure:
1. Contact your lender as soon as you become delinquent. It costs lenders a significant amount of money to foreclose on a property, and many lenders have programs to help consumers.
2. Seek the advice of a competent professional, recommended by someone you know and trust. Real estate licensees, attorneys, and mortgage licensees can help you identify options for your situation. Make sure you are working with a licensed professional.
3. Do not transfer the title to your home to a third party. Individuals who are truly working in your best interest will want to help you keep your home or help you evaluate your best options.
4. Contact government agencies that can help you. Many agencies provide services for those facing foreclosure. The U.S. Department of Housing and Urban Development provides a list of HUD approved housing counseling agencies. They can be found at www.hud.gov.
5. Report any person or company who guarantees they will solve your problem. Your awareness may help government agencies prevent others from being harmed. You can report real estate fraudsters to the Utah Division of Real Estate at 801-530-6747 or by filing a complaint form: www.realestate.utah.gov.
Monday, February 23, 2009
American Recovery and Reinvestment Act
The “American Recovery and Reinvestment Act of 2009,” passed the House on February 13, 2009, by a vote of 246 - 184. Later that day, the Senate also passed the bill by a vote of 60 - 38. The President signed the bill on February 17, 2009. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.
Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
FHA, Fannie Mae and Freddie Mac Loan Limits -The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e.an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.
Neighborhood Stabilization – Provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2009 (Public Law 110–289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income. By leveraging their expertise in partnership with others from both the public and private sector, Realtors® in many communities have been making important contributions to their local communities’ neighborhood stabilization programs.
Commercial Real Estate - Commercial real estate is impacted primarily through those provisions of the bill focused on green building and energy efficiency as well as business tax incentives. H.R. 1 provides significant funds for state energy programs, which could be used to support commerical property owners' investment in energy efficiency upgrades while commercial property owners seeking to invest in alternative energy systems for onsite power generation would benefit from the Department of Energy Renewable Energy Loan Guarantees Program. Of particular benefit to small businesses would be certain provisions of the bill that provide tax relief in the area of bonus depreciation and capital expenditures, as well as the 5-Year carryback of net operating losses for small businesses.
Rural Housing Service – The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program’s eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners.
Tax-Exempt Housing Bonds - Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.
Energy Efficient Housing Tax Credits & Grants - To promote green jobs and energy independence, ARRA invests significantly in efforts to make homes and buildings more energy efficient. The bill provides state and local governments with $6 billion in energy efficiency and conservation grants for energy audits, retrofits and financial incentives. Through 2010, homeowners will be able to claim a 30% tax credit (up from 10%) for purchases of new furnaces, windows and insulation. Another $5 billion will be available to modernize the nation’s electricity grid and install smart meters on homes that help to save consumers money. There is also $5 billion for weatherization assistance for low income households and $2 billion for federally assisted housing efficiency efforts.
Transportation Investments - The bill provides $46.7 billion to states and localities for capital investment for surface transportation projects including highways, bridges, transit, and rail projects. NAR policy supports increased spending on the types of transportation infrastructure addressed in the bill with the exception of Amtrak and high-speed inter-city rail where NAR has no policy. These investments will tend to moderate traffic congestion and support a variety of transportation alternatives which will improve the quality of life of American communities and bolster the value of real estate.
Broadband Deployment - The bill creates $7.2 billion in grants to promote broadband deployment in unserved and underserved areas and for mapping the availability of broadband service in the U.S. Any entity is eligible to apply for a grant including municipalities, public/private partnerships and private companies as long as they comply with the grant conditions. The grants are subject to “network neutrality” requirements to ensure that broadband networks be free of restrictions on content, sites, or platforms, on the kinds of equipment that may be attached, and on the modes of communication allowed.
The bill also charges the FCC is with developing a national broadband plan that shall seek to ensure that all Americans have access to broadband capability and shall establish benchmarks for meeting that goal.
These provisions are important victories because increased broadband access promotes economic growth and expands opportunities for home sales. A 2006 Commerce Department report determined that property values are 6% higher in communities where broadband is available.
Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
FHA, Fannie Mae and Freddie Mac Loan Limits -The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e.an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.
Neighborhood Stabilization – Provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2009 (Public Law 110–289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income. By leveraging their expertise in partnership with others from both the public and private sector, Realtors® in many communities have been making important contributions to their local communities’ neighborhood stabilization programs.
Commercial Real Estate - Commercial real estate is impacted primarily through those provisions of the bill focused on green building and energy efficiency as well as business tax incentives. H.R. 1 provides significant funds for state energy programs, which could be used to support commerical property owners' investment in energy efficiency upgrades while commercial property owners seeking to invest in alternative energy systems for onsite power generation would benefit from the Department of Energy Renewable Energy Loan Guarantees Program. Of particular benefit to small businesses would be certain provisions of the bill that provide tax relief in the area of bonus depreciation and capital expenditures, as well as the 5-Year carryback of net operating losses for small businesses.
Rural Housing Service – The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program’s eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners.
Tax-Exempt Housing Bonds - Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.
Energy Efficient Housing Tax Credits & Grants - To promote green jobs and energy independence, ARRA invests significantly in efforts to make homes and buildings more energy efficient. The bill provides state and local governments with $6 billion in energy efficiency and conservation grants for energy audits, retrofits and financial incentives. Through 2010, homeowners will be able to claim a 30% tax credit (up from 10%) for purchases of new furnaces, windows and insulation. Another $5 billion will be available to modernize the nation’s electricity grid and install smart meters on homes that help to save consumers money. There is also $5 billion for weatherization assistance for low income households and $2 billion for federally assisted housing efficiency efforts.
Transportation Investments - The bill provides $46.7 billion to states and localities for capital investment for surface transportation projects including highways, bridges, transit, and rail projects. NAR policy supports increased spending on the types of transportation infrastructure addressed in the bill with the exception of Amtrak and high-speed inter-city rail where NAR has no policy. These investments will tend to moderate traffic congestion and support a variety of transportation alternatives which will improve the quality of life of American communities and bolster the value of real estate.
Broadband Deployment - The bill creates $7.2 billion in grants to promote broadband deployment in unserved and underserved areas and for mapping the availability of broadband service in the U.S. Any entity is eligible to apply for a grant including municipalities, public/private partnerships and private companies as long as they comply with the grant conditions. The grants are subject to “network neutrality” requirements to ensure that broadband networks be free of restrictions on content, sites, or platforms, on the kinds of equipment that may be attached, and on the modes of communication allowed.
The bill also charges the FCC is with developing a national broadband plan that shall seek to ensure that all Americans have access to broadband capability and shall establish benchmarks for meeting that goal.
These provisions are important victories because increased broadband access promotes economic growth and expands opportunities for home sales. A 2006 Commerce Department report determined that property values are 6% higher in communities where broadband is available.
Monday, January 12, 2009
Four Steps to Recovery
The Four Step Prescription for Recovery
Possibly the most important ingredient in the 2009 real estate correction is the fact that real estate makes up 20% of the Gross Domestic Product in this country and regardless of which side of the political fence you fall on, our country cannot be fixed without first fixing the housing sector.
Real estate should be gaining a great deal of attention over the next several months, particularly by our new administration.
With this important information in tow, it is important to point out that we currently have several key indicators that may position our country for a real estate recovery in 2009:
1. Dropping Interest Rates—According to NAR’s December 17, 2008 article entitled Fed Action Creates Best Interest Rates in 50 Years, Realtors® Report, “Mortgage rates which had averaged 6.3 percent in the third quarter, have recently fallen into the 4 percent range in some parts of the country.” The article went on to report, “NAR has estimated that a one percentage point decrease in mortgage rates will increase home sales by more than 500,000 homes.”
2. Improving Affordability—According to statistics released by the National Association of Home Builders, housing is becoming increasingly affordable for Utah residents. Statistics released by the organization, following the third quarter of 2008 found that Ogden-Clearfield ranked 80 out of 223 metropolitan statistical areas for housing affordability, followed by Salt Lake at 136, Provo-Orem at 160 and the St. George area at 204. According to the index, 67 percent of homes sold in the Ogden-Clearifled area during the third quarter of 2008, were affordable to families earning the area’s median household income of $65,000. In Salt Lake City, 55.3 of homes were affordable to families making the median household income of $65,300. In Provo-Orem, 48.2 percent of homes were affordable to families making the median household income of $60,000. In the St. George area, the least affordable market in the metro, 33.8% of homes were affordable to families earning the median household income of $55,100.
3. Government Intervention—As we noted before, with real estate making up 20% of the Gross Domestic Production in this country, it is imperative that the government take action to correct the housing sector. We need to move through the current financial crisis and restore the flow of credit so that qualified buyers are able to take advantage of improved affordability and successfully purchase homes. To respond to this, the government is currently looking at a number of corrector options including tax benefits, home ownership credits, subsidies or interest rate stabilization, to name a few. President-elect Obama and his economic team are in the process of developing an economic recovery plan designed to help Main Street and Wall Street with an ultimate goal of creating at least 2.5 million jobs while rebuilding our infrastructure, improving our schools, reducing our dependence on oil and saving billions of dollars. According to CNNMoney.com’s December 23, 2008 article Obama Closing in on Stimulus Plan, Vice-President-elect Joe Biden was quoted saying, “While our short-term goal is to start creating jobs as quickly as possible, we plan to invest in areas that will produce long-term benefits for the long-term health of our economy.”
4. Slowing of Distressed Properties—The timing of our price recovery may depend on how quickly the government takes steps to mitigate foreclosures. We expect sales of distressed properties to peak in early 2009—a critical factor in the housing market that directly impacts the timeframe for stabilization in the median price. NAR reported in its December 17, 2008 article entitled Fed Action Creates Best Interest Rates in 50 Years, Realtors® Report, “To boost the economy, it is critical to stem the rising tide of foreclosures and boost home buyer confidence in the housing market,” McMillan said. “Lower interest rates coupled with increased foreclosure mitigation are the key ingredients to stabilizing the housing market and preserving communities and homeownership.”
Looking forward to 2009, many experts agree that the financial system will begin to show signs of stabilization in early 2009 and we may begin to see a real estate turnaround by the summer. If you are considering buying, this should serve as a good indicator that now may very well be the time to purchase real estate.
If you are considering selling, possibly more so than ever, you need a qualified Realtor® who can assist you in selling your home. It is usually not enough to simply post your home on the MLS and post a For Sale sign in the yard. You need someone like myself who understands the intricacies, inventory and challenges of your local market and someone who knows how to properly position your home so it stands out among the sea of listings currently available.
If you are considering buying or selling your home in 2009, I have the resources, knowledge and experience to properly represent you in today’s market. Contact me today for the representation you deserve.
Possibly the most important ingredient in the 2009 real estate correction is the fact that real estate makes up 20% of the Gross Domestic Product in this country and regardless of which side of the political fence you fall on, our country cannot be fixed without first fixing the housing sector.
Real estate should be gaining a great deal of attention over the next several months, particularly by our new administration.
With this important information in tow, it is important to point out that we currently have several key indicators that may position our country for a real estate recovery in 2009:
1. Dropping Interest Rates—According to NAR’s December 17, 2008 article entitled Fed Action Creates Best Interest Rates in 50 Years, Realtors® Report, “Mortgage rates which had averaged 6.3 percent in the third quarter, have recently fallen into the 4 percent range in some parts of the country.” The article went on to report, “NAR has estimated that a one percentage point decrease in mortgage rates will increase home sales by more than 500,000 homes.”
2. Improving Affordability—According to statistics released by the National Association of Home Builders, housing is becoming increasingly affordable for Utah residents. Statistics released by the organization, following the third quarter of 2008 found that Ogden-Clearfield ranked 80 out of 223 metropolitan statistical areas for housing affordability, followed by Salt Lake at 136, Provo-Orem at 160 and the St. George area at 204. According to the index, 67 percent of homes sold in the Ogden-Clearifled area during the third quarter of 2008, were affordable to families earning the area’s median household income of $65,000. In Salt Lake City, 55.3 of homes were affordable to families making the median household income of $65,300. In Provo-Orem, 48.2 percent of homes were affordable to families making the median household income of $60,000. In the St. George area, the least affordable market in the metro, 33.8% of homes were affordable to families earning the median household income of $55,100.
3. Government Intervention—As we noted before, with real estate making up 20% of the Gross Domestic Production in this country, it is imperative that the government take action to correct the housing sector. We need to move through the current financial crisis and restore the flow of credit so that qualified buyers are able to take advantage of improved affordability and successfully purchase homes. To respond to this, the government is currently looking at a number of corrector options including tax benefits, home ownership credits, subsidies or interest rate stabilization, to name a few. President-elect Obama and his economic team are in the process of developing an economic recovery plan designed to help Main Street and Wall Street with an ultimate goal of creating at least 2.5 million jobs while rebuilding our infrastructure, improving our schools, reducing our dependence on oil and saving billions of dollars. According to CNNMoney.com’s December 23, 2008 article Obama Closing in on Stimulus Plan, Vice-President-elect Joe Biden was quoted saying, “While our short-term goal is to start creating jobs as quickly as possible, we plan to invest in areas that will produce long-term benefits for the long-term health of our economy.”
4. Slowing of Distressed Properties—The timing of our price recovery may depend on how quickly the government takes steps to mitigate foreclosures. We expect sales of distressed properties to peak in early 2009—a critical factor in the housing market that directly impacts the timeframe for stabilization in the median price. NAR reported in its December 17, 2008 article entitled Fed Action Creates Best Interest Rates in 50 Years, Realtors® Report, “To boost the economy, it is critical to stem the rising tide of foreclosures and boost home buyer confidence in the housing market,” McMillan said. “Lower interest rates coupled with increased foreclosure mitigation are the key ingredients to stabilizing the housing market and preserving communities and homeownership.”
Looking forward to 2009, many experts agree that the financial system will begin to show signs of stabilization in early 2009 and we may begin to see a real estate turnaround by the summer. If you are considering buying, this should serve as a good indicator that now may very well be the time to purchase real estate.
If you are considering selling, possibly more so than ever, you need a qualified Realtor® who can assist you in selling your home. It is usually not enough to simply post your home on the MLS and post a For Sale sign in the yard. You need someone like myself who understands the intricacies, inventory and challenges of your local market and someone who knows how to properly position your home so it stands out among the sea of listings currently available.
If you are considering buying or selling your home in 2009, I have the resources, knowledge and experience to properly represent you in today’s market. Contact me today for the representation you deserve.
10 Ways to Get Your Home Ready to Sell
Here are some ideas to get your home ready to sell. These are all things you do not want to overlook when buyers are coming through!
1. The lawn
See your yard as an extension of the house and give it a thorough once-over. Trim unruly bushes, pull weeds, spread fresh mulch and keep it mowed. Your yard sets the expectations of the buyers before they’ve even stepped in your house. Also, consider installing attractive outdoor lighting. It goes a long way (for a little investment) toward creating a dramatic mood. And if you have a dog, clean up the messes.
2. Smells
Give your house the "sniff test." Nothing is more distracting to a prospective buyer than a house that smells stale ... or worse. Often, you become so use to the smell of your own home that you don’t notice scents that might offend visitors. Empty the garbage, load dirty clothes into the washing machine, run a lemon rind through the disposal, give wood furniture a quick polish, and for goodness sake, clean the litter box.
3. Keep in neutral
Tone it down. Make your house a place that anyone could imagine living in. This means removing most evidence of your personal taste. Accent walls of vivid hues are all the rage now, except in the real-estate marketplace. Decorate with a rigorous devotion to beige. Neutral walls, pale furniture, soft lighting and inoffensive art all go a long way toward creating a crowd-pleasing interior. Store your collections in a safe place for the duration of the selling process. Remember, you want prospective buyers to look at the space, not get distracted by your stuffed animal collection.
4. Don’t stash it
Get rid of everything you wouldn’t want your mother to see. Prospective buyers will open the oven, investigate drawers for function and capacity, and study your closets and medicine cabinet. Part of preparing your house to sell is a ruthless purging of all these places and a thoughtful review of potentially embarrassing items.
5. Distracting doggie
The dog may not be so well-behaved when you’re not there. A barking dog is extremely distracting when prospects are trying to get a detailed look at your house. Even though he might be contained, his voice will carry. Take him with you if you can, or drop him off at a pet-friendly neighbor’s house and repay her with house-sitting or a similar favor.
6. Team loyalties
Put your fan-of-the-year behavior on hold for a while, and stash your team merchandise in the attic. You don’t want to lose a buyer over a foam finger.
The same goes for religious paraphernalia, although that may actually be less of a deal breaker.
7. Dirty dishes
Clean the dishes in the sink. People will not understand you were in a rush to get out the door that morning, they’ll think you’re a slob who couldn’t be bothered to put the dishes in the dishwasher -- and probably hasn’t taken very good care of the house. If it means you have to take your family out to breakfast, make sure to leave your kitchen pristine. The same goes for the bathroom. Dry the inside of the sink and the surrounding counter completely before you leave the house.
8. Fix Up
Everything in your home must be in good working order before you put it on the market. This process can take a couple of months, but you need to fix all broken fixtures, change all burned-out light bulbs, repair any flaws in the walls and refresh any paint that needs it. The same goes for outdated or worn wallpaper. Some things do not get better with age, and nothing dates a room more than '80s wallpaper.
9. Clear the space
You want buyers to immediately begin imagining themselves living in your house, and they’ll have a hard time seeing beyond the pictures of your family at Beaver Creek and the old issues of Garden & Gun. Even worse, they might find your taste in books laughable or your choice of evening wear tacky and decide they couldn’t possibly live in your house. So clear every surface, every side table, every coffee table, the sideboard, the desk, and the dining room table. You can put one item in each room, and it should be a plant or a flower arrangement.
10. Pack it in
Remove extra furniture that clutters the space -- side tables, footstools and magazine racks -- and takes up more space than a fixed chair. Create simple arrangements with maximum impact. Often people arrange their living room as if they’re hosting the neighborhood meeting, with all the furniture lined up along the walls. Instead, place a sofa facing the fireplace, and flank it with two chairs and coffee table in between. This will create visual depth and an inviting vignette.
1. The lawn
See your yard as an extension of the house and give it a thorough once-over. Trim unruly bushes, pull weeds, spread fresh mulch and keep it mowed. Your yard sets the expectations of the buyers before they’ve even stepped in your house. Also, consider installing attractive outdoor lighting. It goes a long way (for a little investment) toward creating a dramatic mood. And if you have a dog, clean up the messes.
2. Smells
Give your house the "sniff test." Nothing is more distracting to a prospective buyer than a house that smells stale ... or worse. Often, you become so use to the smell of your own home that you don’t notice scents that might offend visitors. Empty the garbage, load dirty clothes into the washing machine, run a lemon rind through the disposal, give wood furniture a quick polish, and for goodness sake, clean the litter box.
3. Keep in neutral
Tone it down. Make your house a place that anyone could imagine living in. This means removing most evidence of your personal taste. Accent walls of vivid hues are all the rage now, except in the real-estate marketplace. Decorate with a rigorous devotion to beige. Neutral walls, pale furniture, soft lighting and inoffensive art all go a long way toward creating a crowd-pleasing interior. Store your collections in a safe place for the duration of the selling process. Remember, you want prospective buyers to look at the space, not get distracted by your stuffed animal collection.
4. Don’t stash it
Get rid of everything you wouldn’t want your mother to see. Prospective buyers will open the oven, investigate drawers for function and capacity, and study your closets and medicine cabinet. Part of preparing your house to sell is a ruthless purging of all these places and a thoughtful review of potentially embarrassing items.
5. Distracting doggie
The dog may not be so well-behaved when you’re not there. A barking dog is extremely distracting when prospects are trying to get a detailed look at your house. Even though he might be contained, his voice will carry. Take him with you if you can, or drop him off at a pet-friendly neighbor’s house and repay her with house-sitting or a similar favor.
6. Team loyalties
Put your fan-of-the-year behavior on hold for a while, and stash your team merchandise in the attic. You don’t want to lose a buyer over a foam finger.
The same goes for religious paraphernalia, although that may actually be less of a deal breaker.
7. Dirty dishes
Clean the dishes in the sink. People will not understand you were in a rush to get out the door that morning, they’ll think you’re a slob who couldn’t be bothered to put the dishes in the dishwasher -- and probably hasn’t taken very good care of the house. If it means you have to take your family out to breakfast, make sure to leave your kitchen pristine. The same goes for the bathroom. Dry the inside of the sink and the surrounding counter completely before you leave the house.
8. Fix Up
Everything in your home must be in good working order before you put it on the market. This process can take a couple of months, but you need to fix all broken fixtures, change all burned-out light bulbs, repair any flaws in the walls and refresh any paint that needs it. The same goes for outdated or worn wallpaper. Some things do not get better with age, and nothing dates a room more than '80s wallpaper.
9. Clear the space
You want buyers to immediately begin imagining themselves living in your house, and they’ll have a hard time seeing beyond the pictures of your family at Beaver Creek and the old issues of Garden & Gun. Even worse, they might find your taste in books laughable or your choice of evening wear tacky and decide they couldn’t possibly live in your house. So clear every surface, every side table, every coffee table, the sideboard, the desk, and the dining room table. You can put one item in each room, and it should be a plant or a flower arrangement.
10. Pack it in
Remove extra furniture that clutters the space -- side tables, footstools and magazine racks -- and takes up more space than a fixed chair. Create simple arrangements with maximum impact. Often people arrange their living room as if they’re hosting the neighborhood meeting, with all the furniture lined up along the walls. Instead, place a sofa facing the fireplace, and flank it with two chairs and coffee table in between. This will create visual depth and an inviting vignette.
Friday, January 2, 2009
A New Year
HAPPY NEW YEAR 2009!!!
I am excited about 2009. My last month of 2008 was really busy with several buyers finding homes and new buyers beginning their search! I also have sellers who are being successful with consistent house showings and very interested buyers discussing purchasing terms!
There are a few factors that I think are creating this surge of activity. First, historic interest rates are moving buyers to lock in at great rate. Second, there are about 1,400 active Realtors in Utah County who have paid their Board dues. (Just six months ago we had 2,200) Third, 697 active buyers in the market as of today, that is a great number of buyers for this time of year! Fourth, listings (homes for sale) are down from 5,306 during the start of the summer to 4,321 as of today, almost 1000 homes less.
Some good things....
1. The interest rate….it is hovering about 5 % and even dropped during one morning right before Christmas, to 4.5%.
Also if you are thinking of refinancing now is a great time. The rule of thumb with a refinance is that you are going to be in the home longer than the 3 years, and to refinance when you can get the rate to drop more that 1 % below your current rate.
2. Ask me for a market update on your specific market, city, or Utah County in general. Right now the number of Active buyers (under contract and sold for the last 45 days), is revealing in light of the number of listings.
3. HAPPY NEW YEAR!!! 2009 is going to be fine! The housing market is improving! I would love to talk to you about your New Year Resolutions and how those apply to your current housing situation!
I am excited about 2009. My last month of 2008 was really busy with several buyers finding homes and new buyers beginning their search! I also have sellers who are being successful with consistent house showings and very interested buyers discussing purchasing terms!
There are a few factors that I think are creating this surge of activity. First, historic interest rates are moving buyers to lock in at great rate. Second, there are about 1,400 active Realtors in Utah County who have paid their Board dues. (Just six months ago we had 2,200) Third, 697 active buyers in the market as of today, that is a great number of buyers for this time of year! Fourth, listings (homes for sale) are down from 5,306 during the start of the summer to 4,321 as of today, almost 1000 homes less.
Some good things....
1. The interest rate….it is hovering about 5 % and even dropped during one morning right before Christmas, to 4.5%.
Also if you are thinking of refinancing now is a great time. The rule of thumb with a refinance is that you are going to be in the home longer than the 3 years, and to refinance when you can get the rate to drop more that 1 % below your current rate.
2. Ask me for a market update on your specific market, city, or Utah County in general. Right now the number of Active buyers (under contract and sold for the last 45 days), is revealing in light of the number of listings.
3. HAPPY NEW YEAR!!! 2009 is going to be fine! The housing market is improving! I would love to talk to you about your New Year Resolutions and how those apply to your current housing situation!
Friday, October 31, 2008
Home Sales History
Let's take a look back in History! I think everyone is forgetting how times used to be just 3-8 years ago!!!
Consumers only hear the negative news. Even others in my industry are saying how bad the market is. But we have agents in our Coldwell Banker office who are experiencing their most profitable year yet!
I did some checking and according to our MLS statistics in Utah County we are selling about as many homes in the same amount of time that we did in 2004... just 4 years ago!! And before that we were selling LESS than we are selling now!!!
Here are the actual numbers:
September 2008 sales: 433 Days on the market: 87 (Election year)
September 2007 sales: 400 Days on the market: 53
September 2006 sales: 644 Days on the market: 39
September 2005 sales: 662 Days on the market: 70
September 2004 sales: 468 Days on the market: 79 (Election year)
September 2003 sales: 428 Days on the market: 81
September 2002 sales: 367 Days on the market: 86
September 2001 sales: 280 Days on the market: 88
September 2000 sales: 289 Days on the market: 95 (Election year)
September 1999 sales: 316 Days on the market: 84
What happened??? Well, home sales went up 50% in a year and that only lasted for two years!! Now they are back down to 'normal'! Do you see the pattern during Election years? There were less home sales the year before and after election years!
The market is doing just fine. Buyers are buying and sellers are selling. Buyers are getting loans. Sellers are lowering their prices to more affordable price tags and then finding they can buy a lower priced home too.
I am looking forward to 2009 because 2008 was great. The market is stabilizing. The elections will be over. The economy is stabilizing. Utah is growing. Jobs are available. All is well.
Consumers only hear the negative news. Even others in my industry are saying how bad the market is. But we have agents in our Coldwell Banker office who are experiencing their most profitable year yet!
I did some checking and according to our MLS statistics in Utah County we are selling about as many homes in the same amount of time that we did in 2004... just 4 years ago!! And before that we were selling LESS than we are selling now!!!
Here are the actual numbers:
September 2008 sales: 433 Days on the market: 87 (Election year)
September 2007 sales: 400 Days on the market: 53
September 2006 sales: 644 Days on the market: 39
September 2005 sales: 662 Days on the market: 70
September 2004 sales: 468 Days on the market: 79 (Election year)
September 2003 sales: 428 Days on the market: 81
September 2002 sales: 367 Days on the market: 86
September 2001 sales: 280 Days on the market: 88
September 2000 sales: 289 Days on the market: 95 (Election year)
September 1999 sales: 316 Days on the market: 84
What happened??? Well, home sales went up 50% in a year and that only lasted for two years!! Now they are back down to 'normal'! Do you see the pattern during Election years? There were less home sales the year before and after election years!
The market is doing just fine. Buyers are buying and sellers are selling. Buyers are getting loans. Sellers are lowering their prices to more affordable price tags and then finding they can buy a lower priced home too.
I am looking forward to 2009 because 2008 was great. The market is stabilizing. The elections will be over. The economy is stabilizing. Utah is growing. Jobs are available. All is well.
Thursday, July 31, 2008
President Bush signs Housing and Economic Recovery Act of 2008
President Bush signed the Housing and Economic Recovery Act of 2008 today, a bill that will assist an estimated 400,000 homeowners facing foreclosure by allowing them to refinance their current mortgages with a Federal Housing Administration-backed loan. The bill also permanently increases the conforming loan limit to as high as $625,500.
“One of the biggest reasons we’ve seen a slowdown in home sales is because buyers are having difficulty obtaining mortgage funds. That’s why this bill is significant: It increases the access to affordable, stable mortgages,” said Chris Sloan, president-elect of the Utah Association of REALTORS®.
The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area’s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area’s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008.
Another part of the bill includes a temporary tax credit for first-time home buyers of up to $7,500 for those who purchase between April 9, 2008, and July 1, 2009. This credit is available to anyone buying their first house or anyone who has not owned in three years. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full credit. A home is eligible for the credit if it is any residence that will be used as a primary residence (single-family, townhouse, condo, etc.)
For more detailed information about the tax credit, visit www.federalhousingtaxcredit.com
“One of the biggest reasons we’ve seen a slowdown in home sales is because buyers are having difficulty obtaining mortgage funds. That’s why this bill is significant: It increases the access to affordable, stable mortgages,” said Chris Sloan, president-elect of the Utah Association of REALTORS®.
The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area’s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area’s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008.
Another part of the bill includes a temporary tax credit for first-time home buyers of up to $7,500 for those who purchase between April 9, 2008, and July 1, 2009. This credit is available to anyone buying their first house or anyone who has not owned in three years. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full credit. A home is eligible for the credit if it is any residence that will be used as a primary residence (single-family, townhouse, condo, etc.)
For more detailed information about the tax credit, visit www.federalhousingtaxcredit.com
Sunday, July 6, 2008
Checklist
CHECKLIST: Remember the homes you visit!
Buyers look at an average of 10-25 homes before settling on the one! That's a lot to keep track of, especially considering all of the pros, cons, and features of each.
I want my buyers to make the best use of their time looking at homes, so I keep notes of their comments on all items throughout the home. The good, the bad, the ugly, and the wonderful!
We can use this checklist to track and compare the homes you visit. With this handy record, you'll make fewer revisits and have an easier time determining the best house for you. One tip: You might want to bring a digital camera to take pictures of homes and features that you really like so you can look through them later to refresh your memory.
Besides jotting down notes on each relevant item, you may want to rate features, with 10 being the best and 0 being nonexistent. (If a particular item holds more importance for you, add more points.) Average your ratings for an overall score.
GENERAL
Neighborhood/location______________
Curb appeal/exterior______________
View______________
Age of house______________
Amount of natural light______________
Square footage and room sizes______________
Floor plan and traffic flow______________
INTERIOR (note age and condition where appropriate)
Flooring______________
Wall color, coverings______________
Cracks, crumbling walls______________
Bathrooms______________
Water pressure______________
Appliances______________
Air conditioning________ Central Air________ Window Units_________ None________
"Wired" features*______________
General storage space______________
Kitchen storage______________
Items included/excluded ______________
EXTERIOR (note age and condition where appropriate)
Gutters______________Clean?______Covered?_______
Chimney/fireplace______________
Roof______________
Garage size_________Attached________ Detached________
Landscaping/outdoor seating areas______________
OVERALL RATING:______________
Notes and overall impressions______________
* High-speed data lines, cable connection, jacks _______________
** Appliances, lighting fixtures, ceiling fans, window treatments, furniture, built-ins _______________
Note: This list should not replace a formal inspection by a licensed professional home inspector.
"A house is made of walls and beams. A home is built with love and dreams."
Source of rating idea: Ralph Roberts with Ralph R. Roberts Real Estate, Warren, Mich.
Buyers look at an average of 10-25 homes before settling on the one! That's a lot to keep track of, especially considering all of the pros, cons, and features of each.
I want my buyers to make the best use of their time looking at homes, so I keep notes of their comments on all items throughout the home. The good, the bad, the ugly, and the wonderful!
We can use this checklist to track and compare the homes you visit. With this handy record, you'll make fewer revisits and have an easier time determining the best house for you. One tip: You might want to bring a digital camera to take pictures of homes and features that you really like so you can look through them later to refresh your memory.
Besides jotting down notes on each relevant item, you may want to rate features, with 10 being the best and 0 being nonexistent. (If a particular item holds more importance for you, add more points.) Average your ratings for an overall score.
GENERAL
Neighborhood/location______________
Curb appeal/exterior______________
View______________
Age of house______________
Amount of natural light______________
Square footage and room sizes______________
Floor plan and traffic flow______________
INTERIOR (note age and condition where appropriate)
Flooring______________
Wall color, coverings______________
Cracks, crumbling walls______________
Bathrooms______________
Water pressure______________
Appliances______________
Air conditioning________ Central Air________ Window Units_________ None________
"Wired" features*______________
General storage space______________
Kitchen storage______________
Items included/excluded ______________
EXTERIOR (note age and condition where appropriate)
Gutters______________Clean?______Covered?_______
Chimney/fireplace______________
Roof______________
Garage size_________Attached________ Detached________
Landscaping/outdoor seating areas______________
OVERALL RATING:______________
Notes and overall impressions______________
* High-speed data lines, cable connection, jacks _______________
** Appliances, lighting fixtures, ceiling fans, window treatments, furniture, built-ins _______________
Note: This list should not replace a formal inspection by a licensed professional home inspector.
"A house is made of walls and beams. A home is built with love and dreams."
Source of rating idea: Ralph Roberts with Ralph R. Roberts Real Estate, Warren, Mich.
Thursday, July 3, 2008
Questions for Condos
9 Questions to Ask The Condo Association
When you buy a condo, you join an association of owners that determines everything from whether to plant flowers in the courtyard to how to finance a major roof project. Before you buy, contact the condo association with the following questions. In the process, you'll learn how responsive-and organized-its members are!
1. What percentage of units are owner-occupied? What percentage are tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale. (And be FHA approved)
2. What covenants, conditions, bylaws, and restrictions govern the property? Is there a grandfather clause in place? You may find, for instance, that those who buy a property after a certain date can't rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live with them.
3. How much does the association keep in reserve? How is that money being invested?
4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.
5. What does and doesn't the monthly homeowner assessment cover?? The common area maintenance, recreational facilities, trash collection, insurance, cable TV, internet, water, snow removal?
6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board's fiscal policy.
7. How much turnover occurs in the building?
8. Is the project in litigation? If the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly.
9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions of the development.
A final note: Remember to play nice. When you buy into a condo building or homeowners association, you join a group with a variety of personalities and agendas. Negotiation and cooperation are key to living in harmony.
Sources: Kim Daugherty, Coldwell Banker Gundaker, St. Louis, and Realtor.org
When you buy a condo, you join an association of owners that determines everything from whether to plant flowers in the courtyard to how to finance a major roof project. Before you buy, contact the condo association with the following questions. In the process, you'll learn how responsive-and organized-its members are!
1. What percentage of units are owner-occupied? What percentage are tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale. (And be FHA approved)
2. What covenants, conditions, bylaws, and restrictions govern the property? Is there a grandfather clause in place? You may find, for instance, that those who buy a property after a certain date can't rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live with them.
3. How much does the association keep in reserve? How is that money being invested?
4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.
5. What does and doesn't the monthly homeowner assessment cover?? The common area maintenance, recreational facilities, trash collection, insurance, cable TV, internet, water, snow removal?
6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board's fiscal policy.
7. How much turnover occurs in the building?
8. Is the project in litigation? If the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly.
9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions of the development.
A final note: Remember to play nice. When you buy into a condo building or homeowners association, you join a group with a variety of personalities and agendas. Negotiation and cooperation are key to living in harmony.
Sources: Kim Daugherty, Coldwell Banker Gundaker, St. Louis, and Realtor.org
Friday, June 20, 2008
Home Hazards and Potential Dangers
4 Home Hazards
These issues don't necessarily cause illness but are serious nonetheless. The following are common hazards home inspectors often find:
1. Faulty wiring: Overloaded circuits, loose wires, missing covers on distribution boxes, abandoned appliances, or aluminum wiring, which can become problematic with age.
2. Loose guard rails: Stairway guardrails, especially on exterior stairways, that are not securely connected. Decks - often installed by home owners unfamiliar with building codes - that have loose boards.
3. Shower doors: Shower doors that lack safety glass and are not properly secured. A home owner who slips when stepping out of the bathtub and grabs a glass door that isn't properly fastened could be severely injured.
4. Drainage problems: Downspouts discharging next to an exterior wall or a negative grade that slopes toward the home and brings water toward the home, causing foundation deterioration. This can lead to water damage, often seen in the basement, and possibly mold growth. Look for cracks, foundation wall stains, and musty, damp smells.
5 POTENTIAL DANGERS IN A HOME
Home inspection company Pillar to Post has identified these common dangers. Buyers and sellers need to contact a home inspector to make sure these problems aren't present.
RADON
This colorless, odorless gas can seep into the home from the ground and has been called the second most common cause of lung cancer.
What to look for: Basements or any protrusions into the ground offer entry points for radon. The Environmental Protection Agency publishes a map of high prevalence areas for radon .
A radon test can determine if high levels of radon are present.
ASBESTOS
This fibrous material - once popular in building materials because it provides heat insulation and fire resistance - was banned in 1985. It may still be found in older homes' insulation materials, floor tiles, roof coverings, and siding. If disturbed or damaged, it can enter the air and cause severe illness.
What to look for: Homes built before 1985 are at risk of having asbestos within construction materials. Home owners should be careful when remodeling because disturbing insulation may cause the asbestos to become airborne.
LEAD
This toxic metal, used in home products for many years, can contribute to several health problems, especially among children. Exposure can occur from deteriorating lead-based paint, lead pipes, or lead-contaminated dust or soil.
What to look for: Homes built prior to 1978 may have lead present. Look for peeling paint and check old pipes. To get a HUD-insured loan, buyers must show a certificate that homes built prior to 1978 are lead-safe.
HAZARDOUS PRODUCTS
Stockpiles of household items - such as paint solvents, pesticides, fertilizers, and motor oils - can create a dangerous situation if not properly stored or disposed. They can cause illness or even death if small amounts are ingested.
What to look for: Make sure these items aren't tucked away in corners, crawl spaces, garages, or garden sheds. Home owners often don't realize these products can pose a danger and may forget they're storing them. But buyers don't want it to become their problem - and expense - to dispose of. If these products are found, the buyer should require their removal and get a disposal certificate prior to closing, which proves the products were disposed of properly and not just dumped in the backyard.
GROUNDWATER CONTAMINATION
Hazardous chemicals that are illegally disposed of can seep through the soil and enter water supplies. A leaking underground oil tank or faulty septic system can also lead to contamination.
What to look for: Look for any conditions that may be conducive to leakage. Homes near light industrial areas or facilities may be at risk. Also a concern: areas once used for industry that are now residential. Pillar to Post offers a Neighborhood Environmental Report that details any dangers or remedies of environmental incidences and sources of contamination that have occurred at a specified address and within its vicinity.
These issues don't necessarily cause illness but are serious nonetheless. The following are common hazards home inspectors often find:
1. Faulty wiring: Overloaded circuits, loose wires, missing covers on distribution boxes, abandoned appliances, or aluminum wiring, which can become problematic with age.
2. Loose guard rails: Stairway guardrails, especially on exterior stairways, that are not securely connected. Decks - often installed by home owners unfamiliar with building codes - that have loose boards.
3. Shower doors: Shower doors that lack safety glass and are not properly secured. A home owner who slips when stepping out of the bathtub and grabs a glass door that isn't properly fastened could be severely injured.
4. Drainage problems: Downspouts discharging next to an exterior wall or a negative grade that slopes toward the home and brings water toward the home, causing foundation deterioration. This can lead to water damage, often seen in the basement, and possibly mold growth. Look for cracks, foundation wall stains, and musty, damp smells.
5 POTENTIAL DANGERS IN A HOME
Home inspection company Pillar to Post has identified these common dangers. Buyers and sellers need to contact a home inspector to make sure these problems aren't present.
RADON
This colorless, odorless gas can seep into the home from the ground and has been called the second most common cause of lung cancer.
What to look for: Basements or any protrusions into the ground offer entry points for radon. The Environmental Protection Agency publishes a map of high prevalence areas for radon
A radon test can determine if high levels of radon are present.
ASBESTOS
This fibrous material - once popular in building materials because it provides heat insulation and fire resistance - was banned in 1985. It may still be found in older homes' insulation materials, floor tiles, roof coverings, and siding. If disturbed or damaged, it can enter the air and cause severe illness.
What to look for: Homes built before 1985 are at risk of having asbestos within construction materials. Home owners should be careful when remodeling because disturbing insulation may cause the asbestos to become airborne.
LEAD
This toxic metal, used in home products for many years, can contribute to several health problems, especially among children. Exposure can occur from deteriorating lead-based paint, lead pipes, or lead-contaminated dust or soil.
What to look for: Homes built prior to 1978 may have lead present. Look for peeling paint and check old pipes. To get a HUD-insured loan, buyers must show a certificate that homes built prior to 1978 are lead-safe.
HAZARDOUS PRODUCTS
Stockpiles of household items - such as paint solvents, pesticides, fertilizers, and motor oils - can create a dangerous situation if not properly stored or disposed. They can cause illness or even death if small amounts are ingested.
What to look for: Make sure these items aren't tucked away in corners, crawl spaces, garages, or garden sheds. Home owners often don't realize these products can pose a danger and may forget they're storing them. But buyers don't want it to become their problem - and expense - to dispose of. If these products are found, the buyer should require their removal and get a disposal certificate prior to closing, which proves the products were disposed of properly and not just dumped in the backyard.
GROUNDWATER CONTAMINATION
Hazardous chemicals that are illegally disposed of can seep through the soil and enter water supplies. A leaking underground oil tank or faulty septic system can also lead to contamination.
What to look for: Look for any conditions that may be conducive to leakage. Homes near light industrial areas or facilities may be at risk. Also a concern: areas once used for industry that are now residential. Pillar to Post offers a Neighborhood Environmental Report that details any dangers or remedies of environmental incidences and sources of contamination that have occurred at a specified address and within its vicinity.
12 Questions for a Home Inspector!
Disputes over property condition and repairs can kill a deal in a hurry. Take the time to schedule inspections and find out the condition of the property as early as possible to allow adequate time for resolving any issues that arise.
12 Questions Buyers Should Ask the Home Inspector
1. Are you a member, in good standing, of a professional inspectors organization, such as the American Society of Home Inspectors?
2. Are you licensed? (Required only in some states)
3. What systems-plumbing, heating, electrical-will the inspection include?
4. How long will the inspection take?
5. How much will the inspection cost?
6. Can we accompany you on the inspection?
7. Do you have references?
8. Do you carry errors and omissions insurance?
9. What is your specialty and what sort of continuing education have you completed?
Note: If the inspector is a plumber by training and has no expertise in home construction, the inspection might not be comprehensive.
10. Do you provide a written report at no extra charge?
11. Does the report include estimates of repair costs?
12. Does your company also do repairs when you find problems? If the answer is yes, it may indicate a conflict of interest.
TIP: If you have particular concerns about one area of the home-the foundation, for instance-you might want to hire a second inspector who specializes in that component.
12 Questions Buyers Should Ask the Home Inspector
1. Are you a member, in good standing, of a professional inspectors organization, such as the American Society of Home Inspectors?
2. Are you licensed? (Required only in some states)
3. What systems-plumbing, heating, electrical-will the inspection include?
4. How long will the inspection take?
5. How much will the inspection cost?
6. Can we accompany you on the inspection?
7. Do you have references?
8. Do you carry errors and omissions insurance?
9. What is your specialty and what sort of continuing education have you completed?
Note: If the inspector is a plumber by training and has no expertise in home construction, the inspection might not be comprehensive.
10. Do you provide a written report at no extra charge?
11. Does the report include estimates of repair costs?
12. Does your company also do repairs when you find problems? If the answer is yes, it may indicate a conflict of interest.
TIP: If you have particular concerns about one area of the home-the foundation, for instance-you might want to hire a second inspector who specializes in that component.
Monday, April 21, 2008
New Area Code
New 385 Area Code For Utah
On July 11, 2007, the Utah Public Service Commission issued an order approving the deployment of a new area code for use in the area presently served by the 801 area code.
The new area code, 385, will provide additional telephone numbers that are necessary to support the growth in Utah residents, telecommunications service providers, available telecommunications products, and additional lines.
The new 385 area code will cover the same geographic area as the existing 801 area code. In general, the introduction of the 385 area code will affect residents in the following counties: Davis, Morgan, Salt Lake, Weber, and Utah.
When will the new 385 area code become effective?
As early as March 29, 2009, new telephone numbers will be assigned with the new 385 area code.
What will change as a result of the new area code? Specifically, how will telephone dialing change?
The way customers dial a local call will change; customers will be required to dial 10 digits for all local calls, whether the telephone number they utilize is in the 801 area code or the new 385 area code.
So, when will customers be required to use this new dialing arrangement?
Permissive 10-digit dialing begins June 1, 2008 and ends March 1, 2009. During permissive dialing, calls can be dialed with either 7 or 10 digits.
Mandatory 10-digit dialing begins March 1, 2009. After this date, calls dialed with 7 digits will not go through. The caller will get a recorded announcement instructing them to hang up and dial their call with 10 digits.
What will not change as a result of the new area code?
Customers with existing 801 area code telephone numbers will HAVE NO CHANGE to their area code or telephone number.
Local calling areas will remain the same; the price of a call, coverage area, or other rates and services will not change. In other words, if it is presently a local call, it will still be a local call without any toll charges.
Customers can still dial just three digits to reach 911 and 411.
What should I do to ensure that my home telephone service continues to operate smoothly?
You may want to do some of the following things to make sure your calls will complete as dialed:
If necessary, reprogram equipment such as automatic-dialers, fax machines, and computer modems before mandatory dialing begins.
Be sure everyone in your household is aware that 10-digit dialing for all local calls will be required.
On July 11, 2007, the Utah Public Service Commission issued an order approving the deployment of a new area code for use in the area presently served by the 801 area code.
The new area code, 385, will provide additional telephone numbers that are necessary to support the growth in Utah residents, telecommunications service providers, available telecommunications products, and additional lines.
The new 385 area code will cover the same geographic area as the existing 801 area code. In general, the introduction of the 385 area code will affect residents in the following counties: Davis, Morgan, Salt Lake, Weber, and Utah.
When will the new 385 area code become effective?
As early as March 29, 2009, new telephone numbers will be assigned with the new 385 area code.
What will change as a result of the new area code? Specifically, how will telephone dialing change?
The way customers dial a local call will change; customers will be required to dial 10 digits for all local calls, whether the telephone number they utilize is in the 801 area code or the new 385 area code.
So, when will customers be required to use this new dialing arrangement?
Permissive 10-digit dialing begins June 1, 2008 and ends March 1, 2009. During permissive dialing, calls can be dialed with either 7 or 10 digits.
Mandatory 10-digit dialing begins March 1, 2009. After this date, calls dialed with 7 digits will not go through. The caller will get a recorded announcement instructing them to hang up and dial their call with 10 digits.
What will not change as a result of the new area code?
Customers with existing 801 area code telephone numbers will HAVE NO CHANGE to their area code or telephone number.
Local calling areas will remain the same; the price of a call, coverage area, or other rates and services will not change. In other words, if it is presently a local call, it will still be a local call without any toll charges.
Customers can still dial just three digits to reach 911 and 411.
What should I do to ensure that my home telephone service continues to operate smoothly?
You may want to do some of the following things to make sure your calls will complete as dialed:
If necessary, reprogram equipment such as automatic-dialers, fax machines, and computer modems before mandatory dialing begins.
Be sure everyone in your household is aware that 10-digit dialing for all local calls will be required.
Tuesday, March 4, 2008
10 Ways to Prepare for Homeownership
10 Ways to Prepare for Homeownership
(Tips from Realtor.org)
1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
2. Develop your home wish list. Then, prioritize the features on your list.
3. Select where you want to live. Compile a list of three or four neighborhoods you'd like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.
4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don't forget to factor in closing costs. Closing costs - including taxes, attorney's fee, and transfer fees - average between 2 and 7 percent of the home price.
5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options - such as 30-year or 15-year fixed mortgages or ARMs - and decide what's best for you.
7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank statements.
8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers.
9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
10. Contact a REALTOR®. Find an experienced REALTOR® who can help you through the process.
(Tips from Realtor.org)
1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
2. Develop your home wish list. Then, prioritize the features on your list.
3. Select where you want to live. Compile a list of three or four neighborhoods you'd like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.
4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don't forget to factor in closing costs. Closing costs - including taxes, attorney's fee, and transfer fees - average between 2 and 7 percent of the home price.
5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options - such as 30-year or 15-year fixed mortgages or ARMs - and decide what's best for you.
7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank statements.
8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers.
9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
10. Contact a REALTOR®. Find an experienced REALTOR® who can help you through the process.
Friday, February 15, 2008
Home Warranty
Your home is your most valuable asset. You protect your home with homeowner's insurance, but what about the items not covered by insurance? Your home systems and appliances will not last forever. The average life expectancy is about 13 years. You can help protect yourself against the financial sting of repairs by purchasing a home warranty!
Affordable coverage can save you thousands of dollars. Homeowners spend an average of $900 each year for repair on home systems and appliances. Whether you are selling or buying you can benefit from the financial protection of a home warranty. The cost of the home warranty now can save you from budget-breaking repair expenses later. A seller can have warranty coverage for the listing period up to 180 days or close of escrow. The buyers coverage begins at close of escrow and will continue for one year after close of escrow.
Make sure you know what your home warranty covers and what it doesn't. Your home warranty does not cover ALL systems and appliances. Lack of maintenance of your appliance or home system will result in denial of coverage. Also, improper installation of an item that results in damage will be denied. And finally, code violations of a home system or structure may result in denial of the warranty service.
Some systems that can be covered by a good home warranty are:
Plumbing, water heater, electrical system, dishwasher, garbage disposal, built in microwave, range, oven, trash compactor, garage door openers, ceiling fans, telephone wiring, central vacuum system, doorbell and smoke detectors.
A home warranty will also offer coverage for other home systems for an additional small fee. These include:
Heating system, ductwork, air conditioner, refrigerator, washer, dryer, well pump, pool, spa, and septic.
There are several home warranty companies. Your realtor can give you some recommendations. It is best to spend a little money now on a home warranty to protect yourself from costly repairs later.
Affordable coverage can save you thousands of dollars. Homeowners spend an average of $900 each year for repair on home systems and appliances. Whether you are selling or buying you can benefit from the financial protection of a home warranty. The cost of the home warranty now can save you from budget-breaking repair expenses later. A seller can have warranty coverage for the listing period up to 180 days or close of escrow. The buyers coverage begins at close of escrow and will continue for one year after close of escrow.
Make sure you know what your home warranty covers and what it doesn't. Your home warranty does not cover ALL systems and appliances. Lack of maintenance of your appliance or home system will result in denial of coverage. Also, improper installation of an item that results in damage will be denied. And finally, code violations of a home system or structure may result in denial of the warranty service.
Some systems that can be covered by a good home warranty are:
Plumbing, water heater, electrical system, dishwasher, garbage disposal, built in microwave, range, oven, trash compactor, garage door openers, ceiling fans, telephone wiring, central vacuum system, doorbell and smoke detectors.
A home warranty will also offer coverage for other home systems for an additional small fee. These include:
Heating system, ductwork, air conditioner, refrigerator, washer, dryer, well pump, pool, spa, and septic.
There are several home warranty companies. Your realtor can give you some recommendations. It is best to spend a little money now on a home warranty to protect yourself from costly repairs later.
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