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)
Thursday, May 14, 2009
Tuesday, May 12, 2009
Good News for Utah
Good News for Utah
Three of Utah's metro areas were included in the top-ten fastest growing metropolitan areas in a report released by the Census Bureau this month. The Provo-Orem, Logan, and St. George metro areas all made the top-ten list. The reports list 363 metropolitan areas throughout the nation.
The Provo-Orem metro area saw population growth of 3.4 percent, which was the sixth highest in the nation. The Logan metro area ranked ninth nationally with a 3.2 percent increase, and coming in at number ten was the St. George metro area with a 3.1 percent increase.
While the bulk of Utah's population growth came via natural growth, which is the difference between births and deaths in a year, one-third of Utah's growth came from in-migration from outside the state. This is an indication of Utah's overall economic strength.
Although the economy has slowed down, Utah is still outperforming most of the nation and is maintaining a substantially lower unemployment rate. This would indicate that we will still continue to see an increase in net in-migration to the state. "Business leaders and individuals, even internationally, are recognizing the long term trends in Utah. The state is being recognized as a long term 'hot spot' and companies must plan for the long-term; they want stability and security," says, Pam Perlich senior research economist at the University of Utah.
Three of Utah's metro areas were included in the top-ten fastest growing metropolitan areas in a report released by the Census Bureau this month. The Provo-Orem, Logan, and St. George metro areas all made the top-ten list. The reports list 363 metropolitan areas throughout the nation.
The Provo-Orem metro area saw population growth of 3.4 percent, which was the sixth highest in the nation. The Logan metro area ranked ninth nationally with a 3.2 percent increase, and coming in at number ten was the St. George metro area with a 3.1 percent increase.
While the bulk of Utah's population growth came via natural growth, which is the difference between births and deaths in a year, one-third of Utah's growth came from in-migration from outside the state. This is an indication of Utah's overall economic strength.
Although the economy has slowed down, Utah is still outperforming most of the nation and is maintaining a substantially lower unemployment rate. This would indicate that we will still continue to see an increase in net in-migration to the state. "Business leaders and individuals, even internationally, are recognizing the long term trends in Utah. The state is being recognized as a long term 'hot spot' and companies must plan for the long-term; they want stability and security," says, Pam Perlich senior research economist at the University of Utah.
Saturday, May 9, 2009
Homes Get Multiple Offers
The real estate sector of our economy continues to show some positive signs—a good symbol that the programs that the government has put in place are helping. USA Today reported earlier this week that “More homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures.” It’s exactly what we’ve seen locally in Utah County. The first time, entry level home buyer market is fueling this recovery. It’s something we certainly forecasted and it’s finally coming to fruition. Now, we’re seeing, in many markets, multiple offers on starter homes and even some frustrated buyers who are scratching their heads and wondering what happened to the buyer’s market. We warned that the change could come before we knew it and in some price ranges, it might’ve already come and went.
Here is a clip from the news article:
By Julie Schmit, USA TODAY
More homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures.
Multiple bids have picked up in recent months in California and other states hit hard by foreclosures and steep price drops, real estate executives say.
"If a house is in a good neighborhood, is maintained and is a good value, it'll get multiple offers," says Julie Holt, owner of Anclote Title Services in Tarpon Springs, Fla. One in 10 homes now draw multiple offers, up from one in 30 last fall, she says.
Multiple bids usually signify a market in which prices are rising and buyers outnumber sellers. That's not true now, given rampant foreclosures, still-falling prices in many regions and low demand for higher-price homes. Multiple offers on distressed properties are also not new, but their recent frequency offers hope for the real estate market, says Beth Peerce, treasurer of the California Association of Realtors (CAR).
"When you begin to see people willing to fight for a property, that's a good sign," she says. "We are beginning to see the beginning of the end of a disaster time."
Here is a clip from the news article:
By Julie Schmit, USA TODAY
More homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures.
Multiple bids have picked up in recent months in California and other states hit hard by foreclosures and steep price drops, real estate executives say.
"If a house is in a good neighborhood, is maintained and is a good value, it'll get multiple offers," says Julie Holt, owner of Anclote Title Services in Tarpon Springs, Fla. One in 10 homes now draw multiple offers, up from one in 30 last fall, she says.
Multiple bids usually signify a market in which prices are rising and buyers outnumber sellers. That's not true now, given rampant foreclosures, still-falling prices in many regions and low demand for higher-price homes. Multiple offers on distressed properties are also not new, but their recent frequency offers hope for the real estate market, says Beth Peerce, treasurer of the California Association of Realtors (CAR).
"When you begin to see people willing to fight for a property, that's a good sign," she says. "We are beginning to see the beginning of the end of a disaster time."
Friday, May 1, 2009
End Is Near
“The End is Near”
Well we’ve certainly seen some interesting twists in the market over the last week. Nationally, new mortgage applications for home purchases and refinancings were up 77 percent from the same week in April 2008.
Mortgage rates continue to average well below 5 percent – 4.7 percent last week on average for 30-year fixed rate loans and 4.5 percent for 15 year loans. Rates like these are a major factor pushing applications.
Nearly 600,000 home buyers have already claimed either the $7,500 tax credit from last year or the $8,000 credit for this year, according to IRS data cited by the National Association of Home Builders.
Also of interest, new home sales have been showing signs of improvement. Last week the Commerce Department reported that March sales were off just 0.6 percent, exceeding analysts’ expectations, after climbing in February.
In other positive trends, interestingly enough, The Wall Street Journal reported this week, “Analysts say: The end (of declines) is near. While new home sales show signs of stabilizing as builders cut back on building and boom-bloated inventories are slowly absorbed, prices of both new and existing homes are still being dragged down by a flood of foreclosures. Still, the experts were optimistic that the federal government's efforts to stem foreclosures eventually will have an effect by the end of this year or early next year; Mark Zandi, chief economist of Moody's Economy.com, even ventured (jokingly) a date when home prices would stop falling—December 15, 2009.”
It’s hard to know whether or not the sum of these indicators is equivalent to a recovery but my sense is that the end is near—if we haven’t already passed it here in Utah (some experts are even saying that we’ve already hit bottom and we’re in slow recovery mode). When the bottom has hit exactly is hard to predict but based on what I am seeing in our offices, based on the statistics that I am seeing on pendings and buyer interest/activity and based on the overall national recovery effort, it seems the prediction by many experts (in late 2008) that we would hit bottom by the middle of 2009 is probably not far off.
Now for those of you who are “timing” the market, I have to caution you on this. The only way you know that the market has hit bottom is when it is on its way up. While certainly housing is one of the biggest and most important investments we will make in our lifetime, it is also important to remember that our home is so much more than an investment. It is not a stock that we trade quickly. It is where we raise our family, where we create memories and where we plant our roots. So as you try to “time” the market, remember these key facts and make sure that beyond the investment, you are choosing a home that will bring you the happiness you deserve. Because in the end, that is what matters most. Choose the home that is right for you and your family right now and for years to come. Historically speaking, Utah real estate brings long-term investment gains for almost all homeowners so if you choose the home that is right for you, you almost can’t lose.
Well we’ve certainly seen some interesting twists in the market over the last week. Nationally, new mortgage applications for home purchases and refinancings were up 77 percent from the same week in April 2008.
Mortgage rates continue to average well below 5 percent – 4.7 percent last week on average for 30-year fixed rate loans and 4.5 percent for 15 year loans. Rates like these are a major factor pushing applications.
Nearly 600,000 home buyers have already claimed either the $7,500 tax credit from last year or the $8,000 credit for this year, according to IRS data cited by the National Association of Home Builders.
Also of interest, new home sales have been showing signs of improvement. Last week the Commerce Department reported that March sales were off just 0.6 percent, exceeding analysts’ expectations, after climbing in February.
In other positive trends, interestingly enough, The Wall Street Journal reported this week, “Analysts say: The end (of declines) is near. While new home sales show signs of stabilizing as builders cut back on building and boom-bloated inventories are slowly absorbed, prices of both new and existing homes are still being dragged down by a flood of foreclosures. Still, the experts were optimistic that the federal government's efforts to stem foreclosures eventually will have an effect by the end of this year or early next year; Mark Zandi, chief economist of Moody's Economy.com, even ventured (jokingly) a date when home prices would stop falling—December 15, 2009.”
It’s hard to know whether or not the sum of these indicators is equivalent to a recovery but my sense is that the end is near—if we haven’t already passed it here in Utah (some experts are even saying that we’ve already hit bottom and we’re in slow recovery mode). When the bottom has hit exactly is hard to predict but based on what I am seeing in our offices, based on the statistics that I am seeing on pendings and buyer interest/activity and based on the overall national recovery effort, it seems the prediction by many experts (in late 2008) that we would hit bottom by the middle of 2009 is probably not far off.
Now for those of you who are “timing” the market, I have to caution you on this. The only way you know that the market has hit bottom is when it is on its way up. While certainly housing is one of the biggest and most important investments we will make in our lifetime, it is also important to remember that our home is so much more than an investment. It is not a stock that we trade quickly. It is where we raise our family, where we create memories and where we plant our roots. So as you try to “time” the market, remember these key facts and make sure that beyond the investment, you are choosing a home that will bring you the happiness you deserve. Because in the end, that is what matters most. Choose the home that is right for you and your family right now and for years to come. Historically speaking, Utah real estate brings long-term investment gains for almost all homeowners so if you choose the home that is right for you, you almost can’t lose.
Wednesday, April 29, 2009
10 Tips For Cell Phone Etiquette
68% of Americans say they observe poor cell phone etiquette at least once every day, according to a national poll from market research group Synovate.
Could you unknowingly be one of these offenders?
Here are 10 basic cell phone etiquette rules to keep in mind when interacting with colleagues and customers:
1. Remember who you’re working with. How would you feel if you were having an important conversation with a sales associate, and she broke off the discussion every time her mobile phone buzzed? Your customers are your boss. They want your attention, and you're compensated for the time you spend with them. Block out all other issues while you’re working with them and make sure you give them your full, undivided attention during the appointment.
2. Bluetooth headsets are not meant to be permanent. It’s good to use hands-free devices such as Bluetooth headsets, especially when driving or multitasking—but they don’t have to be affixed to your head 24/7. If you’re attending a meeting, or simply having lunch with a friend, get rid of the headset! Bluetooth is fine when you’re alone in your office or driving in your car, but try to avoid keeping it in your ear all hours of the day.
3. Talk at a normal tone. 72% of people in the above-mentioned Synovate survey said the most annoying cell-phone violation is people who talk too loud. Most cell phones can pick up very quiet noises. Not to mention, most people around you don’t want to hear your entire conversation. Some experts suggest a 10-foot zone, meaning you should try to be at least 10 feet away from other people when talking on your cell phone. While this rule may be difficult in some situations, try to practice speaking at a soft and normal tone.
4. Don’t forget vibrate or silent modes. Next to the “loud talker,” the most annoying cell phone habit is a loud, annoying ring, especially when it blares during a meeting or other relatively quiet function. Make it a habit to check your cell phone regularly when entering a meeting or important gathering to make sure your cell phone is either turned off or switched to the vibrate position.
5. Avoid goofy ringtones. Hearing your favorite song every time your phone rings may seem cute to you, but it could be construed as offensive, obnoxious, or simply unprofessional to others. Stick to generic-sounding ringtones when programming your phone.
6. Don’t text and drive. Chances are that you've passed someone on the highway that is driving and trying to text. Don’t be that person! (And don't be near that person, either!) This is dangerous and should be avoided at all times. Plenty of major road accidents involve texting. If you must text in your automobile, do so while your car is parked.
7. Don’t reply to a missed call with a text. In general, if you miss a phone call from someone, avoid responding with a text like, “What did you need?” This rule can be broken in certain situations, however. For example, you might be in a movie where you need to reply with a text indicating you will call back as soon as possible, but do so sparingly.
8. Avoid talking on your cell phone in certain places. Most people will agree that certain places are off limits to talking on your phone—for example, at the movies, in elevators, while standing in line at the bank, and during a meal at a restaurant. If you have to think twice about whether you should use your cell phone, you probably are not in a good place to be talking on it—so put it away.
9. Don’t multitask unless you need to. We’ve all done it, but it’s bad phone etiquette, and the person you're talking to can tell when you're distracted. Sometimes its inevitable. But when possible, stop your other tasks, focus, and give the caller your full concentration.
10. Let callers know when you’re using your cell phone. In many circumstances, it’s good to remind or inform the other party that you're using your cell phone in case distractions or a disconnection arises. Plus, some information may be confidential, and your client or customer might not want to share sensitive information if she knows you are communicating through a mobile device. When applicable, take the time to let your callers know you are speaking on your cell phone, and if they have any important or confidential information they wish to share, you will call them back from a land line or meet them in person.
In any case, the next time you reach for your phone, be sure to remember some of these simple phone etiquette strategies— those around you, will be glad you did.
Could you unknowingly be one of these offenders?
Here are 10 basic cell phone etiquette rules to keep in mind when interacting with colleagues and customers:
1. Remember who you’re working with. How would you feel if you were having an important conversation with a sales associate, and she broke off the discussion every time her mobile phone buzzed? Your customers are your boss. They want your attention, and you're compensated for the time you spend with them. Block out all other issues while you’re working with them and make sure you give them your full, undivided attention during the appointment.
2. Bluetooth headsets are not meant to be permanent. It’s good to use hands-free devices such as Bluetooth headsets, especially when driving or multitasking—but they don’t have to be affixed to your head 24/7. If you’re attending a meeting, or simply having lunch with a friend, get rid of the headset! Bluetooth is fine when you’re alone in your office or driving in your car, but try to avoid keeping it in your ear all hours of the day.
3. Talk at a normal tone. 72% of people in the above-mentioned Synovate survey said the most annoying cell-phone violation is people who talk too loud. Most cell phones can pick up very quiet noises. Not to mention, most people around you don’t want to hear your entire conversation. Some experts suggest a 10-foot zone, meaning you should try to be at least 10 feet away from other people when talking on your cell phone. While this rule may be difficult in some situations, try to practice speaking at a soft and normal tone.
4. Don’t forget vibrate or silent modes. Next to the “loud talker,” the most annoying cell phone habit is a loud, annoying ring, especially when it blares during a meeting or other relatively quiet function. Make it a habit to check your cell phone regularly when entering a meeting or important gathering to make sure your cell phone is either turned off or switched to the vibrate position.
5. Avoid goofy ringtones. Hearing your favorite song every time your phone rings may seem cute to you, but it could be construed as offensive, obnoxious, or simply unprofessional to others. Stick to generic-sounding ringtones when programming your phone.
6. Don’t text and drive. Chances are that you've passed someone on the highway that is driving and trying to text. Don’t be that person! (And don't be near that person, either!) This is dangerous and should be avoided at all times. Plenty of major road accidents involve texting. If you must text in your automobile, do so while your car is parked.
7. Don’t reply to a missed call with a text. In general, if you miss a phone call from someone, avoid responding with a text like, “What did you need?” This rule can be broken in certain situations, however. For example, you might be in a movie where you need to reply with a text indicating you will call back as soon as possible, but do so sparingly.
8. Avoid talking on your cell phone in certain places. Most people will agree that certain places are off limits to talking on your phone—for example, at the movies, in elevators, while standing in line at the bank, and during a meal at a restaurant. If you have to think twice about whether you should use your cell phone, you probably are not in a good place to be talking on it—so put it away.
9. Don’t multitask unless you need to. We’ve all done it, but it’s bad phone etiquette, and the person you're talking to can tell when you're distracted. Sometimes its inevitable. But when possible, stop your other tasks, focus, and give the caller your full concentration.
10. Let callers know when you’re using your cell phone. In many circumstances, it’s good to remind or inform the other party that you're using your cell phone in case distractions or a disconnection arises. Plus, some information may be confidential, and your client or customer might not want to share sensitive information if she knows you are communicating through a mobile device. When applicable, take the time to let your callers know you are speaking on your cell phone, and if they have any important or confidential information they wish to share, you will call them back from a land line or meet them in person.
In any case, the next time you reach for your phone, be sure to remember some of these simple phone etiquette strategies— those around you, will be glad you did.
Tuesday, April 21, 2009
Growing Population
Fastest Growing Population an Indicator of Utah's Economic Strength
by PR or News Wire
21 April 2009—
Three of Utah's metros were included in the top-ten fastest growing metropolitan areas in a report released by the Census Bureau this month!! Provo-Orem, Logan and St. George metro area all made the top-ten. The reports list 363 metropolitan areas throughout the nation.
The Provo-Orem metro area saw population growth of 3.4 percent which was the sixth highest in the nation. Logan metro area ranked ninth nationally with a 3.2 percent increase and coming in at number ten was the St. George metro area with a 3.1 percent increase.
One-third of Utah's growth came from in-migration from outside the State. This is an indication of Utah's overall economic strength.
Although the economy has slowed down, it is still outperforming most of the nation and is maintaining a substantially lower unemployment rate. This would indicate that we will still continue to see an increase in net in-migration to the state. "Business leaders and individuals, even internationally, are recognizing the long term trends in Utah. The State is being recognized as a long term 'hot spot' and companies must plan for the long-term; they want stability and security, "says, Pam Perlich, senior research economist at the University of Utah.
In addition to having a young well educated labor force, the fact that many people are relocating to Utah in search of quality employment adds to Utah's attractiveness when companies are looking to expand or relocate. These facts are recognized as positive considerations for companies who are in a growth mode, despite the general economic downturn. Successful companies must plan for the long-term and the trends of in-migration, natural growth and a young well educated workforce all bode well for the State.
by PR or News Wire
21 April 2009—
Three of Utah's metros were included in the top-ten fastest growing metropolitan areas in a report released by the Census Bureau this month!! Provo-Orem, Logan and St. George metro area all made the top-ten. The reports list 363 metropolitan areas throughout the nation.
The Provo-Orem metro area saw population growth of 3.4 percent which was the sixth highest in the nation. Logan metro area ranked ninth nationally with a 3.2 percent increase and coming in at number ten was the St. George metro area with a 3.1 percent increase.
One-third of Utah's growth came from in-migration from outside the State. This is an indication of Utah's overall economic strength.
Although the economy has slowed down, it is still outperforming most of the nation and is maintaining a substantially lower unemployment rate. This would indicate that we will still continue to see an increase in net in-migration to the state. "Business leaders and individuals, even internationally, are recognizing the long term trends in Utah. The State is being recognized as a long term 'hot spot' and companies must plan for the long-term; they want stability and security, "says, Pam Perlich, senior research economist at the University of Utah.
In addition to having a young well educated labor force, the fact that many people are relocating to Utah in search of quality employment adds to Utah's attractiveness when companies are looking to expand or relocate. These facts are recognized as positive considerations for companies who are in a growth mode, despite the general economic downturn. Successful companies must plan for the long-term and the trends of in-migration, natural growth and a young well educated workforce all bode well for the State.
Wednesday, April 15, 2009
Buyers Take Advantage!
After approximately 36 months of a changing market, there is a great deal of inventory in almost all markets. The bottom line is that qualified consumers may benefit from purchasing a home now.
Right now there is a powerful combination of historically-low fixed mortgage rates, the $8,000 tax credit for first time home buyers, and affordable prices!
Sales of existing homes recently jumped 5 percent in February 2009 compared with the same month last year. The National Association of Realtors also released its Pending Home Sales Index on April 1, 2009 noting that pending home sales “rose 2.1 percent to 82.1 from a reading of 80.4 in January.” With these recent positive indicators, we are starting to see some new gains in the market, which could be a sign that buyers are getting into the market to take advantage of stimulus incentives and much improved affordability conditions.
If you are considering purchasing a home, don’t let this window of opportunity pass you by. I am providing you with this information so that you can make an informed decision about the current market. In the last 30 years we’ve seen very few opportunities in which buyers can prevail and now truly may be the time. If you’d like to discuss your opportunities in relation to the current real estate market, please contact me today.
Right now there is a powerful combination of historically-low fixed mortgage rates, the $8,000 tax credit for first time home buyers, and affordable prices!
Sales of existing homes recently jumped 5 percent in February 2009 compared with the same month last year. The National Association of Realtors also released its Pending Home Sales Index on April 1, 2009 noting that pending home sales “rose 2.1 percent to 82.1 from a reading of 80.4 in January.” With these recent positive indicators, we are starting to see some new gains in the market, which could be a sign that buyers are getting into the market to take advantage of stimulus incentives and much improved affordability conditions.
If you are considering purchasing a home, don’t let this window of opportunity pass you by. I am providing you with this information so that you can make an informed decision about the current market. In the last 30 years we’ve seen very few opportunities in which buyers can prevail and now truly may be the time. If you’d like to discuss your opportunities in relation to the current real estate market, please contact me today.
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