Jason Botelho's Blog

What's the Market like in your area...SLC,UT?

Jason Botelho (Keller Williams Utah Realtors) — Tue, 08 Jan 2008 11:23:05 -0800

Salt Lake like most part of the country is experience it's fair share of the slowing real estate market. The winter months add to the slower market movements, but there is no question that the real estate industry is taking a hit right now. Here are a few numbers as of January 8, 2008. The SFR's (Single Family Residence) sold in the past 30 days in Salt Lake County equal 468! The county currently has 6,810 units on the market to be sold (Figures come from the Multiple Listing Service for Salt Lake County). That equates to a monthly inventory of 14.55. Tough to be in real estate right now? Not if you are a buyer. These are great times to make a lot of money in the industry.

You need good credit and cash! Yep cash is king. Contrary to all the get rich quick schemes out their saying: "Your best friend is OPM (Other People's Money) I would venture to guess that their are 1,000's of bankrupt, depressed, and angry people out there who succumbed to the mentality of the: "Get Rich Quick" idea. I'm not saying it can't be done. I'm a big believer that you place your own limits on your potential, but the fact is that so many of us (me included), fail at the one guiding principle of: "being prepared". Those that succeeded were very well prepared or extremely lucky. Do you want to risk everything on luck, or do you want to be prepared.

Anyway, I do not want to get on my soapbox right now. The market in Salt Lake is still alive and kicking (just not kicking very much right now). Buyers, it is a great time to buy, and this year we will see interest rates drop, the Fed scrambling to avert a recession, and hopefully create opportunities for us all to profit and do well in real estate.

Weekly Real Estate Write-Offs...What does it all mean?

Jason Botelho (Keller Williams Utah Realtors) — Fri, 21 Dec 2007 20:57:37 -0800

How many times have you heard the term "CDO's" or Collateralized Debt Obligations? I think I've heard that term 6 times this week alone. Amazing! These are creative debt instruments that banks have come up with to make the whole lending arena easier and more fluid. The down side is that these little guys are now wreaking havoc through our entire industry. I finally saw a headline article in the Wall Street Journal today (12/21/07) titled: "Fraud Seen as a Driver In Wave of Foreclosures" You're kidding right? How on Earth did they come up with that one? How many of us Real Estate Professionals figured that one out a long time ago? Sorry, I just get bent out of shape when we finally see a headline like that one months and months after the fact.

For those of you out there who are wondering what is going on with the billions and billions of write-offs in the industry, let me be the first or possibly the 5th person to say that I do not think there is anyone out there who can foresee the future. There have been great debates on both sides of the great question: "Is a recession inevitable?". I don't know if a recession is due, but I do know that these write-offs are not finished yet! The good news is that prior to 2007 our great Residential Real Estate Economy was approaching 20+trillion in value. Obviously that numbers has declined during 2007, but remember how many billions make up just one trillion! Although these billions represent a substantial amount in write-offs and will utlimatley effect even the equity markets, our Residential Real Estate Market is very robust!

Great Time to Buy Real Estate!

Jason Botelho (Keller Williams Utah Realtors) — Wed, 19 Dec 2007 18:23:44 -0800

Salt Lake City, Utah: Draper, a city just outside of Salt Lake is giving some great Christmas gifts by way of real estate. I have a client on the lending side of my business looking at purchasing a home from a Lender on a Short Sale. The home is in a location that is famous right now for mortgage fraud, and the lender is looking to just get rid of the property. The home was purchased 12 months ago using 100% financing (Yep one of those!) The two liens totled $680,000 the 1st was $544,000 and the 2nd was $136,000. Now the short sale price is: $300,000. That's right! All the bells and whistles are on this home. It is fully loaded and ready to show off. My client is even asking for seller paid closing costs. We'll see if he gets it. Anyway, the home should have no trouble appraising for $475,000 which is what I comped it at.

There are some good deals out there for those who hold the cash or the credit to buy. Get with your local real estate professionals and have a Merry Christmas this year!!!

Can the Fed bring Stability???

Jason Botelho (Keller Williams Utah Realtors) — Tue, 11 Dec 2007 11:23:10 -0800

Interesting question. There are some great debates over this issue with respect to our industry (REAL ESTATE). There is probably little doubt that the Fed will lower the target for the Fed Funds by 1/4 percent (possibly by a 1/2%). What does this mean for us in the real estate industry? Hopefully with the lower short-term rates, this will help those with short-term financing tied to the prime rates. In the end remember that the Fed plays a role in helping maintain a good supply of money in the market, but the market is driven by supply and demand.

Indirectly we hope to see a reduction in long-term interest rates and creating more money for the real estate market. According to an article on CNBC today, the CEO's of both Fannie and Freddie are not expecting the market to pull out of the current situation until 2010.

For us as agents that means a weeding out, and a better conviction to making the calls and driving business (Lead Generation). The current situation will create an interesting dynamic, that to a large extent we have seen in our market before, but will add some new twists on how to compete and be profitable.

The good news is that buyers and sellers will need our services more now than in the past. Buyers will need professionals to help them find and price homes reasonably. Buyers remember you should never pay more than the current market. Sellers, you'll need help in determining where you need to be to sell. This current market will only get better for the professional who is not afarid to work! Good Luck!

Utah Market Watch...Forecast for Winter 2007-2008

Jason Botelho (Keller Williams Utah Realtors) — Sat, 08 Dec 2007 12:34:09 -0800

With approx. 23,000 homes to sell in Utah currently, Buyers are holding all most every card possible (Data from the MLS and estimated FSBO activity). This is a great time to buy.

I was helping with a buyer currently that has decent income, but credit was the issue for him. It is important to remember that even in good times like these for the buyers, they need to have their house in order (figuratively speaking). There are great deals available and banks will be increasingly helpful during the entire winter.

As most of you are aware this is the slow time in our industry and to make it worse banks are having to take back too much inventory! The new proposed legislation will help banks minimize this with freezing interest rates. So many of these homeowners that are forced to sell, will be able to hold on to their homes for the short term. It's impossible to see how this will effect the market, so be cautious with this information. It may be a good thing and help to stabilize the market, or it could have an adverse effect and hurt the free market by imposing governmental restrictions. Time will tell.

Utah is still a great place to live and with the winter in full swing now, the snow season is looking great!!!

As for the Winter forecast, due to the high volume of listings on the market the winter will appear to be exceptionally long, but keep in mind units are still selling and yes homeowners are very overpriced on their respected properties given the market as a whole. This equates to longer days and market and for a lot of Utah sellers this will mean no home sales.

Price those homes to sell and they'll sell! For pricing homes correctly click here.

Have a great Holliday Season! :)

The Good Guys...A New Construction True Story

Jason Botelho (Keller Williams Utah Realtors) — Fri, 30 Nov 2007 12:47:27 -0800

I wanted to send this one out with a shout of Praise! I have to say that I have seen my share of dishonest people in new construction. At times it can be like the mechanic you can not trust! What do you do? Well I have to share a tale of a great Contractor here in Utah called: Columbus Homes. My wife and I purchased a wonderful home from this builder. Steve Petersen is the owner and was the sales agent when my wife and I purchased the home. Columbus homes was just 2 years old at the time. It had already seen some great growth given the pick-up in the Utah Real Estate Market in 2004. I met Steve in July of 2005 and boy what an experience. I sensed greatness from the beginning. Steve Petersen is the type of individual that understands how to treat the client! He was involved as much as he could in the customer service aspect of his business. He took great care in the subs he would bring on board. Most of them emulated his overall mission for his homebuyers/investors. Builders around the nation could learn great things from him.

As fate would have it, the market turned in 2007 and like a lot of his peers Steve had to close his doors. I'm certain that this short-term setback will only fuel the fire this man has to build homes. For all of you looking to build in Utah, be sure to look up Steve Peterson!

Steve, Thank you for all that you have done, and good luck in your future endeavors. Success will always follow you!

As a professional agent I see tremendous value in getting to know and working with contractors in the area. It is always benifical to agents to know the entire market (re-sale, new, FSBO, etc.)

How to price to sell and still make a profit

Jason Botelho (Keller Williams Utah Realtors) — Tue, 27 Nov 2007 16:18:02 -0800

The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit and how long your home will sit on the market. Your real estate agent's knowledge of the overall market and what's selling - or not selling - will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won't leave money on the table.

Here are some points to consider: Time. Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit and how much you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money, think about a price that will encourage buyer activity (click here).

Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity. It's important that you not confuse value with cost - in other words, how much you value your home versus what buyers are willing to pay for it. Don't place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.

Keep it simple. Because time is of the essence, make it easy for the buyers. Remain flexible on when your agent can schedule showings. Also, avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.

Would you like that home supersized?

Jason Botelho (Keller Williams Utah Realtors) — Mon, 26 Nov 2007 11:30:15 -0800

Buyers you are in luck! This is the time to be buying a home. Buyers are able to get the greatest bang for their buck right now! Bank-owned property is at an all-time high, sellers are having their properties sit on the market for months and months (some even a couple of years!) Act now. Click herefor some great tips on buying. Get with a great professional that can help you negotiate, and you'll be amazed at what you can get in the market now! This market is very volatile, take advantage now and thank me later! :)

Jason Botelho's Tip of the Week for Real Estate Professionals: "Thank You!"

Jason Botelho (Keller Williams Utah Realtors) — Wed, 21 Nov 2007 16:10:32 -0800

Tomorrow is the Thanksgiving Season celebrated around the country. What a wonderful occasion. This is the time to give Thanks. I can think of no better gift than the gift of thanksgiving. We as agents should always remember to give thanks. To those of you who do not subscribe to the "Secret" or have not heard of the Law of Attraction, I wanted to paste a quote from Rhonda Byrne Creator of: "The Secret". This is a wonderful gift to each of us this Holiday season. Let's all commit to finding 100 things to be grateful for this Thanksgiving: Remember, "Without each other what are we?".

"Two words which will change your life!

There are two words that, when spoken, have the most unfathomable power to completely change your life. Two words which, when they pass your lips, will be the cause of bringing absolute joy and happiness to you. Two words that will create miracles in your life. Two words that will wipe out negativity. Two words that will bring you abundance in all things. Two words which, when uttered and sincerely felt, will summon all the forces and vibrations in the Universe to move all things for you.

The only thing standing between you, happiness, and the life of your dreams, are two words...

THANK YOU

Gratitude is one of the easiest and most powerful ways to transform your life. If you become truly grateful, you will magnetize absolute joy to you everywhere you go, and in everything you do. In fact, without gratitude, nothing can ever change. Your life will change to the degree that you use gratitude and begin to feel grateful. If you are just a little bit grateful, your life will change a little bit. If you are very grateful, your whole life will change. If you live gratitude every single day, you will become one of the greatest human beings on the planet, and the light of your life will uplift our world.

The greatest human beings who have ever lived showed us the way with gratitude, and by their example became shining lights in our history. Einstein said "thank you" hundreds of times every single day! Ancient wisdom dating back thousands of years gave us the truth about gratitude. Every single religion speaks of giving thanks. All the sages and saviors of the world demonstrated the use of gratitude in all their teachings.

Of the thousands of letters we receive from people whose lives have become miracles after experiencing The Secret, every single one of them has made gratitude their way of life. It is impossible to be negative when you are giving thanks. It is impossible to criticize or blame when you are feeling grateful. It is impossible to feel sad when you are in gratitude. Most people are sporadically grateful, however, to change your life with gratitude, a new way of learning how to be truly grateful is what will bring unlimited happiness into your life.

So how do you live in gratitude? Begin your day by feeling grateful. Be grateful for the bed you just slept in, the roof over your head, the carpet or floor under your feet, the running water, the soap, your shower, your toothbrush, your clothes, your shoes, the car that you drive, your job, your friends, your refrigerator that keeps your food cold. Be grateful for the weather, the sun, the sky, the birds, the trees, the grass, the rain, and the flowers. Be grateful for the stores that make it so easy to buy the things you need, the restaurants, the utilities and services and electrical appliances that make your life effortless. Be grateful for magazines and the books that you read. Be grateful for the chair that you sit on, and the pavement that you walk on. Be grateful for your favorite music that sweeps you away, and for movies that make you feel good. Be grateful for your phone that connects you with people, for your computer, for the electricity that lights up your life. Be grateful for air travel that flies you everywhere. Be grateful for the roads and traffic lights that keep the traffic in order. Be grateful to those who built our bridges. Be grateful for your pet, for your child, for your loved ones, for your eyes that enable you to read this. Be grateful for your imagination. Be grateful that you can think! Be grateful that you can speak. Be grateful that you can laugh and smile. Be grateful that you can breathe! Be grateful that you are alive! Be grateful that you are You! Be grateful that there are two words that can change your life!

Thank you! Thank you! Thank you!

The more that you practice gratitude the more deeply you will feel it in your heart, and the depth of the feeling is the key. The more deeply and sincerely you feel it, the more you will bring absolute bliss and happiness on every single subject. Watch what happens in your life when you practice gratitude every single day and in every single moment and in every opportunity that you can. Remember, if you are criticizing, you are not being grateful. If you are blaming, you are not being grateful. If you are complaining, you are not being grateful. If you are feeling tension, you are not being grateful. If you are rushing, you are not being grateful. If you are in a bad mood, you are not being grateful.

To understand the power and the magic of gratitude, you have to experience it for yourself. So why not begin by deciding to find 100 things a day to be grateful for? As you practice gratitude every day, it won't take long before gratitude is your natural state of being, and when it happens you will have unlocked one of the greatest Secrets to Life.

This week the United States is celebrating giving thanks with Thanksgiving Day. To inspire everyone to use gratitude, not just for one day but for every single day, The Secret is giving away 9,000 special edition Secret Gratitude Journals, which are beautiful, leather-bound journals. This gift is one journal per person, and the only cost for you is shipping.

For The Secret Gratitude Journal gift, click here.

There is just one other thing that I want you to know about Gratitude.....

When you are giving thanks, you FEEL GOOD! "

List vs Sale...What's the Difference?

Jason Botelho (Keller Williams Utah Realtors) — Mon, 19 Nov 2007 11:13:16 -0800

As a real estate professional (For more on my background click here), I am always interested in giving good information to my clients. I have found over the years that many are confused with the terms: "List" and "Sale". I would like to give an explanation to these two terms here. Let's start with Sale, this is the actual price your home will sell for in the market. It is the price at which a reasonable buyer will pay for your home. List means the price you as a property owner would like to get! I must be clear that the terms are not the same, although the List price and Sale price can often be the same number (Not always). In a tight market like the one we are in currently (As of November 2007), the List price and Sale price can be significantly different. For example there was a seller in my market that started to sell his home for $725,000 11 months ago. He is still trying to sell that home, but he has come down to: $579,000 currently, and the home has not sold yet! These are examples of List prices (We have not seen the Sales price since he has not sold it!). What amazes me, and maybe I'm the only one that experiences this, is property owners often mistake List Price for Sales Price. What do I mean by this? Sellers often see what Professional Real Estate Agents are selling property for and they think that is what homes are selling for. This type of think is flawed given that the sales prices can be as much as $30,000 or more less than the List prices (This is very common in a tight market.) This is where a professional agent can advise and be of service for pricing your home! For more click here.

So there you have it! Make better decisions, with the knowledge that List does not equal Sale (Although in some cases they are the same number!). This will help you in pricing you home! Good Luck!

Hot Marktet in Saratoga Springs, Utah???

Jason Botelho (Keller Williams Utah Realtors) — Fri, 16 Nov 2007 11:35:31 -0800

Price Range	Homes Sold	Days on Market
$180,000-$199,999	1	21
$200,000-$249,999	4.5	44
$250,000-$299,999	3	40
$300,000-$349,999	3	76
$350,000-$399,999	1.5	142
$400,000-$499,999	2.5	80
$500,000-$599,999	0	n/a
$600,000-$699,999	0	n/a
$700,000-$799,999	0	n/a
$800,000-$899,999	0	0

This table shows the current real estate activity for Saratoga Springs Utah. There are some great opportunities for homes that are priced right! The numbers in the lower price ranges are seeing the most activity right now. Homes priced at or below $350,000 will see some good activity if priced correctly. This means that a home with 2,500 sqft, 3 beds, 2.5 baths priced at $335,000 is probably over priced right now. That home should be priced around $245,000 right now! I know, I know a lot of you are saying that's ridiculous! I say take a look at the market and see how many homes are for sale. The entire city is looking at around 18 homes sold per month (Including FSBO activity), and the market has approximately 434 homes to sell. To figure out home many months of inventory the city has to sell, just take the number of homes to sell and divide by the units sold monthly (434/18 = 24 months of inventory (2 years!!!)). WOW!!! What does that mean??? From a professional Real Estate agent's point of view, that means the majority of sellers are over pricing their homes. Once the sellers realize the disconnect between the sales price and the actual price, we should see a pretty big adjustment down in sales price to accommodate the market! For questions Call the Professionals. These numbers are accurate as of 11/16/2007. The market is volatile and will change, hopefully for the better!

What's Hot and What's Not in Real Estate

Jason Botelho (Keller Williams Utah Realtors) — Wed, 14 Nov 2007 03:46:24 -0800

We are well into November 2007 here in Utah. I wanted to take a few moments and give some updates to the Real Estate Market. It's been no big surprise that the market has seen some slowing and even reversing in some areas, but there are some Hot parts of the market right now. I wanted to touch on some of those areas today and give some information on those parts that are not moving very well right now! A lot of the current information I'll be giving here will come from the Salt Lake MLS. Below is a table that I've inserted to help with our discussion today. It is packed with a lot of good information that will give us good direction in determining what parts of the market are moving and what parts are not. The months of Inventory is determined by looking at what has sold in the last 30 days and compare it to the homes that are currently for sale in those respected price ranges. It should come as now big surprise that the months are increasing. To give you a starting point, a healthy market should only have 4-5 months of inventory for sale at any given time. Eight to Nine months is not ideal, but conducive to selling. Anything above 12-13 months is going to be a tough market for Sellers (People who are trying to sell their property). It is important to note that the Information contained in the table comes from the Salt Lake, Utah MLS) For Sale by Ownerinformation is not contained in these numbers (For more on For Sale by Owner click the link and read the section of FSBO's).

Price Range	Daily Sold	Monthly Sold	DOM	For Sale	Months of Inventory*
Up to $299,999	42	1,260	57	11,112	8.82
$300,000-$399,999	8	240	62	3813	15.89
$400,000-$499,999	3	90	66	2044	22.71
$500,000-$599,999	1	30	61	1230	41.00
$600,000-$699,999	0.33	9.9	47	850	85.86
$700,000-$799,999	0.33	9.9	37	461	46.57

*Months of Inventory signifies how many months of Inventory are on the market to be sold.
For example: 8.82 means almost 9 months of inventory to be sold.

These numbers are staggering. If you want to sell a home in this market your best chance to sell is in the price range up to $300,000. In Utah, if you are priced in that range you have the best opportunity for a sale. Look at the daily Sold rate Utah is selling 42 homes a day priced in that range. There is no other price range remotely close to it. The next best is 5 times worse. This means your chances for a sale become 5 times harder just for pricing in the $300,000 range! These amazing swings make a real estate professional very valuable! Click here to find out why you should use a professional to sell your home!

Thinking of Selling Real Estate? Insightful ways to sell in Today's Market!!!

Jason Botelho (Keller Williams Utah Realtors) — Mon, 12 Nov 2007 11:06:34 -0800

There are many things to consider when thinking about selling real estate. First of all, "Why are you selling?". Is the sale due to a relocation? Are you having to move because of work? This is a very common reason property owners put their homes on the market. Relocation out of state can be a very stressful time. As a real estate professional, I have seen my share of problems and headaches with this type of selling. Here are a few quick pointers that can help!
1) Time Frame. You need to figure out exactly how much time you have to sell.
2) Company assistance. There are a lot of companies out there that provide assistance when selling. The company can help pay moving expenses. There are also companies out there that can help with the sale of your home (Commissions, Sales Price, etc.). There maybe some great assistance to help you with the move. Make sure you check those avenues.
3) Get prepared now! This means start putting everything into boxes that you do not use on a daily/weekly basis. Using boxes will help save substantial time and make the move drastically easier.
4) Know exactly what you need to make to move. In a slowing market, remember there may not be a lot of excess equity in the home for you personally, but you need to move and pay your existing lender off, so make sure you know where you need to be as opposed to where you want to be. I see it more and more today; homeowners are expecting the high values and are shock when their homes sit on the market for 4-6 months! If time is an issue you need to understand that the most important thing is to sell you home and move on! Don't get discouraged if you don't make much in a slowing and reversing market as we are currently in. Remember you'll be purchasing a new home and you'll do wonderfully well on the purchase price!
5) Renting out the home for investment might be the best option for you. In a slowing market where perhaps you purchased high and now you're upside down in the home, it may be a good idea to look at renting it out. Even if you are breaking even or maybe losing a couple hundred per month, that may be worthwhile until the market picks back up. Food for thought.

Right now we are looking at a national slowing in the real estate market. This signal should encourage those that are looking to make a quick buck off their real estate to hold and not look to selling right now. Obviously if you have been in the home for more than 2-3 years, you may be in good shape to sell now if you are looking to upgrade or move closer to work etc., but just to sell, right now would not be wise. This market is definitely a buyers market. Again, a seller that has been in the property for a few years will still benefit from the rise in real estate. For example an area in my market here in Utah has 40 months of inventory to sell. This is not good for sellers unless you've been in the home for 3-4 years and have seen some appreciation because the market has changed dramatically in that area. The last two years of appreciation has evaporated!
If you have out-grown the home, chances are you've been there for 3-7 years, and have seen good appreciation. The best advice right now, is to get with a professional and find out where the market has dropped to. Price it to sell, and you will do well. Seller's number one mistake in a market like this one is: "GREED"! Do not get greedy. Price it where a willing buyer in this type of market is willing to buy and get it SOLD!!!

Trying to sell by owner in a market like this is though. The markets over all inventory in most metropolitan areas have more than double the inventory of a healthy market and that makes a For Sale By Owner's chances very slim. My advice to the FSBO's is to price low and get it SOLD. An agent will be able to put more cash into your pocket, but if you do not want to work with one, price it low enough to entice some activity (Although you may find you do not like the buyers that you'll attract.) To see how an agent can net more cash to sellers read this article (Number 1 Top Reason to use a Real Estate Professional). It's one every FSBO should read.

Fastest Way to Sell Real Estate in Utah

Jason Botelho (Keller Williams Utah Realtors) — Sat, 10 Nov 2007 12:11:43 -0800

It may not come as a shock to you, but you'd be surprised how many property owners have not figured out how to sell their home quickly! Is it the Agent? Is it the Buyer? Is it the Market? Are the planets all in alignment? Is it the Law of attraction? All right, all right what is it? The secret may not be what you are looking for. Maybe you need to try all the above before making/ drawing your own conclusions. I think maybe I should let you grind on this one for a week or two! No? The answer is: Location Location Location!!! O.K. not really, the true answer to how to sell quickly is: "PRICE". That's right! Price is king in the Real Estate Business. If you price your home right, you'll sell. Now for your next question. How do I price my home? Well for that you'll need a professional real estate agent. I know you're thinking you can do this on your own. For those of you with these sentiments, please visit: http://www.jasonsellsutah.com/ to read about selling homes in Utah. Trust me, it is not as easy as "they" say! A real estate agent can be worth his/her weight in gold (Depending on how much he/she weighs :). Start now and enlist the help of the professionals. They can give so much insight you'll feel confident in your real estate decisions.

How's Utah's Real Estate Market?

Jason Botelho (Keller Williams Utah Realtors) — Sat, 10 Nov 2007 12:06:32 -0800

Based on historical data (mostly gathered by the MLS), the Utah Real Estate Market is slowing and slowing quickly! How quickly? Depends on who you talk to. This Real Estate Professional predicts rapid slowing in both the new construction and re-sale markets in Utah. The mortgage industry has tighten thier requirements although the Fed just lowered the target to the Fed Funds by a 1/4 of percent to 4.5% This should spark an increase in short-term lending, but lends us to ask: "What about inflation?" These external factors will play an integeal part of our Utah Real Estate Market. Our Market has seen an unhealthy increase in single family residenceses on the market to be sold. This should provoke more uneasyness in the market than what I'm currently seeing at this point (as of Nov. 2, 2007) We may be in for a very interesting short-term future (Less than 12 months). Buyers beware, but be actively looking for great opportunities because they are more and more abundant now than in the past 3 years!

For Great Updates on the Real Estate Market, check out my website at: http://www.jasonsellsutah.com/

Is Curb Appeal that Important?

Jason Botelho (Keller Williams Utah Realtors) — Fri, 09 Nov 2007 15:37:30 -0800

A lot of folks asked about curb appeal. Many don't even know what that means. As a real estate professional, I know the answer to that question. I'll attempt to explain what curb appeal is and how it can help you sell your home. To give those who do not know what curb appeal is, a proper understanding, I'll start by giving you what I think is an appropriate definition.

Webster's Defines curb appeal as: the visual attractiveness of a house as seen from the street. My definition includes: visual attractiveness from the front, and back! The back yard can play a very important role, especially if the buyers have children. Even without children you can see by the photo to the right how important curb appeal can be from the back yard.

Obviously the answer to the question above is a resounding yes! Curb appeal, both in the front and back and even the sides can at times make or break a sale. I've seen both good and bad in the industry and what I've noticed, is at the very least curb appeal will make a home sell a lot faster. It may not draw a higher price (Although don't be surprised if an offer comes in higher due largely to the fact of beautiful curb appeal), but it will sell faster and that is a fact!

Another Interesting observation relating to curb appeal is the mindset created as buyers first see the property. As a property owner you'll need to be keenly aware of that fact that the buyer will be making decisions about your property even before they are inside of your home. WOW!!! "You mean I need to be worried even before the potential buyer sees the inside of my house?" You guessed it! Buyers in today's high paced environment and especially with large inventories of homes on the market are more and more sophisticated.

To improve your chances you need to ask yourself: "How does my home look from the outside?" It is extremely critical to have at the very least all the clutter and debris removed and the landscaping groomed and manicured. I am not suggesting you go out and spend $$$ thousands of dollars to upgrade your landscaping. You'd be surprised, how picking up all the clutter and making sure the landscaping is manicured, will increase the amount of activity on your home. I'll always recommend spending maybe a couple of hundred dollars to improve curb appeal if needed. The couple of hundred you spend will come back to you if done correctly (get help if needed!).

Finally it is important you do all this before taking pictures of your home. You want to put your best foot forward. If pictures say a 1,000 words, then do not get lost in the wording. Keep it simple and have lots of pictures. If you are using an agent, make sure they take a lot of pictures. Pictures are great! Buyers theses days have so many options that you want to provide the best opportunity you can! Good Luck Sellers! For additional tips on how to sell your home click here

Top 8 Reasons to Enlist the Help of a Professional to sell your Home

Jason Botelho (Keller Williams Utah Realtors) — Fri, 09 Nov 2007 13:40:50 -0800

Number 8: Agents are Objective and know what potential buyers are looking for. It is of the utmost importance to know what buyers are looking for. There is no better source than a professional real estate agent. An agent will know your area better than any other person you could talk with. Agents are exposed the the complete market (Properties Listed with Agents and For Sale by Owner's called FSBO's for short). Less than 13% of the market is FSBO's inventory. Of the FSBO inventory only 25% will actually sell their home themselves (That makes up 3% of the total real estate market). Of the homes sold by FSBO's, 40% sold their homes to someone they knew before the sale (NAR's 2006 Profile of Home Buyers and Sellers) The point here is that agents KNOW the market well and are very familiar with what buyers are looking for and what can make your home sell!!! Often times we as property owners are quite proud and we are not objective when it comes to our own home. We have created the "perfect" homes (based on our own paradigms), and we are extremely bias and at times not open for criticism on our own homes. For this point alone it is invaluable to get a non partial third party to help us who can expose our homes to the entire real estate population in our specific market.

Number 7: Agents give you exposure to the entire market. As mentioned above, agents control the lions share of the market, and have access to market you home effectively outside your specific market. How would a FSBO market a home? Well they would use a sign in their yard and maybe run an ad in the local paper. There are a couple of Internet sites that they could use, but who really looks at them! If time is not an issue, you may want to look into some of these ways to sell, however remember that less than 25% of FSBO's sell their homes! These ways are very risky and reap next to nothing in the end. Remember the key to selling is to sell in the quickest time and for the highest price! If a professional can expose your property to your entire local market and effectively market your home on a national scale, who then will sell your home for the highest price in the least amount of time? You may want to consult your statistics professor from college to help give you the correct response.

Number 6: Peace of Mind. Sellers get frustrated with having to juggle selling their home, work, family, and all other aspects of their lives. Agents provide some much needed relief by handling the home sale aspect for them. One of the top reasons that sellers choose to have professional real estate agents sell their homes is because they do not want to deal with the buyers, making sure everything is going smoothly with the close, and showing their homes to complete strangers. There are a lot of people that are involved in the sale of your home. For a small list of this click here. This peace of mind is priceless. Often Sellers are not sure they are being treated right during the sales process and having an agent deal with it, provides the confidence they are looking for. This leads us to the next reason you should use professional help when selling your home.

Number 5: Real Estate Professionals will handle the Sales Process from A-Z. Agents provide many different services during the time they are selling your home. They will give you up-to-date information on the things Buyers are looking for in your home (For some ideas click here). They have good pointers for staging your home. Agents provide advice regarding curb appeal (the way your home looks from the outside). For Information on curb appeal and home staging click here. Real Estate Professionals will work with the buyers lender, appraiser, home inspectors, escrow agents and even other real estate agents during the course of the sale. Buyers will typically have an agent working hard for them, so it will be very beneficial to have an agent with your best interest working hard for you! Remember your agent works hard for you! Any questions you have about selling they will be there to give accurate and meaningful responses to you.

Number 4: Knows the market and how to be Competitive. It's can be very risky to try to sell your home without the use of professionals. These days it is increasingly harder and harder to price and sell real estate. Don't gamble on price. You could be giving away thousands, or you could be pricing too high to even get people to look at your property. Real Estate Agents will be able to give you a good idea where the market is and where you should be in pricing! For more information on pricing click here. Real Estate agents have a wealth of knowledge and the MLS (Multiple Listing Service) to help give them the unique perspective to aid them in giving good advice to homeowners. The MLS is a critical piece, but nothing can replace good advice from reputable sources. The Real Estate Market is a highly volatile market, and changes daily. It is essential to get good up-t0-date information from these individuals.

Number 3: Agents help negotiate price and options to make you real estate transaction work! All to often I hear comments about how people tried to sell on their own and ended up confused and taken advantage of. This can happen with frequency, unless you protect yourself with the strong support of a powerful professional. 99% of the time this happens, the seller will not divulge all the facts surrounding the deal, and often does not realize he/she lost big! This industry tends to frighten many and they do not speak up until it is too late. Do not let this happen to you! Professional Agents are hear and available to help. Granted not all agents are the same, therefore you'll want to interview with several to find the one you fell comfortable with. Experience is worth more than its weight in gold. I know everyone has a friend or family member in the biz, but can you really put future in the hands of someone inexperienced? They can lose thousands of dollars of your potential equity, during the negotiation process. So be sure to interview the right person for the job of selling your home! A professional agent will be able to help you see ways to make your negotiations more profitable for you. You do not have to accept what the buyer submits as an offer. You'll be able to structure the deal to your satisfaction and will not need to settle.

Number 2: Agents will attend your closing with you. This will be a great comfort to you. You'll have someone that knows what is going on, and how to handle any issues you may have. No questions about it. You'll have some anxiety when you go to the close, and you'll feel out of your element. The Real Estate Agent will help walk you through the process and be able to answer any questions you may have. Do not leave the closing table until you feel confident everything meets your expectations and all your questions have been answered to your satisfaction. Often sellers will leave the close table not sure what just transpired. They often blame the industry and if they did not have professional representation, they blame the other party every time! Get comfortable with the numbers and any other requirements the escrow agent may have for you. Ask your agent if you do not understand any point aspect of the documents that you'll be signing.

Number 1: Sellers net more money with Real Estate Agents! Despite all the drama and negative feedback, agents simply sell homes for more money! According to the 2003 NAR Profile of Home Buyers and Sellers, homes sold using a professional real estate agent sold on average 20% higher than those homes sold by owner exclusively! In 2006's Profile of Home Buyers and Sellers the numbers were shocking. The median FSBO (Fore Sale By Owners) selling price was: $187,000 compared to $247,000 for agent-assisted transactions. That's a 32% difference. Those were the numbers for 2006. Amazing!!! Now my personal experience has shown me that in the Utah market, agents are selling for approximately 15% higher than the FSBO's. To put it in perspective, assume that a FSBO sold a home for: $200,000. An agent-assisted home similar to the FSBO's would sell for: $230,000. After paying a commission of 6% to the agent the home buyer net's $216,200 compared to $200,000. Is it worth the additional $16,200 to have an agent help sell your home? Obviously the answer is YES!!!

How did we do in October 2007?

Jason Botelho (Keller Williams Utah Realtors) — Wed, 07 Nov 2007 19:35:38 -0800

Well, Halloween is over and November moving fast. We are already on the 5th day of November. Time passed so quickly these days, I wanted to give you an updated on the General Real Estate Market in your area. These areas include Utah counties: Salt Lake, Utah, Davis, Weber, and Tooele.

As of late, this market has seen incredible increases of homes for sale. There are approx. 17,645 homes for sale (These numbers reflect Homes that are listed on the Multiple Listing Service or MLS). There are also approx 1,300 For Sale By Owners (These numbers are getting fewer and fewer due to the difficulty of the market right now). So the Grand total of homes for sale in our area is approaching 20,000.

There was less than 1,300 homes sold in the last month (Again this information comes from the MLS), which translates to 14 months of homes to be sold in the Wasatch Front! If you are a seller this means you need to ask the question, "What am I doing different to sell my home?". Another great question to ask is: "Do I have 14 months to sell?". These are great questions to ask right now, given the drastic change in the current market.

The average days on market (Time a home sits on the market before being sold) is looking pretty good for the area. It is 50 days on market. Homes priced above $500,000 are looking at 80 Days on Market (DOM). Homes priced in the $400,000 range are looking at 57 DOM. 55 DOM for homes priced in the $300,000 range. And finally 47 DOM for homes priced in the $200,000 range. The average days to sell a home is dependant on several factors:

First and foremost is PRICE. As a professional real estate agent I am seeing that sellers are reluctant to price their homes where the market is telling them to. The real estate market is an interesting animal. The Seller does not determine the market. The agent does not determine the market. The buyer is the one who will determine and control the lions share of the market. The remainder will be determined by the supply and demand of the market (economic factors).

Second will be general needs of the buyer. This means: Total Beds, Total Baths, Square Footage etc. These are the basics that a buyer is looking for. Lot size and swimming pool may be included in this second factor. If you do not have the right combo of basics this could equate to more time spent on the market.

Third is Location. I put this one third on factors that determine Days on Market. I have seen people change decisions about location due to price and general basics such as an additional bedroom for no additional cost, just located in slightly different location! Buyers always like additions.

Fourth is Amenities & Additions. What is an amenity? Click Here to find out! So Amenities include: Lake/Mountain/Valley Views, Parks, Exercise Club/Restaurant etc. Additions would include: 3rd Car Garage, Jetted Tub, Two-Tone Paint, Upgraded Flooring, Fire Place, Extra Laundry Room or Kitchen. These would all contribute to the 4Th factor effecting DOM.

Finally curb appeal/showing will effect DOM. If your place has expensive landscaping both front and back, it is possible that that alone will be the selling point for a lot of buyers. Conversely, if your property looks like the next redneck joke, there's a good bet your property will be sitting on the market for much longer than the average! Never underestimate the power of curb appeal! The way the home shows inside will be a huge factor for most buyers. As agents, we understand that junk will be gone or hideous carpet or furniture will be out when a buyer moves in, but the fact remains that those items do influence a lot of buyers. So make sure the house shows well.

Top Three Ways to Sell a Home in 30 Days!!!

Jason Botelho (Keller Williams Utah Realtors) — Wed, 07 Nov 2007 19:31:43 -0800

#3 to sell your home in 30 Days. Your Home should be updated. "What does that mean?" If your home was built over 10 years ago, chances are it needs a little updating. It can be as simple as painting a few rooms (two or three tones works great right now!) Finding some updated flooring might be an alternative (With so much competition out three chances are you could find flooring at a real bargain) You can get creative and buy some updated options to decorate the walls in your great room, visiting room, kitchen, etc. Basements are a huge plus. Finally committing to finishing the basement for the sale will help tremendously! Remember, you do not have to go all out! The appearance of updates is what's important. Potential buyers do not want to step into a home built in the 60's or 70's and get the feeling of the 60's or 70's. These buyers are not drawn back due to the fact that the home was built in those years, they just don't want to feel like they're in the 60's or 70's. Does that make sense? For additional ideas click here. You will be amazed at how much you can do to update those homes! I've seen homes that were built even in the 50's updated and they sell fast!

#2 Curb Appeal & Showing Condition. Many many ask, "Why is this number 2?" Keep in mind that this is top three ways to sell your home in 30 Days! Curb Appeal is a shock and awe for potential buyers for a property! For more information on Curb Appeal click here . A lot of buyers will remember the Curb Appeal more than the actual home! For better or for worse Curb Appeal is Curb Appeal. At the very least make sure everything is picked up and manicured outside. The inside is also a critical piece to sell the home quickly. The home should be clean and picture perfect! "I know there are many of you out there that are saying WHAT!!!" Again remember these are suggestions to help you sell in 30 days. If you can wait 90 to 120 days then obviously these pointers do not have to carry as much weight! They will still be important, but not as important if you have time. I agree and empathize with those of you who are saying that keeping my home picture perfect is impossible. It can create a very stressful environment for those 30 days, but remember it is short-term and will soon be over! There are some ideas that you can employ to help make this time period pass with as little stress as possible. 1) You can plan to be away as much as possible (Perhaps plan a family vacation for 2 of the 4 weeks). 2) Plan to eat out often during this time. 3) Have the children pick up their rooms twice daily. 4) Dad can pitch in and do above and beyond the call of duty during this time. 5) Develop an organized system of checking each room each day (Assign family members specific rooms that they should check twice daily!). 6) Keep a positive attitude through this time. Remember it is temporary, and plan on it being difficult, but not impossible!

And the Number 1 way to sell a Home in 30 Days! Drum roll please!! It's all about the PRICE. If your priced right you'll sell your home regardless of any other factor: (Location, Marketing, Curb Appeal, Bells and Whistles, etc.) The question then to ask is: "What is the right price?" Often times a person will try to sell their home on their own, but they do not know where they should price their homes. The For Sale By Owner (FSBO for short) will look at homes listed in their area with real estate professionals and run with it. This is not the way to price a home. Homes differ drastically in each subdivision (No two homes are identical even though the floor plan may be similar). Homes in each subdivision can differ in price by $10,000's or even by $100,000's depending on the subdivision. The best way to price your home correctly, is to get with a real estate professional who can advise on where you should price your home. There are many professionals out there who provide this service at no cost. Check with you local real estate professionals. Interview two or three to make sure your comfortable with him/her. For more information on pricing click here. Remember Pricing your home correctly, and mean the difference of selling you home in 10 days or 100 days. Be smart, and do not take chances. Get help when you need it.

The House that Who Built?

Jason Botelho (Keller Williams Utah Realtors) — Wed, 07 Nov 2007 19:27:43 -0800

No this is not a Dr. Seuss Book! I think it would be appropriate to share with you those who make home ownership possible. You may be asking yourself: "Hey, I'm the one that makes it possible", right? You are correct, but there are others involved who help you reach the status of home ownership. Who are they? The list will be an eye opener for some.

First and foremost we'd like to thank the many many Investors out there who have been instrumental in the purchase of mortgage back securities (Known as MBS's). These are just like stock certificates that investors can purchase. By purchasing MBS's these investors bring more and more $'s into the real estate industry. Thus more and more people are able to purchase more and more homes and receive reasonable interest rates (Supply and Demand and all those economic factors that contribute to the low mortgage interest rates! But that's another subject for another day.). So the investors help us purchase a home that we would not have the funds to purchase.

Next is the Lender. He/she will qualify us for the home to purchase. It is important to start with the Lender before finding a home. You may fall in love with a home and then try to get financing for that home, only to find out you do not qualify. So find a reputable lender. I recommend brokers over banks because of the flexibility the brokers have. Banks often have 3-6 programs that a person can qualify for. Brokers have hundreds of products and programs for the borrower (that's you!)

After the lender comes the professional Real Estate Agent. This person can give you exposure to 100% of the homes for sale in your area. Don't worry the fees paid to the professional real estate agent are paid by the seller. If the agent can't find you a home, typically you do not pay anything at all. So go out and interview a great agent to help you. Remember you are in control so pick the very best one for your needs and someone you can work with.

Other key people include:

General Contractor (If you are looking for new construction).

Appraiser is critical to make sure your home will appraise at the purchase price. If it does not, the Lender will not lend the entire amount.

The Seller if you are looking at the re-sell market. At times the seller can be difficult to work with. This is where the professional real estate agent comes in. He/she can work with the seller so you do not have too!

Finally we can not forget the Taxman. Your local tax assessor will always have his hand on your property. Don't pay him and you'll find out real quick to whom that property really belongs! Never, never underestimate the power of your taxing authority.

There you have it. Good luck and good shopping!!!