3 Pounds of Real Estate

Sellers Market, Sellers Market, Now A Waiters Market

2008-04-06T19:58:00Z

Sellers Market

You have heard of a seller's market. Inventory is low demand is high prices are going up. Listings are getting multiple offers, sellers are netting more than list price even after paying commissions. Things are really good for a seller.

Buyers Market

Of course to be followed by a buyer's market. Inventory is up demand is low, buyers are getting concessions from sellers such as closing cost, down payments, appliances... Things are really good for a buyer.

Waiters Market

But this waiter's market, I never heard of it before. This is when the seller's market is over and inventories are high, interest rates are phenomenal, jobs are... continued

Britney Spears Gives Salt Lake Real Estate Market Update

2008-03-31T22:17:51Z

Just kidding, I figured it was a better Headline than, Local Realtor Gives Accurate Data.

I find it interesting that people will read a web site and it assume it is the truth, the whole truth and nothing but the truth.

According a gentleman name Adam that has commented recently on 3 Pounds that everyone should read a web site called http://www.housingtracker.net/ The disclosure at the bottom of the site is as follows.

"The numbers provided here are asking prices derived from Realtor MLS listings. The data is an aggregate representation of large markets and should not be used for valuation of individual homes. While every attempt is made to deliver accurate data, the information on this website is provided as-is. No warranty or guarantee of accuracy is offered or implied. This work is licensed under a Creative Commons Attribution-Share Alike 2.5 License."

According to this site there are 10,149 active single family and condo listings in Salt Lake City. Their claim is that the data is from Realtor Listings, when you click the link it is... continue

Mortgage Insurance Change

2008-03-14T23:28:12Z

Republic Mortgage Insurance Company released in their notes yesterday, that they will not insure any loan with a greater than a 97% loan to value/ combined loan to value ratios (LTV/CLTV) regardless of any automated underwriting decisions.

Also any declining markets they are going to add a 5% margin so they will only insure loans in declining markets that have a 92% LTV/CLTV.

Usually when one player makes an announcement like that the rest follow suit. So you can expect this to be the new standard across the board.

Essentially there are no more 100% loans. So if a buyer does not have three percent of their own money then the only other option is a Down Payment Assistant (DPA) Program and an FHA loan. This will not put pressure on the prices but it will have an affect on the bottom line to the seller.

The way the DPA programs work is the seller agrees to "Gift" 3% plus a small administrative fee to a Non-Profit organization and then the Non-Profit organization turns around and gifts the money to the buyer at closing. Some of these organizations are AmeriDream and Nehemiah Corporation.

Our current market condition has sellers willing to pay 2-3% concessions for the buyer's loan closing cost. Now combine that with the DPA cost, prices won't really go down but it will come from the seller's bottom line. This could play out pretty good for the buyer that has their own money and will give some leverage to sellers in certain situations.

It seems like every time something happens in the lending world it gives another reason to use FHA.

FHA Loan limits are up to $729,750 in Salt Lake County which is just over 90% of the homes in Salt Lake County Listings of the WFR MLS.

Investing or Loan Fraud

2008-03-04T06:57:56Z

You notice he said Co-Conspirator NOT Victim

Creative Financing or Loan Fraud

2008-03-03T20:44:46Z

Notice he said Co-Conspirator

Come On And Celebrate

2008-02-19T21:53:27Z

Lee Stern Regional Director for Utah and Team Leader for Mighty Midvale Office.

Wearing her Tu Tu and Army Boots proudly showing the office our award.
Double Gold for Units Sold, Platinum for Profit Share, Platinum for Total Commissions Earned.

Enjoy

Empress Theater On Magna’s Historic Main Street

2008-02-02T20:33:43Z

The Empress Theater

9104 West 2700 South Magna Utah 84044

(801) 347-7373

What an Awesome Story the Empress Theater has. From it's beginning in 1916 Entertaining the miners then silent movies.

Leo Ware toiled to and worked and spent a lot of blood sweat and tears, the county wanted to raze the building. His dream of live entertainment was carried forward by the Oquirrh Hills Performing Arts Alliance. The theatre reopened on 4 November 2006 with "Forever Plaid,".

For more details about the history of the Empress Theater and Leo W. Ware.

The Empress Theater 2008 Season schedule of shows

What a $1,000 a Month Looks Like In Salt Lake

2008-01-23T07:24:18Z

Click Photo For Tour

To arrange a preview call The Rob Aubrey Group at 801-694-4762 or Email Rob@Aubrey.net

I usually don't write about listings in the main blog page, but I had to show buyers what the current market looks like. Because of interest rates are so low. You can own a condo like this for right around a $1,000 per month including taxes, insurance and the homeowner fees.

Immaculate One Owner Condo

Built 1995

2026 W 3650 S, 84119 All New Paint, New Carpet, Laundry Room Gas Fireplace, Good Storage, Eat In Kitchen Large Master With Walk In Closet Refrigerator, Stove, Dishwasher $90 HOA Taxes $930 2 Car Garage With Opener To Search Over 15,000 Homes For Sale With Tours And Addresses

Salt Lake Forecast According To The Experts

2008-01-20T22:20:28Z

Utah Housing Forecast

We hear all kinds of hullabaloo about the Utah Housing market, from reporters committing loan fraud to someone that has never bought or sold a piece of property BUT listens to NPR.

Let’s hear from some experts

National Economist

“Utah is one bright spot compared to other parts of the country that are in severe pain,” said Lawrence Yun, chief economist for the National Association of REALTORS®. “It’s the shining star so far if one wants to say which market is hot.

” But that’s not to say Utah real estate will be completely free of cloudy conditions in 2008. Despite Utah’s strong economy, housing sales are still expected to slow in 2008 and some markets may face affordability challenges.

“In Utah, you’re going to see home sales at a lower, more sustainable rate, but they aren’t going to falter,” said Jeannine Cataldi, senior economist for economic forecasting firm Global Insight.

She expects activity to pick up once people know the full extent of the mortgage crisis, which is expected to peak in 2008. “Once we know how that plays out, people can make decisions and move forward,” Cataldi said.

The more debatable subject is what will happen with home prices. Some economists expect to see single-digit price growth in 2008 while others expect slight price declines.

Local Economist

Some local economists, however, see a slightly different picture.

Mark Knold, chief economist for the Department of Workforce Services, says he predicts prices will probably come down a little because he thinks, “prices are flirting above what this market can afford even in the face of good wage gains.”

Kelly K. Matthews, Wells Fargo’s executive vice president and senior economist, also says Utah has an affordability problem, which is why he expects prices to be down 6 to7 percent in mid-2008.

“I believe we are so far out of equilibrium, I do not believe we can avoid some reduction in prices.”

At the same time, Jeff Thredgold, economic consultant to Zions Bank and president of Thredgold Economic Associates, sees price activity varying depending on the market segment.

According to Thredgold, lower-end properties in the $175,000 to $300,000 range should increase approximately 7 to 10 percent. Some homes in the $300,000 to $500,000 range should see price gains of about 5 percent while others may see a slight decline. The real concern is the market for $500,000 and above properties; people may have to cut prices, and there may be areas that have to come down 5 to10 percent, he says.

“All real estate is local,” Thredgold said. “In certain communities, it will do well, but in some areas, prices may have to come down.”

I am more in line with Thregold, he clearly understands there is no across the board blanket diagnosis for Real Estate. It is local in nature, you can have zip codes with two different markets with tow different conditions at the same time.

If you would like info on your particular maket contact me.

Above quotes are from the Utah Realtor Magazine

5.75 Reasons To Buy A Home Now

2008-01-06T11:32:16Z

Is This A Good Time To Buy A Home?

Let's Take a Look at the Facts

Interest Rates Are 5.75% (depending on credit score)

Inventory is Ripe

Unemployment is Low

There Are Deals To Be Made

Stop listening to the media.

Dave Fox of KUTV News was involved in a loan fraud scheme. He made no money and was responsible for all the payments on a house. Are you going to listen to the media now?

Now I am aware there are some parts of the market that are still going to correct itself and prices are going to slide back. Back that is less than half the available homes and are way above the reach of the average buyer.

If you think prices are going to drop in 362,000 and under range (FHA Loan Limit) good luck.

Search over 15,000 Homes for sale along the Wasatch Front

Salt Lake County Real Estate Market Statistics

2007-12-30T21:57:23Z

Well we are closing this year out and so much has happened in the Real Estate World in 2007.

Just about the beginning of the year the lending started to get a little shaky or I should say starting to correct itself back to normal. The first quarter lenders started closing their doors, by mid year the results of the loan practices of the last few years were showing itself in full bloom.

Some parts of the nation went in to a total backward slide in home prices. States like Michigan, Florida were hit pretty bad. Michigan's woes can be tied to jobs, while Florida is home of the speculators. We had agents in our office here peddling Florida stuff. I have a hard time believing there are agents in Florida offices peddling Utah products.

We had the media all over the board. Reports of the sky is falling, in some parts of the country and in some parts of Salt Lake County that is true. But to give a report on national TV that is not a good time to buy Real Estate because... Is like saying that the weather forecast for the United States is going to be sunny and 77 degrees tomorrow. Continued

A Comparative Market Analysis

2007-12-30T21:51:32Z

Salt Lake Comparative Market Analysis

How is the value of a home determined? This is great question that has more than one answer.

Home Values from a Buyer's Point of View

From the buyer's perspective it is supply and demand. They comparison shop, they will look at all the homes in their area and price. They will compare the price along with the features and benefits that are associated with the property. Things like area, square footage, number of bathrooms, garage, condition... As you can see the example in the table below, it is that simple. The property that offers the most features and benefits for the best price is the one that has the most value to a buyer. Table 1.1

Item	Prop # 1	Prop # 2	Prop # 3
List Price	$200,000	$200,000	$190,000
Area	Similar	Similar	Similar
Sq Ft	2,350	2,300	2,450
Bedrooms	3	3	4
Baths	2	2	2.5
Gar	2	2	2
Condition	Fair	Fair	Remodeled Kitchen

Things Don't Have an Affect on Value

What you paid What you owe What you want What you need

Home Values from the Bank's Point of View

Banks use appraisers to determine value. Appraisers use a comparative method, but they go by past history instead of the active listings. Continued

Mortgage Fraud Utah In The Top Ten

2007-12-22T09:42:20Z

The headlines are everywhere.

FBI Launches Mortgage Fraud Task Force in the Nation's Capital

Easy loans + red hot real estate = the perfect recipe for mortgage fraud

Mortgage Fraud 101: Investigator Finds 400 "Crash and Inflate" Scams

I am always amazed at the creativity of the techniques used to commit fraud. I remember the first time I sat in the Continue Education Class a few years ago that was on loan fraud. I came out of there with what were pretty good ideas. I often wondered did the class help educate or teach more people how to commit fraud.

My general rule of thumb is. The words creative financing and an institutional bank are not usually spoken in the same transaction.

I sometimes get the question. Why can't a buyer and seller agree to do what they want? The answer I always give is, they can. But if there is a bank involved they now have a say and if the buyer and seller make an agreement that the bank is not aware of is not creative financing, it is fraud.

Usually money is somehow siphoned off the top. In order to do that there has to be more money than reality or the original seller would just keep it.

So the value has to be inflated. The real losers are those honest folks that purchased homes and their values were determined by those falsely inflated home prices. Because when the music stops and the prices slide back and all the fraud folks are just giving their properties back or selling them short. The guy that put down real cash is losing value on his home.

Of course the banks lose big time, but they are not so innocent, loaning money to people with no jobs and bad credit. They should know better.

The old axiom proves to be correct again. Why do people commit loan fraud? Because that's where the money is.

More Reasons For Salt lake Home Buyers To Use FHA

2007-12-15T11:47:37Z

Banging On My FHA Drum Again

There have been a couple of changes recently in the lending arena, Fannie Mae and Freddie Mac have added a new risk assessment fee and they are adding "delivery fees" First let's look at the risk assessment fee for those buying with a higher than a 70% loan to value ratio. Credit scores will determine the amount of the rate adjustment.

Credit scores between 660-679: 0.750% of loan size in fees
Credit scores between 640-659: 1.250% of loan size in fees
Credit scores between 620-639: 1.750% of loan size in fees
Credit scores below 620: 2.000% of loan size in fees

This can have an impact on home prices, because when qualifying for a loan, the borrower is based on a monthly debt to income ratio. The same amount of monthly income is now able to borrow less money. I like this solution so far, it doesn't affect people that have good credit or a large downpayment. Let's face it, if you have a less than favorable credit history and no down payment, you are a higher risk. Now let's look at the other fee.

Fannie Mae

Fannie Mae's new fee is called an "Adverse Market Delivery Charge"

Freddie Mac

Freddie Mac's new fee is called "New Market Condition Postsettlement Delivery Fee" They both are charging an additional .25% fee at closing. Although it is not a huge cost, this one appears to be across the board. The other fees are based on credit score which is the best way to determine the risk. This one is a little unfair, because it lumps everyone together.

FHA Loan and Limits In Salt Lake

Now with all that said, they DO NOT apply to FHA or VA Loans that are insured or guaranteed by the Federal Government. Although FHA an VA have always had a upfront fee FHA Does Not Use FICO Score, VA has it's own set of rules that are pretty similar to FHA. Hmmm, I wonder which loan program is going to be become very popular in the next couple of years. So I am going to bang on my FHA Drum again. I know FHA only goes up to $362,790 in loan amount. That is approximately 83% of all the homes sold in Salt Lake County this year. 8 Reasons To Use An FHA Approved Lender

Mortgage Rates In Salt Lake City

2007-12-15T11:43:32Z

Rates have gone up a little in the last week, or should I say last rates dipped a little below six. There are deals out there.

Conforming mortgage rates mentioned below are considered with loan amounts up to $417,000 for a single family residence and is owner occupied. It is with proving your income and a "full document borrower".

The rates quoted are based on a purchase price of $200,000 on a 30-day lock. On these conforming loans, there are no prepayment penalties involved.

Program	Rate	APR
95%	6.25	7.43
100% With Mort Insurance	6.38	7.78
100% No Mort Insurance	7.00	7.19
My Community 100%	6.88	7.80
VA 100%	6.00	6.81
FHA 97%	6.00	6.17

If you would like any additional scenarios done, please call for that information at 801-747-1233 and ask for Cindee or email to Cindee@CindeeStone.com

Enough about Me, What about Me

2007-12-09T19:53:44Z

I have been meme'd. So now I have to tell the world about me. I imagine a lot of you have seen My Red Brain around the web. Makes you wonder how close or how far off you are when you read about people. How many would have guessed the below 5 things about me.

The person that meme'd me Charles Woodall http://www.dothanhomesearch.com/

So about me besides Real Estate

•1. I love God and I enjoy studying the Bible.

•2. I am 49 years Old, married almost 18 years (3/3/90) To an awesome and gorgeous woman, I have two children ages 5 and 10 (I am not a Utah poster child, my peers are grandparents)

•3. I am a ministry associate for an organization called New Commandment Men's Ministry, I travel and teach Churches how to recruit and train men to a team ministry to take care of the orphans and widows (Greek words for fatherless and husbandless, 21^st Century single moms) of their congregation. I have been involved with various single mother support groups for over eleven years. I help single moms buy houses, my lender and I use our commissions to pay their closing cost and down payment assistance, appliances...

•4. I am a student of sales and leadership.

•5. I never went to college (when I need a degree, I hire them)

Seller’s Property Condition Disclosure

2007-12-08T19:49:38Z

One of the documents used in selling a home is the Seller's Property Condition Disclosure.

Seller is obligated under law to disclose to buyers defects in the property known to seller that materially and adversely affect the value of the property that cannot be discovered by a reasonable inspection by an ordinary prudent buyer. This disclosure form is designed to assist seller in complying with these disclosure requirements. Please thoroughly disclose your actual knowledge regarding the condition of the property.

Free Combination Smoke/Carbon Monoxide Detectors For Salt Lake City

2007-12-06T22:32:50Z

Salt Lake City Police Department

Public Information Office Phone 801-799-4203

315 East 200 South Salt Lake City, Utah 84111

Media Advisory

Free Combination Smoke/Carbon Monoxide Detectors

Each year in America, unintentional carbon monoxide (CO) poisoning claims more than 500 lives and sends another 15,200 people to hospital emergency rooms for treatment. CO gas can come from several sources: gas-fired appliances, charcoal grills, wood-burning furnaces or fireplaces and motor vehicles.
The Salt Lake City Police Department and the Salt Lake City Fire Department are offering free smoke/carbon monoxide alarms to residents of Salt Lake City. The Police and Fire Departments received funding for these items through a grant from State Farm Insurance. Salt Lake City residents are encouraged to attend community council meetings where the free alarms will be made available. Community council meeting agendas can be found by clicking on the following link: http://www.slcgov.com/citizen/comm_councils/mins&agendas.htm
The free alarms can also be acquired by contacting one of the following individuals in the SLCPD Community Intelligence Unit.
Sergeant Michelle Ross Sergeant Phil Eslinger
799-3039 Office 799-3035 Office
michelle.ross@slcgov.com phil.eslinger@slcgov.com
Cindy Lou Trishman
Constituent Liaison
801-535-7623
cindy.trishman@slcgov.com
To assure prompt attention to your information please 'Reply to All' or include City Council Liaisons (citycouncilliaisons@slcgov.com) in the address line of this email.

Get It In Writing Because Money Changes Everything

2007-12-06T22:30:24Z

When selling Real Property in Utah the standard form to use is called Real Estate Purchase Contract. a.k.a. the REPC (pronounced Rep-See).

This is the form that Licensed Real Estate Agents must use, buyer and sellers may use any form they choose however if there is a Real Estate agent involved then this is the form. This form is approved by the Utah real estate commission and the office of the Utah attorney general, effective august 5, 2003. It replaces and supersedes all previously approved versions of this form.

It is actually a very good document and covers most circumstances that could arise. It is a very win-win and allows a buyer and seller to enter into an agreement to sell-buy real property and allows the buyer to do their diligence with deadlines. It covers things like inspection, appraisal, loan and remedies for defaults.

To download a copy of the Real Estate Purchase Contract.

Everything must be in writing no matter how much you know or like someone or how nice they seem.

Remember "Money Changes Everything".

FHA Secure Helps More Than 33,000 Families Avoid Foreclosure So Far

2007-12-04T08:20:07Z

The Bush administration's FHA secure has over 33,000 families so far and expects to have helped 50,000 by year's end.

In light of all the changes taking place in the mortgage world, FHA is really a life saver. Remember FHA Does Not Use FICO Scores

WHAT IS FHA SECURE?

On August 31, 2007, President Bush announced the creation of FHASecure. Backed by the government, FHASecure is enabling homeowners who have a history of on-time mortgage payments under their original interest rates, but missed payments after their rates reset, to refinance into FHA's mortgage insurance program. Families with high-cost mortgages and mortgages that are due to reset, but are still current on their loan, also continue to refinance through FHASecure. This is a more viable option because FHA-backed loans are less likely to result in foreclosure.

WHO IS ELIGIBLE FOR FHA SECURE?

To qualify for FHASecure, and include the delinquent loan payments, homeowners wishing to refinance must meet the following requirements:

Have a non-FHA insured ARM that has reset

To read the whole article and other articles on FHA

The Company That Keeps On Giving

2007-12-02T19:12:38Z

It is that time of year where we have our annual office Christmas Party. Everyone gets dressed up and we have a lot of fun and we spend a lot of money.

This year we decided because the market has shifted we are going to have a potluck on Tuesday the 18th right after team meeting and take the money we would have spent on an elegant evening and give it to those in KW Midvale family that might be struggling and make sure they have a Merry Christmas.

For more or giving

Snowing In Cottonwood Heights

2007-12-02T17:07:14Z

Well we had our first GOOD snow for the season. Several things are noticed, people have their ski clothes on, and bus stops along Ft Union Blvd are full of those not old enough to drive as they are headed up the Canyons.

Yes it is winter time, Thanksgiving is over there is snow on the ground and it is cold.

Now this brings us to another point, the hidden keybox. You know the one's on the side of the house on the gas meter. Not so bad in the nice weather, but with several inches of snow on the ground it is not such a good thing, which brings to thinking.

Why on God's green earth would you hide the keybox? I would love to be a fly on the wall when that conversation took place. The agent says to the sellers, you see Mr. and Mrs. Seller one of strategies to get the home sold is, I make it difficult to show. What possible logic could there be? You go traipsing around the yard looking for the key, ruining a good pair of shoes and you open the door and there is a sign, please take of your shoes.

One of the basic fundamentals of getting your home sold is accessibility. When I run across these situations, I start to think if the listing agent makes it difficult to show, how challenging they are going to be if we try to buy the house.

Salt Lake County Rental and Vacancy Rates

2007-12-02T16:51:49Z

Now Is A Good Time To Buy Rental Properties In Salt Lake

Salt Lake County Rental Rates have risen and are expected to rise again. Along with the money tightening and the endless stream of what would be first time home buyers, that enter the market every year they are now going into the rental pool. That along with inventory on the rise there are definitely good deals to made. Another factor is our employment, not many people will be leaving the area, in fact immigration continues because of our employment growth, we will fair the real estate market pretty well.

Change In Rates By Types Of Unit - Salt Lake County

Overall Rental And Vacancy Rates In 2006 By Type Of Apartment Unit

Rental and Vacancy rates By Location of Apartment Communities - 2006

Single Family Rates and Vacancies

This data above is for apartment communities, mainly because there is no real central data base for single family rental units in Salt Lake County. However houses if they are clean and in repair will pretty much mirror this data in percentages of vacancies. Just like the first table above, rents on the East are little higher than the West side, however the acquisition cost on the West is disproportionally lower, making the ROI higher. For information on determining the value of a rental property complete with a spread sheet to download. "Don't Wait To Buy Real Estate, Buy Real Estate and Wait" The above tables are from Commerce CRG

Is It Better To Wait Till Spring To Sell?

2007-12-01T23:10:42Z

Today a seller asked me if this is a good time to sell. I asked if she was definitely moving and her response was yes. So then I told her it was a great time to move.

Now does that mean I am going to throw up a sign and get three offers? No. But if you think about it, there never is a good time to move. Selling a house, packing, relocating the kids, the dog...

Then the question comes up, isn't it better to wait till the spring? The answer is a resounding NO. Then the question is, aren't there more buyers in the spring? Yes, what else is there more of in the spring, sellers. Lots of them, they're like perennials. In fact this spring there will be more sellers than buyers.

So the fact is now is a good time to sell (if you have to), because any buyer that is out there now is motivated and does not have a to choose from and if you are in good shape and priced good, you should have less problems than in the spring.

Of course the other mind numbing thought of "Should I sell then buy or should I buy then sell"?

Am I being over optimistic? Maybe, but a good salesperson is definitely an optimist, would you want to hire Eeyore? The trick is an optimist and the truth.

FHA To Keep Their Loan Limits the Same

2007-11-28T23:49:38Z

FHA has announced to keep their loan limits in place for the coming year 2008. The FHA maximum loan amount is 87% of the conventional loan limit of $417,000. Salt County falls into the 87% making the total loan amount for Salt Lake $362,790

There had been a lot of talking about raising the limits on the conventional amounts to adjust to the recent rise in home prices. Based on some articles by Peter G. Miller (Good Site) over at FHA Mortgage Guide, he talks about if loan limits go up when prices go up, then they should go down when prices go down. So in essence keeping them the same while in some markets prices are going down some is good for the housing market.

Click for a table of FHA Loan Limits for Utah Metro Areas.