Tooele Real Estate "Stuff "

What's in store for Utah mortgage rates?-

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Fri, 27 Nov 2009 09:53:05 -0600

What's in store for mortgage rates?-

What's in store for mortgage rates?

President's Message

Chris Sloan

Last week the Utah Association of Realtors and the Salt Lake Board of Realtors reported that home sales along the Wasatch Front increased about 4 percent in the third quarter. Along with the impact of lower home prices and government programs, one incentive that has helped spur the sales has been the incredibly low mortgage interest rates in Utah.

Because most Utah homes are bought using credit, mortgage rates play a significant role in determining the overall affordability of a home. One study suggests a one percentage point decrease in rates is equivalent to a 10 percent price reduction.

Although interest rates have hovered in the 5 percent range all year, there is always uncertainty in regard to whether they will rise or fall in the future. For anyone looking to buy a home in the coming months, the question is particularly important.

Mortgage rates are determined by a variety of market forces, which make it incredibly difficult to predict exactly which way they'll move. Generally speaking, 30-year fixed mortgage rates follow the yields on 10-year U.S. Treasury bonds, because 30-year mortgages are typically paid off in about 10 years because people move and refinance. Mortgage rates are generally about 2 percentage points higher than the yields on Treasury bonds, because a homeowner is seen as a greater default risk than the U.S. government.

One of the greatest factors in pushing up bond yields, and ultimately mortgage rates, is the outlook for inflation. If investors expect inflation to rise, they demand higher rates of return because inflation dilutes the value of the fixed payments they are scheduled to receive. Hence, if the dollar is weak, then there is less demand for bonds, which in turn pushes yields and rates up.

"Private investors could furthermore be worrying about potential inflation in later years when the economy recovers and want additional premium to compensate for the loss in purchasing power of the invested money," said Lawrence Yun, chief economist of the National Association of Realtors, in an economic commentary.

Another factor in the mortgage rate equation has been the Federal Reserve's purchase of mortgage-backed securities and Treasury debt. With the Fed making huge purchases of Fannie Mae and Freddie Mac securities, demand has been pushed higher and mortgage rates have fallen significantly. Mark Zandi, chief economist and co-founder of Moody's Economy.com, said in a recent conference that without the Federal Reserve purchases, mortgage rates would be closer to 6 percent, rather than today's rates that are around 5 percent.

The Federal Reserve has stated it will fulfill its commitment to purchase mortgage-backed securities by the end of March. Without this government demand, experts say rates will inevitably rise. Analysts at Barclays Capital in New York forecast mortgage rates will be slightly more than 6 percent by the end of March, according to the Wall Street Journal.

Some groups are hoping the Federal Reserve will expand its purchase program beyond first quarter 2010, which would delay the increase in rates. However, the Fed has to carefully plan its exit strategy so it doesn't risk having too much money in circulation, which could create inflation risks.

As the Fed plays the careful act of balancing a fragile economic recovery against inflationary pressures, it seems certain that interest rates will rise next year although the timing is uncertain. In its most recent forecast, The National Association of Realtors predicts the 30-year fixed mortgage rate will begin rising at the end of this year and will hit the 6 percent level by the end of 2010.

Of course, your own financial situation will also play a role in determining your mortgage rate, since those with the highest credit scores tend to receive the best rates. You can also purchase a better rate using the point system, where you can incrementally buy down the cost of your loan. Finally, different lenders will offer a variety of rates and fees, so you'll want to do some comparison shopping to get the best price.

While mortgage markets are notoriously difficult to predict, it seems unlikely rates will go much lower. So if you are thinking about buying a home in Utah, it may be great opportunity to make a purchase before the Fed wraps up its purchases of long-term debt.

For more information on home buying and mortgages, contact your local Realtor and mortgage lender.

If you don't have a lender or a favorite Realtor, feel free to stop by Utah Real Estate and take advantage of a number of very important tools we provide our clients to help search for that Utah home.

You can also search almost 20,000 Utah homes for sale from our website.

Or just pick up the phone and call us @435-840-5029 to talk about what we think is going to happen with mortgage rates in Utah.

$8,000 tax credit for home buyers extended-

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Fri, 27 Nov 2009 09:29:04 -0600

$8,000 tax credit for home buyers extended

President's Message

Chris Sloan

Congress has extended a popular tax credit of up to $8,000for first-time home buyers until mid-2010. Utah Home buyers who were once under a tight Nov. 30 deadline now have until April 30 to be under contract to purchase a primary residence under new legislation President Obama signed last week.

The bill also expands the tax credit to include existing homeowners who are purchasing a primary residence. Under the new provisions, current owners must have lived in their Utah home for at least five consecutive years out of the past eight and are only eligible for a credit worth up to $6,500, unlike the $8,000 limit awarded to first-time buyers and those who haven't owned within the past three years. Current homeowners will only be able to qualify if the Utah home purchase is made after Nov. 7.

Congress also expanded the potential pool of qualifying home buyers by raising the income limits. Under the previous version, home buyers would not qualify for the credit if their incomes exceeded $75,000 for singles and $150,000 for couples. Under the new legislation, single and married buyers can earn up to $125,000 and $225,000 respectively to receive the full credit. Those earning up to $20,000 above those limits may qualify for a partial credit.

Although the tax credit has been extended, interested buyers should not procrastinate. To qualify for either the $8,000 or $6,500 credit, buyers must have a home purchase contract in place by April 30. Buyers then have until July 1 to finalize the transaction.

While much of the tax credit has been expanded, Congress has added a couple new requirements. A home's purchase price must not exceed $800,000, and buyers must provide documentation of the purchase when filing their taxes.

This is the third time Congress has extended the home buyer tax credit. The original 2008 tax credit provided first-time home buyers with up to $7,500; however, the money had to be repaid and was essentially like an interest-free loan. The second credit, which was enacted in February this year, gave first-time buyers up to $8,000 that did not have to be repaid.

Already that tax credit has been highly successful. The National Association of Realtors estimates approximately 350,000 U.S. home sales this year are directly attributable to the tax credit.

In fact, overall sales began to increase both locally and nationally as the repayment-free credit began to take effect this spring. U.S. home prices even saw signs of stabilization, with prices rising for four consecutive months, according to the S&P Case-Shiller Index of 20 cities.

"We can't underestimate just how powerful a catalyst the first-time home buyer tax credit has been for the housing sector," said Lawrence Yun, chief economist for the National Association of Realtors. "It's given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions. The buying conditions this year are the most favorable on records dating back to 1970, but the tax credit is allowing buyers to set aside any reservations about waiting for a better deal."

Nevertheless, economists fear rising unemployment and another wave of foreclosures will continue to put downward pressure on prices. That why economists like Yun say the passage of this tax credit extension and expansion was critically important.

"Foreclosures will continue to come on the market, but rising sales from the expanded tax credit should stabilize home prices by next spring and help to stem future foreclosures," he said.

With the passage of the tax credit extension, Yun estimates U.S. home sales will rise 20 percent in 2010 and inventories will shrink back to normal levels, creating broad price stabilization across the U.S.

"The housing market will get a nice boost going into next year," Yun said.

With all this momentum, however, Congress has made it clear that it will not be extending the tax credit for a fourth time. That's why it's imperative for home buyers to prepare now to take advantage of the credit before it's gone for good.

To learn more about the tax credit, home buying in your area and how to get started on your home search, contact your local Realtor.

If you don't have a Realtor, feel free to stop by our website at Utah Real Estate Online or give us a call @ 435-840-5029, and discuss the $8,000 tax credit for Utah home buyers.

Common Housing Market Questions-

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Thu, 26 Nov 2009 11:01:57 -0600

Common Housing Market Questions-

Common Housing Market Questions

President's Message

Chris Sloan

As we near the end of 2009, we find that housing markets nationally as well the Utah housing market are in much better shape than they were last year at this time. The combination of low home prices, bargain mortgage rates and government tax incentives has created a momentum and demand for homes that is likely to continue into next year and hopefully break the cycle of bad news.

If you're thinking about buying a Utah home in the next few months, you're likely to have a lot of questions about home buying and current market conditions. Here are answers to some common inquiries:

When will the housing market recover?

We're already seeing some signs of recovery for housing. On both a national and a state level, sales appear to be on the way up. In Utah, third quarter home sales were up 2 percent compared to the same period a year before, the first quarterly rise since second quarter 2006.

Experts have mixed opinions, however, about the direction of home values next year. Lawrence Yun, chief economist of the National Association of Realtors, believes U.S. home prices will get a 3-5 percent boost, while Mark Zandi, chief economist and co-founder of Moody's Economy.com, believes prices will see more declines as new foreclosures come on the market.

The fact is there is no consensus on when the bottom will be and no home buyer will be able to time it perfectly. Buyers should be aware that price drops or gains will vary significantly depending on the location and the price of homes. In fact, some homes (like lower-end homes or houses in prime locations) have likely already seen their values stabilize.

Likewise as we have said many times on this blog, houses for sale in Grantsville Utah, can stabilize at a diferent rate than homes for sale in Stansbury Park, just 12 miles away.

Proof of this is the dramatic price differential between horse property for sale in Tooele and Homes for sale in South Jordan that allow horses.

Is it a good time to buy a home?

Yes, it's a good time to buy a home depending on your circumstances. If you have a stable job, steady income, good credit and are planning to stay in the house for at least four or five years, then a home purchase in Utah may be a wise decision.

Today's Utah home buyers have tremendous advantages. In many areas, home prices have come down from their peaks and are incredibly affordable when you take into account the super-low mortgage interest rates."The market is just about as affordable as it's ever been at least based on incomes," Zandi told attendees at a National Association of Home Builders conference.

The federal government's home buyer tax credit is also a significant incentive. It's worth up to $8,000 for first-time buyers and $6,500 for existing homeowners who have lived in their homes at least five consecutive years out of the past eight.

While consumers shouldn't rush to make a home purchase if they are unprepared for the financial commitment, buyers who are ready to get into the market shouldn't procrastinate too long. The extended tax credit ends April 30, and experts expect interest rates will begin to rise next year.

How do I know my local market is improving?

One of the best indicators for knowing which way the market is headed is to look at the supply of inventory. In other words, how many months it takes to sell the current inventory at the current sales pace.

Generally speaking, this is about 6 months in a balanced market. On a national level, Yun reports that it would take about 6 months to sell the current supply of inventory for homes less than $250,000, but it would take about 14 months for homes priced higher than $500,000. To get a better gauge on your own market and price range, talk to a local Realtor about whether inventory is trending up or down.

If you don't have a Realtor, give us a call @ 435-840-5029 we'd be glad to help.

What happens if home prices fall after I buy?

As long as you can afford your mortgage payments and don't need to move anytime soon, a dip in prices probably won't affect you too much. It could have an effect on your ability to refinance, but with today's super-low rates you likely wouldn't be able to refinance to a significantly lower rate.

Also keep in mind that homeownership is a long-term commitment, and home values tend to rise over the long run. For example, data from the National Association of Realtors show that home values tend to rise at the general rate of inflation plus 1.7 percentage points in a balanced market. That means homeownership is usually a pretty safe bet for those who are in it for the long haul.

Nevertheless, it's important that you not overpay for your home. Before you make an offer on a property, make sure to talk to your Realtor to make sure the price you're paying is in line with current market values. Also talk to your Realtor about any concerns you have about the home-buying process and ask for information about local market conditions.

For more information on the home-buying process, and homes listed for sale in Utah, visit Utah Homes For Sale and get up to the minute Utah Real Estate information.

Or give us a call to answer any Utah Housing market questions. 435-840-5029.

Real estate incentives not just for first-time buyers-President's message

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Tue, 13 Oct 2009 08:29:31 -0500

Real estate incentives not just for first-time buyers-President's message

With the government's $8,000 incentive for buying a home, a real estate purchase naturally makes sense for first-time buyers who qualify for the tax credit. But today's market also provides less-obvious benefits for those who already own a home.

Although they won't be able to take advantage of the first-time home buyer tax credit if they currently own their primary residence, they will be able to reap the benefits of lower home prices and fantastic mortgage rates.

While some existing homeowners may be anxious to trade in their current home for a new one because of these incentives, there is always the concern that they will take a loss if they sell their house in a buyer's market. However, in some circumstances, it may make sense for the homeowner to sell at a loss because he or she may be able to more than make up the difference by getting a discount on the new home.

I was recently reading an article in Money Magazine, "Sell at a loss, buy at a discount," that detailed this situation. A condo owner was anxious to move out of her existing place into a better neighborhood but was concerned about selling her place for less than she'd hoped. Money's financial planners advised the reader to consider selling her current place because she would likely be able to trade up to a nicer home with the discount on that home offsetting her losses on her current home.

Consider the following example: Let's say two years ago, you would have sold your current home for $200,000. In today's market, however, you are only able to sell the home for $190,000, a loss of $10,000. But consider further that two years ago, the home you wanted to trade up to was $400,000, but it's now selling at $380,000, a $20,000 discount. That gives you a total savings of $10,000. Plus, your mortgage interest rate would likely be much lower today than it would have been two years ago, saving you even more money.

Higher-priced homes generally sell for a greater discount because there is less demand for trade-up real estate. In fact, over the past year, the majority of homes sold along the Wasatch Front have been priced under $250,000. Because of this, owners of pricey houses may be offering even greater discounts than the sellers of more affordable starter homes.

That means the greater activity in the lower price range could draw attention to your home, freeing you up to buy a nicer home at an even greater discount than the one you gave to your buyer.

Nevertheless, if this is a strategy you want to pursue, you'll want to have a plan. Start by contacting a Realtor to get a realistic view of how much you can sell your home for in the current market. Then have your Realtor help you determine how much you can expect to pay for the home you'd like to buy. With that information in hand, you'll be able to better decide if trading up makes sense for you.

There are a number of other items to also take into consideration when selling your property and buying a new one, such as whether you will sell your current home and rent before buying, whether you will try to buy and sell simultaneously, or whether you will own two properties for a period of time.

Trading up can be tricky, but in today's buyer's market, it can also be the perfect time to make a move. Contact your local Realtor to decide if trading up is right for you.

Posted by Chris & Berna Sloan | 0 Comments

Utah economy on the road to recovery-President's message

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Tue, 13 Oct 2009 08:25:59 -0500

Utah economy on the road to recovery-President's message

Utah's economy is currently facing challenges, but the state is well-positioned for an economic recovery. That was the message of the director of the University of Utah's Bureau of Economic and Business Research in a presentation to Utah Realtors on Tuesday.

"Utah's fundamentals are still in place," said James Wood. "Once growth resumes, Utah will outperform most states."

Among those fundamentals are

1) The state government's fiscal responsibility
2) The state's transportation infrastructure
3) Population growth
4) Quality of life and
5) A quality and cost-effective workforce

Wood says Utah's recovery will coincide with that of the U.S. as a whole, which is why it is encouraging to see recent reports of positive national news. Increases in existing home sales, new home starts, productivity and retail sales are just a few of the positive headlines that have been in the news recently. Even Federal Reserve Chairman Ben Bernanke said "the recession has likely ended."

The Case-Shiller Index, which measures home prices in major U.S. metro areas, has also been up for the past three months. Although the data does not include Utah prices, the positive news should help the U.S. economy, in turn helping our local economic conditions.

"We need good national numbers to help our employment numbers here," Wood said.

Although employment is one of the last indicators to pick up, real estate, which is a leading indicator, appears to be seeing improvements. In the spring, the 38-month decline in home building ended as well as the 27-month drop in existing home sales in the four Wasatch Front counties and Tooele.

"I think we have established a bottom," Wood said.

Of course, there are still challenges that will keep economic growth tepid for the next 18 months, he said. That's because the U.S. financial system is still damaged, consumers are continuing to cut back, and the federal and state fiscal stimulus impacts will begin to fade in early 2010.

"The private sector must be a driver of a self-sustaining economic recovery," he said.

At the end of his presentation, Wood encouraged attendees to maintain a positive perspective and to remember that 1.2 million people go to work every day in our state, and our unemployment rate is only about 6 percent compared to the nearly 10 percent nationally.

Also attending the same meeting was Utah Gov. Gary Herbert who reiterated his inaugural speech, saying his No. 1 priority is getting the economy moving. Like for real estate practitioners who repeat the phrase "location, location, location," Herbert said his mantra is "jobs, jobs, jobs."

"My prediction is Utah will come out of this better than most," Herbert said, quoting a study from the American Legislative Exchange that said Utah will be the first state to come out of the recession. "Even with today's down economy, we've got in-migration coming to Utah," and the state's other economic fundamentals still remain in tact.

Herbert's plan for economic growth focuses on protecting Utah jobs, fostering entrepreneurial growth and recruiting companies to bring their businesses to the state. And he has assembled a "dream team" of economic development, including Spencer Eccles, Josh Romney and Derek Miller, to help him do just that.

"What we need to do is be proactive," Herbert said. "I can do something about Utah, and my focus is that Utah can survive the storms that are out there."

Published Monday, October 12, 2009 6:39 AM by Chris & Berna Sloan

Tips for Getting a Fair Appraisal-President's message

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Sat, 03 Oct 2009 06:27:07 -0500

Tips for Getting a Fair Appraisal-President's message

Bob and Mary thought they'd found their dream home, especially when they made an offer and the seller accepted it. All the closing preparations appeared to be moving smoothly until the appraisal came back significantly lower than the price they'd offered to pay, thereby jeopardizing their chances of getting financing on that particular property.

The home appraisal is a vital part of both the home buying and mortgage refinance processes, because buyers and lenders need to be assured that the purchase price or loan amount is in line with the home's market value. This helps prevent the buyer from overpaying and protects the lender from loss in case the home goes into foreclosure. However, during the housing boom years, there were reports that appraisers were being unduly influenced to appraise homes for higher than they were worth.

That's why mortgage giants Fannie Mae and Freddie Mac agreed to adopt a Home Valuation Code of Conduct that aimed to create independence in the appraisal process. However, it appears the code has created unintended consequences as well, such as unusually low valuations. In fact, some reports suggest that there has been a greater use of unqualified appraisers since the code was implemented.

Just as an inflated appraisal causes problems, so do lower-than-market valuations. Buyers are unable to get financing for the home they'd like to buy and homeowners are prevented from refinancing their mortgages. Nevertheless, even though Bob and Mary's situation has become more common with the new regulations, there are still things buyers and sellers can do to ensure they get a fair appraisal.

First, make sure the appraiser who is assigned to appraise the home is experienced in appraising similar homes in the area. There have been reports that some appraisers are conducting appraisals outside their geographic areas of expertise, so make sure to do a little background research before the appraisal is conducted.

Second, the homeowner should make sure the home is clean and presentable. The appearance of the house could have some influence on the final number, so prepare the home the same way you would for an open house, suggested Michael H. Evans, of the American Society of Appraisers, in a recent Money Magazine article.

Third, the homeowner should make sure to be available during the appraisal. Prepare a list of the house's attributes that may not be readily apparent to the appraiser. For example, a home sound system or energy-efficient upgrades could add value to the home, but might not be readily noticeable to the appraiser.

Fourth, if the appraisal comes back lower than you expected, carefully review the report. Have your Realtor help you determine if the data used in the report was the best available. Perhaps your Realtor knows of other recently sold comparable homes that might be a closer match to your home. Also be on the lookout for any potential errors. Is the square footage accurate? Is there any part of the analysis that doesn't add up? If you find errors or have additional information, present it to the appraiser. Many appraisers will appreciate and consider the extra information.

Finally, if you believe there are problems with the appraisal, that your appraiser is not addressing, talk to your lender. Or you can report the problems to the Utah Division of Real Estate, which regulates appraisers in Utah.

Determining market value is a difficult task in today's market, so it's a wise idea to provide the appraiser with any information you have that might be helpful. Your Realtor also has unparalleled knowledge of local housing markets and is likely to be a valuable resource as you navigate today's new appraisal landscape.

Published Monday, September 28, 2009 12:19 PM by Chris & Berna Sloan

Want A Loan For A Fixer Upper?-Try FHA !

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Sat, 03 Oct 2009 06:23:39 -0500

Want A Loan For A Fixer Upper?-Try FHA !

Corie Seymour's blog on getting a loan for a fixer upper that allows the home buyer to include the cost of the improvements to the FHA loan was an eye opener.

The loan has always been available, but was so difficult for the buyer to package that we had almost forgotten about it.

Now if you keep the home improvements under $31,000 it's a piece of cake.

At least that's the way that Doug Walker explained it in Cories blog.

Not only have we sold some Tooele homes that would have been perfect for this type of mortgage, we could have put together some transactions that we couldn't make work before.

Listen to some of what Doug had to say.

Cheap Fixer Upper Financing

In this age of stimulus bills and bail outs you would expect a really cool mortgage loan program to help home buyers. Well, there is one, but it's actually been around for years. There is a little known FHA loan program called the 203(k) that allows you to purchase a home and fix it up with the same loan. It's not very well known because most lenders either can't do them or just don't want to do them. They are more work than the average loan officer wants to do and most companies don't have underwriters that are familiar enough with them to confidently issue an approval that FHA will accept. At Republic Mortgage we feel the benefit to the client is so big that we have made the commitment to offer this program. We have loan officers who have been certified on this program (of course, that includes me) and the staff to get them done.

To read the entire article click . FHA Loan.

If you don't have a fixer upper in mind, but would like to search for one in Tooele, Grantsville, or Stansbury Park stop by our website @ Tooele Homes For Sale. You can search for hundreds of homes or Condos listed in Tooele County and receive photos, prices, maps, directions and tips on buying or sellig a home.

Or you can call us @ 435-840-5029. We'll talk to you about Tooele Real Estate or just about getting an FHA loan for your fixer upper.

New grant programs offer home-buying incentives-

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Thu, 24 Sep 2009 14:37:32 -0500

New grant programs offer home-buying incentives-Presidents Message

Even though the tax credit for first-time home buyers is set to expire Nov. 30, there is still time to take advantage of that program. Not only that, there are three new local incentives that could sweeten the deal even more.

One such program is a second round of grants for buyers of new construction. On Friday, Gov. Gary Herbert announced the renewal of the popular Home Run program, which before expiring in June had provided more than 1,600 grants to buyers of newly constructed, never-occupied homes.

The reinstated program will provide $4,000 grants to approximately 1,950 buyers. The grants will be awarded on a first-come, first-served basis to buyers who apply for the funds through their Utah Housing Corporation-approved lender by Nov. 30.

Unlike the original program that was only available for homes that were ready for occupancy upon closing, Home Run 2 allows buyers to receive grants for homes that will be constructed or are under construction as well as homes that are move-in ready but have never been occupied.

Buyers can apply for the funds through a Utah Housing Corporation-approved lender. Once the application is complete, Utah Housing will issue a grant commitment. For purchases of move-in ready homes, the commitment will expire after 10 days. For homes under construction, the commitment will be in effect until June 30, 2010, giving the builder plenty of time to complete the home.

Although the program is not limited to first-time home buyers, there are income restrictions. For singles, incomes cannot exceed $75,000, and married couples cannot have incomes greater than $150,000. For more information about the program and to find a UHC-approved lender, visit UtahHousingCorp.org and look for the Home Run 2 link.

Another grant program for newly constructed homes is available for those looking to purchase in Sandy. The city has created a new program that will provide low- and moderate-income home buyers with a $5,000 incentive for buying a new home in the city. The funds, which can be applied to down payment and closing costs, are in the form of an interest-free loan that becomes a grant after the home buyer has lived in the property three years.

Sandy plans to provide 10 loans to buyers of existing, never-occupied homes, and another 10 to buyers of to-be-constructed homes. The properties must be within Sandy city limits, must be "single-family dwellings," including townhomes and condos, and must not exceed $305,000. Household incomes must be below certain limits to qualify, but the program is open to both first-time and repeat buyers.

Funding for the program comes from a portion of the tax revenue collected from the commercial buildings around City Hall, said city spokeswoman Trina Duerksen. If successful, the program may receive additional funds after the original 20 grants are awarded, she said. So far, all 20 grants are still available.

To learn more about the program qualifications and application, visit www.sandy.utah.gov/owninsandy.

Finally, for buyers who are interested in both new and existing homes but are short on cash for closing, the Equity Now program from Utah Housing Corporation may be of interest. The newly launched program essentially allows first-time home buyers to use the $8,000 federal home-buying tax credit for down payment and closing costs, even before filing their taxes.

Under the program, borrowers take out a first and a second mortgage, which allows them to close with little or no money down. After filing an amended 2008 tax return, buyers can use their tax credit to pay all or part of the second mortgage. For borrowers who use their full credit on their second mortgage, Utah Housing will credit them $100 toward their second mortgage. The program provides instant equity by allowing buyers to use the tax credit funds to substantially lower or even eliminate the second mortgage balance.

To learn more about the monetization program and to find a participating Utah Housing Corporation lender, visit www.UtahHousingCorp.org and look for the Equity Now link.

These three programs are just a few of many programs designed to help today's home buyers. To learn about other home-buying incentives, contact your local Realtor.

If you don't have a local Realtor but understand that you may need some one representing you in the Home Buying transaction, stop by Group1 Real Estate and interview us by checking out our website.

Published Wednesday, September 23, 2009 7:50 AM by Chris & Berna Sloan

Safety Tips When Selling Your Home!

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Tue, 22 Sep 2009 17:34:25 -0500

Earlier this year, one of the local news stations contacted me and asked me for information about staying safe when selling a home. Apparently a man pretending to be a Realtor had asked to see a Lehi home that was for sale. Only after the man had wandered around the house did the family become suspicious and call police who later found out the man was an impostor.

When you are selling a home, there are inherent risks because you are working with unfamiliar people who will be going through your house. You may also find yourself alone with a stranger in a secluded place. Without the proper precautions, your valuables could be stolen or you could risk your own personal safety.

Because of these concerns, the National Association of Realtors has designated Sept. 13-19 as Realtor Safety Week. Along with educating Realtors about the potential risks of meeting prospects, showing homes and hosting open houses, the Association also aims to provide safety information to home buyers and sellers as well. Here are some of their tips for staying safe.

Any homeowner contemplating putting his or her home on the market should consider that strangers will be walking through the home during open houses and showings. That's why it's wise to make sure any valuables are in a safe place, including prescription drugs and personal information like bank statements that could be used for identity theft. Consider hiring a security guard if you have valuables that cannot easily be secured.

After the showing or open house, verify that none of your valuables are missing. It's also a good idea to check that all doors and windows are locked in case someone is planning on breaking into the house later on. Thieves will often use open houses to look for valuables and points of entry, planning to return after the Realtor has left.

Not all prospects are who they say the are, so never allow an unannounced stranger to tour your house. Have all potential buyers call your Realtor who will set up an appointment only after pre-qualifying the prospect. Even if the unannounced guest says they're a Realtor, have that person call and make an appointment with your Realtor. It is never a good idea to show your home without an agent present.

Refrain from talking to prospects about your personal schedule. Do not provide details about when you work or or other information that could let people know when your house will be vacant. Also avoid answering machine messages that indicate you are not at home, and do not discuss security measures with prospects.

Finally, working with a Realtor is also a safety precaution. Realtors are experienced in following safety procedures and are trained to watch for suspicious behavior. Furthermore, Realtors will always pre-qualify prospects before ever bringing anyone to your home.

While buyers do not face as many safety risks in the home-buying process, they should consider the safety of the homes they are buying. As you consider a potential property, carefully observe the neighborhood and look for street lighting and other safety features. Also take time to research the crime in the area. The individual features of the home may also be important as you consider safety. For example, a fenced yard, attached garage and dual-pane windows may provide additional safety.

Regardless of whether you are a home buyer or a seller, safety is an important consideration. Home buyers should carefully consider the safety features of each home while homeowners should have a safety plan in place before putting a home on the market. If you use a Realtor, take time to talk to your agent about what safety procedures he or she will implement when selling your home. Also ask what safety precautions you should personally be taking when your home is on the market.

For more information about buying or selling a home in Utah, visit UtahRealtors.com.

Utah Real Estate Looking Up!

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Sat, 12 Sep 2009 12:13:02 -0500

Utah Real Estate is looking up, and I say it's about time.

Each week, this year,as President of the Utah Association of Realtors I have tried to bring every one a message that would hopefully ease the pain from the trials and tribulations that many have never before seen in our Industry. That hasn't always been easy.

This week however, the message and the Utah Real Estate facts that make up that message give all of us that make a living helping folks buy and sell their homes a reason for optimism.

Why? ... Heres Why !!!

Utah homes are the most affordable they've been since 2004, according to a new report from the National Association of Home Builders and Wells Fargo. The Housing Opportunity Index, which uses home prices, mortgage rates and median household incomes to measure affordability, shows a clear trend that homes are becoming more affordable in all of Utah's major metropolitan areas.

That's good news for Utah home buyers who are spending less on their housing costs or are using the savings to trade up to another house. The NAHB considers a home affordable if a family making the area's median income spends less than 28 percent of their pay on housing costs.

In Salt Lake County, a family making the median income of $67,800 could afford to buy 70.6 percent of the homes sold in the second quarter, according to the report. That's up from last year's second quarter when only 54.6 percent of homes sold were considered affordable and up substantially from the record low affordability in third quarter 2007, when only 30.8 percent of homes sold were affordable.

In the Provo-Orem metro area, the affordability improvements were even more pronounced. In the second quarter, 71.3 percent of the homes sold were considered affordable to families making the median income of $62,900, up from only 48.5 percent last year and up dramatically from the record low of 22.5 percent in third quarter 2007.

Ogden-Clearfield had the highest affordability in the state at 81.5 percent (up from 68 percent last year), and St. George, at 57.2 percent, saw a substantial rise in affordability (up from 36.8 percent last year).

The affordability gains are the result of a combination of reduced home prices and lower mortgage rates. Although home prices are still slightly higher than they were in 2004, today's super-low interest rates have put affordability back to 2004 levels. In Salt Lake, for example, 70.6 percent of homes were considered affordable in the most recent data, compared to 75.2 percent in 2004.

The numbers in the Provo-Orem area were even closer to 2004 levels. In the second quarter, 71.3 percent of the homes sold were considered affordable, only a tad off from the 72.6 percent recorded in 2004.

Wells Fargo Chief Economist Kelly Matthews conducted a separate analysis with findings similar to the NAHB report. He said although average home prices are still higher today than in 2004, homes are about as affordable as they were five years ago because mortgage rates are closer to 5 percent rather than the near 6 percent rates in 2004.

"It shows basically along the Wasatch Front, as of year-end, our affordability is back to levels that existed in 2004 [when the real estate market here was doing well]," Matthews said. It was also a time when The Wall Street Journal highlighted Salt Lake City as one of the most undervalued markets in the country.

Now that we're back to those 2004 levels, home buyers are taking notice of the new found affordability. In July, sales of existing Wasatch Front homes were up for the second consecutive month, rising 4 percent, while nationally sales increased 5 percent. Furthermore, the newest data from the National Association of Realtors shows that pending home sales are up for a record sixth consecutive month.

NAR Chief Economist Lawrence Yun said buyers are taking advantage of the low home values before prices turn upward. The first-time home buyer tax credit and record high affordability are also providing momentum to the market. According to Yun, the typical mortgage payment now takes less than 25 percent of a middle-income family's income, the lowest amount on records dating back to 1970.

"If someone feels secure in their employment and income and needs a larger home, in actuality it's probably the best time to buy in a generation," Matthews said.

For more information about the housing market and to find a home that's affordable for you, contact your local Realtor.

If you don't have a Realtor, and are looking to buy or sell a home in Tooele County, Berna and I would like you to consider working with us.

To check us out, or to find out about Real Estate in Tooele, Stansbury Park, Grantsville UT, stop by our website @ Tooele Real Estate.

To search for properties in the Utah click on Utah Homes For Sale and access every House, Condo, & Town Home listed in the Beehive State

Or you can just call us @ 435-840-5029. We'd love to talk about Utah Real Estate looking up.

Published Thursday, September 10, 2009 10:35 AM by Chris & Berna Sloan

Utah Avoids Home Buyers Remorse-They Plan On It!

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Thu, 27 Aug 2009 09:44:08 -0500

How Utah'ans can plan to avoid home buyer's remorse- President's Message

Like the ancient Greeks and Romans, we as Americans are also living in our own golden age: the golden age for home buyers, where incredibly low interest rates, discounted home prices and government incentives have combined to create buying opportunities of a lifetime. In fact, three fourths of Americans believe that now is a good time to buy a home, according to a recent National Association of Realtors survey.

But many would be buyers are still faced with uncertainty. "What if prices fall after I've bought a home?" "What if a better property comes available?" "What if I decide I don't like the home?"

As detailed by the New York Times in a recent article, today's buyers face a more psychologically demanding home buying process than their counterparts in the boom years.

When Utah Real Estate prices were skyrocketing, new homeowners could simply sell their property at a profit if they decided they didn't like it. Today's buyer has to make a firm commitment to any purchase, and experts say the uncertainties surrounding home values have left many would-be consumers in limbo.

"The herd mentality was influential in getting people to jump into the bubble, and it is the same keeping people out," Mary Gresham, a clinical psychologist in Atlanta who studies personal finance issues, told the New York Times. "Anxiety runs through a culture just like greed."

But perspective home buyers don't have to be trapped by anxiety. In fact, many of the regrets that could arise later on van be avoided with a bit of advance planning.

In a recent Wall Street Journal column, Douglas Heddings, founder of the Heddings Property Group, LLC at Charles Realty in Manhattan, gave consumers several tips for avoiding buyers remorse. Heddings first suggestion is that Home buyers conduct some research beforehand to avoid overpaying for a property. In his column, he advised buyers to work with their real estate agent to evaluate the prices of similar, comparable properties that have recently sold.

Heddings says limiting your comparisons to properties that have sold in the last two or three months or are currently under contract will provide you with the most up to date information, which will decrease the likelihood of overpaying. Heddings also stressed that it is important to use only properties that are truly comparable. For the most accurate assessment of market value, properties should be in the same neighborhood, built around the same time and have similar features.

In other words if you are buying a home in Stansbury Park, check out the prices of homes listed and sold in Tooele County, rather than West Jordan Homes For Sale in Salt Lake County.

Another way to avoid later regrets about a home purchase is by carefully examining your budget before shopping for a home. Buyers often have doubts or want to get out of their contracts when they realize they might be taking on too much of a financial commitment. Make the process easier on yourself by budgeting and talking with a loan officer about what you are comfortable borrowing and what you can comfortably afford to pay.

In a market where home prices have declined, another common concern is that prices will drop lower. For buyers who have found the right home and would like to buy now, it helps to consider both the price and the interest rate. Even if prices come down 10% in the next year, but interest rates rose 1%, you would still be making the same mortgage payment. Remember, as long as you are comfortable making the monthly payments, it doesn't matter whether surrounding home prices are going down or up.

Finally, determine your goals. Decide what you want from the house, and make a list of the features you have to have.That way you'll be able to objectively evaluate each house and know that it will meet your needs. Also, make sure that you are committed to staying in the house for a few years. As you stay longer, there will be more of a chance for home prices to increase and for you to gain equity.

Of course, even with the most diligent planning, there will still be uncertainties in the home buying process. For the best chance of success, make sure you are working with a local Utah Realtor!

Utah Home Ownership Means Jobs-Prosperity Says New Governor

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Wed, 19 Aug 2009 16:59:40 -0500

Utah Real Estate, IE: Home Ownership, centered around New Construction particularly, has always provided the engine to create jobs and in turn prosperity for the Beehive state.

During the boom times of the last few years the dynamic growth along the Wasatch and the Salt Lake Valley, with new homes and condominium developments launched rural communities like Herriman, Riverton Utah, and Draper UT into mixed use enclaves and developments of extreme importance as bedroom communities as well as retail hubs.

It wasn't just Salt lake City.

From Saint George in the south to Brigham City in the north, the entire State of Utah was a part of that boom.

And naturally a part of the bust.

The slowdown of New Home Construction, all over the State has created some serious budgetary problems because these towns no matter how large or small came to depend on the fees, assessments, and taxes fueled by New home building.

The maintenance of many of the programs made possible by the Real Estate boom have become a burden to many Utah Cities and Towns.

With that in mind I felt compelled to write the following.

This week I had the opportunity of attending the inauguration ceremony for Utah's new governor, Gary Herbert. Not only was the event an opportunity to celebrate a milestone in the state's history, but it was also a chance to glimpse where Herbert's leadership will take us in the coming months and years.

During his speech, Herbert outlined his three top priorities as governor: jobs, education and energy. For me as a Realtor, the message was particularly meaningful because employment plays such a crucial role as families work to obtain and sustain homeownership. Not surprisingly, a new study from the National Association of Realtors found that 83 percent of Americans see job layoffs and unemployment as barriers to homeownership.

While the Utah real estate market is showing signs of stabilization (preliminary data indicates that year-over-year Wasatch Front home sales in July are up for the second consecutive month), the economy will play a key role in sustaining the recovery and giving Utahans confidence in their employment so they can feel comfortable about buying a home.

Health in the real estate sector in Utah will also lead to the creation of more jobs. For every home that is sold, a variety of other jobs and businesses also generate revenue, from the timber manufacturer all the way to the furniture store. Statistics from the state's recent Home Run program illustrate this point well since the 1,647 homes sold created 7,305 jobs, produced $239.9 million in wages and generated 20 million in taxes.

I applaud our new governor's efforts to help the economy, and I am confident his work to create new jobs will give Utahans the confidence they need to purchase a home, which will in turn spur the creation of even more jobs.

Like home ownership's connection to the economy, it also plays a role in Herbert's second priority: educational achievement. A 2001 Harvard Joint Center for Housing Studies paper reported that the children of owners achieved math scores up to 9 percent higher than the children of renters, reading scores up to 7 percent higher and reductions in behavioral problems of up to 3 percent.

Part of the reason for the improved scores may be the fact that homeownership provides stability. Homeowners typically stay in their home for 12 years whereas renters stay no more than three years, according to the U.S. Census American Housing Surveys.

Although not mentioned in Herbert's speech, other public priorities can also be served by homeownership. Studies show that crime rates are lower in owner communities, and homeowners are 28 percent more likely to improve their home and 10 percent more likely to participate in solving local problems.

Home ownership also serves as a forced savings plan, helping individuals and couples so they don't have to worry about paying rent when they retire. A 2004 study by Harvard's Joint Center for Housing Studies found that the net wealth of homeowners was substantially higher than that of renters with comparable incomes. In certain income categories, homeowners had a median net wealth 81 times greater than that of renters. Even with the recent drop in home values, 83 percent of Americans are confident that purchasing a home is a good financial decision, according to the recent NAR study.

Because of its many benefits, homeownership is an investment in our future. It provides shelter and security, fosters involvement in community, and provides economic and social benefits. I am thankful for our new governor for his commitment to supporting the economy and ultimately homeownership.

New Rules For Utah Lenders Extend Days Needed To Close On A Home!

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Sat, 15 Aug 2009 08:00:49 -0500

Last week in the "presidents message" I talked about the new rules for Utah lenders.

Utah lenders were my focus. For obvious reasons.

These regulations however are national and meant to be consistent across the country.

In other words the new Federal standards outlined determine that the information that mortgage lenders are required to provide a home buyer in Salt Lake City Utah should be no different than the documents required to process a loan in Grantsville, KY.

Many Utah lenders I have talked to have suggested that the new guidelines (rules actually) will delay closings and make it impossible to close a loan in less than 30 days.

Others say they have been conforming to most of what is now required already so closings should remain the same in terms of days needed.

A great article appeared on active Rain posted by Jeff Belonger the FHA Mortgage expert from Cherry Hill N.J. You can read Jeffs take on the Mortgage Improvement Disclosure Act @ MIDA.

Here's some of what I had to say.

With the implementation of new Federal Reserve regulations, home buyers now have a set of new protections and disclosures when they shop for a home loan. The rules, which took effect July 30, are designed to help consumers better determine whether a particular borrowing transaction is right for them.

The disclosures are part of Regulation Z, the consumer protection provision of the Truth in Lending Act. They include a number of time frames designed to give consumers the chance to review loan and other related documents. While the new measures are meant to provide more protection to consumers, home buyers should also know that the new requirements could potentially delay their scheduled closing dates.

Today I'll review the new requirements so you'll know what disclosures you should receive when applying for a home mortgage as well as the time frames you should expect in the mortgage application and home-buying process. To read the entire article

The bottom line here is that you need to know your lender, or get a recommendation from your trusted Realtor of someone that they have used before and know will get you the things you need when you need them. And what they now are supposed to get you by law.

If you don't have a Utah Realtor, let us apply for the job.

You can find out how we feel about this business by going to our website www.tooelehomesforsale.com and checking us out.

Or give us a call @ 435-840-5029 we'll be happy to give you the names of a few lenders we have confidence in.

Lenders that won't let the new rules hold up those closings more than they need to.

Buying Utah Real Estate - Read The Title Report On Your New Home!

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Sat, 01 Aug 2009 13:34:18 -0500

If your buying a Home, or just thinking of buying Utah Real Estate, read the Title Report on your new home. Here are some reasons why.

A couple of weeks ago, KSL News a local Salt Lake City radio program aired a story about hidden transfer fees attached to Real Estate.

KSL reported that some developers are requiring buyers to pay a transfer fee every time the home is sold as part of a covenant attached to the home's deed. The covenants generally require current and future home buyers to pay a certain percentage of the sales price to the developer, and the requirement often lasts for as long as 99 years.

While the situation isn't extremely common in Utah, it serves as a valuable reminder to Utah home buyers that they need to thoroughly inspect any Utah Real Estate they are considering purchasing, including reviewing the property's title and documents attached to the title. The practice is valuable not only to avoid learning about a private transfer fee in the eleventh hour, but to make sure you know and understand any restrictions associated with the property.

Transfer fees are more common in condominiums than in single family detached homes as many home owners associations automatically levy a fee to compensate for the time it takes to research, copy and facilitate the due diligence part of any Real Estate transaction in their complex. As an example, Vista Montana, in West Jordan recently added a transfer fee to be charged @ closing.

After you and the seller agree to the terms of the sale, you will receive a preliminary title report that will detail any title defects that will not be covered by title insurance. Make sure to carefully review this document as it will list facts about the property you are buying, including information on easements, rights of way, restrictions of use, liens and judgments, and obligations of ownership. While some of the defects (like the seller's mortgage) will be removed before the title is transferred, other issues will remain intact (like easements and homeowners association obligations).

The report will also reference any recorded documents attached to the property's deed, such as covenants, conditions and restrictions (CC&Rs). Often associated with homes located in subdivisions and other residential developments, these CC&Rs may restrict homeowners from painting their homes certain colors, may prevent RVs and boats from being parked in the driveway, or may prohibit ownership of pets. Make sure you know beforehand what these restrictions are so you can determine if you are willing to comply with them.

Along the same lines, the title report may reveal that you have additional financial obligations that come with owning the property. Maybe it's monthly homeowners association dues for maintenance or snow removal, or maybe it's an obligation to help pay for the upkeep of community roads.

Another issue is easements. While nearly all properties have easements that give other people the right to use the property in certain circumstances, it's beneficial to know what these are before you make a purchase. If the title report reveals a utility easement that prevents the owner from building on a certain section of the property, the buyer will want to know beforehand, especially if he had planned on building a swimming pool on that spot.

Although not reflected in the title report, another item to research before buying is zoning ordinances. Like an easement, the city laws might also prevent you from building a pool or rental unit on the property. Know beforehand what you can and can't do.

While restrictions are common in town home and condo developments, single-family home buyers shouldn't make the mistake of ignoring the title report and associated documents. Private transfer fees and CC&Rs are also commonly attached to detached houses, so it's still crucial for single-family buyers to understand if there are any restrictions and obligations associated with the property. A good example of this is the Daybreak development in South Jordan where different development communities have individual bylaws or CC&Rs, but a new home buyer should check to see if there is a master document for the entire development.

If you do find serious issues in your review of the title documents, talk to your attorney and your Realtor. You may be able to negotiate a solution with the seller, or you may need to cancel your purchase agreement according to the terms of the contract. Keep in mind though that you only have a limited amount of time to review this document, so talk with a real estate attorney, the title company or your Utah Realtor if you have questions.

For more information and tips for purchasing Utah Real Estate, call your favorite local Realtor.

If you don't have a favorite Realtor in Utah,We'd like to recommend one that we know would be be knowledgeable as well as helpful in your situation.

Give us a call at 435-840-5029. Or stop by our website Real Estate Information.

Tooele "HORSE PROPERTY" For Sale!!

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Wed, 22 Jul 2009 07:59:24 -0500

Horse Property in Tooele

Horse Property -

441 E 400 N,

4,258 sq. ft.,

6 bedrooms

5 baths

Rambler

Full size apartment in basement/Mother in Law apartment (2 separate entrances)

.94 acre

8.67 water Shares

220 Power to 3 car garage and shed

Covered Patio

Covered RV parking

Play area for kids with built in Trampoline

This is not a Short Sale, HUD Home, Bank Owned Home, Foreclosure, Pre-Foreclosure or any other name for a distressed property. This Home is just a wonderful buy for a family that loves a rural lifestyle. This one acre Ranchette in Tooele Utah is perfect for that family.

MLS® $450,000

To see other listings of Tooele Homes for sale go to our website, Tooele Real Estate. You can find the latest listings of homes for sale in Tooele, Erda UT, Grantsville UT, Stansbury Park, Stockton Utah, Lake Point UT, and Rush Valley.

Property information

Utah Real Estate - Home Sales Looking Up.

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Tue, 21 Jul 2009 18:12:22 -0500

The state of Utah real estate : Home Sales looking Up.

As we celebrated New Year's Day 2009, many of us were relieved that we were leaving behind a dismal 2008.

Even so, we had wished we were closer to 2010 and the hopes of a better economic outlook.

Well, we're halfway there and despite the challenges still ahead, it feels like we're in a much better place than we were last year or even six months ago.

For Utah Real Estate, in particular, the outlook definitely feels rosier. In fact, some experts are saying the toughest times may already be behind us. A new report, titled "Utah's Homebuilding Industry: Present Perspective, Future Prospects," suggests the rate of the Utah home building industry's decline has been slowing of late, the Salt Lake Tribune wrote.

The report's author, James Wood, director of the University of Utah's Bureau of Economic and Business Research, said the diminished weakness could signal that Utah is closer to reaching a bottom for this real estate cycle. One encouraging sign is the recent increase in June home sales in Utah. For the first time since September 2008, monthly home sales in the four Wasatch Front counties and Tooele were higher than sales in the same month a year earlier. Preliminary numbers show the increase at about 7 percent, but the rise is likely to be higher because sales for the month are still being reported.

Statewide numbers also show signs that the biggest declines are likely behind us. At the beginning of the credit crunch in September 2007, Utah home sales saw a drop-off of 25 percent. From there, the most significant drop was in first quarter 2008 when sales were down about 35 percent from levels the year before. Since then, however, the rate of decline has slowed, and the upcoming second quarter report is expected to show even more improvement.

Other positive news comes on a national level, where seasonally adjusted existing home sales have increased three times this year, a sign U.S. home sales may have already hit a bottom. Most recently, seasonally adjusted U.S. existing home sales increased 2.4 percent in May, the first back-to-back monthly gain since September 2005.

California has also seen increases in the median price of existing single-family homes for three straight months, good news since California is seen as a barometer for the rest of the country. Of course, prolonged improvement in Utah's housing sector will depend on how the national economy continues to perform.

The National Association of Realtors is forecasting for the rest of the year that the U.S. economy will begin recovering as stimulus programs start to take effect, credit and banking problems stabilize, and the manufacturing sector improves. NAR expects Utah will follow a similar pattern because the state has been less impacted by the recession. In a recent report, the organization said Utah and its housing markets should participate in a modest housing recovery through the later part of 2009, with somewhat greater potential in 2010. That's not to say there won't be challenges ahead. Prices still need to stabilize and a continued rise in foreclosures could put more real estate inventory on the market.

Another concern is the fact that job growth is not expected to resume until the later part of next year. But in many ways, Utah is still faring better than many states. Our foreclosure rate is less than the national rate, at 2.36 percent compared to 3.85 percent. Salt Lake City had lower exposure to subprime and Alt-A loans, with a share of 14 percent versus 15.5 percent nationally. And Utah's unemployment rate is only 5.4 percent compared to 9.4 percent for the U.S. Most importantly, Utah buyers are beginning to recognize that now is an ideal time to be shopping for a home.

With the affordable prices, super-low interest rates and government incentives, more people are once again getting excited about purchasing real estate. And that's the first step to any recovery.

Short Sales- Tips on Buying One!

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Thu, 16 Jul 2009 17:29:25 -0500

Tips for buying a short sale: part 2

President's Message

Chris Sloan

Earlier this year, I wrote about real estate short sales and included several tips for buyers interested in purchasing these properties. Since that time, short sales have continued to play a significant role in the marketplace, with one in six Wasatch Front homes listed for sale being classified as a short sale.

Because buyers continually ask me about short sales and what it takes to successfully buy one, today's column will include another set of tips to help you have the best chance for success. Let's start with the basics:

A short sale occurs when a bank allows a homeowner to sell his property even though the sales price of the home will be less than the amount owed on the mortgage. This situation typically occurs when property values have fallen and a homeowner must sell the home, usually because of financial difficulties. The short sale prevents the property from going into foreclosure, which can save the bank money and can leave a less severe mark on the seller's credit report.

For buyers, short sales present an opportunity to purchase real estate at very competitive prices. While short sales may not be bargain-basement deals because the bank is trying to minimize its losses, the properties are generally priced to sell. In fact, some properties are generating so much buzz that multiple buyers are competing to purchase them.

Because there is so much interest in short sales these days, it's important that you submit your best offer if you are serious about buying a particular home. In general, only one offer at a time will make it to the bank for approval, so you want the seller to accept yours if you are in love with the home.

When making an offer, you want the price to be close to the fair market value of the property. If you submit an offer with an asking price that is significantly below market value, it is less likely the seller will accept your offer and it is unlikely the bank will approve your price. Save time beforehand by asking your Realtor to help you determine a fair price for the home. That way you won't be waiting for months only to have the bank tell you the price is too low.

You will also increase your chances of having your offer accepted if you don't include any contingencies, such as making the offer dependent on whether you can sell your existing home. Buyers who have their financing in order also have a better chance of having their offers accepted. If you are pre-approved for a mortgage, have a large down payment and are ready to close at any time, your offer may have a better chance than one from a less-qualified buyer.

Once the seller accepts your offer and sends it to the bank for approval, be prepared to wait. At a minimum, banks are taking up to three months before approving an offer on a short sale transaction, and in some cases, the wait is six months. The bank may also make changes to your original contract, which may require additional negotiations.

You can also get a feel for how many delays to expect if you've had a title company conduct a preliminary title search. If there are numerous liens on the property (e.g., a second mortgage, a home equity line of credit, homeowner's association dues, mechanic's liens, etc.), it is more likely there will be hiccups because each entity has to sign off on the deal.

Finally, once you do get approval from the bank, you'll want to be prepared to close in as little as 30 days because some banks are adding additional fees if buyers don't meet their deadlines. Prevent potential problems by working with a lender who can close under a tight deadline. Also make sure your home inspector can complete an inspection on short notice.

Although short sales are complex transactions, they provide many opportunities for today's home buyers. For the best chance of success, make sure you are working with a Realtor who has experience representing buyers in short sale transactions.

Published Monday, July 13, 2009 1:59 PM by Chris & Berna Sloan

Grantsville UT Horse Property For Sale

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Thu, 16 Jul 2009 17:25:07 -0500

Horse Property in Grantsville-Utah

GRANTSVILLE- UTAH RANCHETTE W/ FENCING AND CORRALS:

Horse Property in Grantsville UT

One Acre Ranchette In Grantsville Utah

Open Floor Plan

Vaulted Ceilings with Plant Shelves

Kitchen with Knotty Maple cabinets

Large Master Suite with Grand Master Tub

One full Acre with water

3 Car Garage

Large Laundry room on main level

Corrals

Landscaped with sprinkler system

Mature Trees

2,505 sq. ft

4 Bedroom

3 bath,

$280,000 - Can't Beat The Price

Northwest, Grantsville - Horse Property with beautiful mountain views. Tile and wood floors plus a fireplace in a large family room. Formal living room. Kitchen features knotty maple cabinets, built in microwave plus gas stove. Fenced yard with full sprinklers plus corrals.

To search for other Tooele County homes with acreage stop by our website @ Tooele Homes For Sale.

To schedule an appointment to see this as well as other Grantsville homes for sale call 435-840-5029.

Property information

Published Monday, July 13, 2009 10:04 AM by Chris & Berna Sloan Filed under: Grantsville, Tooele, Utah

Grantsville UT Foreclosure !

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Thu, 16 Jul 2009 17:21:05 -0500

Grantsville Bank Owned Property Only $194,900

Bank Owned

• 2,755 sq. ft., 3 Bedrooms, 3 bath,

2 story - MLS® $194,900 - Bank Owned

Knotty Alder Cabinets

Tile Throughout

Granite Counter Tops

Easy to show

Large Master suite

Over a third acre lot

Unfinished basement

South Willow, Grantsville - Corp-owned, sold as-is, no warranties. Large corner lot, knotty alder cabinets, tile throughout, nice fireplace. Tax records state address is 1043 Kimberly Way.

For more information about this listing just give us a call or send us a email

Property information

Published Monday, July 13, 2009 9:19 AM by Chris & Berna Sloan

Rent To Own & Lease Options Offer Home buying Help, Risk!

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Thu, 16 Jul 2009 17:16:48 -0500

A couple of weeks ago I posted this rent to own article on the Weekly Salt Lake Tribune offering for our Utah folks.

We had a ton of comments, as both Utah home buyers and home sellers saw a possible way out of a variety of Real Estate dilemas.

I encourage everyone to examine Rent to Own, and lease options as a strategy to weather the Real Estate storm.

I also encourage everyone to seek adaquate legal opinion as to whether it is a legal strategy in your case and how to best protect your interest.

I hope this gives you some good ideas.

Rent-to-own agreements expand real estate purchase options

President's Message

Chris Sloan

With larger down payments and higher credit scores required to obtain mortgage financing in today's post-subprime era, an increasingly popular rent-to-own agreement may be the solution for cash-strapped buyers looking to take advantage of today's competitively priced real estate.

Called a lease option, the arrangement is where a buyer agrees to rent a property and then purchase it at a later date. The agreement is a cross between a typical purchase contract and a lease, and is essentially like having a purchase contract with a delayed closing.

In these deals, a buyer will typically agree to pay an upfront fee for the "option" of purchasing the property at a later date for an agreed-upon price. In other words, the buyer is simply buying the option to purchase the property itself at a later date. This fee will eventually go toward the buyer's down payment if he or she decides to go through with the purchase; the money will be non-refundable if the buyer decides to back out of the deal.

The contract will also stipulate a monthly rent payment, often with a portion of the rent going toward the buyer's future down payment. During the rental term, often one to three years, the buyer will have time to save money for a down payment as well as work on improving his or her credit score. For example, if a buyer paid $5,000 for the option to buy a $200,000 home and $400 of the $1,400 rent payment went to the purchase, the buyer will have saved $9,800 after one year and $19,400 after three, according to a CNN Money article.

Along with the opportunity to save money and improve their credit scores, buyers also have the major advantage of getting to know the neighborhood and the area before actually purchasing the property. If a buyer discovered he hated the neighborhood after a few months, he could decide at the end of the lease term not to buy the property, losing only his upfront payment and the portion of the rent payment that would have gone toward the purchase.

Lease options are ideal for homeowners who have purchased another home and are having difficulty selling their first home. The lease option allows them to receive monthly cash that can help offset mortgage costs, and they know the tenants are more likely to take better care of the property because they have a stake in it.

Nevertheless, because a lease-option transaction can be more complicated than others, it's important for both buyers and sellers to work with an experienced Realtor and understand the risks of this type of agreement.

Buyers should take several steps to make sure they are happy with the property and are working with a credible seller. Before the contract is finalized and the upfront option money becomes non-refundable, buyers should conduct a thorough inspection of the property to find out about any potential problems, like a leaky foundation or a damaged roof. Buyers will also want to get a title report to make sure there aren't any problems that could prevent the homeowner from selling the property at the end of the lease period. Excessive liens on the property could be one red flag. Buyers should also look for any signs that the property is headed toward foreclosure.

Risk reduction steps for the homeowner include making sure the agreement requires the tenant to provide notification of his or her intention to purchase the property 30 to 60 days before the lease expires. This is because the seller always risks that the buyer will decide not to purchase the property. If the seller knows the tenant is not going to exercise his or her option to purchase, the seller can begin marketing the property before the lease expires.

Most importantly, both buyers and sellers should make sure they work with professionals and understand the terms and agreements of their contracts. A real estate attorney can help you avoid any legal pitfalls, and a Realtor will help you negotiate the purchase of the property. To learn more about Utah real estate and to find a Realtor, visit UtahRealtors.com.

Published Monday, July 06, 2009 3:06 PM by Chris & Berna Sloan

A Real 4th of July, Tooele County style! Cmon Out!

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Tue, 30 Jun 2009 12:30:24 -0500

It's that time again, the 4th of July !!! YOUR INVITED !!!

Independence Day in Tooele.

For those of you that have been reading this blog awhile, you will know the drill. For those of you that don't, here we go.

The day starts off at Saturday morning @7am with the annual Tooele Chamber of Commerce breakfast.

By 8am, Berna & I and a bunch of real dedicated neighbours will have served nearly a thousand meals of ham & eggs with all the fixin's. Folks will still get done in time to get a good spot to watch the Tooele City parade on Main St.

After that will be the traditional fun and games at City Park, or for you parade junkies, time to make the short trip to Grantsville for their parade.

An afternoon of car shows and real rodeo fun will get you to the fun part of the evening.

This year, it's the Nitty Gritty Dirt Band, performing on the Tooele High School football field, followed by an awesome fireworks show.. Tickets are still available at Tooele City Hall or at Macey's, and for 5 bucks you'll have a tough time beating the 4th in Tooele County.

I do want to plug another County as well as the Cache Valley Cruise-in car show is also this Thursday, Friday, and Saturday. I mention this one because it's the biggest car show in the State with close to 1000 cars and bikes of all kinds. They also have a great auto-mobilia swap meet.

It's not Tooele, but.....Have a great 4th!

Published Monday, June 29, 2009 6:59 PM by Chris & Berna Sloan

Prevent Home-Buying Headaches - Get Loan pre-qualification !

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Tue, 30 Jun 2009 12:22:33 -0500

Loan pre-qualification can prevent home-buying headaches

President's Message

Chris Sloan

Because most Utah home buyers purchase real estate using a mortgage, one of the most important steps in the home-buying process is securing affordable financing for your Utah home purchase. And with today's tighter lending standards, knowing that you'll be able to secure a mortgage with favorable terms and conditions is more important than ever.

The earlier you know where you stand in terms of your home financing, the better. It can be frustrating for buyers to find the home of their dreams only to learn they don't qualify for the mortgage they thought they would, especially if the buyers have spent money on a home inspection, survey or other due diligence.

One way to prevent these types of problems is to get pre-qualified or pre-approved for a mortgage before you shop for a home.

In basic terms, a pre-qualification is when a mortgage lender will tell a buyer before his or her official application how much he or she can afford to borrow. This amount is usually determined by the buyer's income, current debt, estimated down payment and credit history.

Even better is a pre-approval where a lender will commit to lend the money as long as the buyer still qualifies when he or she is ready to borrow. Securing a pre-approval is a little more difficult than getting a pre-qualification because more documentation is required. Nevertheless, a pre-approval provides more certainty that your financing will be in place when you need it. Once pre-approved, you may even be able to lock in your interest rate so you don't risk having your financing costs increase while you're shopping for a home.

One of the biggest benefits of pre-qualification or pre-approval is that you will know your price range as you shop for homes. Not only will this save you time since there will be fewer properties to consider, but it will make your purchase offer look more attractive to a seller because it is less likely that your financing will fall through. Sellers will know they are working with a serious buyer who has taken the time to get his or her financing in order.

Knowing a price range also helps you decide what home features are most important to you. For example, when you have a price you cannot exceed, it may be easier to decide that you don't really need granite countertops and would rather put the money toward having a garage. Just knowing how much you can afford helps you distinguish your wants from your needs.

When you talk to a lender early in the process, you will also be able to discover, and possibly solve, any issues that could prevent you from getting a loan. For example, if an incorrect item was listed on your credit report, you would have time to contact the entity that made the mistake. Other problems, such as an insufficient down payment, could also be resolved by being discovered early in the home-buying process.

As you work to get pre-qualified or pre-approved, you'll want to shop for a lender and a loan. One way to start is by getting the names of three Utah lenders with whom your Realtor has previously worked. Talk to each of the lenders and compare their costs using the Good Faith Estimate that each will provide to you. If you are considering using an out-of-state mortgage lender or an Internet broker, be particularly careful when comparing costs because their fees can be higher.

As you shop, ask the lender questions. The National Association of Realtors suggests asking the following questions when shopping for a loan: "What is my credit score? Can I have a copy of my credit report?", "What is the best interest rate today? Do I qualify?", "Is the loan's interest rate fixed or adjustable?", "What is the length of the loan?", "What are the total loan fees?", "What is the total monthly payment? Does this include property taxes and insurance?", "Is there an application fee? Is so, what is it, and how much is refundable if I don't qualify?", and "Are there any prepayment penalties? If so, what are they are how long do they last?"

Also remember that you don't have to spend the amount for which you are approved. Make sure that you are comfortable with the monthly payments and are confident they will fit in with your lifestyle, regardless of how much the lender says you can borrow.

For more home-buying tips and other information about the benefits of pre-qualification and pre-approval, contact your local Realtor.

Published Monday, June 29, 2009 6:21 PM by Chris & Berna Sloan

Tooele, Utah-A Real Place For The Whole Family To Love

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Wed, 24 Jun 2009 05:48:07 -0500

Deseret Peak Complex living up to it's potential In Tooele?

I remember not too many years ago, when many of us around here were questioning the logic of building a huge, multi-purpose recreation facility between Tooele and Grantsville UT.

How could we justify all of the recreational stuff in a county our size? Indoor arena, outdoor arena, huge outdoor swimming pool (in Utah where it can only be open for 3 months a year!), BMX/Motocross track, Fireman's Museum, softball complex. etc.

It has been a drain on the County budget since it was built, but I've come around.

I spent a VERY rainy Friday and Saturday out there watching my niece ( and a few hundred of her closest friends) play in a very wet softball tournament.

Most of the girls were here with a ton a family. The place was packed with people. There were also dozens of RV's and trailers parked in the campground.

Parking was definitely full, not just with softball players, but there was a rodeo going as well. Add the hardcore demolition derby folks saving their seats for Saturday's derby, and it was a buzz of activity, even with the lousy weather.

When you factor in the car and motorcycle racers just over the chain-link at Miller motorsports park, and you have quite a weekend of recreation at Deseret Peak.

It appears I was wrong (again!)

Tooele County has another jewel, for the families, and that's just one of the reasons for considering a move to Tooele.

If you would like more information about moving your family to Tooele, Grantsville UT, Stansbury Park or adjoining places, stop by our website @ Tooele Real Estate.

We'd love to talk to you about a great place to raise a family.

Published Monday, June 22, 2009 10:30 AM by Chris & Berna Sloan Filed under: Grantsville, Tooele, Stansbury Park, Utah

Buying A Condo In Utah Is Not Like Buying A House!

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Wed, 24 Jun 2009 05:42:15 -0500

President's Message

Chris Sloan

As condominium and townhomes choices have increased in recent years, many buyers have turned in their lawn mowers and garden tools in exchange for the ease and convenience of multi-family living.

While single-family homes are still the majority of homes purchased overall in Utah, a fair segment of buyers are turning to condos and townhomes as a maintenance-free way of living. In fact, the National Association of Realtors reported in its "2008 Profile of Home Buyers and Sellers" that 22 percent of all buyers surveyed did not purchase a detached single-family home.

Condos and townhomes can be smart purchases for many buyers, but because most developments include certain restrictions and some shared ownership, it's smart to thoroughly do your research before buying. Start by taking the following steps, and ask your Realtor for additional information and tips.

Consider Your Lifestyle

When considering buying a condo or townhome, start by looking at your lifestyle. If you hate yard work and desire amenities like a swimming pool or fitness center, one of these developments could be a perfect fit. However, if you prefer a more private location and personal outdoor space, you may be better suited with a single-family home.

Also take into account that condos and townhomes are part of homeowners' associations that require monthly fees for maintenance and include restrictions on what you can do with your property. While the restrictions are designed to protect both you and the other owners in the development, they may not fit your particular lifestyle.

Carefully read the associated covenants, conditions and restrictions (CC&Rs) before deciding to buy a particular unit so you know exactly what will be expected of you. Also see if there are any grandfather clauses in place that may restrict you from conducting activities that earlier buyers are allowed to do.

Understand the Types of Ownership

There are several types of property ownership that could apply to property within a condo or townhome development.

In general with a condo, the owner holds the title to his or her individual unit, but does not own the land underneath or the air above the unit. All the condo owners in a particular development hold title to shared areas that are used by multiple owners, such as hallways, walkways, clubhouses, swimming pools, etc.

The property ownership of a townhome may or may not be the same as that of a condo. For example, in some developments, the owners own the land beneath their units; in others, they do not. Because of the variations from development to development, make sure you understand beforehand what your purchase includes. As with condos, the owners typically share title to the common areas, and an owners' association collects fees for maintenance.

Research the Homeowners' Association

Find out as much as you can about the homeowners' association before you buy. Make sure you understand what your monthly payment covers and how often the association can raise fees.

A careful look at the association's finances and minutes could reveal red flags. If there are unresolved maintenance issues, find out if the association plans to take care of the problems. Also determine whether there are adequate funds available to pay for the repairs. If not, there could be an upcoming assessment that condo/townhome owners will be required to pay. Any litigation issues could also signal problems.

These are just a few of the issues you should review when considering the purchase of an attached home. Because buying a condo or townhouse can be complex, make sure you are working with an experienced Realtor who can guide you through the process and help you avoid potential pitfalls.

If you don't have an agent, but would like to see how to to look for one. Stop by our web site @ Utah Real Estate and take a look.

Or you can call, 435-840-5029. We'd be happy to help.

Published Monday, June 22, 2009 9:39 AM by Chris & Berna Sloan Filed under: Real Estate, Utah

Utah Homebuyers Can Save On Closing Costs !

Chris Sloan Tooele Real Estate (Group 1 Real Estate) — Wed, 24 Jun 2009 05:36:21 -0500

The following article was part of the series we publish in the Salt Lake Tribune each week.

Under the heading "Presidents Message" we try to provide Utah Realtors and their clients helpful information on a weekly basis about Real Estate in Utah.

We had some favorable comments about this article from Realtors and home buyers alike so we thought we would share it.

When it comes to purchasing a home, many buyers invest considerable effort in negotiating the best price possible and asking the seller for various extras as part of the deal. But when it comes to the fees they'll pay at settlement, buyers are less knowledgeable about getting the best deal.

Closing costs are the charges associated with getting a loan and transferring ownership. They may include fees for the loan application, mortgage origination, credit report, title search and insurance, appraisal, recording, etc. - costs that can ultimately add up to thousands of dollars.

While some of the costs, like the government's recording charge, cannot be negotiated, others can. The key is to be prepared and do your research before and throughout the process.

A recent article in USA Today, "Savvy home shoppers can save at settlement," reminded buyers that one of the best ways to save on closing costs is to prepare early during the house hunt. Buyers should start by becoming familiar with their credit score, which at a minimum should be 620 for an FHA loan and 720 for a conventional loan. Then buyers should learn about what to expect during the mortgage process by doing some Internet research and asking friends and family members about their experiences.

That know-how alone could provide savings since lenders appeared to make lower-price offers to borrowers who seemed more familiar with market terms, said a 2008 Urban Institute study quoted in the article. As you work to build your own knowledge, valuable online resources will include the U.S. Department of Housing and Urban Development's Web site, www.hud.gov, and the Federal Reserve's site, www.FederalReserve.gov. Both offer valuable information about what to expect in regard to settlement costs.

Once you're ready to visit the mortgage office, make sure to bring your paycheck stubs, recent bank statements, tax information, and numbers for savings accounts, stocks and cash-value insurance accounts, recommends one expert quoted in the USA Today article. Then request that the lender give you their best rate because you are comparing fees between multiple lenders.

As you compare the costs from various lenders, take a close look at the Good Faith Estimate, a document that lenders are required to provide three days after you apply for a loan. The 800 section of the form deals with the lender's fees and the costs of services the lender will contract. While many of the third-party services like the credit report are probably non-negotiable, ask your loan officer if he can reduce any of the administrative-type costs.

The 1100 section may also provide savings, since you can also shop for your own title company. Just make sure to let the lender know of your intent, and ask the title companies to include all relevant costs in their price quotes. In its publication, "A Consumer's Guide to Mortgage Costs," the Federal Reserve Board suggests another way to save on title insurance: Ask the seller's title company for a "re-issue" rate if the seller has only owned the home for a few years. There will be less work for the title company, which means potential savings for you.

Because the costs noted on the Good Faith Estimate can change between application and closing, ask the lender if you can get a guarantee on any of the costs quoted. One day before settlement, you can also request to see the HUD-1 statement which outlines all the final costs. Carefully scan this document and question any discrepancies between it and the Good Faith Estimate before you sign any closing papers.

Asking your lender about any questions you have along the way will also prove valuable, because the more you know about the settlement process, the more likely it is that you'll be able to save money at closing.

To learn more about the entire real estate purchase process, contact your local Realtor.

Published Monday, June 22, 2009 9:37 AM by Chris & Berna Sloan Filed under: Real Estate, Utah