Salt Lake City Homes

Thinking of Buying a Utah Foreclosure? Timing is Everything

Mark Alder (Equity Real Estate) — Tue, 03 Nov 2009 21:56:24 -0600

If you are thinking about capitalizing on recent foreclosure activity, then timing may be the key to your success. Foreclosure activity in Utah is up 96% from a year ago and we are currently ranked 6th in the nation in per capita foreclosure activity. So how does timing play into buying a foreclosure? For bank owned homes (REOs), it is all about speed. On the other hand, short sales are all about patience.

First, lets talk about REOs. When a bank gets ready to put a home on the market, they typically get two opinions on the value of the property from local real estate agents. They take those values, reconcile them, and come up with a list price. The bank wants to be as competitive as they can without giving the home away. Because it is not an exact science, sometimes their values are high and sometimes they are low. They key is being ready to buy when a home comes on the market priced to sell.

The best way to do this, is to have your real estate agent set you up with an automatic email to alert you anytime an REO comes on the market in your chosen neighborhood. This way, you will can track prices and be ready to write an offer when the right property comes on the market. Keep in mind that banks want to sell their properties quickly and without trouble. They are looking for buyers most likely to make it to the closing table. You can enhance your offer by putting as much cash down as possible, having a strong pre-approval letter ready, and being ready to close quickly. With this strategy, you will be among the savvy buyers picking up the best priced REOs.

With short sales, the strategy is a little different. Here, you have to have the patience to work on the bank's time. Remember the bank has not foreclosed on the property yet so they are not in a big hurry to take a loss. They are going to review your offer with the buyer's package when it is convenient for them. If you have the flexibility to close when it is convenient for the bank, it will make your offer more attractive. Approval from the bank can be as quick as a few weeks or can take over a year. 3-6 months is not uncommon. You should ask your agent some questions to get a sense of how long it is going to take. For example, has the buyer submitted their hardship letter and package yet or are they waiting for offers? Have any other offers been submitted to the bank? And, has the bank approved the list price yet?

These questions will help you narrow down properties that are priced right and likely to close fairly quickly. Buying a foreclosed property can be a challenge, but the savings can be huge. With the right timing, you will be much closer to winning when buying a foreclosed house.

Source: Realtytrac

Park City Bank Owned Home (REO)

Mark Alder (Equity Real Estate) — Mon, 07 Sep 2009 17:09:37 -0500

8787 Ranch Club Ct Park City, UT 84098
Park City Golf Course Luxury

Incredible location on the 18th hole of the Rad Dye golf course. One of the best locations in the development. Excellent condition. Excellent price.

Interior Features:
Central Air, Walk-In Closet, Den/Office, Pets Allowed, Appliances, Laundry Room, Family Room, Fireplace, Main Floor Bathroom, Dining Room, Hardwood Floors, Pantry, Basement, Forced Air, Main Floor Bedroom.

Exterior Features:
Balcony, Shed/Barn, Landscaping, Spa/Hot Tub, Deck/Patio, Grill/Barbeque, Fenced Yard, View, Horse Facilities.

Community Features:
Golf, Recreation Facilities, Exercise Area, Clubhouse/Rec. Room, Spa/Hot Tub, Parking Lot, Tennis, Swimming Pool

Custom Features:
Located On Golf Course : Yes

Price: $1211250

Type: Single Family Residential for Sale

Floors: Multiple

Parking/Garage: 2

Bedrooms: 4

Baths:4

Half Baths:1

Square Feet: 4175

Year Built: 2008

MLS #: 767594

www.soldonsaltlake.com

www.soldonsaltlake.com

For more information contact:

Mark Alder
REALTOR®
Direct: 801-979-MARK (6275)
mark@soldonsaltlake.com
www.soldonsaltlake.com

Last Call For First-Time Homebuyers...Or is it?

Mark Alder (Equity Real Estate) — Sat, 29 Aug 2009 21:18:44 -0500

The $8,000 federal tax credit for first-time home buyers has been a boost to the local market. Salt Lake has seen the number of home sales this summer on par with last summer. Without first-time home buyers jumping in, we could have seen fewer sales and prices falling further than they have. The majority of my activity has been by people taking advantage of this credit.

So if you still have not taken advantage of this credit, you have until December 1st to close on the property. That means you would will want to have your home picked out by mid October so you can close mid November just in case you need a few extra days to tied things up.

If you are the gambling type, you could take your time and hope H.R. 2801 passes in time. The bill extends the credit for all homebuyers through 2010. Currently the bill is in committee and it may not make it out in time for congress to vote on it in September when it goes back in session.

The bill would be a definite boost to the home market but opposition points out a few obstacles to it being passed. First, Congress is too involved with healthcare to worry about another bill. Second, the original tax credit was meant to protect buyers from future depreciation and some argue that we have already hit bottom. If that is the case, there is no need for depreciation protection. And finally, there may not be the funds for the bill.

With this type of opposition, it looks unlikely that this bill will pass. If you are thinking about buying a home in the next year, you may not want to wait any longer.

Sources

http://www.creditunionsonline.com/news/2009/Congress-Considering-8000-Fist-Time-Home-Buyer-Tax-Credit-Extension.html http://www.federalhousingtaxcredit.com/2009/index.html, WFRMLS

Why We Have Not Hit Bottom...And Why First-Time Homebuyers Should Not Wait

Mark Alder (Equity Real Estate) — Tue, 07 Jul 2009 11:46:36 -0500

The good news is sales activity is up. Unfortunately, the same is true for foreclosure activity. But prospective first time home buyers would be wise to act now and take advantage of an $8,500 tax credit and low interest rates now available to them. The number of REOs (Foreclosed bank owned homes) has continued to increase since June of 2007. In summer of 2007 we only had 39 REOs in Utah. The number has skyrocketed over the past two years, now approaching 800 REOs. What's worse, Utah is now #5 in the nation in per capita foreclosure activity.

When a property is foreclosed on in a neighborhood, it drags down the prices of all the homes in the area. And when home prices decrease, more foreclosures are likely as homeowners lose their equity cushion. So when will this foreclosure activity stop? It could be a year or two. Places like California have seen a slow down in foreclosures due to moratoriums but they expect another surge of foreclosures when the government hold on foreclosures is lifted. I expect Utah to trail California in foreclosures like it did in home prices leading up to the boom. Until we see foreclosure activity decreasing in California, we should not expect the same in Utah. With all this bad news, first-time home buyers may be reluctant to purchase. In actuality, this is a very opportunistic time to buy your first house. The majority of buyers are at the $200,000 and lower price range. This price range is the least susceptible to further price drops. Also, interest rates are very low right now and experts do not expect them to go much lower. Finally, the $8,500 tax credit expires Dec 1, 2009. With all these factors in mind, there is no reason for the first-time home buyer to wait.

source: WFRMLS, Realtytrac

Salt Lake County Home Inventory Levels March 2009

Mark Alder (Equity Real Estate) — Sun, 29 Mar 2009 23:50:07 -0500

Salt Lake County Home Inventory March 2009

Home inventory levels are figured out by taking the number of homes on the market in a given zip code and dividing it by the number of homes sold in that zip code for the last 30 days. The answer will give you the absorption rate. Or the number of months it would take to sell the existing inventory at the current rate if no other homes came on the market. A number higher than 8 indicates prices will likely fall. 6-8 prices should stay the same. And 6 and below points to a likelyhood of price appreciation.

Note: I do not include properties under contract in the calculation. And I round up for .5 and above.

Sellers Market 1-6 Months

Normal Market 6-8 Months

Buyer’s Market 8+ Months

City	Zip	July, 2007	November, 2007	July, 2008	November, 2008	March, 2009
Draper	84020	10	20.2	14	22	10
Midvale	84047	3	9	8	12	15
Riverton	84065	8	21	12	13	17
Sandy	84070	4	19	9	13	10
West Jordan	84088	8	9	9	14	10
Sandy	84092	7	14	13	15	12
Sandy	84093	15	8	18	11	19
Sandy	84094	3	7	7	13	10
South Jordan	84095	9	19	16	22	11
Salt Lake City	84101	11	16	36	25	34
Salt Lake City	84102	4	10	10	21	11
Salt Lake City/Aves	84103	7	12	16	22	17
Salt Lake City	84104	3	4	8	7	26
Salt Lake City	84105	6	9	8	8	10
Salt Lake City	84106	8	8	9	11	16
Murray	84107	4	7	9	13	10
Salt Lake City	84108	6	13	9	12	11
Salt Lake City	84109	6	21	19	13	12
Salt Lake City	84111	7	7	9	8	7
South Salt Lake	84115	4	5	12	10	15
Salt Lake City	84116	2	5	8	12	25
Holladay	84117	5	9	23	16	10
Taylorsville/Kearns	84118	3	8	8	12	12
West Valley City	84120	3	10	10	10	16
Cottonwood	84121	13	16	10	19	15
Taylorsville/Murray	84123	3	5	6	11	18
Holladay	84124	6	21	9	25	20

It looks like inventory levels continue to edge upward albeit at a slower pace than before. One bright spot is Draper which had a terrific March. 60 Homes closed in Draper for March and 10 of those are short sales. That is great news because it means that buyers are stepping up and taking advantage of the deals out there. It also shows that short sales are closing. 17% of those home sales in Drapervwere short sales. Short Sales help the homeowner avoid foreclosure and they keep the market from getting glutted with inventory. However, they do take their toll on home prices. Currently, 23% of the homes on the market in Draper are short sales.

The downtown Salt Lake condo market still appears to be in a glut with a 34 month supply of homes and condos in zip 84101. Only three units sold in 84101 and one of those was a short sale in American Towers. Bring your best haggling and bargain hunting skills if you are shopping in this zip code.

5 Government Programs You Need to Know About

Mark Alder (Equity Real Estate) — Sun, 29 Mar 2009 23:42:10 -0500

5 Government Programs You Need to Know About.

1)   Good Neighbor Next Door   This program is for law enforcement officers, teachers, firefighters and paramedics. You can get up to 50% off the bidding price for the home but it is going to take some homework and some luck. The home must be a HUD home and it must be in one of the revitalization areas. You can go to this website to view the HUD homes available for bid and then go to the HUD website to see if it is in one of the revitalization areas. Contact me for more information on this program.

2)    FHA  The classic that is as popular as ever. Basically, it is a government insured loan that offers a low down payment and an excellent interest rate. It will require a good job history, a decent FICO score, and manageable debt-to-income ratios. Right now, you can get a FHA loan for only 3% down in most cases. Most conventional loans are requiring 10% down so you can see why FHA is so attractive. At least 50% of the loans I am seeing these days are FHA loans.

3)   $8,000 Tax Credit Part of the new massive stimulus plan. Minimum qualifications for this program: 1) You must be a first time home buyer 2) Income needs to be less than $75,000 for the individual and $150,000 for married couples, and 3) You have to purchase between Jan 1st 09' and Nov 30th 09'. There are other qualification as well so check with your tax advisor. The tax form can be downloaded here.

The great thing about this tax credit is it's refundable. So if you were normally expecting a $1000 refund and were eligible for this tax credit, you would get a $9000 refund! This refund, low home prices, and low interest rates make 2009 a great opportunity for first time homebuyers.

4)   $6,000 Down Payment Assistance for New Homes This is a Utah only program. Minimum qualifications for this program: 1) You do not need to be a first time homebuyer 2) Income needs to be less than $75,000 for the individual and $150,000 for married couples, and 3) Only applies to 30 yr fixed loans. There is $10 million available for this program and it is on a first-come-first-serve basis. Roughly 1600 homebuyers will benefit from this program.

5)   Obama's Loan Modification Program. If you are having difficulty making mortgage payments and can prove that you are experiencing hardship, then you may qualify for this program. This program offers incentives to lenders to modify the loans so borrowers only need to pay 31% of their monthly income. The details of this plan are still being hashed out. There have been reports of scammers in the loan modification business so make sure you talk with a HUD approved loan modification counselor.   This is the first step to determining if you qualify for this program.

Utah Foreclosures Up 104%

Mark Alder (Equity Real Estate) — Sun, 21 Dec 2008 16:50:41 -0600

According to RealtyTrac, foreclosure activity in Utah is up 10% from last month and up 104% for the year. The biggest jump from October was seen in the number of properties going to the auction [Notice of Trustee Sale(NTS)]. In October there were 277 NTS and in November there were 624 NTS. These numbers were likely a result of July’s spike in Notice of Defaults (NOD). In July, we had 892 NOD filings when we had traditionally been in the 100-200 range.

I imagine the following scenario may be at playing out in these numbers: Mr. Seller needs to sell. He puts the home on the market in the spring of 08’. But the Salt Lake market has slowed considerably by this time and he can no longer sell at the price he needs to in order to break even. So Now, Mr. Seller cannot sell the home and can no longer make payments. He stops making payments in March/April of 08’. Notice of Default is filed in July of 08' along with 891 other NODs. In November, he gets a Notice of Trustee sale with the time and date the lender is going to hold the auction at the court house steps. Next January or February, the home will be sold at the auction. And in Feb or March of 09’ it will come on the Salt Lake Real Estate market as a REO (Bank Owned Home).

If you want to have these REOs emailed to you the day they come on the market then fill out this form and I will set you up with the automatic email for free. Be sure to fill out the price range and neighborhoods you are interested in.

Salt Lake County Home Inventory Levels

Mark Alder (Equity Real Estate) — Sat, 29 Nov 2008 16:04:18 -0600

Salt Lake County Home Inventory November 2008

Note: I do not include properties under contract in the calculation. And I round up for .5 and above.

Sellers Market 1-6 Months

Normal Market 6-8 Months

Buyer’s Market 8+ Months

City	Zip	July, 2007	November, 2007	July, 2008	November, 2008
Draper	84020	10	20.2	14	22
Midvale	84047	3	9	8	12
Riverton	84065	8	21	12	13
Sandy	84070	4	19	9	13
West Jordan	84088	8	9	9	14
Sandy	84092	7	14	13	15
Sandy	84093	15	8	18	11
Sandy	84094	3	7	7	13
South Jordan	84095	9	19	16	22
Salt Lake City	84101	11	16	36	25*
Salt Lake City	84102	4	10	10	21
Salt Lake City/Aves	84103	7	12	16	22
Salt Lake City	84104	3	4	8	7
Salt Lake City	84105	6	9	8	8
Salt Lake City	84106	8	8	9	11
Murray	84107	4	7	9	13
Salt Lake City	84108	6	13	9	12
Salt Lake City	84109	6	21	19	13
Salt Lake City	84111	7	7	9	8
South Salt Lake	84115	4	5	12	10
Salt Lake City	84116	2	5	8	12
Holladay	84117	5	9	23	16
Taylorsville/Kearns	84118	3	8	8	12
West Valley City	84120	3	10	10	10
Cottonwood	84121	13	16	10	19
Taylorsville/Murray	84123	3	5	6	11
Holladay	84124	6	21	9	25
Average		6	12	12	14

From November 2007 to November 2008 home inventory levels remained relatively flat in Salt Lake County. November 2008 saw a average of a 14 month supply of homes while November 2007 saw a 12 month supply. This is actually good news for the market. It means that inventory levels are high but are not getting out of hand. It also means that homes are continuing to sell in Salt Lake County despite the nation’s worst housing market in decades.

*One zip code of concern is 84101. There has not been one home sale in this zip code in the last 30 days and only 1 in the last 60 days. This zip has 112 properties on the market. Most of them are downtown Salt Lake City condos in the $250,000 + price range. It is clear that buyers for these types are units are not making any moves right now. Hopefully the church is taking this into account when planning price ranges for its condos at the City Creek Development.

Utah Notice of Defaults October 2008

Mark Alder (Equity Real Estate) — Sun, 16 Nov 2008 12:21:53 -0600

Utah Notice of Defaults October 2008

Unfortunately, Realty Trac reports that the Notice of Defaults for Utah returned to their July high with 889 filings, 3 filings shy of July's 892 filings. Given the lending environment, trends in other states, and this increase in NODs, it is looking like the Salt Lake market could be at least 9-12 months from prices bottoming out. As a seller, pricing right in order to avoid chasing the market is key. As a buyer, take your time and get signed up for automatic emails so you can track the market. By filling out this form , you can get customized automatic emails of the type of home you want. Some of the most popular searches are REOs and Short Sales . This means the system will autmatically send you all the REOs and Short Sales in your price and and in the neighborhood you would like. This easy way to track the market will have you on top of the best deals when the come on the market.

Notice of Defaults Are Up in Utah

Mark Alder (Equity Real Estate) — Tue, 11 Nov 2008 21:52:59 -0600

Utah Notice of Defaults September 2008

Notice of defaults continued their upward trend after a August lull with 574 default filings for the month of September. Although this is a relatively high number, it is still less than July's dramatic jump to 892 filings. We can expect a portion of these loans to end up as foreclosures on the Salt Lake Market. Given the foreclosure time line, it is likely we will see a surge in foreclosures in Spring 2009

Salt Lake County 3rd Quarter 2008 Numbers

Mark Alder (Equity Real Estate) — Sat, 25 Oct 2008 19:07:52 -0500

2008 3rd Quarter Numbers

The WFRMLS just released the 3rd Quarter 2008 market numbers. For a year over year comparison:

Single Family

1) Total units sold 2459. ↓ 12%

2) Average sales price $286,461. ↓ 7.49%

Condos

1) Total units sold 633 ↓27%

2) Average sales price $191,076 ↑ 1%

County Totals

1) Average time on market 68 days. ↑ 88%

2) Average asking price $336,110 ↓6%

The 4 Ways to Buy a Foreclosure

Mark Alder (Equity Real Estate) — Thu, 09 Oct 2008 15:56:38 -0500

The current market offers a smorgasbord of deals for the buyer with money to put down, good credit, and patience. For first time homebuyers or those struggling with down payment and credit issues, your best bet is still going to be going FHA with a normal seller situation. But for those with something to bring to the table, there is plenty to choose from. Below is a sampling of the types of deals available and the benefits and risks of each.

REO
REO stands for Real Estate Owned property and it is property that is owned by the bank. REOs are properties that have already been through the foreclosure process, to the auction, and are now offered back on the market. Banks will hire REO specific real estate agents to help them sell these properties.

Pros
Often can get a good price below market value. Banks want to close quick on these properties to get them off their books.

Cons
The homes can be trashed and banks want you to sign an "as is" addendum so you get no warranties.

Short Sale
Short Sales are properties where the seller owes more than the property is worth. Instead of bringing money to the closing table in order to get out from under the property, the seller may be able to sell the home "short" or for less than it is worth. This is where the buyer comes in and picks the home up at a discount often at 70%-80% of market value. The key here is getting the bank to agree.

Pros
Below market value.

Cons
These things can take forever. The bank is not excited about taking a loss and is in no hurry to accept offers and close. That is why it is imperative that the agents on both sides of the transaction prepare the paperwork as meticoulously as possible to encourage the mitigation companies at the banks to accept the offers and close.

The Auction
You buy at the auction when a trustee fulfills his legal duty as part of the foreclosure process and offers the property for sale at a public auction to the highest bidder. This can be a quick way to get a great deal. But I would not do it alone the first time. I recommend Vestus.com for help with this.

Pros
Quick way to get a good deal on the property. Also a clean way to get title since all junior lien holders lose all interest to the property when it is sold at the auction

Cons
There is high risk here because you don't get time to do your due diligence. Make sure you know what you are buying before you go to the auction and start making bids

Pre-Foreclosure
In a pre-foreclosure deal, you negotiate directly with the seller to purchase the property from them before the property is foreclosed on them at the auction. The seller will need enough equity in the home to make this kind of deal work.

Pros
The seller gets out from a home they can not afford. Able to inspect property prior to purchase. Flexibility on terms.

Cons
Can take a lot of legwork on the investors/buyers side to find the right buyer. People who are having problems making payments are constantly contacted by buyers looking for a pre-foreclosure deal.

If you need help getting started, contact me and point you in the right direction. Or if you are ready to go and want lists of short sale and/or REO properties fill out this form and indicate they type of property you are looking for. Thanks for reading!

5 Tips For Buying a Utah Foreclosure

Mark Alder (Equity Real Estate) — Sat, 04 Oct 2008 15:00:02 -0500

5 Tips For Buying a Foreclosed Home

After turning on the T.V. this week I felt like grabbing all my money and heading for the hills. But when the dusts settles a little bit and the panic recedes, there is going to be a ton of opportunity. And a perfect example is REOs or Bank Owned Homes. As you can see in an article recent article on defaults in Utah, bank owned homes are expected to rise soon here in Utah. So here are 5 tips to help you make the best of the market.

1) Know Your Seller
Banks tend to become habitual in the way they sell homes. With a savvy agent you can research the seller and see some trends. Does this seller always do 30 day price reductions? If the answer is yes, then maybe you want to wait a few more days until the next price reduction before you put in an offer.

2) Sell Your Home
Banks are not going to want to wait around while you sell your home. They are losing money every day they have the home on their books because of costs associated with "carrying" the home or carry costs. These costs can be quite high and they include things like maintaining the property, paying attorneys, and paying interest on money owed. The main reason they will let the property go at a discount is so they can avoid these fees. This purpose is defeated if they have to wait around for you to sell your home.

3) Get To Know a Contractor
It is highly likely that your home is going to need some work. The bank likely did some minimal repairs to put the home on the market but it may take more to make it livable. Remember that this home was foreclosed on and the last people to live there were probably not too happy on their way out. Anticipate doing at least some minor repairs like new carpet and paint

3) Don't Forget to Negotiate
Just because they are a bank owned home does not mean that the banks will not negotiate. They are a seller just like any other. And sometimes they are more motivated than most sellers. In fact, many markets in the U.S. are currently "REO Driven" where REOS are the ones selling and are the price setters. So don't hesitate to throw in a low ball offer. Just don't make it so low that you end up wasting everyone's time.

4) Make it a Clean Offer
The cleaner the offer the better. You can still do an inspection and have the property contingent on financing, but be careful to add too many contingencies. Also, offer at least 1% of the purchase price for earnest money and be flexible on settlement dates.

5) Get Set Up With a Just Listed Auto Email
Since many of these properties are going to sell quick, you want to be the first to know about them. Click here and indicate that you are looking for foreclosures and the area you are interested in. then you will get homes emailed to you the day they come on the market.

September 2008 Inventory Levels

Mark Alder (Equity Real Estate) — Sat, 04 Oct 2008 14:43:33 -0500

September 2008 Inventory Levels

Note: I do not include properties under contract in the calculation. And I round up for .5 and above.

Sellers Market 1-6 Months

Normal Market 6-8 Months

Buyer’s Market 8+ Months

City	Zip	July, 2007	May 28, 2008	July, 2008	August 2008	September 2008
Draper	84020	10	14	14	13	14
Midvale	84047	3	7	8	9	10
Riverton	84065	8	14	12	14	13
Sandy	84070	4	10	9	11	6
West Jordan	84088	8	9	9	10	8
Sandy	84092	7	15	13	17	21
Sandy	84093	15	11	18	25	11
Sandy	84094	3	10	7	9	5
South Jordan	84095	9	13	16	14	11
Salt Lake City	84101	11	46	36	9	24
Salt Lake City	84102	4	6	10	6	14
Salt Lake City/Aves	84103	7	15	16	9	12
Salt Lake City	84104	3	6	8	6	5
Salt Lake City	84105	6	5	8	6	7
Salt Lake City	84106	8	7	9	10	6
Murray	84107	4	7	9	7	9
Salt Lake City	84108	6	12	9	8	11
Salt Lake City	84109	6	18	19	9	12
Salt Lake City	84111	7	8	9	12	14
South Salt Lake	84115	4	14	12	9	9
Salt Lake City	84116	2	8	8	8	8
Holladay	84117	5	10	23	11	13
Taylorsville/Kearns	84118	3	6	8	8	8
West Valley City	84120	3	6	10	12	8
Cottonwood	84121	13	11	10	13	13
Taylorsville/Murray	84123	3	4	6	8	7
Holladay	84124	6	7	9	13	9

Salt Lake Can Expect to See a Surge in Foreclosed Homes

Mark Alder (Equity Real Estate) — Tue, 16 Sep 2008 19:01:49 -0500

Notice of defaults (when a homeowner does not make mortgage payments for 90 days) were way up in Utah for the months of July and August. This is likely a sign of a surge of foreclosed homes to soon hit the Salt Lake market. As these properties work there way through the system, many will eventually get foreclosed on. When that happens, the bank will be forced to sell them on the open market as a bank owned home or an REO (Real Estate Owned).

Because of the foreclosure time line, you can expect to see many of these homes in default to hit the market sometime after the new year. And while this is not great news for many neighborhoods, many home buyers can take advantage of these REOs which are often sold at a discount so the bank can get them off their books. If you would like these homes emailed to you the day they come on the market, sign up here and indicate the neighborhood you are interested in. Be sure to indicate you are looking for foreclosed homes.

Month	Notice of Defaults	Notice of Trustees Sale	REOs	Total
February 2008	200	955	133	1288
March 2008	161	946	123	1230
April 2008	244	926	178	1348
May 2008	95	938	328	1361
June 2008	243	1030	228	1501
July 2008	892	687	332	1911
August 2008	486	779	326	1611

Utah Notice Of Defaults

Radon Levels by Zip Code in Salt Lake County

Mark Alder (Equity Real Estate) — Mon, 01 Sep 2008 22:37:46 -0500

Radon In Utah

The Utah Safety Council provides some very helpful information on their website for anyone who is thinking of buying a home and is concerned about radon. Radon is a gas released from uranium that is most often found in the soil and seeps into the home. The radon gas can get trapped in the basement of the home and can be dangerous for those who live there. If you are thinking of buying a home, you may want to do a Radon test when you do your regular inspection.

The following chart is taken from the Utah Safety Council’s website and it provides information about each zip in Salt Lake and the result of short term tests. A short term test is one that takes less than 90 days to complete. Anything over 4pCi/L is considered unhealthy. For more information please visit the Utah Safety Council’s website and the EPA’s website .

Salt Lake County

Zip	< 4 pCi/L	4-10 pCi/L	10-20 pCi/L	> 20 pCi/L	Maximum	Average	Total Tests
84006	2	4	1	2	28.9	10.5	9
84020	117	27	2	1	20.7	2.8	147
84044	27	12	0	0	8.7	2.8	39
84047	60	20	2	0	12.9	3.4	82
84065	45	41	12	3	34.4	6.1	101
84070	111	20	3	0	10.6	2.5	134
84084	96	39	2	3	40.0	3.5	140
84088	66	50	9	1	24.7	4.6	126
84090	3	0	0	0	2.3	2.0	3
84091	2	0	0	0	0.5	0.5	2
84092	288	150	45	32	152.0	6.0	515
84093	198	173	104	40	78.2	8.3	515
84094	103	36	8	2	24.8	3.9	149
84095	91	31	8	2	30.3	4.2	132
84096	20	6	5	1	27.0	5.2	32
84101	7	1	0	0	5.0	1.1	8
84102	58	30	3	0	10.8	3.0	91
84103	136	13	3	0	14.1	2.2	152
84104	27	14	4	0	18.3	4.1	45
84105	140	61	10	0	15.0	3.5	211
84106	187	75	15	1	24.7	3.7	278
84107	89	15	3	1	28.1	2.8	108
84108	161	15	1	0	10.1	1.9	177
84109	216	82	10	1	20.5	3.4	309
84110	7	1	0	0	5.2	2.5	8
84111	21	6	1	0	11.7	2.6	28
84114	0	2	0	0	8.6	7.9	2
84115	33	7	0	0	8.7	2.2	40
84116	60	6	2	1	22.6	2.4	69
84117	135	34	7	0	18.1	3.1	176
84118	115	11	3	1	28.4	2.3	130
84119	34	20	2	0	13.9	3.7	56
84120	49	29	4	0	10.8	3.9	82
84121	300	97	17	10	50.0	3.8	424
84122	1	0	0	0	3.0	3.0	1
84123	98	16	6	0	10.5	2.4	120
84124	173	76	20	0	19.1	3.8	269
84126	0	1	0	0	4.3	4.3	1
84128	23	5	0	3	22.7	4.2	31
84138	1	0	0	0	1.4	1.4	1
84147	1	0	0	0	0.9	0.9	1
84151	0	1	0	0	4.1	4.1	1
84152	2	0	0	0	1.9	1.1	2
84157	1	0	0	0	1.2	1.2	1
84158	6	0	0	0	1.4	1.3	6
84165	1	0	0	0	3.7	3.7	1
84170	1	0	0	0	0.5	0.5	1
84171	1	0	0	0	1.9	1.9	1
Salt Lake	3313	1227	312	105	152.0	4.2	4957

August 2008 Salt Lake County Home Inventory Levels

Mark Alder (Equity Real Estate) — Sat, 30 Aug 2008 19:48:22 -0500

August 2007 Inventory Levels

Note: I do not include properties under contract in the calculation. And I round up for .5 and above.

Sellers Market 1-6 Months

Normal Market 6-8 Months

Buyer’s Market 8+ Months

City	Zip	July, 2007	May 28, 2008	July, 2008	August 2008
Draper	84020	10	14	14	13
Midvale	84047	3	7	8	9
Riverton	84065	8	14	12	14
Sandy	84070	4	10	9	11
West Jordan	84088	8	9	9	10
Sandy	84092	7	15	13	17
Sandy	84093	15	11	18	25
Sandy	84094	3	10	7	9
South Jordan	84095	9	13	16	14
Salt Lake City	84101	11	46	36	9
Salt Lake City	84102	4	6	10	6
Salt Lake City/Aves	84103	7	15	16	9
Salt Lake City	84104	3	6	8	6
Salt Lake City	84105	6	5	8	6
Salt Lake City	84106	8	7	9	10
Murray	84107	4	7	9	7
Salt Lake City	84108	6	12	9	8
Salt Lake City	84109	6	18	19	9
Salt Lake City	84111	7	8	9	12
South Salt Lake	84115	4	14	12	9
Salt Lake City	84116	2	8	8	8
Holladay	84117	5	10	23	11
Taylorsville/Kearns	84118	3	6	8	8
West Valley City	84120	3	6	10	12
Cottonwood	84121	13	11	10	13
Taylorsville/Murray	84123	3	4	6	8
Holladay	84124	6	7	9	13

Latest Inventory Levels for Salt Lake City

Mark Alder (Equity Real Estate) — Sun, 27 Jul 2008 22:03:26 -0500

July 07' - July 08' Inventory Levels

Note: I do not include properties under contract in the calculation. And I round up for .5 and above.

Sellers Market 1-6 Months

Normal Market 6-8 Months

Buyer’s Market 8+ Months

City	Zip	July, 2007	July, 2008
Draper	84020	10	14
Midvale	84047	3	8
Riverton	84065	8	12
Sandy	84070	4	9
West Jordan	84088	8	9
Sandy	84092	7	13
Sandy	84093	15	18
Sandy	84094	3	7
South Jordan	84095	9	16
Salt Lake City	84101	11	36
Salt Lake City	84102	4	10
Salt Lake City/Aves	84103	7	16
Salt Lake City	84104	3	8
Salt Lake City	84105	6	8
Salt Lake City	84106	8	9
Murray	84107	4	9
Salt Lake City	84108	6	9
Salt Lake City	84109	6	19
Salt Lake City	84111	7	9
South Salt Lake	84115	4	12
Salt Lake City	84116	2	8
Holladay	84117	5	23
Taylorsville/Kearns	84118	3	8
West Valley City	84120	3	10
Cottonwood	84121	13	10
Taylorsville/Murray	84123	3	6
Holladay	84124	6	9

Because of the way the numbers above are calculated, it is a great indicator of what the market has been like in the last 30 days as well as how many homes are on the market.

After one year of tracking these numbers, we finally have a year over year comparison. It looks like inventory levels are up in every zip compared to one year ago. Although the numbers are not very encouraging, it could be much worse. Except for a few zip codes, most of the inventory levels are at manageable levels.

2008 2nd Quarter Numbers Are In

Mark Alder (Equity Real Estate) — Sun, 20 Jul 2008 15:23:48 -0500

2008 2^nd Quarter Numbers

The WFRMLS just released the 2^nd Quarter 2008 market numbers. For a year over year comparison:

Single Family

1) Total units sold 2578. ↓ 28%

2) Average sales price $293,997. ↓ 2%

Condos

1) Total units sold 584 ↓ 33%

2) Average sales price $189,669 ↓ 1%

County Totals

1) Average time on market 61 days. ↑ 85%

2) Average asking price $351,504 ↓ 3%

That is a lot of red. As you can see from above, the average sales price in Salt Lake County looks like it is remaining flat with slight depreciation. The second quarter for the Salt Lake did not provide any surprises. At this point we all expected sales to be down and time on market to be up.

In fact, the second quarter actually saw an improvement over the 1^st quarter when it come to total units sold. Even though the number of single family homes sold is down 28% from a year ago, the number was still encouraging with 2578 total home sales. And an improvement from first quarter where the total number of homes sold year over year was down 42%. Perhaps sign we may be finding a soft landing to this downward trend.

I had the chance to meet with a top producer from the Riverside area of California last week and he presented stats from the MLS in that area. Sales prices have decreased significantly there in the last 12 months. However, the last 3 months he has seen a leveling of sales price declines and a dramatic increase in the number of homes sold. He mentioned that it is becoming just as expensive to rent as to buy there now and he is hopeful that the market has bottomed out there. If that is the case, and assuming we follow the California market, we can be hopeful of a bottom soon.

Should I Buy a Home "As Is"?

Mark Alder (Equity Real Estate) — Sat, 12 Jul 2008 20:19:58 -0500

Should I Buy a Home "As Is"?

Should I Buy a Property Without a Warranty?

Many home owners and banks sell their home without a home warranty. To be clear, there are two types of warranties involved when selling and buying a home: 1) the warranty by the seller written in the contract you use to purchase the home, and 2) the home warranty provided by a third party warranty company. What we are talking about here is the home warranty provided by the seller in the purchase contract. It is sometimes called selling without section 10.2 of the REPC or selling the home “as is”.

Why Do They Sell the Home Without a Warranty?

Your first thought may be “they must be trying to hide something if they are selling the home without a warranty”. But that is not usually the case. In fact, they are required by law to disclose any known defects in the Seller Disclosures. More likely, they do not want to have to renegotiate the terms of the contract after the buyer does the inspection. (see my article on “How to Handle the Home Inspection” for more on this) Lets take a look at how section 10.2 reads in the REPC.

10.2 Condition of Property. Seller warrants that the Property will be in the following condition ON THE DATE SELLER DELIVERS PHYSICAL POSSESSION TO BUYER:
(a) the Property shall be broom-clean and free of debris and personal belongings. Any Seller or tenant moving-related damage to the Property shall be repaired at Seller's expense;
(b) the heating, cooling, electrical, plumbing and sprinkler systems and fixtures, and the appliances and fireplaces will be in working order and fit for their intended purposes;
(c) the roof and foundation shall be free of leaks known to Seller;
(d) any private well or septic tank serving the Property shall have applicable permits, and shall be in working order and fit for its intended purpose; and
(e) the Property and improvements, including the landscaping, will be in the same general condition as they were on the date of Acceptance. .

Why Would I Buy A Home Without this Protection?

You can feel comforted when by the home without section 10.2 of the REPC and the seller’s warranty because of three items you will have in place in most instances.

1) Seller Disclosures protect you because they require the seller to disclose any defects they know about the property. I other words, the seller can not sell the property while trying to cover up the hole in the roof.

2) Home Inspection protects you because you have a professional that comes in and check about 200 points in the home. Most of the time they can pick up which part of the plumbing , HVAC, and cooling that is not in working order.

3) 3^rd Party Home Warranty protects you because it warrants the major systems in the home for one year from purchase. They are in the $300-$500 range for 1 year of protection. They warrant the electrical, plumbing and heating systems. Appliance add-ons cost extra and be sure to read the fine print because in many cases they will not cover pre-existing problems.

I hope this clears up any confusion there might be about section 10.2 and the home warranty. If you are looking for a home, you can go here and get signed up for a custom automatic email of homes as the come on the market. And if you are looking to sell, you can click here for a free comparative market analysis of your home.

June Inventory Levels

Mark Alder (Equity Real Estate) — Sat, 28 Jun 2008 15:25:23 -0500

June Inventory Levels

Note: These numbers are not seasonally adjusted and I do not include properties under contract in the calculation.

Sellers Market 1-6 Months

Normal Market 6-8 Months

Buyer’s Market 8+ Months

City	Zip	July, 2007	Jan, 2008	April 23, 2008	May 28, 2008	June 28, 2008
Draper	84020	9.5	20.2	20.4	13.6	14.2
Midvale	84047	3.2	9.2	9.3	6.6	7.5
Riverton	84065	8	24.3	8.8	14.3	12.8
Sandy	84070	4.6	13.6	16.8	9.8	9.7
West Jordan	84088	7.9	12.2	7.9	9	9.3
Sandy	84092	7.4	17.3	11.4	14.9	11.6
Sandy	84093	15.4	7.5	17.3	11	8.2
Sandy	84094	3.1	15.8	6.3	9.5	9.2
South Jordan	84095	8.6	21.6	10.7	12.9	16.7
Salt Lake City	84101	11	10.4	10.8	46.5	19.1
Salt Lake City	84102	4	13.3	13.4	6.2	12.4
Salt Lake City/Aves	84103	6.8	25.7	14.8	14.6	9.4
Salt Lake City	84104	2.7	7	3.4	6.1	8.9
Salt Lake City	84105	5.5	19.7	6.2	4.7	3.7
Salt Lake City	84106	7.5	12	5.7	7	7.2
Murray	84107	3.9	12.2	7.5	7.4	8.0
Salt Lake City	84108	6	14.2	7.9	11.5	9.6
Salt Lake City	84109	5.9	14.3	17.5	18.3	7.8
Salt Lake City	84111	6.5	17.3	14	8.3	7.1
South Salt Lake	84115	3.5	10.9	6.3	13.7	6.1
Salt Lake City	84116	2.3	11.3	6.4	8	7.1
Holladay	84117	4.6	22.7	11.8	10.3	17.13
Taylorsville/Kearns	84118	3.3	10.2	6.8	6.2	6.5
West Valley City	84120	3.4	14.6	6.6	5.5	6.6
Cottonwood	84121	12.6	22.1	10.6	10.8	9.4
Taylorsville/Murray	84123	3.1	19.5	3.66	3.5	4.5
Holladay	84124	5.9	13.8	14.5	7.4	18

Because of the way the numbers above are calculated, it is a great indicator of what the market has been like in the last 30 days as well as how many homes are on the market.

It looks like inventory levels are staying level during the usually busy spring and summer buying season. Zips with high average home prices and areas are seeing high inventory like Holladay for example. Also, homes with lots of new inventory levels have high overall absorption rates if you look at Draper and Riverton. But overall this weeks numbers look good with no big surprises and nice even inventory levels from month to month.

My Fav 5

Mark Alder (Equity Real Estate) — Thu, 19 Jun 2008 22:34:07 -0500

The local MLS (WFRMLS) gives you search capabilities you just can not get from public sites like realtor.com, utahrealestate.com, or redfin.com. It is nice to have a Realtor handy to do a search for you and then set that search to run automatically every day or week. Here are a few of my favorite searches that I like to run when looking for homes. If you want me to set up a variation of any of the following for you, let me know.

The just listed search. I will go back a few days on the search to see what has come on the market recently. This is a great way to keep on top of the market and on the lookout for fresh deals.

The listed for 90 days search. The opposite of the just listed search but with the same intent. You are looking for deals. And in this case you are hoping to find sellers that have been listed for a while and are now getting desperate.

The REO/Short Sale/Seller Financing search. You are looking for sellers with unique circumstances. Short sales, REOs, and Seller Financing deals, each have their risk and rewards. Being able to search for them on the WFRMLS can save you a lot of time narrowing down to the specific seller that fits your situation.

The sold search. This is the one I do when I figure out my absorption rates for neighborhoods in Salt Lake. I just look a the number of homes that have sold in a zip code in the last 30 days and divide that number by the number on the market. Then I have a great snapshot of current market conditions

The mother-in-law search. A handy search since there is no way to do this easily on public sites. I search for all homes with 2 or more kitchens and most of the time it brings up the mother in laws in the area. Unless the agent forgot to mark two kitchens of course.

Moving on Up

Mark Alder (Equity Real Estate) — Sat, 14 Jun 2008 20:27:46 -0500

Why This Market is the Perfect Move Up Market

If you are ready to be a Move Up like the Jeffersons then now is the perfect time. You can sell your home where the demand is high and then buy where the demand is lower. The result is you get into a great home at a discount while maximizing the return on your investment.

To get an idea of how demand is playing out in Salt Lake County, let’s look at some numbers from the WFRMLS. In the last 30 days, 497 homes sold in the $140,000-$280,000 price range. That is 59% percent of all homes that sold. But the total number of homes listed available on the MLS in that price range? Only 2534, or about 37% of the total homes on the market. In other words, you have 59% of all buyers chasing 37% of all homes.

For first time home buyers this can be a frustrating situation. You hear all day in the media how the market is taking a hit and then you put in an offer on a home only to find out you are in a multiple offer situation.

But for the Move Up buyer, you can sell your home in this price range and then go find a motivated seller and make a deal in the $300,000 price range. In order to pull this off I recommend a few tips: 1) Make sure your home is in top shape before you put it on the market. (buyers are only interested in the top ten percent of the market when it comes to condition and price) 2) Act quickly while you can take advantage of the low interest rates and the higher than usual FHA loan limits 3) Be open to all types of ways to sell your home like FHA down payment assistance, seller financing, and lease options.

No Money Down Programs Still Available in Salt Lake City

Mark Alder (Equity Real Estate) — Fri, 30 May 2008 18:09:40 -0500

100% Financing With No Money Down is Still Available

I know, I know, you thought the No Money Down pitch was gone. Finally, you no longer had to listen to those annoying mortgage broker hawking their programs on the radio. It is likely that the hawkers are still around and fortunately the government does have a special FHA no money down program.

How it works is like this. You do a FHA loan. FHA loans require 3% down so you ask the seller to contribute 3% of the sales price at closing to a non-profit third party down payment assistance program. The third party down payment assistance programs such as Nehemiah and Ameridream then advance the money to the seller at closing.

But wait, you also are going to need an additional 3% for closing costs such as loan and title fees. Who is going to pay for that? Again, you will ask the seller to pay for it. For the closing costs you do not need to use a third party.

Here is an Example

You decide the property is worth $100,000

You offer the seller $106,000

The seller pays $3000 four the down payment assistance program and $3000 for your closing costs.

Some Points to Keep in Mind

*Make sure you are working with an agent and lender that is familiar with these programs and knows how to do all the appropriate paperwork.

*Be sure to ask the seller to pay the $499 fee for the third party program if you really do not want to bring any money to the closing table.

*Don’t even think about getting cash back because it is illegal.

*Jump on this program while it is still available, interest rates are low, and sellers are willing to negotiate.

May Inventory Levels fo the Salt Lake Real Estate Market

Mark Alder (Equity Real Estate) — Thu, 29 May 2008 10:36:16 -0500

May Inventory Levels

Note: These numbers are not seasonally adjusted and I do not include properties under contract in the calculation.

Sellers Market 1-6 Months

Normal Market 6-8 Months

Buyer’s Market 8+ Months

City	Zip	July, 2007	Jan, 2008	April 23, 2008	May 28, 2008
Draper	84020	9.5	20.2	20.4	13.6
Midvale	84047	3.2	9.2	9.3	6.6
Riverton	84065	8	24.3	8.8	14.3
Sandy	84070	4.6	13.6	16.8	9.8
West Jordan	84088	7.9	12.2	7.9	9
Sandy	84092	7.4	17.3	11.4	14.9
Sandy	84093	15.4	7.5	17.3	11
Sandy	84094	3.1	15.8	6.3	9.5
South Jordan	84095	8.6	21.6	10.7	12.9
Salt Lake City	84101	11	10.4	10.8	46.5
Salt Lake City	84102	4	13.3	13.4	6.2
Salt Lake City/Aves	84103	6.8	25.7	14.8	14.6
Salt Lake City	84104	2.7	7	3.4	6.1
Salt Lake City	84105	5.5	19.7	6.2	4.7
Salt Lake City	84106	7.5	12	5.7	7
Murray	84107	3.9	12.2	7.5	7.4
Salt Lake City	84108	6	14.2	7.9	11.5
Salt Lake City	84109	5.9	14.3	17.5	18.3
Salt Lake City	84111	6.5	17.3	14	8.3
South Salt Lake	84115	3.5	10.9	6.3	13.7
Salt Lake City	84116	2.3	11.3	6.4	8
Holladay	84117	4.6	22.7	11.8	10.3
Taylorsville/Kearns	84118	3.3	10.2	6.8	6.2
West Valley City	84120	3.4	14.6	6.6	5.5
Cottonwood	84121	12.6	22.1	10.6	10.8
Taylorsville/Murray	84123	3.1	19.5	3.66	3.5
Holladay	84124	5.9	13.8	14.5	7.4

Because of the way the numbers above are calculated, it is a great indicator of what the market has been like in the last 30 days as well as how many homes are on the market.

I noticed that only 2 units sold of the 93 active in mainly condo market of 84101. On the flip side, 59 homes sold in 84118. And 852 units sold in Salt Lake County in the last 30 days.