Introduction Video

First Quarter 2007 Salt Lake Housing Stats

Wasatch Front housing market slowing, but still hot
By Lesley Mitchell
The Salt Lake Tribune

Salt Lake Tribune
Article Last Updated:04/20/2007 01:06:36 PM MDT

Posted: 1:00 PM- The Wasatch Front housing market has cooled some from last year's sizzling pace, but it still remained hot during 2007's first quarter.
Salt Lake County's median selling price was up a heady 19.9 percent in the first quarter to $241,000 compared with the first three months in 2006. Davis County prices were up 25 percent to $218,000, while Tooele jumped more than 30 percent. Utah and Weber counties both experienced double-digit price increases.
The sales figures show that homes are still appreciating and selling quickly - especially those selling in the range of $300,000 or less.
Just ask Lonnie Nilsson, who seemed optimistic enough when she figured her Bluffdale townhouse would be up for sale about two weeks in the Salt Lake Valley's strong real estate market.
Try two days. Nilsson had several buyers come by for a look the first day her property went on the multiple-listing service earlier this month. By day two, she had multiple offers at full asking price.
More good news for sellers: The number of days homes remain on the market before they are sold is holding steady.
Homes in Salt Lake County remained on the market an average of only 40 days, up only 1 day from the first quarter of last year. In Davis County, homes sold in an average of 46 days, down from 56 days. Only Utah county saw a rise in the number of days homes remained on the market: a whopping 21 percent increase to 74 days.
While all that is good news, the number of homes that sold in the quarter was down in most areas - a sign that signals the slowdown is real.
Only Weber County's home sales were up in the first quarter, by 5 percent. Four percent fewer homes sold in Salt Lake County in the first quarter of 2007 compared with 2006. Sales were down nearly 2 percent in Davis and Tooele counties; Salt Lake County was off more than 4 percent.
Those aren't bubble-bursting drops by any means. But "things are definitely slowing down a bit, especially in the higher price ranges," said Gary Cannon, president of the Salt Lake Board of Realtors.
"The affordable stuff really flies off the market, the more expensive stuff is staying on the market longer," Cannon said.
He said many sellers of more expensive homes are having to take some big price reductions to attract buyers.
Which price range is feeling the slowdown the most?
Many people selling homes priced below $300,000 are enjoying the quickest sales at the best prices, said Randy Cochrane, broker/owner of Remax Advantage in Murray. Like Cannon, Cochrane said sellers above the $300,000 range are more likely to not only have to lower their asking price, but many will wait longer than anticipated to get their home sold.
If they are trying to sell in an area where a new home builder is selling homes in the same price range, the wait could be even longer. Builders have increased the level of incentives they are offering to boost sales and draw attention away from existing properties.

March 2006 Newsletter

Click here to see the March 2007 Newsletter

Utah #1 in Home Appreciation 4th Q 2006

Utah has highest home price appreciation in the United States

Utah had the highest housing price appreciation rate in the U.S. from fourth quarter 2005 to fourth quarter 2006, according to a report recently released by a government agency. At a rate of 17.6 percent, Utah’s housing prices increased more than any other state in the nation, according to the Office of Federal Housing Enterprise Oversight’s House Price Index. Utah’s metro areas also had some of the largest housing price growth in the country. With an appreciation rate of 19.92 percent, the Provo-Orem area was ranked third in the nation while Salt Lake City at 19.76 percent came in fourth. Also in the top 20 metro areas was Ogden-Clearfield at 15.30 percent.

The state with the second-highest appreciation rate was Wyoming at 14.3 percent while Idaho came in third at 14 percent. The states with the lowest appreciation were Michigan (-0.4%), Massachusetts (0.5%) and Ohio (1%). Nationally, home prices in the fourth quarter of 2006 were 5.9 percent higher than they were in the same quarter in 2005.

February Newsletter

Here is a link to my February Newsletter: Home Update

Title Issues

Things to know:

• Live clients are the only people who can legally sign listing and sales agreements.
• Listing agreements need to be signed by all individuals who are the vested on the property.

“Red Flag” to watch for:

The situations that can become “tricky” are the situations in which a person, who is deceased, is still on title.
Dealing with these kinds of situations can take time and is not something that can be resolved at the closing
table.

How to avoid some of the issues:

• If the vested owners are holding title as “joint tenants” and one of them is deceased, an original or certified
copy of the death certificate must be obtained. The death certificate is recorded and the surviving owner(s) sign
the vesting deed and other closing documents.
• If the vested owners’ are holding title as “tenants in common” and one or more of the owners’ is deceased, the
property must go through probate to release the deceased party’s ownership, which could take months.
• If title is held in a trust and one of the trustees is deceased, a copy of the trust is required for review. The trust
will establish who the successor trustee(s) is. The successor trustee(s) can sign the vesting deeds and all other
closing documents.

COMPETENCY/CAPACITY
Things to know:
• A person must be deemed competent and capable to secure the validity of a legal document.
• A person must also be over the age of 18 to hold a vested interest in property.

Competency or capacity is defined as:
Having the mental ability to understand the nature and effects of one’s acts, and the ability, knowledge, legal qualifications, or fitness to discharge the required duty or professional obligation created by the act. The most common reasons for incompetency and incapacity are: minor children (under the age of 18 years old), permanent mental condition (Alzheimer, acute mental illness) and temporary mental condition (under influence of mind altering medications, drugs or alcohol).

“Red Flags” to watch for:
• Determining whether a person, especially an adult, is competent can be a difficult task.
• Children under the age of 18 can not legally hold title to property. In some situations, parents will vest property
in their children’s names (mainly as a tax shelter) not knowing the repercussions of this action.
• If a person is found incompetent or incapacitated and they have signed a legal document, such as a real estate
purchase contract, it will void that document.

How to avoid some of the issues:
• Use your best judgment. If an individual does not seem competent, talk with the real estate professional prior to
closing about your concerns. If possible, a second or third opinion may be helpful from an outside source
(doctor, family members, notary). The courts can certify whether a person is incapacitated.
• In the event that an individual may become incompetent, it is a good idea to have the person sign a power of
attorney giving someone else the right to sign for them.
• If a minor child is vested on property, the courts would need to appoint a conservator to sign any and all
contracts on behalf of the minor (this could take time).



Title Tips Courtesy of First American Title Insurance Agency

Tech trends rock real estate world

Citizen journalism, social networking and user-generated content are transforming the industry.
By Les Christie, CNNMoney.com staff writer
January 10 2007: 9:32 AM EST


NEW YORK (CNNMoney.com) -- Home buyers and sellers have already seized much of the power once in the hands of exclusively of real estate professionals. But they're about to get stronger still.

The changes to the real estate industry have come fast, with listings and valuations tools widely available for free on the Internet.

Now, according to many of the participants of Real Estate Connect NYC 2007, a conference devoted to outlining the changes facing the industry, the industry is on the cusp of another technical revolution, one that revolves around that Time Magazine person of the year - YOU!

Real estate blogs, which have been around for a few years, exploded in popularity during 2006. These sites provide a wealth of unvarnished opinion, truths and half-truths about towns and neighborhoods all over the country - the inside dirt on restaurants, schools and crime.

"The rules have fundamentally changed," said Brad Inman, the host of Real Estate Connect and publisher of Inman News. "Social networking is lifting real estate and in the next 12 months it's going to overwhelm real estate. It's been happening since Craig's List started but it's only now coming to a head."

In the past, the real estate industry always had a gate-keeper mentality.

"Brokers prospered by not giving out information," says Dottie Herman, CEO of New York based broker, Prudential Douglas Elliman. "Clients came to them for information. This takes the industry to a whole different model."

Technology has made it very simple to start up, run and contribute to Web sites and that has let loose a flood of information that's increasingly well organized.

"Now we're seeing the aggregation of these conversations. [Consolidators] are taking feeds from lots of different blogs and outing it in one place by zip code or neighborhood," says Inman.

Take Outside.in for example. This two-month old Web site collects blogs from more than 3,000 neighborhoods in 55 cities. Posters can write about anything, including the quality of new real estate listings, how good the schools are, hot restaurants, even individual real estate agents.

These sites encourage content from readers. Don't like the spumoni at the local gelato house? Vent on line. Angry that your streets are going unswept? Become an Internet scold. Curious about that derelict house around the corner? Ask your blogger neighbors what they know about it.

Another site, Homethinking.com solicits reviews on agents. Like Yahoo! autos, where Accord owners can rank their satisfaction with their car purchase or TripAdvisor, where travelers can rate hotels, Homethinking posters are able to rate their real estate agents.

All this openness can make the marketplace much more transparent for consumers. It enables them to know market prices more accurately, to engage the most professional real estate agents available and to learn about individual towns or neighborhoods much more intimately and expeditiously than they could in the past.

As the new technology comes more into play, realtors will have to adjust. Many of the web sites have taken over some of the traditional services that real estate agents once provided.

It may be a difficult period in some markets. Not only are sales down, but alternate business models are making inroads into their business. For sale-by-owner sites, discount or fee-for-service brokers and brokers who pay buyer's rebates all may gain traction.

Inman says that real estate professionals have two choices when it comes to confronting the changes wrought by technical advances: engage it or pretend it isn't there.

It's easy to guess what route he recommends.

2007 Salt Lake City Housing Forecast

According to Fortune Magazine, Salt Lake City will be number 2 in the west and number 4 nationally for home price appreciation in 2007. Home prices should increase by 5.4% to a median price of $186,230, second only to Albuquerque, NM. Check out further stats for housing at: Fortune 2007 Housing Forecast

6 Ways to Shrink your Heating Bill

NEW YORK (CNNMoney.com) -- With winter fast approaching, and the cost of natural gas and oil still far above historic norms, here are six basic steps that could save you big on heating bills.
Most are cheap and easy, although a couple require a significant financial outlay and professional installation. Either way, the tips below, outlined by the Alliance to Save Energy, will help go easier on the environment, strengthen the nation's energy security and save you money.

Clean your furnace filter - This could be as easy as cleaning the lint from your dryer, says ASE spokeswoman Ronnie Kweller. Or it could entail running to the store for a $10 replacement, she says. Although hard to quantify, Kweller says your furnace will struggle less, and hence will be more efficient, if it doesn't have to push hot air through a clogged filter.
Also, she recommends getting the furnace tuned up at least once a year by a professional to further boost efficiency.

Get a programmable thermostat - For about $100, you can tell one of these devices to automatically turn down the heat or air conditioning when no one is home, like during the workday, which can shrink your heating bill by about 10 percent. And unlike just turning down the heat when you leave and turning it back up when you get home, the programmable thermostat can do it a bit before you arrive. "The beauty of it is you come home to a comfortable house," says Kweller.

Take advantage of the sun - This doesn't even require any extra spending. Just remember to open up the curtains on south-facing windows during the day, close all the curtains at night, and let the sun help naturally heat your home.

Turn down the hot water - Kweller says most hot water heaters come with a default water temperature setting of 140 degrees Fahrenheit. "That's hotter than you need for showering and dish washing, and can risk scalding," she says, recommending 120 as safer and more efficient choice. If you're in the market for a new water heater, Kweller recommends a tankless variety that heats water up only when needed, using 30 percent less energy.
Also, she says using cold water to wash your clothes can save up to $68 dollars a year on water heating bills.

Insulate and seal - Adding an extra layer of insulation to your roof or walls, and using caulking, foam or weather stripping to seal cracks around windows, light fixtures or electrical outlets can not only save you on energy, it can get you a tax break as well. Kweller says up to 10 percent of the costs for insulation, up to a maximum of $500 a year, can be written off on your taxes until the end of 2007. For more information on insulating and tax breaks, go to http://www.simplyinsulate.com/. For locating areas that need sealing, it's helpful to go around windows and fixtures with a lit candle and watch for the flickering flame.

Upgrade your windows - Kweller recommends ones that carry the government-endorsed Energy Star rating label, both for efficiency and to take advantage of the tax credit, which can be used not just for insulation but a variety of efficiency-enhancing products. She says the Energy Star windows, which will be either double or triple paned, start at around $300 each.
"It's a big investment, and we don't think people should do it just for the tax credit or energy savings," she says. "But if you need new windows anyway, definitely go for Energy Star."
She estimates consumers can save $110 to $540 annually on heating costs. For more information on the variety of tax credits available for all energy efficient products, go to http://www.ase.org/content/article/detail/2654.

From CNN's Money

3rd Quarter Housing Stats

UAR reports third quarter statistics: Average price up, sales slightly down for state

Even though home prices have dipped nationally in recent months, prices in Utah rose about 16 percent in the third quarter, according to recent statistics from the Utah Association of REALTORS®.
The 2006 UAR third quarter market report showed that Utah home prices averaged $255,402 in the third quarter. Excluding statistics from Park City, which tend to inflate the average, prices were at $240,790, up about 23.5 percent from third quarter 2005.
Home sales showed a slight decrease this quarter, dropping about 6 percent when compared to last year at this time, a reflection that the market is stabilizing to more normal levels after last year’s record-setting numbers. Home sales slowed only about 2.5 percent compared to second quarter 2006.
However, there were many areas in the state that did not see a slowdown in sales. Box Elder County, the Cache/Rich area, the Grand/San Juan area, Morgan County and Weber County all had home sales increase by more than 13 percent.
Additionally, appreciation was high in the third quarter with many areas having price increases of more than 16 percent. A complete market report is available at UtahRealtors.com/quarterly/mktrpts.htm.

What's a CRS?

The Certified Residential Specialist (CRS) is the highest Designation awarded to sales associates in the residential sales field. The CRS Designation recognizes professional accomplishments in both experience and education.

Since 1977 the Council of Residential Specialists has been conferring the CRS Designation on agents who meet its stringent requirements. Currently, there are more than 34,000 active CRS Designees.

Why Use a CRS?

Today, home buying and selling is faster, more complex, and more competitive in every way. Our goal is to make the process a little easier for you. The first step is choosing the right REALTOR®.

Experience — To earn the Certified Residential Specialist (CRS) Designation, every REALTOR® must have significant experience and volume of real estate transactions.

Ethics — Every CRS Designee is required to maintain membership in the NATIONAL ASSOCIATION OF REALTORS® and to abide by its strict Code of Ethics.

A Focus on Home Buying and Selling — To help make the home buying and selling process more rewarding, every CRS Designee must have a proven track record in the business, as well as advanced education in related areas like finance, technology and marketing. Work with the top 4 percent.

Technology Expertise — The training available to CRS Designees includes a strong focus on technology and its applications in the real estate business.

A chilling effect

Any agent that sells real estate should know the importance of marketing and how there should be a plan for getting the home ready to sell. A lot of people are staging and making sure the home is clean and bright; the yard in good shape and maintained. The other day I was showing clients several homes. Several of these home were flips, where the Seller had gone in and spent thousands of dollars fixing them up, new floors, paint, cabinets and appliances; all the bells and whistles. The bad thing was that we couldn’t stay in these homes very long and enjoy them because it was COLDER inside than outside! So all the money, decorations and staging was ineffective because it was like walking into a refrigerator. Buyers don’t want to feel like they are in a refrigerator when it is winter out. They want to walk into a home and feel, safe, warm, secure and dry. Buyers buy based on how a homes makes them feel… it’s a complete package… turn on that heat!

A Bright Idea...

Are you ready to take the plunge and remodel your bathroom? Keep lighting in mind when making plans. Recessed lighting fixtures may be a popular recent home trend, but they can often leave you in a “shadow trap” when illuminating your new room. Focused lighting such as halogen or floodlights creates unwanted shadows in your new bathroom design, making it look spooky rather than inviting. To avoid this lighting pitfall, use a soft-focused or diffused light fixture and mount it at eye level or just above. Positioning light this way will cause it to shine at your face, not down from above. Other types of light, such as decorative or recessed lamps also can combat shadows. If you do choose recessed lighting, place the lights close to the mirror and center them above the faucet. A dimmer switch at the vanity area helps control the lighting, allowing you to adjust for day and nighttime levels. Follow these steps and you’ll be brilliantly pleased with your new bathroom.

From November 2006 CRS Magazine.

Hidden Danger

You’ve checked everything in plain view — kitchen appliances, floors and windows. Now you’re ready to sign a contract, right? Not yet. One of the most important things that should never go unchecked is actually invisible. Radon is an odorless, colorless and tasteless gas, but it may be a
problem in your home. This radioactive gas comes from the natural breakdown of uranium in soil, rock and water. Radon leaks into the house through cracks or holes in the foundation and can cause lung cancer when you breathe it. Any home can have radon, whether the home is new or old, well-sealed or drafty — with or without a basement. If you think your home may have
radon, a radon test can provide you with answers. Radon test kits are available through the mail, but hiring a qualified radon tester will give you the most accurate results. If your home tests positive (a radon level of four picocuries per liter or higher), you’ll want to hire a professional to install a vent pipe and fan to filter the gas away from your home. Sealing or caulking openings in the foundation and walls also can reduce the amount of radon entering through the soil. Before buying or selling your home, it’s important to test your house for radon. If buying, ask the seller for information on any radonresistance systems in the house and their radon test results. It’s quite easy to test your home for radon, and knowing your radon level is worth it — for both buyers and sellers. For more information on how you can protect your family and home from radon, visit www.epa.gov/radon.

Get your home ready for winter!

Time to get ready for winter. If you haven't ready done so, here are 14 steps that need to be completed within the next few weeks:

STEP 1: Add a second layer of insulation to your attic. R-30 insulation is considered the minimum. If your house is relatively new, it probably conforms. If not, consider adding insulation.

STEP 2: Caulk around window and door glass and trim, and all exterior trim. Install or replace weather stripping on all doors and windows. Check for cracks around pipes and electrical outlets entering or exiting the walls.

STEP 3: Install storm windows and doors if you have them. Consider purchasing storm windows if you have older windows that are not made from modern insulated glass.

STEP 4: Have your heating system checked by a licensed heating/air-conditioning professional. Most furnace manufacturers recommend at least annual inspections. Get the Green Sticker as well.

STEP 5: Check gutters and clean them if necessary. Clogged gutters can result in basement flooding when the snow melts.

STEP 6: Replace any roof shingles that are missing or damaged.

STEP 7: Have your chimneys inspected by a chimney service and, if necessary, cleaned.

STEP 8: Check the foundation for areas where water may puddle.

STEP 9: Trim trees away from the house. Have dead trees and branches removed by professional tree trimmers, or do it yourself.

STEP 10: Drain and shut off outdoor water faucets and turn off sprinklers. Disconnect the hose from the faucet!

STEP 11: Insulate any water pipes that are exposed to freezing cold.

STEP 12: Replace the batteries in carbon monoxide and smoke detectors, and check to make sure these are all in working order.

STEP 13: Check fire extinguishers and charge and replace as necessary.

STEP 14: Make sure you are stocked with rock salt, sand, snow shovels and any other items you will need during the winter. Test run the snow blower before you need it, and get your gas mixed and ready.

Copyright © 1999-2006 eHow, Inc

Pending Home Sales Down Slightly in September

Daily Real Estate News | November 1, 2006


Home sales are expected to hold fairly steady in the months ahead, according to the latest reading on pending home sales published by the NATIONAL ASSOCIATION OF REALTORS®.

The Pending Home Sales Index, based on contracts signed in September, slipped 1.1 percent to a level of 109.1, following a 4.7 percent gain in August. The index remains 13.6 percent below September 2005.

The index shows home sales will not be moving much in one direction or another, says David Lereah, NAR’s chief economist. “The present level of home sales is relatively high in historic terms, and we can expect generally minor movements around this level,” he says. “We don’t expect to see any changes of note until early next year when we’re likely to see a modest lift.”

The market currently is a little lower than expected as buyers try to time their entry, Lereah adds. “In the meantime, there’s some build-up in demand that will move when consumers realize that conditions are optimal for them.”

The index is derived from pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed; pending sales typically are finalized within one or two months of signing.

An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined and the first of five consecutive record years for existing-home sales. There is a closer relationship between annual changes in the index and year-ago changes in sales performance than with month-to-month comparisons.

Regionally, the Pending Home Sales Index in the Midwest rose 2.1 percent in September to 96.4 but was 18.4 percent below September 2005. The index in the West slipped 0.4 percent to 112.5 in September and was 15.2 percent below a year ago. In the South, the index eased 1.3 percent in September to 125.0 and was 9.0 percent below September 2005. The index in the Northeast fell 5.9 percent to 89.9 in September and was 15.9 percent lower than a year earlier.

— REALTOR® Magazine Online

Content is copyrighted by NAR and is reproduced with NAR permission

Luxury Real Estate?

The caption said: Luxury gated townhome community-Central location... Luxury homes in the $200,000 price range and located in the central city of Salt Lake? can't happen. I think this term is over used by agents everywhere, it is loosing it's luster. I mean, this property has linoleum! The term Luxury from Wikipedia: Luxury real estate (American English) or luxury property (British English) describes a niche in the real estate market dealing with the highest socio-economic group of property buyers.



Then there is this LUXURY Listing: FEDERAL HEIGHTS MEDITERRANEAN MANSION. COMPLETELY UPDATED WITH EVERY CONCEIVABLE LUXURY. THIS RARE HOME SCREAMS CHARACTER AND WORLD-CLASS QUALITY.DECKS, PATIO, POOL AND GARDENS ARE MATURE, LUSH AND PRIVATE. HEATED STONE WALKWAYS, FLOORS AND DRIVEWAY. $4,990,000. This is luxury!

I know there are luxury properties that fit into the luxury category that are only around the $1 million dollar mark, but I think anything below this amount is not luxury. Am I wrong?

Welcome to my new blog about real estate. The reason I am setting up this blog is because I want to share my years of experience (18) with people interested in real estate. This might include; first time homeowner's, investors or just those curious about the market. It might also include other real state agents and brokers already in the business of selling real estate. Do you have questions about the loan process or title work? What improvements should you make before you sell your houses and how much will you get back on the money you spent when you sell? Should you start in the real estate business and what is entailed? What designations are important to have? Should I sell my house on my own or higher a real estate agent? These are just example of what I would like to include in my blog.

So here goes!! I hope this is as fun and fulfilling for you as it is for me...