Utah Real Estate Advice and Updates

Is Now the Right Time to Sell My Home?

At this point, Logan Real Estate is worth less than it has been at any other time in the last 4 years because there are fewer buyers and more Logan homes for sale. 

If there are too many homes for sale, the rate of selling is relatively slower than expected, and homes might not sell at all.  This trend results to home prices going down because there is more real estate inventory than potential buyers, which makes this period not a good time to market your home.

Hence, this is not a good time to try to sell your home because the market conditions are not in its competent state.

However, the real estate inventory might be at all time high, but lowering of home prices ensue delay of home sales.  These market conditions might get worse next year and right now Northern Utah is experiencing this upshot.  They observed a big decline in home sales.  Compared with 2009, last quarter home sales in Cache County were down by 38%.  So, the price you can get for your home now will be more than what you will be able to get next year with the current real estate trend. 

But sooner or later, the prices will start rising again and the levels of inventory will level out when real estate inventory goes down.  Hopefully, this will happen after 10 months if and only if something drastic sways the real estate market.

You’re probably better off selling now than you will be next year.  But if you really need to sell, now is not a good time to sell if you want to get as much money as possible out of your home. 

It's a Good Time to Move Up: Should You?

In order to evaluate if now is the time for you to buy, consider these five issues.

1. Interest Rates: Low rates translate into smaller monthly payments and less money over the long-term. The Federal Reserve has promised to keep interest rates low for the foreseeable future, but in the next few years we could see rates climb back upward. If you have excellent credit, you'll likely qualify for an exceptional rate. Better yet consider doing an all-cash purchase (like the nearly 30 percent of the market) and avoid interest rates altogether!

2. Why are you buying?: This is an important question to spend some time pondering. Don't move on a whim. What is the real need to move? Many move-ups need more space, want to claim a more prestigious address, or are ready to settle down for good and want to be exactly where they've always dreamed. Perhaps your current home is unable to be remodeled to accommodate your wants and needs. Regardless of the reason, be sure to spend ample time thinking about what move is best for your family.

3. Equity: Home values have fallen across much of the country and this could mean that equity you had built over the past few years is gone. Talk to a local real estate agent about the current market value of your home before deciding if now is a time to buy. Most sellers aren't willing to take a loss on their home. The good news? If you've owned your home for many years (at least five) then chances are you do indeed still have equity.

4. Financial Stability: There's a 9.0 percent unemployment rate that doesn't appear to be going anywhere fast. Moving up can mean bigger payments or heftier bills (energy costs, property taxes, etc). Are you ready to take on this new responsibility? Be sure that you have steady employment, adequate retirement savings, an 8+ month emergency fund, as well as savings for downpayment and other closing costs.

5. Family Concerns: There are many different stages to life and at each of these stages one must consider how actions will affect family members. A family with young children will need to consider school districts, sports teams, and friends. A couple nearing retirement may want to consider the needs of children or grandchildren that live nearby. Buying a home is about much more than making a sound financial decision, it's about creating the sort of life you desire.

via realtytimes.com

As someone who has recently moved, I'd have to say these things are very important.

I struggled a lot with the "why am I buying" but buying a bigger nicer home was part of my long term goals. It is in a neighborhood that I thought would be a great place to raise a family.

The equity factor was a big factor in moving now. Because I have a lot less equity in my house than I did a few years ago, I thought it was my best interest to rent out my home rather than to sell it. It has positive Cash flow, every month the principal goes down a little bit, and hopefully in a few years it will have more equity making it a better time to sell it.

Six Tips For People Considering Selling

1. Curb Appeal: Buyers make snap judgments about each home they view. These judgments are drawn largely from first impressions. Be sure your home has impressive curb appeal. Fresh flowers and mulched beds, along with trimmed hedges and grass are a must. If your home needs a fresh coat of paint, now is the time. And even if your paint or siding is in good repair, consider painting your front door an eye-catching color, such as red or blue.

2. Inspection: An inspection can make or break a deal. Even after they've fallen in love with your house, a buyer may decide foundation issues or faulty electrical are too much of a headache. The benefits of having an inspection done prior to listing can be two-fold. First, your buyers will be aware of what repairs are needed before they make an offer. Second, you can choose to address these repairs and therefore have them removed from the scenario altogether.

3. Repairs: Buyers are turned off by long lists of needed repairs. This goes double for time-consuming and costly repairs, such as roof work or foundation issues. By identifying and addressing the issues, you may be able to yourself save time and money in the long run.

4. Organize Paperwork: There may be contracts or warranties you have on your home that will transfer to a new buyer. These can include appliances, builder warranties, and even contracts with lawn and pool companies that were paid up-front.

5. Talk to your lender: How much new home can you afford? Are you able to sell your home for enough to cover the remaining balance of the loan? These are important questions to get answered prior to listing!

6. Prepare for showings: Staging a home for sale has multiple different layers. First, you should clean and organize. Have carpets cleaned and repaint dirty or loudly colored walls. Next, remove large and bulky furniture, as these make rooms appear smaller. And finally, take down personal pictures, trophies, and memorabilia that could distract the buyer from what they are actually interested in ... your house!

via realtytimes.com

Spring is the most popular time of year for people to list their Utah homes for sell. Here are six things for sellers to think of, that they would probably not think of themselves before listing a home.

homes

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short sales, logan, cache county

short sales, logan, cache county

The Nuts And Bolts Of Buying Homes

Evaluate your current financial status - this is so far the first and foremost thing that you have to do when you are thinking of buying a property. Potential home buyers must be realistic with their expenses. When a lender says you can afford a certain amount, don't buy immediately. You have to look closely at your finances because more often than not you can't. Be realistic with your spending habits to ensure that your mortgage rates payment won’t be difficult to handle. It’s also good advice to meet with a housing finance counselor to see what they have to say about your finances.

Income is important in terms of loan qualification, and usually means having a job with some consistent income history. A number of loans require 2 years of steady work history.  Normally, you need at least 3.5 percent down payment when you buy a home.  But the higher is your down payment, the lower would be your monthly payment.

Hire a real estate agent. Local real estate agents have information about neighborhoods, schools, and local market conditions. Before selecting a real estate agent, it is good to interview several ones. Different real estate agents have different specialties.

Listing agents are contracted to list and market a property and are paid by the seller when the Nevada Homes closes.  Buyers agents are normally paid half of the listing agents contracted commission and they work directly with buyers.

Real estate agents would normally guide you in writing up an offer in the Real Estate Purchase Contract. What REPC does is review sales price, contingencies (reasons you can back out of the contract such as financing or inspections), and contracted closing and move in dates. Moreover, it examines closing costs or concessions the seller is putting, or any personal properties included in the sale.

After the offer is accepted, have a professional home inspection. Buyers typically pay for the home inspection, that way they know that the home inspector is working for them and not for the seller. Special inspections like termite inspections, radon, and meth tests are also recommended for certain Katy TX Homes For Sale. If any of the inspections came back unacceptable, the well-wrtten REPC assure that you will have a contingency to back out of the contract.

Predicting Mortgage Interest Rates This 2011

If you've followed the real estate and mortgage market data over the past few months, you've noticed that mortgage interest rates have risen quite a bit lately. Because of the dawdling housing market and sluggish economy, mortgage interest rates were lately at their buck than they ever have been. The probability is that the interest rates might not be this low again.

The million dollar question is, "What will happen to mortgage interest rates in the future?" Nobody knows for sure, but the leading "experts" from the Mortgage Bankers Association are predicting that mortgage rates for Katy TX Real Estate , for instance, will rise each quarter throughout 2010. Now things could change, the economy could take another turn down, and it's possible that interest rates could go back down, but don't bet on it.

The MBA has predicted that the average interest rate for conventional 30-Year fixed mortgages during Q1 of 2011 will be 5.2 percent.  This rate will raise one tenth to 5.3 percent in Q2, another tenth in Q3, and Q4 will end with an average mortgage interest rate at 5.5 percent.

A 5.5 percent mortgage rate is pretty exceptional from a historic standpoint.  However, the current average rate of 4.97 percent isn’t as good as the predicted one.  The MBA further predicts that   by the end of 2012.

Now these rates are just projections. The predictions can be either right or completely inaccurate. There is something that is clearly stated - mortgage interest rates are unbelievable right now. So if you plans of refinancing in the future, don't wait instead do it now.

If you're planning on buying Homes for sale in Denver Colorado with mortgage financing, this might also be the most affordable time to buy.Presently, like 70 percent of the US metro areas, it is more inexpensive to buy than it is to rent. Home prices could still drop a bit depending on the area, but the union of low price and low payment may not ever get better than they are now.

Should you Sell, or Turn Your Home into a Rental Property?

Real estate owners have many reasons to move. Some of the time its out of necessity, other times its simply to move into a more desireable home. In the current economy, and with mortgage interest rates as low as they are, the best long term financial decision is probably to rent a house out rather than sell it at a steep discount.

With today's mortgage interest rates as low as they are, rental rates generally exceed mortgage payments, especially if you've owned your home for a little while and have some equity. By renting out your hard to sell house, not only can you continue to build equity as your house gets paid down, but you might also be able to generate extra cash flow when rents exceed payments.

Plus, as the years pass by, your property value, and your rental income will increase with inflation.  Your fixed mortgage will stay the same, and eventually, it will be paid off. By owning rental real estate the renter pays the expenses for a long term asset.

Home loans for primary residences are better than rates for properties purchased specifically for investment. By living in a home, and then converting it into a rental property, mortgage terms are more favorable.

One obstacle many potential landlords face is that they can’t qualify for two mortgages. Even though the rental revenue exceeds the mortgage payments, lenders require substantial reserves (usually six months worth of payments) for rental property. They also require that income falls within their Debt to Income guidelines.

Another roadblock many people have with owning a rental property is that they just don’t want to be landlords.  They don’t want to get the phone calls in the middle of the night from tenants who have leaky toilets.

This is easily overcome by hiring a Logan UT property management company. Hiring a property manager allows real estate ownership without ever having to deal with tenants or home maintenance issues. 

It’s a tough time to sell Logan real estate right now. If you can, you might be better off by finding a renter.  Talk to a mortgage lender or Logan real estate agent to see if renting your home is a realistic option for your situation.

 

Save Money on Vacant House Insurance

Homeowners are currently turning to home tending services in order to save money on vacant home insurance.  What home tending companies do is that they install a resident to occupy the home and maintain it.  With the accountable resident, you are sure that your home is protected and maintained.  Since it is no longer vacant, homeowner’s insurance rates will not increase.  Not only that your home is kept up, the outside features like the landscaping are also preserved. 

Home tending and home staging adhere to the philosophy that a furnished, decorated, well-kept home sells faster and at a meaningful higher price than a vacant/empty one.  Though has a similar aim, there is big difference between the two.  Utah Home Staging is preparing a home for the real estate market by emphasizing its strong points.  It is basically getting your home market ready.

On the other hand, home tending is the art of providing a temporary qualified occupant service for home owners with vacant homes to care for the home while it is still on the market.  While home staging charge for designing the home in order to sell, home tending is usually charged for free or at nominal cost to the homeowner.

In addition to the mentioned services, Utah Home Tenders make sure that your home will have an improved curb appeal with the pool, yard, and ground well-maintained for free.  Home owners shouldn’t worry about leaving their home empty because the home tending company has quality, staged décor and furniture at no cost.  Housekeeping is amazingly included as frequently as needed by the home or as called for by the home tender. 

All in all home tenders are contractually obliged to furnish an empty home, maintain the inside and outside part of the home.  Moreover, they are required to cooperate with the homeowner’s real estate agent during showings and open houses seven days a week.

Before you hurriedly go to any home tending companies, make sure that the occupant provided by the company will do their home tending duties. 

What a great way to save money in vacant house insurance.  For more information on Salt Lake Home Tending options, ask your real estate agent.  Real estate agents and Utah Home Tenders work closely together to make sure your home sells quickly for the best price. 

 

FHFA Is Using Legal System to Try and Cut Losses

We all know that the foreclosure system is a complete mess, and a lot of the reason is because the secondary mortgage market of Fannie Mae and Freddie Mac, bought loans from banks that never should have been underwritten. In effort to make home ownership available to everyone, standards diminished to a state that they never should have. These loose standards lead to the housing bubble, and bubbles always pop when they get too big.

Well… according tot his article on Broker Agent News, the FHFA is now trying to do things to make banks buy back some of these loans…. This will have an

FHFA is looking to offload its losses onto the financial institutions that sold them to Fannie and Freddie. Now, they have enlisted the services of some high powered attorneys to assist with the process.

For example, FHFA recently retained the firm of Quinn Emanuel (QE) to jump start its investigations. Using its expertise in business and banking litigations, QE has already subpoenaed JP Morgan Chase and has put Bank of America on notice for $47 billion dollars in poorly serviced loans. This investigation is broad ranging, as the FHFA is not solely pursuing institutions that sold mortgages to Fannie Mae and Freddie Mac, but also private label financiers who eventually packaged and sold mortgage backed securities to investors on Wall Street. As it stands today, banks and mortgage companies could be forced to buyback over $179 billion in soured mortgage products. To date, Fannie and Freddie have forced banks to repurchase over $6 billion in mortgages, and an additional $16 billion will be forced back on the banks in the next 12 months. During the boom years of 2006 and 2007, Fannie/Freddie purchased over $200 billion in subprime loans, of which the majority have gone sour. The FHFA is seeking to force repurchases on these mortgages too.

via Broker Agent Social Network – Preston Howard’s article – Here Come the Bank Buybacks.

If the bank buy back lawsuits are successful, this could cause major changes from Logan Utah Real Estate to Real Estate in Charlottesville Virginia. Banks would take a huge hit, and the banking system as we know it could be undone…. If only we could just go back in time, and prevent the abnormal real estate buying behavior from every happening.

via searchforeclosures.us

What a Mess!

Is Foreclosure the Best Option for Your Home?

We all know that the foreclosure problem in the country and quiet serious right now. Hundreds of thousands of "home owners" are underwater, and owe far more on their homes than they could ever sell them for.

Giving up their homes is considered a better financial decision than making payments until real estate values recover, are chosen by homeowners. Lots of these "strategic defaulters" can afford their mortgage payments.

Just as how the foreclosure process works, it usually takes at-least 8 months of missed payments before the bank will actually finalize the foreclosure and repossess a house. With the huge number of foreclosures, some banks are literally taking years to initiate foreclosure auctions. They don't want to add the losses to the books and so are postponing foreclosures as long as possible.

Underwater homeowners can not only eliminate thousands in debt by being foreclosed on, but with way the system works, can also save money by not making home payments for many months.

This flaw in the foreclosure process is actually providing what is known as "stealth stimulus.” People who are living rent free in homes undergoing foreclosure, have a lot of extra cash, and most of this is helping the overall economy by being spent.

To be specific, some owners of underwater homes listed in the Boston MLS Listings are actually making money off of the foreclosure process by renting out their homes that they aren't making payments on.

Foreclosure was designed to protect banks from negligent borrowers by using the real estate as collateral. Foreclosures are providing the opposite effect because of the the current real estate market, and unscrupulous lending practices that occurred during the housing boom. Going through the foreclosure process is providing financial benefits to underwater borrowers while bringing huge losses to banks.

Strategic defaulting provides huge financial relief to insolvent borrowers but somewhow might be unethical in other ways. The slow foreclosure process is also stimulating our slow economy by giving extra cash to people who would ordinarily need that money to make housing payments.