The social media revolution is a phenomenon that has gone viral! The old ways of marketing your home is NOT effective anymore! If your Realtor is using newspapers, printed flyers outside in flyer boxes, or uses those hideous free real estate magazines to market your home, your pouring your money down the drain. Print media is ineffective and out dated.

Watch this incredible video to see what I’m talking about. Then contact me about a marketing plan for the new generation of media that will find buyers for your home!

If you are thinking of buying a home in the next 6 months, what are you waiting for? Get off the fence and get moving! The time is now, if you wait another day because you are afraid, or waiting for the bottom, or just a procrastinator,  you will miss the best buying opportunity in a generation! 

Here are a few reasons to get moving now (no pun intended).

Sellers are highly motivated.

They have been through the ringers and are literally making deals to get rid of their homes. They see no light at the end of the tunnel, it looks bleak. Plus there is a glut of Short Sales and Bank Owned properties to be had. The best investing advice is; “when everyone in running, BUY, when everyone is coming, SELL”! Well, everyone is running… but not for long!

Stimulus money.

The government is serious about getting this economy moving again, for housing, there is the $8,000.00 tax credit for first time home buyers. Even if you are not a first time home buyer, this will start the “move up” market. Utah has a $6,000.00 grant for buying a new home in Utah, expected to be signed by the Governor soon. This will help about 1600 buyers and almost eliminate about 1800 new homes currently sitting vacant. This, in turn should bring life back into the construction industry. So if you are a first time home buyer and want a new home, you could qualify for $14, 000 to purchase a home!  

Finally, Interest Rates.

At decade lows, hovering around 5%,  and according to the Washington Post, could fall another 1/2 percent soon.

The Federal Reserve yesterday escalated its massive campaign to stabilize the economy, saying it would flood the financial system with an additional $1.2 trillion… 

The decision by the Fed to buy government bonds and mortgage-related securities is designed to lower borrowing costs for home mortgages and other types of loans, thereby stimulating economic activity…

Earlier purchases pushed rates on a 30-year, fixed-rate mortgage down by about one percentage point, and analysts said that yesterday’s announcement could reduce mortgage rates by another half of a percentage point… 

People will look back at this as the window of opportunity that comes along once in a lifetime, question is, did you take advantage of it? Or are you going to be the one that wished they had!

Images; majesticoakproperties.com, hatcityblog.blogspot.com

A bill in the Utah legislature, Senate Bill 260, would give first time Utah Home Buyers a $6,000 down payment grant. This money would come from the federal stimulus package as a 10 million dollar grant to distribute for housing assistance. The money would go to more than 1,600 buyers on a first-come, first-served basis. 

Realtors and economists say this program could really help the housing market. The University of Utah’s Bureau of Economic and Business Research told the Standard Examiner the program could create 8,000 jobs in Utah’s housing sector and add $27 million in income tax revenue for the state.

This would help with the number of new homes that have been sitting on the market the last few years. If the bill is passed, it would be administered through the nonprofit Utah Housing Corporation.

Starting January, 1, 2009, using the new Real Estate Purchase Contract (REPC), was mandatory for all real estate transactions involving a licensed real estate agent or broker. This form could be used starting August 27, 2008, but most people opted to wait until the mandatory date. There are a number of changes to this form, but I will focus on what I think is the most important change in this post. I will look at other changes in upcoming posts, so check back.

Section 10.2 of the REPC

The old REPC, 10.2 provided Seller Warranties:

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; 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 the Property and improvements, including the landscaping, will be in the same general condition as they were on  the date of Acceptance.

The New REPC, 10.2 is in AS_IS Condition:

10.2: Condition of Property/Buyer Acknowledgements.   Buyer acknowledges  and agrees  that  in  reference  to  the  physical condition of the Property: (a) Buyer is purchasing the Property in its “As-Is” condition without expressed or implied  warranties of any kind; (b) Buyer shall have, during Buyer’s Due Diligence as referenced in Section 8.1, an opportunity to  completely inspect and evaluate the condition of the Property; and (c) if based on the Buyer’s Due Diligence, Buyer elects  to proceed with the purchase of the Property, Buyer is relying wholly on Buyer’s own judgment and that of any contractors  or inspectors engaged by Buyer to review, evaluate and inspect the Property. 
 

What is the difference?

istockphoto.com

Basically, the old REPC provided some protections for the buyer, which at the time seemed like a good idea. The problem started when sellers were not aware of some of the problems discovered about their homes by a potential Buyer. After the discovery of a defected warranted item, it was mandatory for the seller to fix the specific warranted item. In some cases this was an extreme hardship for a seller if the repair ran into thousands of dollars and the seller didn’t have the money. The seller could NOT cancel the contract and could be in default.

What the Buyer needs to do now…

photo:loraineritchey

Caveat Emptor, meaning, let the buyer beware!  Seller’s are still required to disclose any known defects about the property, but it is the unknown defects that a buyer needs to discover. It is more important than ever for the Buyer to inspect the property. If you find a defect, you may request that the seller repair the item, but now, the seller is not required to repair a defect. The buyer can cancel the contract if the seller does not agree to repair an item.

If you are not sure how this change and all other changes will affect you when purchasing or selling your home, contact a professional who will help you navigate this process.

UPDATE: November 6, 2009: See updated post of the new changes here.

chart: phoenix real estate guy

**check with your account for specific details about how this affects your particular situation**

Just released;  4th quarter real state statistics for 2008. This includes the counties of Salt Lake, Davis, Tooele, Utah, and Weber. These are provided by the Salt Lake Board of Realtors and have not been made available to the media as of this posting.

Summary of Results:

• Salt Lake County: Median Price; $239,500, down 0.17%
• Davis County: Median Price; $216,900, down 3.58%
• Tooele County: Median Price; $188,000, down 1.05%
• Utah County: Median Price; $230,000, down 2.50%
• Weber County: Median Price; $167,000, down 0.54%

These changes were significantly less compared to 3rd Quarter 2008.

What does this mean?

This shows that prices in most counties around the Wasatch Front have slowed their descent; it does not mean they have stopped going down. As I have said before, buying a home is not always about how much a homeowner can make on a home, it’s about a place to live, nest, shelter, and a place of rest. Either you are renting or you are owning. If your horizon is 3 years or more, buying is the logical choice.

A program called Home Sweet Affordable Home was created by the Utah Bankers Association in collaboration with the United Way to help essential workers in the communities where they live, enjoy the benefits of home ownership with special programs that meet their needs. They have produced a brochure outlining the information for individuals and families seeking affordable housing options throughout the state.

According to Governer Huntsman:

Finding an affordable place to live plays a key role in having a good quality of life. Our communities are greatly improved when essential workers live near their work. However, with escalating housing prices, to find affordable apartments and homes. 

Teachers, police, firefighters, retail clerks and other essential workers in Utah, could find a good opportunity to live in the communities they serve through this program.

photo = homesweethomeutah.org

There is a storm brewing over who to crown as king of the online home value estimate race. Over at Sellsius Blog and also at The Front Steps Blog there were reps from both Cyberhomes and Zillow fighting it out through the written word in cyberspace. It was bloody. Most of the arguments came down to  the AVM’s (automated valuation model) of each of the two companies. Who won? Keep reading…

What Do AVM’s Have to Do with My Homes Value?

Well, not much! It seems that with ALL the objective value of these AVM’s and their algorithms, it doesn’t much help the value of an individual home owner. You see, the appraisers and Realtors had it right all along, nothing can quite beat the value of going to the home, looking inside, seeing the street and neighborhood of the home, and comparing it to the other comparable homes sold in the neighborhood, then coming up with a objective and SUBJECTIVE analysis of the property. There is NO other way to do this.  All the AVM’s and algorithms in the world cannot give you this kind of human, hands on analysis of a your home.

Zestimate; $1 Million

How accurate are Cyberhomes and Zillow in Utah Real Estate Estimates?     

Utah is a non-disclosure state. That means that when someone sells their home in Utah, the sold data is NOT recorded in the public record. Companies like Zillow and Cyberhomes usually rely on valuations from the county assessors office for the data they use to generate these values. Many of the assessors offices in Utah in 2008 were inundated with property valuation disputes, because of inaccurate assessments perceived by property owners; and rightfully so. Other states like California record sales prices in the recorded data, so it is easier for third party sources to gather more accurate sales information based on sales in a particular area, and come up with a more accurate valuation. But if you read comments about the accuracy from home experts in these areas they agree, the data is still woefully inaccurate.

Can These AVM’s come close to the value of my property?

The answer is yes. They can come close. But is that what you are looking for when you want to sell your home? Do you want to market your property based on a guess? A guess can cost you tens of thousands of dollars, or more! If you want entertainment, go to these sites and get your valuation; if you want to sell you home, call a professional that is experienced in your area. They will go inside your home and look at the amenities, see the street and neighborhood, compare other homes that sold, and how those homes and features compare to yours. Finally, they will come up with a value that is UNIQUE to you and your situation. Call your local Realtor and get the facts, whether you hire one or not, isn’t this a better way to go?

The Winner?

YOU!

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• Back To Basics – How Do We Make Appraisals More Reliable?
• Objective and Subjective Value

An SRES® designee can help you make wise decisions about selling the family home, financing, buying rental property, or managing the capital gains and tax implications of owning real estate, among many other issues. In addition to guiding clients to the right experts on tax laws, probate, estate planning, and a variety of equity conversion strategies, Seniors Real Estate Specialists® can offer clients relevant information on current trends in senior real estate transactions.

The SRES® Designation course seeks to instill each student with the knowledge and understanding of, and empathy for, 50+ real estate clients and customers, while educating students on developing the business building skills and resources needed for specialization in the 50-plus real estate market.

Your SRES Designee has:

• learned the application of federal laws for Housing for Older Persons Act (HOPA).

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A national program since 1998, the council now has Seniors Real Estate Specialists® in all 50 states and Canada and adds hundreds of new members every month.
SRES members are not qualified to give legal or tax advice and the SRES Council does not guarantee the accuracy of its members’ information. All clients are strongly urged to contact a real estate attorney or certified public accountant to obtain legal or tax advice.

seniors real estate specialist