Utah Real Estate & Mortgage Blog

Sometimes a deal comes around that needs to be shared with everyone.  If you are looking to own in Murray, UT…we have the place for you.  The price for this condo is $30,000 under the market value!  Your mortgage payment, taxes, and HOA fee would be approx $550 with NO MONEY DOWN.  The HOA fee includes gas, water, sewer, trash, and community maintenance.  This unit qualifies for the OWN IN MURRAY down payment assistance program.  You may be eligible to receive $5,000 towards the purchase of this condo.  Stop RENTING and contact me today to find out if you can Own your own place.  Mortgage rates are in the low 4% range!  Don’t miss out.
Call Brandon at 801-999-8084.

Contact Zoom by noon on July 28th to request discounted tickets to the Salt Lake Parade of Homes.  Call us at 801-999-8084 and we will give you 2 for 1 passes to this event.

The Salt Lake Home Builders Association is hosting the 64th Annual Salt Lake Parade of Homes™; the longest consecutive running Parade of Homes in the United States.

The Parade will run from July 30 – August 15, including Sundays and will feature two different home categories.

July 30 – August 15, 2010
Open Daily 11:00am – 9:00pm, including Sundays.
Regular Ticket Price is $10 each

For Utah families in these current economic times, the dream of owning a home seems to be moving farther away. With expensive closing costs, a high down payment and other fees, some families don’t have the extra cash to get into a home. That’s when the Community Development Corporation and the Own in Murray program steps in to help.

In 2009, Murray City approved $25,000 from Community Development Block Grant funds to assist people who want to purchase a home in Murray. Qualified applicants received between $5,000 and $7,500 to help cover those extra out-of-pocket costs. For the current fiscal year, $49,000 has been set aside for Murray’s down payment assistant program.

Funding for the program is limited, so applicants are being encouraged to apply as soon as possible. Applicants must submit all required documentation, meet eligibility requirements, have a good debt-to-income ratio and meet income requirements depending on the number of family members working and living in the home. A chart listing income eligibility as well as a link to the application packet can be found on the Murray City website at www.murray.utah.gov.

Most down payment assistance loans have a zero percent deferred interest rate and for residents who stay in the home for 15 years, half of the loan is forgiven.

“I think we will be able to do seven loans this year,” Harper said. “If someone is looking to purchase a home, they should contact a Realtor with Zoom Real Estate for more information.”

In addition to the Murray City program, there are programs to help buyers in Utah County, Davis and Salt Lake County.  The money will not last long.  Contact Brandon today at 801-999-8084 to learn more.

FHA mortgage insurance premiums approved to triple in 2010.  Last week, the House of Representatives gave the FHA power to raise the monthly mortgage insurance premiums it charges to its borrowers.
Currently, monthly mortgage insurance premiums are 0.55% of the unpaid loan balance, divided by 12.  The recently approved Federal Housing Administration Reform Act provides for an increase in monthly premium of up to 1.55 percent.

Despite the ability to charge 1.55 percent, FHA officials say an increase to 0.90 percent would be sufficient to self-insure its loans.

Assuming a $200,000 mortgage, the math to a homeowner looks as follows:

* Current Premium (0.55%) : $91.67 monthly mortgage insurance premium
* Expected Increase (0.90%) : $150.00 monthly mortgage insurance premium
* Maximum Increase (1.55%) : $258.33 monthly mortgage insurance premium

A increase in monthly mortgage insurance premiums will reduce home affordability for buyers in Utah.   If more of your monthly payment is going towards the mortgage insurance premium, then you have less money to pay towards the home mortgage.

The bill awaits companion legislation in Senate and final approval into law, but considering the House’s vote last week, it could happen rather quickly.  If you’re planning to buy or refinance a home using an FHA mortgage, you may find that waiting to take the next step could reduce how much home you can afford to purchase.

According to the Wall Street Journal, U.S. Consumer Reports, Money Magazine, State Supreme Courts, and many leading consumer groups…A buyer who relies on the listing or seller’s agent does not receive the same degree of legal protection as that afforded by an agent acting solely on behalf of the buyer.

For argument’s sake, suppose you see a Salt Lake property that is “just perfect” and you don’t have an agent yet. Do you make an offer with the listing agent to save the money of not having a buyer’s agent or to negotiate a better deal with the seller?  (No, I’ll explain in a moment – nothing is saved)

Most Utah real estate deals have two agents involved. The listing agent markets the house and represents the seller. The buyer’s agent represents the buyer. The seller pays the same commission to the listing broker REGARDLESS if there is a buyer’s agent.  If only the seller’s agent is involved (that is, he or she finds the buyer and represents the seller) then such an agent gets 100% of commission instead of 50%.

Listing agents who show you homes don’t represent your interests. They work for the seller, and their object is to sell the house at the highest possible price. If you haven’t figured out the trick by now, I’m telling you that you do not save money when you go through the listing agent.

Before the home is listed for sale, the seller has already contracted a fee with the listing agent.  This fee is not reduced if a buyer decides to not have representation and use the listing agent to make an offer.  Not hiring a buyer’s agent may cost you thousands. If a home was priced at $250,000, you may be overpaying by $25,000 or more on a typical sale if you use the listing agent! You pay nothing for my services as a buyer’s agent. Remember, the seller has already contracted a fee with the listing agent. The listing agent will split part of their fee with me.

When a buyer goes through the listing agent to purchase a home, this is called limited agency.  What is limited agency?

A Limited Agent represents both seller and buyer in the same transaction and works to assist in negotiating a mutually acceptable transaction. A Limited Agent has fiduciary duties to both seller and buyer. However, those duties are “limited” because the agent cannot provide to both parties undivided loyalty, full confidentiality and full disclosure of all information known to the agent.  For this reason, a Limited Agent must remain neutral in the representation of a seller and buyer, and may not disclose to either party information likely to weaken the bargaining position of the other; such as, the highest price the buyer will pay or the lowest price the seller will accept.

If you accept a limited agent, you are accepting you do not want the best price on a property.  In Utah, it is common for buyers’ agents to negotiate price/terms at 5%-10% less than list price.  Do you want to be limited when negotiating?   In simple terms, the sales commission to be paid has already been agreed upon in writing when a home is listed with a broker for sale.  The sales price has yet to be determined.  Why have a limited agent handle your side of the sale when they cannot disclose the lowest price the seller will accept?

Why should a buyer have their own representation?

* No-cost to the buyer.

* To negotiate the best terms and price on your behalf.

* For your protection.

What are your rights as a buyer? What does the seller warranty? What if somebody else makes an offer on the property as well? How do you get your earnest money back if things go wrong? Under what circumstances can you get your earnest money back? What if the home inspection reveals unpleasant surprises? What if your lender can’t get your loan together on time? When can you legally take possession of the property?

Don’t leave money on the table and go through the buying process without representation.  Hire a Zoom Real Estate buyer’s agent today.  “You can’t have partial loyalty. An agent either works for you or works for someone else.”

What should a home buyer do?

Speak to a Zoom Real Estate buyer’s agent BEFORE you go out looking at homes.  Secure your representation first, and you won’t have to concern yourself with accidently being represented by a listing agent.  We have buyer’s agents ready to represent you in all areas of UTAH.   If you are looking to buy real estate in Logan/Cache Valley, Ogden/Davis & Weber county,  Salt Lake county,  Utah county or even St George give us a call.

Contact me today to discuss hiring me to represent you as a buyer’s agent.   

Call Brandon / Zoom Real Estate (801) 999-8084.

Is this a realistic headline?  No.

Everybody is looking for a deal, so there’s a lot of competition in purchasing distressed or bank owned properties.  Good deals often average less than 7 days on the market because they have been priced to sell fast.  There are many buyers who are pre-approved or have cash in hand, waiting for new home listings to be announced.  Don’t miss out because you are not prepared for what homes are selling for in the zip code you are searching.

What do I mean?

Let’s talk about unrealistic home buyers.

Naturally everyone wants to get the most home they can for the least amount of money. This is in opposition to the home seller, who wants the most money for their home. This conflict is one of the things that make real estate sales challenging at times.  When the market starts a shift in an opposing direction, this conflict stands out.  Starting back in 2006 the shift in Utah real estate was starting to occur.  It has been almost four years and it has been our experience that home sellers in Salt Lake, Utah, Davis, Weber, and Washington counties are becoming much more realistic.

While it used to be quite common to hear sellers say things like, “But my neighbor’s home sold for “x” dollars last year!” sellers seem to be getting more realistic when it comes to their home’s value.  They are letting go of the attitude that their home needs to sell for what their neighbor sold for the year before.  A year is almost an eternity in the Utah real estate market.

Home buyers on the other hand seem to be losing their grip on reality.  Yes, there was a time when buyers were able to get significant savings off of the list price. While there is room to negotiate, we have not seen low-ball offers succeed in our local markets.   We often negotiate price discounts up to 10% – 20%, anything more is unrealistic in Utah.   Our market has stabilized from past volatility.

Here are some examples of recent conversations we have had with Utah buyers:

* We’d like to offer $40K under list price on a $175,000 home.

* We just short sold our home last month and are looking to buy now.

* The bank is out of state and doesn’t  know what the property is worth, let’s offer $100,000 less.

* I need a smoking deal on a bank owned home or short sale. I’m willing to pay 60% of list price.

* I refuse to pay a dime over list price on a short sale or bank owned home.

The answer for all of those comments above is “you can’t do/get/buy that”.  You might be asking yourself “why would I pay more for a short sale or bank owned home?”  Because there are multiple offers from buyers who are all looking for a good deal.  These homes are typically priced below market value to induce multiple offer situations.    This is why these homes often sell for more than list price.

Much of this type of thing comes from simply not understanding what is happening in the real estate market. And by “the real estate market” I am not talking about what you hear on network news or even your local evening news / newspaper. You need to understand what the market is doing in the specific area you are interested in. The term “real estate market” is just too broad and real estate is local.

Our agents at Zoom would be happy to provide you at no charge, specific pricing statistics on local Utah zip codes or a specific property.

As a home buyer, you may not know the details and current trends about your local real estate market. Most people buy a home every 7 – 10 years. We are up to our necks in this stuff every single day. This is what we do for a living and helping people understand the details of their local real estate market is what we get paid for.

Give us a call today to discuss your local market. 

You may reach Brandon, Zoom Real Estate Realtor at 801-999-8084.

Don’t let your home go to foreclosure.  Zoom Real Estate can help you sell your home and you may be eligible to receive cash back!

Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals.  In the past there was little incentive to any of the parties to successfully “short sale” a home.  Now, the banks, mortgage investors, second mortgage holders, and home sellers will receive financial incentives to short sale their home and avoid foreclosure.

Under the new Home Affordable Foreclosure Alternatives  (HAFA) program, borrowers will earn a $3,000 “relocation incentive” and servicers will get $1,500 for handling a short sale.

The investors who actually own the mortgage notes will get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders. And, finally, those second lien holders will receive up to $6,000 for releasing their claims.

Another big change is that the process should speed up now as banks that are part of the program must approve or deny an offer in 10 DAYS!

The Federal government instituted HAFA, which is intended to streamline the short sale process, at least for transactions in which the home sellers have mortgages owned or guaranteed by Fannie Mae or Freddie Mac.

While most HAFA rules affect only the home sellers and their lender, a few of the streamlined rules impact buyers. They include:

• Buyers must present documentation of funds or a pre-approval letter from a lender with their offer for a short sale; sellers need to present this to their lender within three days of receiving the offer.

• Lenders must approve or deny the offer for the home within 10 business days of receiving the offer.

• Settlement must take place within a reasonable period of time after the offer is made, but the lender cannot require a closing earlier than 45 days from the date of the sales contract unless the home seller agrees.

• Buyers cannot sell the property again for 90 days. This is meant to prevent investors from “flipping“ homes by purchasing at a low price and selling at a quickly inflated price.

• Short sale transactions through HAFA must take place at “arm’s length,” meaning the home sellers cannot sell the property to a relative or anyone else with whom they have a closer personal or business relationship.

Give me a call today to find out if you are eligible for this new government program.   Call Brandon with Zoom Real Estate at 801-999-8084. The call is free and there is no obligation.

While 3.5% down is still available to home buyers who use FHA financing, the  Federal Housing Administration has announced changes to the popular home buying program.  The changes are being implemented to increase the FHA’s income and reduce the agency’s risk on these loans.   There was talk before this week’s announcement that the minimum down payment would be increased to 5% down.  For now, the minimum down payment will remain the same.

Announced FHA Policy Changes:

Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending.
Up Front Mortgage Insurance is currently 1.75% of the loan amount.   After April 5th 2010, this is going to increase to 2.25%.  For a $180,000 purchase, this would cost a home buyer about $900 more.  In addition, FHA may increase the monthly mortgage insurance premiums later in the year.

Reduce allowable seller concessions from 6% to 3%.
Buyers that want a seller to pay their closing costs will be limited to a maximum concession no greater than 3% of the sales price.  This change is expect to occur by Summer 2010.

Update the combination of FICO scores and down payments for new borrowers.
Home buyers that do not have the required minimum FICO score may increase their down payment to 10% to compensate for the lower score.

If you have questions please call Brandon at 801-990-7435.

Do you need to sell your home for less than the amount owed on the mortgage?  Have you heard of the “horror” stories regarding short sales?  Having the “right” Utah real estate agent represent you through the short sale process is critical to protecting your best interests.  What is a short sale?  Learn more about short sales by clicking here.

Zoom Real Estate has a Short Sale team that has experience in working with sellers who need to sell their home for less than the mortgage owed to the bank.  The short sale process is highly specialized.  It is very important to have a Realtor who is experienced in working with this type of sale.  Having the right contacts at the banks, knowing what paperwork to submit and how to market your home for a quick sale is important.   The right agent will know who to call at the bank, what paperwork to submit, proper timelines and how to negotiate with the bank.

zoomUTAH.com has partnered with a LOCAL law firm CC Brown Law to provide a FREE ATTORNEY CONSULTATION to any homeowner who is experiencing a financial hardship and considering a short sale.  If you have questions and want to know your legal options, please give Brandon Hacker a call (801) 990-7435 to schedule your free consultation.   There may be other legal options available to you other than a short sale.  Other options include loan modification, forbearance or other acceptable workout solutions.  Partnering with a local Utah law firm allows our clients the peace of mind that they are exploring all legal defenses.

Do you have questions such as:

What happens if I don’t sell our home through a short sale?

How will a short sale affect my credit?

Does the short sale process take one year or more?

Can the bank come after my assets or income after a short sale?

As a short sale specialist, I have have worked on over 300 files with the bank! If you need to speak to an expert that will give you straight answers on the tough questions, I am the agent you should call.  I would be happy to discuss your options in selling your home.   Call me direct at (801) 990-7435.