Utah Real Estate & Mortgage Blog

What a busy month it has been. Buyers have decided to come off the fence and start taking advantage of this market. As you may already know, spring and summer is the busiest times of the year for real estate. I think that is only a small fraction why things have been so hectic lately. April just may be the best month I’ve ever had in the 7+ years I have been doing real estate.  Interest rates have stayed down to around 5% and with all of the free money out there, I’m just amazed at the deals I’m getting for my clients.

I think one of the biggest reason for the influx with Buyers is the $6,000 Utah housing grant for new construction homes. Buyers who don’t have a 3.5% down payment (required by FHA) can use this $6,000 as their down payment. For example, if you buy a home around the 190k range, you can get into the home with $0 out of pocket. I anticipate this grant to be gone in the coming 3-4 months as the state will run out of allocated funds.

Check out this scenario – A buyer is purchasing a new condo in Magna for $155k. He qualifies for the $8,000 (first time home buyer), $6,000 (new construction), and the $10,000 Magna city grant available. – $24,000 off of the already discounted price!!!!!! Get into a brand new condo for around $131k with NO out of pocket costs. There are grant restrictions, so contact us to find out what ones you do qualify for. Many cities have their own grant programs, this is just one example.

What a fun time it is! I truly love being in real estate and helping families buy and sell their homes. If you already have a Realtor, make sure they research the federal, state, city, county, and Veteran grants that may be available to you. If not, contact your Zoom Real Estate professional today at 801-999-8005.

What is really going on in the Utah Real Estate market?

We’re inviting you to a special workshop, co-sponsored by the Utah Chapter of the Financial Planning Association, and of course, zoomUTAH.com.

You’ll get valuable tips from various experts on such topics:

• Utah’s Economic & Real Estate Outlook
• Home Grants, Tax Credits and 100% Financing Options
• Improving Your Credit Scores
• Cash Flow Management & Cutting Your Debt Strategies
• Recovering your Stock Market Losses – Based on Last 9 Recessions

Be prepared to take a lot of notes! Whether you’re a first time home buyer or a seasoned real estate investor, you do not want to miss this free seminar.

To Register Visit http://www.zoomutah.com/events/

There is a great deal of opportunities in real estate grants available to thousands of citizens who, unfortunately, are completely oblivious to the fact that these government programs even exist, and a great portion of those who do know are unaware that they may qualify. There are federal, state and city grant programs available to those who qualify.

Have you heard about the new $6,000 Home Run Grant? The Home Run Grant is a mortgage assistance program that grants $6,000 to home buyers who purchase a newly-constructed, never-occupied, primary, single-family residence in Utah. You don’t even need to be a first time home buyer and this grant may be combined with the federal First Time Homebuyer Tax Credit for $8,000. There were 1,666 Home Run Grants available, and at the time of this writing, the available grants remaining sits at 1,416. I don’t anticipate this grant will last much longer than this summer, so don’t delay!

In addition, there are many other city grants available. Here is a quick view of some of the city grants available to those who qualify.

• Sandy: $10,000
• Kearns: $10,000
• Magna: $10,000
• Taylorsville: $5,000
• West Valley City: $5,000
• West Jordan: $5,000
• Utah County: $5,000
• Tooele County: $2,000
• Ogden: $5,000
• Davis County: $2,000

Whether you’re an investor or just looking for your piece of the American dream, now is the best time to get the best deals on real estate in over twenty-six years. Real estate grants can be a tremendous tool in achieving these goals. As a local Realtor®, I’d be happy to assist you in finding a home and assisting you in obtaining any grant programs available to you.

Call me today at 801-999-8005 to discuss what grant programs may work for you!

One of the most critical decisions for a Buyer, when one is under contract to purchase a home, is whether or not to have a professional inspection performed on the property by a licensed Inspector. As far as the Real Estate Purchase Contract is concerned, this topic comes under what is termed as the Buyers Due Diligence.

The items which typically are investigated for their integrity by a professional inspector relate to an evaluation of the physical condition of the property. The items are not limited to but do include the following: the condition of the roof, walls, and foundation, the condition of the plumbing, electrical, mechanical, and heating and air conditioning systems and fixtures, and the condition of all appliances.

The cost of a professional inspection varies depending on the complexity of the inspection and the square footage of the property. However, typically a Buyer purchasing a single family residence can expect an out-of-pocket cost of $300-$400 for the inspection. Most inspectors will provide a very comprehensive written report of the findings of the inspection as well as beneficial advice for ongoing maintenance. Many inspectors will provide photographs in the report which focus on any problem areas.

A professional inspection can provide invaluable information and peace of mind when making one of the most significant purchases one will make. However, for many of us, $300-$400 is not an insignificant out-of-pocket expense. Therefore, in the past, some Buyers have justified the forgoing of an inspection based on the fact that the Real Estate Purchase Contract contained a number of Seller warranties which survived closing. Others were content to have an astute friend or relative look the property over, rely on their own conclusions, or just hope that nothing dramatic will surface in the future.

However, the Utah Division of Real Estate has made changes to the Real Estate Purchase Contract effective January 1, 2009. These changes warrant serious consideration to a thorough inspection and would be deemed an important and wise investment. The Seller warranties which formerly survived the closing of the contract no longer exist! The Buyer now acknowledges and agrees in reference to the physical condition of the property, that the Buyer is purchasing the property in its “As-Is” condition without expressed or implied warranties of any kind! Therefore, it is incumbent on a Buyer to take advantage of the Due Diligence period by completely inspecting and evaluating the condition of the property to determine if one should elect to proceed with the purchase of the property or not.

If a Buyer relies wholly on his/her own judgment, the tendency is to locate problems which are easily observable and cosmetic in nature. Some of the most serious and potentially expensive issues are not easily visible. A professional licensed inspector has the expertise, experience, and equipment to detect issues which could later be unpleasant surprises. Therefore, even though it is not inexpensive and is an out-of-pocket expense, we highly recommend as part of your Buyer Due Diligence, that to invest in an inspection by a certified, licensed inspector, is money well spent.

After seven great years with another brokerage, we have decided to open Zoom Real Estate.

Although we just opened our doors in December, this has been in the planning phase for over two years. As I write this letter I’m glancing at my notes that I took when we started to discuss opening our own real estate brokerage. One of the first things that we discussed was “Why do we want to open a brokerage?” The answer is very similar to why we built zoomUTAH.com.

Empower the consumer, build a quality reputation and provide unmatched service to our clients.

How have we empowered the consumer?

• We were the first website in Utah (besides the public MLS site) to provide full postal addresses for all listings. This was always the Realtor’s “bait and switch” to get buyers to call them to show them the home. We let the cat out of the bag and now most competing sites provide addresses.
• We were the first real estate site in Utah to utilize mapping technology for listings. The accuracy of our map placement even today is the best in the business.
• We provide as much data as we possibly can with each listing. The best research tools available to save you time.
• We allow home sellers to list their home for free on zoomUTAH.com. We even wrote a 6 step guide on how to sell a home on your own.

Why do we do all of this? We are after all Realtors that are trying to solicit buyers and sellers. The answer is simple, credibility! We have always believed that if we show value to the consumer first, they will come to us when they have any real estate needs. Consumers are far more educated with the information available today, and they demand a different type of real estate brokerage to depend on to buy and sell real estate.

We plan on taking the same stance with our brokerage. Zoom Real Estate is not your traditional brokerage; we are a marketing company that specializes in real estate. More than ever, creative marketing is what sells homes for top dollar. We feel no other brokerage can match the service and tools that we provide. We are very passionate about our industry and hope you see our signs all around town.

If you are looking to buy, or sell, we’d love to hear from you!

Zoom Real Estate
801-999-8005

How many would enter a courtroom to defend oneself, knowing you would be going up against a trained prosecutor? Or how many would go into that same courtroom and ask the Prosecuting Attorney to defend you at the same time he or she is prosecuting you? Sound farfetched? There are some who wouldn’t even consider fixing their own plumbing or electrical problem without consulting a licensed professional in the field.

And yet, when it comes to possibly the most expensive and important purchase of one’s life (a home) suddenly the same person who wouldn’t think of handling their own plumbing issue is willing to risk it all by becoming their own do-it-yourself Realtor. Buyers expect the Listing Agent, who has a fiduciary responsibility to the Seller, to represent them with the same care and concern. It can’t and doesn’t work that way.

Why would any Buyer consider being unrepresented or allow oneself to be represented by the Listing (Seller’s) Realtor? The typical answer, I receive to this question, is “well, can’t I save money, or buy the house for less, if I don’t have my own Realtor?” The answer is no, at least not legally. That response indicates an incomplete knowledge of the Real Estate transaction process and a lack of awareness of the various and separate contracts involved.

When a Seller employs a Real Estate professional to sell his/her property, a contract called a Listing Agreement is drawn up. The parties to the contract are the Seller and Listing Brokerage. The future Buyer is not party to this contract in any way. This contract states all of the contractual obligations between Seller and Listing Brokerage. In this Agreement, the Seller has agreed to pay the Listing Brokerage a specified, negotiated Brokerage fee. Many times, the Listing Brokerage will offer and advertise to share a specified portion of this fee with the Brokerage who brings the Buyer. However, if a Buyer Broker is not involved, the entire Brokerage fee is kept by the Listing Brokerage. For a Buyer to ask the Listing Agent to alter that fee or in some fashion pay it to the Buyer would be interpreted as an illegal and unethical “kickback” and subject to legal action.

Also, by way of the Listing Agreement, the Listing Agent accepts a fiduciary and legal responsibility to represent the Seller to the best of his/her capabilities, and obtain the best price he or she can for the Seller.

The contract to sell the property is the Real Estate Purchase Contract (REPC). The parties to this contract are the Seller and the Buyer but not any Real Estate Brokerage. Any Brokerage fee being paid by a Seller is not discussed nor is it in any way a part of this contract. Incidentally, the Real Estate Purchase Contract has been revised, effective January 1, 2009. Many feel the new contract places more due diligence responsibilities on the Buyer than even before. The new contract’s former Seller Warranties in section 10.2 of the REPC have been removed. Wouldn’t you agree that before purchasing a home, it would be prudent on the part of a Buyer to not only have one’s own representation, but to ensure that his/her Realtor is educated in all of these critical changes?

If you are thinking of buying a home, I’d love the opportunity to assist you. Throughout your search, I will do my best to make an often stressful process run as smoothly as possible. I will also put my expertise to use in helping to negotiate the best deal for you.

Are YOU eligible to receive a $6,000 Home Run Grant?

That’s right, a grant you never have to pay back!

You could be… It’s easier then you may think.  However, you must hurry before the 1,666 allotted grants are gone.

(Following is taken directly from the Home Run Grant administrator’s website)

What exactly is the Home Run Grant you ask?

The Home Run Grant is a mortgage assistance program that grants $6,000 to home buyers who purchase a newly-constructed, never-occupied primary, single-family residence in Utah.  The Home Run Grant is funded by the Housing Relief Restricted Special Revenue Fund, established by Utah Governor Jon Huntsman, the Utah State Legislature, and Utah Housing Corporation.  

When is the Home Run Grant program being launched?

Governor Jon Huntsman signed Senate Bill 260 on March 19, 2009 to authorize Home Run Grants.

Who is eligible to receive a $6,000 Home Run Grant?

• Home buyers must meet the following income restrictions:
  • Single person, $75,000
  • Married couple, $150,000
  • If more than one unmarried person is taking title to the Eligible Home, each such single person is subject to the $75,000 income limit.
• Home buyers must occupy the purchased home as a primary, permanent residence no later than 30 days after closing.
• If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less.  Cash buyers can also qualify by contacting Utah Housing Corporation directly.
• The Home Run Grant Program is effective for home purchases closed after a Home Run Grant Commitment has been issued for that specific transaction. Unfortunately the funds may not be used for homes purchased without the Home Run Grant Commitment.

How does a home buyer get the Home Run Grant funds?

To get a first-come, first-served written commitment for the Grant, home buyers must:

• Enter into a written contract to purchase a newly-constructed, single –family home.
• Contact a lender to obtain final underwriting approval for any needed financing.
• Have their mortgage lender furnish required documentation to Utah Housing Corporation for the Grant.
• Utah Housing will reserve the $6,000 Grant for 30 days.  

What homes can be purchased with a $6,000 Home Run Grant?

Homes must be recently-constructed, single-family residences that have a Certificate of Occupancy or a Final Inspection.  They cannot be previously-occupied.  Eligible property types include single-family detached homes, condominiums, planned unit developments (PUD), twin homes, town homes and manufactured homes permanently affixed to a foundation.

How does a home buyer apply for a $6,000 Home Run Grant?

Home buyers should tell their home builder, realtor and mortgage lender that they want to apply for a Home Run Grant. Mortgage lenders are the key link between the home buyer and the Home Run Grant. The mortgage lender assists the home buyer to provide necessary information to secure the grant from Utah Housing Corporation.  The home buyer does not work directly with Utah Housing Corporation (unless it is a cash buyer).     

What type of loan can home buyers use to purchase the home?

If home buyers need a mortgage loan, it must be a fixed interest rate loan with a term of 30 years or less.  Loans may be obtained from any lender qualified to make mortgage loans under Utah law.  Examples of qualifying loans include:

• Conventional
• FHA, VA, or Rural Housing
• Utah Housing Corporation’s FirstHome and FirstHome Plus 

What mortgage lenders can assist homebuyers to secure a $6,000 Home Run Grant?

Any mortgage lender qualified to make mortgage loans under Utah law can assist home buyers to secure the Home Run Grant.

Do I have to be a first time home buyer to get a Home Run Grant?

No.  Home Run Grants are available to all home buyers who meet the income restrictions of $75,000 for singles, $150,000 for couples and, if more than one single person takes title, the $75,000 limit applies to each such single person. 

Can the $6,000 Home Run Grant be combined with the new $8,000 federal tax credit?

Yes, if a home buyer is a first-time home buyer and meets the independent criteria of both the federal and Home Run programs, they may take advantage of both.   The $6,000 Home Run Grant is available to both those who are first-time home buyers as well as those who previously owned a home.  The  $8,000 federal tax credit is available only to first-time home buyers.

How many Home Run Grants are available to home buyers?

A total of approximately1,600 grants are still available. Each grant is $6,000.  Only one grant can be used for the purchase of each home.  Home Run Grants are distributed on a first-come, first-served basis to qualified home buyers.  The approximate number of remaining grants will be posted on the UHC web page at www.utahhousingcorp.org.

How are Home Run applications submitted?

Home Run applications are submitted through a home buyer’s mortgage lender.  Home buyer applications cannot be made directly to Utah Housing Corporation unless the Buyer is paying cash for the Home. 

Is the To Home Run Grant taxable?

The Home Run Grant may be taxable as income under federal and state tax laws.  UHC has requested a ruling from the Internal Revenue Service (IRS) about whether or not a Home Run Grant will be taxable.  UHC does not give tax advice and home buyers should review the ruling and other pertinent tax information in connection with the preparation of their 2009 tax returns.

To apply for this grant or ask additional question who can I call?

Call us now at 801-266-2466 to learn more!