Written by Jan Wilkinson

Commonly asked Real Estate questions

1. Is now a good time to buy property?

Is it less expensive to own a home or to rent a home? The answer to this question helps families make the decision whether or not to purchase a home, I would say this depends on your circumstances and whether you are planning to live in the property long term or not, and by long term I am thinking 5 years or more, if it is a long term plan you will find it less expensive to buy a home as opposed to renting.

If you listen to all the doom and gloom about the economy you could find making this decision extremely difficult, however there are experts telling us that if you want a great deal with great interest rates now is the time to act, from my experience I have seen many of my Clients who previously rented getting into properties paying similar payments to their rent and in some cases paying less, being able to choose a preferred subdivision and having the long term benefit from being able to sell the property when the property market takes its next cycle.

2. I have a low credit score but a good paying job, I would like to buy a home, how do I solve this problem.

The best thing for you to do is to contact a qualified loan officer in your area and seek their advice. If your scores are low there may be information on your report that is wrong and needs to be corrected. The loan officer will be able to advise you on steps to improve your scores and the time frame which will help to give you some hope of when you will be able to buy once you complete all the steps.

3. What does under contract mean?

Under contract means that the seller has accepted an offer,when an offer has being signed by both the buyer and seller, it becomes a legally binding contract.

There are other terms that describe the same situation which are Pending and Contingent; Contingent means that not all conditions have yet been met,  an offer could be contingent upon financing approval, a satisfactory home inspection or the sale of another home, they are just a few examples.

4. We are planning to retire in the near future & wonder if we should pay cash for a house.

I would recommend you seek the advice of an account or investment banker, because the question might be better answered once they have reviewed your entire financial situation, as your investments need to be analyzed to make the best decision.

My thoughts: Once a person retires sometimes their monthly income drops below the acceptable level to make payments and they no longer qualify to buy a home, please consider if this would be the case for you? If so, you may be required to make a larger down payment to make your income match the payment. Interest on a mortgage is the lowest right now so if you need to finance, it’s a good time to do that. Seek advice on whether your money is better off in an interest bearing account, as you may be better off leaving it there.

5. Buying an investment property – smart or foolish?

If you have money available in this property market please seek the advice of a Realtor as with a little research and buying smartly, you will find Real Estate purchased as an investment keeps on giving. With your Realtors assistance find a rental that cash flows from the day you buy it, then it will only get better from there, as rents go up, building values go up over the long-term, and you will get cash flow on a monthly basis and a lot of that cash flow is sheltered by depreciation so check out your options to see if this is a good option for you and your financial situation.

Written by Steve Nelson  

Being a good real estate agent is not an easy thing. As a buyer or seller finding a good real estate agent can feel even more difficult then being a good agent. With a little indulgence I hope to explain how to help both agents who want to be successful and buyers/sellers in picking a good agent.

I doubt that there are many professions that have a higher stress level then that of a real estate agent. In some professions it my be stressful at work but one can then retreat home to their family and leave the worries of work behind. There are different kinds of agents and some may find it easy to leave work behind them, but for me it is very difficult. My personal desire is to make sure people are happy and to never let someone down, is it at times overwhelming. Purchasing a home for most people is the largest financial transaction they will ever make. And if something goes wrong the emotional and financial devastation can be significant. So in order to take good care of my clients it often requires me to work evenings, weekends and holiday’s. It is impossible for me to leave work at work. Times when most people get to spend with their families or recreating an agent spends with taking care of their clients. Even when I try to take a vacation I can’t really relax because I spend most of my time still worrying about what I am not taking care of. This reality can also add stress to an agent’s life because it is even worse to feel like you let your spouse or child down by not being there when they need you. I would submit that if you’re reading this as an agent and can relate, you are a good agent and have the foundational key to being successful. Add some good training and hard work and the sky is the limit in building a real estate business. To truly care about people is what makes a good agent. Now to stay sane and in the real estate business you have to find ways to deal with the stress but that is a topic for another day.

So now if you are a buyer or seller how does this relate to you. The real estate industry has a very low cost of entry. To become an agent you have to fill about 100 hours of desk time and pass a state licensing test. It can be accomplished in about 2 week and will cost you about 2K and off you go to start selling homes. Many get into the business seeing big dollar signs. After all if you sale one house for 200K you make an easy 6K right. So by selling one house a month you can make a pretty good living. (There really are costs and it is much harder to get a sale then you think but if you haven’t done it, it does seem easy) There are many agents that are very successful in terms of selling properties, whose main motivation is making money. My question is does selling lots of property and making lots of money make them a “good” agent and someone you want to work with. I would suggest no. Again keep in mind that if something goes wrong in a real estate transaction the emotional and financial devastation can be significant. So do you want an agent who just wants to close the sale or do you want an agent who will lose sleep at night if they don’t do what is best for you. So when picking an agent be careful to ask questions that will get them to share personal in site into who they are, not just how much property they sale. A good agent who truly cares about you and is committed to taking care of you will consistently out perform an agent driven my money all day long. Yes knowledge and hard work are still important but if the right foundation doesn’t exist in the agent you choose to work with the risk you are taking is not worth it.

Written by Laura Wise

Why Buy Now?   It is a buyers’ market!  Are you ready to buy your first home?

Are you looking for a larger home?   Or are you ready to down size?  It is a huge decision that can be stressful and full of uncertainty. But if you’re ready, now is the time to move, before circumstances change and the market takes a turn that is less favorable to buyers.

Why is NOW a good time to buy a home? Here are two reasons you should consider:
Interest rates are still at all time lows.  However, experts predict they won’t stay this way. If you can get in now before they begin to climb, you can keep your monthly payments low. For those who are new to home ownership, your mortgage payments may be less than rent.  And for those who are considering moving to something bigger or smaller, I think you’ll be surprised at what your current equity will buy you.

There is a surplus of homes on the market. There are still some foreclosures in the area, and the sellers who need to sell have priced their homes competitively — although, just like with the interest rates, prices could start to rise at any time. I have already seen the prices on the rise in many neighborhoods.

Buying a new home is an exciting time, Now is a great time to get a great deal.

Written by Scott Bird    

Today, Fannie Mae expands HomePath® Online Offers nationwide. The system is designed to collect offers and to manage the offer submission process on properties listed on HomePath.com. All offers in every state are now required to be submitted through the HomePath Online Offers system on HomePath.com.

Submit all Fannie Mae offers online at www.homepath.com.

Features

o An easy to use, self-service offer submission system, accessed through HomePath.com
o A transparent offer process that keeps Selling Agents (agents representing buyers) informed of the status of their clients’ offers
o Improved communication between the Selling Agent and the Listing Broker regarding offers

Registration is Required for Selling Agents on HomePath.com

Selling Agents who wish to make an offer on a property are required to have an agent account on HomePath.com. Please refer selling agents to training materials on HomePath Online Offers Resources Page for instructions on submitting their offers or the Online Offers Customer Support Center 1-866-218-4446.

First Look(TM) Initiative

Occupant buyers can have their offers considered before competing with investor offers. You can track the status of the listing period and countdown clock by visiting www.homepath.com. These are the basic guidelines for submitting offers.

o         Listing Days 1-3: No Offers Negotiated
o         Listing Days 4-15: Negotiate only offers from owner occupant, public entity or designated partner of a public entity.
o         Listing Days 16+: First day to enter into negotiations with investors no using public funds.

TIPs for Submitting Complete Offers –

Fannie Mae has strict requirements when negotiating and accepting offers. These tips will help reduce potential problems.

o         The local or state-promulgated contract signed by all buyers.
o         A completed Fannie Mae Real Estate Purchase Addendum signed by all buyers.
o         Prequalification letter required before Fannie Mae can accept the offer, but not required for submission.
o         An earnest money deposit (unless waived for public entities). A copy of the check is sufficient for presentation. (Earnest Money must be 10% minimum for CASH offers)
o         Owner Occupant Certification Form if buyer intends to occupy property as a primary residence. Must be signed by the occupying buyer, selling agent, and listing agent.
o         Fannie Mae does not accept electronic signatures.

Mortgage Prequalification Letter or Proof of Funds

Prequalification includes, but is not limited to, review of:

o         A credit bureau report for credit worthiness
o         Recent bank statements for verification of sufficient funds for down payment and closing costs
o         Most recent paycheck stubs for year-to-date income verification
o         Maximum loan qualification based on monthly-income-to-debt ratios

Earnest Money Deposit

Fannie Mae requires evidence of earnest money, such as a copy of the check, accompany the Offer Package. When determining the appropriate earnest money deposit, consider the following criteria:

o         The amount is reasonable and customary
o         Fannie Mae requires at least 10% (but not less than $1,000) as an earnest money payment on cash transactions.
o         Fannie Mae waives earnest money payments for public entities and only requires $500 from owner occupants utilizing NSP funds.
o         The earnest money deposit must be made payable to the designated Fannie Mae settlement agent. If the settlement agent does not accept earnest money, then the check is made payable to the listing broker.
o         The earnest money is only deposited with a contract fully executed by all parties in accordance to applicable law.
The Utah Real Estate Purchase Contract must include the language-

“Pursuant to Section 28 of the Real Estate Purchase Addendum, this document is subject to all terms and conditions set forth in the Real Estate Purchase Addendum.”

Submit all Fannie Mae offers online at www.homepath.com.

Fannie Mae – Instructions for Submitting Offers

Written by June Holder

What or Who Decides Your Credit Score?

Part 1

Just exactly what or who decides your credit score?  Where does this information come from?  It seems so complicated……

These questions come to mind of all people who start to delve into the credit world.  Sometimes it can be so confusing.  I have found some help through researching many of our different avenues of real estate; and have come up with something that I give out to many of my new clients.  It helps in understanding this credit score thing a little better.  The information below was provided by Fannie Mae Foundation.

Credit scores range between 200 and 800, with scores above 620-660 considered desirable for obtaining a mortgage.  The following factors affect your score:

1. Your payment history:  Did you pay your credit card obligations on time?  If they were late, then how late?  Bankruptcy filing, liens, and collection activity also impact your history.
2. How much you owe:  If you owe a great deal of money on numerous accounts, it can indicate that you are overextended.  However, it’s a good thing if you have a good proportion of balances to total credit limits.
3. The length of your credit history:  In general, the longer you have had accounts opened, the better.  The average consumer’s oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
4. How much new credit you have:  New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
5. The types of credit you use:  Generally, it’s desirable to have more than one type of credit–installment loans, credit cards, and a mortgage, for example.*This information is copyrighted by Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation.  www.homebuyingguide.org

Next month we will learn what we can do to improve our credit scores.  Great advice!!

Written by Laura Wise

Just your luck — you have to sell your home in winter, the slowest and dreariest sales season of all …. According to the National Association of Realtor,

First the holidays and then the weather puts a chill on home shopping, many perspective home buyers are too busy and too cold.  Don’t dismay, just as you have to sell there are those who have to buy.  Make your house the one they buy…. HOW, here are a few pointers:

#1 Call me, Laura Wise, Associate Broker 435-327-1333

#2 Price your home accordingly, If your house is priced right to begin with, it will sell to that buyer who has seen the rest and wants the best.  I will supply you with a current market analysis.

#3 Are you ready? Taking care of needed maintenance and repairs is obligatory in any season. A thorough cleaning and getting rid of clutter are equally essential. Maintaining the yard and exterior appearance will improve the curb appeal which can make the difference between deal or no deal.

#4 Warm and inviting – Keep that thermostat at a reasonable temperature, or make sure your agent turns it on before the buyers arrive.  Staging, it will sell your home.  Both are additional costs, however, cold and empty or warm and inviting, which would you buy?

#5 Clear paths it might seem obvious to keep sidewalks and driveways free and clear of ice, snow and leaves. Many homeowners who have already vacated their houses have moved on, you need to make sure these details are maintained.  It’s important for reasons of safety, aesthetics and, once again, competition. A foreclosed house probably won’t have walks and parking spaces shoveled out.  I can’t tell you how many times I have pulled up to a house with potential buyers, where the walks are covered with debris and the yards are not maintained, and they have said “not interested,” without getting out of the car.

#6 Good lighting, during the winter a home may appear dark due to less daylight.  Fight the gloom. Turn on the lights, keep the electricity on, and open the window coverings, let natural light pour in. Encourage showings during high-daylight hours. Make sure you have enough outside illumination for drive-by visitors in the evening, keep the home well-lit even when you’re not there.

These are the essentials, No need to expose yourself to a high pressure salesman or unwanted obligations; call Laura 435-327-1333 I will give you the specifics and answers to your questions, Always professional; No Hassle; No Obligation; anytime and every time.

Disclaimer: Not intended to solicit  in place listings.

Written by June Holder

We Can Do It!!

A home is more than sticks and siding, more than windows and doors……it has to feel right to the client.

They have to be able to see into the future a little and see themselves actually cooking, playing, entertaining, and growing into this home.  As a realtor, this means so much to me to share in the excitement of “the find”.  I love helping people get through the challenge of making sure which home will suite them best.   That is why I find it so important to return every call that may come into my message machine.  I will be available to help or find someone who can; when people see what they want, they need to jump on it ASAP.

The market is so prime and wonderful at this time with interest rates to compliment in every way.    There are a lot of people who are afraid to make that first step towards purchasing right now, because of the media hype.

What we need to ask ourselves is, “What is the alternative?”   We could wait until the time is right……when ever that is……or taking advantage of the opportunities of low interest rates, low market sales, getting a bigger better home for less money, and being able to pay what people for many years have not been able to afford  with the lowest interest rates for decades.   What could be better?

As Americans, we still have that deep down exceptional strength that stems back to the freedoms our ancestors fought and died for; what our troops are still giving their all for.  This is part of those freedoms we are blessed with… being able to own a piece of our home land.   We can rise above the negativity that has surrounded us recently; we can survive, elevating our spirit to save our freedoms.  We Can do it, we will do it!!

Written by Scott Bird

Good news bids over four million borrowers who experienced foreclosure from 2009-2010. As reported in the Washington Post, over 4 Million borrowers will have the opportunity to have their file reviewed for potential

wrongdoing by the Office of the Comptroller of the Currency (OCC).

Do you feel your foreclosure was mishandled or that you experienced wrongdoing by the lender? Requests for a free review must be submitted and received by April 30, 2012.

More information is available at www.IndependentForeclosureReview.com or by calling 1 (888) 952-9105.

You can read the entire article at the Washington Post.

Written by Scott Bird

As many of you know, quite a bit of my work involves bank representation. After a property is foreclosed, the bank hires me to market and sell the home. One of the first things I do is an occupancy inspection. This occupancy inspection involves dogs…mean dogs…so I thought I’d share.

I made the risky attempt to open the gates and walk to the house after being warned by the neighbors of the borrower’s/occupant’s vicious dogs. Nobody has seen movement at this house for weeks. I’ve also never seen any changes to the home since I’ve been checking the occupancy. So I unlock the gate listening for any movement and all I hear is water dripping from the rain gutter. The house is about 50 yards from the fence so if there is a dog coming, there is no way to avoid a dog bite in the butt because I’m not as fast as I once was to out run a dog. I finally got to the house and stepped over all the clutter on the porch and rang the door bell. I hear nothing so I knock. Still nothing until after a few seconds I hear some movement inside by the door and know that someone is watching me through the eye hole in the door. After another minute I ring the door bell again, trying to be as polite as possible…then I see two dogs running to the front yard from the back of the house (I’m thinking the SOB let his dogs out to feed me for breakfast).

As you can imagine my heart rate QUADRUPLED, and I just stood there with fear in my eyes. Luckily the dogs didn’t see me and headed for the front fence. I was hoping that they would leave the property because I left the gate open in case I need a quick exit. Well…dah. I was 50 yards away so it wasn’t going to make any difference. All I could do is stand on the front porch motionless. I range the door bell too about 30 times, hoping the guy inside would have some mercy on me…NOPE. He’s probably inside sitting back enjoying the show. Then, one of the dogs spotted me…probably smelt the urine running down my leg (just kidding, no I did not wet my pants) and slowly walked towards me growling. He was the pit bull type which made it worse. Then the other dog, more of a border collie type saw me. He stared for a minute and then a third dog came out from the back of the house. Now what? Can this madness get any worse? I had no idea what to expect or what I was going to do. I was going to call someone but that wasn’t going to keep me alive. It was just going to get someone else out here to clean up the mess after the attack.

And then God answered my prayers and the second dog approached and started licking me and jumping up on me. Usually I don’t like dogs jumping on my clean clothes but in this case, I really didn’t care. The other two dogs started in on the action and we had a very good moment…I could have cried and I walked slowly away from the home and out the gate.

What I really wanted to do was turn around and laugh at the guy inside but he probably had a shotgun in hand and I didn’t want to make the situation worse.

Life is Good!

Written by Scott Bird

Cedar Highlands offers some of the best views of Cedar City and the surrounding areas. This subdivision towers over the area in a seclude mountain area. Although it is not a private gated community, the drive through traffic is minimal and the privacy enhanced.