Bustos Real Estate Blog

2012-08-09T10:03:00.000-06:00

10 Tips for a Pain-Free Move by Jay Papasan

Two of our team members were recently faced with sneaking in a move between work, two book deadlines, end of summer vacations, camp, school and the day-to-day happenings of what we call life. So to help ourselves and you, we conducted an impromptu social media survey of our virtual network, asking: What are your best tips for making the experience as pain free as possible? A day later, we had more than 75 tips from real estate agents and their nomadic clients, proving people want to know—and share in—the joys of moving. Thanks to everyone who participated, and now, we‟ll count down our top 10 tips for a painless relocation. 10. Move from denial to acceptance. Before you strap on your serious boots and start hauling your boxes away, Patrick says the best thing to do is “sit back, relax and accept the fact that, in the move, stuff will get broken, lost, or packed in a box that you never open.” Once you realize there will be potholes along the road, it‟s a lot easier to handle hiccups as they arise. 9. Donate unwanted items. You have to go through all of your belongings during the packing process, so Nikki says, take advantage of a forced spring cleaning any time of year. Call a local charity and get rid of all of your unwanted items. Or if you have the time, make some extra loot through a garage sale or Craigslist. 8. Make a list. Tracking all of your belongings—especially if you‟re using a moving service—is a task unto itself. Dawn suggests numbering boxes and tracking what‟s in them and where they go. “I keep an excel spreadsheet to know what gets on the truck and gets off,” she says. It may take a bit longer on the front end, but will save you a lot of headaches come unpacking. 7. Make a map. In the same vein, Barb describes her go-to moving routine, which includes a detailed furniture map made of masking tape at her new home. “I always go to the new house a few days before and map out furniture placement for the movers. It saves time shoving things around later or being constantly interrupted with, „Where do you want this?‟” 6. Wrap dishes in your towels. Save time, money and space with Connie‟s advice to use sheets, towels and blankets to wrap your breakables. “ It protects the dishes better [than newspaper], you pack twice the items at once, and you only need to wash a load of towels instead of every dish you own.” 5. Prepare your survival kit. Lenny warns to remember to pack a box of necessities for your first night at the new house—things like toilet paper, sheets, pet food, toiletries, etc. Moving is hectic enough without digging through 17 boxes in the dark to find your contact solution and a toothbrush. 4. Think about the kids. Valerie reminds us that if you‟re moving a family, kids can be overlooked in the chaos. She touts getting everyone involved. This is an adventure. Treat it like one and fit in some fun. 3. Ask some friends for help. Aaron‟s best tip is to “leverage other people… MREA style.” Reach out to your network for boxes, trucks, manpower, babysitting, etc. You‟ll be surprised how many people are excited to help! 2. Offer incentives. Taking leverage a step further, Paul says putting some compensation on the table—in the form of food and drink—is sure to draw a crowd. Set up a few “packing” or “paint” parties, and leverage your friends for function and fun! 1. Hire movers. Last but not least, the number one trick to moving seamlessly is to hire someone to do it for you. With the help of her hired team, it took Kammi only three hours to move a 3,000 square foot house. That‟s what we call getting the job done!

Foreclosures spike 9% in May

2012-06-14T11:56:00.001-06:00

Foreclosure filings in May spiked 9% compared with a month earlier, according to an industry group.RealtyTrac reported that 205,990 U.S. properties received filings last month, including default notices, scheduled auctions and bank repossessions, marking the first monthly increase since January. Foreclosure Fiasco Foreclosures spike 9% in May Foreclosures made up 26% of U.S. home sales in first quarter More than 30% of mortgage borrowers still underwater Foreclosures fall to lowest level since 2007 Logjam in foreclosure filings breaking up Bank repossessions climbed steeply, up 7% to 54,844, after hitting a four-year low in April. The industry had anticipated that there would be a new wave of foreclosures once the industry resolved the "robo-signing" issues, which came to light in late 2010. A settlement was finalized last April. Homebuying at most affordable level in decades Robo-signing put the methods used by the banks to repossess homes under intense scrutiny. That forced lenders to slow the foreclosure process to make sure their paperwork was legal and proper. Once the banks reached a massive $26 billion settlement with state attorneys general over processing abuses, it was expected that they would step up their foreclosure efforts. "With the settlement, it makes sense that the lenders would feel more confident pushing delinquencies through to foreclosure in May," said Daren Blomquist, a spokesman for RealtyTrac. There was also a 12% jump in foreclosure starts. "The jump in May foreclosure starts shows that it's going to be a bumpy ride down to the bottom of this foreclosure cycle," said Brandon Moore, CEO of RealtyTrac. Bank of America offering up to $30,000 for short sales Georgia had the highest foreclosure rate, the first month since February 2006 that the state led all others. Arizona was second, Nevada third and California fourth. Riverside, Calif. had the highest rate of any of the 20 largest U.S. metro areas, followed by Atlanta, Phoenix and Chicago. There has been a gradual change in how foreclosures are ultimately disposed of: Homes with delinquent loans are now more likely to exit the foreclosure process as a short sale than in the past, according to Blomquist. Foreclosures made up 26% of home sales in first quarter "Short sales are driving down bank repossession numbers," he said. And short sales also produce tangible benefits for both the banks and the market, according to Moore. Sales of pre-foreclosures aren't as damaging to neighborhood home values as bank-owned sales can be, he said. And they're also better for lenders and servicers, since they sell at a higher average price point than bank-owned homes," Moore added. NEW YORK (CNNMoney)

30-year mortgage rate hits another record low

2012-06-05T16:54:00.000-06:00

NEW YORK (CNNMoney) -- Buying a home got even cheaper this week as interest rates on the 30-year fixed-rate mortgage set a record low for the fourth week in a row. The 30-year fixed mortgage, the most popular mortgage product, dipped slightly to 3.78% from 3.79% last week, according to a weekly survey by Freddie Mac. Last year, 30-year loans averaged 4.60%. The new low can save borrowers $48 a month for every $100,000 borrowed. Over a 30-year term, that comes to $17,217 compared to last year. The 15-year fixed mortgage, which is popular among those looking to refinance, held steady at 3.04%, according to Freddie Mac's survey. That's down from 3.78% a year ago. Affordable mortgages, combined with much lower home prices, should help to bolster the housing market, according to Freddie Mac's chief economist, Frank Nothaft. "Mortgage rates were virtually unchanged this week with fixed-rate loans remaining at record lows and helping to drive homebuyer affordability," he said. In fact, buying a home has reached its most affordable level in more than two decades, according to a recent report from the National Association of Home Builders and Wells Fargo. Where home prices are rising fastest Rates are almost half what they were at the peak of the housing bubble in mid-2006. At the time, the median price of a U.S. home was about $250,000, according to the National Association of Home Builders, and the average interest rate was about 6.75% for a 30-year loan. A person who bought a home in 2006 with 20% down would have made payments of $1,300 a month. Today, a person who buys a median price home of about $162,000, would pay less than half that amount, about $600 a month. By Les Christie and Jessica Dickler @CNNMoney May 24, 2012: 12:00 PM ET

6 ways to get a great mortgage deal

2012-05-02T14:39:00.000-06:00

Finding an affordable house is no longer a problem but qualifying for a mortgage can be. Six tips to getting a mortgage and a good rate. Put your credit on ice. The higher your credit score, the lower your rate: The best rates go to those with a 760 or more, says credit-score expert John Ulzheimer. So keep that plastic in your wallet (and don't apply for new cards or other loans) for at least three months before you go loan shopping. One large balance -- even if it's paid off at the end of the month -- can ding your score by 20 points or more. Ask for time. Most sales contracts give you only 10 days to nab a loan or the seller can move on. Negotiate for an additional five to 10 days to give you some room to shop around. Get at least six quotes. Rates on a 30-year fixed conforming loan can vary at least as much as a quarter of a percentage point. Get quotes from national lenders at mortgagemarvel.com and find out what your local credit union or regional bank is offering as well. Inquire about fees; while lenders aren't required to give you a good-faith estimate of closing costs (which average 2% of the loan balance) until you actually apply, some will provide it if you ask. Match the lock period to the loan. You now need 60 days or more to close a loan, says Wharton professor and mortgage expert Jack Guttentag of mtgprofessor.com, and getting an extension on a lock will cost at least a couple hundred dollars. Ask your lender how long it's taking to close loans like yours -- and don't lock for less. Opt for an ARM. If you know you're not going to be in a house for more than seven years, adjustable-rate mortgages can mean big savings, says Guttentag. The monthly payment on a $300,000, seven-year ARM at the recent rate of 3.23% is $1,302, vs. $1,455 for a 30-year fixed at 4.13%. Talk to a broker. Those who need a jumbo loan or have an unusual situation (say, you're self-employed) will get the best deal from a mortgage broker who has access to and experience with a lot of lenders. For more information on this article visit:

What is a Pre-Approval and Why Do You Need It?

2012-04-23T10:46:00.000-06:00

When shopping for a home, you're going to be asked at some point whether you've been "pre-approved" or whether you have mortgage "pre-approval." You're going to want to answer "yes" to these questions -- buyers who can are in a much better position to purchase a home. Why? Read on to find out.

What is pre-approval?
In real estate lingo, to say you have been "pre-approved" or that you have mortgage "pre-approval" means you have a commitment in writing from a lender to lend you a specific amount to buy a home under certain conditions (e.g., length of the loan and interest rate). A pre-approval holds more weight than a loan pre-qualification, which is an estimate of how much you may be able to borrow.
Why is it important?
It's important to have pre-approval for several reasons: It will let you know how much you can spend on a home and the size of mortgage you'll be able to obtain, it will give you an advantage when it comes time to bid on a property, and it will speed up the process when you find a home you want to buy.
When you have a pre-approval letter for a loan, you'll know exactly how much you can borrow, and possibly the length of the loan (15 years, 30 years, etc.) and your interest rate. This will give you an idea of how much you can spend on a home and what your monthly payments will be like should you purchase the property.
Buyers prefer sellers who have their financing in place. They don't want to choose a buyer who seems to be a qualified buyer, but can't come up with the funds to buy the house.
If you are pre-approved with a reputable lender, you may be able to win a bid over another buyer should multiple buyers be interested in a particular home -- even if the offers from the other buyers are higher.
When it comes time to place an offer on a home, having a pre-approval letter will speed up the process. That's because you won't have to wait to hear from a lender as to whether or not you've been approved.
How do you get it?
You'll want to talk to a few lenders to search out loans that will best suit you and your financial situation. The lenders will require certain information, including: your income, your employment situation, how long you've been employed, and any debts you may have -- e.g., student loans, car loans and credit card debt -- and the source of your down payment.
You may be asked to show your tax returns, bank statements and W2 forms. The lender will use this information to determine the maximum loan you can qualify for and your monthly mortgage payment.
The lenders will also check your credit report and whether you have funds for a down payment and closing costs.
But, even when you do get pre-approved, remember that there are some caveats: Pre-approval letters can be time-sensitive and are subject to an appraisal on the home you're purchasing, so while a pre-approval gives you a firm idea of how much you may be able to borrow, it's still not a concrete guarantee that you'll get the loan.

http://www.trulia.com/guide/home_buying/getting_a_loan/what_is_a_pre_approval_and_why_do_you_need_it/

Act now! 10 major housing markets with the shortest supply of homes

2012-04-16T09:15:00.000-06:00

It's slim pickings for buyers in these 10 housing markets, where resurgent demand is beginning to outstrip supply.
In these areas, the economy has started to pick up, but sellers haven't gotten off the fence because prices are still low. Those who do, however, often get multiple offers, and many sell their home for more than list price.
Of course, these tight markets could loosen up in coming months as banks dispose of more foreclosed properties and owners with equity see how quickly things are moving. For now, however, it's a sellers market, with homes often going under contract the same day they hit the multiple-listing service.
Here, ranked by their plunge in inventory, are the 10 tightest housing markets among the nation's 50 most populous metros, as ranked by MSN Real Estate's partner Move Inc. for Realtor.com (Denver data were provided by Metrolist Inc.). Decline in inventory is from February 2011 to February 2012.

Salt Lake City-Ogden, Utah

Decline in inventory: 31%
The recovery is officially beginning in this mountain market. Low- to middle-priced buyers are out in force, trying to take advantage of low interest rates and affordable prices, says Dave Winters of Re/Max Associates in Salt Lake City.
"They know we've hit bottom and are moving up again," Winters says. "There's no longer a complacency among buyers."
Salt Lake City and Ogden had 6,743 homes available for sale in February, a 31% drop from February 2011. The scarcity of homes at the lower price points has prompted multiple offers and sales over list prices. Higher-end homes are the ones lingering.
The strong demand is even prompting some owners with equity to list their homes, knowing that they can get a lower price on a move-up home and that they won't have to wait long for their property to sell.

http://realestate.msn.com/article.aspx?cp-documentid=33101612

Salt Lake Board of Realtors Directors Message

2012-04-09T08:48:00.002-06:00

More than 800 homes were sold in Salt Lake County in February, a 24 percent increase compared to 663 sales in February 2011.

"Home sales in February were the highest on record for a February month in five years," said Donna Pozzuoli, President of the Salt Lake Board of REALTORS. "Homes under contract (pending sales) in February were up 36 percent compared to last year at this time. We expect home sales to continue to show big gains through this summer."

Year-to-date, home sales in Salt Lake County were up 28 percent in the first two months of 2012 compared to the same period last year. The increase in home sales in February was the ninth consecutive month of rising sales. Statewide, home sales in February rose 18 percent to more than 2,300 sales.

Nationally, total existing-home sales rose to 4.59 million in February, up nearly 9 percent compared to 4.22 million homes sold in February 2011.

10 Tips to find the perfect home

2012-04-02T09:21:00.003-06:00

Now that you're ready to purchase a place, you want to make sure it's the right one for you. Follow these tips to find a home that's a perfect fit for you:

Go for the long haul
When looking for a home, search for one that you could see yourself living in for several years -- at least five to seven years is ideal. Buying -- and moving -- to a new home takes a lot of time and effort, and can add up significantly in closing and moving costs, etc. Staying in place longer will help you avoid those added expenses. Plus, the extra time spent in your home could be just enough to help you ride out a downturn in the real estate market.
Leave room to grow
Aim for a home that can adapt to your needs as your life changes, say, if you have a new baby, or Junior moves back in after college. If you can't afford a place that's large enough to meet your anticipated future needs now, look for one that will allow you to build on later on.
Be flexible
Consider a place with rooms that can serve multiple functions, so the home remains highly functional for you through the years. For example, an open-floor-plan-style home is very adaptable. A kitchen that overlooks a family room is helpful when one's children are young (you can cook while watching the kids), while such a kitchen is also great for entertaining your friends once the kids leave the roost.
Go for your type
Think about what style of home fits you best -- house, condo, townhome, etc. -- they're not one size fits all. For example, a single-family home -- which sits on its own lot and must be maintained by the homeowner -- may be great for a person seeking privacy, but not so wonderful for somebody who doesn't want to worry about mowing the lawn, fixing the plumbing, etc. Meanwhile, a condo might be perfect for somebody who wants a "lock 'n' leave" lifestyle, but not for somebody who doesn't like sharing a wall with his neighbors.
Check the surroundings
When you purchase a home, you not only get a house, you also buy into a neighborhood. Think about whether that neighborhood will suit you. Sure, you might love the house itself, but will the loud neighbors next door or the school across the street become too bothersome for you? Also, do you like the feel of the neighborhood and does it offer everything you need? It's best to find a place in a community that you'll enjoy.
Buy what you can afford
It's easy to shoot for the sky and overspend when buying a home -- you understandably want the best your money can buy. Examine your finances, keeping in mind current and future expenses, and don't exceed your means. It's smarter to buy a home you can easily afford than one you have to stretch to get into. Stay down to earth, and you'll be better prepared should unexpected financial commitments and problems arise later down the road.
Think "home" first
When purchasing a home, don't imagine the dollar signs you'll see the day you sell it. A home is just that -- primarily a "home," and not an investment. So, buy a place that'd be great to live in first and think about its resale value second. Predicting real estate cycles and home appreciation is tough enough for the experts -- and much more for the average home buyer. Plus, while home renovations tend to add value to a residence, they rarely recoup more than what was spent on them.
Look at both old and new
It's nice to move into a place that's brand-new. But, new isn't always better. Consider both old and new. While you might not like a previous homeowner's decorating decisions, you might like the owner-installed upgrades -- like a finished basement and a backyard deck -- that a new home might not have.
Location, location
You've heard this tip before, but a home's location does matter. A house that's located on a busy, noisy street may be less enjoyable to you as a homeowner than one situated on a quiet, secluded cul-de-sac. Plus, a home on a cul-de-sac is likely to be worth more than a poorly located one when it comes time to resell. So consider a home's location before you're smitten by a spectacular interior.
When it comes time to sell
While you want to think of your place as a home first and not an investment, it doesn't make sense to purchase a white elephant, either. You should put at least some thought into how easy -- or difficult -- it'll be to resell the home one day. If a home is so unlike other nearby homes in terms of size, style, price, etc., you might want to skip it and look elsewhere -- it could become a burden should you want to someday move on.

http://www.trulia.com/guide/home_buying/find_a_house/10_tips_to_find_the_perfect_home/

High Affordability, Increased Homebuyer Confidence

2012-03-26T09:31:00.001-06:00

High affordability, increased homebuyer confidence, low interest rates and improved employment conditions are reasons for booting UTah's real estate market.

The National Association of Home Builders recently reported that affordability in Salt Lake has not been higher since 1993. Nearly 81 percent of homes sold during fourth quarter 2011 were affordable to families making the median income.
The UAR's Housing Affordability Index is at its highest level on record. A Utah family making the median household income had 180 percent of what it needed to buy the median-priced home under prevailing interest rates. (The UAR has tracked affordability since 2006.)
In February, the average rate on a 30-year fixed-rate mortgage was 3.89 percent, the lowest average monthly rate in the history of the survey, which dates back to 1971. (Freddie Mac Primary Mortgage Market Survey)
Utah's improved employment situation is helping housing. In January, Utah job growth was up 2.6 percent, compared to a 1.5 percent gain nationally. For 12 months ending in January, Utah's economy created 30,300 jobs. Utah's employment rate is 5.7 percent compared to national unemployment of 8.3 percent. (Utah Department of Workforce Services)

Unless otherwise indicated, all data comes from the Utah Association of REALTORS®.

Rising Home Sales & Declining Housing Inventory are Boosting Utah's Real Estate Market

2012-03-20T13:18:00.001-06:00

2012 was the best January in 5 years in terms of homes sold.

Utah Realtors sold 1.985 homes, townhomes and condominiums in January 2012 compared to 1,865 sold in January 2011 - an increase of 120 homes.
Among the more populated areas (those with more than 20 sales), sales were strongest in the following counties: Salt Lake (up to 30 percent), Uintah (up about 29 percent) and Davis (up to 6 percent)
This is the eighth consecutive month that home sales have increased compared to the same month a year earlier
The sales are homes sold by Utah Realtors. They are mostly existing homes but include some new construction as well.

All data comes from the Utah Association of REALTORS ®.

Homeowners associations: Good or bad?

2012-03-12T09:36:00.001-06:00

If you buy a condo or a home in a planned community, chances are it will be subject to the rules and regulations of a Homeowners' Association (HOA). HOAs can be a benefit and a foil for homeowners. Read this guide to figure out if you'd enjoy living with an HOA:

HOA pluses

The covenants, conditions and restrictions of an HOA are designed to protect the value of your home, maintain order in your community and your enjoyment of it. An HOA might prevent your neighbor from erecting an unsightly fountain in his front yard, parking his used vehicles on his lawn or having a pet.
Homes in HOA-governed communities are generally well maintained.
An HOA will see to the maintenance of the common areas of your community or development -- the front lobby and the pool, or the drive leading into your development.
Homeowners in HOA communities often have the shared use of pools and party facilities that are maintained by the association. Think "private pool" without the work.
If you have a dispute with a neighbor over the use or look of his or her property or his barking dog, you can take the matter to the homeowners' association for intervention.
HOA dues may pay for shared services like security, trash pickup lawn maintenance and snow removal. (Think of Saturdays by the pool instead of mowing the lawn.)
The HOA may sponsor community events and get-togethers.

HOA minuses

Membership is mandatory for all homeowners in an HOA community.
You must pay HOA membership dues. These dues may increase -- before moving into such a community, you should find out when payments are due, what they cover, what they don't cover and how likely they are to rise.
You may have less say in how you can change the appearance of your home. Your HOA may have a regulation against fencing your backyard, installing a pool or painting your front door red. It may even restrict when you can water and cut your lawn.
An HOA might not allow pets.
If the community is an age-restricted community, the homeowners' association might not allow people under a certain age to reside with you or to move into your home.
Homeowners looking to rent out their residence may not be able to do so under HOA rules.
If you don't meet an HOA's requirements -- say, if you do paint that door red or get a German shepherd -- the HOA can levy a fine.
If you don't pay your HOA dues or fines -- the HOA may even try to foreclose on your home.
At times, there have been charges of unscrupulous behavior against HOAs. Check to see if there is any litigation pending against the HOA and check its financials as well as its recent assessments (for community fixes or upgrades).

http://www.trulia.com/guide/home_buying/getting_started/homeowners_associations_good_or_bad/

Consumer Confidence in Homeownership

2012-03-05T09:07:00.001-07:00

According to Bank of America, Market and Homebuyer Insights from the third quarter of this year,

81% agree that buying a hmoe is the best long-term investment

Bank of America: Source: MBA Mortgage Finance Forecase, published September 12, 2011 http://mortgagebankers.org/files/Bulletin/InternalResource/77875_.pdf

10 Questions to Ask Your Next Listing Agent

2012-02-27T09:33:00.002-07:00

So you have decided to hire a listing agent to assist you in marketing your home. But who should you hire - your brother-in-law, your neighbor two doors down, or the lady who sends you a calendar in the mail every December?
Amazingly, according to the latest National Association of REALTORS® Profile of Home Buyers and Sellers, 67% of sellers interview only one agent before making the decision to list with an agent. But is that wise? No, probably not. Instead successful sellers often find it prudent to meet with multiple agents and treat each appointment as a job interview.
So what questions should you ask each interviewee? Let's take a look at 10 questions to ask your next listing agent:

How long have your been selling real estate and are you a full time agent?

Agents who have been in the real estate business for more than five years are likely to have double or even triple the income of newer licensees, but don't pull the trigger too quickly. Many new licensees represent the new breed of college educated, internet enabled, smart phone packing entrepreneurs who may be just the kind of aggressive agent you've been looking for in this challenging market.
How much real estate did you sell last year?

Past performance can often be an indicator of future results. It may be harsh but agents who are having a hard time selling homes may also be suffering through a cash crunch which can affect their ability to invest marketing dollars into promoting your listing. Although a word of caution - don't be too surprised if you find that even the top producers in your marketplace have had a tough last twelve months.
How many homes have you sold in my area?

A great way to find a listing agent is to identify agents who have sold homes in the last six to twelve months in your specific neighborhood. Agents that are consistently selling homes in your market area will have a better handle on how and why buyers prefer living in your community. The ability to market these positives can be a huge plus when trying to locate a buyer for your home.
What is your average market time vs. the market?
The average market time is a measurement of how long it takes the average home to sell - from the time it lands on the local multiple listing service to the day it closes escrow. Strong listing agents can often outperform the overall market by using innovate and aggressive marketing techniques that can help a home sell faster and for more money.
What is your list price to sales price ratio vs. the market?
If homes in your market area are selling for an average of 96% of their asking price, in real estate lingo this is often referred to as the list price to sales price ratio. Ideally strong listing agents will be able to "beat the street" by helping sellers price homes closer to real market value.
May I see a portfolio of other listings you have sold?

If you were going to hire a doctor to perform heart surgery you probably wouldn't hire a dentist, right? The same is true in real estate. Ideally you want to hire an agent who specializes in your specific type of home - waterfront homes, golf course properties, and condos for instance. These agents will be better equipped to provide specialized services that will give you better odds at creating success.
Do you provide a written report to sellers, and if so, how often?

Communication is vital in a constantly changing real estate market. An agent that provides updates, even automated updates, on marketing, website activity, buyer showings, or even the sound of crickets (if nothing is happening) is a huge asset. Be clear and up front about your expectations and, if possible, set aside a day of the week to check in with the agent.
May I see your resume or personal brochure?

Asking for a resume is a great way to learn in-depth information about your potential new partner in the sale of your home. It can also reveal details you might never have known - like their job history, educational background, and list of references. Don't be afraid to dig deeper by asking for permission to call previous clients for a testimonial.
Do you have a specific marketing plan in mind?

Aggressive agents have aggressive marketing plans that ensure that their listings are exposed to every potential buyer in the marketplace. By coming to a meeting of the minds about what the specific marketing plan will be for your home at the outset of the listing agreement, you will set the stage for a successful relationship.
Do you have internet strategy and how will you market my home online?

The vast majority of buyers today use the internet as an information resource when searching for their next home. Because of this you want an agent who has embraced an internet strategy as an integral part of their marketing plan. Ask to see their personal website, samples of virtual tours, web pages, and a list of portals where your home will be marketed.

Don't be too surprised if some agents aren't quite ready to answer all the questions you have prepared for them. To be fair you may wish to provide them a list of your specific questions in advance so they can come to the listing appointment ready to impress you. Also, to make the most unbiased choice, ask agents to leave their pricing suggestions at the door. This will eliminate the natural but incorrect tendency of hiring the person who tells you the highest price and focus the interview solely on each agent's individual strengths and weaknesses.

http://www.trulia.com/guide/home_selling/before_selling/10_questions_to_ask_your_next_listing_agent/

Study Forecasts Recovering Home Prices for 2012 in Salt Lake Metro Area!

2012-02-24T10:43:00.003-07:00

SALT LAKE CITY — The financial services company Fiserv Inc. recently released a new study of more than 380-plus U.S. housing markets and forecast recovering prices for many of the housing markets across 2012 and 2013. Though the national housing average is forecast to still be in the red for 2012, one of the markets that is forecast to raise is the Salt Lake City metro area.

The study shows an average of a 31 percent decrease in home prices across the last five years in the U.S. from the third quarter of 2006 to the third quarter of 2011. This decrease shows the heart of the recent recession and its effects on the average family’s largest investment. Across the same five-year period, prices in the Salt Lake area decreased by a little over 16 percent. This is half the fall that the nation experienced on average, but still a painful drop.

However, Fiserv forecasts for 2012 show a 1.5 percent growth in prices on average in the Salt Lake area from third quarter of 2011 to that same quarter in 2012. At the same time, the U.S. is still forecast to have prices decrease by almost 3 percent. In Utah in 2013, however, the study forecasts further increases in Salt Lake and the nation of 7.4 percent and 3.8 percent, respectively.

The study also examines a home affordability ratio in all 380-plus markets by examining the median family income and the area’s median price for a home. The ratio is created by taking the median home price and dividing it by the median family income. At the Utah housing price peak in late 2007, the home affordability ratio was a high 3.3. But in the third quarter of last year, Utah saw a glimmer of light by seeing this number decline to a 2.7 with a median family income being $67,200 and the median home price of $183,000.

As the final effects of this recession begin to fade, more positive signs of markets recovering and home prices stabilizing may be more prevalent, giving hope back to the nation.

http://www.deseretnews.com/article/705398582/Study-forecasts-recovering-home-prices-for-2012-in-Salt-Lake-metro-area.html

Checklist to Buy Bank-Owned Properties

2012-02-21T11:39:00.002-07:00

If the lender takes ownership of the property, either through an agreement with the owner during pre-foreclosure or at the public auction, the lender will usually want to re-sell the property to recover the unpaid loan amount. If you're a real estate investor or homebuyer looking to purchase a bank-owned property, use the checklist below to help you through the process.

Prepare your resources

Make sure that you have the resources in place to purchase this property. This includes securing pre-qualification for a loan and enlisting the help of a buyer's agent if you're not comfortable contacting the owner and navigating the negotiations and closing process on your own.
Evaluate bargain/investment potential

Determine if this property represents a good bargain or investment opportunity. Start by subtracting the estimated amount owed from the property's estimated market value to determine the property's estimated equity.
Contact the lender/bank

Unless this property is listed for sale on the MLS (in which case you can contact the listing agent), you'll need to contact the foreclosing lender directly to express your interest in the property. Ask for the REO or asset management department when you contact the lender.
Submit an offer and close the deal

The lender's REO or asset management department will let you know how you can view the inside of the property and how to submit an offer for the property. If your offer is accepted, both sides simply need to satisfy the terms of the purchase agreement to close the deal. Contact an agent to help with negotiating and closing.

Tax Tips for Home Owners

2012-02-13T10:01:00.001-07:00

Buying and owning a home is a big expense -- besides the purchase price, there are the property taxes, heating and cooling costs, maintenance expenses…the list goes on. But the good news is that there are tax savings available to homeowners. Read on to find out about some of the top tax deductions and credits available to those who own a home.

Mortgage interest and points

Most homeowners can deduct the interest paid on their mortgage as an itemized deduction on Internal Revenue Service form 1040, Schedule A. (Deductions reduce your adjusted gross income when computing your taxable income.) And because mortgage interest makes up much of homeowners' monthly mortgage payments, that's a big tax break.
However, if your mortgage is more than $1 million, or your home equity loan is greater than $100,000 you may be out of luck.
The amount of your first mortgage may limit how much you can deduct for mortgage interest on your home equity loan, especially if the debt on your home is greater than your property's value. Read the Internal Revenue Service's Publication 936, Home Mortgage Interest Deduction for complete requirements and information.
If you itemize your deductions on Internal Revenue Service form 1040, Schedule A, you also may be able to deduct your mortgage points in full the year they were paid. If you are refinancing, you can, based on the number of years of the loan, deduct some of the points. Read the IRS's Tax Topic 504 - Home Mortgage Points to get all the requirements and details.

Real estate taxes

As a homeowner, you no doubt hate paying property taxes. But the good news is that real estate taxes can be claimed as an itemized deduction on Internal Revenue Service Form 1040, Schedule A. To find out how much real estate tax you've paid, check your escrow account through your lender.
For homeowners who don't have enough deductions to itemize, they can now increase their standard deduction by adding some of their property taxes to their standard amount, under a new law. Single homeowners can increase their standard deduction by as much $500 (or $1,000 for those married filing jointly). This new law will be in effect through the 2009 tax year.

Moving expenses

If you had a work-related move (say, if you landed a new job or if your employer relocated you to a new location), you may be able to deduct your moving expenses. (Use IRS Form 3903 to calculate how much you can deduct and note those expenses on Form 1040.)
To qualify for the deduction, your new job must be at least 50 miles further from your old home than your old job was. Also, you need to have worked full-time for your employer at least 39 weeks in the first 12 months after your move to your new home. Read Topic 455 -- Moving Expenses from the IRS for more information.

Capital gains tax exclusion

Imagine being able to sell your home, pocket the profits and not have to pay Uncle Sam a dime in taxes. That's the tax benefit available to homeowners as long as they've owned their home for at least five years and lived in it at least two of the five years before selling it.
Single homeowners can realize up to $250,000 tax-free in sales gain from the sale of a home, while married joint filers can see up to $500,000 tax-free in gains. Read Topic 701, "Sale of Your Home," for more information

http://www.trulia.com/guide/home_buying/getting_started/tax_tips_for_home_owners/

Home Sales to Rise 15% in 2012

2012-02-06T09:44:00.001-07:00

By James Wood
Director of the University of Utah's Bureau of Economic and Business Research

In 2012, higher levels of real estate sales will be supported by favorable interest rates and housing prices. In addition the Utah labor market is expected to grow by over 30,000 jobs and all sectors of the economy will expand. These conditions will lead to an improvement in home buyer confidence, which should stimulate housing demand. Over the last three years pent-up demand has been building as the weak job market has caused households to double-up, postpone marriage and moving. With improved conditions some of this pent-up demand will be released in 2012 pushing sales of single family homes up to 15 percent to 10,500 units. Total residential sales including condominiums, town homes and twin homes, will also increase by about 15 percent to 12,500 units.

Points on your mortgage settlement statement: What are they?

2012-01-30T08:41:00.004-07:00

When you close on a home, you will be faced with a settlement statement. If you are taking out a mortgage to finance your home, that statement will include a mortgage settlement statement from your lender detailing the costs and fees associated with your loan. On that settlement, you'll notice something called "points." Just what are these "points?"
Lenders charge points to cover the costs of a loan. If a borrower has credit problems and is considered a risk, he or she may be charged more points than a borrower who has a better credit rating. Borrowers can also purchase points to lower the interest rate on their mortgage. These points represent additional money that a home buyer may have to pay to his lender at closing.
There are two different kinds of points: "Origination" points and "discount points."

"Origination" points

"Origination" points are fees charged to you by your lender. These points cover some of the lender's costs for preparing and submitting the loan; it's also a way for the lender to earn more money from the loan upfront.
Each point charged is 1% of the loan's total amount. So, for one point on a $100,000 loan, you pay $1,000; for two points, you pay an extra $2,000, and so on. These points may be tax deductible if they meet certain conditions. (For more on mortgage points, read "Topic 504 -- Home Mortgage Points" from the Internal Revenue Service.)

"Discount" points

"Discount" points are points that a borrower can choose to purchase (they are optional) to "buy down" the interest rate on a mortgage. While you'll have to pay more money upfront, these points save you more money over the length of the loan the longer you stay in your home.
These points are also expressed as a percentage of the total loan amount -- 1%. Therefore, a point on a $200,000 mortgage is a $2,000 fee, two points amounts to a charge of $4,000, etc.
For each point that you pay for, your lender will agree to lower the interest rate on your loan by a certain amount, usually somewhere between an eighth (.125) to a quarter (.25) of 1%. For instance, your lender may lower your interest rate from 6% to 5.75% for the cost of one point on your loan. If you purchase two points, you can have your interest rate lowered even more.
While discount points can save you money in the long run, they can add to your closing costs, and might not be worth it if you'll only own your home for a short period of time, or less than five years -- you might not save enough money in interest to cover the cost of your points.
A plus to discount mortgage points are that they also may be tax deductible. Read "Topic 504 -- Home Mortgage Points" from the Internal Revenue Service for more information.

http://www.trulia.com/guide/home_buying/getting_a_loan/points_on_your_mortgage_settlement_statement_what_are_they/

Housing Forecast

2012-01-23T11:13:00.000-07:00

Statistics reflecting fluctuations between 1-20-12 and last year, 1-20-11.

Salt Lake County:

· Active: 4833 vs. 6827 29% DECREASE

· Under Contract: 1404 vs. 1275 10% INCREASE

· Sold last 30 days: 659 vs. 690 5% INCREASE

Davis County:

· Active: 1527 vs. 2172 29% DECREASE

· Under Contract: 385 vs. 352 9% INCREASE

· Sold last 30 days: 281 vs. 185 52% INCREASE

The 2010 Census reports that 67.3% of household in Salt Lake County are homeowners. Historically, Utah peaked in homeownership at 68.1%. In 2011, existing home sales were seven times higher than new home construction in Salt Lake County. The majority of new construction in Salt Lake County was dominated by higher density living i.e. twin-homes, PUD’s, etc. Until recently, the average sales price of a home in Salt Lake County rarely declined. In only 10 of the past 56 years have prices declined, including the four most recent years. In Utah there are currently about 480,000 mortgage loans with 124,000 of these loans having a status of negative equity or near negative equity (within 5 percent of negative equity). The households with these loans are effectively stuck in their homes. Moving-up to a larger home is not an option for the vast majority. This has hurt demand and contributed to sluggish home sales. Traditionally, the move-up buyer has been a source of significant demand for both the existing and new home markets.

Percent Change in Average Sales Price of Homes Sold in Salt Lake County

Prices will continue to face downward pressure from REO and short sales. As 2011 ended there was no sign of improvement as fourth quarter prices declined by more than 10 percent. This weakness will linger through the first two quarters of 2012, but in the second half of the year prices should stabilize. The median sales price for a single-family home in Salt Lake County will likely drift down another 3-5 percent in 2012.

Salt Lake, Davis, Utah, & Tooele Counties are seeing decreases in Active inventory. The local assumption based on MLS indicators and economic stats suggest the Utah market is beginning to stabilize, however, I remain suspicious due to national economic news. According to the recent reports from the NAR, there are 4 times as many properties in the foreclosure process than there are REO properties that are listed. Utah trails the nation by 12-18 months in most economic cycles.

The information provided has been gathered from the Salt Lake Board of Realtors Economic Forecast: James Wood (Utah’s Bureau of Economic Research), NAR and the WFRMLS.

REO and Short Sales?

2012-01-17T09:11:00.002-07:00

According to Bank of America, Market and Homebuyer Insights from the third quarter of this year,

67% if consumers likely to buy a home in the next year said they would consider a bank-owned or REO transaction and 66% would consider a short sale transaction

Bank of America: Source: MBA Mortgage Finance Forecase, published September 12, 2011 http://mortgagebankers.org/files/Bulletin/InternalResource/77875_.pdf

Housing Market Perceptions

2012-01-09T08:43:00.001-07:00

According to Bank of America, Market and Homebuyer Insights from the third quarter of this year,

As of July 2011, 19% of consumers have a positive perception of th ehousing market, lower than the 24% seen in July 2010

60% of consumers have a negative perception of the housing market as of July 2011, compared to 54% in July 2010

Bank of America: Source: MBA Mortgage Finance Forecase, published September 12, 2011 http://mortgagebankers.org/files/Bulletin/InternalResource/77875_.pdf

Do I Rent or Do I Own?

2012-01-03T07:51:00.003-07:00

Check out this short YouTube video that outlines the costs associated with renting vs owning.

Utah Ranks High in 2011

2011-12-29T16:58:00.002-07:00

Utah is No. 6 on Forbes’ list of “The Best States for Jobs”

Dec. 5, 2011

Projected 5-year annual job growth: 2.4%
http://www.forbes.com/pictures/mli45ggeg/6-utah

Forbes names Utah “Best State for Business and Careers”

Nov. 22, 2011

http://www.forbes.com/sites/kurtbadenhausen/2011/11/22/the-best-states-for-business/

Salt Lake City is No. 6 on Trulia’s list of “Where Builders are Breaking Ground”

Nov. 8, 2011

Reported in U.S. News and World Report
http://www.usnews.com/news/articles/2011/11/08/where-builders-are-breaking-ground

Fiserv says Utah to have seventh-highest home price appreciation by summer

November 2011

http://cgi.money.cnn.com/tools/homepricedata/index.html?iid=EL

Utah is in the top five states for employment growth

October 2011

Reported by the Utah Department of Workforce Services
http://jobs.utah.gov/wi/press/2001press/ratecurrent.pdf

Salt Lake City is No. 3 on Builder magazine’s “Healthiest Housing Markets” list

Sept. 15, 2011

http://www.builderonline.com/local-markets/heathiest-housing-markets-mid-2011-update.aspx

Salt Lake City is No. 15 on Forbes’ list of “Top 20 Healthiest Cities”

Sept. 13, 2011

http://www.forbes.com/pictures/eigl45hfh/15-salt-lake-city-utah

Salt Lake City is No. 4 on Inman News’ “Top Markets for Real Estate Agents” list

Aug. 26, 2011

http://www.inman.com/reports/top-market-income/salt-lake-city.html

Utah cities make CNN Money’s “Best Small Towns” list

August 2011

Farmington (No. 12), North Salt Lake (No. 23), North Logan (No. 63), Lindon (No. 81) and Draper (No. 85)
http://money.cnn.com/magazines/moneymag/bplive/2011/top100/

Utah ranked No. 2 on Pollina’s “Top 10 Pro-Business States” list

August 2011

http://www.pollina.com/top10probusiness.html

More positive Utah news

http://business.utah.gov/whyutah/accolades/

Salt Lake: City No.3: Healthiest Housing Market

2011-12-19T09:11:00.001-07:00

Builder Magazine has ranked Salt Lake City the No. 3 Healthiest Housing market in the nation, moving up from last year’s previous ranking of No. 39.

According to Jonathan Smoke, executive director of research for Hanley Wood’s market Intelligence, Salt Lake City scored 88.9 points, a solid B+ based on six economic conditions that are tied to strong housing sales. Minneapolis-St. Paul tool the top spot. Fort Collins, Colo. Came in at No. 2.

The survey looked at 100 of the nation’s largest cities and considered several factors including house-price Appreciation, job growth, household growth, unemployment rates, change in unemployment rates and household median income growth. While home prices in Salt Lake City have shown steady erosion from foreclosures over the past four years, Smoke believes it’s all about to change.

Salt Lake City currently only has a 7 month supply of distressed homes, down from a 72 month supply in 2007, according to Smoke, who believes Salt Lake’s housing bottom has already come and gone.

“There’s no doubt in my mind that the conditions a year from now in Salt Lake City will be better than today,” Smoke told Salt Lake Realtor Magazine. “It starts to improve from here.”

In fact, Moody’s Analytics predicts Salt Lake City will show a 4.7 percent increase in house price appreciation in 2012. The firm also paints a glowing forecast in employment, predicting a 2.4 percent increase in new jobs in 2012 and a 10.6 percent drop in the state’s unemployment rate,

which is currently at 7.4 percent.

--by Dave Anderton

http://www.youtube.com/watch?v=gtABZYNIvIM

Forbes Again Ranks Utah #1 State for Business and Careers

2011-12-12T09:09:00.000-07:00

Utah leads the nation for second consecutive year

SALT LAKE CITY - For the second consecutive year, Forbes has awarded Utah the top spot on its annual "Best States for Business and Careers" list.

"Being again recognized by Forbes as the country's best state for business and careers is certainly an outstanding honor," said Governor Gary R. Herbert. "But it is no accident; it is the result of deliberate efforts to make Utah the most business-friendly state. While accolades are gratifying, the ultimate fruits of our labors are accelerated economic growth for our state and more jobs for Utah's citizens."

A leading publication for business leaders across America and the world, Forbes chose Utah in part because of its economic consistency. According to the magazine, Utah was the only state that ranked among the top 15 states in each of the list's six criteria: Business Costs, Labor Supply, Regulatory Environment, Economic Climate, Growth Prospects and Quality of Life.

"Because Utah is able to consistently hit the lofty goals that are the hallmark of a high-performing economy, we have continued to grow over the past year," said Spencer Eccles, executive director of the Governor's Office of Economic Development (GOED). "We have consistently added jobs to the Utah economy, while simultaneously training current and next-generation workers to fill new and in-demand positions. Our focus on jobs is a large part of why Utah is still the best state in the nation for business."

Forbes pointed to numerous factors that make Utah the country's best performing economy for the second year running. Among those factors are energy costs, which are 31 percent below the national average; a five percent tax rate, which is lower than neighboring Arizona, Idaho and New Mexico; and job growth that has increased over the past five years, compared to the country's negative trend.

The magazine also noted several recent additions and expansions to Utah's business community, including Procter & Gamble, ITT Exelis, Home Depot and Boeing - all are companies that have worked with GOED and its economic development partners to bring new jobs to the state.

"Being ranked Best State for Business by Forbes two years in a row is validation of our public and private sector working together to create an environment for economic success," said Jeff Edwards, president and CEO of Economic Development Corporation of Utah. "This underscores what we at EDCUtah continue to hear from employers, that our two big advantages of stability and workforce are continuing to bring us the best companies in the world to employ the best workforce in the world."

For Immediate Release
November 23, 2011
Contact: Ally Isom
Deputy Chief of Staff
801.538.1503 desk
801.864.7268 cell

aisom@utah.gov

http://www.utah.gov/governor/news_media/article.html?article=6073

Bustos Real Estate Blog

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Go for the long haul

Leave room to grow

Be flexible

Go for your type

Check the surroundings

Buy what you can afford

Think "home" first

Look at both old and new

Location, location

When it comes time to sell

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10 Questions to Ask Your Next Listing Agent

How long have your been selling real estate and are you a full time agent?

How much real estate did you sell last year?

How many homes have you sold in my area?

What is your average market time vs. the market?

What is your list price to sales price ratio vs. the market?

May I see a portfolio of other listings you have sold?

Do you provide a written report to sellers, and if so, how often?

May I see your resume or personal brochure?

Do you have a specific marketing plan in mind?

Do you have internet strategy and how will you market my home online?

Study Forecasts Recovering Home Prices for 2012 in Salt Lake Metro Area!

Checklist to Buy Bank-Owned Properties

Prepare your resources

Evaluate bargain/investment potential

Contact the lender/bank

Submit an offer and close the deal

Tax Tips for Home Owners

Mortgage interest and points

Real estate taxes

Moving expenses

Capital gains tax exclusion

Home Sales to Rise 15% in 2012

Points on your mortgage settlement statement: What are they?

"Origination" points

"Discount" points

Housing Forecast

REO and Short Sales?

Housing Market Perceptions

Do I Rent or Do I Own?

Utah Ranks High in 2011

Salt Lake: City No.3: Healthiest Housing Market

Forbes Again Ranks Utah #1 State for Business and Careers