My Utah Real Estate

Home Buyers: How to Maximize Your Investment in a Changing Market (CLICK ON IMAGINE)

2011-09-19T11:00:00.000-07:00

Utah Homes For Sale

2011-08-24T11:14:00.000-07:00

2011-07-21T10:50:00.000-07:00

Thinking of buying a short sale property?

If so, there are some things you need to know:

A short sale means the seller’s lender is willing to accept a discounted payoff to release an existing mortgage. However, just because a property is listed with short sale terms, that does not mean the lender will accept a buyer’s offer, even if the seller accepts it. Buyers pursue short sales to get a good deal, but lenders are reluctant to accept offers that are below the current fair market value of the property.

Short Sale properties tend to present a variety of risks for a home buyer. Homes are frequently sold “as is”, which means that no repairs will be made by the seller or lender. Therefore, most agents recommend a home inspection to determine the true condition of the home and to get an estimate of repair costs.

Overall, the short sale process tends to be lengthy, and in some real estate markets, fewer than one in 10 short sales close for a variety of reasons. The entire short sale process can be very challenging; however, working with a real estate professional who is experienced in short sales can increase the odds of a successful close.

A buyer considering a short sale should consult with an attorney and/or a licensed tax professional to understand all obligations relating to a short sale.

Resources:

New Provo Townhome Listing ***

2011-06-22T12:54:00.000-07:00

2383 W 540 North Provo

New Listing

Here is a new an awesome townhome for sale in Provo. 3 bedrooms and 2 bathrooms. Located only a few miles from BYU and UVU. This wonderful townhome has been completely remodeled with new carpet, paint, granite counters, wood floor entry, new plumbing fixtures, new oil rubbed bronze lighting, private backyard. Only $139,900! If you are interested in viewing this townhomes give me a call or shoot me an email. Thanks for viewing - Derrick

The 10 Biggest Myths About Short Sales

2011-06-21T11:53:00.000-07:00

The 10 Biggest Myths About Short Sales

(And How They Affect Both Buyers and Sellers)

“Short sale” is one of the most misunderstood terms in the real
estate industry. Whether you are a buyer looking for a bargain or a seller looking to get out from under a troubling loan situation, it pays to understand what short sales represent and the things you need to know before making any crucial decisions.

A Growing Trend

With the aftermath of the sub-prime mortgage meltdown and the subsequent fallout from so many questionable loans, more and more listings on today’s market are categorized as “short sales.” This is one of the most misunderstood terms in the real estate industry. As a real estate professional working with both sellers and buyers, I come across short sale situations every day. I’ve found that people who know what they are doing are able to avoid the common pitfalls and make good financial decisions for their future, whether you are a buyer looking to find a good deal on a home or a seller looking to get out from under your upside-down loan.

Whether you are looking to buy a short sale or get out from a upside-down loan I can help you. Send me an email and I will mail you my Special Report "The 10 Biggest Myths About Short Sales." Email: Derrick@DerrickTornow.com

Adjustable Rate Mortgages -

2011-06-10T09:29:00.000-07:00

Over the past three weeks, they have gone down, and are really, really low right now. The 30 year fixed mortgage can be obtained for less than 4.5%. 15 year fixed mortgages are going for less than 3.75%. With interest rates this low, why would anyone want do do an ARM? Aren’t those those risky loans that caused the financial meltdown?

Adjustable Rate Mortgages can vary, but they usually have a fixed rate from 3-7 years. During these years you know exactly what the interest rate is going to be. They are usually amortized over 30 years, so they can offer a very affordable payment option. Many Utah Mortgage lenders can provide ARMS right now for LESS THAN 3%. That’s probably less than the rate of inflation and pretty much free.But the interest rate will probably go up in five or seven years when the ARM expires, then won’t it actually be more expensive than a getting a regular 30 year fixed loan?

Maybe. But if you aren’t going to stay in the same home for more than five years, then it doesn’t really matter does it. Who cares what an interest rate might be if there is no chance you will ever be paying it.There is also a new wave of home buyers with the attitude that they want to pay their homes off. Their definition of home ownership isn’t having a mortgage, but actually owing a home free and clear. These buyers are purchasing homes well below their means, and are paying extra with every monthly payment. For buyers with these attitudes an ARM is probably a very good idea.

* New Listing in American Fork, Utah *

2011-06-03T10:15:00.000-07:00

Check out this new listing in a great part of American Fork. This wonderful home features 5 bedrooms, 3 bathrooms, a open family style kitchen/family room. The Kitchen has lots of counter space, pantry, tile floors, vaulted ceilings, natural light, dishwasher and bar seating. You will love the relaxing backyard with patio and garden area. The home has a 2 year old roof and new A/C unit. Please feel free to email or call me with any questions about this home.

What's New - Utah Real Estate Absorption Rate

2011-05-25T12:55:00.000-07:00

One of my favorite things about real estate is meeting with prospective home sellers. I love to sit down with them and explain how home prices are determined and how I can help them sell their home quickly and for top dollar. I almost always hear the question from the home owner, "How fast will my home sell?" There are many factors that go into answering this question to be able to give an honest answer.

One of the biggest factors in answering How Fast Your Home Will Sell is the absorption rate. Let me explain what the absorption rate is.

The absorption rate provides the answer to this question: How many months it would take to sell all the homes for sale in my area at the current rate they are selling? The higher the number, the more aggressive home sellers will have to be to get their home noticed and sold.

This figure is very easy to determine on your own. You only need to know two things – the total number of active listings (homes currently for sale) and the total number of homes that sold over a specific period of time. If you can determine the number of sales in your area in the last 6 months, divide the total sales by 6 to arrive at the average number of sales per month.

To get your magic number, divide the total number of active listings by the average number of sales per month and you get the absorption rate: an estimate measured in months of how long it would take to sell off the current inventory of listings, if all conditions remained the same. Remember, this number looks only at current inventory – it does not take into consideration any additional homes that will come on the market in the future.

Below you will find the most current absorption report for single family homes in Utah County. This is a general report and not specific to city or style of home. If you would like a specific absorption report for your home and area please feel free to contact me at Derrick@DerrickTornow.com. Don't forget to provide your name, address and square footage of home.

	2 Months	3 Months	4 Months	5 Months	6 Months	12 Months
Active Properties:	2,848	2,848	2,848	2,848	2,848	2,848
Under Contract Properties:	834	834	834	834	834	834
Sold Properties:	701	1,038	1,345	1,591	1,884	3,840
Market Absorption:	767.50 Per Month	624.00 Per Month	544.75 Per Month	485.00 Per Month	453.00 Per Month	389.50 Per Month
Inventory:	3.71 Months	4.56 Months	5.23 Months	5.87 Months	6.29 Months

New Beacon Condominiums in Provo

2011-01-12T15:13:00.000-08:00

I'm pleased to announce a project that has been in the works for over 6 years is now in the construction phase. Beacon Condos will begin construction in about month. The estimated completion will be July 2011.

Here is a list of features:

* Open Family Room - Kitchen Area

* Kitchen Panty

* Laundry Rooms

* Granite Counters

* Large Kitchen Island

* Dining Area

* Tile and/ or Wood Flooring

* Upgraded Carpet

* Walk-In Closet

* Upgraded Fixtures

* Garage parking

* 4 Blocks to BYU

This complex will be a mix of nine 3 bedrooms and three 2 bedrooms. Each unit will have 2 full bathrooms. If you would like pricing or more information please call or email me. I also have pricing if you would like to purchase the complete complex.

I am excited to start construction and look forward to post progress reports. Stay tuned!

2010-10-22T14:13:00.000-07:00

I spent the last weekend in Park City, UT enjoying some family time with my wife and two little girls. I have been to Park City many times but I can't remember when I have seen the fall colors so vibrant. It was nice to get away to Park City when the crowds are down and we can rome the mountains feeling almost alone. I had a great time hiking and doing the Alpine Slide. For the first time my 5 year old beat me down the mountain. My girls loved the pool and are asking me almost daily if they can go to the pool.

I have been thinking the last couple of days thinking of what could write to truly help my clients in this changing real estate market. Just like the vibrant fall colors and slower time of year for Park City; the current real estate market will not last forever. Home prices and interest rates will go up, good deals of today will be a memory. Here are a few tips to help potential buyer and sellers in this market

Sellers

This is a interesting real estate market & it's a changing real estate market. Many home prices are over priced and sitting on the market for months and months without a price adjustment. It is critical to price your home to sell in the next 90 days. To price your home to sell in the next 90 days, sellers must make their homes the best home in their price range. This may included repainting, new carpet, new flooring, and other repairs. Buyers are looking for a neutral colors and clean homes for the best price. This is not the time to squeeze out another 5-10K because this will only help your neighbors homes sell faster.
I recently sold a home in Orem using these tips. I helped to get my seller's home sold within 90 days and into another home at an absolute steal. There are still 5 other homes for sale within 2 blocks. Pricing is key!

Buyers

You know that this is a buyer's market. The best buyer's market I have ever seen and maybe the best since the early 1900's. So do you rush out and buy any home to take advantage of this market. I want to warn you that not every home is a good deal and be very careful when it comes to short sales and bank owned homes. I have been very successful helping buyers and and sellers negotiate short sales and bank owned properties. But I have found through my experience that even though it is advertised as a distressed property, that they could be tens of thousands over priced and buyers don't realize it.

Just like my parents and teachers taught me, Do your homework! Spending 15 minutes reviewing recent comps could save you thousands.
I hope you find this information useful please send me a quick email letiing me know.
I look forward to helping you with your real estate needs.

Derrick Tornow
(801) 830-2030

2010-06-04T09:27:00.000-07:00

Why Smart Homeowners Are Moving Up at the Start of a Real Estate Recovery Cycle!

Most economic indicators point to a recovery cycle in the Utah real estate market. The flood of foreclosure properties is not materializing foreclosure filings are down. Still, with 7.5 million homes are at least 90 days late on their mortgage, banks are moving toward "short sale" solutions versus foreclosing.

The Fed has stopped its tax credit program. The Fed is moving away from buying mortgage-backed securities. Experts believe the Fed's next step is to raise interest rates after having "controlled" them at historically low rates.

What smart homeowners see: Short sales in your move up range offer great values. Low interest rates (for how long?) make this an ideal time to explore moving up. Everyone's situation is unique so call me for a no-obligation consultation to see if it's right for you.

Direct: (801) 830-2030

Email: Derrick@DerrickTornow.com

The $8,000 Tax Credit Ended & Now What?

2010-05-11T09:54:00.000-07:00

As you may all know the $8,000 tax credit ended on April 20, 2010. I am glad for everyone that took advantage of it. I hope they all remember me when Christmas comes around!

Now what? What is happening with the Utah Real Estate market since the end 2 weeks ago?

It is still a strong buyer's market with many homes on the market. Buyers, use some common sense when making offers on homes that are priced well. I have seen too many buyers offer too low on a great deal and end up losing the home to another buyer over a couple thousand. Have your real estate agent show you the latest comps and make response time short to prevent other offers.

It is not all doom and gloom for the sellers. I have been working long hours to make sure all my sellers' homes are getting the necessary exposure to find all the buyers. Since it is a buyer's market, sellers need to be more flexible with their bottom line. Don't let a couple thousand lose a qualified buyer. Maybe you lose more than you wanted on your sell but you will make it up on the purchase of a new home.

This is still the best time to buy a home in 50 years. Great deals are out there and many people are investing in real estate like no other time. Utah Real Estate was not hit as hard as California, Arizona, Las Vagas and Florida, but you wouldn't know it from the news.

For up to date Real Estate News in Utah feel free to call, email or visit my website www.DerrickTornow.com any time. Derrick Tornow - Building Your Foundation on Success!

Derrick Tornow