October 25, 2011

The Great Millionaire Maker

Posted to Brad & Liz Sears

More millionaires were made during The Great Depression than any other period in U.S. history!

The Great Depression!  Surprised?  How did that happen?

Great Depression Millionaires

  1. An economic down time is a good time to start a business. Starts up costs are much lower during a recession. Some of these entrepreneurs included Colonel Sanders, Bill Hewlett and Dave Packard.
  2. It was also a good time to buy an existing business and use the down time to get the product right before orders picked up. Well known businesses that were purchased during this time were John Deere, Reynolds Metals, and Douglas Aircraft.
  3. Those who could - bought Real Estate!

We are once again near the bottom of the Housing Market. Could this be your opportunity? Many market professionals say it is.

The Wall Street Journal recently printed an article entitled, “It’s Time to Buy That House.”

Market Watch.com recently told their readers that now is the best time to buy a house!

Many people are asking, “How low can it go?”  Factoring the combination of low housing prices and low housing interest rates, many experts are saying we are about there now. Although housing prices are predicted to drop slightly in the next months, interest rates could go up at any time and they could rise dramatically.

Is there any risk involved? YES! Most investment is a risk venture, especially in an unstable market. The amount of risk is the key. With years of experience in the home mortgage and home sales industry, The Sears Team is uniquely qualified to help you make wise financial decisions concerning today’s real estate market.

Posted by:  Brad & Liz Sears





July 25, 2011

The Last Days

Posted to Brad & Liz Sears

 

Are quickly approaching for homes priced above $600,300 in three Utah counties.

The current loan conforming limits constrain the size of home mortgages that Fannie Mae or Freddie Mac may purchase or securitize. After the 30th of September, these enterprises will no longer be able to buy or secure mortgages above $600,300 in three of Utah’s counties. This drop is over $129,000 from the current limit. As a result, it is predicted that home prices above the $600,300 limit in Salt Lake, Tooele and Summit County will fall.

It’s bad news for sellers – good and/or bad news for buyers depending on the situation. Ask The Sears Team to help you determine if this date will affect you.

Posted by:  Brad & Liz Sears





July 05, 2011

Fannie Mae and Freddie Who?

Posted to Brad & Liz Sears, Buyers, First Time Home Buyers, Owners

Who are they and what are they doing with my mortgage?

We so often hear the names Fannie Mae and Freddie Mac in connection with real estate and home mortgages. Who are they? Do they have any effect on my mortgage? How do I find out if my current mortgage is owned by Fannie Mae or Freddie Mac?

1. Who is Fannie Mae?

In 1938, following the Great Depression, Franklin Delano Roosevelt developed a plan known as The New Deal. It included the National Housing Act. As an amendment to this act, the Federal National Mortgage Association was established. This new association was given the nick-name of Fannie Mae.

Fannie Mae was created to provide local banks with federal money to finance home mortgages in order to make home ownership available to more Americans. Through the years, Fannie Mae has been a giant presence in the financial history of our nation. Some of it good; enabling millions of people to buy a home and some of it not so good; mismanagement, illegal political contributions resulting in gigantic fines, takeovers… you get the picture. Fannie Mae itself has split and there have been many splinter groups. Freddie Mac is one of them.

2. Who is Freddie Mac?

Freddie Mac is the nick-name of the Federal Home Loan Mortgage Corporation formed in 1970. This corporation was created in order to provide a secondary mortgage market.

3. What do they do?

Fannie Mae and Freddie Mac buy loans from approved mortgage sellers for cash or a mortgage backed security. The ‘mortgage company’ that you deal with such as Wells Fargo or Bank of America is actually only the ‘go between’ for you and your mortgage owner who is quite likely Fannie Mae or Freddie Mac.

4. How do I find out if my mortgage is owned by Fannie Mae or Freddie Mac?

It’s quite simple to determine if your mortgage is owned by one of these entities. Each of them has provided an internet site that allows you to find out if they own your mortgage. All you have to do is provide your address information and indicate that you are authorized to access this information. For Fannie Mae, go to www.fanniemae.com/loanlookup/. For Freddie Mac, go to https://ww3.freddiemac.com/corporate/.

5. What impact do Fannie Mae and Freddie Mac have on the economy?

Fannie Mae and Freddie Mac are big guns in the group called the GSE. The GSE is Government-Sponsored Enterprise. In 2008, the status of the GSE was threatening collapse. This was a primary cause of our current economic conditions. If they failed, the amount of money that could be lent to home buyers would have plummeted which would have severely limited the number of home buyers. The housing crash would have been much worse. Both Fannie Mae and Freddie Mac were placed into conservatorship of the FHFA (Federal Housing Finance Agency) to help prevent this from happening again.

6. What does this all mean to me?

This market has created some amazing opportunities for buyers. In any investment, it makes sense to ‘buy what’s on sale.’ Those who are selling their homes need buyers. Ask The Sears Team how you can ‘cash in’ and benefit from current market trends. This in turn will help local sellers sell their homes.

For all your real estate needs, contact your local real estate expert!

Posted by:  Brad & Liz Sears





July 03, 2011

Happy Birthday America!

Posted to Steve Randall

On this Fourth of July we celebrate 235 years as a country. We are blessed to live in such a wonderful land, and even with all the difficult issues we face today, we have much to be grateful for. One of those great blessing is what is often called the American Dream, or home ownership. Recent surveys show that 90% of Americans desire to own a home. One-third of us currently live in rental units, which serve as our temporary home until the time we can buy our own home.

Our standard of living is un matched in the world. We are blessed to live in a land where homes can still be purchased and sold as we choose. Where capitalism can still flourish, and where many take care of each other because they are neighbors. The strength of America lies in its people and in its neighborhoods. Happy Birthday America!

Posted by:  Steve Randall





July 01, 2011

Pending Sales in Utah Take a Big Jump in May

Posted to Steve Randall

One sign that buyers are active in the marketplace is the reduction the number of homes in inventory. Right now, Utah is seeing the lowest number of listings on the market since 2007. Pending sales jumped a whopping 51.8% over last year at this time. Pending sales are those homes that have accepted offers between a buyer and a seller but have not yet closed.

The speed of home sales is measured by absorption rate. Absorption rate is calculated by taking the total number of homes actively for sale and dividing by the number of homes that actually sold during any given period. A normal balanced market has an absorption rate of between five and six. This means that if no new homes were to come on the market, the current home inventory would sell in six months or less. Current MLS inventory along the Wasatch Front is 19,419 homes for sale.

Nationally, the pending home sales index rose 8.8% form what it was last year with all regions of the country showing improvement. For more information on the pending sales index click here.

Although this is good news, there are still thousands of homes coming on the market as foreclosures or short sales, plus new shadow inventory (homes not yet listed on the market) that will keep prices from rising in most areas. Homes sale median prices in Utah were about 5% less this year than last. That trend is likely to continue into the second quarter of 2012.

For specific details on any Utah neighborhood, .>

Posted by:  Steve Randall





June 20, 2011

Is It Better to Rent or to Buy?

Posted to First Time Home Buyers, Neighborhood Market Trends, Steve Randall

In today’s economy, is it better to rent or to buy?

This argument of rent vs. buy has again come to the forefront in Utah as home prices continue to decline and new lending standards make it more difficult for new home owners to qualify for a mortgage. For those of us who currently own have made a home purchase, and especially for some Seniors Citizens who now are using the equity they have built in their homes over their life time for retirement, owning a home has been a life-saver. However, for those first-time buyers in the market, renting may be the best option in order to save for a down payment and closing costs.

In a recent Deseret News articles published June 14, 2011, Lois Collins reports that the highest barriers to owning a home were as follows:

  • Saving for a down payment and closing cost 31%
  • Job uncertainty 21%
  • Your Credit Score 16%
  • Inability to get a loan 11%
  • Your current debt 9%
  • Concern if the home price will drop more 8%

Almost every pundit says that now is the time to buy. If you want to own your own home, the stars are still aligned. If you are an investor, then buying now is great, but also many will not buy for the reasons above and they will still need a home to live in. Great time for investors too. It certainly makes sense that owning a home will be the largest single asset when retirement approaches and remains a great investment. Renting is a great option while you save or prepare to choose a location in which to buy a home.

For more information on renting vs. buying please at anytime for comparisons.

Posted by:  Steve Randall





May 25, 2011

QRM: Quality Residential Mortgage

Posted to Brad & Liz Sears

The letters "QRM" seem harmless enough, but if you own a home, would like to someday or care about anyone who falls into either of those two categories, QRM is something you want to do something about.

QRM: Quality Residential Mortgage

From the name this sounds like a really good thing that should have happened 10 years ago. However, the definition of a QRM is well beyond what is reasonable for the average American, even those who have great credit and payment habits.

One of the many requirements is that a buyer must put down 20% when purchasing a home. During the 10+ years that I was a mortgage loan officer, there were a very few number of clients who could put down 20%. Not to mention that of those who could, many didn't want to tie up that much of their liquid assets.

QRM is a provision in last summer’s Dodd-Frank financial reform legislation that, if passed, would determine who can get a mortgage at what cost.

If you own a home now, imagine how difficult it would be to sell it if you were only able to sell to those who could put 20% down? Imagine what that would do to your home’s value? QRM will crush the housing recovery and we have the power to stop it.

Please Click Here and let congress know that 20% is an unreasonable requirement and will stop the housing recovery in its tracks. If the housing market crashes again, it will devastate our overall economic recovery.

It takes only a minute and together we can protect our housing market.

Posted by:  Brad & Liz Sears





April 20, 2011

Easter Candy Trivia

Posted to Brad & Liz Sears

Jelly beans made their first known debut during the American Civil War. William Schrafft of Boston encouraged sending jelly beans to soldiers in the Union army. However, it wasn’t until about 1930 that jelly beans became a common Easter candy. It’s believed that they were adopted as an Easter candy because of their likeness to Easter eggs. And of course, also because they are fun to eat.

If you think I know a lot about Easter candy, just ask me about Real Estate! Not only do I work hard to be an expert, I also love what I do and it shows in my customer relationships and work ethic.

Posted by:  Brad & Liz Sears





April 12, 2011

Real Estate in Ogden

Posted to Justin Stevenson, Ogden

One of the highest desired areas in the northern Utah area is the city of Ogden. The city of Ogden can offer you many things. With downtown 25th Street historic sites to the Ogden Botanical Garden there is always something fun to do. People in the Ogden area enjoy their surroundings and love where they live.

This great city currently has 373 active listings and 288 of those properties are single family homes. This means that Ogden is a great family-oriented area to live. In the last 90 days there have been 92 properties that have been sold. With this information we can find the absorption rate in this area. The absorption rate just tells us what the inventory is of homes in a given area, and in Ogden right now there is 7.5 months of inventory. This also tells us that the real estate market in the Ogden area is a buyer’s market. House prices are low and it is a great time to buy.

I currently own two properties in the Ogden area. One of the properties I rent out and the other one I live in with my wonderful family. I am a well trained and knowledgeable real estate professional in real estate in the Ogden area and I have first hand experience about the neighborhoods because I live here! Please let me know if you have any questions!

Posted by:  Justin Stevenson





March 30, 2011

East of Antelope Island, Davis County, Utah

Posted to Buyers, Colin Blackner, Northern Utah Recreation & Attractions

When you hear the word Utah you might think of the Bonneville Salt Flats, Skiing in Park City, Canyon lands, or Boating at Lake Powell. Thank goodness for the internet and your special know-how and ability to search and find millions of sites and blogs regarding what it’s like to live in Utah with its many treasures. Half way into most peoples search of Utah you may hear the words “I didn’t know that.” As you look close at that familiar map of the USA, that map we all grew up with, you’ll see that little patch of blue right in the middle of the Mountains: the famous “ can’t sink when you swim in it” Great Salt Lake located in Utah. If you drill down and move in for the bird’s eye view you’ll notice a big patch of dirt (42 square miles of it and known as the largest Island inside the United States), it’s called Antelope Island, with its 600 Bison and millions of waterfowl.

NOW if you scan on your map just 7 miles East of Antelope Island you’ll see Davis County and locate 15 amazing cities...

Websites for Davis County Cities

If you are relocating to Utah or simply moving closer to the Salt Lake City area, consider starting your search here in one of these 15 cities in Davis County. Thousands will be honored to have you as a neighbor.

Waking up each morning to see the mountains just yards away and then going to bed with Antelope Island sunsets sounds like a sales pitch, however it’s just the brutal truth. As a Utah Realtor living East of Antelope Island may I extend a special invitation for you to look me up or contact me personally? I would love the opportunity to assist you in locating the perfect home for you or your family to purchase or rent in Northern Utah and would be thrilled to answer any questions you have about living in Davis County or any other location in Utah.

Sunsets at Antelope Island and Bison

Summer fun at Lagoon

Hill Aerospace Museum Fighter planes

Print out this Utah map

Posted by:  Colin Blackner





March 23, 2011

New Year's Resolution? In MARCH??

Posted to Brad & Liz Sears

If you are like most people, old habits die hard and not very many (if any) of your New Year's Resolutions are affecting your choices. If this fits your situation consider why you set New Year's Resolutions to begin with.

**Was it because you really want to improve something about yourself?

If so, don't get down on yourself for being human and being imperfect at your first attempt at these new goals. Just break one or two (or however many you want) down to a smaller goal that you try to accomplish for that day or a small goal for each day. Overwhelming yourself with a HUGE goal right off the bat and expecting perfection is a perfect way to subconsciously decide, "this isn't worth my effort." So here are some options instead:

  • If your goal was to eat healthy, try just making sure breakfast is healthy and timely. Once you have that down, work on your snacks and so on.
  • If your goal was to get out of debt, spend a moment to see if there is an area where you are spending money which is unnecessary and could be put towards debt. One example is if you often grab a bite to eat when you're out. Try keeping snacks in your car to tide you over until you get home. It's actually surprising how this (and many other small habits) can add up.

I think you see where I'm going with this. Take your large goals and break them down. Then just work on one small part at a time. Studies have shown that people who consistently evaluate their lives and find small simple ways to become closer to who they truly want to be are happier. The catch though is to be kind with yourself and to be consistent. Good luck!

Posted by:  Brad & Liz Sears





March 15, 2011

Las Vegas Real Estate Conference

Posted to Steve Randall

The Leading Real Estate Companies of the World met in Las Vegas and members of the Welch Randall team including Steve and Kathy Randall and Trista Yost attended.  Click here for more details of the convention.

Posted by:  Steve Randall





March 01, 2011

Should I Wait to Make My New Home Offer?

Posted to Buyers, Steve Randall

We have a number of potential buyers wondering if they should wait until the market hits rock bottom before making their offer to buy a new home. To answer that question, you have to look not only at the price (the amount you pay for the home), but also the total cost which includes principle, interest, and PMI.  In today's Keeping Current Matters Blog, Steve Harney shares his insight and an example of why now is the best time to buy because interest rates are on the rise, moving the cost to purchase a home higher. Enjoy this post from Steve Harney.

Find Out if the Market Has Stabilized in Northern Utah Right Now!!!

Posted by:  Steven Randall





February 28, 2011

Are High End Homes Starting to Move in Northern Utah?

Posted to Steve Randall

Last week, we picked up a listing in the South Ogden area along the bench with a beautiful view. Two years ago, the sellers wanted to sell, but knew the market was not favorable to sellers. However, we are now seeing the beginnings of a turn in the luxury home market in South Ogden with seven home selling in the last 90 days ranging from $83 per square foot to $140 per square foot. There is no questions that spring will bring a flurry of new listings in South Ogden as more and more sellers look to downsize.

The question is how fast will they sell. We know that the buyer market for homes above $500,000 is a much smaller pool than homes less than $250,000. Yet for those buyers who have the money now would be the time to buy at the bottom. Interest rates are beginning to climb, and buyers need to be creative on how to structure a loan for luxury homes.

 

The Absorption Rate for Weber County as a whole is 9.63 for the last 90 day period. What that means is that with no new listings it w would take 9.63 months to move the existing inventory. A balanced market is between 5 and 6 months of inventory so we can see that it is still a strong buyer’s market. The absorption rate for homes above $500,000 is still quite high at 26.45 months currently. However, that number is down from 30.63 month of inventory just 12 months ago.

Points to Ponder:

Selling luxury home in Weber County or anywhere in Northern Utah right now will be a challenge. Sellers will need to have a great location, with a view, and all the amenities to get the price they want. Buyers will still expect closing costs and the price will have to be competitive for a luxury home to move in this strong buyers market. For more market details at any time.

Find Out if the Market Has Stabilized in Northern Utah Right Now!!!

Posted by:  Steven Randall





February 13, 2011

EZ Maintenance Protection Plan

Posted to Justin Stevenson

One of the biggest nightmares that an owner or investor has when renting out their property is maintenance at the property. In 
the last four year as a Property Manager I have seen all kinds of horror stories when it comes to maintenance. With some of 
them being: the residents being negligent to the property inside and out, cold weather that freezes pipes, and a car driving 
through a living room, it is important to be protected. Here at Welch Randall Realty we have an in house program that helps 
our owner clients feel protected. The EZ Maintenance Protection Plan helps relieve our investors from the stresses that come 
with maintaining a rental property. Unexpected costs due to “normal wear and tear” or unplanned maintenance expenses can 
consume rental income, eliminate cash flow, and even impede the ability to make mortgage payments. EZ Maintenance Protection 
Plan is designed to cover most common expenses with a deductible that will not exceed $60. EZ Maintenance Coverage includes 
the following systems:

  • Kitchen Appliances: including a dishwasher, range/cook top, garbage disposal, microwaves (built-in), refrigerator, and kitchen electrical fans.
  • Heating Systems: Furnace (gas and electric), thermostat, and ductwork
  • Air Conditioning Systems: condenser units, evaporative coolers, and ductwork
  • Plumbing Systems: Toilets, sinks, bathtubs, showers, plumbing fixtures, sump pumps, pipe or faucet leaks, water heaters (up to 50 gallon)
  • Electrical Systems: light fixtures including ceiling fans, central vacuum, garage door opener and remote, light switches and outlets, and bath exhaust fan

Reimbursement Formula: $500 or less is Full Replacement; Items above $500 is Full Repair/Replacement Cost - Depreciation = 
Payment (Applicable Deductibles Apply). Fixtures and Appliances are depreciated over 7 years while items attached to the 
property are depreciated over 10 years. An initial inspection or resident confirmation is required to insure that all systems 
are in proper working order. The monthly rate is $34.95 or 12 total monthly payments. There is no monthly payment made when 
the property is vacant. Not covered would be damage due to abuse, intentional damage, or damage due to fire, freeze, flood, 
wall repair to exposure wiring, and natural disasters. Cleaning is the responsibility of the Resident.

If you would like more information about the EZ Maintenance Protection Plan please contact me at 801-710-8081. 

Posted by:  Justin Stevenson





February 11, 2011

Waiting for Superman in East Layton?

Posted to Buyers, Neighborhood Market Trends, Sellers, Steve Randall

With spring just around the corner there are many who are wondering if now is the time to list their home. In fact, there are more who want to actually tour homes when the weather begins to warm up so there is some validation to that train of thought. For example, in East Layton there are several neighborhoods that lie east of Fairfield Road and west of Highway 89. These three neighborhoods are Summer-Haze, The Oaks at Mutton Hollow, and Oak Crest. This area is a popular area of East Layton to live. There are also some larger lots on Mutton Hollow Road with some newly remodeled homes that have a great deal of street appeal.

In the past year there have been seven homes sell in these neighborhoods. The average price per square foot for these homes has been $72.00. Now, every seller when they list their home wants to get the most for their home and sell it in the least amount of time. However, as a seller, we have to be careful to avoid thinking that our home is so much better than any other in the same market place that it will demand a much higher price. When a seller overprices a home hoping for the unique cash buyer, we call it “waiting for superman”!

In these three neighborhoods, there are currently 10 listings for sale in these late winter months and most are priced correctly in the $70 to $75 per square foot range. One is as low as $58 per square foot and two are at $84 and $138 per square foot. If you are a buyer and looking online, which homes will you tour? Most buyers will tour the homes that are priced correctly in these neighborhoods. The average listing price for the active homes on the market is almost $81.00 when the market is $72 per square foot or 13% above the average where homes are really selling. Overpricing a home waiting for superman is just wishful thinking. For sellers wishing to actually sell their home this spring, price it right for the spring market. Please remember, there will be more competition that will put downward pressure on your listing price so it is good to be below that average amount.

If you can’t wait for superman to show up to sell your home then let us help you with real-life pricing so that you can truly sell your home for the most money in the least amount of time. Contact me at for pricing assistance and current market information in your neighborhood. Here are the year-end results for Davis County where these three neighborhoods reside in the East Layton area.

Posted by:  Steven Randall





February 07, 2011

Difference between an ordinary and extraordinary home for sale

Posted to Colin Blackner, Sellers

Bradon Godfrey was an extraordinary player

Coming off of a Super bowl weekend it’s hard to believe football season is really over for the year. While coaching Little League Football for 14 years and living my life as a football fanatic, Saturday’s games couldn’t come fast enough for me. What a treat to coach so many amazing kids and have the opportunity to watch them learn how to play football. A few of them truly believed they would play in the NFL some day. Some went on to be great high school players, and a handful went on to play in College. Then there was #81 Bradon Godfrey who played my wing back position for me. Starting out as a Jr. Mighty Mite (8 year old) in little league, Bradon went on to be the only player from the state of Utah to a catch a TOUCHDOWN pass in a Sugar Bowl where the University of Utah upset fourth-ranked Alabama 31-17 January 2nd 2009. Utah was a 9 1/2 point underdog.

The difference between ordinary and extraordinary is that little “extra.” Jimmy Johnson

Selling your home in today’s market may seem like you’ve fallen behind. But you’ll see that you can change momentum at anytime in any game. There are many “how to” blogs that cover from A to Z on how to spruce up your home. All good stuff, however if your home has been listed for a while you may consider asking yourself a few tough questions.

1. What is it going to take to sell my home in the next 30 days?

2. Would dropping my price attract more buyers now or later?

3. Does my Realtor have his heart into selling my house? Pep talk time!

4. What would make this house simply unforgettable to potential buyers?

5. What kind of feedback are we getting from showings, just average? That’s not good enough.

6. Am I willing to organize and rejuvenate my home to create a showcase house?

7. Does my house smells like a wet dish rag or do I make it smell like a chocolate chip cookie?

8. Does my family do their part helping keep up the appearance of my home? Team effort now!

9. Could our family pet be just a little bit too friendly when potential buyers come through the door?

10. If I do that little extra right now instead of next month will it have an immediate impact on buyers? 

Every coach will tell you that you have to want it to be Extraordinary. A little extra here, a little extra there could bring more showings and the ideal offer you have been waiting for.

To a quick sale and a happy seller.

Posted by:  Colin Blackner





February 02, 2011

Property Management in Ogden, UT

Posted to Justin Stevenson, Residents (Renters)

In the city of Ogden there is a good mixture of rental properties and owner occupied properties when it comes to real estate. As the chart to the right shows, 63.6% occupy the home they own and 27.8% are rental properties. This information shows that there are more owner-occupied properties in Ogden than rentals. But it also shows that Ogden is still a good place to have an investment property as it show more than 27% of all the properties in Ogden are occupied by renters. Many people look for properties to rent in the city of Ogden for many reasons. A few reasons why they look to live in Ogden is Ogden is the home of Weber State University, and Ogden also attracts a lot of our military soldiers who are stationed at Hill Air Force Base.

Many of the investors I work with on renting out their properties have one main question that they always ask, “how much can I rent my property for?” Below is a list of suggested rental prices you could rent your property for in the Ogden area. If you have a property in a different area I can provide you with this information in that area. (My contact info: or 801-710-8081

Fair Market Rents: The Fair Market Rents show average gross rent estimates based on figures provided by the U.S. Department of Housing and Urban Development (HUD).

If you are an investor or looking to become an investor in the Weber or Davis county areas I would love to talk with you about the current market conditions and vacancy rates. Please contact me at or on my cell at 801-710-8081

Posted by:  Justin Stevenson





January 31, 2011

Are Home Prices Stabilizing in Northern Utah?

Posted to Neighborhood Market Trends, Steve Randall

The Utah Association of Realtors recently released their Local Market Update Report for the State of Utah which identifies market trends for the number of units sold and median home price trends for every county. In the Northern Utah Counties of Weber, Davis and Salt Lake, the market was not kind to sellers – with Weber County showing a 29.5% drop in 4th Quarter unit sales, Davis County showing a 31.6% drop in unit sales, and Salt Lake County showing a 27.2% drop in unit sales for the 4th Quarter of 2010 when compared with the same quarter of 2009. This shows the market is still soft but predictions are that unit sales will increase in 2011.

The median price of homes in Weber County for the entire year decreased 3.5% when compared with prices of homes in 2009. Davis County home values dropped 2.3% and Salt Lake County prices fell 3.5% when compared to 2009 prices.

Points to Ponder:

It appears that the rate of decrease is slowing but sellers must price their homes for the current market if they are to sell. The trend for 2011 will be for more unit sales but that will also be countered with an increase in listings from foreclosures, shadow inventory (pent up demand), and the normal new listings that will come in the spring. For sellers, it is best to price the home at the market value earlier in the year when prices are higher rather than in the second half of the year when prices will have dipped some more. For more details on specific neighborhoods and cities please  at anytime.

Posted by:  Steven Randall





January 31, 2011

Finding a Diamond in the rough-- Lease to own

Posted to Buyers, Colin Blackner



As you conduct your search on the Internet for lease to own opportunities, you’ll come across hundreds of Real Estate bargains speckled throughout each neighborhood.

READY, SET, GO, you’ve just left your 1st House; what a disappointment, you discover the home had been rented out 7 times in the last 3 years.  

2nd House; you just barely get out of your car to walk up the driveway when out of nowhere a policeman drives up in his car and sympathetically delivers the bad news that he had just busted the former residents and it’s a Meth house, what are the odds? 

3rd House; you just found the perfect home, finally a place to hang your hat. Terms and conditions are revealed. $50,000 down $600 Pet deposit, credit and background checks, minimum of 12 References and no mercy in this life or the life to come if PAYMENTS ARE LATE.

Too many prospective buyers feel this kind of frustration while trying to find a home for their family, especially for a family that has experienced financial hardships from the loss of employment or have been victims of circumstances beyond their control. Most need 12 to 24 months to repair credit and put their affairs in order. 

The Beauty of Lease to own is that there really is a perfect situation or home out there that will fit any family’s budget, or circumstances. It all starts with a fired up Realtor that’s willing to demonstrate his expertise and creativity. You never want to concede to just a few selections from your internet search. You’ll find that a vigilant Realtor will be excited to help you find a “diamond in the rough home,” which simply means a home that’s only had one or two owners. With this brings the peace of mind that this house will be kind of special and deserving of your family and that you have taken the necessary steps towards preparing the way for a better tomorrow for you and your family.

Time to Put your Realtor to Work

1. Ask your Realtor to start sending out emails to all agents who have listings that are 5 months old or older. There’s a good chance the selling terms of that home will be changing in a few weeks. You want to be 1st in line for a lease to own option to become available.

2. Ask your Realtor to research all the sales that have fallen through due to financing. The owners may have an offer pending on the sale of their home. A lease to own deal may save the deal and the day.

3. Have your Realtor screen 100% of those internet leads you have saved. Maybe there will be one that’s worth taking a 2nd look at. The MLS will provide us with up to date information and powerful reports to assist us.

4. If you see a home you like that’s for sale by owner, allow your Realtor to approach the seller on your behalf to negotiate a lease to own contract. Perhaps a fair offer may be the only activity this owner will need to entertain it.

Always just a phone call away,
Colin Blackner
Cell (801) 725-5463

Posted by:  Colin Blackner





January 27, 2011

Want to Live Near Snow Basin Ski Resort?

Posted to Buyers, Owners, Sellers, Steve Randall

Snow Basin was the host of the 2002 Winter Olympic downhill race course. I have traveled down its steep slopes many times but never at the speeds of the great skiers. A bedroom community near Snow Basin is Eden, Utah. We have several listings in the area as well as several lots to build a summer and winter retreat. It is a great summer and winter recreation area and priced much lower than Park City.

An offer came in on one of our lots yesterday. The current list price was about $70,000 down from $110,000 just a year ago. The reason for the reduction in price has to do with supply and demand. There are currently 38 competing lots for sale about the same size as our listing. There is one listing that is priced about $20,000 less but it has a slope which increases excavation costs and makes the lot less usable. With so many lots available, why did our lot get the offer?

Pricing! The seller priced the lot to attract any buyer who is ready to buy now!

Should sellers wait to put the Eden lots on the market until spring? It is predicted that more lots will sell this year. However, there are many sellers who are waiting to put their homes on the market in the spring hoping the lots will sell for more. Those who want to sell a home but have not actively listed their home at this time, contribute to what we call the “Shadow Market” inventory. When Shadow Market homes get added to the active market, supply will increase over demand keeping prices the same in Eden…or maybe even dropping a little more in 2011.

Point to Ponder:

If you are buying in Eden, buy now before interest rates eat up the savings you have with heavily discounted lots.

If your are thinking of selling, you will get more for your property in the first half of the year than selling in the second half of the year. For more details, never hesitate to .

Posted by:  Steven Randall





January 25, 2011

Is Fruit Heights a Buyer's Market?

Posted to Buyers, Sellers, Steve Randall

Yesterday I attended a closing with a client who had just purchased a bank foreclosure property in Fruit Heights. The house was a tri-multi level home with four bedrooms and in very good condition, surprisingly so for a bank owned property. The price for this 2,900 square-foot home was $246,000 with the seller paying closing costs. The backyard abuts to the golf course and the home has a beautiful view of the mountains and has close freeway access to Salt Lake.

The buyer was excited to have this home and felt good about the price per square foot he had paid. As we looked at the market conditions in Fruit Heights the absorption rate, which measures the rate of homes sold in a given period, ranged from 9.33 months to 11.20 month of inventory in the past twelve months. For sellers in Fruit Heights that is not good news because inventory over 7 shows that the market is still a buyer’s market and means downward pressure for home values in the area. The good news is that we seem to be making a turn and there is more good news that we are seeing now than we have in the past.

There remains some great inventory in Fruit Heights for buyers with values ranging from the low $100,000s to values that exceed a million dollars. For information on buying a home in Fruit Heights and negotiating the best value, please at anytime. If you are a seller, then we can help you price your home so that it will sell based on current market conditions. We are happy to share the latest market data for Fruit Heights.

Posted by:  Steven Randall





January 21, 2011

The Privilege of being a Realtor

Posted to Buyers, Colin Blackner, Owners, Sellers

It’s always a bonus to get a complementary email back from a client. A few weeks ago one of mine read “Thanks again for everything Colin! We’re so grateful & glad that you knew about this house.” Well let me just say that you are very welcome, and thank you for allowing me to come to know your family.

Just think back, it wasn’t that long ago that you could list your home with a Realtor on a Monday afternoon and like magic it would be sold by Saturday morning with 2 more offers sitting on the back burner. The Market was so hot that Realtors were collecting salesman of the week awards (because in just 3 days someone would take you out). Hummers and BMWs were flying off car lots as successful agents bought them up, as self evidence of all their hard work and hustle. Then the housing market changed on us overnight. Are you kidding me? Who was ready for this? Not Me!

Fast forward to today. It’s January of 2011; everyone is a little smarter now. Buyers and sellers have learned to be patient. Realtors have gone back to what matters most and that’s managing their clients’ Real Estate needs and making sure that the very best service we can give brings home the desired results.

This is where I want to impress upon everyone’s mind that I fully appreciate the opportunity to be a Real Estate agent. Please allow me to share with you 3 simply reasons why I love this profession.

1. My number one is the opportunity I have to work with so many good people. The Real Estate Industry is loaded with trained professionals. I would say that it’s the most diverse profession in the world. You will find little league coaches, scout masters, doctors, attorneys, aerobics instructors, accountants, and even an elected Governor. I’m keeping good company.

2. Number two is the opportunity I have to assist my friends, family, neighbors, clients, or anyone who needs special help with their Real Estate questions. You can’t beat the amazing feeling one has when you’ve helped a family find their future dream home. Remember picking out your 1st bedroom?

3. This reason may seem a little selfish, but as a businessman and life-long sales professional, I can’t tell you how much we enjoy as Realtors to experience success at all levels in this industry.

  • We love to earn your business and confidence.
  • We thrive on selling your home FAST and want to exceed all your expectations of us and the Broker we represent. 
  • We’ve received special training on how to help our customers get through this market.
  • We won’t make promises we can’t keep.
  • But we’ll strap on our helmets and go to battle for you.

Thanks for reading.

 | 801-725-5463 | Layton, Utah

Posted by:  Colin Blackner





January 20, 2011

Dream Home For Sale in Tremonton, UT

Posted to Buyers, Justin Stevenson

All the real estate agents are saying it, all the financial experts are saying it, I bet all your relatives are saying it, and I am saying it………“NOW IS THE TIME TO BUY!” With prices down and interest rates still low, now would be a great time to purchase the home of your dreams.

Your dream home can be in Tremonton, Utah. The city of Tremonton is a wonderful place to live and raise a family. The official website of Tremonton states the follow about their city:

“Tremonton City has all the advantages of a rural life style and yet its residents can take advantage of all the amenities of the surrounding metropolitan areas. Tremonton has a Mayor/City Council Government with an appointed Manager. There are five elected members and a Mayor on the Council who are setting the pace for Tremonton’s future.

The City is a full-service city that takes pride in keeping taxes low while striving to keep city services at the highest standard possible. The city has its own services, including police, fire, ambulance, public works, cemetery, water/wastewater facilities, library, senior citizen/community center program, and are all committed to providing the city’s residents with the best care possible.“

625 N 2450 W, Tremonton, UT. It is a 3 bedroom, 2.5 bath single family home that has a total of 1857 sq. ft. The owners of this property are motivated and ready to sell. The currently listing price for this home is $159,000.

This great home was built at the end of 2009 and has a great cul-de-sac location. It has two tone paint, upgraded carpet, neutral colors, and a 300+ sq ft finished bonus room. It’s a clean home with all 3 bedrooms and laundry located upstairs. The master bedroom includes a walk in closet and its own bath. Also included are large closets with organizers in all bedrooms. It has a great amount of storage space including built in shelving in the garage. It also features knotty alder cabinets plus a large corner pantry in a beautiful kitchen. The yard is fully landscaped including auto sprinklers and a vegetable garden. It’s a must see! Click here to see the virtual tour on this property.

To set up a time to see this home or any other home in the area, please contact me at 801-710-8081 or contact me by email at

Posted by:  Justin Stevenson





January 20, 2011

The Impact of Population Growth on Housing

Posted to Owners, Sellers, Steve Randall

It was interesting to me to find out that our national population growth each year normally adds about a million new homes on average. In the last 10 years, however, the growth rate has been 27 million new homes added which includes the bubble time up to 2010. When interest rates were very low, there was a marked increase in homes added as it fueled new construction and made homes more affordable for many more people.

I remember buying a home in the 80s when interest rates were at 18%! During 1982 housing didn’t see any increase in home units that year. High interest rates offered no incentives for buyers to make the move into a new home.

Even though the population may be increasing, the impact of the economy tends to determine the growth of additional homes in the marketplace. Jobs will be the key indicator of when home growth will start again. We are seeing signs of a recovery even in jobs with the Labor Department reporting 1.1 million more jobs now than at this time last year. We will let the politicians debate the argument over private and public sector jobs and the rate of job growth but we do seem to be in a positive turn to more normal housing growth.

POINTS TO PONDER:

In 2011 we will see about 5.2 million homes actually sell. That will be an increase of about 8% over 2010. That means that demand will increase this year. In 2012 demand will increase to about 5.5 million homes for sale according to the latest NAR numbers. I wish this was all good news for sellers but even though demand will increase, supply will increase more! That supply will be driven not only by the sellers wanting to sell in 2011, but also by short sale and foreclosure properties. This will keep prices stable at best and most prices will drop 2%-6% this year. That means that if you are going to sell, now is the best time to do so. You will get more for you home in the first half of the year than by selling later in the year! Economic factors this year will still trump population in 2011…and likely 2012 as well.

Posted by:  Steven Randall





January 18, 2011

How To Predict the Next Real Estate Bubble!

Posted to Buyers, Owners, Sellers, Steve Randall

An experienced real estate investor knows from following appreciation values in the past that real estate normally increases in value about 25% to 29% every five years. The normal appreciation since 1980 has been about 5% to 6% each year. However, from 2000 to 2006, real estate values increased a whopping 89% during those years. This was due to low interest rates, lenders willing to lend, and a desire by government to make sure everyone had a home… and nobody seemed to care if the buyer was qualified or not!

From history, we can predict future bubbles by watching past appreciation rates. There are times where real estate values will accelerate more than 6% per year but be wary of buying when values are increasing 14% - 15% each year because it will not be sustainable over the long run. If you roll the dice and hope to get in at the right time there is greater risk you assume… as so many buyers can now verify. It is hard to time the market and that is why so many are underwater at this time.

POINT TO PONDER:

There is an old saying that “pigs get eaten.” Meaning that when you try to capitalize on appreciation rates way above the norm there is a good chance it will come back to haunt you. Real estate is a great investment if bought responsibly. Now is a great time to buy real estate even though prices may drop another 2% to 6% in 2011. It is hard to time the market perfectly, but with prices down, inventories high, and interest rates low… the stars are now aligned. If you try to save a few thousand dollars more by waiting for a lower purchase price you will likely be caught on the other side of the equation with higher interest rates. Rates are now on the move up from their lows of several months ago. Overall cost would show now is the time to buy rather than waiting for a lower home price. Thanks to Steve Harney at Keeping Current Matters for pointing out that monthly costs now will be lower than if interest rates rise in the future.

Posted by:  Steven Randall





January 18, 2011

Is Real Estate Still A Good Investment?

Posted to Buyers, Owners, Sellers, Steve Randall

Last week I was driving to a HOA meeting in Salt Lake and listening to a popular talk show host on Fox News, Sean Hannity. The topic of discussion dealt with the economy, jobs, and the current confusion of where people should put their investment money. Sean mentioned that he had money to invest but did not trust the stock market even though it was doing much better now. He didn’t know much about commodity investing… he knew gold was doing well but wasn’t sure about how much longer that would last. He mentioned real estate but with the recent downturn of home values, foreclosures, and short sales he wasn’t sure about that either.

If you return to the year 2000 and had $100,000 to invest in the Dow, S&P, NASDAC, or real estate… what would have happened to that investment in the year 2011? With Dow Jones you would have gained 5.8% and your investment would now be worth $105,800. With the S&P and NASDAC you would have lost money and the value of your investment would now be $82,000 and $66,000 respectively. Had you invested in real estate, your $100,000 would now be worth $145,300. At the top of the bubble you could have earned 89% on your money. However, if you bought at the top of the bubble you are now likely underwater. The great thing about real estate is that if you hold on long enough, it will come back and if you rented your property you would have had income even though values might have declined.

POINT TO PONDER:

Despite real estate’s current dilemmas, for the long term it has returned the highest ROI in the last 10 years. With all the talk about changing social security, now would be a great time to start buying real estate to insure that the golden years of retirement remain golden. While property values have fluctuated in recent years, rental values have remained stable and in some areas are on the increase. Now is a great time to buy real estate.

Posted by:  Steven Randall





January 04, 2011

What's in store for 2011?

Posted to Justin Stevenson, Owners, Residents (Renters), Sellers

Looking back on the 2010 year many of us may think that the real estate market was hard to manage and many people lost out on a lot of money. In some ways this was true but it made us stronger and it made us more educated to know what to expect for the future. Let’s stay positive and make the 2011 year great. Don’t give up! If you need to sell your home, do it, don’t be afraid. If you are thinking about buying a home, do it, now is a great time to be a homeowner.

For those of you who need to sell your home for some life-changing reason like change of career, new addition to your family, or any other reason and you’re having a really hard time selling your home and you are losing money each month I have the solution for you. The solution is rent the property out. At Welch Randall Realty not only do we help real estate clients buy and sell properties, but we also have a property management department. So many of our clients get in a tight spot with a property and feel like they are going to lose it because they are having a hard time covering the mortgage. By renting the property this can help cover the mortgage owed on the property. This may sound scary because there are so many horror stories about renters and them destroying properties or them not paying rent. With a property management company those scares go away. Here are a few of the things that our property management services cover for our clients:

1. Placement of Internet Marketing syndicated on over 50 websites with over 40,000 clicks per month

2. Showing your property to potential residents

3. The screening of all tenants for credit, criminal and past rental history

4. The signing of approved Rental Agreements in accordance with Fair Housing Laws

5. Resident advantage Protection Plan extending the security deposit to $3,000 in accidental damage coverage and up to one month in skipped rents

6. View your history of owner draws and contributions

7. Sign-up to receive owner draws electronically

8. Download your management agreement and other important documents

9. View income and expenses for each of your properties

10. Run key financial reports on demand

11. The collection of rents and distribution of those rents by check to owners

12. Sending collection letters, or “Pay or Quit” notices to past due residents

13. The receipt of resident calls for service and the dispatch of contractors for repairs

14. Ability to track income, expenses, and bank balances online 24/7 and print reports on demand

15. Payment of contractors, utilities and mortgages where appropriate

16. Sending owners estimates of work to be done for approval per the Agreement

17. 30-day skipped rent coverage for owners with Smart Deposit Protection

For more information please contact me at justin@welchrandall.com or cell number 801-710-8081. As well please feel free to check out our company website at www.welchrandall.com

Posted by:  Justin Stevenson





December 21, 2010

Canyon Terrace Condominium 12-20-10.docx

Posted to Buyers, HOA, Justin Stevenson, Ogden

One community in the Ogden area that can’t be ignored is Canyon Terrace Condominiums. This wonderful community was built in 1985 and has become a true gem to the Ogden area. There is one property that I would like to highlight in this community that is currently on the market for sale. The unit that is for sale is 1452 S 1650 E Ogden, UT 84404. This property is currently listed at $99,500 and you are truly getting a deal at this price. The unit features 3 bedrooms with 1.5 bathrooms and total square footage of 1674. This Condo has been recently updated in the kitchen, bathrooms, and flooring. One thing that separates this unit from other units in the community is that this property has central A/C, it is an end unit, and it has incredible mountain views from the master bedroom.

The Canyon Terrace Condo HOA really helps keep this community a very desirable one. The HOA covers the water, sewer, garbage, as well as cable TV, and covers the landscaping during the spring and summer and the snow removal during the fall and winter.

Overall, this property is a great buy and is worth a second look. Check out the virtual tour.

If you have any questions about this property please contact me at or my cell 801-710-8081.

Posted by:  Justin Stevenson





December 17, 2010

When is a good time to BUY a home?

Posted to Buyers, Justin Stevenson

Many of my close friends and family, knowing that I am in real estate, always ask me at all the family parties “when is a good time to buy a home?” My answer is always the same……NOW! It is not because I am a salesman and I want their business, it is because I truly believe that now is the best time to buy real estate and let me explain why. One reason why now is the time to buy is because interest rates are at an all-time low. Many people don’t understand why this is such a big deal but it is a big deal. Buying a home with a low interest rate saves you so much money. The following chart from one of the great real estate trainers, Steve Harney, explains how much you can save:

*For the full article with this information go to http://kcmblog.com/2010/12/10/impact-of-rising-rates-when-buying-a-home

Another reason why now is a great time to buy is it is a buyer’s market which means that the pricing of a home is under market value so all the buyers are paying less than what the property is worth. So many people say they are waiting for a deal before they buy something, well folks there are tons of deals out there now.

If you have any interest in buying a home in the near future please contact me and I would love to help you find a great deal. Please contact me at or my cell at 801-710-8081.

Posted by:  Justin Stevenson





March 29, 2010

Common Causes of a Short Sale

Posted to Short Sales / Foreclosures, Steve Randall

Here in Northern Utah, most of the homeowners are not directly feeling the impact of the downturn in housing values unless there is a need to sell their home now. Indirectly, however, every homeowner is impacted when there is a short sale or foreclosure in the neighborhood as these homes tend to sell for less than the normal market values. As a result, surrounding home values are indirectly impacted as these homes become comparables used by appraisers to establish new home values.

One of the reasons the administration is trying to curb the effects of delinquencies and foreclosures is to stop the downturn of home values. As the values continue to drop, there are more homeowners who become at risk of a short sale. Unless the trend is curbed, equity in homes will continue to be lost. Last week, a new effort was made to assist more homeowners with mortgage modifications.

Most of us think that we will never be in a short sale or foreclosure situation but most of the major reasons for homeowners can happen to even the most unsuspecting owner. For example, here is a list of common reasons that would qualify a homeowner for a short sale:

  1. Job loss
  2. Business failure
  3. Payment increase or a mortgage adjustment
  4. Divorce or death of a spouse
  5. Illness
  6. Relocation
  7. Reduced income
  8. Mortgage fraud
  9. Predatory lending practices

As you can see, many of these common causes for short sales and foreclosures can and do happen to many of us and when they happen to our friends and neighbors it can have an indirect impact on us as well. For more information on short sales/foreclosures please contact our office.

Posted By: Steve Randall





March 19, 2010

Calculating and Analyzing Absorption Rate

Posted to Brad & Liz Sears, Buyers, Sellers

Have you ever wondered how fast homes are selling in your neighborhood right now? There is a way to measure it that will tell you which way the market is heading. Absorption rate is the measurement of the rate of sales in any neighborhood. For example, if 50 homes are sold in a month’s period, and there are 100 homes for sale in the market place, the absorption rate is 2; meaning that there are two months of inventory currently in the marketplace.

A balanced market of buyers and sellers is defined at 5-6 months of inventory. A “2” absorption rate means that the sellers have the advantage. A “9” means that the market favors the buyers and sellers can expect to discount their property values in order to sell their home. Included is a chart that show how the absorption rate can also indicate if the market is appreciating or depreciating.

For specific information on your neighborhood please contact me for a free absorption report.

Posted By: Brad & Liz Sears





March 19, 2010

Considering Other Options Than Foreclosure

Posted to Short Sales / Foreclosures, Steve Randall

In this post we deal with options other than foreclosure that a homeowner may consider. Some of the options involve a Realtor and other options do not.

Homeowners Have Choices:

  1. Refinance: Homeowners work with lenders in the new HAFA program to reduce monthly payments amounts. No Realtor involvement is necessary.
  2. Lender Workout: Lenders at time will work with homeowners to restructure the loan and forgive missed payments or add them to the end of the loan. Fees can be wrapped into the new loan and interest rates lowered. No Realtor involvement is necessary
  3. Sell and bring cash to closing: If the homeowner has other resources, lenders will expect sellers to liquidate assets and bring money to closing to pay off the difference in the mortgage amount and the sale price of the home.
  4. Short Sale: In a short sale the lender agrees to accept less than full payment and to at least partially satisfy the amount owed to the lender. Short sales won’t damage the homeowners credit as much, have less impact of the neighborhood home values, and are a more civil way for lenders to release homeowner’s from their obligations.
  5. Deed in lieu of foreclosure: this occurs when the borrower agrees to trade the property to the lender and the lender agrees to cancel the note. In declining markets, lenders are less likely to accept this alternative. No Realtor involvement is necessary.
  6. Do nothing or walk away: At times a homeowner may simply be upset that the value of the property has dropped or that the other options available are too difficult so they just decide to walk away. Homeowners should always check with their attorney and account about this option because the consequences can be far more substantial than for homeowners than those who attempt to complete other alternatives. No Realtor would recommend this alternative but a Realtor is not needed in this option.

There certainly may be other options not mentioned above and there are many variations to the options above. The Federal Government’s current recommended choice is a short sale or deed in lieu of foreclosure and new guidelines have been established to move these processes through more quickly.

Please contact me for further information on foreclosure alternatives.

Posted By: Steve Randall





March 18, 2010

Working towards a short sale instead of foreclosure

Posted to Short Sales / Foreclosures, Steve Randall

In this post we talk of a real life short sale in progress in Fruit Heights, Utah. The Sellers were transferred to another State just as the real estate market was beginning its decline in Northern Utah. When unable to sell the home for more than the mortgagee value, their Realtor called us and asked for assistance renting the property. A qualified renter was found but then the Sellers had a pay reduction which meant their cash flow turned negative and it became necessary to sell. After receiving several offers and no response from both the first and second lien holder, the collections calls from the second lien holder began to increase… as well as the pressure. Without any further resources to rely on, payments got further behind and the collection calls increased. Frustration set in and the thought process was just to walk away from the property and declare bankruptcy and put this whole mess behind them.

What sellers need to understand is that foreclosure and bankruptcy are the two options that are least beneficial to them. We normally continue to work to complete a short sale until the actual foreclosure takes place. There is no harm in giving lenders one last try at a short sale because they really don’t want to take the home back into their inventory either. Short sales are less costly to lenders than foreclosures. We would encourage Sellers to hang in there until it actually forecloses before walking away.

The administration instigated a new HAMP (Home Affordability Modification Program). There is now a greater chance that lenders will cooperate. Click here for a recent article in the Utah Realtor Magazine explaining the new procedures and timelines.

Here are the advantages of a short sale over foreclosure or bankruptcy:

Short sales will impact credit less; statistics show if the Seller is current on other bills, credit may be negatively impacted 50 -70 points. This impact will be for a 2-3 year period. Completed Short Sales are reported on credit reports as:

  1. Paid in full – Paid as agreed
  2. Paid – Settled
  3. Paid – Unrated
  4. Paid – Less than owed

Foreclosure and Bankruptcy will impact a seller’s score over 200 points and stay with the seller for seven years …and may remain even longer on a credit record. It means difficulty in making any further time purchases for furniture, cars, and homes. It raises the interest rate when you do find those who will lend to you. The impact is longer lasting.

In the new short sale model, lenders are given incentives to offer a short sale solution over foreclosure/bankruptcy; $3,000 is given to subordinate liens like CitiBank. Lenders are now being paid (incentivized) to do a short sale rather than a foreclosure.

Here is more information on the HAFA program to help short sale sellers; plus a real life story from a person who actually went through a short sale.

For more information on short sales please contact me as soon as you become delinquent.

Posted By: Steve Randall





March 16, 2010

Short Sales and Foreclosures --- A Trend or Tidal Wave

Posted to Buyers, Sellers, Short Sales / Foreclosures, Steve Randall

Short sales are not new to real estate practitioners but the number of foreclosures and short sales on the Northern Utah market currently is higher than we have experienced in many years. The economic conditions have resulted in job loss and pay reduction for many causing a rise in delinquencies and stress on homeowners. In 2009, nationally, there were 1.9 million properties where foreclosure actions were started. This year the number is anticipated to increase. We certainly are seeing our share of short sale and foreclosures in Utah.

What is a foreclosure? Some may think of a foreclosure as a greedy lender taking over an owner’s home. Others may think of abandoned properties that cause a loss of value to the neighborhood and community. Still others may see this as a way for buyer’s to pick up properties on the courthouse steps for pennies on the dollar.

A simple definition of a foreclosure is a legal process whereby the borrower is deprived of their ownership interest in a property because of nonpayment.

The reality of the situation is that lenders really do not want these properties back on their books and with some exceptions, most buyers pay close to market price for homes that are in good condition. Short sales, by definition mean that the borrower owes more on the home than the home is currently worth in the marketplace. As property values decline, more and more northern Utah homeowners are facing this possibility.

Many borrowers work with their lenders to negotiate a short sale rather than letting the property go into foreclosure. A short sale allows the borrower a way out of the mortgage with less impact on the borrower’s credit and allows the borrower to re-enter the marketplace in 2-3 years.

A foreclosure will be on the borrower’s record for at least seven years and can have a negative impact on the borrower’s credit of 200 points or more. As of April 5, 2010, the Federal Government is encouraging lenders to pursue the short sale remedy first before taking the foreclosure option.

There are many websites that give information on how to proceed with a short sales or foreclosure. For information on foreclosures in Utah click here.

For more information or assistance with a short sale or foreclosure action please contact me at your earliest convenience.

Posted By: Steve Randall





January 21, 2010

You Can’t Change Me! Using PDFs in Business

Posted to

While the title to this post might be a little misleading as to what I’m talking about it actually makes quite a bit of sense. For the past few years as I’ve been working in Property Management and Real Estate transactions I’ve become very acquainted with the popular PDF file. PDF stands for Portable Document Format. PDF’s are great because they are not easily manipulated, they are relatively small (making them great to send as attachments in emails), and almost everyone that owns a computer has some type of PDF reader. The fact that the document can’t be altered is one of the biggest reasons we love them… hence “you can’t change me!”

There are expensive programs that you can purchase that allow the user to do all sorts of crazy things with a PDF file. I’ve seen programs that allow you to highlight, put in captions, bookmarks, comments, change the colors, create hyperlinks, etc. While these perks are interesting I don’t have a need to use them often. That said, I can’t justify spending several hundred dollars just so I can highlight a section of a PDF.

Awhile back I did some quick searching for a cheaper way to create a PDF from a word processing document. Cnet’s www.download.com has become a place for me to search for the latest and greatest, free or cheap software. While looking around I stumbled across a program called PDF reDirect. EXP Systems LLC created both a free and professional version of PDF reDirect. I have had the free version installed on my laptop for about a year and use it almost daily. The free version allows the user to create a PDF from just about any type of file. I have had success in creating PDF’s from Microsoft Word, Microsoft Excel, Microsoft Publisher, Google Docs, WebPages, images, screenshots, etc. I love this program. The professional version costs only $19.99. It adds quite a bit of functionality to the free version. On EXP System’s website they have a comparison chart where all the differences between the free and paid version are listed. You can see that chart by clicking here.

As a Realtor® I often need to send offers, rental applications, lease agreements, etc. that have all kinds of sensitive information within the document. As we know not all email is secure. One of the best features that PDF reDirect offers is a way to encrypt (password protect) sensitive documents. I am now confident as I send emails because the recipient and I have established a password that must be entered before the file can be displayed.

To download the free versions of this program please click here. If you know of any other programs that might be helpful please let me know. If you have problems installing or using PDF reDirect I’d be happy to help. I can be reached at adam@welchrandall.com or on my cell (801)388-3035.

Posted By: Adam Stuart





January 05, 2010

Reasons Why Now Is the Time to Buy

Posted to Brad & Liz Sears, Buyers

We keep hearing that now is the time to buy because of “low interest rates,” “low house prices,” “tax credits” and on and on. But, you may ask, “What does that mean to me?” The most practical way to look at it is, “How will all of this affect my family’s budget?” because after all, that is ultimately what makes a difference to us on a month to month basis.

Let’s say that you have given yourself $1200 a month to go towards housing. Most people have a pretty good idea of what quality, size and location of home they can expect for $1200.

First, let’s consider the impact of Low Interest Rates:
It has been said that when the economy is balanced and where it ought to be, rates should be between about 7 and 8%. Right now rates are at 4.875%. It also has been said (by virtually every economist out there) that rates are expected to rise significantly once the Federal Government ceases buying mortgage backed securities which is currently powering the market towards lower rates. At 4.875%, your $1200 per month would buy you a home worth about $180,000. However, when rates go to about 7.5%, $1200 will only buy a home worth about $140,000. Pretty big difference.

Next, let’s consider the impact of Low House Prices:
Home values have gone down. A home that is worth $180,000 today was worth, on average about $210,000 during the peak in 2007. Home values will go back up. They always do, especially here in Utah where the economy is more stable than many other areas in the United States. According to information gathered from the Historical Mortgage Rate Data page from www.mortgage-x.com, and illustrated in the chart below, we see that in 2007, $1200 per month would have purchased a home worth $156,000.

If you compare your purchase of a home now for $1200 a month to someone who purchased a home back in 2007 for $1200 per month, you would have $54,000 more of a home while you are BOTH paying the same $1200 a month! ($210,000 value compared to $156,000)

Third, let’s consider the Tax Credit:
The Federal Government is offering tax credits worth $8,000 for First Time Home Buyers and $6500 for Repeat Homebuyers (certain restrictions apply) for the purchase of a home. This money could be immediately used to make a principal payment on your mortgage loan knocking off possibly years of payments. You could set it aside for a rainy day fund for all the many expenses that can come from owning a home. You can literally do anything you want with it. This definitely sweetens the deal when considering purchasing a home now.

And as if all of that was not reason enough, did you know that FHA loans are assumable? This means that if you lock in a 4.875% rate and later decide to sell your home, your buyer can assume your loan and keep your 4.875% rate so long as they qualify for an FHA loan! If you are selling the home for more than you owe, the buyer would simply need to pay you the difference separately which they can do many different ways. When you go to sell, imagine being able to offer a rate around 2.5% less than what they can get through any lender!! What a selling point!!

For more information about buying now and to view all the listed homes for sale in Utah, please visit my website at www.TheSearsTeam.com.

Posted By: Brad & Liz Sears





January 05, 2010

Millstone Manor

Posted to Buyers, Justin Stevenson, Sellers

In the 84404 area there is a condo subdivision that is one of the greatest places to live in this area. This subdivision is called the Millstone Manor. The Millstone Manor was built in 1986 but looks and feels a lot newer than that. The location of the Millstone Manor is one that covers it all. With the condo location right at the month of the canyon is makes it easy to zip up the canyon to go skiing or snowboarding at the local ski resorts such as Wolf Mountain and Powder Mountain, also during the summer it allows you to fish and ski on the Pineview Reservoir. On the other hand the Millstone Manor is located close to I-15 as well as downtown historical 25th St. At the Millstone Manor during the summer you may see a lot of happy people because there is a pool located in the middle of the subdivision that helps keep the residents cool on those hot summer days. One other benefit we can’t ignore is the property backs right up to the Ogden River which makes Millstone Manor residents feel as if they are at one with the nature.

In the Millstone Manor subdivision there are currently six properties that are on the market for sale. Of these six there are many shapes and sizes. One property that I would like to tell you a little more about is unit number ten in building one. This property is a two bedroom one bathroom condo that has the best view of the river in the whole complex. This property is currently listed below the rest that are for sale. Unit number ten is listed at $72,000 and would make any family happy.

If you are currently looking for a property in the Ogden area then Millstone Manor is the place for you. If you would like more information about unit #10 that is listed for $72,000 please call or email at 801-710-8081 or justin@welchrandall.com.

Posted By: Justin Stevenson





January 04, 2010

The Next 10 Years!

Posted to Neighborhood Market Trends, Steve Randall

Welcome to a new year! We survived the 2009 real estate market! In fact, we actually had some good news in last half of 2009 with unit sales rising in many parts of the country and some price ranges actually seeing some appreciation. In some areas in Layton and other parts of Northern Utah we saw some appreciation. We don’t want to be overly optimistic because we know that recovery will be slow and some economists fear a “double-dip” economic recession if unemployment numbers don’t show greater improvement. There will be some rough waters to navigate this year as well.

In 2010 we still face a higher than normal inventory, declining home values in most price ranges, high unemployment leading to delinquencies, short sales, and even foreclosures. Credit is still tight but the worst is likely behind us. Recovery will be slower than we all wish for, but still we will see progress in 2010 in the Utah housing market.

A recent Deseret News article outlines some of the changes coming to Utah in the next decade that will impact our lives in the next 10 years. Here are the full details of the article.

Utah, especially Northern Utah, will have some great things to look forward to starting with an estimated increase of 700,000 new residents in the next 10 years. The bulk of that population growth will be centered in Northern Utah. Additionally, Utah will draw some high tech jobs and companies as part of its “entrepreneurial heritage.” Research now being conducted at Utah’s major Universities will continue to draw top notch companies which will want to employ Utah’s highly educated work force.

Transportation will be expanded with new smart-car technology that will communicate with each other adding new features and greater safety. Utah Transit Authority (UTA) will have five new Trax lines completed by 2015. Real estate values will increase around the station locations. In addition, the Mountain View Corridor will be completed to Provo and I-15 expanded to accommodate the new growth coming to Utah. Each expansion of transportation will lead to more growth and an increased demand for new housing, existing housing and a strong rental market through the next ten years.

Utah’s economic growth will outpace the US economy in the next 10 years with the real question being how well will the US economy do in the next 10 years. Utah’s advantage has always been in its educated, reasonably priced work force. That advantage is expected to continue into the next decade.

To review the top 10 stories for national real estate trends in 2009, we refer you to Steve Harney’s blog which we have highlighted in a previous blog post. For the statistics on how we in the Beehive State did in 2009, please refer to this NAR report for Utah.

One thing we know for sure is that there is nothing to fear in 2010 that a buyer, seller, or investor with the right information cannot use to their advantage. For those in Northern Utah who want to know how the recent market changes have impacted home values, please contact us for a free, no obligation, Competitive Market Analysis. Welcome 2010!

Posted By: Steve Randall





December 31, 2009

The Close of the Year Brings the Close of a Transaction

Posted to Ogden, Steve Randall

Yesterday I attended what most people call “a closing.” In this case the client was the family Trustee for a home where the parent had passed on, leaving the property vacant. The home that sold was located in the Day Break Complex in South Ogden. During the time we were at the “closing” the escrow officer asked if this would be my last “closing” for the year. I pondered for a few seconds realizing that this year was almost over and that I would be starting over with more closings… but all would be into 2010.

The client and I began to talk about “closings” in general and I thought it would be good to review the differences between “closing” and “settlement” because it can be important to know the differences.

Yesterday, we were actually at “settlement” even though most people (including most agents) call it a “closing.” Settlement is where the parties involved in the transaction meet with a title escrow officer who reviews the paperwork including lending documents and the HUD-1 Statement to be sure all is in order. The Buyer and Seller meet with their respective real estate agents in a comfortable conference room… normally at different times and often with different title companies. Once the documents are all signed and there is total agreement, the property is then recorded by the County assessor and the money is sent to the parties as outlined in the Settlement process which took place earlier.

The recording process and the distribution of money is called “closing” in Utah. In this case both processes took place on the same day but in most cases there can be a 24 to 48 hours difference in time between settlement and closing.

Once the house is “closed,” the buyer becomes the new owner of the property and can begin to move in. The transaction is for all general purposes considered to be complete.

Closing is the ultimate goal for the seller and the buyer as the seller gets the money for the property and the buyer is anxious to receive title to the new home.

As we close this year we wish everyone a happy and prosperous New Year with many successful “settlements” and “closings.”

Posted By: Steve Randall





December 30, 2009

The Absorption Rate of Homes and Pies!

Posted to Ogden, Steve Randall

Each week we pick up five or six pies made by our Layton Marie Calendar’s Restaurant to serve to our clients when they visit our office. So if you are ever hungry just stop by the office and ask for a piece of pie! It is our way of saying thanks to our valued customer base. The interesting thing about pies is the rate at which they sell is dependent on the time of year and the specific holiday. Shortly after Thanksgiving I asked our local manager, Diane, how many pies she sold over the three-day Thanksgiving weekend? I knew they were busy and I was thinking that they might have sold 500 pies or more! I cajoled Diane let me know her count and was shocked to learn that she lead the restaurant chain with 9,645 pies sold in that three day period! On a subsequent visit after the Christmas Holiday, Diane reported that they had sold over a 1,000 pies which was good for this particular holiday but nothing like Thanksgiving. I learned that selling pies, like selling real estate, is dependent on the time of year and the particular holiday. Thanksgiving is the holiday that leads the way as the best time to sell pies.

In real estate we also measure the rate of sales just like Diane did with her holiday pies. The rate of sales is called the “Absorption Rate” and before we give any of our sellers or buyers information on the best time to list a home or to buy a home we always look at the absorption rate for their particular neighborhood. The newly updated MLS system allows each of our agents to quickly calculate the rate of homes for sale in any area and also gives the rate of sale by the price range homes are listed.

In a balanced market the rate of sales ratio is between five and six months of inventory. A lower ratio number means that inventory is scarce and the market favors the Seller. When the number is above six then inventory is more plentiful and it becomes a Buyer’s market forcing Sellers to compete on price, home condition, and the payment of some or all of the closing costs. Knowing the absorption rate is critical information for any Buyer or Seller to know. The Absorption rate is also an indication of whether prices are appreciating or depreciating… and the rate of that change.

The actual absorption rate is calculated as follows according to the MLS definition:

Absorption Rate is the ratio of the number of listed properties (Actives) to the number of sold properties over a given length of time. Absorption Rate is an indication of Inventory or Supply.

Total No. of Current Actives X No. of months back
————————————————————————— = Absorption Rate
No. of U. C.’s + No. of Sold’s

In a closing today in South Ogden, the absorption rate for this price home was 11.68 for the past 30 day period. That means this area was a strong Buyer’s market. The Seller’s property was priced for the current market and sold before year end while three other properties in the area remain on the market with no offers. In this case the Seller paid closing costs and the property was maintained in good condition so that it stood out against other homes currently for sale. Just like pies move faster at Thanksgiving, homes in the summer months move faster as well. Add the additional incentive of the tax credit and home sales really increased up to the end of October. The Absorption rate for the summer was in the eight range versus an eleven range after Thanksgiving.

While a lot of people normally pull their homes off the market in the winter in Northern Utah, the tax credit may be just the incentive this winter season to keep the home on the market so that buyers will have more inventory to choose from.

If you would like more detail on appreciation rates for your area or the absorption rate for your neighborhood in order to make a decision to buy or sell, please contact our office.

Posted By: Steve Randall





November 25, 2009

Time to Give Thanks

Posted to Justin Stevenson

Every year during the week of Thanksgiving I always sit and think of all the things I am thankful for in my life. I am grateful for many things like family, friends, sports, and a wonderful job. One thing I am always thankful for is the opportunity of owning my home. My wife and I have owned our condo for the past two and a half years and it has been great. The feeling you get when you buy a home is something that is hard to explain but it is a feeling of satisfaction. Knowing that you are paying for your home versus paying for someone else’s home when you rent is such a great feeling.

Many people may feel that now is not the time to buy, but they are wrong. Now is the best time to buy. With interest rates as low as 5-6%, the first-time home buyer tax credit of $8,000 extended until April 30, 2010 and now the new tax credit for people who have lived in their property for at least 5 years can now receive a tax credit of $6,500 when they buy new property. If free money is not an incentive for you to buy a home I don’t know what is! For those who don’t qualify for the tax credit you can still take advantage of the low interest rates. Either the tax credit or low interest rates or both…now is the time to buy.

For more information about the tax credit and how it works and who qualifies for the tax credit please contact me by email at justin@welchrandall.com.

Posted By: Justin Stevenson





November 17, 2009

For Rent!

Posted to Justin Stevenson, Ogden, Residents (Renters)

Renting a property may sound easy to some people but to others it is one of the hardest things they ever have to do. Also many people are scared to rent out their home because of all the horror stories that are out there. I am not saying that horror stories don’t exist in renting out your home, but if the property is managed right many of the headaches that owners of rental properties normally have can be handled. In the current real estate conditions, many people are turning to property management companies to help them with their investment. The key to successful property management is a good system for every procedure along with a good support team. Many times investors who have rental properties lack the ability to enforce the contract that the tenants sign. As a Property Manager there is a fine line between a friendly relationship and business relationship and it is very important to always have control of the business aspect in the rental property.

One important step when it comes to renting out a property is making sure that the prospective residents are qualified for the property. As a member of the Good Landlord program here in Ogden city, one of the requirements for a landlord is to run a background on every client that would like to rent the property that is over the age of 18. The screening process can really make or break the future of that rental property. There are a few things that we check to make sure that we are renting to good qualified residents. The first thing we check is their credit to make sure there are not any outstanding collections or bankruptcies. The next thing we look for is to make sure that the client does not have any criminal background. One other thing we check is their rental references from a past landlord. Finally, one of the last things we check is the client’s income and their current place of employment. Now, each property management company and landlord has different expectations or qualifications for the clients that would like to rent their properties. It is just a matter of setting the standard and sticking to that standard for every client.

I enjoy being in the business of property management and I love helping people with their investment properties. I take pride in the skills and training I have developed over the years that I have been doing this and I am grateful for the experiences I have had. If any of you have any questions about property management please contact me by email at justin@welchrandall.com.

Posted By: Justin Stevenson





November 09, 2009

Location, Location, Location

Posted to Justin Stevenson

When it comes to real estate one of the most important things you look for is a good location. As I sit down and talk with clients they are always looking for the best location for their families. I have not always lived in this great state of Utah but I am starting to enjoy what Utah has to offer. I grew up in the busy state of California where I would have to travel long distances to get to the great outdoors, but here in Utah it’s right in your backyard. Being in Real Estate we have the opportunity to travel from city to city and see what each city has to offer. Each city has something a little different than the other, if it is farm land, mountain trails, ski resorts, city life, or a subdivision it is all great here in Utah.

One of the best opportunities we have to check out other locations and properties is on a day we call Halloween. Going from house to house and from one neighborhood to the next you have the chance to see what is out there. Even though candy is involved I always like to evaluate a home and see what styles I like and dislike so when it comes time for me to look for a new house for my family I know what I am looking for. It does not matter if you are not in a position to make that next step and move into your dream home yet - it doesn’t hurt to start looking. As the famous Boy Scouts’ motto goes “always be prepared,” so it is always good to prepare for the future.

Utah is a wonderful place and has great locations where you can find happiness in raising a family. I always thought growing up that I would never move out of California and leave the beach but now that I see what Utah has to offer, I am proud to say Utah is a beautiful place to live.

Posted By: Justin Stevenson





November 03, 2009

Home Prices Again Show Appreciation in South Ogden and Riverdale!

Posted to Ogden, Steve Randall

While most of us prepare to head to the polls to vote today, there is some good news for residents living in South Ogden, Riverdale, and some Ogden areas. Single family homes in zip codes 84405 and 84403 show home prices appreciating at 3.3% and 3.8% respectively. South Ogden has shown appreciation in each quarter this year while the Riverdale areas appreciation rate started in the second quarter of this year.

In other areas of Weber County, prices this year have declined from 1.9% in North Ogden to as much as 23.4% in the Marriott/Slaterville area. There are still negative pressures for South Ogden and Riverdale due to unemployment concerns and an economic recovery for the private sector but these areas at least may be showing price appreciation and may have reached their low point in value last year.

To track home values since 2003 for any Zip code in Northern Utah just click here. This is a great day to exercise our rights as citizens to choose our elected officials. Enjoy that right by voting and go to the polls knowing that recovery has started in some areas of Northern Utah. For market information about your specific neighborhood or your home please send me an e-mail.

Posted By: Steve Randall





November 03, 2009

First Time Home Buyers Now Enjoying Incentives! What is the future of Interest Rates?

Posted to First Time Home Buyers, Steve Randall

This week we have two clients that are closing on their homes in Layton and Syracuse. These first time home buyers will be enjoying the benefits of low interest rates and the $8,000 tax credit. During the last two weeks they have been able to lock their loan rates in the low 5% range and obtain seller concessions to cover most of their closing costs. The absorption rate, which measures the rate at which homes are selling, have temporarily changed from a Buyer’s market to a Seller’s market in some cities in Davis County. This is a result of buyer pressure to use the tax incentives and low interest rates before the tax credit is set to expire at the end of this month. Interest rates have returned to their lows of earlier this year.

In today’s Wall Street Journal, the future of interest rates are discussed with the general consensus that interest rates will increase in the future, reducing the affordability of new homes. In general, lower interest rates caused by the government’s backing of security based bonds will not last forever. There will be a raising of the interest rates in the months ahead even thought it will be slow and gradual. In the past, low interest rates have been followed by steeper increases in rates. High unemployment numbers and a very fragile economy will keep the Federal Reserve conservative in these increases.

The point is this, first time home buyers should not delay their purchases but should take advantage of the $8,000 tax credit, which is likely to be extended into 2010, and low interest rates while they last. Homes have never been more affordable than right now and waiting will only add to the risks on increased mortgage costs. For more information on how fast homes are selling in you specific neighborhood, please contact me directly.

Posted By: Steve Randall





October 28, 2009

Fernwood Hollow Subdivision

Posted to Brad & Liz Sears, Neighborhood Market Trends, Ogden, Salt Lake City

Over the years many homeowners have taken their search for homes north of Salt Lake City for the simple idea of getting more home for their money, a chance to escape the fast paced city life and a quiet place to raise a family. The little extra commute time was a small sacrifice compared to all the benefits. Years down the road each little town and city got more populated, faster paced and a lot busier. Now people are moving further and further north for a chance at a life they grew up with. However, I’d like to tell you about an amazing neighborhood nestled in the upper hills of East Layton called Fernwood Hollow. Located only 20 minutes from downtown Salt Lake and 15 minutes from downtown Ogden, this East Layton neighborhood encompasses this lifestyle and a more convenient location.

Fernwood Hollow is a matured East Layton subdivision that offers peace and tranquility, and is hidden away by the vast amount of trees and gullies. It seems nearly invisible from the busy fast paced city life. All the homes have their own unique look, lot sizes range from .50 to over 1.00 acres and home prices range from $230,000 to $800,000.

This East Layton neighborhood is close to hiking, biking and horseback riding trails as well as within 7 minutes of three water parks (Layton Surf and Swim, Cherry Hill and Lagoon A Beach a division of Lagoon Park). Cherry Hill and Lagoon Park also offer many other activities, rides and more. Snow skiing, water skiing and camping are all within a 30 minute drive.

Fernwood Hollow has quick easy access to Highway 89, I-84 and I-15.

Visit my Fernwood Subdivision website to view a full tour of the neighborhood, plat maps, school information, local business, demographics and available homes for sale.

Due to the popularity of East Layton and Kaysville the averages show that homes in this particular neighborhood sell within 4 months which indicates good movement and a stable market according to the absorption rate. To view the homes for sale in this neighborhood, visit my website and click on the Fernwood Hollow Subdivision.

Posted By: Brad & Liz Sears





September 01, 2009

What Two Factors Sell a Home

Posted to Sellers, Steve Randall

For the past several weeks we have been running about Northern Utah showing properties to those who want to take advantage of the $8,000 tax credit. The rules are that you need to be in your home by November 30, 2009 to qualify. This is free money to incent the purchase of real estate. As a result we are busy trying to find just the right home.

One of our clients is looking for herself, her mother, and her aunt and we have looked at homes in Weber and Davis Counties in the $150,000 range. Several of these homes we have liked have already gone under contract because there are other buyers out there as well. Lesson learned is that if you like it make an offer now and not come back in five days after looking at other homes.

As we have looked at many homes I have watched my buyer carefully review each home with an open mind thinking to herself how this home might meet her family’s needs. We have been to some very good homes and a couple that we wonder will ever find a buyer. One home we visited was in such bad condition that we opened the door… were hit with smells that made us turn right around and leave. As we backed out of the driveway and pulled away an officer turned on his squad car lights and pulled us over. He wanted to make sure we weren’t the owners… or dealing drugs as some of the neighbors had complained about after hour visitors. We assured him that we were upstanding citizens and he let us move on to our next house! What drew our buyer’s attention to this house? It was the price. What turned her to another home? It was the condition of the home.

This may be an extreme example, but the two factors that attract buyers in this market are price and condition. If it is not priced to sell and the condition is not good… buyers move on to the next property. The best advice to give our Sellers is to price it right and see that the condition of the house is the best it can be.

Later we visited a home that was priced right and in very good condition and that is the house she made the offer on! Now you know… Price and Condition!

Posted By: Steve Randall





August 13, 2009

Home Value Code of Conduct (HVCC)

Posted to Steve Randall

New legislation and policies governing the lending process are now in place and having an impact… good and bad. One of these changes is the new Home Value Code of Conduct or HVCC. The intent of this change is to give appraisers a space, free from outside influence, to give lenders a correct value for a home. The intent of the change is good but there are always unintended consequences with any new piece of legislation.

Before HVCC, lenders were able to choose their appraisers and could exercise some influence on those decisions made by the appraisers. In addition, Realtors could also contact appraisers and send comparison properties used in setting the listing price which also had an influence in the appraiser’s decision. In most cases this system worked well but there were also many cases where some felt the appraisers were being unduly influenced.

HVCC changes how the process work so that lenders and Realtors are limited in their contact with appraisers .

Now the process is that lenders contract with an AMC company who chooses an appraiser and works directly with appraisers. This lessens the outside influences on appraisers and the intent is to give appraisers a path to more accurate appraisals. The intent of the law is good.

There are unintended consequences however that are not good for both buyers and sellers. For example, using the AMC as a middle man means that appraisers are getting less money for appraisals because the AMC is taking a part of that revenue for their services. Now appraisers must do the same work for less money. Some local appraisers may turn down work and as a result appraisers from outside the area are doing those reports. Appraisers may travel 60 to 130 miles to do appraisals in areas that they do not know well. Furthermore, HVCC causes each appraiser to be cautious in the choosing of comps (I would too in these circumstances).

The net result is that appraisals are taking longer and may be lower than the market value causing some transactions to fall apart. As long as our sellers and buyers are aware of the possible bump they are normally OK and can make the needed adjustments.

We had a home in West Point, Utah that had this very issue hit them this month. The seller had to adjust the price and the buyer had to give up some closing costs to make the transaction work.

Posted By: Steve Randall





August 11, 2009

How Precious Is Your Time?

Posted to Brian Morris

How precious and important is your time? If you had 20 to 30 hours of extra time, what would you do? Would you spend more time with family; how about skiing, hiking, biking, fishing, knitting or even earning more money? How much would you be willing to pay per year for an extra 20 to 30 hours? I want to spend some time speaking to self-managing real estate investors and how they can recapture 20 to 30 hours of their lives.

Before doing so, let’s make some assumptions and form a foundation on which to build our discussion. Let’s assume you own a small duplex that has gross rents of $1,000 per month. Your property is a good property, but there are the normal wear and tear issues you attend to. Although your vacancy rates are low, you still advertise your property two or three times per year because of expired leases, skip outs or evictions. When vacancies occur, you do spend time doing extra cleaning so that the property is ready to show to interested parties. You also take calls from potential renters, review applications, and perform credit and background checks. You typically have no problem collecting rent, but you do need to call tenants from time-to-time to remind them they are past due. Occasionally you post Pay or Quit Notices for residents who still don’t pay after your reminder call. In short, you do quite a bit of work maintaining and operating your property; possibly more than you assume.

Throughout your ownership of the property you have probably wished that there weren’t so many issues. You haven’t taken any extended vacations for fear that something would go wrong with no one there to handle the problem. If you have taken a vacation, you may have received a call from your resident about a dishwasher not working or a plumbing leak. There have been times when you have an important deadline at work and are interrupted by an issue at the property that needs your immediate attention. Isn’t it wonderful to be an investor/property owner?

Now let’s discover how you can relieve yourself of those responsibilities and let the property generate income. You can typically hire a property manager or management company for 7% to 10% of the gross monthly collections. The services these companies provide can include the following:

  • Advertise your property with “For Rent” or “For Lease” signs. They also will advertise the property on websites and/or do virtual tours giving more exposure.
  • Screen and select prospective tenants. Note: make sure management company will abide by all fair housing laws.
  • Negotiate lease agreements and ensure all paperwork is filed properly
  • Collect rents, security deposits and other funds in the operation of the property
  • Serve termination, pay or quit and/or other notices as necessary
  • Employ legal counsel to enforce and protect your interests as a property owner
  • Dispatch facility management personnel on service requests
  • Work with service and supply vendors for the operation and maintenance of your property
  • Perform repair services in the absence of the owner. Note: these repairs should only be completed after written notice is previously sent.
  • Perform and complete emergency repairs related to “water,” “blood,” or “fire” so that the property is protected and owner liability is reduced

Again, assuming that, as we did in the beginning, you collect $1,000/month for rent you would spend $70 to $100 per month for management services. But where are you recapturing the 20 to 30 hours? Well, at a going labor rate of $40/hour if you divide that into your monthly management fee, you will have 1.75 to 2.5 hours per month to attend to other pursuits. Over the course of the year, that will be 20 to 30 hours. How many times have we caught ourselves asking for a little bit more time in our lives? Many people can generate one, two or three thousand more dollars in 20 to 30 hours, which definitely offsets any management fees with a little extra to spare.

Again, How precious and important is your time?

Posted By: Brian Morris