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





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

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





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 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 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





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