Archive for September, 2007
Fun From Gary
September 22nd, 2007 Categories: Not Real Estate
Fun From Gary
I have a friend named Gary, he is older than I am that I know. How much older I am not sure, age was never really part of our conversations and his health is not so good. We thought we lost him recently but he has too much information to past on.
Because of his health he spends a lot time in front of a computer emailing to his list of friends. Gary sends a lot email and he knows most are not read. That is not why he does it, he does because he wants to share his knowledge with those he knows and loves, I am sure there are people on the list that don’t know him too well.
So anyway, I want to share a little humor I received this morning from Gary.
Cafeteria Food 
When the power went off at the elementary school, the cook couldn’t serve a hot meal in the cafeteria. She had to feed the children something, so at the last minute she whipped up great stacks of peanut-butter and jelly sandwiches.As one little boy filled his plate, he said, “It’s about time. At last — a home cooked meal!”
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Things To Know When Buying A HUD Home In Salt Lake
September 21st, 2007 Categories: Buying
Things To Know When Buying A HUD Home In Salt Lake
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1. What is a HUD Home?
Actually a great question. A HUD Home is a home that had a Loan that was insured by the Federal Housing Authority (FHA) and has foreclosed. It is a bank repo but had a certain type of loan. So pretty much owned by the tax payers.
2. I am an investor can I buy a HUD Home?
During the first 10 days a property is listed it is available for Owner Occupant Purchasers only. All bids placed by Owner Occupants that are submitted from Day 1 through Day 10 are opened on the 11th day and are considered as though they were received simultaneously. If there are no acceptable owner-occupant bids on day 11, then bidding becomes available to all purchasers on a daily basis.
3. I am a First Time Buyer (FTB), do I get any special deals on a HUD Home?
The answer is no because you are a FTB, however there are sometimes deals that are offered in an “Officer/Teacher Next Door ” program. That will be discussed in a future post
4. How do you buy a HUD Home?
All HUD Homes that are available for sale are listed on our www.MCBREO.com and on the MLS. If a property has an accepted bid or is under contract it is removed from the web listings. Only HUD-registered real estate agents can place bids on behalf of their buyers. For a bid to be awarded it must meet the threshold for the property (lowest acceptable amount) and have the highest net to HUD (not purchase price). A sales package should be completed at the time of bid submission. Once a bid is accepted the purchaser and real estate agent have only 48 hours to submit the Sales Contract Package to MCB. If the sales package is not received within the deadline then the bid acceptance may be cancelled. If there are no acceptable bids placed on a property then it remains on the market until an acceptable bid is received.
5. Will HUD Pay closing cost?
HUD will allow some of the closing cost to be paid. However know that some cost are not allowed to be paid by HUD, you do not get a rebate. So make sure your Loan Officer and Realtor have HUD Experience.
6. If we are bidding online do we have to Earnest Money?
Yes. An earnest money deposit is required for all HUD property purchases with the exception of some HUD Special Programs. The amount required for the earnest money deposit depends on the purchase price of the property:
7. Can I buy a HUD Home with an FHA loan?
Yes, but please know that purchase amount is over the list price, that amount must be paid in cash. FHA will not loan any amount over their list price.
8. How does HUD determine their List Price?
Fair Market Value is determined by a licensed FHA appraiser. Copies of the FHA appraisal are available to the lender by request after a property is under contract. If a property is exposed to the market without any acceptable offers then a reduction of the listed price may occur.
9. Can you bid lower than the asking price on a HUD Home?
Yes you can. However typically HUD Homes that are in decent shape and depending on the area usually go for more than list price. The list price is usually aggressive enough to cause multiple offers and therefore drive up the price to full market value. This is also market driven. (because FHA will not loan an amount more than the asking price, I believe this is HUD’s way of not getting the house back).
10. How do you find HUD Homes?
You can go to the site that has the Utah HUD Homes it is www.MCBREO.com look for the Utah link and click in.
11. How Can I arrange to look at a HUD Home?
Owner Occupant and Investor purchasers MUST be accompanied by a broker or agent when viewing any HUD home listed for sale. Buyers may not enter a house without their broker/agent for any reason prior to closing. Brokers and/or agents must accompany any individual performing services such as home inspections, appraisals, or certifications. Brokers and agents may only use their keys for their own legitimate use. Keys are not permitted to be lent to any other individuals associated with any sales transactions.
12. Can I get a home inspection?
All HUD Properties are sold in their “AS-IS” condition, HUD does not make any repairs to the property. As such, it is extremely important that the purchaser performs a home inspection with the utilities activated. The home inspection will provide the most current condition of the property and inform you of any repairs that may be necessary. The gas, water, and electricity should be activated at the time of the home inspection. To activate the utilities a permission form can be found under HUD Forms on our website, this should be completed by the purchaser and agent then faxed in for approval. Utilities may be activated for a period of 72 hours so the home inspector should be scheduled to complete the inspection during that timeframe.
13. Does HUD make any Repairs to the property?
No. All HUD properties are sold in their “AS-IS” condition. There are no representations or warranties, expressed or implied, on any HUD property. HUD does not guarantee the condition of any property, FHA-insurable or not, nor whether it meets local codes or zoning requirements. Purchasers are advised that there may be code and/or zoning violations on these properties and that it is the responsibility of the purchaser to identify these violations. Buyers are very strongly encouraged to have homes inspected by a qualified home inspection company to satisfy themselves as to the condition of the property at the time of sale.
14. What does HUD stand for?
The United States Department of Housing and Urban Development, it is a Cabinet department of the United States government. Although its beginning… more about HUD
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FHA Is Roaring Back To Life In Salt Lake County
September 18th, 2007 Categories: FHA
FHA Is Roaring Back To Life In Salt Lake County
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For the past few years home buyers have been getting non-government, (it is hard to call some of the past loans conventional) to finance their homes. During this time FHA loans became almost non- existent! In fact, most lenders and agents in the business today have never done an FHA loan. Two thirds of the UT Real Estate Agents have entered the industry in the last five years. Over the past five years the lending business has changed dramatically. Loan officers are now required to be licenced. However, this has only been a requirement for a short amount of time. So with that said most real estate agents and most loan officers don’t have experience with FHA loans.
Because of the loose underwriting guidelines (subprime loans; no document loans) that we have had in the past few years, why would people do an FHA loan? With FHA more documentation is needed, such as: bank statements, pay stubs, tax returns, and verification of income. Imagine some bank asking DO YOU HAVE A JOB? Who has time to find that stuff?
What is an FHA loan? An FHA loans is normal loan except it is “Insured” by the Federal Government. The federal government DOES NOT loan the money. Typically when you have less than 20% down you pay what is called a mortgage insurance. It is an amount that is added to the payment and it goes to the Mortgage Insurer and it insures the lender in the event of a default.
To be an FHA approved Mortgage Company there are requirements. They must have assets, a $250,000 net worth which 20% must be liquid. Credit Report on all Senior Officers or anyone with 25% or more ownership, minimum 3 years experience and a quality control plan. Hmm knowing that Utah has had the distinct honor for leading the nation in loan fraud, choosing an FHA approved company might not be a bad place to start.
In the past FHA Loan amounts were not in line with the markets and physical 
requirements for a home were a little nitpicky and were not realistic. Some examples were a minor crack in an insignificant basement window or a handrail going to the basement that wasn’t varnished. “You have to love that the Federal Government, Corporate Raiders were fleecing pensioners of their life savings and they’re measuring varnish millage on a handrail of an 85 year old house.”
Because of these antiquated requirements most veteran agents stayed away from them and for very good reason.
Over the past few years FHA has been aggressively getting up to speed with the market place. They’re loan amounts are rising to meet market demands and there is legislation going through the system right now that will put FHA in line with FANNIE MAE and FREDDIE MAC guidelines. They are more realistic in their physical nitpicking. They’re minimum safety standards are good just not silly anymore.
In the last few years while a lot of mortgage companies were setting themselves up for bankruptcy, FHA 
has been polishing it’s armour to be the shinning knight that it is.
So if you are talking to a loan officer mention FHA, if you get responses like. They’re no good. We can get get you a better loan than that. TRANSLATION, they are not an FHA approved lender, read the above requirements again.
When confronting a non FHA lender you will hear tired old augments like, FHA requires mortgage insurance. The sub prime lender will tell you they have an 80/20 loan with no MI. Let’s see a 80% first mortgage at 7% interest rate and a 20% second mortgage at 10% interest rate. Hmm if you can’t see where the MI in that scenario is they might offer to sell you swamp land in Florida. Then one of their old trump cards is MI is not tax deductible. As of January 1st, 2007 those households whose adjusted gross income is $100,000 or less their MI premium will be 100% tax deductible.
So here are some basic physical guidelines for FHA: (that still apply)
· Can’t have wood to earth in the foundation
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How Your Deadlines Can Help or Hurt You When Making an Offer In The Salt Lake Market
September 17th, 2007 Categories: Buying
The buyer typically will have the contingencies of an inspection, appraisal and to finish their loan. All of these items come with deadlines that are set when the buyer makes an offer to purchase the property. It is then accepted, countered or rejected by the seller.
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It has been argued that a Buyer’s agent should seek to get the longest possible dates they can. Therefore, protecting their client; makes sense to me. For example: if the inspection deadline is for 28 days past the acceptance of the contract, then the buyer can cancel the contract on the 28th day “Just Cause”. However, a listing agent that is protecting their seller will look at that and say, “We will give you the time you need BUT we are not going to give you that much time.” Sometimes when the deadlines only favor the buyer, the seller will consider it a bad offer and may flat reject it. If another buyer were to come along and make an offer and the home was sold out from under the buyer, there was no service to the buyer.
To make a really strong offer a buyer should take the time needed to do their diligence but be aggressive and do it quickly. A seller will notice that you are serious buyer and this can help when negotiating the price. I believe that an inspection deadline should be around seven days and no more then ten. Personally, I like to do the inspection immediately. If the Buyer gets the inspection done on the property and decides that they no longer want to purchase the house; that is perfectly fine and is well within their rights to cancel the contract or make an objection, if so, let’s do it quickly and move on.
Once it is determined that the inspection is Okay, then I order the appraisal. I do not like to order the appraisal and have my buyer liable for the payment if we do not get past the inspection. The appraisal deadline should be about fourteen days, followed by the loan denial which should be about twenty one to twenty eight days, depending on the type of loan and the underwriting time.
Summary:
- Inspect the property
- Appraise the property
- Finish the loan (an approved buyer must have the property approved before the loan can be completed)
- Close
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“Why Would I Want To Pay A Home Owners Fee For A Salt Lake Condo?”
September 16th, 2007 Categories: Buying
“Why Would I Want To Pay A Home Owners Fee For A Salt Lake Condo?”
In my career I hear this a lot about condominiums. People often object to Home Owner Association Dues known as HOA fees. I found that most people don’t really know what they really are and why you pay them. Typically, an HOA fee will cover, Water, Sewer, Trash, Exterior Maintenance (such as: lawn Service, snow removal.) It also covers hazard and liability insurance for the building. THE MASTER INSURANCE DOES NOT COVER YOUR PERSONAL PROPERTY. It will take care of all the common areas, such as: swimming pools, workout rooms, club houses, playgrounds and equipment. Obviously, the more the amenities the higher the cost.
So then the question is, “is it a waste or a simple trade off?” Well it really depends on the management of 
the community. Remember it is a Home Owners Association, meaning all of the owners are the managers and make the decisions. If the board of directors elected by the Owners is aggressive and runs a tight ship it can be an awesome thing. There is an economy of scales when purchasing things like satellite, cable, Internet services. You will find it is pretty much a wash providing that you would not cut your own grass, shovel your own sidewalks and take care of some minor upkeep on the exterior. For those that have busy schedules or value their spare time too much to do those things a Condo and the HOA fee are a perfect match. If enjoying a good book or relaxing in the great outdoors appeals to you more.
So then the question is, “is it a waste or a simple trade off?” Well it really depends on the management of the community. Remember it is a Home Owners Association, meaning all of the owners are the managers and make the decisions. If the board of directors elected by the Owners is aggressive and runs a tight ship it can be an awesome thing. There is an economy of scales when purchasing things like satellite, cable, Internet services. You will find it is pretty much a wash providing that you would not cut your own grass, shovel your own sidewalks and take care of some minor upkeep on the exterior. For those that have busy schedules or value their spare time too much to do those things a Condo and the HOA fee are a perfect match. If enjoying a good book or relaxing in the great outdoors appeals to you more.Let’s face it when you buy a home you have a homeowner’s fee. You pay your own water, sewer and trash. You have a hazard insurance and the joys of cutting the grass or paying someone. The real difference is you pay it out in multiple checks.
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Salt Lake’s Cottonwood Heights Makes Top 100 Cities
September 15th, 2007 Categories: Cottonwood Heights
2 Years Old and in the Top 100 Cities! Cottonwood Heights, A Salt Lake City suburb. Cottonwood Heights is known as the city between the canyons is Salt Lake’s newest and most attractive city. Cottonwood Heights was just recently named one of the top 100 places to live in the United States by Money Magazine
Information about Cottonwood Heights:
· Population: 28,400
· Median home price (2006): $330,155
· Average property taxes (2005): $1,964.
Its location is prime, 20 minutes from downtown Salt Lake City and 30 Minutes to Park City. It sits just south of Holladay and north of Sandy on the East bench. Close to I-215 for easy access to the University of Utah and Research Park. For fun Cottonwood Heights sits at the mouth of Big Cottonwood Canyon which offers world class skiing and hiking till’ your heart’s content.
Outside of Salt Lake City, Cottonwood Heights is home to the largest number of Class A office space in the state.
There are parts of two school districts in Cottonwood Heights, Granite and Jordan. Currently there are eight elementary schools, six middle/junior high schools and four high schools in the public system. There are private schools like Intermountain Christian School that has pre-K through 12. While there is still work being done to possibly create a new East Side School district; which several cites on the East side would separate from the Jordan school district. Feasibility study, Appendices and Should we create a New School District Booklet.
Home to the Cottonwood Recreation Center which offers Indoor and Outdoor Swimming, Tennis, Ice Skating, Hockey, Workout Facilities and all around fun for the whole family.
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The Millionaire Real Estate Agent-Its Not About The Money
September 14th, 2007 Categories: Books
By far one of the best books ever written for real estate agents on how to have a successful business. It is a scientific approach to selling real estate. Gary Keller, Dave Jenks and Jay Papasan interviewed well over a hundred real estate agents that were doing high volumes of business to see what the common denominators were.
They have reduced it to four models that they all had. A good percentage had five common models, but all had these four.
Economic Model
Lead Generation Model
Budget Model
Organizational Model
The MREA book as it is affectionately called is the overview. Keller Williams Realty along with it’s Keller Williams University really gets in depth with the models teaching agents how to be successful.
Contact Us To Give Your Real Estate Career The Adrenaline It Deserves.
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