Archive for December, 2007
Salt Lake County Real Estate Market Statistics
December 30th, 2007 Categories: Salt Lake County
Well we are closing this year out and so much has happened in the Real Estate World in 2007.
Just about the beginning of the year the lending started to get a little shaky or I should say starting to correct itself back to normal. The first quarter lenders started closing their doors, by mid year the results of the loan practices of the last few years were showing itself in full bloom.
Some parts of the nation went in to a total backward slide in home prices. States like Michigan, Florida were hit pretty bad. Michigan’s woes can be tied to jobs, while Florida is home of the speculators. We had agents in our office here peddling Florida stuff. I have a hard time believing there are agents in Florida offices peddling Utah products.
We had the media all over the board. Reports of the sky is falling, in some parts of the country and in some parts of Salt Lake County that is true. But to give a report on national TV that is not a good time to buy Real Estate because… Is like saying that the weather forecast for the United States is going to be sunny and 77 degrees tomorrow. Real Estate is not a national product, it is VERY, VERY, VERY local. You can have more than one set of conditions inside of one zip code. Not only is it silly to report on a national level, it is irresponsible.
Salt Lake County Real Estate Prices
We started out the with the average home price for January 2007 being $255,898 with highest average for the year up to $292,558 (12.5% increase) with December’s average so far around $272,750 (a respectable 6.25% increase for the year).
Salt Lake County Real Estate Market Statistics
For Statistics of the Salt Lake County Real Estate Market, some reports don’t fit well in a blog roll, so I put it in a PDF for easy viewing.
It is a month by month report being compared by the same same month for 2006 & 2007. Reports for Number of homes sold, average days on market, average list price. average sold price. average list price to sale price ratio.
These statistics are based on data as reported by the Wasatch Front Regional Multiple Listing Service.
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A Comparative Market Analysis
December 28th, 2007 Categories: Selling
Salt Lake Comparative Market Analysis
How is the value of a home determined? This is great question that has more than one answer.
Home Values from a Buyer’s Point of View
From the buyer’s perspective it is supply and demand. They comparison shop, they will look at all the homes in their area and price.
They will compare the price along with the features and benefits that are associated with the property. Things like area, square footage, number of bathrooms, garage, condition…
As you can see the example in the table below, it is that simple. The property that offers the most features and benefits for the best price is the one that has the most value to a buyer.
Table 1.1
|
Item |
Prop # 1 |
Prop # 2 |
Prop # 3 |
| List Price | $200,000 | $200,000 | $190,000 |
| Area | Similar | Similar | Similar |
| Sq Ft | 2,350 | 2,300 | 2,450 |
| Bedrooms | 3 | 3 | 4 |
| Baths | 2 | 2 | 2.5 |
| Gar | 2 | 2 | 2 |
| Condition | Fair | Fair | Remodeled Kitchen |
Things Don’t Have an Affect on Value
What you paid
What you owe
What you want
What you need
Home Values from the Bank’s Point of View
Banks use appraisers to determine value. Appraisers use a comparative method, but they go by past history instead of the active listings. The bank is looking for a justification that the property is worth x amount of dollars. Appraisers aren’t really looking for a value as much as they are justifying a purchase price.
Now let’s look at the table below and we will use the same information except we use it as recent sold properties.
Table 1.2
|
Item |
Prop # 1 |
Prop # 2 |
Prop # 3 |
| Sold Price | $200,000 | $200,000 | $190,000 |
| Area | Similar | Similar | Similar |
| Sq Ft | 2,350 | 2,300 | 2,450 |
| Bedrooms | 3 | 3 | 4 |
| Baths | 2 | 2 | 2.5 |
| Gar | 2 | 2 | 2 |
| Condition | Fair | Fair | Remodeled Kitchen |
Using the table it would be safe to say that a similar property is worth $200,000. So you can see that the two tables have the same info but it depends on the perspective.
Now that we have looked the way banks and buyers looked at value, we have to factor in that this information is fluid and is changing on a daily basis.
Determining the value of a home is not a cut and dry process, it is an art not a science. The national online sites try to capture traffic by offering home values, when the truth be told, the best source is an experienced real estate professional, not someone that just got their license in the last year or two. Someone that has been through the market cycles before and clearly understands what is going on in the local market place.
If you are interested in a FREE list of comparable homes that have sold in your area you will get real info from a local agent that is active in the market.
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City Of Cottonwood Heights, Borders, Schools and Zoning Maps
December 26th, 2007 Categories: Cottonwood Heights
I get people asking me, what are the boundaries for Cottonwood Heights?
Well that is not a cut and dry answer. Although Salt Lake County is laid out in a nice grid system that is very easy to navigate, the cities themselves do not follow straight lines with their borders.
So I am putting up some links for the City’s Boundaries including the Schools, Zip Codes and Zoning.
City of Cottonwood Heights Maps and Borders
City Maps
School Maps
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Cottonwood Heights Montessori Christmas Program
December 25th, 2007 Categories: Cottonwood Heights
Enjoy a scene from the Cottonwood Hieghts Motessori Christmas Program
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Mortgage Rates In Salt Lake City
December 20th, 2007 Categories: Real Estate News
Rates have gone up a little in the last week, or should I say last rates dipped a little below six. There are deals out there.
Conforming mortgage rates mentioned below are considered with loan amounts up to $417,000 for a single family residence and is owner occupied. It is with proving your income and a “full document borrower”.
The rates quoted are based on a purchase price of $200,000 on a 30-day lock. On these conforming loans, there are no prepayment penalties involved.
Conventional and Government Loan Interest Rates
|
Program |
Rate |
APR |
| 95% | 5.88 | 7.04 |
| 100% With Mort Insurance | 6.13 | 7.54 |
| 100% No Mort Insurance | 6.5 | 7.43 |
| My Community 100% | 6.50 | 7.43 |
| VA 100% | 5.88 | 6.05 |
| FHA 97% | 5.88 | 6.80 |
If you would like any additional scenarios done, please call for that information at 801-747-1233 and ask for Cindee or email to Cindee@CindeeStone.com
| Discussion: 1 Comment »
Mortgage Fraud Utah In The Top Ten
December 20th, 2007 Categories: Mortgage
The headlines are everywhere.
FBI Launches Mortgage Fraud Task Force in the Nation’s Capital
Easy loans + red hot real estate = the perfect recipe for mortgage fraud
Mortgage Fraud 101: Investigator Finds 400 “Crash and Inflate” Scams
I am always amazed at the creativity of the techniques used to commit fraud. I remember sitting in a Continue Education Class a many years ago that was on loan fraud. I came out of there with what were pretty good ideas. I often wondered did the class help educate or teach more people how to commit fraud.
My general rule of thumb is. The words creative financing and an institutional bank are not usually spoken in the same transaction.
I sometimes get the question. Why can’t a buyer and seller agree to do what they want? The answer I always give is, they can. But if there is a bank involved they now have a say and if the buyer and seller make an agreement that the bank is not aware of is not creative financing, it is fraud.
Usually money is somehow siphoned off the top. In order to do that there has to be more money than reality or the original seller would just keep it.
So the value has to be inflated. The real losers are those honest folks that purchased homes and their values were determined by those falsely inflated home prices. Because when the music stops and the prices slide back and all the fraud folks are just giving their properties back or selling them short. The guy that put down real cash is losing value on his home.
Of course the banks lose big time, but they are not so innocent, loaning money to people with no jobs and bad credit. They should know better.
The old axiom proves to be correct again. Why do people commit loan fraud? Because that’s where the money is.
| Discussion: 2 Comments »
International
December 20th, 2007 Categories: Architecture
Initiated by European architects–such as Mies van der Rohe–in the early 20th century, this is the style that introduced the idea of exposed functional building elements, such as elevator shafts, ground-to-ceiling plate glass windows, and smooth facades.
The style was molded from modern materials–concrete, glass, and steel–and is characterized by an absence of decoration. A steel skeleton typically supports these homes. Meanwhile, interior and exterior walls merely act as design and layout elements, and often feature dramatic, but nonsupporting projecting beams and columns. With its avant-garde elements, naturally the style appeared primarily in the East and in California.
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Mortgage Rates In Salt Lake City
December 14th, 2007 Categories: Mortgage
Rates have gone up a little in the last week, or should I say last rates dipped a little below six. There are deals out there.
Conforming mortgage rates mentioned below are considered with loan amounts up to $417,000 for a single family residence and is owner occupied. It is with proving your income and a “full document borrower”.
The rates quoted are based on a purchase price of $200,000 on a 30-day lock. On these conforming loans, there are no prepayment penalties involved.
|
Program |
Rate |
APR |
| 95% | 6.25 | 7.43 |
| 100% With Mort Insurance | 6.38 | 7.78 |
| 100% No Mort Insurance | 7.00 | 7.19 |
| My Community 100% | 6.88 | 7.80 |
| VA 100% | 6.00 | 6.81 |
| FHA 97% | 6.00 | 6.17 |
If you would like any additional scenarios done, please call for that information at 801-747-1233 and ask for Cindee or email to Cindee@CindeeStone.com
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More Reasons For Salt Lake Home Buyers To Use FHA
December 14th, 2007 Categories: FHA
Banging On My FHA Drum Again
There have been a couple of changes recently in the lending arena, Fannie Mae and Freddie Mac have added a new risk assessment fee and they are adding “delivery fees”
First let’s look at the risk assessment fee for those buying with a higher than a 70% loan to value ratio.
Credit scores will determine the amount of the rate adjustment.
- Credit scores between 660-679: 0.750% of loan size in fees
- Credit scores between 640-659: 1.250% of loan size in fees
- Credit scores between 620-639: 1.750% of loan size in fees
- Credit scores below 620: 2.000% of loan size in fees
This can have an impact on home prices, because when qualifying for a loan, the borrower is based on a monthly debt to income ratio. The same amount of monthly income is now able to borrow less money.
I like this solution so far, it doesn’t affect people that have good credit or a large downpayment. Let’s face it, if you have a less than favorable credit history and no down payment, you are a higher risk.
Now let’s look at the other fee.
Fannie Mae
Fannie Mae’s new fee is called an “Adverse Market Delivery Charge”
Freddie Mac
Freddie Mac’s new fee is called “New Market Condition Postsettlement Delivery Fee”
They both are charging an additional .25% fee at closing. Although it is not a huge cost, this one appears to be across the board. The other fees are based on credit score which is the best way to determine the risk. This one is a little unfair, because it lumps everyone together.
FHA Loan and Limits In Salt Lake
Now with all that said, they DO NOT apply to FHA or VA Loans that are insured or guaranteed by the Federal Government. Although FHA an VA have always had a upfront fee FHA Does Not Use FICO Score, VA has it’s own set of rules that are pretty similar to FHA.
Hmmm, I wonder which loan program is going to be become very popular in the next couple of years. So I am going to bang on my FHA Drum again. I know FHA only goes up to $362,790 in loan amount. That is approximately 83% of all the homes sold in Salt Lake County this year.
8 Reasons To Use An FHA Approved Lender
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Gothic Revival
December 10th, 2007 Categories: Architecture
The influence of English romanticism and the mass production of elaborate wooden millwork after the Industrial Revolution fueled the construction of Gothic Revival homes in the mid-1800s. These picturesque structures are marked by “Gothic” windows with distinctive pointed arches; exposed framing timbers; and steep, vaulted roofs with cross-gables. Extravagant features may include towers and verandas. Ornate wooden detailing is generously applied as gable, window, and door trim.
American architects Alexander Jackson Davis and Andrew Jackson Downing championed Gothic in domestic buildings in the 1830s. Most Gothic Revival homes were constructed between 1840 and 1870 in the Northeast.
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