July 2018 Rent vs Buy

The Question Troubling Home buyers, The cost of buying a home has 

risen by 14 percent over the past one year. That is more than three times the rate of monthly rental costs, according to research published by Realtor.com on Thursday.

The research indicated that as home prices rose across the U.S.renting was becoming increasingly popular.

The analysis also found that the number of places where it was cheaper to buy had significantly declined in the past one year.

“Even setting aside big upfront expenses like a down payment, rising month-by-month costs are likely keeping many people from purchasing,” said Danielle Hale, chief economist at Realtor.com.

The analysis found that only 41 percent of the nation's population lived in a county where a median-income family could afford to buy a home. While the cost to buy a home rose by 14 percent year over year, cost to rent increased only 4 percent. It was cheaper to buy a home compared to renting in 35 percent of the counties in July, this compared to 44 percent during the same time last year.

“Today homes at the median list price, and affordability declined significantly over the past year. Since home ownership has historically been an important source of household wealth creation, it could be problematic if this trend continues for too long.

Still, even in places where renting is currently more affordable, rising home prices provide a wealth-building opportunity for home buyers,” Hale said.

Analysis Highlights

• Only 41 percent of the nation’s population lives in a county where a median-income family can afford to buy a home.      
• Nationally, the cost to buy rose by 14 percent from July 2017 to July 2018, while the cost to rent increased by 4 percent.
• In July, buying a home was cheaper than renting in 35 percent of counties, compared to 44 percent of counties last year.
• The top five counties where purchasing a home was more affordable than renting last month were: Clayton County, Ga.; Baltimore City, Md.; Wayne County, Mich.; Cumberland County, N.C.; and Madison County, Ill., with the share of income to buy being 4 percent to 14 percent lower than the share of income to rent.
• Renting remains much less expensive than buying in Manhattan, N.Y.; Brooklyn, N.Y.; Monterey County, Calif.; San Mateo County, Calif.; and Santa Barbara County, Calif.
• In the last year, 20 counties with 100,000+ residents flipped from being cheaper to buy to being cheaper to rent, three quarters of which were in the South and Midwest.

In contrast renting remained less expensive than buying in Manhattan and Brooklyn in New York and in Monterey County, San Mateo County, and Santa Barbara County in California. 

Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home.

 #RealEstateForSale #Homeownership #UtahRealEstate

Read the full analysis here.

Will Buyers Pay Extra for Smart-Home Gadgets

Smart Home Technology in new Homes, More builders are 

outfitting newly constructed homes with smart-home technology, and many buyers say they’ll pay extra for it, according to research.

Sixty percent of home shoppers say they’d spend more on a home with a smart thermostat, the consulting firm’s survey of more than 23,000 shows. Slightly more—67 percent—say they’d pay extra for an over sized kitchen.

More than 60 percent of new-home buyers also say they’d pay more for an exterior security camera and smart locks.

In a separate John Burns survey of more than 300 home builders, 53 percent say they incorporate smart-home technology into new construction. Even so, 42 percent of buyers say they would purchase additional technology.

Below, watch a presentation, sharing more insights into the survey findings on the popularity of smart home tech. including:

• Young singles and couples: most likely to choose smart thermostats.
• Families: most likely to choose a smart garage that is responsive to app controls and voice commands.
• Older buyers: most likely to pay extra to have smart locks.

Some differences among certain segments of buyers regarding which smart-home tech they find most attractive. John Burns took time out to talk about the future of smart home technology and tell us how builders are utilizing 'smart home' products in their homes. Smart home tech features are changing at an incredible pace, and home builders are taking note.

Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 

#SmartTech #Homeownership #UtahRealEstate

Go Low, or Shoot for the Stars?

How to Price a Home in a Seller's Market: How to price a home in a 

seller's market may be a question that's top of mind if you're listing your home.

Much of the United States right now is a seller's market—which spells potential for major profits. Lucky you!

So which pricing strategy works best in a seller's market? Every approach has its pros and cons, so here’s how to determine the best one for you.

However: Some sellers may see this as an opportunity to set the bar high—maybe too high—when it comes to their list price. Others may decide on a lower asking price, in hopes of generating a bidding war.

If you’re thinking about putting your house on the market, you’re probably wondering what you should do before you list it. Getting a home ready to sell doesn’t have to be a huge undertaking, but it’s one where details really matter. To make the most of your new listing, take care of these items first.

First, assess the landscape

Before you go about setting your list price, you'll want to survey your area to see whether you’re truly in a seller’s market.

For a quick assessment, you can check out where your city ranks on realtor.com’s Market Hotness Index, which uses the latest housing data to show which cities are heating up for home sellers.

For a deeper look at your market, however, you’ll have to analyze a few key variables:

• Average days on market (DOM). This measurement shows the median age of real estate listings in your area. If houses are selling in your neighborhood in less than 10 days, its a strong sellers market, Lejeune says. You can find what the average DOM is in your city using realtor.com's Local Market Trends tool.
• Asking vs. final home price. In seller's markets, bidding wars can often erupt among buyers, which means that sellers may enjoy a final sales price equal to their asking price, or more. So, if a home is listed at $450,000 and sells for $450,000 or higher, that's a seller's market. In a strong seller's market, the final sales price is typically at least 10% higher than the asking price. You can compare the listing prices vs. the closing prices in various cities across the country at realtor.com/local.
• Home prices over time. Rising home prices over time are a sure sign of a seller's market. You can determine whether home prices are rising or falling in your city by looking at your ZIP code's 'market price curve' on BuilderOnline.com.

Pricing strategy No. 1: Listing at market value

To assess your home’s “fair market value”—i.e., what your house is actuallyworth in today’s market (not just what it's worth in your head)—you can enter your address in realtor.com/sell to get a ballpark figure for your home's value.

To hone that number further, check what comparable homes recently sold for in your area. Good agents can help you synthesize this info into an asking price that you can justify and stand by, which is important once the negotiations on a home get rolling.

“If you’re working with a real estate agent who understands the market, you have to trust their comps.” 

Even in a seller’s market, we generally recommends that sellers list their house at market value. “You have to forget the noise, especially if you’re looking to sell in a reasonable period of time.”  'For most sellers, it's always the best strategy, regardless of the status of the market.'

The bottom line: By listing at market value, you’ll be in a good position to get a full-price offer relatively quickly.

Not in a rush to sell? Keep reading.

Pricing strategy No. 2: Listing high

If you’re not on a tight timetable to sell, you could price your home above market value—typically 5% to 10% more—to see if you can nab a great offer. But that approach has its flaws.

For starters, “The last thing you want to do is price your home too high and then have it just sit on the market.”  When that happens, your house can become stigmatized in the eyes of home buyers, which can make it even more difficult to sell.

You might also have trouble closing the sale if your lender's appraisal of your home's price doesn't come in at that same high number.

“Even if you find a buyer that’s willing to pay you $400,000 for a $300,000 house, a lender may not loan that much money.”  “So, unless you have an all-cash buyer, it would be next to impossible to close the sale.”

That being said, some people have success selling over asking price by targeting investors with the ability to make cash offers.

The bottom line: By listing above market value, your home might sell at a premium—but there’s a greater risk that it doesn’t sell, especially if you’re unwilling to reduce the price.

Pricing strategy No. 3: List low

One way to get your property more exposure, is to set the list price below market value—generally 5% to 10% under—in an effort to attract more buyers and potentially spark a bidding war. “If you price low, you can probably get multiple offers within one to two days.” 

A bidding war is a good problem to have if you're a seller, but “the more offers you receive, the more options you have, which can make choosing the best offer challenging.” 

For some sellers, the most appealing offer is the one with the fewest contingencies; for others, the best offer is the highest bid. It depends on your priorities.

Do a Walk-Through With Your Realtor 
When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to sell your home. One of the first things your realtor will want to do is complete a walk-through of your house. This is a chance to point out anything that needs cleaning and any projects that you should complete before you list the property. Little touches, like adding trim to the walls or changing out bathroom fixtures, can make a real difference in maximizing your home’s price, and a realtor will be able to tell you what to take care of first.

The bottom line: This strategy can backfire if you receive only one offer for asking price or less. That’s less likely to happen in a seller’s market, but it’s always a possibility. There’s also less wiggle room for you to negotiate if you receive a low ball offer.

#RealEstateForSale #Homeownership #UtahRealEstate

The Shortage of Homes for-Sale Continues Depress Sales

Inventory Drought Pushes New-Home Sales to 9-Month Low. Sales of 

newly built, single-family homes dropped last month and are now at the lowest level since last October, the Commerce Department reported Thursday.

This follows on the heels of the National Association of REALTORS®’ report earlier this week that showed existing-home sales also dipped in July, reaching their sluggish pace in more than two years.

“A lack of overall housing inventory is pushing up home prices, which is hurting affordability and causing prospective buyers to delay making a home purchase,” says Randy Noel, chairman of the National Association of Home Builders.

New-homes sales were at a 627,000 rate in July, about 1.7 percent lower than June sales. However, sales are now 7.2 percent higher than a year ago.

“Although this month marks the lowest sales pace since last October, we continue to see solid housing demand due to economic strengthening and positive demographic tailwinds,” says Danushka Nanayakkara-Skillington, NAHB’s senior economist. “Builders need to manage rising construction costs to keep their homes competitively priced for the newcomers to the housing market.”

The median price of new homes was $328,700 in July, which is 1.8 percent higher than a year ago.

Regionally, new-homes sales were up in the West (10.9 percent month-over-month) and the Midwest (up 9.9 percent month-over-month). However, those gains could not offset a 52.3 percent decline in the Northeast and a 3.3 percent in the South last month. “Year-to-date, sales in the Northeast are down 14.5 percent as the region deals with the impact from tax reform and persistent affordability issues,” NAHB notes in its release.

The slowdown in housing is getting the Federal Reserve’s attention, as reflected in the minutes of the central bank’s last meeting, which was released this week. Ward McCarthy, Jefferies LLC economist, noted:

“Housing activity in general has retreated from levels that were temporarily boosted by 2017 natural disasters—hurricanes and wildfires—that forced displaced households to seek alternative housing.The housing sector is also undergoing an adjustment to affordability that is less attractive than it was for most of the cycle, as well as changes in the treatment of SALT deductions in the federal tax code. That is the bad news.

The good news is that there is no evidence of the type of imbalances that could cause a sharp downturn, such as heavy inventories and/or rising mortgage default and delinquency rates. We also note this is not the first temporary slowdown in housing activity this cycle.”

If you’re thinking about putting your house on the market, you’re probably wondering what you should do before you list it. Getting a home ready to sell doesn’t have to be a huge undertaking, but it’s one where details really matter. 

Do a Walk-Through With Your Realtor: When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to sell your home. One of the first things your realtor will want to do is complete a walk-through of your house. This is a chance to point out anything that needs cleaning and any projects that you should complete before you list the property. Little touches, and a realtor will be able to tell you what to take care of first.


#RealEstateForSale #Homeownership #UtahRealEstate

Shifting Winds of Home Values

Home-Value Growth Slowing in Several Hot Markets (July 2018 Market

Report) Markets that were the fastest-growing in the country just a year ago are starting to slow down, according to a report.

The Real Estate Market Report for July shows that otherwise expensive and in-demand markets such as Seattle, Tampa, Sacramento, and Portland, which were leading the market, have reported the largest slowdown in home value appreciation year-over-year.

The median U.S. home value climbed 8 percent over the past year to $218,000, but in a sign that buyers are beginning to balk at sustained, rapid escalations in prices, home value growth is slowing in 20 of the 35 largest housing markets

• The median U.S. home value climbed 8 percent over the last year to $218,000, but growth is slowing in 20 of the 35 largest U.S. housing markets, with Seattle and Tampa, Fla., reporting the greatest slowdowns.
• One reason for the slowdowns is a greater number of homes for sale than there were a year ago in 19 of the 35 largest metros – including Seattle and Tampa.
• The rental market also shows signs of a slowdown, with median U.S. rent inching up just 0.5 percent from a year ago to $1,440. The last time rents climbed that slowly was in late 2012.

While 8 percent annual growth for U.S. home values is above the 7.3 percent annual growth from July 2017, it is down slightly from growth earlier in 2018. And forecasts the annual appreciation rate will slow to 6.8 percent by this time next year.

Home values are still growing faster in most major markets than they did historically, one reason it’s too soon to call it a buyer’s market. Lower-valued homes also continue brisk gains: Homes valued in the lower third nationally rose 10.9 percent in value year-over-year, while homes valued in the top third rose at less than half that, at 4.9 percent.

Rent slowdown, too

The rental market shows signs of a slowdown as well.

The median U.S. rent rose 0.5 percent over the past year to $1,440 (a month), down from 1.6 percent growth a year earlier. Among the 35 largest housing markets, 21 had slower annual rent appreciation in July than a year earlier. Still, rents rose 0.3 percent in Seattle and fell by 0.7 percent in Portland and 1 percent in Kansas City.

Additionally, the amount of homes for sale has ped,  rate of this decline is slowing. Potential home buyers may find around four percent fewer homes on the market year-over-year, however, this is the smallest decline in 17 months.

Despite the slowdown in many of the nation's more affordable areas, 'home value growth has perked up as buyers continue to seek good value for their money.

But it's clear that the winds that have boosted sellers over the past few years are ever-so-slightly starting to shift.'

Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 


#Rentals #Homeownership #UtahRealEstate

Are Jumbo Loans Cheaper than Conforming Loans?

Large-balance mortgage loans called “jumbo” loans are becoming 

less expensive than conforming loans.

Traditionally, jumbo loans have carried higher interest rates, but since mid-2013 that has been gradually changing.

Jumbo loan rates have been less expensive to borrow than a conforming mortgage loan by an average of 33 basis points during the first quarter, according to CoreLogic, a real estate data firm.  

In response, jumbo loans have been growing. The share of jumbo loans has reached its highest rate since 2009 at about 15 percent of home-purchase originations, CoreLogic reports.

For comparison, in 2009, the jumbo share was just 6 percent.

Jumbo loans are those that exceed the high-balance conforming loan limit, which the Federal Housing Finance Agency set at $453,100 for most of the U.S. in 2018. Areas designated as high-cost may stretch up to $679,650.

Researchers say one of the reasons that the jumbo-to-conforming rate difference has seen the gap decline is the increase in guarantee fees, also known as g-fees. These are fees on loans bought by Fannie Mae and Freddie Mac for conforming and high-balance conforming loans. The average g-fee has nearly tripled since 2010, jumping from 22 basis points to 57 basis points in 2017.

“Since jumbo loans are too big to be purchased by Fannie Mae and Freddie Mac,those fees have little or no impact on the note rate of the jumbo loans.” 

“Fannie Mae and Freddie Mac are pricing the credit risk of conforming loans, while banks are pricing the credit risk of jumbo loans. Thus, increase in guarantee fees has the effect of raising interest rates for conforming loans with little or no impact on the mortgage rates for jumbo loans.”

Researchers also note that lenders are requiring higher credit standards to get a jumbo loan, which has lowered the credit risk to lenders and given them more incentive to issue them. The average credit score for buyers with a 30-year fixed-rate jumbo loan is 18 points higher than for buyers with conforming loans.

As Mortgage Rates Fall for Third Straight Week, Khater notes that “it is clear affordability constraints” have cooled the housing market, particularly in expensive coastal markets. “Many metro areas desperately need more new and existing affordable inventory to break out of this slump,” he notes.

Are you ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 


 Source: CoreLogics Insights Blog (Aug. 22, 2018)

 #Mortgagerates #Homeownership #UtahRealEstate

Best Cities for Young Professionals

Salt Lake City one of the Top Cities for Young Professionals to 

Call Home, How you start your career is an important determinant for future financial success. Young professionals who are able to find a high-paying career earlier are able to build more savings, get promoted earlier and have more long-term, financial flexibility.

Where you start is also important.Some cities have affordable housing that allows young professionals to invest in the housing market or lets them rent while investing their savings with a financial advisor. Other cities offer a wide range of job opportunities, meaning young adults are not stuck in dead-end jobs they don’t enjoy.

Below we look at these and other factors to determine the best cities for young adults.In total, we looked at nine metrics: percent of residents between the ages of 25 and 34, the unemployment rate for young adults, the labor force participation rate for young adults, median rent, entertainment establishment rate, job diversity, median earnings, earnings change over time and median housing costs as a percent of median earnings.

Data and Methodology

In order to find the best cities for young professionals, we looked at data on 150 of the largest cities in the U.S. We specifically looked at data for the following nine metrics:

• Percent of population between ages 25 and 34. Data comes from the Census Bureau’s 2016 1-Year American Community Survey.
• Unemployment rate for young professionals. This is the unemployment rate for residents ages 25-34. Data comes from the Census Bureau’s 2016 1-Year American Community Survey.
• Labor force participation rate for young professionals. This is the labor force participation rate for residents ages 25-34. Data comes from the Census Bureau’s 2016 1-Year American Community Survey.
• Median gross rent. Data comes from the Census Bureau’s 2016 1-Year American Community Survey.
• Entertainment establishment density. This is the percent of all establishments in the area dedicated to arts, entertainment or recreation. Data comes from the Census Bureau’s 2016 County Business Patterns Survey.
• Job diversity. This measures the variety of industries available in a city. We used the Shannon index to calculate this figure. A higher number indicates a more diverse job market. Data comes from the Census Bureau’s 2016 1-Year American Community Survey.
• Median earnings. This is the median earnings for full-time workers. Data comes from the Census Bureau’s 2016 1-Year American Community Survey.
• Five-year change in median earnings. This is the percent change in median earnings for full-time workers from 2012 to 2016. Data comes from the Census Bureau’s 2016 and 2012 1-Year American Community Surveys.
• Median rent as a percent of full-time workers’ earnings. Data on median rents and earnings comes from the Census Bureau’s 2016 1-Year American Community Survey.

First, we ranked each city in each metric. Next we found each city’s average ranking across all of the metrics, giving each metric equal weighting. We used this average ranking to create our final score. The city with the best average ranking received a score of 100. The city with the lowest average ranking received a score of 0.

Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate

Existing-Home Sales Slip 0.7

Existing-home sales slowed for the fourth consecutive month in July,

 reaching their most sluggish pace in more than two years, the National Association of REALTORS® reports. 

The West was the only major U.S. region to see an increase in sales last month.

Total existing-home sales, which include completed transactions for single-family homes, townhomes, condos, and co-ops, fell 0.7 percent month over month to a seasonally adjusted annual rate of 5.34 million in July. Sales are now 1.5 percent lower than a year ago.

Rising home prices may be prompting would-be home buyers to pull away, says NAR Chief Economist Lawrence Yun. “Led by a notable decrease in closings in the Northeast, existing-home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million [units],” Yun says. “Too many would-be buyers are either being priced out or are deciding to postpone their search until more homes in their price range come onto the market.”

Yun notes that a steady climb in home prices over the past year—along with an uptick in mortgage rates this spring—is cooling sales.

First-time buyers comprised 32 percent of sales in July, down from 33 percent a year ago.

Here’s a closer look at some key indicators from NAR’s July housing report:

• Home prices: The median existing-home price for all housing types was $296,600, a 4.5 percent increase from a year ago.
• Inventories: Total housing inventory fell 0.5 percent to 1.92 million existing homes available for sale, unchanged from a year ago. At the current sales pace, unsold inventory is at a 4.3-month supply.
• Days on the market: Fifty-five percent of homes sold were on the market for less than a month. Properties typically stayed on the market for 27 days, down from 30 days a year ago. “Listings continue to go under contract in under a month, which highlights the feedback from REALTORS® that buyers are swiftly snatching up moderately-priced properties,” Yun says. “Existing supply is still not at a healthy level, and new-home construction is not keeping up to meet demand.”
• All-cash sales: All-cash transactions compromised 20 percent of sales, up from 19 percent a year ago. Individual investors tend to account for the biggest bulk of cash sales. They purchased 13 percent of homes, unchanged from a year ago.
• Distressed sales: Foreclosures and short sales accounted for 3 percent of sales, down from 5 percent a year ago. Broken out, 2 percent of sales were foreclosures, and 1 percent were short sales.

Selling or Buying doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate

9 Design Tricks for a Home Office

Working from home seems like the dream when you're stuck at the

office. Sweatpants! Pour-over coffee! Lunch at that cute cafe in the neighborhood! TV—whenever you want! And, work ... well, that will happen sometime, right?

The reality is much less exciting. Sure, there's freedom. But there are also distractions galore, all of which hamper your focus.

Creating a peaceful and productive home office is the key to work-from-home success. These nine design tips will help you cultivate a space that's not just beautiful, but also supportive of your career aspirations.

Here are six questions to ask a real estate agent to flush out what he's truly thinking, that could help you figure out if this place is really right for you.

1. ‘Would you buy this house?’

This question may be the ultimate litmus test of whether you should purchase a home. If your agent would have reservations about buying the house for himself, that’s a waving red flag. So if you get the sense your agent isn't as enthusiastic about the home as you are, ask why. His answer might give you pause, too.

2. ‘What is the sales history of this house, and how would it affect my offer?’

Before making an offer on a house, ask your agent for the property’s sales history.

Was it previously an expired listing? Was it leased? Was it ever a bank-owned property or other type of distressed home? These factors could suggest a home has been a struggle to sell—which could mean you could snap up this home at a bargain-basement price.

3. ‘What contingencies do you think are worth getting—and skipping?'

“When buyers and sellers get cold feet about the purchase or sale of a home, they sometimes think they can just back out.”  But when a seller accepts a buyer's offer, both parties sign a legal and binding contract—an official document that requires the buyer and seller to execute the transaction.

So how binding that contract is depends on the details. Some contracts have contingencies built in that enable the buyer or seller to walk away from the deal without penalty. And contingencies are often included for a home inspection and an appraisal.

But note that having too many contingencies tends to turn off sellers, so make sure to strike the right balance by asking your real estate agent for guidance. For instance, you might be OK waiving a home inspection contingency if the home is newly constructed, whereas it's more essential with an older home that might need extensive repairs.

4. ‘Are there any upcoming condo or homeowners association assessments?’

When you purchase a condominium or a home within a homeowners association, you’ll receive the HOA's financial documents, which outline important information such as reserve funds and CC&Rs (covenants, conditions, and restrictions).

These condo docs and disclosures can be hundreds of pages long—which could overwhelm home buyers, who could forget to check if there are any upcoming assessments. Assessments are periodic one-time payments made to the HOA above and beyond the monthly fee, usually to cover capital improvements or repairs.

Since they will affect your monthly housing expenses, you'll want to know whether they could go up anytime soon—and your agent is adept at navigating these documents to pinpoint the answer.

5. ‘What's happening in this neighborhood, and how will that affect home prices?'

Good real estate agents hear everything about what's happening in the communities where they do business. And although federal fair housing laws prohibit real estate agents from commenting on a neighborhood’s demographics, your agent can still give you advice on whether you’re making a solid investment based on local housing market trends and economic factors that affect home values.

So go ahead and ask: Are the neighborhood’s home prices rising or falling? Are there new amenities (e.g., parks, shopping, public transportation, Whole Foods) being built in the area?

These are all important things to consider before buying a house, and a real estate agent can help you cut through the noise and really tell you what's up.

6. ‘Can you recommend a home inspector/handyman/real estate attorney in the area?'

Local expertise matters not only with the real estate agent you hire, but also the other professionals you could meet while negotiating this real estate deal. So if you need recommendations for a home inspector, handyman, or anyone else on your home-buying journey, make sure to ask your agent for recommendations to boost the odds of smooth sailing.

Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate

5 Mortgage Moves You May Need to Do

Getting a mortgage is easy, right? You’ve seen the TV commercials and the

billboard ads touting promises like,

“Get approved for a mortgage today!” Well, sorry to break the news, but the reality is that obtaining a home loan isn’t just one mouse click or phone call away.

There are a number of hoops to jump through and hurdles to cross before a mortgage lender will issue you a loan. To switch metaphors, it's less of a sprint, more of a triathlon—and it’s easy to overlook an important stage or two as you move toward the finish line.

Curious what home buyers often miss, much to their chagrin? Here are five essential steps that many people don't realize are needed for a mortgage.

1. Get pre-approved

In any highly competitive housing market, it's akin to self-sabotage not to get pre-approved before making an offer on a house.

Pre-approval is a commitment from a lender to provide you with a home loan of up to a certain amount. This will set your home-buying budget, and also show sellers that you’re serious about buying when it comes time to put in an offer. In fact, many sellers will accept offers only from pre-approved buyers.

Mortgage pre-qualification should not be confused with pre-approval. Pre-qualification is based solely on verbal information you give a lender about your income and savings—meaning that it shows how much you could theoretically borrow. But make no mistake, it's no guarantee. Pre-approval, on the other hand, means the lender has already done its due diligence and is willing to loan you the money.

How to do it: To get pre-approved, you’ll have to provide a mortgage lender with a good amount of paperwork. For the typical home buyer, this includes the following:

• Pay stubs from the past 30 days showing your year-to-date income
• Two years of federal tax returns
• Two years of W-2 forms from your employer
• 60 days or a quarterly statement of all of your asset accounts, which include your checking and savings, as well as any investment accounts, such as CDs, IRAs, and other stocks or bonds
• Any other current real estate holdings
• Residential history for the past two years, including landlord contact information if you rented
• Proof of funds for the down payment, such as a bank account statement. (If the cash is a gift from your parents, you need to provide a letter that clearly states that the money is a gift and not a loan.)

2. Ace the home appraisal

Lenders require a home appraisal before they’ll issue a loan, because the home you’re buying is going to serve as collateral. Which is why it wants to make sure the property is worth the amount of money you’re paying for it.

If the home’s appraised value is the same as what you've agreed to pay, you’ve passed the appraisal. If the appraisal comes in at a figure higher than what you're paying, you’re golden—in fact, you’ve gained instant equity! But, if the appraisal comes in lower than what you've agreed to pay, you will need to renegotiate the Sell price.

How to do it: A lender won't loan more than a home's appraised value, which could leave you, the borrower, to cover the difference. But if you’re unwilling or able to do that, you have a few options:

1. Negotiate with the seller. For the appraisal to pass, the seller may agree to lower the sales price. Of course, this might require some negotiating by your real estate agent with the sellers agent.
2. Appeal the appraisal. Sometimes called a rebuttal of value, an appeal involves your loan officer and agent working together to find better comparable market data to justify a higher valuation. If you file an appeal, the appraiser will review the information and then make a judgment call on whether or not to adjust the info.
3. Order a second appraisal. If you believe the initial appraisal is significantly off base, for whatever reasonmaybe the appraiser overlooked a good comp or wasnt familiar with the local housing marketyou can order a second appraisal. Youll have to pony up for the expense, and appraisals can range between a few hundred dollars and $1,000, depending on the area.
4. Walk away. This is a total bummer, but it may not be worth overpaying for a home, says Dossman.

 3. Keep your credit score stable while under contract

Depending on the loan program, lender, and applicant’s specific credit history, the minimum credit score necessary to buy a home varies. The minimum requirement could be as low as 580 for a Federal Housing Administration (FHA) loan, or as high as 660 for a conventional loan. However, lenders vary in their requirements.

The caveat, though, is that your credit score must remain stable while you’re under contract on a house. Why? Because the lender’s final clearance and a loan commitment are subject to a last-minute credit check (and other verifications) shortly before closing.

How to do it: To avoid jeopardizing your final loan approval, follow these guidelines:

• Dont open new credit accounts. Applying for a new credit card can ding your score, says Beverly Harzog, a consumer credit expert and author of The Debt Escape Plan, because it results in a hard inquiry on your credit report. Buying a car, boat, or any other large purchase that has to be financed can also dock your score.
• Dont close old credit accounts. Closing an old account can hurt your debt-to-credit utilization ratioa term for how much debt youve accumulated on your credit card accounts, divided by the credit limit on the sum of your accounts. This ratio comprises 30% of your credit score. By closing a credit card account, you reduce your available creditmaking it more difficult to keep your debt-to-credit utilization ratio below 30% (the recommended percentage).
• Dont miss a credit payment. Even one late payment can cause as much as a 90- to 110-point on a FICO score of 780 or higher, according to Credit.com. 

4. Review the closing disclosure form

Lenders must provide borrowers with a closing disclosure, or CD, at least three business days before closing. Essentially, the CD is the official follow-up to a more preliminary document you received when you first applied for your loan, called the loan estimate, or LE (also known as a good-faith estimate).
The LE outlined the approximate fees you would be expected to pay if you move forward with a lender to close on a home. But your closing disclosure is the real deal—it outlines exactly what fees you’re going to pay at settlement. You have to scrutinize it carefully.

How to do it: Ask your real estate agent to sit down with you and compare the CD and LE. Here's a list of things to triple-check:

• The spelling of your name
• Loan term (15 years? 30 years? Something different?)
• Loan type (a fixed-rate or adjustable-rate mortgage)
• Interest rate
• Cash to close amount (down payment and closing costs)
• Closing costs (fees paid to third parties)
• Loan amount
• Estimated total monthly payment
• Estimated taxes, insurance, and other payments 

5. Pass the underwriting process

Before your lender issues final loan approval, your mortgage has to go through the underwriting process. Underwriters are like real estate detectives. It’s their job to make sure you have represented yourself and your finances truthfully, and that you haven’t made any false or misleading claims on your loan application.

Underwriters will pull your credit score from the three major credit bureaus—Experian, Equifax, and TransUnion—to make sure it hasn’t changed since you were pre-approved. They will also review the appraisal of your prospective home to make sure its value matches the size of the loan you are requesting, and check that you haven't taken on any new debts.

Many underwriters will also contact your employer to verify the job and salary that you listed on your loan application. This sounds like a basic step, but you’d be surprised how many people lie on their mortgage application.

How to do it: This one’s pretty simple. Assuming you’ve been diligent about keeping your credit score, job status, and debts stable, you’ll pass with flying colors. If the underwriter has a question, don’t panic—the best thing you can do is respond with prompt and complete information. Your agent is also there to help you troubleshoot any issues.

Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates

Could Home Value Growth be Cooling?

In June, a growing number of homes sold for less than they were originally

listed,especially at the higher end, according to new research.
Reported that about 14 percent of listings across the U.S. had a price cut in June. That's up from a low of 11.7 percent near the end of 2016. In San Diego, 20 percent of listings had a price cut in June, up from 12 percent a year ago.

The cuts are a sign that after years of juggernaut-level price growth, home value growth could be slowing. The report found that value growth in June slowed in almost half of the 35 largest U.S. metros, most notably in Sacramento and Seattle. Values still rose 8.3 percent over the past year, nationally,

But we expects that growth to slow to 6.6 percent by this time next year. Growth in San Jose, California, Indianapolis, Indiana, and Charlotte, North Carolina are expected to slow the most.

“Since the beginning of the year, the share of listings nationwide with a price cut increased 1.2 percentage points,” reported, calling the shift “the greatest January-to-June increase ever reported.” It was more than double the January-to-June increase in 2017.

The report added that while home value growth isn’t slowing down nationally, “it is slowing in some of the nation’s hottest housing markets.”

The report revealed that the overall increase in the share of homes with a price cut appears to be driven by trends in the upper reaches of the market. Dallas saw the largest disparities between shares of listings in the top tier versus the bottom tier in June—21.9 percent in the top tier, 8.7 percent in the bottom tier. Orlando and Houston saw differentials above 12 percent.

“Since the beginning of the year, the share of higher-priced listings with a price cut—those priced in the top one-third of all homes listed for sale—rose 0.9 percentage points, to 16.2 percent,” the report stated. “Over the same time, the share of lower-priced listings with a price cut (those priced in the bottom one-third of all homes) fell 0.1 percentage points, to 11.2 percent.”
There are fewer listings with a price cut in some of the nation’s more affordable housing markets. San Antonio, Phoenix, Philadelphia, and Houston reported a smaller percentage of listings with a price cut in June than a year ago, the report indicated.

“The housing market has tilted sharply in favor of sellers over the past two years,”the report concluded. “But there are very early signs that the winds may be starting to shift ever-so-slightly. It’s far too soon to call this a buyer’s market, but these data indicate the frenetic pace of the housing market over the past few years may be starting to return toward a more normal trend.”

So If you’re thinking about putting your house on the market, you’re probably wondering what you should do before you list it.Getting a home ready to sell doesn’t have to be a huge undertaking, but it’s one where details really matter. 

Do a Walk-Through With Your Realtor, When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to sell your home. One of the first things your realtor will want to do is complete a walk-through of your house. This is a chance to point out anything that needs cleaning and any projects that you should complete before you list the property. Little touches, and a realtor will be able to tell you what to take care of first.




#RealEstateForSale #Homeownership #UtahRealEstate 

Rates Ease for Second Consecutive Week

Borrowers had slightly more relief with mortgage rates again this week. The 30-year fixed-rate mortgage rate dipped again, averaging 4.53 percent, Freddie Mac reports.

“The stability in borrowing costs comes despite the highest core inflation rates since 2008 and turbulence in the currency markets,” says Sam Khater, Freddie Mac’s chief economist.

“Unfortunately, this pause in rates is not leading to increasing home sales.” Last week, mortgage applications for home purchases once again trailed levels from last year.

“It’s clear that in some markets the combination of ascending home prices, limited affordable inventory, and this year’s higher rates are curtailing home buyer demand,” Khater says.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 16:

• 30-year fixed-rate mortgages: averaged 4.53 percent, with an average 0.5 point, falling from last week’s 4.59 percent average. Last year at this time, 30-year rates averaged 3.89 percent.
• 15-year fixed-rate mortgages: averaged 4.01 percent, with an average 0.5 point, ping from last week’s 4.05 percent average. A year ago, 15-year rates averaged 3.16 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.87 percent, with an average 0.4 point, down from last week’s 3.90 percent average. A year ago, 5-year ARMs averaged 3.16 percent.

Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates

Homeowners and Appraisers Close to Agreement

Homeowners and appraisers are inching closer to home

values, according to Quicken Loans’ Home Price Perception Index(HPPI). Appraised values logged in just 0.28 percent lower than homeowner estimates in July—not a total agreement but still much closer than before, HPPI notes.

The shrinking gap portends positive days ahead for the overall market, says Quicken Loans EVP of Capital Markets Bill Banfield. 

If you’re thinking about putting your house on the market, you’re probably wondering what you should do before you list it.

Getting a home ready to sell doesn’t have to be a huge undertaking, but it’s one where details really matter. Do a Walk-Through With Your Realtor 

When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to sell your home. One of the first things your realtor will want to do is complete a walk-through of your house. This is a chance to point out anything that needs cleaning and any projects that you should complete before you list the property. Little touches, and a realtor will be able to tell you what to take care of first.

“The story the HPPI is currently telling is one of an ever-strengthening housing market,”said Banfield.

“With more appraisals meeting, or even reaching beyond, the level homeowners were expecting, it’s clear home values in the majority of areas have recovered to the point where the owners’ personal view is finally lining up with the appraisers’ expert view.”

Which U.S. region did the HPPI find to be most on par with appraisers’ valuations? That distinction goes to the West, where homeowners overvalued their domiciles by a mere 0.14 percent. Otherwise, the remaining regions are neck and neck. Down South, properties are overvalued by 0.3 percent. In the Northeast, that number creeps up a smidge to 0.33 percent. It’s 0.35 percent in the Midwest.

Locally, appraisals stood higher than homeowner estimates in nearly 80 percent of the areas surveyed, according to the HPPI. San Jose, California, lays claim to the “hottest housing market of the moment,” with appraisals clocking in 2.91 percent higher than homeowner estimates. Chicago homeowners, on the other hand, displayed the most disparity, overvaluing their residences by 1.58 percent, the HPPI found.

There was one city where no difference existed between appraisal values and homeowner estimates. And that “special shoutout,” the HPPI revealed, goes to Miami.

As for home values, those slipped 0.6 percent in July, but they’re still up 4.86 percent on the year, according to Quicken Loans’ Home Value Index (HVI).

“The HVI is telling a similar story of the housing market’s health,” he said. “Other than some small monthly shifts, home values continue to grow at an annual pace exceeding inflation. This can hurt affordability and hinder first-time buyers from entering the market.”

Home prices charted up in three of the four regions, with the Midwest posting a monthly decline of 1.01 percent. That said, Midwest values are still up 4.04 percent compared with 2017, the HVI notes.

As for the other three, values are up 0.35 percent monthly and 4.46 annually in the South. The Northeast comes next, up a monthly 0.72 percent and a yearly 2.78 percent.  Finally, the West was up 1.15% on the month and 6.68% annually..

#RealEstateForSale #Homeownership #UtahRealEstate

Did you Get a Credit Score Boost?

Consumers Getting a Credit Score Boost: An overhaul in how 

several major credit reporting agencies factor in negative credit information is prompting millions of consumers’ credit scores to rise.

Collection events were struck from 8 million consumers’ credit reports in the 12 months ending in June.

The New York Federal Reserve reported Tuesday that consumers who had at least one collections account removed from their credit reports are seeing an 11-point increase to their scores. 

Critics have long claimed such dings to scores are prone to errors or that they've unfairly kept many out of the borrowing market. Equifax, Experian PLC, and TransUnion have all agreed to revamp reports, which stems from a 2015 settlement with state attorneys general on the matter. 

In the settlement, the firms agreed to remove some non-loan related items that were sent to collection firms, such as gym memberships, library fines, and traffic tickets. They also agreed to strike medical-debt collections that have been paid by a patient’s insurance company.

The majority of consumers who benefited from the recent changes are those who had credit scores below 660 before the collection events were removed, according to the New York Fed.

This could be good news for potential home buyers, as better credit scores are a big factor lenders use in granting cheaper rates for mortgages. And relatively small shifts in scores can make a big difference on loan affordability. 

A recent study from LendingTree showed that consumers who can raise their credit scores from “fair” (580-669) to “very good” (740-799) could potentially save $29,106 in mortgage costs.

Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate #Creditscore