Monica's Blog

The market in Utah was a market that was fairly easy to sell a home in a couple of years ago. An agent simply had to upload the listing information with a few photos on the MLS and the home would sell in a couple of hours to a couple of days. Bidding wars were common and so people moved quickly and offered above the list price if they really wanted the home.

Those days have definitely come and gone, the amount of time that a home sits on the market is significantly higher, and the homes need to be in pristine shape if the seller expects to get a sell at all. The amount of bank owned homes and short sale homes is substantial, as an example two weeks ago I showed 21 homes in the day only 4 were lived in, most were either foreclosed on or being short sold. As a real estate agent I am giving my clients a pretty decent disclaimer about the amount of time it takes to purchase one of the short sales, it can literally be months 4-6 months before the transaction is completed and the buyer can move into the house. Most of the homes that are being sold are selling at huge losses to the banks and sellers who have them listed. This is a problem for people who are trying to sell their home without having it be a short sale. First the short sales are decreasing the value of the homes in the neighborhoods, they are in, and there are so many of them that if your neighborhood is not affected by this you are very lucky.

So how do you get the edge or advantage in selling your home? The answer to that is you pick the right real estate agent. Many people believe that if they pick the right real estate company they have an advantage. This may be true to some degree but each agent is working basically for themselves, and how they do business is up to them. Many agents simply take the listing, throw it up on the MLS with the photos and hope that it sells. A good agent knows how to market the home. They leverage the market and advertise the house. Quality pictures are a huge draw, the more the better (as long as what is shown is desirable). I started my career as a Realtor in South Texas, on the border of Texas and Mexico; I have never had the privilege of selling a home in a day. Most of my listings down there sat for 6 months to 1 year. Because of this we learned to market.

Marketing a home is something that isn't necessarily hard, but it does cost an agent marketing dollars. The following are ways that I market a property and if you are thinking about listing your home and paying a 6% commission I would be asking for:

• Home is listed on the MLS, with as many quality photos possible and a virtual tour.
• Realtor upgrades with Realtor.com so that your home has a very strong national internet presence.
• Advertised on KSL.com, craigslist, & Zillow
• Flyers in a box in the front yard. This may be the first look at your home a person gets.
• Agent has a very strong web presence, website, where the listings are viewable, with pictures, virtual tours etc.
• Agent sends out an e-flyer to all of the agents in the area announcing that the home is on the market so they can see if it would fit their client’s needs.
• Your agent should be accessible, answers and returns calls in a timely manner. If your agent is not answering their phone, how are appointments being made or offers being received?

This is definitely a market in which you need that Realtor that is at the top of their game, ask a lot of questions, be informed, know what you are agreeing to when you sign that 3, 6, or 12 month agreement. Get it in writing, and make sure that your agent keeps up with the marketing. Marketing a home over a 6 or 12 month period requires a lot of updating, a lot of new flyers, and a lot of changing information on the internet so your house pulls up in the internet searches.

There are a lot of agents, some are good, some are bad and few are excellent, find that one that is excellent, who has a work ethic that correlates with yours and a personality that you are comfortable with. Buying or selling a home is a big decision and very emotional but you must treat it as a business transaction if you want to sell your home at all in this market, let alone in a timely manner.

One last thing on this blog, it is my opinion that housing prices will continue to depreciate, there have been many articles estimating the number of foreclosed homes that are out there not currently listed is around 600,000. The housing market is not stable and the longer you hold on to your home and don't accept an offer the more the homes value declines. I am not suggesting that someone take an extremely low offer but be very realistic in what you are asking for your home and how quickly you want it to sell.

Over the years of being a Realtor I have been surprised at how many people do not understand what a Realtor does for them.  I have had comments from my family members such as "Well real estate agents make a lot of money for the small amount of work that they do"  and " Your job is so easy, I just don't believe that having a Realtor is necessary".  I must say that at one time I felt very much the same way and refused to use a real estate agent to sell or purchase a house.  A peculiar thing about that is that in the end there was always a Realtor involved in the transaction of selling my home by the time the deal was done. 

One of the biggest reasons I decided to become a Realtor was because I had so many friends that were so misinformed and many ended up getting in to real estate messes.  This is the first official business blog for my website and I decided that this would be a good subject to cover.  The first thing I would like to cover is who pays the commission.  When a person decided to list a home they agree to pay the commission from the proceeds of the home sale.  What this means is that if you are a buyer my time is essentially free to you, if we find a home that you want to purchase for $200,000.00, that is what you pay for the home.  You do not pay $200,000.00 plus 3%, you pay $200,000.00.  Your costs to purchase the home are your closing costs which consist of loan origination fees, which depend on your lender, title fees, inspection fees, appraisal fees and things like wire transfer costs, document fees and other minor costs.  Then you have to pay your pre-paids which are your taxes and insurance for the prorated amount of the year in advance.  So if you buy your home in June, the seller pays the taxes and insurance from January to June and the buyer pays them from the day you close in June until December 31st.  The other thing you will have to provide at closing will be your down payment which is stipulated by your loan type and your lender, usually at least 3% to 5%. 

Part of being a real estate agent is taking the risk of showing as many houses as a client wants to see and then having them not purchase anything.  I personally feel like this balances out in the long run, I have clients who literally look at 1 home and purchase and others who have looked at as many as 50 or 60.  Another part of being a realtor is that the commission rate is not always set at 6%, there are listings that only offer 5% which is split between the buyers agent and the sellers agent, so each agent would make 2.5%.  I do not exclude or include a home from my buyers because of the commission rate, it is my belief that every client should have the option to view and purchase any home that is out on the mls. 

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Breaking news: Tax Credit Can Be Used on Closing Costs.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.