Buying a Home in Salt Lake City, UT

Some of the most memorable homes I've shown are homes that my clients would never buy because of something really unique or bizarre. Still, the house was in some way unforgettable and my day was that much more interesting.

Often when showing homes to clients, we will see a dozen or more homes in one outing. As we discuss and compare the homes, inevitably somebody will give certain homes a name whereby they don't have to explain all the details of the house, but by which each person knows exactly which house the speaker is referencing. This isn't planned, it's just what happens. It's usually a prominent feature, feeling or aroma that becomes the key word.

Here are some of the names I've heard (and used) for houses over the years. My favorites (obviously) are the names for homes that are... let's just say, sub-par. Most are legitimately and successfully used as code-speak to clearly convey a particular house to the others involved in the discussion. See if you can guess why a particular name was used... it should be pretty easy.

 

The Smoke House

The White House

The Doll House

The Dr. Seuss House

The Pee House

The Crack House

The Pool Table House 

The Candle House

The House that's falling apart

The Hardwood Floor House 

The House with No Coat Closet 

The Tiny House

The Cabin House 

The Crooked House

The Haunted House 

The Dump House

The Incense House

The Bed & Breakfast House

The Tile House

The Swingset House 

The House with the View 

The Dog House (Bird House, Cat House, etc.)

The house where that kid was screaming in the neighborhood the whole time we were there

...and on and on.

If you're an agent, you probably remembered some of the houses that you've shown (or listed!) over the years.

If you have ever looked at homes as a Buyer, you probably helped invent some of these names.

Are there any special names for houses that I have forgotten? Remind me!

AND...

If you are planning on buying a home in the Salt Lake City area, make sure you get an Agent on YOUR side of the transaction!

If you have excellent credit and will be buying a $250,000-$750,000 home in the next 30-60 days and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc.  "The Real Estate Agents on the Buyer's Side" ™ Exclusive Buyers Agents (EBA) - All Rights Reserved

Exclusive Buyer Brokerages do not list homes and never represent Sellers.  Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2008 Homebuyer Representation, Inc. - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

I got the chance to correspond with a reporter in San Diego who wrote an article this week about one of the juror's responses following the verdict in the Ummel vs. their Realtor (R) case.

Like many of you, the reporter had not heard of Exclusive Buyer's Agents before we had our exchange.

Shortly thereafter she posted this follow-up which included some of my comments:

http://www.voiceofsandiego.org/survival/#blurb1

Here is a small portion of the round-up:

Today I heard from Benjamin Clark, a real estate broker in Salt Lake City, who says he only represents buyers, never any sellers. And he's on the board of directors of a national group of such agents, known as Exclusive Buyer's Agents, who sign a code of conduct that "binds their loyalty to home buyers" and mandates they disclose all comparable sales to their clients.

That was a big issue in the case last week, as the Ummels claimed their agent had caused them to overpay for their house by not telling them about other houses that had recently sold for less. The jury sided with the agent, who was not a member of that organization and as such was not subject to its code of conduct.

The reporter is Kelly Bennett and her original story about the Ummel Verdict is worth a read as well:

http://www.voiceofsandiego.org/articles/2008/04/11/housing/883ummel041108.txt

Here is the link to the juror's response as reported by Ms. Bennett:

http://www.voiceofsandiego.org/articles/2008/04/18/survival/540juror041408.txt

And here is my blog entry regarding the juror's response:

Ummel Case Juror Suggests "Buyers Agents Suck"

The bottom line is this:

If you are planning to buy a home, make sure you get an Agent who is really on YOUR side of the transaction!

If you have excellent credit and will be buying a $250,000-$750,000 home in the next 30-60 days and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc.  "The Real Estate Agents on the Buyer's Side" ™ Exclusive Buyers Agents (EBA) - All Rights Reserved

Exclusive Buyer Brokerages do not list homes and never represent Sellers.  Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2008 Homebuyer Representation, Inc. - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

A market analysis not only helps a Buyer understand what the market value of a home should be, but it can also be used to help determine which home (say, out of 3 excellent choices) is a better investment. Usually there is a discrepancy large enough to make a fair determination as to which home is probably the best priced. That doesn't mean that the home is the best fit for you or your family, but knowing which home is the better value can help a client see past some of the emotional attachments they may have toward a certain home.

In many cases, the #1 home is also the best value. (After all, they have looked at everything else in that price range in the area, and they like that home the best, right?) Still, what if there is a $50,000 price discrepancy between the lowest of the Buyer's top 3 picks and the highest? Obviously, the home that costs $50,000 might be more emotionally appealing because of an extra feature or amenity, or because of the finish level of the home. In this case, the extra $50,000 may be there, or it might not.

Sometimes the top 3 choices are all pretty close to market value. In these cases we suggest that the Buyer  ultimately decides on the home that best meets their needs.

The most common questions about a home's Market Analysis have to do with understanding the analysis.

Here is a brief explanation of the Analysis we provide:

1. The analysis usually looks at homes in the same general area that have sold within the last 0-180 days. It attempts to adjust for appreciation by adding a certain amount to the value. Currently we would use only 2%, which some may consider low, but we try to "err on the side of the Buyer" when determining markeet value.
   
   
2. The homes that have sold are adjusted to match the home we are evaluating.
   
   For example, if a sold home had 5 bedrooms, and the home we are looking at only had 4, the value of 1 bedroom would be subtracted from the price of the sold home (to make it equal in bedrooms as the home we are evaluating).
   
   
3. The analysis should only be used as a gauge in understanding the market value of similar homes in the area and shouldn't be used to pinpoint the exact value of the property. Here is what I mean:
   
   Even though the analysis gives a pretty good idea of value, I would guarantee that there are some intangibles that should be considered when analyzing them. For instance, the analysis does not take into consideration things like the level of materials used in the homes (cabinets, flooring, countertops, specific features of the floorplan, etc.) It also does not account for location other than proximity to the subject property we are evaluating. It also in no way accounts for the condition of the property itself. So, in some instances a home that has been destroyed may come up as a comparable property, and in other cases a home with an extremely large amount of upgrades and extras may come up. These can affect the final average value.
   
   
4. The $/square foot figure is another one I find helpful. Smaller homes generally get a bit more $/square foot than the larger homes in the same neighborhood. Still, you can look at the asking $/sq ft and see if it appears to be inline with the other SOLD $/square foot figures, or if it appears abnormally high or low. Then you do your best to determine if there is a logical reason for the difference (like adjusting for some of the items mentioned in #3 above).
   
   
5. People often ask about why the comparable properties have two $/sq ft figures. The first $/square foot figure is the $/sq ft for the original sold price. The second figure is the $/sq ft for the adjusted price at the bottom of the column for that home. (Accounting for appreciation, etc.) Both are rounded to the nearest whole dollar.

 I'll do a line-by-line analysis in a future blog.

Buying a home in the Salt Lake City area? Make sure you get an Agent on YOUR side of the transaction!

If you have excellent credit and will be buying a $250,000-$750,000 home in the next 30-60 days and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc.  "The Real Estate Agents on the Buyer's Side" ™ Exclusive Buyers Agents (EBA) - All Rights Reserved

Exclusive Buyer Brokerages do not list homes and never represent Sellers.  Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2008 Homebuyer Representation, Inc. - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

I don't know the specific origin of these questions, but Buyers ask them all the time. A wise homebuyer will ask these types of questions to any agent they interview.

Here are my responses to Buyers when I am provided with these questions: 

• Do you spend 100% of your time representing Buyers? YES
  
  
• Will you guarantee me that you will not be representing any seller at any time while you are working for me? YES
  
  
• Do you, or the company you are with, ever list properties for sale? NO
  
  
• Will you point out all the negative aspects of each property as well as all the positive aspects so I will be fully informed when making my decision? YES, to my best ability.
  
  
• Will you provide information on comparable sales and help me formulate an offering price and negotiating strategy? YES
  
  
• Do you have a list of lenders, home inspectors, insurance agents and other professionals that you will recommend? YES, but you are free to use whoever you like.
  
  
• Will you tell me everything you can find out about the seller and their reasons for selling? YES, In the normal course of business. I'm not a private investigator.
  
  
• Will you show me all the homes on the market that meet my needs, including For Sale By Owner properties, foreclosures, and other properties? YES. I do not have time or ability to actively know about every FSBO home and other homes (i.e. homes not on the market for sale). However, I will help you buy any home you choose to purchase and will not hesitate to help you with the purchase of any of the home types mentioned above)
  
  
• Will you negotiate on my behalf throughout the entire home buying process offering advice and information every step of the way? YES
  
  
• Will you "think" in Buyer's terms (i.e.: Get the lowest possible price and best terms for the Buyer, not the Seller)? YES
  
  
• Will you guarantee that any information I give you will be kept confidential? YES, unless you ask me to do otherwise
  
  
• Will you guarantee me your undivided loyalty? YES
  
  
• Will you guarantee me you will not try to change your relationship with me to "dual agency", "designated agent", "transactional agent", or any other form of agency that offers reduced levels of service? YES
  
  
• Can you guarantee me 100% loyalty 100% of the time? YES

I'm more than happy to answer any other questions you might have about our services and about buying real estate in the Salt Lake City area.

If you are planning to buy a home in the Salt Lake City area, make sure you get an Agent on YOUR side of the transaction!

If you have excellent credit and will be buying a $250,000-$750,000 home in the next 30-60 days and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc.  "The Real Estate Agents on the Buyer's Side" ™ Exclusive Buyers Agents (EBA) - All Rights Reserved

Exclusive Buyer Brokerages do not list homes and never represent Sellers.  Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2008 Homebuyer Representation, Inc. - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

OK. Those weren't her words.

Read this article from The Voice of San Diego (author, Kelly Bennett) and comment if you like.

Here are a few quotes from the juror:

"After my seven days of realtor training (sitting in a court room), I may consider not using a realtor in my next purchase of property."

and

"I think selling with a realtor is very different than buying with a realtor. I probably would sell a house with a realtor because of the advertising, showing, and negotiations, etc."

And the article's author states in the final line:

"...buyer's agents are not the be-all, end-all in the home-buying transaction, as some market themselves to be."

The fact is that simply assisting a Buyer in a real estate transaction does not make you a true "Buyer's Agent". In fact, in many states, you might not be the Buyer's "Agent" at all.

Many states allow for dual-agency, where the same agent represents both the Seller and the Buyer with reduced representation, or "transaction brokerage" where the brokerage purports to represent neither the Seller or the Buyer in the transaction. Even worse, you could just be the Listing Agent's "customer" with absolutely nobody looking out for your best interest in the transaction.

So, what is a Buyer to do?

There are, in fact, some real estate brokerages that represent Buyer's only. These brokerages take no listings and in fact, will (among other things):

• show their clients comparable sales data,
• negotiate on the Buyer's behalf and
• protect the Buyer's interests throughout the real estate transaction

These brokerages and their agents are called Exclusive Buyer's Agents (EBAs) and many EBAs belong to the National Association of Exclusive Buyer Agents (NAEBA), a trade association that advocates for home buyers and whose members adhere to a Code of Ethics that binds their loyalty to home buyers.

The bottom line is that not all "Buyers Agents" are equal. "Some who market themselves to be" true advocates and representatives for the Buyer, just may actually be what they say.

Buying a home soon? Make sure you get the real deal. Make sure you get an Agent on YOUR side of the transaction!

If you have excellent credit and will be buying a $250,000-$750,000 home in the next 30-60 days and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc.  "The Real Estate Agents on the Buyer's Side" ™ Exclusive Buyers Agents (EBA) - All Rights Reserved

Exclusive Buyer Brokerages do not list homes and never represent Sellers.  Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2008 Homebuyer Representation, Inc. - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

One of the greatest benefits of living in Salt Lake County is that you can be in about any one of 30 towns in about 15-20 minutes! (Well, except during rush hour!)

Within that circle are:

• 4 Costcos
• 12 Wal-Marts
• 20 Movie Theatres (Including 4 Megaplexes with 12-20 screens!)
• Over 600 restaurants
• 5 Malls
• 4 LDS Temples
• 21 city and county libraries
• about 10 exciting sports franchises (ranging from college football to Minor League Baseball and Hockey and Major League Soccer, and Basketball)
• Youth and City Leagues for many sports (including adult leagues!)
• Museums
• a zoo
• an aviary
• an aquarium
• a planetarium
• a waterpark
• equestrian parks
• 1 paragliding launch
• 3 (or more) major concert venues
• live theatre
• ballet
• opera 
• symphony
• comedy clubs
• about 3 ski resorts
• about 25 golf courses
• the Olympic Oval (Ice Arena)
• and almost each city has its own fitness center. (Including some with climbing walls, waterslides, indoor and outdoor swimming, spring and platform diving - up to 10 meters!)

Imagine that going just another few miles (less than 30 minutes) could add such things as amusement parks, boating, fishing, hiking, biking, and many more of the things listed above!

I know I'm leaving things out, but no wonder people love living here!

Moving to the Salt Lake City area? Make sure you get an Agent on YOUR side of the transaction!

If you have excellent credit and will be buying a $250,000-$750,000 home in the next 30-60 days and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc.  "The Real Estate Agents on the Buyer's Side" ™ Exclusive Buyers Agents (EBA) - All Rights Reserved

Exclusive Buyer Brokerages do not list homes and never represent Sellers.  Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2008 Homebuyer Representation, Inc. - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

A year ago Salt Lake was seeing appreciation rates in the 15-20% range. Today, appreciation is somewhere between 0 and +3% (My best guess - Official Data won't be out until the 20th).

There was a 6 month stretch with fewer home sales, making it harder to find comparable sales for new contracts and appraisals.

Many Buyers went into hiding while at the same time many owners decided to put their homes on the market. This is also true of Builders. Historically builders would list one or two homes with the intent of bringing buyers into their office. Then they would sell them something else. This was OK with most of us, because when we ran a home search, say for condos, we didn't like getting 130 IDENTICAL listings mixed in with the others. Well, once the market started slowing, many builders threw all their inventory onto the MLS, making it appear as though there was a ton of inventory being added to the marketplace, when in fact, they were always there. As you can see by the inventory graph to the right, this occurred between June and August of last year.

I would suggest that July was the last BIG month for home sales in the State. Since then, inventory has fluctuated up and down, but the level of available inventory appears to be approximately the same as we approach 1 year later.

I would suggest that our 1st quarter numbers (2008) will not look so good, but our 2nd quarter 2008 (Spring numbers) and 3rd quarter 2008 (Summer numbers) will probably surprise many people. Not that appreciation will be more than a few points in the positive, but the number of home sales will be more than expected because not only do we have those Buyers in the market who would normally buy at this time of year, but we also have all those who would have bought in 3rd and 4th quarter of 2007 who will be buying this Spring and Summer.

Realize that even though more contracts were probably written in March, compared with the previous 2 months, most of these contracts wouldn't close until April, which won't be included in the first quarter numbers...

If you are moving to the Salt Lake City area, make sure you get an Agent on YOUR side of the transaction!

If you have excellent credit and will be buying a $250,000-$750,000 home in the next 30-60 days and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc.  "The Real Estate Agents on the Buyer's Side" ™ Exclusive Buyers Agents (EBA) - All Rights Reserved

Exclusive Buyer Brokerages do not list homes and never represent Sellers.  Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2008 Homebuyer Representation, Inc. - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Last week Forbes.com put out a picture story about the best places in the United States to SELL your home.

Here's what they said:

The story makes a few interesting statements about Salt Lake's ecoonomy that I thought should be considered by anyone considering a move to the area, as well as by those of us who live, work, and own homes here.

Here they are, paraphrased by me:

1."Salt Lake's growing economy was not housing reliant"

2. "Salt Lake has a 3% annual job growth rate"

3. "Salt Lake has declining home inventory" 

4. "Salt Lake has one of the nation's sharpest declines in construction"

5. "Salt Lake didn't (doesn't?) have an overwhelming inventory glut" 

Unfortunately, they didn't provide links to the data to back up these claims, so, although it is "Forbes", be cautious.

Here is what I would say relating to these points:

1."Salt Lake's growing economy was not entirely housing reliant, like some other areas that experienced a lot of growth over the last few years"

2. "Salt Lake has a 3% annual job growth rate" - I cannot speak for that figure, but I don't personally know many people who are out of work right now. In fact, I still have many clients who are relocating here for jobs from such places as: Hawaii, Illinois, Colorado, Idaho, Minnesota, Florida, and New Jersey.

3. "Salt Lake has declining home inventory" - I would say that Salt Lake doesn't show an extreme rise in home inventory. This isn't to say that Forbes is wrong, but here is what I see from trulia:

4. "Salt Lake has one of the nation's sharpest declines in construction" - Again, I don't have actual numbers here but I can definitely say that home building has slowed. Still, I have clients who are currently purchasing new construction and I can say that builder's incentives are weaker than they were 6 months ago, with some builders so confident that they aren't even offering any real incentives.

5. "Salt Lake didn't (doesn't?) have an overwhelming inventory glut" - This is probably true to a point. If you are realistic about the market value of your home, and price it accordingly, your home will probably sell within 60 days. If you price your home at $30,000, $50,000 or $80,000 above market value, you are wasting everybody's time, including your own. I DO still see new listings that are extremely overpriced.

I would also suggest that it is probably safer to buy a home in an area where the market is good for selling a home. Still, because of the amount of inventory that is overpriced in Salt Lake's market today...

If you are moving to the Salt Lake City area, make sure you get an Agent on YOUR side of the transaction!

If you have excellent credit and will be buying a $250,000-$750,000 home in the next 30-60 days and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc.  "The Real Estate Agents on the Buyer's Side" ™ Exclusive Buyers Agents (EBA) - All Rights Reserved

Exclusive Buyer Brokerages do not list homes and never represent Sellers.  Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2008 Homebuyer Representation, Inc. - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Q: One of our acquaintances yesterday mentioned that they were under the impression that when you close on a house technically everything inside the home technically becomes yours as well.  Is that actually how things technically work by default? You close and everything inside the home changes ownership? 

A: With regard to your question: if the Seller moves out and delivers possession and they left behind a couch or a barbeque or something like that, then yes, it could become yours. I say could, because obviously a Seller could have left a car in the garage or something else by accident and that wouldn't necessarily "make" it yours just because it was there.

YOU would claim that it is yours because they were to have removed all their personal belongings from the home
THEIR attorney would claim that they did not remove all their personal belongings from the home as per the contract and that your only remedy or complaint is on the breach of that line in the contract.

Another argument is that the contract specifically "includes" items of personal property that are to be conveyed by Bill of Sale to the Buyer. (Section 1.1 "Included Items"). Therefore, articles simply left behind by mistake (say a wedding ring or something) wouldn't necessarily automatically become your property simply because they were left in the home.

In reality, I personally have acquired a barbeque, a workbench, and numerous other things that were left behind by the Seller when I purchased my first home. Other clients have "inherited" other items that have been left behind when a Seller moved. In most of these cases the Seller did not want to take the items with them (for whatever reason) and left them for the Buyer. Not always has there been a bill of sale.

I have also seen where a Seller has left behind some personal property that the Buyer did not want. For that same reason, I have often used the "Excluded Items" section of the contract to specifically exclude something from the Sale, thereby requiring that the Seller remove it from the property. (Just last month we excluded a snowmobile from a sale for that reason. It was obviously not working and the home was a "flip". Fearing the Seller would leave it behind for us to deal with, we excluded it from the sale. It wasn't being offered as part of the sale, but as your friend suggested, it could become yours at possession and then you would have to dispose of it.

At any rate, the simple answer is YES and NO. If the Seller has not yet delivered physical possession to you (which they could also breach) their property doesn't automatically become yours just because the home has closed. Once physical possession has been delivered, in most cases it is assumed and presumed by all parties that anything left in the home is now the Buyer's responsibility (or property).

Still, if you have any particular items in mind, it is best to get them included in writing and conveyed by a Bill of Sale. Going that route saves the ambiguity and makes lawsuits and small claims much less likely.

The confusion comes because many people don't look at Settlement, Closing and Possession as 3 distinct things. They use the terms interchangeably and they are not interchangeable. They are 3 distinct events which only occur when certain requirements are met.

So your friend is both right and wrong depending on what they think they mean. If they think Closing means that you have taken Possession, then they are more right than if they think that Closing only means that the property has recorded as yours.

If you are thinking about moving to the Salt Lake City area, make sure you get an Agent on YOUR side! 

Homebuyer Representation, Inc. is the only Real Estate Brokerage representing Buyers ONLY in Salt Lake City and the Surrounding Area. We do not list any homes. We never represent Sellers.

We work for BUYERS ONLY on the Buyer's side of the transaction.

We work to get BUYERS the Best Price and Terms when they Buy...

We're "The Real Estate Agents on the Buyer's Side" TM

If you have excellent credit and are thinking about buying a $250,000-$500,000 home in the Salt Lake area in the next 60-90 days, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc. All Rights Reserved

4. POSSESSION. Seller shall deliver physical possession to Buyer within: hours days after closing;  Other (specify)

If you are thinking about moving to the Salt Lake City area, make sure you get an Agent on YOUR side! 

Homebuyer Representation, Inc. is the only Real Estate Brokerage representing Buyers ONLY in Salt Lake City and the Surrounding Area. We do not list any homes. We never represent Sellers.

We work for BUYERS ONLY on the Buyer's side of the transaction.

We work to get BUYERS the Best Price and Terms when they Buy...

We're "The Real Estate Agents on the Buyer's Side" TM

If you have excellent credit and are thinking about buying a $250,000-$500,000 home in the Salt Lake area in the next 60-90 days, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc. All Rights Reserved

What is the purpose of the Walk-Through inspection? What are the Buyer's Rights? What happens if the Buyer fails to conduct a walk-through inspection?

Here is section 11 of the Purchase Contract:

11. WALK−THROUGH INSPECTION. Before Settlement, Buyer may, upon reasonable notice and at a reasonable time, conduct a "walk−through" inspection of the Property to determine only that the Property is "as represented," meaning that the items referenced in Sections 1.1, 8.4 and 10.2 ("the items") are respectively present, repaired/changed as agreed, and in the warranted condition. If the items are not as represented, Seller will, prior to Settlement, replace, correct or repair the items or, with the consent of Buyer (and Lender if applicable), escrow an amount at Settlement to provide for the same. The failure to conduct a walk−through inspection, or to claim that an item is not as represented, shall not constitute a waiver by Buyer of the right to receive, on the date of possession, the items as represented.

Section 1.1 is the section on "Included Items"
Section 8.4 deals with repaired items from the Inspections
Section 10.2 deals with warranted items (Heating, Cooling, Electrical, Plumbing, etc.)

As stated in Section 11, even if you were not to do a final Walk-Through, it doesn't waive your right to receive the property according to those terms in the contract.

We will, however do a walk-through. It will be somewhat close to Settlement, but after any agreed upon repairs are done and after the Seller has moved out, if possible.

If you are thinking about moving to the Salt Lake City area, make sure you get an Agent on YOUR side! 

Homebuyer Representation, Inc. is the only Real Estate Brokerage representing Buyers ONLY in Salt Lake City and the Surrounding Area. We do not list any homes. We never represent Sellers.

We work for BUYERS ONLY on the Buyer's side of the transaction.

We work to get BUYERS the Best Price and Terms when they Buy...

We're "The Real Estate Agents on the Buyer's Side" TM

If you have excellent credit and are thinking about buying a $250,000-$500,000 home in the Salt Lake area in the next 60-90 days, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc. All Rights Reserved

FYI, Here is the information regarding Utah's Foreclosure Process from the Lundberg & Associates website: (Bold, Italics and Underline added by me)

My comments follow below.

FORECLOSURE PROCESS

The foreclosure process normally begins when the borrower becomes delinquent. Delinquent status depends on the terms of the Note, the lender's internal policies and the requirements of any investor (e.g. Fannie Mae or Freddie Mac). Typically, the foreclosure is commenced when a loan becomes three months delinquent.

The foreclosure process generally begins by the holder of the Note appointing a trustee to record a notice of default with the county recorder of the county where the property is located. From the date of the recording of the notice of default, the borrower has 3 months to reinstate or payoff the loan. At the conclusion of the 3-month reinstatement period, if the loan has not been brought current, a foreclosure sale date is set. A notice of the sale is sent to the borrowers and posted on the property. It is also posted at the County Recorder's Office of the county where the property is located and published in a newspaper having general circulation in the county. The actual foreclosure sale is held at the time and place specified on the notice of sale, generally an active county courthouse* of the county where the property is located. The trustee appointed by the note holder, or an attorney representing the trustee, conducts the foreclosure sale.

*Some county courthouses are historical. Foreclosure sales are not held at these sites.

The opening bid on the property is set by the lender foreclosing and is made available by our office, once we have received it from the lender, on this web site under the heading of Foreclosure Bids and Sales Results. Generally our office receives bids the week of the sale.

The attorney conducting the foreclosure sale will purchase the property on behalf of the lender, if no bid higher than the opening bid is presented. If there is competitive bidding, the property is sold to the highest bidder. The successful bidder must deliver $5,000 in the form of a cashiers check, wire transfer or money order at the time of the sale to the trustee or attorney conducting the sale. The balance of the purchase price, in the same form, must be received in our office by noon the following day.

http://www.lundbergfirm.com/foreclosureprocess.html

Note that it would appear that it would take about 6 months at the fastest, but often it can take longer because some lenders do not file a Notice of Default right away. My understanding is that the notice of the sale also has to be posted for 3 straight weeks in a local paper with general circulation as well. At any time, if the borrower does anything to stop the foreclosure process (negotiating with the creditor/bringing payments current, etc.), the process will start all over again.

If there are no "high enough" bids to satisfy the lender's lien, the lender may bid on the property itself to retain it. In that case it becomes "Real Estate Owned", "REO", "Corporate Owned", "Bank Owned" etc. and many of these properties are then put back on the market as listed properties. The bank would rather lose 10-20% than let someone buy it at the sale and only get 50% of what they are owed, for example.

If you are thinking about moving to the Salt Lake City area, make sure you get an Agent on YOUR side! 

Homebuyer Representation, Inc. is the only Real Estate Brokerage representing Buyers ONLY in Salt Lake City and the Surrounding Area. We do not list any homes. We never represent Sellers.

We work for BUYERS ONLY on the Buyer's side of the transaction.

We work to get BUYERS the Best Price and Terms when they Buy...

We're "The Real Estate Agents on the Buyer's Side" TM

If you have excellent credit and are thinking about buying a $250,000-$500,000 home in the Salt Lake area in the next 60-90 days, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc. All Rights Reserved

Anybody want to fight to claim to have had a transaction with the most personal property included as part of the sale?

I know I don't even come close because typically we seek to NOT have any personal property included as part of a transaction. Often, asking for personal property can hurt you in negotiations.

Well, a recent transaction set my mind on this because a lot of personal property was included in the sale of the home. Most was offered up front as an incentive to Buyers, but we had additional things get added along the way when there were repair issues that the Seller didn't want to take care of. (And there were many that they DID take care of!)

Anyway, among some of the included property we had such things as a flat screen TV, Home theatre equipment and a microfiber couch. We also got gift cards from home improvement stores, a swingset, a tuffshed, and on top of everything else, I rebated back to the Buyer the money paid to our brokerage by the listing brokerage that was above and beyond the fee we contracted with our buyers. This is all on an entry-level existing home.

One funny thing about the transaction is that they wouldn't take the microfiber couch even if we didn't want it. They brought it into the basement through an old window a year or two back. Then, the Seller upgraded all the windows and the only way to get the couch out would be to saw it in half! (Or take out the big window again...)

Anyway, I've strayed...

Any good personal property stories? 

If you are thinking about moving to the Salt Lake City area, make sure you get an Agent on YOUR side! 

Homebuyer Representation, Inc. is the only Real Estate Brokerage representing Buyers ONLY in Salt Lake City and the Surrounding Area. We do not list any homes. We never represent Sellers.

We work for BUYERS ONLY on the Buyer's side of the transaction.

We work to get BUYERS the Best Price and Terms when they Buy...

We're "The Real Estate Agents on the Buyer's Side" TM

If you have excellent credit and are thinking about buying a $250,000-$500,000 home in the Salt Lake area in the next 60-90 days, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc. All Rights Reserved

Suppose you are in a transaction and the appraisal comes back low. WHAT NOW?

As a Buyer, you have some options.

Contractually, in Utah, and if you have used the approved Real Estate Purchase Contract and included the Appraisal Contingency, here are your contractual options:

2.4 Appraisal Condition. Buyer's obligation to purchase the Property   IS  conditioned upon the Property appraising for not less than the Purchase Price. This condition is referred to as the "Appraisal Condition". If the Appraisal Condition applies and the Buyer receives written notice from the Lender that the Property has appraised for less than the Purchase Price (a "Notice of Appraised Value"), Buyer may cancel this Contract by providing a copy of such written notice to Seller no later than three days after Buyer's receipt of such written notice. In the event of a cancellation under this Section 2.4: (i) if the Notice of Appraised Value was received by Buyer no later than the Appraisal Deadline referenced in Section 24(e), the Earnest Money Deposit shall be returned to Buyer; (ii) if the Notice of Appraised Value was received by Buyer after that date, the Earnest Money Deposit shall be released to Seller, and Seller agrees to accept as Seller's exclusive remedy, the Earnest Money Deposit as liquidated damages. A failure to cancel as provided in this Section 2.4 shall be deemed a waiver of the Appraisal Condition by Buyer. Cancellation pursuant to the provisions of any other section of this Contract shall be governed by such other provisions.

So, according to the contract, your only option is to cancel the contract OR waive the Appraisal Condition.

If you waive the Appraisal Condition, you will likely need to bring more cash to closing. Let me explain.

If you are purchasing a $500,000 home with 20% down payment, your lender will be loaning you 80% of the value of the home, or $400,000, leaving you with only $100,000 to bring in as Down Payment.

Well, if the home only appraised at $480,000, the lender will only lend you 80% of $480,000 or $384,000. Meaning that you now have to bring in an additional $16,000 in cash to close on this home.

But, are those really your only options?

Contractually, yes. But, what if you had someone on your side who could help you renegotiate the terms of that contract?

With enough persuasion, maybe the Sellers would lower their price to the Appraised Value. If they balk, perhaps deadlines could be moved and arrangements could be made for a second appraisal to be done. Maybe an agreement could be made to split the difference between the two appraisals. All is not necessarily lost.

If the Seller is faced with losing not only your sale, but possibly running into the same Appraisal problem with a subsequent Buyer, they may renegotiate.

There are many ways to help a Buyer in this situation. But it takes knowledge and experience in order to work these things out and time is of the essence. Remember, contractually, you only have 2 options, and if you can't work something else out fast, you will run out of time. 

In today's market, you need someone who will help you understand what ALL your options are and go to bat on your behalf.

If you are thinking about moving to the Salt Lake City area, make sure you get an Agent on YOUR side! 

Homebuyer Representation, Inc. is the only Real Estate Brokerage representing Buyers ONLY in Salt Lake City and the Surrounding Area. We do not list any homes. We never represent Sellers.

We work for BUYERS ONLY on the Buyer's side of the transaction.

We work to get BUYERS the Best Price and Terms when they Buy...

We're "The Real Estate Agents on the Buyer's Side" TM

If you have excellent credit and are thinking about buying a $250,000-$500,000 home in the Salt Lake area in the next 60-90 days, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc. All Rights Reserved

I just read a great blog entry by Ki Gray (a Realtor(R) in Austin) about why he as a listing agent prefers to work with Buyer's who have a Buyer's Agent.

I have to say, that as an agent who works ONLY with Buyers, I, too, prefer to work with SELLERS who have a Listing Agent.

I have over the years helped a number of clients purchase FSBOs. I don't actually have any problems doing it, but I often find myself asking my client if they would like me to relay information to the Seller regarding a contract deadline they are going to miss, or asking my client if they would like me to provide a form that the Seller needs to the Seller. I explain that in some instances it might be better to let the Seller miss a deadline. In other cases, if the Seller misses a deadline, it could interfere or interrupt my client's side of the transaction as well. It may delay evaluations, inspections, the appraisal. It may breach the contract.

As an agent for only the Buyer, I discuss these situations with my client and let them direct me as to how to perform on their behalf. Things work out well.

Still, there is something that makes me feel better about getting my clients a particularly great deal on a home knowing that the other party had full representation. 

Just as I feel it is unfair for a Buyer to go through a real estate transaction unrepresented, I feel the same about a Seller doing the same. Still, if I am in the midst of a transaction, my duty is to my client, and I don't let that escape me. After all, the difference is that many Sellers CHOOSE to go through a transaction unrepresented, while many Buyers do so unknowingly, or perhaps thinking that the listing agent will represent them.

If you are thinking about moving to the Salt Lake City area, make sure you get an Agent on YOUR side! 

Homebuyer Representation, Inc. is the only Real Estate Brokerage representing Buyers ONLY in Salt Lake City and the Surrounding Area. We do not list any homes. We never represent Sellers.

We work for BUYERS ONLY on the Buyer's side of the transaction.

We work to get BUYERS the Best Price and Terms when they Buy...

We're "The Real Estate Agents on the Buyer's Side" TM

If you have excellent credit and are thinking about buying a $250,000-$500,000 home in the Salt Lake area in the next 60-90 days, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc. All Rights Reserved

I prefer to work with people I like and who like me. I will gladly turn away a prospective client who is unreasonable, rude, stressful or condescending. Likewise, I wouldn't expect anyone to work with me if I treated them that way.

A good agent focuses on your concerns and needs and will find ways to meet them. You should feel welcome, and relaxed, but in control and empowered. You should be given the information you need to make an informed decision and YOU should be the person in charge, making the actual decisions.

I really enjoy working for Buyers Only because I never have to feel like I am selling them something. I show them what is available, help them make educated decisions, and stay with them throughout the process to make sure they are protected. If what appeared to be a good deal turns bad (something major turns up in the inspection, etc.) I work even harder to protect the client as I help them take the transaction apart and work on something else. I don't care what home they buy. I'm not going to be living in it. Still, I want them to know the market value of the homes they consider, the pros and the cons, and I want them to take the information I give them and make these important decisions.

I'm not selling them anything, I'm helping them become educated enough to make some of the biggest decisions they will make in their lives. 

Having this outlook and attitude about my job means I don't pressure anyone to work with me. If I feel like I have to convince someone to work with me, neither of us are going to have a good time. I'm better off letting them go, and I do.

Clients who seek me out and want to work with me are more reasonable, more enjoyable and less stressful, They also trust me more because I didn't "sell" them into working with me. We enjoy the process, they become more educated and informed about real estate. They feel confident when we negotiate. They are comfortable walking away if necessary, knowing that they are making that decision based on the best information available and what their alternatives are.

Some of my best friends are some of my past clients. We just got home from having dinner at a client's new home. Although I only worked with them briefly I can honestly say that these are good people. And I loved working with them. We saw many homes together and went through some decent negotiations a few times throughout their transaction. We found them the best home available and got it at the best price and terms possible. I only hope I can continue to be blessed with clients like I have been blessed with over the past 10 years.

Here's to another decade (or more!) representing homebuyers when they buy homes! 

If you are thinking about moving to the Salt Lake City area, make sure you get an Agent on YOUR side! 

Homebuyer Representation, Inc. is the only Real Estate Brokerage representing Buyers ONLY in Salt Lake City and the Surrounding Area. We do not list any homes. We never represent Sellers.

We work for BUYERS ONLY on the Buyer's side of the transaction.

We work to get BUYERS the Best Price and Terms when they Buy...

We're "The Real Estate Agents on the Buyer's Side" TM

If you have excellent credit and are thinking about buying a $250,000-$500,000 home in the Salt Lake area in the next 60-90 days, call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc. All Rights Reserved