Utah Real Estate Stories

Many of today's homeowners have accumulated multiple high-tech "smart" devices to make their home more convenient, economical, and fun to operate.   When they decide to sell the home, they need to make the listing agent completely aware of whether they will be included in the sale of the home.   Some of these things easily meet the definition of real property because they are permanently installed like thermostats, doorbells, cameras, garage door openers, and pool equipment monitors.   A rule of thumb mentioned frequently is that if it were removed, the functionality would cease or if there would be evidence of where it had been, it is probably real property and is included in the sale. Other devices like virtual assistants made by Amazon, Apple, or Google, may not specifically meet that criteria but they are needed to operate things like electrical switches and plugs, or lamps.   It becomes a grey area of whether it is real property when TV's, ...

There can be many reasons homeowners aspire to have their home paid for.   They can include no mortgage payments, financial security, debt reduction, lower expenses, retirement planning, financial freedom, legacy planning, no risk of foreclosure, and reduced stress, just to name a few. All those things have a cost attached to them which is the loss of the earning power which is tied up in an asset that only benefits the owner by appreciation.   In the past few years since the pandemic began, homeowners have experienced a dramatic increase in equity due to appreciation. As an example, let's set up a comparison of how the yield on equity decreases as the property appreciates.   A homeowner has a debt-free home worth $400,000 that is expected to appreciate at 4% a year for the next five years. The future value of the home would be $486,661 and the owner would have earned a 4% return on his investment in the property. In scenario #2, the homeowner refinances the ...

All of us encounter major life events and they have the possibility of disrupting our lives temporarily, if not permanently.    The homes we live in may have met our needs originally but due to a change in our life, it may no longer be adequate or the best fit for us, which will require a move. The decision to change one's living situation often comes as a response to these pivotal moments, and the reasons behind such changes can be as diverse as the events themselves.   The number of things that can influence these changes is numerous.    It may be the birth of a new child, or the ages of the children are getting such that you simply need more room.   Marriages generally merge two households into one.    The possibilities are endless, but it could be two single people or two single parents each with children who need the right space to blend the families. A promotion, transfer, or a new job could require a change in housing, or ...

House-hacking refers to buying a multifamily property on an owner-occupied mortgage, living in one unit and renting the others.    If you're thinking about becoming a rental mogul, starting early is an advantage.    Not only will you have longer to accumulate a larger portfolio, but you can also increase the leverage on the first owner-occupied acquisitions.   Leverage is the use of other people's money to finance an investment.    The higher the loan-to-value, the greater the leverage which can increase the yield.    The lower down payment gives the investor more leverage which can increase the return on their investment.   FHA, VA, Fannie Mae, and Freddie Mac each have programs for buying owner-occupied two-to four-unit properties with the same minimal down payment required for a single-family home.    The advantage is that non-occupant investors must have a 20-25% down payment where the owner occupant is much l...

During the span between 2019 and 2022, the COVID-19 pandemic significantly disrupted both society and economic activities. Nevertheless, the latest Survey of Consumer Finance , which has recently been unveiled, highlights widespread enhancements in the financial well-being of American families during this timeframe, especially concerning their net worth. The median net worth of homeowners increased 37%, after adjustment for inflation, between 2019 and 2022.   This is the largest three-year increase in the history of the modern Federal Reserve Board's triennial survey dating back to 1989 and more than twice the next largest one on record. The survey showed increases in both median and mean net worth were near universal across different types of families, grouped by either economic or demographic characteristics. For families who owned a home, the median net housing value, the value of the home, less secured debt, increased 44% between the same three-year period.  ...

Credit life insurance is a specialized type of insurance designed to provide financial protection for borrowers and their families in the event of the borrower's untimely death. This insurance is often associated with loans, including mortgages, and is specifically tied to the outstanding balance of the loan. In the case of a home purchase, credit life insurance will cover the remaining mortgage balance if the homeowner passes away before the loan is fully paid off. In some cases, lenders may include the expense of credit life insurance in your loan principal. This arrangement means that you'll accrue interest on the combined amount, potentially resulting in increased costs over time. Consequently, opting for traditional life insurance, as opposed to credit life insurance, might be a more financially prudent choice to protect your family's financial well-being. Credit life insurance offers peace of mind to homeowners, knowing that their loved ones won't be b...

Whether you're a seasoned homeowner or just starting this thrilling chapter, every time you turn your key, you're not just entering a house but also embedding yourself in a neighborhood. The heartbeat of a vibrant community doesn't solely rest upon pristine lawns or architectural beauty, but predominantly on its residents � wonderful folks like you! Consider these suggestions to enjoy your new neighborhood and actively contributing to making it a wonderful place to live. Foster Connection - Begin your journey by fostering connections. Introduce yourself to your neighbors, participate in or organize social events, and involve yourself in local gatherings, HOA, Next Door, or forums. Establishing a network of friendly faces creates a sense of belonging and shared responsibility towards the well-being of the neighborhood. Create a Safe Environment - A safe community is a serene community. Be mindful of adhering to speed limits while driving through your neighborho...

Over the last 60 years, the average sales price of homes has appreciated at a rate of 5.56% annually, according to the Federal Reserve Economic Data . During the same period, rent has increased at a rate of 3.88% annually which presents a compelling argument in favor of homeownership. When we analyze these figures, it becomes evident that homes have not only appreciated in value at a faster rate than the increase in rental costs, but they have also provided homeowners with a substantial asset that builds equity over time. This discrepancy in growth rates means that, in the long run, homeowners are likely to experience a greater return on their investment compared to renters. Renters, while they may have the flexibility of moving without the ties of property ownership and might have lower upfront costs, do not gain any equity from their monthly payments. Their money goes straight to their landlord, and they are subject to the annual increases in rent. Over time, as rent con...

When exploring the benefits of homeownership, it's more than just having a place to call your own. Among its many advantages, homeownership stands as a formidable safeguard against inflation and a strong vehicle for long-term wealth accumulation. This article will delve into the dynamics of appreciation and amortization, explaining why owning a home can be one of the most impactful financial decisions you can make. Inflation, the overall upward price movement of goods and services in an economy, erodes the purchasing power of money. In simpler terms, as inflation rises, each dollar you have buys a smaller percentage of a good or service.   The same inflation that is driving rising mortgage rates is putting upward pressure on home prices. Over the past sixty years, homes have appreciated in value at an annual appreciation rate of 5.56% according to the Federal Reserve Economic Data.   As a homeowner, you want to benefit from the appreciation.   Inflation for th...

American homeowners have a record amount of equity in their home.   Many of these homeowners would like to cash out part of that equity but don't want to trade an historically low interest rate for one that is as high as it's been in 20 years. Instead of refinancing their home, an option is to get a fixed-rate second-lien.   This is different than a HELOC, home equity line of credit, which gives you continual access to your equity at a variable rate.   A HELOC has a draw period where you only must pay the interest. A second mortgage is a loan against the equity where the homeowner will receive a lump sum and will make payments to repay the loan and interest over a specified period.   Generally speaking, lenders want the combination of the existing first-lien and the new second-lien not to exceed 75-80% of the home's current value. To calculate how much would be available in a second-lien, subtract the existing unpaid balance on the first-lien from 75-8...

Buying or selling a house is an exciting and sometimes confusing experience that includes expenses called "closing costs" that can often catch us by surprise. Closing costs are simply the fees and expenses incurred by buyers and sellers during a real estate transaction's closing or settlement process.   Typical closing costs can vary depending on what is customary in an area, the mortgage type, property value, and other factors.   The largest expenses can be the real estate commission and the title policy.   Total closing costs for a buyer can characteristically range from 2% - 5%   of the sales price and 4% - 7% for a seller. The most common buyer's closing costs include loan origination fee, title insurance, attorney fees, appraisal, homeowner's insurance, underwriting, miscellaneous fees associated with a new mortgage, and prepaid interest to the end of the month. Interest is paid in arrears on mortgages after the borrower has used the mo...

Your home is not just a place to live; it's a valuable asset that can serve as a financial resource when you need it most. One of the significant advantages of homeownership is the opportunity to build equity over time, which can be accessed in various ways to fund life's important milestones or unexpected expenses. Whether you're looking to undertake a home improvement project, consolidate debt, cover education expenses, or simply ensure financial flexibility for the future, your home equity can be a powerful tool to achieve your goals. By understanding the options available and the implications of each, you can leverage your home's value to enhance your financial well-being and seize opportunities that come your way. Home Equity Loans are a fixed amount loan using the equity in the home as collateral. The borrower receives a lump sum and pays it back in regular monthly installments over a fixed term, typically at a fixed interest rate. A Home Equity Line...

Homebuyers in the market who are frustrated by the low inventory are finding what they want in new construction.   Among the obvious advantages are that it is fresh and new, has never been lived in, and can be personalized to an individual's taste and needs. New construction homes can be more expensive upfront, but they can save you money in the long run. These homes are built to the latest building codes, which means they are more energy-efficient and require less maintenance. They also come with warranties that can help protect you from unexpected repairs. New construction homes can be a great option for first-time homebuyers. They offer a blank slate that you can customize to your liking, and they don't have the same wear and tear as older homes. Working with a REALTOR� can help you navigate the process of buying a new construction home. They can help you find the right builder, negotiate a good price, and make sure that the home is built to your specification...

Imagine you're on the verge of securing a mortgage, and a slightly higher credit score could mean a lower interest rate. The good news? There's a quicker way to make that possibility a reality. Mortgage loans are often more time-sensitive than other loans. If you find yourself in a situation where a slightly improved credit score could open doors to better rates, the solution might lie in rapid rescoring. When it comes to mortgage loans, time is of the essence. Your offer has been accepted, and you have a limited window to qualify for a new loan. But what if there was a way to boost your credit score swiftly and improve your chances of securing a lower interest rate? Enter rapid rescoring ... a powerful tool that mortgage lenders use to diagnose potential actions that could lead to a credit score increase. It's important to note that these diagnostic reports are estimates, and their accuracy can vary since different lenders employ distinct scoring formulas. Ho...

If you're in a financially stable position, now might be the perfect time to embark on your homeownership journey. Buying a home today offers several advantages, including the opportunity to build equity and stabilize your housing costs in the face of rising expenses. Explore the reasons why purchasing a home now can be a wise decision in the current market. By purchasing a home today, you can start building equity, which is an investment in your future. Additionally, opting for a fixed-rate mortgage allows you to stabilize your monthly housing costs for the long term, even as other expenses continue to rise. This stability provides peace of mind in an ever-changing financial landscape. While housing costs experienced significant increases in 2021 due to a combination of factors, such as inflation, high demand, and low supply, the market has since moderated. If you decide to buy now, you can expect relatively stable house prices and potentially face less competition f...

Moving can be stressful enough without having to worry about being scammed by a moving company. Unfortunately, there are unscrupulous movers out there who prey on people who are in the midst of moving. To protect yourself from being scammed, it's important to be aware of the red flags. Here are a few things to watch out for: The mover or broker doesn't perform an on-site inspection of your household items and gives an estimate over the telephone or online. A legitimate moving company will always come to your home to inspect your belongings and give you an accurate estimate. The mover or broker doesn't provide a written estimate or says they will determine the cost after loading. A written estimate is essential to protect yourself from hidden charges. The moving company demands cash or a large deposit before the move. Legitimate moving companies will accept credit cards or checks. The mover asks you to sign blank documents. Never sign blank documents. This ...

A showing is an opportunity for a buyer to determine if a home is right for them. Each of the different types of showing plays a valid and necessary role in marketing the home. Some buyers may start by looking at homes online, which can lead them to drive by the home to see if it still meets their interest before they schedule a showing. Online showing : This is when a buyer looks at a home's listing online, including photos, videos, and a description. This can be a great way for buyers to get a general overview of a home and see if it is worth scheduling a showing. Drive-by showing : This is when a buyer drives by a home to see it in person. This can be a good way for buyers to get a feel for the neighborhood and the surrounding area. It can also be helpful for buyers to see the home's size and layout from the outside. In-person showing : This is when a buyer schedules a time to visit the home with a real estate agent. This is the best way for buyers to get a tru...

Homeowners who are facing financial difficulty are often targeted by mortgage relief scams. These scams can be very convincing, and homeowners may be desperate for help, making them vulnerable to these schemes. Scammers often pose as government officials or mortgage experts, and they may promise homeowners that they can help them avoid foreclosure or modify their mortgage loan. However, these promises are often false, and homeowners who fall victim to these scams may lose their homes and their money. If you are facing financial difficulty and you are considering a mortgage relief program, it is important to do your research and be very careful. Here are some tips to help you avoid becoming a victim of a mortgage relief scam: Only work with a HUD-approved housing counselor. You can find a housing counselor by calling 1-888-995-HOPE (4673). Be wary of anyone who promises to help you avoid foreclosure or modify your mortgage loan for a fee. It is illegal for anyone other tha...

Buying or selling a home is a big adventure; some thrill seekers may choose to take on both tasks at the same time. If you're finding yourself in the position of needing to buy and sell at the same time, here are some tips to help you navigate the possibly challenging course ahead of you. Evaluate Your Local Market For most buyers and sellers, selling their current home before putting an offer on another property is their best real estate option. But for others, it really depends on the local real estate market. If you're thinking of selling and buying at the same time, research the market in your target area. This can help you gauge whether it's a buyer or seller market. If many properties are available, it might be a good time to list. If inventory is low, you may need to wait until the market picks up again. The general rule of thumb is to sell first in a buyer's market and buy first in a seller's market; but this isn't always the case since eve...

With new mortgage rates approaching 8%, many buyers have decided to wait for rates to come down.   While there may be some easing in the fourth quarter of 2023 and 2024, assuming an existing FHA mortgage with a lower rate made in the last three or four years might be a much better alternative. Since December 1, 1986, FHA has had the right to approve the purchaser of an existing FHA loan.   Prior to that, anyone, regardless of credit worthiness or other qualifications, could assume an existing FHA loan.   Existing FHA mortgages are assumable at the current interest rate for owner-occupied buyers.   The benefit is that the rate could be much lower than a new current mortgage.   The borrower must qualify for the loan under current FHA underwriting guidelines, but it will be easier because the payment will be lower due to a lower assumable mortgage rate. The buyer's closing costs on an assumption are less than a new FHA loan because an appraisal and s...