Owning a home may be the American Dream, but the process of buying and selling one can be complex. You can ensure a smoother transaction by using a real estate professional. Here are some tips to help you find the best agent for you:

  1. Ask friends, neighbors, relatives and co-workers who’ve recently bought or sold homes in your area.Which company and agent did they work with? What kind of service did they receive? Would they work with the same agent again?
  2. Check out “For Sale” signs in your area and note which ones have sold.You want to be sure you’re choosing an agent who gets results.
  3. Attend open houses in your area. At open houses, you can watch agents in action, judge their sales expertise and collect information on properties that are competing with yours. A top-notch agent will provide a fact sheet about the property and will be prepared with information on similar properties and listings for the entire area.
  4. Look for companies that specialize in the kind of real estate you want to buy or sell. 
  5. Look for agents who specialize in the area. 
  6. Narrow your search to five or fewer. Once you’ve narrowed your search, you’re ready to contact and interview agents.
  7. Find out whether the agent is a member of a professional association. Use of the term REALTOR® designates membership in a local board of REALTORS®, the Utah Association of REALTORS® and the National Association of REALTORS®. Members are required to follow a strict code of ethics and are encouraged to pursue continuing real estate education.
  8. Audition your agent. During each listing presentation, evaluate the agent’s preparation, competence and professionalism as well as the company’s services.
  9. Look for an agent who shows enthusiasm and a positive attitude toward your house. That isn’t necessarily the person who talks fastest or longest. It may be the agent who asks a lot of questions and takes notes on decorating, construction, landscaping and personal property that will remain with the house.

The decision about whether to choose an experienced or inexperienced agent is a personal one. Sometimes a rookie’s enthusiasm and motivation outweigh a lack of experience. Others may prefer working with a veteran REALTOR® who has established a successful sales record.

Appraisals in a Hot Market

Thursday, March 4, 2021

Few homes for sale combined with high demand for housing has created a hot housing market. With home prices rapidly increasing — in January Utah prices were up 17% — that’s creating several challenges for both buyers and sellers.

One of those challenges is when the appraisal comes in less than the purchase price, threatening the buyer’s ability to purchase the home. While this can happen at any time, it often occurs in markets where home prices are rapidly rising.

It’s a situation that can be disappointing for all parties, so here are some tips for both buyers and sellers on navigating a successful transaction.

All about Appraisals

For buyers who need a mortgage, getting an appraisal is part of the home-buying process. To protect their investment, the lender will require an appraisal to affirm the home’s value and justify the amount they are lending.

In many cases, the appraisal is close to the amount the buyer has offered to pay for the home; however, sometimes it comes in lower than the purchase price.

When this happens, the buyer has several options: 1) use cash to pay the difference between the appraised value and the purchase price, 2) negotiate with the seller on the price or other concessions, 3) back out based on the contract terms or 4) challenge the appraisal or request a new one.

Tips for Sellers

Sellers can take several steps to help the appraiser determine an accurate home value.

One of the most important things is to let the appraiser know about the unique features of your home. For example, you’ll want to make sure the appraiser has information about improvements, repairs and updates you’ve made to the home, including information about the quality of the changes you made.

This is particularly important for features that are not readily apparent. For example, you’ll want to provide information about updates to the home’s heating and cooling systems, roof, insulation and windows.

You’ll also want to highlight energy-efficient features such as windows and solar systems, and detail how much these improvements save you in energy costs each month.

Keep in mind that while your improvements may add value to your home, the value is likely less than what you spent on the project.

In addition to providing accurate information to the appraiser, you’ll also want to carefully consider offers. In this hot market, you may receive multiple offers if you price your home right.

As you evaluate buyers’ offers, here are a couple features to consider: 1) If buyers waive the appraisal contingency, you won’t have to worry about an appraisal coming in low. 2) If buyers indicate they will use cash to pay the difference between the appraised value and the purchase price (provided the appraised value does not fall below a certain point), that will provide some buffer for a lower appraisal.

Tips for Buyers

Buyers will want to work with their Realtor to determine how much a property is likely to appraise for based on comparable sales. If it’s likely to be sold for more than appraised value and you don’t have any flexibility to put down additional cash, you may decide to look for other homes.

If you do have some flexibility, you’ll want to talk to your Realtor about steps you can take to make your offer more competitive so there’s a greater chance the seller will accept it.

For example, you could waive the appraisal contingency or let the seller know that you are willing to make up the difference between a low appraisal and the purchase price.

If you find yourself in a situation where your appraisal comes in low, you’ll also want to talk to your Realtor about whether it makes sense to appeal the appraisal. To do this, however, you’ll have to let the lender know specifically why the appraisal isn’t accurate.

For more information about how to navigate a hot housing market, contact a local Realtor. Find one at MyRealtorStory.com.

Home builders release new priced out study

Even small increases in the cost of a home can prevent hundreds of people from achieving homeownership. That’s according to a new study from the National Association of Home Builders (NAHB).
In Utah, for example, a $1,000 increase in the statewide median new home price of $419,078 would push 1,496 households out of the market. Based on their incomes, these households would qualify for a mortgage before the price increase but not after.
Nationally, a $1,000 increase pushes 153,967 households out of the market, according to the study.
“Builders report several factors contributing to a lack of affordable housing, including shortages or delays in obtaining building materials; rising material costs, particularly record-high lumber prices; excessive regulations; a shortage of construction workers; and a lack of buildable lots,” said NAHB in a press release about the study.