The nightly news has continued to share bad news for about a year now regarding our economy. Interestingly the economy has continued to slow at about the same pace as the reports of the economy have increased. As a result, people are question when they should buy a home in Logan, Utah. So who is really to blame for the problems we currently face?

I read an interesting letter to the editor in the Herald Journal recently regarding the recession which may prove useful for those looking to buy a home in Logan. Local Smithfield resident Dave Taylor had some great points to make in his letter, Media to Blame for Recession. In Taylor’s letter he quotes Franklin D. Roosevelt as saying, “the only thing we have to fear is fear itself.” I believe we have begun to see the truth of this statement.

In the U.S. our economy relies on consumer confidence. As long as people continue to purchase goods and services, the economy will continue to work naturally. The real estate market works the same way with buying homes and property. Consumer confidence has suffered greatly because as consumers we are inundated daily with negative news. As consumers have heard that the economy is failing, they have quit purchasing which has only further slowed the economy.

In Logan, we have seen the effects of the slowing economy recently as home buyers have slowly decreased. Right now has become a perfect time for people to buy a home and invest in real estate as home prices have become more affordable, interest rates are low, the government has offered a tax credit, and there are plenty of homes to buy. The reality is consumers still don’t trust that now is a good time to buy a home in Logan, Utah.

Now is not a good time to overextend yourself by buying a home in Logan that is more than you can afford. Well, really it is never good to overextend yourself. The truth is no matter what happens in the economy people are always going to need a place to live and owning is a better investment than renting. If you are currently renting, now would be a great time to see if buying a home in Logan, Utah is right for you.  Here is a great website that may anwer a lot of questions for those thinking of buying a home in Logan, Utah.

As consumers have been watching, reading, and hearing the news of the economy, my phone has begun to ring with questions of buying foreclosures in Logan, UT. As Americans we like to get a good deal and foreclosed homes can be a good opportunity to save some money. Although, there are some misconceptions people have regarding real estate foreclosures.

How Many Foreclosures Are There?

The number one misconception I deal with is regarding the number of foreclosure listings. Somehow a message was received by people all across the country that everybody was losing their home as a foreclosure. The fact of the matter is that in Logan, Utah we don’t have all that many individuals facing foreclosure. Currently on my desk I have an updated list of bank owned homes and homes in the foreclosure process. The list has eight homes that have been repossessed by the bank. This is a small number compared to the total number of homes for sale in the area.

The list also contains the homes that are approaching foreclosure. The homeowner is trying to salvage their own credit and avoid foreclosure so they are usually willing to sell for what they owe on the home. Banks also want to avoid processing a foreclosure and may work out a deal to accept less money than they are owed through a short sale. Normally you will get the best deal if you can make a purchase before the home is actually foreclosed. This foreclosure process can be lengthy and require a large abundance of paperwork. I wouldn’t suggest anyone try to purchase a foreclosed home without the help of a real estate professional.

Can I Buy a Foreclosed Home For Under $10,000?

The second misconception has to do with the amount you have to pay for a foreclosed home. I have had numerous people call me wondering where they can find real estate foreclosure for under $10,000. I was shocked that so many people believed this could happen until I was watching television the other night when I saw a commercial telling people to call for their free list of homes in their area of foreclosed homes. The commercial featured numerous foreclosed listings that apparently sold for very little money. Although that may be true in some extremely distressed areas, in Logan purchasing foreclosures for under $10,000 is not a reality. In Logan most of these foreclosure listings will sell for at or near retail value. The bank is going to try and recoup as much money from these foreclosed homes as they can to protect their investors.

Where Are The Foreclosures?

The homes in foreclosure and approaching foreclosure in Logan are spread out. There are many starter homes, a few midrange homes, and some nicer homes on the hill. There are homes on my list that could be an option for a wide variety of people. If you are planning on buying a foreclosed home it does limit your options to choose from, but the savings may be enough to make it worth your while.

As the economy in general has slowed many prospective homeowners have taken despair as they have watched the doom and gloom on the National and local Logan news networks. The truth is the economy has slowed, which in has made many think twice about buying a home in Logan, UT. Although, that doesn’t mean you shouldn’t buy a home. In fact, today’s home buyers in Logan, UT are in a better position to buy a home than ever before.

Here are few great reasons to buy a home now rather than waiting.

Mortgage Rates are Low

In Logan, borrowing money to buy a home can be stressful and often overwhelming when you start to think about how much you will end up repaying on your loan over time. Just a small change in your interest rate can have a big effect on your monthly payment. Today rates were as low as 5.25%. If you don’t think that’s a good rate for buying a home, ask your parents what their interest rate was in the 1980s.

Home-Buying Incentives

There are a lot of homes to choose from in the Logan area ranging from new homes to older homes. This large inventory has forced builders and home owners to offer some great home buying incentives. As a home buyer you can plan on having the home owner pay your closing costs and the owner may even accept a lower offer depending on how badly they need to sell their home. Many Logan, UT builders are offering home buyers free upgrades and lower prices on their inventory.

Listen closely Logan residents, in addition to these incentives, if you purchase a house prior to July 1, 2009 you can claim a $7500 tax credit on your 2008 tax return. This is a great program the government has initiated to help people buy a house. You can do anything you desire with the $7500 tax credit such as put it in the bank, put it towards the principal of your mortgage, buy a new television, new furniture, etc. There are some catches to this program. Contact me and I’ll give you all of the details.

Home Prices are Lower

Due to the large inventory of homes for sale and the slowing of the National economy, prices in Logan have also gone down. Home buyers have not seen as big of drops as many markets across the Nation because we didn’t see the big appreciation that those markets saw in years past. Our home prices have mainly gone down due to our large inventory. Home buyers in Logan need to recognize that this large inventory is not going to last for long. Once the inventory is reduced by those buying houses, home prices will go back up. In my opinion the window of this great buyer’s market will be closing as spring arrives, if you are thinking about buying a house, act quickly.

Robert W. Bowen is a professional REALTOR® with RE/MAX Excel in Logan, UT. You can contact him with questions through his website, www.RobertWBowen.com, or calling (435) 770-1352.

Disclaimer: Information in the post is deemed reliable, but cannot be guaranteed as many sources may have been used and may or may not have been reliable at the time of sourcing. The information in this post is an opinion of the author, may be time sensitive, and is subject to change without notice.

As the real estate market has slowed many homeowners are making the decision to remodel their home to make homes for sale more appealing to potential buyers. If you are considering listing your home for sale, the real question is what kind of return can you expect on this remodel and what areas of the home should you remodel?

Home improvements have some great benefits. First off, it may make your home more enjoyable to live in. A new kitchen with new cabinets, new appliances, and more space could make almost anyone who likes to cook a smile on their face. Secondly, giving your home some upgrades can make your home easier to sell.

Although remodeling does have its benefits, you can also expect some negatives. If your home is for sale, and you are hoping to remodel to make a profit, it won’t happen. Generally you will lose money on the remodel. You should know and be well aware that you will not recoup 100% of the money you put into remodeling. Some remodeling will give a higher return than others. The first piece of advice I would give anyone who is considering remodeling their home is to do it for their enjoyment. And yes, the remodel can make the home more attractive for future buyers.

So what area of the home should you focus on?
If you are trying to sell your home curb appeal is the name of the game. Take time to spruce up what people see as they pass by your home. Cleaning up the yard is the first step you should take. A fresh coat of paint also gives the home a new look. If you do want to do some remodeling, new siding and windows are a good place to start. In Logan, UT you can expect about 80%return on new siding and about 76% return on new windows. The new windows could make your home more energy efficient though and save you some money every month. Because the outside of your home is what people see first it needs to stand out in their mind.

When it comes to doing renovations inside your home remember my first piece of advice: do it for your own enjoyment, you can’t expect to get all the money back. Kitchens make the most sense to remodel. A nice kitchen will stand out in the minds of anyone who sees the house. In Logan, Utah a midrange upgrade to the kitchen will give you about an 85% return on every dollar you spend. You may also want to finish off your basement. The added living space may make you want to stay in the home.
Right now in Logan, Utah there are a lot of sub contractors that are in need of work and would be happy to give you a good deal on helping you make some renovations to your home. Building materials have also been reduced in price. Now may be the time to give your home those improvements you’ve been waiting for.

With all of the news of the slowing housing market and the condition of the economy it seems that everyone is waiting to find the best deal before purchasing. And why wouldn’t you want to get the best deal? I get calls from people every week wanting to buy foreclosures. How many foreclosed homes are available in the area and should you buy a foreclosure?

Foreclosures happen when someone is no longer able to pay their mortgage payments on their home. A foreclosure is the last step that the bank takes. After a person is past due 90 days the bank issues a Notice of Default. The Notice of Default is public information and is filed at the County Recorder’s Office. The Notice of Default tells the homeowner that they need to catch the mortgage up, sell the home and pay off the mortgage, or risk losing the home to the bank, resulting in a foreclosed home.

Pre-Foreclosure
After the Notice of Default has been filed, the property is put up for auction as a foreclosure. Depending on the state where the home is located, they will tell you how long before this happens. Foreclosure investors looking for a good deal usually target homeowners prior to the auction offering the homeowner enough to pay their mortgage off and walk away. This can be a good deal for the homeowner because often they don’t have enough time to sell the home on the market before the auction, thus avoiding a foreclosed home. This can also help salvage the homeowner’s credit, which would plummet if dinged with a foreclosure.
Should the homeowner not catch up the mortgage payments or sell the home, the next step is for the bank to take the property to auction, depending on the state depends on how this process happens. At the auction, usually held on the steps of the courthouse, anyone can come and bid on the house. Auctions can be a source for a great deal on a home, but not everyone has the ability to buy at an auction because you must pay cash for the home.

Benefits of Buying a Foreclosure
The reason people want to purchase foreclosure listings is to get that good deal they’ve been searching for. With foreclosed homes, you often get the home for below market value and have instant equity in the home. Investors love buying foreclosures that they can go in and quickly fix up and sell for a quick profit. This is known as ‘flipping’ a house. There are many television shows that get people excited about flipping homes. I’ll save the process of doing this for another blog post.

Negatives of Buying a Foreclosure
Buying foreclosures can be a risky investment. Often-times foreclosures are in need of some much needed repairs that the previous owners neglected to perform. And when you buy a foreclosure, especially at an auction, you don’t have the time to perform inspections before purchasing. Before jumping into buying a foreclosed house, do your homework. Talk to real estate professionals about the market prices of homes similar to the one being foreclosed on and give yourself enough cushion to be able to perform the repairs and still have your total invested less than the market value.
Buying a home when the bank gets involved can be very stressful and require a lot of extra paperwork. It is best to have a knowledgeable real estate agent assist you through this process. For some people buying a foreclosure is a great deal, for others it may be too much of a headache to get involved in.

How Many Foreclosures Are There?
After watching the nightly news, one might be led to believe that there is an overabundance of foreclosures on the market. The reality is that every local market varies. Here in the Logan, Utah area we currently have about 13 bank owned homes, and less than 20 homes in pre-foreclosure. This means that competition is high, which will increase the odds of these homes selling near market value. In other markets there are a larger number of homes facing foreclosure or are already bank-owned.