Murray

Many of you are wondering about the $8,000 tax credit.  This is just a reminder that if you are a first time home buyer and you purchase by April 30th, 2010 you will receive the $8,000 tax credit.   In cases where you have a signed contract by April 30th and you purchase by the end of June you are still eligible for this tax credit.  Whether you buy a home in Murray, buy a home in West Jordan, or buy a home in Salt Lake City, it is a perfect time to buy.  Don’t miss out!!!

The Salt Lake Board of Realtors reported that “sales of single-family homes in Salt Lake County were up 36.2% in the fourth quarter compared to the same quarter last year.”  This doesn’t necessarily mean that home prices are going up, but it does mean that people are out there buying homes.  Some cities in Salt Lake County saw homes sales jump dramatically while others were a bit more steady.  The Salt Lake Board of Realtors reported that “in Draper (84020) home sales soared by 51.7 percent. In Midvale (84047), sales were up 108.8 percent. In Herriman (84096), sales rose by 42.3 percent. In West Valley (84128), sales were up 38.5 percent. Areas of downtown Salt Lake City also saw big increases in sales. Sales in the Avenues (84103) were up 41.7 percent.”

It is actually very simple.  The note is the loan contract and the deed is what helps secure the note to the asset.   Things included in the note are: interest rate, terms of the loan, pre-payment penalty.  When someone buys a home the deed is recorded with the county giving them title and ownership to the home and creates that security interest, and makes the debt or note secured by a specific asset.

So what is the best thing to remodel in your home???  If you are planning on staying in your home then you should remodel based on individual need.  If you are remodeling with the intent to sell and trying to see which project will recoup the greatest value financially, below are a few good idea.

The National Association of Realtors did a study for 2009 in 80 markets across the country showing remodeling cost vs. value report.  Interestingly 8 of the top 10 projects done in terms of costs recouped exterior replacements that cost less that $14,000.  What this tells me is that curb appeal is very important.

The National Association of Realtors reports, “ On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3 percent costs recouped.”

From my personal experience I would say remodeling kitchens and master bedrooms/bathrooms would be a great idea in terms of what people are looking for in a home.   If you are looking for cheaper ideas to make a home more presentable I would suggest painting, replacing flooring/carpet, and keeping things looking clean and tidy.  First impressions go a long way.

Below is a link to the NAR article which is very interested and insightful. http://www.realtor.org/press_room/news_releases/2009/12/exterior_proves

Many of you may wonder “What does a title company do”???  There are many things a title company does, but the main one is to be a facilitator during your home buying process.  Once an offer on a house is accepted you will pick a title company and make sure they have a copy of the contract.   They will also issue you title insurance to insure that when you purchase the property that you own the home free and clear.   The title company is also who will prepare all of the closing documents.  They will also walk you through those papers when you go in to the title company to sign the documents.   Below is a list of many of the responsibilies of a title company.

• Preparing the closing documents for all the parties
• Paying off the loan of the seller
• Walking you through the paperwork at settlement and answering questions
• Paying off the seller’s loan
• On occasion depositing the buyer’s earnest money check
• Coordinating paperwork between all parties involved
• Prorating annual property taxes and other items such as rents collected if necessary
• Coordinating the funding of the loan
• Dispursing checks and commissions
• Preparing and recording deeds and other necessary documents

Many people ask themselves “What is my home Worth?”  There are actually a few ways to determine this.  The two main ways to figure out the value of your home is to 1) order an appraisal or 2) have a real estate agent do a comparative market analysis (CMA).

Whether you have a home in Murray, a home in West Jordan, or a home anywhere in Utah you can always order an appraisal.  An appraisal will cost you several hundred of dollars, but is a very accurate way to find out what your home is worth.  When you are going to buy a home in Murray, buy a home in West Jordan, or buy a home anywhere in Utah you will required to have an appraisal done.  If you do pay cash for your home you are not required to order an appraisal. 

Another great way to find out the value of your home is to have a real estate agent do a comparative market analysis, otherwise known as a CMA.  The good part about this is that it is usually free!!!  Real estate agents are able to pull up homes that have sold in your neighborhood and use computer software to figure out what your home is worth.

If you are looking to get your home sold or just looking to see what your home is worth I would be more than happy to help you with that.  It is typically an easy process and yes it is absolutely free.  For a more accurate market analysis I would prefer to come take a look at your home, but I am also able to pull up the information I need on my computer from county records.

One part of the market that is really struggling it high end homes.   There are several reasons why this is the case.  One reason is because several years ago new construction and million dollar homes were being built at a rapid pace.   With a slow down in the market there are more million dollar homes than people are buying.  Another reason these home might not be selling is because it is harder to get a loan today than it was a few years ago.  This is even more true with Million Dollar Homes.  

The Salt Lake Board of Realtors reported that “In the first nine months of 2009 in Salt Lake County, there were 40 sales of homes at $1 million or greater. That is down 34 percent compared to 61 sales above the million dollar mark during the same January through September period a year ago (there were 71 home sales at $1 million or greater in Salt Lake County for all of 2008).   In 2007, the year home prices peaked in Salt Lake County, there were 134 homes that closed at $1 million or greater. In 2006, there were 133.”

The news that million dollar homes are harder to sell in this market it not good for current home owners, but at the same time this can be good for those that are in the market for a high end home!! 

One of the first steps to buying a home is getting qualified for a loan.  This is a very important step because once you are qualified for a loan you will know how much you are approved for, what type of loan you need, and how much you will need to bring in as a down payment.  

Here are a few different types of loans:

FHA LOAN

An FHA Loan is a loan insured by a government agency called the Federal Housing Agency.  Typically on this type of loan a buyer would need to bring in about 3% of the purchase price for a down payment.  There are also still some programs out there today where you can get a loan for virtually nothing down.  An FHA loan is very common today and is good to do if you do not have enough for a big down payment that other types of loans may require.  One important thing to remember on an FHA loan is that there are limits on the amount of the loan.

VA LOANS

VA Loans are for those that are qualified by military service or other entitlements.  This type of loan is not extremely common, but may be a good option for you if you have served in the military.

CONVENTIONAL LOANS

Conventional Loans are also another popular type of loan.  Typically you need a 5% down payment so many people opt to go with an FHA loan.   This type of loan in not guaranteed or insured by the Federal Housing Agency, but typically these types of loans offer good interest rates.

This is just a brief overview of loans.  There are so many types of loans such as an ARM, 15 year, or 30 year loan.  If you have questions feel free to ask or I can direct you to a loan officer who would be well qualified to answer your questions.

So the $8,000 tax credit was put in place to help stimulate the economy and help home sales.  It looks like it is working.  During the last year there have been more first time home buyers than ever before.  The National Association of Realtors reports that ”the number of first-time home buyers rose to 47 percent of all home sales from 41 percent of transactions in last year’s study, and was the highest on record dating back to 1981. The previous high was 44 percent in 1991.”

For those of you that own a home hopefully this $8,000 tax credit will help keep home prices stable and help keep home sales moving.   For those of you that are looking to buy a home and take advantage of low prices & low interest rates remember the first time home buyer tax credit expires the end of April 2010.  Also, remember it doesn’t matter if you buy a home in Murray, buy a home in West Jordan, or buy a home in Salt Lake, you are eligible for this tax credit.  To check out more info about this article I have attached a link.    http://www.realtor.org/press_room/news_releases/2009/11/survey_record

It’s true folks.  The $8,000 first time home buyer tax credit has been extended until April 30th 2010.  1st time home buyers who buy a home, condo, or townhome will be eligible for this credit. 

Remember there are income restrictions.  Single buyers who make over $125,000 and and married couples who make over $225,000 will not be eligible for this tax credit.  Also, this credit is only for homes purchased that are under $800,000.

There is also a $6,500 tax credit for current home owners buying a home that have lived in or owned their property for 5 years.   Let me know if you have any questions about these programs.  Remember this tax credit is available if you buy a home in Murray, buy a home in West Jordan, or buy a home in Salt Lake City.  It is a nation-wide program.

For more info regarding this program read this article from the National Association of Realtors http://www.realtor.org/HOME_BUYERS_AND_SELLERS/2009_FIRST_TIME_HOME_BUYER_TAX_CREDIT