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        <title>St George Utah Real Estate Blog</title>
        <link>http://www.stgeorgeutproperty.com/blog/utah-buyers-information/</link>
        <description>Find news and information pertaining to the St George Utah real estate market.  Paula Smith of ReMax First offers news and updates with relevant market statistics and analysis.   </description>
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            <guid>http://www.stgeorgeutproperty.com/blog/3-tips-for-purchasing-a-home-that-has-been-foreclosed.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/3-tips-for-purchasing-a-home-that-has-been-foreclosed.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>3 Tips For Purchasing a Home That Has Been Foreclosed</title>
            <description> <![CDATA[ 
Like most areas, the foreclosure market remains high in St George. 
Buyers often feel as though they can achieve their best deal by 
purchasing a foreclosed home. While this can be true, it is not always 
the case. If you are in the market to buy a new home, here are 3 tips 
for purchasing a home that has been foreclosed in St George Utah.


Use a Qualified Buyers Agent


Using
 a local, qualified buyer's agent is a critical step when purchasing a 
foreclosed home. Using a local agent can be beneficial for understanding
 the possible history of the particular home. One problem with 
purchasing a foreclosed home is that there are NO sellers disclosures. 
You will purchase this home without knowing any history about it. A good
 buyer's agent will typically try to pull the history from an old MLS 
listing, which could provide some detail into the past status of the 
home. For instance, once I checked the history and found that a few 
years back an agent had noted "settling issues on the rear of the home".
 Since there were currently no obvious signs of settling, we were able 
to hire qualified individuals to investigate this concern. Also, a local
 agent will have insight to specific neighborhoods and possible 
concerns. Buyer's agents are aware with industry standards and what will
 likely be accepted on a written contract. I cannot tell you how many 
buyers I've encountered who had no idea they could have a home warranty 
included in their transaction.


Hire a Home Inspector


This
 is not the time to call your friends dad who did construction for 20 
years to come and "inspect" your potential home. Sure, they can come and
 offer their opinion, but now more than ever, it is imperative to hire 
professionals to really check the home. Again, you have NO history on 
this home. Keep in mind there is probably a reason why the former owners
 walked away. It can also be an alert if there was no prior listing 
history, meaning the former owners did not try to sell it prior to 
walking away. Sometimes this is because they know something is seriously
 wrong with the property and they would rather walk than to face the 
next buyer and tell them all of the issues. Now is the time to hire a 
HVAC technician, plumber, and a roofer to offer their professional 
opinion for the key components of the home. If the property has been 
abandoned for any length of time, this can add to the problems that may 
not be visibly obvious.


Financially Prepare for the Unknown


Almost
 always there will be something discovered after closing that may have 
been missed on the home inspections or that was unable to be tested (for
 instance, you cannot test the AC in the winter). Homes that have been 
sitting abandoned for any length of time will almost always develop some
 issues. Sprinkler lines may have busted, pipes may have corroded, or 
there could be some acts of sabotage from the prior owner. One home I 
sold, I happened to be present during the home inspection. This 
inspector was extremely thorough (which is crucial) and as he was 
running the dishwasher I noticed some water on the ground. We stopped 
the dishwasher and he discovered a very small hole in the p-trap of the 
pipe under the sink. This small hole (about the size of a drill bit) was
 located on the backside, so it was undetectable during visual 
inspection. Clearly a disgruntled homeowner who is upset with the bank 
can do some serious damage to a home in very inconspicuous ways. 
Unfortunately the former owners directed aggression at the bank, 
typically only causes the new (innocent) homeowner to be caught in the 
crosshairs. Have some available cash ready for issues that can arise 
after closing. Be prepared for the unknown.


Purchasing a 
foreclosed home in St George Utah can be a great way to save some money,
 however keep in mind that you will have to exercise increased due 
diligence with any foreclosure purchase, which can add to the expenses. 
An undetected problem after closing could very easily erase every cent 
of that "savings" and even turn out to be more costly. If you are 
considering a home in the St George Utah area, contact Paula Smith of 
ReMax First Realty www.StGeorgeUTproperty.com, here you can also view current market reports and statistics that depict our current foreclosure conditions.  Looking for a list of ALL St George Utah listed Foreclosures?  Find a free foreclosure list updated daily here:  St George Utah Foreclosures list
 ]]> </description>
            <pubDate>Wed, 02 May 2012 13:26:47 -0500</pubDate>
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            <guid>http://www.stgeorgeutproperty.com/blog/whats-a-short-sale-short-sale-real-estate-explained.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/whats-a-short-sale-short-sale-real-estate-explained.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>What’s a Short Sale?  Short Sale Real Estate Explained</title>
            <description> <![CDATA[ 
What is a short sale? 
What is the short sale process in St George Utah?  Can I get a better deal on a St George short sale
property?  Short sales and Foreclosures
are NOT the same thing. In “short” a short sale is when a homeowner is facing
financial stress and they are attempting to sell the home for less than they
own on their loan.  While it is the
homeowner who is actually selling the home (the homeowner still owns the
property) it is the bank or mortgage provider(s) that will make the final decision
on IF and for HOW MUCH they will accept. 
Typically here on our St George MLS, short sale listings may be noted as
“third party approval required”.  A
Foreclosure is when the bank has taken the home from the homeowner and now the
BANK is selling the home (also known as REO). 


When a listing agent is attempting to sell a home for a
homeowner as a short sale, it would make the most sense for the agent to
contact the bank and predetermine “how much” the bank will consider accepting
on the property.  Seems simple.  Not so! 
The bank typically will NOT talk to anyone until an offer to purchase
has been received.  So the quickest way
for the listing agent and homeowner to receive an offer is to price is VERY
well.  It’s supposed to be priced at fair
market value, but often they price them down right ridiculously low in an efforts
to achieve an offer (usually they will get multiple offers).  Once they have the offer, the bank will begin
the process.  Keep in mind, the seller
must actually qualify for a short sale. 
Sellers cannot just “decide” they will sell it for less than they owe,
there have to be conditions met and proof of financial distress (sometimes this
is not realized until well into the process creating one of several reasons why
short sales may not “close”).  


All of these buyers see this wonderful home at an amazing
price, nothing compares!  They have high
hopes they can purchase this home for a price close to this listing price.  Savvy buyers sometimes feel they can even offer
a bit lower (since they’ve read articles online that suggest sellers will take
less than asking price).  So the buyer
makes an offer (typically 5-7 buyers make an offer) and they are thrilled when
the owner accepts the offer.  FYI the
owner will usually accept any offer; remember this is only the first step to
begin the process.  Several buyers will
go into a backup position (due to the typically lower price, multiple offers
are usually received). Now the next phase begins and the listing agent (or
short sale company they have hired to facilitate the transaction) can begin
working with the bank on an approval.  This
is when the transaction may read “Under Review” or “only back up offers
accepted”.  The buyer(s) will wait
patiently for a response from the bank; 95% of the time the bank will counter
back at a higher price.  Say you found a
home for $200,000 and you made a full price offer (because homes you saw like
this, were priced more like $230,000), typically an initial offer can take
40-60 days to hear anything, however I’ve seen them take as long as 3 months to
hear back.  


THE COUNTER or THE BANK RESPONSE


So you’ve been patiently waiting for 3 months with your fingers
crossed on your $200,000 offer and the bank finally comes back with a
counter.  They want $230,000.  A $30,000 counter stuns the first buyer and
they walk away, same with buyers 2, 3, 4, 5, and 6.  So now, the listing agent puts the house back
on the market.  It’s still listed at
$200,000 but now reads “bank approved price”. 
It’s true, the bank DID approve “a” price…but they approved $230,000 not
$200,000.  A whole new crop of hopeful
buyers see this home and think there is a good chance they can get this home
for a great price and since it’s already “approved” the process should go much
quicker.  No one wants to pay $230,000 so
the listing agent will explain to the new crop of buyers how the bank countered
at $230,000 but all 6 buyers walked, so they are taking new offers to send back
to the bank hoping to get the bank to come down from their $230,000
counter.  After all…it’s been a few
months.  And so the process starts
again.  


Sometimes the bank will counter for an amount that is
acceptable, IF the listing was offered at a fair price.  Closing a short sale home IS possible, it
just takes an extreme amount of patience and low expectations.  Buyers have to understand that they are not
going to get a $230,000 home for $199,000—it just isn’t going to happen.  Homes are selling for great prices BUT…they
are almost ALL selling for FAIR MARKET VALUE (or close to it).  Occasionally, a bank will counter for a price
even higher than fair market value.  More
often than not, a short sale home will end up going through foreclosure and the
short sale will have been unsuccessful.   A typical successful short sale will usually
take 3-6 months to close.  Keep in mind,
there are so many people involved in a short sale process.  If the homeowners “gives up” and leaves town,
or changes their mind at wanting to proceed (happens all of the time) then the
process comes to a halt.  The homeowner
not only has to qualify for the short sale, but they also must remain
involved.  While it’s not ultimately
their decision on how much the home will sell for (the bank decides how much
they will accept) it is still THEIR home so they must sign all paperwork and be
present for closing.   


So if you’re are looking for the deal of the century, to buy
a home worth $250,000 for $199,000….it’s just not going to happen here in St.
George.  You can achieve a decent price
on a great home, but typically the “deal” is no better than a standard
transaction where you have a motivated seller. 
Actually, I’ve achieved better deals with a motivated seller who
understands they are competing with banks and they drop the price to get it
sold quickly. 


So Why Bother With A Short Sale?


The advantage to making an offer on a short sale can vary
for particular situations.  If you are
looking to purchase a home, but you are not ready to close for a few months
then a short sale could be an option.  If
you are very patient and find a great home, chances are other buyers also competing
for that home will give up.  If you
realize that the home will sell for close to fair market value, and you make a fair
price offer, then there is a possibility you can close.  Short sales are great for investors who are
not looking for their “dream home”. 
Throw out an offer and if they get it, great…if not…try another.  You can obtain a decent deal on a short sale,
but again, that can be achieved with any motivated seller and a buyers agent savvy
in negotiations.  If you are looking for buyer’s
agent, contact Paula Smith ReMax First St George.  Want to see all MLS listed short sales in St George for sale?  Visit:  http://www.stgeorgeutproperty.com/StGeorge_Short_Sale_Property.php  This page will show you homes listed by ReMax St George, as well as all other brokerages and agents in town.  
 ]]> </description>
            <pubDate>Wed, 18 Apr 2012 11:00:17 -0500</pubDate>
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            <guid>http://www.stgeorgeutproperty.com/blog/spring-2012-st-george-real-estate-statistics.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/spring-2012-st-george-real-estate-statistics.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>Spring 2012 St George Real Estate Statistics</title>
            <description> <![CDATA[ 
Welcome SPRING! 
Things are warming up, the tulips are in bloom, and once again it's time
to take a look at how things are shaping up in the St George Utah real estate
market.  This real estate statistics blog
will focus on the Greater St George area as well as some attention on the Sun
River St George real estate market.  This will include homes listed by ReMax First St George as well as all other local brokerages.  For
those of you keeping an eye on Sun River, I think you'll find this report
interesting.  I'll be including a link to
all recently sold SunRiver homes that have closed since January.  This will be beneficial for those who may
already have their Sun River home listed or those who are considering listing
your Sun River home, to gain perspective on exactly what is selling. 


Homes That Have Sold in St George


Since January 1, 2012 there have been 571 YTD homes that
have SOLD in the Greater St. George area. 
As a comparison for this same period last year, we sold 605 homes.  Of the 571 sold this year, 191 were of
distressed status (short sale or foreclosure) this means that 33% of the homes
sold were of distressed status.  Back to the
comparison for the same time last year there were 254 distressed sales (so of
the 605 sold last year 41.9% were of distressed status).  Another key element and a necessary ingredient
for market stabilization is the number of homes on the inventory.  Below is a multi-year snap shot illustrating
our favorable conditions.  





You can see that the number of active listings continues to
be on the decline and the months in inventory is on the lower side of the scale
as well.  Making our way through the
inventory will pave the way for the laws of supply and demand to kick in,
allowing stabilization and potentially appreciation.  This should not be confused with an expected
overnight boom, I believe those days to be over.  The process will be slow and gradual and of
course other elements in our world can easily upset this very fragile and volatile
market, and can completely change at any moment.  The optimism comes from the fact that we have
had several months of good (stable) sales, reduced inventory, and we are making
our way through the distressed inventory.


SUN RIVER ST GEORGE REAL ESTATE


Here is the latest on SunRiver St George.  As of today, there are currently 74 ACTIVE
homes for sale in Sunriver.  Of  these 74, there are 7 of distressed
status.  This is actually an all time
high (at least as far as I've been tracking, which is a few years).  Most of these distressed sales are Short
Sales in Sun River, so there is a possibility they can become
foreclosures.  YTD there have been 20
homes sold in Sun River.  Want to see
what homes have sold in Sunriver?  Send me an email and I'll forward the link.  Currently there are 10 homes pending. 


It seems that the
homes that are selling at the moment, are view homes (homes that back to open
space and offer a view) or homes in the lower price point (below
$200,000).  Although the number of
distressed homes is up in Sun River, it should also be considered that the size
of this community is of around 1500 homes--so in comparison to St George
proper, the number is distressed homes is practically non-existent.  It will be interesting to continue to monitor
however, and determine if the trend will continue.  This can force prices in a downward trend for
Sunriver (having to compete with distressed sales) and they have had the luxury
of maintaining a higher price point in comparison with surrounding areas
outside of Sunriver.  While the prices
have dropped within Sun River, the price per square foot has always been higher
than that of comparable homes outside of the community.


Thinking of listing your Sun River home?  Give me a call for a free market
evaluation.  Thinking of purchasing a
home in Sun River?  I've got a couple of
GREAT listings--both are open floor plans offering the desirable 2 bedroom plus
a den.  One has a 3 car garage and the
other has a 2 1/2 car garage with a casita. 
Check them out here:  SunRiver Homes For Sale


Thank you for taking the time to read these types of reports.  If you would like a more personalized report, or if you have a market question--please contact Paula Smith.  If you are thinking of buying or selling in the St George area, I would appreciate the opportunity of be of assistance.  Thank you, have a wonderful day.
 ]]> </description>
            <pubDate>Tue, 10 Apr 2012 11:04:35 -0500</pubDate>
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            <guid>http://www.stgeorgeutproperty.com/blog/st-george-utah-real-estate-market-absorption-and-statistics.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/st-george-utah-real-estate-market-absorption-and-statistics.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>St George Utah Real Estate Market Absorption and Statistics</title>
            <description> <![CDATA[ 
Here is a St. George Utah real estate market snap shot illustrating market absorption for residential property in St. George for May 2011 and a year to date analysis as well.





Our St. George market is changing.  While it's accurate to state that we have improved, noting that inventory is down and sales are up, it's to soon to determine if we have truly hit bottom and we are now in an upward trend, or if we are simply having a few great months fueled by low interest rates and rock bottom pricing.


May statistics showed (St. George Residential) a total of 1206 active, of which 239 were new listings, 142 sold listings, and 187 went pending.  Just to focus on the last two numbers, it's interesting to point out that a total of 329 homes sold/went pending and only 239 homes are new listings.   The widening of this gap is crucial for true stability and recovery.


Noting the same period last year (May 2010) there was a total of 1385 active, of which 216 new listings, 145 sold listings, and 115 went pending, notice here the gap being smaller.


For the St George Real Estate Market Percentage Seekers: 


2011:  A total of 1206 active and 329 homes sold/went pending= 27% homes sold (closed or got an offer)


2010:  A total of 1385 active and 260 home sold/went pending= 18% homes sold (closed or got an offer)


Again, a nice illustration of a market trending in an upward pattern.  Here's where things get ugly, specifically for sellers:


May 2009  MEDIAN SALE price:  $208,000


May 2010 MEDIAN SALE price:  $169,000


May 2011 MEDIAN SALE price:  $150,000


I've been noting an average yearly decline of about 12-15% per year, the numbers above follow a similar pattern.


What's the prediction for the St George Real Estate Market?


Ahhhh, my favorite question.  If only I knew for sure.  So here is my conclusion and opinion:  I can see that we are really burning through our inventory at a fast pace.  While home prices continue to decline, the "pick of the litter" homes are few and far between.  It's difficult to find what most buyers want:  a larger home, newer, $250,000 or less, and not in need of major repair.  When these types of homes come on the market at a great price--there are multiple offers sometimes within HOURS.  So buyers are forced to pick though the inventory that's left, and the only way buyers are willing to offer, is when the home comes with a nice price tag (unfortunately adding to the decline of prices).  So long as we continue to burn though this inventory, supply and demand will kick in following historical trends of elevated prices.  What could be lurking in the shadows however, may be a surplus of "shadow inventory" the banks have not yet released on the market (or have not yet foreclosed on).   I stand by what I've been saying for months:  so long as you plan to buy and STAY for a few years, you'll probably make out just fine.  If you think you may buy then sell in the short term, you may in fact end up selling "short". 


Should I sell my St George Home Now, or Wait for Market Improvement?


I do NOT believe that sellers should cling to the above opinion and hold off selling in hopes of achieving a higher price.  We are STILL in a downward trend, and will likely continue through the year mimicking patterns of the prior 3 years (12% per year for 3 years is a 36% decline).  So while stabilization is potentially on the horizon, I believe we will experience that stability for a few months before a GRADUAL upward trends begin.  So essentially, it could take another 12-18 months just to get back to where we are TODAY.  If you're not happy with the price your home will get today, then my opinion is you'd better plan to stay for quite some time.  If you need to move (and sell) within the next 12 months, then I suggest taking the hit now.  Hire an agent who will sell your home, not just list it.  That's another topic! 


If you are a home seller or buyer, I'd love to hear your questions or opinions!  Comment below and tell me what you see.  View all homes for sale in St George and Washington County:  St George Utah Real Estate
 ]]> </description>
            <pubDate>Sun, 05 Jun 2011 10:43:35 -0500</pubDate>
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            <guid>http://www.stgeorgeutproperty.com/blog/the-down-payment-saves-money.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/the-down-payment-saves-money.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>The Down Payment Saves Money</title>
            <description> <![CDATA[ 
Are you considering a home purchase in St George, Utah?  Here is some useful information regarding your down payment.  A down payment is the amount of money that a buyer puts down on the home they are purchasing. That is simple enough to understand.  However, the importance of a down payment goes beyond just that explanation.


Simply put, as an example, if a house costs $200,000 and the buyer puts down 10 percent, or $20,000 toward the purchase, they will need to be approved for a mortgage of $180,000.  The down payment basically lessens how much of a mortgage you need to take out.  This may be the difference between qualifying for a mortgage or not.


However, the benefits of making a large down payment are much more far reaching than simply a smaller mortgage.  As the buyer pays month after month, year after year, on that mortgage, the $20,000 down payment translates to a lot more money because it means less money in interest is being paid out on that mortgage. Interest does you, the home buyer, very little good.  Interest paid is just money out of your pocket with no return.


Down Payment Required for St George Home Purchase


That example doesn't apply to many traditional conventional loans which require a 20 percent down payment. Taking that into account, your $200,000 home with this larger down payment of $40,000 would mean a $160,000 mortgage.  At a 5 percent interest rate on a 15 year mortgage, that translates to about a $7,000 savings in interest alone.  Consider you'll also be paying about $100 less on a monthly payment basis, and your big down payment will soon pay for itself.  In other words, the bigger the down payment, the better off the home buyer will be years down the road.


Usually home buyers who already own a home have equity in the current home to use as a down payment for a new home. So, these second time home buyers utilize conventional loan products tailored to owners with equity.  Some of these loans may only require a 5 to 10 percent down payment.  However, as you can see, it is to the home buyer's best interest to bump that up whenever possible.


St George Utah First Time Buyer


Of course, many St. George Utah first time home buyers are young people who may not have had the time to save up such a large down payment.  For these home buyers, there are loan products available that are more conducive to a smaller down payment.  These unconventional loan products include well known names such as the FHA or VA loans.  Many of these loans have down payments as low as 3.5 percent.


There are also community and state programs that make it their business to sell the idea of home ownership as a way to add value to the region.  These loan programs make it easier for a first time home buyer to come up with a down payment.  Improving the value of property throughout the community is the strategy behind these unconventional loan programs.  However, even these programs better serve the home buyer who has a larger pot of their own money to put down.


St George Utah Buyers Agent


Step one in a home search should always be to talk to a loan officer about all your options regarding a required down payment, then choose the program that is best for you.  Your ultimate goal is to save the most money when the mortgage comes to a close.  Work out the figures and you'll agree the bigger the down payment you can afford, the more you'll have in your pocket when you burn those mortgage papers.  Your next step will be to work with a trusted buyers agent who can assist you with evaluating properties and offer objective opinions suited to your specific criteria.  Paula Smith is a St George Utah Buyers Agent, contact me today to begin your St George real estate search!  You can find all St George MLS listed property on my website:  St George Utah Real Estate
 ]]> </description>
            <pubDate>Sun, 15 May 2011 08:18:07 -0500</pubDate>
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            <guid>http://www.stgeorgeutproperty.com/blog/st-george-real-estate-market-conditions-recap.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/st-george-real-estate-market-conditions-recap.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>St George Real Estate Market Conditions Recap</title>
            <description> <![CDATA[ 
How is the real estate market in St George?  Is there still a lot of foreclosure activity
in St George?  Do you think the market
has stabilized in Saint George?  Has
there been any improvement for the real estate market?  What do you think will happen in the next 1-3
years in St. George real estate? 


These are my “daily questions” from most St George Utah real
estate buyers and sellers.  I’ll try to
address the current market conditions and offer my opinion for that last question
too.


It’s important to note that for the third straight month,
Notice of Defaults (NOD) is down.  NOD’s
are sent out “pre-foreclosure”.  It’s
when the homeowners are behind in their payments and it is the first step the
bank takes to start the foreclosure proceedings.  Not all NOD’s will become actual foreclosures,
however many will.  It’s also interesting
to note that we are also down in comparison with the past TWO years!  This could be a sign of stabilization.  Actual foreclosures for the first three
months is comparable in numbers to last year, here are the total actual numbers
in Washington County:  





Let’s take a look at homes that have sold in the Greater St
George area as well as the SunRiver market conditions.  March 1, 2011 to April 28, 2011 (Greater St.
George, single family homes) there were a total of 298 sold as compared to 346
for the same period in 2010.  Of the 298
sold home, 127 were of distressed status (short sale or foreclosure) which
means 42% of homes sold were distressed property as compared to 46% for the
same period in 2010.  SunRiver had a
total of 15 homes sold during this period compared with 19 sold same period
last year.  Of the 15 homes sold only ONE
was of distressed status.  This is
typical for Sunriver, having few if any, distressed sales.  By the way, I’ve got a new Sunriver listing
(shameless plug) please check it out here: http://www.stgeorgeutproperty.com/listing/cms/15/



Currently, there are 1654 homes ACTIVE in Greater St. George
and 254 have gone under contract (pending) since March 1st.   Below are a few graphs that will break down
the statistics by price range for those of you specific number chasers.   My opinion is that the market seems to be
improving a bit.  It will take a few
months of monitoring to determine if this is just a mild “peak” before an
impending “low” or if in fact we are on the road to recovery.  If the home is priced well, and in decent condition,
we are getting multiple offers in a matter of days—sometimes HOURS.  


If you are a buyer who likes to “think before
you act” then you will find yourself thinking about an awful lot of homes!  You must act quickly if you find a home you
like.  If you are not already working
with a buyer’s agent, consider doing so. 
You will realize that as a buyer, you are protected with our Purchase
Contract and you will have plenty of time to be sure the home you acted so
quickly on, is (or is not) the perfect home. 
Contact Paula Smith if you are interested in Buyer representation.  If you have a home you’d like me to list and
include in one of my shameless plugs—give me a call!



 ]]> </description>
            <pubDate>Thu, 28 Apr 2011 10:45:00 -0500</pubDate>
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            <guid>http://www.stgeorgeutproperty.com/blog/understanding-what-closing-costs-mean-to-the-home-buyer.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/understanding-what-closing-costs-mean-to-the-home-buyer.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>Understanding What Closing Costs Mean To The Home Buyer</title>
            <description> <![CDATA[ 
Anyone considering buying a home in St George will need to
understand closing costs.  Closing costs
are often overlooked, it is important that the buyer understand all of the
costs involved in purchasing a home in St George or Hurricane areas.  These costs go beyond the purchase
price.  Inspections, lender fees,
appraisals, surveys, and other due diligence requirements.... the terminology
used in real estate can be extremely confusing for first time home buyers and
to those who may not have purchased in many years.  What's more, realizing who pays for these
things can be even harder to figure out.


What Are Closing Costs?


Real estate agents, title company officers, and mortgage
providers deal with real estate transactions on a daily basis, so they
understand this language.  When it comes
to what is known as the 'closing costs' it becomes even harder to understand
for the average home buyer.  Because closing
costs can be, and often are, negotiated between buyer and seller, there are no
clear-cut answers, and different states often have different guidelines.  Let's start by taking a look at the closing
costs that can appear in your closing document:




Upfront, prepaid, interest points


Appraisal costs


Title transfer costs


Realtor fees 


Loan origination fees


Property taxes


Homeowner’s insurance


HOA transfer fees/dues




The above examples of closing costs are simply the
extenuating costs of purchasing a home. 
But, they can't just appear out of nowhere when it comes time to write
the check.  That's where the 'HUD' comes
in.


What Is a HUD Statement?


All closing costs must be disclosed on a form called the
HUD-1 Settlement Statement, which offers a breakdown (line by line) of each
cost.  The HUD-1 must be signed by all
parties in the transaction before it is legally considered complete.  The loan officer for the buyer and the buyer’s
agent will review the HUD-1 with the buyer so that there are no surprises when
it comes to signing it at the closing table.


Included in the HUD-1 Settlement Statement are also any
credits due to the buyer, such as the down payment amount, tax credit from the
seller (for the time the buyer did NOT occupy the property), buyer closing
costs that the seller has negotiated to pay, as well as any money held in
escrow on behalf of the buyer, such as the earnest money deposit. 


This is a long, long list of money in and money out.  Many of the terms may be confusing to you,
the buyer.  Your agent should explain, in
detail, each and every item and provide supporting documentation to help you
understand.  A good realtor and loan
officer will provide a true copy of the estimated HUD-1 prior to your
closing.  You may even want to obtain a
blank HUD-1 form to read through just so you are prepared to ask questions
before the figures get filled in.


What Is A Due Diligence Period? 


In St George, home buyers are given a “Due Diligence” period
for which they are allowed to perform any test to the property in which they
have an accepted offer.  These tests will
usually start with a Home Inspection (done by a professional home
inspector).  The inspector may recommend
further testing by other professionals should they discover an issue (such as a
leak in the roof).  Larger parcels of
land may require a survey to determine the exact property line.  All due diligence tests paid for by the
buyer.  Should a problem be discovered,
the agent may then step in to renegotiate the deal asking for credits or repairs.  Of course, the seller is NOT obligated to
correct anything; however, the buyer is not obligated to purchase the home
either.   This protection period was
created for Utah home buyers through a pre-determined period, allowing them to
research the property to their satisfaction with the ability to cancel the
contract with no risk of losing their earnest money. 


Closing costs are often said by home buyers to be the most
confusing part of the entire home buying process; even more confusing than
inspections, offers, and contracts. 
These costs deserve individual attention from both you and your buyer's
agent.  Be sure to insist on being fully
informed as to the detail of each cost. 
After all, you are footing the bill for this large investment of a home
and you deserve to know everything that involves your money.


Paula Smith Re/Max First St George, Buyers Agent Specialist


If you are considering purchasing a new home in St George or
surrounding area and you are not yet committed to a Buyer’s Agent Specialist,
consider contacting Paula Smith.  Paula
Smith of Re/Max First in St George is a Buyer’s Agent Specialist.  Find all MLS listed property at www.StGeorgeUTproperty.com and
allow Paula Smith to negotiate the best possible deal on your behalf.
 ]]> </description>
            <pubDate>Wed, 30 Mar 2011 23:10:18 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.stgeorgeutproperty.com/blog/discover-the-benefits-of-working-with-a-buyers-agent.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/discover-the-benefits-of-working-with-a-buyers-agent.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>Discover The Benefits of Working with a Buyer’s Agent</title>
            <description> <![CDATA[ 
For most home buyers in St George Utah, the purchase of a
home is the single most expensive and complicated transaction a person will
ever experience.  In addition, people
typically only have the experience one, two, or three times during a lifetime
so they never become accustomed to the process. 
The requirements for a real estate transaction constantly change over
the years, because of this, there are many benefits of working with a qualified buyer’s
agent who can successfully guide, advise, and navigate the path to home
ownership. 


A Buyers Agent Deals With Multiple Transactions Every Month


A buyer’s agent utilizes their knowledge of the real estate
market to help their client acquire their home. 
By using years of first-hand experience in the home buying trenches, the
buyer’s agent offers advice on fair market value, how to best negotiate all the
terms, and how to complete all of the necessary documentation.  This experience is extremely valuable given
all the possible variables in real estate and for a typical home buyer; this is
experience that is impossible to gain in just a couple personal transactions.


Problems Arise During a Transaction, Will You Know How To Solve The Problem?


There are literally hundreds if not thousands of possible situations
or pitfalls within a real estate transaction which must be navigated.  An experienced buyer's agent will be able to
walk you through episodes that just might include the following:




The seller did not make the agreed upon repairs.


The seller is out of town and cannot be reached
and there is a seller required repair the lender is requesting.


There is a heavy rain and there is water in the
basement the day before closing.


The buyer makes a large purchase prior to
closing and no longer qualifies for the mortgage.


There are multiple out-of-town owners on the
deed and they must all sign closing paperwork.


The home is offered as a short sale and it takes
several months to be approved.


The home is a foreclosure and the bank is
difficult to reach.


Termites are found.


The seller’s agent is not communicating well,
causing information to lapse or not be conveyed to the seller.


The buyer moves in and discovers damage that was
not disclosed.


They buyer’s funding is delayed so the closing
and possession dates must be adjusted.




This of course is only a short list of examples where issues
can arise.  The role of the buyer’s agent
is to manage the transaction, providing solutions to each of the problems and
minimizing stress for the buyer by keeping their client informed. The benefit
of working with a buyer’s agent is to have a professional facilitate the
purchase of one’s largest asset.   Most
importantly, the buyer’s agent is offering representation to the buyer,
similarly to the way the listing agent is representing the seller.  


There Are Many People Involved Within A Transaction, Are You Connected?


During a real estate transaction, there are many different
service providers that a buyer must contend with such as:  the mortgage company, the seller’s agent, one
or more title companies, the appraiser, the inspection companies, and various
repairmen.  If any one of these providers
drops the ball, the closing may be delayed or even canceled.  A good buyer’s agent will have systems in
place to manage and track the progress of each of step of the purchase, all the
while keeping their client, you, informed.


Interview several buyers’ agents and choose the one who
gives you a concise, well-laid out plan from start to finish.  A good buyer's agent will have your best
interests at heart to make your home buying experience a success.


Paula Smith Is Your St George Utah Buyers Agent


ReMax First Paula Smith is a St George Utah Buyers Agent; I represent
buyers throughout Washington County.   My goal is to achieve the best possible price
with the least amount of stress to the Client.  Allow Paula Smith to represent you as your
Buyers Agent Specialist.  If you would
like to see all MLS listed property, visit my St George MLS page.  Also, you can sign up to receive Property
Alerts which will send you an email with all homes matching your criteria.  Contact Paula Smith if you are interested in
receiving these reports. 
 ]]> </description>
            <pubDate>Thu, 24 Mar 2011 22:39:08 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.stgeorgeutproperty.com/blog/the-short-sale-process-pros-and-cons.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/the-short-sale-process-pros-and-cons.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>The Short Sale Process Pro's and Con's</title>
            <description> <![CDATA[ 
A question that is being asked frequently in the St George real estate
market is, “What is a short sale?”  Short
sales used to be an infrequent type of real estate transaction, but with
current economic conditions here in St. George, more and more homeowners are
opting for this type of sale, and banks have begun to offer incentives to
sellers to engage in a short sale.


A short sale occurs when a homeowner elects to sell their home for less
than what is owed to the mortgage holder. There are pro’s and con’s for both
the homeowner and the bank in a short sale, let's take a look from both
perspectives.


A Short Sale Perspective From The Bank


There are several reasons why a mortgage holder, or bank, would agree
to accept less than what is owed.  A bank
may benefit from a short sale for one or more of the following reasons: 




is more cost effective for the bank (or banks)
to accept less because it would cost more to foreclose


banks do not want to own property, holding costs
and liability can become expensive


banks are in the business of making money, not
selling real estate




In a St. George short sale transaction, the bank (or banks) involved
must approve any offer that is received by the homeowner.  The primary bank, the one that holds the
first mortgage, will review the offer received to determine whether enough
money will be made in order to make it worth agreeing to the short sale versus
moving forward with foreclosure procedures. 
Each situation is different and no two properties will be the same.  The process may take a considerable amount of
time as each bank has a lot of “red tape” the offer must go through.


A Short Sale Perspective From The Homeowner


There are several reasons a homeowner may opt for a short sale on their
home.  A homeowner may benefit from a
short sale for one or more of the following reasons: 




Their credit score suffers less from a short
sale than a foreclosure


The owner can remain in the home until an offer
comes in that the bank accepts


Their payments may be suspended depending on the
bank's policy




To initiate a short sale, the homeowner must first contact their bank
to discuss the option and learn the process the bank requires.  Recently, financial institutions have been
reaching out to homeowners and actually pre-screening them to qualify them for
a more streamlined short sale.  Some
banks have even taken a "cash for keys" type of approach and offering
monetary compensation to sellers if they will agree to a short sale.  General requirements are to provide a
hardship letter outlining why they homeowner can no longer keep up with monthly
mortgage payments, as well as providing earningsdocumentation.  This should be
done immediately, before the bank begins foreclosure proceedings if there have
already been late payments.  The bank
will inform the homeowner whether or not they “may” accept a short sale, which
will be dependent on any offers that are received.  Often, the bank will require an offer to be
received before moving ahead with the process. 
This can be cumbersome as a listing agent will often price the home extremely
"attractively" in an effort to generate multiple offers to move the
process forward.  This price may not be
anywhere close to what the bank will actually accept.


The "Con" In Doing A Short Sale  


There are a few downsides to short sales.  For the bank, they forgive a portion of the
mortgage in exchange for receiving some of the payment in full (they lose money).  For the homeowner, it means possible credit
history hits, as well as being a very lengthy, stressful process.


In the end, a short sale can be a beneficial alternative for distressed
homeowners and banks alike.  It provides
the homeowner with a way to get out from under a mortgage that they can no
longer support, and it provides the bank with an alternative to a costly
foreclosure.  It is a good idea for
homeowners to consult a real estate professional as well as seek advice from a
tax specialist to learn if there are tax consequences to a short sale.  The downside to a buyer is the process can
become extremely lengthy and the short sale may never be approved by the
lender. This creates frustration for all parties involved.


If you are at risk for losing your home, consider all of your options.  Contact Paula Smith for additonal Short Sale informtion.  To find all MLS listed Short Sale homes in St George or surrounding areas, visit my "St George Short Sales" page.
 ]]> </description>
            <pubDate>Tue, 22 Mar 2011 21:14:50 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.stgeorgeutproperty.com/blog/st-george-home-selling-stategies.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/st-george-home-selling-stategies.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>St George Home Selling Stategies</title>
            <description> <![CDATA[ 
A St. George Utah Buyer's Market Demands Aggressive Selling
Strategies – Prepare Yourself And Your Home


Selling a house in our extremely competitive St George Utah
real estate market is possible, especially if a seller is prepared to take
action to help facilitate attracting a buyer. 
In a housing market where 'for sale' signs are springing up like
mushrooms after a downpour, it's not enough to hire a REALTOR who only puts a
sign in the yard, enters the information about the home on the local multiple
listing service (MLS), and waits for a potential buyer to find the home.


In a buyer's market, it is imperative that sellers be more
cognizant of the choices and actions they take prior to putting the home on the
market.  In some instances, it may even
be wiser to keep the home off the market until they are fully prepared to offer
it for sale.  Potential buyers may not
reappear to see your freshly painted entry. 
How should you prepare yourself for this competitive market?  Here is a brief rundown of a must-do list to
get your St George home noticed and sold:


The Right Agent - Rushing into choosing a St George REALTOR
could be your first mistake in a competitive market. You must begin by
interviewing several St. George or Hurricane area agents in order to choose the
best REALTOR available for your individual circumstance, especially in such a
competitive housing market.  Begin by
asking some standard questions to find out what marketing plans are offered,
what internet presence can be expected, a list of past clients as references,
and what type of administrative and communication systems are in place. - The
REALTOR who understands the market, who is not interested in appeasing your
over-priced value on your house (an agent should tell you what your home is
worth not ask you what you would like to receive for it) and who can explain
what it means to sell a house in a buyer's market such as the current St George
conditions, will be the agent for you. Choose the agent that gives you the
straight talk while keeping a good rapport with you, and you will have a
successful relationship and sale.


Repairs - It's time to prepare the home for sale.  Aggressive sellers will hire a home
inspection company to conduct what is termed a “pre-inspection” of the
house.  This pre-inspection will identify
potential defects in the home that will eventually show up through a buyer’s
inspection, possibly terminating any offers on the table.  By discovering defects and making the
corrections well before a buyer has an opportunity to back out, the home will
get a second and third showing, resulting in more offers.  When a pre-inspection is conducted, it is
best to inform potential buyers of it by leaving a copy of the inspection
report at the home as well as have it posted on the multiple listing
service.  Don't forget to complete those
little repairs, too.  It's not just about
whether the furnace works; buyers notice things like broken light switches and
squeaky doors.  It may seem trivial, but
each one starts a fingernails-on-the-blackboard response in a buyer which can
result in losing a follow-up showing.


Curb Appeal - In addition to making repairs to the actual
home, taking a look at the landscaping and entry is another key to selling a
home in our current St. George buyer’s market. 
Landscaping and your front door has a tremendous impact on the first
impression a buyer will get when they first see the home, it sets the tone for
what they will expect to see once the door is open.  You may be thinking that buyers are fickle,
and they may very well be.  But,
regardless of whether you think something like a few flowers and a fresh coat
of paint is trivial, your buyer may not. 
Having a potential buyer come back for a second look because they felt
welcomed by the first impression they got at your front step can make the difference
between selling and sold. Photos of your home will be posted on the internet,
printed on flyers, and used in other publications if you have an aggressive
agent.  Simple things like potted plants,
trimmed shrubbery, and neat entries make a difference.  Photographs aren't very forgiving.  You can't make up for that peeling paint or
pile of dead leaves with a clever description of your home or even cinnamon
rolls baking in the oven.  Pictures are
not forgiving, so be sure your landscaping and entry are meticulous, even if
you have to postpone your listing until you get it done.


Staging - Take a look at your home from a buyer's
perspective.  I know this is hard to do
because you have an emotional attachment to your home.  But, consider coming into your home for the
first time as a new owner.  You may have
furniture that perfectly matches your purple walls, but not everyone does.  You may have the perfect kids' rooms for your
toddlers, but not everyone has toddlers. 
Invest in neutral tone paint and cover up all those lovely colors.  You also need to take a look at replacing
carpeting, putting away all your knick-knacks, rearranging your furniture, and
even storing most of your items to clear the way for a buyer's imagination.   Many sellers benefit from hiring a home
staging professional.  These experts are
trained to see the potential, and for understanding how difficult it is to
de-personalize your home while it's on the market.  A home staging expert is trained to see homes
through the buyer’s eye and will present the home so that the buyer actually
looks at the qualities and features of the home, rather than be distracted by
the stuff the owner either loves or has become immune to.


When selling a St George home in a buyer’s market that is
saturated with a large inventory of homes for sale and competing with the
foreclosure current market, it is imperative sellers take proactive steps prior
to putting a for sale sign in the yard. 
Interview and hire the best REALTOR, review and repair any defects of the
home, and properly stage the home so you will maximize the interest each time
you show your home.  Paula Smith of
RE/MAX First Realty St. George offers experience and reputation backed by
RE/MAX which is one of the most recognized names in the industry.  I take a hands-on approach to the St George
Utah real estate market and stay on top of our market conditions.  If you would like to sell your St. George or
Hurricane home, contact Paula Smith St George Real Estate Listing Specialist today. 
If you would like to see all MLS listed St George Utah Real Estate for
sale, visit my website.
 ]]> </description>
            <pubDate>Sat, 12 Mar 2011 08:24:15 -0600</pubDate>
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