In this edition of the Utah Real Estate Podcast, we talked about:
- Getting ahead of your real estate competition
- Fewer homes for sale right now
- Hard working real estate agents
- Only serious buyers are looking
- Mortgage requirements have changed
- Short sales are starting to come to an end
- Why do short sales take so long?
Press the ‘PLAY’ button to listen to Utah Real Estate #49: Serious Buyers Are Looking
YOUR CALL TO ACTION
If you’re looking to buy or sell a house in Utah, please call or text me (Patrick Wiscombe) at (801) 874-7717.
COOL VOICE GUY: Information you need, the Podcasts you love. This is the PatrickWiscombe.com Podcast network. Its Real Estate news you can use. This is the Utah Real Estate Podcast, giving you free expert advice and tips, if you’re looking to buy or sell a house. And now, here are your hosts, Ned Chidester and Patrick Wiscombe.
SPONSOR: The Utah Real Estate Podcast is brought to you by Weichert Realtors at the Rockies. If you are looking to buy or sell a house in the state of Utah, please call or text Patrick Wiscombe at 801-874-7717.
PATRICK WISCOMBE: It’s the Utah Real Estate Podcast! My name is Patrick Wiscombe. Thank you for tuning us in, and taking us along wherever and however you’re accessing the Podcast. Coming up on today’s edition of the Utah Real Estate Podcast we’re going to talk about getting ahead of the competition. What?! What does that mean? Well, we’re going to talk about it. Ned Chidester, one of the owners at Weichert Realtors at the Rockies, Real Estate agent, all around good dude joins me for the Podcast. Hello!
NED CHIDESTER: How you doin’ brother!
PATRICK: Yesterday we talked about home prices starting to stabilize, and we’re kind of on this kick of 5 reasons why you should sell your house now if you’re even considering it. Yesterday I mentioned we’re talking about how home prices are starting to stabilize. But another part of those bullet points to this conversation is getting ahead of the competition. What does that mean?
NED: According to the Utah Association of Realtors, absorption rates, which are the number of homes that are on the market versus the number of homes that are selling, have improved by almost 33%.
NED: We’re down to about a 5, a little over a 5 month supply. So this means there are fewer homes for sale on the market, creating a greater demand. Historically in our marketplace, spring time is typically when homes come on the market. So the idea of getting ahead of your competition is the stats are proving that homes are selling. We have a shorter supply on the market, but the market is going to increase as far as number of homes as we get deeper into spring. As you’re well aware, if you don’t like the weather in Utah, wait a day. That’s been the case this spring. But I think as the weather turns, and we warm up, there’s going to be more homes. So the idea would be to get your home on the market if you’re at all thinking about it and beat out the competition.
PATRICK: There’s a stigma out there in the market place. We might as well just talk about it for a minute, that Real Estate agents really don’t do a lot; and that was before I started doing Real Estate. I can now, genuinely say that was kind of the stigma I had as well. Being on this side of the fence now, I could not disagree more. But, it also depends on the person.
NED: I believe one of the things we’ve done to kind of help combat that a little bit is, we have an unconditional guarantee, as you’re aware. If you’re not happy with what we’re doing, if you decide to trust us to list and sell your home, and if you’re not happy with our efforts, or with what the market’s doing, or whatever; at any point you can cancel our agreement, and take your home off the market. You don’t owe us anything.
PATRICK: Is there a charge for that? I don’t think there is.
NED: No, no charge. We’ve tried to really put our feet to the fire, and help prove our worth.
PATRICK: I think that’s a unique angle. Because when most people get into this situation they go, “well, I just don’t want to commit, I don’t want to have a ninety day, or six month agreement. This guy’s a total mouth breather”.
PATRICK: You know I don’t blame people for wanting to do that. But, the way things are going right now, depending on the price of your house; and I mentioned yesterday that prices are somewhere between $275,00 and less seems to be kind of the sweet spot, and you’re going to get offers on your house. I guess it just depends on the buyer. If they want a fixer upper project you’ve got those. If they want a house that’s in pristine condition you’ve got those. It’s a good time to get out in front of everyone.
PATRICK: It’s been my experience that only serious buyers are out. These aren’t the people who are only thinking about maybe selling in two years, and “we’ve got a grand plan”. No, the people that are out now, at least from my experience, are that “we’re serious about moving, let’s get going!”
NED: Yeah, the idea, and we refer to people that aren’t serious as either a.) Looky-Loos, or b.) Tire-Kickers; and we have fewer of those in this market. You know with mortgage qualifications tightening up, only those purchasers’ who are serious about buying a home will be in the market, and that’s proving true.
PATRICK: And serious buyers, meaning back in 2000 when you could go into a mortgage company and say, “Hey I make $8000 a month,” or whatever it is, and they would never verify your income.
NED: Oh yeah!
PATRICK: Yeah those days are over.
NED: Absolutely! That’s true. There are no more stated income loans. There are no more bad loans out there, and it really has become a tighter mortgage market where there are new qualifications. Things have been put in place that is making it harder to get a loan.
PATRICK: Is it better though overall?
NED: I think overall it’s a good move in the right direction to create more of a healthy market. I think that a lot of these loans that were done between 2000 and 2007, where it was made fairly easy to get a loan with stated income, and interest only, and people buying more house than they had really budgeted for; I believe that the sanctions, and things that have been put in place are a lead in the right direction, as far as creating a more healthy market, and going to help eliminate foreclosures in the market.
PATRICK: For the state of Utah, I’m not speaking across the nation, I’m not talking about Florida, I’m not talking about Vegas, I’m not talking about some of the places that are….I still think that there are places with real problems out there. But, for the state of Utah, generally speaking, could you say that short sales are coming to a close? Meaning that the bad loans are gone, and houses are beginning to get sold that were in a short sale situation or foreclosure?
NED: I think that we are headed in that direction Patrick for sure. We’ve seen a decline in notices of default, which are typically the precursor to foreclosure. We’re seeing a decline in the number of auctions that are happening, and we’re seeing signs that we’re moving to a more healthy market I believe.
PATRICK: For the past four years, it seems like the glut of homes that were on the market, short sales, in fact you had people here in Utah that specialized in short sales, and I guess we’ll talk about this tomorrow, but why do, in a sentence or two, why do short sales take so long? And I guess that depends on the bank, but why do they take so long?
NED: You know we really do want to take some time and talk about this. But I’ve been involved in several short sales in my career, several hundred short sales in my career, and part of the problem that we have with a short sale is that every offer that comes in on a short sale property is unique, and if the buyer that is representation of that offer backs out, based on how long things are taking, a new offer put in place actually in a lot of cases, starts the process over.
PATRICK: Oh, so it hits the reset button.
NED: Absolutely, not completely but, it does push us a back a little bit, especially if we had an approved price. So, it becomes more important in this market to make sure that you’ve got an approved buyer that’s willing to wait the time, and seize the value in the home, and isn’t going to back out just before we get a bank approved price.
PATRICK: All right lets wrap up today’s edition of the Utah Real Estate Podcast. If you’ve even thought about selling your house, find out how much it’s going to sell for, no obligation, give us a try, Weichert Realtors at the Rockies 801-756-9559. So, for Ned Chidester, I’m Patrick Wiscombe. Thanks for listening. We’ll talk to you tomorrow.
COOL VOICE GUY: Helping you buy or sell a house, this has been the Utah Real Estate Podcast with your host Ned Chidester and Patrick Wiscombe, sponsored by Weichert Realtors at the Rockies.