Monday, January 29, 2018

What Can You Expect From a Home Inspection?


Today, I’ll be going over what you should expect from the home inspection process.

Selling your Salt Lake City home? Get a free home value report
Buying a Salt Lake City home? Search all homes for sale

What should you expect during an inspection? First of all, there are three general types of inspections: a surface inspection, an in-depth inspection, and a professional inspection. A surface inspection is a basic walkthrough of the home. When this kind of inspection is performed, the inspector is looking for anything that might interfere with the property in terms of safety or stability. Things like burn marks, mold, or other physical identifiers of poor condition. Surface inspections are only done about 10% of the time. Frankly, these kinds of inspections miss quite a few things, since they aren’t conducted by a professional home inspector.


A home inspector is going to find something wrong, even if the home is a new construction.


This is why we recommend an in-depth inspection. A home inspector is going to find something wrong even if the home is a new construction. Inspectors, like attorneys, will always find an issue. They have been hired to do so. When buyers and sellers negotiate the issues found in an in-depth home inspection, they will pay the most attention to safety and maintenance issues. It will depend on the individual transaction as to what fixes the buyer asks the seller to make or whether they ask them to make any repairs at all. If the issues that are significant or specific enough, it may be time to hire a specialized professional to take a look. Using the example of a home with electrical problems, you may want to have an additional inspection performed by an electrician. Any repairs that need to be made will typically be done within the due diligence period before closing. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Monday, January 15, 2018

What’s Causing Buyers to Be So Optimistic Right Now?


A lot of buyers now are more prone to buying a home than previously. I have a few thoughts about why that is.

Selling your Salt Lake City home? Get a free home value report
Buying a Salt Lake City home? Search all homes for sale

Why is buyer optimism higher than we’ve ever seen it? Today, I’d like to go over a couple reasons for this mindset.
Fannie Mae recently did a study that demonstrated that a large number of buyers were more prone to and optimistic about buying a home. If you think about inventory from a national level, you’ll get some interesting numbers. We are about 6.5% lower in inventory compared to last year, and yet, we’re about 6.9% higher in appreciation, price, and growth.


Typically, the success of the market is typically tied to economic factors and growth—two areas in which we are doing fantastic.


So with that in mind, what is giving buyers the sense of optimism we’ve seen?
1. Interest rates have remained pretty low over the year. Even though prices are rising, interest rates have gone down and have actually made it more affordable to purchase, despite that change.
2. The demographic of who’s on the market has shifted. When Fannie Mae did the study, they found that the average homeowner’s income was around 125% of someone who was buying. Right now, it’s actually closer to 150%. Millennials who were previously holding off on entering the market are now beginning to look at purchasing homes, as opposed to renting.
3. There has been steady job growth. Because of this growth, the market is starting to look appealing to more people.
If you’re a buyer, know that our market is good, interest rates are fantastic, and inventory is excellent. If you’re a seller, just know that there is a market of people looking to purchase. We expect to see a great market over the next few years as well. The world of real estate can always change, but typically, the success of the market is typically tied to economic factors and growth—two areas in which we are doing fantastic.
If you’re looking to buy a home, we’d be happy to give you free access to our home hunter buyer system found here. If you’re selling, we’re more than willing to give you a free home evaluation. We look forward to talking to you soon.

Tuesday, January 2, 2018

Is the History of Our Market Bound to Repeat Itself?


Our market right now is seeing a lot of growth. But, does this growth point to potential issues on the horizon?

Selling your Salt Lake City home? Get a free home value report
Buying a Salt Lake City home? Search all homes for sale

Is history repeating itself? Right now, some people are worried about the state of our market. People are afraid that the extensive, fast growth we’ve seen over time is going to lead to the market bottoming out. I’ve witnessed some truly heartbreaking transactions in the past. I have even seen sellers weep at the closing table. But, is our market as scary as some think? Well, I look at a large quantity of information pertaining to real estate each and every day. There are so many economic factors that drive our market, and all of these factors are ones I closely examine all the time.


The bottom line is that our current real estate market is still going strong.


It is these same factors, which can cause issues, that can also cause a great deal of growth and opportunity. So if you’re concerned about our market, you may want to consider a few factors. Our market is not the same as it has been in the past. Current interest rates are phenomenal and lenders are being picky—they are making sure that buyers are truly responsible enough to move forward in a transaction. Another factor that is different about today’s market is that we’re seeing much more dynamic job growth these days. People are coming to our city for our jobs, culture, and amenities. The bottom line is that our current real estate market is still going strong. We are definitely in a healthy market. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.