Benjamin Clark - Exclusive BUYER'S AGENT - Certified Negotiation Expert - SLC, UT

Homebuyer Representation, Inc. offers a free consultation to home buyers.

What does it mean to consult an Exclusive Buyer's Agent? A consultation is a one-time meeting to get any of your real estate questions answered and to find out what it would take to buy a home. The meeting can be in person or over the phone.

It doesn't mean that you have to hire the agent to represent you, or even hire an agent at all.

You should come away from the consultation with enough information to answer these questions:

• Does it make sense to buy vs. rent?
• Is what I'm willing to spend enough to buy a house I would be happy to live in?
• Do I have a large enough down payment to buy a home?
  and
• How do I find out if I have enough, or good enough credit to buy a home?

Depending on the answers to these questions, you might be ready to move forward.

Thinking about buying a home in the Salt Lake City, Utah area in 2012?

Call us at (801) 969-8989 or contact us via the link on this page for a free consultation today.

©2012 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM

Salt Lake City, UT - Exclusive Buyer Agents (EBA)

All Rights Reserved

For more information, or if you are relocating to another state, visit GetYourOwnAgent.com

I attended the 2012 Salt Lake Housing Forecast Meeting this morning. The two presenters this year were Eric Belsky, Managing Director of the Joint Center for Housing Studies at Harvard University and James Wood, director of the University of Utah’s Bureau of Economic and Business Research. While Mr. Wood's remarks were pointedly local, Mr. Belsky's report covered the state of the housing market nationally, with concluding remarks to show where Utah stacks up among the states.

The expectations? Cautiously and realistically optimistic. Realistically meaning that while there were no bold statements of certain recovery, the outlook is that things are more likely to get better than worse based on the indicators. A remark made by Mr. Belsky sums it up well: "If someone keeps hitting you in the head and they stop, it feels good." Barring any "unpleasant surprises," Utah is poised pretty well to begin a slow recovery.

While everybody knows that economics primarily deals with supply and demand, there are many factors that influence both suppliers and consumers. This is true in every industry including real estate.

I noted 16 influencers referenced by the economists that play a part in housing decline or improvement:

1. Job Growth (New Jobs)
2. Unemployment Rate
3. Consumer Confidence (Spending)
4. Household Growth (# of households needing independent housing)
5. Home Prices
6. Price to Income Ratio
7. Price to Rent Ratio
8. Household Debt relative to Income
9. Inventory
10. Homes Sold
11. Housing Starts
12. Mortgage Interest Rates
13. Mortgage Availability (Underwriting Rules)
14. Foreclosures and Distressed Properties
15. Underwater Homeowners
16. Buyer Urgency

I'll try and talk about each one briefly.

1. Job Growth

According to Mr. Wood, Utah is adding 30,000 new jobs per month. Utah is #4 in the nation in new job growth. This is positive for the Utah housing market.

2. Unemployment Rate

While not the best in the country, Utah is doing better than many states regarding unemployment. A national problem which hinders a recovery in the housing market is that the unemployment rate for people in their 20s is double that of the unemployment rate for others. This leads to many fewer first time buyers, who traditionally help fuel growth in the housing market.

3. Consumer Confidence (Spending)

Consumer spending is rebounding, but the question remains whether it is sustainable. Disposable income is falling for many Americans.

4. Household Growth (# of households needing independent housing)

Household growth has slowed due to "doubling up" and a slowdown in immigration. It is believed that there are 2.5 million homeowners "doubled up" instead of buying or renting. There are signs of household growth improving, especially in Utah as more people are moving in than are moving out.

5. Home Prices

Home Prices are down in Utah... 25% from the peak! Mr. Wood expects an overall decline of another 3-5% across the state, with some areas doing better and some doing worse. Mr. Belsky noted that home prices grew more than incomes from 2000-2006, but the falling market has corrected both pricing and available units for sale.

6. Price to Income Ratio

Mr. Wood said that the median home price is only 3.5 times of the median income in Utah. While economists would like to see the median home price closer to 3 times the median income to indicate a healthy market, affordability in Utah is pretty good. A buyer with the median income could have afforded to buy 70% of the homes sold last year according to Mr. Wood. Nationally, the median existing home price to per capita income is currently at record lows dating back to 1975 when data started being collected.

7. Price to Rent Ratio

As homeownership costs get closer to the costs of renting, more people will opt for homeownership. It was stated that rents in large apartment properties are on the rise at a rate of about 4%.

8. Household Debt relative to Income

Household debt is falling relative to income, but there is still "a long way to go".

9. Inventory

Inventory is on the decline in most areas of Utah. An average of about 4-6 months supply. That's pretty healthy and better than many states.

10. Homes Sold

Mr. Wood expects a 20% increase in the number of homes sold for 2012 over 2011. This would be an estimated 11,000 homes sold in 2012, down from the "unsustainable peak" of 15,000 homes sold in 2006.

11. Housing Starts

Building permits are up. 1300 new homes were sold in 2011 and it looks like more will be sold in 2012. Builder's unsold inventory is virtually non-existent. (spec homes)

12. Mortgage Interest Rates

Mortgage interest rates are very low. Under 4% for most buyers. I've pointed out before, however, that unless a buyer has a large down payment, increased mortgage insurance premiums erase some of the savings.

13. Mortgage Availability (Underwriting Rules)

Mortgage guidelines have tightened significantly either scaring buyers out of the market or literally shutting them out. Down payment requirements are higher, credit score requirements are higher, applications are being underwritten with more scrutiny. Neither economist expects this to change anytime soon.

14. Foreclosures and Distressed Properties

Utah is still up at the front of the pack in percentage of foreclosures. Delinquencies are slowing... notices of default fell 28% in 2011, but Utah is #5 in the nation with number of mortgage delinquencies. Foreclosed and distressed properties put downward pressure on home prices.

15. Underwater Homeowners

Move-Up buyers create inventory for first time buyers. With 19.7% of owners in Utah underwater, this puts a drag on housing recovery.

16. Buyer Urgency

Only 39% of renters said they were likely to buy in the next 3 years. Still, 70% stated that owning makes more sense than renting and 55% stated that now would be a good time to buy. The issue for most: the timing isn't right, they aren't sure if they would qualify for a mortgage or they don't have the sufficient down payment saved up yet. So long as they have an alternative option, many buyers will keep doubling up or renting until THEY are ready or until they feel like if they don't move soon, the opportunity may pass them by.

If you would like a pdf copy of the Housing Forecast or of Mr. Belsky's presentation, just call or shoot me a message.

Thanks!

• Are you thinking about buying a home in the Salt Lake City, Utah area?
• Do you have excellent credit?
• Do you plan to purchase a $250,000-$750,000 home within 90 days?
• Do you have a good down payment, or are you paying cash for your next home?

If so, you deserve someone on YOUR side of the transaction!

Call us at (801) 969-8989 or contact us via the link on this page for the best in representation for buyers of residential real estate.

©2012 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" TM

Salt Lake City, UT - Exclusive Buyer Agents (EBA)

All Rights Reserved

For more information, or if you are relocating to another state, visit GetYourOwnAgent.com

I have been meaning to draft this document for a while, and finally put it together in response to a conversation I had with a potential client last week.

My commitment to you:

1. I will be your Exclusive Buyer Agent (EBA). Because our company does not take listings or ever take on sellers as clients, we will never ask you to agree to less than 100% representation.

2. We will not "switch teams" or change allegiance mid-transaction. You will start with an EBA and you will end with an EBA.

3. I will ALWAYS take YOUR side in negotiations.

4. I don't have any interests in any mortgage, title or inspection companies. There are no financial incentives for me to steer you to any "in-house" vendors.

5. I specialize in working with buyers. I don't switch hats from sellers to buyers. I am ALWAYS focused on what is best for the BUYER in the transaction.

6. I am a Certified Negotiations Expert (CNE). I stay current on training. In just a few weeks I'm flying to San Antonio, TX to take a full-day course on Advanced Negotiation Techniques for Buyer Agents.

7. I will be your consultant, not a salesperson. Because I list no homes, I have no "inventory" to sell. I have no properties that I'm legally obligated to promote to buyers. An agent or company with listings cannot make this claim.

8. I contract directly with you for my fee. If any other party is offering any compensation to our brokerage, I will credit that toward what you owe. Because I know I will get paid in full, I will not steer to you to homes where there is more compensation being offered to buyer agents and I will not steer you away from homes where less (or no) compensation is being offered.

9. You will not double pay for the service you receive. If you buy a home where less or no compensation is being offered, we will lower our estimate of value accordingly.

10. I will not make more than we contractually agree on. If compensation from another party exceeds the amount we have agreed upon, Homebuyer Representation, Inc. will rebate the difference to you within two weeks of closing.

11. We pass "bonuses" or incentives on to you. If there is a bonus being offered to our brokerage above normal compensation, you can choose to credit that toward your fee or have us pass the bonus on to you in the form of a rebate within two weeks of closing.

12. There is never any chance for me to be influenced by the temptation of receiving a "double commission" or agent "bonus."

13. I will tell you everything I learn about a seller or a property that will help you in negotiations or that could influence your decision to move forward with a transaction or that could change your opinion of the value of the property.

14. I will keep information that could damage YOUR negotiating position confidential.

15. I will use legitimate comparable sales when determining an estimated market value for the home. I will not simply choose the homes that justify the seller's asking price.

16. I may advise you to walk away from negotiations with a seller. Walking away could lead to a better outcome.

17. If it is in your best interest, I will help you take your transaction apart and I will protect your interests while doing so. My goal is to do what is in your best interest... my goal is not "closing the deal."

18. I will show you any available properties you wish to see.

19. I promise full & exclusive representation on any home you wish to buy, not just homes listed by other companies.

20. I will educate and guide you through the process, but all decisions will be yours. I will obey any lawful instructions you give me regarding your transaction.

21. You will always control the price range of homes we consider. I will not try to convince you to raise your price range. If anything, I have been guilty of talking some clients into a lower price range.

22. Although I am not a professional home inspector, I will point out any flaws I see with properties and not just focus on the benefits.

23. I will advise you to talk to neighbors during the due diligence period. If you desire, I will go with you.

24. I will assist in putting you in contact with appropriate professionals to help with your due diligence if desired.

25. I will help you buy with resale in mind. I have shown many thousands of homes to hundreds of buyers. Based on my experience, I will point out to you floor-plan, location and other issues that may negatively impact resale value or the ability to find a buyer down the road.

26. I will try and help you save as much money as possible when you buy so you will make that much more profit when you someday sell.

27. If you wish, I will help you correctly "shop" lenders and evaluate their proposals and offerings. I will prepare an analysis that will show you the total cost of each loan. We typically save our clients 1% of the purchase price (up front) on this analysis alone. Over the life of the loan, clients usually save many times more. Although I will provide a few lenders I believe you should shop, I want you to provide me with some options of your own. This keeps the best lenders honest, knowing they are competing for your business each time we contact them.

Above all, I commit to put your best interest first in your transaction.

Benjamin D. Clark
President & Principal Broker
Homebuyer Representation, Inc.
Salt Lake City, Utah
(801) 969-8989
www.GetYourOwnAgent.com

Certified Negotiation Expert (CNE)
Certified Exclusive Buyer Agent (CEBA)
Accredited Buyer Representative (ABR)
Graduate REALTOR Institute (GRI)
Officer - National Association of Exclusive Buyer Agents
Member - National Association of Exclusive Buyer Agents
Member - Salt Lake Board of REALTORS
Member - Utah Association of REALTORS
Member - National Association of REALTORS
Author - BuyingAHomeInSaltLakeCityUtah.com

"My Commitment to You" ©2012 Homebuyer Representation, Inc.

I'm not trying to scare anybody off, Utah is a great place to live. But you may as well know before you move here that Utah is earthquake country.

I was talking to a potential new client today who is relocating here from the east coast. In conversation I brought up earthquake insurance and the prospect asked: You have earthquakes there?

Well, we don't have too many, but we are one of the 5 Most Dangerous U.S. Earthquake Hot Spots Beyond California. (Wired Magazine)

Image: US Geological Survey

If you want to research the topic, here is a link to the University of Utah Seismograph Station's website where they have some Utah Earthquake FAQs: http://www.seis.utah.edu/qfacts/utfaq.shtml

And here is information from the Utah Geological Survey: http://geology.utah.gov/utahgeo/hazards/eqfault/eqfact.htm

I've lived in the Salt Lake Valley for the past 15 years and I've only felt one or two earthquakes that I can remember and they were very minor. Most people didn't even notice them. But experts say we are due for a "big one" soon.

From 2004 to 2007 the Utah State Capitol underwent a historic restoration and a seismic upgrade whick included the installation of a base isolation system that allows "the building to survive as much as a 7.3 magnitude earthquake." http://en.wikipedia.org/wiki/Utah_State_Capitol

Not many agents would blog about this, but in the interest of full disclosure, if you are moving to Utah, you might as well know.

I'm looking forward to the 2012 Salt Lake Housing Forecast Breakfast on Wednesday, January 18th. Eric Belsky, Director of the Joint Center for Housing Studies at Harvard University will present on the key factors crucial to supporting a housing and economic recovery in Utah and the nation.

James Wood, Director of the University of Utah's Bureau of Economic and Business Research will also be presenting the 2012 Salt Lake housing forecast.

In addition to being informative, these forecast meetings are really fun to go to. Given that the presentation is given to 500 Realtors, you know the "spin" on the data will always be: "And that's why NOW is the perfect time to buy or sell your house." I'm chuckling already just thinking about it.

The truth about whether or not to buy or sell a home NOW requires an assessment of the individuals' situation and options. Still, for those who are thinking about buying or selling, knowing the current economic trends and how they potentially affect the housing market in the near future can help one decide whether to take action now or wait another 4-6 months.

The good news I'm expecting to hear is that Salt Lake leads most of the nation in having those "crucial" factors that support housing and economic recovery.

I'll report back after the event. In the meantime, if you have any questions about buying a home in Salt Lake, just pick up your phone and give me a call.

Thanks!