It seems that the slowdown in the real estate market has Home Warranty companies that service the Salt Lake City real estate market adjusting their premiums and coverages to keep profits up.
Over the past 45 days prices have gone up by about 18% and deductibles (service fees) are up about 10%.
To be fair, some additional coverages have been added to some warranty companies' offerings, but others have actually lowered their level of coverage by removing items from standard coverage or limiting the extent to which the home warranty company will cover certain claims. The cost of "add-on" coverage (for additional appliances, etc.) has also gone up for most companies.
When I asked one particular representative why prices went up, the first response was because of the additional coverage provided (unknown conditions had been added as a standard inclusion). After a little straight talk about the other areas where coverage or prices had become worse the final answer I got was: volume is down.
At any rate, even at the new prices (About $300 for standard coverage) a home warranty is usually a good investment when buying a home. Especially now that Utah's standard purchase contract has been changed to "as-is" by default! (More on that to come.)
In most transactions, the Seller is willing to cover the cost of a Home Warranty plan as it provides them some relief in the event that some system of the home fails shortly after the sale.
If you are buying a home in the Salt Lake City, Utah area make sure you hire a professional agent on YOUR side of the transaction! Make certain the agent you hire is an Exclusive Buyer's Agent! (EBA)
If you have excellent credit and will be buying a $250,000-$750,000 home within 90 days and want an agent working exclusively for YOU, call us at (801) 969-8989 or contact us via the link on this page.
Exclusive Buyer Brokerages do not list homes and never represent Sellers. Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...
©2008 Homebuyer Representation, Inc.
"The Real Estate Agents on the Buyer's Side" TM
Exclusive Buyer's Agents (EBA)
All Rights Reserved
Finally...

The NAR 2006 Profile of Home Buyers showed that:
98% of Buyers believe negotiation skills are "Very Important" or "Somewhat Important" in their real estate agent.
and that:
Buyers give "Negotiation Skills" the lowest satisfaction rating of all agent skills and qualities.
Fewer than 3% of all real estate agents have received formal professional negotiations training.
Exclusive Buyer's Agents are already set apart from traditional real estate agents because they work for the Buyer in every transaction. By keeping in mind what is in the Buyer's best interest at all times, Exclusive Buyer's Agents naturally become good negotiators. Still, when the opportunity comes to receive professional training and increase those skills and abilities, the agent who really wants their client to receive the best service available takes it.
I've just completed 2 days of intensive negotiations training with Tom Hayman of Negotiation Expertise, LLC. Tom was a professional negotiator with Proctor and Gamble for over 20 years.
The class was informative, educational and very enlightening.

I have always prided myself on my abilities to negotiate the best deal for my buyer-clients. Now I have even more tools and techniques to implement for my clients' benefit to get them even better deals when they buy homes in the Salt Lake City, Utah area.
I have learned how important the acquisition of knowledge is to negotiating and have learned new ways to gather the information needed to negotiate a better deal for my clients.

After studying, practicing, role playing and testing, I earned the Certified Negotiation Expert designation, held by fewer than 1% of all Real Estate Agents in the United States.

Buying a home in the Salt Lake City, Utah area? Make sure you hire a Certified Negotiation Expert on YOUR side of the transaction!
If you have excellent credit and will be buying a $250,000-$750,000 home within 90 days and want an agent working exclusively for YOU, call us at (801) 969-8989 or contact us via the link on this page.
Exclusive Buyer Brokerages do not list homes and never represent Sellers. Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...
©2008 Homebuyer Representation, Inc.
"The Real Estate Agents on the Buyer's Side" TM
Exclusive Buyer's Agents (EBA)
All Rights Reserved
Finally...


Buying a home in the Salt Lake City, Utah area? Make sure you hire a Certified Negotiation Expert on YOUR side of the transaction!
If you have excellent credit and will be buying a $250,000-$750,000 home within 90 days and want an agent working exclusively for YOU, call us at (801) 969-8989 or contact us via the link on this page.
Exclusive Buyer Brokerages do not list homes and never represent Sellers. Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...
©2008 Homebuyer Representation, Inc.
"The Real Estate Agents on the Buyer's Side" TM
Exclusive Buyer's Agents (EBA)
All Rights Reserved
Finally...

With all the plusses that come with more square footage, the smart buyer will look at the additional costs.Most Buyers who choose to buy small do so out of some necessity: The home is closer to work, their buying budget only gets them a small home, etc.
But some buyers who could buy big, still choose to buy small and their reasons are food for thought.
If you are planning to buy a home in the Salt Lake City area and want a true agent who will look out for your best interests, make sure you hire an Exclusive Buyers Agent! Make sure you get an Agent on YOUR side of the transaction!
If you have excellent credit and will be buying a $250,000-$750,000 home in the next 30-60 days and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.
©2008 Homebuyer Representation, Inc. "The Real Estate Agents on the Buyer's Side" TM Exclusive Buyers Agents (EBA) - All Rights Reserved
Exclusive Buyer Brokerages do not list homes and never represent Sellers. Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...
©2008 Homebuyer Representation, Inc. - Salt Lake City, UT
Exclusive Buyers Agents (EBA) - All Rights Reserved
Finally...

Can you blame builders for getting sucked into the hype?When you are taking orders for homes as fast as you can build them, why not decide to build a ton of "spec" homes?
Still, builders should have seen an end coming at some point, and those who did, planned accordingly and had an exit strategy. (Always a good idea: Have an exit strategy.)
After all, this is where some of the most profit is made, and buyers were buying up their homes just the same!
To show I can be somewhat fair, I know a number of builders who might have been just as happy building and selling more "starter" sized homes. Moderate homes.
Why didn't they?
Well, planning and zoning departments in some cities started to set minimums in order to maximize tax revenues. For example, where you may have been able to build an 800 or 1000 square foot home without a garage years ago on a tiny lot, some cities now require a minimum lot size of 8,000 or 10,000 square feet. They also require a minimum "finished" square feet of 1300 sf. (On most homes in Utah, this would mean a 2600 sf home if it were a rambler/ranch, or an 1850 sf home if it were a 2 story). Oh yeah, and now all homes (in some communities) are required to have a 2 car garage and RV parking... There goes your "starter" home option!
Again, the fault doesn't lie with the builders alone. That was their business. But, they likely didn't ever say to a Buyer: You know, you might want to be more conservative here. No. They likely didn't do that very often.
Surely some blame is left to be placed on the agents who allowed or encouraged buyers to overextend and/or overpay to buy homes over the past few years.
Last year we saw builders including all kinds of "incentives" or bonuses to Buyers in order to not have to reduce the price of the home. This year, in Utah, although some builders have suffered, those who scaled back early enough are still able to compete and make a living building homes, just not at the level they used to. Strangely enough, some builders are still offering "incentives" but among some of them, those incentives are getting smaller or are even non-existent. Some have determined that simply pricing the home at a fair value is the best solution to their predicament, and many times they are right.
If you are planning to buy a new home in the Salt Lake City area and want a true agent who will look out for your best interests, make sure you hire an Exclusive Buyers Agent! Make sure you get an Agent on YOUR side of the transaction!
If you have excellent credit and will be buying a $250,000-$750,000 home in the next 30-60 days and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.
©2008 Homebuyer Representation, Inc. "The Real Estate Agents on the Buyer's Side" TM Exclusive Buyers Agents (EBA) - All Rights Reserved
Exclusive Buyer Brokerages do not list homes and never represent Sellers. Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...
©2008 Homebuyer Representation, Inc. - Salt Lake City, UT
Exclusive Buyers Agents (EBA) - All Rights Reserved
Finally...

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