Tony Fantis, Realtor , Principal Broker - Salt Lake City

Some think it's about to fly again

The laws of supply and demand would suggest fewer sales = less demand, right? Wrong. Why are home values still climbing in a supposed buyer's market?

"It's a product of the consistent growth in our market," says Tony Fantis, founder of the Fantis Group. "Many people neglected to improve thier homes while values were rapidly appreciating." After several years of 10-25% growth, prices have gone up.

"Today's buyers," he says, " expect value in the price of the home. That value can come from quality upgrades, or it can come from a bargain price." Gone are the days of listing a home at $30,000 over expected value with multiple offers coming in within a matter of days.

"Remember, we're all buyers at one time or another. When shopping for a home we have specific needs, we also have a wish list. In a buyer's market, the sellers have got to cater to those little things that mean a lot, if they really want to sell."

Continued record growth and rock-solid employment numbers contribute to the strength of the market. Salt Lake is poised for growth for many years to come.

Before choosing their Realtor (R)

Buyers and Realtors alike should be prepared when entering into one of the most important business realtionships they'll ever have. By knowing the questions to ask (or to answer) buyers and Realtors will be better able to make strong connections that last a lifetime. Here is a list of some of the most important questions to be asked:

1. How much experience do you have?

This is a good question to ask. Find out how long they've been in the business, how many homes they've sold, and what extra designtations they have. Are they an associate broker? Do they have their Accredited Buyer Representative designation?

2. What can your company do for me?

Some services are provided by the agent, and some by the company? Will the agent be making a personal investment in your success or is it on the company's dime? In either case, find out who does what and what the benefits are. Nobody in the world says more homes than RE/MAX.

3. How closely do you follow the market?

Once it hits the news, it's too late. Your agent should be ahead of the curve with up-to-date market information, pricing trends, as well as days on the market. View our comprehensive market trends report to see the latest in your neighborhood. Or give us a call!

4. What kind of support staff do you have?

Nobody can be in two places at once. Ask what type of backup, support, and phone assistance your agent has. If the agent doesn't have any support, they're either 1) too unproductive to need one or 2)unreachable when you need them. Look for an agent that has a team, a transaction coordinator, a showing coordinator, and a marketing director.

5. How will you make my life easier?

A great agent simplifies the process by handling everything for you so you can live your life. Buying or selling shouldn't be your second full time job. Choose an agent that will take the time to get to know you and your real estate needs. A little knowledge goes a long way.

6. How often will you communicate with me?

The number one complaint by buyers and sellers is that their agent didn't communicate with them enough. Remember, you can ask this question but you'll have to take the word of the agent unless you've been referred by a friend or past client.

7. What percentage of your listings do you sell?

The average in Salt Lake County for 2007 was less than 50%. That's not good. In the same period, Tony Fantis sold 100% of his full term homes and condos. See our listing services page for more information.

8. Are you full time or part time?

Is it possible for a part time Realtor to be faster than the competition, to have superior market knowledge, and to represent your best interests at all times? Will they have the type of full time knowledge and experience you're seeking? Probably not.

9. How many homes have you sold?

The important element here is to find out how capable the agent is, as well as how much real world experience has been obtained. It takes a lot of sales before an agent polishes negotiation tactics, neighborhood trends, home values, and contract knowledge.

10. Do you pre-qualify buyers?

A successful agent always pre-qualifies buyers, and for several reasons. 1) Security. Showing homes to people who have not made their identity known can be risky for people and for property. 2) Valuable time. Why waste the buyer's AND the seller's time by showing homes to someone who isn't qualified?

11. What kind of marketing do you utilize?

Many kinds of marketing exist, and some are more powerful than others. We utilize reflective yard signs with advertised websites, newspapers, direct mail, email, sales meetings, bottomless color flyers, radio, professional photography, virtual tours, a showing coordinator, and much more. For a list of services we offer, view our listing services web page.

12. How many homes did you sell last year?

The best measure of future performance is past performance.

13. Do you work with first time buyers?

Most people will answer "yes" to this question, but are they willing to sit down with you and discuss the purchase process and how it all works? Do they take the time to make sure all your questions are answered, or are they pushy?

14. When will Utah become a "buyer beware" state?

The Utah real estate purchase contract is changing...again. Ask your agent if they know about it. Later this year, Section 10.2 wil be deleted from the contracts, leaving buyers with no guarantee that critical heating, cooling, plumbing, foundation, electrical, sprinkler and other systems of the house are in working order. When they say "buyer beware" they mean it! We'll walk you through effective strategies to protect yourself...and your big investment.

15. What percentage of your business is by referral?

Referrals and repeat business are the best way to measure an agent's success. A lower percentage likely indicates a lack of confidence by buyers and sellers in that agent.

16. Do you have your own website?

Ask what they have, and then go look at it/them. Does it look professional? It may be a reflection of the same marketing and care you're about to receive. Most agent websites do little to help their buyers and sellers. Self-promotion is important in any business, but there should be plenty of focus on the client's needs, too. And don't forget to check out the company website, as well.

17. In what area of the city do you work?

Utah Realors are licensed to work in the entire state. The main point here is determining how much market knowlegde and neighborhood info you want from your agent. At the Fantis Group , we focus on a the Salt Lake metropolitan real estate market.

18. What type of signs do you use?

There's MUCH more than the sign itself that matters here.Be sure to ask the following questions: How long does it take to get the sign in the yard? Does the sign point to a website? Is my home on the front page of that site? Do you utilize reflective signs that can be seen at night? How do you handle buyer's calls from the sign? Do you provide bottomless, full color, professionally designed and photographed flyers on my sign?

19. Will I get a professional virtual tour of my home online?

More than 80% of buyers select homes by first taking tours online. If you don't have a tour, you just lost 80% of the market! But what kind of tour is it? Are the photos taken by a professional or by a handheld do-it-yourselfer? Stunning photography is critical when first impressions are everything and second impressions just don't happen.

20. What happens when you go out of town?

Everybody needs a vacation, but should they take one at your expense? Who handles their calls while they are away? Who can show houses while they're gone? Who can negotiate contacts and handle unexpected surprises?

Sell for more in a buyer's market

Some of Salt Lake County's neighborhoods and price ranges aren't performing like a bullet-proof investment. Why not?

First, let me suggest that sometimes it's just the market's fault. There is nothing any of us can do to change the market overnight or significantly. So what am I suggesting? Sometimes...it's the sellers fault!

In Salt Lake County many homeowners rode the wave of $20-40k/year appreciation and that was all. They just rode the wave. And when the wave subsided (it didn't crash here) all the fun was over. Or was it?

Some homeowners and investors saw it coming and have cashed in on a hole in our market. What our market is lacking in many areas of town are quality updates. While paint and countertops are always helpful, many sellers have neglected to remember what it's like to be a buyer. Buyers expect more from our more expensive homes. And what they expect is what many homes are lacking.

Recent NAR studies show more buyers are interested in garages and central air than ever before. Most homes built prior to the 1970's (we have a LOT of them) don't come with a 2 car garage. And many of them had evaporative or "swamp" coolers instead of central air. If we listen to NAR studies, home sellers should be making improvements that they themselves want and, with a little planning, make improvements buyers are seeking more than others.

And then there's staging. Let's face it, homeowners in Utah are creative when furnishing and decorating their homes. That creativity can save a few bucks and keep the pocketbook happy...but too often the poorly furnished or craftily decorated homes end up selling for less.

As a result of this and other factors, home staging is beginning to take center stage in Utah. The idea here is simple. Spend a few dollard to make your home look dreamy, then cash in on your investment when it sells for more.

Most buyers cannot see through dirt, clutter, furnishings, personal photos, and personal decorations. By bringing in the professional staging artist, sellers can make their home show its very best. And since most buyers are online taking virtual tours to rule out the homes they don't want to see, it's a good idea to have the professional photographer come by, too.

In a world where selling has become more and more competitive, it pays to have the best looking home, the best looking photos, and the best marketing in town.

Where did the buyers go?

The buyers didn't go anywhere. They're just hibernating.

Even though Salt Lake's economy remains one of the strongest in the country, many buyers have opted to play the waiting game. Looking for lower interest rates and lower prices, Salt Lake's buyers are perhaps being over-cautious.

So then I ask the question, "How much lower do you think rates can possibly go?" Most buyers quote the news they hear (usually a good source of late or inaccurate information), stating they've heard the feds just cut interest rates again. Little do they know, those rates have relatively little to do with home loan interest rates.

The bottom line is there are investors behind all these home loans. When the money (profit) isn't good enough, investors will go elsewhere. It's hard to imagine that rates can stay in the 6% range much longer.

Then there's the question of when the market has hit bottom. Salt Lake County sales lost, on average, $20k in value in the last quarter of 2007. Even though we're setting records with in-migration, population growth, and job growth...there's still some retisence in the market.

So here's my prediction. When house prices begin going up, and when interest rates begin going up, that's when we'll have our buying frenzy.

After all, the only way to know when stock is at its lowest is to wait for it to go up. And so goes the housing market. For the latest statistics for the Salt Lake market, visit http://fantisgroup.com/salt_lake/real_estate/market-statistics.html

As more Realtors and buyers discover the lending options that are still available to them, we'll see many more new and happy homeowners. Still stuck? Consider Utah Housing and FHA. Utah Housing has income limits...but few people know there are neighborhoods with no income limits for Utah housing. And with increased FHA lending limits ($729,750) in Salt Lake County, there will be many more people who can afford to get into the home they would otherwise qualify for if they had more down.

Hang tight Salt Lake, things may have calmed for a bit, but the flood's a-coming!

FHA Loan Limits increase in Salt Lake County

How does $729,750 sound? Yeah, I fell off my chair, too! That's more than double the old limit.

FHA insured loan limits are now $729,750 for Salt Lake County. These loans will be a shot in the arm to the luxury market across the valley, as more people can qualify with less money down.

But what about mortgage insurance? Well, nobody likes paying for mortgage insurance. But often times interest rates are lower on an FHA loan than a conventional. Let's look at a real example.

If mortgage insurance is .5% of the loan amount annually, then the monthly insurance cost on a $600,000 loan is $250/month. That's a lot of money! Or is it? A .5% difference in the interest rates between conventional and FHA is almost $200/month. And if you watch closely, you can find FHA loans at a significantly lower interest rate than conventional loans. Now imagine how much more the monthly cost would be for a non-conventional loan!

Another exciting possibility is for existing owners who'd like to refinance. With so many buyers in expensive loans, FHA insured loans will offer many the opportunity to move into a better product while obtaining an excellent fixed rate loan.

Loan limits in neighboring counties increased, as well. These limits vary widely, so be sure to consult your loan originator for specifics.

One last thing. Remember that FHA loans are still assumable! If interest rates go up significantly, sellers may have an advantage if they can offer an assumable, lower rate.

FHA loans are not the answer for everybody, but for many they will provide new opportunities, a cheaper monthly house payment, and a path to success that may not have been otherwise achievable.