Chris Sloan Tooele Real Estate

Legislature hits a "Home Run" for Utah New Home Buyers.

Thats the topic for this weeks "Presidents Message".

As the Utah Legislature wrapped up this week, there was some good news for Utah home buyers. On Thursday, the Utah State Legislature passed a bill that would provide a $6,000 grant to qualified buyers of a newly constructed home - funds in addition to the $8,000 federal tax credit - for a potential of $14,000 in home-buying incentives.

This housing stimulus grant program is called "Home Run," and it aims to stimulate home sales and eliminate a large portion of unsold housing oversupply, which would help stabilize home prices and create jobs. If signed by the governor, there would be 1,666 grants available to buyers on a first-come, first-served basis - grants which would not have to be repaid. For more updated information on the bill's final status, visit http://www.le.utah.gov/

"The idea behind this is we're trying to get existing homes bought and off the market so they can start building new homes," said the bill's sponsor Sen. Scott Jenkins.

While the proposed grant program would be similar to the $8,000 federal tax credit for home buying, there are some notable differences. The first is that the Home Run grants can only be used for newly constructed, never-occupied residences in Utah. Dissimilarly, the federal tax credit applies to both new and existing homes. Utah buyers who purchase a new home could potentially qualify for both incentives.

Second, unlike the federal program which only applies to first-time home buyers, Home Run is available to any Utah buyer who meets the other qualifications, including existing homeowners. The intent is to clear the excess housing inventory in the low- and mid-range price categories. In order to do this, analysts felt the program could not be limited to first-time buyers.

The Utah Home Run grant is $6,000 regardless of the home's purchase price, while the federal housing tax credit is 10 percent of the home's purchase price up to $8,000. The federal tax credit is available to anyone who purchases a home before Dec. 1, 2009, while Home Run grants are only available until they are gone, which could be much quicker. Some experts familiar with the bill are predicting all the grants could be given out in just a few months, which makes it imperative for anyone interested in the program to act quickly.

While both the Utah Home Run grant and the federal home-buying tax credit have income limits (a single buyer's income cannot exceed $75,000 and a married couple's cannot exceed $150,000 to qualify for the full amounts), the federal program offers a partial tax credit that may be available to those who make more. A partial Home Run grant is not available to individuals and couples making more than $75,000 and $150,000, respectively.

The way in which the money is given varies as well. A Home Run applicant will make a reservation request through their mortgage lender who will contact Utah Housing Corporation, the program administrator. Buyers will then have 90 days to close the deal, with the money being credited to the buyer's down payment or closings costs at closing. In contrast, those seeking the federal home-buying tax credit will claim the credit on their federal income tax return.

A final difference is that Home Run applicants must buy their home using a 30-year fixed-rate mortgage. Buyers can use any number of loan programs, including conventional, FHA, VA or USDA to name a few. Buyers can also use a Utah Housing loan, but this is not a requirement; any traditional 30-year fixed mortgage will qualify. Any lender authorized to make loans in Utah can help buyers apply for the grant.

Combined with the market's other buying incentives, the Home Run program is expected to have a significant impact. The University of Utah's Bureau of Economic and Business Research estimates Home Run will eliminate a large number of the 2,903 complete, unoccupied homes along the Wasatch Front, thereby creating 8,823 jobs and $27.7 million in projected tax revenue.

The money for the grants comes from funding Utah is slated to receive under the American Recovery and Reinvestment Act of 2009, which President Barack Obama signed into law last month. Utah Housing Corporation is expected to provide more information on their Web site, www.UtahHousingCorp.org, as details are finalized.

Thats some pretty good stuff.

While we had a pretty good year up on the hill, this one bill that will have definite impact on our industry because the Governer brought it to us to fine tune.

It shows the importance the Governer and his people feel our industry is to the ultimate recovery of the Utah economy.

It also reminds us all off the roll to be played by new construction and Utahs New Home Buyers.

It's a Buyers market, and If you're looking at the thousands of homes for sale in your local area, I hope this article I wrote for our UAR membership and their clients Saturday will help you take advantage of it.

How to Make the Most of a Buyer's Market

President's Message

Chris Sloan

Reports of lower real estate sales and prices may come as gloomy news for home sellers, but for potential home buyers who have a chance to cash in on one of the strongest buyer's markets in years, things couldn't look better.

A buyer's market is characterized by high inventory and low demand, a situation where many sellers are competing to sell property to fewer buyers. Buyers have more negotiating power and sellers are more flexible, which ultimately results in lower prices and a better chance of getting the home of your dreams.

Over the past few weeks, I've talked about the some of the unique characteristics of this particular buyer's market, including the super-low mortgage rates and the new $8,000 tax credit that does not have to be repaid. Alone, either of these incentives would offer a compelling reason to look at buying a home in the next year, but there are other less-obvious benefits as well. Below are some of the additional ways you can make the most of today's market.

Take time to shop around

Because there are more properties and fewer buyers competing for those homes, you can take longer to shop around. Instead of settling on the first property you like, you have time to look at as many homes as you want and carefully choose your favorite.

Compare mortgage rates and fees

Less urgency in the marketplace gives you more time to shop for a home loan. Use that time to compare various lenders' interest rates and fees. Even though mortgage rates are extremely low right now, taking the time to negotiate loan terms could save you even more.

Hire a buyer's agent

If you're looking for bargain-priced property, hire a Realtor who will represent your interests. A buyer's agent will be able to provide you with up-to-date information about new listings, price reductions and, if you're interested, information about properties in the foreclosure market. Your Realtor will also work to negotiate the price and favorable contract terms.

Know the neighborhood

You won't know how much to pay for a property if you are unaware of the competition or are unfamiliar with the market. This is especially true because real estate markets are so localized, with similar houses selling for different prices depending on the neighborhood. Have your Realtor show you the price of comparable properties that have recently been sold. Armed with information, you'll know which properties are a good deal and which ones need to come down in price.

Use time to your advantage

In your offer, ask for advantageous time frames. Don't give the seller tons of time to accept your offer, but make sure you have enough time to conduct your inspections and other due diligence.

Negotiate closing costs

Home buyers typically pay a percentage of the property's price in transaction costs. Try asking the seller to pay a portion of these costs. This could lead to thousands of dollars in savings.

Ask for extras

For new home construction, many builders may be willing to throw in free upgrades, especially if the builder has a lot of unsold inventory. For existing homes, sellers may be agreeable to making repairs or may reduce the price in order to compensate for the cost of the repairs. Also, ask for a home warranty as part of the deal. A year's worth of coverage on the home's appliances and operating systems will prove valuable should something go wrong after you buy the home.

Bottom line: In areas where there are a lot of homes for sale, builders and sellers may be willing to make more concessions in order to get the property sold. For more home-buying tips or information on how to make the most of today's market, contact your local Realtor. To find a Realtor in your area, visit http://www.utahrealtors.com/

If you don't currently have a Realtor, we'd like to apply. To check us out stop by our website to see how serious we are. Click on Tooele Real Estate. To have access to the thousands of homes for sale in Utah click on Utah MLS Home Search. You'll get maps, prices, addresses, photos and information to help you take advantage of this Buyers Market.

Every day someone in our Real Estate office, asks someone either in person or on the phone"are you ready to buy a home in Utah"? Are you tired of sitting on the sidelines, thinking things might get better? (or worse depending on the situation).

Thats the subject of this weeks presidents message. Is now the time to buy, and how do you know?

With the passage of the newest economic stimulus bill and the implementation of an $8,000 tax credit for first-time buyers, more people are weighing their options to decide whether home buying makes sense. In fact, the National Association of Realtors estimates the tax credit will spur approximately 300,000 additional home sales as on-the-fence buyers decide now is the time to make a move.

With such strong financial incentives in place for first-time buyers, now is the perfect time for anyone who has considered homeownership to calculate whether buying makes sense. In fact, taking time to do the analysis now will be especially beneficial since many of the current incentives, such as the tax credit and possibly the super-low mortgage rates, will not be available next year.

While there are many great reasons to make a home purchase, buying is a long-term commitment that isn't right for everyone. Consider the following questions as you determine whether you're ready to buy.

Can you afford homeownership?

Through the combination of lower home prices and cheaper mortgage financing costs, homeownership has become considerably more affordable over the past year. In fact, interest rates on a 30-year fixed-rate mortgage are one full percentage point lower today than they were a year ago, according to Feb. 19 numbers from Freddie Mac. That means you would save more than $45,000 during the life of a $200,000 mortgage or you could increase your buying power by 10 percent.

To see whether buying makes sense for your budget, start by determining how much a home in your estimated price range will cost, and make sure to factor in mortgage principal payments, interest payments, mortgage insurance (if you have less than 20 percent down), homeowner's insurance and property taxes. The general guideline is that you shouldn't spend more than 28 percent of your income on your housing costs, and your total debts should not exceed 36 percent of your income. If you need help calculating these costs, contact a mortgage professional.

Keep in mind, however, that mortgage interest and property taxes can be tax-deductible so these costs may actually be lower. Assuming a 28 percent tax bracket, you can make a mortgage payment - including taxes and insurance - that is approximately one-third larger than your current rent payment for the same amount of money because of the tax deductions, according to the National Association of Realtors. But make sure to consult your tax professional regarding the deductibility of any homeownership-related expense.

Along with determining the costs of homeownership in relation to your income, you need to assess your down payment funds and your credit score. While there a still a couple programs out there that will provide 100 percent financing, most lenders require some sort of a down payment. FHA loans require 3.5 percent, and conventional loans typically require at least 5 percent. For an FHA loan, your credit score should be at least 620. For a conventional loan, it shouldn't be lower than 700.

How long do you plan to stay?

In general, the longer you plan to stay in a home, the more financial sense it makes, with the rule of thumb saying you should keep the home at least five years. That's because there are a number of transaction costs involved in buying or selling real estate. The longer you stay, the more these costs are absorbed, and the greater the opportunity for your home to increase in value.

The New York Times has a useful calculator that will help you determine how long it will take to reach the break-even point. Visit NYTimes.com and search for "Is It Better to Buy or Rent?" to access the calculator.

Have you considered the intangibles?

Of course, home buying isn't just about the numbers. There are considerable intangible benefits that should be considered as well. Like the fact that you won't have to get your landlord's permission to remodel or worry about losing your deposit if you pound a nail in the wall.

Homeownership also creates stability for your family. In one study by the Harvard Joint Center for Housing Studies, the children of owners achieved math scores up to 9 percent higher than the children of renters, reading scores up to 7 percent higher and reductions in behavioral problems of up to 3 percent. Other studies have linked homeownership to lower crime rates and greater community involvement.

For more information on homeownership or to learn about the home-buying opportunities in your area, contact your local Realtor or visit www.UtahRealtors.com.

So there you have it, a basic primer of the questions you need to answer, before you ask the big question on everyones lips nowdays. "Are you ready to buy a home in Utah"?

Buying a New Home in Stansbury Park is the best deal yet!!

It's the best New Home deal In the Area ?

And if it's an Ivory Home @ Benson Mill Crossing It even gets better.

On Cories Salt Lake blog yesterday, she was touting the new Ivory promotion where they match the new government $8,000 gift for first time home buyers with $8000 dollars of their own. When you add the 2 together, you have a package worth $16,000 dollars.

But wait, there's more !!!

Ivory also offered a 30 year fixed rate interest percentage of 4.5% for a limited time on all of their single family homes, town-homes and Condominiums for sale along the Wasatch Front.

So Corie was almost right, that is a great package. But it's not THE BEST.

It's not the BEST, because if you don't have a down payment what do you do?

You go to Tooele, to Stansbury Park, to Benson Mill Crossing and ask us about a Rural Housing Loan that offers 100% financing.

Home purchases in Tooele County qualify for 100% financing through a Rural Housing Loan.

WE KNOW HOW TO GET THEM !! In Stansbury Park, In Grantsville, In Tooele City !

Now you have the best deal in the area on a new home. You have !!

NEW HOME OR CONDOMINIUM: By Utah's leading home builder for 22 straight years.

$8000 FEDERAL GOVERNMENT GIFT: For all first time home buyers.

$8000 IMMEDIATE MATCH: By Ivory Homes.

EITHER A GREAT INTEREST RATE OR 100% FINANCING: You make the choice.

Give us a call. We know Tooele Real Estate, and we know good deals when we see them.

As usual, we suggest that before you visit a model home you call your agent. As nice as we think the Ivory salespeople are, they represent the builders interest.

You should have someone who's sole job is to protect you and your interest. Call your favorite local Realtor.

If you don't have one, we'd like to apply. Were local, were knowledgeable, and were serious about this business.

Check us out at our web-site, Tooele Real Estate. you'll be glad you did.

If you just want to chat about homes for sale, or short sales, foreclosures or anything about Real Estate, call us @ 435-840-5029.

Better yet, lets get together and look at some of the wonderful homes for sale in Stansbury Park, Grantsville, or Tooele.............Lets get to know each other.

Or just call to ask about a New Homes In Stansbury Park - the best deal yet.!!

Well It's the Law, and the recent Tax Credit is good for a lot of first time home buyers. At first blush I was disappointed that there wasn't more help to stimulate the sale of those homes in the middle of the market that seem to be clogging up the works. Since it looked like it had limited appeal I wasn't even going to write about it this week.

Upon 2nd blush though, (boy I blush a lot) it really does a lot for a lot of people that would like to move up to a 2nd or 3rd home but haven't been able to sell their existing home. It's the Domino effect or affect, one or the other, but whatever it is it, it makes the stimulus bill worth being our weekly message.

Now get out and give those first time home buyers $8000 dollars.

President's Message

Chris Sloan

President Barack Obama made headlines this week as he signed into law a $787 billion stimulus bill that aims to prop up the economy by cutting taxes, creating jobs and investing in the nation's infrastructure. While these particular components have received much of the media attention surrounding the legislation, the bill also contains several lesser-known housing stimulus provisions that will be of particular interest to home buyers. Below is a discussion of some of the measures that would bring significant benefits to home buyers this year:

$8,000 Tax Credit

Perhaps the legislation's biggest benefit to home buyers is a tax credit equal to 10 percent of the home's purchase price, up to a maximum of $8,000. Although similar to a $7,500 credit that was enacted in 2008, this year's tax credit is significantly improved. Unlike the original $7,500 tax credit, this new credit goes up to $8,000 and does not have to be repaid, making it a true tax credit rather than a long-term, interest-free loan. Keep in mind, however, that the home has to be your principal residence for three years if you want to avoid recapture.

Another benefit is the fact that the credit is refundable, meaning you can claim the credit to reduce your tax burden dollar for dollar and have any remaining amount refunded to you. For example, if someone who qualified for the full $8,000 credit owed $1,000 in taxes on April 15, 2010, he or she would receive a $7,000 rebate check.

There are, however, several requirements home buyers will have to meet in order to qualify for the tax credit. First, it is only available to first-time home buyers or those who haven't owned a primary residence in the past three years. If you haven't owned but your spouse has in the past three years, you won't qualify for the credit either.

The second limitation deals with income levels. To be eligible for the tax credit, an individual's income cannot exceed $75,000 for the full credit and $90,000 for a partial credit. For those filing jointly, incomes cannot be greater than $150,000 for the full credit and $170,000 for a partial credit. Finally, potential buyers should know that the credit is only available for home purchases made on or after Jan. 1, 2009, and before Dec. 1, 2009, as the purpose of the credit is to stimulate home buying.

Even though not everyone will qualify for the tax credit, there will be indirect benefits for both homeowners and the overall economy. The National Association of Realtors estimates there will be an additional 300,000 home sales from first-time buyers because of the credit. According to Lawrence Yun, chief economist of the National Association of Realtors, the tax credit will help reduce inventory levels, which will help stabilize home prices in many parts of the country.

Increased Loan Limits

Of course in order for buyers to make a home purchase, funding must be available. While FHA and conventional loans are readily available and offer low interest rates, there are limits to how much you can borrow using these programs. Under the recently signed stimulus bill, these limits have been expanded, which will provide greater access to affordable mortgage funding, especially for buyers looking to purchase a higher-priced home.

In Utah, the limits - which are determined by an area's median home price - vary depending on the county in which you live. In Salt Lake, Summit and Tooele counties, both the conventional and FHA limits have been increased from $600,300 to $729,750, according to an estimate from the National Association of Realtors. In all other counties (except Wasatch where the new limits are estimated to be $431,250) the previous conventional loan limit will remain the same at $417,000, with the FHA limits varying.

Benefits for Energy Efficiency

Another component of the bill puts more money in the pockets of would-be remodelers. Along with the savings that come from a more efficient home, the stimulus bill is providing a greater tax incentive for homeowners who make energy-efficient updates. The bill triples the amount of an existing tax credit by providing a credit worth 30 percent of the cost of each improvement (up from 10 percent), with a lifetime cap of $1,500.

Congressional estimates indicate that the new rules for the tax incentive will increase aggregate remodeling activity by more than $6 billion. Details on qualifying improvements for the tax credit will soon be available on the IRS Web site, www.irs.gov.

In addition to the home buyer tax credit, increased loan limits and remodeling incentives, the bill takes other steps to help the housing market. To learn more about the housing-released provisions of the stimulus bill, visit www.Realtor.org or www.FederalHousingTaxCredit.com. To learn more about the home-buying opportunities in your area, contact your local Realtor.