Localism: Utah County, UT

Earnest Money and the REPC - Provo Real Estate

Tue, 02 Dec 2008 11:53:27 -0600

The Real Estate Purchase Contract involves more than just price. You will have to discuss personal property possession, rent, tests, inspections, closing dates and more. The one term that throws most buyers, especially first time buyers is Earnest Money Deposit. What is it? Why do I need to pay it? Why do I have to pay so much?

Not the Down Payment

Many buyers show up to write their offer and announce to their agent that they do not have to put an earnest money deposit because they are getting down payment assistance or 100 percent financing. Communication is very important, it is not difficult to see where an inexperienced buyer would confuse one deposit for another, so do not feel bad if you, too, just learned something new.

Returned at Closing

Unlike the down payment, the earnest money is returned at closing. Whether you actually get the cash back or have it applied toward your closing costs depends on the situation. Once you submit your earnest money it is held in a non interest bearing account until closing. The purpose of earnest money is provide insurance to the seller that once he starts to take action toward closing, for himself or for the buyer, that the buyer will not lose interest and walk away from the sale. If the buyer does walk without good reason, the seller gets to keep the earnest money, to help offset any expenses the seller may have incurred meeting the buyer's terms, as well as any inconvenience.

Earnest Money can be Negotiated

Just like the sales price the earnest money can be negotiated. The seller would like to see as much earnest money as possible before putting his home under contract. If multiple offer situations, sometimes, the offer with the larger amount of earnest money is more acceptable to the seller. So it is important to give a full deposit when you can.

Everyone thinks that the primary concern is the dollar, but when it comes right down to it, a successful transaction with minimal drama is what everyone really wants. A buyer who is not serious, is a buyer who could walk away a week before closing and no seller wants that. When you find your dream house, make your offer stand out and leave no question as to your seriousness if you want the best chance of receiving an acceptance.

So, you are paying your mortgage... what can this "bailout" do for you?

Mon, 01 Dec 2008 14:38:18 -0600

So, you are paying your mortgage... what can this "bailout" do for you?

Last week, Secretary Henry Paulson announced that the Federal Reserve Bank was going to purchase a large amount of Mortgage Backed Securities(MBS) to inject some much needed liquidity and capital to the banks holding these bundles of notes. The impact was felt immediately on the mortgage market, rates for fixed rate mortgages plummeted on the injection of dollars into the system, dropping the 30 fixed rate by as much as 1%. Just today Chairman Bernanke re-iterated this today in his speech before a group of business leaders in Austin, Texas which caused an initial knee jerk reaction and sent the pricing of MBS skyrocketing and causing the effective yields (interest rates) to fall.

It is time to do a mortgage check up, see where you stand and see if these lower rates can help you refinance, purchase a new home, or even an investment property.

New Home Wants and Needs - Provo Real Estate

Mon, 01 Dec 2008 09:22:52 -0600

New Home Wants and Needs

By: Robert A. Hulme - Realtor

There are many homes available in today's buyer market. At times it may become difficult to find the right home. There are some very beautiful homes, but which one is just right for you? Here are some ideas to find the best home for you.

•· Write down everything that you want in a new home and everything you need (absolutely have to have). Do you want a large kitchen? What about an attic? Do you want a back yard, but do you need a large back yard? What about a driveway or a garage?

•· Write down what you want in the house. Do you really want a concrete porch with an overhang? Do you want wall to wall carpeting or just hardwood floors? How about the number of Bedrooms and Bathrooms?

•· Write down the style of home you want. The style of home is very important to some people. If you want a Rancher write it down.

•· Write down where you want to live. Is it important to be near schools, church or work, or do you have to be close to them?

•· Look for your homes in the newspaper or online. This will help lead you in the right direction. You can do a lot of things to a home to make it the way you want it, but it is very hard to move it.

•· Get pre-approved for your loan while you are looking for your home. Having a pre-approval will help to make sure you don't waste a lot of time looking at homes that you can't afford to purchase.

•· Make sure you look at foreclosed or bank owned homes. These homes are on the market simply because the previous owners could not afford the house payment. There is typically nothing wrong with the home, but at other times, there can be a lot wrong with the home. It is very important that you have one of these homes inspected prior to your purchase.

Eagle Mountain, Utah Real Estate, percentage of solds and price action to confirm market bottom

Sun, 30 Nov 2008 19:12:22 -0600

We still are having a low percent of new listings being SOLD. Currently (1.80)% on a year over year YTD comparision. We need positive % of lists sold, with positive price action to confirm market bottom.

Please see data below.

PRICE ACTION

We need positive price action to confirm the market bottom.

Other good signs inaddition to price action, are positive action on % of new listings sold.

Lower DOM (days of the market) and lower new listings.

For more details or just to chat about market conditions please feel free to contact me.

Thank you

Lehi, Utah Real Estate percentage of solds and price action to confirm market bottom

Sun, 30 Nov 2008 18:43:51 -0600