Market is heating up in St George
Posted at 11:03 AM, May. 26, 2009
The real estate market in St George is keeping pace with the upcoming Southern Utah Summer weather; and that would be HOT, HOT, HOT! We are seeing lots of buyers from all over the country coming to St George to take advantage of our "great deals". And why wouldn't they? You can pick up a distressed property for 30-40 cents on the dollar compared with prices of a couple of years ago. Astute buyers know that prices will go back up in the near future; maybe not as high as they were in 2005, but the prices will recover. Many of the buyers are coming down from the Salt Lake City area, and tell us that they have always wanted a 2nd or Vacation home in St George and now they can afford one.
There were 44 months worth of inventory our area in January 2009, and that number has decreased to 19.8 months of inventory at the end of April. If this trend continues at this rate, we could move from a buyer's market to a seller's market by the end of Summer. What we are seeing in this market, in all price ranges, are multiple offers. This is especially true of homes that are being sold as "short sales" and foreclosed properties.
If buyers want to take advantage of great prices and have a good choice of homes, they need to jump in the game soon, before it is too late.
St George Utah Real Estate Statistics
Posted at 8:09 AM, May. 4, 2009
How bad is the market in the Greater St George area? Well, there is good news and bad news. The good news is that there are 2367 single family homes on the market compared with 2646 homes on the market last year, which represents a 10% decrease in inventory. The bad news, at least for sellers, is that the average sales price this year is $291,155 compared with $360,286 last year. That is a 19% drop in average price. There are currently 340 homes “under contract” which is 5% more homes expected to close than there were last year at this time.
The condo/townhome market isn’t faring as well as single family homes. There are currently 19% less homes “under contract” than the previous year and the number of sales is down 41%. The average sales price of a condo/townhome last year was $189,922 and this year that price has dropped a whopping 34% to $124,797.
While these figures are not good news for sellers, they are great for buyers. Not only are home prices much, much lower than they were a year ago, there are lots of other incentives for buyers.
First time homebuyers are eligible to receive a $10,000 assistance grant from the City of St George to be used to help with down payments and closing costs for home purchases in the City of St George. The State of Utah is also offering an incentive for home buyers who are purchasing a brand new home in Utah by offering them a $6000 incentive to help with their closing costs. The Federal Government is giving first time homebuyers an $8000 tax credit that they don’t have to pay back!
Coupled with the very low interest rates that are currently available; there hasn’t been a better time in Southern Utah to purchase a home, whether you are a first time buyer or making a purchase of a second or investment home.
10 Tips to Sell your Home Faster in a Slow Market
Posted at 8:23 AM, Mar. 3, 2009
10 Steps to Sell Your Home Faster In A Slow Market
You probably already know that real estate across most of the country is not appreciating as fast as it was at one time. This isn't necessarily a bad thing, unless of course you purchased last year and are now selling. People who have owned a property for a few years are generally well ahead in the game. We can't predict what 2009 will bring, but so far, most markets have at least slowed, if not declined. For the majority of established home owners in the prevailing market, prior property appreciation will ensure at least some degree of profit, though today's sales might not be as prosperous as they would have been in 2006. But all homeowners want to get the highest possible profits. How do you go about this? There are 10 negotiating steps that a seller can follow to assure that their home gets the best price and is sold quickly.
Step 1: Use a broker from the local area. When the market is down, so is the number of buyers. That means that you need to expose your property to as many potential buyers as possible. Who do prospective buyers get in touch with when they are house hunting? Real estate brokers. National Association of Realtors statistics show that 85% of purchasers count on real estate brokers for their home selections, while the Internet accounts for 80%. Who creates all of those online real estate postings? Real estate brokers from the local area.
Step 2: Familiarize yourself with the entire sale agreement. Nearly all jurisdictions have standardized real estate contract that has become lengthy and complex over many years. If you use one of those, read it carefully and be aware that you are agreeing to every unmodified term and condition. Make sure there is nothing in the agreement that needs to be taken out, rewritten or added. The brokers should offer a copy of the sale agreement that they might use at listing presentations and the sale deed should be read to avoid misunderstandings. As these are agreements on forms, whatever is not stated as a requirement by the law can be changed by a cross-out or addenda. Consult your attorney or broker for further detailed information.
Step 3: Be completely familiar with the current real estate market. For the sake of negotiations, knowing what the recorded sale prices were isn't sufficient because often they don't give the complete picture. As an example, two houses might have both sold for $300,000. A person might have sold for $350,000 while the other for $300,000 but the owner gave the buyer a 6 percent seller credit for a new roof and appliances, which is $18,000. Local brokers who are familiar with the details of recent sales are able to provide the best negotiation advice.
Step 4: Understand all of the terms you are willing to offer. You are confident that your home is going to sell at some satisfactory price, but instead of starting out with an inflexible amount, consider the property sale as a combination of price and terms. For example, it might make more sense in a slow market to help reduce the buyer's closing costs by offering a "seller contribution "instead of lowering the price of the property. Often the seller contribution could be significantly less than a reduction in price, and buyers who require cash to close the sale could find it more attractive as well.
Step 5: Request a smaller deposit. In order to bind a legal contract, the buyer needs to make a deposit. In an ideal marketplace, a seller will receive a large deposit, but in a down or "off" market, a much smaller deposit may have to be accepted. The buyers prefer to make the lowest possible deposit because a huge deposit indicates a big financial and psychological commitment. You can ask for a lower deposit if the buyer has mortgage pre-approval or if the buyer shows a strong interest in the property and you have no other offers.
Step 6: Sweeten the pot. Are you really planning to take large items like a swing set or washing machine? In certain cases it may be better to leave such items if a buyer makes an offer.
Step 7: MLS photos have to be updated. If your MLS photo shows snow around your home in the middle of the summer, potential buyers will know your house has been on the market a while. They may interpret this as meaning that you might be desperate to sell and will expect to lower your initial offer. Make sure your broker posts recent photographs.
Step 8: Fully understand the marketing plan. The broker's marketing plan should be reviewed quite often to see that it is being followed and is changed whenever it is needed.
Step 9: Check out open houses. Going to open houses, also known as your competition is a great idea. It isn't always easy to be objective. However, do other owners have selling ideas that might work in regards to your home? Is there something you can use to bargain with? You could consider offering to do some painting or other cosmetic repairs.
Step 10: Keep everything in context. Don't worry about nickels and dimes when your main goal is to get the house sold.
As an example, just before closing the deal, we had a buyer request an extra $600 to resolve last minute concerns. That gesture seemed like nothing more than a case of buyer's remorse, so we agreed to it, received an otherwise ideal price, and closed the sale. It wasn't long before the prices softened in the local market. It was better to lose $600 than to find another buyer later when the market was harsher and the final sale price might have been less by several thousands of dollars. Would we have preferred to save that $600? Certainly. However, six hundred dollars was a small price to pay considering that the delays could have meant a big reduction in price.
Real estate statistics in Southern Utah for 2008
Posted at 4:53 PM, Jan. 15, 2009
In this post I am giving you real estate statistics which compare sales in 2008 with 2007 in the Washington County MLS (which includes a few out of area properties, ie Iron County, Kane County, etc.)
One of the first things that our clients like to know is the absorption rate, or months worth of inventory. At the end of Dec. 2008, there were 36.87 months of inventory on the market. This includes land, condo/townhomes, single family residential, mobile and modular homes, and commercial. What this means is that it would take almost 37 months to sell all of the properties that are on the market, assuming that the same rate of sales continues and no other properties come on the market. (Each price range is a little different, so if you would like to know about a particular price range, please give us a call and we would be glad to look it up for you).
Our current market condition, called a “buyer’s market”, has been in effect in Washington County for more than a year, where the absorption rate in Dec 2007 was 33.42 months, just 3 months less than our current conditions.
Last year there were 1575 single family homes sold compared with 1887 homes sold in 2007. The average sold price in 2008 was $300,888 compared with $338,538 in 2007; the median sold price in 2008 was $250,000 compared with $283,000 in 2007, which represents an 11% decrease overall.
The sales of subdivided lots, declined by 49% from 2007 to 2008. and the average price was 20% less in 2008.
The sales of freestanding townhomes was hit pretty hard last year. There was a 35% decline in sales and a 45% decrease in sales price over 2007. The average price of a freestanding townhome in 2007 was $354,027 and was $186,392 in 2008.
The new construction market was the hardest hit last year. There were only 10 sales in 2008 compared with 45 in 2007 which is a 77% drop in sales.
While this market is not good if you are trying to sell, it is great if you are in the market to buy. There is an abundance of inventory to choose from, the prices haven’t been this low in over a decade and the interest rates are the lowest in 35 years. But you’d better not wait as we are starting to see a shortage of homes priced under $250,000.
Southern Utah Home Services website goes live
Posted at 9:32 AM, Dec. 6, 2008
If you are in need of a trusted and competent "home related" service located in Southern Utah, and you don't know who to call then you need to book mark this new website http://www.SouthernUtahHomeServices.com. Many of the businesses listed on the site has a link to their own business website for additional information.
When you call one of the home service businesses who are affiliated with "Southern Utah's Home Services" you can be assured of excellent service, dependability, guaranteed performance, honesty, and competitive prices.
Why take a chance on calling someone from a phone book or newspaper ad that you don't know when you can call one of our proven professionals and be assured of excellent service.
Each of the businesses in this group are licensed and insured. Keep checking back on this site as we are adding more members on a regular basis.
12 Reasons to Buy during the Holidays
Posted at 12:53 PM, Dec. 4, 2008
The 12 reasons to buy a home during the holidays:
1. Loan programs and limits are constantly changing. Current programs and limits, such as FHA, may not be available in 2009 after changes in our government take place.
2. There are less buyers shopping for a home during the holidays, therefore you may be in a stronger negotiating position.
3. With fewer buyers on the market during the holidays, there may be fewer multiple offer situations, especially in REO and Short Sale properties.
4. The transaction load is lighter for many lenders at this time of year, so your file may be handled quicker, more efficiently, and more accurately. This holds true for Title and Escrow.
5. It’s nice to get a feel for a home when it’s decorated for the holidays.
6. You may have more vacation or free time during the holidays instead of having to ask for time off work to look at homes, complete paperwork, attend signings, etc.
7. You can show your visiting friends and family your prospective new home.
8. With fewer buyers on the market, it may be easier to schedule inspections, etc. allowing you to shorten your contingency period in exchange for more favorable terms.
9. You’ll be enjoying your new home in the spring instead of waiting to move in.
10. January is typically the best time of year to buy decorating items or home improvement items as the retail industry doesn’t want a huge slump after the boom in holiday shopping.
11. If you have kids, they can transfer to their new school at the start of the new semester and avoid “getting behind”.
12. What could be a better gift for the family than a new home for the holidays?
Are you ready to buy? Call the Basso Group today to set up an appointment to get started.
Coins for Kids
Posted at 9:41 AM, Nov. 23, 2008
Where did the year go? It seems like just yesterday we were putting decorations on our Christmas trees and were busy making, or shopping for that special gift for our loved ones. Yes, Christmas is right around the corner again and the Coins for Kids Board is busy getting all of the arrangements made for this year’s fundraising.
Most of you know about Coins for Kids and its history, but just to bring you up to date. Coins for Kids is a local charity that provides Christmas presents to less fortunate children in our community. The program began in 1990 by a small group of Kony radio employees who saw a need to assist to a small group of needy children in the community. That first year the Coins for Kids volunteers raised $2500 and shopped for 10 families. Last year Coins for Kids raised more than $110,000 and provided Christmas presents for more than 800 families.
One of the questions that we receive every year is “Where do you get the names for the children that you help?” Last year we changed our application process from an open enrollment system to a system where the individuals are identified by their clergy, school counselor, teacher, or other approved organization. This system was a marked improvement and we were able to work directly with those who know of families who are in need of assistance at Christmas and it also helped us avoid duplication with other organizations.
We are looking forward to another successful year of fundraising and providing Christmas for less fortunate children in our community. We know that this year may be a little more difficult for attaining our goal of $110,000 due to the economy, but we will do the very best that we can with the money that we raise.
To learn more about the Coins for Kids program, visit our website at www.coinsforkids.net. You will find the schedules, the fundraising events, how you can help, where you can donate, donate on-line, and the history of the program.
Habitat for Humanity Re-Store
Posted at 9:33 AM, Nov. 23, 2008
Habitat for Humanity of Southern Utah just recently opened their new “ReStore” at 270 E 1478 South (off Riverside Dr). Habitat ReStores, according to Habitat for Humanity’s website, “are retail outlets where quality used and surplus building materials are sold at a fraction of normal prices. Proceeds from ReStores help local affiliates fund the construction of Habitat houses within the community”.
The materials that are sold at the ReStores are generally donated by local building supply businesses, and individuals such as contractors, sub-contractors, demolition crews, and homeowners who are remodeling their homes. The ReStores not only benefit the Habitat organization by helping fund the construction of Habitat homes, but they offer drastic savings of building supplies to the community at large. Plus, these stores help the environment by recycling usable materials into constructive use.
If you are undergoing a remodel project and are wondering what to do with your old cabinets, lighting fixtures, plumbing fixtures, appliances, etc., please consider donating them to the Habitat ReStore. They can sell them to someone who can use them, which helps them fund the construction of Habitat homes in our community, and you get a tax write-off. It is a win-win for all concerned.
For more information about Habitat for Humanity or to donate to the ReStore, call 674-7669. For really great deals on building materials, be sure to visit their new store soon
Real Estate happenings at The Legacy Nov 2008
Posted at 4:54 PM, Nov. 12, 2008
On November 12, 2008 there were 8 homes for sale through the MLS and 1 for sale by owner. The homes that were listed through the MLS are as follows:
Dover Way, 1389 sq ft for $210,000 on the market for 156 days
Legacy Dr, 1933 sq ft, on golf course, foreclosure, $229,000 on the market for 58 days
Hampton Dr, 1400 sq ft, corner lot no views, for $269,900 on the market for 94 days
Legacy Dr, 1829 sq ft, on golf course, for $289.900 on the market for 59 days
Hampton Dr, 2430 sq ft on golf course for $319,900 on the market for 365 days
Windsor Dr, 2690 sq ft with views for $369,000 on the market for 10 days
Legacy Dr, 2444 sq ft, brand new w/views, for $369,000 on the market for 73 days
Hampton Dr, 2900 sq ft, with views for $409,900, on the market for 188 days
Life in Southern Utah
Posted at 3:43 PM, Nov. 12, 2008
THIS IS NOT A SPIELBERG MOVIE SET, THIS COULD BE YOUR BACKYARD!!
Homes with this backdrop have never been more affordable!
435-680-5178 Search the Southern Utah MLS
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