Common mistake #1:
The best ‘deal’ is the home with the lowest price per square foot…

Reality:
Sometimes this can be a helpful statistic to look at but unfortunately, in most cases, you get what you pay for. Did you know that it can cost you 10% in value and 5% in time when trying to resale a property on a busy road? Is the home a lower price because it is located near an especially odorous farm? Is there another reason the home is discounted, like a sex offender located nearby? It is important to dig a little deeper before making an offer based only on price per square foot.

Common mistake #2
Buying a short sale is always the way to go…

Reality:
Sometimes buying a short sale can be a good investment but there are definitely some things you should know before you get into this game. First of all, most short sale contracts allow the seller to continue to market the property. What this means is that you can put in an offer and then after waiting several months for the bank approval, another buyer can put in an offer that nets the bank $2 more and you find yourself on the outside looking in. Another thing to consider is that while you are waiting for the banks approval, interest rates can climb and eat away everything you are trying to save by buying a short sale. In most cases in Cache valley, homes being sold short are not the best value.

Common mistake #3:
Buying a property being sold ‘by owner’ saves you money

Reality:
Although you may occasionally find that owner who doesn’t know the value of his home and actually prices it under true market value, most of the time, they have gotten advice on pricing from several local agents. So, the prices aren’t better and now you are dealing with a seller with little or no experience in escrow, financing, disclosure laws, or contracts. I recently spoke with a distraught buyer who didn’t find out until 3 weeks after closing that the home he bought had fire damage. He is now waiting for his court date after a few frustrating phone calls to the prior owner yielded no fruit.

For additional common buying mistakes and solutions, send a request to Email Me or call 435-232-0427

Well, I put together a simple spread sheet to work out the numbers and here it is:

Rate                      4.5%               5.0%                5.5%                 6.0%
Loan Amnt   200,000     200,000        200,000        200,000
Term (yrs)           30                 30                      30                      30
Pymnt P&I    1013.37       1073.64          1135.58           1199.10
Difference             0                60.27              122.21              185.73
Loss in
Purchase Power 0            11,227.79      21,523.49        30,978.38

In other words, if a person qualifies for a $200,000 mortgage at 4.5% with a payment of $1013.37 and rates increase to 4.5%, that same payment will only get them a $188,772.21 home after the rate increase.

Shockingly, if rates increase from 4.5% to 6%, that same payment will only buy a $169,011.62 home.

Time, in our market, will definitely cost you money. If you haven’t hired an agent because you are worried about paying the fee, you may want to consider all of the relevant facts and see what you might lose if it takes you a while to sell.

Tip #1: Know what you want before you start
One of the quickest ways to become overwhelmed is to start looking at every home on the market. There are far too many to choose from and before you know it, you will find one that is emotionally appealing. You might get caught up in the excitement of the moment and make an offer on a home that you might not have chosen if you had pre-planned what you wanted. If you are a couple you should sit down with your significant other and make a list of ‘must have’ and ‘would like to have’ in a home. Combine the lists and come up with your ‘best choice’ home. Don’t look at homes that don’t meet your criteria. The Multiple Listing Service websites can get very specific and you can narrow your search saving you wasted time and money looking at homes that won’t work for you.

Tip#2: Search the web
Today’s real estate market is getting very ‘tech’ savvy. Almost every home on the market today will have pictures or a video tour on the web. Realtor.com is a fantastic website with features to help you narrow your search. By spending a few minutes each evening you can ‘preview’ your favorite homes, a convenience which would have been impossible just a few years ago. Use tools like Google maps and mapsexoffenders.com to get a ‘bird’s eye’ view of the neighborhood. You may find the perfect house and find out that it is in a criminal hot spot surrounded by sex offenders.

Tip#3: Find a knowledgeable agent
Some people may be reluctant to hire an agent to help them find a home. With the ability to search homes on the web and narrow your search, you might be tempted to go it alone. I would discourage you fro m this type of thinking. A knowledgeable agent can help you determine the right offer to make to have the best opportunity at a successful transaction. They can ensure you don’t run into the dangerous pitfalls in the paperwork. Transactions are more complicated than ever, making a mistake on an offer to a bank can cost you. They may often know of the best values on the market because they see so many more houses up close and personal. Keep in mind that not all agents are created equal. It may not be in your best interest to hire a ‘friend’ or a ‘family member’ who dabbles in real estate. Seek out the best agents in your area. There is a reason they are successful.

An important idea I want to understand is that your closing costs on Cache Valley homes for sale may be one issue that could be negotiated with the seller.  In your offer, you might ask seller to pay certain charges or to pay a certain dollar figure toward your costs or a percentage of the purchase price toward them.

Just remember that sellers of northern Utah real estate have their own closing costs and are paying all commissions, so they will be looking for the cleanest offer.  If your offer asks him to pay all of your costs and someone else offers the same purchase price but will pay more of their own costs, he will likely choose to accept the other offer.  So your offer should be drafted carefully and thoughtfully.

If the Cache Valley home that is for sale has been on the market for awhile with no offers, it may be easier to ask for more of your costs or simply to offer a lower purchase price and pay your share of closing costs.  Each situation is different.  Your Realtor will help you make your decisions.

Also, if you are currently paying rent, it may be costing you money that you will capture when you purchase northern Utah real estate.  Your loan payments will begin to increase your equity, and you will receive tax benefits as a property owner, among other financial benefits.

So, your first step should be to meet with a lender of your choice to see how much house you can afford and how much cash you will have to have available.  If you have a Realtor in mind, like Rod Moser of Powerhouse real estate, that person may be able to recommend several lenders from which you can choose if you wish.

This is an adventure you will enjoy and you will be very happy that you embarked on it if you find a Realtor who can walk you through it and remove the fears.

Escrow will thereby assure that you receive a clean title to the Cache Valley home, with no outstanding liens except that which you incur with your lender.

The title company will do a title search on your Logan Utah real estate during escrow and guarantee that there are no secret liens that no one knows about.  They will issue you a policy of title insurance to protect you and your lender against any liens that might not be covered by their title report.  There are seldom any, but if you later discovered an encumbrance that did not appear in the report, you would be able to turn to the title company to indemnify you against it and negotiate on your behalf.

Your escrow and title costs will include the fees to those two companies for their services, which are based on the purchase price, any prorated taxes and insurance not included in the loan costs, document preparation, delivery and recording costs, notary fees, any inspection fees not paid for at the time of service.  These could total about one and one half to two percent of the purchase price. Your Realtor can help you get a rough estimate of these costs depending on the offer you want to make.

It is wise to know your budget before you go hunting for a Logan Utah home – both your monthly payment budget and the amount required in cash. In other words, know what you have for both closing costs and monthly costs. Why so early? What’s the rush? Why can’t I look now and qualify later?

Big acquisitions can come with big expectations and big disappointments. Broken hearts and wasted time can both be avoided if a serious buyer of real estate in Logan Utah is well prepared before he / she falls in love with an unreachable prize. Why look if you can’t get the goods?

The monthly costs of shelter are familiar to most people. Whether you’ve been paying rent, a lease or a mortgage on another house, you’re probably familiar with the concept of a monthly payment. When you purchase real estate in Logan Utah, you are blessed to get acquainted with another cost. Closing costs.

Closing cost could run from anywhere from one to four percent or so, based on your credit, your down payment and your type of loan and whether you’re required to carry mortgage insurance.  Other issues may affect those costs as well, but in general loan costs include:  loan origination fees, any charge for negotiating a lower interest rate, credit reports, appraisal, and prorated homeowner’s insurance and property taxes, plus various administration expenses like delivery and other smaller costs.

Closing costs may not prevent you from buying, but then again, they might. Know where you’re headed when you start down the path. Meet with a lender before you hunt.

Closing costs are those extra costs that you have to pay above the sales prices of the property. Generally, there are two main categories of closing costs for a buyer.  First, there are costs related to the escrow. Second, there are costs incurred because of your loan. Some of these fees occur in every transaction and some of these charges are determined by the type of loan you receive.

In every purchase, costs are incurred to pay for the transfer of ownership from one party to another. Escrow fees will become part of any purchase that you pursue. However, if you take out a loan to buy a home, there will be a second layer of closing costs. The amount of those additional costs depend on the type of loan that you get, your credit worthiness, and the amount of your down payment that you can invest.  If you will be paying all cash, these costs are not involved. These are some of the questions that you’ll want to consider if you’re leaving a Logan Utah apartment.

The first concern to clear up is the issue with paying an agent. Agents perform a valuable service. Just like any agent who performs a service of value, they deserve to get paid. The good news is that the entire commission in a transaction is typically paid by the seller. That means that there is no fee added to the sales price to compensate the realtor.  Absent a separate agreement you make, which is uncommon, you (the buyer) will not pay any commission to the Realtors/real estate agents. Their service is free to you.

When the seller retains the services of a Realtor to help them to sell Logan real estate, they sign a commission agreement which states the total amount of commission the seller will pay.  If that Realtor finds a buyer himself, he will collect the entire commission.  If the buyer is represented by her own Realtor, the seller’s Realtor will have to give the buyer’s agent a share of that commission when the escrow closes.

Some buyers feel that they can get a better deal if they don’t use the services of their own Realtor to assist them in finding a home, negotiating the deal and preparing the piles of paperwork involved.  The truth is often just the opposite.

Representing yourself when buying your home can be a terrifying and risky experience. If you’re new to real estate, it would almost be irresponsible. You’re probably unfamiliar with the terminology, legal documents and negotiation norms and law. All of these have binding legal consequences.

Some people who have bought other homes may feel that they have gone through it before so they can do it on their own, but this can be dangerous. Laws change constantly, forms are amended, each real estate transaction has different nuances and applicable statutory rules. All of these disclosures are required for the deal to become valid. Are you confident that you know all of that?  Another cornerstone of real estate purchasing is the reminder that the services of an experienced Realtor are FREE to you as the buyer.

So, don’t take the risk or the hassle, do the smart thing and find a Realtor to help you.

In talking to first time home buyers, it’s common to hear sincere concerns. They want to buy a Cache Valley home that is for sale, but well meaning friends and relatives will spook them by reminding them of the closing cost beast. “Those costs will break you” they say, and “you never know how much they’re going to take until it’s too late”. Pretty scary stuff, huh. Next, the closing agent will suck the air out of your lungs and sell your blood plasma. It may happen is Southern Utah, but not here in Northern Utah.

Occasionally I have encountered people who are so intent on getting the very best deal when they buy a house that they want to make dozens of offers, all of which are far, far below the list price (I spoke with one agent whose clients refused to offer more than 50% of any list price).  I have difficulty considering these folks as serious buyers, and if I determine that this is their plan, I might decline to work with them.

I don’t encourage my buyers to make extremely lowball offers on Cache Valley homes for sale, but I can advise them on what I feel the property is worth and what it will likely sell for.  I have usually already checked the comparable sales and have a good felling for what the sale price should be.

If they would like to have the house but we agree that it is listed too high, and if they don’t want to pay listing and would otherwise reluctantly move on and leave “their” house behind, then I will suggest that we can make a lower offer that is somewhere between what they might have originally offered and the list price.

That plan doesn’t make them terrible people, but it is unlikely that any of their offers on Logan Utah real estate will be accepted, and I feel that would be a waste of my time and theirs.  I don’t mean to say that I won’t write a low offer, because I will when I feel it is appropriate.

If they are afraid of the reaction or think the seller might be offended by a low offer, I always remind them that the worst that will happen is that their offer will be rejected, but it also might be either accepted or countered.  Then they can make up their mind what they want to do.  I try to lighten the mood and relieve the stress by reminding them that the seller will not punch them out or anything, so they might as well try it if they really have an interest in this house.

It is always good to remember that buyers and sellers are usually not professionals at this, and it is very stressful for them.  I feel that my main duties to my clients are to know what I’m talking about and to help them reduce the stress by getting them to a complication-free transaction whenever possible.  A positive attitude can make even a very bumpy one be enjoyable when looking to buy Logan Utah real estate.

Nearly every transaction will have some bumps in the road, but the most important thing is to see them as mere bumps and not obstacles.  Communication is key, as clients feel much less stress when they simply know what is going on and know that I am handling whatever comes up.

My feeling is that we, as Realtors, cannot SELL a house.  We can expose our Cache Valley homes for sale to as many people as possible, and we can show homes to our buyers that seem to fit their needs and wants.  Then they will decide what they want to do and if they can possibly do it, it will likely get done and the buyers and the sellers will both be happy.

And that is my goal, and the reason that you will see that my motto is “Happy clients make me happy.”