December 31, 2009

The Close of the Year Brings the Close of a Transaction

Posted to Ogden, Steve Randall

Yesterday I attended what most people call “a closing.” In this case the client was the family Trustee for a home where the parent had passed on, leaving the property vacant. The home that sold was located in the Day Break Complex in South Ogden. During the time we were at the “closing” the escrow officer asked if this would be my last “closing” for the year. I pondered for a few seconds realizing that this year was almost over and that I would be starting over with more closings… but all would be into 2010.

The client and I began to talk about “closings” in general and I thought it would be good to review the differences between “closing” and “settlement” because it can be important to know the differences.

Yesterday, we were actually at “settlement” even though most people (including most agents) call it a “closing.” Settlement is where the parties involved in the transaction meet with a title escrow officer who reviews the paperwork including lending documents and the HUD-1 Statement to be sure all is in order. The Buyer and Seller meet with their respective real estate agents in a comfortable conference room… normally at different times and often with different title companies. Once the documents are all signed and there is total agreement, the property is then recorded by the County assessor and the money is sent to the parties as outlined in the Settlement process which took place earlier.

The recording process and the distribution of money is called “closing” in Utah. In this case both processes took place on the same day but in most cases there can be a 24 to 48 hours difference in time between settlement and closing.

Once the house is “closed,” the buyer becomes the new owner of the property and can begin to move in. The transaction is for all general purposes considered to be complete.

Closing is the ultimate goal for the seller and the buyer as the seller gets the money for the property and the buyer is anxious to receive title to the new home.

As we close this year we wish everyone a happy and prosperous New Year with many successful “settlements” and “closings.”

Posted By: Steve Randall


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December 30, 2009

The Absorption Rate of Homes and Pies!

Posted to Ogden, Steve Randall

Each week we pick up five or six pies made by our Layton Marie Calendar’s Restaurant to serve to our clients when they visit our office. So if you are ever hungry just stop by the office and ask for a piece of pie! It is our way of saying thanks to our valued customer base. The interesting thing about pies is the rate at which they sell is dependent on the time of year and the specific holiday. Shortly after Thanksgiving I asked our local manager, Diane, how many pies she sold over the three-day Thanksgiving weekend? I knew they were busy and I was thinking that they might have sold 500 pies or more! I cajoled Diane let me know her count and was shocked to learn that she lead the restaurant chain with 9,645 pies sold in that three day period! On a subsequent visit after the Christmas Holiday, Diane reported that they had sold over a 1,000 pies which was good for this particular holiday but nothing like Thanksgiving. I learned that selling pies, like selling real estate, is dependent on the time of year and the particular holiday. Thanksgiving is the holiday that leads the way as the best time to sell pies.

In real estate we also measure the rate of sales just like Diane did with her holiday pies. The rate of sales is called the “Absorption Rate” and before we give any of our sellers or buyers information on the best time to list a home or to buy a home we always look at the absorption rate for their particular neighborhood. The newly updated MLS system allows each of our agents to quickly calculate the rate of homes for sale in any area and also gives the rate of sale by the price range homes are listed.

In a balanced market the rate of sales ratio is between five and six months of inventory. A lower ratio number means that inventory is scarce and the market favors the Seller. When the number is above six then inventory is more plentiful and it becomes a Buyer’s market forcing Sellers to compete on price, home condition, and the payment of some or all of the closing costs. Knowing the absorption rate is critical information for any Buyer or Seller to know. The Absorption rate is also an indication of whether prices are appreciating or depreciating… and the rate of that change.

The actual absorption rate is calculated as follows according to the MLS definition:

Absorption Rate is the ratio of the number of listed properties (Actives) to the number of sold properties over a given length of time. Absorption Rate is an indication of Inventory or Supply.

Total No. of Current Actives X No. of months back
————————————————————————— = Absorption Rate
No. of U. C.’s + No. of Sold’s

In a closing today in South Ogden, the absorption rate for this price home was 11.68 for the past 30 day period. That means this area was a strong Buyer’s market. The Seller’s property was priced for the current market and sold before year end while three other properties in the area remain on the market with no offers. In this case the Seller paid closing costs and the property was maintained in good condition so that it stood out against other homes currently for sale. Just like pies move faster at Thanksgiving, homes in the summer months move faster as well. Add the additional incentive of the tax credit and home sales really increased up to the end of October. The Absorption rate for the summer was in the eight range versus an eleven range after Thanksgiving.

While a lot of people normally pull their homes off the market in the winter in Northern Utah, the tax credit may be just the incentive this winter season to keep the home on the market so that buyers will have more inventory to choose from.

If you would like more detail on appreciation rates for your area or the absorption rate for your neighborhood in order to make a decision to buy or sell, please contact our office.

Posted By: Steve Randall


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November 17, 2009

For Rent!

Posted to Justin Stevenson, Ogden

Renting a property may sound easy to some people but to others it is one of the hardest things they ever have to do. Also many people are scared to rent out their home because of all the horror stories that are out there. I am not saying that horror stories don’t exist in renting out your home, but if the property is managed right many of the headaches that owners of rental properties normally have can be handled. In the current real estate conditions, many people are turning to property management companies to help them with their investment. The key to successful property management is a good system for every procedure along with a good support team. Many times investors who have rental properties lack the ability to enforce the contract that the tenants sign. As a Property Manager there is a fine line between a friendly relationship and business relationship and it is very important to always have control of the business aspect in the rental property.

One important step when it comes to renting out a property is making sure that the prospective residents are qualified for the property. As a member of the Good Landlord program here in Ogden city, one of the requirements for a landlord is to run a background on every client that would like to rent the property that is over the age of 18. The screening process can really make or break the future of that rental property. There are a few things that we check to make sure that we are renting to good qualified residents. The first thing we check is their credit to make sure there are not any outstanding collections or bankruptcies. The next thing we look for is to make sure that the client does not have any criminal background. One other thing we check is their rental references from a past landlord. Finally, one of the last things we check is the client’s income and their current place of employment. Now, each property management company and landlord has different expectations or qualifications for the clients that would like to rent their properties. It is just a matter of setting the standard and sticking to that standard for every client.

I enjoy being in the business of property management and I love helping people with their investment properties. I take pride in the skills and training I have developed over the years that I have been doing this and I am grateful for the experiences I have had. If any of you have any questions about property management please contact me by email at justin@welchrandall.com.

Posted By: Justin Stevenson


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November 03, 2009

Home Prices Again Show Appreciation in South Ogden and Riverdale!

Posted to Ogden, Steve Randall

While most of us prepare to head to the polls to vote today, there is some good news for residents living in South Ogden, Riverdale, and some Ogden areas. Single family homes in zip codes 84405 and 84403 show home prices appreciating at 3.3% and 3.8% respectively. South Ogden has shown appreciation in each quarter this year while the Riverdale areas appreciation rate started in the second quarter of this year.

In other areas of Weber County, prices this year have declined from 1.9% in North Ogden to as much as 23.4% in the Marriott/Slaterville area. There are still negative pressures for South Ogden and Riverdale due to unemployment concerns and an economic recovery for the private sector but these areas at least may be showing price appreciation and may have reached their low point in value last year.

To track home values since 2003 for any Zip code in Northern Utah just click here. This is a great day to exercise our rights as citizens to choose our elected officials. Enjoy that right by voting and go to the polls knowing that recovery has started in some areas of Northern Utah. For market information about your specific neighborhood or your home please send me an e-mail.

Posted By: Steve Randall


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October 28, 2009

Fernwood Hollow Subdivision

Posted to Brad Sears, Ogden, Salt Lake City

Over the years many homeowners have taken their search for homes north of Salt Lake City for the simple idea of getting more home for their money, a chance to escape the fast paced city life and a quiet place to raise a family. The little extra commute time was a small sacrifice compared to all the benefits. Years down the road each little town and city got more populated, faster paced and a lot busier. Now people are moving further and further north for a chance at a life they grew up with. However, I’d like to tell you about an amazing neighborhood nestled in the upper hills of East Layton called Fernwood Hollow. Located only 20 minutes from downtown Salt Lake and 15 minutes from downtown Ogden, this East Layton neighborhood encompasses this lifestyle and a more convenient location.

Fernwood Hollow is a matured East Layton subdivision that offers peace and tranquility, and is hidden away by the vast amount of trees and gullies. It seems nearly invisible from the busy fast paced city life. All the homes have their own unique look, lot sizes range from .50 to over 1.00 acres and home prices range from $230,000 to $800,000.

This East Layton neighborhood is close to hiking, biking and horseback riding trails as well as within 7 minutes of three water parks (Layton Surf and Swim, Cherry Hill and Lagoon A Beach a division of Lagoon Park). Cherry Hill and Lagoon Park also offer many other activities, rides and more. Snow skiing, water skiing and camping are all within a 30 minute drive.

Fernwood Hollow has quick easy access to Highway 89, I-84 and I-15.

Visit my Fernwood Subdivision website to view a full tour of the neighborhood, plat maps, school information, local business, demographics and available homes for sale.

Due to the popularity of East Layton and Kaysville the averages show that homes in this particular neighborhood sell within 4 months which indicates good movement and a stable market according to the absorption rate. To view the homes for sale in this neighborhood, visit my website and click on the Fernwood Hollow Subdivision.

Posted By: Brad Sears


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June 30, 2009

Creating Memories in Weber County

Posted to Brian Morris, Northern Utah Recreation & Attractions, Ogden

During the years of ‘87 through ‘89, my friends and I took up the sport of skateboarding. We were a crazy bunch of kids with lots of ambitions and dreams. We idolized the likes of the Bones Brigade and other famous pro skaters. Our days were either spent skating at the local high school, making the three mile trip to Village Fair (local skateboard shop), watching skate videos or spending hours at the magazine stand looking at Transworld and Thrasher Magazines. Ours was a world formed around our Ogden neighborhood and everything outside of that area was foreign. I still consider those the best days of my childhood.

Why would you want to know about a bunch of bratty kids and their skateboarding adventures? Well, it’s not that what we did was significant or important (it really was to us), as much as it was that our neighborhood created memories. It was an area of safety for us; an area where friendships were formed and still remain strong today.

My feeling is that Ogden, North Ogden, Pleasant View, Harrisville, Plain City, Roy, West Haven and other Weber County cities still provide these neighborhoods of memories. These are communities that offer many activities throughout the year, including Independence and Pioneer Day activities. These are communities that have swimming pools and community centers; many of which have been built in recent years. These are communities that are close to recreational areas that offer biking, hiking, skiing, snowboarding, boating and camping. These are communities with great educational and higher educational institutions. In short, these are communities that offer opportunities to create memories.

I have been fortunate enough to live my entire life in this area and love it abundantly. Many of my friends who have moved out of state yearn to be back in this area which helped form our lives. I know life changes; however, I never let an opportunity to create a memory in this area pass by. In fact, almost every Saturday, my children and I make it to the North Ogden Skate Park to create our memories.

Posted By: Brian Morris


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March 02, 2009

Single Mom Knows Now is the Time to Buy!

Posted to Ogden, Steve Randall

One of my regular Saturday activities is showing buyers homes! It is one of the best parts of my job, especially when I get to work with a single Mom and two cute children like I did yesterday. A home on Harrison Blvd in northern Ogden had caught their eye. The Seller had gone to a lot of work to add a marble Jacuzzi bathroom, new tile, and some creative landscaping. The view of the mountains from the living room was clearly a plus. The draw-back for my clients was that the backyard was not fully fenced and it was on busy Harrison Blvd. Here is more property information and a virtual tour of this home. It is priced to sell at $170K but that busy street will cause some to think before paying that price.

The second house we saw was just to get some comparison for the same area. This home, located at 1275 N. Willard Peak Drive in Ogden is listed at $172,000. This home has a newly finished third bedroom, a fully fenced backyard, and safely off the busy road of the first home. After our little family toured both homes, they eliminated the first from their list because they liked the floor plan and the amenities of this home over the first. I love this neighborhood too because of the good schools and recreational activities in this part of Ogden. If you like road or mountain biking you will like the gentle hills. If you like seeing mountains go straight up from you front window you will like this area as well. Here are the full details on the Willard Peak home. Like this little family, you’ll like the open floor plan, upgraded kitchen, and triple garage. The rock front and high showing rate make this home one of the most popular in the neighborhood.

One thing for sure, I am excited to do more showings with this single mom family until we find just the right place for them to put down roots in Ogden.

For information on how to qualify for an FHA loan contact me directly or review this post on my blog.

Posted By: Steve Randall


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February 20, 2009

All Real Estate is Local!

Posted to Ogden, Steve Randall

No matter what the media reports as national or regional trends, people are most interested in what is happening in their local neighborhood and city. The “All Real Estate is Local” section of this blog is intended to give you local market information. If you can’t find your city or want a specific neighborhood report, please contact me directly.

Ogden, Plain City, Far West, and Harrisville Market Data as of today:

CountyUnit SalesAvg. PriceMedian PriceNew ListingsTotal ListingsMonths of InventoryDOM
Weber54$190,879$169,0007864812.0079
  • Unit Sales = # of units sold in the last 30 days
  • Average Price = The Average price of homes “sold” in this area
  • Median Price = is the midpoint between the lowest price home and the highest price home sold in the last 30 days
  • New Listings= the number of new homes listed in the last 30 days
  • Total Listing = the total number of homes listed in this area currently
  • Months of Inventory is based on the number of months it will take to sell current inventory based on the current sales rate. A balanced market of buyers and sellers is considered to be a number between 5 & 6. We are currently in a buyer’s market.
  • DOM is the average number of days it takes to sell a home in this area.

Here is the latest market data for the five most populated counties of Northern Utah as of the end of January, 2009.

Posted By: Steve Randall


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January 31, 2009

What is the Real Estate Trend in My Neighborhood?

Posted to Ogden, Steve Randall

As promised, we wanted to compare our local real estate market with the national trends recently outlined by NAR and reported in newspapers and websites across the country. One thing I have learned is that real estate is always local and even in a city, there are neighborhoods that will appreciate and there are neighborhoods that will be in decline. There are many areas of the country where real estate is holding its own. Utah is one of those areas that still has it’s troubles but not as great as many areas of the country.

In Davis County (Fruit Heights, Kaysville, and Layton), we have run the market numbers this year as they compared with last year’s numbers at this same time.

  • Average Home Prices in 2007 were $255,104; Average Home Prices 2008 was $250,448; down 1.83%
  • The number of months to sell housing inventory has increased from 8.1 months in 2007 to 14.3 months (not a good sign for Sellers) in 2008.
  • The average days it takes to sell a home has increased from 50 days in 2007 to 100 days in 2008

The fact that the unit homes sales number is down from previous years is still a concern but home prices are holding steady and homes are selling when priced a current market value. With over 14 months of unsold inventory the market is pressing housing prices downward.

In Weber County (Ogden, North Ogden, and Harrisville) we see some exciting strength.

  • The average home prices in 2007 were $185,333 and at the end of 2008 they had risen to $188,411, a modest increase of 1.66%.
  • The number of months to sell the housing inventory however has increased from 7.6 months to 17.8 months.
  • The average days it takes to sell a home has increased from 62 days in 2007 to 93 days in 2008.

Northern Utah growth is strong because of a growing population and relatively low jobless rate of 4.3% compared with the national average of 7.2%.

It is still a buyer’s market and sellers must be aggressive in their pricing strategy to attract the current buyer markets. For buyers who are waiting on the sideline, this is the year to purchase that first home and even invest in the first investment property. Davis and Weber County remain excellent places to own real estate. Northern Utah Real Estate Market Update

For more information on appreciation rates in the Northern Utah for the past five years please refer to this recent article in the Salt Lake Tribune. If you would like a free report of how your neighborhood is doing please contact me directly.

Posted By: Steve Randall


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December 05, 2008

Investment Property in Ogden

Posted to Adam Stuart, Ogden

Positive cash flow in today’s economy is certainly on every investor’s mind. In Northern Utah and especially in Ogden City, low priced multi-family properties with solid rents can still be found. For example: I have a side-by-side duplex listed for sale in Ogden. It was built in 2002 and really has the townhome layout. It’s only a duplex so both units are considered end units. Each unit has 3 bedrooms and 2 bathrooms and has 1,335 sq. ft. Each unit has its own one car garage as well. One side is rented out for $750 and the other side is rented for $850. One side of the duplex has been rented to the same residents since it was built in 2002. The 2nd unit has been rented consistently since it was built and currently has a resident that has been there for 2 years. Neither resident has any immediate plans to move-out. The property brings in $1600 in gross rents on a monthly basis! The current list price is $219,000. With any money down and a good rate on financing this could be a great investment opportunity!

The neighborhood is great. Homes in the area were all built from 2000 and on so there aren’t any eyesores in the neighborhood. Utah Transit Authority (UTA) has been working hard to keep our freeways clear and keep costs down. They built a high speed passenger train that gets to Salt Lake from Ogden in about 50 minutes. The Frontrunner station is only about 5 minutes away from this property. There isn’t a homeowners association in the area and so investors have no need to worry about an extra monthly fee. If you check out the Google map you can see the overhead view of the community and see the open areas and location in comparison to the rest of Ogden. There isn’t a single HOA or community fee and there are separate meters for Natural Gas and the electric utilities. It’s not everyday that you come across a good deal like this. The current residents have been great tenants and don’t plan on leaving any time soon. Please contact me if you have any questions or would like to schedule a showing!

Posted By: Adam Stuart


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October 27, 2008

The Many Faces of Ogden, UT

Posted to Ogden

It is no mistake that National Geographic Adventure has recently named Ogden City as “Utah’s New Outdoor Capital.” Located on the confluence of the Weber and Ogden Rivers, between the Great Salt Lake and the towering Wasatch Mountains, Ogden City is a literal playground for outdoor enthusiasts. From skiing the world-renown slopes that saw Bode Miller win a silver medal in the 2002 Winter Olympics to cycling through wildflower meadows and rugged terrain on the scenic Skyline Trail, adventuresome Ogden residents know no boundaries. The city offers three major ski resorts—Snowbasin, Powder Mountain, and Wolf Mountain—as well as versatile recreation facilities like the impressive Salomon Center, all of which has made Ogden a household name for adrenaline junkies all over the world.

But besides its ideal atmosphere for sports and outdoor recreation of all kinds, Ogden is also becoming quite famous for its cultural attractions, fascinating Western heritage, and the wonderful renovation that has taken place on the historic Ogden 25th Street. Once full of shady characters that even Al Capone claimed were too wild for him, Ogden’s 25th Street now stands as a pristine point of pride for the city, featuring a variety of eclectic, locally-owned shops, restaurants, galleries, and exciting nightlife venues in a collection of buildings that date back to the turn of the 20th century. The street boasts a thriving performing arts scene supported by the enchanting 1920s-era Peery’s Egyptian Theater and the top-rated Wiseguys Comedy Café, and throughout the year residents and visitors enjoy many cultural Ogden events, such as Friday Night Art Strolls and the Foursite Film Festival. For those with a penchant for the past, 25th Street is home to the historic Ogden Union Station, which is no longer in operation, but is treasured locally as a monument to Ogden’s railroading history. The station houses six unique museums and rare historic collections; including, the Utah State Railroad Museum and Eccles Rail Center, the John M. Browning Arms Museum, the Browning Kimball Classic Car Collection, and more. Whether you enjoy browsing fine art, shopping high fashion, or expanding your knowledge of the Wild Wild West, Ogden’s Historic 25th Street is the place to be.


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