March 19, 2010

Calculating and Analyzing Absorption Rate

Posted to Brad Sears, Buyers, Sellers

Have you ever wondered how fast homes are selling in your neighborhood right now? There is a way to measure it that will tell you which way the market is heading. Absorption rate is the measurement of the rate of sales in any neighborhood. For example, if 50 homes are sold in a month’s period, and there are 100 homes for sale in the market place, the absorption rate is 2; meaning that there are two months of inventory currently in the marketplace.

A balanced market of buyers and sellers is defined at 5-6 months of inventory. A “2” absorption rate means that the sellers have the advantage. A “9” means that the market favors the buyers and sellers can expect to discount their property values in order to sell their home. Included is a chart that show how the absorption rate can also indicate if the market is appreciating or depreciating.

For specific information on your neighborhood please contact me for a free absorption report.

Posted By: Brad Sears


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March 16, 2010

Short Sales and Foreclosures --- A Trend or Tidal Wave

Posted to Buyers, Sellers, Short Sales / Foreclosures, Steve Randall

Short sales are not new to real estate practitioners but the number of foreclosures and short sales on the Northern Utah market currently is higher than we have experienced in many years. The economic conditions have resulted in job loss and pay reduction for many causing a rise in delinquencies and stress on homeowners. In 2009, nationally, there were 1.9 million properties where foreclosure actions were started. This year the number is anticipated to increase. We certainly are seeing our share of short sale and foreclosures in Utah.

What is a foreclosure? Some may think of a foreclosure as a greedy lender taking over an owner’s home. Others may think of abandoned properties that cause a loss of value to the neighborhood and community. Still others may see this as a way for buyer’s to pick up properties on the courthouse steps for pennies on the dollar.

A simple definition of a foreclosure is a legal process whereby the borrower is deprived of their ownership interest in a property because of nonpayment.

The reality of the situation is that lenders really do not want these properties back on their books and with some exceptions, most buyers pay close to market price for homes that are in good condition. Short sales, by definition mean that the borrower owes more on the home than the home is currently worth in the marketplace. As property values decline, more and more northern Utah homeowners are facing this possibility.

Many borrowers work with their lenders to negotiate a short sale rather than letting the property go into foreclosure. A short sale allows the borrower a way out of the mortgage with less impact on the borrower’s credit and allows the borrower to re-enter the marketplace in 2-3 years.

A foreclosure will be on the borrower’s record for at least seven years and can have a negative impact on the borrower’s credit of 200 points or more. As of April 5, 2010, the Federal Government is encouraging lenders to pursue the short sale remedy first before taking the foreclosure option.

There are many websites that give information on how to proceed with a short sales or foreclosure. For information on foreclosures in Utah click here.

For more information or assistance with a short sale or foreclosure action please contact me at your earliest convenience.

Posted By: Steve Randall


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January 05, 2010

Millstone Manor

Posted to Buyers, Justin Stevenson, Sellers

In the 84404 area there is a condo subdivision that is one of the greatest places to live in this area. This subdivision is called the Millstone Manor. The Millstone Manor was built in 1986 but looks and feels a lot newer than that. The location of the Millstone Manor is one that covers it all. With the condo location right at the month of the canyon is makes it easy to zip up the canyon to go skiing or snowboarding at the local ski resorts such as Wolf Mountain and Powder Mountain, also during the summer it allows you to fish and ski on the Pineview Reservoir. On the other hand the Millstone Manor is located close to I-15 as well as downtown historical 25th St. At the Millstone Manor during the summer you may see a lot of happy people because there is a pool located in the middle of the subdivision that helps keep the residents cool on those hot summer days. One other benefit we can’t ignore is the property backs right up to the Ogden River which makes Millstone Manor residents feel as if they are at one with the nature.

In the Millstone Manor subdivision there are currently six properties that are on the market for sale. Of these six there are many shapes and sizes. One property that I would like to tell you a little more about is unit number ten in building one. This property is a two bedroom one bathroom condo that has the best view of the river in the whole complex. This property is currently listed below the rest that are for sale. Unit number ten is listed at $72,000 and would make any family happy.

If you are currently looking for a property in the Ogden area then Millstone Manor is the place for you. If you would like more information about unit #10 that is listed for $72,000 please call or email at 801-710-8081 or justin@welchrandall.com.

Posted By: Justin Stevenson


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September 01, 2009

What Two Factors Sell a Home

Posted to Sellers, Steve Randall

For the past several weeks we have been running about Northern Utah showing properties to those who want to take advantage of the $8,000 tax credit. The rules are that you need to be in your home by November 30, 2009 to qualify. This is free money to incent the purchase of real estate. As a result we are busy trying to find just the right home.

One of our clients is looking for herself, her mother, and her aunt and we have looked at homes in Weber and Davis Counties in the $150,000 range. Several of these homes we have liked have already gone under contract because there are other buyers out there as well. Lesson learned is that if you like it make an offer now and not come back in five days after looking at other homes.

As we have looked at many homes I have watched my buyer carefully review each home with an open mind thinking to herself how this home might meet her family’s needs. We have been to some very good homes and a couple that we wonder will ever find a buyer. One home we visited was in such bad condition that we opened the door… were hit with smells that made us turn right around and leave. As we backed out of the driveway and pulled away an officer turned on his squad car lights and pulled us over. He wanted to make sure we weren’t the owners… or dealing drugs as some of the neighbors had complained about after hour visitors. We assured him that we were upstanding citizens and he let us move on to our next house! What drew our buyer’s attention to this house? It was the price. What turned her to another home? It was the condition of the home.

This may be an extreme example, but the two factors that attract buyers in this market are price and condition. If it is not priced to sell and the condition is not good… buyers move on to the next property. The best advice to give our Sellers is to price it right and see that the condition of the house is the best it can be.

Later we visited a home that was priced right and in very good condition and that is the house she made the offer on! Now you know… Price and Condition!

Posted By: Steve Randall


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