Utah Real Estate Tip – there are no “easy” transactions.

Utah Real Estate Tip – there are no “easy” transactions.

 
 

Real Estate Legal Tip – there are no “easy” transactions.

Some people say that when the market is hot, “I can sell my home myself,” or “I don’t need an experienced agent because it costs money,” or “how hard can it be?”

Curtis Bullock From the Salt Lake Board of Realtors® Writes 

I can tell you that after being an attorney in this industry for almost two decades, there are no “easy” transactions in real estate right now – even in this hot seller’s market. Selling or purchasing a home requires a unique skill set and knowledge base to ensure the transaction goes smoothly. If you have recently purchased or sold a home and felt like it was easy, it’s probably because your Realtor® was solving problems left and right behind the scenes without you knowing about it.

I’ve shared this before, but here is a list of potential trouble spots your Realtor® will help you avoid when purchasing or selling a home. I’ve seen most of these happen when a seller or buyer tries DIY’ing the purchase or sale of their home:

* Seller misunderstanding what “as-is” condition means.
* How to deal with multiple offers.
* Husband or wife didn’t sign the REPC. Causes dispute over validity of the contract.
* CC&R’s not given to buyer causing problems.
* Seller disclosure form not delivered to buyer by the deadline. Causing lawsuit.
* Buyer not reviewing the Commitment for Title Insurance.
* Seller not providing Buyer Agent with Commitment for Title insurance by the deadline.
* Double contract. Loan fraud.
* Not using the correct contract or disclosure form in the appropriate situation.
* Buyer’s receive the key prior to recording, funding doesn’t occur, dispute arises.
* Buyer moving from out of state on friday to Settle at title company, doesn’t fund until Tuesday (Monday is a holiday) and becomes upset.
* Confusion on how the Time Clause Addendum works. Causing a disagreement.
* Lease agreements not provided to buyer before seller disclosure deadline.
* Low appraisal. Buyer sends notice of cancellation but forgets to include the appraisal.
* Multiple offers. Seller puts the property under contract with two buyers at the same time. Dispute arises.
* Counter offer is not withdrawn before accepting another offer. Problem arises.
* 10 different addenda included with the REPC. Confusion as to what has been agreed upon.
* Subject to Sale contingency not satisfied causing a domino effect resulting in two cancelled contracts.
* Missing initials on one page of the REPC causing a dispute.
* Seller repairs not completed. What to do next?
* Not delivering a document by the deadline. Dispute arises.
* Mold in the home detected. Who is responsible? Can I cancel the contract?
* Termites or radon detected in the home. What do I do now?
* No legal access to the lot. Implied easement issue.
* $10,000 earnest money not delivered by the buyer on time. Major dispute arises.
* Money wired and lost due to wire fraud.
* Mechanics lien filed on home that was “recently remodeled.”
* Sloppy language in an addendum causing a dispute.
* Air conditioner doesn’t work.
* Conflict between what is on the MLS and what is in the REPC.
* Multiple offers disclosed without seller approval, prospective buyers back out.
* Seller decides not to sell a week before settlement. Seller default. Lawsuit arises.
* Buyer backing out after deadlines expires. Buyer default. Lawsuit arises.
* Dispute over who pays for the HOA transfer fee.
* Dispute over who pays for the HOA special assessment.
* After Settlement but prior to Funding & Recording, house is vandalized.
* Missing dates on the REPC.
* Can’t get the HOA docs.
* Language on the REPC crossed out causing ambiguity.
* Sections of the REPC left blank causing ambiguity.
* The wrong address listed on the REPC.
* Two addendum number 4 – causing ambiguity and dispute.
* Seller failing to disclose major structural problem with the home.
* Fair Housing issue created after buyer submits letter with offer.
* “TBD” filled in on the REPC in too many places causing uncertainty.
* Poorly filled out forms and contracts causing problems.
* Representing multiple buyers at the same time on the same property causing a conflict.
* Angry tenant when showing a property.
* Seller didn’t accurately fill out the seller disclosure form.
* Checking “Acceptance” on page 6 of the REPC, then checking “Counter” on Addendum #1 that was also included in the offer.

Hiring an experienced Realtor® will be the best money you spend this year.

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Courtesy of

Curtis Bullock
Salt  Lake  Board of Realtors®
Real Estate Tops Best Investment Poll for 7th Year Running

Real Estate Tops Best Investment Poll for 7th Year Running

Real Estate Tops Best Investment Poll for 7th Year Running

Real Estate Tops Best Investment Poll for 7th Year Running | MyKCM

Every year, Gallup conducts a survey of Americans to determine their choice for the best long-term investment. Respondents are asked to select real estate, stocks/mutual funds, gold, savings accounts/CDs, or bonds.

For the seventh year in a row, real estate has come out on top as the best long-term investment. Gallup explained:

“Real estate remains the most favored investment to Americans, as has been the case since 2013, when the housing market was on the rebound. More than a third of Americans have named real estate as the top investment since 2016.”

This year’s results indicated 35% of Americans chose real estate, followed by stocks at 21%. The full results covering the last decade are shown in the chart below:Real Estate Tops Best Investment Poll for 7th Year Running | MyKCM

Bottom Line

The belief of the American people in the stability of housing as a long-term investment remains strong, even through the many challenges our economy faces today.

Economists Forecast Recovery to Begin in the Second Half of 2020

Economists Forecast Recovery to Begin in the Second Half of 2020

Economists Forecast Recovery to Begin in the Second Half of 2020

Economists Forecast Recovery to Begin in the Second Half of 2020 | MyKCM

With the U.S. economy on everyone’s minds right now, questions about the country’s financial outlook continue to come up daily. The one that seems to keep rising to the top is: when will the economy begin to recoverWhile no one knows exactly how a rebound will play out, expert economists around the country are becoming more aligned on when the recovery will begin.

According to the latest Wall Street Journal Economic Forecasting Survey, which polls more than 60 economists on a monthly basis, 85.3% believe a recovery will begin in the second half of 2020 (see graph below):Economists Forecast Recovery to Begin in the Second Half of 2020 | MyKCMThere seems to be a growing consensus among these experts that the second half of this year will be the start of a turnaround in this country.

Chris Hyzy, Chief Investment Officer for Merrill notes:

“We fully expect the economy could begin to pick up in late June and July with a strong recovery in the fourth quarter.” 

In addition, five of the major financial institutions are also forecasting positive GDP in the second half of the year. Today, four of the five expect a recovery to begin in the third quarter of 2020, and all five agree a recovery should start by the fourth quarter (see graph below):Economists Forecast Recovery to Begin in the Second Half of 2020 | MyKCM

Bottom Line

The vast majority of economists, analysts, and financial institutions are in unison, indicating an economic recovery should begin in the second half of 2020. Agreement among these leading experts is stronger than ever.

Experts Predict Economic Recovery Should Begin in the Second Half of 2020

Experts Predict Economic Recovery Should Begin in the Second Half of 2020

Experts Predict Economic Recovery Should Begin in the Second Half of the Year

Experts Predict Economic Recovery Should Begin in the Second Half of the Year | MyKCM

One of the biggest questions we all seem to be asking these days is: When are we going to start to see an economic recovery? As the country begins to slowly reopen, moving forward in strategic phases, business activity will help bring our nation back to life. Many economists indicate a recovery should begin to happen in the second half of this year. Here’s a look at what some of the experts have to say.

Jerome Powell, Federal Reserve Chairman

“I think there’s a good chance that there’ll be positive growth in the third quarter. And I think it’s a reasonable expectation that there’ll be growth in the second half of the year…

So, in the long run, I would say the U.S. economy will recover. We’ll get back to the place we were in February; we’ll get to an even better place than that. I’m highly confident of that. And it won’t take that long to get there.”

Nonpartisan Analysis for the U.S Congress

“The economy is expected to begin recovering during the second half of 2020 as concerns about the pandemic diminish and as state and local governments ease stay-at-home orders, bans on public gatherings, and other measures. The labor market is projected to materially improve after the third quarter; hiring will rebound and job losses will drop significantly as the degree of social distancing diminishes.”

Neel Kashkari, President, Minneapolis Federal Reserve Bank

“I think we need to prepare for a more gradual recovery while we hope for that quicker rebound.”

We’re certainly not out of the woods yet, but clearly many experts anticipate we’ll see a recovery starting this year. It may be a bumpy ride for the next few months, but most agree that a turnaround will begin sooner rather than later.

During the planned shutdown, as the economic slowdown pressed pause on the nation, many potential buyers and sellers put their real estate plans on hold. That time coincided with the traditionally busy spring real estate season. As we look ahead at this economic recovery and we begin to emerge back into our communities over the coming weeks and months, perhaps it’s time to think about putting your real estate plans back into play.

Bottom Line

The experts note a turnaround is on the horizon, starting as early as later this year. If you paused your 2020 real estate plans, let’s connect today to determine how you can re-engage in the process as the country reopens and the economy begins a much-anticipated rebound.

Will Utah Home Values Appreciate or Depreciate in 2020?

Will Utah Home Values Appreciate or Depreciate in 2020?

Will Home Values Appreciate or Depreciate in 2020?

Will Home Values Appreciate or Depreciate in 2020? | MyKCM

With the housing market staggered to some degree by the health crisis the country is currently facing, some potential purchasers are questioning whether home values will be impacted. The price of any item is determined by supply as well as the market’s demand for that item.

Each month the National Association of Realtors (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for the REALTORS Confidence Index.

Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand) during this pandemic.

Buyer Demand

The map below was created after asking the question: “How would you rate buyer traffic in your area?”Will Home Values Appreciate or Depreciate in 2020? | MyKCMThe darker the blue, the stronger the demand for homes is in that area. The survey shows that in 34 of the 50 U.S. states, buyer demand is now ‘strong’ and 16 of the 50 states have a ‘stable’ demand.

Seller Supply

The index also asks: “How would you rate seller traffic in your area?”Will Home Values Appreciate or Depreciate in 2020? | MyKCMAs the map above indicates, 46 states and Washington, D.C. reported ‘weak’ seller traffic, 3 states reported ‘stable’ seller traffic, and 1 state reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the needs of buyers looking for homes right now.

With demand still stronger than supply, home values should not depreciate.

What are the experts saying?

Here are the thoughts of three industry experts on the subject:

Ivy Zelman:

“We note that inventory as a percent of households sits at the lowest level ever, something we believe will limit the overall degree of home price pressure through the year.”

Mark Fleming, Chief Economist, First American:

“Housing supply remains at historically low levels, so house price growth is likely to slow, but it’s not likely to go negative.”

Freddie Mac:

“Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand.”

Bottom Line

Looking at these maps and listening to the experts, it seems that prices will remain stable throughout 2020. If you’re thinking about listing your home, let’s connect to discuss how you can capitalize on the somewhat surprising demand in the market now.

Whats Trending in Outdoor Kitchens?

Whats Trending in Outdoor Kitchens?

 

Outdoor kitchens have been popular for years. Not only do they give you an excuse to enjoy beautiful weather outdoors but they’re also great for entertaining. Having a nice outdoor kitchen can even improve the overall value of your home! While these kitchens were once thought to be a fad, they actually seem to be getting more and more popular as time goes by.

If you’re thinking of adding an outdoor kitchen to your home, you might be wondering how to make sure that your new kitchen fits with the current trends in outdoor kitchen design. While the final decision comes down to you and your tastes, here are a few hot trends to help form the design of your new outdoor kitchen.

 

Rustic Looks Are King

Once upon a time, outdoor kitchens were little more than blocks of brick and mortar with an oven or grill built in. Now they’ve really grown, and their overall look has grown as well. One of the really popular trends in outdoor cooking spaces is to give them a rustic or even semi-rustic look; brick and stone still play a part, but so do aged wood and similar accents like corrugated metal. Brick flooring and rustic whitewashing are also fairly popular, as they give the whole kitchen area a very part-of-the-home feel.

Semi-Outdoor Chic

While some outdoor kitchens are completely separate from the home, one growing trend is to build them into a covered deck area or other space that connects to the home. Adding a bit of roofing and a few partial walls or supports capitalizes on the outdoor feel of the space while still giving you a bit of privacy and control over the space you’ll be cooking in.

Accessible Food Prep

When outdoor kitchens first started becoming popular, the usual approach was to do all the food prep inside and then bring things out to cook. Over time, though, homeowners have shifted toward wanting to do some if not all of their prep outdoors as well. This means that modern outdoor kitchens provide access to counter-space, butcher block cutting boards that are built in to the surface, and other prep-area essentials. They also offer up sinks and other sources of water, and many include mini-fridges to keep fresh ingredients cool until they’re needed as well. Some outdoor kitchens even come equipped with dishwashers to provide beginning-to-end cooking solutions!

Pizza Ovens Remain Popular

A lot of outdoor kitchens got their start as an excuse to install brick pizza ovens, and these outdoor ovens remain popular today. The types of pizza ovens that people want have evolved a bit, however. While you’ll still see plenty of very basic brick pizza ovens, clay ovens and more traditional gas or electric ovens are also gaining popularity. The type of pizza oven you choose depends largely on personal preference, just so long as there’s a place for you to cook a pizza out there somewhere.

Outdoor Storage

One other major trend in outdoor kitchens is an increase in available storage space for various tools and other kitchen implements. Some of these spaces are simple, with shelves or reclaimed crates as a place to hold items temporarily. Others are much fancier, including “windows” attached to the house that open to reveal service settings and everything else you need to enjoy a good meal outdoors. There are lockable storage solutions, open-air storage solutions and just about everything else that you can think of available. Basically, it’s a good idea to include all the storage that you would want in your regular kitchen when building a kitchen outdoors.

 

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