Tips When You Buy in a HOA

Here is what you need to investigate.

As you search for the perfect home, you will most likely find that many of the properties are located in a community or development with a Homeowners Association or (HOA) in the Park City Utah areas.  It is a good idea to find out about why there are so many HOAs out there.  Here is a little background as to why there are HOAs and why having one will or will not be important to you when your are looking at Park City Homes for sale.

In a recent article published by Realtor.com they offered the following,  

“In a nutshell, an HOA helps ensure that your community looks its best and functions smoothly…The number of Americans living in homes with HOAs is on the rise, growing from a mere 1% in 1970 to 25% today, according to the Foundation for Community Association Research.”

HOAs are established with a governing board nominated by those owning in the defined neighborhood or development.  It has been set up to make sure the owners and residences have a support structure to maintain the values of the community as established by the guidelines called the Common Restrictive Covenants (CC&Rs) and By-laws. 

Realtor.com continues with,

“Simply put, CC&Rs are just the rules you’ll have to follow if you live in that community. Unlike zoning regulations, which are government-imposed requirements on how land can be used, restrictive covenants are established by HOAs to maintain the attractiveness and value of the property.”

Each HOA is a little different and they usually have a required HOA fee to be paid by all the owners in the HOA.   These fees typically come due monthly or quarterly.  The amount of the HOA fee  due is based on the size of the property, how much common area there is, what utilities are included, and what the common amenities are such as swimming pools, tennis courts, club room or houses, elevators in multilevel buildings and the regular wear and tear of the common areas. 

There may be additional fees charged or assessed to homeowners if the reserve funds for the HOA cannot cover the cost of unexpected capital improvements such as roofs, siding, paving or any other expenses approved by the HOA governing board if the funds needed are not in the reserve accounts.

Having a HOA is an added cost but there are major benefits when it comes to maintaining the neighborhood and your property and its resale value.

Realtor.com continues to state,

“After your offer to buy a home is accepted, you are legally entitled to receive and review the community’s CC&Rs over a certain number of days (typically between three and 10)…If you spot anything in the restrictive covenants you absolutely can’t live with, you can bring it up with the HOA board or just back out of your contract completely (and keep your deposit).”

The HOA fees will be factored into your loan qualification package to make sure your loan amount is appropriate for your financial profile.

You will find some great advantages and benefits of having an HOA involved and overlooking our neighborhood.  It is so important to understand what the fees, structure, and regulations are and how they will come into play when you own a property located in a HOA.

So you will feel comfortable and confident when you are searching for a home or condo in the Park City area to purchase let’s get together so I can help you understand the neighborhood’s and how HOA structures and fees have been established.

For more information on the basics or great tips on buying or selling your home feel free to give me a Call/Text or write to parkcityrealty@gmail.com   

Your proven professional - Jim Bradley 801-599-1089

Park City Utah Luxury Real Estate Update for September 2019

For additional information on Park City homes or for Park City homes for sale contact Jim Bradley at 801-599-1089

Tips to Getting a Loan to Buy Your Home

Your finally found a home to buy.  There are many things to think about while you are in the process of getting the financing completed.

Here is a list of things not to do until after you completed the purchase of your home and been informed that the loan has been funded and your deed has been recorded.

1. Do not change jobs or employment or the in any way change the way that you are paid.  Your lender or mortgage company must be able to verify your source of income. You will want to avoid changing your salary or commission structure or making a job change.  

2. Make sure not to deposit any Cash into your bank account.  If your make any deposits make sure they are in the form of a check or wire transfer which can be traced as to there origin. Large sums of cash will be flagged as unusual.

3. Put of any plans to purchase anything new for home or to buy a new car.  Typically, when you purchase a new car or furniture for your new home they will come with new debt or obligations which may count against you.  New debt will change your debt to income ratios and may knock you out of qualifying for the loan.

4. Keep all your Banking Accounts the Same.  Your lender is going to source and track your assets and funds for down payments or closing cost.  Before your transfer any money from one account to another be sure to talk with your lender.

5. Do not Co-Sign on any Loans for anyone.  If your co-sign on a loan it obligates you to pay the loan off which will again change your debt to income ratio and could make you not qualify for the loan.

6. Do not Taking Out a New Loan or Apply for Anything.   It will Count Against You.  When you have your credit, report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO® score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

7. Don’t Close Any Credit Accounts.  You may fill like having less available credit will make you more credit worthy.  This is wrong.  The major component of your credit score is the length and depth of your credit history and our total usage of credit as a percentage of available credit. Closing Credit Accounts will have the effect to lower your total available credit amount.  

The Best Advise is to continue what you have been doing and consult your lender before making changes to your financial profile.  Your lender is there to guide your through the process and will be your best source for advice to any changes. 

For more information on the basics or great tips on getting your home sold feel free to give me a Call/Text or write to parkcityrealty@gmail.com   To search for Park City homes or for Park City homes for sale go to www.parkcityhomes.biz Your proven professional - Jim Bradley 801-599-1089

Access to Your home will impact your number of showings

Decided to Sell your home is the first step to get your home sold.  Hopefully you have hired a proven professional, a Realtor like Jim Bradley, to handle the entire process.  Deciding on the level of access you want to provide your Realtor to show potential Buyers will have a dramatic effect on the success of selling your home in a timely manner.

There are basically for elements you need to be aware of that will impact the quality of having your home on the market and will increase the number of showing needed to get your home sold.   I would say providing Access to your home is on the top of the list followed by the Condition, Financing, and Price. 

There are basically six different approaches you can take to allow a Buyer to have access to your home.

1. Putting an electronically controlled Lockbox on or near the front door - This allows a licensed real estate agent to show a buyer your home as soon as they are aware that your home has come on the market with a scheduled appointment.

2. Putting an electronically controlled Lockbox on or near the front door if your home is vacant - This allows a licensed real estate agent to show a buyer your home as soon as they are aware that your home has come on the market without a scheduled appointment.

3. Providing a Key to the Home to be kept at the Real Estate Office for the showing agent to drop by and pick up to allow access to your home with a scheduled appointment.

4. Requiring a 48-hour notice to allow access to your home at a scheduled time.  Many times, Buyers in the Park City area are relocated for a new career or vacationing in the area and decide they would like to own a second home in the area.  Due to the limited time these Buyers have they want to view as many homes as they can on a short notice to select a home and would be unable to visit your home due to the 48 hours’ notice required for a showing.

5. Requiring your Agent to present at all showing.  This can be a scheduling problem to get everybody on the same time to visit your home especially with a short notice.  This again would limit your home from being shown to all ready able Buyers.

6. Limiting the Access to only a few hours a day or a few days during the week. This is the most difficult way for real estate agent to be able to show your home and will most likely take your home of their list of home to visit and show.   So pretty much off the market.

In a competitive Real Estate Market, getting access to your home can make or break your ability to get the price you are looking for or event sell your home at all.

For more information on the basics or great tips on getting your home sold feel free to give me a Call/Text or write to parkcityrealty@gmail.com   

Your proven professional - Jim Bradley 801-599-1089

Guess why iBuyer wants to Buy your home very quickly

By Jim Bradley 

It typically is that they can get some of your equity of your home.   If you sell your home below the current market price or at wholesale, then the company resells your home for a profit you left money on the table.  This is the reason iBuyer can stay in business.  They are living on the money you left on the table.  So, if you go for a quick sale just be sure to check out all your options.  

Are you still wondering what is iBuyer?  According to Jovio (another quick purchase company), the definition is:

“A company or investor that uses Automated Valuation Models (AVMs) to make instant offers on homes. It allows seller to close on property quickly.  Once sold, the company then turns around and resells the homes for a profit.”    

Today, there are many iBuyer Companies.  Some of the more well-known companies are Offerpad, Zillow Offers, Knock, Opendoor and Perch.  Today there are many of the more traditional companies getting into the same services (ex. Keller Williams, Redfin and Realogy).

Does in make sense to Sell your home to an iBuyer type company?   It all depends on your needs.  If you, a homeowner is looking for a quick convenience sale and not maximizing the proceeds from the sale of their home, it may make sense.

The Bottom Line

Collateral Analytics recently released a study which revealed the advantages and disadvantages of using an iBuyer type selling technique.   The study, however, also showed there is a cost for that convenience. Collateral Analytics explained:

“Traditional brokers fees generally range from 5% to 7% of the sales price…In addition to this cost, buyers typically pay some closing costs including lender related charges in the range of 1% to 3%.”

In contrast:

“iBuyers charge sellers a ‘convenience fee’ of 6% to 9.5%, some also charge the seller for fees typically paid by buyers at closing adding another 1% or more. Most iBuyers will inspect the home, assess a generous home repair allowance and negotiate a (an additional) credit to handle such repairs…Overall the total direct costs, ignoring repair credits, will run 7% to 10% for an iBuyer, versus the typical 5% to 9% combined seller and buyer costs with a traditional broker. Yet, that is not the end of the story or comparison.”

“These preliminary empirical results suggest that Sellers are paying not just the difference in fees of 2% to 5% more than with traditional agencies, and a generous repair allowance, but another 3% to 5% or more to compensate the iBuyer for liquidity risks and carrying costs. In all, the typical cost to a seller appears to be in the range of 13% to 15% depending on the iBuyer vendors. For some sellers, needing to move or requiring quick extraction of equity, this is certainly worthwhile, but what percentage of the market will want this service remains to be seen.”

After taking a thorough look at the iBuyer like platform, the study concludes that using an iBuyer method is more expensive for the homeowner than the traditional brokerage model, but for some sellers, it may still make sense to go for a quick sale and move on. 

For a quick evaluation of your circumstances feel free to give me a Call/Text or write to parkcityrealty@gmail.com  Your proven professional - Jim Bradley 801-599-1089

The current trend for luxury homebuyers is to purchase a home that does not require renovations. Today’s Buyers of the high-end real estate are looking for turnkey, ready to move-in-to properties with all of the amenities, whistle and bells included with no extra work. I am often seeing homes being fully furnished.

And it looks like that’s not changing any time soon. According to a forecast from Persistence Market Research, the move-in ready luxury home market is expected to hit $920 billion by the end of 2025. That’s up from $550 billion just two years ago. 

As a local Park City Utah agent serving these ever-evolving high-end clients I often hear Seller of Luxury homes ask the question: should I remodel before listing my properties to sell? Would it make my homes more marketable? More valuable? More appealing? 

Here are some recommendations that you need to consider before planning to take on renovations.

HERE ARE SOME ADVANTAGES OF RENOVATING BEFORE LISTING YOUR HOME FOR SALE:

    It typically enhances a faster sales time and less inconveniences with showings.

    It provides an environment for better listing photos.

    It can improve the appeal and marketability of your property.

    It justifies you to maximize your asking price.

    It gives you more leverage to negotiate with.

If you are looking to move fast (particularly with a job relocation and on tight timelines), this can create an issue.  Generally, many Sellers are willing to sit and wait for their home to sell!  

To top all of this off, pre-listing renovations often increase the value of the property and justify a higher asking price.  In today’s market I am seeing more buyers simply prefer a move-in ready homes, and  you your will have that property separating you from the competition especially in this Buyers’ Market where you need to separate your home from the rest on the market. You will be able to attract higher offers and more buyer interest in your newly renovated home. 

DISADVANTAGES OF RENOVATING BEFORE LISTING:

    It will delay the listing your home and the marketing of your property.

    Many times, the renovations are a nuisance to you the homeowner.

    It will require significant investment of up-front cash.

    It is often times difficult to choose the right projects, contractors, and designers.

On the downside, renovations can be time-consuming and tedious. Though renovations might speed up a sale once they’re complete, it takes time to get there. If there are several contractors to hire, endless materials needed and multiple projects on the agenda, the renovations could actually delay the marketing of the property and, eventually, its sale and transfer, too.

Finally, renovating can be a hassle. If the homeowner is still living on the property, they might tire of the noise, foot traffic, and other nuisances that come with a remodel. The renovations could disrupt sleep, interrupt work schedules, or even pose a safety hazard for those living in the home. For these reasons, many sellers may shy away from this added work.

TO REMODEL OR NOT TO REMODEL

Should you remodel before listing your home for sale? There’s no one answer which is best for all. There is a good chance it will make your property more.  Still, renovations aren’t without their drawbacks. You need to be well aware of the nuisances that come with home remodeling and be prepared for the time and expense it may take to complete the renovations properly.

You should need to be aware that not all remodeling projects are created equal. I recommend that you might want to check out a great renovation resources like Remodeling Cost-vs-Value as well as your own personal knowledge of luxury real estate trends and best practices. You will need to make sure you select improvements that will improve not only the aesthetics and marketability of your home.

January 16, 2019

LUXURY MARKET REPORT TAKES A HARD, REFLECTIVE LOOK AT 2018 – THE CHANGES IN DEMOGRAPHIC WEALTH AND ITS INFLUENCE ON CURRENT AND FUTURE TRENDS

The final Luxury Market Report of 2018 takes a reflective look at the year’s luxury property market, its demographics and trends, and how these influences are now impacting change in the purchase of real estate by the high net-worth.

December’s luxury property sales for North America (the US and Canada) show a decline in sales compared to November, however, and more importantly, there has been no significant changes with respect to price, sale volumes, inventory and median days a property is listed when compared to December 2018.  

Park City Single Family Luxury Market is now a Buyer's Market with a 5% sales ratio.

Homes Sold for a median of 92.48% of list price in December of 2018.

The most active price band is $1,700,000 to $1,800,000 where the ratio is 17%.

The median luxury sales price for Signal family homes has decreased to $2,279,474.

The median day on the market for December of 2018 was 81 days, down from 83 in November 2018.

Park City Board of REALTORS®' Year-over-Year Statistical Report Released August 8th, 2018

PARK CITY, UTAH (August 8th, 2018) -- Recent housing statistics for Summit and Wasatch Counties, as reported by the Park City Board of REALTORS®, revealed continued demand and increase in median sales price.

At the close of the second quarter of 2018, the number of single-family home sales in the Greater Park City Area increased by 6%, vacant land by 5%, while the condominium sector was slightly down compared to last year’s sales. Demand continued to rise on a gradual level, with single-family homes accounting for 49% of the total dollar volume, condominium sales for 40%, and vacant land for 11% of the market share.

Single-Family Home Sales

Year-over-year, the number of single-family home sales within the City Limits was up 9%, while the median price of $1.93 M remained flat to last year. By neighborhood, Old Town had the highest number of sales – up 36%, while there were 20% fewer sales in Park Meadows.

Snyderville Basin reported more than twice the number of home sales as the City Limits – a 4% increase over last year – with the median price climbing to $1.13 M – up 17%. In Silver Creek sales were up 40% and 37% in median sales price reaching $1.16 M. By neighborhood, Promontory had the highest number of sales in the Basin with 77 sold homes in the last 12 months. Activity in the Jordanelle area had a sizable increase in sales with a 14% median price increase reaching $1.73 M.

Sales in the Heber Valley continued at a strong pace, with nearly one sale a day, and a 28% median price increase to $506,000. There were 20 more homes sold in Red Ledges compared to last year, with a median sales price of $1.16 M – up 8%. Midway continued to thrive with 96 closed sales and 17% median price increase reaching $544,000.

There are many factors contributing to the numbers we are seeing in the Heber Valley. Despite the sharp increase in construction costs, single-family homes are still well below Park City prices. With new amenities in the Heber Valley and excellent schools, buyers are weighing their options.

In the Kamas Valley, the number of sales decreased 15%, though the median price climbed 10% to $412,000. Sales numbers in the Wanship, Hoytsville, Coalville, Echo, & Henefer areas remained the same with a median price of $359,000.

Condominium & Townhome Sales

Year over year, the number of condo sales within the City Limits was up 8% and up 15% in median price to $787,000. The Snyderville Basin reported essentially the same number sales as last year with 308 units and median price of $503,000.

The difference between these two areas may be attributed to the completion of developments in Empire Pass versus the reserved or pending status of to-be-built product in Canyons Resort Village. The Kimball Junction area, which can offer primary residence condominiums, saw flat sales but a 15% median price increase to $385,500.

The number of closed sales dropped 20% in the Jordanelle area possibly due to lack of inventory as new construction projects have been absorbed, but there was a 12% increase in median price reaching $528,000.

Vacant Land Sales

Park City Limits saw 14 more lot sales than last year and a 15% median price increase reaching $820,000. By neighborhood, Promontory had the highest number of land sales in the Basin with 72, and the median price continued its upward tick reaching $405,000. Canyons Village saw increased sales activity and a 22% median price increase to $2.28 M.

Conclusion

Historically, July and August are the months with the highest level of inventory for homes and condos in the Wasatch Back – and Q2 of 2018 was just below Q2 of 2017. In some of the most desirable neighborhoods, a shortfall of for-sale properties have placed an upward pressure on the median prices. With the demand for all that the Wasatch Back lifestyle has to offer, listed properties have been selling at a faster pace. In the last 12 months, the average length for a home to sell was less than 6 months in the Basin and less than 11 months in the City Limits.

The complexity of individual neighborhoods and micro-markets in the Greater Park City Area are reasons that buyers and sellers should be advised to contact a Park City Board of REALTORS® professional for the most accurate, detailed, and current information.

For further information, contact Jim Bradley REALTOR®  (801) 599-1089

Five Things You Need to Know About Selling a Condo

Thinking of selling your condo? Whether you live in the condo or own it as an investment property, if you’re ready to sell your home, it’s time to talk to a qualified real estate agent in your area. Consider the preferred agent Jim Bradley with Coldwell Banker.

Thinking of selling your condo? Whether you live in the condo or own it as an investment property, if you’re ready to sell your home, it’s time to talk to a qualified real estate agent Jim Bradley. By evaluating several criteria, including regional markets, time of year, features of your condo unit, as well as your specific needs as the seller, he or she can create a customized marketing plan for your condo. Here are five important topics to discuss with your real estate agent if you want to sell your home:

1. Best Time of Year to Sell Your Condo

The specifics of your area do more to determine the best time to put your home on the market than whether you’re selling a condo or a house. While the conventional wisdom is that spring is the best time for selling a home, this belief simply doesn’t ring true in every locale. In recent years the historic patterns have eased, and in some cases, totally disappeared. Still, different parts of the country have periods when sellers can be more aggressive with their pricing. And your real estate agent may suggest a distinct timing strategy for condominium sales, especially if your condo is in a resort destination.

2. Open House Strategy and How to De-Clutter

A condo that shows well will sell faster and bring a higher price. Small cosmetic touch-ups can make a big difference. Buyers often suspect that more serious problems may exist if they notice the need for minor repairs. If you want to sell your home, it’s important to make sure your condo is clean, tidy and free of personal clutter. Clear sinks and counters of dishes and toiletries. Neatly stack office supplies and organize storage areas. Replace dim light bulbs and clean windows. Even though your garden area may be commonly owned, do your best to create curb appeal by cleaning front steps and porches, and clearing lawns of toys or equipment.

3. Features to Accentuate

One of the best features to accentuate when selling a condo is the lifestyle of ease that comes with condominium ownership. Many buyers are looking for the hassle-free living experience that they can’t find with a single-family detached house. Another important attribute of any condo is the amenities of the association, which can include a hot tub, fitness center, owner’s lounge, covered parking and even concierge services. If you’re considering selling your condo, take the time to walk through it methodically with your real estate agent. Together you can point out which features of the actual condo unit should be accentuated. Does your unit have a wonderful view? Perhaps the location of your condominium is unique and desirable. Your real estate agent can help accentuate these features in sales and marketing materials.

4. Desired Price and Bottom Line Price

When setting the home price for your condo, it’s important to identify your desired price and your bottom line price. By assessing recent condo sale and listing statistics in your area, your real estate agent and a licensed appraiser can estimate your house value and recommend an appropriate target price range. Working with your agent, you can set an initial asking price, as well the absolute lowest home price you would comfortably accept. One advantage of selling a condo is that by assessing the prices of other units in your association that have recently sold or are currently listed, your real estate agent and the appraiser can determine a very accurate house value.

5. Disclosures

When selling your condo, you may be obligated to disclose problems that could affect the property’s value or desirability, as well as to disclose HOA minutes and costs of common insurance and utilities. In most states, it is illegal to fraudulently conceal major physical defects in your property, such as a water heater that leaks severely. And many states now require sellers to take a proactive role by making written disclosures on the condition of the condo unit. Ask your real estate agent for the particular laws of your state.

Here is Latest Reports as to Where Mortgage Interest Rates are Headed in 2018

As of 2-7-2018

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.

 How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year.

If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Even a small increase in interest rate can impact your family’s wealth. Let’s get together to evaluate your ability to purchase your dream home.