It is that time of year again when the days start getting longer and the thoughts of spring activities begin to come to mind. For many this might mean preparing for a home sale or purchase. It is a historical fact that real estate activity in the South Valley begins its climb each spring. The highest numbers of new listings come on the market in the first and second quarters each year. It’s no surprise either that most of the year’s closings will also take place in these two quarters. The biggest questions on the minds of many buyers and sellers today are “How is the market?” and “Where is the Market going?” Of course there is great concern in the minds of both buyers and sellers, with so much being said across all the news outlets about booms, busts or bailouts and meltdowns. You may be surprised to learn that the SV Market is actually pretty healthy. The current median price is 26% higher compared to the rest of Salt Lake County. Two-Thirds of the homes in our area are going under contract in less than 90 days on average with about one-third doing so in the first 30 days. The effect of distressed inventory has definitely had an impact but the truth of the matter is that 72% of the SV sales over the past year were traditional sellers putting their homes on the market (See Fig #1). Many Buyers have probably noticed that our market seems to be chock full of short sales and it is true, at the time of this writing nearly one-in-three active SV listings are “Short Sales”. Two major distinctions with short sale listings are 1. They remain “Active” until the bank(s) approve the sale, so many actually have offers in negotiation for months at a time even though they show up as available in a buyer’s home search. 2. The other interesting fact is that only about one third of those listed will successfully sell short. Those homes that do not sell may receive loan modifications, the sellers make other arrangements or they move on in the foreclosure process which is soon being offered back to the market as Bank-Owned Homes. Where then is the SV market headed? Well according to James Wood, Director of the University of Utah’s Bureau of Economic and Business Research in a January report commissioned by the Salt Lake Board of Realtors® he wrote “Prices will likely be stable through the first two quarters of 2011 with very slight gains in the third and fourth quarters.”

For Buyers today, affordability has never been better. According to a slide show shared with local Realtors® at the 2011 Forecast Breakfast with Chief Economist for the National Association of Realtors® (NAR) Lawrence Yun, Ph.D. in which he showed among many other facts that the home-price-to-income ratio has never been lower. In other words the amount we earn today compared to the price we pay for homes has not been better in over 30 years. Part of this is coupled with historic lows on fixed mortgage rates and the correction in prices seen the nation over. It is a widely accepted fact that mortgage rates this low will not last forever. Dr. Yun also stated in his presentation that he and NAR expect rates to move upwards in 2011 and 2012. This will no doubt have a slight affect on Home price appreciation but this will be easily countered by the rising demand for housing as rents increase and the confidence of buyers who have not moved in 2009 or 2010 begins to grow. Many of these buyers are restless and see their window of this affordability-opportunity coming to a close. 2011 will be the year the Utah economy and housing market will transition back to growth and balance.

If you are thinking about selling this spring, follow these tips to improve your odds of a quick sale while increasing your return on investment. One of the most important things to do before putting your home on the market is to take care of the “easy” things. Make a list of things that need to be repaired – leaky faucets, chipped paint and loose hinges – and fix those items. Consider tackling a remodel before selling. Make sure the work to be done is going to bring you either the full return on investment or will definitely push your home ahead of it competition to insure the fast sale. Curb appeal, or how your home shows from the street, is one of the other key things that will sell – or not sell – your home. If buyers are turned off by the outside of the home, it will be very difficult for you to get them into the home and change their negative opinion. Curb appeal will be the key to making the right first impression. The main things you can do to improve your home’s curb appeal is Declutter the yard by removing toys and lawn furniture, Cut the grass, rake the leaves, trim the bushes and the edges, plant fresh flowers to add color. Paint doors and windows with a fresh updated color, Patch holes or fill cracks in the driveway. Wash windows and screens plus any discolored brick or Stucco. Staging the interior of the home is also an important piece to successful showings. What is staging, anyway? Staging is the process of enhancing the impression a prospective buyer has about your home. Staging is all about removing things from your home that make it look smaller, drab or dated. It differs from decorating because decorating involves bringing things into the home to enhance the look of it. The key to staging is simplicity and getting prospective buyers to a place where they can picture themselves in the home. You can begin by focusing on these staging basics: DECLUTTER – Remove “you” from the home (meaning pictures and personal items). Replace personal photos with scenery or postcards. A good rule to follow is to have no more than 3 items on any surface. Remove all items from kitchen counters and store them away. NEUTRALIZE – Neutralize the rooms with light- colored paint, like creams, tans and white. Keep bright colors to a minimum and use neutral and/or natural colors that can work with many different styles. KEEP IT CLEAN – Nothing sells better than a clean and well — maintained home. Always keep the home feeling and smelling clean for showings. Some inexpensive upgrades that can make a huge difference to the buyer include: — New bed treatment (especially for the master bedroom) — New towels — Fresh paint — Replacing old lamps or lighting fixtures Start with these staging suggestions and talk to a REALTOR® about your home and what specific changes will give you the biggest bang for your buck. As the old saying goes — “You never get a second chance to make a first impression!”   

For the buyers entering the market this year, now more than ever will you need the guidance of an experienced professional. The hurdles that have been placed in the way of the prospective home buyers are many and it may seem at times that you are running an Olympic caliber contest but with the help of a partner in the race you will find that success comes easier than anticipated. The first few things to consider is to be very realistic about your commitment to the process, buying a home or condo can be very stressful with demands on the lending side of the transaction once the right property is located and much earlier with the negotiations of price and terms on the one home that’s just right for you. Not to mention all the “Advice” you be receiving from well-wishers who may not have all the facts or good information. It is best to start with a thorough interview with your Realtor® and a full mortgage planning meeting with a quality lender. Once you have considered the results and recommendations of those meetings you will be able to then shop with confidence. Whether you decide that only newly constructed homes will work for you or if you are willing to burn thousands of calories in sweat equity on a fixer, knowing where you are going is only possible by defining the path to get there.

Ask for Help, no matter the question or situation you may find yourself in, it is not something that hasn’t been seen before. While there is something to learn in every transaction it is possible to complete the task knowing along the way nothing has been missed or considered.

About the Authors: When buying or selling in the South Valley or anywhere along the Wasatch Front you should be sure to seek out the most qualified persons or team to get you through the process. Lana Ames is recognized as a Market Specialist as well as a Community and Industry Leader; she has made the commitment to lifelong education and service to the community. She along with Kristopher Furrow are each very involved within in the real estate industry. Both hold prominent positions within city, state and industry committees, boards or advisory councils. Lana is President Elect for the Utah Chapter of Council of Residential Specialists, as well as a member of the Kids Fest Committee raising money for the Christmas Box House, and Kristopher is the Technology Director for the Salt Lake Board of Realtors Young Professionals Network as well as a member of Herriman City’s Economic Development Committee. Both make charitable contributions to the Windermere Foundation from each and every transaction they close as does the entire Windermere Real Estate Group. The foundation raised over 2 million dollars this year and each office volunteers countless hours during the annual Windermere Service Day each year. If you have any questions about real estate or know someone who does you can reach Lana & Kristopher at Windermere Real Estate –UTAH 801-999-8673