You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!
For the latest episode of “St. George Hotspots,” we’re at Jen’s favorite place on earth: the farmers market.
Here in St. George, the Downtown Farmers Market at Ancestor Square is held every Saturday from 9 a.m. to noon from the second Saturday in May through the end of October.
Everything here is either locally grown or locally made
Everything here is either locally grown or locally made, and you can shop for artisanal goods as well as seasonal produce. If you’d like to join us as we mingle with all kinds of interesting vendors and enjoy the beautiful weather, watch this short video
In the meantime, if you’re thinking about buying or selling a home, reach out to us. We’d love to answer any questions you have.
Jen has accepted many earnest money checks over the years—but what is earnest money, and why is it important?
Earnest money is a very important part of any transaction; not only does it tell the seller that you, as a buyer, are serious about the transaction, but it also goes toward the down payment you’re making on the loan.
One thing that buyers don’t realize when it comes to earnest money is that it also assists them by locking the seller into the transaction. Yes, under contract, the buyer will face consequences for breaking the contract, but if the seller breaks it, they’re bound to not only refund the earnest money to the buyer, but to give the buyer a sum equal to the earnest money as liquidated damages.
Considering that, how much money should someone put down when they’re purchasing a home? A good rule of thumb is 1% to 2% of the purchase price, but the decision is ultimately part of the negotiation process. In a buyer’s market like the one we’re currently in, it’s a good negotiation tool to get offers accepted and to ensure the transaction makes it to close.
If the seller breaks the contract, they’re bound to not only refund the earnest money to the buyer, but to give the buyer a sum equal to the earnest money as liquidated damages.
But when does one pay earnest money, and who holds it? In the state of Utah, the earnest money deposit is paid within four days of acceptance. The money can either be held in escrow at a title company or it can be held in the broker’s trust account.
Many buyers ask if they can get their deposit back if things don’t go right. The simple answer is yes; when you write a contract, there are very specific circumstances under which you’ll be able to get the deposit back. For example, during your due diligence period when you’re looking at whether or not you want to purchase the home, there are dates that specifically designate a time by which you have to counsel—if that is done, then the earnest money is returned.
It’s the job of a real estate professional to understand the complexities of how earnest money deposits work, so if you’re thinking about buying or selling a home, reach out to us. We’d love to answer any questions you have.
Today we’ve got an exciting new series to introduce: St. George Hotspots.
Through this series, we’ll be introducing you to our favorite businesses and locations right here in the St. George area. We hope that after seeing all the great things to do and see in our area, you’ll come check these Southern Utah Hotspots out for yourself.
To kick off our series, we took a visit to the Barbers of Green Gate so that Lindsay could get a much-needed shave and haircut. Before that, though, we met with my friend and barber Jeff Schaffer to give you a better idea of what the Barbers of Green Gate is all about.
Started up by Jeff and his fellow barber Sam, The Barbers of Green Gate has been in business here for just over a year now. The two of them actually moved here from Wyoming and Kansas, respectively, to start a church—but use barbering as a means of supporting their families.
They do an amazing job here at the Barbers of Green Gate, so if you or someone you know deserves a cut and a shave, be sure to pay them a visit soon.
Though they’ve only been in business for a relatively short time, the quality of their work speaks for itself. You can see what we mean by checking out the time lapse of Lindsay’s cut and straight-razor shave in today’s episode.
They do an amazing job here at the Barbers of Green Gate, so if you or someone you know deserves a cut and a shave, too, be sure to pay them a visit soon. To make an appointment, visit www.ggbarbers.com.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.
What’s been happening in the St. George real estate market lately?
As we know, the real estate market is always changing. July and August are typically our slowest months of the year. Back in June, there were 1,500 homes on the market. In July, that number dropped to 1,341. We’ll probably see inventory stay pretty level throughout August, then rise toward 1,500+ homes again in September, October, and November.
As far as interest rates go, the average rate for FHA loans is 4.5%, which is still very low.
For homes in the $200,000 to $300,000 price range, the average days on market is 21 days. Between the $300,000 and $450,000 range, the average is 31 days. Around the $450,000 price bracket, it’s 155 days, which is just over five months.
We’re selling homes faster this year than we did last year, and last year was a super-hot market.
In other words, below $300,000 we are in a seller’s market. At $450,000, conditions are more balanced between buyers and sellers. Once you get above $600,000, it starts to become a buyer’s market.
Overall, we’re still in a seller’s market. We’re selling homes faster this year than we did last year, and last year was a super-hot market. This difference between price ranges illustrates why it’s so important that you have a real estate professional do a comparative market analysis for you before you decide to buy or sell.
As always, if you have any more questions about our market or are thinking of buying or selling a home, please feel free to give us a call. We’d love to help you.
I am joined by Drew Bahoravitch to talk about home loans. Drew is a licensed mortgage loan originator for Bay Equity Home Loans who spends most of his time answering your questions about the loan process. Whether you are a first-time homebuyer or a seasoned investor, Drew can help you find the right loan product to fit your needs.
Today we are talking about some common questions about home loans. I have provided timestamps that will direct you to each question, so that you can browse the ones that interest you most at your leisure.
1:10 - Why are pre-approval letters so important? 2:15 - How much money do you need for a down payment? 3:00 - What is considered a good credit score? And how can someone fix their score if it is low? 5:00 - What does it take to qualify for a loan? 6:30 - How much money do you need to make per year to be considered for a home loan?
Whether you are a first-time homebuyer or a seasoned investor, Drew can help you find the right loan product to fit your needs.
If you are considering buying a home and have additional questions for Drew, you can reach him by calling or texting (801) 717-6191.
Of course, if you have any other questions for me about buying or selling, please feel free to call or email. I look forward to speaking with you soon.
Equal Housing Lender. This is not a commitment to lend or extend credit. Restrictions may apply. Rates may not be available at time of application. Information and/or data are subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states. Bay Equity LLC, 28 Liberty Ship Way Suite 2800, Sausalito, CA 94965; NMLS ID#76988. Utah DRE Mortgage Entity #7953347. NMLS consumer access: www.nmlsconsumeraccess.org
Video was completed for informational purposes only, and the content of which, written or oral, is not to be construed as legal, tax or financial advice nor credit repair service or credit repair advice. The information herein is gained from personal experience in common credit issues that the presenting loan officer has observed among prospective borrowers over the years. Bay Equity is not a Credit Service Organization and Loan Officer is not a credit repair service provider.
Marki Graves is here with me today to tell you everything you need to know about property management. As the director at Red Rock Property Management, she oversees an amazing team of property management professionals and works closely with property owners to help them make the most out of their real estate investments.
Marki tells us that she does onboarding, which is where property owners consider if they want to rent out their property with us by providing them all the information that they need. All that the property owner needs to worry about is signing where they need to and handing over the keys. She gets the property ready so that it can be leased out in a quick amount of time for the top dollar rent price.
She also touches on the best way to go about looking for property. According to her, the first step is to get in touch with a good Realtor and start looking for properties. You should tell them your price range as well as what you want to do and what your long-term plans are with the property. Even if you are just looking to use it as an investment property for a few years before you move into the place, Red Rock Property Management can make those plans work.
As soon as you find some properties that you are interested in, either the client or the real estate agent can reach out to Marki to find out what those properties will rent for. Since investors are trying to figure out their return, those are important numbers to know.
Red Rock Property Management sets themselves apart from other management companies by the different feeling they generate among clients within our community. They try really hard to take care of their clients, both on the tenant side and the property owner side.
Even if you are just looking to use it as an investment property for a few years before you move into the place, Red Rock Property Management can make those plans work.
However, the two biggest things that set them apart from other management companies are the inspections they do throughout the year to keep an eye on the property and their screening process. Marki tells us that she has the ability to place great tenants into her properties. In fact, they have very few delinquencies each month and have an eviction rate of less than 1%, which they are pretty proud of.
Marki also tells us that lots of people ask what the best option is for someone trying to decide whether to sell or rent their home. She says that the first step would be to determine what price you would need to sell the home at to make it make sense for you. Then you need to figure out what the rent price would be if you decided to rent it. Once you have those amounts, then they can make a decision based on what the actual numbers will be.
Of course, you can contact Marki’s team to figure out the rent price and get in touch with me to help you figure out the sale price.
Marki says that it never hurts to try property management. It has a simple onboarding process where you are not tied to anything until a lease agreement is signed. In fact, people have come to her with homes that they have listed but are having difficulty selling and take whichever offer comes first, whether it be renting or selling.
If you have any questions about property management, you can call Marki’s office at (435) 703-9946 Monday through Friday 9 a.m. to 5 p.m. Or, you can email her at Marki@redrockcompanies.com.
If you have any additional questions about buying or selling, please feel free to reach out to me by phone or email. We look forward to your calls.
Nothing affects the value of your home or the real estate market at large nearly as much as the absorption rate. What is the absorption rate, though? How does it work?
The absorption rate determines whether inventory favors buyers or sellers. It is calculated by taking the number of homes for sale in our market and dividing it by the number of homes that are sold each month.
For example, if there were 1,500 homes for sale in our market and we were averaging 500 sales per month, the absorption rate would be three months (which, by the way, it currently is).
Often, we categorize properties into different price ranges, and we see a direct relationship between the average days on market and the list-to-sale ratio. Typically, the lower the inventory, the more the market favors sellers. The higher the inventory, the more the market favors buyers.
When the market’s absorption rate is six months, it is considered a neutral market, meaning it favors neither buyers nor sellers.
Nothing affects the value of your home or the real estate market at large nearly as much as the absorption rate.
Remember—when determining your home’s value, it is important to examine recent data, otherwise you will be comparing outdated numbers to your property and missing out on an accurate estimate.
If you have any more questions about the absorption rate and how it affects our market or re thinking of buying or selling a home, please feel free to reach out to us. We would be glad to help you.
Making the decision to sell your home is a big one. Here are some of the advantages and disadvantages of two very different home selling methods: Hiring an agent to help you versus selling your home on your own.
1. Contracts. As agents, we are trained on and are required to continually train to keep up with all of the contact information and paperwork necessary in a real estate transaction. If you are selling your home on your own, you could easily miss something important that could be extremely costly. Speaking of costly, you will also need an attorney to review your contracts. You don’t want to find yourself in legal trouble down the road, especially with such a large financial asset at stake.
2. Marketing. This is a big subject in real estate. I am unsure what a FSBO seller would do here. Maybe they could create a cool flyer, but how much exposure are they really going to get for the property? We have a team that manages Facebook ads and targets people who are the best fit for your home. We have access to the MLS, and pay for your home to be listed on multiple syndicated website. If you are not part of the MLS, you will not have access to many of those websites. We pay for a home staging consultation, professional photography, and more. These are expenses that would really pile up for you if you didn’t hire an agent. Additionally, think about the sheer amount of time that has to be spent to do this properly. We schedule open houses, streamline your showings, and stay in constant contact with prospects. A single person with no real estate background can’t do this.
FSBO homes severely lack in marketing exposure.
3. Pricing. If you make a mistake pricing your home, it can be very costly. An overpriced home tends to sit on the market and gain a stigma that something is wrong with it. If you price too low, you can leave a lot of money on the table and bring down the value of other homes in your neighborhood. Don’t rely on a friend or a random website to price your home. Call one of our agents up to get an accurate price today.
If you or someone you know is thinking about selling a home in the next year, please feel free to reach out and give us a call or send us an email. We would love to hear from you soon.
The pre-approval process can be intimidating, and some homebuyers find it downright scary, but there’s no need for you to be afraid of it. Most of it can be done over the phone, and it’s actually pretty easy.
All you have to do is call one of our preferred lenders, they ask you a few questions, and you send them a couple documents via email. Next thing you know, they’ll have a pricing number for you. Once you have that number, us Realtors can pinpoint the houses to show you.
A pre-approval also gives you more negotiating power as a buyer in today’s market. Jen’s daughter just went through this process and assumed she would only qualify for a $250,000 home. As it turned out, she actually qualified for a $300,000 home. This gave us a lot more flexibility to find her a home to suit her needs.
Most of the pre-approval process can be done over the phone, and it’s actually pretty easy.
A lender can also pull your credit report and let you know what you qualify for based on your current credit score or if there’s anything in your report that needs to be cleaned up. They can then advise you on how to fix any problems you may have and notify you what your time frame is so you’re not guessing.
If you have any questions about the pre-approval process or you have any other real estate needs we can help you with, don’t hesitate to reach out to us. We’d be glad to help you.
Where are interest rates headed and how will that affect your buying power?
Right now, interest rates are at 4.5%. This means that if you bought a $300,000 home at this rate with a down payment of 10% and added a principal mortgage insurance payment of $110, your total monthly mortgage payment would be $1,460.
At the start of 2018, interest rates were at 4%. At the end of the year, they’re expected to be near 5%. Interestingly enough, rates were near 6% before the recession. Now they are moving back toward that previous mark which is a sign our economy is doing well. Even if rates do rise to 5% by the end of the year, they are still at a historically low mark.
If you wait to buy, you’ll end up with a higher mortgage payment.
Now, if you bought that same $300,000 house at a 5% rate with the same 10% down payment and the factored in a new principal mortgage insurance payment of $41, your total monthly mortgage payment would be $1,541.
That’s an $81-per-month difference, which can really add up over the entire life of a loan.
That’s what rising interest rates mean for buyers, but what about sellers? If you’re a seller, it means that as time goes on, the pool of buyers who can afford your home will get smaller and smaller.
In short, there’s never been a better time to buy or sell in our current market.
If you have any questions or you’re thinking of buying or selling, don’t hesitate to reach out to us. We’d love to help you.