Inman Torres and Company

Buying a New Construction Home with an Agent

Whether you are buying new construction with an agent or are looking to purchase an older home, chances are you have a lot of things to think about.

Picture it: your own brand new living space, fresh paint, bouncy carpet, light wood floors, and the crisp, earthy scent of freshly mown grass outside. With a plethora of new builders like Fieldstone Homes, D.R. Horton, and Nilson eager and ready to help you build your dream home, you just need one thing to make your dreams a reality – an agent.

As real estate agents with Inman Torres and Company, we have great working relationships with many builders throughout Utah. Before approaching a builder, it’s important to hire a licensed and professional real estate agent who can ensure that your needs and desires when buying new construction are a top priority. Real estate agents can offer valuable insight that the builder either may not have time for or would not know about and having assisted in the transaction of new construction homes for years, real estate agents are fully equipped to safeguard your interests and help advise you in the right direction when building your home.

With the craziness of the 2020-2021 housing market and the low inventory we’ve seen, more buyers are interested in buying new construction. Not only is the concept of having a brand new home appealing, but with people telecommuting and many working from home, spacious living and room for a home office are high in demand.

There are three basic types of New Constructions:

  1. Quick Move-Ins: These homes are pre-built according to the builder’s design templates and ready for a speedy move-in.
  2. Semi-Custom Home: These homes are mostly built, with the option of the buyer customizing the finish of the home such as requesting specific designs, paint, or upgrades.
  3. Fully Custom Home: Fully custom homes allow the buyer to give the builder input from start to finish on the design and model of the home, all upgrades, and any tweaks along the way. This option is perfect for those who are interested in literally building their dream home.

When working with your real estate agent, you will sit down to map out important details about where you want to live. These may include:

  • Location
  • Budget
  • Size of the Home
  • Neighborhood
  • Builders you may be interested in

The great news about buying new construction is that as Americans, we’re spoiled for choice. There is a wide selection of skilled and accomplished builders in Utah to choose from. We can provide comprehensive market reports for subdivisions you may be interested in building in, and we often meet with buyers to drive to the lot areas and discuss what they’re looking for with their new homes.

In addition to having an experienced real estate agent, be sure to investigate the builder you’re interested in building your home with by looking online, reading reviews and ratings, and ensuring the quality and model of the home they have is right for you.

One often overlooked item on the home building to-do list is the home inspection. While you’ll be getting a brand new home with all the trimmings and wainscotting, don’t forget to invest in a home inspection. New homes are generally very well built and in excellent condition, but recently, a new home subdivision in Layton had flooding in the basements of their new homes. As we’ve learned during the pandemic, anything can happen, and being prepared is the best way to safeguard your investments when buying new construction.

One of the many positive benefits of purchasing new construction is that you control the transaction. From selecting the right real estate agent for you, hiring a home inspector, mortgage lender, and most importantly, your home, you will have a lot more of a hands-on, enjoyable experience while your real estate agent takes care of the technicalities and paperwork. With the guidance of a seasoned  Coldwell Banker® agent, your home purchase will be a special memory to celebrate and treasure for years to come. Here are some pros and cons to consider if you feel like a new construction might be the right choice for you:

Buying New Construction

Contract terminology can be complicated. There are many details that need hammering out and information needed on the warranties of the home, interior and exterior amenities, and details that only a real estate agent will be equipped to deal with and guide you through. Real estate agents can also answer any questions about real estate language and contract terms for you. Newly constructed homes can have slightly more complicated contracts than a typical previously-owned home would, so be sure to communicate and ask any questions. Your real estate agent will be glad to help.

Bring your agent with you to meetings with the builder as well, to help ensure that your needs are being met. Working with a knowledgeable real estate professional will guarantee your safety and satisfaction as you build and purchase your new home.

We are here to help your home buying or selling experience be a special, memorable journey you’ll never forget. We love what we do, and we consider our past and present clients part of the Inman and Torres and Company family. If you’re interested in buying new construction or you’d like to look at some current homes for sale, contact us today and let us put our award-winning expertise as REALTORS® to work for YOU!

Avoiding Contract Loopholes

Avoiding Contract Loopholes

The housing market today is frenetic, booming with robust demand, minimal days on the market, and dwindling supply due to shortages and homeowners reluctant to sell. Add to the mix emerging bidding wars fraught with complicated cash buy-outs, frustrated homebuyers, and cancelled closings… and you’ve got a sizzling barbecue of a real estate market.

 

As a buyer or seller, the legal documents you sign need to be done extremely carefully with the utmost attention to detail. It is pivotal to understand the contracts, disclosures and other forms you are signing. Realtors® are trained on pertinent legal and technical regulations to ensure your home transaction goes smoothly from start to finish.

If you’re thinking of buying or selling your home, here are 9 common contract “loopholes” or problem areas you need to be aware of and avoid.*

 

  1. Buyer not delivering and depositing the earnest money within the deadline required in the purchase contract.
  2. Buyer’s earnest money check bounces.
  3. Missing initials.
  4. Missing signatures.
  5. Missing performance deadlines and dates.
  6. The seller accepts the offer the day after the Acceptance Deadline and fails to address this issue in a subsequent addendum. The seller later uses this to argue there never was a valid contract.
  7. Improperly numbering multiple addenda in your purchase contract which creates confusion.
  8. Poorly written language in an addendum that creates an ambiguity.
  9. Buyer needs a settlement extension but doesn’t get it in writing. Seller later argues Buyer breached the contract.

 

While selling on your own might seem like an attractive way to cut corners, you need an experienced Realtor® to help guide you through one of the most pivotal transactions of your life, to help avoid those loopholes.  As realtors, we know the ins and outs of forms and disclosures required for the transaction of a home, and we can also help you stage your home as you prepare to sell and ensure sure you net the best possible price for it.

A recent study showed that homes sold by Realtors® sold for $60,000 to $90,000 more than homes sold by owners without an agent (FSBO). Realtors® can provide buyers and sellers specialized knowledge and valuable market intel of neighborhoods and current market conditions. As Realtors®, we can also assist you with commercial real estate such as offices, industrial, and land properties.

As Coldwell Banker agents, we are always undergoing training to become more knowledgeable. Even after being award-winning agents for over twenty years, we believe in constantly improving and bringing all we can to the table as your real estate agent. Having our useful skills and seasoned experience will help you avoid loopholes as you buy or sell your home.

 

The basic skillset of any Realtor® includes:

-Knowledge of local market value
-Marketing techniques
-Expertise in forms and legal documents
-Money-saving negotiating skills
-Lien and encumbrance protection
-A database of ready and willing buyers

To avoid contract loopholes in your real estate transaction, it’s important to hire a Realtor® who has experience with the local market and can understand and fulfill your needs. Make sure when hiring a Realtor® that you check their background and credentials to guarantee they’re the right fit for you.

 

We would be happy to answer any questions you might have about avoiding contract loopholes, buying or selling your home. Contact us today!

 

References:

  • Bullock, Curtis. “Curtis Bullock, Salt Lake Board of Realtors.” Facebook, Curtis Bullock, 3 May 2021, www.facebook.com/profile.php?id=100013640683572.

With Utah housing growing exponentially and projected to expand over the next decade, more homeowners are looking to build Accessory Dwelling Units (ADUs).

Accessory dwelling units are a small, second dwelling on the same grounds as your home, either detached or attached to your single-family house. This can be an apartment over the garage, a tiny house/building in the backyard, or a basement apartment.

In order to sustain an ADU and keep it up to code, the Owners must obtain a conditional use permit certify that the following safety requirements have been met:

  • Each bedroom must have a working smoke detector
  • A working smoke detector and CO detector in hallways outside of bedrooms
  • GFCI outlets have been installed in the kitchen and bathrooms
  • The water heater must have earthquake straps
  • All bedroom windows must meet minimum egress requirements
  • For basement apartments, handrails and guardrails are installed
  • Additional off-street parking

New construction ADUs must meet the above regulations, obtain a land use permit, and a building permit.

Like many avenues of real estate, there are pros and cons to building an ADU:

Benefits of ADUs
  • Affordable and easy to construct (no requirement to pay for land, infrastructure, parking, or elevators).
  • ADUs can increase income for homeowners.
  • They create more room for family expansion and safeguard privacy.
  • They provide as much space as newly built apartments and condominiums, and as guest homes.
  • ADUs allow flexibility for seniors and the independence of family members.
  • ADU’s can be environmentally friendly and help decrease energy use reduce that impacts housing.

Cons/Red Tape of ADUs

  • Some local regulations can place caps on square footage, which makes it difficult for Utahns to navigate rules to create a mother-in-law apartment in their basement legally.
  • With permits and architects adding sewer and electricity, ADUs can be costly to hook up once built.
  • Homeowners in Rural Areas can have issues with ADUs depending on their property laws and regulations.
  • Finding qualified labor can be problematic and expensive.
  • Building materials are increasingly difficult to obtain with current shortages.
In late March of 2021, House Bill 82 (HB82) was passed by the Utah Legislature and signed into law by Governor Spencer Cox on March 16th, then passed by the Senate.
HB82 by and large removes zoning barriers, which allows for more flexibility for homeowners. HB82 deals primarily with internal accessory dwelling units, or apartments that do or would exist inside the existing footprint of a single-family home, such as a basement. HB82 prohibits local and state governments from establishing accessory dwelling unit restrictions regarding things like the size of the unit, the size of the lot, parking, and street frontage. So long as accessory dwelling units comply with the applicable building codes and fire codes, they should be allowed. Each city in Utah has to go through its city councils and commissions when obtaining a permit for an ADU. 
The following ADU is a 950 SQ FT, 2 beds, 2 baths. This ADU has walk-in closets, a 2 car garage, and 10′ ceilings. Purposely designed with no stairs, sushi height counters, etc.

Accessory Dwelling Units Accessory Dwelling Units  

 

With housing prices throughout Utah and America skyrocketing, median housing costs have risen alarmingly, creating an affordability crisis with low inventory, high demand for homes, and bidding wars.

 

Accessory Dwelling Units

To help curb this crisis, HB82 creates leg room for more affordable options and in turn, helps homeowners to expand and increase the value of their property.

To learn more, please see below for literature on the HB82 legislation. For more information on accessory dwelling units in Utah or buying or selling your home, contact us and we’d be happy to answer any questions you might have.

[pdfjs-viewer url=”https%3A%2F%2Finmantorresrealestate.com%2Fwp-content%2Fuploads%2F2021%2F05%2FHB0082.pdf” viewer_width=100% viewer_height=800px fullscreen=true download=true print=true]

How Accurate are online estimates? How Accurate are Online Estimates?

Pop-up ads monopolize computer screens every day, showcasing free estimates of what your home is worth. On popular sites like Zillow and Redfin, simply typing in a street address will yield an enticing, high-end bracket estimate of what your home may sell for in today’s seller’s market. But determining the actual value of your home is a bit more complicated than the simple click of a button.

 

Utah is one of eleven states that are non-disclosure, meaning only if you have access to the MLS would you get accurate statistics on sales. So, while online estimates might paint an entertaining picture designed to get your attention, they don’t give an accurate assessment that can help you make a wise and significant financial decision.

 

Online sources lack accurate, up-to-date information about a property, such as upgrades, renovation, and landscaping, which can cause a higher or lower estimate than your home’s actual worth. Pricing your home correctly when you place it up for sale is vital. As a seller, if you price your home too high, even in today’s competitive market, it could sit and not receive offers. If you undervalue it to sell it faster, you could lose its net worth profit, which may be crucial to helping you into your next home.

 

Price is one of the first things buyers look for when searching for a new home. Having the wrong price on your property could deter the right buyer from making an offer.  Whether you’re looking to buy or sell, or even if you’re a homeowner wanting to keep track of your home’s value, it’s essential to understand how to assess the worth of your home accurately.

 

As seasoned and award-winning real estate agents, we can help you determine the proper market value of your home, with no cost or contractual obligation to you at all!

 

There are three types of home values that are key in assessing the worth of a home – appraised value, assessed value, and true market value.

 

  • Appraised Value – With appraised value, a professional appraiser is in charge of determining the appraised value of a home. The appraiser is usually an objective, licensed professional who with no allegiance to the buyer, seller, or lender, regardless of who is paying their fee.

The appraiser ensures the lender that the buyer is not overpaying for the property. The appraiser will compare the property to similar homes in your neighborhood. They will evaluate factors such as location, square footage, appliances, upgrades, improvements, and the interior and exterior of the house.

  • Assessed Value – A local municipal property assessor assesses the home’s value by evaluating comparable homes in the neighborhood, the home’s size, age, overall condition, and any improvements or upgrades made while you’ve lived there. Most counties use a multiplier (between 60%-80%) to calculate the final assessed value.
  • Actual Market Value – Your real estate agent will determine the accurate market value with both their expertise in buying and selling properties and specialized Coldwell Banker technology that helps assess the true worth of your home. Having a real estate agent is the most accurate method, which will ensure you list your property for the right price. Your real estate agent can also offer suggestions and cost-efficient upgrades that will improve the actual market value, making sure your home sells for its net worth.

 

As Coldwell Banker agents, we can provide a competitive market analysis, which compares your home to similar homes in the area. We can accurately assess the condition of your home’s general location, exterior, interior, age, and style of the house and marry it with current market trends to ensure the best actual value.

 

While it’s entertaining to click those pop-up ads or enter your home address on popular real estate sites, stop and think – how accurate are online estimates? Does wishful thinking help you in the long run in determining how much your home will sell for? If the answer is no, contact us today. We can give you a no-obligation, free assessment of your home’s worth, along with a comparative market analysis that will help you assess which properties are available in your desired location.

 

Get started the right way, and rest assured that you’re in good hands with Inman Torres and Company. We’re here for you.

Military Rewards PCSGrades

Realogy Military Rewards and PCS Grades is honored to provide key resources to guide active military, veterans, and their families through their next move.

There’s never been a better time to sell your home! The homebuying market is more competitive than ever, and #militaryfamilies need to take advantage. Here are the 5 tips you need to know to sell your home:  https://bit.ly/32Ljkbb

As you may have seen from the recent headlines, the homebuying market is more competitive than ever, so there’s never been a better time to sell your home. Across the country, record-low inventory is making housing prices extremely competitive, making it the ideal time for military families who are preparing for a PCS this summer to put their current home on the market. Paired with all-time low-interest rates, many buyers are eager to purchase a home before rates go back up. If you’re looking to take full advantage of the current seller’s market, here are five tips you need to know.

  1. Price Your Home Correctly

There is no doubt that everyone wants to make as much money as they can when they sell their home, but it’s also very important to be realistic. You can use a home estimate tool to get a good idea of what range you can expect to sell your home, and then work with a real estate agent to determine an appropriate list price.

  1. Declutter and Prepare to Sell Your Home

Once you’ve decided that you’re going to sell your home, and especially if you are preparing for a cross-country move, you’ll want to get started on clearing out the clutter within your home. This is an important step to complete before taking pictures of your home for the listing.

Removing items and tidying up helps to maximize the space in your home and focus a potential buyer’s attention on the overall layout and rooms of your house. Clutter can devalue your home in a potential buyer’s eyes and even in a competitive market you want to ensure you are set up for success.

Box up everything you don’t absolutely need to have out and place it out of site or in a storage unit – even if just for the photos. And don’t forget anything that’s been sitting in the back of your closets and cabinets since your last move. PCSgrades has a lot of great resources for prepping and packing tips to get ready for a PCS, but are also helpful to get ready for any type of move.

  1. Be Accommodating with Showings to Sell Your Home

The selling process can be challenging, especially when potential buyers start scheduling times to see your home and you need to be out of the house.

Once your home is listed, try to say “yes” to every single showing request – the good news is, many showings these days are happening virtually. Unless it’s truly not possible, be accommodating and flexible when you can with showing your home to potential buyers. Though with the current market, you won’t be surprised to find these requests may come in faster than before!

  1. Plan Your Next Move Earlier than You Think

With homes selling so quickly, don’t put your home on the market if you haven’t already secured a new living space and have a confirmed timeline. In past buyers’ markets, owners could plan to stay put for a while once an offer was accepted, which gave them extra time to look for a new home. In today’s market, you might have to negotiate a later closing date or negotiate with future buyers who are eager to move in right away.

  1. Work with a Qualified Real Estate Agent to Guide You Through the Process

Selling a home is a massive decision with a lot of nuances for military families and you don’t have to do it alone! According to new research from Realogy and PCS Grades, 97%* of active-duty service members and their spouses say it is important to work with real estate professionals who have expertise working with active-duty military and their families.

The Realogy Military Rewards and PCS Grades program can assist you with your entire home selling experience and was created specifically to help support military personnel and veterans. You’ll have the opportunity to work with an experienced real estate agent familiar with the unique military homeseller’s needs who will support you every step of the way, as well as earning $350-$7,500 in cashback after closing, and local community insights from military and veteran families at PCSgrades.

When you’re ready to get started to sell your home, please contact us and we can help answer any questions you might have about Military Rewards and PCS Grades. With over 42 years of combined expertise and being a part of military families ourselves, we’re here to help you make your homebuying dreams come true while providing you with solid, insightful advice.

* The survey was conducted by Wakefield Research on behalf of Realogy and PCSgrades among 250 U.S. active-duty service members and 250 spouses of active-duty service members, between February 25th and March 3rd, 2021, using an email invitation and an online survey.

We give back between $350 and $7,500* to military families who sell and/or purchase a home.

Wherever home is, we’ll help you find it! Contact us today to get started.

The West Davis and Highway 89 Projects continue to move forward at full steam ahead. Buckle up, everyone!

West Davis and Highway Projects – Looking Ahead

For those who are affected by the construction, please be aware that as of May 10th on the West Davis Project, there will be some demolitions taking place during office hours. They have started hauling approximately 4 million cubic yards of dirt to build the new West Davis highway.
The Highway 89 Project is planning for a new road on the west side of U.S. 89 to connect Cherry with Gordon, and for Valley View to do the same on the east side.
Read more below for the latest on what is happening with the West Davis and Highway Projects, and how it affects you. You can also visit the West Davis Project Website or the Highway 89 page to view an interactive map.

Flagging Operations
  • Gentile Street & Bluff Road: Starting Monday, May 3, flaggers will be stationed on Gentile Street just west of Bluff Road to help construction trucks hauling dirt exit and enter the road safely. Flagging will take place Monday-Friday from 7 a.m. to 5 p.m.
  • Syracuse Trail: Starting Monday, May 3, flaggers will also be stationed at the Syracuse Trail just east of the Still Water subdivision to help construction trucks hauling fill material cross the trail safely. Flagging will take place Monday-Friday from 7 a.m. to 5 p.m.
West Davis and Highway 89 Projects
Legacy Trail Closure & Detour
  • Starting Monday, May 3 at 7 a.m., the Legacy Parkway Trail between Glovers Lane and 1250 West will be closed to accommodate the hauling of dirt and building of dirt embankments against and through the existing trail. (This trail was originally scheduled to close Friday, April 30, however activities were slightly delayed due to rain earlier in the week).
  • This section of trail will be detoured to Glovers Lane and the Denver & Rio Grande Trail parallel to 800 West. This closure will remain in effect for the next year.
Hauling Dirt
  • Crews have started hauling dirt onto the project site. Hauling will take place Monday-Friday during daytime hours and continue through the summer. Residents should expect heavy and persistent construction truck traffic along various local city roads.
  • Current designated haul routes include Park Lane, Glovers Lane, 1525 West, 650 West, 200 North, Gentile Street, 2700 South, Antelope Drive, and S.R. 193.  Additional haul routes may be added.
  • Approximately 4 million cubic yards of dirt is anticipated to be hauled onto the project site. The project team will use this material to create the base of the highway, embankments, and berms. In Farmington, this material will be left for up to 550 days to allow the dirt to compact and settle enough to build on top of, while other project activities will continue, like bridge construction, I-15 reconstruction, and utility relocations.
  • Residents are advised to use extra caution when traveling around construction traffic.
Legacy Pile Driving.
  • Pile driving in the Legacy Highway median at approximately mile marker 10 is expected to continue intermittently for the next month. The left shoulder on both northbound and southbound Legacy Highway will be closed to accommodate this activity until pile driving has concluded.
  • What is Pile Driving? Pile driving is a method of constructing bridge foundations. To support the future West Davis ramps and bridges, steel and concrete beams (or “piles”) are driven into the soil until reaching a hard layer of earth beneath the ramp/bridge foundation.

Utility Exploration
  • Crews will continue drilling small holes to verify the location and condition of underground utilities like water and sewer pipes, power and gas lines, and TV/phone cables and performing video inspection of existing pipes at various locations throughout the project area. Work will take place during daytime hours Monday – Friday through the end of May.
  • Along Antelope Drive (1700 South) in Syracuse, existing storm drain and irrigation pipelines will be cleaned and inspected by video Monday-Friday from 9 p.m. to 6 a.m. This work will require shoulder closures along Antelope Drive. Please obey all traffic control signs and flagger signals while traveling through these areas.
  • Additional utility exploration and pipe inspection work will take place during daytime hours Monday – Friday in various areas along the project corridor.  These areas include:
    • Farmington – Glovers Lane, Shirley Rae, 800 West and 650 West
    • Kaysville – Angel Street and 200 North
    • Layton – Weaver Street and 3200 West
    • Syracuse – 1000 West and Gentile Street
  • Utility exploration and pipe inspection work will continue during nighttime hours along I-15 and Legacy Highway between Parrish Lane and the Glovers Lane overpass off the pavement in the shoulders.  No traffic impacts are anticipated.  This work should begin after the Antelope Drive utility exploration is complete.

Future Construction

  • As early as May 10, crews will begin demolishing UDOT-owned buildings along Antelope Drive. Work will take place Monday – Friday during daytime hours. Possible noise, vibrations, and dust can be expected.
  • UDOT will continue with design work, utility coordination, debris clearing, and property acquisition and preparation. The West Davis project team will also continue to coordinate closely with residents, businesses, city leadership, and other key stakeholders
The schedule is subject to change due to equipment, material, utility, and/or weather delays.
Please feel free to reach out to us with any questions about the West Davis and Highway 89 Projects, or buying or selling your home.

About Real Estate Investors

In today’s booming economy, we have countless investment options.  Some people choose to invest in the stock market and take out shares in the hopes of seeing a return. Others invest in real estate, spanning market properties such as single-family homes, condos, townhomes, duplexes, and multi-family dwellings. While you may not know a lot about real estate investors, it’s essential to decide whether selling to an investor is the best choice for you. Here are some things to take into account about real estate investors when you’re looking through an investor’s offer.

There are three types of residential real estate investors:

  • Wholesalers
  • Short-term investors or flippers
  • Long-term investors.

Wholesalers negotiate to bring a property under contract and will shop the property around to other investors. They usually will assign it to another investor, who will complete the transaction.

Short-term investors or Flippers are similar to the home improvement shows you may have seen, where the short-term investors will buy a property (usually what they deem as a fixer-upper), make valuable improvements, and needed repairs. Then they will sell the property to another buyer. Short-term investors typically have a property anywhere from a month to six months.

Long-term investors intend to buy a property to live in it or eventually rent it out as the home appreciates and builds equity. Long-term investors seek homes with affordable mortgages and marketable

Selling to a real estate investor comes with various benefits:

  • A Faster Timeline: Real estate investors will meet your closing timeline needs. They are motivated to close fast, as they face penalties in carrying costs the longer it takes them to close. While this can be problematic, there is less red tape than with a traditional sale.
  • Fewer Repairs and Negotiations Needed: Particularly with short-term investors/flippers, with minimal negotiations, home inspection, or appraisal process, you can sell your home as-is without negotiation for needed repairs or costly maintenance.
  • More straightforward Financing/Cash Purchases: Many houses on the market today are going to those who pay cash. Not every real estate investor will make a cash offer, but the majority of them do. Taking this less conventional method means more reliability in your funding and less concern about the investor’s financing not falling through.
  • Rental Options: When the pandemic hit, most Americans faced financial hardship and had difficulty meeting their monthly rent and mortgage payments. If one of the reasons you intend to sell your property is financially motivated, selling your home to an investor may allow you to continue living in your home and pay the rent if they are willing to work with you.
  • Investors are more active than homebuyers: The real estate market is currently a seller’s market. With less supply and more demand, prospective homebuyers are losing bidding wars are turning away from potential homes for sale because the prices are too high or there is not enough inventory. On the other hand, investors are looking to add at least one property to their portfolio each year. Some investors will also give you a commission if you can find potential rental properties for them.
  • Less Traditional Sales Process: Without the process of a home inspection and appraisal, legal negotiations, and ensuring the transaction is put through all the proper channels, selling to a real estate investor will give you a quicker, more streamlined process geared toward the standalone sale. If your goal is a more effortless transaction over getting the maximum net worth from the sale of your property, selling to a real estate investor might be for you.

Whatever your situation, it’s crucial to look at all available options before selling your home and weigh which option is the best for you in the long run. Real estate agents will handle the transaction for you from start to finish, and by having an appraisal and home inspection, you can rest assured that you will net the maximum worth of your home while having financial and legal failsafe in place. As REALTORS®, we have an ethical obligation to adhere to the highest ethical standards and practices. But if you want to sell your home as quickly as possible without the traditional inspections and delays, and you aren’t concerned about how much it will sell for, selling to a real estate investor may be a good solution for you.

About real estate investors

If you have any questions you’d like to ask about what’s the right option for you, we know the real estate business inside and out, and we would love to speak with you. At Inman Torres and Company, we work hard to help clients find the right home at the right price. With access to comprehensive reports and in-depth knowledge of current market conditions, we can also give you a free, no-obligation estimate of what your home is worth. Contact us today to see how we can help you buy or sell your home.

Real estate is hotter than lava this spring, and after recuperating from the whiplash that was 2020, everyone is casting an eye into the future of the housing market. Coldwell Banker reports that one in five homeowners (20%) plans to sell in the next 12 months and that the number of actual sales this year will surpass last year’s. Yes, you read that right. A robust housing market in 2021! But with a housing shortage, how can that be? Wouldn’t that conflict with the lack of homes for sale? We will tackle these questions and more as we delve further into the future of the housing market.

Selling a home can be stressful at the best of times, especially for people venturing into real estate for the first time.  By staying up to date on the latest market details, researching, and consulting your real estate agent, you stand a much higher chance of succeeding in your home buying/selling endeavors than going at it alone.

Consumers are currently outbid at furious paces in bidding wars, the winner sometimes forking outwards of $70,000 over the listing price! Homebuyers are frustrated, agents are exhausted, and we’re facing a historic, unprecedented era in the history of housing, the likes of which we’ve never seen.

Yet, we’re seeing 9.1% higher sales than a year ago, and the National Association of Realtors (NAR) predicts that 2021 will see an estimated 6.5 million home sales, up from 5.64 sales in 2020.

To understand how this might happen given the current housing shortage – and looking forward with no end in sight to either the pandemic or real estate mayhem, consider the delicate balance of inventory and demand and the tightrope the real estate market is carefully negotiating.

The statistics could meet NAR’s momentous prediction one of two ways:

  • The number of homes for sale could suddenly increase, doubling supply.
  • As the pandemic gets under control, fewer home buyers will seek out new homes.

In the first scenario, homeowners now are wary of putting their homes up for sale, concerned about having somewhere to go in such a tight market with little inventory. In the second scenario, those desperate to leave more highly infected areas searching for more comfortable living and working space may decide to stay where they are as the pandemic gets under control, and more people get vaccinated. Likely, a marriage of the two will calm the waves of the housing market once the pandemic begins to fade. Currently, demand is outpacing supply.

One often-overlooked solution to the lack of inventory is to build. 2021 is home builders’ time to shine. Luxury builders like Visionary Homes, Fieldstone Homes, and Ivory Homes build single-family houses and townhome communities at warp speed, even amid ever-rising prices and shortage of lumber. New building communities with new homes are popping up all over Davis County.

While new builder homes are a perfect solution for some, homeowners who would otherwise sell are still reluctant to put their homes into the housing market. The pandemic still looms, the real estate market lacks inventory, and homeowners want to see if their homes will appreciate any higher. The rise in home prices has significantly catapulted the worth of homes, resulting in wealth accumulation for current homeowners.

As the year progresses and more vaccines get distributed into people’s arms, we should see a shifting dynamic in more supply and less demand.

The pandemic lured buyers to purchase homes with more space and less cost, often causing some to move out of state and resettle in locations they otherwise would not have considered (e.g., the exodus from New Yorkers to the suburbs). As more people turn an eye toward using their stimulus payments in the economy and away from the housing market, that dynamic may be shifting.

The rising prices of homes may linger for the foreseeable future. Still, the high cap may also dissuade potential homebuyers due to the lack of affordability and fear of entering bidding wars until the lava cools.

NAR’s projections foresee a .5 percent increase in 30-year fixed interest rates over the next two years, resulting in higher monthly mortgage payments for consumers. While the housing market shortage won’t be solved instantaneously and may even last for a few years, it won’t skyrocket forever. So, where is the breaking point?

The good news here lies in the statistics and forecast from the NAR. NAR showed that Utah is one of the top states to have shown resilience and has predicted Utah will perform well in a post-pandemic environment. Homebuilding will continue, and new listings, constructions, and sellers will gradually emerge from the woodwork to restore balance. But until that happens, buckle in. It’s going to be a bumpy, frustrating year.

Coldwell Banker has been a trusted advisor for more than 114 years, helping buyers and sellers make the right decisions in times of prosperity and times of crises. Throughout our history, we have withstood numerous adversities and were born in emergencies following the 1906 San Francisco earthquake. Our goal has always been to bring honesty, integrity, and service to those in need.

As the news headlines raise questions and uncertainty over the housing market’s future, we at Inman Torres and Company are happy to provide you with real-time information and answer all of your real estate questions. You don’t have to go up to bat alone. We can supply you with vital market reports so you can be well-informed, including data on homes for sale in your area, homes sold, and your home’s current value.

Let us be your trusted advisor – we’re ready to share our expertise and answer all of your real estate questions. Please contact us today for a virtual presentation and discussion.

Build a Home in Utah

In today’s competitive market with low inventory, homebuyers are weighing all options, including using a home builder to build a home in Utah. If you’re considering building your next home, here are some pros and cons you should know before deciding.               

With new constructions expanding and helping to offset the current demand for homes, there are both benefits and pitfalls to building a home including location, time for the home to be built, and cost. Here are the pros and cons of investing in a newly constructed home from a builder.  

Pros of Building a New Home with a Builder

Building a Home in Utah

Inventory of Homes for Sale

With the bidding wars and continued low inventory of homes due to surging homebuyer activity, many homeowners are reluctant to put their homes up for sale, resulting in some of the lowest percentages of homes on the market we’ve seen. With newly constructed homes, you don’t have to worry about inventory. With a plethora of builders setting up handsome, newly constructed communities, you can easily find the area and home of your choice, or alternatively, purchase land to build your home on.  

Home Designs 

While older homes such as split-level houses have their appeal, the rooms tend to be smaller and more boxed in. By selecting a new construction to build a home in Utah, you’ll find vaulted ceilings, open floor plans, and plenty of natural light and space, both in the home and in the garage. Luxury is a common factor among our builders, and their mission is to make your life more comfortable. 

Going Green: Energy Efficiency 

With updated smart technology such as thermostats, doorbells, and energy-efficient appliances, a new home will equip you with lower bills while helping the environment at the same time. Newer windows and better insulation means more energy efficiency, helping to put more money in your pocket and save you in the long run. 

Customized Preferences 

Builders like Richmond Homes, Symphony, and Vision Homes have different floor plans to select from, and a wide range of options to help you customize your living areas to your lifestyle. Whether you prefer chrome, granite, or wood in your kitchen, different paint in the upstairs bathroom, or specific appliances, builders will allow you to customize your new home however you see fit. One of the best customizations new construction buyers enjoy is selecting the building site. If you prefer a wooded view, mountain ridges, or a nearby lake or reservoir, builders will work with you to tailor your new home to your needs. 

Cons of Building a New Home with a Builder

Negotiating 

We’ve all been there, haggling a price for a fun T-shirt or watch/piece of jewelry from a seller at a market. It can be frustrating, involved, and competitive – this is where a buyer’s agent comes in. A real estate agent will negotiate on your behalf and help pave the way to a smooth transaction with the builder. But unlike homes for sale currently on the market, builder prices are firm. They may charge for specific upgrades, and that is something new construction buyers should be aware of. 

The Perfect Location 

Moving anywhere involves several unknown variables. With a normal home purchase, you can scout out your potential neighborhood, say hello to a would-be neighbor, ask about the area, and check out the crime rate. While the landscape surrounding your would-be home at the builder lot may look inviting and green, you will be one of the first ones to move into your neighborhood. Some people prefer being the ground zero of their communities, but you will have no choice over who might move in next door, and that is a risk newly constructed homebuyers have to take.  

Landscaping 

It’s been said that trees have souls, and many homebuyers find a charm and appeal in moving to sleepy, quiet streets with shady, well-developed trees. Everything with newly constructed homes is new, including the landscaping. You will start your garden from scratch, but the good news is you can plant whatever you’d like.  

Proximity 

The walkability factor plays into a lot of homebuyers’ decisions as they navigate their next journey in life. Builders tend to place their new constructions further out into the suburbs. While there might be access half a mile or so away to a bus stop, you will have to wait for the community to be built and for schools, shopping areas, and infrastructure to find their footing nearby. This is important to keep in mind to make sure you can have access to grocery stores and key areas.  

Noise Pollution 

With newly constructed homes come everyone’s favorite word: construction. Count on a year or two of noise and ongoing traffic until your property and properties in the community are built. If you have patience and a good attitude, it will be worth it! But bear in mind that there will be a lot of hammering and noise during office hours. 

Building a Home in Utah

Inman Torres and Company can help you work with Home Builders to choose the right builder for you, and assist you in the home buying process from start to finish. Your Inman Torres and Company realtor can help you make the right choice to build or buy, and help in both processes.

For more information on how to build a home in Utah or questions on buying your next home, contact us for professional guidance and answers. As an award-winning team who work with builders on a continual basis, we can offer seasoned insight and help you make the decision that is best for you.

 

Risks Homesellers Take Selling Alone

Risks Homesellers Take Selling Alone

Recent news stories and headlines have blown up with articles on bidding wars, the rising prices of homes, and the lack of inventory. Since March of 2020, the real estate industry has experienced a massive shift with urban-area dwellers flocking to the suburbs, searching for a more comfortable place to work from home and live during the pandemic.

In today’s high pressured, fast-paced competitive market, when home sellers try to go it alone in selling their home, they stand a much riskier chance without a real estate agent. With technology at our fingertips, it can be easy to assume selling a home without any help would be easy. Why wouldn’t it be? We can order groceries to be delivered, pay our bills online, and conduct business meetings remotely. How hard could selling your own home be?

More complex than you think.

Many factors go into selling your home that make having a real estate agent pivotal. Common risks most sellers aren’t aware of include:

  1. Showing the Home to Multiple Buyers

 

Homes on the market today are guaranteed to get multiple offers, as many as twenty each. Exciting, certainly, but what this means for you as a seller is that you would have to coordinate showing your home to various buyers and agents at times that didn’t overlap. This means having a showing management system, keeping track of the agents’ and buyers’ contact information, and having their phones inundated with endless questions and scheduling. A clunkily organized home showing can turn a buyer off instantly. In addition to preparing the home to be showing through home staging, you as the seller would have to vet out who and when to show the house to, ensure the showings between buyers didn’t overlap, and hope you didn’t get confused with the showing times.

 

Real estate agents are skilled at organizing showings. They can handle facilitating the appointments and home showings the right way, and they can answer questions from other agents and potential homebuyers, so you don’t have to. Whether COVID-19 restrictions are loose or firm in your area, the need to have preventative measures such as face masks, social distancing, and clean surfaces when needed is real. Trained real estate agents have solid pandemic protocols in place to ensure everyone’s safety. They can safely coordinate a showing that does not include overlapping appointments or endangering anyone’s health. Agents act not only as essential negotiators and decision-makers when it comes to selling a home, but they are also responsible for the well-being of others, a safeguard you can’t afford to ignore.

 

  1. Navigating the Fog of Bidding Wars

Let’s face it, there’s a lot going on out there right now. One phenomenon that’s emerged in all the rubble is bidding wars. With more people wanting homes than are available, homes are selling for startlingly higher amounts than their original listing price. To anyone wanting to sell their home, that sounds like a dream. But how familiar are you with going through offers and the paperwork, and understanding the fine points of each? Who do you choose? Some buyers will send their offer in writing, sometimes with a personalized letter. Some will have their attorney contact you. Some may have complex forms for you to look through. Depending on whether the buyer is in your area or out of state, these forms and provisions may vary. Without a comprehensive knowledge of the real estate industry and being familiar with these forms, sellers may select whatever looks simple and genuinely miss out on the opportunity to profit from their home’s sale. This is why you need a real estate agent.

Agents are specifically trained and skilled at sorting through multiple offers. Through in-depth knowledge and the honed strategy of experience, agents can help you make the best decision. Sometimes, offers don’t fall through because a buyer changes their mind or initially puts an offer on the house not thinking they’ll actually get it. Having an agent by your side will help ensure you choose the legitimate offers over the hokey ones, something inexperienced homesellers aren’t sure how to do.  Selling a home is a stressful enough experience. Wouldn’t it make more sense to have someone deal with the legalities and details while you rest easy knowing you’re in good hands?

  1. Impulsive Decisions

 

Many buyers these days are putting offers on each property that comes on the market because they don’t know if there will be another one available. Some buyers are doing this on homes they haven’t even seen in person. Today’s hot market challenge is not in getting offers – homes are rife with offers right now. The challenge is finding the right buyer for the home, and seeing it through until the end.

Impulsive decisions are born out of fear and desperation, which are two factors that have been prevalent in the last year. The problem with this is that you will get many buyers that are not all-in. If someone puts in a bid from afar and then decides to look at it, the home might not look as good as it did during the virtual tour during the inspection process. Maybe there’s not enough natural sunlight or the rooms look smaller in person. Perhaps too many repairs are needed, and you’re not sure what to say to keep them interested in the property. If a prospective buyer backs during or after the home inspection, it can bode poorly for the perception of the home’s value. Agents are adept at communicating with buyers and their agents and negotiating any potential loopholes or repairs.

 

  1. Negotiation Strategies

 

A real estate agent can negotiate your transaction from start to finish, dealing with the paperwork, photography, home showings, offer retentions, and necessary legal forms needed to make your home sell for its maximum potential. Without comprehensively understanding the art of negotiation in the real estate industry, home sellers attempting to sell their property alone run the risk of making bad choices and not complying with all the legalities needed to complete a home transaction.

 

  1. Unfamiliarity with the Market

 

Have you ever seen a movie where the characters are at an auction, and the auctioneer is rambling off an item so fast it’s hard to tell what they’re saying?  You can equate that to trying to sell a home on your own with no knowledge of the real estate market. Sellers who don’t have an agent run the risk of costly mistakes.

 

Without the certified training real estate agents possess, professional photography for home tours and galleries, or knowing how to position a home listing correctly, sellers put themselves in an awkward and dangerous position of wasting time and money trying to sell their home. Real estate agents can give homeowners tips and tricks to help prepare the home to sell for the best possible value.

 

  1. Red Tape and Repairs

 

Ever heard of Murphy’s Law? “Anything that can go wrong, will go wrong.”

 

There will always be some form of red tape when you buy or sell a home, and being prepared for that by having a real estate agent will help you sail right on through those murky waters. Some things that may go topsy-turvy include:

 

  • A buyer’s financing may not go through
  • Unexpected delays
  • Lender extensions
  • Prolonged processing times
  • Needed repairs (roof replacement/leaks)

 

Experienced agents have relationships with a myriad of lenders, title, escrow, contractors, and other service providers to get more insight or provide alternative solutions when needed.

 

  1. Transitory Issues

 

With the need for homes greater than ever before and a shortage of inventory, it stands to reason that you might have trouble finding the home of your dreams when selling your current home. Many sellers want to stay in their home past the closing date in order to transition until their next offer is accepted safely. Do you know what a post-closing occupancy agreement is, or how it works? A real estate agent does, and they will be your saving grace when it comes to getting a little more time to transition safely.

 

Real estate agents will facilitate between you and the buyer to work out a period for you to have enough time to transition and move out of the home. Without a legal agreement drafted by an agent, sellers run the risk of not having anywhere to go once their home sells.

 

When there is a storm, we like to have an umbrella to protect us from the rain. During a pandemic, we wash our hands, wear a mask, and social distance. When you sell a home, a real estate agent acts as a negotiator, protector, and gatekeeper of your most trusted asset. With the market constantly shifting more than ever before and historically high movement over the last year, sellers need agents to help pave the way for them to safely and most efficiently net their home’s maximum worth, while safeguarding their interests. There is no room for complacency.

Contact us for further info on selling your home.

 

Risks Homesellers Take Selling Alone

 

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