Salt Lake City Real Estate Podcast with Justin Udy

What does it take to buy a home? If you are someone who is looking to buy a new home or helping someone else through the process, there are some things that you should know. Today I have a quick list of things that you need to know:

Before I was ever a real estate agent, I was buying and selling investment properties. This is something I’ve always enjoyed and something you should think about. Whether you’re thinking about buying your first property or your fifth, here are a few helpful tips for success with investment properties:

1. Always make sure your finances are in order. We are finding fantastic properties, but when one buyer’s finances fall through there are always three or four back-up offers from eager buyers waiting to pounce. The seller won’t hesitate to move to the next in line if you’re not prepared.

2. Be proactive about having everyone and everything ready to go. If we’re dealing with a development, that means we need engineers, geotech, soil testing, surveyors, and architects. We want to make sure that we have the proper forms, rent rates, and every other detail ready to go. We have all of these resources ready for you so that you can find success.

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Investing in real estate is a fantastic way to build wealth.

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3. Find the project. The market is great and I think it will go up for at least the next 18 months. There’s going to be an affordability issue at some point, and then you’ll see a leveling off.

When it comes to what investors should be looking for in a property, there are three must-haves:

1. The property must have equity already.

2. There is an opportunity to maximize its best use.

3. There is a potential for cash flow.

If you don’t have these three things, you’re facing an uphill battle. For example, if you don’t have a property that’s cash-flow positive, that’s when people go bankrupt and lose everything. Back during the mortgage crisis, my rentals went down significantly in value, but the rents remained the same. I was able to use that money to sustain my business during those tough times.

There are so many opportunities involved with investing in real estate. If you have any questions or you want to learn more, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

What does it take to buy a home? If you are someone who is looking to buy a new home or helping someone else through the process, there are some things that you should know. Today I have a quick list of things that you need to know:

1. You have got to talk to somebody that is an expert advisor. You need someone that can help you navigate through the process. They must know what to look for—not only the problems of the sticks and bricks, but of the values of that property short term and long term. Get the right person—somebody that understands the market and can take you through everything.

2. Shop for the perfect property. It may be easy to look online, but it’s hard to narrow down your options. Sometimes it involves taking your 100 favorite properties and narrowing it down to your top ten before picking out one. At the end of the day, set a parameter. Then we can help you look for a home and make an offer. We evaluate not only the values of the market but also what we're seeing today.

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Set a parameter, then we can help you look for a home.

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3. You will want to research it. You have to know, based on the offer and what has been established, is that property worth it? We bring in all of our resources, including home inspectors, engineers, and electricians, with specialized expertise that can help us check it out and get more information about that property. Every property is completely different.

4. Make sure that you are keeping your finances safe. Don’t buy dumb things or lose/quit your job. Keep everything in order. Make sure that everything is perfect with finances.

5. Next, we are going through closing. We've set everything up. We have researched the property, found the perfect home, and our finances are ready. Once the appraisal is back and the due diligence is complete, we are going to close the property and get the keys. You own it.

If you have any questions about this process or want to know more about why you should buy now, please don’t hesitate to contact me. I would be happy to speak with you any time by phone or email. I look forward to speaking with you soon.

Remodeling Magazine recently came out with a list of the top projects with the highest return on investment.

I’m going to share this list with you today but before I do, there’s something I want you to keep in mind: Things in our market might be a little different than what works well on a national level. Overall, this list has a lot of great points that can help you earn more money for your home.

Before you make any major remodels, we’d be happy to provide you with guidance as to which projects will work best for your home.

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Before you make any major remodels, please come to us for guidance.

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1. Attic insulation

2. A new front door

3. Stone veneer

4. A new garage door

5. Kitchen updates

6. New siding

7. New windows

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

What should you expect during an inspection?

First of all, there are three general types of inspections: a surface inspection, an in-depth inspection, and a professional inspection.

A surface inspection is a basic walkthrough of the home. When this kind of inspection is performed, the inspector is looking for anything that might interfere with the property in terms of safety or stability. Things like burn marks, mold, or other physical identifiers of poor condition.

Surface inspections are only done about 10% of the time. Frankly, these kinds of inspections miss quite a few things, since they aren’t conducted by a professional home inspector.

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A home inspector is going to find something wrong, even if the home is a new construction.

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This is why we recommend an in-depth inspection. A home inspector is going to find something wrong even if the home is a new construction. Inspectors, like attorneys, will always find an issue. They have been hired to do so.

When buyers and sellers negotiate the issues found in an in-depth home inspection, they will pay the most attention to safety and maintenance issues. It will depend on the individual transaction as to what fixes the buyer asks the seller to make or whether they ask them to make any repairs at all.

If the issues that are significant or specific enough, it may be time to hire a specialized professional to take a look. Using the example of a home with electrical problems, you may want to have an additional inspection performed by an electrician.

Any repairs that need to be made will typically be done within the due diligence period before closing.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Why is buyer optimism higher than we’ve ever seen it? Today, I’d like to go over a couple reasons for this mindset.

Fannie Mae recently did a study that demonstrated that a large number of buyers were more prone to and optimistic about buying a home. If you think about inventory from a national level, you’ll get some interesting numbers. We are about 6.5% lower in inventory compared to last year, and yet, we’re about 6.9% higher in appreciation, price, and growth.

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Typically, the success of the market is typically tied to economic factors and growth—two areas in which we are doing fantastic.

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So with that in mind, what is giving buyers the sense of optimism we’ve seen?

1. Interest rates have remained pretty low over the year. Even though prices are rising, interest rates have gone down and have actually made it more affordable to purchase, despite that change.

2. The demographic of who’s on the market has shifted. When Fannie Mae did the study, they found that the average homeowner’s income was around 125% of someone who was buying. Right now, it’s actually closer to 150%. Millennials who were previously holding off on entering the market are now beginning to look at purchasing homes, as opposed to renting.

3. There has been steady job growth. Because of this growth, the market is starting to look appealing to more people.

If you’re a buyer, know that our market is good, interest rates are fantastic, and inventory is excellent. If you’re a seller, just know that there is a market of people looking to purchase. We expect to see a great market over the next few years as well. The world of real estate can always change, but typically, the success of the market is typically tied to economic factors and growth—two areas in which we are doing fantastic.

If you’re looking to buy a home, we’d be happy to give you free access to our home hunter buyer system found here. If you’re selling, we’re more than willing to give you a free home evaluation. We look forward to talking to you soon.

Is history repeating itself?

Right now, some people are worried about the state of our market. People are afraid that the extensive, fast growth we’ve seen over time is going to lead to the market bottoming out.

I’ve witnessed some truly heartbreaking transactions in the past. I have even seen sellers weep at the closing table. But, is our market as scary as some think?

Well, I look at a large quantity of information pertaining to real estate each and every day. There are so many economic factors that drive our market, and all of these factors are ones I closely examine all the time.

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The bottom line is that our current real estate market is still going strong.

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It is these same factors, which can cause issues, that can also cause a great deal of growth and opportunity. So if you’re concerned about our market, you may want to consider a few factors. Our market is not the same as it has been in the past.

Current interest rates are phenomenal and lenders are being picky—they are making sure that buyers are truly responsible enough to move forward in a transaction.

Another factor that is different about today’s market is that we’re seeing much more dynamic job growth these days. People are coming to our city for our jobs, culture, and amenities. The bottom line is that our current real estate market is still going strong. We are definitely in a healthy market.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Why should you be paying attention to the terms of the market? Actually, there are a couple of reasons.

Whether you’re buying an investment property, you’re buying a second property, or are moving into a single-family home, the terms of the market are just as valuable as the price.

Let’s take the example of comparing a $1 million home at a 1% interest rate to a $100,000 home with a 10% interest rate. These payments would end up being very similar, but the real issue is the terms of the interest rate.

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The terms of the market are just as valuable as the price.

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There are a few quick statistics I’d like you to think about. The average rental rate in the market is constantly rising. And with all of the people currently moving into our area, this is expected to continue.

My point is that: interest rates in the market allow us to purchase and own at a better price. This means you can typically own a home for less money than it would take to rent one.

These interest rates will not last. And when they do rise, you won’t be able to match the kind of terms we’re seeing today.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Today I want to go over a few fall maintenance tips.

Fall and winter hit us very quickly here in Utah, so there are a few ways you should think about preparing before it’s too late in the year to do so.

First, get an automatic change form if you have renters in your property. That way, the property is automatically transferred to your name if they leave. I have literally walked into properties where I’ve found ice hanging from the ceilings. Getting an automatic change form can avoid disasters like this.

Secondly, make sure you seal everything. Water can cause mold and structural damage, so make sure your doors, windows, and other areas are all properly sealed.

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You absolutely do not want your furnace to go out when it’s 10 degrees outside.

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This brings me to my third tip, which is to seal your gutters. I’ve seen basements actually flood because of water coming down from the gutter and directly into the basement.

Also, another tip I want you to think about is to check your furnace on an annual basis. You absolutely do not want your furnace to go out when it’s 10 degrees outside. Make sure you are checking and maintaining it as needed.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

In this market, 90% of homebuyers get a loan, while 10% of buyers pay cash. If you are getting a loan, there are a few things you need to know.

It’s always crazy when we get to a closing table with a buyer who has an amazing income, great credit, and a good job only to find that they are denied from getting the loan.

The buyer then loses their earnest money and any money they spent on appraisals and inspections, not to mention the emotional investment they made in the home. If you want to get the keys to your next home, there are a few things you need to remember.

First of all, don’t make any large purchases. Don’t buy a car or any furniture. Big purchases put a balance on your credit card, which could be a red flag for lenders. Big purchases also push your ratios, which could impact your credit score. Avoid buying any big-ticket items. I would be very careful about spending over $100, and I would avoid spending over $500 altogether. You can always buy furniture once you have the keys to your home.

Also, let’s say you buy the furniture and something else happens to cause the deal to fall apart. Now, you’ve not only lost your home, but you’re also stuck with a couch you can’t return. Just wait until you actually close on the property until you buy any furniture.

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Wait until you have the keys in your hand before you make any large purchases.

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Secondly, make sure you stay at your job. I’ve seen buyers quit their job just two or three days before closing. In order to buy a home, you have to have income to pay the mortgage. The bank usually verifies your employment the day of closing or the day before, so don’t quit your job the same week you close.

Even going on sabbatical or medical leave can negatively affect your closing. If you are not actively working, getting a paycheck, and making money, you won’t be able to get into that home.

Finally, don’t start applying for additional credit. If you start applying for different credit cards, your credit score will be affected. Applying for more credit also raises a red flag for the lender. They may wonder if you are applying for credit because there is an issue with your income.

Ultimately, the best thing you can do is just sit tight until you close on your home. Don’t apply for credit, don’t make any major job changes, and don’t buy a boat or a car or furniture. Just hold on until you have the keys in your hand.

Here’s a little bonus tip as well: Make sure that the down payment can be refunded. Deadlines can be moved and closing can be delayed, so make sure you are flexible with those. If the deal does fall through, make sure you can get your money back.

If you have any other questions about buying a home in our current market, just give me a call or send me an email. I would be happy to help you!

At the end of June, U.S. News & World Report named the greater Salt Lake area as one of the 10 best places in the nation to live in terms of home affordability, job opportunities, and the cost of living. Because we’re in a location where values continue to grow, there are five strategies you as a buyer need to follow to win in this market.

For most people, the biggest fear they have when moving on to their next home is being able to find that home in the first place. To be prepared and to combat any uncertainty, you must first get pre-approved. This will give you the ability to purchase the home you want after you sell your current home.

Second, you need to have your agent do a market analysis for you so you’re correctly evaluating the homes on the market and whether they fit your pre-approved budget.

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Be ready to move quickly if you

see a home you like.

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Next, you need to prep your current home for the market. The home preparation method we use for our buyers, for instance, includes our 75-point photography checklist, home staging, and our pre-inspection checklist. All this is done to make sure your home is ready to go, ready to show, and ready to sell.

After that, be knowledgeable about the market so you know how to deal with multiple offer situations. We educate all of our buyers about this subject so their offers are the ones getting accepted.

Lastly, be ready to move quickly. In our market, if you see a home you like, there are probably three or four others who like it as well. If you adhere to the four previous points mentioned above, you should be able to get the home you want.

If you have any other questions about what you need to do in order to move into your next home, don’t hesitate to reach out to us. We’d be happy to help you.