With all that is going on in the real estate market I think it’s time for another installment of tips on buying a house in Tooele County.
Actually this will be a little different. I have re-posted 3 outstanding articles that I posted on FB over the last few weeks. They were from my pals at KCM and are well worth the read. In case you missed them, here is another shot, with some additional commentary from me.
They deal with 3 topics that should be important to any one considering a home purchase:
- Home Prices:
- Making an Offer:
- First Time Home Buyer:
Here you go; my local take on each article will be found at the end of each home buying tip.
What is Really Happening with Home Prices?
Home values have softened over the last twelve months. We are no longer seeing 6-7% annual appreciation levels for the national housing market. The current numbers are closer to 4%. Some have suggested that year-over-year appreciation levels could fall to 3% or less this year.
However, a stronger-than-expected economy and a good spring housing market have changed some opinions. Some analysts are now predicting that home value appreciation may begin to increase as we move forward.
Here are three examples:
“Data on the movement of unadjusted house prices during the early spring home-buying season won’t be available for a few more months, but it’s quite likely that price appreciation will accelerate again.”
“Home prices nationwide, including distressed sales, increased year over year by 3.7% in March 2019 compared with March 2018…The CoreLogic HPI Forecast indicates that home prices will increase by 4.8% on a year-over-year basis from March 2019 to March 2020.”
- The 2018 4th Quarter survey called for 3.8% appreciation for 2019.
- The 2019 1st Quarter survey raised the appreciation projection for this year to 4.3%.
Price appreciation has slowed over the past year. However, a strong economy and a good housing market have many experts thinking that home values might re-accelerate moderately throughout the rest of this year.
My Take On Home Prices:
My suggestion regarding housing prices is, Compare, Compare & then Compare again. I mean that unless there is some compelling reason why you MUST stay (or buy) in a specific area, you value price areas and neighborhoods to see where you get the best bang for your buck.
I have a simple tool to help with that, and while it’s not scientific, it is a great way to ballpark what you can expect to see one area to the next in the market. It is a simple price per sq.ft. app on my website. I put in parameters of the ideal home for my family and then see what similar houses are listed for in each defined area. IE: subdivision, city, township, or county.
Here are some examples: We will use as our model a 3 bedroom 2 bath single family home built on at least a quarter acre lot not more than 10 years ago.
- Homes available in Tooele City
- Houses in Grantsville UT
- Listings in Stansbury Park UT
- All listings in Tooele County
- Herriman UT listed homes for sale.
While I have admitted that this is not scientific, what it shows is the average cost per square foot in Tooele County is $119.00 sq.ft. The average square foot cost in Herriman UT is $139.00. That means on average we could be saving $50,000 by considering a home out here.
4 Tips for Making a Competitive Offer
So, you’ve been searching for that perfect house to call ‘home,’ and you’ve finally found it! The price is right, and in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true!
Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:
1. Determine Your Price
“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”
Based on your agent’s experience and key considerations (like similar homes recently sold in the same neighborhood or the condition of the house and what you can afford), your agent will help you to determine the offer that you are going to present. I’ll talk more about how important the agent ranks in the tips on buying a house in Tooele County UT article.
Getting pre-approved will not only show home-sellers that you are serious about buying, but it will also allow you to make your offer with confidence because you’ll know that you have already been approved for a mortgage in that amount.
2. Submit an Offer
“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.”
Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market! A licensed real estate agent who is active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer.
3. Negotiate the Offer
“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.
Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.”
If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller or even cancel the contract altogether.
4. Act Fast
The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.
Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as quickly as possible.
Whether buying your first home or your fifth, having a local real estate professional who is an expert in his or her market on your side is your best bet in making sure the process goes smoothly. Let’s talk about how we can make your dream of home ownership a reality!
My Word On Making an Offer
I can’t disagree much from the old bottom line from the original post. Except…I need to point out that all agents are not created equal, and your most important job will be to partner up with the best agent you can find. Check out this Bio @ about Berna Sloan & see a path of success that spans almost 25 years.
New Research Shows Housing Is Affordable For First-Time Buyers
Home prices have been on the rise for the last seven years, leading many housing market analysts to conclude that first-time homebuyers are being shut out of the market due to affordability concerns.
The National Association of Realtors (NAR) reports on the percentage of First-Time Home Buyers (FTHB) on a monthly and yearly basis. Their latest report shows that FTHB’s made up 33% of buyers in March, which matches their reported share in 2018.
NAR uses survey data from their members to come up with this statistic, so their results do not include every transaction completed. Rather, they only show the transactions reported by members who complete the survey.
The other entity that reports on FTHB share is the American Enterprise Institute (AEI). The AEI uses data from mortgage applications that define an FTHB as “any borrower who did not have a mortgage for the preceding three years.”
This means the AEI measurement also includes former homeowners who transitioned out of a home they previously owned and re-entered the market after at least 3 years. The latest FTHB share data from AEI shows that first-time buyers made up 57.5% of all mortgages in August 2018. NAR’s data shows a 31% share for the same time period.
New research from the New York Federal Reserve shows that these traditional reports on FTHB share have been unable to give an accurate depiction of this group’s involvement in the market.
The NY Fed was able to take consumer credit data and identify when a mortgage payment entered a consumer’s credit report to determine when a first-time home purchase was made. Using this data, they were able to show that AEI’s reported FTHB share was consistently 10% higher. The NAR reports were right on par with their findings until 2010, when NAR’s share dropped to the 11% gap seen today.
So, what does this all mean?
First-time home buyers have not disappeared from the market as many analysts had believed. Buying a home is very much a part of the American Dream for younger generations, just like it had been for their parents and grandparents.
This also means that rising prices have not scared buyers away from the market. Many first-time buyers are making sacrifices to save their down payment and make their dream a reality.
If you are one of the many renters who is scrolling through listings on your phone every night dreaming of buying your own home, there are opportunities in every market to make that dream a reality!
What’s in it For First Time Home Buyers
This is where buying Real Estate in Tooele County real shines. I consider this the 2nd most important of the tips for buying a house ti Tooele County UT.
The number 1 reason first time buyers are reluctant to enter the housing market is down payment. Saving the money for a down payment and still have a life is a challenge in itself. BUT
Not in Tooele County!
A government backed no money down home mortgage is still allowed in Tooele County. It’s called a rural housing loan, and is offered by the USDA. The loan was designed to help rural areas be more competitive. I’m not sure how much longer this mortgage product will be available, but as long as it is, put those benefits in your list (on the side of Tooele County).
Still interested? Give me a call. Let’s talk. Berna Sloan 435-840-5029. Just mention you saw me on tips on buying houses in Tooele County UT