A Home Warranty May Be a Good Idea for Your Home

The home warranty has at some points been a bit confusing for buyers. They wonder what it is and what does it cover? How is it different from homeowner's insurance? Some feel the home warranty may be a waste of money and others end up using it right away and were thrilled they got one. Essentially, it is similar to an auto warranty you get with your new car. The policy will cover some items that break in your home, but not others. Deductibles generally apply.

The Real Estate Purchase Contract has a spot right in the contract that spells out whether you wish to have a home warranty as part of your closing package. The Home Warranty section in the Utah approved Real Estate Purchase Contract is section 10.1.

Most agents representing a buyer will recommend asking for a policy to be bought for the buyers and paid for by the sellers. As a buyer’s agent, I have not always recommended this to be the case. If the buyer wants to get aggressive for any reason and place the best offer forward (especially in a bid war), they may not ask for a home warranty. Each situation is different. 

I would recommend that you ask your agent to give you a few reputable companies to review. Get a copy of their policy and see what items they cover, what their deductable is, and how long the policy will last. Most policies last a year from date of purchase. The companies will generally send you a form to renew your policy at the end of the year if you wish.

 You can buy extra coverage for certain items like hot tubs, pools, HVAC systems, etc. Make sure you review the policy against the home you are buying to get the most efficient coverage possible.

Next post – Flood zones and flood insurance

Should you get a Survey for Your New Property?

Should you survey your property? Is it the seller’s responsibility or the buyer’s?

Every state is different and it is best to ask your Real Estate representative prior to signing a purchase contract. In Utah, it is a “buyer beware” thought process. This essentially means that the buyer takes on the responsibility of paying for all of the inspections, surveys, etc., as part of the buying process. If you want to request the seller provide you with a survey, then it’s good to make that part of your requests in your purchase contract. It is the buyer’s prerogative to ask.

I suggest you ask for references on local surveyors and get quotes from three different ones. I’ve seen pricing on the same parcel go from $700 to $3,000 depending on the surveyor. You also need to make sure your surveyor is giving you the type of survey you need. A metes and bounds only? Add survey caps in? Topographical lines added? What kinds of features do you want listed? Fences, improvements, flood zone lines? Make a list and ask your surveyor what things he/she might suggest you add as part of your survey.

I highly recommend surveys, especially for raw land parcels or lots outside of subdivisions. Homes and lots inside newer subdivisions should have recent surveys done. In these cases, it may be good to get a surveyor to highlight or place points if they are missing.

I’ve seen land parcels where a neighbor built half their cabin on the adjacent parcel. I’ve seen surveys where the neighbor built their rock wall fence and driveway partially onto the neighbors yard. I’ve had properties surveyed where the surveyor found major mistakes from the previous surveyor and we had to spend an extra couple of weeks correcting the line discrepancies. If there is any question at all where your lot lines are PLEASE GET A SURVEY! It could save you thousands of dollars, court time, headaches and grief. 

If you are concerned about your surveyor, I'd recommend getting references, checking to make sure their license is in good standing, etc. The best thing to do is ask your Realtor. They, no doubt, will have various referrals to suggest.  If you are using an engineering firm to build your home, they will also have a survey crew as part of their team.

Next post:  Home Warranty

 

Tips and How-to's on Buying a Property or Home in Southern Utah

The home buying saga continues……

You have found a Realtor you are comfortable to work with and have figured out your financial abilities and how you hope to purchase your property. The next step is to start reviewing the properties for sale out there. I usually start by reviewing all the properties listed on the Multiple Listing Service. The local MLS will have the majority of the properties for sale. You can also get out there and drive around and see if there are for sale signs on parcels that are not listed.

Not all Real Estate agents belong to the Association of Realtors. Those that do not belong are not called Realtors, (that is a trademarked name) and they do not have access to the MLS. As you go through the active listings you can start to filter through the properties you are very interested in, possibly interested in, or do not want to consider at all. It is extremely helpful to go through the list ahead and delete those that are not to be considered.

I’ve been out on tours before with folks who have not done this process and it is challenging for a few different reasons. We end up either seeing a lot of properties and you soon cannot remember one from the other and you get the “deer in headlights” look and/or you waste the sellers time and their agents by viewing a parcel you have no desire to buy. I’ve pulled up in front of homes before and had the buyers tell me from the road they have no desire to see the home. I have to then go up and knock on the door if the seller is expecting us and cancel the showing. That is very hard on everyone involved.

It is better to take the time to preview properties first, if at all possible, so that you can screen out the listings. We all realize that sometimes this is not possible, but if it can be avoided, then it is best to avoid that type of situation. With all the technology at our fingertips today it is far easier then ever to preview a home online and know almost everything about it before you get there.

After we spend a day or two looking I find it is often fairly easy for me to tell if the buyer is ready to commit or not. I’ve spent a lot of time with some buyers who spend our whole time finding fault with every property we see. I have found that when this happens the buyers are simply either not ready to buy or have something going on in their life that they are not being realistic about. (ha ha…another way to say they are not ready!)

If you find you are doing this while home shopping you may want to stop yourself and ask yourself if you are “truly” ready to buy a property.

When buyers are ready, they usually spend a lot of time at all the parcels and try to envision themselves living there. Sometimes they find “the one” and spend all their time there or they make arrangements to come back to “the one” every day or few days to re-visit it over and over.

Sometimes buyers surprise you, so you never know. I’ve been with a few buyers who I would have swore were not going to buy and the next day they call me to write an offer.

After you get done looking at the homes and find the one you want to buy it is a good thing to discuss the offer process with your Realtor. I’ve had some buyers want to take the night to think about it and discuss it before we write the offer and others want to get the offer written right away. I, myself, prefer to take the time to think about it overnight, so I understand the need to take that time.

As a Realtor I try to find out from the listing agent if there are other offers potentially coming in or if we seem to have a few hours to sleep on it. If other offers are coming in, I then counsel my client to consider getting an offer in quickly or just letting the other agent know we are coming in with an offer. Most seller’s agents welcome a multiple offer situation so they are often willing to try to counsel their sellers to hold out to see your offer. Most are also willing to keep me informed of any updates while we are waiting for my buyers to make a decision. There is always the risk of losing it however.

I’ve been in some situations where my buyers and myself feel we are being manipulated into thinking another offer is coming in when in fact it is not. This is done just to get us to write an offer and a good one at that. It is not always easy to tell if there is truth to it or not.

I counsel my client to act as though it is true and write an offer accordingly. Meaning, write an offer you will be happy with. I don’t want them to feel they have overpaid and then later regret it nor do I want them to try to be a hard bargainer and lose it and then later kick themselves because they lost it. I have them make the decision that they can live with one way or the other. I’ve seen both sides of the coin and it is not pretty to witness. It is far nicer to see a buyer get a home they really, really want, even if they have to pay a bit more then they had hoped for but not so much that they feel “stuck”. I really hate to see a buyer refuse to budge on their bargain price and then lose it to another buyer who felt there was value there and then the buyer spends many years wishing about what they could have had and lost.


Part of your buying process should be asking your Realtor for a list of all the most recent sales in your area. It is often amazing to find that there is a large discrepancy between asking prices and ultimate sales prices. Also, if you go to different states or areas you will find that buying practices in one area may be different then another area.

When I bought a parcel in New York I asked for all the sales comps and could see that the sales prices were within about 5% to 2% from the asking price. In Southern Utah, at the time, the difference was about 20%. So I knew if I wanted to be successful I needed to conform to the general buying practices of the area.

Your Realtor should have the ability to access all the sales comps in the area you are shopping in. I am not sure about the rules and laws of all the states but in Southern Utah at least this is true. Don’t be afraid to ask.

Visit my website for more information: www.zioncanyonrealestate.com

How to Get a Home or Property Loan

Where do I get my loan?

That is a great first question.  There are so many options out there.  Most Realtors have found at least a few great lenders that they like to recommend. The best lenders are those that help their clients get into good loans with great rates and do their best to get that loan with little to no problems as well as quickly.

How to find a good Lender

It is generally a good idea to talk with at least three different lenders to see what rates and fees they can offer you. I’d also find out which loans they may recommend for your personal financial situation. 

Have a good conversation with the various lenders. Through this process you are likely to find one that will work well with you. It is really important that the lender be able to listen to your needs and that they can be with you every step of the way through the process.

Why I suggest Mortgage Brokers

When I discuss lenders with my clients I often give them the name of a couple of lenders that are loan brokers.

Mortgage Brokers can generally broker a loan from a number of sources.  This is one of the biggest advantages to using a mortgage broker. They can listen to your financial picture and help you find a loan that will fit your needs. 

One of my clients was able to get better rates and fees from a major national bank through the loan broker I recommended compared to the mortgage officer who came from the same bank.  

The one drawback I have experienced from a mortgage broker, however, is finding a loan for a challenging property.

When to go to a Local Bank or Credit Union

When I am trying to get a buyer into a property that has loan issues, whether it is a lot, a modular or manufactured, or in a niche area with appraisal issues, I will strongly urge my client to talk with one of the local, community banks or credit unions. 

The local banks and credit unions are in a much better position to understand the various local markets and the appraisals that come out of those areas with comps that are not standard. Local banks generally have a vested interest in helping fund local projects and homes. Some of the local banks do not sell the loans but service them in house.

When to go to a Major Bank

The third category of popular lending options are the major banking institutions such as Bank of America, Wells Fargo, Chase Manhattan etc.  

These banks are large conglomerates with multitudes of personnel and departments in separate areas all over the country. They may have the ability to offer better rates or fees then some of the other institutions. I have worked with some of these “in house” lenders and have found for the most part they do fine as long as the property is a standard home with relatively few issues. If your credit is A grade the loan goes through generally very quickly and smoothly. 

The biggest problem I have seen with some of these larger conglomerates is the lack of really great customer service. If you don’t care about someone really helping you understand the loan your getting or the process you are going through then it may be a good financial move to get a quote from one of these lenders as well.

Timing for a Loan 

At this point in our market it is a great idea to talk with your lender about timing for a loan closing on the home you want. For instance, Bank of America was requiring 60 days for a home I just worked on with a gal. The lender we used could have gotten the loan done in less then 30 days if the seller wasn’t using Bank of America as well.

Cogs in the Wheel

The following is how my experiences have left me feeling about the various lending institutions I have dealt with over the years. Picture a machine with cogs in the wheel.

• Mortgage Brokers usually seem to have their wheels greased and on caffeine! Who cares how many cogs they have. They are bright, happy and running for you.

• Community banks have few cogs and seem to go at a fairly good pace. Pretty steady humming. They can do a good job and if a hiccup occurs they seem to roll with it pretty well as they all communicate with each other.

• Large Banks have many cogs and the cogs don’t always work together. Or the one cog doesn’t always know what the other cogs are doing and they run against each other. If you get squished in between the cogs no one notices. The machine just keeps running. No one really knows who is in charge of the wheel. Seems like it just runs by itself. But if you can get in while it’s running smoothly, they can crank a lot of stuff out. They just don’t take hiccups in the machine very well. 

Your experience may be different and you can certainly dialog with me about it but after 12 years of working with all the various lenders I have seen a fairly similar pattern in the various lenders I have worked with.

Next Week: We will explore different types of loans. We don’t want to tire you out too soon!

How to Buy Real Estate in Zion Canyon Area Utah

Marcia Pierce-Rasmussen Associate Broker:  My Story 

ERA Brokers - Hurricane

435-635-4636

Buying Real Estate...any Real Estate...can be an overwhelming and daunting task. Especially if you are a first time buyer.

Real Estate agents are there to help guide you through the process. They are required to take 120 hours of classes to understand the whole process from beginning to end. I remember graduating from the courses, passing my exams and getting my license in the mail and thinking “Now what do I do?”  My first client was a seller finance deal with very little down. I was such a “newbie”. I had no idea where to even begin. The classes were great for learning and understanding the concepts of Real Estate but did not teach the practical applications of working with all the emotions involved in any transaction and how to actually go through the process from beginning to end. 

I have been in the Real Estate business since 2000. I worked hard for and received my associate brokers license in 2007. I feel like I’ve been through the trenches and seen more things in Real Estate then I would have ever thought possible. Every time I think I’ve seen it all a new transaction occurs with something that I’ve never seen before and did not expect. At this point in my life, Real Estate has kind of become second nature. Someone very close to me suggested I start a blog that begins to explain the challenging prospect of buying (or selling, for that matter) Real Estate in the Southern Utah area, more specifically, Zion Canyon. Thus, our story begins...

How to buy Real Estate in Zion Canyon area

Step 1: Research the area

The first step in any purchase is to explore the area(s) where you want to buy a home and/or property.  Look around. Get out and talk to the neighbors, the town officials, folks that work at the neighborhood cafes. See what amenities are available in the area of your choice.

Make sure that you and your lifestyle “fit” in your chosen area. I’ve seen many buyers come to the Zion Canyon area because they "LOVE the mountains and Zion Canyon as well as all the recreational activities the area has to offer”. After a few years they put up a for sale sign on their home and move because they didn’t research the neighborhood to see if they “fit” with the people who live in the area. It could be almost anything. The neighbors, the wildlife, the wind, or the sun. It is a great idea to look at all the aspects of the area and try to picture yourself living there with EVERYTHING it has to offer.

Step 2: Hire a Real Estate professional 

Once you have made your decision on the location the next step is to hire a Real Estate professional. It is a good idea to research the area to find the agents who specialize in that area. I do not recommend using any Realtor such as your cousin up in Salt Lake to help you purchase a property in Springdale, Utah. I’ve seen this happen and it leads to many problems and potentially threatens your familial relationship with that person, all because you want them to get the commission check. 

Find the Realtors who specialize in your area and talk to each of them. Interview them. I wouldn't recommend quizzing them on the number of transactions closed and length of time in the business, but ask them questions about who they are. What are their likes and dislikes. What are their hobbies. Ask them how they would solve certain dilemmas. You want to make sure your agent understands your needs and has the ability to work for you. 

I have met many great agents out there. It is a pleasure to work with them in a transaction because they really work hard for their clients and go the extra mile to do everything they can to make sure each client is taken care of. I have met other agents who seem to disappear once the papers are signed and do very little else to earn the pay they receive. These agents, thankfully, are few and far between but they are out there.

If you want to ask for references from past clients just ask. Most agents will be happy to give you a list of clients they have serviced. You can also ask these folks how well they were taken care of throughout the transaction.

Next week:  "Financing"

For more information:

Marcia Pierce-Rasmussen 
Associate Broker
435-619-3069
ERA Brokers - Hurricane, UT
10 North 100 West
Hurricane, UT 84737
435-635-4636

Visit her on the web at www.zioncanyonrealestate.com

http://zioncanyonrealestate.com/property-details/1640_acre_kolob_road_virgin_ut/0_13-147173/