5 Keys to Closing on a House or Property in Southern Utah

Sorry for the delay in this next post. Life got away from me for a bit. Holidays happen and life gets hectic for a time. I am sure you all can relate.

To continue with our home buying saga...


Once you have an accepted offer, boy oh boy, the time clock starts ticking. So much to do before you can close! There may be an inspections period that ends prior to your loan denial deadline or possibly just after.

Key 1: Look at section 24 of the Real Estate Purchase Contract (for Utah).

Every situation is different. Look at section 24 of the Real Estate Purchase Contract. This will name the important dates you need to keep in mind for your contract period.  Write them down and then read section 8, 10 and 11 again very carefully. (Notice I said 'again', many people skim through the contract before signing it. You should read the contract over very carefully prior to signing it. Always ask your Realtor questions about the meaning of any section in the contract).


These sections carefully explain your inspections, appraisal and loan process, as well as accepting the current condition of the property once you close. Once you close, it can be very difficult to prove any wrongdoing by the seller, so try to make sure you are willing to take the property after you close, problems and all.

Key 2: Use the "Buyer Due Diligence Checklist" as your inspections checklist. 

You may have signed a form called: “Buyer Due Diligence Checklist”. This form is fairly inclusive of all the inspections you may perform on your intended purchase. I recommend reading this form over very carefully and using it as your checklist to ensure you have checked over each item during your inspections period.

Key 3: Always verify opinions you hear with a licensed professional.


The first section to read is the box that outlines the idea that your Realtor is most likely not an expert in any other profession outside of helping you to fill out the Real Estate Purchase Contract and the addendums. Unless they are a licensed CPA, attorney, builder etc., you should always verify any opinions you may hear with a licensed professional who is also working for your interests.

Key 4: Contact the 'planning department' in your area and ask questions about your property. Ask if there is anything you need to be aware like regulations or zoning laws.


The first item listed on your checklist is building code/zoning compliance. Your property is most likely under the jurisdiction of either the county, town or city municipality in Utah. You should understand the difference in the areas.


Each municipality I worked in had their own set of zoning laws and building requirements. Each area also needed to be in compliance with state laws as well. We have installed a link to each municipal website in our communities section for Zion Canyon area. I highly recommend you contact the planning department in your area and ask questions about your property. Have the town planner look at the prospective parcel and ask if there is anything you should be aware of that could negatively or positively impact your parcel. Have the planner explain any regulations that you might not understand.


I have been involved with a number of purchases where the potential buyer could easily lose or have lost their money by buying a property that has zoning issues that are not being relayed to them by the seller or the seller’s agent. These issues, more likely than not, are not understood by either party and/or how they affect the parcels value.


For instance, one area in Rockville has several small lots that come up for sale and, oftentimes, they cannot be built on. A land owner some time ago subdivided a larger parcel into several smaller lots and either sold them, gave them away or traded them for debt’s he incurred (hard to say as the grapevine is not always reliable). He did not go through the proper subdivision process with the county (the land was county land before it was annexed into Rockville). So the county did not approve the subdivision but the recorders office recorded the lot splits and gave individual tax ID’s to each new lot.


To a prospective buyer that does not understand the rules, it appears these lots could be built on. They may overpay for a parcel of ground that can only be camped on part of the year. This story illustrates how important it is for the seller to know what they are selling and the buyer to know what they are buying.

Key 5: Do the homework in order to understand the zoning processes in your area.


I have also found that it is very “enlightening” for the buyer to do this homework themselves. That way they will know the appropriate personnel to talk to and they can really understand the zoning processes in their area. The better informed they are the more they can fully appreciate the parcel they own.


I have realized it is better for me NOT to do this work for the buyer as they often don’t remember the concepts I try to relay. I think they understand the issues I am trying to relay, but they don’t. If the buyer does the work themselves it seems to stick better and they understand the process better. 

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!

Financing Issues in Buying a Property

1.    Buyer qualifications

2.    Buyer needs

3.    Property classification

4.    Location of Property

5.    Type of lender used

6.    Type of loan required/desired

7.    Appraisal issues

As you begin to think about placing an offer on a potential property, the fact of financing comes up. How will you ultimately pay for your purchase? Do you have the available cash for the down payment, closing costs and the inspections and appraisals? Do you want to use all cash for your purchase? Can you re-finance an existing property to pay for your new purchase? Do you need to get a loan? What kinds of loans are out there? Which loan will fit your needs best? Where do I start and which option is best for me?

Choosing a Lender

These are just a few of the questions you may ask during the lending process. There are just as many when it comes to choosing who your lender will be and many things to consider while making your choice. To start with, it is often a great idea to get some referrals from your Realtor and then discuss your needs with at least three lenders to get an idea of which one may have the best deal for you.

I often recommend my clients look at a variety of lenders and banks depending upon their situation and the property they are looking at. Some banks are simply a better fit for one property over another. Banks lend differently on a standard “stick built” home versus a modular or manufactured home. Improved lots are a bit harder to lend on and many banks will not lend on them unless a construction loan is being sought after. Raw land (meaning no utilities stubbed to it) is very difficult, if not impossible to lend on. In the cases where the property is going to have a difficult time with a conventional loan, I often recommend to the seller, as well as the buyer, to consider seller financing. Seller financing can be a very streamlined loan and can be very beneficial to both parties if the terms are good.

Why Location Matters for Lending

In addition to the  “type” of property you are looking at, we need to look at location as well. Some locations are simply easier to lend on over others. The lending process requires an appraisal. An appraisal is an opinion of value for the day written by a trained professional appraiser. The appraiser has very rigid guidelines he/she has to follow while putting the appraisal together. We will go into a little more depth on the appraisal process in a separate section. For now we will just concentrate on how the location can affect the appraisal process.

Niche Markets

One of my areas of expertise is the Springdale, Utah, market. Springdale is a very unique market. It is highly desire-able and only has a handful of properties available. As we know from economics, demand and supply drive pricing. High demand, low supply drives pricing up. The appraisers goal is to find at least three similar sales in the past 6 months to a year. In a small niche market like Springdale, that is often very difficult. The appraiser is left with possibly three sales in the past year but the sales are not similar. The appraiser then has to do a lot of justifying dialog in his/her appraisal. I have seen banks outright reject the appraisal and deny the loan because they don’t want to base their loan off of an appraisal that is too far from “standard”. In these cases I often recommend talking with a local bank instead of a large national chain bank or a loan broker. Local banks and credit unions will know the niche market and understand the difficulties of the appraisal process there.

So far we know we have to consider:

a.    Buyers qualifications, abilities and personal needs in choosing a lender and a loan.

b.    Type or classification of property we are trying to purchase.

c.    Location of the property in terms of available comparisons.

We also need to consider the lender we use. Does our lender work for a national or statewide bank? A local bank or credit union? Or is our lender a loan broker? Is our lender licensed to do business in the area of the property? Is our lender qualified? Can we work well with our lender?

Interview your Lender

All good questions to consider. Beyond these questions we should interview our lender to see if he/she can work well with us throughout the buying process. You want to have a lender who can help guide you with the dates in your contract and actually help you meet those dates. Can your lender help you get the right loan for your needs? Good interest rates? Discount points? Closing costs for the loan? All of these questions should be considered when shopping for a loan.

If you have a CPA or a tax accountant it would also be wise to discuss your lending options with this person as well. They are getting paid to help you use your money wisely and they can be an invaluable part of your purchasing process.

Next week… we will ponder a bit more on differences in lending institutions and types of loans to look at.

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/