Archive for March, 2010

Southern Utah Real Estate Market

Wednesday, March 10th, 2010

The real estate market in southern Utah is still abounding with great deals in certain price ranges.  Unfortunately most of them are the bank owned properties.  There are still a lot of short sale properties on the market.  Most buyers are side stepping the short sales because they have learned that most of them take forever to get responses and even longer to actually try and close one.  Many offers that we made on short sales have to be renegotiated because the value of the property has fallen to even less than what the original offer was.  I was listening to a conversation between a couple of people and one had done a short sale and was so discouraged about the time that it took to do it, but actually bought the property for $30,000 less than his original offer.  So if you are willing to go the short sale route pay attention to values, especially if you made your offer over three months ago.  The value of the property may be less than what you offered.

If you are looking for a great home in the $300,000 to $400,000.00 you will need to be patient and realize that they are hard to find.  There are however still opportunities that come along.  If you want to take advantage of those great buys you need to have cash or your financing in place.  If you don’t have a pre-approval letter, not a pre-qualification letter, you probably won’t have a shot at purchasing the home.  If you have to sell your current home and are trying to get one of those great deals it won’t happen unless you have the ability to do a bridge loan or have enough income to qualify for two mortgages. Getting a loan for a second home is difficult to do and requires a considerable down payment.

I have noticed that the homes in the $200,000 and under price range go very quickly and are difficult to find if you aren’t willing to deal with short sales.  The pressure will increase for these homes for the next couple of weeks as people try to purchase a home before the first time home buyer tax credit goes away.  Also remember the credit for moving up in a home purchase will also go away in mid April.  If you want to take advantage of the free government money you need to do it in the next week or two or you will miss the boat.  If you would like more information on the current market conditions please feel free to contact me.