Real Estate Information Archive

Many friends and clients have asked me about getting a “hot deal” at bank foreclosure auctions, as well as what these auctions are “all about.” I guess showing is better than telling so I shot this short video for you….or them…..or maybe YOU are THEM? Either way, I think you’ll enjoy it.

When we talk about bank foreclosure auctions we are essentially talking about 2 different types:

1. Trustee’s Sales – These are the ones you see or hear about on the “Courthouse Steps.” They literally occur there…on the steps of the County Courthouse. To actively bid you really only have to:

A – Show up

B – Bring a $5000.00 cashier’s check along with you. If you are the winning bidder, you have to be ready to close in 24 hours.  You better dang well have cash in hand or funding available immediately.

2. Bank Auctions – Here in St. George these take place either at the actual property or in some other location such as the Convention Center or a Hotel meeting space.  You have seen signs around town for these – Williams & Williams, Hudson & Marshall, etc.  The video above was taken at a recent Williams & Williams auction.

To bid on these properties you don’t haveto do much more than above, but the closing timelines are less stringent:

A – Register prior online OR onsite the day of. If you want to bid online you must register typically 24 hours prior.

B – Show up and confirm registration.

C  - Bring a $2000 - $2500.00 check. The difference here is that if you are the winning bidder, you often have up to 30 days to close. So YES, you can use a loan at this type of auction.

Do your Homework:

In either case, remember that you are entering in a binding contract when you go to an auction. This means you’ve GOT TO:

• Research physical condition of property, title issues, etc
• Have financing lined up. Planning to visit with a Lender for the first time AFTER the auction could cost you a few grand.
• If you can, hire a Realtor. On the bank Auctions discussed in #2 above, the Seller pays the Agent’s commission so you are NOT paying more to have an agent, but you get the benefit of a professional who knows the neighborhoods, contracts, property values and carries liability insurance in the event of a (heaven forbid) legal dilemma.
• Set a limit or "lid" on what you're willing to bid. If you say $100k, don't get swept up in the excitement and pay $105k.

These auctions are exciting - REALLY exciting, just make sure you are prepared in advance. Feel free to call or email me direct with questions about the auction process: 435-862-8467 or larkin@gostgeorge.com

You can avoid reality, but you can't avoid the consequences of avoiding reality.

-Ayn Rand

Hey let's just have a frank little chat here: The "down" real estate market has been going on for 3 or 4 years now, yet alot of St. George Sellers are talking like this wave just hit us. Grief!

As a St. George area homeowner (a.k.a. future St. George Seller), I will be the first to say "I GET IT!" I get your pain, your frustration and dissappointment with what "could have been" and what certainly "was" in terms of market values for a short period of time. VERY short.

As a Seller, if you want to win the prize in this current market may need to get really courageous and set the "new market price" in your neighborhood. Yes, that means the LOWEST price anyone has seen in that area since 2003 or 2004.

In today's video I talk about the benefits of doing so and the potentially COSTLY consequences of not doing so. St. George Sellers are learning, but the learning curve has been slow and alot of owners have paid a steep price for that curve.

Man up!

Listen up.

Remember the old $6000.00 Utah "Home Run" Grants? I'm referring to the FREE money the State of Utah was giving away this Spring to Home Buyers purchasing homes that were brand new and had never been lived in (this includes condos / townhouses).

There were 1600 total grants available and they were GONE in under 120 days. Version "2.0" of the grant made its' debut today in the form of $4k.

The main difference between the $4k and $6k is that the new $4k can be reserved prior to the completion of construction of the home.

We assisted multiple Buyer clients in securing both the $6k and the $8k tax credit for 1st-time Buyers. Can those of you who already own a home IMAGINE that?.....$14k in free money to buy a home? For those who don't dilly-dally (and qualify as 1st-time Buyers) they will be able to secure up to $12k if they close before November 30, 2009, the cutoff date for the National tax credit - see HERE for details).

The phrase of the day is "GET CRACKIN!" With 1950 of these available and the prospect of the $8k tax credit drying up I imagine application activity for the Home Run Grant will be "brisk."

For a fantastically detailed fact sheet on the program, click HERE.  I imagine there will be many questions and both myself, as well as my preferred lender team will be happy to answer.

Cheers!

It is September 1st at the writing of this piece. You can only put this off so long you know, and if you are considering purchasing your "first"* home and taking advantage of FREE money in the form of an $8000.00 tax credit, your time is short!

A quick definition of "first time buyer." You either: A - have never owned a home before, or B - have not owned a primary residence in the past 3 years.

What could you do with $8000.00?!?!? Many buyers are borrowing that amount from friends or family, then paying them back after closing. Others are putting it into the home for repairs and upgrades, and still others are just keeping it for a rainy day.

Logic Behind "Time Running Out"

To receive the $8000.00 tax credit you must have closed on your home purchase by no later than November 30th, 2009. Assuming that it takes 30-45 days to process and fund a home mortgage these days, (and it does), that puts you at October 30th at the LATEST to put a firm contract together on a place. October 15th is more like it.

Find a great real estate agent who understands this process in depth, and an even better mortgage person and get on it. NOW!

A FEW SHORT VIDEOS TO WATCH ABOUT THE TAX CREDIT - GREAT STUFF:

JEREMY LARKIN Discusses Tax Credit from St. George Blvd: HERE

Detailed view of the tax credit, who qualifies, how to get it:  HERE

"But Jeremy, I offered above full list price and STILL got beat out! What gives?

If I had $5 for every Buyer who has been shocked (and dismayed) about having to "compete" for homes in this so-called "Buyer's" market, I'd have a nice little vacation fund built up.

Today we talk about

• the "Tale of 2 Markets", those listings that are "in" the market, and those that are "out" of the market;
• why Buyers are getting into bidding wars in St. George, Utah as well as other Western markets,
• and also why Sellers have to get in the "critical 20%" if they are going to sell.

Below this video is a copy of the chart I discuss in the video. Enjoy!

I love good news, don't you? I ran across a very positive article on Reuters today that is giving me warm and fuzzy feelings about the future of local and national real estate markets.

In the article, they pointed out that US housing inventory data is pointing toward stabilization...yeah! The data focused on Los Angeles, Phoenix and Las Vegas, all of which have seen huge decreases in inventory over the past year. Anyone who know's St. George understands that whether it's the latest fashion trends or real estate, we always trail these areas by 6-12 mos.

In the St. George area specifically we have also seen stabilization with monthly sales around 250 for the past 4 mos, up from only 107 in January! Affordability & government incentives are driving this trend.

Watch the Video below, then click on the link below that or a VERY COOL mid-year market report for the St. George area!

WATCH FIRST, THEN click this link: (you're gonna love this...)

Market Discussion (click it!)

A May 8, 2009 Gallup Poll has uncovered some VERY interesting information about where Americans are headed with their heads and their wallets.

People were asked which of 4 common investment vehicles, (stocks, bonds, real estate, savings accounts), would be the best long-term strategy. Their answers?

34% said Savings Accounts, 33% said Real Estate. 

Not surprisingly, Savings Accounts ranked very low in the past when people day-trading on E-Trade in their pajamas thought they were the next Warren Buffet. This was of course also the same for Real Estate at the height of the boom.

If you could pass the "mirror test" in 2004-2006, (breathe on a mirror and see if it fogs up), you were making boat-loads of cash flipping real estate. In 2005 50% of Americans said they'd choose real estate for investment.

That said, the Savings Accounts portion of the poll is completely unremarkable since most people just want some safety these days, yet the real estate portion is very remarkable.

In a supposedly "bad" market, 33% of Americans say that's where they would put their hard-earned cash. Of course you may be thinking, "it's probably just a bunch of naive 1st-time Buyers thinking this is the next boom." If so, you'd probably be wrong. Just look at which demographic group most highly picks real estate:

The highest percentage of those who view real estate as the best option are those in the higher income bracket, made up of many saavy investors and other people with cash on hand.

 This report comes on the heels of an April 16, 2009 poll that showed 71% of Americans feeling like RIGHT NOW is the time to buy. (Video HERE.)

I am not a Financial Planner, CPA or any other version of a certified financial guru, but I like real estate because of the "tangible" nature of it. The world financial markets may crumble, but you can still enjoy your home or vacation property, or at least camp on it!

Just curious, where are the people you spend time with putting their money?

Full Gallup Poll Article here: http://www.gallup.com/poll/118300/Savings-Accounts-Real-Estate-Seen-Best-Investments.aspx

The tides are a turnin' in many parts of the St. George area real estate market this month! Friends and clients on my mailing list have been hearing about this for the past few months and the positive news keeps coming.

In an article from today's "Spectrum" newspaper titled "Local Economy Stabilizing", local & regional economist Lecia Langston said Washington County's economy is beginning to stabilize. Well it's about time!

For so long our area was "insulated" from the major ebbs and flows of the economy, feeling only a percentage of the cyclical changes that may have been felt in other major metropolitan areas. Why? Well if you live here you know the answer, and if you are moving here you also understand. Great location, weather, scenery, national parks, low crime, the works!

Outside of all the economists' hard-to-understand charts and graphs, what we are seeing "on the ground" is this: Properties hitting the market and selling in a few days or less for list or even above list price, with the final price and terms being determined through a "bidding war." (see this WSJ article on just that: BIDDING WARS)

Here are some hard figures to consider:

1. "Pending" sales up nearly 40% since February. All of the major financial and housing experts use pending sales as a major indicator of housing market health.

2. "Active" listings down 12% in that same time frame. Real estate, just like handguns and hammers, is about supply and demand. Lower supply is what we want.

There is still a TON of foreclosure inventory coming, but I think this is a good thing. Why? Because every well-priced home that hits the market right now, especially under $300k, is selling in just a few days. This tells us the public is finally ready to pull the proverbial trigger and get into the housing market.

Housing has always driven the rest of the financial markets. When people are buying, sellers are getting paid and spending that $$ on other homes, goods and services. In that process, real estate agents, title and mortgage people also get paid. They in turn spend money, and the eternal sales cycle continues.

Please feel free to comment or ask questions on this page about the figures above, as well as your personal opinions about the market. Onward!

If you are a Buyer or Seller, or intend on sometime being a Buyer or Seller, or simply enjoy staying up on the Real Estate market, you will find the following information extremely intriguing.

I am going to take a very brief moment to share with you some information that may seem a bit like "bragging", but it.........ok, it is.

Yes, my sentiments exactly (get it? Holy.....Cow...?)

My business (and this industry) is heavily steeped in annual goals, projections, figures, etc. The good part about that is that it keeps us focused. The bad part is that after a year like 2008 you get to wake up Jan 1 and say "should we do it again or just move to an island?"

....this looks better than selling real estate.....

The Larkin Group has elected to go at it again. After serving 32  buyers & sellers in 2008 I decided to throw caution to the wind and shoot really high in 2009: we've committed to 60 transactions in 2009. Why not, isn't this a great real estate cycle we're in? heheheh..

Promotional plug: What that really means is this: There will be thousands of real estate transactions in the St. George area this year and about 90% will involve licensed agents. The Larkin Group takes a sincere interest in the well-being of their clients as as such, I feel very strongly that our services and market knowlege merit at least 60 of those sides and those who choose to work with us will be VERY GLAD THEY DID.

The video below is our "welcome" to the 2009 real estate year and contains some great information regarding:

-Our monthly Foreclosure Tours

-Millionaire Real Estate Investor classes

-and a short, POSITIVE story for all of you out there who need some inspiration to get going this year after a hellish economic 2008. Check it out and stay tuned for next week's video: "Timing the Market," a critical subject for would-be buyers & investors.

Enjoy.