Video of Labor Day 2009 Tour

Not surprisingly, when we first launched the tour in fall of 2008 there was quite a bit of publicity. Of course much of that was people saying things like, "those guys are a bunch of vultures preying on the misfortunes of regular people."

Not so. Not in any way, shape or form. What we have actually been doing is educating the buying public on how to find and purchase bank foreclosures. How translate all of the real estate jargon such as "REO", "NOD", "Short sale", etc and once again transform a once empty, abandoned and unkempt foreclosed property into a "home."

Making a Foreclosure a "Home" Again

We recently sold a Fannie Mae foreclosure in the beautiful Pine Brook subdivision in Green Valley.

Just a week after it closed I was driving through the area at about 8:30 in the morning. There was an RV in the driveway, lights on, newspaper on the porch - business and life as it once was, rather than an abandoned  house with the stigma of foreclosure hanging over it. I just LOVE that feeling!

You can GUARANTEE the neighbors were happy.

This inventory HAS to be bought up and inhabited by normal people in order to get our economy back in gear. We are proud to take part in it!

We have guests ranging from Elderly couples "checking out the market", to Sellers who are considering buying a foreclosure after the sale of their home, to young famililes contemplating leaving their rental for their first home. Regular folks, not a bunch of blood-sucking investors.

We ended up assisting some of our guests, John & Kay Besteman, in selling their Sun River home just a few months after the tour. Here is what John had to say:  

"I saw an ad for a "Foreclosure Tour" in the paper and took the tour. What impressed me about the tour was the organization and originality of the program and those who organized it. While we were on Tour as “Buyers”, Jeremy’s innovation impressed us so much that resulted in an invitation for the Larkin Group to present their plan to sell our house."  - John Besteman

With all of that said, the St. George Foreclosure Tour will once again be setting sail beginning this Friday March 15.

Not THIS REO Speedwagon.....

We will be touring 6-8 foreclosed properites this Friday. The tour is FREE, and are all are welcome! Just be sure to register ahead of time at www.StGeorgeForeclosureTour.com. 

If you have specific questions, call Blake Bench (SUPER LENDER and "Mortgage Jedi") at 435-705-4128, or call me at 435-674-1442, or just email me: larkin@gostgeorge.com

If I had a nickel for every Seller (with some level of equity) in their home who has told me: "We've decided not to sell right now because the market just won't bring us our price",....I'd be a rich man.

So when is a LOSS really a GAIN? Is that even possible? YES.

When you are a Seller becoming a SELLER in a real esate market JUST LIKE THIS ONE, you can actually turn what feels like, or IS a loss, into a nifty financial gain as you "move up" to that next home.

Today we discuss what that looks like and why many Sellers are missing a great opportunity to move-up in today's real estate market.

I was in town for the Keller Williams "Family Reunion" where I've had the chance to hear from the absolute best of the best in terms of real estate economics and more. I am typing this to the tune of loud rock music and the hum of nearly 9000 people filing into a session - WOW!

Before running on to real estate, a few short words about New orleans:

1. I figured out why they call it Bourbon Street quite quickly. NOT family friendly!

2. The rest of the French Quarter is exactly what you would imagine - idyllic. Gas lamps, horse-drawn carriages and more.

3. Don't buy the T-shirts.

4. If you ever get a change to stop by "Cafe Du Monde" for freshly fried "Beignets" - make every effort to do so. Cheap and SO.....GOOD.

On to real estate:

We are in a confusing spot in the real estate market currently. A huge boom was followed by a huge crash and now that things have settled significantly, most of us are wondering: "what's next?"

The truth? I'm not sure. BUT, there are 5 "vital signs" that define the health of any real estate market in the world. These signs are looking really good but the mainstream media doesn't share them. Mostly because they don't really understand them.

If you want to look REALLY smart when talking real estate with your buddies, study them, internalize them, and be prepared to shock them with your stunning good looks AND apparently vast knowledge of all things real estate.

1. Sales: Total home sales in the U.S. for 2009 were 10th highest EVER!

2. Home Prices: While 99.9% of crying about our home's value, we need to keep perspective. After the "crash" values are now where they were supposed to be had we kept a "regular" appreciation rate.

3. Inventory: Yes, it's higher than we want, but in St. George real estate inventories are down over 15% from a year ago!

4. Interest Rates: Interest rates began being tracked in 1971. GET THIS: They are the lowest they have EVER BEEN since that time! 5% right now vs. 7.48% in 1971 (and nearly 20% in early 80's!)

5. Affordability: This is the "crown jewel" of real estate vitals. In my opinion, this is the one factor (besides consumer confidence0 that can save our economy. At current levels + interest rates = the most affordable it has EVER BEEN to buy a home....EVER!

Remember that just because it's on the news doesn't mean it's accurate, OR that it even applies to our local market.

If you have a question about what is REALLY going on in our area, or a specific question about your home's value or how much your neighbor sold for, just shoot me an email to larkin@gostgeorge.com and get the REAL scoop!

Some of you may remember my post “Your Agent was trying to help you when they said Short Sales Suck!” from May 2008.

Nearly 2 years have passed from that day and in many ways, Short Sales still DO suck, but their time of “sucky-ness” (don’t look that up, NOT a word) may be soon coming to an end.

As we are all so very aware, the Federal Government has decided to stick their fingers in just about everything we do with the exception of which sugar cereal we feed to our children. (that’s probably coming…)

In a rare flash of brilliance, some of their new legislation could actually be the best thing to hit Buyers, Sellers and Real Estate in General in a long time.

The problem with short sales has always been summed up in a few major points:

• Short Sales take too long (as in 3 to as many as 10 months!)
• The eventual outcome of the Buyer’s original offer is always unknown (The chances of actually getting the home you offered on was a literal craps shoot)
• They were a miserable ton of work for every single person involved in the transaction

See, the bank that the Seller is no longer making a mortgage payment to (in most cases) typically hasn’t APPROVED the sale of the home at the list price. So Buyers come along looking at a home listed for $150k that the bank may only let go for $170k. That’s just not right, totally confusing and emotionally painful.

New legislation proposed by the US Treasury would make the following changes to the Short Sale process:

1)      Banks would be FORCED to respond in 10 days or less! (Vs. 30-90 in a typical case)

2)      Sellers – yes, the SELLERS who couldn’t pay their mortgages could possibly get up to $1500 for relocation costs

3)      1^st Mortgage Holders could get $1000 per closed short sale

4)      2^nd Mortgage Holders (the stickiest short-sale killers in the business) could get $3000 per closed sale

Will this come to pass? I don’t know. You can bet they will be taking money from mine and your pockets to fund the plan though, which is one of the negative side-effects of the plan. Does the “disease merit the treatment?”

Shoot me some feedback.

BUYERS – have you been involved in trying to secure a short sale? What kind of experience was it?

SELLERS – are you in that same position? Honestly, is it a HUGE pain in the neck or what?

Doesn't it seem like the real estate discussions get a little "SERIOUS?" I think so, which is why I wanted to kick off February 2010 "quick and light" with a brief discussion about some of the great things going on in St. George this Winter & Spring!

Heritage Days Celebration, a.k.a. "St. George's Birthday":  This actually already passed, held the week of January 15th. As you will see in the video above, I ran into St. George Mayor Dan McArhur, along with the entire St. George Council, dishing out free Root Beer Floats and chumming it up with the public.

Why you don't want to miss next year: In addition to root beer floats, St. George City offered free swimming at Sand Hollow Aquatic center and free bus rides on the "SunTran" system all day long.

St. George Area Parade of Homes - 20th Anniversary, February 12-21, 2010:  My wife enjoys a "love-hate" relationship with the parade of homes. She LOVES the homes, then HATES ours when she gets home!

Why you don't want to miss: I have always maintained the most luxury of those on parade rival the most lavish of fine homes anywhere in the country, the weather is great, and for $12.50/person you can see 25 of the greatest homes in St. George.    

Ford Ironman St. George - May 1, 2010: This is HUGE news. There are only 7 Ford Ironman events in the Continental US, and even fewer held on Saturday. 2.4 mile swim at Sand Hollow Reservoir, 112 Mile bike that runs through Gunlock & more, wrapped up with 26.2 mile FULL marathon. In 1 day. Ouch.

Why you don't want to miss: While I haven't completed an Ironman, I HAVE done a marathon and ridden 100 miles, including most of this course. This is an EPIC course, perhaps the toughest in the U.S. If you thought the buzz for the St. George Marathon was big, just wait until you feel the electricity (and incoming marketing $$) from Ford Ironman. Unreal!

So St. George has come a long way from Dick's Cafe, Old Highay 91 over Utah Hill and our beloved 9-hole Dixie Red Hills Golf Course. I feel blessed not only be a resident, but to be a true local!

If you want more details or thoughts on the above events and other great activities, shoot me an email at larkin@gostgeorge.com.

In English? After the "go-go" market of the mid 2000's and a ton of property "flipping", the government came out and said "you can't buy a home and flip it until you have owned it for 90 days." They call this "seasoning" and as is implied, it is designed to keep people from buying a home, inflating the price above market, then flipping it again.

After a long period of that rule in place, they've realized it is hampering the market.

"Property Flipping", or "Upside Down House?" (real estate humor!)

In a housing market where tighter lending requirements have made FHA financing the only option for some buyers, this 90-day policy has (1) kept some homebuyers from being able to purchase affordable homes and (2) prevented the quick resale of foreclosed properties, which affects the ability of communities to stabilize and rebuild.

If you are an Investor looking to flip homes: This change is great news because you can now go STRAIGHT to marketing the home in the MLS, etc immediately after purchasing rather than waiting 90 days.

If you are a Buyer looking for your next home: This change is great news because many of these investors put their homes back on the market at below-market prices to ensure a quick sale and naturally this will add to your options as a Buyer.

"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."

To ensure FHA borrowers are protected from inflated prices, the policy has certain restrictions, including:

• All transactions must be arms-length and there can be no identity of interest between the buyer and seller (i.e. their business partners, cousins, aunts, uncles, siblings, etc.)
• If the sales price of the property is 20 percent or more above the seller's acquisition cost, the lender must meet specific conditions for the waiver to apply. (referring to fact that an investor with buying power of CASH may buy a home for $180k at auction, then be able to sell in open "retail" market at $200k+)
• The temporary waiver will be in effect for a period of one year, unless extended or withdrawn by the FHA.

It's easy to knock the government for being overly involved, but this is a well-placed effort on their part that should do much good for the market.

Part 2 of 52...really! FIFTY-TWO!!! As promised, every single week in 2010 we are doing a brief video update on what is either "going on" in the market,  or of exactly what we are up to and facing in the current REO / Short Sale distress market. I'm referring to the actual day to day "slog" of working with banks, trashing out stinky house, etc.

This week Jeremy & team show a brief clip of a new bank foreclosure asset inspection. He broke his AAA card trying to gain access ahead of the locksmith. This home was built in 1947. You CANNOT break into old homes, but the new ones are easy. "They don't make em' like they used to" is the proper description!?!

If you didn't receive this video as part of our "insider's" email list, you will be missing out on our brand new listings, price reductions, and brand new bank foreclosures PRIOR to the rest of the market seeing them! Shoot me a msg to larkin@gostgeorge.com to get added!

With this post the Larkin Group is officially kicking off our 2010 weekly "Insider's Report" series dedicated to St. George, Utah real estate. YOU DO NOT WANT TO MISS THIS!!

It will look like this:

• Every Tuesday, 52 weeks of the year, come rain or shine
• ONLY every Tuesday. No spam, just a great report you can count on weekly, no more, no less.

WILL CONSIST OF THE FOLLOWING:

• 3 to 5 minute video "interpretation" of market (not just a bunch of stats you don't understand)
• Every single new Larkin Group listing & price reduction
• HERE IS THE REALLY FUN PART!: Every one of our "pre-market" bank foreclosures 2-4 weeks in ADVANCE of them hitting the market. This means our friends and clients will be truly getting "1st dibbs" on inside information.

That's it, and we promise to keep it interesting if you promise to give us some feedback.

Onward into 2010....

As I write this post I am officially sinking into “Holiday Mode”, listening to Josh Groban’s “Noel” album, and of course gazing out my window onto St. George Boulevard and the fall colors.

Getting into “Holiday mode” is not so much an “event” for me, but rather a “process.” It begins right after Halloween when the sadistic retailers start cramming Christmas down our throats. We all saw we hate it, but secretly I love to see the Christmas stuff go up!

In late November I start to run into Christmas music on various radio stations and the day before Thanksgiving (today), I always “let go” and play my own stuff at the office. Thanksgiving festivities, Black Friday sales and the St. George temperatures, colors and blue skies carry us into December and then Holiday mode is undeniable.

But I digress…

My family eats, I pay my bills, drive a vehicle, enjoy my bicyle and even occasionally vacation – all because of our amazing St. George Real Estate clients who allow us to help them buy, sell, invest in, or simply discuss all things real estate.

In this industry I am BOMBARDED daily with bad news, talk of foreclosures, pre-foreclosures, bankruptcies, and more. I am just grateful for our loyal clients and the business we enjoy because of them. I know that the Holidays don’t put an end to any of our misery, sufferings or trials, but they bring with them an unmistakable spirit of good will and love.

All my best to you and yours this season and into 2010.

THANK YOU!

It is VERY rare that I will place one of our properties in the blog feed - it's kind of a  "no-no" to do alot of straightup "advertising" in the blogoshpere, but I'm making an exception this time.

There is a LONG story behind this property but let me summariize it up like this:

• 240-acre Parcel against Hurricane Cliffs
• Zoned for 1300 units...the highest density EVER APPROVED in Washington County
• Master planned in an OVER THE TOP fashion by a group called "HOK" out of Chicago - these guys are the best of the best.
• Laid out for homes, upscale multi-family and commercial, all according to highest "green" standards available
• KILLER DEAL but my clients whom I am very close to are in some serious financial pain trying to hold on to it as this is not their core business

Here is where it really gets painful. It is now listed for $6.9 million. They had lookers at nearly 4x that.......OUCH. See my last blog post about "manning up" on your list price HERE.

For a "big hitter", developer or other wise, this is an amazing opportunity, but it will certainly require holding power. If you know anyone who may know someone else who may be interested in this parcel, get me their phone and/or email immdiately. Who would this be? That uncle, friend, former boss who says "my ______ knows this dude who is a major player in real estate development and...." - that is the person!

If you didn't watch the video yet, do so now - it is gorgeous!

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!

The Home Buyer's Tax Credit is back with a vengeance. Formerly just for those purchasing their first homes, the credit has now been expanded to homeowners who have been in the home they are currently vacating or selling for 5+ years.

The Key Points: (so you can look smart at the watercooler, church, etc)

• $8000.00 Tax Credit for FIRST TIME BUYERS (first home ever or have not owned primary for 3 years) extended into 2010
• $6500.00 Tax Credit ADDED to the mix for current homeowners who have been in their current primary residence (not investment home) for 5+ yrs. This is KILLER for those who have been eying currently sweet deals thinking about moving "up", "down" or "over" in this market
• For EITHER credit you must have your home purchase "under contract" by April 30, 2010 and it must be closed by July 1, 2010.
• Income limits have been increased - up to $125k for a single buyer or up to $225k income for married couples
• Home purchases OVER $800k do not qualify
• As before, neither of the credits ever need to be paid back - FREE MONEY!

I agree wholeheartedly with the rest of the world on the fact that our Government is leveraging our lives away with these federally sponsored bailouts, etc, but it doesn't change the fact that these programs: #1 - exist, and that #2 - people would be complete idiots for not taking advantage of the great opportunties they create.

Thoughts?

The final episode in our "Real Estate Halloween" series! Let's just have a really honest dialogue here. The only thing more frightening than Short Sales, Poorly Staged Homes and of course...Lowball Larry, are OVERPRICED LISTINGS! They take longer to sell, sell for less money, and are part of the inventory problem in not just St. George, Ut, but every real estate market in the world!

Jeremy dons his best "Weekend at Bernie's outfit to discuss the phenomenon of overpricing and how Sellers benefit on their NEXT PURCHASE by pricing right NOW! DON'T CHASE THE MARKET....LEAD IT!

Enjoy and GIVE US SOME FEEDBACK!

In this, our 3rd segment of our 5-party series "Real Estate Halloween: 5 Things that keep me up at night",  Jeremy Larkin talks about why Lowball Larry does the things he does and not only HOW Buyers can specifically overcome reluctance to buy in this changing market, but why those who don't are missing out big time! 

SHOUT OUT TO JUAN VALDEZ!

That brings us to installment #2 in our Halloween Spooktacular! THE POORLY STAGED HOME. This subject strikes fear the hearts of serious Real Estate Agents worldwide, turns off thousands of Buyers from truly considering an otherwise decent home, and is one of the great downfalls of many a Seller.

We actually SHOW YOU what NOT to do with some shots of poorly staged homes, as well as WHAT to do with some great shots of well-staged homes that sold QUICKLY and for top dollar.

Click on the video below to enjoy:

Part 1: Short Sales.

Jeremy (naturally) dons a Mullet for this episode to discuss short-sales. What can we say? They send chills down my spine! They take too long, they are confusing, and Buyer and Seller have no control in the process. Necessary evil? Yes, but it doesn't mean we like it.

Watch the video for my rules on "when" to offer on a short-sale as well as the top 3 trends to expect in 2010.

I like to refer to this guy as "Lowball Larry." Have you met him? Is wearing your pants right now?

In today's report we talk about the fact that home sales nationwide are up 9.4% month over month - a 2 year HIGH,! And the fact that many, many properties in the St. George area are selling for FULL PRICE or HIGHER in literally just a few days.

Buyers beware - the deals are right in front of you and may never get any better.  CHECK OUT THE VIDEO:

Am I the only one who is just SICK AND TIRED of the summer heat? What a pleasure it was to journey up to the Veyo Pool, one of our long cherished family traditions. It is just so quaint, the grill is OFF THE CHARTS and the kids worship the whole experience. HERE IS A SHORT VIDEO of the day including crawdad fishing!

 As a lifetime resident of the St. George area I have always maintained that there are 4 stages people go through each summer. It looks like this:

Stage 1 (Late may through June): "Finally I can go swimming! I just love this dry heat!"

Stage 2 (July 1 to July 31): "MAN it is hot! Well, I guess it's around 4th of July time so what else can we expect? Summer won't last forever."

Stage 3 (Aug 1st to Aug 31): "Ok, that is ENOUGH! I can't stand another day of it. My back is dripping and I can't even go outside!"

Stage 4 (Sept 1 to verifiable cooldown): "I thought summer was over?!?! I can't believe this 'Indian Summer' BS....it may be time to move to Alaska!)

And by mid October of course we are into what my brother and I refer to as "Chamber of Commerce weather" which makes St. George an easy sale for delusional marathon runners and rich World Senior Games attendees.

At the end of the day I still see this as the greatest place on earth. Clean air, light traffic, cooler than Phoenix or Vegas but not cold enough for any real snow, close to National Parks, and more.

Now does someone have a phone # to the chamber of commerce for a weather report?.......

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!