Robert W. Bowen

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With all of the news of the slowing housing market and the condition of the economy it seems that everyone is waiting to find the best deal before purchasing. And why wouldn't you want to get the best deal? I get calls from people every week wanting to buy a foreclosure. How many foreclosures are available in the area and should you buy a foreclosure?

A foreclosure happens when someone is no longer able to pay their mortgage payments on their home. A foreclosure is the last step that the bank takes. After a person is past due 90 days the bank issues a Notice of Default. The Notice of Default is public information and is filed at the County Recorder's Office. The Notice of Default tells the homeowner that they need to catch the mortgage up, sell the home and pay off the mortgage, or risk losing the home to the bank.

Pre-Foreclosure

After the Notice of Default has been filed the property is put up for auction. Depending on the state where the home is located will tell you how long before this happens. Investors looking for a good deal usually target homeowners prior to the auction offering the homeowner enough to pay their mortgage off and walk away. This can be a good deal for the homeowner because often they don't have enough time to sell the home on the market before the auction. This can also help salvage the homeowners credit.

Should the homeowner not catch up the mortgage payments or sell the home, the next step is for the bank to take the property to auction, depending on the state depends on how this process happens. At the auction, usually held on the steps of the courthouse, anyone can come and bid on the home. Auctions can be a source for a great deal on a home, but not everyone has the ability to buy at an auction because you must pay cash for the home.

Foreclosure

This is the step that most people are familiar with. If the home is not purchased at the auction and the homeowner is still unable to catch the mortgage payments up, then the bank takes ownership of the property. At this point the bank will list the home for sale with a real estate brokerage. Generally, when the bank lists the home for sale they list it at or near market value.

Benefits of Buying a Foreclosure

The reason people want to purchase foreclosures is to get that good deal they've been searching for. With foreclosures, you often get the home for below market value and have instant equity in the home. Investors love buying foreclosures that they can go in and quickly fix up and sell for a quick profit. This is known as 'flipping' a home. There are many television shows that get people excited about flipping homes. I'll save the process of doing this for another blog post.

Negatives of Buying a Foreclosure

Buying foreclosures can be a risky investment. Often times foreclosures are in need of some much needed repairs that the previous owners neglected to perform. And when you buy a foreclosure, especially at an auction, you don't have the time to perform inspections before purchasing. Before jumping into buying a foreclosure, do your homework. Talk to real estate professionals about the market prices of homes similar to the one being foreclosed on and give yourself enough cushion to be able to perform the repairs and still have your total invested less than the market value.

Purchasing a home when the bank gets involved can be very stressful and require a lot of extra paperwork. It is best to have a knowledgeable real estate agent assist you through this process. For some people buying a foreclosure is a great deal, for others it may be too much of a headache to get involved in.

How Many Foreclosures Are There?

After watching the nightly news, one might be led to believe that there is an overabundance of foreclosures on the market. The reality is that every local market varies. Here in the Logan, Utah area we currently have about 13 bank owned homes, and less than 20 homes in pre-foreclosure. This means that competition is high which will increase the odds of these homes selling near market value. In other markets there are a larger number of homes facing foreclosure or are already bank owned.

For more information about buying a foreclosure, give me a call.

Robert W. Bowen is a professional REALTOR®with RE/MAX Excel in Logan, UT. You can contact him with questions through his website, www.RobertWBowen.com, or calling (435) 770-1352.

Disclaimer: Information in the post is deemed reliable, but cannot be guaranteed as many sources may have been used and may or may not have been reliable at the time of sourcing. The information in this post is an opinion of the author, may be time sensitive, and is subject to change without notice.

Living in Cache Valley, we are blessed to live in one of the most beautiful valley's in the country. With picturesque views from every direction this valley really is a great place to live. Doing our part to help keep the local beauty, this morning the Cache-Rich Association of Realtors Good Neighbors task force went out to Richmond, Utah to do some road cleanup.

Apparently the drink of choice on this stretch of road is Mountain Dew as we picked up several cans.

In Cache Valley, we as Realtors are doing our part to keep our community clean.

Robert W. Bowen is a professional REALTOR®with RE/MAX Excel in Logan, UT. You can contact him with questions through his website, www.RobertWBowen.com, or calling (435) 770-1352.

This morning KSL.com posted an article by Mary Richards, Home Prices Down Along Wasatch Front. The article discusses falling prices of homes up and down the Wasatch Front. Is this the truth, or another attempt by the media to grab readers attention? Do you really believe your home has dropped significantly in value?

It was an interesting article to say the least and I know it sparked panic among many Utah residents. I ran some statistics this evening from the Wasatch Front Multiple Listing Service. Here is what I found:

Cache County
Single Family Home Average Sales Price YTD - $199,872 (up 1.09% from 2007 YTD)
Condo Average Sales Price YTD - $127,783 (up 16.45% from 2007 YTD)

Box Elder County
Single Family Home Average Sales Price YTD - $170,257 (down 1.36% from 07 YTD)
Condo Average Sales Price YTD - $117,055 (down 1.13% from 07 YTD)

Weber County
Single Family Home Average Sales Price YTD - $192,006 (up 4.67% from 07 YTD)
Condo Average Sales Price YTD - $142,312 ( up 6.95% from 07 YTD)

Davis County
Single Family Home Average Sales Price YTD - $250,494 (down 2.82% from 07 YTD)
Condo Average Sales Price YTD - $180,661 (up 9.81% from 07)

Salt Lake County
Single Family Home Average Sales Price YTD - $289,106 (down 1.57% from 07 YTD)
Condo Average Sales Price YTD - $189,054 (down 1.61% from 07)

Utah County
Single Family Home Average Sales Price YTD - $267,880 (down 7.94% from 07 YTD)
Condo Average Sales Price YTD - $167,501 (down 3.02% from 07)

As the article states from quoting Salt Lake Board of Realtors President Jillinda Bowers, we are seeing an adjustment in prices. This is part of an economy and it happens naturally. Prices are not down as much as the news would have you think.

Your home value is not necessarily dropping, but with so many homes on the market right now sales prices are being lowered to attract buyers. Now is a great time to buy as prices have come down to be more affordable. And to add to this benefit, interest rates are still low. Real estate is still a safe investment in the long run.

Robert W. Bowen is a professional REALTOR®with RE/MAX Excel in Logan, UT. You can contact him with questions through his website, www.RobertWBowen.com, or calling (435) 770-1352.

Disclaimer: Information in the post is deemed reliable, but cannot be guaranteed as many sources may have been used and may or may not have been reliable at the time of sourcing. The information in this post is an opinion of the author, may be time sensitive, and is subject to change without notice.

Once again Logan, Utah has made some National headlines. Yes, believe it or not, our small community has been recognized over and over for our quality of living. This time we are in the public eye for our local job market. CareerBuilder.com often recognizes communities for their job market, highest paying jobs, etc. This article from October 6, 2008 recognizes the 25 Best Markets to Find a Job.

On the list at number seven, Logan heralds an unemployment rate of 2.8%. The article doesn't go into the reasons for our great job market. Here in Logan we have a diverse job market with jobs in technology, industry, professional organizations, service, education, agriculture, etc. Our diverse job market attracts a diverse population.

In the past, Logan has also been recognized as one of the safest cities in the U.S. to live. So why wouldn't you want to make your home in Logan, Utah? Nestled in the mountains, Logan is a great place to live, work, and play. The locals love the environment in which we live and dread the day they will ever have to leave.

Other cities nearby that made the list are:

• Idaho Falls, Idaho at #2
• Salt Lake City, Utah at #21
• Provo, Utah at #22
• Pocatello, Idaho at #25

Robert W. Bowen is a professional REALTOR®with RE/MAX Excel in Logan, UT. You can contact him with questions through his website, www.RobertWBowen.com, or calling (435) 770-1352.

Disclaimer: Information in the post is deemed reliable, but cannot be guaranteed as many sources may have been used and may or may not have been reliable at the time of sourcing. The information in this post is an opinion of the author, may be time sensitive, and is subject to change without notice.

Yesterday I began a discussion of Buyer's Due Diligence (If you missed it, click here). I hope that you were able to take a few deep breaths after yesterday. As a buyer you have a lot to be responsible for when buying a home. This is where a good real estate agent comes in. As an agent we can help you through this process. Let's pick up where we left of yesterday.

10. Square Footage / Acreage: Did you know that the square footage quoted on the info sheet of a home is only guaranteed to be an approximation? If you want to know the exact size you do have the right to measure it yourself or hire someone to do that for you.
11. Utility Services: It is up to you as the buyer to find out what utilities are available to the home and how much it will cost. This also includes finding out if the appropriate internet connection speeds are available to you at that residence.
12. Water: In the State of Utah water is of big importance. Believe it or not, Utah is a desert. Most city lots are on city water and that is all you have to worry about. But older homes, or homes on acreage may rely of water shares from a canal company, private well, etc. When you are purchasing a home make sure that the water shares are being transferred to you as the new owner and that you are aware of them. In some instances if the shares aren't used, you will lose them.
13. Geologic Conditions: If you plan on living on a hillside pay close attention to this. Remember years back of all the mudslides in California when homes were sliding down the hill? It is important to make sure that the ground the home is built on is stable. If the home has a basement you may also be concerned with the level of the water table.
14. Mold: Not only is mold disgusting, but it can cause health problems. Mold is a concern on older homes. It is wise to have your home inspector check the home out for the possibility of mold.
15. Housing Compliance: When you move into a new home there are certain things that become important to people such as the proximity to schools, churches, industrial areas, commercial areas, etc. And some people are concerned with law enforcement statistics. You do have the right to check this out. You can talk with neightbors, visit the local police department, etc. Your real estate agent will comply with all Federal and State Fair Housing Laws.
16. Property Taxes: Yes, taxes are a certainty in owning property. Check out how much the taxes are so you aren't suprised after you move in.
17. Income Tax/Legal Consequences: And last of all, guess what? I'm not an attorney, accountant, inspector, etc. As a real estate professional I can give you my opinion on these items, but you are advised to consult the appropriate professionals.

OK, that wasn't too difficult right? I can't stress enough how important buyer's due diligence is. This is a big investment on your part. Take the time to make sure it's a good one. You will glad you did in the long run.

Robert W. Bowen is a professional REALTOR®with RE/MAX Excel in Logan, UT. You can contact him with questions through his website, www.RobertWBowen.com, or calling (435) 770-1352.