Friday, June 21, 2013

JUST SOLD! 3 Condo Seller Financed Package

I just closed on these three condo units in a very interesting transaction.  This deal involved 3 condo units in small 4 unit complex.   The owner of these units had majority control of the HOA as well.  When I listed the properties, his instructions were to sell them all as a package and not piece by piece.  So, we listed them at $89,900 each ($269,700 total) and advertised each unit as needing to be sold with the others.

The market gave us some resistance to this plan at first.  First-time homebuyers kept wanting to purchase just one unit.  We had to turn them away. Yet, investors (our target audience) were not too excited about the prospects of the package because the three units would require three separate mortgages with three separate appraisals and three times the closing costs.  That was a significant barrier.  However, my client was open to the idea of seller financing to overcome this hurdle.  Once we got the figures together I notified my investor-clients of the opportunity to seller finance all three of these units.  The seller's terms were that he wanted 20% down to reduce the risk of the deal.

Once the notice went out, we received 5 offers.  No two were alike.  Here is what we received:

Mitigating risk was the seller's main concern.  Based on these offers, if you were the seller, which one would you pick?  The seller chose Buyer 5's offer.  There is a strong inverse correlation between risk and down payment.  With 50% down, there is virtually a 0% chance of default by the buyer.

We also ended up negotiating the interest rate and balloon date after the initial offer.  The parties agreed to a 5.25% note rate over an 8 year soft-balloon with the rate adjusting to 9% thereafter.  The loan was amortized on a 30 year basis.

After finalizing terms, we proceeded with the transaction.  The inspections revealed about $3,000 of deferred maintenance that the buyer wanted addressed.  We reduced the contract price by $2,700 and moved forward to closing.  

Congrats to the buyer and seller in the purchase and sale of these units. This is truly one of those win-win transactions where everyone benefits.  I also have to thank Kori Cannon at Bonneville Superior Title for her expertise in addressing the complexities and nuances of the seller finance details of our transaction.  Her work made my ours a lot easier.    

If you have investment property that you want to sell, CONTACT ME, and let's discuss.  

Wednesday, June 19, 2013

Photo of the Day: You Know It's a Buyer's Market When...

I found this scene while cruising around Ogden's East Bench:

We are currently experiences a soft seller's market.  However, when you see this many signs within a stone's throw of your house, it doesn't look that way.  I would suggest these neighbors use the rock, paper, scissors method to figure out who gets to put their house on the market first and then take turns.  Having them all for sale at the same time makes for a weaker negotiating position with potential buyers.  

Tuesday, June 18, 2013

Photo of the Day: Ogden East Bench Victorian

While marketing this week I had the opportunity to know on the door of this home located on the East Bench in Ogden:

This home is a landmark on 24th St. about a half a block east of Taylor Ave. The home was build in 1899, has 3600 SQFT, 4 bedrooms, and 1 bathroom. It also sits on a giant lot compared to other homes in the
area with .38 acres.

The owners have been slowly making improvements to the property. It will be exciting to see the home as work progresses.

Here are a couple links to other Victorian homes in Ogden:

If you are looking for a Victorian home in Ogden, call me at 801-390-1480 or email me, and we will find a historic home you can cherish.   

FOR SALE: Canyon Place Condo

I just listed this 2 Bed 1 Bath Condo in Canyon Place:

The unit boasts great views of Mt. Ogden and Lewis Peak.  The unit is almost 1000 SQFT and listed at $84,900.  It has a one car garage and a shaded yard.  The interior is well kept.  Here is a video tour:

If you are interested in viewing this property or need additional HOA details, please CONTACT ME.

Friday, June 14, 2013

Photo of the Day: Foundation Failure

I had a former client call and ask me to run some numbers on a rental property I sold them in 2007.  While reviewing the rent rolls and expenses, it was disclosed that one of the units was vacant due to a tree and some foundation problems.  So, I went to check it out.  Here is what I found:

This is a photo of a basement exterior doorway.  These foundation walls are about 18" thick.  As you can see, the chinese elm in the top left of the photo has been growing next to the foundation for the past 30 years.  It has finally reached the size and weight to make an impact on the home's foundation.  In this case, it has done so in a big way.  I estimate that there is about 8' of foundation section that needs to be removed and replaced.  This is a big job.

Homes with bad foundations are extremely difficult to finance...which means they are very difficult to sell.  So, if you haven't taken the time to remove big trees growing near your home's foundation, do it today.

Tuesday, June 11, 2013

STAGING HOMES: No One Wants to See Your Gourd

Real Estate is an emotional experience.  When buyers look for a home, they typically have some criteria in mind for what they want.  However, there is an unquantifiable emotional factor that goes into the buying decision as well.  While cosmetic appearance and proper finishes go a long way to attracting buyers.  Staging a home with furnishing and decor can go a long way toward eliminating and last hesistations and submitting an offer.  

For instance, lets take a look at this good example:

Notice the lack of clutter,the proper spacing, use of plants, lighting, rug etc.  The space looks accessible, useable, and inviting.  The furnishings are appropriate for the home.  

Here is an example of a simple kitchen:

There is nothing too fancy here.  Just a nicely set table with clear countertops and a couple decorative towels on the stove.  

Now here is an example I saw on the MLS recently of a bad staging:

Squash or a gourd anyone?  Also, its always nice to see a toilet when you are taking photos of the kitchen.

Bathrooms can be even simpler.  Here is our good example:

And our bad example from the MLS:

The moral of the story is that if you are thinking of selling your home, make sure you put your gourds and laundry away.  

Friday, June 7, 2013

JUST SOLD! Victorian Diamond in the Rough

I just closed with some buyers on this property at 2241 Eccles Ave. in Ogden:

My clients came to me wanting to purchase a historic grade property.  After looking at a number of homes that fit that bill, we settled on this one.  The home, built in 1892, has 4 bedrooms, 1 bath, and sits on .15 acres.

The seller of this home acquired it in at a bank auction after the previous owner foreclosed.  As a self-proclaimed house flipping 'guru', the seller put his minions to work rehabbing the house.  This photo was taken just a couple days ago.  As you can tell from the copious amounts of over spray paint on the windows, this guy did a half-baked job.

This poor attention to detail was also evidenced in our transaction experience.  We negotiated a sales price of $76,500 with the seller paying $2,250 in closing costs while getting an FHA loan.  The seller agreed to make any FHA necessary repairs.  As it turns out there were many.  The seller received and signed the repair list on May 3rd.  No work was done on the home for over a week.  With our due diligence and appraisal deadline looming on the 15th, we extended them to give the seller more time to complete them.  Some work started but the appraiser went back to review the work and discovered that most of the work had not been done.  We had to extend our deadlines again to May 30th.  Finally, the appraiser was able to sign off on the completed work.

In the midst of this whole repair fiasco, the seller defaulted on his financing on the property.  That was a big red flag regarding this seller's ability to perform.  The seller also had other houses in the area that had notices of default filed against them as well.  I expressed my sincere concern to the listing agent and in response I received a direct email from the seller blasting me for calling his credibility into question.  It appears that we were all supposed to turn a blind eye to his lack of performance on his mortgage obligations.

Then came the final coup de grace at closing.  For a week prior, the seller had been calling the title companies everyday wanting to know when closing would happen.  (It seems he really needed the money as quickly as possible.)  To accommodate the seller, my client's lender worked extra hard and pulled some strings to get the transaction table funded.  The benefit would be that the buyer and seller wouldn't have to wait for a full day after closing for the transaction to fund and record.  Rather, closing and funding would all happen on the same day.  So what happens?  After all that effort and agitation, the seller leaves town unannounced on the day of closing and fumbles the paperwork.  This last minute surprise meant my clients had to reschedule their moving party and work schedules.

So, the bottom line is my clients are glad to be in the home now.  They will be restoring the property and bringing it back to its full historic potential.  Congrats to my buyers on their purchase!  And the added bonus is we are all much wiser now.

Saturday, June 1, 2013

Monroe Blvd: From North Ogden With Love...Or Extreme Prejudice

With as many awesome amenities and the cool historic vibe Ogden has, many people have wondered why it isn't further along in its growth trajectory than people would expect.  As a resident of downtown for 8 years and a former suburbanite (from Roy) myself, I have to laugh at an article recently published in the Standard Examiner while also citing it as Exhibit A in my explanation of what has historically held Ogden's resurgence back and, ironically, is now propelling it forward.

The story in the Standard regards an effort to connect North Ogden and Ogden via Monroe Blvd.  For decades the unfinished portion of Monroe Blvd. has been perceived as acting as a buffer between Ogden and North Ogden.  Since North Ogden boasts the second highest income per household in the County, there has been an air of exclusivity to the town.  This proposed connection has openly exposed the citizens' latent condescending sentiments toward their southern neighbors.    

However, before we get to the gaffe gallery, it is also important to understand that Ogden experienced a significant population drain in the 1960's and 1970's as people left Downtown Ogden to flock into budding suburban developments on the fringes of the county.  These suburban pioneers taught their children and grandchildren the reasons for their exodus from Ogden and created an ongoing local market sentiment.  The reasons for leaving were valid at the time, but today, those reasons are more myth than they are fact.  Yet, these suburban pioneers today are at a stage in life where adaptation to change is not quick nor necessarily desired (for instance, just ask them to download an app on an iPad for you and see how that goes.)       

Hence, we have presently unjustified and lingering perceptions of Ogden. The Standard reports what I think are nakedly honest, yet regrettably prejudiced, quotes from North Ogden residents on their feelings about connecting Ogden and North Ogden via Monroe Blvd:

I’ve got to be careful here. I’m not prejudiced, but we do live here for a reason,” Bigler said regarding crime and what kind of people would move to North Ogden if the road is expanded.

Resident Mary Beus said she moved to North Ogden to raise her family in a safe environment.

“I used to live in Ogden. I know a little bit about what Ogden is all about,” she said, becoming emotional. “You are taking my dream away.”
The North Ogden City Council and citizens do need to be very careful.  Because, if Monroe Blvd. is expanded, there is a good chance I might move there.  Then what could they say about their town.

Fortunately, time is on Ogden's side.  Attitudes such as those expressed in these quotes are fading into history.  Also, as the local rising generation matures, they have demonstrated a much more open-minded attitude toward Ogden's renaissance and a desire to live in a Historic urban and residential center.  The amenities and entertainment are here.  The architecture and culture of Weber County are here.  Our family loves living in Downtown and we continue to work to make it an even greater place for people to live and play.  


JUST SOLD! Quiet Canyon Area Condo

I just sold this quaint 2 Bed 1 bath condo near Ogden Canyon.  We listed the property for $84,900 in April.  Shortly after we listed the property, I received a notice from a loan officer that they had worked to get the complex FHA approved since it had lost its certification.

Then, shortly after that, we received an offer for $80,000 with the buyer asking for $2,400 in closing costs.  My client accepted and we closed on time in a swift transaction.

If you are thinking of selling your property, CONTACT ME, and let's see how quickly we can sell it it today's market.

Photo of the Day: By Gone Gutters

Cleaning rain gutters each year is an important chore.  Since gutters provide important water management to a home and protect it from damage, gutters with debris in them can prove to be a real hazard.  I especially do not recommend using your rain gutters for composting.

So, if you have enough dirt in your gutters to grow weeds, its time to clean them.