What Do Real Estate Nerds Do In Their Free Time?

Read Zoning Rules Of Course

Interesting Tidbits on Sandy City Zoning-Special Use

Accessory Apartments & Guest Houses

  • Accessory Apartment approval is only conditional
  • Approval use is valid for only two years
  • Upon sale approval expires-non transferable
  • Occupants have to be related to homeowner unless they are the housekeepers
  • City approval has to be recorded
  • Guest house occupants can only be non-paying

Bonus Tidbit

  • 6 household pets are allowed
  • 10 chickens in addition to the 6 house hold pets are OK
  • No roosters

If your a real estate nerd and want to read the rules….here is the link:

https://sandy.utah.gov/home/showdocument?id=4246

 

Accessory Apartment A housing unit which is self-contained but incorporated within an existing structure that is designed as a single family dwelling and will not substantially alter the structure or appearance of the structure.

 

Always best to check with city zoning when you are wanting to make a big change to your residence so that you do things the right way and protect your home investment.

 

Please reach out to Janice Hernandez with Upper Room Real Estate if you have questions or would like more information about buying or selling a home. 801-205-1177

Why Professional Photos Are Still Needed In Sellers Market

Freelance-Photographer-VideographerMany agents in this sellers market think that they really don’t need to invest in professional photographer since houses are selling so fast.  While this true, professional photos for your listing aren’t just for the local MLS, but for marketing yourself to other prospects, whether it is postcards for just listed/under contract/just sold, company websites, flyers, etc. etc.

One of today’s challenges is that many houses are selling for above list price and comparables are challenging, thus it is imperative that appraisers be able to document your home with the pictures that are going to help.  A picture is worth a thousand words.

For just a small amount of investment (under $100) you can hire a photographer to take 15-25 still photos.  I used Kyle Aiken with Home Tour Company and was really pleased. Here is a side by side of my photos with Home Tour Company Photos because remember “The deal is not done till everyone signs.”  P.S. We got multiple offers on this listing.

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The Predictions Are In

 

Salt Lake Board of Realtors Economic Housing Forecast

Capture 2016Everything is peachy keen as far as the speakers see it, but are they really?

Ivory-Boyer Senior Fellow James Wood presented the following picture for Utah

  • 2015 was the 3rd highest year for single family sales up 22%
  • Median sales price up to $272,000
  • Days on the market lowest level since 2006 -21 days for homes
  • Strong Market pushing prices higher but they are still 5% lower than 10 years ago
  • Interest rates 4 to 4.5 maybe 4.75 by end of year
  • Less than 2 1/2% of loans under water currently

Natalie Gochnour, associate dean and director of the Kem C. Gardner Policy Institute at the University of Utah

  • Utah finished with #1 in fastest growing state
  • Utah is know to be the Wall Street of the West
  • Interest rates will have maybe 2 or 3 increases over the next year
  • Definitely no bubble
  • Very encouraging forecast
  • $30 million being dumped into the Utah economy over the next 3 months from airport renovation

Capture worldReality is that things are great for Utah and for the United States; however, what is going on in the world has a direct impact on us

Although Ms. Gochnour touched on some of the world economic crisis currently happening, neither speakers seemed to think that anything globally was going to have much of an impact on Utah in the near future.  My opinion is that it would be impossible for anything on the list below to not have a huge impact on 2016 .

  • Stock markets are extremely volatile
  • Investors in equities including private pensions are taking a huge loss
  • Talk of negative interest rates (Sweden already there)
  • Oil prices have crashed to below $27 a barrel
  • Financial troubles are still persistent in Europe
  • China’s bubble might be about ready to burst
  • Any major change with the Zika virus that effects travel

All I can say is keep your options open as the world is in a state of financial flux.  

What this means to people looking towards real estate is that when you are going to make a decision…

  •  Think about the goals you are trying to obtain
  •  Be smart about what you do
  • Think about the what if scenarios
  •  If you are selling and the market turns towards a buyers market are you prepared to reduced your price quickly
  •  Do you have the funds to sustain you should the unexpected happen
  • Can you handle this financial decision for the long term if need be
  •  Hope for the best, prepare for the worst

for more information on SLBR Forecast click link for live webcast http://slrealtors.com/portfolio/2016housingforecast/

 

3 Things Every New Agent Should Do

upperroomrealestatesign3So you got your Real Estate License – Now what?

 Pick Out Your Office

~In order to start marketing yourself you have to be under a broker and all marketing material including business cards must show your company.

~The Division of Real Estate, Salt Lake Board of Realtors, and the WFRMLS are all going to require you to hang your hat somewhere to be active.

Set Up Your Database/SOI/CRM(Client Retention Management)

~The majority of your clients will come from this arena.  Your broker may offer their system, but I would recommend that you get set up independently.

~I use Realty Juggler because it is inexpensive, comes with a 3 month free trial (which most new agents appreciate),and it has all the bells and whistles needed.

~This link will give you the 3 months and then if you purchase you will get 2 more free- http://www.realtyjuggler.com/?Source=janice%40upperroomrealestate.com

Get A Mentor

~ I believe that every broker has the task of helping their new agents become successful.  I am also a firm believer that this should not cost you extra money.  There are so many proven systems in place to help you be successful-take advantage of that knowledge!  Many of the agents that I have trained have gone on to have their own successful brokerages. Now that is success.

~The most important aspect about your mentor/coach is availability.  When I was new, I would have to call my broker at least 10 times while writing up a contract.  There are strategies to negotiating and because every deal is different you want to have a broker that will hold your hand through the process so that you learn not only the hows, but the whys.  Even though I have been doing real estate for over 20 years, I still have mentors.  Plus who else wants to talk real estate 24/7.

 

December Realtor – Do’s and Dont’s

what-is-your-marketing-strategyMany times real estate agents shut down during the month of December, but there are a lot of things you can do as a Realtor to be productive and get ready for next year. Wrapping up the current years business and organizing for next years is a natural flow and makes good sense. Reflection on things that worked, as well reassessing things that didn’t can make a huge difference in your day to day business, especially when things get busy. Realtors that have been around for awhile know that being consistent is one of the key elements to a real estate career and consistency comes from systems. If you subconsciously or consciously thought you would take the whole month of December off….think again.

If you want to be successful at selling real estate, putting in a 40 hour work week is essential, it just may be that your work week in December is different – not non-existent. Just be purposeful, lets just call this time of December an at home work retreat to focus on your business practice.

Here are some ideas for December:

  • Make sure your bookkeeping is up to date – register bank items, reconcile accounts and prepare documents for next seasons taxes. Still time for last minute adjustments.
  • Create next years business plan (Tom Ferry has some great info called “Your Best Year Ever”).
  • Organize your Database/CRM (Client Relation Management). Really get your categories down and get an actual number to your groups – this will help you budget and plan your marketing. I use Realty Juggler and it has all the bells and whistles. Its supper easy and it is only $99 a year, plus you get a free 3 month trial.  On my Facebook page dated October 19th I have a link that will give you another 2 months.
  • Put together a detailed marketing plan for next year.  For each month decide what groups you will be marketing to (Database, Personal Circle, Past Clients, Geographical Areal/Farm). Now decide how often each month you will be contacting them and by what method. Will you be sending postcards, letters, emails, social media, and don’t forget phone calls.
  • Order items that you know you will need-business cards, signs, postcards/mailers, directionals.
  • Practice scripts – There are a ton out there for free, but it is all about getting comfortable with them so practice, practice, practice.
  • Education – Get your continuing education done or watch videos that will get you excited about working. I love Kevin Ward videos-in fact, if I am going to go door knocking or cold calling I will often watch one of his quick 3 minute videos to get focused and pump up.
  • Create some marketing packets to deliver to FSBO, Expired, and other prospects. I have some nice packets that have a few little marketing odds and ends such as pens, notepads, business cards, some partner flyers and then some helpful real estate brochures.
  • Update your listing presentation.
  • Get a book that will stimulate ideas, encourage and motivate you.

If the stay at home vacation reaches its max and you need some social interaction (because we know that most Realtors are 99.9% social beings)

  • Network with other agents, brokers, lenders, and title.  Create some partnerships where both parties give each other referrals. I get great ideas all the time from others in the business.
  • 5-5-4 Daily – Talk with 5 past clients, Make 5 new connections, and 4 lead follow ups.  Don’t skip over the part that said “Daily”.

If you are having trouble being motivated, get a real estate friend to do these ideas together or to keep each other accountable and remember that whatever you put your hands to will be prosperous.

How much does a Utah Real Estate License cost?

Girl holding model of house isolated on white

Thinking about getting your license to be a Utah real estate agent?  This list is an approximate cost of how much to get started.  If you do get your license, keep in mind Upper Room Real Estate where we offer a 90/10 split.

$ 595  – School- My favorite is Stringham

$  66  – Test

$ 152  – Utah Division of Real Estate

$1,325 – Salt Lake Board of Realtors (Prorated)

$ 200  – Wasatch Front Regional Multiple Listing Service new subscriber fee

Once licensed…

$  33  – Wasatch Front Regional Multiple Listing Service (Monthly)

$775  – Salt Lake Board of Realtors (Yearly)

$  42 – Utah Division of Real Estate (Every 2 Years)

Don’t forget you will also need to purchase business cards, signs, lock boxes, continuing education, and of course marketing (just to name a few).  Let us help you navigate the process and save you money on the way.

 

Whats the real deal on discounted commissions?

One of the nice things about being a Real Estate Agent is the ability to be flexible in how you do business, but should you discount your commission? As with anything there are times that discounting makes since and other times that it doesn’t.

Discounting Works Really Good When.
1. Investors are doing repeat business. Most investors when purchasing a home are planning on selling in a month or so after doing the rehab. Often by the time that the property is under contract they are on to the next property. Investor homes are usually priced for quick sale, homes are immaculate, key boxed and vacant. Very little expense on marketing is expected.
2. Home owners that are selling and purchasing a home can also sometimes see a discount on their listing because agents know that the time frame of the two deals will most likely happen at the same time and that there is a huge benefit having one agent coordinate simultaneous closings.
3. When there is only one agent involved. This one is tricky because as the only Realtor involved it sometimes ends up being twice the work. The nice part about this is that by using only one agent, the client is most likely using people the agent recommended ensuring that the job will get done. Time is money and often with every unknown part of deal the risk of not closing increases. There is no way an agent is going to tie up their listing with a buyer who cant pull it off. Having a good lender and title company are crucial to a smooth deal.
4. New agents will sometimes offer a lower commission in order to get a couple of listings that they can use to springboard themselves on to other clients or to farm/market a neighborhood. Even season agents may do this occasionally in order to get a sign in a neighborhood they are targeting.
5. A home that is priced extremely competitive. A home that is going to sell quick is a dream come true for any agent.

Discounting Does Not Work When…
1. Seller expects the same amount of work as a full price commission. Professional photography, bus tours, internet marketing, colored brochures, door to door knocking, open houses, mailers and on and on. When an agents net goes down so can some of the out of pocket expenses.

Flat Fees Listings Are The Worse…
1. Liability. There is just so much risk in the selling or buying of real property it just is not worth the small fee usually charge to be put on the MLS. Even with flat fee listings your name is still going to get dragged into a lawsuit should anything go wrong.  Just think about discrimination, lead base paint, mold, wrong forms or no forms.  What a nightmare this can be.
2. Often Sellers do a flat fee thinking they will save money and yet still have the advantage of being on the MLS. There is so much that goes into marketing a property, screening and availability of showings, safety at open houses, liability, errors and emissions insurance, disclosures, negotiating, working with the lenders and title companies, extensions, forms etc.etc. Probably the biggest downside to the flat fee is that an experienced agent within a few conversation with a seller gain so much advantage that a seller usually has no clue as to what they have given up at the negotiations. Time frames and loopholes for buyers to walk from the deal will all be in favor of a represented buyer as well as bottom line price of the home. Sellers will very often tie up their property for weeks only to have the deal fall through and not be compensated with keeping the earnest money.

I personally wont do a flat fee listing because there is value in what I do, so much more that putting a property on the MLS. Yes, I have had clients, even friends, choose to go with flat fee company’s, but in every instance they have had to ask for my help at some point in their transaction and the sad thing is, more often than not, it was to fix something gone wrong.

I would like to encourage you to give some real thought about when as a professional you will or wont discount your commission and then stick with it.

How Does An Agent Survive?

Perhaps you are just graduating real estate school and are shopping for a place to hang your license.  Picking a company can be challenging.   Real estate agents often talk in an entirely different lingo and the terms can be thrown around to the point where it can be overwhelming.  When you are interviewing Brokers at different company’s,  a percentage is often put out there…We’ll give you a 70/30,  or an 80/20,  or maybe even a 60/40.  But what does that mean to you?  This ratio is in regards to the split you will have with your new company.

For example,  say you are helping a Buyer purchase a home for $100,000.  You may see on the MLS (Multiple Listing Service) a BAC of 3%.  BAC is the Buyer Agent Commission.  This is the amount the Seller is going to pay your Broker – and in this case it would be $3000.  After closing (the deal has been recorded and is final), the Sellers title company will send your broker a check.  Your broker will have a total of $3000 (a portion of that money may have actually been earnest money your broker was holding-but that’s another story).

If you have a 60/40 split your broker will keep $1200 and you would get a check for $1800.

If you have a 70/30 split your broker will keep  $900 and you would get a check for $2100.

In addition your broker may charge you a transaction fee, a desk fees, training fees, mentor fees, secretary fee, bookkeeping fees etc. etc…Don’t forget you also have your own out of pocket expenses that you spent to make the deal happen (printing, marketing ,equipment, open houses, postage, business cards)

At Upper Room Real Estate, we offer a 90/10 split!!! That means you get to keep more of the money that you worked so hard to make.

If you have a 90/10 you would receive a check for  $2700.  

One of the big reasons so many agents cannot survive as a Realtor is due to the arm and leg so many big companies charge.  Don’t let this happen to you.  Start off on the right foot.  The more money you get to keep means your bills get paid and you have money to reinvest in making your real estate career successful.