I'm very excited to announce that I've just received my CDPE designation and am looking forward to working with home owners avoid foreclosure by facilitating their short sale. Not every distressed property is bank-owned, a short sale or in pre-foreclosure, though. In preparing my current clients for the 2010 real estate market in Utah, I sent the following email this morning. One client agreed with an aggressive price reduction. One withdrew her listing from the market. I am waiting to hear back from ten others.
Home-price decline has good side, bad side
... Utah had the fourth-worst percentage drop in home prices among all states over the past year, which has improved affordability but also pushed more homeowners "underwater" on their mortgages ...Good Morning, Everyone,
I have had a couple clients tell me that they have heard that the market is getting better (courtesy of news reports on CNN, FOX and MSNBC). Please remember that all real estate is local and "better" is a relative term. It will be 2011 before we see any sustained increase in home values in Northern Utah and that improvement will only be after another year of declining values.
I have additional information to share with you regarding the next round of defaults, short sales and foreclosures on the horizon. With the exception of a "breather" mid-2013, it will be 2015 or later until we achieve pre-2007 home values. I just received my CDPE (Certified Distressed Property Expert) certification and now have access to detailed, specific data regarding the coming tsunami.
If you are serious about selling your property, it must be priced like a distressed property (short sale, foreclosure, bank owned). This is your competition, and it is not going away. I shared the following with one of my clients yesterday:
... The bottom line is that, no matter how many people want to buy a home and/or take advantage of the $8,000/$6,500 tax credit, that they cannot qualify for a loan if they are not employed or are under employed. Even in a move up market home like yours, it is ofter the second or spouse income that is needed to qualify, and if either the primary or secondary wage earner isn't employed, then the buyers can't qualify. VA is currently the only 100% financing out there for your home. FHA is now at a 3.5% downpayment and is projected to increase to 4%+ effective January 1, 2010. Unemployment rates in Utah have been steadily increasing (up another 3.3% in October, month over month). There has been decreased relocation (military or civilian) at the base and I have personally had two relo referrals who decided to rent because of re-sale concerns in 3 years. All of this creates a recipe for fewer buyers, longer days on market and more and more decline in home values.
There has been an incredible shift in buyer price point expectations. Buyers used to expect to pay 5-10% more for a non-distressed property (those not short sales, bank repos, abandoned, etc.). Now, buyers expect ALL homes to be priced like distressed properties. They simply won't buy otherwise ...
What is a CDPE?
Excerpt from the Distressed Property Institute, LLC websiteA Certified Distressed Property Expert® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.
The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.
While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be. Selecting an agent with the CDPE Designation ensures you are dealing with a professional trained to address your specific needs.
CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.
Knowledgeable & Professional Representation ... Aggressive Negotiation
Kim Novak is a Realtor® and Broker Associate with RE/MAX Masters in Salt Lake City and Layton, Utah. Licensed in 1995, Kim has closed over 500 sales during her full time real estate career and achieved industry recognition as a Lifetime SalesMaster and member of the RE/MAX Hall of Fame. She holds a BSBA with an emphasis in Sales & Marketing and has achieved the following designations/certifications:
ABR: Accredited Buyer Representative, AHWD: At Home with Diversity, CDPE: Certified Distressed Property Expert, CHS: Certified HAFA Specialist, CRS: Certified Residential Specialist, CSP: Certified New Home Sales Professional, ePRO: Internet Professional, GRI: Graduate of the Realtor® Institute, SFR: Short Sale & Foreclosure Resource, SRES: Seniors Real Estate Specialist
Kim, it is great to know some Realtors are going above and beyond to specialize and better serve their clients. Congratulations on your new designation.
Just wanted to add that in Utah we are lucky to have a second option for 100% financing: Utah Housing! It's qualifying guideline is a little bit stricter than VA and FHA, ( such as minimum credit scores of 660 versus 620 on FHA for example ) but still a great option for first time home buyers that have good credit, stable income and need the extra help with the down payment.
Also, some cities in Salt Lake County still offer the down payment assistant program, buyers can find the guidelines at http://www.slcdc.org/downpaytassist10-18-09.html
Best regards,
Charlote Odebrecht
Hi Charlote,
Thank you for the updated info on the individual cities in SLCo that have down payment grants available. That link will be a great one to add to my websie. Thank you, again, for sharing this information!
Utah Housing is a great program, but I don't feel that it has been such a great option recently. It would be better for an FHA buyer to be gifted their down payment, or save for it, then to try to meet all of the stringent requirements and pay the high costs of Utah Housing: First-Time and/or Single Parent Buyers Only, Restrictive Income Guidelines, High Credit Score Requirements, an Interest Rate that right now is 1% higher than non-UHC FHA (5.75% vs 4.75% available on Wednesday) plus the second mortgage for 100-103% financing of up to 6% for downpayment/closing costs through UHC's Equity Now Program (which is simply an advance on the $8,000 tax credit) at a current interest rate of 7%! There are also a limited number of lenders that are actually willing to facilitate the Equity Now Program, which has "temporarily" replaced the FirstHome Plus Program. For these reasons, I did not include Utah Housing as a viable 100% financing option.
If you have had success qualifying Utah Housing buyers using the Equity Now Program, please let me know. I need a lender to refer my clients to!
Hope you had a wonderful Thanksgiving!