From Deseret News archives:
Home bargains: It's vital to do research before navigating a buyer's market
Mortgage rates are down, prices are falling and inventories are high, while job growth remains strong in the Salt Lake area. Forbes this month ranked Salt Lake at No. 1 on its list of the "10 best cities for bargain house-hunters." Despite the comparative market and economic strength, shopping for a home in a buyer's market can still be challenging, and real-estate agents and mortgage brokers warn consumers looking to buy to do their homework before making any decisions.
"Shop the market, take time to learn the market," said real-estate agent David Seiler with ReMax Associates. "Areas of the valley are going to be vastly different right now, depending on inventory levels."
Homes are staying on the market longer now, and sellers are reducing prices. One home in Salt Lake originally listed at $380,000 was recently reduced to $317,000 in an effort to entice more interest from prospective buyers, and it still hasn't sold, he said.
Seiler said buyers should choose a reputable real-estate professional to help them in their search and do some research on their own, as well.
At the same time, mortgage rates are down sharply from a year ago. Prestwich said the average rate for a 30-year fixed-rate mortgage on Wednesday was 5.88 percent, and 5.38 percent on a 15-year fixed-rate mortgage.
Jillinda Bowers, president of the Salt Lake Board of Realtors, said buyers should find a good lender whom they trust. The Wasatch Front market is a good place to put down roots, she said, because the chances are strong that a long-term investment in a house will show appreciation.
Since builders currently have some excess inventory, many of them may offer incentives to potential buyers, or buyers might be able to negotiate upgrades or home warranties, she said.
Seiler said that while buyers may have some advantages in the current market, they shouldn't expect to get a steal. "There are not a lot of those out there," he said.
Some buyers make the mistake of trying to underbid on a home, thinking they can use their leverage to their advantage, but they end up offending the seller and ruining their chances to get a good deal on a property.
"You need to find a balance," Seiler said. "Try to make the offer just good enough that it's going to help you, but not bad enough that they might not accept it."
E-mail: jlee@desnews.com
Recent comments
darebroker,
You seem to be one of those who has done little...
TOT | Feb. 15, 2008 at 1:35 a.m.
Forbes must have had a local realtor or the chief kool-aid stirrer...
All hail the market correction | Feb. 14, 2008 at 8:03 p.m.
It's amazing to see the emotion and radical views surrounding this...
darebroker | Feb. 14, 2008 at 6:10 p.m.
- El Salvador flooding kills 8 Mormons 2:12 p.m.
- Denzel Washington set for 'Fences' 2:12 p.m.
- People's Choice Awards nominees 2:10 p.m.
- Ex-Bear Stearns managers not guilty 1:54 p.m.
- Jeter, Teixeira win Gold Gloves 1:54 p.m.
- Obama salutes Fort Hood victims 1:53 p.m.
- D-Will, Price sit out Jazz practice 1:11 p.m.
- Utah Jazz: 2010 NBA All-Star ballot 1:09 p.m.
- Ex-astronaut pleads guilty in attack 1:01 p.m.
- Mo. governor's mansion lockdown 1:01 p.m.
- Utah group finds homes for orphans
- Senators want food tax restored
- Jazz blow big lead, hang on
- Y. tight ends talented tandem
- Utes get extra motivation
- Alta's Ohai is Ms. Soccer 2009
- Pratt pleads not guilty to sex charges
- Soccer MVPs know how to win
- Price injured; Miles has cast removed
- BYU soccer incident still popular
- House passes health care bill
242 - TCU showdown has big implications
185 - Lobo suspended
183 - Cougars crush hapless Cowboys
155 - Senators want food tax restored
136 - Utah Jazz fall apart against Kings
131 - TCU 4th in AP poll; U. 16th, Y. 22nd
119 - No 'backlash' for pioneers, gays analogy
104 - RSL rallies to advance
103 - Utes pound winless Lobos
89
Does this third bailout to Government Motors mean more of our limited tax...
I just want to say i have had the pleasure to coach Kealia. I so happy for...
I say, if we are going to pass a health care bill, let's be smart about it....
Should I be upset at my ancestors for coming to the USA from Britain? I had...
Were there any Muslims attacked? ============= Dude, where have you been?...
To "jackhp | 12:00 p.m. " so what you are saying is that it is better to for...
RE Looking Back | 6:50 a.m. You are only seeing the part of history that...
'Just what we need another law which duplicates law already on the books.' ...
We are cheering because we barely won in NY? Oh how far this franchise has...
They are like little kids licking popcicles and playing playstation vidio...


