Here is a great new way for potential Buyers of Park City area real estate to find out a bit more about the town and the neighborhoods.  It is also a great new way for locals to obtain information about the goings in around the city.  The Park City Police Department and Summit County Sheriff’s Office have begun posting local crimes on a public web-site.  The site is updated daily by 7 a.m.  Simply go to http://www.crimereports.com/ and click on Utah then pick Park City from the drop down menu.  A map will show up and be populated by the crimes that have been reported/acted on by the police for a given date range. 

          The vast majority of the crimes being posted are consistent with typical resort town problems.  The site maps parking problems (a big issue this year due to all the snow we’ve had), traffic stops, noise complaints, assaults and property crimes.  The site offers email alerts, and the ability to look up crime reports by the type of offense.  It also gives addresses and information regarding registered sex offenders. 

          The website should become a great asset for locals and second home owners alike when determining what precautions if any may be prudent while living or vacationing in Park City.  It will also give second home owners the ability to look at their neighborhood and see what has been happening while they aren’t here.

          All in all, I believe that in looking at the crime maps for Park City, people will be better able to appreciate the local police as well as feel safer in general about living in Park City and owning property here.

          The Realtors at http://www.youinparkcity.com/ are familiar with the neighborhoods in town and can assist in pointing out areas that may be a problem (our Resort town contains few if any of these) and the new crime maps will provide additional data.

          The website contains data for many other cities.  A comparison to a major city puts a lot into perspective (take a look at San Diego for instance).  When filing through the crimes there and comparing them to Park City, one can get a better sense of the relative safety of our Resort town.

           Buyers and Sellers Agency are possibly the most misunderstood portions of Utah real estate law.  This may be more true in Park City real estate transactions than other portions of Utah as many of the buyers are second home buyers and their knowledge is based on another state’s law.  Agency is something that at first glance seems quite straightforward; that is, until the idea of dual or limited agency is introduced. 

          Agency is defined as: The relationship created when one person, the principal, delegates to another, the agent, the right to act on his or her behalf in business transactions and to exercise some degree of discretion while so acting. An agency gives rise to a fiduciary relationship and imposes on the agent, as the fiduciary of the principal, certain duties, obligations, and high standards of good faith and loyalty.  To understand this we need to further define Fiduciary as: The relationship of trust, honesty and confidence between agent and principal; the faithful relationship owed by an agent to the principal.

          In a straightforward real estate sale or purchase, there is an agent working for the Buyer and one working for the Seller.  Things change though when the Buyer is not represented or is represented by the Seller’s agent (Limited or Dual Agency in Utah).  Utah law allows for these types of transactions to exist and many agents actually try to involve themselves in them.  Why? Money of course!

          Sellers, when agreeing to allow and agent to represent them in marketing and selling their home, agree to pay the agent a commission regardless of who sells the home.  The agreement allows the agent to offer a commission to a Buyers agent for bringing a Buyer and taking care of the Buyers side of the sale.  If the Seller’s agent can find a Buyer, the agent doesn’t have to share with a Buyers’ Agent.  The agent doubles up their commission. 

          The issue that presents itself here is: how can an agent act as a fiduciary in when their responsibility is to two different people with somewhat opposing interests.  The Seller wants the most money for their home and the Buyer wants the home for the best price available.  How can the agent work to get the most money for the Seller and the best deal for the Buyer at the same time?  They can’t.  In fact all parties involved have to sign an agreement allowing for Limited or Dual Agency.  The form effectively states that the Agent involved now works for no-one and is merely an intermediary making sure that all paperwork is understood by all parties and completed correctly.  And for acting in neither party’s best interest, the agent gets “both sides” of the commission the Seller agreed to pay.

          Unfortunately, this situation presents itself due to an innocent mistake made by the Buyer thinking that they will get a better deal by dealing with the Seller’s agent rather than getting their own.  We at the YouInParkCity.com group attempt to not involve ourselves in the practice of “Dual” or “Limited Agency”.  We encourage all of our Park City real estate clients to be represented by a Realtor that is working solely in their best interest.  Feel free to contact us by phone (888) 968-4672 or email so that we can start working for you!

          I have found that Buyers in the Park City market often share something in common.  I am sure that what they share is true of not just Buyers of Park City real estate, but is true of real estate buyers everywhere.  I’ve experienced that it is possible to show a home that seems perfect for what I was told the buyer wanted and was well within the price range we discussed, only to have no offer written. The affliction here is; not knowing what all the Buyers want. 

          It really isn’t that the Buyer doesn’t know, but the fact that Buyer is rarely a singular term.  Buyers can represent a couple, a family, an extended family, a group of like-minded vacationing friends, investor group and more.  Each person in these groups has their own “perfect” house, condominium or property in their head.  Rarely is it the same as the others in their buying group.  In fact I’d say never is it exactly the same.

          Before going out to search for the perfect property, it is necessary to come to terms with what the perfect property is.  I suggest that all members of a buying group (or all people affected by the new purchase) draw up a list (individually) of the ten most important features the new property needs to have.  These should be ranked most important to least important.  Once this is done, all interested parties in the Buying process should get together and come up with one list of the most important features their new property will have.  This can be a very eye-opening exercise for all of the people involved.

          The new list will definitely be longer than the original 10 features, but it will also be much more useful when trying to narrow down what homes you spend time looking at.  The new list becomes the game plan and final goal for the Buyers and their Realtor.  With this game plan in hand, winning is nearly a foregone conclusion.  We will find a new home or property that works for you.

          This same type of exercise can be used when building a new home or remodeling your current home.  In the end some compromises are made and rarely are all of the wanted features met, but the time savings and understanding of what all the buyers involved will be worth the effort.

          Take some time and start your list.  We’d be more than happy to work with you on this and become the mediator when it’s time to combine the list into one.  Give us a call or email and we’ll get started on finding the perfect Park City property for you.  Get a head start by searching Park City properties on our website http://www.youinparkcity.com/ .

    Oversupply of housing coupled with a strong economic outlook for Utah catches the eye of people looking for a deal or strong investment.  The Daily Real Estate News posted this today:

 February 11, 2008

10 Best Places for House Bargains

The best place to get a bargain on a home is an area where there is healthy job growth and more houses available than people to buy them.

These are markets “where you have high inventories but pliable borrowers, with lenders willing to deal,” says Anthony Sanders, a professor of finance at Arizona State University.

Forbes magazine went looking for markets where the damage from risky lending hasn’t been as dramatic as in some parts of the country and where employment growth will burn off an over-abundance of inventory quickly. Here are what the magazine considers the 10 best cities for bargain house hunters.

1. Salt Lake City, Utah. Developers have gotten ahead of the demand, but the city is adding jobs more quickly than practically any place else in the country.

Source: Forbes, Matt Woolsey (02/07/08)          

          What does this mean for Park City, Utah?  While Salt Lake and Park Cities are less than 30 miles from each other, their market-places are surprisingly different, as are their climate, traffic and residents’ lifestyles.  Park City being what it is, a resort town with many non-resident owners, has for many years been a market very different from Salt Lake City.  Park City is very limited in its possible expansion areas due to its geography.  There are only so many places that have easy ski and recreation access.  The ability to not have to drive to go somewhere in town is a great feature of Park City and a feature that is limited to its city boundaries.  Residents living in Park City enjoy not being park of a big city and enjoy the feel of mountain resort living.  Scarcity is something that has and continues to drive prices and demand in Park City.

          The proximity of the two towns is very close, but pricing, demand, scarcity and the reasons to live in the cities are different between Salt Lake City and Park City. While there are some bargains currently in the Park City area and Salt Lake has been named one of the best markets in the country for bargains, it is more due to coincidence than the two cities being tied to each other.  Search http://www.youinparkcity.com/ to find Park City property.

          The Park City real estate market is compiling its year end data.  Spin is surely soon to follow.  

          The two graphs here can tell different stories.  There are more available Park City real estate listings on the market currently, and this number has been on the rise.  During this same time-frame, pended sales numbers have been decreasing.  First glance may indicate that there are more people trying to sell and fewer buyers.  A second look may also show that properties that were sold to speculators are being completed, sold and put back on the market (no longer pending and becoming active listings). 

          The two graphs above tell a much different story when viewed together than they do apart.  Park City total sales volume when viewed as a year-to-year comparison shows a very good year, with 2007 being not far from its peak in 2005.   This graph or statistic is the one that people seem to cite the most when asked about the state of the Park City real estate market. 

          The second graph shows that the number of transactions for 2007 was down dramatically from its peak in 2005. 

          The two graphs together indicate that the average price of a sale in Park City has gone up while the number of sales has gone down. 

          The past year has seen the completion of many homes in the Empire Pass area of Deer Valley as well as many new high-end homes in the Promontory and Tuhaye golf communities.  Many of these were speculative “flips” in the Empire Pass area and speculative builds in the others.  All of these new available properties have been built for the luxury buyer and contribute to all of the different data shown here. 

          Another angle that has to be considered when looking at this data is location and scarcity.  The boundaries of Park City, its ski resorts, its golf courses, its lack of available land for building, and peoples’ desire to live and own homes here contribute greatly to Park City’s property values. 

          It is very hard to consider any one piece of land, condominium, or home in Park City without considering nearby alternatives.  This means that much of the data needs to be cropped down to much smaller sample sizes for true comparative analysis.

          Interpreting data can lead to many different opinions about the state of real estate in Park City and a valid argument can be made for all of them.   The http://www.youinparkcity.com/  group loves to discuss these numbers and help you to make sense of how they affect your Park City real estate buying or selling decisions.

          Contact us for more information.  http://www.YouInParkCity.com/contact.php

Interest rates have an effect on the national economy and while real estate is always local, no two markets are totally detached from one-another.  Peoples’ ability to buy and sell in their homes or investment properties in other cities affects their ability to buy in Park City.  Moves by the Federal Reserve affect mortgage rates, but not always in the way people think.

The following is a well written piece from a local lender trusted by the YouInParkCity.com group.

Historic Fed Move Cuts Both Ways for Borrowers

Hot on the heels of its surprise inter-session rate cut of 75 basis points last week, the Federal Reserve cut key interest rates again, the fifth straight cut since September 2007. In its statement last week, the Fed said it had decided to cut the federal funds rate “in view of a weakening of the economic outlook and increasing downside risks to growth.” In other words, economic data suggests the US is on the brink of recession, and the Fed is acting accordingly.

Who benefits from this cut?
If you have a loan that is directly tied to the Prime Rate, you will see an immediate benefit. Home equity lines of credit (HELOCs) and variable rate charge cards are the types of loans that will have an interest rate reduction on their next statement.

What does this mean for long-term rates?
Long-term mortgage rates, the lowest we’ve experienced in years, could actually increase after today’s cut, based on historical performance and recent trends.

So if you’re waiting for long-term rates to fall further, don’t count on it. Your best chance to lock in the lowest rates since 2005 is now. Getting your application in process now will allow you to capture a great rate before it’s too late.

What REALLY moves mortgage rates?
Fixed-rate mortgage rates aren’t directly tied to Fed interest rate moves. Instead, they tend to follow in the direction of other long-term government bond yields, such as the 10-year Treasury, which historically moves in accordance with the economic outlook and in advance of Fed actions. The performance of Mortgage Backed Securities, issued by Fannie Mae and Freddie Mac, is what really determines long-term mortgage rates.

How does the economic stimulus package fit into the picture?
The economic stimulus package from Congress and the White House could be a double-edged sword for borrowers. Combined with recent Fed actions, the package could create inflation and bring about higher long-term interest rates.

On the positive side, conforming loan limits are likely to be raised from the current $417,000 to upwards of $625,000. This means great potential savings for purchase and refinance candidates who live in 20 high-cost areas across the country.

What should you do next?
If you’re unsure how the rate-cut or the proposed legislation affects your mortgage, don’t worry, you’re not alone. There’s no one-size-fits-all answer. Give us a call right away. We’ll review your mortgage and see what, if anything, can or should be done to make the most of your individual financial goals and needs.

Thanks,

Gregory Cutt

Inet Mortgage http://www.inetmortgage.net/

Changes that stem from the “Economic Stimulus Package” are truly the ones I believe will make a difference to our current economic difficulties as it is the ability to obtain and qualify for mortgages that are the problem, not interest rates.

Todd Anderson

http://www.youinparkcity.com/