How It Keeps Home Buyers and Sellers Safe:

What Is Escrow? 

In real estate, an escrow account is a secure holding area where important items (e.g., the earnest money check and contracts) are kept safe by an escrow company until the deal is closed and the house officially changes hands.

Escrow is also a contractual arrangement in which a third party—usually the escrow officer—maintains money and documents until the deal is done.

How escrow works

The escrow agent is a third party—perhaps someone from the real estate closing company, an attorney, or a title company agent (customs vary by state), says Carriene a real estate professional with Precision Realty & Associates.

The third party is there to make sure everything during the transaction proceeds smoothly, including the transfers of money and documents. Escrow protects all the relevant parties in a real estate transaction by ensuring that no funds from your lender and property change hands until all conditions in the agreement have been met.

Once all conditions are met and the transaction is finalized, the money due to the sellers is transferred from your lender to them. Meanwhile an escrow officer clears (or records) the title, which means the buyer officially owns the home.

How much does escrow cost?

That varies—as well as whether the buyer or seller (or both) pays—with the fee for this real estate service typically totaling about 1% to 2% of the cost of the home.

The earnest money deposit

Earnest money—also known as an escrow deposit—is a dollar amount buyers put into an escrow account after a seller accepts their offer. The escrow company will hold onto that money for the duration of the transaction.

Another way to think of earnest money is as a "good-faith” deposit into an escrow account that will compensate the seller if the buyer breaches the contract and fails to close.

What is an escrow account?

When you make your monthly payment to your lender, part of it goes toward your mortgage and part of it goes into your escrow account for property taxes and insurance premiums such as homeowners insurance or mortgage insurance. When those bills are due, your lender will use the funds in your escrow account to pay them.

How escrow protects you

Escrow may seem like a pain, but here's how it can work in your favor. Let's say, for example, the buyer had a home inspection contingency and discovered that the roof needed repairs. The seller agrees to fix the roof. However, during the buyer's final walk-through, she finds that the roof hasn’t been repaired as expected. In this case, the seller won’t see a dime of the buyer’s money until the roof is fixed. Talk about a nice safeguard!

Sellers benefit from escrow, too:

Let's say the buyers get cold feet at the last minute and bail on the transaction. This may be disappointing to the seller, but at the very least, buyers have typically ponied up a sizable chunk of change for their earnest money deposit. This money, often totaling 1% to 2% of the purchase price of a home, has been held in escrow. When buyers back out with no legitimate reason, they forfeit that money to the seller—a decent consolation for the sale's failure.

Escrow, in other words, is the equivalent of bumpers on cars, keeping everyone safe as they move forward in a real estate transaction. Odds are, no one's trying to swindle anyone. But isn't it nice to know that if something does go wrong, escrow is there to cushion the blow?

For a more information, There’s no substitute for the expertise of a Realtor® Carriene Porter @ Precision Realty & Associates LLC, has access to a vast database of information with recently listed and recent sold to help you home in. CALL Today 801-809-9866. 

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Big Reasons to Sell Your Home This Year

(Because It Could Get Tougher) It's no secret that life's been 

pretty good to sellers for the past several years. Even if you had no need—or desire—to move, the housing landscape might have seriously tempted you to put your house on the market anyway. After all, it's hard not to see visions of dollar signs when your neighbors are unloading their homes for tens of thousands over asking price.

But as they say, all good things must come to an end. And you've probably heard that the white-hot housing market of years past is finally beginning to cool.

So if you haven't listed your home before now, did you miss the boat? Absolutely not. But with each passing month, the experts say, you can expect the housing climate to shift a bit more in buyers' favor.

"It’s definitely still a seller’s market in most of the country. But it’s not the same seller’s market that you saw in the last couple of years," says Carriene Porter @ Precision Realty & Associates LLC. "You might have to think about how your home compares to the competition that buyers are going to see when they're shopping. And you might have to price a little bit more competitively, or think about other enticements to attract buyers."

There's still a chance to cash in for top dollar, though, if you move quickly. Here are the biggest reasons to sell ASAP in 2019.

1. You won't be the only listing for long

That tide is turning this year, Carriene says. That's because the number of homes for sale is finally increasing, albeit slowly. For now, buyers still outnumber inventory. But if you're thinking about selling and don't want to compete with your neighbors, it'll pay off (literally) to list earlier rather than later. (This is particularly true in pricier markets, where inventory is increasing at a faster rate than more affordable areas.)

"It's going to depend on what neighborhood you're in, but we expect it to be more common this year that you won't be the only listing," Carriene  says.

2. You still stand to make a 'handsome profit'

Home prices have been on a meteoric rise for the past seven years. In January 2012, the U.S. median home price was $154,700. Today, that figure has nearly doubled—to $289,300—and sellers have rejoiced.

Now comes a twist: 15% of all home listings saw price cuts in January, according data.

That might sound like bad news if you're thinking of selling. But hear us out: Those moderating prices, combined with today's mortgage rates (more on that below), mean increased buyer demand for your house.

Plus, it's not that home prices aren't still increasing—they're just not increasing at the frenzied pace of previous years, which often featured multiple offers at or above asking price, Carriene  says. So even though you might have some more competition as a seller, things are still looking pretty sweet for you when it comes to cold, hard cash.

"Even if you don't get an offer above your asking price, you're probably still going to come away with a handsome profit from being a seller in 2019," Carriene  says.

But again, it'll pay to put your home on the market as soon as you can—before conditions change.

3. There's high demand for homes under $300K

There's more good news if you own a home below the national median price of $289,300. Not only is that inventory increasing at a slower rate, but there are more buyers shopping at those price points.

"If you’re a below-median-price seller, you will see a seller’s market that is as goodas what you saw in previous years—maybe even better," Hale says. "You might still see multiple offers coming in quickly, maybe even above asking price."

4. Mortgage rates are at a new low

Experts predicted mortgage rates would rise—and at the end of 2018, they were indeed ticking upward as expected. But since the start of the year, rates on a 30-year fixed mortgage (the most popular home loan) have been falling, sliding last week to a new 12-month low of 4.37%. And of course, those historically low mortgage rates mean you could have more buyers knocking on your door.

5. Millennials are flooding the market

Historically speaking, people tend to buy their first home around age 30. And guess what? We've got a whole bunch of people turning 30 in the next two years—nearly 5 million, in fact. So you can count on those millennials to be a driving force in the housing market.

"Millennials want to own a home as much as prior generations," Carriene  says. "We saw millennial shoppers scooping up homes in 2018—and 2019 will be no different."

What's more, Carriene adds, is that you won't just be seeing demand from first-time buyers. Older millennials in their middle to late 30s have already owned a home for a few years, and could be looking at now as a prime time to trade up. "From a seller’s perspective, you’re going to have possibly more interested buyers," Carriene says.

"So that’s motivation to put your house on the market. Carriene Porter @ Precision Realty & Associates LLC, has access to a vast database of information with recently listed and recent sold to help you home in. CALL Today 801-809-9866. 

#Mortgage #UtahRealEstate #Selling #Buying

Utah Housing Down Payment Assistance

If Downpayment is your challenge,
Utah Housing Downpayment may be able to help you.  

#Buying #Selling #Mortgage

Provo Utah Best for Buying Starter Homes

Get ready for a real estate tsunami—two of 'em, in fact. America's largest-ever generations, millennials 

and baby boomers, are entering their prime home-buying years at the same time! 

Provo, UT

Median list price: $377,500

Share of buyers aged 35 and younger: 51% In recent years, Provo's cultivated a growing startup and tech scene. But despite all of the growth in this city situated between Utah Lake and snow-capped Provo Peak, it's still relatively affordable compared with other big tech destinations.

The price tag here might sound a little high, but homes go for a median $393,000 in Salt Lake City, about 45 minutes north of Provo. The typical down payment here is just 6%, a much lower barrier for younger buyers than other higher-priced cities.

Provo also boasts a down payment assistance program for first-time home buyers,which includes assistance of up to $10,000. The city makes them put down at least $1,000, and they must repay half of that amount if they sell the home within their first two years of ownership. 

Completing a Loan Pre-Qualification you'll be on your way to locking in your interest rate and giving assurance to prospective sellers that you mean business. Pre-qualification is easy and can be done via email or over the phone by speaking to George Andersen at 801 550-1382.

Many of these young professionals are buying starter homes in suburban neighborhoods such as Cedar Hills, where there are lots of family-friendly ranch homes. These homes are usually under 2,000 square feet, so they're substantially cheaper than their larger counterparts nearby.

To find the top places for buying a starter home, we factored in these criteria**:

• Percentage of home buyers aged 35 and younger
• Percentage of typically more affordable homes under 2,000 square feet
• Median down payment (the lower, the better)
• Median mortgage borrower's FICO score (the lower, the better)
• Percentage of income of those aged 35 and younger going toward median monthly housing costs

So let's start out by taking a tour of the top spots for folks leaping into homeownership for the first time.

For a more information, there’s no substitute for the expertise of a Realtor® like Carriene Porter @ Precision Realty & Associates LLC.com, who has access to a vast database of information with recently listed and recent sold to help you home in. CALL Today 801-809-9866. 

#Mortgage #UtahRealEstate #Selling #Buying

What Is My Home Worth?

A Number Every Homeowner Should Know: Have you ever 

wondered "How much is my house worth?" If you're hoping to sell your home, knowing your property's value is essential for pricing it right to make buyers bite.

Or, maybe you don't want to sell your home right now, but are just curious whether your real estate investment has risen in value (which would merit some much-deserved back-patting).

In either case, having an accurate grasp of your home's estimated market value can come in handy. And there are a variety of ways to do that, many of which are free and easily within reach online.

Volume 90%

Carriene Porter@Realtor.com, gives you a easy starting point with a home valuation is to enter your address into an online home value estimator, which will, within seconds, present you with a free estimate of what your home is worth, based on data such as its square footage and recent home sales in the area.

Find out your home value estimates online

While this free valuation will help you get a general idea, remember, it's just a ballpark figure. For a more accurate estimate, there’s no substitute for the expertise of a Realtor® like Carriene Porter@Realtor.com, who has access to a vast database of information with recent sales to help you home in on that number.

#UtahRealEstate #Selling #Buying

Rates Drop to Lowest Levels in a Year

How to shop for a Mortgage: Since loans come with 

different interest rates, time frames, closing costs, and more, it behooves a prospective borrower to shop around, much like you'd compare different laptops before settling on the best one for you.

Working with a qualified (and patient) Loan and Real Estate adviser can help you sort out your options. This pro can help you determine which type of loan is best for your situation and walk you through what your payments would be for different types and terms of loans.

The loan adviser will also break down the various closing costs that come with each loan. By understanding what a mortgage is and all the different types available, you can make the choice that’s right for you and your budget.

National Averages Mortgages for the Week Ending Feb. 14:

Completing a Loan Pre-Qualification you'll be on your way to locking in your interest rate and giving assurance to prospective sellers that you mean business. Pre-qualification is easy and can be done via email or over the phone by speaking to George Andersen at 801 550-1382.

You can also Head over to Precision Realty & Associates a real estate professional and speak to Carriene Porter where you’re guaranteed to get the expertise and advice. If you prefer a more personal touch, CALL 801-809-9866 today.

#Mortgage #UtahRealEstate #Selling #Buying