BY WANDA KUBAT-NERDIN Real Estate Agent with PK Real Estate Utah, St. George, UT 84770 UT DRE# 6541633-SA00 What to do when an appraisal comes in low.   New construction is on the rise and builders are raising prices of homes mainly because of consumer demand.  While that can push home prices up, it can also create a false market that lacks sustainability. Appraisals are driven by solid data, not recent trends and short-term shifts in the market.   If an appraisal comes in low, a rebuttal can be requested but new information must be brought in from other reliable sources. A low report does not mean that the appraiser did not do a thorough job, it could be that the most recent comparable’s have yet to catch up with the current market.   There are options for home buyers: Cancel the contract Negotiate a lower sales price Both sides can meet in the middle Ask the lender for a second appraisal to be done Bring cash to closing to make up for deficit amount   When the demand for homes is far greater than the supply, it creates a huge competition for buyers. Builders may be less inclined to negotiate in today’s market, especially if there are many offers on a home or a lot of potential buyer interest in their product.   The value of a home is still based upon what someone is willing to pay and a savvy agent can offer help to weigh the options when an appraisal comes in low. This will allow the potential home buyer make an informed decision on which direction to take to reach the set goal of home ownership.   Happy sales...

Statistics Prove Staging Makes a Difference. A recent study showed that a staged home sells 78% faster and for up to 10% more compared to non-staged homes (Source:  February 2010 Real Estate Staging Association). How much are you willing to come down in price because your home isn’t selling?  Your investment in home staging will cost far less than your first price reduction, if you stage it before putting your home on the market. Staging can be as uncomplicated as a walk-through with a written list of suggestions or as extensive as de-cluttering, rearranging and redecorating. Each home is unique, so we will create a customized plan for you that promises dramatic results.  A Vacant home will always show better when furnished.  Empty spaces appear small and leave buyers wondering where their furniture will go.   They also see every blemish in the home and often wonder if the seller is desperate and will take a low ball offer.  Let us fix that problem for you.  Staging the home with our extensive line of beautiful furnishings allows the buyer to “feel at home” as soon as they enter the front door, bringing up the value of your home.      ...

REAL ESTATE HOME PRICES Buying or Selling a Home in 2015? Here’s What You Need to Know By Carla Fried      After a boom, a bust, and a bounce, housing finally gets back to “normal.” Housing should be a drama-free zone in 2015. “After the boom, the bust, and the recovery bounce, we are transitioning to a calmer market driven by fundamentals,” says Jed Kolko, chief economist at Trulia. Even though the econ­omy is growing and mortgage rates will remain low—the 30-year fixed isn’t likely to pass 5%—bubbly gains in housing are unlikely. Household income has barely budged since the housing market bottomed in late 2011, while home prices are already about 20% higher on average. Plus, with cautious lenders requiring hefty down payments and low debt/income ratios, it’s not as if buyers have the capacity to push prices sharply up. All that figured in, CoreLogic forecasts a 4.4% rise in the national median home price. “That’s healthy and sustainable,” says chief economist Mark Fleming. Here’s what to do if you’re thinking about buying or selling in 2015. Sellers, forget bidding wars. In most markets you still have leverage, but less than you did. In the summer of 2013 about 20% of homes were selling at a premium to original list; this fall, 11% are, the National Association of Realtors reported. The takeaway: “You have to price your house right,” says Redfin chief economist Nela Richardson. ­Review recent comps and list within 5% to allow for counteroffers. Buyers, save interest. While the 30-year fixed is not expected to hit 5% until later in the year, a winter move will likely nab the lowest rates. Meanwhile, the 15-year mortgage, now at 3.3%, should stay under 4% for most of 2015—and can be a good call if you’re looking to pay off the house before retirement. Owners, renovate. Especially if you have a low-rate mortgage, “it can be a lot cheaper to remodel to age in place than move,” says Kermit Baker, director of the Remodeling Futures Program at Harvard’s Joint Center for Housing Studies. Rates on home-equity loans and lines of credit are still “in shouting distance of record lows,” says Keith Gum­binger of mortgage data service HSH.com. While loans are pricier than HELOCs—possibly 6.5% vs. 5.5% by year’s end—the fixed-rate HEL can be a safer bet in a rising rate climate.  ...

Why 2015 Might Be the Year You Finally Sell Your House      Martin Barraud/Getty Images Home price gains are slowing, credit is thawing, and more first-time buyers may be hitting the real estate market in 2015. Better balance in the housing sector is “in” next year, as far as trends go. That’s likely to put buyers and sellers on a more even footing. Some prospective sellers sound especially bullish on housing. In a recent Trulia survey, the biggest chunk of consumers, 36%, said they expect next year to be much or a little better than 2014 for selling a home. To be sure, like politics, all real estate is local. Some sellers have stayed on the sidelines in recent years, investing in improvements amid a dearth of buyers. For others, low inventory and rising home prices meant a bidding-war bonanza. The landscape next year’s sellers are likely to encounter depends a lot on where they live. But here are a few broad trends to bear in mind. Bringing Back Buyers Mortgage credit is becoming more available as lenders scale back requirements. The average FICO score on a conventional purchase loan in October was 754, according to Ellie Mae. That’s a five-point drop from last year’s average. (You can check your credit scores for free on Credit.com to see where you stand.) Tough credit and underwriting requirements have been a huge hurdle for many would-be buyers. So is liquidity, but there’s also good news on that front: Fannie Mae and Freddie Mac recently rolled out a mortgage option that allows for a 3% down payment. These two government-sponsored behemoths purchase about two-thirds of all new mortgages. If conventional lenders get on board, the new low-down-payment option could pull more first-time buyers into the marketplace. During a time of tight credit and stagnant wages, this crucial group of buyers has been all but absent from the housing picture. “If access to credit improves, we could see substantially larger numbers of young buyers in the market,” Jonathan Smoke, chief economist for Realtor.com, noted in his 2015 housing forecast. “However, given a high dependency on financial qualifications, this activity will be skewed to geographic areas with higher affordability, such as the Midwest and South.” Affordability May Be a Concern Lower credit and down-payment thresholds are causes for optimism. But rising home values and mortgage rates will impact affordability, especially in costlier housing markets. Realtor.com’s Smoke expects affordability to decline 5-10% next year. Job and wage growth will play a big role in shaping homebuying activity. Gains in both may offset the price and rate increases likely on the horizon. Sellers in more affordable housing markets, especially those with improving economies, are likely to see more buyers. Home Prices & Inventory Home price...