Salt Lake Realtor April 2015 Issue by Mills Publishing Inc.

Salt Lake

REALTOR

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April 2015

Millennials Were 2014’s Top Home Buyers p. 14

Response Time to Clients Is Crucial p. 23

11 Tax Deductions for Homeowners p. 18

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PROFESSIONAL GROWTH THROUGH FORWARD THINKING

ANNOUNCING THE OPENING OF OUR NEW SALT LAKE CITY OFFICE

Located at the base of Big Cottonwood Canyon in the Old Mill area, our new state-of-the-art office provides an open and collaborative work space. “This remarkable location gives our agents access to all of Salt Lake Valley and is truly the premier real estate office in the valley,” says Steve Roney, owner and CEO of Berkshire Hathaway HomeServices Utah Properties.

Old Mill Office › Just off I-215 6340 South 3000 East, Ste. 600 Cottonwood Heights, UT 84121

© 2015 BHH Affiliates, LLC. An independently owned and operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc. Equal Housing Opportunity.

Good to know.™ 801 990 0400 | BHHSUtah.com BARRON’S 2014 “Top 100 Most Respected Companies”.

Five mistakes that can torpedo your finances. p. 12

Table of Contents Features 10 Realtor® Ski Day at Snowbird 12 5 Mistakes That Can Torpedo Your Finances

Stephen F. Lovell

14 Stay in Mom’s Basement? Nope! Millennials Were 2014’s Top Home Buyers, Says NAR

Chrystal Caruthers

18 11 Tax Deductions for Homeowners

John Gregory

23 One Indispensable Habit to Help Standout Lee Davenport

Columns 7 Perspective Matters Dave Robison

– President’s Message

Departments 8 Happenings 8 In the News 26 Housing Watch 28 Realtor® Connections 28 On the Move

On the Cover: Photo: © iStockphoto.com/Yuri Photo left: © fotoatelie / Dollar Photo Club

This Magazine is Self-Supporting Salt Lake Realtor® Magazine is self-supporting. The advertisers in this magazine pay for all production and distribution costs. Help support this magazine by advertising. For advertising rates, please contact Mills Publishing at 801.467.9419. The paper used in Salt Lake Realtor® Magazine comes from trees in managed timberlands. These trees are planted and grown specifically to make paper and do not come from parks or wilderness areas. In addition, a portion of this magazine is printed from recycled paper.

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April 2015 volume 75 number 4 The Salt Lake REALTOR® (ISSN 2153 2141) is published monthly by Mills Publishing, located at 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106. Periodicals Postage Paid at Salt Lake City, UT. POSTMASTER: Send address changes to: The Salt Lake REALTOR,® 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106-4618.

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President Dave Robison goBE Realty

Directors Managing Editor Dave AndertonM. Brock Andersen Berkshire Hathaway

Copy Editor

Jared Booth Georgia Cuthbert Coldwell Banker First Vice President Cheryl Acker Communications Committee Tom Colemere Realtypath LLC (Success)Lori Lee – Chairwoman Colemere Realty Annie Hedberg – Vice Chairwoman Kim Farber Equity Real Estate Second Vice President Publisher Adam Kirkham Mills Publishing, Inc.Kevin Larsen Kirkham Real Estate Coldwell Banker Residential www.millspub.com Mike Morgan President Sales Staff Keller Williams Treasurer Dan Miller Paula Bell Lisa Jungemann Steve Perry BillLLCLines Windermere Real Estate Realtypath (Community Branch) Office Administrator Karen Malan Cynthia Bell Snow Troy Peterson PaulEquity Nicholas Real Estate Past President Art Director Don Nothdorft Angie Domichel Nelden Michael Rowe Jackie Medina Coldwell Banker Residential BerkshireAssistant Hathaway Administrative Magazine Designer ChloéRandy Herrman Smith Real Estate CEO OfficeEquity Assistant Curtis Bullock Graphic Design Matthew Jessica SnowUlrich Ulrich Realtors® Ken Magleby Patrick Witmer Advertisinginformation informationmay maybe beobtained obtainedby bycalling calling Advertising (801)467-9419 467-9419ororby byvisiting visitingwww.millspub.com www.millspub.com (801)

Managing Editor Directors President DeAnna Dipo Dave Anderton Cheryl Acker Distinctive Properties

At Home Realty

First Vice President Publisher Jillinda Bowers Purdential Utah Donna PozzuoliMills Publishing, Inc. Daniel Christensen Prudential Utah www.millspub.com Coldwell Banker

Second Vice President President Sarah M. Colbert Dave Frederickson Dan Miller Summit Sotheby’s Keller Williams Art Director Tom Colemere Treasurer Jackie Medina Colemere Realty Charlotte Thomas Kim Farber-Lynch OfficeEquity Administrator Graphic Design Keller Williams Real Estate Cynthia Bell Snow Leslie Hanna Lisa Hyte PastKen President Magleby RE/MAX Canyons Office Assistant Bill Heiner Patrick Witmer JessicaJacobson Snow Shirley RE/MAX Associates

Sales Staff Chief Executive Officer Paula Bell Bryan Kohler Karen Malan Paul Nicholas

Windermere

Administrative Assistant Fred Law Kyrsten Holland Law Real Estate Angie Domichel-Nelden Coldwell Banker

Troy Peterson Equity Real Estate

Salt Lake Board: (801) 542-8840 Salt Lakee-mail: dave@saltlakeboard.com Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com Web Site: www.slrealtors.com The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy ® for the equal housing opportunity the nation. We The Saltachievement Lake Board ofofREALTORS is pledged to thethroughout letter and spirit of U.S. policy encourage and support the affirmative advertising throughout and marketing for the achievement of equal housing opportunity the program nation. Wein which thereand are support no barriers obtaining advertising housing because of race, color, religion, encourage thetoaffirmative and marketing program in sex, handicap, familial or national origin. which status, there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions ® persons quoted in articles are their own and do not necessarily expressed by writers is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions The Salt Lake REALTORand reflect positions of theand Saltpersons Lake Board of REALTORS expressed by writers quoted in articles®. are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®. Permission will be granted in most cases, upon written request, to reprint or reproduce articles well and photographs this issue, provided proper is given to The Salt Lake REALTOR®, as Permission will beingranted in most cases, uponcredit written request, to reprint or reproduce articles ® as any writers and photographers whose names appear withtothe andREALTOR photographs. , as well andtophotographs in this issue, provided proper credit is given Thearticles Salt Lake While unsolicited original manuscripts and photographs related to the real estate profession as to any writers and photographers whose names appear with the articles and photographs. are welcome, no payment is made for their in the publication. While unsolicited original manuscripts and use photographs related to the real estate profession are welcome, no payment is made for their use in the publication. Views and opinions expressed in the editorial and advertising content of the The Salt Lake ® ® not necessarily by theand Saltadvertising Lake Board content of REALTORS REALTOR Views andare opinions expressedendorsed in the editorial of the. However, The Salt Lake advertisers do not make publication of this magazine so consideration products and necessarily endorsed by the Saltpossible, Lake Board of REALTORS®.ofHowever, REALTOR® are services listed greatly appreciated. advertisers doismake publication of this magazine possible, so consideration of products and services listed is greatly appreciated.

Perspective Matters L

ast month I had the pleasure of meeting a remarkable man and hearing his story. John O’Leary. When he was a young kid he was burned over 99 percent of his body. He wasn’t supposed to live but did. He talked about how he was able to overcome the 100 percent chance that he would die. It was because of other people he lived. He lived because people came together and were able to help him pull through it. One of his inspirations was his father. His father was dying of a disease and could barely speak or move. He told his son to come listen to him and in a soft voice said, “I’m grateful this isn’t more of a serious disease.” It’s amazing the perspective some people have. John shared an interesting study and statistic regarding a group of people. They broke up the group into the 25 percent most negative people in the group and the 25 percent most positive people in the group. Of the most negative, only 31 percent were alive at age 85. Of the most positive, 87 percent were alive at the age of 85. It is interesting to see what perspective can do for your life. A couple days after this experience I had a thought about Board and MLS fees. I was thinking what if we didn’t have the Board and the MLS? How would I sell my listings? I thought back on many different ways I have spent money on advertising. One year I spent $36,000 in the newspaper. Did it sell any of my listings? Nope. Another year I spent $36,000 on TV commercials. Did it sell any of my listings? Nope. Another year I spent $60,000 on postcards. Did it sell any of my listings? Nope. It’s truly amazing that for just $1,000 a year....we have a system that can sell listings. It’s just crazy to me. The MLS is an incredible bargain. We all have issues. For example, waiting in line the first morning of the keybox exchange (sorry about that). I’m extremely grateful that all of you and all those who went before us have made this such an extraordinary system and very cost effective. The Board and the MLS are really the best bargains in our business.

Dave Robison 2015 President

OFFICIAL PUBLICATION OF THE OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ®® SALT LAKE BOARD OF REALTORS REALTOR is a registered mark which identifies a professional in real estate who subscribes ®

® . toREALTOR a strict®Code of Ethics asmark a member of the NATIONAL ASSOCIATION REALTORS is a registered which identifies a professional in realOFestate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®.

October 2005

April 2015 | Salt Lake Realtor ® | 7

Happenings

In the News Rental Costs Rise; Mortgage Costs Fall

Keybox Exchange Completed Members of the Salt Lake Board of Realtors® in March exchanged their old lockboxes for the new Supra iBox. Nearly 20,000 new boxes were distributed. The boxes communicate through the eKEY app via Bluetooth technology on smart phones and tablets and continue to work with the ActiveKEY. Members may still turn in their ActiveKEY through April 30 at the Realtor® Campus in Sandy for the eKey app and activiation set up. A $3 monthly charge will apply to ActiveKey users beginning May 1.

Rental costs in Salt Lake County have increased 7 percent over a five-year period from 2009 to 2013, while the cost of a typical mortgage payment during the same period fell 5 percent, according to a Salt Lake Board of Realtors® analysis of American Community Survey data. The median monthly housing costs for renter-occupied housing units in Salt Lake County reached $942 in 2013 (latest data available), up 7 percent from a median monthly rent of $883 in 2009. At the same time, the typical mortgage payment in Salt Lake County fell to a median $1,446 per month, down 5 percent from $1,515 in 2009. “The drop in mortgage payments was a direct result of falling interest rates,” said Dave Robison, president of the Salt Lake Board of Realtors® and principal broker of South Jordanbased goBE Realty. “In 2009, the average mortgage interest rate was above 5 percent. By 2013, interest rates had fallen to below 4 percent.” Robison added that the gap between housing costs and household income is widening as working families struggle to pay rising rents. The situation could worsen unless new home construction meaningfully rises. Nationally, in the past five years a typical rent rose 15 percent while the income of renters grew by only 11 percent, according to a report by the National Association of Realtors®.

Utah Home Sales Rise 14% in February Pictured: Adam Hyp (United Title Services), Bob Goodson (United Title Services), Mike Carmody (Keller Williams South Valley), and Brad McLeese (Home Guard Inspections).

March Madness Viewing Party The Salt Lake Board of Realtors® hosted a March Madness viewing party at the Realtor® Campus March 19-20. Free lunches and prizes were given away, including an Apple iPad. Proceeds from the drawings benefitted the Realtors® Political Action Committee (RPAC).

8 | Salt Lake Realtor ® | April 2015

Homes sold by Realtors® in Utah climbed to 2,896 sales in February, a 14 percent increase compared to sales in February 2014. Year-to-date, home sales are up 9 percent across the state. The median sales price of homes sold in Utah in February rose to $215,000, up 5 percent compared to the median priced home a year ago.

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Realtor® Ski Day at Snowbird

he Salt Lake Board of Realtors® on March 4 hosted Realtor® Ski Day at Snowbird. The annual event was organized and presented by the Affiliates Advisory Board (pictured on opposite page, center: Lynn Long (left), Terrie Lund, Diane Mouser, Patti DeNunzio, Laura Palmer, Barbara Breen and Kim Carroll, sponsor). The event drew nearly 100 members. Participants enjoyed a full day of skiing followed by a lunch and a host of opportunity drawing prizes. Above: Rich Varga (left), Brad Toland, Billy Bohmholdt and Leo Perez show off on the 11,000-foot summit of Hidden Peak. Left: D.R. Horton representatives included Shari Martin (left), Sally Paskvan, Heather Heine, Tiffany Hull and Trish Sever. Opposite Page (top): Barbara Breen, Dawn Stevens, Cindee Stone and RaeJeanne McCutcheon. Bottom: Bob Goodson shows off the dozens of opportunity drawing tickets he purchased. Thank you to our sponsors: First American Property & Casualty (Kim Carroll); Coldwell Banker (Beth McCullum); Daybreak, Garbett Homes, Guaranteed Rate, Pillar to Post and the Women’s Council of Realtors® (Koleen Faddis).

10 | Salt Lake Realtor ® | April 2015

Photos: Dave Anderton

April 2015 | Salt Lake Realtor 速 | 11

Photo: © Iculig / Dollar Photo Club

5 Mistakes That Can Torpedo Your Finances By Stephen F. Lovell

Financial Professional Suggests Improving Your Money Mastery During Financial Literacy Month

he investment world comes with such a maze of options and pitfalls that it’s little wonder people routinely become entangled in monumental and costly mistakes. Tax implications lurk behind nearly every move. Investment risks vary from negligible to moderate to great. And it’s not just a matter of making the right financial decisions. It’s making them at the right time, says Stephen F. Lovell, a financial professional and president of Lovell Wealth Legacy (www.lovellwealthlegacy.com). “Doing the right thing at the wrong time makes it the wrong thing to do,” Lovell says. Don’t despair. April is National Financial Literacy Month, a good time to take stock of

12 | Salt Lake Realtor ® | April 2015

where you are money wise and explore how you can improve. Lovell says that by asking the right questions or taking the right precautions, you can sidestep these common financial mistakes: • Becoming infatuated with the latest hot investment. It’s easy to be seduced by whatever is creating the greatest buzz. After all, you don’t want to miss out while everyone else is reaping rewards. Resist the temptation, Lovell says. Momentary sizzle doesn’t guarantee long-term success. “Hot investments are like ice cubes,” he says. “They’re solid when you get them, but they soon liquefy and when you liquidate, your gains trickle away.” • Neglecting to consider all the options. Savvy investors use different kinds of investments to satisfy different financial needs, Lovell says. Don’t neglect the full array of available investments. “Relying only on stocks, bonds and cash puts you at a disadvantage,” he says.

• Failing to account for investment costs and tax ramifications. Investing isn’t free. Usually, there is some sort of fee attached and those fees can gnaw away at your returns. Taxes can, too. Before long, what looked to be a nice return can devolve into a minimal, breakeven or losing proposition. “Don’t diminish the importance of investment costs because they diminish your wealth,” Lovell says. “You need to take time to learn about the costs that are applied to each type of investment.” • Spending all that comes in. Too many people let their income level set the ceiling on how much they spend each month, Lovell says. Such spendthrift habits leave people living paycheck to paycheck and when the inevitable emergency arises – a car repair, a medical bill – the bank account is short and they need to take on debt just to survive until the next payday. Your budget, not your income, should dictate spending limits, Lovell says. If you don’t have a monthly budget – and many people don’t – now is a good time to create one, he says. Just make sure the amount you budget to spend

is less than your net income, and then stick to your budget. Otherwise, you’ll soon creep into the realm of deficit spending, a place best avoided. • Trying to go it alone. Most people, whether they want to admit it or not, need investment advice, Lovell says. Without reliable guidance, they can end up lost in the financial jungle and succumb to numerous hazards that await the unwary. “You need someone who understands all the upsides and all the pitfalls,” he says. But not all investment advice is equal, either. “The person you choose should be both skilled and trustworthy,” Lovell says, “and should always put your interests first.” Stephen F. Lovell is a nationally recognized financial professional. Since 1990, he has been gathering various licenses — in insurance, securities, real estate, commodities and as a registered principle — to offer his clients a most comprehensive perspective on their wealth. He is president of Lovell Wealth Legacy (www. lovellwealthlegacy.com), and a branch manager at LPL Financial.

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April 2015 | Salt Lake Realtor ® | 13

Photo: © AntonioDiaz / Dollar Photo Club

Stay in Mom’s Basement? Nope! Millennials Were 2014’s Top Home Buyers, Says NAR The median age of a millennial home buyer was 29, with a median income of $76,900. By Chrystal Caruthers

f you’ve ever read anything about millennials, you’d be forgiven for thinking they’re shiftless, underemployed ne’er-do-wells with no intention of ever moving out of their parents’ basements. But the truth is millennials are home buyers. In

14 | Salt Lake Realtor ® | April 2015

fact, they made up the largest percentage of home buyers in 2014. Millennials—that is, adults 34 and younger— accounted for 32 percent of all home purchases last year, according to the 2015 National Association of Realtors® Home Buyer and Seller Generational Trends study. In fact, the median age of a millennial home buyer was 29, with a median income of $76,900. What’s more, millennials were most likely to buy with their unmarried partner. What’s driving all the home buying? Life. Many young people are employed and having babies. Therefore, they need space. Also, with rising rent, buying a home and locking in a fixed payment for the next 30 years makes good financial sense, to those who can afford to buy. According to the report, millennials, like the majority of buyers, purchased a single-family home in the suburbs. They are nesting. Even after witnessing the recession, seeing their parents lose their homes, and suffering the indignity of low employment rates, millennials are coming out on top. Those who were employed saved their money and were able to use Federal Housing Administration low-down-payment loans to gain a foothold. Still, a full quarter of young buyers depended on their parents for down payment assistance, according to the report, compared to 15 percent for Generation X, those aged 35 to 49. Millennials entering the housing market is a good thing for both the economy and neighborhood stability, but the share of firsttime buyers is still at its lowest level since 1987, according to NAR. “The return of first-time buyers to normal levels will eventually take place in upcoming years as those living with their parents are likely to form households of their own, first as renters and then eventually as homeowners,” said Lawrence Yun, NAR’s chief economist. For those who can’t qualify on their own, a new trend has emerged—multigenerational housing. According to the report, 13 percent of all home purchases were by multigenerational buyers: siblings purchasing together, parents purchasing with children. The impetus here is saving money. Many younger baby boomers saw their adult children move back home (23 percent of those surveyed). To make the situation bearable, purchasing a home that could accommodate this living situation formed a new post-housing-crisis demographic. To conduct the survey, NAR mailed a 127-question survey to randomly chosen home buyers across the country. A total of 6,572 responses were received. The home buyers had to have purchased a home between July 2013 and June 2014.

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MEET THE LEADING SALES CONSULTANTS AT UTAH’S NUMBER ONE HOMEBUILDER. Larry Mitchell, honored recently as Ivory’s leading Sales Consultant, has closed over $90,000,000 in the past 11 years he’s been with Ivory Homes. A significant factor in his success is his ability to truly listen to homebuyers and offer professional, experienced advice regarding what options best meet their needs. Larry also attributes his remarkable success to the entire Ivory team and their commitment to excellence in all areas. In Salt Lake County contact Larry Mitchell at 801-918-7240 or larrym@ivoryhomes.com

Verlyn Pullman, is Ivory’s leading Sales Consultant in Davis and Weber Counties. Verlyn has been with Ivory for 15 years and lives in an Ivory home and community. She credits her success to unparalleled customer service, but says, “It’s easy to sell a product you believe in from a company that stands behind everything they build. Ivory has amazing quality and integrity for long term value. I’ve sold multiple Ivory homes to many families — not only second and third homes to parents but also to their children.” In Davis and Weber Counties contact Verlyn Pullman at 801-721-9299 or verlynp@ivoryhomes.com

Tim Sweat, Ivory’s leading Sales Consultant in Utah County, came to Ivory Homes over 3 years ago. Tim attributes his success to Ivory offering the best product and customer support system that assures each buyer will be taken care of properly. His laid-back personality, which does help in raising triplets, puts his customers at ease as he focuses on their individual needs. Tim finds great satisfaction in helping them work toward their dream of homeownership or ultimately building their final dream home. In Utah County contact Tim Sweat at 801-494-3552 or tims@ivoryhomes.com

“It takes a team effort to produce such remarkable results...and there is not a better team out there than Ivory Homes.” 14000

For over two decades, Ivory Homes has been Utah’s number one homebuilder*. A record like that requires a constant focus on improvement. Ivory continually finds ways to maintain high levels of quality and design while simplifying the home buying process.

12,609

12000 10000 8000

Ivory also leads the way in location and design with 65 beautiful communities across the Wasatch Front and over 100 floor plans to choose from. In addition, they’ve achieved a customer satisfaction rating of over 90% for the past 15 years.

6000 4000 2000 0

Number of homes built by Ivory Homes vs other homebuilders * Based on number of homes built from 1990-2014. Source: Wasatch Front Construction Monitor

Photo: © Aliaksandr Dobysh / Dollar Photo Club

11 Tax Deductions for Homeowners These tax breaks will alleviate the financial burden of many taxpayers, especially those who are paying a mortgage. By John Gregory | 1040Return.com

or most people, owning a home is like moving a step up the American-dream ladder. It is indeed wise of you to buy a home instead of continuing to pay hefty rent. Your home is an excellent investment in the long run because it helps you not only build up an equity but also garner substantial tax breaks. There are certain deductions that can be claimed by homeowners only. If you have taken out a homeowner’s loan, consider these

18 | Salt Lake Realtor ® | April 2015

deductions as Uncle Sam’s gift to you. These tax breaks will surely alleviate the financial burden of many taxpayers, especially those who are paying a mortgage. The most significant tax breaks that only homeowners can claim: 1. Points on Home Mortgage and Refinancing. If you have bought a home in 2014 by availing mortgage, then apart from the mortgage interest,

you can also write off the points on your tax return. Simply put, ‘points’ are the fees you pay to the lender for getting the loan. One point is equal to one percent of the principal loan amount. The fee varies from one point to three points depending on the trend prevalent in the area. Full deduction can be claimed for the points, provided they pertain to the purchase of the home. 2. Interest on Home Improvement Loan. Interest on home improvement loan is fully deductible if the improvement is made in the main home and it enhances its sale value. 3. Energy Efficiency Tax Credit. This is a tax credit the IRS offers you for making your home energy-efficient by installing equipment that will conserve energy while heating or cooling your home. Qualified storm doors, energy efficient windows, insulation, air-conditioning and heating system, etc. are the things that can help save energy and earn you tax credits at the same time. The lifetime limit of the home energy credit is $500, out of which only $200 can be used for the windows. This credit is set to expire on Dec. 31, 2016. 4. Renewable Energy Tax Credit. The Renewable Energy Efficiency Property Credit refers to the tax credit that you get on installing the equipment that uses renewable sources of energy, such as the sun, wind, and geothermal energy. You are eligible to gain this tax credit to the extent of 30 percent of the cost of the following equipment, installation included: Qualified fuel cell property, qualified solar electric systems, qualified solar water heaters, qualified small wind energy property, qualified geothermal heat pumps. The dollar limit on the amount of credit for fuel cell property is $500 per halfkilowatt of power capacity of the property. For example, the fuel cell has a capacity of 10kW. It will qualify for $10,000 in tax credit. Besides, the amounts of credit for solar, wind and geothermal equipment do not have any upper limit. The credit is available for equipment placed in service through Dec. 31, 2016. 5. Property Tax. The taxes paid to acquire the property are fully deductible from the taxable income and the same is reflected in the Form 1040. Transfer tax arising from the transfer of the property to the new owner is a very common item.

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6. Redeemable Ground Rents. The redeemable grounds rents can be deducted if you have been paying monthly or annual rentals. 7. Interest Accrued on a Reverse Mortgage. The reverse mortgage is considered as a loan advance and not an income. Hence, the amount you receive is not taxable. Any interest, including the original issue discount, accrued on a reverse mortgage is not deductible until the loan is paid off. 8. Premium Mortgage Insurance. You may be eligible to claim the deduction for the Premium Mortgage Insurance (PMI) on your tax return. However, this deduction is set to expire with the tax year 2014. 9. Records of your Home Expenses and Improvements. Taxpayers should certainly keep a track of the real estate taxes that they pay for their property. They should maintain good records by

April 2015 | Salt Lake Realtor ® | 19

Image licensed by Ingram Image

preserving the copy of the taxes paid. The bank which financed your property will send you the Form 1098. It is a statement showing the amount of interest that you paid on your mortgage. The 1098 has to be mailed by Jan. 31 of the following year. If you make improvements to your property, you cannot write off the cost of home improvement. However, when you wish to sell off your home, the cost is supposed to be added to the purchase price of your property. The aim is to diminish the gain when you sell your home. Don’t forget to retain the receipts every time you make an improvement to your property. It would be very easy to maintain and retrieve the receipts if you store them in a dedicated file folder. 10. Tax Breaks that may be expiring, plus tax breaks that may be extended. Don’t expect the introduction of any new tax breaks next year. However, the Home Energy Credit and the Premium Mortgage Insurance expires with the tax year 2014 unless Congress extends those credits. However, there is substantial pressure from the ‘Green Energy Companies’ to extend the energy credits applicable to geothermal heat pump properties, small wind properties, solar and combined heat and power properties, which is set to expire on Dec. 31, 2016. 11. Tax Tips on selling and buying a home. If and when you sell off your property, do retain a copy of the settlement agreement of when you had

20 | Salt Lake Realtor ® | April 2015

“Buying

a home can be a stressful ordeal. However, if you properly deal with the taxes and take advantage of the deductions available, it can relieve some of your stress and leave you to enjoy the experience hassle-free.”

bought the home. If you do not buy a new home and decide to keep the cash, any gain that you might have made from the sale would be subject to tax, unless it does not exceed $250,000 for an individual and $500,000 for a married couple filing jointly. First-time home buyers would be glad to know that they can withdraw $10,000 from their IRA account to buy a home, without being charged any penalties. Buying a home can be a stressful ordeal. However, if you properly deal with the taxes and take advantage of the deductions available, it can relieve some of your stress and leave you to enjoy the experience hassle-free. Since 1998, 1040Return.com has provided a range of tax-related services to assist small businesses and those who are self employed. They offer tax preparation, audit protection insurance, a video library, expense forms, and a variety of other tools and resources. The company is owned by John Gregory, a tax practitioner and Enrolled Agent with the Internal Revenue Service. For more information on 1040Return.com visit the site at:www.1040Return.com.

Photo: © markrubens / Dollar Photo Club

One Indispensable Habit to Help Standout When you are a well-trained agent who exudes professionalism and makes responsive communication your point of differentiation, you win! By Lee Davenport

s a young real estate pro, you may be stumped on how you can stand out in a sea of agents, particularly when some of those agents have more than 30 years of sales experience. Unfortunately, as a broker and trainer, I have witnessed younger agents, whether new to real estate or not, lambasted for their lack of experience in both life and sales. In those sad instances, lack of experience becomes “larger than life,” which myopically and erroneously become the only skill trait that matters. I marvel and cringe in those situations, but I am quick to interject with a vital characteristic that can trump experience any day of the week – a characteristic that can help a rookie agent land a listing and make a sale that the veteran missed out on. Before I come right out and say what this imperative sales trait is, check out the following statistics and see if you can guess what it is: Real estate is the second most searched topic on social media but ranks lower than the government in response rates, according to Sprout

Social’s Consumer Engagement Index. According to Real Trends 2013 Online Performance Study, 89 percent of consumers say response time was very important when choosing their agent. The Real Trends study also says 45 percent of consumers expect an initial response from an online inquiry within 15 minutes. And 56 percent of consumers expect a response from their agent within 30 minutes, according the Real Trends study. Yet according to the 2014 National Association of Realtors® report, The Intelligent Internet Lead, the average agent response time was about 15 hours (is anyone else gasping for air?). I am sure you guessed it – the quintessential skill to possess that can actually make experience pale in comparison is responsiveness. When you are a well-trained agent (whether young, middle aged, or in your golden years) who exudes professionalism and makes responsive communication your point of differentiation, you win!

April 2015 | Salt Lake Realtor ® | 23

Here are four reasons why responsiveness should become your new normal, if it isn’t already: 1. You expect it. The hallmarks of professionalism are doing what you say you will do and timely follow-up. You expect (and probably even demand) this when dealing both in and outside of the real estate arena, so let’s practice what we preach. Make the very crux of your professionalism be responsiveness. How many times have you chosen a product or service provider because he was “Johnny-on-the-Spot”? Perhaps your favorite lender does not have 30 years of experience but she follows up promptly. So for you, and probably many others, responsiveness trumps experience. Or, on the personal side, maybe your dog sitter never ignores your oddball requests, even if he cannot accommodate you each and every time. Responsiveness can go a long way in clinching new clients and making sure that past clients choose and refer you again and again. 2. It gives a boost to your reviews. Time and time again, positive online reviews give an agent a powerful online footprint and virtual legacy that is hard to erase. Many of us buy products or choose services in our personal lives now because of the sentiments expressed in online reviews. The real estate industry is no different. But if you have ever had a hard time getting current and past clients to post a glowing review of you, maybe, just maybe, they were not impressed with your level of professionalism and they are taking the high road of not saying anything if they cannot say anything nice. This, of course, is not the only reason our clients elect to not be our online “raving fans” – sometimes they are too busy or maybe there were other glitches in their transaction that left them sour. But when all else goes well, check and see if your responsiveness was not up to par and work on it going forward. 3. Other agents are hungry. It is no big deal if you connect with an inquiring real estate prospect in a few hours or the next business day, right? Well, if you are absolutely the only agent and online portal system servicing your entire area, then you may have that luxury. But more likely than not, you are not the only agent left on Earth or the only way for information about a real estate property to be obtained. Translation = you have competition. Hopefully, you have been on the receiving end and not the losing side of being the first to connect with a prospective buyer or seller that delivered the critical three Cs (Client, Closing, and Commission). But whatever your historical stance has been, choose now to be on #TeamResponsive

24 | Salt Lake Realtor ® | April 2015

and respond to ALL inquiries within the desired 15-minute window to increase your chances of converting ominous leads to actual clients that close and generate commissions for you. 4. Automation is easier and less expensive than back in the day. It is 2015, so there are no excuses to not respond to EVERY inquiry within minutes. Why? Because of automation! Automation is painless, fairly inexpensive, and, frankly, half the battle. You still have to build rapport but this makes it easier. IT not only puts you in the running to capture a new client, but may very well push you to the front of the pack. And let’s address the elephant in the room: As much as agents do not want certain web portals taking their leads, those portals have automated their responses. We are in a responsive, drive-thru age so many folks want what they want, when they want it. Technology allows us to accommodate this without losing our sanity and neglecting our families so let’s use it. Texting is no longer taboo in the home buying and selling process for many. If you have not taken the time to do it yet, I encourage you, as a bare minimum, to make sure you have canned text messages (for unknown numbers as well as those that may be current clients, vendors, friends, etc.) that can be sent to every caller. Have you tried IFTTT yet? This handy app can help you automate responses from your phone. With emails and your various online sites, go back to turning on your autoresponder or use services like ManyContacts or MailChimp to send fancier looking emails to specific contacts from specific places. If you have it in your budget, hire a receptionist or the more cost-effective option of a virtual receptionist. Services like Odesk and VoicePad Phone offer affordable and professional options. There really is no limit to the tools you can use for automation, so I encourage you to explore them online today and also share in the comment section below the ones that work miracles for you. By the way, follow me on Google+ and Facebook for more tips and techniques. Also, if you are a real estate agent or manage agents, learn how to GROW or RE|VAMP your business with us today. Here’s to your success! Lee Davenport is a real estate broker, coach, and trainer with Agents Around Atlanta Plus, which offers customized, relevant, and affordable one-on-one coaching, webinars, and in-office trainings for brokers and sales agents throughout the U.S. Connect with Lee at www.AgentsAroundAtlanta.com. Reprinted from Realtor® Magazine Online, March 2015, with permission of the National Association of Realtors®. Copyright March 2015. All rights reserved.

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Housing Watch February Home Sales Rise 19%; Prices Up 1%

ome sales in Salt Lake County in February increased sharply year-over-year as unusually warm weather increased interest in home buying. In addition, many buyers rushed to beat an anticipated rise in mortgage interest rates, according to the Salt Lake Board of Realtors®.

Salt Lake home sales (all housing types) increased 19 percent to 1,043 sales in February compared to the same month last year. The strong sales activity in February was in contrast to January’s sales, which marked the slowest sales activity for a January month in three years. Nationally, home sales were up 4.7 percent higher than a year ago and above year-over-year totals for the fifth consecutive month, according to the National Association of Realtors®. Lawrence Yun, NAR chief economist, said although February sales showed modest improvement, there’s been some stagnation in the market in recent months. “Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels,” he said. “Stronger price growth is a boon for homeowners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before rates rise.”

Salt Lake County Sales (all housing types) Year-Over-Year (Up 19%)

880 26 | Salt Lake Realtor ® | April 2015

1,043

2 - C OL OR

The median home price in February in the Salt Lake area increased to $229,240, a 1 percent rise compared to a median price of $226,000 in February 2014. There were 1,429 homes under contract in February in Salt Lake County, a 37 percent jump compared to 1,045 under contracts a year ago. February’s under contracts followed a similar double-digit rise in under contracts in January (up 28 percent). In Davis County, home sales in February rose to nearly 300 sales, an increase of 13 percent compared to 263 sales in February 2014. The median home price in Davis County in February increased to $220,500, up 7 percent compared to the median price in February 2014. Nationwide, the median existing-home price for all housing types in February was $202,600, which is 7.5 percent above February 2014. This marks the 36th consecutive month of year-over-year price gains and the largest since last February (8.8 percent). Across the country, all-cash sales were 26 percent of transactions in February, down from 27 percent in January and down considerably from a year ago (35 percent). Individual investors, who account for many cash sales, purchased 14 percent of homes in February, down from 17 percent last month and 21 percent in February 2014. Sixty-seven percent of investors paid cash in February.

Salt Lake County Median Price (all housing types) Year-Over-Year (Up 1%)

$226,000

$229,140

2 - C OL OR

Salt Lake County Days on Market (all housing types) Year-Over-Year (Down 15%)

2 52

Davis County

Median Price (all housing types) Year-Over-Year (Up 7%) $220,500

1,429

Pending Sales (Up 37%)

1,045

Sales $

Salt Lake County

Sales

Davis County Sales (all housing types) Year-Over-Year (Up 13%)

296

263

$206,100 April 2015 | Salt Lake Realtor 速 | 27

REALTOR® Connections Q&A: Justin Allen Justin Allen is the Government Affairs Director for the Salt Lake Board of Realtors®. When is the next Commercial Town Hall? The next Commercial Town Hall will be held at the Realtor® Campus on May 27 at noon. All members are invited to attend and the event is free of charge to members. You can register at slrealtors.com. Who are the speakers? A panel of mayors will be joining us including Salt Lake County Mayor Ben McAdams, Sandy Mayor Tom Dolan, Draper Mayor Troy Walker, Holladay Mayor Rob Dahle and Cottonwood Heights Mayor Kelvyn Cullimore. What is the topic of discussion? Mountain Accord will be subject of discussion. According to it’s website, Mountain Accord is “a blueprint for the future that preserves the legacy of the Wasatch Mountains…This Blueprint’s goal is to meet Mountain Accord’s purposes, which include responsible stewardship of natural resources, preservation of quality recreation experiences, establishing an environmentally sustainable transportation system, and contributing to a vibrant economy.” We look forward to hearing from these elected officials whose communities are at the center of this Mountain Accord discussion.

Homeless and Housing Issues

Join the Salt Lake Board of Realtors® on Tuesday, April 21 for Realtor® Day at The Leonardo for a special exhibit on the homeless and housing issues in Salt Lake City. Lunch and exhibit tickets are free to members (guests $25). Advanced registration is required at slrealtors.com. For more information contact laura@slrealtors.com or 801.542.8856.

28 | Salt Lake Realtor ® | April 2015

On the Move Northwest Title Insurance Agency announced the following new employees: Angie Flint – Bountiful Office. Working with Angie are Darcy Gilko, Kirk Walton, Shane Perkins, Angie Dastic, Charlotte Christensen, Kim Muhlestein and Melinda Conlin. Diane Mouser – Sugarhouse Office. Working with Diane are Kristi Carrell, Liz Cole, Mcinsy Brown, Claire Drew. Terrie Lund – Draper Office. Working with Terrie are Jeremy Bawden and January Stark. Teresa Troske – Union Heights Office. Working with Teresa are Dinnie Jensen, Judd Williams, Melissa Troske, Robin Dyer and Candice Porter. Casey Willoughby – Orem Office. Andrew Cartwright – Marketing / Customer Service. The Northwest Title leadership team consists of Mike Smith, Jeff Williams and Casey Buhler. Keller Williams Salt Lake City offered a giant shout out and thank you to Curtis Bullock, CEO of the Salt Lake Board of Realtors® (newly nicknamed “Dolly”), Lee Stern Emily Norris (director of operations of the Salt Lake Board of Realtors®), and the entire staff of the Board for a remarkable job in exchanging the Supra boxes and keys. “Everyone working kept a smile on their face, greeted the members enthusiastically, and they had a system that worked,” said Lee Stern, Realtor® with Keller Williams. “They were accommodating to us, the members, and it was appreciated! And it was nice to see so many friends while doing the exchange. More than 6,000 members in only three days was truly remarkable. Thank you.” Equity Real Estate welcomes the following new Realtors®: James MacFarlane, Brysen Partridge, Robert Holt, Jenny Cox, Jennifer Draper, Jakie Pizana, Michael Martindale, Lindsay Tripp, Maxim Ostromogilsky, Jason Heitz, Jason Woods, Danni Hall, Bruce Jolley, Marissa Seager, Kimberly Low, Julie Jacob, Mylinda LeGrande, Melanie Soules, Carolyn Zambrano, Justin Brunsvik, Cheryl Heath and Jessica Knowles.

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