Salt Lake Realtor – April 2017 by Mills Publishing Inc.

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April 2017

Housing Shortage Hits Utah p. 10 Winning a New Listing p. 14 You Might be on Camera p. 30

Home Buying Re-engineered

A Reverse Mortgage may drive your sales by: • May be able to help clients afford purchasing a new home

Craig D. Clayson REVERSE MORTGAGE PROFESSIONAL

• May help clients afford more home & upgrades • Free clients from a monthly mortgage payment

You may be surprised at the solutions a Reverse Mortgage can create for your clients age 62 and over. Call TODAY to learn how to help your clients and drive your sales with with a Reverse Mortgage! C: 801.838.9849 | O: 801-573-1343 | Craig.Clayson@snmc.com www.TeamClayson.com | NMLS# 309938 WA Consumer Loan no. 137802 Borrowers must be age 62 or over and the home must be their primary residence. Homeowners must complete counseling with a government-certified counselor before applying. Homeowners must pay property taxes, insurance, and homeowner’s association dues. Consult a tax professional for tax consequences. A reverse mortgage is a loan and must be repaid. Loan amount based on equity in your home. Payout available in lump sum or in regular scheduled payments. Proceeds may not affect Social Security or Medicare Benefits. Contact your benefits coordinator for more information. There’s no need to repay the loan as long as you continue to live in the house and maintain the property to FHA standards and maintain upkeep of the home. This is not a commitment to make a loan. Loans are subject to borrower and property qualifications. Interest rates and program guidelines are subject to change without notice. SecurityNational Mortgage Company complies with Section 8 of RESPA and does not offer marketing services in exchange for referrals or the expectation of referrals.” SecurityNational Mortgage Company is an Equal Housing Lender. NMLS 3116. SNMC1216CU1041

Salt Lake City ranks as the No. 1 spot for millennials when it comes to home buying. p. 20

Table of Contents Features 10 Residential Construction is on the Rise, but Below Pre-Recession Levels James Wood

14 Dos and Don’ts to Win the Listing Peter Murray 20 Millennials Prefer Salt Lake City When it Comes to Housing

Realtor.com

30 Suprise, Home Buyers: You Might be on Hidden Camera

Clare Trapasso

Columns 7 An Outdoor Town with

Loads of Jobs Troy Peterson – President’s Message

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

On the Cover: Photo: www.istockphoto.com/aetb Photo left: Dave Anderton

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 2017 volume 77 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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Salt Lake

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President Troy Peterson Equity Real Estate

Directors

First Vice President Adam Kirkham Summit Sotheby’s International Second Vice President Scott Robbins Coldwell Banker Residential Treasurer J. Scott Colemere Colemere Realty Associates Past President Cheryl Acker Utah Key Real Estate CEO Curtis A. Bullock

M. Brock Andersen Berkshire Hathaway Kimberly Farber-Bowen IMPOWER Real Estate Brian Gottfredson Coldwell Banker Residential Alicia Holdaway Equity Real Estate Mike Morgan Realtypath Mary Olsen Utah Key Real Estate Jodie Osofsky Utah Key Real Estate Steve A. Perry Realtypath Michael Rowe Berkshire Hathaway Randal Smith Equity Real Estate Matthew Ulrich Ulrich Realtors®

Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com

Managing Editor Dave Anderton Publisher Mills Publishing, Inc. www.millspub.com President Dan Miller Art Director Jackie Medina Graphic Design Ken Magleby Patrick Witmer Sales Staff Paula Bell Karen Malan Paul Nicholas

Office Administrator Cynthia Bell Snow Office Assistant Jessica Snow Administrative Assistant Ruth Gainey

Salt Lake Board: (801) 542-8840 e-mail: dave@saltlakeboard.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 achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which 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 expressed by writers and persons 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 and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs. While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication.

An Outdoor Town with Loads of Jobs

new report by Realtor.com ranks Salt Lake City as the nation’s top city for millennials when it comes to housing. The report described Salt Lake as an “urban city with the relaxed vibes of a mountain town.” The report went on to say that Salt Lake’s “tech companies are attracting the millennial generation to this area by offering innovative workspaces, large salaries and an overall high quality of life.” For those of us who live in Utah the ranking is no surprise. There are jobs everywhere. The word is out. Utah’s economy is red hot. Our unemployment rate was the lowest of all cities, according to the report. Our mountains are minutes away, not hours. We have five national parks: Canyonlands, Arches, Capitol Reef, Bryce Canyon, and Zion. For millennials, Salt Lake City and Utah represent the perfect storm of a good life. We have high tech jobs and a mountain setting second to none. Over the past three years net migration to the state has jumped from 5,087 people in 2014 to 24,274 people in 2016. This year net migration will climb to more than 32,000 people, according to the 2017 Economic Report to the Governor. Utah’s population recently surpassed 3 million people and had the highest percent growth rate of all states, according to the Census Bureau. Roughly 1.1 million of those people live in Salt Lake County. Our state’s rate of natural increase is 11.6 people per 1,000 population, the highest in the nation. We have the lowest death rate, the highest fertility, and the youngest population. Growth presents challenges. Yet, there are worse fates. Take, for instance, Detroit. Detroit’s population peaked in 1950 at 1.8 million people. It has declined every year since then. The city now has less than 700,000 residents, a 61 percent drop in the population. Detroit for many years was listed among the nation’s Top 20 most populous cities. Last year it dropped to the No. 21 spot, the first time the city didn’t make the Top 20 list since before the Civil War, according to The Detroit News. Declining populations bring less economic opportunities, less political clout, deteriorating neighborhoods and home prices, and falling revenues for businesses and government. Let’s not take for granted the economic environment and setting Salt Lake offers. Here’s to Salt Lake, an awesome outdoor town with loads of jobs!

Troy Peterson 2017 President

Views and opinions expressed in the editorial and advertising content of the The Salt Lake REALTOR® are not necessarily endorsed by the Salt Lake Board of REALTORS®. However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.

OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ® REALTOR® is a registered mark which identifies a professional in real estate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®. October 2005

April 2017 | Salt Lake Realtor ® | 7

Happenings

In the News Third Largest Group of Home Buyers are Gen Xers

Pictured: Marcus Jessop, government affairs director; Curtis Bullock, CEO of the Salt Lake Board of Realtors; and Troy Peterson, president of the Salt Lake Board of Realtors®.

Food, Fun, and Basketball Roughly 200 members enjoyed free food and fun at the Realtor® Campus March Madness event. Thank you to our Gold sponsors: Academy Mortgage, Edge Homes, Graystone Mortgage, Utah Apartment Association, UtahRealEstate.com, and the Women’s Council of Realtors®.

RPAC Winners Bob and Carolyn Stewart, of Team Stewart Real Estate, won a twonight stay to the Montage Deer Valley. The drawing was made up of people that recently made investments this year to the Realtors® Political Action Committee. Look for details this June to enter a giveaway to Hawaii when you make an RPAC investment when paying annual membership dues.

8 | Salt Lake Realtor ® | April 2017

An improving economy, multiple years of strong job growth and the notable increase in home values in most markets fueled a greater share of purchases from Generation X households over the past year. This is according to the National Association of Realtors® 2017 Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent home buyers and sellers. The survey additionally found that a growing number of millennials and younger boomer buyers have children living at home; student debt is common among Gen X and boomer households; more millennials are buying outside the city; and younger generations are more likely to use a real estate agent. Much of the spotlight in recent years has focused on the several challenges millennials are enduring on their journey to homeownership. According to Lawrence Yun, NAR chief economist, lost in this discussion are the numerous Generation X households who bought their first home, started a family and entered the middle part of their careers only to be rattled by job losses, falling home values and overall economic uncertainty during and after the Great Recession. The uptick in purchases from Gen X buyers this year (28 percent) was the highest since 2014 and up from 26 percent in 2016. Millennials were the largest group of recent buyers for the fourth consecutive year (34 percent), but their overall share was down slightly from a year ago (35 percent). Baby boomers were 30 percent of buyers, and the Silent Generation made up 8 percent.

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Residential Construction is on the Rise, but Below Pre-Recession Levels Household growth in 2017 is projected to rise above 25,000, but it is unlikely that Utah’s home building industry can produce more than 21,000 new homes. By James Wood Ivory-Boyer Senior Fellow Kem C. Gardner Institute

or the sixth consecutive year, permit authorized construction increased in Utah. The value for all types of permit authorized construction totaled $8.17 billion, the second highest value in Utah’s history (inflation adjusted dollars). Construction value in 2016 was driven above $8 billion by the single largest building permit in several years. In December, Salt Lake City issued a permit for $566 million for redevelopment of the Salt Lake City International Airport. This permit, the first received for the Terminal Redevelopment Program (TRP), represents only a portion of the

10 | Salt Lake Realtor ® | April 2017

ultimate cost of airport’s redevelopment of $2.9 billion. The first phase of the TRP is due for completion in late 2020. The TRP will be the second largest construction project in Utah’s history, surpassed only by the 1,900 MW Intermountain Power Plant built in the mid-1980s in Millard County. It’s important to point out that even without the airport permit, total construction value in Utah in 2016 was up 11 percent over 2015 and the fourth highest year in history. With the airport permit included, the total value of construction was up 21 percent in 2016 (Table 1).

All of the major Table 1 Change in Major Construction Indicators in Utah ($billions) construction indicators 2015 2016 % Change were up in 2016, with the exception of the value for Total Construction Value $6.75 $8.17 21.0% single-family homes. The number of single-family Residential Value $3.80 $4.05 6.6% units, however, was up Total Residential Units 17,629 19,532 10.8% nearly 9 percent, but the Single Family Value $2.90 $2.83 -2.4% construction value was down slightly, a little more Single Family Units 9,744 10,579 8.6% than 2 percent, as builders Multifamily Value $0.89 $1.16 30.3% offered more moderately Multifamily Units 7,518 8,763 16.6% priced homes. Condo/Town Homes 2,492 3,028 21.5% The demand for more affordable housing is clearly Apartment Units 5,026 5,735 14.7% shifting the composition Nonresidential Value $2.00 $2.51 25.5% of residential construction. Additions, Alterations, $0.96 $1.61 67.7% Forty-five percent of new Repairs residential construction was Source: Ivory-Boyer Construction Database, Kem C. Gardner Policy Institute captured by condominiums, town homes and apartments. Condominium and town home construction was market, existing “for sale” home market, and up 21 percent to 3,028 units, while apartment new home market, show signs of stress related to construction was up nearly 15 percent to 5,735 a housing shortage. Rental vacancy rates are low, units. Nonresidential construction had another existing homes are typically sold with a few days exceptional year with total value up 25 percent of listing and home builders are “flat out” trying to $2.5 billion and additions, alterations and to keep up with demand. The home builder is repairs hit a record level of $1.6 billion due to the hampered by three supply bottlenecks that are redevelopment of the Salt Lake City International holding back new construction: labor shortage, Airport. high land costs and local regulations and zoning ordinances. For the first time in over 40 years, the Residential Construction increase in households in Utah is greater than the In 2016, the value of residential construction number of new housing units built. The projection increased to $4 billion, 7 percent higher than 2015, for household growth in 2017 is above 25,000, but while the number of dwelling units receiving it is unlikely that Utah’s home building industry building permits was up 11 percent to 19,532 units. can produce more than 21,000 new homes given Residential construction includes single-family the supply bottlenecks facing builders. homes and multifamily units, which includes In recent years, the affordability of owner condominiums, town homes and apartments. occupied housing has become more of an issue In 2016, single-family construction increased to pushing a larger share of households into the 10,579 units, the highest level since 2007 (see Figure rental market. Consequently, Utah has been in an 2). Even so, the number of new single-family units apartment development boom over the past few continues to be well below construction activity years. In 2014, apartment construction suddenly prior to 2008. During the 15-year stretch from took off with an increase of 265 percent over the 1993 to 2007, the number of single-family homes previous year as apartment unit permits hit a 30receiving building permits averaged 15,300 units, year high of 6,700 units. Activity slowed in 2015 to well above the single-family level in 2016. 5,026 units, but increased again in 2016 as permits Eighty-three percent of all residential were issued for 5,735 apartment units. construction in the state in 2016 was located in Over the past three years, nearly 17,500 new four counties: Salt Lake County with 8,305 new apartment units have received building permits dwelling units accounted for 43 percent of all new statewide, an extraordinarily high level of residential units statewide, Utah County (3,988 apartment construction. The growing preference units) ranked second with a 20 percent share, (or in many cases, necessity) for rental housing followed by Washington County (2,165 units) with is one of the structural changes underway in the an 11 percent share and Davis County (1,721 units) housing market. Vacancy rates in most rental with an 8.8 percent share. Washington County’s markets throughout the state are below 5 percent, residential construction was up 30 percent in 2016 rental rates are increasing at 4 to 5 percent annually, to the highest level in 11 years. and the absorption rate of new units is brisk. The The demand for housing appears to be apartment boom is concentrated in Salt Lake and outpacing supply. All housing markets; rental Utah counties, which together account for nearly

April 2017 | Salt Lake Realtor ® | 11

85 percent of the new apartment construction over the past three years. In 2016 Salt Lake County had 4,465 permits issued for apartment units, the highest number of rental units for either Salt Lake or Utah County during the apartment boom. Nonresidential Construction Total value of nonresidential construction hit a historic high of $2.5 billion in 2016, 4 percent above the previous high of $2.4 billion in 2007 (inflation adjusted) and 25 percent above 2015, which was an exceptional year for nonresidential construction. Over the past three years, the value of nonresidential construction activity has more than doubled. This recent surge in construction follows several years of strong employment and demographic growth, which has created demand for more office, industrial and retail space as well as increased the demand for large nonprofit construction such as hospitals. Utah’s nonresidential construction sector was led by hospital construction in 2016. Permits were issued for $544 million in hospital construction, including the $148 million expansion of the Dixie Regional Medical Center in St. George and the $214 million expansion of the Utah Valley Hospital in Provo. Construction values for other major sectors were $380 million for office buildings, $270 million for retail buildings and $287 million for industrial buildings. The office sector had a very strong year in 2016. The value of new office construction was $381 million, ranking as the third highest year ever (inflation adjusted), surpassed only by activity in 2007 and 2015 (see Figure 5). After seven years of lackluster performance, the retail sector finally had a solid upturn with $270 million in new construction (see Figure 6). The industrial sector had a substantial drop in value from 2015, falling from $506 million (an all-time high) to $287 million in 2016 (see Figure 7). It’s important to remember that industrial construction in 2015 received a substantial boost from the anomalous

12 | Salt Lake Realtor ® | April 2017

$216 million Holly Frontier oil refinery in Davis County. When placed in a long-term context, the 2016 value for industrial construction near $300 million was very respectable. 2017 Forecast The forecast for permit authorized construction in Utah in 2017 is $7.5 billion, down about 8 percent from 2016. This forecast assumes there will not be another permit for the Salt Lake City International Airport’s TRP in 2017. The value of residential construction is expected to increase by 11 percent to $4.5 billion. Cost increases will push residential value higher, but more important is the increase in the number of residential units, which is forecast to increase from 19,500 units in 2016 to 21,000 units in 2017. Most of the increase in residential construction will be concentrated in single-family homes, which is forecast to be up 17 percent to 12,500 units. Multifamily permits will likely decline 3 percent to 8,500 units as apartment development activity slows, but will be partially offset by a continued increase in condominium and town home units. The value of permit authorized nonresidential construction in 2017 is forecast to fall by 20 percent to $2 billion. This decline does not signal weakness in the overall nonresidential market, but rather the absence of the one-time boost from large hospital projects that supported the record level of nonresidential construction in 2016. In 2017, the traditional sectors of nonresidential construction—office, industrial, and retail—will have solid performances, benefitting from Utah’s strong job market, expanding population and favorable market conditions. In summary, the $7.5 billion in permit authorized construction activity in 2017 is forecast to include $4.5 billion of residential construction, $2 billion of nonresidential construction and $1 billion of additions, alterations and repairs.

Collaboration is not an option. It’s a promise. When we work with Homebuyers, we build homes around their lives – not the other way around. The same is true when we work with you. At David Weekley Homes, we work hand-in-hand with you and your Team to ensure that your Clients’ path to homeownership is as seamless and fulfilling as possible – and so is your experience in helping them get there. That’s The Weekley Way. At David Weekley Homes, we love taking care of you and your Clients by: • Encouraging you to register your Clients with us – we promise it will be easy • Paying you complete commissions based on a home’s full sales price, not just the baseUSprice VISIT IN ALL OUR FINE COMMUNITIES • Making you look good by guiding your Clients through the building process and beyond

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Dos and Don’ts to Win the Listing I had no idea how to handle my first seller lead. I failed to get the business, and here’s what I learned from that experience. By Peter Murray

remember when I received my first listing lead. It quickly became clear that the seller was uninformed about the process of selling a home, and I had little training on what to do or say in this situation. So, I did everything wrong. From what I could gather during our phone call, the seller had moved out of state with her boyfriend, they had dogs (there was a lot of barking on the phone), and they were in some sort of financial distress. The seller couldn’t meet with me in person and didn’t want to provide me access to her property so I could see its condition. Still, I didn’t know any better, and I said I would prepare a listing presentation. I used a broad set of search criteria to research comparable homes, and once I gathered them, I emailed the seller a fancy market analysis document with colorful graphics, including my portrait and company logo. Then I called the

14 | Salt Lake Realtor ® | April 2017

seller to discuss what I had found. The conversation was all over the place, and I had no idea how to steer it. I went on tangents about the real estate market where she lived—not where she was selling—air conditioners, and any other random topic where I thought my knowledge might impress her. I then thanked the prospective seller for her time and hung up, completely forgetting to ask for the listing and inquire about next steps. On top of that, I never pushed for the opportunity to walk through the property or meet the seller in person to shake her hand—two of the most important steps. I never heard from her again, and I never followed up to see if her home was eventually listed with another agent. I’ve learned a few lessons since then about how to land a listing. (continued on page 18)

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There’s something special about Legacy Farms, it’s really exciting because there’s nothing else in Utah County quite like it.” Located off Redwood Road just seven miles from Interstate 15, Legacy Farms has convenient access to Pioneer Crossing and Lehi’s bustling tech corridor. It’s nearby the shores of beautiful Utah Lake and has breathtaking views of the Wasatch Mountains. All this gives Legacy Farms the best Utah County has to offer. Legacy Farms offers a modern twist to a classic American community, at an affordable price. It’s unique mix of beautiful single-family and townhomes are situated on 183 acres in one of Utah’s fastest-growing

cities. Townhomes start at $188,000, with single-family homes starting in the $250,000 range. They are thoughtfully designed and beautifully constructed by DR Horton, the number-one builder in the United States for 15 years in a row. Buyers can choose from more than 20 floorplans in five different architectural styles: Farmhouse, Craftsman, Traditional, Prairie and Modern. Single-family homes range from 1,275 to 4,445 square feet on lots ranging from 6,000 to 10,000 square feet. This broad selection of styles and floorplans gives Legacy Farms a harmonious look without a cookie-cutter feel. Once you’ve selected the floorplan that’s right for you, DR Horton’s award-winning design team will help you select an interior every bit as beautiful as the community’s architecture and wide-open surroundings. Or, you can choose from the gorgeous, designer-styled homes already constructed and ready for a quick move-in. “It’s easy to see why Legacy Farms is the number-one Utah Valley community based on sales, permits and closings for 2016,” said

Visit drhorton.com/utah for more information. *D.R. Horton is America’s #1 Homebuilder per Builder Magazine.

DR Horton division president Boyd Martin. “We are setting records in terms of sales and production in one community with one builder. The vibe is very young and energetic. You’ve got amazing architecture, beautiful parks and lots of green space. Homes are selling quickly, but there are still plenty of prime lots and models to choose from.” Legacy Farms’ blend of townhomes, starter homes and mid-level family homes provide an opportunity to stay in the same neighborhood, even as housing needs change through different stages of life. Legacy Farms was designed to be the type of community residents will never want to move from. Officials at DR Horton spent several years planning the community before breaking ground in 2015 on this one-of-a-kind development. “They deﬁnitely went the extra mile to really be mindful of how everything lays out,” said Richard McCann, lead architect for the project. “So much time, effort and energy was put into getting it right. Every part of the community is carefully styled to evoke a modern-day farm, with an American, ‘down-home’ feel.” Even some street names were inspired by historic registered farms in the United States. Krisel Travis, entitlements and land acquisition manager said, “The theme of the community shows through from the amenities right down to the architecture of the home. It just creates a fantastic environment in which to live.” The rapidly developing community is bursting with amenities. A resort-style swimming pool is a fun place for all residents to gather with their families. There is also a spacious, 2,568 square-foot clubhouse resembling a barn that is large enough

to hold neighborhood gatherings, birthday parties, even baby showers. Restored vintage tractors are reimagined as play structures throughout the 12 neighborhood pocket parks. There will be more than 41 acres of green space with parks, walking trails, basketball courts, a bike track and a skate park. Legacy Farms is a community where a healthy and recreational lifestyle is sponsored. It promotes occasions of relaxation and fun, while offering plenty of opportunities to connect and have fun with others who live in the community. The brand new public elementary school that opened in September of 2016 allows for a safe environment close to home for children to grow both academically and socially with their classmates. There’s plenty to do and see in the surrounding city of Saratoga Springs with its gorgeous shoreline and proliferation of new shops and restaurants. But, at the end of the day, Legacy Farms is meant to a place you can’t wait to come home to. “There’s something special about Legacy Farms,” said Boyd. “It’s really exciting because there’s nothing else in Utah County quite like it.”

whether they will be realistic about their asking price. If they start to avoid eye contact, looking around the room, and can’t focus on answering my question, it’s a good sign they aren’t ready to handle some harsh realities. I’ve worked with many unrealistic sellers, and I’ve found they take up a lot of time and frequently don’t make it to closing.

Setting the List Price Image licensed by Ingram Image

Dos and Don’ts (continued)

Preparation What I did wrong: The search terms I used to scour the MLS for comparable properties was too broad, and I consistently overthought every step of the process. I often never met or made plans to meet a seller and have a real, intimate conversation about their needs before compiling a CMA and emailing it to them. I didn’t give them a chance to get to know their would-be agent—and vice versa—before trying to sell them on my services. How I fixed it: When searching comps, I stick to the subdivision in which the prospect is selling, if possible, to draw the most relevant results; search only sold properties; compare like models to like models; and keep the conversation with the seller focused on the task at hand: setting the list price. I present my CMA in person, sitting at the seller’s kitchen table and presenting and explaining each comp one by one. I highlight the sold price, the closing date, the number of days on market, and the seller concessions, if any, with yellow highlighter. I also produce an automated 60-page Seller’s Report using the REALTORS Property Resource®.

Communication What I did wrong: I talked way too much about myself and boasted about my knowledge. Don’t get me wrong; prospective sellers wanted to know I knew what I was talking about. But didn’t spend enough time listening to what the sellers needed and expected from me, and I didn’t pay attention to the nonverbal cues they were giving me. How I fixed it: After presenting comps and giving the seller an opportunity to ask questions, I ask one simple thing: “After looking at the comps, what do you think your property is worth?” Then I remain quiet until the seller provides me with their thoughts. If they don’t say anything, I sit in silence until they speak. This gives me a chance to examine their body language, which will hint at

18 | Salt Lake Realtor ® | April 2017

What I did wrong: I didn’t try to temper unrealistic expectations with education. If a seller asked for a list price well above what the market would support, I would end the conversation, advise that the seller rethink their game plan, and tell them to call me at a later time. I didn’t want to offend the seller, but I also wanted to avoid wasting both mine and the seller’s time. How I fixed it: Once the seller tells me what they think the list price should be, I ask them, “Why?” This is another opportunity to watch their body language as they reply. If their price is too high, we take another look at the comps and repeat the process. Most sellers catch on quickly to market trends and price their property within a reasonable range. But I’ve learned at this point not to give up on the conversation or steer it in a different direction if I think the seller is off track. It’s important not to lose the momentum of the conversation or else the seller’s thought process gets lost.

Asking for the Business What I did wrong: I would not directly ask for the listing. Instead, I would talk around it and set follow-up appointments in hopes that the seller would get around to hiring me. How I fixed it: Once we’ve gotten through the difficult conversations and set a list price that is in line with market conditions, I know I’ve gained the seller’s trust. Now I can ask for the business. I simply ask, “When will you be ready to list your property with me?” It’s not a demanding question, but it pushes the process forward. All in all, the lessons I’ve learned from my mistakes have been extremely valuable for future conversations with sellers. At the end of the day, it’s about establishing mutual trust. We both must have a level of respect for one another in order for the client to choose me and for me to choose the client. Reprinted from Realtor® Magazine Online, March 2017, with permission of the National Association of Realtors®. Copyright 2017. All rights reserved.

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Millennials Prefer Salt Lake City When it Comes to Housing The excitement of an urban city with the relaxed vibes of a mountain town and relatively low cost of housing make Salt Lake City No. 1. By Realtor.com

alt Lake City is the nation’s top city for millennials when it comes to housing. Salt Lake is one of the fastest growing metropolitan areas and it has the highest percentage of millennials (15.8 percent) compared to its population. The cost to buy a home in Salt Lake City as a percentage of income is just 30 percent. The list includes some of the usual millennial hot spots – Seattle and Los Angeles – along with a few surprises such as Buffalo, N.Y. and Albany, N.Y. In rank order, realtor.com®’s Top Cities for Millennials include: Salt Lake City, Miami, Orlando, Fla., Seattle, Houston, Los Angeles, Buffalo, Albany, San Francisco, and San Jose, Calif. “High job growth in markets such as Orlando,

20 | Salt Lake Realtor ® | April 2017

Seattle, and Miami, and the power of affordability in places like Albany and Buffalo are making these markets magnets for millennials.” said Javier Vivas, manager of economic research for realtor.com®. “But what really stands out is that all these markets already have large numbers of millennials, which translates into strong populations of millennial home buyers.” The average share of the 25-34 year old population in the U.S. is 13 percent, but in these top markets, the average share is 14 percent. Salt Lake City, No. 1 on the list, happens to also have the highest share of milllennials, comprising 15.8 percent of its total population. Seattle is close behind with a millennial population at 15.2 percent, Los Angeles and

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2. Miami The draw: An international mecca for tourism and entrepreneurship. Millennial hotspots: Wynwood, located just north of downtown, offers a strong art community. South Beach is a strong draw for business and fashion oriented millennials looking to make it big in their careers. The stats: The millennial population makes up 13.1 percent of the population. Affordability is tough, requiring the average buyer to spend 49 percent of their income on a home. Its unemployment rate is 5.1 percent, slightly above the national average. © Kaspars Grinvalds / Adobe Stock

San Francisco tie for third with 15.0 percent. Economic growth and relative affordability make these markets really attractive to firsttime home buyers. Salt Lake City has the lowest unemployment rate of all the markets on the list at 2.9 percent, which is well below the national unemployment rate of 4.7 percent. The job market is also a factor in San Francisco and San Jose, with the unemployment rate at 3.7 percent. When it comes to affordability, Buffalo is No. 1 with the most affordable home prices relative to salary, at 22.7 percent. It’s followed by Albany where people only use 27.3 percent of their income on a home and Salt Lake City where buyers use 30 percent. Realtor.com® analyzed the 60 largest markets in the U.S. and compared the share of millennial page views in each area to the national average. Markets were ranked based on their comparison to the national average. Page view data included in this analysis covers the period from August 2016 to February 2017.

Realtor.com®’s Top Cities for Millennials 1. Salt Lake City The draw: The excitement of an urban city with the relaxed vibes of a mountain town. Large tech companies such as Adobe are attracting the millennial generation to this area by offering innovative workspaces, large salaries and an overall high quality of life. Millennial hotspot: Sugar House, located southeast of downtown Salt Lake City, offers hip bars and trendy restaurants. The stats: Millennials make up 15.8 percent of the population. Homeowners spend 30 percent of their income on their home and the unemployment rate is 2.9 percent

22 | Salt Lake Realtor ® | April 2017

3. Orlando The draw: Downtown Orlando is becoming a hot area and offers easy access to public transportation, shopping and dining, as well as a proximity to many jobs. Millennial hotspots: Thornton Park, located just east of downtown has also become popular among millennials who are looking to live in a unique historic neighborhood with cobbled streets and lined with bungalows. The stats: Millennials account for 14.6 percent of the total population in Orlando. Homes are affordable here and only require 34 percent of income. The unemployment rate is below the national average at 4.4 percent. 4. Seattle The draw: With big company names such as Starbucks, Amazon, Filson, K2 and REI, it’s not hard to imagine why so many millennials want to live and work in Seattle. Millennial hotspots: Capitol Hill and Belltown are popular neighborhoods for creative millennials who want access to boutique shopping, craft breweries and unique dining experiences. The stats: Seattle has the second largest millennial population, at 15.2 percent, of all the towns on the list. It offers affordability of 35.6 percent and an unemployment rate of 4.2 percent. 5. Houston The draw: A booming job market is drawing many young millennials looking to jump-start their careers. Millennial hotspots: The Heights, Oak Forest, and Timbergrove attract millennials with their close proximity to downtown, boutique shops, trendy restaurants and craft breweries. The stats: Houston’s population is made up of

Service Directory population of 13.4 and an unemployment rate of 5.6 percent. It is the most affordable market on the list, where people only spend 22.7 percent of their salary on their home.

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14.5 percent millennials. While people spend 36.1 percent of their income on homes, the unemployment rate in Houston is slightly higher than the national average at 5.4 percent. 6. Los Angeles The draw: Companies such as Snap Inc. and Airbnb draw tech driven millennials to what is now being referred to as “Silicon Beach,” while actors, comedians and music artists are still drawn to the area for a chance at fame. Millennial hotspots: Silver Lake is a hotbed for millennials looking for a young and creative community. The stats: Millennials make up 15.0 percent of the population. While the unemployment rate is in line with the national average at 4.7 percent, affordability is difficult in Los Angeles with people spending 64.1 percent of their income on a home.

8. Albany The draw: Albany is slowly becoming what is referred to as the “Silicon Valley of the East Coast,” with companies such as GE putting up headquarters and employing over 7,000 people. The large tech scene popping up is attracting many young millennials who want to be in tech, but don’t want to pay for real Silicon Valley housing prices. Millennial hotspot: Specialty cocktail bars, Biergartens, and craft coffee houses make downtown Albany the place to be for millennials. The stats: Millennials make up 12.7 percent of Albany’s population. It offers both affordable housing at 27.3 percent of income and a low unemployment rate at 4.5 percent. 9. San Francisco The draw: San Francisco’s tech fueled job market is pumping millennials into the area left and right, however, sky-high housing prices are pushing many of the newcomers to the outer neighborhoods and forcing them to rent. Millennial hotspots: North Beach and the Mission have become popular for the young tech generation that have established themselves and earned a large paycheck, while the Sunset District and Daly City offer more affordable housing options – relative to the rest of the city. The stats: In San Francisco, millennials make up 15 percent of the total population. While the unemployment rate is really low at 3.7 percent, affordability is a concern with people spending 56.2 percent of their income on a home. 10. San Jose

7. Buffalo The draw: Money is flowing into the area as a tech scene begins to expand from incubation competitions such as 43 North, which awards $5 million in prizes yearly. Millennial hotspots: With a revitalized waterfront, downtown Buffalo and North Buffalo are becoming hot real estate for trendy millennials who are looking for easy access to shopping and dining as well as a family oriented community. The stats: For those millennials looking to spend more time outdoors, Buffalo has a millennial

24 | Salt Lake Realtor ® | April 2017

The draw: Opportunity to work in some of the most innovative companies in the U.S. as well as the infamous Silicon Valley paycheck, are major drivers drawing millennials to the area. Millennial hotspots: Centrally located downtown San Jose is attracting many millennials because of its public transportation as well as trendy shops and unique dining experiences. The stats: Millennials make up 14.2 percent of the total population in San Jose. Similar to San Francisco, the unemployment rate is low at 3.7 percent but homes cost 53 percent of income.

Housing Watch Local Home Sales Rise in February Following a Slight Drop the Previous Month

alt Lake home sales increased in February despite a lack of housing inventory. For the month there were 981 closings (all housing types) in Salt Lake County, up 5 percent compared to 933 homes sold in February 2016. Davis County saw home sales climb 15 percent year-over-year. Troy Peterson, president of the Salt Lake Board of Realtors® and a broker with Equity Real Estate Solid, said this spring’s home buying season has already started and will be more competitive among buyers than past years. “Multiple offers and back up offers will become routine,” Peterson said. “I have never seen anything like this before in my 22 years of selling real estate.” Nationally, February home sales sales increased 5.4 percent above a year ago, according to the National Association of Realtors®. Lawrence Yun, NAR chief economist, said the national housing market has “too few properties for sale and weakening affordability conditions.” “Realtors® are reporting stronger foot traffic from a year ago, but low supply in the affordable price range continues to be the pest that’s pushing up price growth and pressuring the budgets of prospective

Salt Lake County Sales (all housing types) Year-Over-Year (Up 5%)

933 26 | Salt Lake Realtor ® | April 2017

981

buyers,” he said. “Newly listed properties are being snatched up quickly so far this year and leaving behind minimal choices for buyers trying to reach the market.” The median home price in Salt Lake County in February climbed to $262,953, up 6 percent compared to a median price of $248,500 in February 2016. In Davis County, home prices jumped to $259,400, a 10 percent increase from a year earlier. Properties sold in February across Salt Lake were typically on the market for 24 days, down from 30 days a year ago. NAR President William E. Brown, a Realtor® from Alamo, Calif., said being fully prepared is the right strategy for prospective buyers this spring. “Seek a preapproval from a lender, know what your budget is and begin discussions with a Realtor® early on about your housing wants and needs,” he said. “Homes in many areas are selling faster than they were last spring. A buyer’s idea of a dream home in a popular neighborhood is probably the same as many others. That’s why they’ll likely have to decide quickly if they see something they like and can afford.”

Salt Lake County Median Price (all housing types) Year-Over-Year (Up 6%)

$248,500

$262,953

2 - C OLOR

1 Salt Lake County Days on Market (all housing types) Year-Over-Year (Down 20%)

2 24

Davis County

Median Price (all housing types) Year-Over-Year (Up 10%)

$234,950

Pending Sales (Up 0.5%)

1,392

1,385

Sales $

Salt Lake County

4 $259,400

Sales

Davis County Sales (all housing types) Year-Over-Year (Up 15%)

297

258

April 2017 | Salt Lake Realtor Â® | 27

REALTOR® Connections

Q&A: Gary Cannon Gary Cannon is the principal broker of Cannon and Company and was the 2007 president of the Salt Lake Board of Realtors®. Q: You are the second person in Utah to have invested a minimum of $50,000 in total lifetime contributions to RPAC. Why was this a priority for you? A: Unlike most agents, I learned the value of RPAC after I had been investing in it for a few years. My broker at the time was George Richards (Chapman Richards) and came into my office and told me to write out a check. And so I DID! I can’t think of a more powerful and easier way to make a difference in the state of Utah in protecting private property rights for ourselves, and for all individuals who own or plan on owning any property. Q: When you were president of the Salt Lake Board of Realtors® you set an RPAC goal in 2007 for the association. When you didn’t reach the goal, you wrote a personal check for several thousands of dollars making up the difference. Why? A: We were on the tail end of a strong six-year run and the wheels just started to come off the real estate machine. All of a sudden everyone who was selling lots of houses weren’t! We were so close to our goal and everyone had worked so hard to hit it. I had a great year and it seemed like the right thing to do. I have no regrets to this day. Q: Final thoughts of why RPAC is important? A: I view RPAC kind of like charitable giving. Once you start it is easy to continue. I am very proud of how hard everybody works every year to bring more awareness to the agents. It just keeps getting better and our state keeps getting stronger. When the leadership goes to meetings and conferences in other states and the words Utah and RPAC are in the same sentence all heads turn and they listen. Leadership has really done an amazing job of not letting our efforts fall short. RPAC is the single strongest political action committee in the country. I must give credit to the front line of Mike Ostermiller, CEO of the Northern Wasatch Association of Realtors®, and Chris Kyler, CEO of the Utah Association of Realtors®, for the respect that they command on the Hill. To watch these guys in action is truly a beautiful thing. I still think that we as agents can do a better job of educating the consumers on the efforts that we make on their behalf.

28 | Salt Lake Realtor ® | April 2017

On the Move Equity Real Estate would like to welcome the following Realtors® to the team: Nicola “Niki” Davidson, Debra Hensel, Benjamin Hilton, Lynda Gull, Greg Foulger, Daniel Sluga, Coby Purser, James Sawyer, Michael Hauptman, Jimke Post, Gregory Foulger, Elizabeth McCroskey, Mckell Robinson, Tyce Jensen, Yolanda Newton, Brett Muir, Robert Manley, Chris Prisbrey, Dallas Wood, Lacy Rasmussen, Amy Devaney, Judy Torgerson, Nicholas Chase, Matthew Robinson, Kia Burns, Elen Holdaway, Marci Bliss, Eben Blomquist, Geri Stewart, Caitlin Shumway, Anita Haddon, Lyn Daybell, Shyann Mitchell, Kiva Parker, Sandy Rich, Rebekah Gift, Dana Goodrich, Ruthie Good, Eagen Lopez, Adam Bulson, Jeffrey Taylor, Ahmad Saif, Lindsay Kohler, Shandie Wiedbusch, Juan Moronta, Brittni Basso, Christi Smith, Scott Brady, Montgomery Betham, Joshua Smith, Michael Keating, Mikelle Jolley, Christina Bradshaw, Erin Beeny, Shanel McLenon, Misty Curtis, Tyler Vanklaveren, Drew Hanna, Peter Drubin, Tina Grundmann, Brett Christiansen, Andrei Tarassov, Heidi Bryant, and Mary Wellmon.

Jody Jones

Jody Jones, a Realtor® with Windermere Utah Real Estate, was a CCIM Finalist for Rookie of the Year 2017 at the Grand America Hotel on March 4. CCIM stands for Certified Commercial Investment Member. The CCIM designation represents proven expertise in financial, market, and investment analysis and designees are recognized as leading experts in commercial investment real estate. Windermere Utah Real Estate also welcomes the following new Realtors®: John Richards (Union Park), Angie Nielsen (Layton), Brigette Murphy (Sugar House), Leialoha Mergist (Sugar House), Scott Bailey (Layton), Laura Greenhalgh (Layton), Caley Bowman (Sugar House), Marshall Emsley (Sugar House), Devin Falkner (Sugar House), Scott Falkner (Sugar House), Clint Goode (Union Park), Kyle Olson (Sugar House), and Mimi Sinclair (Sugar House).

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Surprise, Home Buyers: You Might be on Hidden Camera Do you have a reasonable expectation of privacy while touring a property for sale? Probably not, according to Curtis Bullock, attorney and CEO of the Salt Lake Board of Realtors®. “It is not uncommon for a seller to use a nanny camera or other recording device to record what buyers are saying and/or doing while touring their property,” Bullock said. “In Utah, a seller most likely has the right to do this since the property is privately owned. The buyer should not expect his/her conversations to remain private.” Here is an article that talks more about this issue.

By Clare Trapasso

ou may believe you’re having private discussions about the merits of a homeowner’s wallpaper, the ugly, orange tiles in the bathrooms, or the to-die-for bay windows as you tour a residence. But what people often don’t realize is that those surveillance cameras in the hallways may be turned on, according to Bankrate.com. And that smiling teddy bear in the corner? He may be taping everything you say. Even the not-so-neurotic sellers often want to know exactly who wants to buy their homes, what they don’t like about them, and just how far they’ve fallen in love with the residences (useful information when it comes to negotiations), say real estate agents. And what better way to find out than to play Big Brother? “It’s not unusual to see a camera at the edge

30 | Salt Lake Realtor ® | April 2017

of a playroom,” says Atlanta real estate agent Jen Engel. “But people don’t realize they’re on.” Engel once represented a seller who used a “nanny cam” to record everything potential buyers said about the seller’s home. Engel learned of it after the property sold. “They want to know what people don’t like,” says Engel. “They want to know if there’s an issue they’re not being told about.” The cameras are most likely legal, although the laws can vary by state, says Indiana University law professor Fred Cate. “It’s against the law to record someone on audio or video if they’re in a situation in which they have a reasonable expectation of privacy, [such as in] a changing room or a locker room or a bathroom,” said Cate, author of “Privacy in the Information Age.” “But when you’re in somebody else’s house with a real estate agent, it’s a little harder to argue you really have an expectation of privacy.” For sellers, getting that honest (if ethically murky) feedback can inspire them to make changes—such as replacing that ’70s kitchen flooring or putting in new carpeting. It can also be valuable during negotiations to know just how much buyers want the home—and how much they said they’d be willing to pay for those properties when they thought no one else was listening. That’s why Houston Realtor® Greg Nino cautions his Re/Max Compass clients to play their hands close their vests and not say anything that could potentially be used against them—from commenting on the family pictures on the wall to gushing about how they finally found their dream home. “I’ve had sellers actually go and spy on buyers to see if they are the kind of people they want living in their house,” Janine Acquafredda, a Brooklyn, NY–based associate broker at House-NKey Realty, told Bankrate.com. But Boston real estate broker Douglas Bray of Century 21 Cityside doubts that’s common. “What’s important is if someone is financially qualified and capable of purchasing the home,” he said. Of course, sellers may simply feel nervous about having strangers in their home, amid their possessions, and want some measure of security. “If the home has precious works of art [or other valuables], then by all means, I think cameras are an important part of the homeselling process,” Bray told realtor.com®. “But it’s important that people be told there are cameras present. That’s just useful in making everyone feel comfortable.” Reprinted from Realtor® Magazine Online, June 2016, with permission of the National Association of Realtors®. Copyright 2016. All rights reserved.

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Salt Lake City Branch l 6975 S. Union Park Center #300, Cottonwood Heights, UT 84047 l 801.890.6418 Licensed by the Utah Department of Commerce Division of Real Estate Lic# 6076868-MLCO 7 *14 business day guarantee only applies to purchase transactions. This guarantee does not apply to Reverse Mortgages, FHA 203k, Bond, MCC, loans that require prior approval from an investor, or brokered loans. The guarantee does not apply if events occur beyond the control of New American Funding, including but not limited to; appraised value, escrow or title delays, 2nd lien holder approval, short sale approval, or lender conditions that cannot be met by any party. The 14 day trigger begins when your initial application package is complete and you have authorized credit card payment for your appraisal. If New American Funding fails to perform otherwise, a credit of $250 will be applied toward closing costs. NMLS #6606. All products are not available in all states. All options are not available on all programs. All programs are subject to borrower DQG SURSHUW\ TXDOLÂżFDWLRQV 5DWHV WHUPV DQG FRQGLWLRQV DUH VXEMHFW WR FKDQJH ZLWKRXW QRWLFH Â&#x2039; 1HZ $PHULFDQ )XQGLQJ 1HZ $PHULFDQ DQG 1HZ $PHULFDQ )XQGLQJ DUH UHJLVWHUHG WUDGHPDUNV RI %URNHU 6ROXWLRQV '%$ 1HZ $PHULFDQ )XQGLQJ &RUSRUDWH 2IÂżFH LV ORFDWHG DW 0\IRUG 5RDG 6XLWH 7XVWLQ &$ 3+21( $OO 5LJKWV 5HVHUYHG

WINDERMERE IS PROUD TO ANNOUNCE THE NEW

9TH

9TH OFFICE COMING THIS SPRING

Located in the heart of the 9th and 9th neighborhood and just two blocks east of Liberty Park, we will be near some great local eateries and businesses, including: Coffee Garden, Pago, Mazza as well as Centered City Yoga and the Tower Theater. We look forward to working in the heart of the neighborhood and welcome you to stop by! If you would like to find out more, please contact Peter or Cherie:

PETER CLARK

CHERIE MAJOR

801.390.9865

801.557.5627

PeterClark@Windermere.com

CherieMajor@Windermere.com

For more information about Windermere, contact our principal broker, Grady Kohler, at (801) 815-4663.