Salt Lake Realtor – July 2017 by Mills Publishing Inc.

Salt Lake

REALTOR

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slrealtors.com

July 2017

2017 Parade Preview p. 14

Choosing the Best Offer p. 36

Renovations that Pay the Most p. 28

NEW PENTHOUSE FOR THEM $500 GIFT CARD FOR YOU Exquisite 27th-floor penthouses are newly finished atop 99 West, Salt Lakeâ&#x20AC;&#x2122;s luxury downtown high-rise. Homes boast spacious living spaces with custom surround fireplaces and handcrafted finishes. Start showing your client the magic of City Creek Living today. As our thanks, receive a $500 City Creek gift card upon closing when your client goes under contract by December 30, 2017.

Tour designer homes by appointment at 801.240.8600

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BIG NEWS

As little as 1% down payment could get your client into their new home! Income limits apply Minimum credit score of 620 ● Primary residence only ● No 1st time home buyer restrictions ● Conforming fixed rates available ●

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This is not a commitment to make a loan. Loans are subject to borrower and property qualifications. Contact loan officer listed for an accurate, personalized quote. Interest rates and program guidelines are subject to change without notice. SecurityNational Mortgage Company is an Equal Housing Lender. Company NMLS# 3116 SNMC0417SNL1167

Finding the right loan is a breeze with the Guaranteed Rate Mobile App Our powerful Mobile App can help your clients find the perfect mortgage from their smartphone or tablet—anytime, anywhere.

Your clients can: • Get pre-approved in minutes from a 100% secure digital environment • Instantly connect with a dedicated loan officer • See real-time mortgage rates • Quickly compare rates, fees and monthly payments

Contact me today to grow our business together! Danielle Young

C: (801) 205-0821

VP of Mortgage Lending

O: (801) 890-7656

6900 South 900 East, Ste 150 Midvale, UT 84047

Danielle.Young@rate.com Rate.com/DanielleYoung

Danielle Young NMLS ID: 265241 UT - 5487909 - 7495184 • NMLS ID #2611 (Nationwide Mortgage Licensing System www.nmlsconsumeraccess.org) • UT - Licensed in UT: Utah-DRE Mortgage Entity License #7495184 & Utah-DFI Residential First Mortgage Notification – Utah Department of Financial Institutions.

Table of Contents Realtor® Days at the Parade of Homes is July 25-26.

Features 12 2017 RPAC Golf Tournament 14 Housing Constraints Present

Challenges for this Year’s Parade of Homes Dave Anderton

24 The Outdoor Family Room:

4 Ways Landscaping Adds Value to a Home Kris Kiser

28 The Renovations That Will Pay Off the Most for Your Home in 2017 Judy Dutton

32 6 Shocking Things Your Home Inspector Won’t Check Lisa Gordon

36 Help Sellers Choose Between Multiple Offers Judith Crown

Columns 9 A Trusted Adviser Troy Peterson – President’s Message

Departments 10 Happenings 10 In the News 42 Housing Watch

44 Realtor® Connections 44 On the Move

On the Cover: Photo: Dave Anderton 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.

Salt Lake

REALTOR slrealtors.com

Maga zine

July 2017 volume 77 number 7 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.

TWO PRIME DAVIS COUNTY LOCATIONS

Sorrento Traditional Model at East Brentwood Estates

Beautiful homes in two highly-desirable communities

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IVORY MAKES THE RIGHT MOVE EASY FOR BOTH YOU AND YOUR CLIENT Ivory Homes offers more choices than anyone with over 60 home plans to choose from and 40 model homes to visit for a better sense of all the possibilities. With more than 65 neighborhoods across the Wasatch front and back, we have a variety of beautiful locations to ﬁt every lifestyle. And, if your client wants to get into their new home right away, we have hundreds of move-in ready homes completed or already in the works. EAST BRENTWOOD ESTATES, FARMINGTON 400 W. 1400 N. | 801-544-3645

EVERGREEN FARMS, LAYTON 750 S. 1700 W. | 385-888-7065

Visit these two model homes or any of our 40 model homes — or online at:

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EXAMPLE 2: $400,000 purchase price 1.

Total down payment 3% = $12,000 2. Lender Gift = $5,000 (1.25%) 3. You put down = $7,000 (1.75%) Loan amount: $388,000 Payment: $1,909 APR: 4.25%

What’s more, you can get a loan without monthly mortgage insurance! A loan without wasteful monthly mortgage insurance can save you thousands and increase your buying power. With 801-APPROVE there are no junk fees: no origination, underwriting, processing or application fees.

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Lenders Compete. Compete. You You Win! Win! Lenders

Maximum lender gift is 2% of purchase price, or $5,000—whichever is lower. Max loan $424,100. Max purchase price $437,216. 720 Minimum FICO score. Available to both first-time and repeat buyers. Home must be your primary residence and you cannot own any other home(s) at time of closing. Quoted payments are principal and interest only. Property taxes and homeowner’s insurance additional. Rate/APR and terms subject to change.

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Salt Lake

REALTOR

® ®

Maga zine

slrealtors.com slrealtors.com

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

A Trusted Adviser T

echnology and third-party disrupters were supposed to eliminate the role of a Realtor® in the real estate transaction. Yet, it appears consumers prefer a trusted adviser when it comes to the most complex and biggest financial transaction most will make in their lifetime.

A recent report by the National Association of Realtors® revealed that 94 percent of home sellers in the eight-state Mountain region, which includes Utah, used an agent to sell their home. Successful Realtors® embrace technology and understand that getting a listing or a referral requires world-class service and putting the interests of their clients first.

Publisher Mills Publishing, Inc. www.millspub.com

“It’s about the clients, not us,” according to a recent Inman News article. “Only a small percentage of real estate professionals understand this…The great news is that proactive, trusted real estate advisers with strong relationships will never lose business to technology. In fact, they will use technology to enhance the customer experience within their business.”

President Dan Miller Art Director Jackie Medina

The Inman article went on to say that if your “relationship consists of nothing more than staying in touch using phone calls, emails and postcards, you don’t have a relationship-based business at all, and that’s why new technologies scare you.”

Managing Editor Dave Anderton

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.

Would you hire yourself to buy or sell a home? Do you have the hustle, compassion, and expertise to gain the trust of a client? Are you confident, competitive, and put the interests of your client first? Do you act and dress like a professional? Do you have high ethical standards? Can you communicate? Do you listen? Are you responsive in a timely fashion? If you can’t answer yes to these questions, you may be in the wrong profession. Top producers and successful individuals jump in all the way. There is no middle ground. There are a lot of companies that are trying to disintermediate the Realtor® from the transaction. The solution for Realtors® is to be a trusted adviser in the real estate transaction. If you’re underperforming or not delivering a high level of value, make a change. World-class service will never be replaced.

Troy Peterson 2017 President

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. 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

July 2017 | Salt Lake Realtor ® | 9

Happenings

In the News Cybercrime Threatens Transactions

Salt Lake Board of Realtors® Recognized The Salt Lake Board of Realtors® was recently recognized with the 2016 Performance Achievement Award by The National Association of Realtors®. The award recognizes associations for RPAC fundraising achievements. Out of 100 large associations in the United States, the Salt Lake Board came in second place. The award was based on a composite score that measured the percent of RPAC participation, percent of members who were major investors, and the percent of members who achieved the President’s Circle. Forty percent of the Board’s members contributed to RPAC in 2016. Thank you for your investment.

Windermere Gives $10,000 to The Family Support Center

Windermere Utah Real Estate recently held a community service day and helped renovate buildings at The Family Support Center in Midvale. More than 100 agents helped to repurpose buildings, sheds and a playground. In addition, the brokerage donated $10,000 to the center, which helps to protect children and strengthen families.

10 | Salt Lake Realtor ® | July 2017

Cybercrime is posing a risk to an increasing number of real estate transactions, with home buyers’ down payment funds the main target of scammers. Anthony Lamacchia, broker-owner of Lamacchia Realty in Waltham, Mass., recently warned consumers on Boston.com to beware about the scam. Criminals are targeting home buyers by sending them emails that look like they might come from their real estate agent or attorney. The emails may contain signatures, fonts, and logos that are identical to the originals. The email then usually claims the plans for submitting the down payment have changed and provides new instructions to wire funds to an account. However, if buyers follow those new instructions, they often lose their funds forever. “Hackers can pop in and out of people’s emails without detection, often leaving the unsuspecting individuals untouched if it’s clear they’re not involved in any high-ticket transactions,” Lamacchia writes. “If hackers make their way into the email of someone involved in a real estate transaction, they can deconstruct the person’s identity in order to gain access to associated accounts. Then they are able to create emails and internet landing pages that appear identical to those involved in the transaction.” Lamacchia stresses the need for real estate professionals to warn their clients that they could be exposed to wire fraud in a transaction, and to tell them that any change in the transfer of funds will be discussed face to face. Further, he encourages real estate professionals, attorneys, and other parties handling property transactions to use only encrypted Wi-Fi networks and to create complex passwords that are changed frequently.

FOR EVERY SEASON, FOREVER MEMORIES. At Victory Ranch, year-round recreation and amenities await those seeking a Park City vacation home to call their own. It is a place for your family to escape the everyday, and where great moments in the great outdoors become memories to treasure for a lifetime.

Experience the Good Life in

THE GREAT OUTDOORS

Come summertime, our Rees Jones Golf Course challenges your game while a 4,000-acre backcountry offers miles of mountain biking trails, yurt camping and 5-stand shooting. Hit the legendary slopes of Park City and Deer Valley in the winter or fly fish along the Upper Provo year-round.

Parenting tips from

THE GREAT

6,700 Pristine Acres Near the Legendary Ski Resorts of Deer Valley and Park City • 18-Hole Rees Jones Golf Course • The Post Clubhouse & Pool • The Barn Activity Clubhouse & Spa • Ski-in/Ski-out Park City Clubhouse • World-class Fly Fishing • Freestone Lodge Riverside Dining • 20 Miles of Hiking and Mountain Biking Trails • 5-Stand Shooting • 4x4 ATV Adventures • Jordanelle Water Sports • Backcountry Yurts

Realtor Incentive Program Ask about our 3% broker commission on cabin & custom homes sales. Call 435.785.5000 Find yourself at VictoryRanchUtah.com Homesites from $475,000, Cabin Homes from $1,695,000 Victory Ranch does not discriminate on the basis of race, color, religion, sex, handicap, familial status, or national origin. Read the property report for Victory Ranch before signing anything. No federal or state agency has judged the merits or value, if any, of property in Victory Ranch. Access to golf and other amenities is restricted to Victory Ranch Club members and subject to applicable membership fees and other limitations. Each office is independently owned and operated.

2017 RPAC Golf Tournament

his year’s Golf Tournament at River Oaks Golf Course raised roughly $18,000 for the Realtors® Political Action Committee, a 16 percent increase over last year’s tournament. RPAC promotes the election of pro-Realtor® candidates across the United States. The money comes from voluntary contributions made by Realtors®, not members’ dues. First place women’s team (60): Lee Stern, Mo Wilkerson, Shauna Judd, and Sylvia Farrer. First place men’s team (54): George Richards, Derek Richards, Jeff Richards, and Mark Richards. First place co-ed (55): Brock Anderson, Sharon Spratley, Kim Gempler, and Shane Salmon.

12 | Salt Lake Realtor ® | July 2017

Photos: Kent Shelton, Shelton Photography, and Dave Anderton July 2017 | Salt Lake Realtor ÂŽ | 13

Candlelight Homes

Concord Homes

Parade | Draper | 84020 | 4,425 Sq Ft

Parade | Salt Lake City | 84108 | 4,130 Sq Ft

David Weekley Homes

Model | Draper | 84020 | 2,068 Sq Ft

Model | South Jordan | 84009 | 2,662 Sq Ft

Housing Constraints Present Challenges for this Year’s Parade of Homes Parade of Homes runs July 28 through Aug. 12. By Dave Anderton

his year’s Salt Lake Parade of Homes comes at a time when housing options are limited and competition is fierce among home buyers. Demand for all housing types is outpacing supply and home prices are at record highs. “Any lots that are being developed right now are spoken for,” said Jason Eldredge, regional sales director for Meyers Research, a California-based housing research company. “You can’t find any new residential single-family homes in Salt Lake County for under $350,000. Vacant developed lots are at a 15-year low.” James A. Wood, Ivory-Boyer Senior Fellow of the University of Utah’s Kem C. Gardner Policy Institute, said Utah will see the addition of 28,000 new households this year. Yet, builders will only be able to add about 21,000 housing units (all housing types). “Builders don’t have the land and they don’t have the labor to catch up,” Wood said. “The building industry can’t accommodate that growth. Everything sells immediately, listings are down, and people can’t find homes. Cities are hammering builders with regulations and fees. There is no land, and not enough labor.” Big commercial projects like the $3 billion expansion of

14 | Salt Lake Realtor ® | July 2017

Salt Lake International Airport, $1 billion in state highway maintenance, a $550 million new state prison, and the $350 million medical school at the University of Utah, leave few workers to build homes. Add to that Amazon’s 800,000 square-foot fulfillment center and a mega UPS distribution facility and one can begin to see why home builders are feeling squeezed. The small home builder looking to build 20 homes is at the bottom of the food chain when it comes to finding skilled workers, Wood said. Jaren Davis, executive officer of the Salt Lake Home Builders Association, said in the past builders had some predictability in building a home. Today, the process is less reliable. According to a report by the Institute, today’s home builder “is hampered by three supply bottlenecks that are holding back new construction: labor shortage, high land costs and local regulations and zoning ordinances.” Davis said these constraints have had a direct impact on builders in this year’s Parade. Two years ago there were 44 Parade homes. Last year there were 35. This year there are 33. “The labor shortage and unpredictability in finishing a new home have caused some builders to not participate in this year’s Parade,” he said. “It’s taking 30 percent longer to build a home today.”

Model | South Jordan | 84009 | 2,578 Sq Ft

Model | South Jordan | 84009 | 1,652 Sq Ft

D.R. Horton

E Builders

Model | Riverton | 84065 | 3,971 Sq Ft

Parade | Cottonwood Heights | 84121 | 7,250 Sq Ft

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Edge Homes

Elevation Homes

Model | Herriman | 84096 | 4,452 Sq Ft

Parade | South Jordan | 84009 | 5,433 Sq Ft

Fieldstone Homes

Model | South Jordan | 84009 | 4,144 Sq Ft

Model | West Jordan | 84081 | 3,742 Sq Ft

Finsand Development Parade | Bluffdale | 84065 | 5,379 Sq Ft

Across the Wasatch Front residential construction is strong, but demand is tremendous, Davis added. “We have such a shortage in inventory that is unbelievable,” he said. “If everyone stopped building today, we would be out of homes in 24 days.” The value of residential construction in Utah surpassed more than $4 billion in 2016, a 7 percent increase from the prior year, according to the Institute. You don’t have to drive far to see scores of new subdivisions going up. For instance, hundreds of single-family and multi-family homes are being built in places like Independence in Bluffdale. Sean Erickson, a Realtor® with Keller Williams and sale associate for Alpine Homes, said Alpine started building its West Gate subdivision in Bluffdale in May 2016 and has sold 23 of its 26 single-family homes. Alpine plans 30 more units

16 | Salt Lake Realtor ® | July 2017

for Independence Village, which will open this summer. Last year the homes were starting at $325,000. Today, they are more than $350,000. Spec homes (inventory ready for immediate move-in), are hard to find. Eldredge said last year at this time there were less than 50 spec homes across the Wasatch Front. Today there are roughly 100. However, in 2007, there were more than 1,000. The top five cities ranked by the number of new singlefamily dwelling units in the first quarter of 2017 included: St. George (162), Herriman (152), Lehi (138), South Jordan (109), and Saratoga Springs (95). According to the Institute, singlefamily permits increased by 4 percent in this year’s first quarter over first quarter 2016. The value of total residential construction (all housing types) climbed to $982 million in the first quarter, a 17 percent rise year-over-year. Even with the increases, catching up with housing demand could take years, Wood added. The Parade of Homes will take place from July 28th through Aug. 12th from 12 p.m. to 9 p.m. every day except Sundays. Realtors® can get a sneak peek of this year’s Parade Homes on July 25th and July 26th at Daybreak and Herriman and buy discounted Parade tickets. Sign up for Realtor® Days at the Parade, free for members, at www.slrealtors.com. Also, the Parade will feature a Chefs on Parade on July 26th this year with five gourmet chefs. Tickets for that event are $40 each and available at saltlakeparade.com. Tickets to the Parade of Homes will be sold to members of the Salt Lake Board of Realtors® beginning July 27 at the Realtor® Campus for $12.50 each. Dave Anderton is the communications director of the Salt Lake Board of Realtors®.

HardRock Homes

Holmes Homes

Parade | South Jordan | 84095 | 4,316 Sq Ft

Model | Herriman | 84096 | 3,836 Sq Ft

Holmes Homes

Huish Construction

Model | South Jordan | 84009 | 2,676 Sq Ft

Parade | Draper | 84020 | 6,048 Sq Ft

Huish Construction

Ivory Homes

Parade | South Jordan | 84095 | 7,273 Sq Ft

Parade | Riverton | 84065 | 6,077 Sq Ft

JCraft Homes

Lafferty Communities

Parade | South Jordan | 84095 | 6,671 Sq Ft

Model | South Jordan | 84095 | 6,741 Sq Ft

18 | Salt Lake Realtor Â® | July 2017

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, VISIT US price IN ALL OUR FINE COMMUNITIES not just the base • Making you look good by guiding your Clients through the building process and beyond

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an d ghl Hi

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See a David Weekley Homes Sales Consultant for details. Prices, plans, dimensions, features, specifications, materials, and availability of homes or communities are subject to change without notice or obligation. Illustrations are artist’s depictions only and may differ from completed improvements. Copyright © 2017 David Weekley Homes - All Rights Reserved. Salt Lake City, UT (SLCA86384)

Lake City Custom Homes

Model | Draper | 84020 | 6,311 Sq Ft

Parade | Draper | 84020 | 6,803 Sq Ft

Magleby Communities

Oakwood Homes

Parade | Herriman | 84096 | 3,757 Sq Ft

Model | Herriman | 84065 | 2,931 Sq Ft

Park Capital Homes

Pepperdign Homes

Model | Herriman | 84096 | 3,261 Sq Ft

Parade | Riverton | 4065 | 7,385 Sq Ft

Richmond American Homes

Sego Homes

Model | Herriman | 84096 | 4,137 Sq Ft

Model | South Jordan | 84009 | 1,380 Sq Ft

20 | Salt Lake Realtor ÂŽ | July 2017

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Parade | Draper | 84020 | 8,255 Sq Ft

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CONSTRUCTION • FHA/VA • CONVENTIONAL • CONSTRUCTION • FHA/VA • CONVENTIONAL • CO 22 | Salt Lake Realtor ® | July 2017

Photo courtesy of Outdoor Power Equipment Institute

The Outdoor Family Room: 4 Ways Landscaping Adds Value to a Home Improving overall curb appeal, which includes a beautiful lawn and landscape, can boost property values by as much as 17 percent. By Kris Kiser | President and CEO of the Outdoor Power Equipment Institute

hether you are working with a buyer or a seller, your clients want a property that offers the most value for the money. Of course, many factors go into determining a home’s value, including the location, neighborhood, schools, safety, floorplan, and whether it has been updated, to name a few. But there’s another important feature that is sometimes overlooked – the family yard which has rapidly become an extension of the home. Here are the top four ways family yards and other living landscapes add value to a property and extend the usefulness of the home.

24 | Salt Lake Realtor ® | July 2017

Curb Appeal As you know, curb appeal is an important factor in determining overall property value. After all, the first impression on a home is made before buyers even walk through the door! According to the National Association of Realtors (NAR) 2016 Remodeling Impact: Outdoor Features study, 99 percent of Realtors® have suggested that sellers improve their curb appeal before putting their home on the market, and 98 percent think curb appeal is important to potential buyers. That’s good advice. Studies show that improving overall curb appeal, which includes a beautiful lawn and

THOMAS WRIGHT Principal Broker

RYAN KIRKHAM Managing Broker Salt Lake City

DAVE JOHNSON Managing Broker Park City

SHANE NORRIS General Counsel

SUPPORT MATTERS In an era of complex, technical real estate transactions and limited brokerage support, we offer an alternative. To those who seek to maximize their income potential, we offer a world-class brand, backed by a leadership team and support staff that provides our agents with comprehensive business plans, detailed market analysis and planning, outstanding continuing education, sales coaching, and the tools needed to succeed at the highest level. Our goal — and our passion — is very simple: to dramatically improve your business performance. We welcome the opportunity to explain how the Sotheby’s International Realty brand, paired with proven leadership and unsurpassed brokerage support, can generate results you didn’t think possible, and, at the same time, redefine an industry.

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MMXVII Sotheby’s International Realty Affiliates LLC. All Rights Reserved. Sotheby’s International Realty® is a licensed trademark to Sotheby’s International Realty Affiliates LLC. Equal Housing Opportunity. Each Office is Independently Owned & Operated. Information deemed reliable, but not guaranteed. Square footage is an estimate only.

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landscape, can boost property values by as much as 17 percent (source: Texas Tech University).

conditioning for 18 homes (source: Alliance for Water Efficiency).

Trees are Tops Mature trees are often an indicator of an established neighborhood, which can be a positive for buyers looking for an older, classic home. But the value of trees goes beyond perception and preference and right into the pocketbook of your clients. According to the International Society of Arboriculture, each front yard tree adds 1 percent to a homeowner’s sale price, while large specimen trees can add as much as 10 percent to property values.

Expanding Living Space Yards can be outdoor family rooms, and are increasingly important to families who want a safe, inviting place for their kids and pets to play almost year-round. Merging indoor and outdoor living to increase living space is trending, making outdoor living space important for home buyers. But just how much can a seller expect to recover from ensuring a useful outdoor living area? According to an NAR survey, any cost to enhance outdoor living is well worth it.

Saving Green with Green Potential buyers often ask about the energy efficiency of a home, and it turns out that living landscapes impact the monthly electric bill. According to the Urban Forest Coalition, 100 million mature trees around U.S. residences save approximately $2 billion annually in reduced energy costs. In fact, strategically placed trees can save up to 56 percent on annual air conditioning bills. In the wintertime, evergreens that block winter winds can save 3 percent on heating (source: U.S. Department of Agriculture, Forest Service). There’s even a National Tree Benefit Calculator (TreeBenefits.com/calculator/) your clients can use to estimate the economic and environmental value trees provide on an annual basis. Cumulatively, eight average-sized front lawns can provide the cooling equivalent to air-

Seeding the family yard will recover 417 percent of the project cost, while updating a landscape with sod will result in a 143 percent recovery. For homeowners who want to take on more of a project, adding a new patio will recover 102 percent of their investment and a new wooden deck will result in a 106 percent recovery rate. One final note: a systematic research review concluded that knowing and experiencing nature makes people generally happier and healthier. Since nature starts in our own backyards, it’s fair to assume that the family yard contributes to overall well-being. This is priceless, whether your client is looking for a new place to call home or is just settling in to their new property. For more information, including infographics and fact sheets you can share with your clients, visit www.LivingLandscapesMatter.com.

26 | Salt Lake Realtor ® | July 2017

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Call 801.545.3429 or visit RichmondAmerican.com for more information. Prices, specifications and availability are subject to change without notice. Square footage is approximate. Actual homes as constructed may not contain the features and layouts depicted and may vary from image(s). ©2017 Richmond American Homes, Richmond American Homes of Utah, Inc. (866.400.4131).

The Renovations That Will Pay Off the Most for Your Home in 2017 The 2017 data suggest that “curb appeal” projects (such as new doors and exterior siding) generate higher returns than improvements done on a home’s interior. By Judy Dutton

hether you’re dying to update your kitchen, add a half-bath, or kick back on a brandnew deck, it pays off big-time knowing just what kind of return on investment your dream renovation might deliver. And you’re in luck, because Remodeling magazine recently released its annual Cost vs. Value report, which analyzes what you’ll pay for various upgrades—and how much you’ll recoup on that investment when you sell your home. For this much-read report (which, by the way, is celebrating its 30th anniversary), researchers scrutinized 29 popular home improvements in 99 markets nationwide, polling contractors on how much they charge for these jobs as well as real estate agents on how much they think these features boost a home’s market price. From there, they divided each project’s upfront cost by the home’s resale value; the resulting percentage

28 | Salt Lake Realtor ® | July 2017

gives you a sense of how well each particular reno “investment” pays off. There wasn’t a lot of change between the 2017 report and its 2016 predecessor, with most projects retaining their value. But what is noteworthy is that the value of pricier projects rose significantly over last year, says Craig Webb, editor of Remodeling. He believes this indicates that the housing market is healthier and more bullish than ever. “When the market is hot, Realtors® are more likely to give value to more expensive renovation projects, because they expect that the market will stay hot and people will pay the price,” he explains. “When the market is cool, Realtors® tend to put less value on those big-dollar projects, because they have concerns about whether the house will get sold in any state.” Still, the perennial chart toppers for ROI are

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a 53.9 percent ROI when you sell; a master suite, 64.8 percent. Top renovation trends nationwide Remodeling’s report also points to broader renovation trends that seem to be catching on nationwide. One definitely worth watching is energy efficiency—including simple jobs like adding insulation. “We added [the category of] attic insulation only last year, and we were surprised at how well it did,” Webb says. Similar projects are installing better-insulated windows and doors. One new category this year speaks to another hot trend: universal design, which ensures that a home’s features can be used just as easily by the elderly and disabled as anyone else. That means things like grip bars in showers, lever-style doorknobs, and wider, wheelchair-friendly doors. A universally designed bathroom, for instance, reaps a respectable 68.4 percent ROI. “This is the first year we’ve included universal design, and it’s truly a rising category,” says Webb. “It’s based on a growing desire to age in place and a greater awareness of people with disabilities.” Last but not least, the 2017 data suggest that “curb appeal” projects (such as new doors and exterior siding) generate higher returns than improvements done on a home’s interior. In other words, it really isn’t what’s on the inside that counts. If you’re trying to sell, pretty up the outside and it’ll pay off in spades.

the cheapest to pull off. This year (as last), the No.1 finisher was installing loose-fill fiberglass insulation in the attic. Not exactly sexy, but boy, is it cost-effective! In fact, this is the only project that regularly pays back more than you invest, with an average 107.7 percent ROI. Next up is replacing a run-of-the-mill entry door with an attractive yet tough steel replacement at 90.7 percent, followed by manufactured stone veneer at 89.4 percent. Glamorous, no. Valuable, very. Yet homeowners all need to come to grips with the fact that most renovations won’t pay them back in full. On average, in 2017, you can expect to get back 64 percent on every dollar you plow into home improvements (same as last year). Plus, your returns will vary widely by project—and sorry to bring your expectations down another notch, but the payoff on big, alluring, “HGTV-ready” renovations isn’t so great. Adding a bathroom, for instance, will bring only

30 | Salt Lake Realtor ® | July 2017

How to decide if you need to renovate Fancy new garage doors could be a good investment depending on where you live. So if you’re now sitting there scratching your head wondering which upgrades to make, take a step back and ask yourself this question first: How long do you plan to live in your home? “If you see yourself keeping the house for at least five years, you shouldn’t worry about value at all,” Webb says. The reason: Housing trends and fads can change dramatically in this amount of time, so what’s hot today could be passé all too soon. So if you plan to stay put, renovate however will make you happy, period. If, on the other hand, you’re planning to sell in less than five years, “then looking at the return makes sense,” says Webb. Just keep in mind that tastes vary widely by location, so it’s important to pinpoint what’s hot in your area (which is why Remodeling breaks down its data into nine U.S. regions). For instance, composite decks may be big in the Midwest, whereas the South is gaga over new garage doors. As Webb points out, “Every one of the 29 projects had at least one market where the payback was over 100 percent. So every project got love somewhere.”

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6 Shocking Things Your Home Inspector Won’t Check By Lisa Gordon

ome inspectors are quite thorough. Before you buy a house, they’ll scrutinize things you never thought to look at in your many walk-throughs, from cracks in stucco to how well the toilet flushes. In fact, their checklists include over 1,600 features, all with the goal of helping you decide whether the home is in good enough shape for you to close this deal—or whether you should back out while you can. Given that a basic home inspection costs $300 to $500 but could save you thousands in repairs, that’s a sweet deal! And yet, home inspectors don’t check everything. For one, conditions such as mold, radon, or asbestos that require laboratory samples or equipment are the stuff of specialty inspections, which cost extra or must be conducted by other specialists. Here’s what home inspectors conducting a basic search aren’t eyeballing, and what you can do if you want to make sure your prospective new home checks out on all counts.

Electrical outlets behind heavy furniture For one, basic home inspections evaluate only the stuff these professionals can see or access easily. That means if furniture is blocking certain areas, your home inspector isn’t about to throw out his back to lug it aside. Bottom of Form “I’ve had china cabinets in front of an electrical

32 | Salt Lake Realtor ® | July 2017

panel, and there’s no way we’re going to move that stuff,” said Frank Lesh, executive director of the American Society of Home Inspectors, headquartered in Des Plaines, IL. Instead, ask the home seller to move such items in advance so the inspector can do his work without heavy lifting. Roof Home inspectors will gamely climb onto your roof and check for missing or warped shingles and make sure flashing and gutters are in good shape. There’s one huge caveat: Your roof should be less than three stories tall and not too steep. If it is, they’ll probably pass. After all, if they fall, it’s a long way down! “We’ll go up on roofs if it’s safe,” said Lesh. “But if it’s raining or it’s too high, we’re not able to get to it.” It’s reasonable to worry about the roof, which is a big-ticket item. You can hire a specialized roof inspector for $500 to $750 to examine roofs that a regular inspector will avoid. Some, hoping to get business if they turn up issues, will even inspect it for free; others charge according to location, roof height, and material. If they can’t climb onto roofs, they can perform an infrared inspection that assesses temperature differences along your roof to determine where heat is escaping. Fireplace and chimney Home inspectors will typically open and shut dampers to make sure they’re working, and

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a free site that will tell you the history of sinkholes and other natural catastrophes in the vicinity of your home—and help you assess whether more research should be done. Swimming pool Basic home inspectors will turn on pool pumps and heaters to make sure they’re working. But inspectors won’t routinely evaluate cracks or dents in the pool. For that, you’ll need a professional pool inspector, who will run pressure tests for plumbing leaks. He’ll also scrutinize pumps, filters, decking surfaces, and safety covers. The cost will hover around $250 or could be free, if you end up hiring the pool company for regular maintenance.

shine a flashlight up the chimney to check for big obstructions like a bird nest. But that’s typically where their inspection ends. Want more? A fireplace inspector can perform a Level 1 inspection to look for soot and creosote buildup, which could start a chimney fire. This extra inspection will cost about $80 to $200. If the home has experienced an earthquake or major storm, a chimney inspector will perform a Level 2 inspection, which adds visits to the roof, attic, and crawl space to check for damage ($100 to $500). Ground beneath your home While home inspectors will thoroughly check the home, the ground beneath it might go largely ignored. So if you’re worried about the land’s structural integrity—or whether it shifts, tilts, or has sinkholes or a high water table—you’ll need to hire a geotechnical or structural engineer. These professionals test the soil for an array of problems, but it’ll cost you: Basic testing costs $300 to $1,000, and drilling a bore hole for deeper investigations can cost $3,000 to $5,000. That’s a lot to pay for a hunch, so if money is tight, go to PlotScan,

Service Directory Home Inspection

Lisa Kaplan Gordon is an award-winning writer who has covered real estate and home improvement for realtor.com, Yahoo, AOL, and many others. Reprinted from Realtor® Magazine Online. June 2017, with permission of the National Association of Realtors®. Copyright 2017. All rights reserved.

CRITERIUM-BERNHISEL ENGINEERS 801-466-0931 Scott Bernhisel, PE, MBA Professional Engineer

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34 | Salt Lake Realtor ® | July 2017

Well and septic system If your inspector works in areas where wells and septic systems are common, for an extra fee ($150) he might test your well water and check that your septic system is running correctly. But if most houses he inspects are on public well and water, you’ll have to hire a well inspector. Well inspectors—typically employed by companies that install or repair such systems—will collect water samples for lab analysis for coliform, arsenic, and other harmful bacteria and chemicals. They will ensure that well parts such as seals, vents, and screens have been properly maintained and that the well and pump can produce enough water. This will cost around $250. Does the home have a full-on septic system? Then for $100 to $200, a septic system inspector will check your tanks, baffles, and piping; evaluate the inside of septic tanks using a camera to check on concrete conditions; and make sure wastewater is going into the tank, not leaking to the surface.

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Help Sellers Choose Between Multiple Offers In a bidding war, help your sellers think about more than money. By Judith Crown

uggling multiple offers is an enviable problem to have, but it isn’t always easy territory to navigate. For clients who think the highest bid is the default choice, it’s important to explain that price is just part of the calculation. Other factors include move-in timeline, potential appraisal and inspection contingencies, the amount of earnest money a buyer is willing to put down, and negotiations around home repairs, among other issues.

When Less Is More Some sellers come into the process with priorities that are more important to them than the sale price. Make sure you know what those are at the start so that you can help weed out bidders who are not able to meet the sellers’ terms, said David Silverman, a sales associate with DeBianchi Real Estate in Fort Lauderdale, Fla. “Maybe the sellers require a long escrow period because their new home won’t be ready yet,” he said, “or maybe they need to close quickly because they’ve already purchased a new home and don’t want to pay mortgages on two properties.”

36 | Salt Lake Realtor ® | July 2017

If you spend time upfront talking through all the factors that could come into play, your sellers will be in a better position to evaluate offers. Heidi Hines gives buyers a chance to put their best foot forward: She sends a memo indicating terms her clients will find more favorable, such as a quick closing timeline or fewer contingencies. “That should be a heads-up that it’s a multiple-offer situation,” said Hines, CRS, GRI, a sales associate with Wilkinson ERA Real Estate in Charlotte, N.C. It can get buyers thinking about creative ways to gain sellers’ attention. The amount of the offer is important, of course, and when buyers bid high, you want to make sure they’re qualified. Asking for a sizable earnest money deposit will help discern which buyers are serious, Silverman said. If bidders require financing, the reputation of their lender can be an important factor when weighing offers. If the lender is known for delays, you may want to counsel your seller on choosing another offer. Many buyer’s agents in low-inventory markets, where bidding wars are common, advise

Image licensed by Ingram Image

their clients to waive contingencies and other items to make their offers more attractive. As a result, sellers may be better off considering lower bids when they come with fewer strings attached. Carrie Pierce-Johnson, a sales associate with Coldwell Banker Danforth in Seattle, said she suggested that a recent client, who had six offers, turn down the highest bidder, who didn’t waive the appraisal contingency. Such a contingency means that if the house appraises below the offering price, the buyer must make up the difference in cash—which could derail the sale. Pierce-Johnson’s seller avoided that risk by accepting a cash offer that was $10,000 less but bypassed the need for an appraisal. When to Hold Your Opinion When evaluating multiple bids, your clients most likely will ask for your feedback on which offer you think they should take. Your expertise can come in handy here, but there are occasions when it may be wiser to encourage your clients to reach a decision on their own. Dot Aikman, a sales associate at Sky Realty in Austin, Texas, said it’s best to reserve your opinion when sellers are considering a personal letter they received from a buyer. It’s a common tactic buyers use to appeal to a seller’s emotion and win favor over other bidders. And while it can complicate your client’s choice, resist providing an answer in those situations, Aikman said. “I suggest to my clients to sleep on it. What does their heart tell them? You want them to be happy and not

38 | Salt Lake Realtor ® | July 2017

walk away from the deal feeling regret.” A seller Aikman recently represented chose an offer from a family over a higher cash bid from an investor. The family enclosed a letter saying their son planned to live there and improve the property. “That was appealing [to my client],” Aikman said. You will want to offer your professional opinion to sellers when buyers offer incentives such as a rent-back agreement, which enables sellers to stay in their home after the sale if they need more time to move. Walk the seller through the terms of such a deal, explaining the benefits and potential risks. “If a family has small kids and they want to avoid temporary housing, a rent-back agreement could [be more valuable than a higher offer],” PierceJohnson said. Make sure the agreement stipulates who is responsible for what costs. For example, if an appliance breaks during the rent-back period, who pays for the repair? “I let sellers know that I can be helpful, but I’m not licensed to solve problems after the sale,” Pierce-Johnson said. Sellers in multiple-offer situations have numerous considerations to sort through. Once you’ve done your job explaining the pros and cons of each offer and providing information clients need to make an informed decision, it’s important to support whatever choice they make. In the end, the best offer is the one they are most comfortable with. Reprinted from Realtor® Magazine Online. May 2017, with permission of the National Association of Realtors®. Copyright 2017. All rights reserved.

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AND THEN SOME

know before you show Ethics Violation: Articles 1 & 3 By Holly Robbins, professional standards coordinator

Unauthorized access into listed homes has been a growing concern with both Realtors® and their clients. Entering a listed home without permission causes a major disruption in the professional relationship between Realtors® and their sellers who trust them. Already this summer, clients have had children home alone when an unauthorized Realtor® Realtor entered, clients have been in the shower, clients have even been awakened with strangers walking in on them without their permission. Realtors® found in violation of articles one and/or three of the Realtors® Code of Ethics have been fined up to $250 for their infraction. We must take the privilege of the Supra Key System seriously. seriousl Entering a property without permission, especially when the occupants are home, can cause all sorts of issues that can be avoided. The safe practice and professional use of the key system will help continue the level of professionalism and integrity the Realtor® Industry is founded on.

Before entering a listing you must: 1. Check MLS listing for special showing instructions.

2. Only enter the property with permission. 3. Do not allow your buyers to enter the property without you present. 4. leave the property secured, exactly as you found it. 5. Make sure to carefully replace the keys in the lockbox after the walk through is complete.

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Housing Watch Home Builders are Trying to Meet Increased Demand; Existing Home Sales Decline

ome sales continued to fall during the month of May as the Wasatch Front’s housing shortage became more acute. Sales fell 5 percent during the month year-over-year to 1,726 units sold. The limited supply of housing inventory is having a direct impact on overall sales. In Salt Lake County, the months-supply of housing inventory in May dropped to less than two months. Home builders are trying to meet increased demand, but the home builder is hampered by three supply bottlenecks, according to a report by the University of Utah’s Kem C. Gardner Policy Institute. Those constraints include: “labor shortage, high land costs and local regulations and zoning ordinances.” “For the first time in over 40 years, the increase in households in Utah is greater than the number of new housing units built,” the report said. “The projection for household growth in 2017 is above 25,000, but it is unlikely that Utah’s home building industry can produce more than 21,000 new homes given the supply bottlenecks facing builders.”

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

1,817

42 | Salt Lake Realtor ® | July 2017

1,726

Nationally, May’s sales pace is 2.7 percent above a year ago and is the third highest over the past year, according to the National Association of Realtors®. “Home prices keep chugging along at a pace that is not sustainable in the long run,” said Lawrence Yun, NAR chief economist. “Current demand levels indicate sales should be stronger, but it’s clear some would-be buyers are having to delay or postpone their home search because low supply is leading to worsening affordability conditions.” Across the U.S., all-cash sales were 22 percent of transactions in May, up from 21 percent in April and unchanged from a year ago. Individual investors, who account for many cash sales, purchased 16 percent of homes in May, up from 15 percent in April and 13 percent a year ago. Sixty-four percent of investors paid in cash in May. Distressed sales — foreclosures and short sales — were 5 percent of sales in May, unchanged from April and down from 6 percent a year ago.

Salt Lake County Median Price (all housing types) Year-Over-Year (Up 9%)

$274,500

$300,000

2 - C OL OR

Salt Lake County Days on Market (all housing types) Year-Over-Year (Down 4%)

2 27

Davis County

Median Price (all housing types) $275,000 Year-Over-Year (Up 6%)

$259,900

Pending Sales (Down 8%)

1,760

1,907

Sales $

Salt Lake County

Sales

Davis County Sales (all housing types) Year-Over-Year (Down 1%)

518

523

July 2017 | Salt Lake Realtor Â® | 43

REALTOR® Connections

On the Move

Q&A: Curtis A. Bullock Curtis Bullock is the CEO of the Salt Lake Board of Realtors®. He earned his law degree from the J. Reuben Clark Law School at BYU. Q: How important is contract language? A: The Utah Court of Appeals recently ruled that the language of the FSBO Commission Agreement & Agency Disclosure that requires payment of a brokerage fee is enforceable even when the transaction fails as a result of a Seller default. A case involving a 170-acre piece of land was advertised for sale by owner in a local newspaper. The property was landlocked so there was no public access to the property. The Buyer made an offer using the REPC which was accepted by the Seller. The Buyer’s Agent included with the offer a FSBO Commission Agreement to secure payment of a 3 percent brokerage fee for months of professional services rendered in putting the deal together. The REPC terms required the Seller to provide a General Warranty Deed conveying title to the Buyer. However, a Special Warranty Deed was to be delivered instead. Because of access problems to the lot and the fact that the Seller breached the contract by not agreeing to provide a General Warranty Deed, the transaction failed. The Buyer’s Broker brought legal action to recover payment of the brokerage fee agreed upon in the FSBO Commission Agreement for the months of work and real estate services provided. The language of that agreement states that “if the sale or exchange is prevented by default of the Seller, the Brokerage Fee shall be immediately due and payable to the Company.” Court Ruling - since the Seller defaulted on the contract, the Seller was ordered to pay the 3 percent brokerage free as required in the FSBO Agreement. The takeaway? Contract language matters!

Top Row: Carol Hintze, Office Manager, Bryan Colemere, Scott Colemere, LeeAnn Hansen. Front Row: Zea Colley, Kimberly Hammond

Colemere Realty Changes Ownership B. Thomas and Carol Colemere recently sold their business of 62 years (founded in 1953) to their sons Scott and Bryan who are “third generation Realtors®.” Scott Colemere is now the principal broker. Scott also serves as a director and treasurer on the Board of Directors of the Salt Lake Board of Realtors®. To accommodate its growth, the brokerage has moved to a new office at 9661 South 700 East.

44 | Salt Lake Realtor ® | July 2017

Joan and Ravath Pok

Realty ONE Group recently announced six new regional directors to its franchise network, including Ravath and Joan Pok of Realty ONE Group Signature in Midvale. The Poks joined the network as a leading, luxury brokerage with 20 agents. Today, they have 75 agents and growing. “The addition of these Regional Directors marks a huge milestone in the evolution of Realty ONE Group’s Affiliate network,” said Lou Gonzalez, president of Realty ONE Group Affiliates. “Along with becoming ambassadors for the brand, these men and women solidify their commitment to the network by facilitating the expansion and growth in their respective regions.” Grady Kohler, owner and principal broker of Windermere Utah Real Estate, and his wife, Sophy, a former executive of a Fortune 500 company, recently purchased Park City Nursery. The nursery was started in 1983. The Kohlers will continue the nursery’s 35-year legacy of selling trees, shrubs and flowers that thrive at high-altitude settings. The nursery sits on six acres of property and includes the original Samuel Snyder home and general store, built in the 1880s. The Kohlers plan to restore the home and store and open them to customers. Snyder, a native New Yorker and Mormon pioneer was one of Park City’s original homesteaders. The Snyderville Basin was named after him.

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• 5 Day Stay at the Sheraton Maui Resort & Spa (Ocean View) • 2 Round Trip Flight Tickets to Maui • 5 Day Car Rental in Maui • $500 Visa Gift Card *Multiple entries accepted with no cap on the number of entries. Every $15 dollars invested = 1 entry. Example: $100 invested at dues = 100/15 = 7 entries. Winner will be drawn on August 1st. Only members of the Salt Lake Board of REALTORS® may contribute to RPAC. Contributions are not deductible for income tax purposes. Contributions to RPAC are voluntary and are used for political purposes. You may refuse to contribute without reprisal and the National Association of REALTORS® or any of its state associations or local boards will not favor or disfavor any member because of the amount contributed.

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Peter Clark Realtor® 801.390.9865

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