Babs DeLay

Babs DeLay

January 25, 2011

The Rose of Rose Park

2011

Rose Park is an area located five minutes to downtown Salt Lake City. It's west of I-15, north of 600 north, and east of Redwood Road. There are a few old historic pioneer homesteads still out there but the area is mostly small starter homes built after WWII for the returning veterans who got jobs working for the railroads and in the rail yards nearby. The original developer plotted out the streets in the shapes of several roses, all coming off the main street/stem, called 'American Beauty'. The names of many of the streets are the names of rose varieties and the original roofing shingles to the original homes were either red or green.

I'm always surprised when I list a home out there and find out the sellers didn't know where the 'Rose' of Rose Park came from! I also have to sometimes blindfold people to get them there because so many folks I work with are east side snobs. Upon arriving on American Beauty Drive they are always amazed at how nice a neighborhood it is, with beautiful tree-lined streets and well kept homes. I swear the neighborhood there gets out every night in the summer and had clips their yards with pinking shears to make those lawns looks so beautiful.

Over the years some great things have happened to the area, and there are more in the works: The Jordan River Parkway has been extended and the bike trail is terrific; TRAX is going to be completed in the next 15-24 months to the airport, making Rose Park an extremely transit oriented neighborhood (already has great bus service); a new library and eco-garden; and my favorite, the Rose Park Golf Course and little par three course next door to it. There are also new home subdivisions and ball parks popping up all over now that the freeway was upgraded past 2200 North. Plus, there is a toy airplane field/landing strip hidden out there for kids of all ages.

I think Rose Park is one of the most religiously and ethnically diverse areas in the Salt Lake Valley. Check out the rugby and soccer action at any of the fields out there on the weekends and see what I mean.

Home prices are amazing-you can get a 1200-1800 sq. ft. home on a large lot with a one or two car garage from $145-$175,000 depending on the condition. The newer homes are 10-20% more. No more driving to west Egypt to get a good deal, just start exploring the Rose of Rose Park for a five minute commute to downtown. And there are other great close-in neighborhoods along the Jordan River, like Poplar Grove and Glendale. Living closer to work is a greener alternative and with TRAX being extended to the airport these areas are going to become even more desirable to buyers.

2011

Once upon a time you bought a house with that really hot girlfriend you had for three years. She turned out to be a clone of Lindsay Lohan and well, last you heard she's in rehab at a clinic near Provo. You both qualified for the loan to buy the house, and now you want to move to eastern Tibet to get far far away from her. But you've got to sell your home first. You and Lindsay 2.0 are BOTH the owners listed on the title as 'joint tenants'. Great, just great. Now you have to deal with her and get her to sign the listing and closing papers.

Joint tenancy is a way to hold title to the property when there is more than one owner. If one of the owners were to die, the property would automatically be owned by the surviving party. Divorces aren't generally pretty for anyone. We real estate agents are used to doing transactions where the parties are either in the process of divorce or getting a divorce. IF the parties aren't divorced yet, the two (or three, or multiple owners) MUST all sign the listing agreement, and the sales contract. Here comes the nasty part: When the property closes, all the owners must agree to how much of the profits each owner gets. If the parties are still speaking, it's usual for the proceeds to be split 50-50.

But what if the divorce has been filed in court? The judge will determine who gets what amount of the profits once the home is sold. What if you put in all the original funds for the down payment and the new kitchen and Lindsay 2.0 didn't provide any money during your stay in the home? Maybe the judge will let you get reimbursed those funds and will take that amount from L 2.0's proceeds...or maybe not. You can still list and sell the home, but the money will sit at the title company after the closing unless there is a written order by the court as to how the proceeds are divvied up.

To even thicken the soup, let's say your dad had to help the two of you buy the home and all three of you are on the deed as joint tenants. Again, if there's not a divorce proceeding underway, the three of you can figure out who gets what percentage of the proceeds and instruct (in writing) how the money is to be split up at closing. If there is a divorce, the judge will have instructions for the title company at closing as to how to split the profits.

It's always much easier and cheaper to agree to sell and agree on how the profits are split before a divorce is filed, if you and your partner(s) in the home are still being civil to each other. The minute a judge gets involved, the costs to sell go up because you all have to hire attorneys to get you what you want in the divorce settlement of assets. I'm not saying DON'T talk to an attorney if there's an impending divorce. Certainly, get all the opinions you can before you sell under emotional duress.

2010

You’ve heard the phrase, “Buy low, sell high” (as in how to make money in the stock and metals markets). The same concept holds true in real estate. You always want to try and buy a home for the lowest amount you can and try someday to sell it for the highest price possible.   Guess what? Home values are low, so why aren’t you buying?

“If you don’t own a home buy one. If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.” John Paulson, Sept. 28, 2010 .

This guy bet against the sub-prime loan market in 2007 on behalf of his clients and made them billions. Now he’s predicting double digit inflation and gold prices up to $4000 an ounce by 2012. He’s telling everyone to buy buy buy real estate, too.

On the other side of the real estate coin, if you’re selling right now you’re most likely watching your equity erode right before your eyes. Prices have come down in Utah from the peak highs of real estate values in 2007 to between 25-40% less right now.  But if you’re planning to buy after the sale of your home then you get to take advantage of how much lower prices are right now…and the phenomenal mortgage interest rates. Those rates won’t be around if double digit inflation comes to town and goal soars at $4000 an ounce.  My new adage is, “It’s gonna hurt selling in this buyers market but you’re going to make up for your loss on your next purchase because you get to be the buyer. You lose, then you win and it should balance out in the end as your future investment.”

We are being bombarded with data and news these days about real estate every hour on the hour. Here’s a reality check from just two months ago: there were @1800 properties for sale in Park City at the end of the summer, 165 had offers pending, and 350 new properties had been listed in under 30 days.  That’s an increase of almost 20% of inventory in one month. And what is this inventory? Many, many foreclosures and people forced on the market who are facing foreclosure (short sales). 

The odds are right now if you’re thinking of selling, make sure you enter the market with a very aggressive asking price because within weeks there will mostly likely be for sale signs popping up all around you of homes with lower asking prices. Utah is thick in the foreclosure mess and we’re not slowing down in the numbers of people losing their homes. The more foreclosures on the market the less you will be able to get for your own home and that shiny gold luster of your bungalow is going to be permanently tarnished by this market.