Paula Higman Real Estate

Tuesday, January 31, 2023

3 Ideas That Could Fix Major Flaws in the Home Loans Process

My friend and Loan Officer Lisa Mabey said, “Customers want everything to fall into place.”

Yet when it comes to home loans, that doesn’t always happen. Buyers have to navigate a complex system, often on rushed deadlines, while dealing with a blur of paperwork. The status quo could use some renovations.

1. Agents and loan officers need to act as a team

One straightforward way to reduce buyer stress is for the agent and loan officer to work in lockstep. Timely, proactive communication goes a long way toward building trust.

Developing that relationship helps me as an agent, too, so I never feel out of the loop on a client’s loan process. I personally believe that the success of a loan closing often gets placed on the individual loan officer rather than the institution they work for.

“That trust and confidence the consumer gets when they know they’re in the right place, it just leads to the client being able to seamlessly go through the process without worry,”

2. Let tech remove early-stage barriers to entry

Technology has the power to solve any problem, but it can’t solve every problem. Automation works best in moderation, helping take care of repetitive labor.
“It’s just good business that we create a place that caters to all the ways a customer starts their real estate journey,”
In real estate, that tends to consist of scheduling and paperwork. For instance, since many people refuse to pick up the phone these days, a virtual scheduling platform for home tours has appeal. On the lending side, tech can simplify and speed up pre-qualifications and pre-approvals.
I know that 41% of homebuyers get pre-approved before selecting an home, so I can make the selection process more seamless by connecting both parties.
Then I can focus my energy on the most important task: finding the best home. This way, the transaction is still grounded in human interaction. I talk about loan officers as real people who give real answers. That’s still how deals get done.

3. Provide consistent feedback to build healthy partnerships

I used to be skeptical of collaborating with multiple lenders. Today, I regularly work with six big partner lenders.

What changed my mind? The power of feedback.

Partnerships offered flexibility, so if one lender didn’t have loan options that worked for a particular buyer, I immediately know of another lender that did. Inconsistency remains one of real estate’s biggest challenges. Sell five houses one month; sell zero the next. When a partnership exists between me, a tech company and lender, being able to give and receive feedback leads to greater consistency.

“Being a great partner means you buy into the entire partnership. It’s not leading with your hand out,” I believe. “It’s always about what can I do for you first.”

Regardless of price point, our team is united in their efforts to support the client, support each other, and get the job done in the best way possible. Paula Higman Real Estate is a unique team of talented and diverse individuals with a passion for success and client satisfaction.

Contact Paula Higman today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.


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5 Easy Ways to Refresh Your Home for 2023

Whether you begin your post-holiday home “reset” the day after Christmas or later into 2023, going through your home with a critical eye as we enter into a new year is a great way to prepare yourself and your home for the year ahead.

Today we’re diving into five tasks that you can do around your home to simplify and reset after the holiday season.

1. Declutter

Start by going through each room of your home and getting rid of any clutter or items that you no longer need or use. Start by doing a sweep of your home, keeping an eye out for expired products (such as beauty products or medications), excess of the same kinds of items, things that you haven’t used or use less than once a year, etc.

An easy way to make faster decisions when you’re decluttering is to make four piles of items. – trash, donations, give-away (to friends or family), and keep. Then once you’re done, you know exactly what to do with each category!

When you reduce the overall number of items in your home, you not only reduce the stress that can come along with too much clutter, but you also make it much simpler to clean your home on a daily basis.

2. Deep Clean

Speaking of cleaning, be sure to give your home a thorough cleaning at the beginning of the year. We’re talking baseboards, dusty corners, scrubbing toilets, wiping down cabinets, etc. Leave no surface untouched!

By doing a deep clean, your home will feel fresh for the new year, but also will be much easier to maintain a clean-feeling home with regular vacuuming, wiping counters, etc.

3. Transition Decor

New year, new home decor! After the holidays, there is something refreshing about taking down the seasonal decor and replacing it with either your year-round decorations or a more general winter theme. Regardless of what kind of decorations you choose to put up in place of holiday trimmings, use this time to evaluate where you may want to change or update your home’s decor. This could include adding new throw pillows, curtains, or artwork, or repainting a room in a fresh, new color.

4. Take Stock

After traveling, or hosting for the holidays is the perfect time to take stock in your home. This means taking a look at your linens – for example – to assess your towels and sheets. Do you have enough? Is it time to replace anything?

If you take the time to make these decisions before you’re in a towel or sheet emergency, you’ll be prepared for anything in your home over the next twelve months.

5. Set Goals

A new year isn’t just about resolutions for yourself personally or professionally. It’s also a great opportunity to set goals and make plans for your home as well. Are you wanting to make any renovations to your home? Maybe you want to add a deck or redo your kitchen. Whether big ticket changes or budget-friendly DIY projects, the start of a new year is a good time to plan for these.

As you’re making plans, don’t forget to start thinking about budgeting for your home projects as well. When you consider your budget in advance, those projects can feel more intentional and fun rather than stressful.

Contact Paula Higman today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.


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Sunday, January 29, 2023

How to Choose the Right Commercial Property for Your Business

Evaluating and selecting a commercial property for your business or organization is no small feat, and it can have an enormous impact on the trajectory of your organization going forward. Even so, there is no one-size-fits-all approach to finding the right property.

Instead, the process is highly dependent on your needs, priorities, and budget. But you don’t have to brave this potentially overwhelming decision alone. Today we’re diving into some of our best advice when it comes to choosing the perfect commercial property for your organization.

1. Location

The first thing to consider is the location(s) you may want to move to. You should choose a location that is easily accessible to your target customers or clients, and that is in a safe and reputable area.

Accessibility doesn’t just refer to the availability of parking and proximity to other similar businesses that your customers may frequent. You’ll want to ensure that any property you’re considering as a move for your business has adequate accessibility for any customers who may have disabilities or other difficulties with getting into or out of your building.

Additionally, consider the reputation of the area you may purchase or lease a property. Whether or not you intend for them to, your customers, staff, and vendors will take the surrounding area into consideration when they think of your business or organization- so choose your location wisely.

2. Size

Equally as importantly, you’ll need to ensure that the property you select for your move is big enough to accommodate your business operations and any projected future growth. It is imperative that growth is taken into account, because a purchase or lease is a long-term investment, and reselling or breaking a lease could result in major financial loss should you realize that you’ve outgrown the space too quickly. w

You should also consider the layout of the property, its current condition, and any necessary renovations or updates. Potential renovations will also play a part in the affordability of the space, and you’ll need to take those into consideration when calculating the costs of each potential property you look at.

3. Price

Likely at the very top of mind when any business is deciding to make a move, price is often a major deciding factor in where a business chooses to purchase or lease property.

You should consider the cost of the property, but don’t neglect the other associated costs including property taxes, utilities, and any renovations or updates needed to make the space workable for your business.

You should also consider the potential return on investment (ROI) for the property, as well as any potential tax benefits. These may not reduce the sticker price of renting or purchasing a property upfront, but they will be benefits that will be helpful down the road.

Consider a Commercial Real Estate Broker

Choosing the right commercial property for your business is an important decision that can significantly impact your business’s success, and it’s important to carefully consider all the factors involved.

For many business owners, the process of selecting a commercial property is a necessary one, but maybe not one that they have expertise in. That’s where working with a professional real estate broker can not only level up the entire process but can take the pressure off of the business owner while all the details are handled expertly – Identifying properties, negotiating contracts, securing financing, etc. They’ll ensure your needs are met and that you understand the entire process.

No matter what you’re looking for, consider working alongside commercial real estate experts – to find your business’s next home.

Contact Paula Higman today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.


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Saturday, January 28, 2023

January, 2023 | Market Analysis | Fourth Quarter 2022

January 2023 –

After two of the most volatile years in real estate, triggered by

the global pandemic that was COVID-19, sales numbers are returning to pre-pandemic levels. Sales prices are not.

The past two years caused huge swings in market reports as the mandated isolation to

prevent the spread of the virus forced offices to close, employees to quarantine, and

stock in online conferencing services to skyrocket. Those trends are all reversing directions,

and the Park City real estate market is reflecting those changes as the market returns to a

more “normal” seasonal pattern.

Listing inventory is rising – In December ‘21 only 539 residential properties and lots were for sale. By December ‘22, that number rose to 1,263 (but was still 37% below the Dec-2019 figure of 2,011)
Prices are starting to level off – Within Park City limits, sale prices jumped 35% during 2021. In 2022 they continued to increase, but at half that annual rate.
Mortgage interest rates are trending downward – In late October, the average 30-year fixed rate was 7.08%.
By the end of December, it had dropped to 6.48% and was headed down more. Buyers are becoming more hesitant to make instant offers above the asking price and sellers are reacting by lowering those asking prices albeit at a slower pace. In Q3, 763 listings had at least one price reduction. In Q4, that number was 375. Price reductions in Q3 averaged 6.4% versus 5.7% in Q4.

Sale prices for single-family homes in the primary market area of Summit and Wasatch Counties

as reported by the Park City Board of REALTORS® Multiple Listing Service for the year

ending December 31 showed moderate increases in both averages (Up 2%) and median (Up 3%).

For the year earlier, those increases were 28% and 24% respectively.

The rate of sales (number of units sold) dropped 29% for single-family homes and 27% for

condominiums from the year prior. Fears that the country might be headed into a recession,

reinforced by a continuing push by the Fed to raise interest rates and stop inflation, and other

negative indicators (gas prices), slowed sales across the region. However, an assisting driver of lower

sales numbers continued to be the lack of inventory – agents cannot sell what owners will not offer

for sale.

Park City neighborhoods vary widely in price comparison and the Q4-year-over-year results continued

that pattern.

For Single Family homes, all but one of the major areas that make up the greater Park City market

showed drops in units sold through the 4th quarter of 2022 versus 2021. The exceptions were in

Silver Creek Village where a boom in new construction pushed sales totals 200% higher than in 2021,

and in the South Jordanelle area where the new Benloch Ranch development accounted for 68 of the

85 sales in the $1 to $2 million range. Interest is growing in anticipation of the Mayflower Mountain

resort project opening for the 2024-25 ski season. Sales in the Jordanelle area increased 78% over

the previous year, albeit at a lower median price point of $1.6 million, down from $2.3 million the

year prior.

Condo sales across the entire market range followed a pattern similar to single-family homes. Total

sales volume declined in all areas primarily due to a lack of inventory to sell. Within Park City

limits, condo sales volume was down 44% but median sale prices rose 15% to $1.5 million.

In the Snyderville Basin, total sales volume climbed 32% because average and median prices both

rose by nearly 50%.

The inventory of vacant land listings dropped from 902 in mid-2019 (before Covid hit) to 275 in

spring 2021 (just before vaccines became available). That number has increased steadily through

the end of 2022 when we had 525 listings. Some buyers who bought vacant lots in years past

with the intention of building in Park City found years later that the cost of construction (materials

and labor – both in short supply because of Covid)) had increased so much that they delayed

construction hoping for costs to return to normal. Some are putting those lots back on the market.

At the same time, the increased demand for housing has spurred developers to break ground on

projects that were delayed by the pandemic as well. The combination of those two trends is reflected

in the number of new-construction listings which increased by 240% from 2019 to 2022.

Comparing the 12 months ending December 31, 2022, to the same period in 2021:

New residential listings (single-family and condo) year-to-date are showing signs of recovery after a lengthy period of decline. For the twelve months ending December 2022, total new residential listings were 2,997, down just 80 from the same period the year before.
The market is cooling off after an overheated two years of sales. PCMLS members signed 2,140 purchase contracts in 2022, 43% fewer than the previous year (3,765)
With New Listings running slightly higher than Pending contracts, available inventory started to increase. Only 265 residential properties were active at the end of 2021. That number boomed to 738 as of December 31, an increase of 178% year over year.

Overall, how did the local market fare? Here is our take on the total year-long results reported on a

rolling year-over-year basis for the period ending December 31, 2022. (Note: only areas with 10 or

more sales are considered in the tally and reporting.)

A Guide to Purchasing Luxury Real Estate in Park City

#1: UNDERSTAND "THE REAL ESTATE SEARCH."

Technology and the internet have changed how luxury home buyers find properties for sale. The current statistics show that nearly everyone starts their search online. Potential buyers research the real estate market, and home buying tips, and analyze the housing market, and comparable properties. I will tell you I have not had a client in the past three years that have not used the internet to search for their future home. However, you should know that not all search sites are the same. This site updates every five minutes, but other real estate websites may take 24 to 72 hours (or more) for properties to populate.

#2: PHOTOS MAY BE WORTH 1,000 WORDS – OR LEAVE YOU SAYING HUH?

Listing brokers should make the property shine online to get as many showings as possible. Many brokerages have a professional photographer who shoots home photos and manipulates the images by boosting colors and using lenses that make the rooms look more significant than in real life. In contrast, other brokers take pictures while holding their cell phones which may be crooked and provide poor-quality pictures. Nevertheless, cell phone photos could be an opportunity for you to find a hidden gem. Another option for out-of-town buyers is to preview properties via a live video application to help get a better feeling for spacing and views.

#3: WORK WITH LOCAL EXPERTS AND HIRE RELIABLE ADVISERS.

It would be best if you worked with local appraisers, attorneys, title companies, real estate brokers, and possibly lenders that understand the local nuances of Real Estate. In Park City, there are as many as 25 micro-markets that all have their history, which plays into pricing. Recently, an agent was "helping" their buyer find investment properties in Park City and put several homes and condos under contract. Because the agent wasn't familiar with the area, the buyer didn't have a listing history or relevant properties, and the negotiation process went poorly. Several of these homes never closed because the agent didn't understand the local market. As a Park City Realtor, I like to say, "I've got a person for that" - whether you need an entire remodel or something as small as a countertop repaired, I always have someone who will care about the issue.

#4. DO NOT POST ABOUT THE HOME YOU LOVE ON SOCIAL MEDIA.

Social media is not new anymore, but sometimes buyers get too excited about buying the home they love on their social media. Once negotiations open, the buyers and sellers often look up the other side on Facebook, LinkedIn, Instagram, and many other social media platforms. If you post too soon, you could hurt your negotiating power.

Another quick tip is if you get separated from your loved one during the property showing (you are looking at a bedroom while your loved one is still in the living room). If the listing agent asks you about what you do for a living, what other homes you're considering purchasing, etc. Do not answer them directly, but it is acceptable to say you need to get back to your Realtor.

#5: WHAT'S GOING TO HAPPEN BY THE YEAR 2024?

Look at the view and possible access to your property. Some time back, a real estate developer didn't realize that an easement was going down the middle of his property; this added to lengthy and costly negations with the adjacent landowner.
Ask your broker or title company for plat maps of what types of properties can be built in your neighborhood that could steal your views. Around the time I originally wrote this article in 2017, I had some clients who purchased a home next to about 15 acres of open land. I told them that that area could be developed in two or fifty years - no one knew. We listed their home for sale three years later because a developer had started building homes right behind their property.

#6: PARK CITY LUXURY PROPERTIES – IS NOW A GOOD TIME TO BUY?

Sure - I had a great friend who once told me there's never the "right time" for life-altering events, and if you don't do it now, you may never do it. However, life is short, and there's no better mountain town than Park City and the surrounding area. Most of the people that live here visited a few times, purchased a vacation property, then moved here full time. So it's okay for you to do that too!

There's one thing we know for certain ~ if you wait to buy until next year, you'll be one year older.

#7: BE READY TO SHOW YOU HAVE THE ABILITY TO PURCHASE.

While this isn't usually the case, there are times that sellers or their agents will want to ensure you can purchase when making an offer on their property. Do not be offended by this request, as it will allow you to negotiate from a position of power. On the same note, do not provide a dollar amount you have available or how much you are pre-approved – have your banker or mortgage broker say you can purchase a property in the price range you are searching.

#8: CASH IS KING, BUT NOT ALL SELLERS ARE DESPERATE.

Fifty percent of Park City home buyers purchase their property with cash when buying a luxury home - nine out of my last ten transactions have been cash buyers. Cash purchases are often more straightforward, but it does not mean the seller will give the property away. Many luxury home sellers like you are financially savvy, so we need to find a starting place for the offer that won't be considered a lowball offer. Low-ball offers frequently start negotiations on the wrong foot and kill the deal before it even starts. If you are not paying cash when looking for luxury homes for sale, some lenders have bank statement programs, and the lender will be able to provide a pre-approval letter.

#9: EVERY DEAL IS DIFFERENT ~ BONUS.

Every real estate transaction I've ever done is different from the others. For example, a seller in Park City who held up a multi-million dollar transaction for two months will be held up for the seller to retrieve a few hundred dollars worth of personal items. I sometimes use a great inspector that can throw some kinks into the deal, which takes a few extra days to figure out, and often the seller may be traveling out of the country, and hard for the listing agent to contact. But, cool, calm, and a level head always prevail to get past the uniqueness of every real estate deal in Park City.

Contact Paula Higman today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.


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Friday, January 27, 2023