Park City, Utah is nestled in the Wasatch Mountains, this community offers all the benefits of resort living, with conveniences and opportunities of a metropolitain city. The town sits at 7,000 feet above sea level and is a short 30 minute drive to Salt Lake City International Airport, allowing us to remain one of the only resort destinations worldwide that can provide such advantages.
Over the past several years we’ve seen real estate prices climb higher and higher due to a limited supply and an increased demand, but a new factor is pushing prices up even further: the skyrocketing price of building materials. So, what’s behind these increased prices, and, more importantly, when can we expect some relief?
We’re all painfully aware that the pandemic triggered widespread supply chain issues, and building materials have been no exception. Supplies of steel, aggregates, and cement have dried up, but the trend might be most noticeable when it comes to lumber.
Nearly every aspect of home construction necessitates lumber – framing, trim, doors, flooring, windows, railings, and cabinets. The pandemic shut down lumber mills across the country, and supply chains were slowed by a shortage of truck drivers. Low-interest rates and a lack of existing inventory increased demand for new construction, and all that new construction increased demand for lumber. It’s a perfect storm of demand outpacing supply.
According to Markets Insider, lumber prices rose by over 400% between May of 2020 and May of 2021, with the price per thousand board feet going from $327 to $1,645 during that time span. That figure has been corrected since May, but, as of this writing, prices are still substantially higher than this time last year.
Building material supply shortages, coupled with increased prices for land, means buyers will continue to see high prices for new builds for at least the foreseeable future.
Last year, home price inflation reached 11.4%, but experts predict a slowdown to 8.1% through 2021. By 2023, price growth is expected to slow to 4%. To put it another way, the surge in home prices is expected to slow, but it’s going to take a few years as supply chains and workforces return to pre-pandemic levels of productivity.
Vacation with Peace of Mind
Ready to finally take that extended vacation this summer? Since it’s probably been a minute (or 751,680 minutes) since you’ve last traveled, here are a few helpful reminders for ensuring your home stays mishap-free while you’re away.
Set Your Thermostat If you have an AC, heat pump, or evaporative cooling unit, make sure to leave it on to prevent mold, mildew, and other conditions caused by heat and humidity. Adjust your thermostat to 4 degrees higher than you would if you were home, which will reduce energy use while ensuring that the unit runs periodically. If you can, invest in a smart thermostat, which will allow you to monitor and control conditions at home via a handy smartphone app wherever you are.
Turn Water Off When you are going to be away for an extended period, it's a good idea to turn off your main water line. This can prevent plumbing leaks from occurring in your absence, which otherwise could result in significant water damage and costly repairs. After shutting off the main water valve, let your kitchen and bathroom faucets run dry, ensuring that no water is left in the pipes.
If shutting the water off isn’t an option due to sprinklers or other considerations, consider investing in some water leak detection sensors. Modern water detectors connect to your smartphone and will notify you if a leak is detected, and since kits start at around $40, they can be a smart investment whether you’re traveling or not.
Double Down on Smart Security As with water sensors and smart thermostats, other smart security devices are now more affordable than ever. To give the appearance that someone is home, use smart plugs to toggle lights, fans, or radio while you’re away. Also, consider a smart security system – modern systems feature contract-free, affordable monitoring, quick DIY installation, and remote monitoring notifications.
Wrap Toilet Bowls with Plastic Wrap By wrapping your toilet bowls, you are preventing sewer fumes from entering your home. Leaving your toilets unwrapped can result in a less-than-pleasant "welcome home" smell when you walk in the door. Just be sure to mark the cling wrap with a big, bold "X" or other warning symbols as a reminder for when you return.
Empty the Fridge, Take Out the Trash No one wants to come home to a moldy, stinky science experiment in their fridge, so make sure to dump anything perishable from the refrigerator and take the garbage out. Your future self will thank you.
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 Real Estate 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.
Perhaps you've seen the signs in front of some homes: "For Sale by Owner." The assumption for most of us is that this seller has decided to avoid paying agent fees and is hoping to pocket those fees. Is this a good idea though?
Agents' fees are just one of the many costs of selling a home. Let's take a look at these and other costs you're likely to encounter when you sell your home.
Real estate agent's fees. Real estate agents usually charge 5-6 percent of the home purchase price. (Be sure to ask potential agents about the commission fee. Agree on terms in writing.) Seller's agents are likely to split commissions with buyer's agents, who usually don't charge clients.
If you're thinking about trying to sell your home yourself, be mindful of all the things you'll have to do and all the costs involved: marketing and signs, photography, hosting an open house, and legal representation for paperwork. There's also the real estate agent's extensive knowledge that helps them negotiate the best price. Are you up for all that? Having a real estate agent also opens you up to a wider pool of potential buyers by listing your home on the MLS (multiple listing services).
Property taxes. Sellers owe a prorated share of property taxes. That figure could run from zero to several thousand dollars, depending on the due date of the taxes. You might also face a capital gains tax, depending on how much profit you make for your home.
Mortgage payoff. You'll have to pay off your mortgage but count on the payoff amount is different from the balance due listed on the last mortgage statement because of interest charges.
Title policy for a new homeowner. The seller sometimes pays for a new homeowner's title policy at an average cost of $1000. Also, if a title search reveals a lien on a home, that lien should be settled before you can sell the home.
Home repairs. You may have to shoulder the costs of major home repairs to make the sale go through. Otherwise, you might have to discount the sale price. Another option for an older home is a home warranty, priced from $300-600 for a one-year warranty. This would cover most of the repair costs if something major breaks down after the sale.
Moving costs. Even if you pack up your home yourself, there are still costs for materials and movers. The cost of moving will vary, but count to pay on average $1250 for a local move and $4890 for a long-distance move.
Home staging. Let's say your home doesn't sell as quickly as you'd hoped. You may want to enlist the services of a professional home stager. These pros will come into your home, assess its best selling points, and advise you or else do the work themselves to present your home to its best advantage. The home stagers will not only rearrange furniture and change the interior but may rent furniture. Costs could be from $500 to $2000.
Miscellaneous buyers' costs. While buyers customarily pay for mortgage fees, appraisal expenses, and home inspections, the seller sometimes offers to pay some of these closing costs to seal the deal. This could add up to about 2-5 percent of the selling price.
It's helpful when selling your home to make a list or a spreadsheet of all possible costs you're likely to incur to avoid surprises during the selling process. A good real estate agent will also make the selling process a lot smoother.
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 Real Estate 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.
Stimulating growth in economically-disadvantaged communities is a provocative aspiration — one that requires collaboration and support from the foremost experts in community development.
The Federal Opportunity Zones Program is an innovative reinvestment system established through the Tax Cuts and Jobs Act of 2017. Through temporarily deferring taxes on capital gains reinvested into designated Opportunity Funds, researchers estimate that the program may infuse rural and underserved markets with an estimated 6.1 trillion dollars.
Opportunity Zones were drawn from low-income census tracts with poverty rates of at least 20 percent and median family incomes of no greater than 80 percent of the area median income.
The governor of each state nominated up to a quarter of their low-income census tracts to be certified by the U.S. Department of the Treasury as Opportunity Zones.
Additionally, governors were given dispensation to nominate up to five percent of moderate-income tracts that are adjacent to qualifying low-income tracts to be designated as Opportunity Zones.
Opportunity Funds invest at least 90 percent of their capital in qualifying assets in Opportunity Zones. Investors who reinvest their realized capital gains into qualified Opportunity Funds receive the following benefits:
A temporary tax deferral;
A permanent exclusion from taxable income of capital gains from the sale or exchange of gains accrued from an investment in an Opportunity Fund; and
A step-up in basis for capital gains, such that the basis of the original investment is increased by 10 percent if the investment in the opportunity zone fund is held for at least five years, and by an additional five percent if held for at least seven years. Therefore, those with assets invested for at least seven years will have 15 percent of their original gain excluded from taxation.
Real Estate
Opportunity Funds can invest in real estate projects, provided they build new construction or “significantly improve” existing structures.
Businesses
Opportunity Funds can also invest in businesses that perform the majority of their operating activities in Opportunity Zones.
Business Owners and Developers
Local employers have a new source of equity capital to access when looking to fund projects or expansions.
Investors with Capital Gains
Individuals and corporations benefit from deferring and reducing their capital gains tax liability.
If you would like more information call or text me today.
Let's face it – it's been a long winter, but brighter and warmer days are upon us. If you're the type of person who likes to be prepared, it isn't too early to gear up for lawn and garden season. Here are some tips to help you hit the ground running this spring:
Test the content of your soil with a kit. Soil test kits are designed to determine levels of PH, nitrogen, potassium, phosphorous, and other micro/macronutrients in your soil. An accurate test will tell you how to amend your soil for optimum growing.
Disinfect any tools that will touch vegetation to prevent the spread of bacteria, fungi, and soil pathogens. Soak lawnmower blades, shovels, trowels, rakes, and pruners for 30 minutes in a solution of 10% bleach and 90% water.
Tune up your lawnmower. If you didn't already do it in the fall, drain your lawnmower of old fuel. Add fresh fuel, replace the spark plugs, clean/replace the air filter, change the oil, and sharpen the blades.
Don't ignore the supporting cast. Service your leaf blower and trimmer according to the manufacturer's guidelines. Stock up on trimmer line.
Hand tools need love too. Sharpen the edges on your pruners, clippers, and digging tools. Lubricate any hand tools that have moving metal parts, then lightly coat the metal with mineral oil to prevent rust. Sand any rough patches on wooden handles. Use linseed oil to seal the wood and prevent shrinking.
Check fittings and filters on irrigation systems. Check the rubber washers on your hoses, sprinklers, and nozzles for cracking and replace if necessary.
Clean pots and planters to remove mold, fungi, and tiny pests. Use a brush and mild soap to clean, then rinse and let dry.
Inspect lawn furniture. Check wood parts for splintering, pests, rot, and other damage. Sand and repaint/restain these parts if necessary. Inspect cushions and covers and wash if possible.
Maintain fencing, gates, and other wood features. Replace warped or rotting pieces and repaint/restain where needed.
Some of these tasks may seem over the top, but knocking them out now while the weather is still less-than-ideal will give you more time to relax during the warmer days ahead.
For many of us, the past year has brought about a slew of unexpected changes. The pandemic didn’t slow rising home prices or increase the amount of available inventory in major metro areas, but what it did do was dispel the idea that all office workers must be tethered to a physical location.
With remote work becoming more and more normalized, many Americans are wondering why they’re paying exorbitant housing costs for less space, less privacy, and less stability. With that in mind, let’s take a glance at the most affordable places to live in the United States by cost of living index*.
Mississippi: With a cost of living index of 84.8 (the national average is considered 100), Mississippi has the lowest housing costs in the country and has held the top spot for years. You can expect to pay around $134,000 for a home, so if you’re looking for a new home town where your money can go further, Mississippi might be for you.
Oklahoma: Oklahoma has the second-lowest cost of living in the U.S, with an index of 86.1. You can expect to pay $142,000 for a home in Oklahoma, meaning you’ll be able to afford that tailgating rig sooner than you planned.
Arkansas: Coming in third is Arkansas. The cost-of-living index is 87.8, and transportation, housing, and health care costs are all lower than the national averages. It’s estimated that for a family to live comfortably in the state they would need to make around $44,571 a year. Arkansas also offers a screamin’ deal on milk at an average price of $1.75 a gallon.
Other states with a low cost of living are Kansas, Missouri, Georgia, Alabama, New Mexico, Tennessee, and Indiana.
*Cost of living indexes are meant to compare the expenses an average person can expect to incur to acquire food, shelter, transportation, energy, clothing, education, healthcare, childcare, and entertainment in different regions.
It’s a timeless and universal truth: moving is no fun. Ancient Polynesian seafarers, while nervously prepping outrigger canoes for uncharted trips across the South Pacific, probably groaned in frustration when they realized at the last minute that someone forgot to pack up all the fishing gear.
Sure, locating to a new place can be an exciting adventure, but the actual moving process can be stressful, costly, and full of surprises. Make your next move as smooth and simple as possible by avoiding these pitfalls:
Hiring a shady mover. Moving scams can run the gamut from bogus “moving deposits”, to bait-and-switch estimates, to overly-complicated contracts designed to nullify mover liability. You can steer clear of a less-than-upstanding mover by doing your homework. The Better Business Bureau, Angie's List, your state transportation regulator, and the U.S. Department of Transportation - and even your relatives, friends and neighbors - are all good sources of information about whether a moving company is on the up-and-up. Doing some homework online can save you a lot of heartache.
Failing to schedule your move well in advance. During the summer months, good moving companies are booked up quickly. Rather than waiting until the last minute, make sure your move is scheduled weeks - or better yet, months - in advance. You don't want to be scrambling to find a mover the day before you're supposed to head out.
Packing too much stuff. Do you really need those old boxes of baby clothes that you haven't laid eyes on since your 6-year-old was in diapers? Before you move, "edit" your belongings. Think about whether you can trash some of your possessions, donate them to charity, or give them away to friends and relatives. Consider holding a garage sale to clear out some of the clutter. If you haven't seen, worn, or used something in a year, think hard about whether you need to keep it - and whether you need to haul it to your new place.
Ignoring the need to pack ahead of time. You'll find very few people who'll say that packing is fun. In fact, a survey commissioned by SpareFoot found that people who moved in the past year identified packing and unpacking as the biggest hassle in the process. (Our ancient seafarers would probably agree.)
You can lessen the load by beginning to pack well before moving day comes along. Start by boxing up stuff that you won't need right away - for instance, if you're moving in the summer, pack up your winter clothes so that they're out of the way. If you get down to the wire and need help with packing, enlist friends, neighbors, relatives, or colleagues to lend a hand. Just make sure you have plenty of pizza and cold beverages on hand. If you can't rustle up any free help, consider hiring laborers to do the packing for you; that may be a small price to pay to alleviate moving-related stress.
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 Real Estate 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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Discover the advantages of downsizing and embrace the mindset of making less into more.
Less Environmental Impact
Downsizing into a new home gives you an opportunity to find a home that’s just right for you and also helps your surroundings by consuming fewer resources. Continue to reduce impact by walking or biking to local establishments. Enjoy the great outdoors and exercise, while lowering the footprint and showing more love to mother nature.
Lower Utility Costs
With less space, comes lower costs on utilities to power, heat and cool your home. Be sure to learn about your home’s Home Energy Rating System (HERS) Index, which calculates a home’s energy efficiency and is the industry standard for assessing a home’s energy performance.
More Time for Leisure
Make the most of your free time by traveling to places you’ve always wanted to experience, checking items off your bucket list created over the years, and spending more time making memories with loved ones. Whatever you choose to do, always find time for the things that make you most happy.
Opening Up a New Life Chapter
As one long chapter of life closes, another exciting, new chapter begins. Enjoy every minute of well-deserved free time to do whatever your heart desires.
Some of our homes are the perfect choice for downsizing and transitioning into retirement. With less stress and more time at our disposal, you can spend time enjoying the beauty of nature and the new chapter in your life. To learn more about Park City, visit me at
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 Real Estate 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.
Insure that you have the best representation when buying and/or selling in The Colony. Contact Paula Higman Real Estate Park City at 435-602-8228 For a property tour and more information about Heber City and the surrounding areas.
Set Your Thermostat
