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Turning Houses into Homes®
Table of Contents
Realtors play crucial role for new-home buyers
Features
p. 20
10 A Real Estate Market Like
®
No Other
Dave Anderton 14 Real Estate is the Star of this Celebrity-Studded Series
Ally Stegman 20 Realtors® are Even More Vital to New-Home Buyers
Melissa Dittmann Tracey 24 Make Certain No Other Agency Agreements Are in Place
Holly Rawson
Columns 7 Code of Ethics in Action Alicia Holdaway – President’s Message
Departments 8 Happenings 8 In the News 28 Housing Watch
On the Cover: Cover: andreykr©/ Adobe Stock Photo left: Image licensed by Ingram Image
This Magazine is Self-Supporting Salt Lake Realtor® Magazine is self-supporting. The advertisers in this magazine pay for all production and distribution costs. Help support this magazine by advertising. For advertising rates, please contact Mills Publishing at 801.467.9419. The paper used in Salt Lake Realtor® Magazine comes from trees in managed timberlands. These trees are planted and grown specifically to make paper and do not come from parks or wilderness areas. In addition, a portion of this magazine is printed from recycled paper.
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The Salt Lake REALTOR® (ISSN 2153 2141) is published monthly by Mills Publishing, located at 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106. Periodicals Postage Paid at Salt Lake City, UT. POSTMASTER: Send address changes to: The Salt Lake REALTOR,® 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106-4618.
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Jennifer Gilchrist Utah Key Real Estate
President Alicia Holdaway Summit Sotheby’s
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Tony Ketterling Equity Real Estate John Lucky Coldwell Banker Residential
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Treasurer Rob Ockey Century 21 Everest
Mary Olsen Utah Key Real Estate Sophie Reece Berkshire Hathaway
Past President Scott Robbin Summit Sotheby’s
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Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com
Managing Editor Dave Anderton Publisher Mills Publishing, Inc. www.millspub.com President Dan Miller Art Director Jackie Medina Graphic Design Ken Magleby Patrick Witmer Office Administrator Cynthia Bell Snow
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Salt Lake Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions expressed by writers and persons quoted in articles are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®. Permission will be granted in most cases, upon written request, to reprint or reproduce articles and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs. While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication. 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.
Code of Ethics in Action We all understand that when we sign up to be a Realtor®, we are agreeing to uphold the National Association of Realtors®’ Code of Ethics. You probably know you are required to take the Code of Ethics course every three years. But do you think about it beyond that? It’s one thing to read the words on a page, it’s another thing entirely to live them out in action. It’s in markets like today’s, that we start seeing just how important our Code is and the universal benefits of upholding it! According to NAR, “the Code ensures that consumers are served by requiring Realtors® to cooperate with each other in furthering clients’ best interests.” Think about that for a moment. In 1913, over 100 years ago, Realtors® recognized that in order to truly serve our clients’ best interests, we needed to work together. There are 17 articles within the COE and they’re broken down into three sections: Duties to Clients and Customers, Duties to the Public, and Duties to Realtors®. The preamble, in my mind, defines a Realtor’s® value and establishes the ‘ideal’ of how real estate should work. Call me cheesy, but I get goosebumps when I read the entire preamble. It’s powerful! What we do on a daily basis is impactful! Don’t you forget that! The section of the preamble I want you to really think about is this: “Realtors®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow Realtors® a common responsibility for its integrity and honor.” On a recent podcast (Best Practices for Multiple Offers), I stated that we win and lose together. When a Realtor® bashes another Realtor® to a consumer, thinking it’ll get them more business, we all lose, including the Realtor® who makes those kinds of comments. When your client loses in a multiple offer scenario, and you talk poorly about the listing agent to your Buyer, we all lose. When you violate the Clear Cooperation Rule to pad your own pocket, we all lose. On the flip side, when you speak positively about the industry, treat your fellow Realtors® with respect and kindness, communicate often, and approach transactions with a win-win mentality, we all win. How about next time you receive multiple offers on your hot new listing, you genuinely thank every Buyer’s agent for their hard work and take the extra time to communicate with every single one of them after the Seller chooses the winning offer? That new (or seasoned) agent that sent the addendum incorrectly? How about turning it into a teaching moment instead of making them feel terrible about it? Our clients are watching. And judging. They’re judging us, and whether you like it or not, they’re judging us an entire profession. If we want to see longevity in our careers as Realtors®, we need to be fierce competitors who treat each other with kindness, respect, and grace, whether in person, behind a computer screen, or in private conversation. We are in this together!
Alicia Holdaway President
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
September 2020 | Salt Lake Realtor ® | 7
Happenings
In the News
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Utah’s Economy is No. 1 in the Nation Utah has the best economy of all states, according to a recent article in USA Today. “At a time when COVID-19 has sent unemployment soaring into the double digits across much of the country, Utah’s monthly jobless rate stands at 5.1 percent, less than half the 11.1 percent national unemployment rate for June,” the article stated. “Even before the coronavirus hit American shores, economic conditions in Utah were far stronger than they were in most of the country. From the first quarter in 2015 through the first quarter in 2020, Utah’s economy grew at an annual rate of 3.4 percent, compared to the 1.9 percent national GDP growth rate.” Rounding out the top five best economies were: Idaho, Washington, Colorado, and Maryland. States were ranked by four measures: economic growth, employment growth, the poverty rate, and the unemployment rate. Utah is one of only seven states with a poverty rate below 10 percent.
Utah’s Population Growth Gains Momentum Utah’s population is increasing faster than ever before. “It took 119 years for Utah to reach its first 1 million residents, from when the Mormon pioneers arrived until 1966,” according to The Salt Lake Tribune. “It then took 29 years to hit 2 million in 1995. It took another 20 years to achieve 3 million. And state officials have projected hitting 4 million in just 16 years, or 2031.” The Tribune noted that a bigger percentage of Utah’s growth is now coming from people moving to the state than from births. In addition, as other states struggle with the pandemic, civil unrest and an uncertain economic future, Utah’s outlook remains bright. Much of Utah’s in-migration are people from California. Looking at migration patterns in the U.S., “people have been leaving California and the Bay Area in higher numbers than they have been arriving,” according to Patrick Carlisle, chief market analyst in the Bay Area for real estate brokerage Compass.
8 | Salt Lake Realtor ® | September 2020
Konstantin L©/ Adobe Stock
New Homes are Larger New homes have gotten larger, many with a room dedicated to each family member, plus a guest bedroom. On the other hand, apartments are feeling more cramped. New single-family homes have increased 18 percent in size, or 143 square feet, over the last decade, according to new research from STORAGECafe. That’s about the size of a new bedroom, says STORAGECafe, which analyzed the evolution of new-home and apartment sizes from 2010 to 2019. The average size of a new singlefamily home built in 2019 was 2,611 feet. While new homes get larger. Apartments, though, have dropped in size by nearly 90 square feet over the last decade, averaging 1,156 square feet in 2019, according to STORAGECafe research. The main reasons for the boost in square footage in new-home construction are that builders are maximizing plot sizes and buyers are showing an interest in larger homes—a trend which could grow even more during the COVID-19 pandemic, STORAGECafe notes.
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A Real Estate Market Like No Other July makes history with the highest number of home sales in a single month. By Dave Anderton More jobs, more people, more growth. It’s a recipe for more home sales. And July’s sales numbers prove it. Across Salt Lake County in July, there were more than 2,100 homes sold, 15 percent higher than July 2019. July marks the first time monthly sales in Salt Lake County surpassed 2,000 closings since the MLS began keeping records. Historically, July is a slower month, according to Alicia Holdaway, president of the Salt Lake Board of Realtors®. Not this time. In July 2020, home sales were nearly 25 percent higher than the average number of July sales from 2015 through 2019. The pandemic pushed the spring home buying season to summer. And potential home buyers, who typically take vacations in summer, had nowhere to go. “I think as long as mortgage interest rates stay at
10 | Salt Lake Realtor ® | September 2020
these historical lows the pace is going to continue,” Holdaway said. “When it comes to the pandemic, our state has done a really good job balancing safety and the economy. Ultimately, we haven’t sacrificed one for the other.” A recent article in USA Today listed Utah as the No. 1 economy of all states, based on four measures: economic growth, employment growth, the poverty rate, and the unemployment rate. “Utah’s economy ranks as the best of any state,” the article said. “At a time when COVID-19 has sent unemployment soaring into the double digits across much of the country, Utah’s monthly jobless rate stands at 5.1 percent, less than half the 11.1 percent national unemployment rate for June.” Angie Nelden, former president of the Salt Lake Board of Realtors® and an agent with Summit Sotheby’s International Realty, said she is seeing more out-of-state buyers move to Utah. “I’m the
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buyer’s agent for two clients from New York right now,” Nelden said. “People are moving here because the lifestyle is so amazing.”
and a California condominium near the beach. Gahan’s winning offer included a $200,000 down payment, with no contingencies.
However, the home buying process can be frustrating as buyers compete for limited inventory. Nelden said home buyers must be resilient. Offering a compelling price is crucial. Fewer contingencies and allowing for additional time before a buyer takes possession of a home can make the difference.
“Yes, it is frustrating for buyers, but I tell them there is a home out there for them,” said Contreras, who advises buyers to pick up closing costs.
John Gahan of Modesto, Calif., purchased a $505,000 home in Daybreak in South Jordan without even visiting the property. After an exhaustive online search and several full-priced offers on Salt Lake area homes that weren’t accepted, Gahan chose a new model home for its unique architectural style and neighborhood amenities. Gahan said he is not one of those unhappy Californians escaping the Golden state, but simply wanted to be near his grandchildren. “I can tell you that we are not moving because housing is cheaper,” Gahan said. “We live in the Central Valley, and suburban Salt Lake is more expensive than our area.” David Contreras, a Realtor® with Pearson & Associates Real Estate Team Realtypath, who represented Gahan, said his client plans to split time between his new South Jordan home
12 | Salt Lake Realtor ® | September 2020
Unlike Gahan, high taxes and even higher home prices are reaching a tipping point for many Californians, like Connor Clewett, a 23-year-old Gen Zer, who owns Hustl Ventures Inc., a video production and marketing company. Clewett said he is paying $3,600 monthly rent for a twobedroom apartment in Brentwood, Calif. He has been looking at opening a satellite office for his business in Salt Lake City. “Salt Lake has bigger homes at more affordable pricing,” Clewett said. “Los Angeles is just extremely expensive for what you get there. Everyone is living on top of each other. Utah’s mountain vibe and community are stronger and more put together.” Yet, the influx of people to Utah worries some, who believe the Beehive state’s quality of life may suffer. Nelden noted that two of her clients recently sold their Salt Lake homes and moved to Idaho. “It’s a little bit slower pace there,” she said. Dave Anderton is the communications director of the Salt Lake Board of Realtors®.
I T TA K E S E X C E P T I O N A L A G E N T S T O B E
EXTR AOR DINA RY LE A DERS
Summit Sotheby’s International Realty would like to say thank you to our sales associates – Alicia Holdaway, Carlye Webb, Laura Fidler, Scott Robbins and Adam Kirkham – for their leadership and dedication to the real estate industry.
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summitsothebysrealty.com MMXX Sotheby’s International Realty Affiliates, Inc. All Rights Reserved. Sotheby’s International Realty® is a licensed trademark to Sotheby’s International Realty Affiliates, Inc. An Equal Opportunity Company. Each office is independently owned and operated. Copyright© Summit Sotheby’s International Realty 2020.
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Real Estate Is the Star of This CelebrityStudded Series The show has become a fan favorite among millennials and real estate pros of all ages who may find Hollywood’s latest take on their everyday routines entertaining. By Ally Stegman
In real life, real estate pros often find that social situations spark networking opportunities or even potential sales leads. The 10 young and hard-driving Los Angeles real estate agents featured in the reality TV series Love & Listings have turned the intermingling of business with pleasure into captivating entertainment. The show, which recently launched its second season, lets viewers see what budding love looks like among millennial agents in this high-end house hunting show with no shortage of luxurious, and sometimes scandalous, twists. As a bonus, you’ll get a glimpse inside spectacular homes that these agents tour with their celebrity clients.
14 | Salt Lake Realtor ® | September 2020
The cast of agents comes from diverse professional backgrounds. Many started out in the music, film, or food business before finding their footing in real estate. For Zac Diles, his footing was on the football field. The retired Houston Texans linebacker has the needs of pro athlete clients in mind when he shows properties to his past teammates and other athletes: a big pool for physical rehab, screening room to watch their games, and a big backyard to train in, a huge timesaver over traveling to other practice facilities. “I want to make sure when I’m showing NFL clients properties, it’s what they want. Because (continued on page 18)
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Hollywood Real Estate (continued) next thing you know, if it’s not, they’re in the locker room telling their boys, ‘Zac doesn’t know what he’s doing,’ or something like that. And if they start talking that kind of noise, I could lose all their business,” said Diles in the first episode. You’ll join celebrity guest clients like the singer Brandy and actor Laz Alonso as they tour homes with marble swimming pools that overlook the Hollywood Hills and built-in spa rooms view, and get a closeup look into what it’s like to work with the stars. The producer of the show, Tai Savet, is also the founder of Agents of LA, a luxury-focused brokerage that serves the real estate needs of some of the biggest names in the sports and entertainment industries. While working out of the office of his friend, rapper Ray J, Savet built his A-list network with the people coming in and out of the building. Eventually he got them to be on-camera clients for the show when they were looking to buy a new home. “You’re really smart when you can take what you do in business, and then brand it into a television show,” said Ray J. Savet, who launched his career as an actor. He said the show works because of the potent combination of drama and real estate. As a cast member and producer, Savet’s dedication to the real estate business is evident, as we see him and his team check up on listings late into the night and even during social gatherings. Another compelling story line belongs to agent Ajani Scott, who quit waitressing in LA after a year to focus on being a full-time real estate professional. Her hustle and creativity is evident as she works hard in every episode to prove to
18 | Salt Lake Realtor ® | September 2020
herself and others that she can hold her own in this super-competitive, high-end niche. Working with her client, Amber Rose, a model, Scott suggested and got permission for Rose to spend the night in the luxurious listing. The client got a taste—literally—of what life could be like in the home as the professional chef the team hired prepared a delicious meal in the gorgeous kitchen. “It really takes a certain amount of resilience, and work ethic, and not giving up, and remembering that as soon as it looks like you can’t do it, that is the moment when you have to push through. That’s what separates successful [agents] from people who just have a license,” said Scott. Friendships, relationships, and families fall apart and come together again through all eight episodes of season one. Because many of the agents work together on showings and sales, Scott eventually realizes, “We can get so much more accomplished if we’re friends and not foes.” The show has become a fan favorite among millennials and real estate pros of all ages who may find Hollywood’s latest take on their everyday routines entertaining, and maybe occasionally, inspiring. Learn from these agents’ successes and mistakes as they grow as people and professionals in the current season, which airs Mondays at 9 p.m. EST on VH1. Ally Stegman is an editorial intern at Realtor® Magazine. She is currently an undergraduate student at Columbia College Chicago majoring in journalism and fashion. Reprinted from Realtor® Magazine Online, July 2020, with permission of the National Association of Realtors®. Copyright 2020. All rights reserved.
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TOLL BROTHERS AGENT REWARDS: BECAUSE YOU EARNED IT You work hard, and deserve to be rewarded for it. At Toll Brothers, we recognize the value you bring to both us and our customers. As you help us build our business, we want to help you build yours.
ESCALATING COMMISSION PROGRAM First Sale: 3% Commission* Second Sale: 3.5% Commission* Third and Subsequent Sales: 4% Commission*
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Subject to change or cancellation. Program is limited to sales in Utah communities that are identified. Program is subject to the terms of the Toll Brothers Real Estate Agent Co-Op Program Policy. Subject to employing Broker’s approval and for licensed Real Estate Agents only. Real Estate Agent must register and accompany buyer on first visit. All required earnest deposits must have been paid. All contingencies must have been removed. *Commission based on base price of house, plus home site premium, less incentives if applicable. Program runs for 12 consecutive months for each Real Estate Agent. When multiple sales occur within a 12-month period, the actual payment of the escalated commission is dependent upon the sequence of the closings and not the order in which the Agreements of Sale were entered. Personal purchases do not qualify towards the rewards program. Commission level resets to 3% at the end of each 12-month period. †Relocation Referral Fee will be paid up to 35% of 3% Broker/Agent commission at close of escrow. See Toll Brothers Sales Representative for details. Certain restrictions apply and cannot be combined with any other promotions. Promotions may be discontinued at any time without notice. Photos are images only. Prices subject to change and do not reflect lot premiums or options. This is not an offering where prohibited by law. Listing Broker Toll Brothers Real Estate, Inc. 250522 8/20
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Realtors® are Even More Vital to New-Home Buyers Buying a new home is often more complicated than a traditional real estate purchase. Here’s how your services are deeply important to smoothing out this type of transaction. By Melissa Dittmann Tracey Buyers purchasing a brand-new home have extra concerns you need to address beyond those who are buying a resale property. For one, the transaction timeline for a home still under construction is likely to be much longer—often six months or more—so you’ll have to have a higher tolerance for managing the emotions of potentially impatient clients. New-home buyers also are at high risk of blowing their budgets, as the costs of custom upgrades to the blueprint floor plan can quickly mount. And if your client has made a purchase decision based on a model home, any deviation in the final product could spark a dreaded case of buyer’s remorse.
20 | Salt Lake Realtor ® | September 2020
Though your goal is to be a strong ally for any client, new-home buyers may need even more support through a more complicated transaction that could present more roadblocks to their satisfaction. You might consider taking a course offered by the Real Estate Buyer’s Agent Council devoted entirely to new-home construction and buyer representation, particularly as opportunities to work with new-home buyers increase. Construction is expected to be more robust across the country this year, with singlefamily housing starts forecasted to rise 5 percent, according to the National Association of Home Builders.
With inventory at record lows, more buyers may consider new construction as a way to flesh out their real estate options. Real estate professionals who work the new-home niche offer their insights for servicing these clients. Draw a Distinction between You and the Builder’s Agent Buyers may first be lured to new-home construction after viewing a model home online. The builder’s salesperson likely will hurry to their aid to help them consider their purchase options. But some buyers mistakenly assume that salesperson is their representative, when in reality, he or she works for and represents the builder’s best interests. Your job is to show the buyer that your goal is to help them make an informed decision that best suits their needs, not to simply sell a property, said Monica Neubauer, ABR, CRS, a sales associate with Benchmark Realty in Franklin, Tenn., and a REBAC instructor. You can help buyers understand many items, such as resale potential, strength of the builder’s asking price against comps, and the buyer’s negotiation
leverage — all of which are not the responsibility of the builder’s agent. Some buyers also may be misinformed about the commission structure, wrongly believing that they can subtract the payout for the builder’s agent from the overall purchase price. “The majority of builders compensate [their agent] out of their marketing budget,” said Jeffrey Gould, broker-owner of Jeffrey Gould Real Estate in Brandon, Fla. “This budget does not go hand-in-hand with the cost of any individual home, so the buyer would not be entitled to that reduction. In fact, from conversations I’ve had with [new-home buyers] who did not use a real estate professional, the opposite is true. It seems like their overall costs or concessions were not as good as the buyers who used their own agent.” Educate Buyers on New-Home Traps From the onset, new-home buyers need to know what they’re getting into. Here are some ways you can prepare them for the transaction. 1. Identify timelines. Gould makes buyers aware of all the steps involved, including
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How Long Does It Take to Build Single-family Home?
a new home. While it’s true that builders resist lowering a home’s price so they can maintain their market comparables, they sometimes are willing to add an incentive if buyers, say, use the builder’s preferred lender. “Currently, the inventory of available homes for sale is very low,” Gould said. “Builders know this and are setting their prices accordingly. In general, builders would rather offer concessions in other areas like design center options. … The key is to know your builders and the incentives they offer. There is a builder in my area that is offering design center options and is refunding up to $2,000 for out-of-town buyers’ air travel and hotel costs. Regardless of what the builder is offering in options, I always have the builder’s sales agent submit an offer to the builder in hopes to always do a little better.”
building permits, design selections, inspections, and walk-throughs. 2. Explain upgrades versus standard builds. Model homes often reflect the higher end of options available. The arched doorways, stone exteriors, window seats, and abundant fireplaces in a model home may not be part of a standard package. Will your buyers be satisfied with losing some of those features in order to control costs? “All builders are different, and all builders have their own baseline to what comes standard with the home and what is an upgrade,” Gould said. “As I am viewing homes with clients, I will keep asking the builder’s sales agent to explain what are upgrades in the home and what is standard.” 3. Understand pricing. The base price quoted by the builder does not reflect all the upgrades buyers may want to add. So the cost may jump thousands of dollars depending on your buyer’s requests. Gould asks builders to print out an estimate of the home with some of the structural items his buyers are considering. Most of the construction options and pricing are configured at a remote design center, so buyers may need to sign a purchase contract before solidifying their design selections. 4. Account for comps. Buyers can add too many upgrades when selecting countertops, flooring, and lighting. Though they’re buying new, your clients still need to understand comparable homes in the area to ensure they make a wise investment, Neubauer said. Find Points of Negotiation Other Than Price Negotiating is still an important part of buying
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See the Entire Project Through to the End Don’t vanish right after the purchase contract has been signed and then show up months later once construction of the home is complete. Builder’s agents sometimes unintentionally fail to copy you on their correspondence with buyers, Gould said. If you don’t make the effort to remain updated and part of the process, you could be uninformed when it comes time to close. Continually checking in with clients also will help them feel less alone. “I stay involved throughout the entire process,” Gould said. “Once we are under contract, I do let buyers know that a majority of the contact they will be having will be directly from one of the builder employees but to reach out to me if they have any questions or concerns. I contact my client every three weeks or so to just check in and see if they need anything. As we get within a month of completion, I do start to contact the buyer more often.” Gould also lets his buyers know he’s available to attend preconstruction updates, design studio visits, and walk-through meetings. “Buying a home is supposed to be an exciting time,” Gould said. “I try my best to make it as fun and exciting as possible. There are a lot of different hands involved in building a home: The builder’s sales agent, builder contracts, permitting, and the build process. At times, I find I need to act as a counselor or advocate for the buyer. Setting expectations early on in the process certainly helps in making the transaction smoother.” Melissa Dittmann Tracey is a contributing editor for Realtor® Magazine.
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Make Certain No Other Agency Agreements Are in Place By Holly Rawson Scenario A Buyer entered into a buyer-broker agreement with Realtor A in August. The buyer was not satisfied with the relationship. The Buyer was introduced to a new agent, Realtor B, and told the agent he was not working with the previous brokerage any more. The buyer signed a buyer-broker agreement with Realtor B. The agreement was signed, but the date was left blank. The Buyer looked at properties with Realtor B and eventually went under contract on a home, but canceled the contract and broke off communication with the agent for one month. The Buyer asked Realtor B’s broker to be released from his buyer-broker agreement. After reviewing the file, Realtor B and his broker noticed that there was no date on the buyerbroker agreement. They claimed this was an oversight. At some point after the agreement was signed with Realtor B, Realtor B and his broker became aware of the unexpired buyer-broker agreement between the Buyer and Realtor A, which predated the second agreement. Realtor B and his broker did not attempt to deal with the competing agency agreement.
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Realtor B and his broker decided not to release the Buyer from their buyer-broker agreement and did not contact the Buyer until an ethics complaint was filed. Findings The Professional Standards hearing panel found that Realtor B was in violation of Articles 1, 9, and 16 of the Code of Ethics. Realtor B violated Article 1 by not looking out for the client’s best interest. This was clearly shown by the lack of effort to contact the Buyer after the request to be released from the agency agreement was made, and by the violation of Article 16 – failure to investigate the status of the agency relationship the Buyer previously had with another brokerage. Realtor B was also found in violation of Article 9 for not dating the buyer-broker agreement at the time of signing. Conclusion When taking on a potential new client, take an extra step in ensuring there are no other agency agreements in place. Holly Rawson is the professional standards administrator at the Salt Lake Board of Realtors®.
JULY HOUSING WATCH July Sets a New Record for Home Sales “Ridiculously low mortgage interest rates and the delayed spring home buying season boosted July to a record setting month for home sales,” said Alicia Holdaway, president of the Salt Lake Board of Realtors®.
Home sales in July climbed to a record high as buyers took advantage of record-low mortgage interest rates. For the month, 2,098 homes (updated number) were sold, up 15 percent from 1,820 sales in July 2019. It was the first time monthly sales surpassed 2,000 closings in Salt Lake County since the MLS began keeping records. “Ridiculously low mortgage interest rates and the delayed spring home buying season boosted July to a record setting month for home sales,” said Alicia Holdaway, president of the Salt Lake Board of Realtors®. “In addition, more people are leaving major U.S. cities and relocating to Utah because of its quality of life and strong economy.”
The average 30-year fixed-rate mortgage dipped below 3 percent in July, according to Freddie Mac. “This year has been anything but normal and as the uncertainty lingers, mortgage rates remain near record lows,” Freddie Mac said in a statement. “These rates continue to incentivize potential buyers and the home buying season, which shifted from spring to summer, will likely continue into the fall.” In neighboring Davis County, home sales in July increased to 609 units sold, up 12.2 percent from 543 sales in the same month last year. Salt Lake’s median sales price in July increased to $380,750, an 8.8 percent rise year over year. Inventory of homes for sale in Salt Lake County fell to 2,310 listings, down 37.5 percent from 3,696 listings in July 2019. The median home price in Davis County rose to $362,500, up 8.2 percent from a year earlier. Nationally, total existing-home sales jumped 24.7 percent from June to a seasonally-adjusted annual rate of 5.86 million in July, according to the National Association of Realtors®. The previous record monthly increase in sales was 20.7 percent in June of this year. Sales as a whole rose year-over-year, up 8.7 percent from a year ago (5.39 million in July 2019). “The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days,” said Lawrence Yun, NAR’s chief economist. “With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.” First-time buyers were responsible for 34 percent of U.S. sales in July, down from 35 percent in June 2020 and up from 32 percent in July 2019. NAR’s 2019 Profile of Home Buyers and Sellers – released in late 2019 – revealed that the annual share of first-time buyers was 33 percent. Individual investors or second-home buyers, who account for many cash sales, purchased 15 percent of U.S. homes in July, up from both 9 percent in June 2020 and from 11 percent in July 2019. All-cash sales accounted for 16 percent of transactions in July, equal to the percentage in June 2020 and down from 19 percent in July 2019. Distressed sales – foreclosures and short sales – represented less than 1 percent of U.S. sales in July, down from 3 percent in June.
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All in, for change. We believe it’s time that we acknowledge the long history of housing discrimination in our country and the important role our industry plays in shaping neighborhoods. We have engaged with an organization that helps companies like Windermere integrate and operationalize diversity, equity, and inclusion through learning, strategy, and data. Recently, we formed a diversity committee made up of Windermere agents, brokers, and staff who are passionate about helping us create awareness and affect change. We know we need to “start at home� by focusing on the change we can make within Windermere, and the rest will follow. We are committed to educating and bringing awareness to ourselves and our entire Windermere network on how we can bring about positive change. We understand this journey will be challenging and will not happen overnight. However, we are in this for the long haul and are confident that Windermere will help lead the way to positive change in the real estate industry. Love connecting clients to their dreams? Connect with Monica Draper at 435.731.3905