PARK CITY REAL ESTATE

Buying real estate is exciting. Whether you are trying to find the perfect starter home, moving on to bigger and better, or investing in real estate for added income; it is a fantastic decision that can help you to secure your financial future. But without large sums of extra cash at your disposal, how do you pay for it? A variety of loans exist for the sole purpose of buying real estate.

Conventional Loan

These loans are commonly used when purchasing a home. They are not insured or guaranteed by the federal government. The guidelines for a conventional loan are set by Fannie Mae and Freddie Mac. Rates may be fixed or adjustable. For a single family home, the maximum loan amount depends on which state you live in. These maximums range from $453,200 to $1,307,175 in most states. In states with a higher cost of living, the range varies from $679,650 to $1,960,750. Conventional loans require a minimum down payment of at least 3% of the homes agreed upon price for a fixed rate loan. For an adjustable loan, the down payment requirement is at least 10%. For purchases requiring cash (primarily auctions), you can take out up to 85% of your pre approved loan for purchasing a home. Or, you can apply for a loan once you have found a home you want to buy.

FHA (Federal Housing Administration) Loan

This is a mortgage insurance backed loan, provided by an FHA-approved lender. The loan max is set per state, most reaching a maximum loan amount of $271, 050. Some states with higher cost of living have a higher max loan amount of $365,700 to $448,500. A down payment of at least 3.5% of the homes agreed upon price is required to obtain an FHA loan. Besides purchasing a single family home, an FHA loan can also be applied to 2, 3, and 4 unit homes as well as approved condos. Unlike some types of loans, the FHA loan doesn’t required proof of reserve funds. But, you will always pay for private mortgage insurance when buying with an FHA loan. There are no penalties for paying off the loan early. You can also not use an FHA loan (in most cases) to buy a home if you have an existing mortgage. To receive approval for an FHA loan, your debt-to-income ration cannot exceed 50%.

VA (Veteran Assistance ) Loan

This loan is specifically for servicemembers, veterans, and eligible surviving spouses looking to purchase a home. VA loans are secured through private lenders. The VA guarantees a portion of the loan which in return allows lenders to offer the home buyer less extensive terms. The VA loan requires no down payment. To qualify for a VA loan, past service members must have served for at least 90 days during wartime or 181 continuous days during peacetime without an dishonorable discharge. Enlisted servicememebers who began service after 9/7/1980 have a two year service requirement. Officers who began services after 10/16/1981 also have a two year service requirement to receive a VA loan. With the VA loan, buyers can receive up to 25% of a home loan to pay for their home with a max limit of $113,275. This limits the total home loan amount to $453,100. As well as meeting service requirements, VA loans will also be approved or denied based on credit and income requirements.

These are the most common forms of loans used to purchase single family homes and other personal real estate. To learn more about these types of loans, or other options including USDA and ARM loans, contact Jensen and Company.

There have been some truly unique living spaces created by people looking to expand their homes; including the trend of outdoor rooms. These are areas that are placed either on a porch, or as a separate dwelling in a backyard.

What Are Outdoor Rooms Used For?

Anything! Outdoor rooms can be relaxation spaces for you to spend time with family or guests. They can be reading nooks or offices. Some people are even creating whole guest rooms using renovated sheds or miniature cabins. The possibilities are endless.

Here are some great examples of how you can create more space in your home by adding an outdoor living space.

The Enclosed Porch

This is one of the simpler ideas, but it’s definitely effective. This is a porch setup that utilizes the deck to create a second living room complete with plenty of seating for guests. Enclose with glass paneling and screens for both cold and warm weather enjoyment. Just imagine sitting here with friends, enjoying your coffee, and viewing the gorgeous scenery surrounding you. For the winter months, a wood stove would cozy this space right up.

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The Fire Pit

A fire pit is a nice touch for a night during any season. This setup uses the firelight and adds to it by using fairylights. Together it creates a romantic, tender atmosphere perfect for an evening with your significant other, building memories with the kids or having guests over for a memorable party.

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The Miniature Cottage

Mini cottages are all the rage right now and customizable sheds offered prefabricated from manufacturers means they are more attainable than ever before. You can find many different models and sizes and make them as complex or simple as you like. Just make sure you are checking with your local zoning board before you build, especially if you plan on installing plumbing.

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The Cozy Gazebo

Gazebos are so often ignored when people are lucky enough to have one. This is a great use for one. Put in some cozy furniture that is resistant to the water, install some curtains that can be drawn if chose and put in a portable source of light. Easy, beautiful and a way to make that gazebo work for your family.

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Find out more at Jensen and Company.

Park City is home to numerous activities, many of them related to the outdoors. The scenic mountain setting and the green valley below make it an idyllic location that draws people from around the world each season. Golf is a big pastime in Park City and when you look at the fifteen major golf courses that are offered, it isn’t hard to see why. Check out one of these locations for your next tee time.

Incredible Park City Utah Golf Courses

Canyons Golf – One of the best known golf courses in the state, Canyons Golf is legendary among dedicated golfers. It runs along the canyon with a five hundred foot elevation increase that allows you to overlook the breathtaking scenery of the valley below. You would be hard pressed to find a more beautiful backdrop.

Soldier Hollow – Located in Midway, Soldier Hollow is considered part of Wasatch Mountain State Park, making it a rather unique location. There are two courses, the Silver and the Gold course. The silver is the less challenging of the two, with wider fairways and less elevation. The Gold course is the championship level course and contains many elevation spikes.

Jeremy Ranch Course and Country Club – Looking for something more exclusive? Jeremy Ranch is a private country club within the Park City area. It is one of the most sought after and highly rated courses in the state and beautifully maintained. They also have events such as weddings at the club, though they are by invite only through membership.

Park Meadows Country Club – Located in the center of Park City, Park Meadows is another exclusive, high-end country and social club with a renowned course, high-quality cuisine, annual events and more. They are well known for their perks to members. They provide tours to prospective applicants and it is worth taking a look to see what the have to offer.

Park City Golf Course – Don’t want a membership? Then you might try Park City Golf Course. They are still very high quality and are so popular that they require reservations for any tee time, with a wait list up to a week long. It is worth getting on that list and experiencing this course for yourself, of checking out their leagues.

Find out more at Jensen and Company.

Selling a house is a lot of work. Not only do you to make sure your home is ready, de-cluttered, and perfectly staged to attract more buyers, but there is a host of paperwork and legal red tape you have to get through from the first to the last step. It can overwhelm anyone and yet many will choose to take on the process themselves without turning to a professional for help. But a realtor does more than just sell a house. Working with a realtor provides 10 key benefits to selling a home that you may not have considered.

1. They know how the market is operating at any given time. The market isn’t always stable. A realtor knows the best times to put your house on the market.
2. They can navigate complicated paperwork for you. Paperwork for selling a house can be a nightmare, but for a real estate agent, it is all a part of a day’s work.
3. They can eliminate mistakes and delays. A simple mistake can lead to months of delays, unanticipated expenses, and a lot of headaches.
4. They can get your listing out to more people. Real estate companies know all of the places to file a listing and how to market it to be seen by more people. That increases your chances of selling the first time you list.
5. They can find the serious buyers. A real estate agent will market to, and attract buyers that have serious interest in purchasing your real estate. You won’t have to worry about time wasted on buyers that are likely to not purchase your home.
6. They can direct you on upgrades in increasing resale value. Your house can probably be upgraded in many affordable ways to improve both the curbside appeal and value. Your realtor can direct you to the right upgrades for your home.
7. They can assist with inspections. Inspections are a pain. Your realtor will provide trusted inspector recommendations and schedule them for you.
8. They can help you avoid scams. You would be amazed by how many scammers are out there trying to pull real estate frauds. Realtors know the red flags.
9. They can help you avoid common liable issues. This includes withholding of known problems with the real estate, liens, zoning issues, and more.
10. They can eliminate the stress of selling a house. You can rest easy knowing you’re in good hands; especially when working with Brad Jensen.

Find out more at Jensen and Company.

The Mud Room: It is the part of a house that is between the garage and the rest of the home, leading in from the backyard, or even the ski slope! It allows people to remove their dirty shoes, coats, ski gear and other items before entering into the rest of the house.

While the tradition became less common over the years it is making a comeback. People buying houses are demanding the inclusion of a mud room, particularly families with children who have a tendency to drag dirt through the house. The organization is what keeps it functional and tidy. Here are some must-have elements for any mud room.

Built-In Sitting Area

Having a seating area is helpful, especially for those removing shoes. This example shows a simple built-in bench with a plywood wall that is perfect for hanging up items. The cubbies make it easy to store different items and hide clutter.

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Coat Hooks and Storage Space

If you have items to hang or want to include more storage space, this is a great idea. The hooks make it simple to put up coats, hats, bags or anything else that needs to be up and out of the way.

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SnowSport Equipment Storage

Especially for Park City homes with ski slope access, storage space for snow equipment is a must.

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Homework Hanging Station

Want something focused more towards your kids and keeping them organized? This is a great use of a space, giving each child a place to hang their backpacks and other items. The inclusion of a chalkboard is a nice touch and can be used to keep schedules, notes, and reminders. All you need is some chalkboard paint.

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Shoe Storage

Avoid shoe clutter next to doorways with this efficient use of space. The best part about this idea is that it can be done even in a garage itself, without taking too much space. Notice the inclusion of hooks. Your mudroom doesn’t have to be in the house itself.

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Find out more at Jensen and Company.

From the Desk of Brad Jensen

Park City Utah | Real Estate Newsletter | May 2018

Dear Park City,

Spring is in the air and bicycle, golf, fishing, hiking, camping season is upon us. However, there are still a couple of good days of skiing left. I love this time of year. The weather is warm and beautiful and there is so much to do.

The real estate market remains strong. There continues to be strong demand and inventory is still good.

In some neighborhoods, particularly those where average prices are under $1,500,000 for single family homes, buyers need to be alert and ready to go. These neighborhoods have inventory shortages and when a good opportunity hits the market they don’t last long.

Over all the Park City market is fragmented. Old Town is showing signs of slowing, Silver Springs and Ranch Place are very slim on inventory, Jeremy Ranch has good inventory and strong demand.

If you would like more information on specific neighborhoods please reach out to me. I always enjoy hearing from friends and clients and I love referrals.

For all of you who are second home owners, I hope that you plan to be here this summer. Please look me up when you are in town.

Summit Sotheby’s International Realty is proud to sponsor The ’70s vs. The ’80s night at the 2018 Deer Valley Music Festival. Enjoy the world-class talent from our own Utah Symphony, paired with your favorite hits by George Michael, Whitney Houston, Patty LaBelle, and more!

Summit Sotheby’s Cares Charity Golf Tournament

Summit Sotheby’s International Realty will hold its annual Charity Golf Tournament at the Rees Jones Golf Course at Victory Ranch on August 20th. When you work with Summit Sotheby’s International Realty, you are supporting non-profit organizations in our local community. Raising over $630,000 since its inception, Sotheby’s Cares continues to support local charities and non-profits. Contact us if you would like to participate in this year’s Golf Tournament and Fundraiser.

Download PDF

Market Update

Current Inventory in Park City

Houses:

• Properties for Sale – 302
• Average Days on Market – 177
• Minimum Asking Price – $510,000
• Median Asking Price – $2,695,000
• Average Asking Price – $3,749,508

Condos:

• Properties for Sale – 343
• Average Days on Market – 213
• Minimum Asking Price – $110,000
• Median Asking Price – $950,000
• Average Asking Price – $1,366,751

Land:

• Properties for Sale – 201
• Average Days on Market – 241
• Minimum Asking Price – $63,900
• Median Asking Price – $689,000
• Average Asking Price – $1,194,292

Market data from: PCMLS
Park City & Snyderville Basin areas

Current Inventory in Jordanelle

Houses:

• Properties for Sale – 33
• Average Days on Market – 89
• Minimum Asking Price – $659,000
• Median Asking Price – $1,850,000
• Average Asking Price – $1,922,894

Condos:

• Properties for Sale – 37
• Average Days on Market – 161
• Minimum Asking Price – $153,000
• Median Asking Price – $569,450
• Average Asking Price – $550,474

Land:

• Properties for Sale – 89
• Average Days on Market – 173
• Minimum Asking Price – $147,000
• Median Asking Price – $369,000
• Average Asking Price – $599,482

Market data from: PCMLS
Jordanelle Area

No matter where you are in the real estate process of buying or selling, understanding the real estate trends is essential to your success in the local housing market. If you ever have questions about the market or activity in your neighborhood please reach out to me. I am always happy to discuss and can provide specific data for your area of the market.

If you would like more information on your market area wherever it may be, please let me know. If it is not my area of expertise I can most certainly find a professional in your area who can assist you. It is great to be a part of such a powerful Sotheby’s International Realty network.

Sincerely,

Brad Jensen 

brad@jensenandcompany.com

(435) 901-8333

The 1031 Exchange Opportunity is a tax rule that allows people to “swap” one bit of real estate (used for investment purposes) for another with little or no taxes to pay at the time of the exchange. All of this depends on whether the IRS believes there was no capital gain for that property.

Here are some things you should know about the 1031 Exchange.

You Can Only Swap Business or Investment-Specific Real Estate

Hoping you can switch your house for another? Unless it is a secondary or investment property used for income, it is not possible. The 1031 Exchange Opportunity isn’t allowed in cases of personal real estate, though in some cases you are able to swap other property as long as it falls under a “like exchange” via the IRS’s definition.

Brandon Turner from Bigger Pockets explains another benefit of the 1031 exchange for investors:

“[A 1031 exchange] can allow a real estate investor to shift the focus of their investing without incurring the tax liability. For example, perhaps you are investing in properties that are low-income and thus high-maintenance. You could exchange the high-maintenance investment for a low-maintenance investment without needing to pay a significant amount of taxes. Or perhaps you want to move your investments from one location to another without the IRS knocking. The 1031 makes this possible.”

Personal property can include artwork and paintings, livestock, aircraft and aircraft parts such as engines, certain licenses (such as television/radio broadcasting licenses or taxi medallions), trademarks and a handful of other items.

The 1031 exchange opportunity works in four ways:

• Simultaneous Exchange – this is where you can swap or complete a two-party trade. The two parties involved “swap” deeds. Or is three parties are involved in the exchange, an “accomodating party” facilitates the swap for the exchanger. Or perform an exchange using a qualified intermediary who structures the whole exchange process.
• Delayed Exchange – Most common use of the 1031 exchange; the relinquished property is sold, followed by the purchase of the desired property. A third party Exchange Intermediary hold the proceeds of the sale in a binding trust for a maximum of 180 days while the exchangor works on purchasing the new property.
• Reverse Exchange – Also called a “forward exchange”, the reverse exchange is when you buy the new property first and pay later. However, this type of 1031 exchange requires cash and his hard for which to obtain a bank loan. If you are unable to acquire funds within 180 of the purchase, the exchange is forfeit.
• Construction/ Improvement Exchange – Improvements can be made to the replacement property using equity from the exchange sale.

Sometimes you want to swap out your property but there is nothing that is close enough or that you want at the time of the swap. In the meantime, you are stuck with the expenses related to your property, which can be a sinkhole that drags you down more and more with each passing year.

In this case, you would do a delayed exchange. It works by having a middleman who holds the profits gained from selling your property. They will then purchase the new property for you when you are ready. Within 45 days of this exchange, you have to submit a written document stating the intended replacement property. Then, you will have up to 6 months to close on the property you’re buying.

Once the exchange has gone through, any remaining cash will be taxed as a partial sale. So many people who use this delayed exchange will seek out a property that is as close to the amount of original sale as possible to avoid this tax.

Interested in learning more? Contact Jensen and Company.

Park City is home to a rich and vibrant art culture that attracts people from around the world. The Sundance Film Festical is one well-known example, but there is so much more to see and experience.

Park City Art Galleries and Events

If you walk down Park City’s Historic Main Street you will find twenty different galleries featuring work from both local and non-local artists in every medium. They frequently have hosted art strolls where you will go with a group to each one and discuss what you see. Or you can wander down at your own pace and enjoy the beauty you find there.

The Kimball Center has regular events as well as classes in different art disciplines.

Music Concert Series

Park City is home to a number of concerts every year, meeting every person’s individual tastes. You can find up to forty performances of Beethoven’s symphonies through out the year. Or try the Big Stars, Bright Nights performances through each season at the Eccles Center for the Performing Arts. For free shows, explore the constant stream of concerts put on by Mountain Town Music.

Movie Festivals

Sundance is the obvious film festival that you can visit during your time in Park City. But there are many more movie festivals and events to attend. The Park City Film Series does weekend and special screenings of films every Spring. The Wasatch Mountain Film Festival is not only an opportunity to see independent films in an outdoor setting, but also mingle with the filmmakers who create them.

If you are a student you can often get cheap or even free tickets to various film festivals, including Sundance, through your school.

Local Artists

One of the biggest benefits of living in such a cultural focused community is the ability to get involved with your own work. Park City galleries, film festivals and music halls are very friendly towards both long-time and emerging artists. You can become a part of annual events or apply for a position at one of the galleries, no matter what medium you work with. It is a wonderful opportunity for anyone who wants to take visibility of their art to the next level.

Find out more at Jensen and Company.

Park City, Utah is host to some incredible events every year. Best known for the Sundance Film Festival and fantastic snow sports, you could be forgiven for not being aware of just how much there is to do in the town during the warmer months. But Park City is truly a versatile and culturally rich area, with art galleries, theater, equestrianism, golf, and entertainment to last you every day of the week.

As we start to move away from the snowy weather of the past season and look forward to summer, outdoor concerts are being announced to much excitement and fanfare.

If you are looking for some good times and awesome music in the next few months, here are some you need to check out.

Deer Valley Music Festival

Probably the most well known and long running of the outdoor concert series, this festival is a tradition. Home to the Utah Symphony and Utah Opera, they provide classical, chamber and pop music concerts around various locations in Park City, including in their large outdoor amphitheater.

Shows begin June 30 and run until August 11. The 2018 lineup includes Rachel Potter, Rick Springfield, Kristin Chenoweth and many others.

Grand Valley Bank Community Concert Series

Quickly become a huge event every year, the Grand Valley Bank Community Concert Series is a collection of outdoor shows at Deer Valley Resort. The first one starts June 30th with Triggers and Slips. Other shows include Sammy Brue, Take 5 and Troubadour 77.

All shows are completely free and first come first serve for seats. More shows will be announced as the season draws closer, so keep an eye out!

Big Stars, Bright Nights

The Eccles Center For The Arts is home to their Big Stars, Bright Nights series, an exciting event that has had some incredible guest performances in the past. This year should prove to be just as impressive, though their lineup has yet to be announced.

Last year’s shows included X Ambassadors, Melissa Etheridge, Smash Mouth, Five For Fighting and Aloe Blacc, to name a few.

Dejoria Center Outdoor Concerts

The newest series on this list, Dejoria has joined the fray and now offers their own outdoor summer events. Their free concerts begin July 21 with Better Off With The Blues. Other shows include Parlour Hounds, Triggers and Slips and Wayne Hoskins Band.

Be sure to also check out their monthly First Friday events.

Find out more about life in Park City at Jensen and Company.