Real Estate Information Archive

The latest flyer for the upcoming Gospel Doctrine lesson.

http://www.deseretnews.com/article/700025480/Gauging-Utahs-housing-market.html

I prepare a simple flyer hand out for my congregations Sunday School Lesson.  I am including them in my blog so that the congregation has access to the flyers before each sunday's lesson.

Gospel Doctrine Old Testament Lesson 17

Hopefully the housing market is correcting.

http://blogs.wsj.com/developments/2010/03/01/buffett-predicts-housing-problems-behind-us-within-the-year/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:%20wsj/developments/feed%20(WSJ.com:%20Developments%20Blog)&mod=WSJ_Real%20Estate_BLOGSDEVELOPMENTSFEED

Utah's Premier Resorts bankruptcy still unresolved

Formerly known as Deer Valley Lodging, the company will answer to judge on
Premier Resorts of Utah has more time to defend its solvency for the federal bankruptcy court in Salt Lake City.

Judge Judith A. Boulden at a hearing on May 19 postponed decisions on many requests from debtor Deer Valley Lodging, owned by Premier Resorts of Utah, and creditors including Mark Lampe, president of the home owner's association at The Lodges at Deer Valley, who initiated the involuntary bankruptcy process on April 27.

Premier Resorts of Utah was required to submit documents defending itself against Chapter 7 bankruptcy demanded by a few dozen creditors by that date. All parties involved agreed to extend that deadline to 5 p.m. on May 22.

The extension also granted more time for negotiations that could possibly have led to a resolution of disagreements.

The case involves a dizzying array of players including over one dozen attorneys from nine different law offices. The creditors include 9 home-owner associations, about 35 individuals and at least two companies.

The May 19 hearing revolved around two requests. The first were from the home and condominium owners for a "lifting of the stay" imposed on creditors in the event of an involuntary bankruptcy request. The stay allows the debtor to continue operating as normal, but prohibits creditors from taking further action to recover their money.

The second request was from Premier Resorts International to delay the appointment of a trustee who could potentially take over the Utah company's finances.

Judge Boulden ordered the May 19 hearing to be "preliminary" and postponed decisions until May 28 effectively leaving the stay on home owners in place and granting Premier Resorts more time.

Park City attorney Joe Tesch who filed the initial petition in April said he agreed to the extension, but the stay is hurting the victimized home owners further because they can't end their contracts with Premier Resorts and find new property managers.

A source familiar with the court speaking on background said the law is that way to deter creditors from forcing a debtor into bankruptcy.

Premier Resorts International spokesman Bobby Foster said his company empathizes with owners regarding this issue. A letter signed by Premier Resorts International president Barbara Zimonja and sent on May 19 recognized that the company had received several requests to terminate contracts, but could not because of the stay. Instead, the company had stopped accepting reservations for units whose owners made that request.

The letter is becoming one of the more hotly debated aspects of the proceedings. It requires a few stipulations in return for being exempted from the stay.

"They're basically saying they would not sue us for fraud and other miscellaneous things, but are still in line for all the monies due. There would be no changes in what they're owed," Foster said.

But Tesch disputes that. The letter never guarantees payment, he said. It only asserts the signer's right to make a claim on money owed.

For example, the first stipulation begins as follows: "Except for claims against the other party for amounts owed under the terms of the Rental Agreement prior to the Effective Date which Reserved Claims are specifically reserved and not released hereby ."

According to Tesch, that language offers no protection to owners at all. In his view, the company is asking owners to relinquish their rights to future legal action in exchange for a relief from the stay. That's not a good deal for his clients, he said.

"That letter was not negotiated and I don't expect it to be accepted," Tesch said in an interview Thursday. "This is a very convoluted and difficult document to understand, and apparently, intentionally so."

Joe Wrona, who represents a few dozen of the creditors, was equally skeptical of the proposal.

"I don't see how Premier Resorts believes it is in a position to dictate to unit owners at this point in time," he said.

Court documents suggest Trail's End Lodge at Deer Valley accepted some kind of deal. Judge Boulden approved an agreement between Premier Resorts and Trail's End that released it from the stay and its contract with Premier Resorts.

Foster said he didn't know if the lodge accepted the terms of the May 19 letter or negotiated different terms.

Many of the court documents are accusations and answers to accusations.

Premier Resorts chief financial officer Brad Goulding told the court that his company is continuing to meet contractual obligations during the stay.

"(Premier Resorts of Utah) has instructed its staff to cease taking all reservation advance deposits," he wrote.

The Lodges at Deer Valley and the Silver Baron Lodge home-owner associations claimed the company had failed to timely account to owners, had admittedly converted owner's rental income to its own purposes and finally, had terminated staff and employees necessary to manage and operate the lodge.

Goulding refuted all three claims.

It appears that the second two originated from statements Foster made during interviews with KPCW. On May 12, he said they were operating on a "skeleton crew."

On Thursday, Foster said that was accurate, but also normal for this time of year. Goulding and Foster have both asserted that front desk services, basic housekeeping, security and on-site management are still performed.

Regarding the conversion of owner's rental income for the company's own purposes, Foster told KPCW in that same interview that setting up management at developments like The Chateaux and The Village at Empire Pass required initial investment that is paid back over a long time.

"You have to carry those for quite a while," he told them.

But on Thursday Foster argued that that statement was not in response to "where the money went." He asserted that property management companies operate on a thin profit margin of only 2.5 to 3 percent and that lines of credit are required to pay employees year-round. A bad year for travel combined with frozen credit caused the company to run out of cash.

But as marketing director, Foster said he was unable to speak in any more detail about the financial procedures the company followed.

On May 19, Premier Resorts of Utah also objected to the request for a lifting of the stay on certain properties, particularly The Lodges at Deer Valley and Silver Baron Lodge. Court documents accused the home owner associations of not paying $30,000 in management fees.

Foster explained that unlike owner's rental profits which are subtracted from gross rental revenue, home owner associations are supposed to reimburse the property managers for a large percentage of on-site staff wages as well as supply purchases. The associations and the owners have separate and dissimilar contracts and The Lodges and Silver Baron are in violation of those contracts.

"We kept all those services going, but payment stopped," Foster said.

Here's How:

1. Disassociate Yourself With Your Home.
   • Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.
   • Make the mental decision to "let go" of your emotions and focus on the fact that soon this house will no longer be yours.
   • Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
   • Say goodbye to every room.
   • Don't look backwards -- look toward the future.
2. De-Personalize.
   Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."
3. De-Clutter!
   People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
   • If you don't need it, why not donate it or throw it away?
   • Remove all books from bookcases.
   • Pack up those knickknacks.
   • Clean off everything on kitchen counters.
   • Put essential items used daily in a small box that can be stored in a closet when not in use.
   • Think of this process as a head-start on the packing you will eventually need to do anyway.
4. Rearrange Bedroom Closets and Kitchen Cabinets.
   Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
   • Alphabetize spice jars.
   • Neatly stack dishes.
   • Turn coffee cup handles facing the same way.
   • Hang shirts together, buttoned and facing the same direction.
   • Line up shoes.
5. Rent a Storage Unit.
   Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"
6. Remove/Replace Favorite Items.
   If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
7. Make Minor Repairs.
   
   • Replace cracked floor or counter tiles.
   • Patch holes in walls.
   • Fix leaky faucets.
   • Fix doors that don't close properly and kitchen drawers that jam.
   • Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls.
     (Don't give buyers any reason to remember your home as "the house with the orange bathroom.")
   • Replace burned-out light bulbs.
   • If you've considered replacing a worn bedspread, do so now!
8. Make the House Sparkle!
   
   • Wash windows inside and out.
   • Rent a pressure washer and spray down sidewalks and exterior.
   • Clean out cobwebs.
   • Re-caulk tubs, showers and sinks.
   • Polish chrome faucets and mirrors.
   • Clean out the refrigerator.
   • Vacuum daily.
   • Wax floors.
   • Dust furniture, ceiling fan blades and light fixtures.
   • Bleach dingy grout.
   • Replace worn rugs.
   • Hang up fresh towels.
   • Bathroom towels look great fastened with ribbon and bows.
   • Clean and air out any musty smelling areas. Odors are a no-no.
9. Scrutinize.
   
   • Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
   • Linger in the doorway of every single room and imagine how your house will look to a buyer.
   • Examine carefully how furniture is arranged and move pieces around until it makes sense.
   • Make sure window coverings hang level.
   • Tune in to the room's statement and its emotional pull. Does it have impact and pizzazz?
   • Does it look like nobody lives in this house? You're almost finished.
10. Check Curb Appeal.
    If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.
    • Keep the sidewalks cleared.
    • Mow the lawn.
    • Paint faded window trim.
    • Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
    • Trim your bushes.
    • Make sure visitors can clearly read your house number.

THE WASHINGTON POST (AP)

Real estate agents, home stagers and decorators strongly recommend painting a home in neutral colors to help it sell faster. Why? "Today's buyer doesn't want any work," says home stager Carol Buckalew of Frederick, Md. You don't want buyers to walk into a house and immediately think about the extra costs of repainting because they have a strong reaction to a color, she says.

Neutral colors also help a property look best in photographs online, which is where potential buyers first make the decision to look at a house or condo in person, says Long & Foster real estate agent Deb Gorham.

There are only a few situations in which they'll bend these unwritten rules. Gorham says it's OK to not repaint children's rooms, because it could be upsetting to a child who already is facing a big change when the family moves. Plus, she says, "sometimes you have families moving in, and perhaps those colors even entice the new family."

Another exception is in powder rooms, where home stager Monica Murphy feels it's easier to add personality: "Bathrooms, since they are private rooms and often have the door closed, can have more whimsical colors, like pumpkin, or a deeper green, or a silver gray - colors I would never suggest for a public room like the living room or dining room," she writes in an e-mail.

Here are some recommended colors and the best places to use them:

• Ground Ginger from Behr. Murphy, of Preferred Staging in Loudoun County, Va., likes this pale olive because it "isn't overwhelming."

• Kilim Beige from Sherwin-Williams. Lynn Chevalier, a home stager with Falls Church, Va.-based Staged Right, says this khaki color "makes the house more useful-looking. It covers up flaws nicely, and it has a very crisp look." Chevalier also recommends a near-white shade, Marshmallow from Sherwin-Williams, for the trim.

• Pale Smoke from Benjamin Moore. "The master bedroom is the perfect room to impart color," says Leigh Newport of Staged by Design in Leesburg, Va. This paint "is a soothing pale blue-gray that reflects well in photos," she says.

• Rain from Sherwin-Williams. Lyric Turner, of D.C.-based Red House Staging and Interiors, says this smoky blue is on her bathroom walls. She says the bathroom is one place where she recommends color, because most homes have white bathroom fixtures. "A lot of times people have the white sink and the white bathtub and beige tile, or they might have a beige granite countertop, and to do beige in there is kind of boring," she says.

• Rice Paddy from Duron. Gorham, who is based in Clifton, Va., says, "We like to use it as accent walls, especially (in kitchens) above the sink area." She says this celery-green goes well with the popular granite countertop color uba tuba, which is a shade of green.

• Wickham Gray from Benjamin Moore. Buckalew of Omni Home Staging likes using this solid gray to cover up bright colors. "All the red dining rooms need to be neutralized," she says. "If you don't like red, then you don't like the house."

• Woodmont Cream from Benjamin Moore. Cindy Fortin of Cynthia Anne Interiors in Loudoun County, Va., says this pale neutral color helps rooms look brighter and more airy, even in small spaces lacking natural light. "A lot of times when you have the oak-colored cabinets, it just goes really well with that," she says.