Utah County Real Estate Dangers

Stay Away From Seller Financing on a Home in Utah County

Utah County Real Estate Danger #1: The King of the Dogs! - Creative Financing - Believe it or not, many people in Utah County sit around at 3:00 AM watching infomercials about how to buy a home with no money down. These late night owls start believing they can earn a Ferrari and a Million Dollar Mansion with a few real estate schemes. They wake up the next morning and realize they just spent $5,000 on a few cassettes and a softbound book. They are desperate to recoup their losses and will do anything to convince you to give them your house. Run! Run for your life! This is a truly one of the Utah County real estate dangers.

I have seen many good families get involved with creative financing. Often the financing is so creative that their money disappears. I am the biggest skeptic on this scheme. I never sell my properties with financing terms. Stick with the old saying: “If the bank won’t give them money, neither will I.”

Realtor Previews of You Home for Sale in Utah County

Utah County Real Estate Danger #2: Some Realtors will claim to have a prospective buyer and want to see your home in case it is exactly what their buyer wants. Real estate motivational speakers often suggest Realtors use this preview technique to attempt listing For Sale by Owner’s homes. It gets Realtors in the door and often gives them the opportunity to give a presentation. I find this technique just plain sneaky. Don’t do previews. If you are cooperating with Realtors, ask them to bring the buyer.

Beware of Free stuff from Utah County Lenders

Utah County Real Estate Danger #3: It is unlawful to act in the capacity of a broker or sales agent without a Utah Real Estate License (Utah Law #UCA 61-2-1). This does not apply to For Sale by Owners selling their own properties. It does apply, however, to anyone who is advertising real estate for sale for someone else expecting to receive valuable consideration. 

Many lenders in Utah County offer free advertising in exchange for your Utah County Buyers. For example, they offer you a real estate sign in your front yard with their phone number on it. If they do get a call, they often promote their loans and services. If they try to sell your home, however, they are breaking the law. Many lenders know this and will only promote their services when Utah buyers call. Remember, the only phone number that should be in your front yard is yours or your Realtors. You or your Utah County Realtor are the best people to promote your home and not a lender.

Why You Should NOT Do a Open House in Utah County

Utah County Real Estate Danger #4: Watch out! This dog barks! Believe it or not, an Open House in Utah County is not effective. Many Utah County Realtors use them as a marketing tool to attract future buyers, not to sell the house! Open Houses work great in Las Vegas or Denver on Sundays, but not in Utah County. On a typical Saturday I will get 150+ calls. In contrast, I usually get no calls on any given Sunday.

Nationally, Sunday is the big Open House day. The bottom line is:  Due to demographics an open house is a complete flop in Utah County.  In fact, I have not done one for over ten years and have still sold about 600 homes in that time period.  Don't waste your time. Be cautious of anyone telling you to do an open house in Utah County.

Equity Milling Your Utah County Home

Utah County Real Estate Danger #5: Never ever take the equity out of your home and give it to someone else. I have seriously probably meet a hundred people in the course of selling homes over two decades that have fallen victim to this scam. The scammer claims he can get you an unrealistic monthly or yearly interest rate if you give him your equity. The scammer is often a family member or close friend in your neighborhood. This pawn often does not realize they are being used by higher level scammers and will swear the deal is legit.

You give them your money and you get a payment for a few months to a few years. At a point in time the pyramid ends and you get nothing. I am serious. NEVER touch your equity or give it to someone else. I have spend many hours trying to help people that been scammed and financially ruined by a family member or close friends. If you have questions or are considering milling your equity please call me. I am happy to help you for free to avoid financial ruin in your future.

Your equity belongs in your home. The idea of owning a home is to get out of debt not to start over. The equity milling scammers have not been around for several years. The majority of them disappeared in 2007 when the market took a dive and the state of Utah busted some of them. However, this same scam could come back into our Utah County Real Estate Market. This one is the worst Utah County real estate dangers.

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