Utah is growing and is about to get a new area code.   This is going to be different than what we have experienced in the past.  When they introduced the 435 area code in Southern Utah, everyone with the new area code had to change all their advertising information, print new business cards etc.  This can be an expensive inconvenience.

The new implementation is meant to avoid those problems.  The new 385 area code will cover the same geographic area that the current 801 code covers.  The difference is  that now we are going to have to dial all 10 numbers, the area code and the number.    For instance, my business number is 801-367-8214.  My number will stay the same, but after July 11, 2008, everyone will have to dial the 801 before my number to reach me which is currently not required.  

Your current phone number will stay the same including your area code of 801.  Only those getting new phone numbers, from the initiation date on, will have the 385 area code with their number.  The next new phone books will have start including the area code before the number as 385 numbers start to appear.  We will have to remember to program our contact lists on our cell phones, etc to include the area code for speed dialing etc.  People and businesses that currently do not include the area code in their advertising will have to make the necessary changes.  

Some people I have talked with are not happy about this change.  They feel it an inconvenience to have to dial the extra numbers.  I think however, that it will not be long before we are used to the change and it will not be as annoying as they imagine. 

Getting homeowner’s insurance is not alway a given anymore.  For the last few years, as REALTORS®, we have been advising our clients to start working on gettting homeowner’s insurance early in the transaction because insurance companies were getting pickier about who and what homes they would insure.  It is best to know early if you are not going to be able to find a company to insure your new home. 

Utah has gone even farther by adding a clause in the Real Estate Purchase Contract about homeowner’s insurance. 

Section 8:   Buyer’s right to cancel based on evaluations and inspections.  Buyer’s obligation to purchase under this contract  (check applicable boxes):

(d)  is___  is not___     Conditioned upon Buyer”s approval of the cost, terms and availability of homeowner”s insurance coverage for the property. 

The cause of concern has mostly been due to water damage.  If the buyer or the homeowner of the home being purchased had filed an insurance claim within the last 2 years, the new buyer and/or the home itself could be denied insurance coverage.  This is something to be aware of when considering whether or not to file a claim for minor water damage, especially if you plan to purchase a new home within the next 2 years. 

Now this:  I recently read a letter describing one insurance company’s policy regarding dog ownership.  This letter was in reference to the fact that the insurance agent discovered that the new home buyer owned a Pit Bull puppy.   

Here are the X (name of the company will not be disclosed as I am sure they are not the only company with such a policy) rules concerning dogs.

No more than 2 dogs per house hold.
Will not write list: Rottweiler, Chow-Chow, Pit Bull, Doberman Pinscher, Akita, Any wolf-Hybrid, Presa Canario, Bull Mastiff, American Mastiff, Staffordshire Bull Terrier.
No more than one of the following:  Siberian Husky, German Shepard, Alaskan Malamute. 

Is important to note that most city ordinances,  (at least Orem City), limit animal ownership to 2 dogs and 2 cats.   Many people are not aware of this and are in violation.  Now, if you are violating this ordinance in your city by owning more than the allowed dogs or cats, you may also be in jeopardy of losing your homeowner’s insurance coverage.  This is something you may want to look into with your own individual company.  You do not want to wait until you need your insurance only to find out that you will not be covered because of this oversight. 

Under the current Utah Real Estate Purchase Contract (REPC), unless a home is sold in “as-is” condition, the seller is required to provide certain warranties to the buyer until the buyer takes possession.  Usually only a home with known defects is sold in “As-is” condition. Currently the REPC states that the heating, cooling, electrical, plumbing and sprinkler systems and fixtures as well as fireplaces and appliances must all be in working order and fit for their intended purposes. Also the roof and foundation must be free of known leaks. 

In Utah, the state approved Real Estate Purchase Contract, (REPC), currently states:

10.2 Condition of Property. Seller warrants that the Property will be in the following condition ON THE DATE SELLER DELIVERS PHYSICAL POSSESSION TO BUYER:
      (a) the Property shall be broom-clean and free of debris and personal belongings. Any Seller or tenant moving-related damage to the Property shall be repaired at Seller’s expense;
      (b) the heating, cooling, electrical, plumbing and sprinkler systems and fixtures, and the appliances and fireplaces will be in working order and fit for their intended purposes;
      (c) the roof and foundation shall be free of leaks known to Seller;
      (d) any private well or septic tank serving the Property shall have applicable permits, and shall be in working order and fit for its intended purpose; and
      (e) the Property and improvements, including the landscaping, will be in the same general condition as they were on the date of Acceptance.

 I have been very busy this year since the sun came out.  Spring is traditionally a busy time as sellers put their homes up for sale and buyers take advantage of the warmer weather to get out and look.  This year, it is an especially good year for buyers because appreciation rates have stabilized which is a good thing from a year ago when they were rising faster than is healthy.  This is a good time to buy a home because, you might say, homes are “on sale”.  

The lending industry, however, has tightened their standards for home loans and that is making it harder for the average person to buy a home and take advantage of the inventory and lower appreciation rates.   If you plan to purchase a home in the near future, it would be wise to find out now what your credit score is.  Lenders are raising their standards, requiring higher credit scores now more than ever before.  If your credit score is less than 680, you may find that you will be paying points at settlement to get the current rates.  If your score is below 620, you may not be able to get a loan at all.  

Guarding your score is becoming an essential strategy in our economy today.  Other industries are also starting to use credit scores to determine how to categorize your business.  For instance: Insurance companies have figured out that people with good credit scores are better risks and are starting to adjust their premiums accordingly.  This may be good news for financially responsible people but for those that have trouble, it may become a real problem.  

For ideas on how to improve your credit score:  click here