Logan real estate enjoying a healthy 'buyer's market'

By Andy Tolton

March 3, 2008 | A hot topic throughout the United States is that the real estate market is hitting rock bottom, but that is not the case in our local market in Logan.

According to Alan Barker, a local realtor of two and a half years, the Logan market is actually quite healthy. He reported that the market saw the most homes sold in the month of January, which hit a high mark that hadn't been reached in some time.

This goes against the national trend of a buyer's market, meaning that there is plenty of opportunity to buy homes for cheaper, but not many homes are being sold for their actual value. That trend is not experienced in Logan, because homes are being sold.

"We didn't experience the double digit appreciation that the Salt Lake City area did," Barker said. "The market in Logan is very good, and has stayed healthy where others areas have crashed."

Throughout many places in the country, price appreciation has haunted many home sellers. They have had to take big hits on their asking prices, not being able to sell their homes for actual value. This is what makes the real estate market a "buyer's market."

This is the sort of market that many real estate investors dream of. In any investment, the key idea is to buy things at a low price, and sell them at a high price. In a buyer's market, real estate investors can apply this idea very easily because they can buy homes for much cheaper than they are worth.

Gary Wiser, coaching director of local company 4Real Estate Success, who was a real estate agent for 10 years prior, believes that this is the time for investors to get in the market. The objective of a real estate investor is easily reached in the market that we are experiencing right now.

"The objective of any investor is to buy properties at a discounted price," Wiser said. "Buying at a discounted price is the only way to make money in any investment, especially in real estate."

Real estate investors use many strategies to achieve their objective of making money. They have had to be much more careful about what strategies they apply in the past year, because the market has gone through many changes.

"The best strategy for investors to use on a national level would be to obtain a property at a low price, and hold it with the hope that the market will turn to make a profit," Wiser said. "In Utah it is much different, because it is an even market, the best thing to do is buy properties on contract or under lease options and rent the property or flip it for a quick profit."

According to real estate professional Elizabeth Weintraub, a lease option is the idea that an investor will take over a payment that the homeowner is under, such as a mortgage, and will rent out the property to another person that will cover the mortgage payment and a little extra for a profit.

Flipping is the most popular real estate investing strategy. The idea is to buy a distressed property for a discounted price, make repairs and add value to the house and make a large profit after it is sold. The average profit on a flip is $25,000, if done correctly.

And according to William Bronchick, flipping works in any market. Even in a market that the nation is experiencing now, a lot of money can be made by flipping. In an article that Bronchick wrote titled, Flipping Houses Works in Any Market!, he states that one must sell low and buy lower. Instead of following the norm of buying low and selling high, you must take that one step lower in the current market.

The only worry that some investors can face is the unwillingness of homeowners to work with an investor. Considering that investors are trying to find people that are willing to sell them their home for a low price, just to make a quick buck, the investor is at a disadvantage with reputation. Despite this stereotype, real estate agents and Realtors will work in investors if they both understand the objectives that are trying to be accomplished.

"I had a lot of out-of-state investors approach me in the last year, but never sold any properties to them," Barker said. "I am happy to work with investors as long as they aren't flakey, and it really depends on the person."

Getting involved in the real estate market is not an easy task. It takes a lot of money, time and hands-on experience before one can become very successful. Matt Hilton, a local real estate investor, said it was not easy to get things rolling and is still struggling with it.

"After I got my LLC established, I started looking for properties to get involved in, but I was not able to secure any," Hilton said. "I have spent a lot of time talking to several different people learning the best strategies so that I can apply them to the market that I am getting involved in so that I can be successful."

Although the general consensus of the market is that it is way down and is showing no signs of getting better, locals here in Logan are able to escape the national average with a thriving market. Logan was able to avoid the crash of the market which has created a hot spot for investors to make a mark.

No one knows for sure whether the real estate market is going to rise anytime soon. Luckily for us here in Logan, we don't have to worry about what is happening to the national market, because in our tucked away oasis, we are enjoying a healthy market that will help our beautiful community grow. Look closely, we may experience an even faster growth rate than we already have.

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