When you first discover a house you like, the first feeling that comes to mind is likely a sense of urgency, thinking, 'If I don't act now, I'll miss out.' Many of those who have made their first offer in Salt Lake City share experiences of skipping inspection conditions or offering more than their budget due to this urgency. Why does this happen so often? The answer lies in the speed of the market.

As of June 30, Zillow reports that the average home value in Salt Lake City is $580,299, which has increased by 1.7% over the past year. The average time it takes for listings to go pending is just 12 days (Zillow), and according to Redfin, it takes about 29 days to actually close a sale. So, what should you check first in such a fast-paced environment?

In the initial budgeting phase, it's important to consider not just the mortgage principal and interest, but also property taxes, insurance, and, if necessary, management fees, to get a total amount. In areas with high home prices, skipping this calculation can lead to unexpectedly high monthly expenses and mistakes of exceeding your budget during competitive offers.

The first thing to check is whether you have pre-approval. In a market where properties go pending in just 12 days, looking at homes without a pre-approval letter can result in missing the chance to make an offer on a house you like. But is just getting pre-approved enough? Not quite. Skipping the inspection is another issue. In a competitive market, the temptation to waive conditions and close a deal increases, but unexpected repair costs can arise from hidden issues like plumbing or foundation problems, so caution is necessary.

So, how much will property taxes be? The average property tax rate in Utah is around 0.53%, which is lower than the national average of 0.91% (according to the Tax Foundation). However, just because the tax rate is low doesn't mean the total housing costs are low. In high-priced areas, combining the home price with down payment and closing costs can require a significant amount of initial funds. Closing costs are typically reported to be between 2% and 5% of the sale price (according to Bankrate), so it's wise to keep this in mind even after the down payment.

A commonly overlooked aspect is having a reserve fund. If you spend almost all your money on the down payment, you may find yourself unable to handle unexpected expenses after moving in, given the high home prices. It's advisable to keep some extra funds for a few months' worth of living expenses and repair costs separate from the down payment.

What about credit management? Making a large purchase just before closing can suddenly worsen your loan conditions, so it's best to postpone any new loans or big purchases until after closing. Additionally, rather than deciding based on the interest rate from just one lender, it's beneficial to compare rates from at least three different lenders. In a fast-moving market, this preparation helps reduce last-minute mistakes.

When looking into school districts preferred by Korean families, it's good to refer to indicators like GreatSchools, but keep in mind that school boundaries change frequently, so be sure to verify the assigned school for the specific address before purchasing. If you're moving from another state, it's wise not to apply the previous state's property tax or insurance standards directly, but to reassess them based on Utah's criteria.

If you're an investor looking at rental income or capital gains, it's better to assess risks rather than assume that fast pending speeds mean guaranteed appreciation. For primary residents, consider commuting distances in the tech industry or future resale potential, and it's better to establish a long-term living plan rather than making emotional decisions driven by urgency.

If you've just immigrated from Korea and are settling in Salt Lake City for the first time, your short credit history may negatively affect your loan conditions, so it's advisable to consult with a loan officer about this in advance.

This article is not investment or legal advice, and it's recommended to consult with real estate and loan professionals, and legal experts if necessary, before finalizing any contracts.