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News and Views from top producing St Louis REALTORS.

 

April 26, 2012

He Who Hesitates is Lost


all real estate is unique

The St Louis real estate market, like most things is cyclical.  There are slow times and busy times, and there's usually no warning when things are changing.  

Lately, its been busy.  Usually people like to hear that.  Recovery, sales, buyers.  All good news.  

The one time it sort of stings is when a buyer is locked onto a property, and hesitates.  Sometimes that's ok.  Other times, they miss out and the property is purchased by someone else.  

In today's world, the idea that something is unique goes against the grain of our society.  Like jeans;  they don't have your size?  "Check the back please," or "can you call your other location?"   If all else fails, you can find it online, but its out there.  

Real estate is unique.

Even with some home builders building tract homes that are identical, in the resale market, some are well maintained, some have the "right" location, some are priced affordably, while others are not.  

Real estate is unique.  

In the past few weeks, buyers have been running up against this more than in recent years.  

My rule of thumb has always been for buyer's to do their due dilligence on properties, but when they 'know' what they want, hesitation is never a good idea.  Research can always be done during negotiations, and most purchase agreements have contingency periods for inspections, survey, insurance, appraisal, and reviews of subdivision / condo indentures.  Additional contingencies can be used to to cover all the bases.  Waiting for a price drop, waiting to study the area more can cost a buyer the home they want. 

Conventional wisdom usually says,  "Don't worry, there's plenty of houses out there!"  While that's true, the purveyor of that sentiment hasn't gone around with a buyer after they've lost out and never found anything that compares.  Its sort of like dating a widower and never measuring up to their departed loved one.  It can be depressing.

So now, when the market is busy  -- don't hesitate when you find the right place!

 

 

 

Posted in How to make an offer, St Louis real estate market
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April 17, 2012

Home Price Mystery

St Louis Home Prices

Tonight at a south side coffee shop, the owner asked me "so how's the house business?"  That's the nice thing about real estate, versus a career in something like insurance;  people want to talk about it.  Real estate affects others, they have a stake in it, and they want to know more....and lucky for them, I want to talk about it.  

Lately that's been pretty lopsided.  

Oh its great to see home buyers walk away from the closing table, especially when you know they are able to afford a home that wouldn't even be a possibility in a stronger market.  The 'upgrade crowd' is fun too.  They may take a loss on their current home, or they may rent it, but they are saving where it counts:  on the big purchase

The good news for the prospective buyers is that now and well into the housing recovery, they stand to be winners.  Even with modest gains in the housing market, prices have dropped enough that homes will be an investment 'value' for a while.

Talking with home seller's is another story.  Many sellers, before contacting their Realtor, establish their homes value based on a conservative estimate on what they need to make in order to break even.  The conversation starts " I'm not trying to make money or anything."  Reality can be a tough pill to swallow sometimes.

Speculators have talked about this being the year of the big transformation, so it wasn't a suprise to see the front page of the St Louis Post-Dispatch talking about higher prices this weekend.  


The fact is, a market turn around really is good for everyone.  

While buyer's looking for value homes have really soaked up some great deals around town, but are they?  Foreclosed homes often times have lots of undisclosed defects and a poor overall maintenance record.   In talking with a foreclosure buyer today, I described some of the trade-offs.  From experience I can share that a seller's disclosure statement is worth its weight in gold 5 times over.  

People that read the news hear all about the 'shadow inventory' that banks are waiting to sell, but what we don't hear as much about is all the people that don't have to sell, with awesome homes, that are waiting for values to increase to sell.  Its these homes that many of my current buyers are after.  "I don't want to have to do a ton of work," they might say, and often they are the buyer having the toughest time in this market.  Seeing an increase in prices will begin to see a more balanced housing inventory, between the "fixer-upper" and the "move in ready" home.  That is what the buyer's in today's market seem ready for in St Louis.  Balance.   

 

Posted in market analysis, Real Estate, St Louis real estate market
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March 26, 2012

Buying (Can Be) Cheaper than Rent

home buying St LouisThe affordable housing mantra has long been "Buy Cheaper than Rent".  For a while there, when housing prices were escalating, it wasn't as commonly heard.  Now its back, and rightfully so.  Today's email came a story all about buying cheaper than rent in 98 out of 100 metro areas.   

In most cases I agree with this statment.  The only thing is that most cases don't always happen.

In reality, most home buyer's do not have the same standards when buying a house as they do when renting.  Had that been the case, the real estate market probably wouldn't have accelerated and fallen as it did in 2008-2010.  In visiting the rental homes of many first time buyers, they are often smaller and with fewer amenities than their "for purchase" counterparts.  This greys the line of the statement "cheaper to buy than rent".

Buyer's typically buy with a mind to the future unlike renters.  Considering future needs, such as household size and other future goals. 

All things considered, with the market value of homes having dropped substantially, interest rates near historic low levels and mortgage interest written off on income taxes, and rent rates and rental occupancy increasing; its cheaper to buy than it is rent.  

Visit our St Louis home search page to start the home search process and have acess to mortgage calculators for every property you find!

 

Posted in Buying vs Renting, first time home buyers, home search, Real Estate Transactions
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March 12, 2012

Beware of the Rouge Appraiser

Roadblocks to Home Buying

Lately we've been encountering a problem with problems on appraisals.  

The opposite of the housing crisis, appraisers are starting to come in low on appraisals in many instances due to excessive pressure and scrutiny from banks.  The opposite pressure that was placed on them from the the days when banks would push to make appraisers make deals work whether they made sense or not.

Now, one thing that seems to have left was the process of finding actual comparable homes.  Bank pressure, which always caused problems before, isn't helping much now.   Banks have formulas now that completely interfere with the appraisers job of appraising.  Banks have specifications on how recent the sales have to be.  They require sales to be less than 90 days old, so if there are two "comps" and one sold 55 days ago, the other sold 6 months ago, the appraiser is directed to use the 55 day old 'comp' regardless of whether its a true match to the home.  

Criteria has been limited too.  If there are two homes that are 1600 square feet with 3 bedrooms and 2 baths, they are considered equal.  If the subject property being appraised has been fully remodeled with a stylish look and beautiful finishes, they don't really care.  They look at the size and room counts with no weight being given to the actual appearance.

These bank limitations may not sound like much, but in actuality they cause problems in many instances;  particularly with older historic neighborhoods.  What's more, appraisers are freaked out.  There is so much pressure on them that they are afraid to "go out on a limb" which is overly influential, just like before.

One of the mantra's we here today is to get the Federal Government out of business.  My thought is GET THE BANKS OUT OF APPRAISALS!

Posted in Real Estate
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Feb. 29, 2012

Watch Out for Round 2

wise home buyer

 Word to the Wise

Just about every real estate professional can tell you about a real estate deal that hit a brick wall for one reason or another.  Probably the most frustrating and heart breaking collapse comes due to inability to obtain financing.  

The interesting thing about getting a mortgage loan that most people are unaware of is that prospective home buyer's have to qualify twice to buy the home.  

When a buyer talks to a mortgage lender for the first time and a 'file' is started, usually the lender "pulls credit" and issues a pre-approval based on the credit score and information provided about income and employment and debts.  At this point, if not previously, the home shopping begins.  

Once the home buyer zero's in on their dream home, makes an offer and comes to an agreement, the rubber meets the road in terms of getting a loan.  The loan application is completed and documentation is provided to verify the income, assets and financial obligations of the borrower.  An appraisal justifies the homes value and then the file goes to underwriting.  Underwriters look at the file and make sure it qualifies for the loan based on the loan programs guidelines and usually conditionally approves the loan.

Some lenders do a good job, based on wisdom from past catastrophe's, of informing buyers about 'round 2.'

Round 2 is what I call the problems that happen between the point that data is collected the first time by lenders and the closing date.  

What some home buyers aren't expecting is this:  that the mortgage company or investing bank waits until the closing is imminent to review the file again and verify that the data collected initially hasn't changed.  Employment status, credit score, debt to income ratio and more can be re-evaluated on the closing date to make sure the bank isn't making a bad loan.  

 

So what usually happens?  Typically buyers are fine, but every real estate professional can tell of instances where buyer's bought a new car, or bought a new dining room set "no money down" just to help furnish the home.  Other things can happen too.  All the focus on home buying can take the focus off paying bills on time or depositing paychecks on time.  Bounced checks, late payments, large influxes of money, changed jobs or large purchases all can have a HUGE affect on whether a buyer will end up closing on their wonderful new place or not.  

So if you're a home buyer, BE ON GUARD!  The time between loan application and closing is crucial.  Banks can review every little detail of your financial life so be prepared to explain everything and WATCH OUT FOR ROUND 2!

For more information, visit the St Louis Home buyer blog post on the 10 Commandments for St Louis Home Buyers. 


Posted in first time home buyers, Real Estate
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Feb. 12, 2012

National Mortgage Settlement: Effects for Current Buyers

National Mortgage Settlement Makes Waves

home mortgage foreclosuresThe Federal Government, 49 States Attorneys, and the five largest mortgage banks came to a 25 billion dollar settlement regarding the improper foreclosure servicing that took place since 2008.  

As a St Louis Realtor, we've been reading up on this business for some time.  No one knows exactly how things will play out, but we do know it will have implications on the St Louis real estate market.  

The talk has been that the settlement will force banks to perform more loan modification and debt reduction plans to troubled borrowers.  It will also set a clear legal standard for future foreclosures and short sales.  

Right now, the settlement only applies to Wells Fargo, Citibank, JP Morgan Chase, Bank of America and Ally Bank.  Other smaller banks are expected to join the settlement in the near future, increasing it to 30 billion dollars.

The obvious goal is to help home owners stay in their homes.  Ideally that means that fewer foreclosures will take place.   Analysts are saying just the opposite.  That these banks were waiting for the settlement to take place and for the clarity on foreclosure standards and that they have been waiting for this clarity to move forward on a backlog of troubled loans.  Everyone knows that water finds its own level.  The real estate market and banks need some help in finding their 'level' but by helping the nations real estate market and banks to reduce the bad debt and put "distressed homes" into the hands of new owners will put the real estate market in better health.

Keep an eye on the foreclosure page here at 4salestlouis.com if you're looking for a great deal on a new home.  

Posted in Distressed Homes
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Feb. 4, 2012

Open Houses Today 2/4 from 1-3

Stop by the newest Downtown St Louis loft for sale at Dorsa Lofts, 1015 Washington unit 304 and then travel south to the Syndicate Conmdominiums.  

Both offer fantastic


 modern style and incomparable finishes!  

Open Today from 1-3pm!


Syndicate Loft Condominiums

 

Posted in Open Houses
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Jan. 25, 2012

Moving? Don't Call a Realtor

Moving to KirkwoodJUST KIDDING!!!  Call a Realtor in 99.9% of the time. 

This story in today's Post is heartwarming. 

Homes that "stay in the family" are often times cared for.  There's a legacy to preserve and protect.  Its the type of home that often will sell quickly and that Realtors love to bring buyer's into. 

Foundation problems are a fact of life.  Its sad in some cases, that there's not enough concern over the future marketability of the home.  Often times homes with major structural problems end up costing a lot, and may just be abandoned. 

This case is exceptional.   

I remember when Highway 141 was being rebuilt through Manchester, my hometown, and some of the historic homes along Woodsmill Rd. were relocated, just like this home.  It was a great thing for the city, since the homes were moved to the Manchester historic district near its City Hall.  The home can continue to be enjoyed in that town by passerby's.

A win for home preservation in Kirkwood!

 

Contact Us Today if you're looking at a spring selling date as it is quickly upon us. If you haven't called your Realtor, remember, your competition probably has!  Visit our Kirwood Homes page with 6 built in Kirkood home searches and a link to our advanced home search page!

Posted in Real Estate
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Jan. 20, 2012

Downtown Loft Condo Education

Syndicate CondominiumsThere's going to be a good training class that all condo owners in Downtown St Louis should try to be at on January 31st.  It starts at 6:30 in the New Yaeger 1st floor conference center of the Laclede Gas Building at 800 Olive St.  

A detailed post was done on the reasoning, but the bottom line is that there are certain responsibilities that go along with owning any home.  With condos and lofts, a chunk of those responsibilities are avoided, but not entirely.  There isn't the yardwork and maintenance, but there is the oversight of these things that the association and building manager has to do.  There's also other factors to be dealt with in community living situations, like keeping the bylaws up to date, making sure the association dues are being put to good use, properly budgeting for the buildings success, choosing a good building manager and selecting the services that a building manager should provide.

The unfortunate thing is that many times condo owners aren't armed with the right information to be "good condo assocation members"  or even worse, good board members!   When that happens, people don't realize, but the building can suffer, unnecessary expenses can build up, relations within the building and property values can be affected if things aren't managed properly and every condo association member is responsible.  

This class is for St Louis area real estate professionals and property managers too!  

Often times the biggest problems being addressed in this class are from misguided professionals misleading condo owners and not making sure they know the ins and outs of condo association membership.   

Come one and all.  If the above link doesn't work, find search "Downtown Condo Education Event" on Eventbrite

Posted in maximizing real estate value
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Jan. 12, 2012

The Time Is Now

St Louis Homes for Sale

One of the top 10 real estate questions we get from prospective home seller's is "When is the right time to sell?"

That's a tough question for which there is not always 1 right answer.  One right answer is, "whenever you'll get the best price in the shortest amount of time."   Of course, people expect a more specific answer from the hardest working St Louis Realtor.  The question remains, when is that?!?

The best time to sell is commonly recognized as the springtime.  That's when most apartment leases renew or expire.  Its when many people shake off their resistance to get out and when the most homes go on the market.  

Why wouldn't that be right for everyone?

Sometimes the right answer can be to list your home when you have the least competition.  If that was the case, wait until there's a foot of snow on the ground and its below 15 degrees!  

The truth about selling is really not always when you sell, but how a home seller goes about it.  Selling a home takes preparation and planning.  It takes developing a plan and executing it.  It takes some thought.  

For people thinking that SPRING is the time, NOW is when you should be reaching out to a REALTOR, discus ifsing a plan and making a list of 'to do's' so that as we reach February and March, your home is what your local home buyer is expecting in terms of cleanliness, updates and curb appeal.  

The Time is NOW!

What if you're not ready right now, or the springtime doesn't work with your overall plan to move?

No problem!  What this post is all about, is that it really isn't as important to sell at any given time, as it is to work together with a competent REALTOR to take time and plan out the process of listing your home to make it what buyer's in your area are looking for.  This all takes time, and the more time you allow, the better the results.  

A good REALTOR knows what buyer's will look for and items they may find objectionable.  Take time to view the home with your agent and write down a list of their recommendations.  Its important to allow for some time, because completing the aesthetic recommendations needs to be done prior to staging, and staging has to take place prior to taking photos.  Also, a good agent may need to make additional visits to the home for more photos if the first set isn't flattering enough.  They may also need some time to make minor revisions to the staging or the photos.    

The biggest problem is when home seller's think they have "the eye" and proceed to make all the repairs or updates that they think will help move their home without consulting a professional.  This may still work out, but all too often, seller's waste time on things that don't really impress buyers while overlooking things that are much more important.  Or they won't allow for any time to prepare for the sale process.  

Other than simple aesthetics, keep in mind, that after your home's buyer comes through, it won't be long before the critical eye of the home inspector enters the picture.  Remember that dripping faucet or broken light switch you've been thinking about fixing?  Building inspectors find problems like that and more, so its a great idea to work on getting things like that fixed before buyer's come through.  

Executing a complete selling plan is the difference between the homes that sell quickly and for top dollar with the ones that get passed by.   Give your home its best shot!

 

Contact Us Today if you're looking at a spring selling date as it is quickly upon us. If you haven't called your Realtor, remember, your competition probably has!

 

Posted in Preparations to sell, Selling my home
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