|
 |
St. Louis Metro Real Estate Market Reports |
| |
Franklin County Second Quarter 2008 Market Report
2008-05-27
Download PDF
|
|
St. Charles Co. Second Quarter Market Report
2008-05-27
Download PDF
|
|
Jefferson County Second Quarter Market Report
2008-05-27
Download PDF
|
|
St. Louis County Residential Second Quarter Market Report
2008-05-27
Download PDF
|
|
Franklin Co. 2007 Year End Market Report
2007-10-19
Download PDF
|
|
Jefferson Co. 2007 Year End Market Report
2007-10-19
Download PDF
|
|
St. Charles Co. 2007 Year End Market Report
2007-10-19
Download PDF
|
|
St. Louis City & County 2007 Year End Market Report
2007-10-19
Download PDF
|
|
Don't Play Games- Price It Right by Andrea Lawrence
2007-05-31
Don’t Play Games—Price it Right!
If you plan to sell your home soon, remember, the correct pricing strategy is vital at any time of year and in any real estate market, whether it is sluggish or energetic. Over pricing homes for sale is one of the biggest mistakes a homeowner can make when selling, and the consequences are often difficult to overcome.
For example, potential buyers may not even consider looking at your home if they think it’s out of their price range. In addition, the first 30 days a home is on the market is critical, and is usually the busiest showing activity for new listings. This timing is important, and you don’t want to over-price your home and loose this window of opportunity.
Also over-inflating the price of your home may cause your home to stay on the market for a longer period of time. This in turn could make potential buyers think there may be something wrong with your home since it has remained unsold for so long. You should also consider that by pricing your home substantially higher than other comparative homes in your area, that you will actually be helping those homeowners, whose properties are priced more accurately to their area’s market rate, to sell more quickly than yours. At the same time, if a home is lowered several times from the original price when it first came on the market, the perception of its value diminishes greatly. Ultimately, by listing your home for a great deal more than it’s market worth, there is a real good chance that your home may sell for an even lower price than it’s worth.
So, if your home isn’t selling, it might be time to take a look at the price. Consider some of these common mistakes that consumers make when it comes to (over) pricing their home for sale:
Selling with the idea of making lots of money to buy the next home. Some owners expect their present home to bring them the money they need to buy a more expensive home. While the proceeds from the sale of a current home can be an important part of the down payment for the next home purchase, the two transactions are separate when it comes to determining the worth of the properties. After all, how much profit a seller needs to clear on a home sale has nothing to do with how much the home is worth. The home is only worth what a buyer is willing to pay.
If a house is not priced in line with what other homes in the neighborhood are selling for, it likely won’t sell. A professional REALTOR can tell you the fair market price for your home compared to similar homes in your neighborhood.
Not relying on facts and market analysis. When you are ready to sell your home, often times sellers will rely on what their friend’s home may have sold for in the same area. This is not a good method to establish your price as most homes are not identical. Better yet, contact a REALTOR® who can supply you with an analysis of what properties are selling for in your area. An owner who doesn’t know or who ignores the market facts, often ends up getting less than fair value. Other ways to determine how much your home is really worth include hiring an appraiser; picking up fliers at neighboring houses for sale; scanning newspaper ads; surfing the Internet; and going to open houses.
Selling quickly. How quickly you need to sell can also affect the sales price. If your situation demands that you need to sell your home quickly, discuss with your REALTOR options for a quicker sale.
Upgrades, repairs, and remodeling may not be worth what you think. The amount recouped for upgrades, repairs, and remodeling depends on the condition of the rest of the house, the value of similar homes nearby, the availability of new homes, the rate at which property values are changing, and finally the region or city. For example, the December 2005 issue of REALTOR Magazine reports that only 87.6 percent of the cost to replace existing siding with vinyl siding is recouped in St. Louis, while 132.1 percent of the cost is recouped in Chicago.
Not considering every scenario. Overpricing your home may create other problems as well. If your home sits on the market for many months, you may be carrying costs, especially if you move to a new home before you sell the old one. Those carrying costs may wipe out any additional profit you realize from a higher price. And even if a buyer is willing to pay the higher price you’re asking for, he may have trouble with the financing if the property appraisal comes in lower than the contracted sales price.
Selling one of the largest, if not the largest, investments you own isn’t a game. Your home must be fairly priced to attract the largest and best pool of prospective buyers early. Make sure you use the expert services of a REALTOR or appraiser. Price it right!
|
|
Mortgage Interest Deduction by Andrea Lawrence
2007-05-31
(from Post Dispatch article dated 11/22/05)
In a recent report from the National Association of REALTORS, one of the most widely used tax provisions may be in jeopardy—the Mortgage Interest Deduction (MID). According to this report, President Bush’s Advisory Panel on Tax Reform recently recommended that Congress convert the Mortgage Interest Deduction from a straight deduction to a 15% tax credit in an effort to simplify taxes. The panel also recommended reducing the $1,000,000 cap on mortgage interest deductions on primary and second residences combined to the local Federal Housing Authority (FHA) limit, which is $213.750 in the St. Louis area. Additionally, the repeal of the MID on home equity loans and second homes, as well as the deduction for property taxes, are included in the recommendations. The U.S. Treasury Department has received these proposals for evaluation and is expected to make its recommendation in January or February of 2006.
This deduction has been part of the U.S. tax policy since the federal tax code was first enacted in 1913. The current $1,000,000 cap on mortgage deductions has not been modified since 1987. Based on the preliminary projections by NAR’S Economic Research Division, residential property values could decline 15 percent or more if these tax changes take effect. The housing sector accounts for about 15 percent of the nation’s Gross Domestic Product (GDP). In addition second homes, which account for 36 percent of all home sales last year, would also be affected by the proposed tax reform. According to NAR, eliminating the tax deduction for second homes could impact at least five percent of the GDP.
In the latest NAR survey of homebuyers, it was found that first-time buyers, as well as repeat buyers, ranked the desire for tax incentives as an important reason to buy. The national home ownership rate stood at a high 69 percent of U.S. households earlier this year. In the last few years, we have seen dramatic increases in home ownership among minorities. The elimination of the MID could cause this rate to drop.
All across this nation the “American Dream” is not a mere slogan, but rather a bedrock value in our society. Owning a piece of property has been central to American values since the founding of our country. The tax system facilitates home ownership. Although the St. Louis Association of REALTORS and National Association of REALTORS acknowledge that some reform may be needed in the U.S. tax system, any actions that reduce real estate tax benefits could drastically impact home ownership. The effects on an industry that has fueled the U.S. economy, specifically in the past five years, could be far-reaching.
REALTORS through their local, state and national associations have worked diligently over the years as the protector of private property rights.
|
|
Avoiding Post Contract Pitfalls by Andrea Lawrence
2007-05-31
Selling a home is like climbing Mount Everest-getting a signed contract is a great accomplishment, but that’s only half the journey. The typical home sale today involves more than 20 steps after the initial contract is accepted to complete the transaction.
Much of what needs to be done before the closing is the responsibility of appraisers, loan processors, title companies, and inspectors; the REALTORS’ role is to coordinate those responsibilities, helping to ensure that others do their jobs promptly and correctly and that the closing isn’t jeopardized.
Many steps between contract ratification and closing involve the cooperation of both buyer and seller, and attentive REALTORS on both sides of the transactions, will troubleshoot to keep everyone on track. Steps for the Home Buyer include:
· Deposit earnest money. Earnest money is deposited according to instructions in the sale contract and is applied to the down payment at closing.
· Make loan application. Lenders require detailed employment and financial information and documentation. Decisions about locking in interest rates are made during this process.
· Order the appraisal. Lenders obtain an appraisal before committing to a loan. Appraisers compare the features of a home to similar properties recently sold to arrive at a dollar figure for its value.
· Order inspections. Inspections for home condition, termite infestation, lead and pool equipment should be ordered as soon as the contract is ratified, so there is time to remedy any problems or renegotiate terms.
· Arrange for title insurance. The title company prepares the initial title binder to ensure that title defects will not make a property unsaleable in the future.
· Order the property survey. A survey determines the boundaries of the property, the size and shape of any buildings and existing easement and encroachments.
· Purchase homeowners insurance. Lenders require hazard insurance, and in some cases flood insurance is needed.
· Secure a loan commitment. The lender issues a final loan commitment and confirms the closing date.
· Set up utility accounts. Utilities should be transferred into the buyer’s names as of the closing date.
· Complete the final walk through. Buyers walk through the property with their REALTOR shortly before closing to ensure that the property is being delivered in the condition agreed to in the contract.
· Review the closing statement. The final documents should reflect the financial agreements made between the buyers and the sellers.
· Bring a cashier’s check to closing. Buyers obtain a cashier’s check for the balance of their down payment and other closing costs.
Steps for the Home Seller include:
· Select a title company. The title company will collect the necessary documentation and conduct the seller’s closing.
· Assemble subdivision or condominium documents. Financial statements and recent reports are given to the buyer to review.
· Request pay-off figures from the present lender. The total amount due on any existing mortgages must be provided in advance of closing.
· Coordinate home inspections and appraisal. Arrangements for access to the property must be made for the buyer’s inspectors and lender’s appraiser.
· Order required inspections. Sellers may be required to order inspections through their local municipality or fire district. Inspections of irrigation systems and water stop box may also be required.
· Arrange for final utility readings and payments. Utilities should be transferred out of the seller’s names as of the closing date.
· Obtain the home warranty policy. If the seller has offered a home warranty, it must be obtained before closing.
· Complete repairs. If the seller has agreed to make repairs, these must be completed before the final walk through.
· Vacate the property. The seller should arrange for moving and cleaning out of the house prior to possession by the buyer.
· Sign closing documents. The seller must complete all of the closing papers before receiving the proceeds.
REALTORS have extensive experience in handling problems that may arise during the time between contract and closing. They can anticipate difficulties and address them in time, to ensure a smooth settlement for all involved. For more information on the home buying and selling process, contact your local REALTOR. To find a REALTOR in your area, visit www.stl.REALTORS.com.
|
|
Are You Ready For A Condo? by Andrea Lawrence
2007-05-31
If you’re ready to make the move from renter to owner but are not sure you’re prepared for the maintenance and responsibilities that come with owning a home, you may want to consider purchasing a condominium. In the past, people chose condominiums as a viable option to homeownership because of their affordability. Today, there is another driving factor – lifestyle choice. The condominium life is growing in popularity for several reasons, including ease of maintenance, added perks and price appreciation.
A condominium can be an excellent option for first-time homebuyers and those of you looking to downsize. Typically, condos are smaller, less expensive and may include attractive amenities such as fitness centers or swimming pools. But it’s important to weigh your options before diving in.
Ownership has its advantages - Many of the advantages of owning a single-family home also apply to condominiums. You can deduct your mortgage interest and property taxes from your federal income taxes (if you itemize), while increasing your personal wealth by building equity. You also control your own destiny. If you own a condo, there is no landlord to increase your rent or tell you to vacate the property.
Association fees - Whether you plan to use the amenities or not, you’ll be paying for them. Condo association fees are in addition to your monthly mortgage and can vary greatly from property to property. In some cases, you may even be asked to fork over extra cash for emergency maintenance or repairs. While this may seem burdensome, association fees ensure continued maintenance and protect the value of your property.
Before purchasing a condo, ask questions about the condo association. Find out what percentage of owner-occupied units exists in the complex, as this may affect your financing opportunities. Ask the president of the owners association or the company that manages the property, if there have been any special assessments recently to cover major maintenance or improvement projects. A well-run association plans for these events and will typically set association fees so sufficient reserves exist.
One of the most enticing reasons to buy a condominium rather than a single-family home is that it provides an easier, low-maintenance lifestyle. If this is what you’re looking for, make sure you know what you’re purchasing. Find out exactly what is covered by your condo association dues.
Something else to consider is your inability to make decisions regarding the exterior of your home. Most condo associations have rules and regulations that apply to all co-owners in the complex. If you’re unhappy with a rule, you can always suggest a change, but that doesn’t mean it will happen.
Lifestyle - Living in a condominium is different form living in a detached residence. Condominium owners often share walls, which may bring back memories of apartment life. Depending on your neighbors, this may not be an issue. But it’s tough to know until that first night. You should also keeping mind that you are buying into a community. The common areas are just that - communal.
The benefits outweigh the drawbacks for many people, as condominium sales are rising. Single adults and empty nesters are finding that the condo life offers a sense of connectedness. The most recent trend in urban loft living is a prime example. Although these complexes may have a new name, many of the loft complexes are actually condominiums.
Contact your REALTOR early in the game. Your REALTOR can help you find a property that fits your needs and will guide you through the home buying process. There are several forms and contracts specific to condominiums. For more information on the home buying process, I invite you to visit www.stlrealtors.com
|
|
Add Home to Your Holiday Gift List
2006-12-01
Download PDFADD HOME TO YOUR HOLIDAY GIFT LIST
The holiday shopping season is in full swing! As you are making that list for family and friends, why not consider giving a gift for the home. It is, after all, a vital asset to both you and your loved ones. With this in mind, the St. Louis Association of REALTORS would like to recommend giving home safety items, as the best holiday gifts of all. Some of the items you may want to add to your list include:
Smoke Detectors--fire safety experts say that many lives could be saved each year if every one had at least one smoke detector. These relatively inexpensive devices are easy to install and are readily available in a wide price range. If you already have smoke detectors, make sure your batteries are fully charged.
Carbon Monoxide Detectors-- the importance of having a carbon monoxide detector is often underestimated or simply forgotten. Unfortunately, carbon monoxide sources such as furnaces, generators, space heaters, gas heaters, ranges, and water heaters are common in homes, and can put you and your family at risk for carbon monoxide poisonings. The Department of Health & Human Services Centers for Disease Control & Prevention reports that over 15,000 people are treated in emergency rooms for non-fire related carbon monoxide exposure each year. Any carbon monoxide detector you buy should have the Underwriters Laboratory (UL) designation.
Fire Extinguisher--this is an especially smart buy for homes that have fireplaces or wood burning stoves. There is a range of fire extinguishers on the market suitable for home use, which unlike industrial models, are very compact and attractive. Most importantly, however, they are easy to use.
Automatic Timer--an empty, dark house is an open invitation for uninvited holiday visitors. Automatic timers can turn your house lights on and off at predetermined times to give your home that “lived-in” appearance, which can discourage possible theft. Also, if you’re gone for an extended period of time, contact your local police and let them know.
Emergency Kit--winter weather can cause power failures that may leave you and your family in the dark for hours, even days. Of course, a good first-aid kit is a must! Other good buys include flashlights, extra batteries, a battery-powered radio, surge protectors for electronics, hurricane lamps and fuel, and basics like matches and candles.
Shower/Tub Grab Bars--with a modest amount of money and effort, you can help prevent falls, the number one cause of accidental deaths at home. Rubberized, no-slip mats should also be added in the bathrooms. All these items can be purchased at any home or hardware store.
Rubber Treads--in addition to the bathroom, indoor and outdoor stairs can pose dangers. On inside steps, rubber treads can reduce slipping accidents, while a few well-placed tacks can secure carpeted stair surfaces. Treat your outside stairs to some sand and paint before inclement weather hits. Simply mix the two together and apply to your outside stairs to give them a new gripping surface.
Equipment and Wiring Checkup--finally, consider buying your home a checkup for the holidays. Have your home’s heating equipment and electrical wiring system checked by a professional. Cold weather and entertaining team up to put added burdens on your home’s energy system.
So, add your home to that holiday shopping list to ensure a safe season. The St. Louis Association of REALTORS and its more than 10,000 members wish everyone not only a safe holiday, but also a happy one!
|
|
