Real Estate News

On Fri Sept 3rd  interest rates  fell to the lowest this year   . . .

The average rate on on a 30 year fixed rate mortgage fell  below 4.4%

Adjustable mortgages fell below 3.9%

These low rates now make up for the difference of those who diid not take advantage of the Federal Tax Credit.

Please check with your loan officer  for updates as rates change on a daily basis.

First, buyers should understand the 1% rule. This rule postulates that normal maintenance on a home is about 1% of the value of the home per year. For example, a $250,000 home would require $2,500 per year to maintain. This would be enough to replace the roof covering…and then, a few years later, to replace a failed hot water tank…and then a few years more until a new central air system is required.

Then there is the 3% rule. Some experts say that home buyers should plan on spending 3% of the value of the home in the first year of ownership. This is because new homeowners will most likely have to buy drapes, blinds, a washer and dryer, a stove, maybe even a new roof covering. Also, new homeowners often customize the environment to their taste, so they need to budget for repairs, replacements and maintenance.

In addition, most home components have fairly predictable life cycles. For example, the typical life cycle of a high-efficiency furnace is 15 to 20 years. What this means is that most high-efficiency furnaces last between 15 and 20 years.

One way to know the extent of the maintenance needed and the costs to repair and/or replace items is to have a home inspection conducted. Home inspectors are required to let the buyer know if a component is significantly deficient or if it is near the end of its life cycle (service life), and a reputable home inspection company may offer up-to-date repair-cost guides to help clients with their planning.

Home inspectors work with Realtors and buyers to help them understand the issues that are found in the home, regardless of age, offering the right perspective and objective information. Home buyers need to understand that it’s normal for items in a home to wear out. This should be regarded as normal “wear and tear” and not necessarily a defect.

A good home inspection determines the current condition of the house, offering a report of all the systems and components in need of maintenance, service, repair or replacement.

For example, consider a home inspection that uncovers that the heating system is old and requires replacement. A home buyer may see this as a huge problem. However, this problem may be the only item in the home that requires attention. If a buyer were to look at this situation in perspective, this home could be well above average—a home merely requiring a new furnace.

A good home inspection provides objective information to help the buyer make an informed decision. Knowing what items need to be budgeted for repair or replacement will help home buyers plan or negotiate better and not be stuck with unexpected costs of hundreds, or even thousands of dollars in the long run. Also, fixing these items will make a marked improvement on the performance of a home and minimize issues that could affect its future integrity…and value.

Top Ten Tips to be a Successful Seller

1. Be committed to selling. In a buyer's market with inflated inventories, short sales, and repos, there is no place for sellers who want to 'test the waters'. Don't even think "If I get my price". You won't. Money is only a secondary motivator to the serious seller.

2. Make sure the price is right. Try triangulation. Ask a few agents for their opinion. Glance at www.zillow.com Consider a formal appraisal. Focus on both current competition and current comps. Sellers should realize they seldom see their property objectively or know the other properties the buyers have seen.

3. Staging is a necessity. Clutter eats equity. Hire a professional stager or listen very carefully to your agent's suggestions. View a staging DVD. Buyers 'horriblize' defects. A faded front door suggests deferred maintenance. A stucco crack may infer expansive soil.

4. Consider a keysafe. The new lock boxes are electronic and enable the listing agent to see who is showing the property. Homes with easy access get more showings.

5. Install a for sale sign. If you don't want the neighbors to know you are selling, reread #1 above. The people in your area will know with or without the sign your property is for sale. They might even have a friend or relative who wants to be their new neighbor.

6. Absorb all feedback. If one buyer says something, others are thinking the same thing. If several similar comments are made, do something about the problem. Put your ego in storage with the excess furniture.

7. Flexibility is fundamental. No showings usually means the price istoo high. No offers usually means the price is too high. Be proactive especially if the market is flat or declining. Regularly reduce the price until an acceptable offer is received.

8. Accentuate the positives. Selling, buying, and moving are stressful events. Tell your agent you appreciate their efforts. Ask them how you can help get the house sold. Ask them what they would do if you were their relative, or it was their home. Ask this question frequently.

9. Time is of the essence. This means sooner is better than later. Do not underestimate the first buyer. They may be the best buyer. They may be the only buyer for a long time. A lower asking price may net a seller more money in the long run.

10. Patience is a virtue. Ask your agent what the average days on the market is in your area. The only way to get somewhere faster is to step on the gas if you are in a car. Or, reduce the price if selling a house.

Just a few ideas on what it takes to get get your home sold in todays real estate market in the St Louis Region.

By dialing the following number you can hear a pre-recorded message about each home currently on the market.

The sytem also has the capability of giving you the aproximate payments on the home based on your down payment.

All you will need in calling this number is the address or MLS identification #.

 Just call:

St Louis City & County: (314) 732-0656

Franklin County: (636) 234-9957