St. Louis Real Estate-Market Watch October 25th, 2008

Filed under: St. Louis Market Reports

Saint Louis Real Estate Market Watch by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
October 25th, 2008
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome!

The St. Louis Real Estate Market this week has our pending ratio declining to 10.77 percent, down from last wweek’s 11.33 percent.  We are showing about the same number of active listings, but again, fewer homes accepting contracts. Some buyers are still “sitting on the fence”, waiting to see what will happen with our financial and housing markets.  Due to this situation, our average month’s of inventory has risen to 9.3 months.  Notice that one year ago this week our average months of inventory was 10.4 months. Buyers, you still have fewer homes to choose from than last year.

RisMedia.com released an article on Friday, the 24th stating that sales of existing homes rose to it’s highest level in 13 months, due primarily to falling home prices and foreclosures on the West Coast.  Narrowing that down to the Midwest, we saw existing home sales increase 4.4 percent in September, but we are still 2.5 percent below one year ago.  The article goes on to state that the median home price in the Midwest in September was $152,500, which is 7.9% lower than one year ago September. Read the complete article HERE.

For our readers that faithfully use our Market Watch Report, we have created a new very short report, found on the same page as the current Market Watch Reports.  This week,  out of curiousity, and by request from several readers, we have produced the Market Watch Averages WITHOUT the very high-priced $800,000 and above category in the totals.  We think that the statistics in this price range tend to skew our averages somewhat, and obviously, there are many more consumers in the $100,000 to $799,999 price ranges than above. So, check out this new report; tell us what you think.  We are considering restructuring our report to separate out the very high price ranges, possibly making the $800,000 plus price ranges a separate report. 

Any changes, IF we would make them would be at the first of the new year. 

WHO DO YOU KNOW NOW that is challenged with their mortgage payments OR needs to sell for less than their home is worth?? WE CAN HELP!! 

Fill out the form below to view the Market Report.

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   10.26.2008

St. Louis Real Estate - Your Credit Score

Filed under: For Buyers, Mortgage News

If you’ve had your head in the sand about dealing with your credit, now is the time to stand and face the music.  More than ever in recent years, it is imperativethat you manage your credit history and credit scores attentively and responsibly.  Today, a 700 is the same as 640 used to be.  Remember, that is your MID score requirement, not the high score.  It’s necessary to collect all three for an accurate assessment.  As it stands, nearly all lenders require a minimum of 620 for conventional loans and a minimum of 580 for government loans like FHA and VA.  And the bar keeps raising as we go. Here is just a snapshot to get you started and if that’s not enough, join us for a webinar with Credit Resolution Guru, Ron Marchiani Wednesday, October 22nd at 6:00pm.  Details are at bottom. 

Facing the Music - Find Out What’s in the Report

• The three major credit “repositories” (bureaus) are Equifax, Experian and Trans Union Corp.
• Requesting a report from each should cover your complete credit history (reports can be requested online: www.equifax.com , www.experian.com , www.transunion.com ).
• You are entitled to one free credit report per year.

Don’t Take Their Word for it - See if Somebody Goofed

• Most financial information, such as a credit card payment history, is sent directly from creditors’ computers to the three repositories’ computers.
• Data transfer still involves human input, including information gathered from courthouse files, for example.
• Simple recording errors or mistaken identities could result in a mistake on the credit report.

Be a Vigilante - Request Corrections

• Credit bureaus are obligated to investigate complaints and correct errors.
• Consumer vigilance is important, nonetheless, because the bureaus are not as diligent as we would hope.

Start Doing the Dance - Get Ready to BUY or REFINANCE!

• Do things to offset your credit if it’s less than ideal.
• Opt out of credit card offers at 888-5-OPTOUT - this will raise your score.
• STOP making inquiries or allowing anyone else to make inquiries 60 days before you are ready to buy.
• Make sure your Mortgage Broker is not running the credit over and over.
• Don’t be late on payments - one month can cost you down the road!!
• Pay off all recent small collections - especially medical and utilities (let the old ones sit or you could reactivate a dormant account and actually hurt your credit more).
• Start putting money in the bank - 100% financing is no longer available, although FHA still allows 97% and many 95% loans.
• Build good credit while you’re working on resolving old credit issues.
• Pay down high balance credit cards (your debt to credit ratio should not exceed 40%).
• DON’T cancel all your credit cards. Keep the three or four oldest ones and maintain good payment histories and low balances to continue good credit reporting activity.

Plan for your Future - Get the Right Home Mortgage

Count on your Personal Mortgage Professional for smart financing options and the expertise to help you achieve your goals.  Your home mortgage should be part of your overall financial planning picture, not just something you do “for now”.

Don’t Procrastinate - Call your Personal Mortgage Professional EARLY in the process to:

• Buy a new home.
• Refinance your home to pay off high interest debt, make improvements.
• Eliminate Private Mortgage Insurance (PMI) and increase monthly cash flow!

For more indepth information, some great overview booklets can be found here:

http://www.myfico.com/crediteducation/brochures

http://www.consumerfed.org/topics.cfm?section=Finance&Topic=Credit%20Scores%20and%20Reporting 

If you’d like to join us and learn more about your credit, how to evaluate it and how to improve it, please join us.

Date: Wednesday, October 22, 2008
Time: 6:00 pm, Central Daylight Time (Special Realtors ONLY Session begins at 5:30pm)
Meeting Number: 615 784 337
Meeting Password: credit

Please click the link below to see more information, or to join the meeting.
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To join the online meeting (you must be in front of your computer)
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1. Go to https://meetings.webex.com/meetings/j.php?ED=5638742&UID=0
2. Enter your name and email address.
3. Enter the meeting password: credit
4. Click “Join”.
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To join the teleconference only
——————————————————-
Call-in number (US/Canada): 1-650-429-3300
Toll-free dialing restrictions: http://www.webex.com/pdf/tollfree_restrictions.pdf
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For assistance go to http://www.webex.com/go/ppusupport
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WHAT DO YOU THINK? TAKE OUR POLL.

Do you think the mortgage lender is getting TOO strict on credit now?
( polls)

Posted by Aprille Trupiano   |   Read More   |   Your Comments Are Welcome!   |   10.21.2008

St. Louis Real Estate-Market Watch October 18th, 2008

Filed under: St. Louis Market Reports

Saint Louis Real Estate Market Watch by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
October 18th, 2008
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome!

The St. Louis Real Estate Market this week shows a very small increase in activity with a few more homes accepting contracts, coupled with less active listings, which has pushed our pending ratio up to 11.33 percent.  Our number of homes sold in the past six months continues to decline with an increase in expired or market rejected listings. 

The buyers we’ve talked with this week are still taking “stock”, literally of their positions with their investments and how the last several weeks of the stock market’s decline affects their cash positions and their home buying power.  With the election so close now, some are electing to wait until after the election, while others are forging ahead with buying decisions. 

We are encouraging those buyers who are forging ahead with their purchases to contact their lenders to make certain they are still “good to go” with their pre-approval for their mortgage.  This is also a time when it would be wise to have a second lender set up and ready to go, just in case challenges present themselves in the mortgage process.

Sellers in the market now should stay on the market.  This is the time of year when some buyer activity will fall off, but the buyers that remain in the market are the motivated buyers.  With almost 1000 less active listings for motivated buyers to look at this year as compared to last year, motivated buyers have less to choose from.  That’s great news for sellers, as you will have a better chance of selling your home, as long as you are priced within market value, OR a bit below market value.  It’s all about being the BEST in your price range.

Also, just because the Government has injected capital into a number of the largest banks around the country doesn’t mean the problems are over.  This cash infusion isn’t going to help people who are already facing pre-foreclosure, foreclosure or having to sell their home for less than their mortgage.  In the coming months, help for these situations may get a little easier, but none-the-less, many of these homeowners need help NOW. 

In our St. Louis Market, there are only a select number of realtors that have become experts at helping these challenged homeowners.  Many realtors in our area don’t want to get involved with foreclosures or short sales, as these transactions are much different than “traditional” real estate transactions, and usually take a bit more time and work.

At The St. Louis Real Estate Voice,  we have positioned ourselves to be able to help these challenged homeowners by getting involved in a number of these transactions and building a team of experts around us to help make these “untraditional” transactions flow as smoothly as possible.  Siimply contact us for more information.

WHO DO YOU KNOW NOW that is challenged with their mortgage payments OR needs to sell for less than their home is worth?? WE CAN HELP!! 

Fill out the form below to view the Market Report.

Posted by Art Wagner   |   Read More   |   2 Comments »   |   10.19.2008

St. Louis Real Estate - Home Staging WOW

Filed under: For Sellers, Home Staging, Unrepresented Seller(FSBO)

The WOW Factor

“WOW!”

That is what Sellers want Potential Buyers to say… when those buyers walk through their house for sale. 

Any house on the market can achieve “The WOW Factor” by meeting or exceeding a Potential Buyer’s expectations.  When a Potential Buyer’s expectations are met or exceeded…this could very likely lead to a contract, then a FINAL SALE! 

How does a Seller achieve The WOW Factor? 

Staging your house for sale is essential in achieving “The WOW Factor”.  In one of my earlier articles, I discussed the connection between Home Staging and Internet Marketing.  In order for Potential Buyers to say “WOW” when they walk through your house…you first have to get them TO your house. 

Price, Location, and Great Internet Pictures, along with a creative descriptive write-up will get that Buyer to make an appointment to see your house.  A Staged Home makes the Internet marketing pictures of your house for sale look great!   The old saying of “A picture is worth a thousand words” continues to hold true today.  Pictures of a house for sale can impact a Potential Buyer much more than a list of the house’s features.  

But what is very important for Sellers to understand is that pictures can be deceiving.  There is nothing worse than a Buyer arriving at a house that they saw on the Internet, and immediately the house is Below their expectations.   Meeting, but especially Exceeding a Buyer’s expectations of a house they make an appointment to see, will keep their interest, get them inside….and hopefully this will lead to a contract! 

Barb Schwarz, Creator of the Staging Concept and Founder/CEO of Stagedhomes.com, says that staging is the process of preparing a home for sale regardless of price, location, or condition.  

Staging a house for sale gets the house in the Best Possible Showing Appearance. 

Staging defines the home’s space in terms of size and function.

Staging accentuates the special features of a home.

Staging creates a “welcoming ambiance and atmosphere” which will be very pleasing to a Buyer

…and that’s when they say “WOW”! 

Does your house for sale have “The WOW Factor”?  Is it in the Best Possible Showing Appearance?  Based on your internet marketing, will a Buyer’s expectations be met or exceeded when they drive up and come through your house? 

If you are considering selling your house or currently have your house on the market…and you don’t know or don’t feel that it has “The Wow Factor”, then consider Home Staging Services.   An Accredited Staging Professional (ASP) can assist you to achieve “The WOW Factor” through Staging Consultation Services,  Hands-On Staging Services, or Vacant Home Staging Services. 

With excess inventory in this current market, Buyers can be and are being particular about the houses they make appointments to see.  Make sure that your house for sale has “The WOW Factor” online and in person! 

For more information about Home Staging Services and putting the “WOW” in your house for sale, feel free to contact me at homestaging@stlouisrealestatevoice.com .

Posted by Sue Rector   |   Read More   |   Your Comments Are Welcome!   |   10.16.2008

St. Louis Real Estate - Did You Bail?

Filed under: Opinion, Real Estate News

Last week was indeed a mess. Panic to the left of me, panic to the right, bail out, sit tight, . . .!

Thought I was going to lose it when I heard about the mortgage re-negotiation plan . . . sounded like a sure fire way to take a 5% problem and turn it into 15% problem overnight.

Anybody get excited when the news came out that there were 5 million mortgages in default because loans were issued to illegal aliens?

So the media does its thing. . . something like shouting “FIRE” in a theater and fear takes over.

That was last week. Today, last week is just a memory to the media . . . however . . .

I’m a fan of  John Hussman, President, Hussman Investment Trust, I think his news letter this week is worth sharing with you. Here are a few excerpts with a link to the entire article.

“The only thing we have to fear is the fearmongering of Wall Street itself.”

“Look - a few weeks ago, there was a $700 billion pile of money on the table, but the only way for Wall Street and bureaucrats to get their paws on it was to scare the public out of its collective gourd. They succeeded, but created the psychology that the U.S. was on the verge of depression if the bailout wasn’t passed. Having created that psychology, the crisis took on a life of its own. ”

“Property appreciation should be traded for mortgage reductions.”

“The proper way to address homeowner distress is not for the government to buy troubled mortgages and simply reduce the principal. That idea is utterly insane. If that policy was enacted, every homeowner in America would have an incentive to immediately go delinquent on their mortgage. Rather, Congress should provide for a relatively modest alteration in bankruptcy laws, allowing judges to write down mortgage principal but at the same time provide the mortgage lender with what I’d call a “Property Appreciation Right” (PAR) that would give the lender a claim on some amount of future price appreciation of property owned by the borrower. In that way, the mortgage lender would have the prospect of being made whole over time, homeowners who have faithfully made payments on their own mortgages would not be discriminated against, and homeowners in trouble would surrender some future price appreciation for immediate reduction in their monthly payment burden. ”

Read the entire article Four Magic Words: “We Are Providing Capital”

Posted by Doug Aegerter   |   Read More   |   Your Comments Are Welcome!   |   10.13.2008

St. Louis Real Estate-Market Watch October 11th, 2008

Filed under: St. Louis Market Reports

Saint Louis Real Estate Market Watch by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
October 11th, 2008
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome!

The St. Louis Real Estate Market this week continues to exhibit an air of caution.  Our pending ratio is down under 11 percent, with fewer listings coming on the market and more homes falling into the expired listing column.  Our average listing prices and selling prices are holding steady through all this and homes that are selling are doing so at an average 95.3 percent of list price.  On a comparison to last year, we are still behind by over 1000+ homes being sold in the past six months.

The majority of the prospective buyers and sellers that we talk to are choosing to stay on the sidelines right now, if they don’t have to be in the marketplace.  Those that must buy or sell in this market are proceeding very cautiously and arming themselves with education and information about our real estate market during the process much more than in the past.

We are all still waiting to see what and how the historic “Bailout” plan will be implemented, and I for one want to see how the accountability procedures are set up.  With proper accountability I believe this “Bailout” plan will work to stimulate our economy. 

The great news this week comes with oil prices falling, along with other comodities which have been falling since mid summer.  The dollar has risen 15 percent against major exporters to us, which should result in import prices sliding quickly. Lou Barnes, who writes for Inman News has posted a great article entitled “The Great Run of 08″.  Click HERE to read the complete article. 

More good news; the Fed, as of October 8th, has cut the federal funds rate by 50 basis points, or one half of one percent, to 1.5 percent.  Granted, this won’t affect mortgage rates immediately, but should trickle down in the months to come.  Read the article from Bankrate.com HERE. 

WHO DO YOU KNOW NOW that is challenged with their mortgage payments OR needs to sell for less than their home is worth?? WE CAN HELP!! 

Fill out the form below to view the Market Report.

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   10.12.2008

St. Louis Real Estate - Financial Meltdown

Filed under: Mortgage News, Real Estate News

“Too weird for words”…that’s our financial world right now.

As a result, Chicken Little is running wild!  And he is providing fuel for every single media outlet in this country.  “The sky is falling, the sky is falling…”  Well, unless you’re willing to live in a bomb shelter that your grandparents or great grandparents built and eat canned goods for the next 12-18 months, you would do well to be calm in the face of this storm that we’re in today.   Because let’s face it, the storm’s hit and the fan is blowing at high speed.

So let’s talk reality about the financial marketplace.  What are some fundamental truths that most people aren’t aware of today?  Consider that historical studies show that the Dow Jones typically experiences a sharp and sudden drop every 4.3 years.  The last one we had in the US was in 2001, so we are 2.7 years overdue.  The S&P 500 historically experiences a sudden drop of similar magnitude as we’re seeing every 10 years.  We haven’t had one since the crash of 1987, making us 10 years overdue.  What we are experiencing, while painful and frustrating, is not unexpected for those who understand the marketplace.  What IS unexpected is the fact that it this occurrence coincides with all of the backlash of the real estate failures we are seeing.

I will not waste time pointing fingers or laying blame.  There aren’t many who are without responsibility in this mess.  However, what I will highlight is the element at the HEART of our circumstance that can have the most effect at an individual level.  That is, unequivocally, consumer sentiment.  This is the only thing that we as individuals can affect personally…put our minds on the positive and move forward with life.  While unemployment has risen, it is still nowhere near the 9.0 and 10.8 percent levels of our worst recessions as a nation.  Nor is it at the average recession level of 7.6 percent.  We are at 6.2 percent in the St. Louis metro area.  That means that 93.8 percent of us do have work and we can continue to give 100% when we are fortunate to be able to go.

In the long run, if consumer sentiment continues to drop and panic continues to rise in our hearts and minds, we as individuals will only perpetuate what has befallen us.  Spending tightens up because people are afraid-afraid to lose their jobs, afraid to run out of gas (which is at a new low of $80/barrel by the way, eyes on the pumps), afraid to lose their houses.

Panic is infectious and it is paralyzing. The media has done a fine job of spreading the virus.  But let’s face it, no matter how the fat cats on Wall Street have squandered or mismanaged, we as individuals still have work to do, mortgages to pay, families to raise and nurture.  No matter what gas costs, we have to buy it to do the things in life we need to accomplish each day.  No matter what milk and eggs cost, we have to buy them to feed our children.  And we will.  Because that’s what we do.  I’m not playing Pollyanna; I have the same worries and concerns, the same bills to cover each month.  Yet I say that we are resilient.  The United States has had 10 recessions throughout history and, on average, they’ve lasted 10 months, on one occasion it lasted as long as 14 months.

What to do?  No sense complaining, losing sleep, worrying.  Know that the nation will take care of itself.  We have more resources and opportunities to restructure and rebound from the financial situation of today than in any other era in which such tribulations occurred.  Be concerned for yourself.  Take actions to make sure your future is secure.  Review your financials with your financial planner (or your spouse/partner) and create a strategy for rebuilding.  Give 110% at work and make yourself so valuable if a staff cut should come down the pike, you’re not on the short list.  Eat well, perhaps just less extravagantly.  Your health is important.  Spend normally, just more wisely.  It will stimulate the economy and support your communities.  Love your children and teach them courage and faith, not fear and scarcity.  It will be your legacy to them and their future.  The rest is all temporary.

Posted by Aprille Trupiano   |   Read More   |   Your Comments Are Welcome!   |   10.11.2008

St. Louis Real Estate Voice - Building Inspection - Fireplaces

Filed under: Building Inspection News

Are you going to use your fireplace this heating season. . .you better read this!

Cooler weather is right around the corner and homeowners should consider getting their fireplaces ready for service for those cold winter nights. Home buyers who are purchasing a home with a wood burning fireplace should ensure that the homeowner has properly maintained this appliance. A standard ASHI inspection will address most concerns a buyer may have during the real estate transaction inspection. The inspector will know when conditions require further evaluation.

The National Fire Protection Association, (NFPA) has addressed the minimum chimney inspection standards and classified three levels of inspection.

A level one inspection includes the readily accessible portions of the chimney exterior, the interior fireplace, and portions of the chimney connections that are accessible. The inspector should be looking for the basic soundness of the chimney structure and flue as well as the basic appliance installation and connections. The inspector should also verify if the chimney is free of obstruction and there is proper clearance with combustibles in accessible locations including basements, attics, and crawl spaces. Level one inspections should be included in your report, in the fireplace section, at the time of the real estate transaction.

Level two inspections includes inspecting everything listed in a level one inspection with the addition of video scanning equipment to examine and positively determine if the internal surfaces and joints of all flue liners incorporated within the chimney are performing as intended. No removal or destruction of permanently attached portions of the chimney or building structure is required by a level two inspection.

When a level one or two inspection suggests a hidden hazard and the inspection cannot be performed without special tools to access concealed areas of the chimney or flue, a level three inspection is highly recommended. Removal or destruction, as necessary, of permanently attached portions of the chimney or building structure will be required to positively determine if safety hazards or conditions exist.

Your home inspector will be able to advise you of the appropriate level of inspection needed for your particular house. In addition, regular yearly inspections are recommended for all chimneys, fireplaces, and vents. Each year unsafe chimneys cause significant numbers of injuries and deaths, and account for more than $200 million in property losses. Don’t become a statistic, get an inspection.

Posted by Harry Morrell   |   Read More   |   1 Comment »   |   10.07.2008