Whitaker Music Festival 2014 Concert Schedule at the Missouri Botanical Garden

The Whitaker Schedule kicks off this week!  Nothing better than music under the stars at the garden...

Keep Your Eye On The Big Picture

One of the more interesting aspects of being a Realtor? When people learn what you do for a living, they typically take interest.  

Despite one's housing or financial situation, I find that most people enjoy "real estate talk".  Perhaps they are curious about the current market, trends, comps, or just how much their neighbor's house sold for.  Regardless, most people tend to be friendly and engage immediately.

It is fun and never gets old to me. 

Yesterday, while getting some work done at a local coffee shop, a fellow patron must have overheard a phone call with one of my clients. When I completed my call, he turned to me and asked "So how IS the current real estate market?".  This is a question that I get quite often.  Most people have genuine interest in the real estate climate, as our industry tends to be a direct reflection of the true state of the economy- not the one reported on the news.

His next question, however, really got me thinking: "What is the biggest work obstacle for you at this point?". 

Hmm.  Again, this is a question that I have entertained numerous times over the last 12 years, though it never ceases to amaze me how dramatically the answer has shifted over time.

10 years ago, my answer would have likely referred to the difficulty of obtaining business and trust as someone new to the industry.  7 years ago, my answer would have likely referred to the urgency in which Buyers had to act upon finding "the one", as listings were selling before even advertised.  3 years ago, my answer would have likely addressed how impossible some banks made foreclosure deals and/or the struggle Sellers faced with decrease in equity, financial means, and number of Buyers.
 
These are the facts about the current market:

• Appraisals remain conservative at times. 
• Obtaining financing can still be tricky. 
• Inspection negotiation has grown increasingly complex.
• Distressed Sellers do not have a lot of equity or room to work with. 
• People are still a tad nervous about the economy, particularly with the recent government shutdown and talks of the "debt ceiling".  

Is it possible to successfully navigate through these market factors?  ABSOLUTELY.  In fact, rates are still good, Sellers have recouped some equity, and there are still GREAT buys to be had!  While the deals can be a tad tricky at times and require a little more care, this remains a decent market for both Sellers AND Buyers!

With some serious thought, my answer to his question is none of those things though is related to ALL of those things...

My biggest obstacle?  In this market, it has become increasingly difficult to get Buyers AND Sellers to remain focused on the big picture: the legal transfer of a property from one party to the next.  

In navigating the current market condition that I mentioned earlier, it is crucial that a Buyer AND Seller try not to allow their emotions to get the best of them. In the heat of a complicated financing or negotiation process, that may be difficult at times. 

While not always successful, I try to urge my clients to resist the temptation of diving into the all-too-common  "I am going to win" mode.  Buyers need to remain realistic.  Sellers need to maintain an open mind.

Emotion is the single most tricky obstacle to overcome in this market, in my opinion. Reactions like  "Who does this Buyer think he IS?" or "This Seller is  unreasonable" tend to be more common in a somewhat strained economy, due to the additional bumps in the road.  A lack of focus on the big picture of the involved parties- Buyer and/or Seller- has resulted in the demise of a number of deals for me over the last 12 months, unfortunately.     

IMPORTANT QUESTIONS TO ASK...

BUYERS:  Do you want this house?  Do you REALLY want this house?  Is it "the one"? Are you willing to compromise on some things to ensure it indeed becomes "the one"?

SELLERS:  Are you ready to move?  Do you NEED to sell?  Are you willing to risk this Buyer terminating the contract and perhaps not successfully obtaining another one for some time?  

FACT: a sale or purchase of a property is a business transaction and the focus should be on BUSINESS.  I find that the most successful and least stressful deals for ALL parties involved are those in which both parties remain level-headed and keep their eye on the big picture: the successful transfer of a piece of property from one party to the next.

MY MOST VALUABLE ADVICE TO THOSE NAVIGATING THE CURRENT REAL ESTATE MARKET: 

Allow your Realtor to keep the details in check, which in all honesty, is allowing them to do their job.  Interview and be picky when choosing representation, but then TRUST and listen to their professional advice and guidance.  Try not to take things personally.  Remember that this is a business transaction- numbers matter and do not lie.  Accept that there are some things that are out of our control but typically nothing that we can't troubleshoot as long as all parties involved remain calm and focused on the big picture. Remember that we are not privy to the minute details of the party on the other side of the transaction, nor SHOULD we be.  Most importantly, remember...

 

 

 

This very much applies to real estate, as well.  A week, month, 6 months, a year after closing... the little stuff will no longer matter.  Let it go and focus on the BIG PICTURE- the happily ever after in your gorgeous new house!

9 Vital Questions To Ask Your Realtor about a Property Before Drafting A Purchase Offer

 

So, you found a fabulous property and it feels like it may be a fit!  The key to making it "the one" is drafting a well thought-out offer.  Considering certain property/neighborhood factors and preferences of the Home Owner makes your contract more attractive to a Seller and often results in a Buyer obtaining more of his or her own personal contractual terms and requests.

 

Below are 9 vital questions that you should ask your Realtor about a property before drafting a purchase offer and WHY each question is important... 

 

1) How long has the property been on the market and what is the average market time in this area?

Why: Market times indicate supply and demand for properties in the area and can give you an idea of whether it’s a buyer or seller driven market.

2) Have there been any price reductions during the listing period?

Why: A price reduction may indicate a seller’s desire to attract an offer.

3) What is the price range of recent sales in the neighborhood?

Why: This information may indicate the home seller’s expectation.

4) Are there any other active offers being considered by the home seller?

Why: Knowing if you are competing for a property with another home buyer may affect the terms of your offer to purchase.

5) What is the motivation of the seller?

Why: Motivation is a key element in any negotiation. As an example, if the seller has already purchased a new property, your ability to close quickly may be an attractive element of the negotiation.

6) What improvements have been made to the property?

Why: Recent enhancements can effect the buyer and seller’s perceived value of the property.

7) When would the seller like to move?

Why: Knowing when the seller wants to move can be helpful during negotiations.

8) What personal items are included in the sale?

Why: Anything the seller is willing to leave behind that you won’t need to buy when you move in has real value. Consider those items in your offer.

9) Can I have copies of all home seller disclosures?

Why: Most states require all home sellers to provide property disclosure statement(s) for your review.

Information per the Coldwell Banker Gundaker Home Buyers Guide.  For a full copy of the guide, email me at cnenonen@cbgundaker.com.

Top 10 tips for buying your first home

I found a fantastic article on MSNBC this AM- blog must share. Home Buyers, even those with a few transactions under their belt, ask me all of the time "What is the first step, Carrie?". The advice in this article is phenomenal, and provides the perfect starting point for ANY buyer...

Top 10 tips for buying your first home
Planning and staying within budget are keys for having a good first-time experience

By Michele Lerner with Investorpedia.com

If one of your goals this year is to make the shift from renter to homeowner, you should begin preparations now for an exciting emotional and financial adventure.

Before you start the home-buying process, make sure you are ready to buy a home where you will live for three to five years or longer, since it can take that long to build equity in a home and recoup your investment costs. Think about your dream home and your dream neighborhood, but recognize that you may need to sift through these dreams to find a community and a home that you can comfortably afford.

Anyone who has watched the news in the past few years should be aware that home prices have fallen in most real estate markets, and that interest rates are at historically low levels — both factors that make buying your first home more affordable.

Here are some tips to get you started on the step-by-step process of buying a home:

1. Check your credit score
Lenders base your mortgage qualification on a variety of factors, including your income and assets, your debt-to-income ratio, your pattern of savings and your job stability. But the most important factor in today's tightened credit world is your credit score. Lenders tie the interest rate you must pay to your credit score, so that borrowers with a score of 720 and sometimes 740 and above are the only ones who will pay the lowest mortgage rates. Borrowers with a credit score below 620 may not qualify at all for a mortgage until they can improve their score.

2. Set your housing budget
A lender will tell you how much you can borrow, but each potential homeowner should create a simple budget for themselves with income and spending to determine how much they are willing to spend on housing payments. Financial experts recommend that homeowners spend a maximum of about 30% of their gross monthly income on principal, interest, homeowners insurance and taxes. Don't forget to budget about 1% of the home price for condo or homeowner association fees and maintenance costs.

3. Start saving and stop spending
Once you have an estimate of your mortgage payment, start saving the difference between that payment and your current rent every month. In addition to building your savings, this allows you to get comfortable with a higher housing payment.

4. Meet with a lender
Get pre-qualified for a mortgage loan before you look at homes so you can avoid falling in love with a home you cannot afford. You may be surprised to discover you can afford something pricier than you thought since interest rates are so low. Make sure you ask your lender about your variety of loan options and get an idea of how much cash you will need for a down payment and closing costs.

5. Find a reputable realtor
All buyers should have a realtor to represent their interests during negotiations and to help buyers recognize the value in different homes and neighborhoods. Your realtor should be experienced, knowledgeable and familiar with where you want to live. Trusting your realtor is vitally important to buying your first home.

6. Narrow your priorities
Decide whether it is more important to you to live in a particular type of home (a single family home with a garage or a condo in a high rise) or in a particular neighborhood. If you cannot find or afford everything you want in your first home, you may need to make some compromises.

7. Choose a neighborhood
Some neighborhoods hold onto their value more than others during a housing downturn. Work with a knowledgeable realtor to find a neighborhood that meets your needs - somewhere you will be happy as well as feel safe that home values are stable or rising.

8. Make a reasonable offer
If you love a house and don't want to lose it, don't make a low-ball offer. Some sellers are willing to negotiate and others are not. A trustworthy realtor can walk you through the process to make sure you are dealt with fairly.

9. Have a home inspection
Never buy a home without having it inspected. Not only are you looking for serious flaws in the home, but you can learn a lot about home maintenance and what to expect in terms of repairing or replacing systems and appliances as an owner.

10. Finalize the details
After the contract has been signed, make sure to stay in constant touch with your realtor and your lender to be sure your financing is taken care of along with all insurance needs. A good realtor will have a checklist to make sure everything is accomplished in time for settlement.

The bottom line:
Buying your first home can be an exhilarating experience, provided you do some research, stay within a comfortable budget and work with reputable professionals who will guide you through the process.

Obama Tax Credit Extension Specifics...

I have had SEVERAL clients contact me over the past 2 weeks, inquiring about the specific guidelines for the new tax credit extension. Particularly in regards to current home owners.

The new guidelines are as follows:

Who Qualifies for the Extended Credit?


First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.


Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.


How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.


How is a Buyer's Credit Amount Determined?

Each home buyer’s tax credit is determined by two additional factors:
1. The price of the home.
2. The buyer's income.

Price: Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.


Buyer Income: Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.


If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.


Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Attention Move-up buyers...