St. Louis and affordability go hand in hand!

Hey, hey St. Louis...  SmartAsset just confirmed something that locals have known for a long time. In a recent study, they surveyed the 189 most populous cities in country, assessing everything from the price per square foot for residential real estate to the unemployment rate to residents with a college degree to walkability..

We ranked 9th in the nation as far as being undervalued at only $104.25 per square foot.  Look at our numbers compared to the other cities, with amazing public schools to boot!

St. Louis, Missouri, coming in at ninth place, is the westernmost city in our top 10. St. Louis does have the fourth-highest high school graduation rate in the top 10, at 88%, which ranks 91st in the study overall. Furthermore, 28% of the adults in the city’s population have at least a bachelor’s degree, the fourth-highest rate in the top 10 and 61st out of 189 cities overall. The unemployment rate in St. Louis is 3.9%, the second-lowest rate in the top 10.

Zillow data shows that actual cost per square foot in St. Louis is $104.25, while our model estimates that it should cost about $100 more than that, at $205.58. For those looking to get a smart start, it’s also one of the best cities for new college grads.

Rules of Real Estate: 5% rule!

Most new homeowners learn the hard way that home catastrophe happens when you least expect it. Combat surprise financial devastation by following the 5% rule...

Set aside 5% of your purchase price per year for ongoing maintenance and upkeep. If you are lucky, you won’t have to tap it all each year, allowing you save up for larger projects and/or proactive maintenance.

Under Contract: 1112 Arbor Creek, Unit 2D in 63122

Yesterday was an eventful day of showings, contracts, and negotiation for my Sellers...

Thanks to serious strategic market planning and preparation with my clients, Arbor Creek sold with multiple offers late last night.  Congratulations, Team Arbor Creek!  

I have confessed numerous occasions on the blog that the relationships I forge with my clients (and their families) are the most rewarding aspect of my job, by far.  This deal holds a special little place in my heart, however, as I sold my client this unit as a starter home just a few years ago.  What a terrific buy it has turned out to be!  A couple years later, she walks away with a whopping 30% of growth appreciation equity, a down payment on the brand new house of her dreams.  YES, YES, YES!!

Above all else, I want to ensure that all of my Buyers make a wise investment.  This is the best case scenario, indeed. S- I am so happy for you and even more so... I am so excited for your brand new start with P.  Warms my heart. Happy for you guys! 💓

Cheers to you Team Arbor on a wildly successful sale and THANK YOU for trusting me to play such an instrumental role.  We close escrow in July!

In St. Louis and considering a move in 2019? Don't wait.  The market is red hot right now!  Have a friend who is looking for an agent?  I proudly base my business on direct referrals and wear my past client reviews like a badge of honor.  Let’s connect...

Under Contract: #650 Starlet Drive in 63031.

Even though it is only February, the swift Spring market pace is in full swing, St. Louis! If a property comes on the market properly priced and prepared, it sells within hours. My 1st time home buyer clients were quick on the draw of this adorable move-in ready ranch...

... and their urgency paid off.  Starlet hit the MLS at lunch time, we toured it by dinner time, we wrote a contract by bedtime, and over a half dozen Buyer appointments had to be cancelled by the morning as we beat them to the party! Time is of the essence friends. Hire a proactive Realtor!

#650 Starlet Drive closes escrow in April. A warm thank you and congratulations, J and A, on your big purchase!  As I have said before, I am a HUGE advocate of young people trading in rent for a mortgage.  Rent or buy?  The numbers don't lie! Buying is the best and only way to begin to build a financial nest egg.  Period.

In St. Louis and considering a move in 2019? The time to start planning is now! Have a friend who is looking for an agent?  I proudly base my business on direct referrals and wear my past client reviews like a badge of honor.  Let’s connect...

Prepaying cuts YEARS off the life of a loan...

My previous clients (1st time buyers) posted this online today... 

I had to share! Such an inspiration and testament to principal-only prepaying on a loan. They saved themselves a WHOPPING $77,000 in interest (30 yr mortgage) and years of debt by creating a prepay plan early on and sticking to it! Amazing, right? 

Use THIS helpful payoff calculator to see how how much money you can save yourself with a little discipline and a solid plan in place. 💰

Rent or Buy? The numbers don't lie!

Rent or buy?

Numbers don't lie, friends.

We bought our 1st house at 22 and 26 at the urging of my (real estate investor) father and it was probably the best financial decision that we ever made! 🏡💰 We made 47k profit (more than we COLLECTIVELY made per year at the time) in addition to a little payment equity in only 6.5 years. We benefited from tax breaks and instant equity thanks to a strategic and smart buy, which ultimately set us up for a more financially healthy future.

THE FACTS: You are either building your landlord’s nest egg and financial future or your own. Stop making your landlord rich by putting equity in their pocket and pay yourself!  You don't have to wait until you can afford your forever home or the PERFECT house on the PERFECT street.  Be smart and start building wealth now!  Work your way up to that home, step by step.  It works!

In St. Louis?  I would love to help!  Let's connect:

Higher home values and less days on the market in Missouri in 2016

I have personally experienced a distinct shift into Spring Market pace over the past few weeks, as my Buyers request more showings and my Sellers hurriedly prepare their properties prior to listing.

Missouri REALTORS® just released their January report that clearly shows that Missouri home values continue to appreciate with fewer days on market.

It is going to be a phenomenal year for both Buyers and Sellers in St. Louis and surrounding areas! In St. Louis, contemplating a move in 2016, and interviewing Realtors?  I would love to be considered!

Learn more about me HERE. See what my clients have to say about me HERE or on LinkedIn.

Real Estate Tip: List Price does NOT Determine Value!

We are gearing up for one of the hottest Seller's market in years in St. Louis! The key to maximizing profit potential comes down to timing, marketing, and list price.

Call me at 314.298.5276 to find out how much your house is worth and to get started!

Rule of Real Estate: Affordability

There is nothing worse than being "house poor". A good rule of thumb for affordability? Even if a lender offers some wiggle room, housing should take up no more than 28% of gross monthly income; housing plus other debt, 36% or less. 

Interest rates matter- be informed!

The real estate industry touts "historically low rates" but what does that mean to the average consumer at face value? Not much. Thanks to my friend and Senior Loan Officer, Andy House, for the incredible graph above to help put the current rates into perspective.

Interest rates matter.  They matter a LOT and directly affect not only Buyers, but homeowners who wish to refinance.  

Most Buyers are payment-driven. They know how much they can afford to pay each month even before they obtain an official pre approval.  

FOR EXAMPLE:  Let's assume that you are comfortable with a $1,250 interest payment...

Your housing affordability DROPS with each increase in the mortgage interest rate. 

Per above,  if mortgage rates rose up just 1% from 3.75% to 4.75%, you would lose a whopping $33,750, or 11.25% of your purchasing power. If rates rose 2% to 5.75%, you would lose $62,003 or 20.67% of your purchasing power. That is serious money, people!

In short: the lower the interest rate, the more house you can afford for the SAME PAYMENT. Rates directly impact your affordability, Buyers. Don't let these great ones slip by as 3rd quarter increases are projected.

If you are contemplating a purchase over the next few months, I highly recommend getting a loan preapproval now. It is the first step of the buying process, and rates are still comfortably hovering below 4%.   

Learn more about Andy House HERE and feel free to contact him directly for a free approval or mortgage advice. He is stellar, my clients love him, and I trust him emphatically after years of wonderful service to myself and my clients.

St. Louis County Tax Tip- review your 2015 reassessment!

Heads up, St. Louis‬ County Homeowners!

Tax talk is no fun, though tis the season!  If you have not yet been notified... 2015 property reassessments have been recently released by the St. Louis County Department of Revenue. The County Assessor is required by Missouri state law to reestablish the fair market value of all real property as of January 1 of every odd year. The reassessed value is then applied to the tax rates.   How does this personally affect you?  It is highly likely that your property taxes will either go up or down depending on your fluctuation.

To review your latest valuation, visit http://revenue.stlouisco.com/ias/  and search for your property by owner name or address search.  Do you feel like your new valuation is unfair or unjustified?  You may APPEAL!  To appeal your valuation online, visit  http://revenue.stlouisco.com/AssessmentAppeal/OnlineAppeal/OnlineAsmtAppeal.aspx for more information.

2015 Real Estate Tip: Watch the rates!

Lower interest rates equal higher affordability, plain and simple. Experts predict a raise in rates by mid-2015, the 1st increase by the Federal Reserve since 2006.

Rates have been historically low for almost a decade, though I urge people not to take them for granted per below...

While home loans are predicted to remain below a super healthy 5%, this could drastically affect those who soon plan to purchase a car or who currently hold credit card balances.

Knowledge is power, folks. Financially plan your 2015 accordingly!

Read more here: http://goo.gl/AdKMch

Rule of Real Estate: Know your numbers. Check your credit score for FREE

Answer this question honestly:  

When was the last time that you pulled your credit reports? 

The fact is, your numbers matter!  I did the annual examination of my credit reports this AM- fast, easy, and painless.  I figured that this would be the perfect time to share the information on the blog with you!

Did you know that under the Federal Fair and Accurate Credit Transactions Act (FACTA), you are entitled to a free peek at your credit report once per year?  To comply with their obligations under FACTA, the three major credit reporting agencies (Equifax, Experian, and TransUnion) organized the web site AnnualCreditReport.com,  allowing consumers a way to easily exercise this right.  The website is safe and FREE TO YOU, providing all American consumers an easy mechanism to receive their three free credit reports per year.

Ok, so why don't people use this service?  After 13 years of discussing money matters with clients, I hear 4 reasons repeatedly.

1) I didn't know about the service.
2) I hate talking credit.
3) I have no plans for a big purchase, so why bother
4) By FAR, the most common- I don't want to damage my credit

Whether preparing for a large purchase (house or car) or NOT, an annual credit report check is necessary and advised to ensure that you are "moving in the right direction", that your identity has not been compromised, and to allow you the ability and adequate time to dispute any discrepancies. 

I equate the fear of facings ones' numbers to someone who refuses to go to the doctor every year.  The fact is: knowledge is power. Once you rip off the band-aid and HAVE the information in hand... you can work with it. When it comes to your finances (or your health for that matter), ignorance is NOT bliss.  If your goal is to build and maintain a healthy credit score, checking your credit report on a regular basis is a good first step. 

Just do it.  Face the music.  Take control of your finances and pull your report HERE.  You will be relieved that you did, I promise!

Per the Annual Credit Report site:  Keeping an eye out for three things can help to have a positive impact on your credit score: suspicious information, score factors and signs of identity theft. It’s a common misconception that having your credit checked will harm your score and this isn’t always the case. 

There are two types of credit inquiries

Hard Inquiries
These types of inquiries, such as when a potential lender checks your credit report to approve a loan, application, rental agreement or other contract, can show up on your credit report and damage your score to some degree. Companies will need your permission to review your credit report. 

Soft Inquiries
These inquires occur when you’ve given permission to access your credit report for things like employee background checks or when you review your own report. Soft inquires won’t affect your credit score.

Checking Your Credit Report for Signs of Identity Theft

The following issues may be indications that you’re a victim of identity theft:

• Accounts that don’t belong to you
• Inquiries that you haven’t authorized
• Addresses that you can’t recognize or haven’t lived at
• Checking for Unfamiliar Information

Sometimes information on your credit report is reported incorrectly by the company to the credit bureau. Some examples of incorrect reporting include:

• Accounts that are open being reported as closed
• Late payment reports that never occurred
• Incorrect numbers that deal with credit balances or credit limits

Reviewing Your Credit Score Factors

Your next step is to take a look at your credit score factors. These detail those issues that hurt or help your credit score. 

Positive credit score factors include: punctual payment history, age of accounts and low balances. 

Negative score factors include: being been more than 30 days late, having several inquiries, and having one or more legal judgments in your credit report.