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Sell Price vs List Price - What a Few Years Makes

It took us three times - three contract wars - to purchase our first house in 1993...We were a third and fourth "back-up" contract each time and we were at nearly full price each time.  We lost to bidders who were over list...And thus began the rising home prices, way back then.  And why not - the supply was there!  Get while the getting is good.  Not true today, right?  Well, not often. Back then some agents even wrote escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars - without rewriting - in the interest of winning bidding wars. Very rarely is there such competitive bidding today. 

Today the sell price vs. list price ratio is about 96% ... Once sellers get their prices DOWN to true market value.  Those homes priced at market value are snapped up in 30 days...buyers ARE there.  The problem we see now is over-priced homes with unrealistic sellers or those who "have" to get their price because of what they owe.  These

Time to Buy

Today, this week, this month, this YEAR...is the best time EVER, EVER...TO BUY ! Selection, selection, selection for starters! Regardless of your price range, there are plenty of houses from which to choose. You have many options.  Serious sellers are priced right...and some have to sell right away and are selling way under market value.  If you are house-handy and can buy a neglected home - you may be able to buy even cheaper! I just helped a family buy at 33% off list price and get them into a larger home, with more amenities and in the subdivision they wanted

Market NOT Down in Midwest

The home market tumbled in August to the slowest pace in 17 years, while the average sales price fell by the largest amount on record, demonstrating the depth of the problem that Washington is trying to solve.  The Commerce Department said that new homes sales fell by 11.5 percent in August to a seasonally adjusted annual saels rate of 460,000 units, the slowest pace since January '91.

The average price of a new home sold in August dropped by a record amount of 11.8 percent to $263,900 compared to the July average of $299,100.  The big drop in new home sales followed news that the sale of existing homes were down 2.2 in August to a seasonally adjusted annual rate of 4.91 million units. The report on new home sales show that business was off in every region of the country except the MIDWEST, which posted a 7.2 percent increase.  Sales plunged by 36.1 percent in the West and were down 31.9 percent in the Northeast.  Sales were more modest in the South falling a mere 2.1 percent.

Challenge Your Tax Assessment 

With prices and taxes rising everywhere, what's a consumer to do?  Challenge what you can!! I copied from the St. Louis County Government Assessment Web page: http://revenue.stlouisco.com/Assessment/ some information about challenging your tax assessment. 

Assessment Division the Assessment Division discovers, identifies, classifies and assesses all real and personal property within Saint Louis County. The assessed value is applied to the tax rates established by the taxing districts to determine the amount of tax levied against a property. Functionally, the Division is comprised of:

• Abstract
• Appraisal report
• Personal Property
• Real Property by Missouri State law, the Assessor is required to reassess all real property to market value every other (odd) year. The process involves estimating values on about 389,000 parcels of real property, providing owners the opportunity to appeal, then finalizing, certifying and communicating the values to the individual taxing districts. Throughout the process, the staff of the Assessor’s Office makes every effort to treat our customers fairly and to provide information in a clear and accessible manner.

Phil Muehlheausler Assessor

Saint Louis County Assessment
41 South Central Avenue
Clayton, MO 63105-1799

Assessor's Office/Referral to an Advocate: 314-615-4230

Just click here: dtippit@remax.net  and rant!

FSBO-NOT, Why?

Mostly because (85-90% of the time) your buyer will be represented by an experienced real estate professional - and knowledge IS power - (agents, who will expect for a minimum 2.7% commission from you).  Here are other FSBO Facts:      

• Buyers know the commission is built into area comparable house sales and will deduct 6% to 7%, plus an additional 3% for negotiating position from their offer to FSBO sellers.
• FSBO buyers want a bargain and want to “save” the agent commission. Today’s buyers are busy. They don’t have time to seek the FSBO out.  They look on the Internet or want a realtor to research the market for only the houses they’re interested in.
• Buyers will look at average 10 to 12 properties before making a purchasing decision.  The number one source of available properties is the Multiple Listing Service.
• Agents provide the crucial third party negotiating buffer between buyer and seller; with the trained intent on getting the most money for the seller.
• FSBO Sellers typically lack market knowledge, trend interpretation and pricing experience to produce successful real estate sales results.
• FSBO Sellers have limited marketing resources to attract buyers.  More buyers mean a higher price faster.
• As many as 35% of buyers are relocating from out of town and rely on the real estate community for potential purchases.
• Finding a buyer is the first step in the sales process. Residential sale contracts are written in favor of the buyer; with many dissolution clauses.
• National statistics show only 13% of homes are sold without an agent and many of those include a commission for the buyer’s agent with no representation for the Seller.

Just click here: dtippit@remax.net  and rant!

BUYERS, BETTER DO THESE:

Approach home buying like any other important business endeavor - in an organized and systematic fashion. Here are some tips to help you along the way:

Don't buy if you can't stay put...If you can't stay in one place for a few years, owning may not be for you at this time. With home selling and buying transaction costs, you could lose money if you sell any sooner.

Shore up your credit: Make your credit history as clean as possible. Obtain copies of your credit report. Verify the facts, and fix any problems. Don't buy anything big like a car before getting a home loan.

Aim for a home you can afford.  Use an online calculator for a clear picture of how income, debts, and expenses affect what you can afford.

Save some money. The money for down payment and closing costs needs to be liquid. One buyer couldn't afford the home he chose because his down payment money was in the market and stock values had dropped.

Look for a neighborhood first. A great home in an undesirable neighborhood is not worthwhile from a quality of life or home value standpoint. Learn what you can (online, neighborhood visits or at local libraries) to make sure your needs are met.

Buy in a good school district. Even if you don't have school-age children, when you are ready to sell a strong school district helps to boost property values.

Seek assistance from a professional. Choose a buyer’s agent with your interests at heart to help you during the bidding process.

Choose carefully between points and rate. When choosing a mortgage, there is generally an option of paying additional points - a portion of the interest paid at closing - in exchange for a lower interest rate. Take the points if you plan to remain in the house seven years or more as the lower interest rate saves more in the long run.

Get pre-approved before house hunting. Pre-approval, based on your actual income, debt and credit history, lets you make an offer when you find the right house.

Hire a home inspector. Consider independently hiring a home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. The inspector highlights problems that could eventually require costly repairs.

Whether you're a first-time homebuyer or a veteran, buying a home is a complex process. It’s important to figure out what kind of home you want, which amenities are most important to you and how to estimate your price range so you don't fall in love with a home that is too expensive, which you later regret.

Whether you're a first-time homebuyer or a veteran, buying a home is a complex process. It’s important to figure out what kind of home you want, which amenities are most important to you and how to estimate your price range so you don't fall in love with a home that is too expensive, which you later regret.

Just click here: dtippit@remax.net  and rant!

WHO'S BUYING NOW?

Gen X and Gen Y: The median age for all homebuyers is now 39, which is solidly in the post-Boomer Generation X group. In addition, 68% of first-time buyers (who make up 39% of home purchases) were under age 35 last year. Many of these were the under-30 Generation Y “echo-Boomers” and the rest were almost all Gen Xers. 

Gen X types tend to be cut and dried.  They don't need to be friends with you - whatever their goal, they just want it now.  Younger Gen Y folks love their data and expect ot collaborate with you.  None of these groups are driven like the Boomers...

Empty-Nesters: As of last year, 40% of U.S. households had children under 18. Know what that means? A whopping 60% of all households are empty-nesters! 

More Single Women: In 2007, 20% of all homebuyers were single women. Among first-time purchasers, one in four were single women. 

Increasing Ethnic Diversity: Among first-time purchasers last year, 24% were non-Caucasian and 12% were foreign born. Also, with the dollar worth less, U.S. properties are a real bargain internationally, so there are more overseas buyers than ever before.

Just click here: dtippit@remax.net  and rant!

SEEK ALTERNATIVES TO FORECLOSURE & BANKRUPTCY... 

If you are behind on your mortgage payments, or are getting very close, you are not alone! Hundreds of other local homeowners need assistance.  Don't give up. Get help. First: Call your lender and tell them you want to work out a plan to pay.  They don't want your property...they want your money!  Find some way to get some money to them. Borrow from friends or family...Sell something to satisfy a portion, even a small portion of your debt and work with your lender to get back on track...and do it! You may be able to refinance...you may be able to extend your loan out a few years and lower your monthly payment to an affordable amount.

Bankruptcy and or foreclosure will ruin your credit for years.  You will not be able to get ANY type of loan or credit.

Second: Sell your property and downsize if you can.  If you owe more than the house is worth your property may qualify for a "short sale"...which the bank takes less for what is owed on the loan upon the sale of your property. It's not simple and you'll need help.  You may owe taxes on the forgiven amount.  You may be able to obtain an unsecure line of credit to fulfill the difference.  Again get help.

Third: Don't wait...you don't have much time!

I, amongst many people, understand that hard working people sometimes encounter unforeseen circumstances and fall behind on financial obligations.  We do not focus on the reasons why you are in need, but rather how to end the problem. Your situation is NOT impossible, even if others have told you so. 

We are educated in the short sale process and can help you. We don't charge you anything--the bank pays our commission. You have no risk or up front expense.

There is limited time due to the foreclosure process.  Call now: 314-651-9900.  Our services are confidential and guaranteed. 314-651-9900

Whatever you do, don't declare bankruptcy, which stays on your credit for years, before calling us.  We have hand selected professionals who can help you.  Most homeowners are not aware of all their options.  We invite you to take a few minutes of your time and assess your situation.  You have a choice.  You have numerous options over foreclosure or bankruptcy.

Get ready for 2010!