What Is Making Home Seller’s SCREAM In Frustration?

What if, I could save you $40,000 on your next home?  Sounds good right?

But, what if, your current home would sell for $25,000 less than you expected.  Does this still sound good?

What would YOU say if on the same day you could gain $40,000 on your purchase, but lose $25,000 on the sale of your current house?   That is a $15,000 gain in one day.

To me this is an easy YES, but you would be shocked at how many people can not make it past this hurdle.

If we tell a home-owner, the house they love, where they have lived for years, has gone down in value, it can be emotionally crushing.   When they compare the loss in value on a home they LOVE, to a future discount on a home they don’t love yet …..it can just be EMOTIONALLY HOSTILE.

In a market like this where inventory is high and sellers are motivated, a buyer can achieve either:

1. To simplify your budget by owning a lower priced home. Or,
2. Own a home nicer than you ever thought possible because of the 3% interest rates.

But, neither will happen unless you can release the emotional shackles that tie you to current house.

The question is:  Can you do it?

Can you say goodbye to the current house and find a home that suits ALL of your needs?  Including the financial ones?

     On occasion, I've been able to cajole buyers into a house over their protests.  Usually, I set the rules of the game before we even get in the car..."I made an appointment, these sellers prepared for your showing and vacated their house, so we WILL look at it, even if it's just our of courtesy for their efforts."  

     Most agents are unarmed when they are showing property, so they can't force someone at gunpoint to look at a house when the outside is not attractive!  First impressions are really important!

 So, if you are getting your home ready for the market, start by standing out in front of your home...What's more appealing...this?

or maybe this?

(sometime soon I'll talk about the importance of good photography, and how framing a front shot so that more than half of the picture is NOT of the pavement in front of the house is probably a good idea.  But, I digress...)

So, here are some quick and easy guidelines, rules, regulations,decrees, or ultimatums, ...for staging the exterior of your home.

1.  Shrubs and landscaping should ENHANCE, not hide, the home! 

2.  Tree limbs should be far enough from the ground that you can walk under them without putting your eye out!

3.  Flowerbeds should be clean and look good in ALL seasons, with a sharp edge, free of leaves and debris.  

4.  The lawn should be mowed and neatly edged.

5.  Overseed any bare or thin spots in your lawn.

6. Arrange for a lawn company to keep your lawn deep green and weed free.

7.  Mulch...mulch...mulch...no matter the season

8.  Remove all trash cans, scraps, and trash.  Restack wood piles, and remove all storage containers, children's toys, and any other unnecessary objects.

9.  Make all windows spotless.  This includes frames around the windows, sills and shutters.

10.  Paint or clean ornamental fences, light posts, and railings.

11.  Clean all outside light fixtures inside and out.

12.  Open up and clear any pathways to other amenities on your property, including trimming low hanging branches.

13.  Repair cracks in the driveway and sidewalks.  Caulk is your friend...

14.  Clean gutters and paint or wash trim if necessary.

15.  Consider an exterior power washing.

16.  If you think your front door could use a coat of paint, you are right!  At the very least, clean the door and hardware.  Make sure your doorbell works and that it is not cracked or broken.

17.  Keep your front porch swept.

18.  Have an attractive welcome mat for people to wipe their feet on.

19.   Make sure the mailbox is clean and rust free.

20.  If  you have outdoor furniture, make sure it is clean and inviting, and someplace someone would actually like to sit!

I know that this list seems long and maybe even the work of someone with a severe case of OCD.  The fact is that when sellers take the time and trouble to tackle this list, their homes sell quickly, and usually for the highest price possible.  And in my experience, the entire transaction goes smoothly.  

I'll give you some time to get this done, and next time we'll work on general inside appeal!  Have fun!

Here is just a sampling of a few things you may want to check out! 

·         Gently Used Coats and Canned Food Collection at “Play Your Art Out” SLTRC Studio at 100 Chesterfield Mall  http://chesterfield.patch.com/events/gently-used-coats-and-can-food-collection

·         St. Louis Blues Hockey GameSaturday, January 21, 2012   St. Louis Blues vs. Buffalo Sabres. 7:00 p.m. www.stlouisblues.com, (800) 745-3000 or (314) 622-5400

·         The Brothers: An Evening of Allman Brothers Music Date: Saturday, January 21, 2012 Venue: The Pageant   Featuring Danny Liston, Dave Klaz, Steve Pecaro, Dickie Steltenpohl, Harold Draper, Gabe Strange & Mark Kersten. 8:00 p.m. www.thepageant.com, (800) 745-3000

·         Winter Jam 2012Date: Saturday, January 21, 2012 Venue: The Family Arena   www.familyarena.com, (636) 896-4200 ·        FAMILY CULTURE DAYS
St. Charles, MO Sunday, January 22, 2012
Foundry Art Center, 520 N. Main Street
Experience displays by artists demonstrating fine art & traditional ethnic folk art. Art activities for children, ethnic food, and more..
Free
For more information call 636-255-0270
  or visit foundryartcentre.org.

·         EAGLE WATCHING·         , Saturday, January 21, 2012
11 am - 2 pm
Fort Belle Fontaine Park
Spend a day with the Friends of Fort Belle Fontaine Park observing the bald eagles along the Missouri River. The World Bird Sanctuary will be on site from noon until 2 pm. A guided hike will be provided along the three-mile trail. Hikers and bikers are welcome to take the trek on their own throughout the day. Refreshments will be served. Be sure to dress for the weather and meet at the Grand Staircase.
Free
For more information call 314-615-5270 ·         January 22, 2012
12 pm to 4 pm
National Great Rivers Museum
An educator from the World Bird Sanctuary will be on hand with a live eagle display in the classroom. Bring your camera to this free program and then tour the National Great Rivers Museum and the Locks and Dam.
Free, donations appreciated
For more information call 1-877-462-6979

Our buyer specialists are able to devote 100% of their time to helping buyers in the St Louis market find the home that is right for them.  They have a wealth of experience and resources to save buyers time and money as they make one of the biggest investments of their lives.

Mark brings expertise in everything from foundation defects and repairs to raw land, and focuses on helping buyers assess the the quality of what they are buying and the quality of the investment they are making.  He has closed over 1,000 sales, and has earned the respect of his peers and his clients alike. 

Mark will be blogging about his impressions, thoughts and musings on the buyer side of the real estate world, and I think you'll enjoy his point of view!

I've covered the official announcement, now let me tell you a little about Mark...he's a huge overachiever with an amazing brain and a big heart.  He's married, and has 2 great kids.  He works hard and has his priorities right.  I think you are going to like him!

 “A Tale of Two Homes”

This is an accurate Tale of two nearly identical homes on a St. Louis street called Country Ridge Dr. As fate has it four years ago these two competing homes were for sale at the same time. 

One was occupied, in above average condition, had a motivated seller, and was for sale for $219,900.  These highly motivated owners had only 1 house showing in the 2 weeks prior to WHAT HAPPENED NEXT.

Next, the home directly across the street came on the market.  It was the same floor plan, same age, same builder, was in a below average condition, and it was a FORECLOSURE.  The sign went in the yard on a Wednesday with “no showings until Saturday”.  The Bank advertised a price at $199,900 because the home needed extensive repairs and it had a shaky Title situation.

That Foreclosure house had 14 showings on Saturday and there were 9 offers the first day…including one from my customer.  By 5:00pm Monday those 9 customers had competed with each other, like wolves over a hunt, with the winning contract being a whopping $216,500.

A month later the occupied house, right across the street, in above average condition sold for $207,500.  A full $9,000 below the piece of junk foreclosure sale.

REALLY folks?  Is this what we have come to?  Can we be that myopic to compete with each other over an inferior product, overpay for junk, and just to win the trophy over others?   Does there have to be COMPETITION to get our attention?  A former start-up called E-Bay learned years ago, the premise that if we compete for junk, and win, somehow we are satisfied.

In 2012 Real-Estate, nearly half of home shoppers will be so focused on the foreclosure and bank-owned junk that the good homes with motivated sellers will be invisible to them.  Hey, I know it’s tempting to find a foreclosure, make a low offer, and try to steal something.  We can even tell our parents and friends what we did and perhaps demonstrate our shrewdness as a person to be taken seriously. Right?

If you’re not mindful of your motivations you could get swept away by an investor mentality of buying a foreclosure piece of junk for a very low PRICE.  Sadly, in the long term you may realize your completed Cost was so high that your Trophy gets tarnished beyond recognition. 

Hey all, I see this all the time. Even if the buyer gets a healthy 10%-25% discount on a foreclosure.  It is seldom worth it.   That up front PRICE advantage disappears into an escalated COST, expensive cash repairs, a 3-month root canal of unexpected charges, and often a home that is difficult to resell.

My advice to the Savvy real-estate buyer of 2012 is ….KEEP AT LEAST ONE EYE on the traditional homes with many updates, stable foundations, healthy Title’s, and motivated sellers.  You may find your best matches there. 

Owning a home does have tax advantages.  They aren't set in stone, and they can and do change, but here are items to remember as you prepare to file your 2011 taxes.  If you bought a home this year, congratulations, you'll have more deductions!

  Remember to consult your tax advisor about what expenses you can deduct:

• Mortgage interest and real estate taxes.  Washington keeps kicking around the idea of removing or modifying the mortgage interest dedutction...NOT a good idea in my humble opinion!
• If you bought your home this year, deduct any money you paid toward points or origination fees.  You can find this on your closing statement, or your loan documents...if you can't find those, contact your real estate agent or your loan officer!
• If you have an adjusted gross income of $100,000 or less, you may be able to deduct premiums for PMI (Private Mortgage Insurance).  This is only allowed on loans that originated after December 31, 2006 and before January 1, 2011.
• If you moved 50 miles or more for a new job, deduct packing, moving and storage of your your household goods
• Remember to keep all receipts of permanent home improvements AND mortgage closing costs...they can be figured into the adjusted cost basis of your home when you go to sell.  Right now you are not subject to capital gains tax on sale profit of $500,000 for married couples and $250,000 for single owners, but I bet that will change in the future - that's when you will need these expenses!
• If you did a short sale on your primary residence this year, the debt discharged by your lender may be excluded from your taxable income.  If you are considering a short sale, please please please talk to legal and tax advisors!
• Green Tax credits include insulation, windows, heating and cooling systems and water heaters...high efficiency refrigerators, clothes washers and dishwashers.  It's my understanding that this expires December 31, so if that hot water heater or washer or fridge is limping along, you might want to head out to the appliance store today.  I think I have a coupon for Lowes...I can email it to you if you contact me today!

     In the St Louis market, some areas will continue to struggle with falling values in the new year.  In areas where inventory remains high and higher foreclosure rates prevail, it will be some time before values stabilize.  Overall though, the number of homes sold has risen steadily year to date compared with last year, and declining prices do show an encouraging trend. 

     There are very good opportunities to buy and sell right now, but buying is certainly a lot more fun that selling!  The old adage "it's both a price war and beauty pageant" has never been more true.  This is a "shoulda-coulda-woulda time, where people will look back and wish they had taken advantage of current interest rates to either upsize or downsize into a great home. 

        Holiday ZootiqueFriday, December 9, 2011, 9:00 AM Shop in The Living World for unique gift ideas, ornaments and much more.·        The Rat Pack: Live at the Sands

  - The Fabulous Fox Theatre'The Rat Pack' brilliantly recreates the ultimate meeting of three legendary performers. In 1960, while filming the casino robbery caper 'Ocean's Eleven' in Las Vegas, Frank Sinatra got together a group of his closest buddies for impromptu concerts at the Sands Hotel. The Sands is no longer, and Frank, Sammy and Dean have left us, but 'The Rat Pack' transports you back to that moment in popular music history that has never been equaled.·       

Clint Black....Friday, Dec 9, 2011, 8:00 PM Lumiere Place | Downtown

        THE ONE-HOUR IT'S A WONDERFUL LIFEMagic Smoking Monkey Theatre presents a parody of the holiday classic...for audiences with short attention spans. Enjoy the...laughter, tears and heartwarming holiday fun as George Bailey battles the evil Mr. Potter and his army of orcs and trolls.
.Friday, Dec 9, 2011, 10:30 PM - 11:30 PM  LindenwoodUniversity·

         Ambassadors of Harmony Sounds of the Season  University of Missouri - St. Louis Social Sciences and... | Mid-County NorthAll Day,
A beloved St. Louis tradition. The first half of the show is an energetic look at the lighter side of Christmas. Then the chorus puts its heavenly harmonies on classic carols and songs. 8:00 p.m. (9-10), 2:00 p.m. (10-11), 7:00 p.m. (11) www.touhill.org, (314) 516-4949·        

Good VibrationsFriday, December 9, 2011, 6:30 PM - 9:30 PM A one-night art opening, Good Vibrations will feature work by twenty-one undergraduate artists majoring in sculpture at Washington University in St. Louis. Independently organized and curated by the sculpture majors, this exhibition is a culmination of their work from this past semester. The pieces shown will demonstrate an exploration of a variety of media and concepts. Guests will have the opportunity to meet the artists while enjoying food and drink.

       Sunday, Dec 11…. Noon – 4pmHoliday Photos (with or without) Santa (Pets or their Humans) – featuring Pamela Parker PhotographyOne Lucky Mutt & Happy Go Lucky Outfitters2414-16 Taylor Road – Wildwood, Mo 63040Sitting Fee: $10 / includes ONE photo(cash or check preferred)Order additional photos online – choose from a variety of poses and backgrounds

Celebrate the season at 3 local, women owned businesses that have come together to offer 15% off your entire purchase at each store.  The Dream house and Tea Room, Mary Tuttles, and Three French Hens.  http://www.dreamhouseandtearoom.com/email.html

Dine with Santa, Breakfast or Dinner!

http://www.stlzoo.org/home/pagearchive/breakfastwithsanta

If you are looking for a place to chop your own fresh Christmas tree, here are some farms near St Louis:

Heritage Valley Tree Farm  636-239-7479

1668 Four Mile Road, Washington Mo.  This family farm only takes cash and checks, so leave your credit card at home!  Open weekends until Christmas from 10 a.m. to 5 p.m.

Brushy Fork Pines  636-668-6084

228 S Lindsay Road, Old Monroe, Mo.  Grandparents, siblings, aunts, uncles and kids run this family farm.  Open 9 a.m. to sunset weekends until Christmas.

Different areas have different customary charges for buyers and sellers.  In the St Louis area, sellers are typically responsible for:

Existing Loans

-Keep in mind that your mortgage interest is paid in arrears.  That means that if you sell your house on the 25th day of the month, your lender will collect 25 days of interest on the closing day.  Your bank may have a "fax fee" or a charge for providing a pay off, which I think is absurd, by the way!

Title Company Charges

-The title company performs the closing in Missouri, so their charges (right now $300.00 is the average) include title work and preparation of the HUD-1 closing statement.  St Louis County charges a release fee that is usually less than $100.

Municipal, Conservation District, and Fire District Inspection Fees

-These can run from about $10 to about $100.  That's the cost of the inspection...sellers most typically make any repairs required to bring the house to code.

Real Estate Commissions

-Commission is usually a percentage of the sale price.

LaClede Gas Inspection

-Laclede charges $150.00 to inspect all gas appliances and fuel runs.  If you have a gas grill that has seen better days, exclude it from inspection on your contract!!

Agreed upon Repairs

-This is a great big question mark!  There are a lot of dynamics...a buyer who may be a great handyman, or who may not know which end of a screwdriver is up.  An inspector who takes care to explain the difference between routine maintenance and disrepair.  A buyer's agent who sets realistic expectations or who sees the inpsection period as an opportunity to renegotiate the contract.  If you have concerns, have an inspection before you list your home.  Your listing agent should be able to help you anticipate and negotitate through inspections. 

When considering an offer, ask your agent for an estimate of seller closing costs based on the sale price you are negotiating and the closing date on the offer.  It's an estimate, because  you won't know about repairs until inspections are done, but hopefully it will give you enough information that you can sleep at night!

GUNS AND HOSES

This benefits an incredible organization called Backstoppers, which supports the families of fallen firemen and police.  Wednesday Noverber 23, at 7:00 at the Scottrade Center.  www.gunsandhoses.com/Home_Page.html

THANKSGIVING DAY PARADE

The biggest and best parade in the midwest, with floats, bands, storybook characters, carriages, equestrian units, and SANTA CLAUS.  An early start at 8:45, but the weather should be parade-perfect!  Check out the route at www.christmasinstlouis.org.

SHOW ME BOWL

2011 High School Chamoinships are November 25 and November 26 at the Edward Jones Dome.  www.mshsaa.org, or call 314-241-1888 or 573-875-4880.

HISTORIC ST CHARLES CHRISTMAS TRADITIONS

November 25 11 am - 2 pm, and lots of dates between now and Christmas Eve.  Carolers, white lights, and deocrations, shops and restaurants!  http://digital.turn-page.com/issue/39349

WINTER WONDERLAND AT TILLES PARK

By car is warm and fun, by horse drawn carriage is really fun and pretty warm, make this one of your family traditions!  Several years ago we took friends visiting from Europe through Tilles park on a carriage ride...they got married and now have two wonderful boys...coincidence?  I think not! 

http://www.stlouisco.com/Portals/8/docs/Document%20Library/parks/PDFs/WW/WinterWonderwalk.pdf

Don't just sit there, get out and have some fun this weekend!!

We all know there are a lot of unsung heroes in this world, and frankly, if we all sang about them a little louder and little more often, they'd maybe get a little of the thanks they truly deserve!

A group of Wildwood residents set about to have a community garden this year.  My husband Jack and I were lucky enough to get a small raised bed and grow tomatoes that were safe from bunnies and deer.

Since I wrote about the beginning of the garden, it's only fair to let you know how the year went!

At a garden meeting early in the year, one of the other gardeners, much wiser than I, said that eggplant is tough to grow.  Well, we grew one!  (just one :-)

Tomatoes and green peppers and even some watermelons, but mostly I grew to respect the people that started this venture and made it more than a garden.  It is a place to learn about everything from dirt and bugs, to how much time good people will invest into an idea that has so much potential!

So,  a big thank you to Tim Woerther, Joe Vujnich, Liz Montalbano, and sweet Cindy Wright.  Wildwood is a better place because of you!

Here is some food for thought:

* fewer buyers, fewer showings

...fewer interruptions but more serious showings because the tire kickers are at the mall!

*other people I know are taking their houses off the market for the holidays

...that means less competition for you!

*Can I decorate?

...houses look great when they are dressed up for the holidays, just don't overdo!

*nobody is buying over the holidays

...I have negotiated contracts successfully over every holiday on the calendar!

Certainly every family's situation is unique, but please don't assume that there is no real estate being sold this time of year...just ask my family, they've watched me sneak out to present an offer, or hide in a bedroom at my inlaws, talking on the phone with a buyer's agent on many a holiday.  Talk to your agent and do what works for you, but if you want to sell and you aren't on the market when your buyer is house hunting....

There can be lots of reasons for waiting...saving for a better downpayment, waiting for a lease to come to and end, cleaning up a credit score issue.  One of the things I've learned though, is that I KNOW what is happening today, and I have NO IDEA what will be happening tomorrow, much less months from now.  This is important when you think about interest rates, market inventory, pricing, et cetera.

Timing is always important.  Even if you aren't planning on a purchase for 3 months, learn your market by seeing homes, not just visiting them online.  If you see something that really is perfect, don't let it become the one you let get away because it didn't meet your time frame.  Talk to your agent about making an offer, and pushing that closing date out to meet your needs.

I once put a contract in on a house in January, and we closed in mid June.  It was not new construction!  It was nice to get all the inspections done, get the loan in place, and then relax and know where I was headed, even though it was a while down the road.  I don't even recall right now why the closing was so much later than contract, except that it worked for everyone and everything was pretty low stress.  The only problem was that it didn't appraise!!! A real estate agent paying too much for a house?  Who would have thought!  Because we weren't in a time crunch, I was able to work through that to everyone's relief and satisfaction as well. 

...I'll talk about the appraisal process another time, and it will be a much lengthier post!

-There is a basement

-we got tired of painting

-we are trying to hide water stains but ran short on paint

-we have extra hangers we can leave for you

-the flash didn't go off when we took this picture.

Every photo is important, and every photo should show a positive feature in its best light.  I've been collecting bad pics for a long time, and I think it would make an interesting coffee table book for real estate agents.

Caroline is working on T-shirts, Kate is bravely going to the team captain meeting this weekend, and and we are looking forward to a great day.  Each of us has been touched by breast cancer - a family member, a friend, someone we have worked with. 

If you've never done this, don't let those photos of those huge crowds scare you off!  I've been walking for years, in memory of 4 wonderful women and in celebration of dozens more.  My memories of walks past include seeing a big family of at least 4 grown children, all pushing strollers, walking with their dad in memory of their mom...a young woman with a survivor shirt on pushing a stroller-the stroller proudly draped in banners celebrating "mommy"...thousands of volunteers passing out water, flowers, fresh fruit...

There is a point in the walk where you crest a hill.  In front of you everyone is lifting their cameras and cell phones over their heads.  They are capturing a literal sea of pink in front that goes on as far as the eye can see.  Sometimes it seems there is little inspiration left in the world.  If you are a little short on that, put on your walking shoes and join us.  I promise you'll get goose bumps, and a tear or two.  Seeing so many people stop what they do and and just walk for the sake of others they don't even know is so...cool!  When each of comes together for a common good, we are pretty amazing.

http://www.komenstlouis.org/goto/tata

I felt like I was in an episode of "Parks and Recreation", but in a good way.  There were all types of people there, the casual gardener like me, the earth gods and goddesses, a yound lady who will be working on a girl scout badge, someone who wants to make sure that we can get what we grow but don't need to a food pantry.

I am just looking for a place that is safe from the herd of deer licking their chops at my back door, and a place that is "unplugged".  I'd like to get my hands a little dirty and try to figure out why I did not like working in my father's garden as a child at all, and look forward to it now. 

Our garden master, Cindy, asked everyone why they want to be involved in the garden.  The answers were as varied as the people.  I am excited and proud to have my own little 4 x 8 plot of dirt.  I am nervous too, because I have a feeling that there are some pretty awesome gardeners in this group!  My husband Jack thinks we should plant a crop of wheat and make some bread at the end of the day.  I have this awful picture in my head of nearby plots brimming with eggplant and tomatoes and exotic herbs, and my wheat just waving in the wind with a little garden gnome sitting in the corner.

We have a work day on April 30 to help make the raised beds, and then I guess we will be off and planting!

I'm really glad that Wildwood has taken on this project.  There is so much potential for teaching, for getting know our neighbors, for sharing.  If I can just get Jack to plant something besides wheat!

When:
Saturday, April 30
8 a.m. - 1 p.m.
 
Where:
St. Louis Community College - Wildwood
2645 Generations Drive, Wildwood, MO 63040
 
What:
What can you recycle?
Computers and all of their accessories.
Networking and telecommunications equipment, telephones (home & cell), clocks.
TVs, VCRs, DVD players, stereos, A/V equipment, including cable and satellite boxes.
Home electronics and small appliances.
NO CHARGE! No need to sort your items. One-stop drop-off. Receipt for tax deductions provided on the spot.

 During the mortgage process, you can help ensure that you are getting the best possible deal by knowing what you should and shouldn't do while securing your loan.  These are some tips from Laura Garnder with Coldwell Banker Mortgage.  Some of them don't make any sense at first glance, some are common sense.  Give me a call or an email if you want to hear the whole story!

1.  Don't apply for credit of any kind, including "you've been approved" credit cards.  

2.  Don't pay off collections or charge offs. 

3.  Don't close credit card accounts.  

4.  Don't max out or over charge on your credit cards.  

5.   Don't consolidate your debt onto 1 or 2 credit cards.

6.  Don't do anything to cause a red flag to be raised by the scoring process, including changing your name or address with the bureaus.

7.  Do stay current on existing accounts.

8.  Do continue to use your credit as normal. Changing patterns can be a red flag.

9. Do call your lender if you receive anything in the mail that you believe could in any way affect your credit.

10.  Do get a free copy of your credit report from each of the three credit bureaus at www.anualcreditreport.com

The short version is that the price and availability of mortgage money is about to go up.  This explains the how, the why, and the how much!

http://online.wsj.com/article/SB10001424052748704520504576162632959543492.html?mod=djemRealEstate_h#printMode