Karen Schindler's St. Louis Real Estate Update

 

JUST SOLD!

 

We were able to help Chris and Lara sell this charming brick house in only 5 days!  We hope you both are enjoying your new home in Columbia, MO!

Congratulations to the new owners Michael and Stephanie!  Welcome to the neighborhood!

SOLD!

7542 Murdoch Ave. - Located in Shrewsbury

We helped Tim and Christine sell this house in only 19 days!  Congratulations!

 

Welcome to the neighborhood Jeff and Jennifer!

St Louis County Inspections

I find it very interesting that on my last two St. Louis County Occupancy Inspections the inspector sited gas related violations that on items Laclede Gas' inspector has already passed and deemed as safe.  If the natural gas expert says it is safe, why would a general inspector disagree???

Top Ten Seller Short Sale Questions ( Plus the Answers!)

Most Common Questions Sellers Ask

Number 10
I can't make my house payments, but I do have an ability to pay back all or part of the negative equity. Also, I want to preserve my credit score…is a short sale right for me?
Probably, not. In cases where the seller can pay back all or part of the negative equity (usually to the 2nd lien holder), it makes sense for them to work out a repayment plan. The lender will then release the lien and allow the home to close.

Number 9
If I pay mortgage insurance and default on my loan, why wouldn't that cover the deficiency amount?
The mortgage insurance is not there for your protection, just the mortgage lender's.

Number 8
Do I have to have my home "Approved" by the lender prior to offering it for sale as a short sale?
No. Technically speaking there is no such thing as being "Short Sale Approved." The actual approval only happens with an accepted offer.

Number 7
I just missed a payment and I know I will miss more…how long does the foreclosure process take and is there time to do a short sale?
The foreclosure process takes differing times depending on your state. In the Midwest a foreclosure can take over a year. In California its taking 6+ months. Generally speaking a well priced short sale being processed by an educated short sale listing agent will sell and close in less than 120 days.

Number 6
Will I still have to pay property taxes if I do a short sale?
Property taxes will always have to be paid as part of any accepted short sale. Whether it's you or the lender, it depends on their policies and the specific agreement you reach while negotiating the short sale.

Number 5
I owe more than my home is worth and I can't make the payment. Do I have to somehow qualify for a short sale?
The simple answer is NO. If someone can't make their payment and they are otherwise insolvent, they qualify for a short sale. Note: insolvent simply means their total debts are great than their assets.

Number 4
Do I have to pay income taxes…I have heard that I will get a 1099. Will the loss the bank takes be treated as a taxable gain to me…the seller…is this true?
It WAS true, now it's not. Consult your Tax Attorney or Qualified CPA. Very recently the tax law was modified and now most people who do a short sale will have no taxes due.

Number 3
How do you, my listing agent get paid…who pays your commission?
The bank will pay the commission along with all the other usual closing costs.

Number 2
Do I have to miss a payment to do a Short Sale?
No. Late last year most major lenders started accepting short sale offers from sellers who have never missed a payment.

Number 1
I want to do a short sale and have a 2nd mortgage, does this make me ineligible?
No. Both of your lenders will need to be satisfied in some way to complete the short sale. If your first lender will be paid off by the sale, then you just negotiate the terms with the second lender. Most short sales do involve 1st and 2nd lien holders.

Source: Broker/Agent News

Christine Menker Senior Loan Officer 1714 Deer Tracks Trail, Suite 225 St. Louis, MO 63131 Phone: (636) 305-9248 Fax: (314) 822-5298 christine.menker@ctxmort.com

>> Home Base

INFO THAT HITS US WHERE WE LIVE  Last Wednesday, the President signed an economic stimulus package with a provision that raises the conforming loan limit through the end of this year. Conforming loans can offer lower interest rates than jumbo loans. These higher limits for lower rate loans should bring more people into the market.

The new limits are calculated at 125% of the median home price in an area, with an upper cap of $729,750. Following that formula, the present $417,000 conforming limit will remain in markets where the median home price is $333,600 or less. The Federal Department of Housing and Urban Development (HUD) has 30 days to publish median home price date for every area of the country. We need to wait for the HUD figures to know the limits for any market.

New facts on the housing situation. Studies of defaulted mortgages are showing that the number of people who bought homes as investments is far greater than anyone knew. Speculators often lied on loan applications, saying they intended to live in the homes in order to get better terms. These borrowers are now turning up on loans that default just months after origination.

A recent study looked at 45 subprime loans that defaulted in the first 12 months. In two thirds of the cases, borrowers never moved in, even though they said the home would be their residence. Investors are more likely to walk away when home prices decline.

Real Estate Fact of the Day

According to the National Association of REALTORS®’ (NAR) 2007 Profile of Home Buyers and Sellers, first-time home buyers constituted 39 percent of home sales from June 2006 to June 2007.

Inside Lending Update

Christine Menker Senior Loan Officer
		1714 Deer Tracks Trail, Suite 225 St. Louis, MO 63131 Phone: (636) 305-9248 Fax: (314) 822-5298 christine.menker@ctxmort.com

>> Review of Last Week

THINGS ARE LOOKING UP AGAIN... To call this market hyper-volatile is truly an understatement. We began the week with a solid three-day rally that ended with the Dow up 178 points on Wednesday. Why? The economy continues to surprise on the upside. Instead of an expected decline, retail sales grew 0.3% in January. They're up 3.9% versus last year, 4.9% excluding autos. Does that sound like the death of the consumer? In addition, Coca-Cola and Applied Materials reported better than expected earnings. Other positive news: 65% of companies reporting earnings have beaten expectations, over 70% if you exclude financials.

Keller Williams Founder Shares Vision for 2008 Real Estate Market

TOP STORY: Gary Keller shares his vision for 2008

Real Estate at the Crossroads: Choosing to Thrive

Recapping the shift in the real estate market at Family Reunion, Gary Keller, founder of Keller Williams Realty International, urged attendees to seize the current market to their advantage.  Keller explained that the 10-year run-up in real estate that began in the early 1990s, led to an environment in which homes were no longer affordable, lenders were willing to take unreasonable risks and inventory rose to record levels.

This chain of events led to mortgage lenders pulling back, followed by a credit squeeze, increased inventory, dropping prices, rising defaults, slipping consumer confidence and reluctant buyers.

Viewing the market from another angle, Keller observed that since 1981, household incomes have increased by an average of 3.6 percent per year.  During that same time period, U.S. home prices have increased by an average of 4.6 percent per year.

“Affordability is, and always will be, the primary real estate issue,” Keller emphasized.  “As homes become less affordable, the number of qualified buyers declines.  Rising inventories result in an eventual decrease in home prices.

Existing U.S. home sales in 2007 were down by 13 percent over the previous year, and down 20 percent from 2005, when they peaked at 7.1 million. The decrease in new home sales was even more dramatic – down 25 percent from 2006 and a two-year decrease of 37 percent.

NAR’s forecasts for 2007 were overly optimistic by an average of 9.4 percent, while the Canadian Real Estate Association (CREA) was overly pessimistic by an average of 8.8 percent in 2007. 

Despite last year’s 13 percent decline in U.S. home sales, membership in the National Association of REALTORS®  (NAR) dropped by only 1.4 percent. In the current market, there is approximately half the number of residential real estate sales per agent compared to 10 years ago. Noting that the correlation between home sales and NAR membership has historically been very strong, more competition for fewer available sales is expected to accelerate the trend of agents leaving the business in the near term.

Keller said that for agents who are determined to stand strong and build market share during the shift, opportunities are wide open. The key: “Become a productivity warrior and a market maker; know that there is enough available business for you to achieve your goals; and become the local economist of choice.” 

Home Security Tip

More than 62 percent of home burglaries in 2005 took place between 6 a.m. and 6 p.m. (in which the time of the crime was known):
Six out of 10 people are being robbed while they're at work. However, there are steps you can take to ensure your home is protected when you're not there.
- A security system is a great place to start.
- If your neighborhood is prone to crime, form a neighborhood watch.
- Getting a dog can help you feel safe when you're home and an alarm when you aren't.
- Locked windows, bolted doors, and motion sensitive lights are mainstays if you don't already have them

January 2008 Webster Groves Real Estate Activity

Webster Groves Real Estate Activity

184 Homes For Sale

                 Average List Price = $295,065

                 Average Days on the Market = 127

48 Homes Under Contract

                 Average List Price = $252,056

                 Average Days on the Market = 147

31 Homes Sold & Closed In December 2007

Average List Price = $221,194

Average Sales Price =$211,605

Sold price average is 95.67% of asking price.

Average Square Footage = 1,652

Average Price Per Square Foot = $120.01

Average Days on the Market = 106