SE Missouri Real Estate Info

Are We Going To See an Extension and Expansion of the Tax Credit?

2009-10-22T10:47:00.000-07:00

NAR seems to be doing everything possible to influence Congress to extend the tax credit and even expand it to other buyers. NAR recently sent First Vice President Ron Phipps to Capitol Hill in order to give testimony on why they need to extend the tax credit and open it up to other homebuyers besides first-time homebuyers.

I have spoken with many REALTORS from across the state of Missouri and many feel that they have seen increased sales due to the tax credit. I believe that it is a great idea but we have not seen much of an increase in purchases due to the tax credit. Actually, I would have to say that many lenders are trying to convince buyers not to use the tax credit and a couple have even gone as far as to say they won't do it. I should clarify what I mean. Missouri has the TCAL program which allows buyers to use their tax credit immediately in order have money for a down payment or closing costs. What lenders do not seem to like it that the state of Missouri has contracted with US Bank to back these "loans" for the buyers.

Here is how it works: US Bank basically makes a 2nd loan for the buyer and lends them the money which becomes their down payment or closings costs. This "2nd loan" is then carried with no interest and no payments until June 2010. If the buyer does not repay the 2nd loan by then with the tax credit money from the government, interest begins to accrue on the 2nd loan and payments become due.

It is a great idea for homebuyers but apparently the process that the "original" lender has to go through in order to get this done for the buyer is tough and everyone is at the mercy of US Bank. I can see how US Bank wants to protect themselves but the real estate transaction is tough enough without adding a whole other moving part to the equation.

Overall, I would have to say that the plan is working and many people are benefiting. I am still yet to work with someone who uses the tax credit up front but many have bought properties i have listed and the process was gruelling. I do appreciate everything NAR is doing and I feel that I am getting my moneies worth!

Farmington, MO Market Statistics for 10/5/09-10/11/09

2009-10-12T08:36:00.000-07:00

The Farmington area has much to offer from beautiful, restored Victorian Homes to modern, new construction. Our area offers many events and destinations to visit. Among our many events and destinations, we have several wineries, golf courses, shopping, restaurants, and boutiques which always make for a great visit or stay. Currently, the Farmington area offers 227 homes for sale. This is the same as the previous week with 8 homes still pending closing.

DON'T FORGET...................

TAKE ADVANTAGE OF THE $8,000 FIRST-TIME HOMEBUYERS TAX CREDIT

WHICH IS SET TO EXPIRE ON DECEMBER 1ST!

Residential

Active Listings

Units 227

Avg. List Price: $170,122

Avg. DOM 141

Pending Sales

Units 8

Avg. List Price: $106,675

Avg. DOM 76

Solds

Units 5

Dollar Value $500,000

Avg. List Pice $103,480

Avg. Sold Price $100,000

Avg. Market Time 54

Avg. % of List Price 96.64

Properties are still moving in our area and we have seen a great increase in showings as well as offers written. Buyers, please do not wait on the fence any longer. The market is not a game and none of us can predict when home prices will start to rise or fall. I can tell you from speaking with other REALTORS, more and more people are looking and getting reay to buy. Don't keep waiting for the market to drop more so you can get a better deal. If you are waiting for tomorrow's better deal, you will miss today's great deal which is usually better than tomorrow. If you have any questions, feel free to call Tom Hernandez at 573-210-8606, visit my website http://www.tomworks4u.com/, or email me at tom.hernandez@century21.com. Thanks and have a great day!

First-Time Homebuyer Tax Credit Extension

2009-10-09T13:25:00.000-07:00

Yesterday, October 8, 2009, the U.S. House of Representatives voted to extend the tax credit for another year to American Service Members. The extension is for those who have been serving overseas and have not been able to take advantage of the tax credit like those of us living here.

The vote was 416 to 0 in favor to pass the Service Members Home Ownership Tax Act of 2009. This extension will push the deadline back an additional year for those members of the military, Foreign Service, and intelligence corps. Rep. Charles Rangel, New York Democrat, introduced the bill and said, "This bill makes sure that the brave men and women who put their lives on the line every day get to enjoy the same benefits as every other American who benefits from their service."

This is a great plan for those service members who have been overseas serving our country and ensuring the continued right of home ownership. Now it needs to pass the Senate and have the President sign off on it. I am sure they will but I still am anxious to see them pass an extension to ALL home buyers.

Selling HUD Properties in the Mineral Area

2009-09-23T14:44:00.000-07:00

I met a new investor the other day and we got into the discussion of buying HUD properties. He thought that these might be better deals or offer some untapped return that others had not found yet. I explained to him that HUD properties can be bought at a very good price but they are like many other properties, you need to know what you are buying and what the purpose of your purchase is. To make a long story short, he wanted to turn these properties into rentals.

Our discussion covered everything from the bidding period (sometimes open to just owner/occupants for the first week and then open to all buyers there after), the diffence in contract from our state forms, to the long process of waiting for an actual signed contract to come back to us (usually the day of closing). I think I overwhelmed him because he left telling me he would get back to me and to maybe look for some multi-family properties for him to look at.

The process of buying a HUD property is long and unusual compared to that of a normal residential purchase but during these times, great bargains can be had. I have sold several in the past few months and they do not seem to be getting easier. However, all of my buyers have been happy and truly feel they got a real bargain so for them, it was well worth the time and rollercoaster ride.

There are currently 41 HUD properties for sale in Jefferson County, MO; 10 in St. Francois County, MO; 3 in Washington County, MO; 2 in Ste. Geneveive County, MO; and none in the counties of Madison and Iron. These properties range in price from $145,000 down to $15,000. You can look these properties up at my website or you can view them on BidSelect.

If you are interested in buying HUD properties, talk to your local REALTOR. He or she will be able to assist you or send you to an agent who is experienced in selling HUD properties. For you agents who are looking for a "niche," I have found this to be frustrating but a constant flow of business and leads. I am averaging about 3 closings a month just from foreclosed properties. The time spent on these contracts is more than usual but it has also led to many referrals and repeat clients. Thanks for reading and have a great day!

Mineral Area Sale Statistics for August 2009

2009-09-18T09:38:00.000-07:00

I would seem that sales are starting to pick up but I tend to say that softly. July saw a month on 85 residential sales for the area and then we followed that up with 71 residential sales for the month of August. August is traditionally a slower month with school starting and parents not wanting to shake up the household too much with the added stress of moving on top of school.

September is looking to be a very good month for sales and we are only half way through. As I write this, I am encouraged but the tax credit buzz, increased phone calls, and a general good feeling from my fellow REALTORS. Here is a quick breakdown of sale in the Mineral Area for the month of August.

Arcadia Valley
          Sold-3          Avg. Days On Market-69
Belleview
          Sold-2          Avg. Days On Market-116
Bismarck
          Sold-3          Avg. Days On Market-155
Bonne Terre
          Sold-8          Avg. Days On Market-118
Desloge
          Sold-4          Avg. Days On Market-144
Farmington
          Sold-16        Avg. Days On Market-54
Holiday Shores
          Sold-1          Avg. Days On Market-88
Lake Timberline
          Sold-1          Avg. Days On Market-43
Leadwood
          Sold-1          Avg. Days On Market-12
Fredericktown
          Sold-3          Avg. Days On Market-115
Marquand
          Sold-1          Avg. Days On Market-55
Park Hills
          Sold-9          Avg. Days On Market-55
Potosi
         Sold-4          Avg. Days On Market-46
Ste. Genevieve
        Sold-6           Avg. Days On Market-125
Terre Du Lac
        Sold-6           Avg. Days On Market-171
All Other Areas
        Sold-3           Avg. Days On Market-92

The total number of residential properties sold were 71 with an average days on market of 92. The average sales price was $97,349. The lowest sales price was $12,500 and the highest sales price was $350,000. Thanks for reading!

New Potosi Chamber of Commerce Website

2009-09-17T13:29:00.000-07:00

The Washington County/Potosi Chamber of Commerce has a new website. (http://www.potosichamber.com/). Doug Howlett and Kris Richards have worked diligently on getting the website up and running. It is a work in progress but a great added service to the chamber members as well as our community.

What does September hold for Farmington, MO?

2009-09-17T13:13:00.000-07:00

Farmington, MO has a lot on the calender for September. The Young Faith In Christ Golf Tournament is scheduled for the 18th. This is their 10 annual event and proceeds benefit programs and events for YFC.

The Farmington Chamber of Commerce (www.farmingtonmo.org) has a full calender of events scheduled (http://www.farmingtonmo.org/calendar.htm) which will provide you with additional information. Please have a look and enjoy the activities our community has to offer.

Homebuyer Tax Credit Extension

2009-09-17T12:26:00.000-07:00

The U.S. Senate is seriously considering extending the $8,000 Tax Credit into 2010. Bill sponsor Josh Isakson is doing his best to patrol the Senate floor and generate support for the bill. The program boosted home sales by more than 1 million and it looks as though this program could really provide the extra push the housing market needs as well as the economy.

REALTORS, bankers, and home builders are all in support of this bill and even hope that there will be more to it than there is currently. All three would like to see the program opened up to all buyers and even extended to investors. The three have joined together and are launching a campaign in support of the extension with the tag line: "Don't Let America's Real Estate Recovery Expire."

President Barack Obama has his economic team researching the impact of the tax credit. His concern is the effect it has on new home sales. The larger concern should be what the effect on housing will be if the extension is not granted as we head into, traditionally, the slower months for real estate sales. Could inaction extend the recession? Many economists believe so.

The Tax Credit officially expires on November 30, 2009. I would like to think that the federal government will do what is in the best interest of home buyers and the economy but at this point, I just hope for some action instead of more research.

Where is the help for Investors?

2009-09-14T13:45:00.000-07:00

I know that sounds like a crazy question! I know they have money and it is the small person who needs the help buying a home BUT WAIT! Here me out. I think the federal government should extend some help to investors along with helping the first-time home buyers. This would not just help them but it would help our economy.

First of all, the market has tons of foreclosures out there which will need to be bought in order to help home prices for private sellers. Give investors an incentive to buy these properties. The average first-time home buyer cannot get financing on foreclosures because the homes will not pass stringent inspections and guidelines nor do most first-time home buyers have the liquid finds to fix the home. Investors do!

Second, getting these foreclosures off the market will open it up so HUD can release more foreclosed homes to the market, reducing their inventory, bringing money back into the government, and helping the burden on the tax payer of footing the bill (as usual).

And lastly, it is another economical and practical way to stimulate our economy. The federal reserve does not have to print more money or borrow it from countries that are in recessions themselves.

I know this seems too simple and there are various ways to do this but I just wanted to quickly throw my opinion out there. I know there are several different bills being proposed in Congress right now that would help out different groups (first-time home buyers, investors, all buyers, etc.) but I would like to see them extend the tax credit to buyers and include investors in it. Give them a reason to spend their money in "local" areas which will help the local economies as well as our national economy. Real Estate is a great investment for ANYONE!

How Can I Find Foreclosures?

2009-08-17T20:11:00.000-07:00

How can a person go about finding foreclosures? Well, it is relatively easy and should cost you nothing. There are many sites that boast they will send you every foreclosure you can imagine if you "sign-up" or "pay a registration fee" or even "become a preferred member." PLEASE DO NOT PAY FOR THIS INFORMATION!!!

A REALTOR can get you all of this information and even navigate you through the difficult waters of buying a foreclosure. Better yet, I am going to give you a free tidbit today. www.bidselect.com. This website will allow you to search all HUD foreclosures in any state, county, or city that you choose. How great is that? And you did not even have to pay for that.

www.pyramidrealestate.com is another website that will have foreclosures which you can search the same way. I am giving you this info because I do not want to see you spend another hard earned dollar on something you can get for free.

The sites are useful and help get you started but I must advise that you contact a REALTOR in order to evaluate the properties you are looking at. It is a REALTOR'S job to know the homes in his or her area and have much more background information that any other source could ever possibly claim to have. I personally know all of the foreclosed properties that are for sale in my area even though I did not originally sell most of them. This is because I am personally involved in my area and have accurate, up-to-the-minute data which gives me a better understanding of any and all foreclosures in my area.

I work with many investors who rely upon me to help them make informed decisions which will benefit them financially. It is my desire to know everything I possibly can about any and all foreclosures in my area and even those out of my area. I have yet to hear from anyone that I steered them wrongly about an investment or personal home purchase. And I never charge up front! Can these websites boast that type of record? I think not and challenge any one of them to put their track record up against mine.

So the next time you want to know about foreclosures in your area or you are thinking of purchasing some investment property, start by contacting me or any other REALTOR in your area. Explain what you want, what you hope to accomplish, and what your expectations are of me; then we can start looking for the best property for you. I encourage you to look at these websites for properties as well as many others, such as my website: www.TomWorks4U.com. But I beg that you turn to a professional when you are ready to purchase. Purchasing a foreclosure is not easy nor do the asset managers try to make it easy. Make your life easier and contact a REALTOR today!

Is It Easy To Buy A Foreclosure?

2009-08-01T10:35:00.000-07:00

The simple answer to that is, "NO!" Foreclosures are mean, angry, volatile, unrelenting creatures that make no sense what so ever! But once you get past all of that, there is a diamond in the rough just waiting for you to polish it!

Buying a foreclosure is not easy for the simple fact that no mater whether you are dealing with a government owned property or a bank owned property, there are tons of hoops to jump through (very little regulation or accountability for their actions, time lines that they almost never meet, unworldly expectations of you, etc.) Here is a basic rundown of buying a foreclosure from start to finish:

Make an offer on the foreclosure (6 page contract)
Wait 7 to 10 days for a response
Find out there are multiple offers so there are new forms to fill out
Make "Highest and Best" offer on property
Wait another 5 to 7 days for a response
If my offer is accepted, now I have a 9 to 15 pages "Contract Addendum" to initial and sign which supersedes my original contract and states that if closing is delayed due to my fault (inspections, surveys, lender, etc.), the seller will charge me a $100 per diem. That Gets EXPENSIVE!
Have inspections done and find out there is or is not a serious issue with the property. (You only have 10 calendar days to have any and all inspections done.)
Waiting to get signed contract back from seller so I know we have an actual contract.
Title work is usually ordered through the seller's choice of title company. This usually saves the buyer money.
Hope there are no encumbrances or judgements against the property.
Wait for lender to give final "Loan Commitment" stating that they will lend on the property.
Still waiting for signed contract from seller.
Find out from Lender how much I am going to need to bring to closing in the form of a Cashier's Check.
Show up for closing with check in had and excitement over my new investment and potential rainfall! Finally get a copy of signed contract from seller.

That is a basic rundown of what happens during the contract period but also imagine yourself doing all of this while riding a massive roller-coaster. Dealing with HUD can be even more agonizing because they tend not to know what is going on. Example: I have an accepted contract on a HUD property. Two weeks into the contract, I get an email stating that my contract has been voided and the bidding process will be reopened tomorrow morning. Why? What happened? What did I do? It is not due to any fault of my own. The asset manager and the area contact have not been in communication so the asset manager does not know that I have sent my earnest money to their title company nor does he know that I have submitted my pre-approval letter. He does not bother to follow-up with the area contact and elects to reopen the bidding. I lose the deal!

Now, that example is an extreme one but it has happened. You just need to make sure that you and your agent are aware of all time lines and keep in constant contact with the asset manager or the district contact. Know your rights and responsibilities as well as make sure you have an agent representing you that is very knowledgeable of the whole process.

Are You A First-Time Homebuyer?

2009-08-01T07:23:00.000-07:00

Are you a first-time homebuyer? If so, you are running out of time to take advantage of the $8,000 tax credit being offer! In order to take advantage of the tax credit, you need to buy a house before November 30, 2009. If you do not close on a house by that date, the federal government will not give you your tax credit. This is your chance to get a little of the recovery money that so many of the large corporations are taking advantage of.

It is a great time to buy so what are you waiting for? Here is a little information on the tax credit:

A first-time homebuyer is someone who has not owned a home in the last three years.
You cannot purchase the home from a spouse, direct ancestor, child, or grandchild; however, you do qualify if you purchase a home from siblings, nephews, nieces, or others.
Single taxpayers with incomes up to $75,000 and married people with incomes up to $150,000 qualify for the full tax credit.
If you are married, both spouses must be first-time homebuyers. If more than one unmarried individual is buying the property, the credit can be split among all the purchasers who qualify. However, the total credit taken cannot exceed $8,000 for homes purchased in 2009.

The state of Missouri has done something that very few other states have done. They are allowing homebuyers to use this tax credit the day of closing to help with closing costs and downpayment. Unlike most other states, the homebuyer gets immediate use of this money and does not have to wait until they file their taxes. How great is that?!

So, what is keeping you on the fence about buying? Interest rates are great, home prices are down, there are plenty of properties to choose from, the state and federal government are offering you help, and you, as the buyer, has the negotiating power in this market! Jump off the fence and buy! There is no better time than now! Good luck and enjoy your new home.

St. Francois County Residential Sales Report for the Past 12 Months

2009-03-20T14:19:00.000-07:00

What has our local market been like over the past 12 months? Have home sales and prices really declined in the St. Francois area or have we been immune to the Real Estate "Bubble Bursting" syndrome which seems to have engulfed the rest of the United States? I would like to say resoundingly that we were not effected but that would be a lie.

The Mineral Area, specifically St. Francois county, has been effected just like most other areas of the United States. Our home prices have not fallen as much but it will be some time before we see some considerable rise in appreciable home prices.

I feel that the market has reached its bottom for us but we will not see a jet-like rise to the top any time soon. It will be a slow and gradual rise for home prices and sales. Is this a bad thing? Not really considering the state our economy and housing market is in. We need some stability and step away from the volatile ways we have had for some time now.

If you are a home owner, do not look for huge profits from your house if you have not lived in it long. The "flipping" era has slowed considerably so look to just make a smooth move to your next home and not become rich over night. Buyers, this is a GREAT time for you. If you have good credit, some assets, maybe some money for a down payment or closing costs, and you shop smart, there is a great deal out there for you. However, beware and do not keep waiting for the "next great deal right around the corner." The great deal you pass on today may be the best deal you ever had tomorrow. This is not the time or the market to sit on the fence.

So, here are some useful stats from the St. Francois county real estate market for the time starting 3/20/08 and ending 3/20/09. I am also providing you with the previous 12 months' data so you can compare. Enjoy and I hope this helps you become a more informed consumer! Thanks for reading!

530 Residential homes sold in St. Francois county from 3/20/08-3/20/09.
19 Commercial properties sold during that same period.
Average home had 3 Bedrooms and just over 1.5 Bathrooms.
Avg. Sq, Ft.: 1,409
Avg. Listing Price: $100,311
Avg. Sales Price: $94,238
Avg. Days on Market: 101

701 Residential homes sold in St. Francois county between 3/20/07 and 3/20/08.
Avg. home had 3 Bedrooms and just over 1.5 Bathrooms.
Avg. Sq. Ft.: 1,296
Avg. Listing Price: $105,677
Avg. Sales Price: $101,842
Avg. Days on Market: 99

For the time period Jan. 1, 2009 to today (3/20/09), here are the stats on all properties:
Residential: 533 properties listed for sales
Land: 271 active listings
Commercial: 62 active listings
Multi-Family: 15 active listings
Farms: 24 active listings