5 Factors That Decide Your Credit Score

 Credit scores range between 200 and 800.  Scores above 620 are considered desirable for obtaining a mortgage.  These factors will affect your score:

1.    Your payment history...whether you paid credit card obligations on time.

2.    How much you owe.  Owing a great deal of money on numerous accounts can indicate that you are overextended.

3.    The length of your credit history.  In general, the longer the better.

4.    How much new credit you have.  New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.

5.    The types of credit you use.  Generally, it's desirable to have more than one type of credit...installment loans, credit cards, and a mortgage, for example.

When Buying a Home, Why the Right Real Estate Agent is So Important

If you have begun looking for a home to buy, the best method is to have your own Real Estate Agent.  Perhaps you drive around and see a property you might be interested in, so you call the Agent whose name is on the sign.  Or, you're surfing the web (PoshSTLHomes.com or Realtor.com) and find a property you want to see...so you call the Listing Agent.

STOP DOING THAT!!  The Listing Agent works for the Seller of the property.  He/she has signed a contract with the Seller to always put their best interest first.  Where does that leave you...the Buyer?  You need your own Agent whose duty will be to put YOUR best interest first.  In fact, it's best to use an ABRⓇ, an Agent who is an Accredited Buyers Representative.

Don't think you have to call the Agent listed on a For Sale sign.  When you have your own Agent, he/she will be able to show you any homes/properties for sale; even those properties listed For Sale By Owner.  Do beware...there are some Agents who do not want to spend time showing homes.  You'll want an Agent who is accessible to your needs and willing to spend the time to show you homes.  Find and talk with an Agent to get a feel as to their interest level in showing homes and their knowledge of the area you are looking in.

You need and deserve expert, professional representation should you be ready to purchase a property.  Your Agent will work with you throughout the entire process:  from finding and showing you homes, negotiating on your behalf should you submit an offer, assist you with inspections, handle all paperwork, get you to closing, and putting the keys of your new home in your hand.

Contact us when you're ready to make a move and hire an ABRⓇ to ensure you are getting the best service in your pursuit of purchasing a home.

Get Multiple Offers to Buy Your Home

For months (years), we have heard the news that we are in a seller’s market – meaning there are not enough homes for sale to meet the demand of home buyers.  Often in a seller's market, the time it takes to sell a home is decreased and the possibility of multiple offers is increased.

 

This news could cause dollar signs to start dancing before your eyes.  Before you count your cash, there are a few things to consider.

 

TIPS ON HOW TO GET MULTIPLE OFFERS FOR YOUR HOME

 

Price Your Home Competitively ~ When a home is priced and marketed correctly, your chance of getting multiple offers is increased.  The longer a home sits on the market, the longer its days on the market grows and with that comes a sense of staleness…thus reducing your negotiating power.

 Spruce Up Your Home ~ “Move-in Ready” is music to a buyer’s ears.  Walk through your home as if you were a buyer and fix up those areas that don’t reflect well on your home.  Putting in a little elbow grease before your home is listed for sale could net you a larger profit.

 

Build Anticipation ~ As the #1 Real Estate Company in the metro Saint Louis area, we use our unique marketing tools to build anticipation in the market.  With the largest number of agents in the area, our listings are shared with our associates even before it is listed on the MLS.

 Listen To Your Realtor ~ We will supply you with sound advice that comes from experience in all types of real estate markets.  For example, it’s best not to get emotional when you receive offers to buy your home.  High offers with a long list of contingencies are not always the best offers.  We will be able to help you differentiate between solid offers and questionable offers.

 

If you are thinking of selling your home, contact us for a free, no-obligation consultation. 

 

(314) 348-4033

 

7 Upgrades That Maximize Your Home's Resale Value

Housing prices are surging to new heights in our area, so you might be considering selling your house and putting some money in your pocket.  No matter if you want to sell or just build equity, here are some improvements that can boost your home's value and ensure you get the best price for your property.

Extra Space

Having plenty of livable space in your home is one of the main selling features in real estate.  Homes are usually priced and valued according to livable square footage available, so the more you have, the better.  A great idea is to add a teen hangout or a mother-in-law suite.  This upgrade will set you apart from the competition when it's time to list your property.

Mini Kitchen Remodel

While deluxe, professional kitchens might be attractive for luxury home buyers, such an upgrade might be overkill with the average buyer.  Most people don't really need a commercial-grade stove with six burners and an expensive vent, but everyone needs a good layout and plenty of storage space.

You can work on upgrading your kitchen layout...adding modern appliances and finishing your cabinets...these are all very cost-effective remodels you can do yourself with only a tutorial and a few tools.  Don't forget to install some new lighting fixtures.

Energy Efficient Upgrades

Modern buyers are into home features that improve energy and water efficiency.  Efficiency improvement costs need not be extravagant.  Investing in a smart thermostat won't set your budget back and will provide future users with a more effective and practical way to save money and resources.

When you invest in such home tech improvements, you will create a strong selling point while improving your property's comfort, functionality, convenience and eco-friendliness.  Other ways you can improve the efficiency of your home is to replace old windows with new, energy-efficient ones, ditch old appliances for Energy Star models, switch to LED lighting, and boos insulation on your outside walls.

Hardwood Floors

It's easy to see the appeal of hardwood floors.  They last for a long time, add richness to any decor and can withstand the abuse of pets, kids, and aggressive foot traffic.  Plus, they are easy to clean and maintain.  If your current wood flooring has seen better days, it will be worth the time and money you invest to refinish them, as you can recoup 100% of the cost. If you replace carpeting or other type of flooring besides hardwood and install new hardwood, your Return On Investment will be 70%-80%.

Fresh Paint

Paint is magic for many reasons:  It can instantly upgrade both the interior and exterior of your home and do so for a very low price.  Even dated surfaces can look fresh and new with only a coat of paint.

Deck or Patio

Right now, people are willing to spend a lot of money on outdoor features that allow them to spend time outside.  So, make sure to deck or patio area are pristine.

New Front Door

Replacing your front door can also work wonders for your home's value.  If you have an old ugly door, replace it with something like solid mahogany and you'll achieve cost-effective, yet luxurious results.

Want to go a step further?  Tackle your outdated garage doors with something modern for an extra touch of curb appeal.

If you provide buyers with something move-in ready, you'll definitely achieve a good price, so even minor investments will help get a home sold more quickly and result in two satisfied parties.

Buying Your Dream Home Later In Life

Most homebuyers have a "dream house" that includes everything they want...whether it's a new kitchen, open floor plan, main floor master suite, outside kitchen...or all that and more.

So, how can you buy your dream house, whether you're in your 40's, 50's, or 60's?

The answer might be as simple as just deciding to do it.  People generally cannot afford their dream house in their 20's and 30's,  By the time they are in their 40's and 50's, they've got the money.

Newer, Smaller, Better

Some buyers move out of a costly or large home into a dream home that better fits their needs in terms of design, finished, and amenities.  The new home might offer an updated kitchen, open floor plan, main level master suite, new flooring...all with a bit less square footage.

Saying "NO" to Remodeling

The alternative to buying your dream home is trying to remodel your current house to be what you really want.  This doesn't appeal to many current homeowners.  Sometimes, a 20 year old home just starts to "feel old".  Rather than renovating and upgrading it, a lot of people take the easier route and buy something new.

The remodeling industry studies have shown that very few remodeling projects recoup their full value at the time of resale.  Most homeowners take a loss on their improvements when they sell.

The Big Decision

Despite the allure of their dream home, some buyers hesitate because they're not ready to make the transition or only one spouse is ready.  Once an unwilling partner can emotionally detach from the current home, a dream home can be in their future.

What Makes a Home a Good Buy?

There is no perfect home, but some homes are more ideal for your household than others.  When you begin looking for your next home, carefully consider these four criteria...price, features, location and condition.  The closer you to get to meeting all four criteria, the better your chances are of making a good buy.

PRICE

In any market, price has to come first.  To determine what you can comfortably afford, take to your Realtor.  She can recommend a lender who will prequalify you for a mortgage loan.  When you know how much you can spend, it will be easier to shop for homes within your price range.

FEATURES

The size of your family and your activities determine the features you will want in your next home.  The number of bedrooms, bathrooms and living areas are a matter of comfort and convenience.  You may want an extra bedroom for guests or a second master suite for parents.

If you work at home, you'll want a private home office or a computer nook.  You may want a playroom for the kids, a separate laundry area, and a fenced yard and covered patio or deck for entertaining.  Perhaps an eat-in kitchen is more important to you than a formal dining room.  You may even desire an outdoor kitchen for entertaining.

Think about your daily life from morning to bedtime and how your next home can make these activities more pleasant.  This should be your "must-have" list and will help you look at homes more objectively.

LOCATION

Some areas will always be more expensive to live in than others.  Neighborhoods that are well-kept tend to maintain higher home values.  Homes that are close to jobs, schools and shopping centers tend to sell for more money than homes without as much infrastructure.

What is the best home you can find in the area where you want to live?  If these homes are out of your price range, you can compromise...buy a smaller home or a home that needs lots of work in the best neighborhood you can afford.

CONDITION

Condition refers to the state of repair.  Does the home curb appeal?  Is it updated and well-maintained or does it need extensive and expensive remodeling.  Don't forget to consider any deferred maintenance, such as a roof that may need to be replaced soon.  Also, consider the design and functionality...is the kitchen too small and would you be able to afford to remodel it?  Look closely at repairs, cleanliness and room layout.

The one advantage of buying a home that needs updates and repairs is that these properties cost less than updated homes in the same neighborhood.



Be prepared to compromise.  Don't frustrate yourself or your family looking for the perfect home.  Sometimes the home of your dreams does not have to have every feature on your checklist, or it may be a bit further away from your favorite neighborhood, but you'll be happy if it has most of the criteria you want at the price you can afford.

Don't Make These Mistakes That Decrease the Value of Your Home Sale

If you are planning to sell your home in the near future, you don't want to make any mistakes that will cause you to decrease the value of your home.  Once your home is on the market, what a buyer sees as a mistake may not be what you consider a mistake.

Here are a few mistakes home sellers will want to avoid to ensure you won't de-value your home.

Not Maintaining Appliances - You can sell a home "as is", which means the property in the condition to which the buyers initially see it.  Having lots of issues and repairs needed will definitely decrease the home's value.  Cleaning up appliances that are part of the sale is important.  If they are in bad condition, it's worth replacing them.

Going Wild with Color - Generally speaking, home buyers like paint colors that are neutral.  This conveys as a blank canvas for them which, upon moving in, they can paint the way they want.  Extra bold, bright, or non-traditional colors can scare them off.  Therefore, do not paint with neon green walls nor purple shag carpet.  If you have some bright colors going on, change to neutral.

Following Trends - We all get caught up in the latest design trends, but do we really know how long they will last?  If the trend is difficult to change, it could decrease the value of your home when you put it up for sale.  Home buyers will be thinking about how much money they have to spend to fix the trendy mistake.  Do make your home your style, but if you have plans to sell in the future, think about how renovations may impact the sale of your home.

Not Keeping It Cool (or Warm) - If you want buyers to come in and rush out of your home, either overheat or freeze them.  On hot days, make sure the home is aired out so that stale air can escape.  Hot, muggy, stifling homes are not fun to tour.  Turn the A/C on to a comfortable temperature to make sure your potential buyers are comfortable and take their time to really see your home.  This, in turn, should also apply to cold weather.  Keep the furnace at a comfortable temperature so they will linger and feel comfy.  (Realtor Hint:  69 degrees is the best temperature, for both A/C and furnace).

Not Sweating the Small Stuff - You do have to care enough to tend to smaller issues such as fixing a faulty light switch or replacing burned-out light bulbs.  Home buyers go through the home turning on lights, flicking switches, opening closets, cabinets, and drawers.  Keep small things like these in good working order...it's easy and it can help ensure an overall better opinion of your home.

Avoiding some of these mistakes can help prevent home buyers from thinking your home should be worth less than you do.

2015 Homeowner Tax Benefits

Hopefully, you will are taking advantage of the tax deductions allowed to you regarding owning your own home.  These deductions include:


Property tax deduction:  Any money you pay to city, county, and state property tax assessor is tax deductible. 


Mortgage interest deduction:  Your mortgage interest on both first and second loans is tax deductible.  Any points you paid to get a lower interest rate are deductible.  Private mortgage insurance payments are also deductible.


Closing costs:  If you purchased your home or re-financed your mortgage in 2015, some fees to the mortgage lender are deductible.  Ask your tax professional for guidance.  Also, you may deduct some moving expenses, such as items for your home office, if you have one.  Be sure to show your tax professional your H:UD-1 form.


Home office deductions:  If your home is your principle place of business and you meet other IRS guidelines for home businesses, you can take a deduction on workspace dedicated to your business.  The space cannot be used for any other purpose.  You can also depreciate that portion of your home over 39 years.  All improvements to the workspace are tax deductible.  In addition, your security expenses, phones, internet costs, computers, insurance and utilities can be deducted or depreciated according to IRS allowances.  Percentages and limits apply, so consult with your tax professional.


Energy Star:  If you purchased an energy efficient system or appliance for your home and it meets government Energy Star standards, you may deduct a portion of your expenses.  Save your receipts.


Property sales deductions:  If you purchased a home, occupied it as a primary residence and sold it in 2 years, you could be eligible for some capital gains exclusions up to $250,000 if you're single, or $500,000 if you're married.
There may be other deductions for you to take advantage of that are associated with your home, so be sure to save all receipts throughout the year for repairs, parts, purchases, remodeling, etc.  Some allowances and special circumstances apply, so be sure to talk to your tax professional.


Save your tax records up to 7 years, as you have to be able to support the deductions you take with documentation, such as receipts, credit card statements, cancelled checks, and online banking.


Ongoing tax deductions are another advantage to home ownership.  If you are renting, it's your landlord who is benefitting from them.

What is My St. Charles Home Worth? Homes Sales in St. Charles 63301

October 2014 Update

 As we headed into the Holiday season, home sales in the St. Charles 63301 zip code dropped as far as the number of sales from September, but the average sales price increased...and that's good news!   

This report is for single family homes only and NOT condos.  I’m covering zip code 63301 only.  That means that any St. Charles homes in other zip codes are NOT covered in this report.  This report is informational and for the best advice for you as an area home buyer or seller, please contact me for a specific review of your needs.

All data is derived from the St. Louis MLS system.  If any St. Charles homes traded hands without a Realtor® involved, it won’t be reflected in this report.  All data is for the 63301 zip code only.   Percentages reflect increases or decreases from September 2014 statistics.

The 63301 zip code offers a diversity of living choices, with a focus on affordable housing.  Much of the zip code area is easily reached by I-70 and I-370.

St. Charles 63301 Single Family Home Category Data Summary:

 

Homes Sold:                       40  (2 Bank/Government foreclosures)                  DOWN:                 37.5%

Average Price:                   $177,391                                                                       UP:                         2.8%

Days on Market Avg.:       58                                                                                           NO CHANGE

Avg. Price per Sq. Ft.:       $107.66                                                                         UP:                         2.8%

Average Sales/List %:       95.63%                                                                          UP:                         1.5%

Most Expensive Home Sold:                                       $555,000

Least Expensive Home Sold:                                       $ 52,500

Number of Homes Currently For Sale:                      159

 

What can we determine from the latest statistics?

• While sales volume may have dropped from the previous month, it’s still a strong month.
• Days on Market is pretty solid, with homes selling in just under 2 months.
• Distressed properties (foreclosures) have minimal impact at this point.  Less impact there means better pricing for the rest of the market.
• Sales prices increased along with the average price per square foot.  The increase of the sales to list price is always good news.

What does this mean to you as a St. Charles single family home owner?

Home sales prices are rising and selling quickly.  It’s still critical to price right, prep your home, and hire a Realtor®.  Don’t forget, you also have new construction competition.

For an evaluation of your specific home’s marketability, please contact me at (314) 348-4033.

What does this mean to you as a potential St. Charles 63301 home buyer?

If you find a home that suits you, don’t delay acting or you may miss out on your opportunity.

St. Charles still continues to be a VERY affordable place to buy a home.  There is some new construction available, and PLEASE, have me help you for new construction.  The builder will NOT cut you a price break for showing up unrepresented, and using my services will NOT cost you a thing!

When you’re considering buying a St. Charles area home, please contact me at (314) 348-4033 with your needs and I’ll help you find your ideal home!

 

For your convenience,  CLICK HERE  to search for a home anywhere in the St. Charles and St. Louis area.