5 Ways Hunting for Bargain Homes for Sale Can Backfire on You

Naturally, everyone wants to save money...especially when making a large purchase, such as a home.  We all want the best home in the best neighborhood at the best price.  Perhaps you think you have to shop the "bargain bin" to get a deal.

Although some people get lucky buying a bargain basement home, not everyone is so fortunate if you put price first.  Here are five ways a low price can backfire on you:

1.    The home doesn't suit your needs.    A home is a good buy only if it suits your family's needs in regard to space, comfort, features, and function.  Buying a home without enough bedrooms or bath is not comfortable or functional.

2.     The home needs updating.     A home priced below market value usually requires expensive repairs or updates.  Are you willing to do the work or pay someone else to do the work?  Remodeling is expensive.  Talk to professionals to find out exactly what updating will cost.

3.     Bargains are rare.     If a home is priced lower than others in the area, there's a reason.  Foreclosure homes may appear to be a bargain compared to other similar homes, but there's usually a real difference in the way the property has been maintained.  It's not much of a bargain when you find out all the copper wiring has been removed from the walls, appliances are gone, flooring has been torn up, and there are holes is every wall.

4.     A bad fit costs you later.     Once you decide to get out of a home that's too small, too old, or too far from where you need to be, you'll more than likely pay more in transactions costs to sell the home and buy another than if you'd chosen more wise in the first place.

4.     You lose ground trying to lowball the seller.     Just as you would want the home you buy to appreciate in value, the sellers bought that home as an investment, too.  They want to net as much as possible as they've already taken on the risks of buying and maintaining the home.  This makes them less willing to negotiate on a home that is well-priced and well-maintained.


If a property has been on the market for a long time without a price reduction, you are more than likely dealing with an unmotivated, unrealistic, or upside-down seller...which will waste your time unmercifully.  These sellers won't negotiate to your level.


Foreclosure homes or a short sale could take months to close.  During that time, interest rates could go up and that savings your thought you were getting could evaporate in higher interest payments.


As home prices are still below previous market highs and mortgage interest rates are still at historic lows...you're already buying a home at a bargain.  The best strategy for today is not to try to beat the seller down, but to offer a fair price for the home you think is best for your family.


As an Accredited Buyers' Representative (ABR), I feel my biggest fiduciary duty to my clients is to ensure they do not overpay for a property. 

JUDY WROZIER

(314) 348-4033

Judy.Wrozier@ColdwellBanker.com

4 Mistakes That Decrease the Value of Your Home

 

Whether you're planning to sell your home in the near future, or further down the road, you don't want to make mistakes that could decrease the value of your home.  When you're selling your home, you're hoping for a meeting of the minds.  What a buyer sees as a mistake is not always the same as what you consider a mistake.

 

Here are four mistakes that could potentially decrease the value of your home.

 

1.     Following Trends - It's easy to get caught up in liking trendy new designs, but if that trend dies quickly, you'll find you won't be impressing buyers.  If it is a trend that is difficult to change, it could decrease the value of your home when you put it on the market.  That's because buyers will think about how much money they will have to spend to fix the trendy mistake.  So, you naturally want to make your home your style, but if you have plans to sell in the future, think about how the trendy renovation could impact the sale of your home.



2.     Not Maintaining Appliances - You can sell a home "As Is"...meaning in the condition the property is in when buyers see it.  However, having lots of issues and repairs needed will decrease the home's value.  Cleaning up appliances that go along with the sale of the home is important.  If beyond cleaning or repair, it's worth replacing them.

 

3.     Not Sweating the Small Stuff - Show your care enough by tending to the smallest issues, such as fixing a faulty light switch or repairing a leaky faucet.  Buyers go through homes and turn on lights, open closets, cabinets and drawers, and even look in medicine cabinets.  They will also turn on faucets and flush toilets.  Keep small things like these in good working order.  It's easy to do and it will help lead to an overall better opinion of your home when it is time to sell.

 

4.     Going Wild With Color - Although you may like lively, bold colors...buyers generally like paint that is neutral.  That's because they can then see your home as a blank canvas to which, if they purchase, they can paint it the way they like it.  Extra bright or non-traditional colors can scare them off.  So opt for more neutral colors than funky purple and neon orange carpet.

 

Remember, avoiding some of these mistakes can help prevent buyers from thinking your home is worth less than you do!

 

JUDY WROZIER

(314) 348-4033

Judy.Wrozier@ColdwellBanker.com

What High End Luxury Home Buyers Should Look For in Their Upper End Home

Upper end home sales are on-fire!  Naturally, what constitutes a "luxury" home is personal to a home buyer (and seller) and price does not prove its qualifications.


Here are a few qualities I urge high-end property buyers to focus on:

Ceiling Height - The higher the better.

Architectural Uniqueness - At least look for "good bones"...a solid foundation, unusual details, high-grade materials, and an artistic component.

Practical Layout

Windows - They're a primary source of heating and cooling loss.  They should be double-paned and heavily insulated to protect against weather and noise.

Storage - Seriously, how can we live without lots of closets and copious additional storage in the basement?

Work-Out Room and/or Gym

Main Floor or Second Floor Laundry (or both)

Location
 
Views - Do you really want to watch your neighbors barbeque every night?

Light - You know the difference in how you feel when you walk into a bright, light-filled home as opposed to a dark, gloomy house.  Enough said.

Consider It Done - High-end renovations that are done well take time and time equals effort and money.  Some buyers really should avoid time-consuming, aggravating fixer-uppers.

 

For expert Accredited Buyers Representative (ABR) assistance is finding and purchasing your luxury home, contact:

 

JUDY WROZIER, ABR®

(314) 348-4033

Judy.Wrozier@ColdwellBanker.com

Sell Your Home By Making These Minor Improvements

Appraisal Institute says Lower Your Expectations

I am sharing this article sent to me from "Real Estate Economy Watch".  Please read if you are getting ready to sell your home.

The Appraisal Institute is advising homeowners to choose upgrades instead of major remodeling projects for the greatest potential return on investment.

“In general, simpler, less expensive projects have the best cost-to-value ratio,” said Appraisal Institute President M. Lance Coyle, MAI, SRA. “With the spring home buying season around the corner, homeowners should invest in projects that are most likely to preserve the value of their homes.”

According to Remodeling magazine’s most recent Cost vs. Value report, only five projects saw their cost-to-value ratios rise in 2014: roofing replacement, garage door replacement, 20-gauge steel entry door replacement, vinyl siding replacement and fiberglass entry door replacement. Among projects with the biggest declines were two-story additions, composite deck additions, master suite and kitchen remodels.

Other minor projects with potential major payoffs, said the Cost vs. Value report, are mid-range and upscale garage door replacements, manufactured stone veneer, mid-range window replacements and minor kitchen remodels.

Before calling a contractor or heading for the home improvement store, however, Coyle advised keeping the improvement is in keeping within community norms.  “It’s possible that consumers won’t be able to recoup the cost of the upgrade when the home is sold, so it’s important to meet, not exceed, what’s standard for the neighborhood, and to also consider expected length of time in the property,” Coyle said.

He also said that making routine home repairs is essential to maintaining a home’s value. A house that has been well maintained likely will have a higher value than a similar house that is in disrepair, Coyle said. For example, replacing worn out trim boards may in certain situations not add any additional value to the home, other than to preserve the value that would be likely as evidenced by sales of similar homes in the area that do not have worn-out trim boards.

When you're ready to sell your home, call JUDY at (314) 348-4033.  Visit website at:

Buy-Sell-StCharles.com

Take Pictures of Your Home Even If You Are Not Currently Selling

Lesson learned for all home owners...make sure to take year-round pictures of your home, especially the exterior.  Even if you are not planning to sell your home, it is important to have pictures available of your home for your Realtor.




Sure, you may not be planning on selling your home soon; however, chances are that sometime in the future you will sell.  What if you find yourself having to sell due to relocation, financial constraints or other obstacles that suddenly happen to your lifestyle?  Let's say you have an inground pool, but you find you have to sell your home in November.  You've covered the pool...that does not make for a very enticing picture featuring that great outdoor space.  The same for beautiful landscaping with flowers in bloom or water features such as ponds, fountains, etc.




This year, make it a point to take some pictures of the exterior of your home throughout the seasons.  I'm sure your very proud of your home and having a picture file will be handy.




Pictures are extremely important when marketing a home for sale and when you have special exterior features your Realtor will want to highlight, be ready with your array of seasonal pictures.

2015 Market Predictions

What do I predict for 2015?  In this tumultuous world, each day brings surprises no one would expect.  However, I DO know this:


INTEREST RATES are historically low.  There has never been a weak real estate market in a low interest rates market.
INVENTORY in the St. Charles/St. Louis area is low.  Builders have acknowledged this as evidenced by all the new construction developments, as well as buyers snatching up residential lots.
The MIDDLE CLASS is feeling an uptick in their net worth as home pricing rebounds and equity markets soar.
ENERGY PRICES are the lowest they have been in years, providing the equivalent of a "national stimulus".
EMPLOYMENT strengthens, although a weak energy market could result in job losses.  Big cities (St. Louis) are the centers of job creation.
CONSUMER CONFIDENCE is the highest it has been since 2007.


So what does this mean for the local real estate market?


     -     The threat of rising interest rates will probably prompt buyers to make decisions.
     -     Rising rents make buying a viable alternative.
     -     High-end closings on homes from several months back will likely boost average   pricing upwards.
     -     Quality will be a powering force for everyone.
     -     The biggest question for the 2015 real estate market is:

                                  How deep is the Buyers' pool?

HOME BUYERS ADVICE - HIRE YOUR OWN PROFESSIONAL AGENT


Buyers who are represented by an ABR (Accredited Buyers Representative) are more likely to have a successful transaction.  Getting your home purchase closed is quite complex in today's market.  There are many more hurdles buyers face, such as stricter financing, foreclosures, short sales, and for-sale-by-owners.


Whether you are in an area with lots of homes for sale and falling prices (Buyer's Market) or where homes are selling quickly before you can even write up an offer (Seller's Market), you'll be much better off having your ABR navigate the market with you.


Your ABR undertands the current market.  She knows the neighborhoods and will help you obtain the right house at the best price and terms.


Although you can search for homes online, do you know about the homes that are coming on the market?  Your ABR has the means to communicate your needs to make sure she can provide you with details of upcoming homes for sale before they become active listings.  Many homes are bought and sold this way, without ever going active or having a sign in the yard.


4 Tips on How to Work With Your Own Agent

1)  Show commitment in order to get great service.  Get prequalified with a lender, so you and your ABR know exactly how much home you can afford.


2)  Work with only one agent.  It is customary to sign a Buyer's representation agreement.


3)  Stay in contact and be loyal.  If you vist open houses or new construction display homes, let the hosting salespeople you know that you are already represented.


4)  Along the home buying process, don't hide important information from your agent or she will be blindsided by key issues that could impact your closing negatively.


Once you and your ABR find your ideal home, the work really begins.  You're agent will navigate negotiations, loan approval, seller's disclosures, inspections, repairs, and so much more.

How Do Home Sellers Compete With New Construction?


New construction in St. Charles County is HOT right now.  Sellers are losing buyers to the "shiny, new product" on the market.  So, how do you compete?


First of all, you can compete with the price.  Typically, new construction is much higher in price per square foot.  You should price your home at fair market value....and don't think you need to allow negotiating room.  A home priced right in today's market should sell for about 98% of list price OR BETTER and should have an accepted offer within 60 days.


Second, make sure your light fixtures and bathroom fixtures are up-to-date.  Chrome faucets and brass light fixtures will stand out in photos and will make your home look as though it needs to be updated.


Third, either replace carpeting or have it cleaned.  New carpet, fresh paint, new window treatments and staging can make all the difference.  Buyers will more than likely find your home online, so the photos need to be professional and not taken with an iPhone.


Many buyers do not want to wait 6 months to get into their new construction home, so if your home is priced well, staged with some basic updates, clean, well-photographed and marketed by a good Realtor, you will have some success.


Make sure your Realtor takes the time, prior to putting your home on the market and having photographs taken, to make sure the property is looking top-notch and ready for the most discerning buyers.

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.

 

Will My Home Sell in the Winter?

I am often asked by potential St. Charles home sellers...."Should I list my home in the Winter?"


The answer is...if you have found another home you would like to purchase or need to sell...then YES!  Home buyers are searching and shopping for homes 365 days a year and if your home is not on the market, it certainly won't sell.


It's true, as a St. Charles and St. Louis Realtor, I normally see a slower pace in the real estate market during the late fall and the winter months, but sales certainly do not stop.


Many things drive buyers into looking for a home during Winter;  i.e., relocation, desire to obtain another dream home, new job, retirement, or life events, like a new baby.  In addition, many buyers want to take advantage of lower interest rates and not gamble that the rates will remain low come Spring.  Buyers become homeowners every day of the year (with exception, of course, for actual holidays when banks and title companies are closed).


I find that during the winter months, when inventory is typically down, Sellers with a "quality" home (well-maintained, updated and nicely presented) can actually get a higher price due to the fact there are fewer competing homes for Buyers to choose from.


Come Spring, the real estate market will be flooded with homes being listed, making competition fierce.  Typically, an oversupply of homes will drive sales prices down.


So, should you list in Winter?  I say, YES, if you want/need to sell in Winter or early Spring.  A common saying in my business is:  "There's a home for every buyer and a buyer for every home" regardless of what day or time of year it is.

Varied Pockets of Upscale Homes in St. Charles County

Want in on a secret?  Upscale properties in St. Charles County can be smart buys.  The elite home market segment of St. Charles County is a best-kept secret because you're getting so much more house for your dollar here.


The pockets of upper-end properties are peppered throughout St. Charles, Weldon Spring, O'Fallon, and Defiance.  Homebuyers generally can purchase a custom-built upscale property for roughly 30 percent less than in West County and the central Highway 40 corridor.


The St. Charles "luxury" segment starts at $500,000; whereas the figure is $820,000 for  \St. Louis County.  This fact often comes as a pleasant surprise to homebuyers, who may suddenly realize a luxury home is within reach.


The upper-end market has experienced steady sales in the past few months.  One reason may be that jumbo-loan rates have come down enough to entice homebuyers.


Offering quality schools, shopping, and a 30-minute commute to Lambert International Airport, the area offers a more relaxed ambience as well as an abundance of green space and available acreage.