Tips on Buying a Home in a Tight Market

 

Increase your chances of getting your dream house instead of losing it to another buyer, with these easy steps.

1.    Get prequalified for a mortgage loan.  This will allow you to be able to make a firm commitment to buy and make your offer more desirable to the seller.

2.    Stay in close contact with your Realtor, as we find out first about new listings that come on the market.  And, be ready to go see a property as soon as it goes on the market.

3.    Be ready to make a decision.  Spend lots of time in advance deciding what you must have, so you won't be unsure when you have the chance to make an offer.

4.    Bid competitively.  You may not want to start out offering the absolute highest price you can afford, but don't try to go too low to get a deal.  In this tight market, you'll lose out.

5.    Keep contingencies to a minimum.  Restrictions, such as needing to sell your home before you move or wanting to delay the closing until a certain date, can make your offer unappealing.  In this tight market, you'll probably be able to sell your house quickly.  (You can also take with your lender about getting a bridge loan to cover both mortgages for a short period of time).

6.    Don't get caught in a buying frenzy.  Just because there's competition doesn't mean you should just buy anything.  

Ready to get started?  Contact us to ensure you have expert, professional representation when buying and selling a home.

(314) 348-4033

PoshSTLHomes.com

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

 

Buyers A Home Seller Should Avoid

Once you have your home up for sale, it's helpful to know the type of buyers you're dealing with.  Essentially, buyers fall into one of three categories:

1.    Buyers searching for a dream home.

2.    Buyers looking for a great home at a fair price.

3.    Buyers scouring for the next bargain.

"Dream" home shoppers will most likely be willing to pay full price if they find a property they want.  "Great" home searchers probably aren't going to pay full price, but will be more likely to negotiate.  "Bargain" hunters thrive on finding the best price and may be looking for a fixer-upper.

If your home is well-kept and priced correctly, you probably won't encounter the bargain hunter.  Instead, you may come across three types of buyers among "dream" home and "great" home shoppers that aren't going to serve your bottom line.  These are the buyers you may want to avoid.

1.    Zero Percent Down Buyer

        As you and your Realtor know, it's smart to use recent comparable sales to help determine the market value of your home.  However, there are times when the market value is higher than the bank's appraised value.  Adding a buyer putting no money down to that scenario increases the chances they won't qualify for a loan.  In the end, you will have taken your home off the market and missed out on the opportunity to entice a stronger buyer, only to end up having to put your home back on the market.

2.    The Bully Buyer

        Nobody likes a bully and you're not going to like this type of buyer either.  The bully buyer will inundate you with a list of things that are wrong with the house -- all while presenting an offer.  Also, with this type of buyer, you can expect the inspection process to be a nightmare.  If you detect a bully, move on.  The bully approach is a prelude to endless negotiations with their trying to obtain concessions by nitpicking every aspect of the transaction.

3.    The Sight-Unseen Buyer

        It's not unheard of to get an offer from someone who has only seen photos of your house.  Beware that this type of buyer may have a trick up his/her sleeve.  Most home buyers will not purchase a house without seeing it.  Instead, this buyer might want your house off the market so they can make a decision later.

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.

4 Questions To Help You Decide Whether To Sell Your Home

Do you find yourself dreaming about a new home?  If you think it could be time to move to a new neighborhood, ask yourself these four questions to determine it it's time to take the leap:

1.     How happy are you with your current home?

If you're not feeling the love when you walk through the door, it may be time to start exploring available homes on the market.  Your home is your castle and should make you feel comfortable and at ease...not stressed and longing for something else.

2.     Do you love your neighborhood and schools?

A good neighborhood, strong school district, and neighbors you enjoy should be important to you.  There are plenty of homes on the market in fabulous neighborhoods that pride themselves on safety and community.  Give me a call to find out more.

3.     Do you have too little or too much home?

If the size of your family has changed recently, you may be left with a home that's too small or too large.  Let's find a home that's just right.  Whether you're looking to downsize or move up the ladder, there are plenty of options to choose from.

4.     Is it time to buy?

If you think it's time to make a move, give Judy Wrozier - Coldwell Banker Realty - Gundaker a call to guarantee you find a home that hits all the right notes.

Just What Is A Luxury Home?

Price alone does not distinguish that luxury status.  It is location, property entry, architecture, decor, decadent amenities, entertainment capability, lovely grounds and myriad of other details that help a home stand out from the ordinary.

A supersized McMansion does not qualify as a luxury home, unless it has the requisite extras, superior location and a view...perhaps.

As discerning and honest luxury real estate professionals, we believe we know a luxury home when we see it...especially when the property has all the markings of luxury, location, and panache.

Luxury home buyers want real estate representation that provides, in order of preference:

• 86% - Help in finding a luxury home
• 56% - Help in managing the transaction
• 43% - Expert negotiation counsel
• 34% - Advise on purchasing a luxury home
• 28% - Assistance with paperwork
• 13% - Help understanding the process
•   9% - Help locating jumbo financing

Other tidbits...

• The average down payment for the luxury home buyer is 33.6%.
• The typical luxury home buyer spends 11 weeks searching for a home prior to purchase.
• Luxury home buyers, on average, look at 12 homes before making a final decision to buy.
• The typical luxury home buyer seeks a residence with a minimum of 3500-4000 square feet, at least 4-5 bedrooms, and a minimum of 3-4 bathrooms.

Ready to buy a luxury home in the St. Louis metropolitan area?  Give us a call at (314) 348-4033 to get started.  We have many fabulous luxury properties getting ready to hit the market.

If you have an exceptional home you would like to sell, contact us at (314) 348-4033 for a  FREE home evaluation to find out if your home will qualify as a coveted PREMIER GROUP  "Signature Home" ... the luxury standard in the St. Louis area.

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.