Still Some Free Money (for Some)

The Missouri Housing Development Corporation (MHDC) has a tax credit that DIDN’T expire on April 30th and Funds are still plentiful! As reported in today’s Post Dispatch, the credit isn’t being used as much as expected. The credit is $1250 for the HOPE tax credit with an additional $500 for the HOPE Energy Credit, for a possible credit of $1750.

MHDC has been a source of assistance for home buyers for a long time (starting in about 1969). The type of assistance has varied. A few years back, they offered a program for first time home buyer downpayment assistance. This hears “HOPE Program” has taken the place of the down payment plans and has shifted the responsibility from the lenders directly to the home buyer or their accountants.

Information on the HOPE Program can be found online HERE. Anyone wanting to take advantage of this plan better hurry though. While it doesn’t expire on July 1st like the federal tax credit, this credit only applies for homes purchased before 8/31/ 2010 with the forms being due by September 30, 2010

Your First Reality Show!

Last week a production assistant with the show “My First Place” called to let us know that the show is recording episodes this summer and fall in ST LOUIS! She found us online and wanted us to pick out some of our buyer’s to apply for the show.

For some, buying their first home is an exciting but very personal event. For many, a little attention doesn’t hurt.

What they are looking for is an energetic person or couple buying their first place to work with the show to produce a mini-documentary about the buying process. Its a really cool show, although it really tends to oversimplify the process. Not that its bad. Condensing the home buying process to 30 minutes-less commercial break time-just isn’t realistic. Some first time buyer’s look for months, then take another few months to get throught he rest of the process. Making it into a TV show requires a lot of editing.

Either way, if you’re considering buying your first home in St Louis Missouri and would like to be on the HGTV show “My First Place”, contact us online and we’ll get you all the details.

The process of finding a home for the first time can be a variety of different experiences combined into one. Having a good Realtor in St Louis to guide you through the process is what the show wants to capture. The interesting thing I’ve noticed since I’ve been in the real estate business is that people love to tell the stories about their home buying process. The thought of having a TV show made about your home buying process seems like the PERFECT closing gift to have after the fact to show friends and family and make the process easier and more fun!

St Louis real estate is our specialty! If you’re looking for real estate anywhere in the St Louis, MO area, including St Louis City, St Louis County, St Charles, Ballwin, Chesterfield, Kirkwood, Webster Groves, or one of the other areas we serve, simply click the “Search St Louis Real Estate” link at the top or bottom of this page to begin your home search

Balancing Opinions

Buying a home for just about everyone is a unique experience. Something that is done for most folks so rarely calls for some guidance and direction. Where do we get our direction? People seek different levels and types of direction when it comes to buying a home and as a real estate practitioner, its an interesting look at human behavior.

The Internet Crusader
If you’re reading this blog post, theres a chance that you have a bit of the internet crusader in you. In years of working in real estate, the internet continues to grow in its significance as a tool for the real estate consumer and within the industry. The interesting thing is that while there is a great deal of information online that is useful, there is also a great deal of misinformation and a great deal of information that is reliable in another state and city besides St. Louis Missouri. Laws and customs vary, so use the internet as a resource, but not as a guide.

The Jury Foreman
Many buyers like to talk with their friends and colleagues about what they are trying to do. You’re a jury foreman if you like to present scenarios to various individuals to see what they would do, then tally the results and make your decisions democratically. If that’s a basis for your decision making, it could help, but it could be trouble. Problems that sometimes occur to jury foreman is when the ‘members of the jury’ don’t know or care about the subject matter. Jury members can also get only a portion of the scenario, and miss a crucial element to the decision.

The Loyal Child–The Loyal Friend
To a large extent, its normal to be a loyal child or loyal friend. Most people have trusted advisors in their life that they include in big decisions. In any case, its interesting to observe the extent to which the “Trusted Parent” or “Trusted Advisor” feels comfortable in participating in this role. Some “trusted advisors” really have difficulty with the individual consulting with a professional such as a Realtor and others are the exact opposite, saying “I don’t know, what’s your Realtor think?” In any case, its good to have a Realtor that has enough humility and understanding to encourage participation in discussions and gently share experiences and ideas without turning an exciting process into a power struggle. One concern with the loyal child or loyal friend can occur because the real estate field is dynamic. Someone with a few experiences spread out over a few decades and possibly several different locations can be giving advice based on an entirely different market conditions or out of date factors.

The Groupie
In this day and age, “brand loyalty” can really be a refreshing break from the norm. The Groupie takes it to the next level. The groupie is someone with complete faith in a specific home builder or Realtor, who seems more concerned about pleasing their chosen professional rather than making the right decision. Some might think that this is the ideal situation for a Realtor. That’s probably not so, for just as the groupie would give lots of credit to their mentor, they are equally as quick in placing blame if things don’t go as well. As a Realtors, lots of people want our opinion about neighborhoods, school districts, and all sorts of other matters. We’re usually happy to share them too! As with all the other types of buyer’s, its important for the buyer to keep THEMSELVES and THEIR PRIORITIES front and center throughout the process.

The bottom line: when buying a home, the amount of advice and ideas on “how things are done” can be OVERWHELMING and not always reliable. Working through the process and sorting out different ideas is the most crucial element in making a sound decision. Having good professionals means the help that process, not hinder.

St Louis real estate is our specialty! If you’re looking for real estate anywhere in the St Louis, MO area, including St Louis City, St Louis County, St Charles, Ballwin, Chesterfield, Kirkwood, Webster Groves, or one of the other areas we serve, simply click the “Search St Louis Real Estate” link at the top or bottom of this page to begin your home search

The Mystery of Credit Scoring

In my experience, there appears to be a great deal of confusion about what makes up a persons credit score and what affects it the most.

In the insurance business, as an employer, as a landlord, and in real estate (indirectly) I am involved in discussing credit scores with the public. I’ve had people tell me their credit is bad and it turns out reasonably good, and I’ve had people tell me their credit is “ok” only to find that it is horrible.

Credit scores are calculated from all the data in your credit report. This data can be grouped into five categories as outlined below. The percentages in the chart reflect how important each of the categories is in determining your (mortgage) credit score. Different uses for credit reports, such as employment or insurnance generally weigh criteria differently.

These percentages are based on the importance of the five categories for the general population. For particular groups – for example, people who have not been using credit long – the importance of these categories may be somewhat different.

Payment History

Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)
Negative public records (bankruptcy, judgements, suits, liens, wage attachments, collection items, and/or delinquency (past due items)

Severity of delinquency (how long past due)
Amount past due on delinquent accounts or collection items
Time since (recency of) past due items (delinquency), adverse public records (if any), or collection items (if any)
Number of past due items on file
Number of accounts paid as agreed

Amounts Owed

Amount owing on accounts
Amount owing on specific types of accounts
Lack of a specific type of balance, in some cases
Number of accounts with balances
Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)

Length of Credit History

Time since accounts opened
Time since accounts opened, by specific type of account
Time since account activity

New Credit

Number of recently opened accounts, and proportion of accounts that are recently opened, by type of account
Number of recent credit inquiries
Time since recent account opening(s), by type of account
Time since credit inquiry(s)
Re-establishment of positive credit history following past payment problems

Types of Credit Used

Number of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.) “Good” Credit, such as mortgages help build your score, whereas “bad” credit such as excessive credit cards or payday loans may detract from your score.

Buying Process Simplified

Buying a Home can be a Great Adventure

Working with first-time home buyers is always exciting. Doing anything for the first time, most people want to understand the whole process before taking the first step. In real estate buying, that’s like taking a drink off a fire hose. The reasoning is simple—there are too many different types of home buying situations, and many different ways to buy.

1. The first step is finding a good buyer’s agent. This isn’t required to buy a home, but working with a professional with experience in all facets of home buying makes the process easier and generally tips the value scale in the buyer’s favor. Your Realtor can generally provide you with the BEST resources for home loans and obtaining a pre-approval letter.

2. Explore. After discussing the ideal home with your agent, you should be looking at properties online and getting out to see the ones you like.

3. Investigation. When real possibilities pop up, its time to research. Learning as much as possible about the home, its neighborhood, and how it would “fit” your life is important!

4. MAKE OFFER! Making an offer is usually done by writing up a Residential Sale Contract that details the entire process of buying along with all the pertinent details. Price, EARNEST MONEY, Closing Date, and timelines for INSPECTIONS and TITLE WORK are written into the offer.

5. NEGOTIATIONS. Every single detail that was put into the contract is open to negotiations. Usually price, closing date, and closing costs are the key items under contention.

6. UNDER CONTRACT!!! Once the buyer and seller have agreed to terms, the home is under contract. The remainder of the buying process should be outlined in the contract. An experienced agent will usually keep track of timelines and make sure the lenders, inspectors, title agencies, the seller and you, the buyer are doing everything necessary to ensure your agreement is properly executed. While contracts vary, the normal periods are listed below:
• INSPECTION PERIOD

Nothing like moving into YOUR OWN home!

• RESOLUTION PERIOD
• FINANCING CONTINGENCY
• TITLE CONTINGENCY

7. CLOSING DATE. The exchange of money from the buyer (and or lender) for the DEED to the home is called CLOSING. Unlike buying a car or other personal property, the closing isn’t instantaneous. In St Louis, most closings occur at title company offices. The buyer usually comes in to sign loan documents, the HUD1 STATEMENT, and other documents to transfer ownership. The Seller comes in after the buyer is finished to finalize. Sometimes the transaction is not completed until the buyer’s bank transfers the money or the deed is sent. Sometimes closings take more than a day to complete.

Once your Realtor hands you the keys, the buying process is over—just in time for the MOVING PROCESS!

Buyer’s Envy!

Buyer's Today are to be ENVIED

As I was reflecting on my own buying journey I have to say I was envious for a moment of the position the current buyer is in. I go in and out of amazing deals on a daily basis and always think if only I were in the market to purchase! Currently we have 2 four families, a commercial store front w/ an apartment, a loft downtown, and our own personal home. With all that accumulation we never had any of the incentives offered now. My incentive at the time was to purchase and watch my money grow. Interest rates were at 7%, properties were at a premium, and the buyers & investors were coming out of the wood work! Today we have untouchable 30 year fixed interest rates, Amazing Deals that have instant equity, & for first time homebuyer’s & seller’s additional bonus of $6500-$8000 from the government just for the shear action of purchasing! I don’t know about you but it is hard to save up $6500-$8000 and in this situation it is just another added bonus to buying! I think this time will be historically one of the best buying climates we will see. I believe most buyers, such as one of my current clients who purchased a home in Ballwin, MO for 130,000+ LESS than what the current owner purchased it for, are amazingly positioned well in their real-estate investment! I don’t believe the government will be extending the tax credit that is up May 1st & I think we will see an increase in the interest rates so if I have any advice is now is the time! Buy!

Not Sure About Buying?

Many wonder why buy? I mean is it really worth it?? I can relate.

The first time we ventured to purchase we were terrified! What if we bought and couldn’t afford it or something broke….what would we do?? My thoughts were very emotional and not at all in the direction of investment.

Today my experiences tell me that the perks of buying far out weigh any hesitation I once had. I developed a top 6 list of why to not just buy in St. Louis, but also RIGHT NOW in this Buyer’s Market!

1. DEALS- there are some amazing deals out there. Most sellers know this is a tough market and are trying to price to sell. Not to mention all the foreclosures and short sales available.

2. Interest Rates are at a all time low! 5% and less sometimes which they are predicting these rates will not stay this low and that these rates won’t be seen again for a very long time.

3. $8000 Tax Credit from the government which will be up May 1st and I don’t think they will extend it again. This is great because whatever you get your property for just take an additional $8000 off as you would not be getting that cash if you did not purchase!

4. It’s an Investment & Builds equity. If you are already paying rent why not put that money into something that is yours and will appreciate over time. If done correctly it is a great way to create money as when you sell your investment will have grown. If you are paying $1000/ month in rent that is $60,000 you have thrown out the window in a 5 year period.

5. Reduces taxable income. Not only do you have your own home but the government allows you to write off the interest which is another great annual savings!

6. Ownership & Independence! It is yours! You can personalize it and create a living space that is completely molded to your ideals. Some may view that as work, but actually it is a very empowering and enjoyable experience.

My perks for buying list could actually go on, but space is limited. If you seek experienced professionals that have your best interest in mind- Buyers Agent, Lender, Inspectors, & more you will find that you are well guided in your purchase. The overwhelming thought of buying will diminish as you are guided through the process.

Often a good Buyer’s Agent will have many contacts for the key players needed in a purchase, so the key is to connect with a good buyers agent. Our service is free to the buyer and we really minimize the work needed to attain a property!

Happy Buying to all!

St Louis real estate is our specialty! If you’re looking for real estate anywhere in the St Louis, MO area, including St Louis City, St Louis County, St Charles, Ballwin, Chesterfield, Kirkwood, Webster Groves, or one of the other areas we serve, simply click the “Search St Louis Real Estate” link at the top or bottom of this page to begin your home search

Celebrate Superbowl

Reading from posts from my Active Rain friends about what they are doing today has helped me put some perspective on my life and purpose on earth today.

Today I’m having a Superbowl Party. It’s a workday, of course, but around 4pm, I’m winding down and having some friends over to eat, socialize, play games, and watch the Colts dismantle the Saints.

Its a celebration, really, no matter who wins.

People ask me all the time, some version of this question, “What’s the best time to sell my house?”

I always feel like a politician when I answer, because I usually end up saying there is no best time. While the largest volume of sales usually takes place in the spring, if I put my house on the market, and 10 of my neighbors do the same, its probably not the best time. Part of what keeps Realtors in business, is that home selling is not simple, and developing a strategy to sell is usually more involved than just picking a time. We work hard all year round.

Given the above, Super Sunday is a day that has been unofficially thrown around for years as being the beginning of the Spring Selling Season. Its a time when people change focus on one of the bigger priorities in life……football….. and return their focus to other matters. Its a time to look out into the yard and develop a list of things to do in the yard to establish a punch list for maximum curb appeal. Things inside that I’ve noticed, but been too busy with Holidays, Kids, and Championship Games. Its a time to look ahead to spring.

So today when I’m partying with my friends and enjoying the game, a part of me will be celebrating the start of sales season with excitement for 2010.

St Louis real estate is our specialty! If you’re looking for real estate anywhere in the St Louis, MO area, including St Louis City, St Louis County, St Charles, Ballwin, Chesterfield, Kirkwood, Webster Groves, or one of the other areas we serve, simply click the “Search St Louis Real Estate” link at the top or bottom of this page to begin your home search

(Getting)Back Tax Part 1 of 2

Instant Equity on a New Home Purchase

I’ve been a Premier Realty Exclusive employee for the last 1+ year and this influenced me to consider buying my own home.  But, the government’s offer of up to $8000 if I closed on a house by November 30, 2009 (since extended to 6/30/10) motivated me to take action.  

The whole process of looking at homes for sale, setting up appointments, going through 15+ homes in a day, can be intimidating & time consuming.  As I set up appointments, met sellers, viewed houses and  went through negotiations, I received first-hand experience of how having a buyer’s agent makes a buyer’s life so much easier.  Once I closed on my house, I mailed off my forms to get my tax credit.   

The home buyer tax credit has taken on a new form since I closed on my house back in early October with the extended & revised home buyer tax credit (Tax Credit Comparison Form).  The gov’t is offering up to $8000 for the first-time homebuyer, and the revision includes $6500 for repeat buyers who have owned their home for 5 or more years.  How does an individual get the tax credit from the government into her/his hands? 

I chose to amend my 2008 tax returns so I could get the tax credit sooner, rather than the alternative of waiting until 2009’s tax returns to show up.  The process was simple. I had to fill out 2 forms, both of which are accessed through the IRS website.  These can also be found through Turbo Tax website.  Be sure to discuss this process with your tax professional for more details.  You just have to be under contract by April 30, 2010 to take advantage of this extended tax credit.  This date will be here before you know it & finding a house can take some searching, so don’t wait until the last minute to take advantage of this great incentive!

by Susie Van de Riet

St Louis real estate is our specialty! If you’re looking for real estate anywhere in the St Louis, MO area, including St Louis City, St Louis County, St Charles, Ballwin, Chesterfield, Kirkwood, Webster Groves, or one of the other areas we serve, simply click the “Search St Louis Real Estate” link at the top or bottom of this page to begin your home search now.

Free Money

Free Money comes at a Cost

Last night a buyer called me about free money.  Very understandable.  Who could complain about free money?   Well, in reality, it may not be entirely free, and there could be a catch…..or two.

The Missouri adminsitration that handles most home buying assistance is called the Missouri Housing Development Commission, commonly known as MHDC.  Programs through MHDC range from rehabilitation loans and rebates to loans with downpayment assistance.   Timing is important if you’re interested in securing assistance from MHDC as most of their programs rely on the sale of bonds for funds.  The funds become available on a certain date and then expire when the funds are exhausted.  First come first serve. 

To look more closely into MHDC or any other home buyer program, contact an approved lender.  Make sure your lender is approved for the program in which they are giving information, as some lenders may try to avoid the subject or convince buyers that the program isn’t  useful if they aren’t able to participate.

Another entity in the St Louis are is Beyond Housing.  They also have a home buyer center that can assist low income buyers in achieving thier goal of home ownership. 

For all the Missouri associations providing assistance and education to St Louis home buyers, a list can be found at the US Department of Housing and Urban Development website

Happy Hunting!

St Louis real estate is our specialty! If you’re looking for real estate anywhere in the St Louis, MO area, including St Louis City, St Louis County, St Charles, Ballwin, Chesterfield, Kirkwood, Webster Groves, or one of the other areas we serve, simply click the “Search St Louis Real Estate” link at the top or bottom of this page to begin your home search now.