Real Estate Rapture

In the Greater Springfield, Missouri area my research shows the following:

In February 2006 598 homes sold with an average price of $137,810.  The average 3 bed, 2 bath, 2 car garage home was $121,498.

In February 2007 452 homes sold with an average price of $155,208.  The average 3 bed, 2 bath, 2 car garage home was $124,293.

That is a 24% decrease from 2006 in units with a 1% increase in average price.  A large factor in the decline in units sold was due to the recovery efforts of the ice storm that hit in late January.

I saw interest rates on a 30 year fixed this morning at 6%.

The new daylight savings time changes will create more daylight hours this March than ever before, so I'm looking for a lot more activity from prospective buyers since they'll be able to get off work and look at homes during the week now rather than just weekends.

God is good!

There are many wonderful older homes in the Springfield area.  Some of them have been well-cared for or restored.  If you're like me and you love the old beauties and you happen to own one or want to find one, then today's message may strike a chord with you.

Updating your home in an older home appreciating neighborhood can be a fantastic investment. There are some pitfalls to avoid, which can cost a homeowner quite a bit of money because of no return on investment. It's better to focus on what to do and stay the course.

1. Raise the Roof

Older homes typically have 8 foot ceilings, and it's one of the first characteristics that buyers notice. It's relatively inexpensive, when you compare your return on investment, to remove the ceilings of your older home and sheetrock over your new, vaulted ceiling, at least in the living room. It's amazing how much larger and lighter your home will feel.

2. Knock Down Walls

Literally, knock down as many walls as you can and still retain the integrity of the home, and the NECESSARY separation of rooms. If you compare older homes to newer homes, you'll notice that older homes are typically "choppy" while newer homes feel "open and flow well." This is due to "line of sight." Newer homes opt for less separation in rooms. You can create this same feeling by demolishing a half-wall that separates your kitchen from the living room or knocking down the wall between the living room and dining room to create one grand room. It's amazing the difference it makes.

3. Overhaul Your Kitchen and/or Master Bathroom

These are the two rooms in the house that you can ALMOST go overboard and still get your money back when you sell the home. Refinish or replace the cabinetry, put in new tile and sinks - even install a new, stand-up shower! When (or if) you put your home on the market, you should see a GREAT return on investment.

4. Add a Master Bathroom

The 1-Bathroom houses from the 1970s and earlier are now obsolete. Americans have decided that we like a private bathroom for ourselves and another bathroom for our guests and children. While 90% of the house additions are bad ideas because they don't flow well or create poorly usable space, a master bathroom addition is a fantastic way to add more square footage, and more value to your home. Make SURE that your builder ties in the new slab to the old, and make sure that the addition is done properly. A poorly designed or executed addition never adds value - most buyers immediately imagine demolishing the work.

5. Paint

It's fairly obvious, but painting your home modern, neutral colors makes a HUGE difference in the appearance of the home. And when you factor in the cost it would be a HUGE mistake to forego painting your home when you decide it's time to modernize it. If you're planning on staying in the home for some time, paint it whatever colors you wish, but plan on repainting right before it's time to put it up for sale. If you plan on updating your home in order to sell it, go with neutral colors so that it will appeal to the widest audience.

6. Put in Wood Floors

You won't ALWAYS get your money out of installing wood floors. If you're in a great area, and it's time to replace the floors, look at the cost difference between tile, pergo, and wood. If you choose tile, make sure it's not cheap tile. If the cost difference between wood and your other options is negligible, then go with wood - it appeals to the most buyers.

God is good!

More Incentives for First Time Home Buyers
Low interest rates and tax write-offs help more consumers get into their first home

The government actually wants you to own a home, and therefore offers excellent incentives to help families and individuals afford their first home. Depending on your credit status and income level, you can qualify for no money down and 100 percent financing.

One more good incentive to home ownership over renting - the tax write-offs. According to a January 2007 article in kiplinger.com, “For most people, the biggest tax break from owning a home comes from deducting mortgage interest. You can deduct interest on up to $1 million of debt used to acquire your home.”

God is good!

Courtesy Lisa Schupbach...

The odds favored mortgage rates to move higher last week, and they did – but barely. The benchmark 30-year fixed-rate mortgage added two basis points to average 6.16%, the 15-year fixed-rate mortgage added one basis point to average 5.90%, and the five-year Treasury-indexed hybrid adjustable-rate mortgage added a tenth of a basis to average 5.91%. Frankly, larger increases were expected, considering recent data on consumer and producer prices.

The Federal Reserve certainly was a primary factor for the rate restraint. On Wednesday, the central bank held the federal-funds rate at 5.25%, which everyone expected. What wasn’t expected was the language in the accompanying report, where Fed officials said that recent economic indicators have been “mixed.” In short, the Fed became less hawkish on inflation, sparking a rallying in bond prices.

The news was more positive on housing, where construction starts of new homes rose 9% to a seasonally adjusted annual rate of 1.525 million units – a significant bounce-back from January when construction starts plunged 14.3%. Meanwhile, sales of previously owned homes unexpectedly rose 3.9 percent to 6.69 million units in February, posting the biggest monthly gain in almost three years.

Limiting The Marketing Exposure Of Your Property

The most obvious marketing tools everyone uses (Open Houses and classified ads) are pretty much ineffective. Successfully marketing of your home (getting the highest price, at the right time, and with no hassles and problems) requires much more.

Surprisingly, much less than 1 percent of homes are sold at an open house. Agents use open houses to attract buying prospects, not to sell your home. And advertising studies show that less than 3 percent of people purchased their home because they saw it in an ad.

That’s why the most competent Realtor will have a broad spectrum of marketing activities, emphasizing the specific strategies that will work best for YOUR particular property or area. In fact, we use an unprecedented Step-by-Step Marketing Plan in selling your home. If you like, we would be happy to share every one of those strategies with you at your convenience.

ONE MORE THING… Did you know that most home inquiry calls come in during business hours when agents are away from their offices? That’s why if we're not in the office, we have a highly trained staff of experienced assistants who can take those calls, and respond immediately.

This way, your home is NEVER put “On Hold” or a showing is delayed for a single minute when a hot inquiry surfaces.

God is good!

Every seller wants to realize as much money as possible when selling their home. The natural inclination is to price the home high, thinking you can always come down in the future.

But a listing price that is too high frequently nets the seller LESS money than an original price at market value. Why is this? Because people looking for homes in your price range will reject your home in favor of other homes in a reasonable price range.

And here’s the real clincher: Agents who would readily bring buyers through your home will automatically cross it off their showing schedule because it’s priced too high. They’re only motivated to show homes with the highest probability of selling. Agents simply will NOT show overpriced homes because they work by commission. They know market values because it’s their job to know. And they don’t want to waste their time.

So you price your home high, thinking you can come down. Problem is, the agent and buyer community doesn’t look at it that way. They see it as an overpriced home. After a few months go by, 8 or 10 open houses, signs…and not a nibble. So you decide to lower your price again. But it’s too late…your home has already been “branded”. So you reduce your home a little more. And little happens.

Finally, in order to attract attention back to your home, you’ve reduced your home price more than you ever thought you would, and you’re now netting much less than if you had priced it correctly in the beginning. And think about this: the money you lost is not just the lower sales price, but all the extra interest you paid on your mortgage…all the extra property taxes and other carrying costs that accrue while your home is waiting to sell. I’ve seen it happen time and again!

Real Estate Fact: The Seller Is Solely Responsible For

How Much, And How Quickly Their Home Sells!

Overpricing almost always increases time to sell, and adds to your carrying costs. That’s why we provide a complete, no obligation evaluation of your home. I call it our “Maximum Home Value Audit.”

Unlike many agents who will give you an inflated value just to seduce you to give them your listing, I’ll give you a real world home value analysis. Based on verifiable facts and figures. I’ll also physically inspect your home to identify those areas where spending small amounts of money can yield many times return in sales price.

I’ll be straight with you, and tell you precisely why it’s worth what it’s worth. I’ll also show you how to net more money in your home sale.

Once you understand these important issues, you’ll know how to price and sell your home for the fastest, most profitable sale. Also, with this information, you’ll never pay too much for any home you buy for the rest of your life.

God is good!

Failing to DRESS Your Property For Sale

Buyers look for HOMES, not houses. They buy homes which they FEEL they would like to live in. One of the major factors in getting your home to sell quickly is very simple: MAKE IT FEEL LIKE “HOME.”

Most buyers select their home based on EMOTIONS. Once their decision is made to buy, they justify their purchase with LOGICAL reasons: facts and features. So, it’s most important to make your home appeal to all senses. Your property is NOT the only home the buyers will see. You are competing with other homes in the market, and some of them have been professionally decorated.

The Way You Live In A Home, And The Way Your SELL A Home

Are TWO Very Different Things

When you’re showcasing your home for sale, it’s going to look very different from the way it looks when you’re living there. Here are a few tips for showcasing your home for sale:

First impressions set the tone for a buyer visit, and they’re LASTING! Approach your home in your car like any buyer would. Examine the outside as you’re approaching. How does it look? Are shrubs away from the home? Oil in the driveway? How does the grass and landscaping look? Cluttered looks detract from the architecture of the home. A clean, polished landscape says your home is valuable and well maintained!

Take a look at your actual home. Is the paint fading or chipping? Is the color outdated or impersonal? How does the roof look? As you drive up to or away from your home, what do you see first?

Now go inside just like a buyer would. You want to be aware of 4 senses: smell, touch, sight, and hearing. Go through room by room and test all 4 senses. Check flooring and carpet for stains and odors.

Most importantly: Pack away all appliances, get rid of excess furniture, put away useless dishes – and make your home neat and orderly. If you’ve ever visited a model home, you’ll notice it’s clean and uncluttered. You have to move anyway, so you might as well pack early, and make your home more saleable. Go to the garage and make sure it’s neat.

Hire someone to professionally clean your home. Top to bottom! Cleaning and cosmetic fix-ups, especially in the Kitchen, bathrooms, and master bedroom can many times yield you up to $10 in extra sales price for every $1 you invest.

Pets should be out of sight (and smell!). Get rid of pet odors for showings. Remember the 4 senses. Also, some people are uneasy around pets, and they may distract attention from the features of your home.

Pay particular attention to lighting. During the day, open all your blinds and curtains. If it’s cloudy out, turn on all lights for showings. At dusk, leave your front drapes open and turn on all the lamps and lights.

At night, do the same, but close your blinds and curtains. When showing your home, turn off all appliances, television, radio, and anything that will distract attention from your home. You might want to play a little light music to enhance the emotional experience for your buyer.

God is good!

When you're buying a home it is important to get a home inspection.  This inspection can reveal things you can't see when you're touring a home.  Even if you were to crawl around in the crawlspace under the house, or tiptoe around in the attic on the rafters, you might not know what you were seeing.

That's why we recommend a home inspection to all of our clients.  Inspections sometimes show that there are no problems with the home.  Wouldn't that give you peace of mind?

A real estate transaction is time sensitive.  That's why we prefer working with inspectors that use computer generated reports.  A comprehensive report clearly rates all of the major elements of a house and provides home buyers with explanatory comments written in laymen's language.

An inspection company that uses computer generated reports can eliminate the waiting for the report to arrive by mail, no inconsistencies in the written report and best of all, the purchase decision is not delayed.  Our favorite inspections arrive by email.  A copy for you and a copy for us.  Color photos of any issues found are powerful tools. They help you know what the problem looks like, and we can send copies to the sellers so they'll know what we're talking about too.

Talk to you soon.

God is good!

(excerpted from Mortgage Matters, courtesy Lisa Schupbach)

"Mortgage rates dropped last week – across both duration and types. Indeed, rates are now residing at the lowest levels of this nascent year, with the benchmark 30-year fixed mortgage averaging 6.14%, the 15-year fixed-rate mortgage averaging 5.86%, and the five-year Treasury-indexed hybrid adjustable-rate mortgage averaging 5.90%.

The drop in rates was something of a head scratcher, considering the major economic releases favored a rise over a fall. Productivity rose at a seasonally adjusted annual rate of 1.6% in the 2006 fourth quarter, down from a previous estimate of 3%. More startling was the growth in unit labor costs, which was revised to 6.6% growth in the fourth quarter compared to a previous estimate of 1.7%.

Meanwhile, the jobless rate declined to 4.5%, approaching a five-year low, while workers’ average hourly wages rose six cents, or 0.4%, after rising 0.2% the previous month. Economists had expected a 0.3% increase in hourly wages."

What does all this mean?  It means buyers can get more for their money since a lower interest rate means a lower monthly payment.  If a buyer can afford $800 a month, then $800 a month buys more home with lower interest rates.  It also means that sellers with slightly higher priced homes should have a larger buyer base to market to.

God is good!

Randy

It was the worst of times, it was the best of times.  Last month, for the same price, you could buy 51 homes like the one on the left, or one home like the one on the right.

On the left you see the house that has the dubious honor of being the lowest price home to sell in February 2007.  A 2 bedroom, 1 bath home just one block from where I lived while in school grades 5 through 12.  With just under 800 square feet of living space, built in 1920, this home went for $25,000, or just under $32 per square foot.

On the right you see the house that was the highest price home to sell in February 2007.  A 3 bedroom, 3.5 bath home that is on the golf course where the Nationwide tour stops in Springfield each year.  With over 8,200 square feet of living space, built in 2001, this home went for over $1.2 million, or just over $157 per square foot.

For most of us, our budget falls somewhere in between these two extremes.  Regardless of your budget, we can help you find just the right home!

God is good!

We have renamed our blog!  It's now called "Real Estate Rapture".  We love real estate, so the name makes sense on that level.  We also love thinking of the day we hear the trumpet call, so it makes sense on that level too!

If you've got questions, we can find answers!  We might even know them without doing any research.

Things you might want to know:

• How much is your home worth?
• What did the house down the street sell for?
• When a home in your neighborhood hits the market.
• What are the taxes on a home?
• What do you need to do to make your house ready to sell?
• What the prices of homes are doing?
• What's the interest rate today?
• How do you buy a home?
• Do we know any lenders?

The list is endless.  Ask, we'll answer!

God is good!

All the news you may have heard about the housing bubble and its demise can't find root hear in the Springfield, MO area.

With the stable economy and employment base we have here, the ups and downs of the housing market that network news talks about happening in California, Florida, and Arizona are not felt here.

With Winter drawing to a close we are experiencing a real Spring in our market outlook.

It's still a great time to buy since several of the homes have been on the market a bit longer than the sellers would have expected, but it is a great time to sell your home because most like to relocate during warmer weather and when the kids are out of school.

Talk to you soon!

God is good!