Unusual Fall 2020 Real Estate Activity

St. Louis and St. Charles County area real estate in fall 2020 has been as unusual as, well most of 2020. Real estate this autumn has been unusually active. In fact some real estate agents are referring to this fall as second spring. Herein we’ll discuss some of the reasons why real estate this fall has been so unusual.

The Pandemic

The Covid-19 virus has kept many people closer to home for longer and more often than previously. Folks are now working from home, going to school at home and moving many in-person events online. This has created more time to look closely at one’s living situation and decide if it is the best fit. Also, some people are moving from more concentrated, populous cities to our area. 

 

Demand Versus Inventory

After a slow spring of quarantines, the busy summer market barely slowed down for fall. With so many buyers wanting to move to better home situations and some sellers unsure about making any changes at all, there has been a higher demand for homes for sale than there have been homeowners listing their homes. This is causing a lower inventory of homes for sale along with rising home values as multiple offers are being made on well-maintained, market-value homes. This doesn’t mean there aren’t homes for sale, it just means that homebuyers may have to look a little longer or at different options to buy a home.  It also means that buyers need to be prepared and ready to move quickly if the perfect home comes on the market.

 

Low Mortgage Rates

At time of writing this, the 30 year conventional mortgage rate sits around 2.5% and the 15 year conventional mortgage rate sits around 2%. These low rates mean that you can get a lot more home for you money than you could a few years ago. And for those who aren’t moving, it’s a great time to refinance.  These rates are historically low and when they are gone it is hard to imagine when they will return.  

 

Increased New Construction Activity is Helping

We help several quality local home builders market their homes and we know the new construction home market very well. We’ve been able to find solutions in the new construction market for many homebuyers. While builders have been doing a great job constructing quality new homes, they are feeling the pressure to keep up with the demand.  New construction should always be considered when searching for a new home.  It affords buyers to be the first owner, select finishes specific to their tastes, select options specific to their needs and to enjoy the benefits of an environmentally friendly and energy efficient home.

- Options for Buying New Construction -

Despite the unusual fall 2020 real estate market we continue to assist homebuyers and sellers to face, understand and prepare for these unusual times every single day.  Despite the challenges, business for The Boehmer Team is up 28% from 2019 and going strong.  If you are thinking of buying a home, building a home, or selling your current home, contact The Boehmer Team. Let us implement decades of combined experience to answer your questions, find solutions for your needs and provide full service as we do to all of our dedicated clients.

 

The Increasing Importance of The Home Office

For St. Louis, St. Charles County and pretty much everywhere, the home office has become a much more important part of home. Not only did the recent COVID-19 quarantines keep many working at home, home based businesses, Internet jobs and other work–from-home jobs are more popular than ever. In real estate that means if you are selling a home, a home office is a great selling point that adds value to the home.

What people want in a home office:

Privacy

People are looking for an area that offers privacy, especially since there are often two people working from the home, children, or guests present in the home. Phone or computer meetings may require you to talk louder than normal, so having a door to shut or an office in the lower level offers maximum privacy.  Since more people are working from home on a regular basis, it may be that the work being done may be more confidential in nature so out-of-sight storage is critical.

Function

Function has become more important than the past when a home office was often about looks. Function includes a workstation or desk and chair but also includes the ability to access the home Wi-Fi connection. You’ll get bonus points for having a nice place to setup a camera to point at oneself for video conferencing. 

Outlets

Computers, phones and printers need to be plugged in, so having sufficient electrical outlets is a necessity. If adding a home office to a room without adequate outlets, be prepared to use an extension cord and surge protector (taped down and/or hidden by a floor runner rug). 

Light

While some home workers prefer natural light, others prefer limited light. Both can be achieved if the home office has or is near a window. Add blinds, shades or curtains to control natural light levels and a lamp for those who prefer limited or added light to accommodate your home office needs when both on and off the computer.

Storage

Hidden storage opportunities add value to a home office. Did you know a tidy workspace is supposed to help keep a clearer mind? Whether that’s true or not, it’s important to have places to put away important papers and other office items.

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If you are currently preparing a home to sell, it’s a good idea to have a home office or workspace setup to fulfill the needs of the many at-home workers. Be sure it includes the items above to make it as desirable as possible. If you are currently looking to buy a home with more office space, contact The Boehmer Team. Our experienced Buyer Specialists may already know of a property that might fulfill your needs or can help you find the perfect home for you.

15 Simple Ways to Boost Your Home’s Curb Appeal

St. Louis and St. Charles County homeowners are spending more time in and around the home than ever before due to the coronavirus. Not wanting to be stuck inside, many are taking advantage of their time at home by going outside to make improvements to the exterior of their home. These exterior improvements can really boost a home’s curb appeal. So if you are thinking of spending some time improving your home’s exterior and landscaping, here are some simple ways to do it.

Maintain Your Lawn

You don’t have to spend a lot of money for a good looking lawn. Make sure it is kept trimmed, attend to any bald spots and keep it watered. For more advanced tips on lawn maintenance, click here. 

Trim Your Shrubs

It’s spring and plants are growing fast, so it is a great time to trim shrubs and pull any weeds around them.

Freshen Your Mulch

Mulch is a natural material that breaks down with time. Freshen it up by adding more mulch around the base of your landscaping to keep weeds at bay and give the landscaping a well-kept look.

Use Colorful Planters

Colorful planters can be found at local hardware stores on online. You could even paint some old planters to transform them and add color to the exterior of your home.

Add Pops of Color 

In additions to colorful planters, colorful accents can be implemented throughout the exterior areas of your home with flowers, a freshly painted front door, or pillows on benches.

Power Wash Your Home, Deck, Patio, and Concrete

It’s amazing the difference power washing can make to blast old dirt and debris from multiple areas of your home’s exterior. If you don’t own one, you can buy one, borrow one, or even hire a contractor to power wash for you.

Replace Old Porch and Coach Lights

Check your home’s exterior lighting. Does it need to be cleaned, fixed or replaced? There are great options for buying lighting at local hardware stores or online.

Add Porch Seating if Possible

Wanting to spend more time outside your home creates the need for outdoor seating. There are many ways to get creative with outdoor seating. Choose something that compliments your home that will withstand the elements.

Make the Entry Welcoming

What is the vibe of the area in front of your front door? Is it welcoming? A thorough cleaning of the area and a few accents like a wreath or welcome sign can make a big difference.

Update Shutters

We rarely seem to think about shutters, but their appearance affects the overall look of your home. Check the condition of your shutters and make any repairs. If the paint is worn, give them a fresh coat. Or, you can even buy and install new shutters.

Freshly Paint or Replace the Front Door

The front door is a focal point for your home. Check it for dents, scratches or anything that can be repaired. Give it a fresh coat of paint or consider replacing.

Freshen up the Mailbox 

The mailbox is often exposed to the elements and thus can age quickly. Check it for any needed maintenance, give it a fresh coat of paint or new numbers or consider a new mailbox.

Wash Your Windows

You’ll be surprised the difference that washing windows can make. Years of dirt and grime build up slowly that it is hardly noticeable. Washing your windows will make the house sparkle outside and a little brighter inside.

Add Style to You Address Numbers

Unique address numbers are a fun way to add style to your home’s exterior. You can find them at local hardware stores or shop for great options online.

Get a Great Doormat

The last step someone takes before they enter your home is on the doormat. Why not make it a good one? There are lots of fun options to be found at local stores and online. Pick one that is both good looking and functional.

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Improving your home’s curb appeal actually adds value to your home. If you are thinking of listing the home for sale in the near future, you are doing yourself a great service by upgrading it’s curb appeal. Or if your time in quarantine has shown you all the reasons you would like to be in a different home, contact The Boehmer Team to help you sell your current one and find a new one.

 

Understanding Real Estate Assessments

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It’s that time again - real estate assessments are here! St. Louis and St. Charles County property owners have recently received their bi-yearly real estate assessment.  The good part? Property values are up. That means homes are worth more and likely have more equity. The not-so-good part? Higher property values means your associated real estate assessments are higher too.

The assessment itself is not a bill. The Assessor doesn’t create value and set tax rates, they measure market values and create assessments. If sales go up in an area, market values and assessments will increase. It’s political subdivisions that determine the tax rate. These tax jurisdictions usually do this by dividing the total value of the properties in their boundaries by their budgetary needs. By the end of October these numbers are sent to the Collector of Revenue to calculate and issue property tax bills. 

Property tax bills are usually figured into and paid with your mortgage payments. Those who have already paid off their home will want to be sure to budget for yearly property taxes. The property tax revenue pays for our towns to have quality roads, schools, and other public services. The real estate assessment process helps ensure the value of your home reflects current economic conditions and that property taxes are distributed fairly.

“There is a lot of information that is used to prepare the assessments,” says St. Charles County Assessor Scott Shipman. “Starting in July the year prior, we gather data concerning all facets of real estate value. This mass appraisal process includes measurements of all buildings, land descriptions, building permits, market information, and land sales and depreciation studies. Appraisers also conduct exterior reviews of properties to observe any differences not listed in the property data. All this information is entered and managed in our database, and we conduct statistical analysis tests as a final step before market values and assessments are produced.”

Most towns encourage property owners to research and confirm assessment data by either going to the assessor’s office or viewing the assessment data online. (View St. Charles County assessments here.) Fortunately counties like ours are transparent in their process and are available to answer any questions about your assessment.

The Boehmer Team is here to help you understand all things involved with home ownership. Owning a home is a wonderful thing, especially when you understand assessments, property taxes and they way they directly benefit your community.  Need help buying or selling a St. Louis or St. Charles County area home? Contact us to setup a time to interview us to answer any questions and/or begin the process.

 *Charles County Assessor Scott Shipman quote pulled from St. Charles County Connection May 2019 Newsletter.

Do Open Houses Have Value?

Home sellers listing a St. Louis or St. Charles County home for sale are often most interested in how to best market the home. This is an area where Realtors can offer their experience, connections and marketing systems to get the home the attention it needs to sell in a busy marketplace. An important part of good home marketing plan is holding an open house so that potential buyers can physically tour the inside of the home. Open Houses also allow a non-pressuring opportunity to view a home at your own pace. 

Of course there are ways to see the inside of a home without holding an open house. We take great listing photos and create video tours. New technology even offers 3-D models of homes. But even after implementing all of these strategies, homebuyers ultimately want to tour a property for themselves to take in the details that pictures don’t impart. For example, photos can be very forgiving as lenses and lighting can conceal dirt, defects, broken window seals and smells. Often times, a home has an entirely different feel from the photos used to market the home. 

It’s true that individual showing appointments allow buyers to tour a home for sale with their buyer’s agent. But this means that at any time, your home will need to be available and ready to be toured by buyers. Holding an open house creates a specific time that homeowners can prepare for where multiple potential buyers can tour the property.

Holding an open house also creates more marketing opportunities. In addition to marketing your home for sale, your Realtor can market the open house via special signage, print marketing, Realtor network marketing, email marketing, open house listings, and open house searches on hundreds of websites.

Visitors attending an open house are required to sign-in with their name and contact information. This enables your Realtor to follow up with potential buyers that attended the open house. They can answer any additional questions open house attendees may have as well as alert them to any changes to the status of the listing whether it is upgrades, price changes or other items.

So the answer to, “do open houses have value?” is, “yes!”  If you interview an agent that is not interested in holding open houses, more than likely they do not want to hold open houses.  At The Boehmer Team, we find open houses to be extremely beneficial and often result in a sale.  Check out the great tips we’ve put together to assist you including: preparing a home to sell and seller etiquette for open houses. Also, you can search our blog for even more helpful information to help you sell a home for the most profit.

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If you are considering listing a St. Louis or St. Charles County area home for sale, contact The Boehmer Team. We expertly implement open houses as part of our maximum exposure home marketing plan. You can rely on our 55+ years of real estate experience to deliver a successful home sale. Contact us to set up a time to interview us about how we can help you sell your home for the most value.

How To Get Started Buying New Construction

Updated 10/27/2019 Due to Popular Demand

Buying a newly constructed home in the St. Louis or St. Charles County areas can be an exciting adventure. New house smell? Check.  Custom to your design and function needs? Check.  The latest in home building technologies? Check.  What about where to begin? Or which home builder to trust? Um…  This is why contacting a Realtor with experience in new construction homes is the first step of the journey to owning a new home. We help new homebuyers understand the process and check off every single box for the project. 

When you contact a Realtor or home builder about buying new construction the conversation will likely begin with a variety of questions about your needs. So before you even make that first call, determine your answers to the following questions.

Buying New Construction? Start By Answering These Questions

What is your budget?
Knowing how much home you can afford will help you choose the best new construction home for you. To help you determine budget, you can use our handy mortgage calculator to calculate approximate monthly payments. Also, you’ll want to reach out to a mortgage professional to give you the best mortgage rates based on your credit score. Keep in mind if you are purchasing a property that includes a monthly fee, that fee must be considered in the amount of home you qualify to buy.

Need a good mortgage professional? Contact The Boehmer Team and we’ll give you some names of trusted local professionals.

Do you have a home to sell in order to help pay for a new home?
Selling a current home can be a big part of paying for a new home. If you have a home to sell, tell your Realtor so that they can create a competitive market analysis for your home to determine its current market value. A qualified Realtor can tell you what to expect on the sale price of your home, how long it has taken to sell comparable homes and what concessions may have been made to sell comparable homes. This will give you an idea of how much you will have toward your new home.

Do you have a time frame for when you must be moved into your new home?
If you have a deadline by which you must be moved into your new home, it is important to tell your Realtor. This will help determine whether you have the time to completely build a home from scratch or if you would be better off looking at other great options for buying new construction like buying a home currently being constructed or buying a builder inventory home.

Where do you want your new home to be located?
Determine the area where you want to live. Some good things to consider are school district and commute time. If you already have property where you want your new home built this may change your options for which builders you can use. Some builders create custom homes at any location, while others work within communities that they are building.

How involved do you want to be in the home design process?
The amount that you customize a home will affect your time frame and price. While builders allow choice of materials for the interior and exterior of a home, some materials cost more than others so these choices will affect your overall price. Design choices may also affect price as well as move-in timelines as it takes time to choose and order materials.

What are your must-have features and amenities?
Know the number of bedrooms, bathrooms and garage spaces you require. Think of the other amenities that you’ve been dreaming of too, like a fireplace, main floor laundry, additional separate office space, deck, mudroom with dog wash or something else.  Make a list and be prepared to give it to your Realtor.

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Do you have your answers? Or do you need help determining the answers to these questions? Contact The Boehmer Team for expert assistance with every detail when buying new construction. Want to learn more about us? Check out our Meet The Team page or some of our client testimonials from clients who have previously worked with The Boehmer Team.

Tax Perks of Home Improvements

Whether we like it or not taxes have been and will continue to be a factor in our income and purchasing decisions. For St. Louis and St. Charles County, Missouri homeowners, taxes additionally have implications on our decisions to make home improvements and remodel our homes.  How much impact? We’ll explain.

First you need to know the difference between a home repair and a home improvement. The IRS defines a repair as anything that's necessary to keep your home in good condition but doesn't necessarily add to its value. An improvement is anything that prolongs the useful life of your home and has the potential to increase its resale value. Your project needs to be considered a home improvement in order to take advantage of available tax perks. Be sure to consult your trusted tax advisor for tax advice regarding a specific project as not all home improvements are tax deductible.

Here are some of the home improvements that do have tax perks:

Solar Upgrades

Pictured: solar panels and solar water heater.

Solar water heaters and solar panels can still be claimed for a tax credit through 2021. The tax credit is currently 30% and includes the cost of installation. In 2020 the credit decreases to 26% and in 2021 it will be 22%. So if you are thinking of making solar upgrades it is best to do so sooner to claim a higher tax credit for the improvement.*

Modifications for Medical Necessity

Home improvements that are made to accommodate a medical disability may be deducted on your taxes. Some of the items covered include: adding handrails or support bars, widening doorways, adding a wheelchair ramp, and installing lifts. However to receive the tax perk for these upgrades you must itemize deductions instead of claiming the standard deduction. Talk to your tax advisor to determine if modifications made for medical necessity in your home are eligible for tax perks or refer to IRS Publication 502.

Selling a Home

Home improvements can decrease that amount of capital gains taxes when you sell a home. Capital gains are a type of tax levied on capital assets including investments and real estate when those investments are realized or sold. (Note: this doesn’t affect everyone. Individuals can exclude up to $250,000 of capital gains from the sale of their primary residence or $500,000 for a married couple). Increasing your adjusted cost basis, what you paid for the home plus costs incurred including home improvements, can reduce this tax. Be sure to keep receipts and paperwork from home improvements you make to increase your adjusted cost basis when you're ready to sell. As with the above, be sure to consult your tax advisor regarding capital gains taxes.

When you are ready to sell a St.Louis or St. Charles County area home, contact The Boehmer Team. We will help you achieve the maximum value for your property. We have over 55+ years of combined experience helping homebuyers and sellers. We’ve seen thousands of different situations and helped negotiate for our clients’ best benefit. Give us call or check out our website for more information about all that we do.

* Visit energystar.gov for requirements and additional information on tax credits for solar upgrades.

* Information herein is not legal tax advice. Please consult your tax advisor for specific tax information.

The Home Buying Process

Purchasing a home in St. Louis or St. Charles County, Missouri may seem daunting. However, knowing what steps to take and having a great real estate team to assist you makes the process smoother, easier and can even make home buying a good experience. To make things easier we’ve put together a step-by-step guide to the home buying process.

1. Interview an agent.
A great place to start the home buying process is to find a reputable REALTOR or real estate team to assist you with your home purchase. One reason starting here is important is that an experienced REALTOR will be able to help you with all of the other steps in this process. This includes recommending other experienced servicers in the real estate industry such as lenders, inspectors, title companies and more. Not sure how to determine who is a good agent? Check out our article Interview Questions for Real Estate Agents.

2. Find a reputable lender and get pre-approved for a home loan.
Ask your REALTOR which mortgage loan officers that they have the best experiences working with. Also, ask any friends or family who have recently purchased a home about their experiences working with their lender. Then interview each lender about how they work, what their rates are (based on credit score) and any other vetting questions. Finally, choose the best one to meet your needs. This important part of the process can save you thousands of dollars, so be sure to check your options.

3. Determine the must-have features of your next home.
Do you require a 2-car garage, a fenced yard, main-floor laundry to reduce wear and tear on sore knees? Create a must-have list to ensure that none of these items are overlooked during your home search. Not sure what must-have items you need? Try our handy worksheet to help you determine the items you must have in order to purchase a home.

4. Begin your home search.
Now that you are clear on exactly what your next home must have, use these requirements when searching for a home. Most home search portals, like the one at www.TheBoehmerTeam.com, allow you to choose these features when searching online. Be sure to choose your must-have features or you could find yourself looking at homes that aren’t a good fit for your lifestyle. Also, rely on your agent! REALTORS often know of homes that are about to hit the market or that are exempt from the local multiple listing service that will match your needs. This is another great advantage to getting the help of a REALTOR early in the home buying process.

Did you know that our online home search
is better than Zillow? Click here to lean more.

5. View homes for sale in person.
Seeing a home online versus seeing it in person are two completely different things. Ask your REALTOR to make appointments for you to view the homes you are interested in, in-person. NOTE: Don’t just call the number on the sign. The number on the sign in front of a home goes to the listing agent. The listing agent’s job is to look out for the interests of the sellers and make them the most money possible. This is just one reason why it is important to work with a buyer’s agent to represent your interests.

6. Make an offer.
Making an offer on a home can be a complicated decision. What price should you offer? Are there any competing offers that you are up against? This is a great time to lean on an experienced REATLOR. REALTORS are well versed in the legal documents used in home sale transactions. They can help you determine the best strategy for your offer as well as put together the Purchase and Sale Agreement contract. 

7. Get inspections completed.
Once your contract for a home has been accepted, it is time to more thoroughly vet the home for any issues. This is the time to bring in an inspector to take a closer look at the home’s major systems including heating, cooling, plumbing and electrical. Also major parts of the home’s structure will be inspected including the roof and foundation. If an inspector finds signs of insect presence or damage this is the opportunity to bring in termite inspectors. Another inspection you might choose to do in the St. Louis area is a radon inspection as certain parts of the city have been found to have radon.

8. Negotiate for your best possible outcome.
Once you know the results of your inspections you’ll be able to negotiate for any needed repairs based on the findings in the inspection report. This is another great time to rely on an experienced REALTOR who knows which items people ask for and receive most and how to best negotiate for these things.

9. Finalize financing, title and escrow.
Despite pre-approval, there are a few more steps to completing the mortgage loan process. Check out the process here. Homebuyers will also need to review the record of title on the home and find any discrepancies. A good title company will make sure that the title is free and clear of any leans. Finally, the escrow process ensures that all parts of the contract are complete and should be monitored by your REALTOR. 

10. The home closing.
At closing all documents are signed by both the buyers and sellers. Both parties will pay any settlement fees and the documents will be officially recorded. (Don’t worry; any fees will be outlined to you in a settlement statement that you will receive prior to closing.) At the end of closing, you’ll get the keys to your new home!

So who wants to go home shopping? The Boehmer Team offers many tools and all the advice you need to assist with the process. If you are thinking of buying a home in St. Louis or St. Charles County, Missouri, interview The Boehmer Team. You’ll get to know us better, can compare us to other local REALTORS and we can show you in person how we help create positive home buying experiences. Contact us today.