How to Survive A Competitive Sellers Market

St. Louis and St. Charles County area homebuyers: we hear you. It can be a challenge right now if you are looking to purchase the perfect home. Chances are you’ve found it - a few times - only to find out there is already a contract and backup contract on the home. So here is some great advice to help you survive the current competitive sellers market.

Start Early

As soon as you decide you are going to purchase a home get started with the process. How do you start?  By interviewing or contacting a qualified, full service Real Estate Agent that knows your desired area.  Select a full time, professional Realtor that has the resources and expertise to find the right home for you in this competitive market.  Ask your Realtor this question, “What resources would you use to best find me a home, possibly before it hits the market, and what strategies would you use to help me secure that home?”  Don’t be afraid to ask for a testimonial from a recent buyer client.

Get Pre-Qualified for a Home Loan

Your Realtor will have excellent Lenders that will help evaluate your buying position. Without knowing how much you can afford, you can’t confidently jump on the perfect home as soon as you find it. If you aren’t paying cash contact a reputable loan officer to help you determine how much you can afford and get you pre-qualified.   
It is important that you get pre-qualified for a home loan, as it is expected to be submitted with your offer to purchase. This process will qualify you for a home loan and help you determine the amount you can spend on a home. It also shows home sellers that you are serious about purchasing their home, which is expected in all home-buying situations.

Need help finding an experienced mortgage loan officer?
Contact The Boehmer Team for a list of recommendations.

Determine Your Must-Haves

What are the items that you cannot live without? Make a list of the things you must have in your next home. Keep in mind that the longer the list, the longer your home search could be in this current competitive market. If you still can’t find the perfect home, consider an almost perfect home that is under budget. This way you can make it into the perfect home with the money that you didn’t spend.

Search For Your Perfect Home

Now that you’ve figured out your finances, determined your must-haves and connected with an experienced real estate agent, you’re ready to begin searching for homes. Your real estate agent will be assisting you with this process by searching through their various contacts and systems. One suggestion, consult a real estate professional regarding the most accurate and updated resources for your home search. Many national home search websites, such as Zillow,  only update their listing data every few days. In a competitive market many of the homes that appear on those search results will already have a contract on them by the time you find them. Instead, try www.TheBoehmerTeam.com. Our website gets multiple listing data updates hourly and has more accurate local information.

The Boehmer Team Can Help

Are you thinking of purchasing a home in the St. Louis or St. Charles County area of Missouri? The Boehmer Team can help. We have over 55+ years of combined experience in real estate. We’ve seen buyers markets and sellers markets and made the best of both. Contact us if you have any questions about real estate or help buying or selling a property.  In addition, we have extensive experience representing buyers purchasing new home construction and consider ourselves experts in the field of new home construction. 

The Pros and Cons of Pool Properties

 

Once Memorial Day arrives to the St. Louis area, the public pools open for the season. But if you own St. Louisor St. Charles County area real estate with a pool, you can open your pool whenever you want. However pool homes come with both pros and cons.

The Pros of Owning a Property with a Pool

- Pools are aesthetically pleasing and create a more beautiful landscape in your yard.

- Pool parties are a great way to entertain.

- Get exercise, relaxation and fun, all in your backyard with a pool.

- Eat and drink whatever you want by your own pool, whereas other pools may have restrictions.

- Pools allow you to enjoy the outdoors in the hot St. Louis summers.

- A home for sale with a pool is a big attraction for pool people.

The Cons of Owning Property with a Pool

- There are costs associated with maintaining a pool.

- Pools take some time to maintain - unless you hire someone to maintain it.

- Pools can be a safety concern for small children or those who can’t swim.

- In Missouri you are required to have a fence around your pool for safety, so you my have to install fencing.

- You must keep homeowners insurance that covers the pool under “other structures” portion of the policy

- A home for sale with a pool is a turn off for non-pool people.

Pool Homes – Another Option

If you love a pool but are unsure of having your own pool at home, there is another option. Consider purchasing a home in a neighborhood that offers a community pool. This way you will have pool access without the maintenance.  However you will still have some costs associated through homeowner’s association fees.

Adding a Pool To Your Property

If you are adding a pool to your property there are a few things to keep in mind. First, check for any city or neighborhood restrictions for pools. Especially check any regulations for required fencing types or height. You may want to install a pool cover or alarm to keep unwanted pool guests out. Also, compare types of pools. Some homeowners are finding saltwater pools to be a great option that is more expensive in the beginning but less expensive over time.

Buying or Selling a Home with a Pool

Newly Constructed Villa Home For Sale in Wentzville with community pool.

The Boehmer Team has a page dedicated just to St. Louis and St. Charles County area pool properties. Check it out to see pool homes currently on the market. The Boehmer Team has worked with many homebuyers and sellers over the years that have purchased and sold pool homes. Put our expertise to work for you the next time you buy or sell a pool property.  

March of Dimes St. Louis March For Babies

Did you know that in the United States one in ten babies is born premature? Sadly some of them don’t survive and others carry on birth defects that affect the rest of their lives. But with the help of March of Dimes, we have seen the rates of premature birth decline as much as ten percent. Lower preterm birth rates help families and also help save our nation’s healthcare system millions in costs.

The March of Dimes, founded by Franklin D. Roosevelt in 1938, is a nonprofit organization that works to improve the health of mothers and babies.  The noble mission of the March of Dimes is to improve the health of babies by preventing birth defects, premature birth and infant mortality. The funds the March of Dimes raise assist community programs, advocates in Washington, supports medical research and educates families.

Our friends at Fischer & Frichtel take fun and philanthropy seriously. This year their construction team, office team and sales team are competing against each other to see who can raise the most money for the March of Dimes March for Babies. In addition their construction team built an adorable playhouse that looks like a tiny version of one of their beautifully constructed homes. This playhouse will be auctioned off with 100% of the proceeds going to the March of Dimes. Click here to learn about their raffle.

This year the March of Dimes is hosting its March for Babies 2 mile walk in Forest Park on Saturday, April 29th.  The Boehmer Team is looking forward to participating in the walk and would love to have you join us. You can also participate by making a donation here: http://www.marchforbabies.org/team/TheBoehmerTeam

The St. Louis region goal we hope to help the March for Babies reach is a whopping $650,000. So come on out, St. Louis, and join in this great cause that supports families and communities. To learn more about the St. Louis March of Babies event by the March of Dimes, click here.

                                                            

What To Know About Homeowner’s Associations

When looking at homes for sale in St. Louis and St. Charles County, Missouri you may notice “association fees” in the listing details. So what are these association fees? They are monthly or yearly dues to the homeowner’s association for the community where the home is located.

What is a homeowner’s association?

A homeowner’s association (HOA) is an organization within a planned community that creates and enforces rules for homeowners within the community. They are usually setup as 501(c)(4)organizations that collect dues to be distributed to maintain the community. If you purchase a home in the community, you automatically will be responsible for paying the association dues.

What does a homeowner’s association do?

Homeowner’s associations oversee and enforce a community’s covenants as well as assist in maintaining the quality of the community. This can include but is not limited to: maintaining common areas, sidewalks, streets, community clubhouse, community pool and playground equipment. They hire and distribute funds to the contractors that do the work. Also the association has to purchase and maintain insurance for community amenities covered by the HOA.

Are homeowner’s associations common?

According to the Foundation for Community Association Research, “the number of Americans living in HOAs is on the rise, growing from a mere 1% in 1970 to 1 in 4 today.” So they have become quite common as a way for communities to be maintained and keep home values at a premium.

How are homeowner’s association fees determined?

The board of directors of a homeowner’s association determines the amount of the fees. They do this by determining the projected annual expenses of the association and dividing by the number of homes.  Board members are usually homeowners from the community that volunteer and do not profit from HOA fees. In fact, they too will have to pay the HOA fees sometimes called assessments or maintenance fees.

How do I find out what a homeowner’s association covers for a community?

 

Each association has its own unique rules and policies. If you are planning to buy a home in a community that has a homeowner’s association, it’s important that you read the community’s covenants, conditions and restrictions (CC&Rs) and bylaws. If the listing agent doesn’t provide these with the listing documentation, be sure to request them so that you know before you buy.

Generally homeowner’s associations offer a benefit to those living in the community. Combined funds keep the community maintained, home values up and offer the option to have a swimming pool, tennis court or other benefits that an individual homeowner may not be able to afford and maintain on their own. The Boehmer Team has helped many homebuyers who found the home of their dreams in a community with a homeowner’s association. In addition we’ve helped many sellers living in HOA communities sell their homes. We know the in’s and out’s of HOA’s and are ready to help you with your real estate needs even if they involve a homeowner’s association.

Additional references:

https://www.irs.gov/charities-non-profits/other-non-profits/homeowners-associations

http://www.investopedia.com/terms/h/hoa.asp#ixzz4boYWk 

http://www.realtor.com/advice/buy/what-is-an-hoa/ 

How Mortgage Rates Affect Home Buying

Why should St. Louis and St. Charles County, Missouri area real estate agents, investors and buyers be concerned about mortgage interest rates? Because mortgage rates can largely impact what a home buyer can purchase.

While rising home prices can limit how much house a home buyer can purchase, mortgage rates also add to the total cost of a home purchase. Lenders add these rates when figuring the total amount they will let you borrow for a mortgage loan.  Higher costs of borrowing money means less of that money can be used toward the actual property.

A swift rise in mortgage rates may require current homebuyers to readjust their purchase plans. They may decide to save for a larger down payment, look for a less expensive home, choose an adjustable-rate mortgage with a lower starting interest rate or they may choose to exit the housing market until another time.

For those who aren’t already homeowners, mortgage rates could affect the tipping point at which renting or buying a home is more affordable. However in the St. Louis and St. Charles County areas of Missouri, purchasing a home can still be more affordable than renting when it comes to monthly mortgage payments versus monthly rent payments.

Mortgage rates are based on rates set by the Federal Reserve.  The Fed’s strategy to assist the nation post-recession was to keep rates very low. But this means the rates have nowhere to go but up. Economists expect an improving economy over the next several years, meaning rates are expected to steadily raise.

“With rising rates it might be best not to buy a home that is a financial stretch,” says Kelly Boehmer. “Now is the time to consider a home that is at or under budget.”

Despite rising mortgage rates, new home sales contracts went up by 3.7% in January. While existing home sales rose by 3.3% in January – the fastest pace since February 2007.

According to Linda Boehmer, "Ultimately it is other factors, like a strong economy, that have a bigger impact on house prices than changes in mortgage rates."

Check with your lender if you are concerned about how higher mortgage rates might affect you. Chances are the difference may only be $40-$75 month. If you need a referral for an experienced and trustworthy mortgage lender, contact The Boehmer Team for contact information on several reputable area lenders.

References:

How the Fed’s Interest Rate Increase Can Affect You


Higher mortgage rates scuttle some sales


How Recent Mortgage Rate Increases Affect Housing Affordability


Mortgage rates increased in January


Do rising rates trigger lower house prices?

How to Get the Best Mortgage Rate

When shopping for a mortgage loan for purchasing real estate in St. Louis or St. Charles County area of Missouri, there are several things you need to do to ensure you get the best mortgage rate possible.

1) Know and Improve Your Credit Score

Get a copy of your credit report and know your FICO score.  You can order a free credit report from credit reporting agencies experian.com, equifax.com, or transunion.com that will provide your FICO score. Once you know your number you can calculate your loan savings based on your credit score using the myfico.com loan savings calculator here.

When reviewing your credit report check for any discrepancies or anything unusual that needs attention. Look for mistakes such as accounts that are not yours. A study issued in 2012 by the FTC found that 1 in 5 people have errors on their credit report. When you find errors, contact the creditors by phone or mail to correct the error.

2) Compare Lenders

An online search can help you find and compare mortgage rates for different lenders. You’ll also want to check and compare the amounts of their closing costs. Ask friends and family what lenders they have worked with and their feelings about that lender. Or contact TheBoehmer Team for contact information on reputable area lenders that have successfully assisted clients in obtaining great mortgage loan products.

3) Compare Loan Types

Choose the right mortgage product based on your needs. Do you plan to stay in the home for many years? Or do you plan to sell or refinance in a few years? The answers to these questions will help you determine what is right for you. Loan types include: fixed-rate loans, adjustable-rate loans (ARMs), Federal Housing Administration loans (FHA), Veterans Administration loans (VA) and other low or no down payment loan products. For more in-depth information on choosing the right type of loan visit our page detailing the loan process.

4) Build Your Down Payment

The size of your down payment can affect the interest rate you pay, the type of loan products available for you and how much if any mortgage insurance you will need. In general, a larger down payment helps get you better mortgage rates and less expensive loan products. 

While putting twenty percent down on a home will allow you the greatest choice of loan products, there are currently mortgage loan programs in place that allow you to put as little as 3 percent down or even less. A conversation with your mortgage lender will help you determine how much you need to save to get the loan product that is best for you.

The Boehmer Team Helps Homebuyers Get Homes

The Boehmer Team has years of experience helping homebuyers find and purchase the home of their dreams. If you have questions, contact The Boehmer Team any time for expert advice. They can direct you to reputable local area lenders and loan officers or share more ways their clients have found the best lender to meet their mortgage needs. 

St. Louis Luxury Real Estate

This beautiful home is located off of Clayton Road in St. Louis.

The St. Louis metropolitan area has numerous luxury homes to choose from including both new and pre-owned luxury homes. Luxury homes are often defined by a price that is over $400,000. However, luxury homes are more than just a price tag.

This lovely home in O'Fallon, Mo includes inlaid wood floors and coffered ceilings.

Luxury homes usually include great architecture, high-end appliances and finishings, and beautiful interior design with designer paint colors. In addition to all these great features, luxury homes are often defined by a great location in sought after communities.  

You can have this view at your future home built by Fischer and Frichtel in Weldon Spring.

For most home builders luxury homes usually feature at least 3,000 square feet of living space. In addition to building quality homes with the newest standards, new home builders pay special attention to all finishings, from windows to doors, to faucets and cabinet pulls. Building a luxury home can be a truly exciting design experience.

This high-end kitchen is featured in a home by Bridgewater Communities.

[Did you know that The Boehmer Team has over 35+ years of combined experience helping families and individuals purchase brand new homes? Meet The Boehmer Team HERE.] 

For those looking for luxury real estate in the St. Louis area, or those who just want to dream about their future luxury home, we’ve created a webpage that features only currently-listed luxury real estate. This page features luxurious homes in St. Louis City, St. Louis County, St. Charles County, Jefferson County and Lincoln County in Missouri. 

This luxury custom home is in Eureka, MO.

Whether buying or selling luxury real estate, The Boehmer Team provides the best luxury home sales service in the area. Our team has over 55+ years of combined experience working with homebuyers and sellers including luxury homeowners. Is moving on your mind? Contact The Boehmer Team for assistance with your luxury real estate needs.