Getting sellers and buyers together for a happy ending: Current market value will determine a sale, not emotions

The real estate market can be very complex these days; but mix in emotions and the occasional ego, and it can be even more complicated. Enter your real estate agent, who will sort out the best approaches for both buyers and sellers.

For sellers, correct pricing is a must. A recent Zillow survey showed that homeowners who purchased their property in 2007 or later were overpricing their homes by an average of 14.1 percent, and homeowners who purchased between 2002 and 2006 were overpricing about 9.3 percent above market value.

The key here is market value. The market has changed drastically since 2002 and sellers should look at current market value, not the value when the home was purchased years ago. Buyers aren’t taking into consideration what you paid then, but what the house is worth right now.

Both sellers and buyers should review the comparable properties for sale that your agent will provide. These comparables offer a good snapshot of current values for homes similar to yours.

Overpricing a home is very counterproductive in this economy. Most likely, the property will sit on the market for a while. The longer the property languishes, even with subsequent price reductions, the less desirable it is. Follow your agent’s pricing strategy instead of your emotions for a quick sale.

Buyers, too, have high expectations, but for lower prices. With the buyer’s market in full swing, buyers are looking for a great bargain, to “make a steal.” Again, your agent’s comparables will guide you to a fair offer that is a good deal for you.

Some buyers are tempted to make a very low first bid. That’s called low-balling. Just like a seller pricing a property too high, an extremely low bid can be counterproductive. This can insult the seller and shut down any further negotiations. If you really want a property, take your agent’s advice on a reasonable offer and that will assure communication that can lead to a happy ending for both parties.

Condos offer an option for homeowners who want to downsize or aren’t interested in home maintenance

Just the thought of going outside in the Missouri heat and humidity to mow the lawn, or repair the fence, can seem like a daunting task. For people who are no longer enthralled with home maintenance or are ready to downsize, purchasing a condo is the logical choice.

When you buy a condominium, or condo, you are purchasing ownership in the whole building, not just your unit. You privately own your residence, but you also have ownership in the building and the common areas, including the grounds. In addition to the unit purchase price, you will also pay a monthly fee to help maintain those areas as well as a contingency fund for emergency repairs.

As you begin your search, get pre-approved with your mortgage lender and obtain a copy of your credit report. Doing these two things will speed your purchase and give you an advantage over potential condo buyers who are not prepared.

Just as each home is different, every condo complex is different too. To compare like properties, decide if you want a brand new building or an older one. Both old and new buildings have advantages and disadvantages; new condos may be more expensive up front, while older buildings may have more charm, have a cheaper listing price, but come with more maintenance.

We will help you determine which option fits your budget and provide you with comparable listings within your choice.

Just as you would investigate a new neighborhood, you should investigate your potential condo building. We recommend reading the agreement, or declaration, that outlines how the condominium operates and is governed. Do the rules and regulations allow you to have the lifestyle you want, how efficient is management and how big is the reserve fund for emergencies?

It’s also a good idea to read the homeowners’ association minutes for at least the last six months to understand how the association functions and what the most recent issues may be.
As you tour properties for sale, look at the general condition of the complex as well as the unit that interests you.

When you are looking to buy a home, we know there are many choices. A condo is a very viable option in the housing market. If you choose a condo, relax on your patio, and watch someone else mow the grass!

St. Charles Real Estate Market Watch - June 2011

MARKET WATCH

JUNE STATISTICS 2011

County	Active Listings	Under Contract	Sold in June	AVG Days on the Market	AVG Sales Price	AVG $ per sq. feet
ST CHARLES	3186 8 months of inventory	437	391	124	$175,217	$88.54
St Louis	7620 6.2 months of inventory	1256	1228	114	$210,213	$116.33
Jefferson	1959 8.9 months of inventory	293	219	170	$127,182	$75.75
Lincoln	420 8.75 months of inventory	49	48	149	$110,324	$65.98
Warren	429 13.4 months of inventory	26	32	138	$179,603	$98.95

Pets know when something is up. Make their moving experience as easy as possible.

When you arrive at your new home, set up a special, secure area for pets with their blankets, toys and beds, plus water and food. Check on them often as the furniture is brought in. You will alleviate many of your pet’s fears by being there with a hug, a pat and a pull toy.

Introduce your pets to their new home little by little. Cats can have a tendency to disappear in new situations (or whenever they feel like it). It’s no fun finding kitty at 2 a.m. stuck in the basement rafters. And for cats, make sure the litter box is readily available.

Dogs shouldn’t have the run of their new house either. Take them around, room by room, and allow plenty of time for sniffing. Watch for signs that it’s time to go outside for a while. Always walk your dog on a leash. Using a leash will help avoid territorial issues and provide the opportunity to meet the new neighbors.

Even though it may be a bit of a challenge, keep to your normal routine as much as possible. This will help re-establish life as it was, but in a new place.

Just don’t do that. Some over-the-top renovations won’t help sell your home or impress buyers.

Selling a home usually means some updating, possibly remodeling a few areas. Kitchens and bathroom renovations reap payback at closing time, but a word to the wise: don’t over improve. You’ll set yourself up for a yield of diminishing returns.

The smartest way to increase your home’s value is to bring it up to neighborhood standards. Leaping ahead of the Joneses will only stall your sale, especially in a market where buyers are cautious and want to see solid value. Always consider your neighborhood and research comparable properties before you jump into renovation projects.

Here are some don’ts and do’s.

Don’t assume more space means more profit. Depending on your neighborhood, over-the-top improvements can be a real turnoff for buyers, especially if it means that additional maintenance isn’t worth the effort. For instance, kitchens catch a buyer’s eye, but if you’re dead set on a chef’s kitchen, take a step back and think about it. Sprucing up a kitchen is a good move, and a nice makeover can be done with minimum investment.

Don’t turn a bedroom into an office space when you’re ready to sell. Buyers want bedrooms and want to see rooms as bedrooms. If you already have a home office, which most of us do these days, upgrade that space with attractive storage units to reduce clutter, and maybe a new desk that you can take with you to your next home.

Do think long and hard about installing a swimming pool, unless you plan to stay where you are for a long time. Buyers can see a pool as a major headache and safety issue if they have small children. Heating, skimming, repairing, balancing the acidity level and winterizing are a lot of work for buyers moving into a new home. Instead, take some of that money to create a beautiful landscape with perennials–a lot less work.

Don’t install that media room with theater seating. As buyers downsize, that’s one recent improvement that is no longer enticing. A family room is a better value, but so is a clean, waterproof basement for storage and an efficient laundry space.

The way you look at your living space is very personal. If, indeed, you want an Italian wine cellar with imported stonemasons, by all means do that should you plan to stay for a while. But, that wine cellar isn’t going to add bottom line value to your home if you want to sell now.

Grilling outdoors is a time-honored American tradition. Keep it a safe experience for your family and friends.

Americans have a love affair with barbeque, and Memorial Day is the unofficial kickoff for grills, smoke and sauce. Getting family and friends together for a meal is one of the pleasures we enjoy the most, but keeping the experience safe is a must.

The National Fire Protection Association (NFPA) reports that each year outdoor grills cause an average of 7,700 house fires and $80 million in property damage. Here are some grilling tips to avoid being a statistic this summer.

Regardless of the type of grill you favor, it should be located outdoors and in a clear area. Place your grill away from siding, deck railings, eaves and overhanging branches. DO NOT grill in a garage or enclosed space. That’s just setting yourself up for a fire.

Kids are a big part of barbeques and when they get together, there is usually a lot of running around. The NFPA recommends setting up a three-foot kid-free zone around the grill to ensure safety.

The cook should use long-handled grilling tools for clearance from heat, flame and hot grease. Don’t wear loose-fitting clothes that may catch on fire.

Gas grill enthusiasts should check out the gas tank hose for leaks before using it at the beginning of the season and periodically during the summer. Obstructions in the fuel path are the number one reason for gas fires. At the first sign of a leak, turn the grill off and have it serviced by a professional.

Charcoal grilling also has its hazards. The first problem begins with lighting the charcoal with lighter fluid. Use the fluid only to start a fire, never when the coals are burning. Lighter fluid turns to a heavy gas at a low temperature, which will explode easily. Rather than deal with lighter fluid at all, use a charcoal chimney stuffed with newspaper on the bottom to start your coals. Much less risk, and you also avoid the carcinogenic effect of chemicals.

Should you have a grill fire, move everyone away from the area and call 911. Really, don’t let your ego get the better of you and your guests.

Beer and barbequed brats go together, but not for the grill master. Don’t drink and barbeque at the same time. You’ll need a clear head to produce a fine meal and stay safe. Have that congratulatory drink when you guests are raving about what a great cook you are.

Plan Your House Hunting Efficiently and Avoid Stress

With so many houses on the market now, buyers can be overwhelmed if they don’t have a plan.

With the number of houses on the market now, searching for that perfect property can be time consuming and sometimes frustrating. The number of homes potential buyers want to see has increased dramatically in the last couple of years, with buyers searching for the perfect home at the perfect price.

How do you cut through the process and become efficient in your search? First, be honest with yourself and your Realtor. Make a list of all the features you want in a home and stick to it as much as possible. That includes location. By not straying, you and your agent can be much more efficient.

Be fair about what you can pay. While homes at the very upper end of your budget may dazzle you, spending time on the unobtainable is inefficient. Keep in mind that buying a house is a very long-term financial commitment.

Almost nine out of 10 homebuyers start their search online. Here you can see virtual tours and get a feel for the property. Download the information and put it in a binder that you will refer to frequently. Set up a driving tour by using an online map application. That will guide you in a logical route and you won’t waste time and gas.

The market has been flooded with short sales and foreclosures. What if the home you find falls in one of those categories? Are you ready and patient enough to deal with the special circumstances surrounding these properties? The bank owns foreclosures and there is virtually no variation in price, plus the property may have been neglected and will need extensive repairs after you buy it. Short sale properties are usually in better shape, but, since the buyer will be dealing with the seller as well as the bank, negotiations can take months. If you see a foreclosure in your future, work with a Realtor who specializes in this type of sale. You want an agent who is experienced and can work through this lengthy process.

Trust your emotions. If you feel an initial connection with the home, give it serious consideration. Be cautious about seeing the next home and the next home, hoping an amazing bargain is right around the corner when you heart lies with the first one you saw.

When you find that special home, be flexible during negotiations. Just because more homes are available doesn’t mean you can walk away with a very lowball offer. You want to get to a place where both you and the seller are comfortable and the price is fair market value.

With a bit of focus and planning you can land your new home efficiently and start your new life without stress and tension.

Amendment 3 to stop double taxation will appear on the November ballot

Make sure to vote “yes” to prohibit real estate transfer taxes

There’s good news for Missouri homebuyers and sellers as Amendment 3, which if approved, would prohibit double taxation on real estate, will be placed on the November 2 ballot. The initiative had been stalled when the state of Missouri challenged the number of petition signatures to get the initiative on the ballot.

Amendment 3, supported by the Vote “YES” To Stop Double Taxation Committee and the 21,000-member Missouri Association of Realtors, would prohibit real estate transfer taxes on a sold property. The advocates see transfer taxes as double taxation because Missourians already pay property taxes on real estate, often over many decades of ownership. Missouri is one of just 13 states that do not impose the transfer tax, including all of Missouri’s neighboring states.

The Missouri Association of Realtors believes the transfer tax places undue stress on low-income Missourians who typically spend a larger percentage of income on their home.

Add the mix of Missourians who have lost their jobs, had pay cuts and have been forced to sell their homes or experienced a drop in property values, and the transfer tax just isn’t good for the recovering Missouri economy.

Here’s the simple and straightforward proposal: “Shall the Missouri Constitution be amended to prevent the state, counties and other political subdivisions from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate?”
Taxation on real estate transfers will be placed on the November ballot. This amendment would prohibit

The state's dismissal of its appeal to the Missouri Supreme Court followed positive talks between the Vote "YES" To Stop Double Taxation Committee and the offices of Secretary of State Robin Carnahan and Attorney General Chris Koster. Together, they agreed to ask Cole County Circuit Judge Paul Wilson to modify his ruling in the committee's favor. The judge agreed to the modification, addressing the state's issues while declaring there were more than enough valid signatures of registered voters to place Amendment 3 on the ballot.

The next step is encouraging massive voter turnout on November 2 to insure Missouri sellers and buyers are not assessed yet another financial burden.

Homeowners can save money and improve quality of life by using free conservation tips.

Turning lights off and reducing water usage will make a big difference.

This summer was hot. And humid. And uncomfortable. Those temperatures are moderating, but the utility bills are flooding our mailboxes. Keeping cool in Missouri can be an expensive undertaking. We know that energy efficiency for our homes is the way to go now, not only from an expense standpoint, but also from an ecological view. EnergyStar® appliances, new windows, solar panels and more insulation are very important, but there are also things that you and your family can do every day that cost nothing and considerably reduce your utilities.

Turn the lights out. Your furniture is not afraid of the dark. If you or a family member won’t be in a room for more than five minutes, flip the switch. Ditto for the television, radio and video games. Where ever possible use compact florescent light bulbs. They use a fourth of the energy of an incandescent bulb and produce the same amount of light.

Window coverings are another energy saving method. Keep the drapes closed on the east side of the house in the morning, open in the afternoon, and drapes closed on the west side during the late afternoon.

With cooler temperatures coming, turn off the air conditioning, open the windows and enjoy real air. Ceiling fans will help circulate fresh air both during the day and nighttime. As frigid air moves in, keep your thermostat at 68 degrees during the day and around 55 at night. Programmable thermostats are great and help keep a constant temperature. If you go away for an extended period of time, set the thermostat at 55 degrees. You can save from five to 20 percent on your heating costs.

Water runs freely in this part of the country, but it really is a very precious resource. Just a few techniques can save hundreds of gallons of water each week and reduce your water bill. Approximately 75 percent of the water we use at home is in the bathroom. According to the 
Environmental Protection Agency (EPA), the average bathroom faucet flows at two gallons per minute. If you turn the tap off when brushing your teeth in the morning and at bedtime you can save up to eight gallons of water per day, and that equals 240 gallons a month!

Americans love their long, hot showers and baths, but consider this: taking a five-minute shower uses 10-25 gallons of water while a bath can consume up to 70 gallons. Replacing current shower and sink fixtures with low flow aerators will also save a considerable amount of water.

Would you like to know how much water your family uses in a day? The U.S. Geological Survey has a great survey you can complete to find out your totals. This is a fun exercise to do with children to help them understand the ramifications of letting the faucet run.

If you would like to learn more tips on saving energy, saving money and being more environmentally friendly, The U.S. Department of Energy has a booklet you can download or order.

With just a few minor adjustments in habit, homeowners and families have the opportunity to keep energy expenses under control and help our quality of living.

Check out our Saint Charles County Real Estate site

by Myra Vandersall

Existing Home Sales Are Up 15% in St. Charles County and the Median Home Price Is Up Too

Affordable, reasonably priced homes are waiting for new buyers


The St. Charles region is in real estate bounce back mode with sales of existing homes up 15 percent during the first quarter of this year as compared to the same time last year. The median home price rose to $169,000, a $2,000 increase, beating the national media price of $166,100. This increase mirrors the price increases in nearly 60 percent of U.S. cities during the first quarter with double-digit increases in 29 cities.

Joe Sahrmann, president of the St. Charles County Association of Realtors, sees the market rebounding from the challenging times of the last few years. “We haven’t seen homes this affordable in years.” he says, “The selection is wide and varied for different income levels. Mortgage rates are staying low for now, and St. Charles is nationally recognized as a great place to live.”

And, even though the homebuyer tax credits have expired, it’s still a great time to buy a home, he says. 26 percent more homes are under contract during the first quarter of this year than compared to the same period in 2009.

Some of the increase was fueled by the government’s income tax credits for first-time and returning homebuyers. About 2.2 million households participated in the tax credit program, which cost the government $16 billion, according to the Internal Revenue Service. And, sales in March surged following a three-month decline attributed in part to harsh winter weather.

What does the near future hold for real estate? The industry is an integral part of the American economy, intertwined with employment and finance. If those factors stabilize and increase, the National Association of Realtors predicts prices will increase modestly in the second half of this year.

Slow but steady wins the race, and that axiom is certainly true for the real estate market these days. As buyers become more confident in their spending patterns and realize the market value, we’ll climb back to a robust St. Charles County.

Written by Myra Vandersall

Calendar of Events April 2010

Friday, April 9-Sunday, April 11
Used Book Sale
St. Charles Public Library
Friday, 2:30-7:30 p.m., Saturday, 9 a.m.-1 p.m., Sunday, noon- 2p.m.
Hardcover and paperback books available at bargain prices. Saturday is half price day and Sunday is bag day. Sponsored by the Friends of the St. Charles Public Library. For more information call 630-584-0076 or go to the Library’s website.

Friday, April 9-Sunday, April 11
Tartan Days
Frontier Park
Ceud Mile Failte! Get your caber on at the St. Charles Tartan Day Festivities. Learn about Scot-American culture, visit skilled artisans, musicians and animal experts. Read sheep. Enjoy the Gateway Cabermen competition and listen to Highland Reign, St. Louis Caledonian Pipe Band and the John Ford Highland Pipe Band. Miss Tartan Day will be crowned on Friday, a parade and music on Saturday and Kirkin of the Tartan ceremony on Sunday morning. The Missouri Tartan Day Festivities is pleased to once again host the Gateway Cabermen, St. Louis' only Scottish Heavy Athletics association. Each year, the Gateway Cabermen offer a series of clinics and demonstrations for both men and women.

Tuesday, April 13
Healing at Your Fingertips
10-11:30 a.m.
Java G’s Coffeehouse Café, Old Highway 94 South
Learn how acupressure works and help yourself deal with pain. Try pressure points in class and experience immediate relief.
Fee $9

Friday, April 23-Sunday, April 25
6th annual Builders St. Charles Home Show
St. Charles Convention Center
Friday, April 23, 11 a.m. to 9 p.m.; Saturday, April 24, 11 a.m. to 9 p.m.; Sunday, April 25, 11 a.m. to 5 p.m.
The show includes speakers, seminars, children's entertainment, a sausage and wine tasting festival and about 350 booths from 200 companies featuring windows, doors, kitchen and bath products, pools and spas, home accessories and more. A Habitat for Humanity Restore offers new and used home-improvement merchandise at discount prices.
Free

Sunday, April 25
St. Louis Earth Day Festival
1 a.m-6 p.m.
Forest Park, St. Louis
Earth Day 2010 features educational exhibits and hands-on activities, music and entertainment, an Earth Day café, locally produced foods and beverages and an all-species parade. For info, go to the event website.
Free


Friday, April 23 – Sunday, April 25

Art Walk
Historic St. Charles Downtown District
Friday: 5 pm - 8 pm
Saturday: 10 am - 8 pm
Sunday: 12 am - 5 pm
The annual Spring Artwalk features artists exhibiting along Main Street and at the Foundry Art Centre with music and flowers enhancing the ambiance. Mediums represented include photography, watercolor, acrylic, and oil paintings, earthen ornaments, blown glass, steel sculpture, drawings and pastels, clay and raku pottery, and more. For more information call 636-949-3231.
Free


Written by Myra Vandersall

Stop Missouri Double Taxation on real estate and say Yes to a new constitutional amendment and log on to YesToSaveHomes.com.

Let’s stop Missouri politicians from penalizing homeowners and buyers

Missouri is one of 13 states that does not levy a transfer tax on home sales, and a coalition of property owners, businesses and the Missouri Association of REALTORS™ want to keep it that way.

The group sees transfer taxes as double taxation because Missourians already pay property taxes on real estate. A petition drive and a website have been created to help homeowners and potential buyers reach lawmakers who have the power to levy such a tax.

To place a state constitutional amendment on the November 2010 ballot to prohibit Missouri lawmakers from passing the tax initiative, the group needs more than 157,000 valid signatures. To make voters more aware of this issue, a new website, www.YesToSaveHomes.com is now online to help consumers learn more about the tax, calculate the tax based on the home’s sale price, and get involved.

Here’s the simple and straightforward proposal: “Shall the Missouri Constitution be amended to prevent the state, counties and other political subdivisions from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate?”

As an example, here’s a calculation on a St. Charles County home sale. The home sold for $150,000 and at the St. Charles County taxation rate of 7.0750%, the amount would be an additional $10,612.50.* Jane Mendenhall, president-elect of the Missouri Association of Realtors, believes the transfer tax places undue stress on low-income Missourians who typically spend a larger percentage of income on their home.

Add the mix of Missourians who have lost their jobs, had pay cuts and have been forced to sell their homes or experienced a drop in property values, and the transfer tax just isn’t good for the recovering Missouri economy.

Legislators are looking around to fine new sources of revenue. The transfer tax is one of those sources politicians are eyeing. With the help of voters and homebuyers, the transfer tax will not be an additional burden on Missouri residents.

* This number is based on area percentages.

Written by Myra Vandersall

A big thank you goes out to our valued clients

SCHNEIDER Real Estate ranked in the top 10 real estate companies in St. Charles through third quarter of this year. SCHNEIDER agents brought the company to the eighth slot in closed transactions in St. Charles County. SCHNEIDER's 42 agents are very proud of this accomplishment, but we are even prouder, and sincerely thankful, for the clients who trusted us with their homes to sell or purchase.

We work hard to earn your trust and in return give you the best personal service and advice. We support you, whether you are buying or selling, and try to find the very best fit for your family’s needs at the very best price.

We’ve been here since 1975, growing as the St. Charles region grows. Our family thanks you and your families for the privilege of serving your real estate needs.

Lake Saint Louis is one of the BEST places to live in America!

Congratulations to the residents of Lake St. Louis! The community placed ninth in the top 10 places to live in Money magazine’s annual listing of the best 100 places. SCHNEIDER Realtors’ own Jane Nicoletti can testify first hand–she’s lived there for more than 20 years and loves Lake Saint Louis.

“Now my grandchildren can enjoy the pool, the parks and walk along the boulevard,” she says. “and there’s shopping galore. How great is it that we made it in the top 10 cities to live list!”

Money magazine’s criteria for the top 100 list is based on school ratings, home prices, employment levels and crime statistics. The magazine judges communities between 8,500 and 50,000 residents.

With it’s five parks, two lakes, three golf courses and a 650-horse equestrian center, Lake Saint Louis has evolved from a resort town to a thriving family-centered community that is projected to have a strong job growth over the next five years.

Last year St. Peters, O’Fallon and St. Charles made the list. Seems like our little corner of the world is doing just fine!

Check out homes in these great places to live!

SCHNEIDER Real Estate

http://schneiderrealestate.blogspot.com/

More than three-quarters (78 percent) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy.

Friday, April 17, 2009

'Psychological' Blueprint Helps House Hunters Environmental psychologist Toby Israel, author of a new book, Some Place Like Home: Using Design Psychology to Create Ideal Place, says people’s childhood homes have a profound effect on what kinds of homes they like best. Before anyone buys, builds, rents or remodels, Israel believes they should consider what kinds of living spaces satisfy them, she says. One exercise she recommends for anyone searching for a home is to draw a timeline of all the places they've lived for six months or more and circle those that they liked the best, then describe why. She calls the result a "design psychology blueprint" that can help a real estate professional identify what a client really wants. Source: Star-Tribune, Jim Buchta (03/14/2009)