Home Selling Info & Tips

New single-family home sales rose 7.3% in April

Brian S. Wesbury – Chief Economist
Robert Stein, CFA – Senior Economist

Compliments of Joseph Grifard of J.P. Griffard & Associates 

New single-family home sales rose 7.3% in April, coming in at a 323,000 annual rate, beating the consensus expected pace of 300,000.

Sales were up in all major regions of the country.

At the current sales pace, the months’ supply of new homes (how long it would take to sell the homes in inventory) fell to 6.5 in April from 7.2 in March. The decline in the months’ supply was due to both the faster pace of sales and lower inventories, which fell 5,000 from last month, hitting the lowest level on record, since at least 1963.

The median price of new homes sold was $217,900 in April, up 4.6% from a year ago. The average price of new homes sold was $268,900, down 0.6% versus last year.

Implications:  New home sales rose 7.3% in April, beating consensus expectations for the second straight month.  And for the first time since August 2007, sales increased in all four major regions of the country, showing that the gain in sales was widespread and not confined to one area. On top of that, the level of new homes in inventory fell to the lowest level on record, since at least 1963. While this is all very good news, it does not necessarily signal the start of a consistent upward trend. Sales remain in the range we have seen since last May, and the new home market still faces two major challenges. With such a large number of existing homes on the market, many of which are like new or are in foreclosure and steeply discounted, the new home market isn’t as attractive to buyers. Credit conditions also remain very tight, despite low mortgage rates, particularly for buyers who don’t have very good credit scores and a 20% down-payment. So while housing is clearly beginning to recover, these issues will keep the pace of recovery subdued for the time being. We expect new home sales to eventually increase substantially, but it will take several years to fully recover. In other news this morning, the Richmond Fed index, a measure of manufacturing activity in the mid-Atlantic, dropped to -6 in May from +10 in April. While this number was a disappointment, it is not consistent with other manufacturing indicators that show continued growth in manufacturing.

Laura MacDonald is a top St. Louis REALTOR serving the St. Louis Metropolitan area from the #1 Coldwell Banker Gundaker office in the State of Missouri.  Laura ranked 3^rd in her office for 2010 and was #1 in sales units taken and closed in 2010.  The Laura MacDonald team specializes in marketing and selling homes in the St. Louis, Chesterfield, Ballwin, and Town & Country areas with Integrity, Resources and Results.  Contact MacDonald for a complimentary, no obligation, Comparative Market Analysis of your home at 314-605-2896, or info@thelauramacdonaldteam.com

Make Moving Day Easier

Here are some tips from U-Haul on how to make moving day a bit easier:

• Move on a weekday if you can, when banks, utilities and government offices are open.
• Order preprinted address labels with your new address as soon as you know it. It makes the change-of-address process much easier.
• Keep a utility log to check service-transfer dates. If you’re moving locally, leave the power and water on at your old address a few extra days so you can go back and clean up after your move.
• Choose a “packing room” ahead of time and box up a few things each day.
• To save time, rent a carpet shampooer at the same time you rent your truck.
• Mark each box with its contents and destination room. That way, you and your helpers will know where each box belongs at your new home.
• If moving locally, you may want to leave your pets with a friend during moving day. Animals can become confused and frightened during a move.
• Remember to allow for extra braking room when driving a moving van. Anticipate stops and allow a 3-second gap between you and the vehicle in front of you.
• U-Haul moving vans require up to 12 feet of overhead clearance. Watch out for drive-thru restaurant and motel over-hangs.

Source:  U-Haul

Still Time to Register for FREE Green Living Seminar

Reminder to reserve your seat for the first of a FREE four-part Green Living series  

Wednesday, October 27 at 6:30pm.  

JUST ADDED: Announcement of the newly released ENERGIZE MISSOURI HOMES PROGRAM.  Attend the Basic Green Living seminar on Wednesday, October 27th to learn how you can receive a FREE energy audit and improvements through this just released State of Missouri funded program. 

Home Green Home, Coldwell Banker Gundaker, REA Homes,  and Sustaining Spaces have teamed up to offer a FREE four-part seminar to help you easily integrate “Green” into your home, lifestyle and daily habits.  Attend one or all sessions.

LOCATION: Des Peres Lodge
                     1050 Des Peres Rd.

Wednesday, October 27, 2010     6:30 – 7:30
Basic Green Living – Simple and Inexpensive Solutions to Greening Your Home and Lifestyle
    Kathleen Engel – Home Green Home  www.homegreenhome.us
Landscaping for Energy Efficiency
    Marla Esser – Sustaining Spaces  www.sustainingspaces.com

Wednesday, January 26, 2011     6:30 – 7:30
Green Building, Better Building – A Perspective from a High Performance Luxury Home Builder
    Jeff Bogard – REA Homes  www.reahomesllc.com

Wednesday, Feb 23, 2011     6:30 – 7:30
Energy Audits and Home Performance Improvements
   Marc Bluestone – Home Green Home www.homegreenhome.us

Wednesday, March 23, 2011     6:30 – 7:30
Landscaping for a Healthier Lawn and Garden

To reserve your seat, please call:
Kathleen Engel ­­­­­­­­­­­­
Marketing and Outreach Manager
Home Green Home

314-288-5568 (cell)

Stop Double Taxation – Protect Missouri Homes!

The Vote “YES” To Stop Double Taxation Committee is moving ahead to inform voters about the need to prohibit real estate transfer taxes in Missouri, after the state on Friday dropped plans to appeal a key court ruling. The proposed state constitutional protection against the unfair taxes will appear on the Nov. 2 general election ballot as Amendment 3.

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 issued earlier this week. 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.

“This is a win-win-win for Missourians,” said Chuck Hatfield, of Stinson Morrison Hecker, LLP, attorney for the Vote “YES” To Stop Double Taxation Committee. “The Secretary of State may move ahead with the important work of finalizing the fall ballot. The taxpayers are spared the time and expense of litigation. And our committee can focus on informing Missouri voters about the need to Vote “YES” To Stop Double Taxation by barring unfair real estate transfer taxes in the state.”

The 21,000-member Missouri Association of Realtors, which is strongly supporting Amendment 3, commended Secretary Carnahan and Attorney General Koster and their professional staffs for working constructively with the Vote “YES” To Stop Double Taxation Committee to resolve possible issues and avoid needless court delays. 

Transfer taxes on home sales are double taxation because Missourians already pay annual property taxes on real estate, often over many decades of ownership. Missouri is among just 13 states that do not impose a transfer tax on real estate sales, including all of Missouri’s neighboring states. As state, county and city revenues decline, politicians may be tempted to impose new transfer taxes – just as Missouri citizens are struggling to make it.

The wording of Amendment 3 is straightforward and simple: “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?”

Learn more about the amendment at www.YesToSaveHomes.com.

Why Some Houses Sit and Others Sell!

7 Fixes to Boost Your Home’s Value

It’s time to tackle home-improvement tasks you put off during the hot summer weather. There are lots of relatively simple and affordable things you can do to give your home a face lift. Your house will look better and your family will feel happier in it. As a bonus, you will also boost your home’s value.

1.  Add the perfect touch with paint

“A fresh coat of light paint on the interior walls can work wonders,” says Kelly O’Ryan of Coldwell Banker in Lexington, Mass. “Paint will always clean up dirty walls and give a room a better image.”

Although dark colors can be stylish, O’Ryan advises going for lighter shades to brighten things up in warmer seasons. Karol Nickell, editor-in-chief of Fresh Home magazine, offers this advice: “Smart color selections can make a small or cramped room appear dramatically larger. In the foyer, make a good first impression with similar tones mixed at different strengths. In the living room, a bold color paired with a white ceiling makes the room seem taller than it really is.”

2. Focus on the flooring

Good, well-maintained flooring can set a positive tone for the entire interior of your home.

“Like paint, flooring can help create an impression of spaciousness and airiness,” Nickell says. “Whether it’s a floating laminate floor, tile or a natural ‘green’ alternative, lighter-tone flooring can make formerly drab areas appear modern and streamlined.”

3. Lighten up the accents

“Summer (or fall) is a great time to change your window treatments and area rugs,” O’Ryan says. “Once again, dark colors are associated with winter months; a lighter, airy curtain will give any room a brighter and more pleasant appearance. If your floors are in great shape, you may want to remove the area rugs and leave the floors bare. Eliminating the rugs will open up the room and make it appear larger.”

4. Update the windows

Old windows aren’t just ugly — they can also let your heat and air conditioning escape, costing you big bucks.

“While window treatments are typically a focus in many home makeovers, the actual windows themselves are often overlooked,” says Victor Gonzales Maertens, an energy efficiency expert with Lennox Industries. “However, upgrading old single-pane windows with new Energy Star-qualified windows can save an average of between $126 and $465 per year on energy bills, and some new windows qualify for the federal tax credit.”

5. Weed out bad landscaping

Neglected bushes and overgrown lawns can kill a home’s curb appeal. Don’t worry – you don’t need a green thumb to spruce up your yard.

“Clean up the site by removing any dead or dying plants, branches and flowers,” suggests Jennifer Hoxsie, landscape designer with Greenhaven Landscapes in Lake Bluff, Ill. “Prune overgrown shrubs along the home’s foundation so they are below the windowsills and off walkways and driveways. Fill empty holes with site-appropriate plants. Have all the planting beds weeded, edged and mulched for a clean, crisp look. Finally, weed and fertilize the lawn and provide supplemental watering if necessary to maintain a lush green carpet.”

6. Add decorative touches to the yard

We’re not talking about plastic pink flamingos or creepy garden gnomes. Taylor Graves of CertainTeed building products says, “Adding benches, steppingstones, fountains or other garden accents could go a long way in making your outdoors a visually appealing and welcoming environment.”

7. A few final exterior touches

While you’re outside, a few other quick moves can make a big difference.

“Add color with paint to outdoor features such as window frames, decorative beams and porches,” says Kurt Gleeson, national vice president of sales for RealEstate.com. Stick with calm colors that complement the home’s exterior color scheme, avoiding shocking shades and drastic contrasts.

“Clean external brickwork or concrete slabs with a liquid masonry cleaner to make them look new and neat. Power washing can give external stonework, walkways and front stoops a quick makeover.”

Spruce things up
By investing a few bucks and some elbow grease, you can boost your home’s image – and value – quickly this fall

Source: Investopedia.

Government To Require a License For Your House is a HOAX

Thanks to Bryce Thomason for advising me that this information is a hoax.  While I did check with snopes.com and found no reference that it was, I would never have shared it had I not believed the information to be accurate.  Please accept my apologies.

Find out more here:  http://www.realtor.org/government_affairs/gapublic/american_clean_energy_security_act 

If you own a home …… you gotta read this…all of it!!! 

Something every home owner should be made aware of! 

Don’t want to be bothered with “Political stuff?”   You’d better read this one. It will come as a huge shock to you if you aren’t informed as to what Obama is up to, and apparently it has already passed one hurdle. It will take very little now to put it into actual law!!  YOU’D BETTER WAKE UP AMERICA !!!! So you think you live in a free country, boy have you got a surprise coming. 

A License Required for your HOUSE? 

If you own your home you really need to check this out. At the end of this email is the Google link to verify.  If the country thinks the housing market is depressed now, wait until everyone sees this; no one will be buying homes in the future. 

Seller Tips for a Challenging Market

While the economy is still a daily challenge, the real estate market is starting to attract more buyers.  Sellers are now competing with other homes on the market, as well as, buyers who are concerned with qualifying for mortgages at low rates, fears of the condition of homes on the market, and concerns over whether or not they’re getting the best deal available in this marketplace. 

Selling incentives are a great way to create additional interest in your property. They can help motivate reluctant buyers to make that next step in making a buying decision.

Here are several frequently used incentives that can be used to draw attention to your home.

Offer to Pay Points

Lenders charge fees known as points, which are 1 percent of the total loan amount and can rate between 0 and 3 points depending on the interest rate and loan terms. Points can be a significant up-front cost for the buyer, particularly for larger mortgages. Offering to pay some or all of the origination points on behalf the buyer can help generate offers from cash-conscious buyers.

Buying Down the Rate

Many buyers are not aware they can receive a lower interest rate by paying additional points. Typically buyers can pay up to four discount points to bring down the interest rate. Offering to pay discount points can make your house more affordable for many prospective buyers.

Consider a Home Warranty

A home warranty can help buyers feel confident they won’t be stuck with expensive repair costs shortly after buying a home. Home warranties usually cover the repair or replacement of core systems such as plumbing, heating and electrical, along with major appliances. Providing a one or two year  home warranty can add to your home’s appeal, especially if you are competing against newer homes, or a large number of similar homes on the market. Home Warranties cost around $250 to $600 per year, and offer great value as an incentive.

Cover Closing Costs

In addition to the down payment required, closing costs for the buyer can add up quickly.  Sellers can offer to pay for the buyer’s side of closing costs to help minimize their up-front costs. It is wise to either put a cap on the dollar amount you will contribute, or specify exactly which individual costs you  are willing to pay for.

Upgrade Allowances

This is a creative way to appeal to some buyers.  Offer cash allowances for specific upgrades.  While these allowances are commonly offered by new home builders, sellers are using this technique to set their properties apart from the competition.

Let’s say your carpets could use to be replaced.  Offering an allowance for new carpet and installation allows you to avoid the hassles, and gives the buyer an option to choose a carpet that matches their décor.

Other upgrades offered can include allowances for kitchen facelifts, bathroom remodels and new landscaping.

New Appliances

If you’re competing with new homes on the market offering an appliance package can really put your home at the top of their list.  Allowing the buyer to choose their appliances helps make the home more ‘personal’ to them.  You might even lay out flyers with some appliance examples to help buyers visualize what it would look like with these new additions.

 

Five Tips to Make House Hunting More Enjoyable

As the housing market continues to attract more buyers and sellers, finding the perfect home can required a lot of time and effort.  Here are my Five Tips to Make House Hunting More Enjoyable:

1.  Don’t Set Too Many Appointments for One Day – While you may believe that visiting as many properties as possible in one day will help you get closer to your perfect home, this strategy may actually cause you to miss seeing the home of your dreams.  Allow yourself enough time to explore each aspect and room at length, even if it’s just to allow for comparison with the next home on your list.  If you do find something of interest, you will want to have ample time to fully tour each room in greater detail.  This is your biggest investment; make sure you allow yourself the time to be sure it meets all your needs.

2.  Comfortable Attire – Casual dress is best when touring potential homes.  Not only comfortable dress for the season, but slip-on shoes or socks might be in order for homes with new carpet or flooring who may request you remove your shoes during the tour.  Comfortable shoes are a must – you’ll be going up and down stairs and doing a lot of walking, not to mention reaching, or bending to examine all the high and low spots.

3.  Ride Together – When touring multiple properties in one day, car pooling is the way to go – this also ensures that everyone stays together and is able to see the home at the same time. Even better, if you’re the passenger, you can focus on the neighborhood around each home rather than having to watch for street signs and house numbers.

4.  Considering the Area – Make sure you take notice of the area surrounding each home you’ll tour.  How far is it to the closest shopping area, what neighborhood amenities are there?  Where are the nearest schools?  Are there activities within walking distance; how far will you be from your job; and does there seem to be an unusually large number of homes on this block that are for sale? 

All of these considerations play into the benefits this home has to offer you even before you set foot in it.  Making note of the area surrounding the house can help you determine whether or not you want to make an offer.

5.  The Nose Knows – Generally speaking, if there’s a bad odor inside or outside the home you will want to find out why.  Also, if the home seems overpowered with the smell of fragrant candles or potpourri, this could be the seller’s way to mask a deeper problem.  If you smell mildew or mold, this can indicate a larger problem that could cost thousands of dollars to repair.  Pet or smoke smells can dissipate over time, but if you’re interested in a home with a strong odor, take the time to hire a professional home inspector to determine its cause before you close the sale.

Why Setting the Wrong Asking Price Could Cost You The Sale

Setting the right asking price when selling your home is one of the most important factors in getting your home sold.  Every seller wants to get the best price possible, but losing sight of  fair market indicators can cause serious repercussions.

In many cases, sellers believe pricing high initially offers them the opportunity to negotiate during the contract phase.  However, overpricing in this manner may actually force you to settle for a lower price than you would have received by not setting a realistic asking price based on current market statistics.

Overpricing Results Could Include;

Fewer Buyers Considering Your Listing – Today’s buyers do a lot of their initial research for a new home on the Internet, and in most cases will set a price range which represents their limit for the listings they will consider reviewing.  If your home is priced outside their range, even by just a few thousand dollars, it may never be considered.  .

Most buyers will then contract for the services of a buyer’s agent who will help them develop a strategy to match their needs within their price range.  While some buyer’s agents will consider showing homes slightly above the buyer’s maximum price level, they rarely go too far beyond that threshold.

Fewer Showings – If the Agent working with the homebuyer feels your home is overpriced they will steer the client away from a showing for fear of wasting their client’s time.

Helping Your Competitors – It may not have been your intention, but your home’s higher asking price will make other homes of equal size and quality look like a better value by comparison.  Agents representing those sellers will use the pricing difference as a selling point when featuring their listings to interested buyers.  You may find you have little to no interest until most of the other homes in your area have already been sold.

Extended Days on Market - If your home is priced higher than what buyers are willing to pay, your home will be on the market for a longer period of time.  This creates the idea that you are ‘overpriced’ in the community making buyers less interested in working with you.  Even if you drop the price later, this will only leave a negative impression of your listing, and may cause you to have to make even bigger concessions in pricing further down the road.

Difficult Negotiations – Some buyers use a higher listing price as leverage during the negotiation process. If the home doesn’t have the updates or features that warrant the higher asking price, buyers may think you don’t know the market, are not motivated to sell, or are simply leaving yourself room to negotiation.  If they believe this, they are likely to make a very low offer to see how low you will go.

Appraisal Problems – Even if you find a buyer to make an offer at your asking price, the deal may fall through if the lender’s appraisal of your home’s value falls short of the contract price.

An appraiser sets your home’s value on what similar homes in your area have sold for within the last six months.  If the appraisal is below the contract price, the lender will only approve the loan for the lower amount, forcing you to reduce the price or losing the deal and putting your home back on the market.

What This Means in Today’s Market

Because of today’s market, and the fact that home prices have dropped so dramatically, it can be more tempting to price your listing higher than the market will bear, or be influenced by the purchase price you made during the real estate boom.

This is an extremely flawed strategy since there is a much smaller pool of highly motivated and qualified buyers who are much more educated about the market and current trends.  Most buyers are unwilling to gamble and overpay for a home, knowing that the rate of appreciation may be slower than in better times.

Pricing to the Market

Remain objective when pricing your home and do your research to closely price yourself similarly to other properties in the area.  Visit open houses, look at recent sales, and make your focus more on selling your property quickly at the best possible selling price.

Correcting a High Market Price

If your home has had few offers or showings, take some time to be sure it is priced correctly.  Take stock of recent sales, especially those that have sold since your listing went on the market, or look to get feedback from any agents who have shown your property to their buyers.  If those buyers purchased other homes, ask why those buyers chose the home they did, and why yours was not in the running.

The best way to keep the momentum going is to quickly adjust the asking price to meet the comparables in your area.  Depending upon how long it has been on the market may dictate whether or not you may need to consider additional updates or repairs to make your listing more attractive to potential buyers.  To create additional interest you may even need to consider pricing your home slightly less than your competitors.

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