Prime mortgages have the dubious distinction of the highest number of foreclosure filings in the most recent data available.  Perhaps those borrowers with prime loans had more resources to hang on longer than sub prime borrowers after suffering a job loss or income loss due to the recession.    Regardless, there will continue to be record numbers of distressed property in the market for at least the next 12 months. 

What do I mean by distressed?  A distressed property is commonly called “upside down” or “under water”  Basically, the owner owes more than the house can sell for in this market, and the owner can no longer afford to keep the property. 

We’ve assisted home owners with loan modifications and we’ve successfully negotiated short sales more often in the past 18 months than in the past 25 years combined.  Colleen has a CDPE designation, which means she undertook very specific course work to enable her to help homeowners avoid foreclosure.   Right now, although there are proposals in the works, the mortgage industry has no uniformity, no standards , when it comes to short sales.   Each lender goes about considering a short sale package in their own way – some of them have “figured it out” and have a system to efficiently process the package and make a determination quickly. 

If you or someone you know is really struggling with meeting their monthly mortgage payment, please tell them these 2 things:  Number 1 – They are not alone.  Number 2- we may be able to help them.  Sometimes it’s really hard to take any action when faced with a tough financial situation.   There are websites that can be a place to start, such as www.makinghomeaffordable.gov.  And The Irvine Team is always just a phone call away at 636-391-2100.  We’ve been blessed in good times, and it’s our duty to serve through not so good times.   Please be wary of anyone who wants to charge a fee up front.  Unfortunately there are scams out there!

We will all get through this together…after all, Bernacke said just this week that the recession is over, didn’t he?

First time buyers have very little time to take advantage of the tax credit which can mean as much as $8000 in their pockets!  To qualify, buyers must not have owned a home for at least 3 years, and they must close the sale by November 30, 2009.  Rest assured that realtors everywhere are contacting their senators and representatives recommending an extension of this popular program, but as of today the deadline is November 30. 

If you know someone, one of your children, a friend who has not owned a home in 3 years, urge them to consider taking advantage of this program.  We’ve sold several buyers wonderful homes this year that would probably still be renting if someone hadn’t given them the good advice that this program, combined with wonderful interest rates, is the chance of a lifetime!

Call us today at 636-391-2100!

Finally…Congress has several proposals to extend or add to your ability to purchase a new home in this time when houses are on sale for 20% off! 

Of course, Congress has not been known to follow through on much of their agenda.  So who knows if any of this will come to fruit.  However, here goes: First, you probably already know about the $8,000 credit for first time home buyers (who have not owned a home in 3 years — if you owned a home BEFORE that, but haven’t owned one in 3 years, you are able to use this $8,000 also!).  This credit has started a buying spree among first time buyers for lower price homes!  But buyers using this money must CLOSE their purchase by Nov. 30th or they will lose the money! 

And  the move-up market is still slow!  So… some Congressional members are proposing 1) extending the credit for another year or, at least, a longer period of time to help buyers continue to become homeowners.  And another proposal was that Congress up that $8,000 ro $15,000 for move up buyers and possibly for all buyers…or just extend that $8,000 to everyone. One great stimulus to help the housing industry!

Whether any of these proposal actually go through, what it tells me is that the government, especially Congress, is acknowledging that they need to encourage buyers to get out there and buy while we still have a plethora of homes on the market!!  So, don’t hold your breath, but do consider taking a look at the fabulous variety of homes available at incredible prices!  You won’t have this opportunity again in your lifetime.

Everyone is thinking it is time to buy … foreclosures!  Big discounts… The newspapers say so!  The television says so.  The internet says so.  It must BE so!  Well, there are foreclosures throughout the country, but the numbers and types vary according to the area of the country and even the community you are looking at!  Very desireable areas may have few or none.  Areas that were already troubled have many more.  But St. Louis real estate is, in many ways, unique.  We have been such a stable real estate market for as long as I have been in real estate (25 years!) that we had few people who overextended as they did in California or Florida!  In addition, foreclosures here are listed in the Multi List system, so, if you are looking for them, you will find them scattered here and there.  And often not exactly where you would like to live!  Every family has a dream house in a dream area and it is sorta hard to put that house in that area — exactly!  What I suggest, as interest ratess are now pushing 4-1/2% and we may never see that again!, is to call us and let us do the hard work for you!  We are specialists in putting together that house in that area at the right price.  Or, if you want to browse on your own, go to our website, www.theirvineteam.com and take a look at the newest and latest listings!  You’ll find it isn’t only foreclosures that will be interesting.  Many many, in fact, most homes have adjusted their prices to compete with those distressed houses!  And they could very well be that perfect house in the perfect area you have been dreaming about your whole life!  Get on board before it is too late!

I know, this market can be frustrating and confusing for both buyers and sellers! And we in St. Louis county, St. Charles county, Chesterfield, Ballwin, Ellisville, Wildwood, and Town and Country are no different than other parts of the country!! Let me try to help with that confusion a little!  First, you need to understand that there IS a difference between “price” and “value’.  Price is the amount you are asking for your home, while value is what a buyer perceives the property is worth.  And these can be two different amounts!  Value, as determined by a buyer, can be influenced by many factors such as: location, condition, comparison to other homes in your price range, features one home has that another doesn’t have.  But, by paying attention to details that can have a positive impact on the value, you as a seller can significantly increase your chance of snagging a buyer who agress with your idea of value!

First, look at a few simple things:

1)  Size makes a difference in perceived value!  So, you want to make your home appear larger than its actual square footage.  You do this by reducing the amount of furniture, knick-knacks, and clutter and making the rooms look “naked.”  The space will then feel bigger.  Builders have done this for years by vaulting ceilings or making two-story rooms!  While the actual square footage may be small, the rooms appear large!

2) Cosmetics are extremely important.  Fresh paint inside, walls, ceilings, and even woodwork, makes the home appear newer.  And remember, this home may be your old home, but it is someone else’s “new” home.  So make it look new.  And painting can be done so inexpensively.  Clean carpeting and, if you think it might be too worn, don’t hesitate to replace it.  You will find many carpet places will bill you at closing now. 

Kitchens and bathrooms are critical to most buyers. So updating these two rooms can bring you more money and a quicker sale as well. We have even had people put in granite counters just to sell the house (no, they aren’t as expensive as you think and can even be put over your old counters).  This is an improvement that pays for itself in a quicker sale and buyers are so impressed in older homes to see these two rooms updated.  In a bathroom, you may want to replace corroded faucets.  Not expensive, but something people will notice. And clean out those closets, including the linen closet.  People don’t want to buy a home with small closets.  They are leaving small closets.  They want bigger!  So cleaning out your closet will give them the perception that they are getting that bigger closet.

Pay attention to the entrance and yard and clean it up, put fresh mulch there and maybe a wreath to welcome those buyers. This is a buyer’s first introduction to your home.  When I showed a house, I could usually tell how tidy the inside of a home was — by the outside!  Remember that buyers stand at your front door waiting to get inside and will be looking at the brass doorknob, the doorbell, the light.

3) Take care of the obvious, like spots on the ceiling from a small leak.  Buyers tend to “horribleize” and, if they see one thing wrong, they imagine lots of other things wrong that they can’t see! I know you lived with those spots, that worn carpeting, the stain on the basement wall.  And you don’t want to spend money now, when you are leaving.  But this might just be the reason you can leave!  If you ignore things, you might get to live in your old home for a much longer time!

I know this sounds daunting.  But the money is small — and we are selling homes quickly that listen to these hints!  Just give us a call and we can fill you in, by coming out and doing a personal assessment of your particular home!  Our number: 636-391-2100!

We are once again fortunate to have been invited to participate in the Bill Barrett Top 500 Real Estate Event held in Orlando in conjunction with the National Association of Realtors Annual Conference.  We have been involved with this prestigious group for nearly 10 years now and the amount of information that is shared among these top real estate agent is simply not available anywhere else in the country.  Many of these 50 real estate agents design their entire yearly business plan based on discussion, advertising, technology, and real estate techniques that are shared among this group at this annual event. And it is such an honor to be included with these “moguls of real estate“.  More than that, sharing ideas helps The Irvine Team perfect their abilities to help clients and customers reach their goals when it comes to buying and selling.  Certainly, we need as many new ideas as possible to help in the St. Louis, Chesterfield, West County, and St Charles markets in this challenging period.\

But good news is The Irvine Team has closed 145 sales so far this year, so the challenges that have faced us have certainly not slowed us down! Now is a particularly good time to go home shopping in St. Louis.  Traditionally, interest rates are the lowest in December and begin to rise as January progresses and demand increases.  And the inventory you have to choose from is maximized, as many people want to move before the holidays!  If you want to browse, please use our easy-to-use MLS search.

“This is the type of Real Estate market that two years from now everybody is going to say, ‘I wish I had bought then’.”  This is a quote from Rich Levin, noted real estate prognosticator.  Here are the factors, according to Levin, that are lining up for the next 6 to 12 months to be that year — you should have bought.  And the beauty here is, if you listen, you can still do it to minimize your housing costs and maximize the house you buy!

First, Financing:  Interest rates are still the lowest they’ve been for decades.  And, traditionally, when they hover close to 6%, they usually don’t “hover” for long, quickly rising with the demand for housing.  You have an opportunity to take advantage of these lower rates before the economy turns the corner and rates start rising with the healthier economy. 

“But I hear getting a loan is almost impossible,” some potential buyers repeat.  As St. Louis’s # 1 Realtor for many years, I can tell you that we have not seen difficulties in obtaining loans for the vast majority of our clients.  Lenders are eager to loan money (actually that is how banks make money!) to real estate buyers as long as they have good credit.  And we can still get low down payment loans, just not those 100% loans that caused the real estate melt down.

Inventory:  We note that new home inventory is slowly being absorbed into the marketplace, at prices that are definitely attractive to buyers who want to make money in the future.  Builders don’t know how to be grocery clerks or truck drivers, so they keep doing what they do know how to do: build houses.  That is one of the reasons we in St. Louis, St. Charles county and Jefferson county got into such an oversupply of available housing.  If you don’t have enough new buyers coming into the marketplace to absorb that inventory quickly enough, the inventory will build — and builders will have to run a “sale.”  And, because those builders are reluctant to add to the inventory until they get rid of their already existing “spec” homes, that inventory should shrink and has been shrinking nicely.

What that leaves on the market is pre-owned homes that have not sold through the  year. And now you, as a buyer, can take advantage of a wide array of homes that are available at very attractive prices in nearly every corner of the St. Louis market — St Charles county, West County, South County, Jefferson County, North County. 

And those who do decide to jump in now, before the spring, will not see prices this reasonable (read “cheap”) for many many decades.  It is like being offered a Mercedes at Yugo prices!  Once you buy that “Mercedes at that Yugo price,” you can sit back and chuckle as others finally decide to dip their toes in the market and find less inventory, higher prices, higher interest rates — and that ol’ Mercedes at Mercedes prices!!  This is so similar to people who look at the stock market when Walmart, for instance, is at its peak and decide it is a good buy.  They buy it at the peak and then see it drop to lower levels.  The old adage, “Buy low, sell high” applies here to housing as well.

Is it smart to buy now?  It doesn’t take an Einstein to take advantage of this once in a lifetime housing sale!

If you want to start browsing and dreaming, just call us at 636-391-2100 or visit our website and get started — before the rest of St. Louis wakes up and gives you competition!!

As top St. Louis & St. Charles area Realtors, we make it our business to be aware of every local home or property on the market. We even know of properties that will be available, but have yet to formally be placed on the market.  We have direct access to the area’s MLS (Multiple Listings Service), and also to every other agent in the area and all of their listings.  If you give us some idea of what you are looking for, we will personally review all our sources of real estate listing information and send you everything within your price range that matches your criteria. We can save you a great deal of time!  Sign up for the St. Louis MO Real Estate Home Finder.

Relocating to the Area?  Please use our complimentary online St. Louis Area MLS Search for all your real estate needs!

Interested in selling your home?  Please use our complimentary St. Louis Home Valuation system to find out what your home is worth!

For more information about St. Louis Area real estate, please contact the Kathy Irvine Team at 636-391-2100 or email them directly at: kathy@theirvineteam.com