Real Estate Information

Its that time of the year when I hear the question "Should I sell my home during the winter or wait until Spring?" My answer is always yes, if your home is ready to sell, move ahead.

One reason is that during the winter more properties are taken off the market then put on.  Buyers will have less to choose from, and if your home is on the market there will be less competition.  More importantly, only Serious Buyers are looking for homes during this time. This means the buyers are really motivated to buy, no window shoppers.  Additionally, come Spring the housing inventory increases dramatically, because everyone else will be putting their house on the market, which could reduce the demand for your home.

Another important fact is interest rates are still low and buyers can take advantage of these historically low rates. As a seller, you have the end of the year working in your favor, since buyers might have to buy before the end of the year for tax reasons.

Remember buying a home is not just a huge financial decision; it is also an emotional one. What better time to catch buyers then during the holidays? Showing your home off to potential buyers during the wintery days only helps the buyers to visualize themselves in the house celebrating their own holiday.

And you might receive the best holiday present of all, a “sold” sign on your front yard.

​So if you are thinking of selling your home, its not too late to give me a call 314-479-8583 or visit my website and I can start working for you.

Effective October 1st, 2011, the costs associated with getting a VA motgage are going DOWN!

Like other Goverment backed loans, VA mortgages are bundled, securitized and sold on the secondary market. In order for the governement to insure these mortgages the borrower is charged a typr of insurance premium called a VA funding fee. Typically these fees are added to the loan amount and financed into the loan increasing the cost of buying the home.

VA loans, subject to some restrictions, are typically insured loans up to 100% of the purchase price of the home. What changes next week? On loans the close effective October 1st the funding fee will be reduced. This is a huge benefit to Veterans because they will effectively lower their monthly payment and the cost of buying a home.

Visit the VA loan website for more info: www.militaryvaloan.com

In a country where the majority of the population strives to make thier homes bigger and better than their neighbors. There are a small percentage of the population looking to step outside the box and downsize. I'm personally all for downsizing, the house you once called home during your family years can become a big hastle during your retirement years. Between maintenace costs, taxes, and utility bills large homes are an unnecessary luxury when you don't need the space. But could you live in a 320 sq.ft. house?

Debra and Gary were working four jobs in order to maintain their 2,000 sq.ft. home on an acre and a half of land. While searching for ways to downsize Gary came across a builder who could build them a custom 320 sq.ft. home for under $20,000. I know what your thinking...I thought the same thing...Thats a little drastic!

Lets face it a 320 sq.ft. house is not for everyone. If your thinking of downsizing to a more realistic managable home give me a call. I would love to discuss your options in today's market.

In today's market sellers are looking to get a leg up on the competition. Its no secret, every seller wants their home to sell quickly and for top dollar. If your selling your home would that sound good for you?

Well, it's not luck that makes that happen. It takes a powerful marketing plan and a competitive pricing strategy but most importantly once you get those potential buyer's through the door, the home has to look great. Staging your home for sale is critical component of getting your property sold. It takes careful planning and knowing how to professionally spruce up your home to send buyers running for their checkbook. Carla Hill of Reality Times has put together "10 Secrets of Home Staging" which will come in very handy for anyone preparing their home for sale.

Enjoy and let me know what you think.

10 Secrets of Home Staging

There is no surprise to anyone in this time in our country that housings prices have taken a hit across the entire board. Now as prices start to stabilize in many markets homeowners have to make tough decisions in regards to their financial future. Many homeowners have been forced to sell their home at a loss, this may be the result of a job transfer or just a change in housing needs. 

Is this the right choice? Well this depends on an individual's situation. Sometimes selling is the best choice. Not everyone can afford or want to take on two house payments. Usually if the homeowner purchases their next home at a good value then they can potentially make up any loss they had incurred on their home sale.

What happens when selling is not the best option?

A term which has recently come about is "Accidental Landlord". These are homeowners who have chosen to rent out their previous family home to tenants rather than sell the home at current market value. This can be a very profitable decision for homeowners but it does not come without its risks.

There are three important principles to keep in mind to avoid potential risks:

Landlord Tenant Laws:  The particulars of the landlord tenant legal guidelines by which you have to comply will differ from state to state, but the standard purpose of them is pretty much similar nationwide. These laws are created to shield the interests of each the landlord and the tenant evenly and fairly.

Property Condition:  Landlords need to maintain their rental units in good, livable condition, and the laws in just about every state and municipality are going to differ with regards to what is livable and what is not. To be a respected and successful landlord, you truly ought to be well versed in the zoning and building standards of the city that the housing units are in.

The Tenants:  You want to ensure to always select great individuals to move in to your rental units. Executing an extensive credit and criminal background check on prospective renters is the primary means by which most landlords pick quality tenants.

By understanding and obeying your state's landlord tenant legal guidelines and your local municipality's zoning and city program regulations, and following best-in-class tenant screening practices, you can dramatically minimize potential risk.

If you are weighing the pros and cons of leasing your home give me a call. I would be happy to help you decide what your options are in today's market.

Ameren looks to reward customers for energy efficiency through the CheckMe Plus Program. The program encourages residential electric customers to have existing cooling systems evaluated and tuned-up to manufacturer's specifications. There are five ways homeowners can participate in the program:

• Replace an underperforming central AC or heat pump system.
• Test and seal duct work.
• Upgrade a blower fan.
• Replace a heat pump thermostat.
• Get an AC tune-up.

The largest payoff comes from replacing an old Heating Ventilation Air Conditioning (HVAC) system landing you $650 to $850 in rebates. First, Ameren customers must have one of the electric utility's certified contractors test their home's AC to evaluate the system's air flow level, refrigerant level, and operating efficiency. If the contractor determines that the home's AC is underperforming, then the homeowner can replace it and receive an instant rebate off the cost of a new system.

The next largest payoff is having your HVAC duct work tested and secure any leaky ducts. Having this simple service performed can score you a rebate of $200 to $300 while reducing your heating and cooling costs year round. 

You can add another $200 by upgrading the blower motor on your home's heating and cooling system to a Concept 3 motor. A Concept 3 motor allows the fan to automatically switch from dehumidifying to cooling, depending on the climate.

Another $25 to $75 can be added to your total by installing an outdoor lockout thermostat in place of your current heat pump thermostat. This new thermostat will prevent a back-up heat source from running when it is not needed.

The finally and most overlooked rebate comes from having your home's AC tuned up to manufacturer's specifications by a certified contractor can score you $25 to $55. This is a regular maintenance item is overlooked by a large percentage of homeowners and can greatly increase the efficiency and longevity of you system.

For more information on Ameren Rebates check out their website:

AmerenUE

The question "Do I need an Agent for New Construction?" comes up often. In fact the reason for this blog comes from a conversation my wife had when picking up our son at daycare. My wife and I were fortunate enough to build our first home. Not in the industry at the time I thought nothing of using the builder's representative. Through the building process a laundry list of problems developed and although the representative was some what helpful, their commissions come from the builder. Looking back now my best interest was never truly looked out for and many issues could have been avoided if only I had someone knowledgeable in my corner.

Going back to the original question, the simple answer would be "No, you don't need an agent for new construction?". The builder will happily keep the buyer's agent commission which has already been built into the price and consider it a bonus. There are many people every year buying new construction homes without their own buyer's agent having little or no problems through the transaction. But if you would like the added security of an agent on your side at no cost to you, I feel it is the right call. Just remember to choose an agent you trust and someone who is familiar with the construction process.

Top 10 Reasons To Use Us When Building a Home

1. We represent you in negotiations. The builders host agent represents the builders (sellers) interest.

2. We have significant experience with all aspects of "creating" your new home. On average, it takes a buyer 3 new homes to build the "perfect home". There are so many details to attend to. Having been through many builds, we can help you design a home best fitting your needs and allow you to focus your resources (money) on the most vital options.

3. Most builders and builders representatives will be freer with helpful information to a Realtor. This includes items such as discounts, special promotions, and pricing information regarding your home. They not only want your business, but it's their business to cultivate a positive relationship with the Realtor community.

4. By making the host agent or builder aware that you have a professional representation, you put them on notice. They know someone in the industry will be looking out for your best interest.

5. We will follow your build closely. Mistakes can happen during the construction process and it is to your benefit to catch them early on.

6. Without representation, should you have a problem, your only recourse is through the host agent or builder. Having someone skilled in negotiations and the process can successfully facilitate a resolution.

7. Over the years, we have experience dealing with home builders in a wide range of prices. We "talk the talk" and "walk the walk". We are well known and respected in the closely knit builders community.

8. With our experience and relationships with multiple builders, we can compare pricing on options and make sure you're not paying too much for those add on items that can add up to a lot of money.

9. We know what to look for on the final walk through. This is a critical activity to make sure you are getting what you're supposed to be getting.

10. Buyers representation is free. We are paid by the seller. It's a win - win experience for you.

If you are considering Building, Buying, or Selling feel free to give me a call and put me to work for you! Mike Galbally ~ (314) 479-8583

March showed a significant increase in buyer activity. The small rise in interest rates may have caused lookers to become buyers in an effort to lock in lower rates. Looking ahead we have only seen the trend increase going into April. 

Sellers, you have an excellent opportunity to sell your home this season, that is if you have the right pricing strategy in place from the start! Studies show that the longer a property stays on the market, the less the seller will net upon the sale. So often I hear sellers say we can test the market and that can be a viable selling strategy. Although you should realize that your home is only new to the market once. Every year buyers are more and more knowledgeable of the market. Your best course of action is to come on the market strong, make sure your in control not the other way around.

It is very important to price your property at a competitive market value at the signing of your listing contract. The market is so competitive that even over-pricing by a few thousand dollars could mean that your house will not sell.

An Overpriced Home:

~ Minimizes offers
~ Decreases agents response
~ Limits qualified buyers
~ Decreases showings
~ Decreases prospects
~ Limits financing
~ Wastes advertising dollars
~ Nets less for the seller

When you are ready, contact me today for a personal market value analysis of your home. No hassles or obligation - just honest advice on how to get top dollar for your home!

I'm often asked the all too common question in today's real estate market, "Is now the right time to buy a home?" Some clients are concerned about the possibility that home prices may continue to fall. Home Buyers often treat their home like a stock, nobody wants to get stuck paying too much for a stock. These home buyers are assuming that the best course of action is to wait for the bottom in the market and then buy. Hey who blames them, wouldn't you want to purchase your home at the cheapest possible price! The problem with this approach is that you don't know where the bottom is until its in the past, in other words you missed out!

If home prices were the only factor you had to consider in determining your cost of ownership then the previous approach may be the best. There are a couple more factors to consider while determining if now is the right time to buy. Interest rates and mortgage financing availability are two important considerations. 

Your monthly mortgage payment is a combination of principal and interest. Lets consider some possible scenarios home buyers may encounter in the near future. If home prices in some areas were to continue to fall slightly but interest rates were to rise, it could cost you significantly more over the life of the loan to purchase the identical home! Ultimately interest rates will play a pivotal role in the cost of home ownership. Even though interest rates have risen slightly in the last six months, remember they are still at historic lows.

The best words of advise I can give my clients is "Remember a home is a long term investment. The market may go up, it may go down but over the long term Real Estate will always be a strong investment." While a home is probably one of the biggest investments your family will make, remember it is the center of your personal life. I feel a home should reflect your personal taste, and as it may be great to have a large home in a prestigious subdivision, its also important to be financially comfortable. 

If you choose to look at the bigger picture of home ownership, it may be in your best interest to lock in today's relatively low interest rates and low home prices. Although taking the gamble on the hope for further reduced home prices can be very tempting, purchasing now in today's buyer friendly market most likely will be the right choice for you and your family.

Please feel free to give me a call if I can be of any assistance in determining how much home you can afford in today's market.

While winter offers beautiful scenery and lots of fun especially for your kids, it can also be one of the most dangerous seasons. One of the main reasons is heating your home poses many safety hazards. The way to prevent potential hazards is to be prepared. Here are some easy tips to help keep your home safe during the months of winter.

~ One of the most vital home safe tools is a smoke detector. You should install multiple smoke detectors on each floor throughout your home especially near bedrooms. Smoke detectors should be changed every 10 years per manufacturers recommendations. To ensure your detectors work properly at all times, you should check them at least once a month and switch out batteries every year.

~ Just as important but often over looked safety tool during the winter months is a carbon monoxide detector. While using a heating source within an inclosed space, the risk of carbon monoxide contaminating the air increases. 

Just as with smoke detectors, you should install carbon monoxide detectors near bedrooms and on each floor of your home. If your carbon monoxide detector goes off, you should reset the alarm, call the fire department, and move outside to fresh air.

Know the signs of carbon monoxide poisoning. These include headache, fatigue, shortness of breath, and dizziness. If you experience any of these symptoms you should seek medical attention.

~Safety tips for a fireplace or wood-burning stoves. Your fire place or stove should be inspected and cleaned including the chimney connection and flue every year before use.

When you have a fire burning you should have the flue open and have a sturdy fireplace screen in place to protect the surrounding area. Only burn untreated wood in your fireplace as anything else can result in burning pieces floating out of the chimney. These pieces could ignite your roof, your neighbors roof, or trees surrounding your property. 

If you are using a wood burning stove be sure it is placed on an approved stove board. This will protect your floor from heat and coals which could ignite the floor.

Be Safe this Winter!

Most of all enjoy this wonderful time of year with Friends & Family!