Top Agents do not sit back and “hope” things get better they create there own successes. No one is going to offer a golden lead or referral that will close itself; it still takes effort to get the results you want. Obviously it is easier to watch someone exercise then it is to exercise yourself. Watchers continue to wish they were in better shape and are envious of the people who are exercising and are reaping the benefits. The same can be said about a sales cycle. The watchers or the campers might have great ideas but do not exert enough energy to see them through and are envious of the climbers that are performing the necessary functions and have the discipline to achieve there personal and financial goals. 

In a market that is constantly evolving it is important to be a person of action not the spectator. All top producers started at the bottom and their successes were earned not given.

Be a climber in 2011 and never look back!

Realty Trust Company

Being in Real Estate I talk quite often to top producing agents that specialize in various areas of the St Louis real estate market.  It’s amazing how often clients ask us about the St Louis real estate values, foreclosures in St Louis, and how short sales have a negative effect on St Louis property values. 

Here are my thoughts on the general St Louis market.  Yes times have changed! Perhaps the current financial and housing market is moving society back to the days when there were mortgage burning parties.  Parties when a happily married couple would invite their closest friends and family to their house to celebrate their accomplishment of finally paying off their mortgage.  They would all stand around the fireplace and watch the happy homeowners throw the paperwork from their mortgage (probably taken out 20 or 30 years earlier) into the fire and watch it go up in flames.  We all dream of simpler times, to the generations before us, there were not a lot of loan programs to choose from, fixed rate options were the only options.  There was no such thing as credit scores or even credit card debt.  Google and Yahoo were sayings you might say with a soft voice to try and make a baby smile.  True times have changed, let’s put things into perspective. 

In the early to mid 1980’s a typical family was earning about $47,000 a year which was a nice household income 30 years ago.   An interest rate for someone with a great credit rating and strong income ratios was a whopping 18% and people would brag about it at the water cooler at work.  This family could qualify for a 90,000 mortgage which would buy a nice home.

Now let’s compare a similar scenario today.  In 2011 the average household income is approximately $65,000-$85,000 a year. (50% increase in wages since 1980) With interest rates near 5%, the same family can purchase a 350,000-400,000 home. (Over 400% increase in home affordability)  

So the next time you hear someone talking about St Louis real estate values think of how affordable our homes in the mid west, especially St Louis are right now.   

St Louis continues to enjoy stable home values, combined with low rates, and a good inventory of homes for sale by motivated sellers.  2011 may very well be the best buying opportunity we may see in the next 20 or 30 years.

Many first time home buyers are looking for a deal on a home, and are attracted to the opportunity to get at “deal” on a short sale.  If you are looking for a home, it is important to understand what a short sale is, and if it is right for you. 

Why are short sales popular in St Louis?

St Louis like many cities has seen a decrease in home values in the past two years.  Although not as large of a decline as most cities, the St Louis metro area has generally seen a 10 to 15 percent decline from the market high in 2007. 

A short sale is when the seller owes more on the property than it is currently worth.  In order for a short sale to take place, the owner must demonstrate that they can no longer make the payments, and do not have any liquid assets to keep making the payments.  Not ever property owner will qualify for a short sale just because their property is worth less than their mortgage amount.  

Buying a home as a short sale is not for everyone.  True, if you are a savvy buyer, have patience and a good realtor, a short sale is one of the ways you can buy a home in St Louis below market value.    

Short sale Buying Facts:

SHORT SALE OFFERS. The higher the offer the better your chances of getting the offer accepted from the bank.  In St Louis, it is my experience that offers that are for 90% of the current values are generally accepted from lenders.  We have closed deals for buyers below this percentage,  however those are typically in areas of St Louis that have had more rapid decline in home

Tip: Throughout St Louis, Manyshort sales and bank owned properties are purposely marketed at below market prices.  If it is too good to be true it probably is.  This tactic is done with the intent to create a buyer frenzy, multiple offers, and sale prices back to the true market value.  It’s ok to pursue these properties, however let us help you set the maximum amount you want to pay for it, helping you keep the emotional level in check.

Will there be multiple offers on the property? Like any purchase, Buyers should assume there may be multiple offers even in this buyers market we are in.   If you really like the home, be prepared to present a decent offer of what the home is worth to you.     We can help you analyze what that offer is based on the homes price, days on market, and other factors.

What is the right price to offer on a short sale?  Once again, the right price is what a buyer is willing to pay for the home in today’s market.   We can help you analyze all the comparable homes in the area establishing a fair value for the home you are interested in. 

Will the bank accept my short sale offer?

There are many factors that a bank will look at when they review our offer.  They will typically consider the condition of the existing loan,   the properties condition, the strength of the offer, closing time, and general conditions as the offer, such as price, financing, and other contingencies.   Don’t worry; we will help you put together a compelling offer that the bank will accept.

Is there any warranty with a short sale home..

It is common throughout the St Louis market for both Short Sales and Bank foreclosed properties to be offered in their current as is condition. This as is condition generally means that the seller and lender will not make any repairs to the home prior to closing.   However we always recommend that you get a building inspection, even though the seller will not pay for any corrections to the home.  You want to know what you are buying, and if there is something major wrong with it, you need to know.  We will help you with this process, and have several inspectors we recommend.  Importantly, we will help you structure the purchase offer so you have a right to an inspection, and ability to cancel the contract if you find something major wrong with the home.   

For more information on buying a home as short sales, foreclosure or finding unlisted bank owned properties, contact me directly

Jeff Camilleri – 314-480-3801

This lovely executive 2 story home is for sale in south county missouri.  You will love this beautiful home in sought after Meadows of Quail Creek. Conveniently located at the end of a quiet tree lined cul-de-sac with views of the subdivision lake. Updates galore are found throughout the 4200 square feet of living area! Updates include newer roof, energy efficient furnace and AC, Luxurious kitchen featuring granite counter tops, professional range with additional in wall oven, vaulted ceiling with skylight, five updated luxurious bathrooms, beautiful four season room with panoramic views of the private back yard, and a rear entry garage. There are four large bedrooms all with hardwood floors with the master suit featuring vaulted ceiling, walk in closet, and large luxurious master bath with separate tub&shower. Main floor family room features wb fireplace, custom book cases and beautiful bar. Lower level offers 1100 additional feet of living area,full bath, second family room, and additional sleeping or office area. Hurry, dont miss out on this great home!

Click here to view the embedded video.

Call Owner/Broker Jeff Camilleri at 314-480-3801 for additional information and to schedule your private showing.

View Property Features                                          View MLS Printout

The numbers keep changing depending what report you listen to, even in conservative st Louis,  home values in most of the area have decreased slightly,  with areas in St Charles and pockets that were overbuilt  more substantially   If you are in the market for a new home,  a short sale may be attractive to you.

First let’s understand what a short sale is.  A short sale is where a seller agrees to sell their home to a new buyer for an amount below the seller’s current loan value.  The second part of the agreement is that the bank or banks that have the loan on the property must also agree to the sale,  as they will need to write off or take a loss on part of the loan amount in order to approve and close the transaction.

Few things to think about if you are in the market for a short sale in st Louis.

• Short sale transactions typically take 4-6 months to close from the time you have a contract with the seller
• Short sale transactions quite often do not get completed due to a variety of reasons including:
  • The lender not approving the seller financially for the sale
  • The value of the contract being too low and the lender not willing to sell for a loss
  • Length of time it takes to complete, as often buyers get frustrated and walk away, or sellers simply let their home fall into foreclosure.

If you are looking to buy a new home or investment property in St Louis,  consider all your options wisely.  Whether it is a short sale, foreclosure, or straight sale.  Talk to your agent about what is available in the market,  and what will meet your individual needs.