Planning Ahead

Buying your first home can be a stressful, and sometimes scary proposition. However, it doesn’t have to be. Planning ahead is the key component to buying your first home. Since every home, every home purchaser and every contract to purchase is different, the process of educating yourself is not simple. Understanding the basics of purchasing a home can be found in multiple sources. Online sources are plentiful, as well as books. Beyond educating yourself, you must prepare yourself financially. First, get your credit report. This will be a key to getting the loan you need at a reasonable rate. A word of warning about credit reports — don’t be too hard on yourself. I once had an instructor that always used the phrase, “You don’t know what you don't know!” In other words, let the professionals take a look at your credit report before you decide you’re not worthy of a home loan. Despite the bad news about home loans, there continues to be a great variety of loans for the first time home buyer.

Powerful Buying Stategies (4 of 7)

Find the right property. Don't get pressured into making a quick decision. When you find the right home, you will know it. But on the other hand, have a realistic goal. Which means, don't look at 200 homes before you make a decision. If you see yourself not finding anything in your price range that you like, adjust your location and/or price range! Sometimes the first home you see, is THE home for you. But don't let an agent, a seller, or a spouse, push you into something you don't feel good about.

Powerful Buying Strategies (3 of 7)

Sell first. Clients often ask about what order they should approach a real estate transaction when they already own a home. Sell your existing home first — then buy. The property you want will probably not take a contingency offer based on you needing to sell your current home — especially in the current market environment. If you are emotionally attached to what you want to buy you won’t be as objective on selling your home. You may take less than it’s worth so that you don’t lose the other home. There’s nothing wrong with that as long as you understand the financial implications. Selling, buying, moving, researching and arranging your financing is a challenging project. Be prepared for a disruption in your normal daily life. Remember, it's only temporary and the effort will well worth the rewards of your new home in the end.

Powerful Buying Strategies (2 of 7)

Get pre-approved. Find out what you can afford and check out all your options. Meet with the various experts you need to acquire all your financial facts — a lender, your tax advisor, investment broker, etc. Knowing exactly what you can spend will eliminate time spent looking at properties you can’t afford. Not to mention, when you find the right property you can make a “clean” offer. Sellers are more likely to respond favorably to clean offers and pre-approved buyers. As a buyer's agent, I always submit a offer with a pre-approval letter. The offer is nearly worthless without one. Additionally, as a listing agent — the agent helping my clients sell their home, I would advise against getting involved with an offer that was not accompanied by a pre-approval letter from a reputable lender, mortgage broker or bank.

Powerful Buying Strategies (1 of 7)

In a perfect world, it would be easy to always be objective and make rational decisions based on sound information. But in reality, emotions and timing often have a big effect. Sometimes the best you can do is to set the stage so that you minimize the subjective influences. Give yourself power and control. Don’t find yourself in the position of “having” to buy and doing so in haste. Here are 7 powerful buying strategies to help you get started!

1. Acquire the services of a Realtor® who knows the market. In this age of the internet, buyers have some of the same access to data as agents have. However, an experienced buyer’s agent has the ability to interpret the data and apply it to your unique situation. Realtors® do more than show homes and write contracts. They study market trends and observe area fluctuations. You are thinking about your needs now, but your buyer’s agent is thinking about both now and in the future when you are ready to sell again.

Finding YOUR Ideal Neighborhood

For most first-time homebuyers, choosing a neighborhood is the most difficult part of the decision to buy a home. The first thing you should do when buying a home in St. Louis is to prioritize various neighborhood features, then start looking for homes in areas that match most of your criteria. Consider these factors: Transportation - Are you close to Metrolink? What is the length of your commute to work from your neighborhoods of choice? Do streets get clogged at rush hour? In a consumer study, 79% of respondents said that a top priority in deciding where to live is having a commute time under 45 minutes. 75% also wanted easy access to highways. Visit the neighborhood at different times of day and night and talk to as many local residents as possible. Are there place of interest nearby... yes, like Starbucks for starters! You'll also want to consider nearby schools, restaurants, places of worship, parks, etc. 72% of survey respondents ranked sidewalks and places to walk as a top priority when considering where to live. Once you've prioritized all your neighborhood amenities and features, you'll find it's much easier to focus your home search. Remember, the neighborhood is usually as important to the value of a home as the size and structure of the home. For more information about buying your first home and to receive the latest MLS real estate listings, please contact me by e-mail at: jeff@naertrealty.com. Or call me direct at: 314-913-9771. Also, visit my other blog: St. Louis Hills Living.

Home Sales Slow... Again!

Sales were off 0.3 percent in May and hit their lowest level since June 2003 when the pace was 5.94 million units. This is good news for buyers. The inventory of homes for sale rose 5% to 4.43 million units at the end of May which represents nearly 9 months' supply at the current sales pace. That is the highest months' supply since June 1992. May saw the 10th straight month in which prices dropped from year-ago levels, with the national median price down 2.1 percent to $223,700. Past reports indicate that 2007 will be the bottom of the housing slump and sales will return to normal levels in mid-2008.

How does this effect a first-time homebuyer in St. Louis? As with most of the country, St. Louis home sales are affected by the massive number of new homes being built in the St. Louis area. Drive anywhere; St. Charles, Wildwood, Oakville, even within the St. Louis city limits, you'll find new construction. In St. Louis, we have the added issue of loft spaces being built in and around downtown St. Louis. For buyers, the selection has never been greater. For sellers, it's a knock down, drag out fist fight with their competition. This is why you're seeing more homes stay on the market for a longer time. That being said, it's a great time to buy a home; more selection and less pressure to make a decision. I will say this though: The good properties will still go fast. The properties that may need work or don't show as well will sit.

Even if you're just thinking about buying a home, it's never to early to start learning the process and understanding the market. My home buying program free -- no transaction fees! Contact me to receive MLS listings sent directly to your e-mail inbox. E-mail me at: jeff@naertrealty.com

Reading The Contract; A Real Life Story

Buying or selling a home can be a sometimes, time consuming process. There's no doubt about it -- dealing with a real estate transaction will divert your everyday schedule. But doesn't one of your largest assets deserve a little attention of your time and effort diverted to it? I'm reminded of a real life issue I had several years ago with a seller. (yes, this story applies to home buyers too!) We were in the middle of the negotiation phase and I needed to discuss our next steps, counteroffer strategies, etc. I arrived at the seller's home in the evening. We sat down and I began to go over the issues at hand. Within a few minutes, the seller jumped up and explained he had some extra work he needed to do on a friends house and had to leave. He was in construction and often did side jobs in his off hours. I think it's very commendable to do extra work. However, I was a bit stunned considering I had a deal on the table worth over $150,000! I continued to get through my strategies and fast as possible as we moved out the door. My point is this: $150,000 vs. $25 per hour. In other words, to him, making $100 that night was more important than the $150,000 deal we were negotiating. Really? Even though I stressed the importance of reading the contract, I have a pretty good idea that he NEVER read the contract. Additionally, and as I do with all my clients, I suggest they seek an attorneys counsel if they do not fully understand the legal obligations at hand. In the end, the deal worked out and everyone was happy. He simply DID NOT understand the GRAVITY of the real estate contract. And yes, the contract is boring and it looks intimidating. But if you really put some time into reading it, you'll realize you DO understand it and will have more confidence and piece of mind when sign papers associated with your real estate transaction. I hope my past home selling client doesn't sign anymore legal documents without reading them... for his sake!

Read The Contract!

One of the biggest mistakes you can make as a first-time homebuyer is not reading the contract. It is true that you may not understand every bit of it. That’s OK! But failing to protect your soon-to-be asset by reading and getting grasp of your legal obligations is NOT a good idea. It’s the first step to understanding what’s required of you, the buyer, as well as the seller. Your buyer’s agent can be a great resource in explaining each section and what it means. You’re also welcome to contact an attorney for an explanation. You’re signing a binding, legal document. Make certain you understand the conditions of the contract. Buying a home is a time consuming process but well worth the rewards it will provide. If you’re considering purchasing a home this summer or even next summer, contact me to get the process started. You can reach me at 314-773-5700 ext. 53.

Getting Your Credit in Shape

The key to buying your first home is getting your credit in order. I'm sure you've heard it over and over and it can be a scary thing if you think your credit may not be in the best of shape. However, there are ways to repair your credit and get on the road to all the great benefits to owning a home. The biggest problem is that most consumers don't know how the system works. You can find a ton of information on the Internet pertaining to debt relief, debt consolidation, repairing your credit, and so on. BUT, no one really talks about what the techniques are that will put into a position to repair or raise your credit score higher. There is a product called Credit Secrets Bible™ written by Terry Price and Ryan Wright. This product not only reveals how to repair and raise your credit score, it specifically address how important your credit score is to you buying your first home. But it's not just about buying your first home, it's about how much you'll pay in the long run. If you go to their web site (Click Here) you'll see an exact example about three quarters of the way down the page. It shows you the total interest you would pay on a $200,000 loan over the term of 30 years with a bad credit status as compared to a great credit status. In short, the result is with bad credit and paying 8%, you'd pay $328,310.49 for your $200,000 home with the interest included. With great credit and paying 6%, you'd pay $231,676.38 in total. Do the math. It's a difference of $96,934.11! So, you can see the difference it would make to you, your family, your retirement, your lifestyle and so on. Start learning the secrets today. Follow this link to Credit Secrets Bible™.

7 Powerful Buying Strategies

New report just released discusses the 7 most powerful strategies you can use when purchasing your first home. The report covers the importance of getting pre-approved by a bank or reputable lender. Knowing exactly what you can spend will eliminate time spent looking at properties you can’t afford. Not to mention, when you find the right property you can make a “clean” offer. Buying your first home can be an emotional experience. This report touches on how to keep your emotions in check and how to find the right one for you. Sometimes it’s the first home you see. But don’t let an agent, a seller, or a spouse, push you into something you don’t feel good about. Setting priorities in critical. Decide what is most important in your next home and put it into perspective. Prioritize your list by location, price, neighborhood, square footage, school districts or amenities. Remember that some things can be changed. Floors, wall colors, kitchens and landscaping are all changeable. If they are not perfect, they can be made to suit your individual tastes. However, the location is forever. The report also covers how to and when to start working with a qualified agent. Additionally, my report reveals how to NOT pay a transaction fee of any kind! Get the full report, "7 Powerful Buying Strategies", by calling my special report hotline at: 1-800-716-1569 extension 689.

Acorn Housing Program

Money is obviously a biggest hurdle to buying your first home. Knowing where to go for a fair interest rate and loan terms is half the battle. I recently had a first-time homebuyer purchase their home using the Acorn Housing Program. The overall mission of the Acorn Housing Program is to increase homeownership opportunities. A few key points regarding this type of program: 1. No PMI insurance. This is HUGE. Most first-time homebuyers fail to calculate PMI insurance when they're considering buying a home. On average, this will save you about $60-80 off your monthly payment. 2. No minimum credit score. Now, that doesn't mean they will allow the loan if you have credit problems. However, the Acorn Program may give you just the edge you need. AND 3. This program typically has below market rates on a 30 year conventional fixed rate loan. So if you do have some credit problems, you won't get sacked with a high interest rate. Call or e-mail me to learn about this program. You may find that you CAN purchase you first St. Louis home and start gaining home equity and tax advantages this summer!

Real Estate Jobbers Course — For Beginning Investors

Real estate is the greatest wealth building investment there is. More than ever, many first-time homebuyers are searching for, not only a home to live in, but something they can work on themselves to increase the value of the property. This is very common in South St. Louis City — affordable homes in established neighborhoods that need updates. As always, getting educated is the subject of real estate is essential to your success. Throughout this blog, I'll be featuring information products that can help you become more knowledgeable in the subject of real estate. Today's resource is in the form of a downloadable information product. Learn more at: Real Estate Jobbers Course

The Benefits of Homeownership 3

Financial Predictability
When you buy a home with a fixed-rate mortgage, you have more predictability over future housing costs. If your interest rate never changes, the amount of your payment never changes. This situation is often better than paying rent since monthly rent payments tend to increase over time.

Pride of Ownership
The satisfaction from owning your own home can make you feel connected to your neighborhood in which you live. Few accomplishments in life are as enriching as owning your own home.

Decorating
When you own a home, you are free to redecorate, remodel and accessorize a home to suit your own taste and lifestyle. The benefits are not only that you have the right to make improvements but that the value of those improvements becomes yours as well.

Privacy
While there are limits on the access that landlords have to property, almost all landlords can access your property for necessary maintenance. Homeowners have much stronger property rights and have more privacy.

Working with a buyer’s agent
When you decide homeownership is right for you, your first step is to hire a buyer’s agent from a reputable real estate agency. Acquiring the services of a buyer’s agent means that you have a licensed real estate agent representing you during the homebuying process. Sellers have always been represented by an agent, but traditionally buyers have not. Now, you can have your own agent guiding you through the process of locating and negotiating the best price based on up-to-date pricing information. As the buyer, you are entitled to the same representation and level of service as sellers. Additionally, there is no cost to the buyer for the service of a buyer’s agent; the buyer’s agent is paid from the selling agent’s commission.

The Benefits of Homeownership 2

Appreciation
Appreciation is the value of your home increasing to the point where you can sell it for more than you purchased it for. The difference in value is called appreciation. Traditionally, the St. Louis area has seen moderate appreciation. However, no one can guarantee if a property will appreciate in value.

Build Equity
When you own your own home, you invest in your financial future instead of a landlord’s financial gain. Most homeowners pay for the property by obtaining a mortgage. As you pay off that mortgage, your equity builds and you gain an increasingly larger share in a valuable asset.

The Benefits of Homeownership 1

Are you trying to decide whether or not this is the right time for you to purchase a home? Take a few moments to consider the benefits of homeownership.

Tax Benefits
The cost of home mortgage interest and property taxes are usually tax deductible. For many homeowners, they see tax benefits as the number one financial benefit of home ownership. Depending on your individual circumstances, you may save a considerable amount in taxes. Of course, you should always consult a real estate professional, tax specialist or investment advisor about your financial position.