According to Forbes Magazine financially St Louis ranked number 3 of the 40 largest metropolitan areas based on appreciation, rental levels and vacancy rates.

Here are the top ten.
1. Houston
2. Austin, Texas
3. St. Louis
4. Philadelphia
5. San Antonio, Texas
6. Dallas
7. Charlotte, N.C.
8. San Francisco
9. Jacksonville, Fla.
10. Atlanta

Forbes magazine Maurna Desmond article

A “Short Sale” is when the sale of the property does not net the seller enough funds to pay the full mortgage and the mortgage company discounts the note.  These properties are often nearing foreclosure and the mortgage company would rather discount the mortgage than go through the costly and time consuming process to foreclose.  Purchasers should be aware that the seller in this situation usually does not have the final authority to accept a contract without lender approval.  Often the lender is slow to provide approval of the contract and many times the purchaser will not know until just before closing whether the bank will agree to the short sale.

The risks involved in purchasing this type of property involve paying for inspections and appraisal while there is no written commitment from the lender that they will agree to the sale.  If they do not close on the property then you will not be able to recover any out of pocket expenses.  Additionally if you are not an investor and you are planning to move into the property you may be changing your plans at the last minute.  This is perhaps easier for a single person who is currently renting than it would be for a family with small children that has already agreed to sell their current home.

The reward from the purchase of a short sale is achieved only if you purchase the property below current market value or of you really want that particular piece of property.  As stated above a short sale simply indicates that the bank is discounting the amount they are owed in order to facilitate the sale.  A property could be worth $90,000 and the seller owes $100,000 and the lender discounts $5,000.  It is considered a short sale even if you just paid $5,000 more than the property is worth.  If you purchase the same property for $85,000 then you just made $5,000 in equity for taking the risk.

Your real estate professional can help you minimize the risk and maximize the reward by including proper provisions in the purchase offer and by providing a market analysis of the property before you begin the process.

If you are in the market or considering a purchasing your first home you should consider the economic factors and market conditions.  Forecasters are telling us that mortgage rates will continue to fall slightly before stabilizing.  We hear regularly that the housing market is at or near the bottom and a turn around is likely to begin later this year. I think most would agree that housing values are depressed.  As mortgage rates fall you are able to acquire a mortgage at a very affordable rate. 

That means you have a perhaps once in a lifetime (certainly a once in a long-time) opportunity to buy a home at a discount and finance that home at an extremely low interest rate.  It’s known as Buying Power and today’s first time buyers have it.

Savvy buyers and investors are taking advantage of this buying opportunity.  We are already seeing multiple offers on properties that are priced well or below the market.  Take for example a property that sold for 168,000 just 2 years ago.  It was recently listed at $137,500 by the lender that foreclosed on the property.  There were competing offers.  The property needed clean-up and painting totaling approximately $3,500.  That’s a $27,000 discount from the market high of 2 years ago (more if you don’t mind painting).  Factor a low interest rate on the mortgage and there is additional savings.  If you have seen an increase in your earnings in the past 2 years you can factor that in the equation as well.  Keep in mind that this is just one example and not the normal discount you should expect in the Metro St. Louis market but I used this one to illustrate the opportunities that are available.

The truth about whether a home is a good investment.

Overnight Real Estate Rates Sink Further Inman News

Latest Housing Forecast from National Association of REALTORS

Housing Market Ready to Rebound?

Search the Metro St. Louis MLS database.  Tip: look for properties with reduced prices.

Do I qualify for a mortgage given the tightening guidelines?

The American Society of Interior Designers Foundation and the U.S. Green Building Council launched the nation’s first green residential remodeling guidelines.

The REGREEN Guidelines provide resources and tools to make home remodeling projects more environmentally friendly and energy efficient. The guidelines are organized into the 10 most common remodeling projects.
“Consumers overwhelmingly want greener homes, and the REGREEN Guidelines will help by showing them how,” Michelle Moore, senior vice president of the U.S. Green Building Council, said in a public statement. “The REGREEN Guidelines empower people with practical information about how to green projects ranging from kitchen and bath renovations to deep energy upgrades.”

The REGREEN guidelines include the major elements of any green renovation project, such as the site of the home, water efficiency, materials and resources, and indoor environmental quality.

“You can start greening your home without spending a lot of money just by getting informed,” Moore said. “Weatherization projects can save energy and lower your utility bills, which also reduce your Carbon footprint. Similarly, choosing low-VOC paints, flooring, and adhesives eliminates bad-smelling toxins and creates a healthier home.”

To access the guidelines visit www.regreenprogram.org or www.thegreenhomeguide.org.

— REALTOR magazine online and American Society of Interior Designers