Sunday, September 07, 2014

Real Estate Trends

Real Estate Trends are defined by consistent patterns or change in the most general direction of the real estate industry. This observable fact can be a result of a change in mortgage rates, the economy, and other non-fundamental and fundamental reasons.

 A distinguished real estate agent knows the market, knows what new developments are planned, they know the transportation and the schools, and they know locations and history. With the ever evolving change in real estate, realtors are constantly doing their homework to stay ahead of their competition in the game.

3 Important trends a skilled realtor looks for are.

Local Pricing
Studying the local price trends in the area, should be first and foremost. Knowing the prices of homes in one area or another, is vital when working with buyers budgets.

Catalyst
Investing in a growing community can be very profitable, looking for signs that a community is set for growth, signs such as new roads, and new schools being built, and beginnings of construction in and around major roads all are major tips. A growing community most times is extremely attractive to new homebuyers.

School Rankings
Sharp eyed realtors keep up to date of the ranking of the schools in and around their area. Areas with high rankings, and schools moving up the rankings are all desirable to parents looking to buy homes near school districts.

These are just some of the trends realtors in Saint Louis, Missouri, and other areas keep up to date with. A great realtor is always researching, and collecting data to provide the buyer with unsurpassed knowledge of the real estate market.

Saturday, September 06, 2014

Pre-Approval letter tips

Getting a mortgage qualification letter prior to looking for a new home with an agent is an essential first step in the home buying process.
Besides providing the home buyer with an idea of their monthly payments, down payment requirements and loan program terms to budget for, a Pre-Approval Letter gives the seller and agents involved a better sense of security and confidence that the purchase contract will be able to close on time.
There is a big difference between a Pre-Approval Letter and a Mortgage Approval Conditions List.
The Pre-Approval Letter is generally issued by a loan officer after credit has been pulled, income and assets questions have been addressed and some of the other initial borrower documents have been previewed. The Pre-Approval Letter is basically a loan officer’s written communication that the borrower fits within a particular loan program’s guidelines.
The Mortgage Approval Conditions List is a bit more detailed, especially since it is usually issued by the underwriter after an entire loan package has been submitted.
Even though questions about gaps in employment, discrepancies on tax returns, bank statement red flags, and other qualifying related details should be addressed before a loan officer issues a Pre-Approval Letter, the final Mortgage Approval Conditions List is where all of those conditions will pop up. In addition to borrower related conditions, there are inspection clarificationspurchase contract updates and appraised value debates that may show up on this list. This will also list prior to doc and funding conditions so that all parties involved can have an idea of the timeline of when things are due.

David Sharp
NMLS # 280482
123 Mortgage Team
7514 Big Bend Blvd
St. Louis, Mo 63119



FLAT FEE MLS - WHY IT WORKS!

What is Flat Fee MLS do you ask?

 Well it is like an à la carte item on the menu for real estate agents or brokers, these agents provide you with the benefit you receive with hiring an agent without the in-depth contract. You receive maximum exposure without being subject to open houses, tours of your home to potential buyers day and night, unless you choose to and you are still in complete control.

Flat fee MLS is a great choice for FSBO (For Sale by Owner) who want the exposure that a real estate agent can provide without the exclusive right to sell contract that comes along with it.

90% of houses on the market today that sell, have been listed under MLS. As a FSBO it is crucial to have exposure in order to sell your home, when you have a MLS house listed, you have the ease of mind that your listing will be displayed at the top of thousands of FSBO homes making it visible to more potential buyers, also you are still in complete control of negotiating the sales price, and when you let potential buyers tour your home.

80% of homebuyers go through a realtor, so as a FSBO using the flat fee MLS you are providing an advantage over non MLS listing, due to the fact that realtors and their buyers use MLS to search for houses throughout the extensive database, making it easier to find your home for the right buyer.

When you list on the MLS your home is also syndicated out to tons of other websites like
Realtor.com, Zillow, Trulia, Yahoo Real Estate - just to name a few.

With the flat fee MLS listing you save money.  Use these extra proceeds to lower the price of the home and get more hits to your listing - or simply keep more of your hard earned profit in your pocket!

Get your home listed today!  www.lauralei.net

Tuesday, September 02, 2014

Pending Home Sales Much Stronger than Expected

The National Association of Realtors (NAR) reported that July Pending Home Sales increased by 3.3%, the consensus estimates were projecting a much smaller gain of only 0.6%. Pending Home Sales are homes that have a sales contract in place and are in the process of closing but have not yet closed.

They have now risen four out of the last five months.

Lawrence Yun, NAR chief economist, says favorable housing conditions are behind July’s higher contract activity. “Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 2012,” he said.

“The increase in the number of new and existing homes for sale is creating less competition and is giving prospective buyers more time to review their options before submitting an offer.” Yun adds, “More importantly, steady job additions to the economy are helping family finances and giving them added confidence to enter the market.”
The two biggest head winds for the housing market have been job growth and inventories. Inventories were at historic lows for much of last year, so an increase of available homes on the market have helped sales to improve.

*All information furnished has been forwarded to us and is provided by thetbwsgroup only for informational purposes.

Monday, August 25, 2014

Tragedy in Ferguson

reposting this letter:

The Human Face of Tragedy
By Beth Braznell, 2014 President, St. Louis Association of REALTORS®

Our community has been rocked the last two weeks by the events in Ferguson. And make no mistake—this is a regional issue, not one we can confine to a few blocks in a northern suburb.

I went to Ferguson on August 19 to have lunch and make some purchases. The business community there is struggling. Jobs and livelihoods are at stake. I went not to take a political or social position, but to show support for the community. The repercussions of the violence in those few blocks are huge, and we will be feeling them for decades to come. Questions of justice, blame,
and truth will take years to sort out. My immediate concern is the effects on the people who live and work in the area.

The people in the surrounding residential areas have little access to food, prescription drugs, and other necessities unless they leave their neighborhood as the businesses along West Florissant are closed. Continuing demonstrations and protests are blocking streets and sidewalks.

Public transportation, on which many depend, is at a standstill. Many are afraid to go far from home, fearing that their homes may be damaged or violated. Some whose income depends on the businesses in their community are without jobs.Home healthcare workers are afraid to visit clients in the area, so vulnerable people are without the services they desperately need.

Church and community groups are working hard to fill the needs, but they need our help. The St. Louis Association of REALTORS® is collecting non-perishable food (in non-breakable containers), disposable diapers, pet food, cleaning items, personal care items, and school supplies at our
office to be distributed through churches and community assistance groups.

Donations may be dropped off:
Monday through Friday
8:30 a.m. to 5 p.m.
12777 Olive Blvd.
St. Louis, MO 63141

Tragedy invites opportunism. In the wake of highly publicized events come scammers, con artists, and fraudulent contractors seeking to take advantage of fear and uncertainty. Homeowners should be wary of people who urge them to sell now to avoid potential loss of equity. These people prey on ignorance, panic and fear, offering to take your home off your hands before its value plummets.

There will be long-term consequences. Already, some lenders are reevaluating transactions in progress. Insurance companies may raise their rates for vehicle and homeowner insurance. Property values may fall. The school districts will have more trouble meeting budgets. Businesses
will leave, taking jobs and opportunities with them.

We Midwesterners are strong, resilient, and generous. The reporters will go away, the boards covering many buildings along West Florissant will come down, and the hard work of recovery will begin on so many fronts. It has to be a regional recovery, for even if you don’t live in Ferguson, you are affected by the damage done there. Banks, insurance companies and other service providers will reevaluate their commitment to the
St. Louis area, assessing their risks. Potential new corporate citizens will think twice about the stability of our region. Housing and commercial opportunities may pass us by.

The community of Ferguson is rich and vibrant. Regardless of the events that took place there are people struggling to get to work, educate their children, and provide a decent place for their families to live. Let’s not let them fall between the cracks as we struggle with the mega issues of
social injustice.

Tuesday, July 01, 2014

Mortgage Rate Trends This Week

How Rates Move:
Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market.  This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events.  When MBS pricing goes up, mortgage rates or pricing generally goes down.  When they fall, mortgage pricing goes up.  Tracking these securities real-time is critical.  For more information about the rate market, contact me directly.  I’m among few mortgage professionals who have access to live trading screens during market hours.
Rates Currently Trending: Neutral
Rates last week improved slightly, as reported by Sigma Research. The improvment last week for the MBS market was +38 basis points, which may mean a slight improvement in mortgage pricing.
This Week's Rate Forecast: Neutral
According to Sigma Research, the market should be relatively unchanged until Wednesday when Janet Yellen speaks.  However, we are not expecting anything too dramatic from her.  Thursday's June unemployment report could be a market mover as well.  We have not changed the forecast from neutral due to the continued tight range in the market.
This Week's Potential Volatility: AVERAGE
Sigma Research says that there're a lot of market moving reports coming out this week that could cause higher volatility toward the end of the week.  The big report is the unemployment rate on Thursday and this could finish the week off going into the long weekend with big swings in the market. 
Bottom Line:
If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.