Why Use A Real Estate Agent?

In an effort to avoid paying commissions to a real estate agent, many people opt for the for sale by owner (FSBO) route.  While this may seem like an enticing option for most homeowners, the reality can be much darker.

Real estate is fraught with legal complications.  Buying and selling can be quite stressful, especially if you don't know exactly what you are doing.

First of all, real etate agents are trained in all legal matters involved in the sale of real estate.  Sometimes, these sales go smoothly, but sometimes, clauses, liens, and contingency contracts can make them very complicated.  It is hard to know when life is going to throw you curve-balls.  The best thing to do is be prepared, and a real estate agent comes not only trained in theoretical real estate cases, but, ideally, with a whole history of experiences from which to draw from.  This makes them extremely helpful when negotiating the legal aspects of buying or selling.

Even if your home sale goes off without a hitch, all the paperwork involved can be overwhelming.  What are you signing?  Sometimes it's hard to tell when the language is full of legal and industry terms that the average person just isn't familiar with.  Your agent can translate these forms, helping you understand what each step in the transaction is all about.

An agent is connected to a whole network of other agents.  This means that weather you are buying or selling, an agent or broker can help.  They have a network of other professionals to market your home to.  They have clients waiting to buy homes, and colleagues with more clients, waiting to buy more homes.  Some homes barely need to be marketed because there are buyers already waiting to purchase just that type of home.

Many people think they can only find what they need themselves, but a good real estate agent will be able to listen to your needs.  A good agent knows the market, and knows the area, and may be able to suggest places you didn't even know existed.  They are also familiar with local services, and can recommend lawyers, notaries, inspectors or even contractors they personally know do good work.

Overall, an experienced real estatet agent or broker may cost a little in commission, but the service they provide is worth while.  If someone can help you not lose money, or save you a lot of time, aren't they worth what you paid them?

Homes: Rent or Buy?

Owning your own home: an idea so popular it's known as the American dream.  But as prices fall and foreclosures rise, for many it's become a nightmare instead.

How do you know whether renting or owning is the way to go?

Stacy Johnson looks at some ways in this video (runs 1:18).

If you have questions about whether your particular financial situation would make it better to rent or buy, contact us.  We'll help you determine which is right for you.

Owning vs. Renting: Still Not Even Close

U.S. house prices "likely would have to fall considerably" to return to a normal relationship with rents, says a study by one former and two current Federal Reserve economists.

The study, which doesn't necessarily reflect the views of Fed policy makers, suggests prices would have to fall 15% over five years, assuming rents rose 4% a year.  House prices would have to fall further if the adjustment took place more quickly.

The study tracks rents and home prices back to 1960 and found annual rents fluctuated at around 5% to 5.25% of home prices until 1995.  At the end of that year, the average monthly rent was about $553 (or about $6,600 a year) and the average home price was about $134,000.

But starting in 1996, home prices started to grow much more rapidly than rents.  By the end of 2006, they had more than doubled to an average of $282,000, while the average rent had risen 48% to $818.  That drove the annual rent/price ratio down to 3.48%.

That means the rent/price ratio is about a third below its long-term average.  To return to normal would require some combination of falling prices and rising rents.  The paper suggests house prices would need to fall about 3% a year, if rents grew in line with their 4% average annual growth this decade.

If you're renting now and wonder whether it would be smarter to buy now than rent, contact us for a complete analysis of your individual situation.

House or Condo: Which is the Better Investment?

Although houses historically appreciate better than condos, occasionally the reverse happens.  It's really a case of supply and demand, driven by demographics.

Typically, condos appeal most to the youngest and oldest segments of the population.

But keep in mind, one of the downsides of condo ownership is that you have limited control over the expenses you'll pay in common with other owners through homeowner association fees and assessments.  You have no control over insurance costs, and special assessments an association management company may impose to replace a roof or upgrade landscaping, and with a single-family home, you control these things.

As the owner of a single family home, you definitely have more control over your expenses, at the very least, giving you an opportunity to shop around for the best prices on things relative to your investment.

To determine whether a house or condo is best for you, talk to us.  We'll help you decide what's right for your particular situation.

When is the Right Time to Buy St Louis Real Estate?

The right time to buy St Louis Real Estate is when you are completely ready to do so . This will not be same for every person, so it is to make your own mind up. But fortunately, there are a few things which you have to consider if you are thinking about buying a home.

One important thing to remember is:   If you have no money, then it is not the right time to buy a home.

These days many people think of buying a home and they get very excited about it, but they forget about the costs which are related to buying a home.

Eventually, some things you may be able to handle, but if you don't have the money to cover bills related to owning a home now, you should not even think about buying a home.

If you really want to buy the perfect home for you, you have to take your time searching for the right one.

Buying a home without doing your homework could mean you choose a home which does not suit your needs.

The right time to buy a home is when you are completely ready financially.  This will not be same for each buyer, so make sure you take your time and do your homework.  Talk to your accountant or a qualified financial planner to see if you are financially ready to buy a home.