Tag Archives: Realtors

The New Normal

by

0

Talk to one of our preferred lenders to learn what lower mortgage rates options are available.

You Pay for What You Get

Higher mortgage rates shouldn’t be a suprise. Besides having SUPER LOW RATES for over 10 years, there were factors that led to our shocking interest adjustment this past fall. Last year when we were hit by the news of the great resignation due to the free money we got from the government, many people had a bad feeling about what would come as a result. That, plus all the shortages and subsequent price hikes made it absolutely necessary for the Federal Reserve to slam on the brakes.

Rates are higher…. Get used to it!

unprepared home buyer

but wait…. Rates AREN’T High?

As a matter of fact, rates are still below average.

  • average 30 year fixed mortgage rate is 7.75%.
  • Rates have averaged above 10% for 574 weeks
  • Rates have averaged above 7% for 1,316 weeks
  • Rates have averaged below 7% for 1,175 weeks

So it’s been a while since we’ve had high rates, but only because of the great recession and the pandemic.

OK… fine…. Where do we go from here?

Buyer’s have always had options for lower rates. The 30 year fixed rate is especially good for people who plan keeping the same mortgage for 30 years, but who does that? Average homeownership (same home) is around 8% on average, and people keep the same mortgage for around 4-5 years. That being the case, the majority of people would benefit from the adjustable rate mortgage. As of this post, rates for a 30 year fixed mortgage are around 6.375%, and rates for a 5/6 adjustable rate mortgage are closer to 5.375%. Even after the initial term, all reputable banks have limits on how much a rate can change in a year, and if rates have dropped, the adjustable rate drops too.

Don’t Forget!

Keep in mind, when it comes to numbers, sometimes interest rates can be decieving. While the monthly payment is based upon the interest rate, the actual cost of the loan is reflected by the APR (annual percentage rate) which adds the origination fees divided by the number of payments for the life of the loan. The APR and the rate are always pretty close together, so most buyers don’t sweat it, but if the origination fees are divided by the ACTUAL length of the loan (4-5 years on average), the APR is significantly higher when the origination fees are greater.

It pays to pay attention and compare ALL the numbers

when considering loans!


St Louis real estate is our specialty! If you want to net the best value when you buy, anywhere in the St Louis, MO area, call us for a no obligation assessment! We work throughout the metro area, especially in Sunset Hills, Crestwood,  St Louis City, St Louis County, Ballwin, Chesterfield, Kirkwood, Webster Groves, St Charles,or one of the other areas we serve, simply click the “How-To Find my buyers agent” link at the top or bottom of this page to begin the selling process now. Buying and selling, check out our home seller blog or home selling page!

7 Tips for Buyer’s in a Shifting Market

by

0

home buying tipsMarkets in transition are an interesting thing to deal with in real estate.  When markets shift, the rules change.  What was gospel last month is all of the sudden thrown out and new practices have to be used.

The new market is competitive and swift.  The “right” properties are out there, but only stay on the market for hours in some cases.  Check out this list and your chances for landing the perfect house will be much improved.

1.  Work with EXPERIENCED PROFESSIONALS.

Real estate is a business where on the job training reigns supreme.  The only way to get that training is to be active in the current market.

2.  Work with Agents that have PAPERLESS CAPABILITY.

To beat out other buyer’s with similar desires, having an agent that can put together an offer on a tablet, get your signature, then email the offer can make the difference between getting the right house, or the runner up.

3.  Get pre-approved in advance and have a digitized copy available.

This has been an old rule for many years, but during the housing slump, it became less important.  New urgency requires the need to impress that seller once again.

4.  Know where you stand financially

Aside from getting a pre-approval, lots of buyer’s seem to be confused about what is a comfortable payment for them due to all the other bills and expenses they have.   Despite having gotten a pre-approval and working with a lender, they sometimes hesitate due to lack of awareness of things like when their lease ends, and what their home will cost with taxes and home owners insurance added.

5.  Make a ‘Community Wish List’

Most buyers have wish lists for home features, but often times looking at the type of neighborhood isn’t something that’s explored as much.  Giving your Realtor general ideas about the type of community you want to reside in can go a long way in helping find perspective homes.  It can also help to narrow down listings or decide between homes.

6.  CALL YOUR INSPECTOR QUICKLY

Most of your contract contingencies are based on the execution date of the contract and the first one is generally the inspection contingency.  In years past, getting an inspector in a few days wasn’t a problem, but in this market, inspectors are swamped.  Call them the minute you’re aware you’re contract has been accepted and get a list of good inspectors from your Realtor.

7.  Once you’ve found the right place, DON’T HESITATE!

This is a good rule any time, but particularly now when buyer’s are finding themselves in competition  more frequently.  Sometimes pausing seems like the right thing to do, but if you’ve done your home work and have used the information to make the best decision, waiting only increases the chances of loosing out.  Remember, “he who hesitates is lost!”

St Louis real estate is our specialty! If you’re looking for real estate anywhere in the St Louis, MO area, including St Louis City, St Louis County, St Charles, Ballwin, Chesterfield, Kirkwood,Webster Groves, or one of the other areas we serve, simply click the “Search St Louis Real Estate” link at the top or bottom of this page to begin your home search now.  Follow Chris Grus @

What Do You Do?

by

0

st louis home buyer guide

Buyer's agents clear up confusion

Chris,
My wife & I are looking to buy our first home, and are looking to live in St. Louis City.

Do you give any kind of quick presentation on what services
……….you offer as a buyers agent?

Thanks,
D

D,

Your question is not an easy one to answer, because our services can vary depending upon your needs as a buyer.

 As a buyer’s agent, I work with you to find and analyze prospective homes, become educated with areas and choose  one that fits.  Sometimes buyers have a very good idea of what area they want to live in, sometimes not.  We usually consider alternatives that they may not be aware of offering similar types of homes.

 Once you have chosen a home you are most interested in, we prepare the offer / contract forms and help to explain the process.  We can add in contingencies and explain how your offer can be made attractive to the seller while still getting the deal you want.  We provide analysis on home sale prices (not listing prices) and discuss offering price and negotiation strategy.

 When an offer is submitted (usually to another agent) we negotiate on your behalf.  Our goal is to get the absolute best price for you by explaining how your offer is a reasonable price–where the seller’s asking price is unreasonable.

 An accepted offer becomes a legal contract and as a buyer, you are obligated to “perform” in certain areas.  We assist you in the process of having it inspected and inform you of everything you need to do and make sure that everything gets done to your satisfaction, in the time frame agreed upon in the contract.  A good buyer’s agent is like a quarterback:  we coordinate between all key players,  the seller’s agent, lender, inspectors, title company, and others needed to have a successful home purchase.

 Lastly, we assist with all kinds of odds and ends, meeting repair people, helping you to get the best rates with the title company & lender,  lining you up with any needed contractors such as electricians, painters, tile layers, roofers, and more. As we own many properties so we have vast connections. Our goal is to support you in any area needed and share our expertise in homes & homeownership.

 Thanks for contacting Premier Realty Exclusive!

Chris

St Louis real estate is our specialty! If you’re looking for real estate anywhere in the St Louis, MO area, including St Louis City, St Louis County, St Charles, Ballwin, Chesterfield, Kirkwood, Webster Groves, or one of the other areas we serve, simply click the “Search St Louis Real Estate” link at the top or bottom of this page to begin your home search now.