Lake of the Ozarks Real Estate Blog

Prices are at Incredible Lows:  Real Estate Prices are at all time lows.  In the past 6 months I have done several deals that made me jealous of what the buyer was getting.  Seriously people are buying homes today that just a few years ago would have been 25 - 50% higher is price.  Even if you are a seller and you have to take less for your home to sell you will likely be able to take advantage of the reduced prices when you purchase your next home.

Interest Rates are Incredibly Low:  Just today I had a mortgage Broker come by my office and drop off a rate sheet showing 30 year loans for less than 5%; that is Amazing!  My Father, John Farrell, before he opened the Real Estate Office was Vice President for a local bank and he has said on numerous occasions that he remembers 18% interest rates.  Just think about that; a $100,000 loan today would have a payment of $542 per month with a 5% interest rate and financed over 30 years; In the early 80s that same loan at 18% would have cost you $1,511 per month, that is a difference of $969.

Tax Credit:  Buyers still have time to take advantage of the Home Buying Tax Credit.  First time buyers have until April 30th to locate a home and negotiate a contract to be eligible for the 10% or $8,000 tax credit.  Sellers who have owned their primary residence for a minimum of 5 years and manage to sell their house are eligible for a tax credit up to $6,500.  Remember these contracts must be negotiated and accepted no later than April 30th and closed no later than June 30th.

All Time High Supplies:  When you consider the foreclosure listings, auctions and other sellers there has never been more inventory for buyers to choose from.  This truly is a Buyers Market and if one seller is not willing to negotiate with you all you have to do is walk down the street and make an offer to the next seller.

Stop Waiting For The Bottom:  I tell everyone I know that if you wait to know for sure that the market has hit rock bottom and has no where to go but up then you will likely miss out on the best deals.  Look, no one can guarantee you when prices will hit rock bottom and start to go back up.  If that could be predicted, no one would buy until that happened and nothing would sell.  I truly believe that anyone waiting to hear that the market has bottomed out will likely miss out on the best deals.

Remember buyers and sellers are both taking risks.  Individuals who are selling today are taking a risk on the possibility that the market may begin to turn around in 6 months and prices could start to improve.  Buyers are taking the risk on the possibility that the market could get worse and the home they purchase today could continue to drop in value.  My suggestion to buyers is that if you want or need to buy stop worrying about getting the absolute best purchase you can and just look for the best house you can at the right price.  If you are planning to be there for a long period of time what does another $5,000 really mean.

Stay up to date with the best information about the E-coli situation at Lake of the Ozarks at www.lakewaterquality.org.

There is going to be a special report tonight on KOMU Channel 8 (satellite) and Channel 7 (Charter Cable) about septic systems at the Lake of the Ozarks and E-coli.

We need to act now to let our legislators know we do not want a new tax on property sales and transfers.  This can add thousands of dollars to the cost of selling or buying a home.  A Real Estate Transfer Tax is a state or local government imposed tax that is collected when you transfer ownership of your home, land or commercial real estate.  Typically, once the tax is initiated, the rate can be increased by the state, county or city at any time. Currently, the state government in Missouri has the power to enact transfer taxes on the sale of property without a vote of the people.  Amending the constitution to prohibit transfer taxes gives power back to the people. Many residents around the state are trying to get enough signatures on a petition to have an amendment ready in November for us to

                                                                Vote Yes for NO Taxation.

Now, more than ever, we need to say enough is enough!

Thanks,
-Lynn Farrell

Written by Ruth Anderson, Broker/Sales

November 19,2009

 

On October 28, 2009, the U.S. Senate approved extending the $8,000 tax credit for first-time home buyers.  A first-time home buyer is defined as someone who has not owned a principal residence for the 3 year period prior to the purchase.  If you qualify, the tax credit applies to sales occurring on or after January 1, 2010 through on or before April 30, 2010.  You qualify if the sales contract is signed by April 30^th and closes by June 30, 2010.  There are also provisions for homes purchased between November 6, 2009 and January 1, 2010. This tax credit does not have to be repaid, and applies to homes priced less than $800,000.  Talk to your realtor or tax accountant if you have questions specific to your situation.

 

Or, you could be eligible for a $6,500 “Move-Up/Repeat Home Buyer” tax credit.  To qualify, a home buyer must have owned and lived in their previous home for 5 consecutive years out of the last 8 years.  Other requirements are similar to the first-time home buyer credit, which qualifies single taxpayer incomes up to $125,000 and married couples at maximum annual income of $225,000.

 

This extension of taxpayer credit should stimulate a continued increase in home sales, benefit taxpayers who qualify for this credit, and in turn, boost our economy.   This might be just the incentive you need to buy instead of rent, or move up to a bigger or nicer home.

 

Source:  Nat’l Assn. of Home Builders

 

With the downturn of the current real estate market a new sales trend has risen; home auctions.  Today you cannot go one week without seeing an advertisement for a Real Estate Auction.  Real Estate Auctions have risen in popularity all around the country and the Lake of the Ozarks is no different. 

 

One question that I have received from several of my prospects is can they be represented at an auction by a Buyer’s Agent and the answer is typically, yes.  As of today I have yet to find an Auction company that does not have some sort of Cooperation policy with Licensed Buyers Agents.

 

If you are considering purchasing a home at an auction and would like representation there is a process that must be followed.  According to my research every Auction company requires that prospective bidders who will have a Buyer’s Agent must be registered for the Auction by the Agent prior to the scheduled auction.  Each of the Auction companies that I have researched requires that your Buyers Agent attend the auction with you and be a part of the entire process if you are the winning bidder for a home.

 

As a prospective buyer all auction companies will allow you and your buyer’s agent an opportunity to tour each of the homes that are scheduled during a prescheduled open house.  This is your opportunity to view the residence and perform any inspections that concern you.

 

Your Buyers Agent will be able to assist with scheduling inspections, reviewing title work, setting up the closing, scheduling the final walk through and any other services that are necessary to facilitate the closing. 

 

If you are considering purchasing a home at an auction and would like one of John Farrell Real Estates Realtors to assist you please call us immediately.

You’re wanting to buy property at the Lake of the Ozarks, but you just can’t quite make the decision. 

Q:  What are you waiting for?

A:  I’ve never purchased a house before.  It’s a big step.

Fact:  Yes, purchasing your first home is a big step.  But, you may be able to qualify and take advantage of the $8,000 tax credit as a part of the federal government stimulus program.  This program has helped thousands of first-time home buyers in the last several months.  Ask your Realtor about it, but don’t wait too long.  The program expires on December 1.

Q:  What are you waiting for? 

A:  I’m waiting for interest rates to go lower.

Fact:  Interest rates have been fluctuating up and down a quarter of a percent for months now.  At some point in time, as the economy starts to level out, the fluctuation will be over, and the rates will start moving back up.  Some say that will start to happen after the first of the year.

Q:  What are you waiting for?

A:  I’m waiting for prices to drop further.

Fact:  The practical sellers have already had their “reality check” and have adjusted their prices accordingly.  There will always be those who won’t drop their prices because they don’t need to sell, or for a variety of other reasons.  But, there has never been a better inventory of reasonably priced homes on the market at the Lake of the Ozarks than Right Now!

Q:  What are you waiting for?

A:  I’m still afraid of the economy.

Fact:  Anyone who has lived for fifty years, or more has seen dramatic shifts in the economy, but one thing has remained constant:  Real estate is one of the best and surest investment you can make – hands down!  As one of my friends has said, “They’re not making any more land.  What there is is what there is.”  So, if you’re in a position to buy, and have been considering the Lake of the Ozarks, my recommendation is to call John Farrell Real Estate Company.  We will be glad to help you find your own “Piece of Paradise.”  What are you waiting for?

I just got a new phone with all the bells and whistles including internet.

So now I can check my facebook, surf the web, and send and receive emails all

from my phone. (Guess I was dinosaur before! LOL)

It has been a huge help in my networking and organization.  It also made me realize how much

technology can help with real estate. Then I got to thinking... Our market here at

the Lake of the Ozarks has unlimited potential and their are buyers everywhere!

AND I speak to people all over the world via the internet about real estate! (I have clients

 from Alaska,Nevada, even Texas!) The internet is a huge advertising and networking medium

Craigslist alone has been a great marketing tool for me to get my clients properties seen by more people.

So... How many people do YOU know via the internet? Help yourself and your REALTOR by letting everyone

you know that you have property for sale at our beautiful lake. Our goal is to get as 

many people to see your  home as possible so we can  find "That" buyer and the internet

can do just that! Studies show that most people shop for homes on the internet

first. Using the internet to it greatest potential is a big part of getting your home sold.

So...Talk to your REALTOR about getting you the necessary tools to share your listing with others

on your facebook, twitter, etc. Every little bit helps!

 

 

Scotty Henderson
John Farrell Real Estate

There have been many changes to lending practices in the past 12 months and there continue to be more changes.  This morning our office met with representatives of Central Bank of Lake of the Ozarks and Land Choice Title Company to discuss the details of the Regulation Z enacted earlier this year.  Below is a summary of what Regulation Z is; this description was copied from the FDIC website.

 

“During 2008, the Federal Reserve promulgated revisions to Regulation Z (Truth in Lending) closed-end mortgage early disclosure requirements that were to take effect October 1, 2009. However, these changes were superseded by the enactment of the Mortgage Disclosure Improvement Act of 2008 (MDIA). As a result, the Federal Reserve has revised Regulation Z to incorporate the MDIA amendments. Compliance with the revised early disclosure requirements is mandatory on July 30, 2009.”

 

Simply put Regulation Z was implemented as a protection to borrowers of money for the purchase of real estate.  Regulation Z mandates specific disclosure periods that lenders must give to their clients based on the type of loan that the borrower qualifies for and what the costs of that loan is. 

 

During the years in which real estate sales was setting record numbers there were a number of times in which borrowers would enter into a contract to purchase a piece of property and would then go about obtaining financing.  Before Regulation Z borrowers had time in which they could shop lenders rates and decide on which loan was the best for them.  This was not a problem, the problem came from the activities of some lenders prequalifying the borrower for a loan and never fully explaining the type of loan that they were being qualified for or the cost of generating that loan.  At the closing table borrowers would discover that they were not being given a 30 year fixed loan; it may be an Arm loan or any other type of loan with huge closing costs.  Regulation Z is meant to eliminate that type of lending practice.  The lender is required to make up front disclosures regarding the type of loan that the borrower is qualified for and what that loan will cost them.

 

What does all this mean to the borrower?  Obviously this is a very good requirement.  This will protect borrowers from being caught off guard at the closing table and allow them to make educated decisions on the type of loan that they are obtaining.  The only down side that borrowers need to be prepared for is the loss of time to shop lenders for the best rates.  The average closing time line on a piece of residential property at the lake is 30 days and some times less.  As a part of minimum disclosure time lines if a borrower intends to execute a contract and then shop lenders there will not be enough time to execute all of the minimum disclosure time lines once you have selected your lender.

 

John Farrell Real Estate recommends that every individual who is considering purchasing a home should shop their lenders before executing a contract to purchase.  Take the time to speak with banks and mortgage brokers to determine what you are qualified to purchase, what their fee’s are and what rate they can qualify you for. 

 

The other advantages to being prequalified are that you know what you are capable of purchasing.  Too many times as a buyers’ agent I have assisted individuals who believed they were qualified to borrow $$$ and once we negotiated a contract and they applied for a loan we discovered that they only qualified for $$.  This resulted in time lost for the buyer, their Realtor, the Realtor assisting the seller and the seller.  In addition sellers will likely give more credibility to a buyer who has been prequalified for a loan.

 

If you have any questions regarding Regulation Z and how it affects you feel free to contact myself or any other agent with John Farrell Real Estate Co.

Have you ever thought about selling your property at auction?   Ask your realtor if you would be a good candidate.

 

Written by Ruth Anderson, Thursday, October 8, 2009

 

 

A real estate auction is an intense accelerated marketing process that involves the public sale of property through competitive bidding.  Believers in the process are convinced that it can be a win-win situation for everyone involved, including sellers, buyers and realtors.  In today’s real estate market, average days on the market has almost doubled from a few years ago, so if you are a qualified seller who is anxious to get your luxury home, tract of land, or condo sold, there is a way to get it under contract within a few hours and close in as little as 30 days.  Traditionally, home owners and realtors have perceived auctions as “distressed sales,” but we have observed an increasing number of sellers who are anxious to divest themselves of particular real estate holdings through an auction venue.  Consider these factors:

 

·         Seller sets sales terms.

·         Through competitive and open bidding, the property achieves its true market value.

·         Bidders compete with each other for the top offer.  No limit on upside potential.

·         Urgency is created and each property is spotlighted through the advertising campaign.

·         Seller is removed from the negotiation process.

·         In many situations, buyer pays the commission, not the seller.

·         Properties are sold “as is.”

·         Buyer signs “No contingency” contract (some auction companies)

·         Scheduled sale date

 

Talk to your realtor at John Farrell Real Estate today if you would like more information about this accelerated way to sell real estate.  It won’t cost you anything for your realtor to represent you in this type of transaction, and you will have a professional to assist you.

As part of our continuous effort to stay knowledgeable of what is for sale at the Lake of the Ozarks our sales team spent Wednesday morning touring some properties.  Amongst the units toured was the New Condominium Development called “The Hamptons.”  I must say that I was quite impressed with this new project.

The Hamptons is a medium sized condominium development located in the heart of Osage Beach at the 19 mile marker.  The Hamptons offers views of the Grand Glaize Bridge and down the lake towards Lake Ozark.  By road The Hamptons is located off of Jeffries road or right next to Dog Days Restaurant and Bar.

The Hamptons will consist of 140 total units to be built in 4 phases.  The first phase will be comprised of 35 units and will offer 4 different floor plans.  The smallest floor plan is 1,746 square feet and the largest is 1,999 square feet.  All of the units will range in price from $353,000 to $450,000.

While touring this complex I was quite impressed with the open floor plans, the tall ceilings and the large decks.  The finish work was of very nice quality and my favorite feature was the built in fridge and grill out on the deck.

If you do not like the entertainment from Dog Days in the summers then I would not recommend this complex.  Keep in mind that Dog Days is required to move all live entertainment indoors after 9pm.  This eliminates the majority of the noise that could travel across the cove from the restaurant. 

Overall I feel that The Hamptons is a Great project and provides a real nice, upscale buying option for the center of Osage Beach.

If you would like to schedule a private tour of The Hamptons, please contact us at John Farrell Real Estate Co.