Lake of the Ozarks Real Estate Blog

In October of 2007, I spent a couple of days with a very nice couple from Iowa.  We looked at condos in the Horseshoe Bend area and second tier homes around Laurie and Sunrise Beach.  When they left, the husband said, “We’re not quite ready to buy anything just right now, but when we do, I promise you that you’ll be the one to sell it to us.”  Shortly thereafter, I received a thank you card from them for the time we spent together.

Time went by, and I would send them a note now and then along with the John Farrell Newsletter.  That was the extent of our communication until this week.  On Monday, I received a call on my cell phone.  The voice on the other end said, “Hello Joel.  This is Lee.  I told you that I would give you a call when we were ready to buy a home at the Lake of the Ozarks, and we’ve decided that the time is right.”

Lee went on to explain that they had been “holding off,” waiting to see what was going to happen with the economy.  He said that, while the economy still appeared to be “shaky,” he liked what was happening with interest rates and wanted to start the search.

It was the kind of call I needed on Monday.  It made me feel good that someone, who I had met seventeen months ago, had kept my cell phone number and kept his word – that “When we decide to buy something, I promise you that you’ll be the one to sell it to us.”
It also gave me confidence in today’s market.  It reaffirms what we’re starting to see in our office:  Properties are starting to sell.  It’s going to be a great year.

By the way, my cell phone number is 573.280.2377.

I must confess, I am not a financial analyst.  I do not spend my day analyzing stocks or the value of the dollar.  I know very little about the ins and outs of trading stocks, 401k’s, mutual funds or any of those other money market funds.  I spend the majority of my day analyzing real estate and finding clients.

With the downturn of the economy; I have realized that I need to at least pay attention to whether the market is up or down.  For a long time now all we have heard is how bad the stock market is.  It seemed like every week the market was dropping lower.  The negative news was so frequent that for a long while I simply tried to ignore it and told anyone that would listen they should ignore the news reports as well.

I like to consider myself a realist; pursuing positive news.  I am a realist who likes to think of the glass as half full.  I only mention all of this because I am so pleased to see positive news regarding the economy.  Yahoo news has been giving encouraging reports about the stock market and its rise for two straight weeks despite the increasing unemployment rate.  The most recent article (I have attached the link to this blog) from Yahoo News even compares the recent rally amidst the increase to the unemployment rate with the recession of 1983.  At that time the unemployment rate was nearly 8% and the economy started to come out of the recession.

http://news.yahoo.com/s/ap/20090403/ap_on_bi_st_ma_re/wall_street

As I was out to lunch today, I was speaking with a gentleman waiting in line at the local Arby’s and we both talked about the down economy but that we were seeing signs of the rebound.  We agreed that there is going to be a period of leveling out for the economy.  We agreed that the stock market will likely fluctuate with increases and decreases over the next couple months but if it avoids the steep drops then we are probably at the bottom of the recession.

Buyers need to pay attention to all of this.  The real estate market will spend several months responding and there will be some good deals available for the next several months but buyers need to avoid being greedy.  If you are waiting to hear that the market has hit bottom before you act; you will miss the bottom.  Once you hear that the market has hit bottom and started to improve, you missed your chance.

My family and I moved to the Lake of the Ozarks in 1976 to find our fame and fortune.  While the fame has been fleeting, and the fortune has been somewhat elusive, we certainly found a wonderful place in which to live, work and raise a family.

In 1976, interest rates were fluctuating between 18 and 20 percent, and lakefront property was selling for $50.00 a lakefront foot.  There was even talk that it might double in the next year or so.  Many could not believe such talk.

Today, lakefront property is selling for anywhere from $1,000 a lakefront foot to $3,000+, depending upon the location.  Property values, in recent years – both on and off the lake, continue to hold their values very well – much better than other parts of the United States.   Couple that with recent reports of interest rates at 5 percent or less for qualified buyers and you can see why the Lake of the Ozarks remains a great area in which to invest your money.

I am one of those who became a Realtor after many years in another career.  I chose this profession because I enjoy meeting people from all walks of life – to learn about them and to help them find a home that suits their needs.  I chose John Farrell Real Estate Company because I’ve know John and Lynn for a long time.  I admire their work ethic and their honesty.  They are true to their word.  That says it all.

Whether you’re ready to purchase property, or just starting to “shop around,” please stop in the John Farrell Real Estate office and ask for Joel.

Staging your home for showings is a key element to selling your house.  Staging your home does not necessarily mean the need to spend a lot of money to add new furniture. Here are a few of my favorite tips for sellers that are minimal in cost.

1.Create focal points for rooms:

Find the most visible corner of the room and stick a plant there. Silk trees work real well in living rooms and family rooms.  Set a nice silk tree in a corner and if you can, set a light to shine up on it.  Make sure the tree is not too big.  It should fill the space but not stand out like a sore thumb.

2.Set up a Chat Room: 

If you have two living areas, arrange the furniture to encourage conversation.  Buyers should be able to envision themselves sitting in a space with their guests.  This brings a sense of caring and pride of ownership to your home.

3.Remove Personal Photos:

Remove the photos of your family and friends.  Buyers will tend to stop looking at the home and start looking at the photos.  Their attention should be on the house and not your family.  Replace the photos with scenic photos of the area you live in.  For homes at the lake, use some of the many lake photos that are typically found in calendars.  Remind people that they are buying a home at the lake.

4.Tighten It Up:

Tighten any loose doors, cabinets, knobs and re-stain, re-paint and re-finish any areas that need to be touched up.  Buyers like to open all doors and peak at all corners.  If a potential buyer finds a lot of knobs that are loose or walls that are banged up from door knobs they will have a sense that they house is beaten up and not well cared for.

5.Freshen the Landscaping:

A home needs to make a good first impression.  Buyers will often do a drive by of a home before actually scheduling a showing.  What they see from the outside will drastically affect their desire to view the home.  So you may well be showing the home and not even know it.  Keep the lawn cut, the sticks picked up and the leaves gone.  Plant some fresh flowers and spread some new mulch.  Pick up the kids toys and put them in the garage.  If a buyer sees a yard that is not well cared for they will believe that the house is not well cared for either.

6. Repaint the house:

If the paint on the outside of the house is faded, repaint the house.  Ask your REALTOR what the current color trends in your area.  When painting the house try to differentiate it from your neighbors; if your neighbor’s homes are all blue with a Grey trim, paint your house Brown with a Green trim.  This will help distinguish your home from the neighbors and will make it more appealing.  Buyers don’t want to buy what they feel is a cookie cutter home.

7.Open the Windows:

  Natural light is the best kind of light for showing a house.  The brighter a house is the better for showing it.  Natural light can make a home feel bigger and all buyers like a home that feels bigger then it really is.  Buyers like to be able to see the house and all its features with ease.  A buyer can be turned off of a home if they walk into a poorly lit, dark room.
Each of these suggestions should come at minimal expense and you should be able to complete them without hiring a professional.  When selling your home, you should take a long hard look at it and try to imagine yourself as a buyer seeing it for the first time.  What kind of impression does it make?

-Jonas Farrell
Lake of the Ozarks Real Estate Agent

I know our country is saddled with debt, lay-offs, and a credit crunch that has stymied our economy, however that is today.  What can we expect soon?  Change of season, change of economy – change of business environment.  Things always turn around and it will!  Sometimes life and business are like a roller coaster.  You just have to prepare for the ride and be ready!

I know everyone is worried about the business climate, but I want to encourage you that good times are coming soon and we need to be prepared.  This is a great time to buy real estate.  There are some great bargains out there.

While we prepare for the spring season lets be positioned to make our move when the turnaround begins.   The first thing I do in the spring is to prune our plants and bushes so they can grow strong, that is all that is happening now, we are being pruned as a nation and we will grow again nice and strong.  Change is coming soon, so lets be ready!

Lynn Farrell
Broker/Officer

It is very well documented that the state of the American Economy is not good.  The Real Estate market is dominated by rising numbers of foreclosures and plummeting home values.  So I am sure you are asking “Why should I buy today?”  “The prices will continue to fall and what is a good buy today will be even better tomorrow.”  While I can understand your nervousness of buying in today’s market and the belief that prices will continue to fall I do challenge that there are reasons to step up to the plate and buy today. 

I am a firm believer in the phrase that “It is always Darkest just before the Dawn.”  I believe we are very close to that point in today’s real estate market.  The Real Estate market has been on a downward spiral for nearly 3 years and it is my belief that with the actions that the government is taking with bailing out the banks and pushing through the stimulus package the market will begin to turn around.  

Our company is a perfect example.  While putting together our budget for 2009 John, Lynn, Justin and I took the approach that this could be a real tough year and we tried to find ways to cut costs and survive.  Much to our surprise, January was a very active month; even though historically January is one of the slower months in the year.  For the month of January inquiries and showings through our office were up and we had more contracts then expected.  

Today I have spoken to many prospects about buying and they are all beginning to agree that there are some real good deals to be had.  Think about it, today I can go out and purchase a house for less than $150,000 that only two years ago sold for $212,000; that is a GREAT buyers market.  I believe that this market will experience a slow turn around and those buyers that took the risk and bought a house today will be able to sell it just a few years from now and realize a real good profit.  Also consider that with Interest rates at historical lows; the homes you are getting a great buy on today are even better with the lower interest rates.

It was Robert Kiyosaki, author of Rich Dad Poor Dad, who said “during tough economic periods there was usually a great transfer of wealth.”  This is definitely one of those periods and in Real Estate the winners will be the ones that are able to buy today and sell tomorrow.