Lake of the Ozarks Real Estate Blog

Welcome 2012!  Here are some of the things that we have seen happen over 2011 and are expecting so far in 2012.

                - New Hwy 54 Expressway has been finished and opened.

                - Hwy 242, also called the Horshoe Bend Expressway, has been finished and opened.

                - Golden Corral has been completed and has opened for business

                - Cracker Barrel has reached an agreement with a local real estate developer to put in a restaurant and is hoping to start construction sometime in the 2012 year, but no time frame has been set.

                - CVS will be opening in March of this year

                - Kohls will be opening in March of this year

                - Menards is currently under construction and has a projected opening of April of this year.

                - Jo-Ann's Retail Fabric store will be opening in April of 2012

                - Dierbergs, a St. Louis Grocery Chain, will start construction this year and is projecting to open in April of 2013.

                - Tan Tar A is in the middle of working out a deal to sell all of the Estates Lots to the homeowners.  They are having some hoops to jump through with the New P & Z Commissioner, but they hope to have all of this rectified and accomplished sometime in 2012.

 

These are the "Big Ticket" items that are happening at the lake or have already happened!  As for the John Q Hammonds Hotel & Convention Center, there has been no word as to when they will start construction or if they ever will.  All that is known currently is that they own the land and they still have their TIF (Tax Increment Financing) available for when they are ready.  There are still talks going around about revitalizing the Lake Ozark Strip, but there has not been any advancement to speak about.

 

Justin Farrell

John Farrell Real Estate Company

REALTOR

Office: (573) 348-2181

Toll Free : (800) 318-2181

Cell: (573) 216-2580

Fax: (573) 348-2167

Website: www.johnfarrell.com

Are you considering purchasing a 2nd home or condo at the Lake of the Ozarks? 

Here are my top 5 Points that you should consider before you jump into your car and cruise to the lake for a weekend of searching.

1)   Will you be paying cash or will you need to get a Loan?  If you are getting a loan it is a good idea to speak to a Loan Officer to get Pre-Qualified for a loan.

i)   If you are one of the lucky individuals that is capable of paying cash then good for you; you can effectively skip this first step and move right on to the second step.  However if you will require some financing it is a good idea to visit with a Loan Officer and get them to pre-qualify you for a loan.  This will effectively let you know what you can afford and prevent you from spending your time and your Realtors time touring properties that you may not be capable of purchasing.

ii)   I always recommend to my clients that they at least contact a lender at the lake.  All areas are unique and the lake certainly has some unique hurdles to obtaining financing.  Using a local lender will help prevent any problems with closing a loan.

2)   House or Condo?  There are very clear advantages and disadvantages owning a home and/or condo at the lake.

i)   If you are a person that really values privacy, peace and quiet then you’re a good candidate for a house.  But be warned when you own a house along with it comes the responsibility of maintaining the interior and the exterior.  I have been a Realtor for 11 years and in that time I have helped many clients sell their lake house and move to a condo because they are tired of all the work they have to do when they come to the lake.  Remember you are buying a home at the lake so you can enjoy the lake with your family and unless you enjoy yard work then you may want to consider a condo.

ii)   If you plan to spend most of your time boating, shopping or golfing then you may want to consider purchasing a condo.  Owning a condo alleviates all the responsibility of maintaining the exterior of your home.  All you have to do is pay your assessments and all of the grounds are maintained for you.  This allows you to maximize your enjoyment of the lakes recreational opportunities or simply sit down and relax.  However, be warned if you are a very private person and not much for socializing then a condo may not be your best choice.

3)   What area of the Lake do you like to spend your time?

i)   The Lake of the Ozarks is a large area with lots of different communities surrounding its 1,300+ miles of shoreline.  There are many different areas of the lake for a person to purchase a 2nd home; a few of them are Lake Ozark, Four Seasons, North shore, Porto Cima, The Villages, Osage Beach, Linn Creek, Camdenton, Greenview, Sunrise Beach and Laurie.  All of the communities have unique features and amenities worth considering.

ii)   Chances are if you are considering a 2nd home at the lake then you probably already know which area of the lake you want to be in.  However, if you are not sure then be sure to speak with your Realtor regarding the different qualities of each community and let them know what is important to you.

iii)   Another consideration is what area of the lake do you like to boat on.  Remember there are two sides to the lake; if you like to boat between the 20 and 30 mile marker but do not like Osage Beach then you should consider a house in the Greenview and Sunrise Beach area.

4)   What do you Need and what do you Want?

i)   Once you have determined if a house or condo would be better for you, you should start a list of what features you Need and what features you Want. 

ii)   Take a piece of paper and draw a line down the middle, on the left write Needs and on the left write Wants.  On the needs side you should list all of the features that you absolutely have to have in your 2nd home and under the Wants side make a list of the features that you would like to have but are not necessarily deal breakers.

iii)   Some examples of Needs are 3 bedrooms, 2 bathrooms, 2 slip boat dock, garage, etc.  Some examples of Wants are Level driveway, minimal steps to the lake, cove location, main channel view, dock with slide.

5)   Pick your Realtor.  You should pick your Realtor carefully; make sure your Realtor has your best interest at heart.  There are too many Realtors out there who are eyeing that commission and only care about the commission.

i)   Chances are you probably know someone who owns a property at the lake and they probably purchased the property through a Realtor.  Ask your friend about their Realtor and if they would use them again.

ii)   Some key points you should look for in your Realtor are; Experience (this can be the Realtor or the Broker that he/she works for), Availability (make sure the Realtor is Full time and not part time; if you needed Surgery You wouldn’t use a Part Time Surgeon Would You!), Knowledge (how well does the Realtor know the lake area and the current condition of the market) and Personality (it is a fact that most people like to work with people that they like. Try to find a common interest with the Realtor this will make your time together more enjoyable).

Jonas Farrell
Broker / Officer
John Farrell Real Estate Co.

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?

Over the past few months I have been creating a database to track sales of real estate over the last five years.  It is still a work in progress and I plan to take the numbers back even further to include up to year 2002.  With that said, I would like to share what the sales have been like at the Lake of the Ozarks since the beginning of 2005 for Lake Front Homes.

A quick disclaimer: I have compiled this information from the local Multiple Listing Service.  This information is not guaranteed to be 100 % accurate.  If the average sale price seems low it is because this information takes into consideration all sales at the Lake of the Ozarks. 

		Number of Units Sold
		1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Year Total
2005		142		169		326		218		855
2006		169		302		240		170		881
2007		132		251		231		120		734
2008		99		157		145		101		603
2009		80		91		0		0		171
		Average Sale Price
2005		$       297,702		$        311,359		$       277,246		$       308,895		$    298,800
2006		$       355,219		$        343,068		$       343,092		$       356,559		$    349,484
2007		$       349,476		$        367,659		$       401,677		$       353,385		$    368,049
2008		$       357,483		$        389,531		$       340,321		$       328,172		$    353,877
2009		$       272,206		$        338,326						$    321,469

 

As you can see from the numbers above, 2006 was the peak year for the Real Estate Market at Lake of the Ozarks.  The year 2006 peaked at 881 total sales with an average sale price of $349,484.  While the average sold price of Lake Front homes continued to climb in 2007 the total number of homes sold declined by 147 units sold or nearly 17%.  Then in 2008 the average sale price dropped from 2007 but remained higher than the peak sales year of 2006 but the number of units sold dropped again another 131 units or an 18% drop from 2007 and 32% lower than 2006.

If you compare the first quarter of 2009 with the first quarter of previous years you will see that there has been a significant drop in the number of units sold and the average sale price of those units.  Comparing the first quarter of 2009 with the first quarter of 2006 you will see that the number of units sold has dropped by 53% and the average sale price has dropped by $83,013 or 23%.

What does all this mean for the Lake of the Ozarks?  Well obviously it means that we are not recession proof.   As of today, June 19, 2009 there are 1,244 Lake Front homes for sale with an average list price of $520,730 and an average day on market of 143.  The highest price home on the market is listed for $9,695,770 and the lowest price is $47,000.

Clearly it is a Great time to be a buyer!

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.