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.

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.

The dam has broken.  Not Bagnell Dam!  The dam that has kept people back from coming to the lake to vacation and to look for second homes.  At the beginning of the year, we began to see it – the small trickle – a few more phone calls, a few more e-mails and a few more walk-ins.  

In the second quarter of the year, the stream became a little steadier, and even broadened in scope.  There were offers being made and contracts being written.  Then, came the closings – a celebration here and there.  But, for the most part, the dam was holding steady.  Was this going to be what we had to look forward to in the summer of 2009?

Holding our breath and looking down the road, we all waited for the Fourth of July.  And then, the dam broke.  The cars poured in from all points of the Midwest.  We even saw license plates from Alabama, Mississippi and, yes, Alaska!  Grocers had trouble keeping their shelves stocked; parking lots in shopping malls were filling up; no vacancy signs started to light up along Hwy 54.  And, Realtors were busy showing homes throughout the Lake area.

The Fourth of July weekend was one of the best in years for the Lake of the Ozarks.  One good weekend doesn’t make a good season, but I’m taking it as a sign of good things to come.  Based on what I saw and what I’ve been told, my prediction is that we going to have a great last half of the year.  I believe that those who have been “fence sitting” are ready to make their move.  They’ve shopped enough; they’ve waited on the economy as long as they’re going to, and those capable of buying are about to buy.

Where are you in all of this?  Have you been “fence sitting” for whatever reason?  Maybe you’ve been looking for a “Steal.”  Maybe you have a home in mind and just haven’t made that commitment.  Whatever the case, I urge you to reconsider your position.  Interest rates are still low, but they appear to be moving a little higher.  Most sellers have adjusted their prices to their “Bottom Dollar,” and they’re waiting for your offer.  Don’t miss the chance to be a home owner at the Lake of the Ozarks.

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!

My wife and I drove to Des Moines, Iowa this last Sunday.  My two sisters and their husbands live there.  On Monday morning, we got up early and joined my sisters and one brother-in-law on our annual journey to the Evergreen Cemetery north of Prescott and the Quincy Cemetery near Corning and Carbon to decorate the graves of our parents, grandparents, great-grandparents and even great-great-grandparents.  Later that day, we decorated graves of my wife’s family in St. Joseph and Gallatin, Missouri.

I’ve been placing flowers on graves since I was a very small child.  As I grew into junior high and high school age, traveled from cemetery to cemetery with members of the American Legion to play taps and recognize all of the men and women who served our country – many of whom had given their lives in combat.  Of course Memorial Day was originally established for them, and then spilled over into recognizing loved ones in a similar manner.

Every year, I fall into the same pattern.  There are the mechanics of choosing the flowers, making the actual trip.  There is the time spent with family members and running into friends, and the time spent in driving by familiar landmarks of days gone by.  (What have they done to Mom’s house?  My gosh, the old hardware store has been torn down!  I wonder how long they’re going to be able to keep the school open.)  

But, the most poignant time is spent on the way home or on the day after.  I find myself reflecting on the wonderful days of being born and raised on a farm near that small town of Prescott with both sets of grandparents living within walking distance of my home.  I think about the kinds of lives they must have lived as young married couples and the sacrifices they made for each other and for my sisters and me.  And, I think of those who traveled across the ocean, and then, by covered wagon through hardships to claim their little piece of real estate.

Today, I’m selling real estate at the Lake of the Ozarks.  Most of those with whom I deal are looking for a second home where they can bring their families and friends to enjoy some leisure time.  Others are like myself and have chosen the Lake of the Ozarks as a place to raise our families and make a living in any number of ways.  Almost all of us have one thing in common:  We are standing on the shoulders of those who have gone before us – our parents, grandparents, special friends and mentors who have helped makes us who we are today.

You know, we have all seen signs that say things like this:
“Those, Who Die With The Most Toys, Win!”  
Here is the real fact:
“All Those Who Die End Up With About The Same Size Piece Of Real Estate.”

This brings me to the point of encouraging you to, on this Memorial Day, stop for a moment and say a prayer for those who have sacrificed so that you may live your life in the way that you do.  Be kind and generous to each other and to those around you, and tell them that you love them while they are still among you.

Take Care, and God Bless – And, come see me at John Farrell Real Estate Co.

Joel Pottinger

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