2010 Tax Credit for Missouri Home Purchases

Home Ownership Purchase Enhancement (HOPE) Program Information Missouri Housing Development Commission (MHDC) resources totaling $15 million have been set aside for the HOPE program, which will be disbursed on a first!come, first!served basis. The program is available until the entire $15 million has been expended. Qualified Missouri households that purchase a home in 2010 are eligible to apply for a HOPE incentive equaling the amount of the 2009 real estate tax bill associated with the property they purchased, up to a maximum of $1,250.

Additionally, homebuyers who are approved for the real estate property tax HOPE incentive may also be eligible to receive an additional amount if they bought a qualified newly constructed energy efficient home or bought an existing home and remodeled or purchased items, such as Energy Star appliances, to make the home more energy efficient. The maximum combined total of the real estate property tax incentive and the energy efficiency incentive is $1,750.

For more information go to http://www.mhdc.com/homes/HOPE/index.htm

How to Improve Lake Front Property

Lake front properties are increasingly sought after and each has its own opportunity.  You may find a desirable property that requires removal of underbrush, or needed improvements such as beautification or a pedestrian footpath.  Since the shoreline at Table Rock Lake is public land managed by the U.S. Army Corps of Engineers, it is important to know what regulations apply to a particular lake front property and what improvements you can do before you make an offer.  

The Corps of Engineers have made shoreline use permits available for vegetative management.  There are a few steps required, but in most cases they can be processed rapidly and efficiently.

Additional details are available in “A Guide to Shoreline Use at Table Rock Lake.  Should you have any questions you may contact the Duty Ranger at:

(417) 334-4101 ext. 3018 Monday through Friday 7:30 a.m. to 4:00 p.m. 

You can also visit: 

http://www.swl.usace.army.mil/parks/tablerock/shoreline.htm

Why a Market Analysis?

A market analysis or CMA is a free service offered, and is to a large degree an non-subjective way to pin-point the market value of property.  Why is this important?  If you are considering selling your home, having an experienced agent perform a complete CMA will eliminate error in pricing.  If you are considering making an offer on a home, you will want to know the value you are getting.  In rural areas such as Table Rock Lake, Kimberling City and Branson Missouri there is such a variety of properties that include custom homes built on wooded acreage, lake-front or lake-view lots.  There are variances such as neighborhood conditions, construction type, and location to conveniences.  In this particular market a computer CMA can have a significant margin of error.  One way to reduce error is to include a “Cost Approach” in the Market Analysis. This is where you re-build the home to find a replacement cost.  You then depreciate the age and condition of the home then average the price per square foot with the base price of comparable homes (sold and currently on market).  The result is you now you have all the elements necessary to get an accurate price.

How Long will Your Home be on the Market?

If you are a homeowner in the price range of $450,000 - $700,000 you understand that the inventory in this market is taking quite some time to move.  In a recent article by Stewart Mednick, he discusses a formula that can be adapted at different price points to find out how long it will take for a home to sell. 

I applied Mednick’s formula to the real estate market in Table Rock Lake and Branson Missouri and adapted the price range to fit local conditions.  In the Tri-Lakes area, there 11 homes in this price range that have sold in 2009.  I divide that number by 6 (representing 6 months) = 1.8 homes per month sold.  In Branson West and Reeds Spring there are 34 homes on the market.  I divide 34 by 1.8 (number of homes that sell per month) = 18.9 months necessary to sell a house in this price range.   In Kimberling City, Lampe and Shell Knob there are 25 homes on the market.  I divide 25 by 1.8 = 13.9 months.

According to Mednick, this is important information that needs to be included in any marketing plan or market analysis.  This information is especially beneficial when considered with pricing the home in a price point that is most competitive.

Making an offer on REO Properties

Most banks have a REO department that you’ll work with in buying a REO property from them.  Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.  Before making your offer, you’ll want to contact either the listing agent or REO department at the bank and find out as much as you can about what they know about the condition of the property and what their process is for receiving offers.  Since banks almost always sell REO properties “as is”, you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it.  As with making any offer on real estate, you’ll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.  After you’ve made your offer, you can expect the bank to make a counter offer.  Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer.  Realize, you’ll be dealing with a process that probably involves multiple people at the bank, and they don’t work evenings or weekends.  It’s not unusual for the process of offers and counter offers to take days or even weeks.

What is Lake View? What is its Advantage Over Lake Front?

A true lake view property has a significant view of a lake from the main living areas during every season of the year.  A breath-taking lake view could easily add additional resale value depending upon the location and particular aspects of the view.  In this market some are considering lake view more desirable than lake front due to higher availability than lake front, and attractive pricing.  Not all lake front properties have a view depending on their distance from corps line, and the terrain the home is situated on.  As public ramps and boat slips have become more available the advantages have begun to outweigh the costs.

When comparing lake view to lake front, it is important for resale purposes to know that waterfront properties are the most sought after real estate.  It is typically where buyers begin in their real estate search.  Demand far outstrips supply, which holds the value in the most unique and desirable properties.  There is no arguing the conveniences of having a boat dock right behind the home, and walking down to the lake.  However you can enjoy a great lake view at all seasons and within reasonable distance have access to lake and boat dock.

Buyers - How to Present a Lower offer Without Pushing Your Luck

If you want the house of your dreams and effectively negotiate the dollar amount in today’s market, you are going to have to “kill the seller with kindness.” Here are some strategies that will present you with better opportunity:

1.  Don’t be a sight-unseen buyer.  This is a siutation where the buyer tries to tie up a property until they have a chance to really look.  Instead be thoroughly informed about the the property.  Schedule multiple viewings with your agent and look beyond the overt.

2. Don’t be a sale-contingent buyer.  If you are offering to buy a home contingent on the sale of yours, then you need to consider waiting until you are ready.

3.  Don’t give a low down payment. A low down payment makes it difficult for the mortgage company to appraise the value of the home and cold tie up the escrow process.  Put a large amount down with a prequalifying letter.  This is the strongest signal of commitment.

3.  Don’t push more contingencies than necessary.  Truthfully in most cases the only two contingencies needed are: “upon appraisal” and “upon inspection.” 

4.  Don’t be inflexible with mortgage terms.  Instead show that you are committed to the contract and won’t walk away at the last possible minute.

5.  Don’t be a bully buyer.  Don’t approach the seller with a list all the things wrong with the house, nit-pick discolusre statements and the inspection.  Instead, be extremely positive.  If there is anything you are uncertain of, talk to your agent remember you can always get a second opinion, and right now there are plenty of great buys on the market.

What Makes Lake Front Properties More Valuable Than Others?

Lake front properties have unique qualities.  Some are considered more valuable than others, depending upon a number of variables:

1.  Lake Access.  True lake front properties offer access to water, boat dock and boat slip(s).    This offers incredible convenience for recreation to its owners and future buyers.

2.  Water View.   View can vary depending upon how close the home is to shore.  Shoreline management lines are not straight, so distances from homes to shore can vary.

3.  Gentle walk to shore.  Many lake homes are built on bluffs which require a steep walk to shore.  More valuable homes are built on a gentle slopes, offering much easier access to shore.

4.  Location to conveniences.  Lake properties that are secluded but not too far from conveniences, marinas, and thoroughfares also are in the prime zone of real estate.

5.  Natural amenities.  Benefits such as scenic view, and water clarity can be capitalized in the land value.

It is important to remember that each lake front property is unique, and offers its own opportunity. More recent restrictions and strict shoreline management laws have restricted further development and land use.  This has created less available water front lots in prime areas.  This explains why a growing number of homes in decline are purchased with the intent to re-build on site.  As demand grows, and the supply of lake front property decreases, their value of these properties will continue to increase.

Why A Home Inspection?

Whether you are buying or selling a home, you should have a professional home inspection performed.

A home inspection will look at the systems that make up the building such as structural elements, foundation, plumbing systems, roofing and electrical systems.

If you are buying a home, you need to know exactly what you are getting. A home inspection, performed by a professional home inspector, will reveal any hidden problems with the home so that they may be addressed BEFORE the deal is closed. You should require an inspection at the time you make a formal offer. Make sure the contract has an inspection contingency. Then, hire your own inspector and pay close attention to the inspection report. If you aren’t comfortable with what he finds, you should kill the deal.

Likewise, if you are selling a home, you want to know about such potential hidden problems before your house goes on the market. Almost all contracts include the condition that the contract is contingent upon completion of a satisfactory inspection. And most buyer’s are going to insist that the inspection be a professional home inspection, usually by an inspector they hire. If the buyer’s inspector finds a problem, it can cause the buyer to get cold feet and the deal can often fall through. At best, surprise problems uncovered by the buyer’s inspector will cause delays in closing, and usually you will have to pay for repairs at the last minute, or take a lower price on your home.

It’s better to pay for your own inspection before putting your home on the market. Find out about any hidden problems and correct them in advance. Otherwise, you can count on the buyer’s inspector finding them, at the worst possible time.

Curb Appeal Check-List

Attractive price alone may not make up for lack of curb appeal.  Here is a check-list that will help make your price and your home attractive.

1.  Remove any clutter.  Is there any scrap wood, or building materials that can be neatly stored? Can you store the garbage cans in the garage?

2.  Check the home from the roof line down.  Is the roof is clear from obstructions such as trees and moss?  Are the  gutters clear of leaves and neatly hung?   Are windows are clean and free from obstructions?

3.  Inspect the condition of the paint and/or siding.  Is it time to power wash the siding?  Is touch-up paint needed?  How about the front door?  Does the  front door draw the eye from the street?

4.  Upgrade the flower Beds.  Is it time to get rid of the scalloped curbing?  Are the flower beds free and clear of weeds?  Is the bed properly mulched?  Are the flowers in bloom?

5.  Keep the lawn neatly groomed. Is the lawn free from weeds?  Is the lawn neatly edged and free of grass clipplings?