Too many potential real estate buyers pay way too much attention to short-term price changes. People are so worried that prices might drop a little and feel that maybe they should wait to buy something. So if you think you can predict the future, follow your beliefs! However, the reality is that the price, within reason, really should be a secondary matter in your search for a good property to purchase.

The main reason that price is less important is that individuals who want to increase their net wealth from real estate ownership, which is the goal of many buyers, should only be purchasing property that they will hold for a long time. The longer the better and a minimum of five years is probably the breakeven point to start building wealth. It is more likely than not that down the road, years after our economy has sprung back to life, real estate prices should be much higher than what people paid for properties in the next twelve months.

Affordability is now

In 2020 or 2022, you won’t even remember the 2012-2013 price fluctuations. You’ll just be gloating to yourself how brilliant you were buying into the market ten years ago. Not only will you have purchased a great property at the most affordable pricing seen in decades, but you will probably have locked in an outrageously low interest rate on a mortgage that can be fixed for thirty years!

But, what if you buy and prices drop a little? Who cares! It won’t matter because you purchased a great property that you love for all the right reasons. You want to own real estate and any slight dip in the next year or two should be a wholly irrelevant short-term blip on the radar of a long term real estate holder.

In addition, in many areas right now, your monthly payment for ownership (including principal, interest, HOA fees if any, property taxes, and repairs) may be close to or less expensive than renting. That alone is an amazing turn of events in the history of personal residence ownership. This is more likely true for moderately priced properties. Even expensive, untouchable properties a few years ago are astonishingly affordable right now!

Buying is not for everyone

Now this doesn’t mean that it is the right time for just anyone to buy property. If you are not 100% sure you will own the property for a long time, it is probably smarter to stay a renter. If you move often, renting is probably a better option.

Additionally, this doesn’t mean that you can just buy any property to build wealth. You should probably avoid properties that need:

• Significant rehabilitation work

• Properties in HOAs where the association is in bad financial shape

• Properties in areas where there are lots of foreclosures, high vacancy, near lots of buildable land

• Areas where the local economy is in desperate shape.

Rarely are those wealth-building purchases. Go for the properties that are in better shape or in more stable areas with jobs and economic development.

For buyers who are too focused on price, are worried about short-term price drops and are holding off on buying, we long-term holding real estate buyers can only say thank you so much! Please keep obsessing over those monthly housing price reports and stay on the sidelines!

With less competition in the market, it makes the process of finding a great home to secure, and with those incredibly low interest rates, only sweeter for the rest of us who are charging forward to buy a property in the best buying environment in a generation!

Leonard Baron, MBA, CPA, is a San Diego State University Lecturer, a Zillow Blogger, the author of several books including “Real Estate Ownership, Investment and Due Diligence 101 – A Smarter Way to Buy Real Estate”, and loves kicking the tires of a good piece of dirt! See more at ProfessorBaron.com.

O’Fallon Real Estate Spring Market-Up or Down?

The spring season usually brings an increase in buying and selling to the real estate market, and housing experts are mostly optimistic that this spring will be even better than recent years.

Some signs are already there: Housing inventories are declining, housing affordability is at record highs, mortgage rates are at all-time lows, and the job market is improving. Existing-home sales have been edging up in recent months, and for-sale housing inventories were at nearly 2.4 million units in December, reaching its lowest point since 2005, according to National Association of REALTORS® data.

NAR’s Chief Economist Lawrence Yun says home prices are beginning to stabilize in many markets.

Also, NAR’s Housing Affordability Index is at its highest level since the 1970s, which indicates that for the average family housing is very affordable.

The National Association of Home Builders is also predicting an improvement this spring among the new-home sector. NAHB is predicting that home sales will increase 18 percent this year, that’s after facing their lowest on record in 2011.

However, threats to a housing recovery still loom this spring. Strict mortgage lending is keeping some buyers on the sidelines, and foreclosures continue to put downward pressure on overall home prices in many markets.

“The signals are a little hard to extrapolate, but ultimately by the end of this year we should see the housing market on more solid footing,” says Celia Chen, senior housing economist with Moody’s Analytics. “So an improvement but off of very, very weak activity.”

Relocating to O’Fallon or Dardenne Prairie?

A Dozen Ways To Plan The Perfect Relocation To Ofallon or Dardenne Prairie MO

Whether it’s a move across the country or across town, the whole process can either go smoothly or have the overtones of a major life crisis. We’ve been on hand during transferee moves for some time and have come to the conclusion the “little things” make the difference between a smooth move and chaotic one. The secret is in the details that go beyond the usual common-sense procedures of getting belongings from one place to another. You’ll have a better chance of a trouble-free move if you become familiar with our 12 tips to a smooth move.

Helpful Tips For A Smooth Relocation

1. Expect stress. First and foremost, you should expect a certain amount of stress and be as patient as possible — with yourself and everyone else. When a whole family remembers to listen carefully and respond thoughtfully, things are easier for all concerned.

2. Fix up and toss out. When a home is up for sale, the chore of clearing out clutter (for showing the house) can be combined with sorting and packing. Even if professional packers are scheduled to do the big packing job, time is saved at the destination when you personally box many items (off-season clothes, for example).

3. Keep a moving book. Having a personal moving book (a 3-ring binder plus pocket dividers) helps keep details in their place: checklists, daily reminders, mover information, and, especially, lists of what’s where. (One of the most frustrating aspects of moving is not being able to find things that have been shuffled from here to there.)

4. Plan for pets. Pets need to be planned for as much as any other family members. Change is stressful for animals too. Traveling arrangements should be made early (including necessary shots, certificates, etc.), especially if the pet is to travel by public transportation.

5. Print change notices. As soon as a home is sold, notices should be sent to alert utility and other services of cancellation dates, to transfer bank accounts and medical records, and to avoid annoying gaps in subscriptions.

6. Return and collect things. Returning borrowed things (library books, friends’ belongings, etc.) should be on your move-out checklist, as well as a reminder to collect things — from safe deposit boxes, the cleaners, storage places, repair shops, friends’ homes.

7. Carry valuables. It’s often safer to carry jewelry, birth certificates and other valuables personally rather than trust them to movers or the mail. School records and proof of vaccinations also have a better chance of prompt arrival if they are conveyed personally rather than left for transfer to busy school and medical offices.

8. Do the phones early. If possible, phone service should be installed before arrival, and floors and walls that need refurbishing in the new home should be attended to before moving in, avoiding having to move things around after getting semi-settled.

9. Pack a survival kit. Packing a survival package takes care of all those small family needs at the new home on the first day: light bulbs, a flashlight, tissues, trash bags, children’s toys, pillows, blankets, saucepans, canned food, paper plates, powdered drinks, plastic cups, a radio, a telephone, a hammer and screwdriver, etc.

10. Make tags and licenses a priority. Remembering to get car registrations helps avoid fines, and transferring drivers’ licenses on time saves having to take new road tests.

11. Schedule extra time. It’s wise, if possible, to allow plenty of time to recover, to unpack and settle in. A few days of dining out helps. After all, a home isn’t built in a day.

12. Last word. A prime reminder: Throughout the move, you can rely on your real estate and relocation specialists on each end of the move to help the relocation go smoothly.

Contact me for more information on how to make a smooth relocation happen for you.  636.294.6061

Owner Financing O’fallon Real Estate

What Every Seller Should Know About Owner Financing

 
Even though interest rates currently make conventional loans more available to more buyers, seller financing is still a very good option for both buyers and sellers. It can really pay off, if you hold the right cards. That’s why home buying transactions involving seller financing of some sort can be attractive – more attractive in some areas than others, depending on local market conditions.

• Here’s how “seller financing” works.

A second mortgage offered by a seller is usually a short-term “balloon” note, with the buyer making fixed-rate monthly payments and paying off the balance within 3, 5, or 7 years. One very common seller financing arrangement is 10% of the purchase price, with the buyer putting down 10% cash and assuming the seller’s existing loan for 80% of the home’s value (figures will vary).

• This is what seller financing can do for a seller.

• Speeds up the sale of your home.
• Helps you get a better price for your home.
• Provides you with a regular income.
• Helps reduce capital gains taxes by spreading your profit over several years (especially advantageous in substantial financing).
• Can provide a higher interest rate than on some other investments.
• Gives you the later option (after your home is sold) of selling all or part of your second mortgage to another lender, mortgage broker or member of the secondary mortgage market – such as the Federal National Mortgage Association (FNMA).

• Watch out for these potential problems.

Possible buyer default on the loan, lapsed or slow monthly payments.
In case of foreclosure, you must out-wait the first mortgagor for return of your money when the property is sold.

• Watch out for these potential problems.

• Precautions seller-financers should take.
• Check a buyer’s credit rating carefully.
• Refuse to make your loan assumable.
• Get at least 10% in down payment.
• Structure your loan so that it can (if you wish) be sold to another lender.
• We often have buyers on hand who are looking for seller financing, and we have sellers who are willing to finance. We’d be happy to help make a match.

Please call or e-mail us with your real estate needs.  636.294.6061

Great Schools in O’Fallon-Dardenne Prairie Area

Don’t just look for the ‘good’ schools–look for the right schools In the Fallon and Dardenne Prairie area

Don’t just look for the ‘good’ schools–look for the right schools In the Fallon and Dardenne Prairie area.

A major challenge for relocating families is finding schools in the new area with a good reputation. But, where does that reputation come from? Test scores, student/teacher ratios and college-placement statistics are three objective measures of a school’s performance. But, as every educator knows, there’s more to quality education than statistics. Some children excel in smaller schools while others need special programs to develop their particular talents. An open, nurturing atmosphere is often key to a child’s success.

Take the time to visit schools you’re considering for your children. Talk with teachers, administrators and parents to find our whether a particular school is right for your child’s unique needs.

Call me for a list a schools in the areas you are looking to buy.  636.294.6061

What comes to mind when you think of a clean kitchen? Shiny waxed floors? Gleaming stainless steel sinks? Spotless counters and neatly arranged cupboards?

They can help, but a truly “clean” kitchen–that is, one that ensures safe food–relies on more than just looks. It also depends on safe food practices.

In the home, food safety concerns revolve around three main functions: food storage, food handling, and cooking. To see how well you’re doing in each, take this quiz, and then read on to learn how you can make the meals and snacks from your kitchen the safest possible.

Quiz

Choose the answer that best describes the practice in your household, whether or not you are the primary food handler.

1. The temperature of the refrigerator in my home is:

a. 50 degrees Fahrenheit (10 degrees Celsius)
b. 41 F (5 C)
c. I don’t know; I’ve never measured it.

2. The last time we had leftover cooked stew or other food with meat, chicken or fish, the food was:

a. cooled to room temperature, then put in the refrigerator
b. put in the refrigerator immediately after the food was served
c. left at room temperature overnight or longer

3. The last time the kitchen sink drain, disposal and connecting pipe in my home were sanitized was:

a. last night
b. several weeks ago
c. can’t remember

4. If a cutting board is used in my home to cut raw meat, poultry or fish and it is going to be used to chop another food, the board is:

a. reused as is
b. wiped with a damp cloth
c. washed with soap and hot water
d. washed with soap and hot water and then sanitized

5. The last time we had hamburgers in my home, I ate mine:

a. rare
b. medium
c. well-done

6. The last time there was cookie dough in my home, the dough was:

a. made with raw eggs, and I sampled some of it
b. store-bought, and I sampled some of it
c. not sampled until baked

7. I clean my kitchen counters and other surfaces that come in contact with food with:

a. water
b. hot water and soap
c. hot water and soap, then bleach solution
d. hot water and soap, then commercial sanitizing agent

8. When dishes are washed in my home, they are:

a. cleaned by an automatic dishwasher and then air-dried
b. left to soak in the sink for several hours and then washed with soap in the same water
c. washed right away with hot water and soap in the sink and then air-dried
d. washed right away with hot water and soap in the sink and immediately towel-dried

9. The last time I handled raw meat, poultry or fish, I cleaned my hands afterwards by:

a. wiping them on a towel
b. rinsing them under hot, cold or warm tap water
c. washing with soap and warm water

10. Meat, poultry and fish products are defrosted in my home by:

a. setting them on the counter
b. placing them in the refrigerator
c. microwaving

11. When I buy fresh seafood, I:

a. buy only fish that’s refrigerated or well iced
b. take it home immediately and put it in the refrigerator
c. sometimes buy it straight out of a local fisher’s creel

12. I realize people, including myself, should be especially careful about not eating raw seafood, if they have:

a. diabetes
b. HIV infection
c. cancer
d. liver disease

Answers

1. Refrigerators should stay at 41 F (5 C) or less, so if you chose answer B, give yourself two points.

If you didn’t, you’re not alone. Many people overlook the importance of maintaining an appropriate refrigerator temperature.

The refrigerator temperature in many households is above 50 degrees (10 C). Measure the temperature with a thermometer and, if needed, adjust the refrigerator’s temperature control dial. A temperature of 41 F (5 C) or less is important because it slows the growth of most bacteria. The temperature won’t kill the bacteria, but it will keep them from multiplying, and the fewer there are, the less likely you are to get sick from them. Freezing at zero F (minus 18 C) or less stops bacterial growth (although it won’t kill all bacteria already present).

2. Answer B is the best practice; give yourself two points if you picked it.

Hot foods should be refrigerated as soon as possible within two hours after cooking. But don’t keep the food if it’s been standing out for more than two hours. Don’t taste test it, either. Even a small amount of contaminated food can cause illness.

Date leftovers so they can be used within a safe time. Generally, they remain safe when refrigerated for three to five days. If in doubt, throw it out.

3. If answer A best describes your household’s practice, give yourself two points. Give yourself one point if you chose B.

The kitchen sink drain, disposal and connecting pipe are often overlooked, but they should be sanitized periodically by pouring down the sink a solution of 1 teaspoon (5 milliliters) of chlorine bleach in 1 quart (about 1 liter) of water or a solution of commercial kitchen cleaning agent made according to product directions. Food particles get trapped in the drain and disposal and, along with the moistness, create an ideal environment for bacterial growth.

4. If answer D best describes your household’s practice, give yourself two points.

If you picked A, you’re violating an important food safety rule: Never allow raw meat, poultry and fish to come in contact with other foods. Answer B isn’t good, either. Improper washing, such as with a damp cloth, will not remove bacteria. And washing only with soap and water may not do the job, either.

5. Give yourself two points if you picked answer C.

If you don’t have a meat thermometer, there are other ways to determine whether seafood is done:

• For fish, slip the point of a sharp knife into the flesh and pull aside. The edges should be opaque and the center slightly translucent with flakes beginning to separate. Let the fish stand three to four minutes to finish cooking.

• For shrimp, lobster and scallops, check color. Shrimp and lobster and scallops, red and the flesh becomes pearly opaque. Scallops turn milky white or opaque and firm.

• For clams, mussels and oysters, watch for the point at which their shells open. Boil three to five minutes longer. Throw out those that stay closed.

• When using the microwave, rotate the dish several times to ensure even cooking. Follow recommended standing times. After the standing time is completed, check the seafood in several spots with a meat thermometer to be sure the product has reached the proper temperature.

6. If you answered A, you may be putting yourself at risk for infection with Salmonella enteritidis, a bacterium that can be in shell eggs. Cooking the egg or egg-containing food product to an internal temperature of at least 145 F (63 C) kills the bacteria. So answer C–eating the baked product–will earn you two points.

You’ll get two points for answer B, also. Foods containing raw eggs, such as homemade ice cream, cake batter, mayonnaise, and eggnog, carry a Salmonella risk, but their commercial counterparts don’t. Commercial products are made with pasteurized eggs; that is, eggs that have been heated sufficiently to kill bacteria, and also may contain an acidifying agent that kills the bacteria. Commercial preparations of cookie dough are not a food hazard.

If you want to sample homemade dough or batter or eat other foods with raw-egg-containing products, consider substituting pasteurized eggs for raw eggs. Pasteurized eggs are usually sold in the grocer’s refrigerated dairy case.

Some other tips to ensure egg safety:

• Buy only refrigerated eggs, and keep them refrigerated until you are ready to cook and serve them.

• Cook eggs thoroughly until both the yolk and white are firm, not runny, and scramble until there is no visible liquid egg.

• Cook pasta dishes and stuffings that contain eggs thoroughly.

7. Answers C or D will earn you two points each; answer B, one point.

According to FDA’s Guzewich, bleach and commercial kitchen cleaning agents are the best sanitizers–provided they’re diluted according to product directions. They’re the most effective at getting rid of bacteria. Hot water and soap does a good job, too, but may not kill all strains of bacteria. Water may get rid of visible dirt, but not bacteria.

Also, be sure to keep dishcloths and sponges clean because, when wet, these materials harbor bacteria and may promote their growth.

8. Answers A and C are worth two points each.

There are potential problems with B and D. When you let dishes sit in water for a long time, it “creates a soup,” FDA’s Buchanan said. “The food left on the dish contributes nu

trients for bacteria, so the bacteria will multiply.” When washing dishes by hand, he said, it’s best to wash them all within two hours. Also, it’s best to air-dry them so you don’t handle them while they’re wet.

9. The only correct practice is answer C. Give yourself two points if you picked it.

Wash hands with warm water and soap for at least 20 seconds before and after handling food, especially raw meat, poultry and fish. If you have an infection or cut on your hands, wear rubber or plastic gloves. Wash gloved hands just as often as bare hands because the gloves can pick up bacteria. (However, when washing gloved hands, you don’t need to take off your gloves and wash your bare hands, too.)

10. Give yourself two points if you picked B or C.

Food safety experts recommend thawing foods in the refrigerator or the microwave oven or putting the package in a water-tight plastic bag submerged in cold water and changing the water every 30 minutes. Gradual defrosting overnight is best because it helps maintain quality.

When microwaving, follow package directions. Leave about 2 inches (about 5 centimeters) between the food and the inside surface of the microwave to allow heat to circulate. Smaller items will defrost more evenly than larger pieces of food. Foods defrosted in the microwave oven should be cooked immediately after thawing.

Do not thaw meat, poultry and fish products on the counter or in the sink without cold water; bacteria can multiply rapidly at room temperature.

Marinate food in the refrigerator, not on the counter. Discard the marinade after use because it contains raw juices, which may harbor bacteria. If you want to use the marinade as a dip or sauce, reserve a portion before adding raw food.

11. A and B are correct. Give yourself two points for either.

When buying fresh seafood, buy only from reputable dealers who keep their products refrigerated or properly iced. Be wary, for example, of vendors selling fish out of their creel (canvas bag) or out of the back of their truck.

Once you buy the seafood, immediately put it on ice, in the refrigerator or in the freezer. Some other tips for choosing safe seafood:

• Don’t buy cooked seafood, such as shrimp, crabs or smoked fish, if displayed in the same case as raw fish. Cross-contamination can occur. Or, at least, make sure the raw fish is on a level lower than the cooked fish so that the raw fish juices don’t flow onto the cooked items and contaminate them.

• Don’t buy frozen seafood if the packages are open, torn or crushed on the edges. Avoid packages that are above the frost line in the store’s freezer. If the package cover is transparent, look for signs of frost or ice crystals. This could mean that the fish has either been stored for a long time or thawed and refrozen.

• Recreational fishers who plan to eat their catch should follow local government advisories about fishing areas and eating fish from certain areas.

• As with meat and poultry, if seafood will be used within two days after purchase, store it in the coldest part of the refrigerator, usually under the freezer compartment or in a special “meat keeper.” Avoid packing it in tightly with other items; allow air to circulate freely around the package. Otherwise, wrap the food tightly in moisture-proof freezer paper or foil to protect it from air leaks and store in the freezer.

• Discard shellfish, such as lobsters, crabs, oysters, clams and mussels, if they die during storage or if their shells crack or break. Live shellfish close up whe the shell is tapped.

12. If you are under treatment for any of these diseases, as well as several others, you should avoid raw seafood. Give yourself two points for knowing one or more of the risky conditions.

People with certain diseases and conditions need to be especially careful because their diseases or the medicine they take may put them at risk for serious illness or death from contaminated seafood.

These conditions include:

• liver disease, either from excessive alcohol use, viral hepatitis, or other causes hemochromatosis, an iron disorder

• diabetes

• stomach problems, including previous stomach surgery and low stomach acid (for example, from antacid use)

• cancer

• immune disorders, including HIV infection

• long-term steroid use, as for asthma and arthritis

• Older adults also may be at increased risk because they more often have these conditions.

People with these diseases or conditions should never eat raw seafood — only seafood that has been thoroughly cooked.

Rating Your Home’s Food Practices

24 points: Feel confident about the safety of foods served in your home.

12 to 23 points: Reexamine food safety practices in your home. Some key rules are being violated.

11 points or below: Take steps immediately to correct food handling, storage and cooking techniques used in your home. Current practices are putting you and other members of your household in danger of food-borne illness.

Moving Could Save You Thousands! AND Usually Beats Improving

Small improvements certainly are worth doing to make your home more livable and to increase its value. But if your home is too small, too far away from work or family, has the wrong floor plan or lacks a number of features you really want, chances are your fixed-up home still won’t suit you well.

Major additions and remodeling projects seldom return 100% of the investment in them–often much less. They tend to “over-improve” the home, hiking its value beyond what neighborhood prices will support–and what buyers will pay for. Consider, too, the inconvenience of living through a major construction project and the hassles of managing it. You’re likely to get more of what you want, at a lower cost, buying a different home.

Going it Alone Is a Tough Task for O Fallon Home Sellers

There are 4 keys to making a wise real estate purchase in Ofallon Missouri

1. Save for a big down payment
2. Don’t overextend yourself
3. Consider the work involved
4. Really shop around

I have been a realtor in the St Charles county are since 1975, and I have seen it all.  Use my experience to make a wise selection for yourself.

Foreclosures increased again in January as banks continued to work through a large backlogs of defaulting loans in their books, RealtyTrac reports. The number of foreclosure filings — including default notices, scheduled auctions, and bank repossessions — increased 3 percent from December to January.

However, the numbers were significantly down compared to one year earlier, RealtyTrac reports.

Last month, one in every 624 households received a foreclosure filing — a drop of 19 percent compared to January 2011.

Banks had slowed their pace of processing foreclosures last year following a robo-signing scandal, in which banks were accused of approving foreclosure documents without proper reviews. Banks have changed some of their methods in processing foreclosures. Also, the $25 billion foreclosure settlement, announced last week, among the nation’s five largest banks and state attorneys general is expected to lead to a pick up in the pace of foreclosures.

The “frozen up foreclosure process is beginning to thaw,” Brandon Moore, CEO of RealtyTrac, said in a statement. For example, Florida had a 14 percent increase in foreclosure filings in January compared to a year earlier.

Many housing experts view an increase in foreclosures as an important step for the housing market to recover in clearing the glut of foreclosed homes on the market. Foreclosures have hampered home prices in many markets.