Edge Blog

Buying a home can be a daunting task for anyone, especially for those who have never been through the process before and are thus looking to be first-time home buyers. There are tons of questions to ask, as well as things to consider, if you find yourself in this position. One of the first issues you must address is whether you want to buy or whether you want to lease. In some cases, one or the other may not make sense or even be possible for you. Here are four reasons to consider buying a home today in the St. Louis area:

· You are ready to commit to living an area for at least the foreseeable future

· You are starting to think long-term about making a financial investment

Generally speaking, a piece of property has historically been considered to be a good long-term investment with a typical annual appreciation of 5% annually based on data over the past 40 years. Although this number has taken a hit in recent years, there is no reason why real estate values cannot return to its steady appreciation levels over the next few years with the increasing employment and population levels in the US.

· The housing prices in the area you are considering at a reasonable and affordable level based on your current budget and income

Many websites have tools that can help you calculate how much you should spend on buying a home. The link below has an easy fill-in-the-blank calculator to find such a number.

http://realestate.msn.com/BuyAndSell/Tools/HA_CALC.aspx

The size of loan you can get, as well as the interest rates on that loan, can be tricky to estimate yourself. Consider talking to your real estate agent and your bank to get a better idea of these two things.

· The housing market in the area you are considering can be classified as a buyer’s market.

A buyer’s market for our purposes is defined as an area where it is more financially sensible to buy rather than rent. This market can be created by variety and combination of conditions such as having more people looking to sell than are looking to buy or having a surplus of spaces to rent. Such a market can be identified using a metric called the price-to-rent ratio. To make it simple, this ratio takes the average listing price (167,680 for a 3 bedroom house in St. Louis) and divides it by the average annual renting price (18,000 for a 3 bedroom leasing). Generally speaking, areas with ratios between 1 and 15 are buyers markets, and it is considered better to buy than rent. In areas with a ratio over 21, it is better to rent. St. Louis’ ratio is 9, which compared to the national average of 19, makes St. Louis a great place to buy your first home. In 2008, the national ratio was 32, so there definitely has been a favorable shift in the market for buyers in recent years.

Regardless of whether you are buying a brand new construction, or a house that has been lived in for years, having the property you are buying inspected by a professional is always a good idea. Certified home inspectors can identify code violations and other faults that might not be obvious to the normal person walking through a home. Making an offer on a home conditional upon the properties inspection can allow you as a buyer to be aware of what you are really paying for, and what you might have to pay for in the future. The cost of an inspection all depends on the size of the house and what items you want checked, but can range anywhere from $200 to $500. You can also ask a seller to allow you to have their home inspected prior to making an offer. Even if a seller has already had their home professionally inspected, it is important that you conduct your own inspection at some point in the buying process before finalizing the deal in order to protect yourself against unsuspected problems in the future. Problems can be missed by a seller’s inspection mistakenly (or conveniently), and you should always take it upon yourself to do the proper due-diligence. A leaking roof is a common problem that can get passed onto unaware buyers because some professional home inspectors do not include roof inspection in their services. Be sure that the house inspection is tough and thorough, and everything from top to bottom is looked at including:

· The Heating Systems

· The Electrical Systems

· The Plumbing

· The Foundation

· The Structure

· The Roof

· The Chimney

· All Appliances That Will Be Remaining in the House

It also might be worth the extra mile to have the property inspected for pests. This usually is not included by a general inspector, and will probably cost extra, but it is another way for you to be more aware of what you are buying.

As much as I have stressed identifying problems with a home with an inspection before buying, the results of the inspection are not by any means things you must require the seller to repair. An inspection summary should not turn into a list of demands that you enforce on the seller. The inspection simply allows you to know that you are getting what paid for and what you are getting yourself into as the future home owner. You certainly can ask the seller to address certain issues before proceeding with the buying process, or you can simply adjust your offer to account for having to make repairs in the future. If you and the seller agree to have any major problems fixed before proceeding, it might be wise to hire your own inspector to check the work once completed.

Buying a house is a major investment, and most people only get to do it a handful of times, so make sure that you do everything in your power to ensure that you know what you are buying, and that you are satisfied with what you are getting, the next time you are in the market.

Radon is a colorless, tasteless, and odorless gas that many homeowners know far too little about. Radon comes from the soil outside of a home, and as it rises from the ground, can enter and become trapped in homes. Having elevated levels of radon in a home can pose health problems to current and potential homeowners and it can be a problem for both new and old homes. If your house tests above 4 pCi/L, the EPA recommends taking action by contacting a professional to reduce your homes radon levels. Possible radon reduction solutions can be as simple as adding a vent fan to your existing passive mitigation system which can cost as little as $300. Of course other solutions, depending on the situation, can be more complicated and costly. Be sure to keep documentation of all radon tests you conduct in your home for future potential home buyer inquiries. Likewise, if you are looking to buy a home, it would be wise to ask if the property has been tested for radon in the past. Missouri home owners can acquire free radon testing kits from the Missouri Department of Health & Senior Services by following the link below:

http://health.mo.gov/living/environment/radon/testkit.php

In a challenging real estate market it may be necessary to get creative.  If you are having trouble selling your home, consider a lease purchase.  This will greatly open your pool of buyers and provide one more avenue of marketing.

More and more sellers are turning to the lease purchase buyer.  If you would like more info on lease purchase contracts and how they work, give us a call today!

At Edge, we have several marketing plans available.  We understand that today many home owners do not have the equity they once had.  Selling can be tough now and we have created tiered marketing to help fit your budget.  And to show commitment to our community, our premier marketing plan is still more affordable than most brokerages.

Call us to schedule a marketing consultation to see how we can help to showcase your home on your budget!

At Edge, we offer a wide range of property management solutions. From a single rental home to a full real estate portfolio, we can customize a management plan that meets your needs and budget. You can count on us to perform routine property inspections, collect rent, handle all levels of maintenance and repairs, help control your budget, and provide monthly income reports. In the event that a tenant is delinquent, we coordinate the eviction process with your attorney and provide full representation in court.

Our property management portfolio has increased by 300% in the past 12 months! Many investors and home owners are unhappy with their current property manager and feel their property is not given the time and attention it deserves. We treat each property as if it is our own investment and provide due diligence on repairs and maintenance. Give us an opportunity to review your portfolio and see if we can increase your profits. Call to schedule your property management consultation today

Don't let the big brokerage tell you it is necessary to pay higher commissions and fees in a buyer's market. Let us show you how we can save you money with the same results!

We know you have several choices when selecting a real estate firm to represent you. We would like an opportunity to show you why an Edge Real Estate Group consultant is the right choice. At Edge Real Estate Group, we understand the importance of marketing your home to the correct group of potential buyers. Exposure is everything. We also understand that regardless of all the clever marketing, if a house is not priced correctly it will not sell. We will take a long and hard look at the data available....numbers never lie! Our job is to properly price your home from the start to avoid costing you more money down the road.

If you are struggling to make your house payments and can't sell because you have no equity, call Edge today.  We can help you by finding a tenant to take over your mortgage while placing you in a more affordable rental home.

You do have options to keep your home, so call us today and schedule a consultation.  Our experienced agents can help you beat the bank and keep your home!

New year, new home!  We are seeing quite an upturn in the leasing market.  Our hard working leasing agent, Evelyn, has filled three more homes this week!  Nice work Evelyn!

If you need to find a qualified tenant for your home, call us today.  We specialize in marketing homes and locating the perfect tenants.  Ask about our property management services as well!