We have a 2 year old and another on the way. We are looking for 3-4 bedrooms and 2 baths. Our price range is between $300,000 and $400,000. We would love to educate ourselves on and to visit some of the many charming neighborhoods of St. Louis, preferably with some walkability and retail/restaurant components. We would love to look at a few houses to see what our price range can afford us in which neighborhoods and to better understand the local market and we need to be close to Washington University’s School of Medicine.
It is a bit overwhelming to look into all of the different neighborhoods (switching between a map to conceptualize, google directions to understand distance to WashU medical center, and blog/website urls to get a sense of the each vibe), but I want to maximize my exploration time in St. Louis…In addition to the TGE and South neighborhoods, do you have any other neighborhoods on which I should do some research and/or look into exploring on my own time …would love suggestions on maybe neighborhoods/locations that would be nice to check out and grab breakfast/coffee or dinner (and to take a 2 year old to).
Homes around Tower Grove Park (neighborhoods: TGE, TGS and Shaw)
“And between who you know and what you hear on the news, it may be tempting to believe you can experience the same success. But as with most things, there’s a difference between professionals who’ve paid their dues and people who are just pretending.
The few, very successful real estate investors I know share three things that make them exceptions. First, they’ve developed the unique skill of identifying undervalued properties. It requires many years of painful trial and error. A three-day course on “How to Become a Successful Real Estate Investor” won’t cut it.”
Just in case you missed it: A Three day course on “How to Become a Successful Real Estate Investor” won’t cut it.
I couldn’t agree more! Every couple weeks I get a call from an out of town “investor” who has a “system.” They almost always start the conversation by saying something like “With your help, I can make us a lot of money.” (EEW!?!?!?)
I can usually tell within the first couple exchanges, that the person on the other end of the line has just “graduated” from one of the seminars going around the country. I find it especially irksome when the caller reveals that s/he has no intention of improving the home or the neighborhood. Their goal is to find under-valued properties. (Which they intend to do by having me submit 50-100/per week on homes I haven’t seen at half or less than half the list price). Buy them quickly with cash and re-list them at an inflated value.
Despite what the seminar taught, this is NOT a system. It’s one strategy and ultimately not a good one. When the property is listed at a higher value without any change in condition, the buyer pool is severely decreased. Rather than pricing according to market value you are just looking for that “one dumb fish” and thankfully (for the overall health of the real estate market) there are a lot fewer dumb fish out there. So you just might get stuck holding that property.
Beware of the seminar curriculum that leads you to believe you can get something for nothing. But don’t write off real estate investing all together. Despite what the title of the Richard’s article implies, real estate can be a good investment vehicle. But as he outlines in the article it takes experience, knowledge and connections.
Over the last ten years, I have worked with several experienced investors. I have learned much from each one of them. While each had their own unique strategy, there were a couple unifying threads. First, while real estate investment may not have been their full-time job, they treated it as though it was a job. Second, most were in it for the long-term. And finally, they knew they weren’t getting something for nothing. If they bought low, they invested an additional amount in the asset in order to sell high.
First glance at the title made me want to disagree. But the author understands that you have to select a really sensational title to get people to keep reading. The article itself is full of common sense wisdom.
I love that he touches on timingwith this quote: “… it becomes very easy to convince ourselves that we’ll find the perfect real estate deal andtimeboth our entry and exit into the investment perfectly.”
What that quote illustrates is that timing is probably the most important factor in determining the value of real estate. But to some degree, timing is almost always the one thing out of your control when buying your home.
When buying your HOME, you cannot time the market. Most people simply do not have the luxury of time when looking for a place to live. I have one past client who affectionately refers to herself as my “forever” client. We looked (or rather waited and pounced) for over a year for her “dream” home to come on the market. However, the majority of my clients who are buying their homes have a limited amount of time to purchase. People who are relocating often have only one or two weekends to make a decision. Their options are limited to the inventory available when they have to make that decision. Other people have to sell their home before they can buy their next home. Again they have a short window of time to search because they have to find a home AND arrange for the details of their purchase so that it coincides with the sale of their current home. With the exception of the first time home buyer who is free-loading at their parent’s home, almost everyone is constrained by time.
Timing is also the key to selling. When it’s time for you to sell your home, its value will be determined by the sale of similar homes in a close geographic area at the timeof your sale. But when you are purchasing a home it’s very difficult to predict WHEN you are going to sell? Will you get transferred and take a new job out of town? Will your third baby be a set of twins that literally causes you to out grow the occupancy limit of the home you are living in? Will you need to sell your home to move closer to an aging parent?
What’s happening in the larger economy and on a local scale within the 6 months of your sale will determine the value of your sale. And since those things are pretty much out of your control, don’t hang your retirement plans on home ownership. Makes sense to me
Fox Park is a fantastic neighborhood tucked between Tower Grove Park and Lafayette Square. Most home buyers that I meet aren’t really familiar with it. When I drive them through the area, they are impressed with the architecture and the tree-lined streets. They are shocked at its affordability and they immediately open their search criteria to include more than just Shaw and Tower Grove South.
Speaking of affordability, let’s compare value. The magic formula these days is a 3 bed and 2.5 bath home that includes a master suite. In Fox Park, 2650 Armand is available and is listed at $179,900. Recently renovated, this home includes updated systems and a new(er) roof. The kitchen features a HUGE center-island with granite top and a MASTER SUITE
In Tower Grove South you can find something with 3 beds and 2.5 baths starting at $250,000. However to find a home with a kitchen as desirable or a master bath as luxurious, you would need to pay $150,000-$200,000 more. (See screenshot of sold values in TGS below). To put this in perspective, by living a couple blocks further from Tower Grove Park, you can save at minimum $100,000 !$!$!$!$!
As Fox Park takes off there are more and more restaurants calling the neighborhood home. The Purple Martin just went in at the corner of Shenandoah and California. Kakao Chocolate is at the corner of Shenandoah and Jefferson. Van Goghz Marini Bar and Bistro is at the corner of Shenandoah and Compton.
Fox Park itself has one of the best playgrounds of any city neighborhood. The neighborhood has its own “Farm” on Russell Blvd. The home-owners in Fox Park are involved and friendly. Don’t believe me? Check out this FB thread
Want to learn more about Fox Park? Join their FB page or read this post on City Talk.
Want to view 2650 Armand and become a part of the neighborhood? Call me! 314-413-7086
While IKEA coming to St. Louis is not necessarily breaking news, the selected location at the corner of Forest Park Parkway and Vandeventer was still a surprise to some.
In regards to the location question, the St. Louis Business Journal (12/4/2013) quoted an IKEA spokesman as saying “highway visibility and accessibility; centrality in the region; and available land” were keys issues in this particular site selection.
IKEA is part of Phase III of the Cortex Development whose objective it is to “Transform a 200-acre midtown industrial neighborhood into vibrant, 24-7 live-work-play-learn innovation community.”
(Slide taken from a presentation given to the Urban Affairs Committee of SLAR in March 2014)
The National Association of Realtors Chief Economist and Senior Vice President of Research, Lawrence Yun, spoke to the St. Louis Association of Realtors this month. Here are some highlights from his presentation.
The St. Louis residential retail market has rebounded. People are no longer asking “Have we hit bottom yet.” The data shows that we hit bottom between 2010 and 2011. The number of sales and housing prices have increased year over year for the last two years.
Nationally the median home price has increased almost 20% over the last two years. Homeowners who couldn’t consider putting their home on market two years ago because they were under water may now be in the black. Which is great because the Exiting Home Inventory is down near a 13 year low.
Lack of inventory will drive housing prices higher and the inevitable rise in mortgage rates will hurt the affordability of homes. Meaning a person considering buying a home NOW will be able to get more for less now. While a person who waits a year, will not only have to confront higher sale prices, but will also be paying higher interest rates.
Two take aways from Forecast #3:
If you were ever considering buying rental property as an investor, now is the time to do it. Home purchases will become more expensive keeping solid renters from becoming solid home owners. These will be ideal tenants.
If you are considering purchasing a home, now is the time to talk to a lender and Realtor about your options. Prices are rebounding and interest rates are increasing. A $1300 monthly mortgage payment today means you can afford a home with a list price of $272,300 with a mortgage interest rate of 4% versus a list price of $228,900 with a mortgage interest rate of 5.5%.
Remodeling’s Annual Cost v. Value Report is out. The report which catalogues the 35 most popular renovation projects and shows how those projects maintain their value at resale is divided by region. Missouri is in the “West North Central” region.
Top 3 Interior Renovation Projects
Adding and Attic Bedroom: Percentage of Cost Recouped in Resale 68%
Basement Remodel: Percentage of Cost Recouped in Resale 63%
Minor Kitchen Renovation: Percentage of Cost Recouped in Resale 65%
Top 3 Exterior Renovation Projects
Upgrade to Fiber Cement Board Siding: Percentage of Cost Recouped in Resale 72% Wood Deck Addition: Percentage of Cost Recouped in Resale 68% Window Replacement both Vinyl and Wood: Percentage of Cost Recouped in Resale 62%
I have some clients who are getting ready to sell a property that they have been leasing for the past two years. Their tenants’ lease is up this May but they weren’t sure if they should actively market the home while their tenants were still in the home or if they should wait to list until the tenants move out.
In this particular case, I have viewed the home in its current condition and done extensive data research on the neighborhood. So not only do I know what homes are selling for, I know how much inventory is out there and how long it is taking. I am confident in the advice that I am giving them. But, it is important to remember that every situation is different.
Here is an excerpt from our correspondence
It will not hurt you to list the home after the traditional height of Spring for three reasons.
There will be less active competition.
Your home will be dropping into a pool of ready buyers who missed the opportunity to buy in Spring (Those buyers may also be feeling pressure to find something before Fall.)
The Spring season will set more comps and we will have more data to point to justify our list price.
The two most important reasons to wait until the tenants have moved out:
Photos drive foot traffic
Show Ready Sells Home Faster
While your tenants have done a good job of keeping the home in good shape, there is no way they will be able to clean up enough for me to get the high quality photos that drive walk-thru traffic. Part of that has to do with their *dorm room* furnishings and the other part is that there is really no incentive for them to be as meticulous as you would be in keeping the home SHOW READY at a moment’s notice.
What You Can Do Before the Tenants Move Out
Set a Pre-Listing Consultation with Our In-House Designer.
Sprucing up the exterior (exterior repairs and landscaping)
Start generating interest online with our COMING SOON web pages.
Here are two examples of Circa listings. One is a CIRCA SHOW READY home occupied by the owners who are trying to sell. The other was a tenant occupied property also a CIRCA listing. Tenants can be coached, but they are just not as invested in selling or showing as an owner would be.
Here are the highlights from the 4th Quarter Maris report for 2013!
Simply put: Prices are up. Inventory is down. In fact, the available housing stock is down nearly 20% from just one year ago. Looking at the bar graph, you can see that the gap between Homes for Sale and Closed Sales has dramatically decreased since 2011. For the 4th quarter of 2011 only about 1/4 of the homes listed actually resulted in a closed sale. For 2013, nearly half of the listed homes resulted in a sale.
Most salient observation: There is only a 4 month supply of homes for sale in St. Louis County. Most economists say a 6 month supply is a healthy market. A 4 month supply is leaning heavily toward a seller’s market. Nearly 2/3rds of the homes being listed are selling. On average, those homes are selling with 71 days.
Are you searching for your next home by elementary school options? Here is a quick run down of the homes currently available within the Flynn Park Elementary School boundary in University City. Currently there are 20 homes available priced between $209,900-$750,000. Here is the list as of January 6, 2013.
Of the ten homes priced between 200-300K here is my favorite: 7369 Pershing Ave #2E, University City 63130 listed at $245,000. 3 beds, 2 full baths, 1711 square feet. Condo fee: $250
6956 Pershing: 4 beds, 1 full and 2 half baths and a 2-car garage. Listed at $349,999 is the only home priced between $300-400,000
7463 Kingsbury: 4 bedrooms, 1.5 baths and 2-car garage is listed at $439,900 with cozy wood burning fireplace
7316 Kingsbury Blvd: 4 bedrooms, 2.5 bath and 2 car garage. Includes Master bedroom+partially finished LL. List price $585,000
6906 Washington listed at $750,000 in sought after Aimes Place has 4 bedrooms and 3.5 baths with a 2-car garage. (view from the back)
Dawn Griffin Real Estate Blog
I’m an experienced Saint Louis Realtor specializing in St. Louis City as well as neighborhoods like Webster Groves, Maplewood, Clayton, University City and Ladue. With an undergraduate degree in Education and Master's in Urban Planning and Real Estate Development — I have the heart of teacher.
I have been immersed in Residential Real Estate, helping home buyers and sellers understand the market, manage the ambiguities and negotiate the best terms for themselves. I am consistently voted a 5-Star Agent by clients and featured as one of St. Louis' Best Agents in Saint Louis Magazine.