Features:
Large Update Kitchen with Peninsula/Breakfast Bar
2nd Floor Laundry
New Two Car Garage
Double-hung Vinyl Windows
Newer AC
Pine and Bamboo Floors
Functioning Pocket Doors
Deck
Privacy Fence
Landscaped Yard with Brick Path
Walkable Lifestyle
Tax Abated
Master Suite with Double Bowl Vanity
Historic Details
Modern Systems
When I am getting ready to put a new listing on the market, determining the right listing price is one of the most important tasks. In order to properly price a home for sale, REALTORS® prepare a Comparable Market Analysis (CMA) for the property. The purpose of a CMA is to use historical market data — namely, similar property listings within a reasonable radius of your home that are sold, active or pending — to determine a range of estimated value in the current market conditions for your home.
Another important component in determining price, requires an understanding of the current listing inventory. The CMA does not take into account unique features of the home, updates that have been complete, or special conditions. In an effort to price the home correctly, it is important to know how the subject property stacks up to the active competition in terms of condition and updates.
Here’s a quick example:
Subject property: Tower Grove East, 2 story brick home with 2 bedrooms (one is a master suite), 2.5 baths, 2 car garage and 2nd floor laundry with 1890 square feet. Updated kitchen and baths. System updates include electric, plumbing and HVAC, new windows and newer roof. Landscaped backyard with privacy fence. Very very clean and well-kept and completely buttoned up around the edges. It was renovated and updated just 6 years ago. The new owner has done additional work since purchase including installing new bamboo floors on the second floor, ceramic tile in the bathroom and building a garage.
Search Criteria: For this search I looked at homes in Shaw, Tower Grove East, Fox Park and Tower Grove South. These neighborhoods all border one another and in my experience in working with buyers, if they are interested in one of these neighborhoods, they are generally open to looking at all of them. In order be part of this search, a home had to have between 2-3 bedrooms and at least 2.5 baths. The subject property has 2.5 baths and most homes with 2.5 baths have a MASTER SUITE. The master suite is a special feature to be taken into account when pricing. The price range was limited to $160,000-200,000.
The Sum of the Above Report:
There are 9 current active listings ranging from $164,900-$199,900. The one that is most similar (2beds/2.5baths) is priced at $179,900. It is on a busier street and does not have a garage. The average price of the active listings is $183,489.
There is one pending sale. It also has 2 beds/2.5 baths. It’s a town home vs a single family and it does not have garage. It was listed at $165,00 when someone made an offer. The selling price will remain a mystery until closing.
There are 16 sold properties on the list. Priced between $162,000-$190,500. The tough thing about the data in the sold category is that none of them are 2 bedroom homes. But the subject property has a dedicated space for an office which is usually what that third bedroom ends up being anyway. And while all of the sold properties have 3 bedrooms, not all of them have garages. A price adjustment would have to be made either way. The average price for this category is $180,731.
This is all just background. This list can be further narrowed or broadened. For instance, there is one more property that didn’t find its way on to this CMA. It is a home just a few blocks away from the subject property. 2 beds/1.5 baths and a 2 car garage.That home was on the market for 214 days and finally sold for $168,000. I viewed that home while it was on the market, so I know that the bedrooms were smaller and the quality of work was not as good. It had 1105 square feet and the subject property has 1890. The subject property has a master suite, the one that sold for 168K did not.
So what will this home be priced at? Stay tuned. It’s coming soon!
*Please note that this is NOT the process for appraisals. That process is much more detailed and has to conform to the lending guidelines. The above just notes the first steps in determining listing price.
Below is a Guest Post from James Kelley regarding Govenrment Backed Loans
Although requirements for conventional home loans and even government-backed mortgage
plans have become stricter, three programs continue to remain buyers’ favorites and offer a
multitude of incomparable benefits: FHA, USDA and VA loans. With decent credit scores and debt to income ratios, the unique opportunities provided through these three programs increase. However, they are also known for being prime home loan programs that help low income families achieve their dreams of homeownership. What do they offer and how
can they help?
FHA and USDA Loans
For USDA loans, the U.S. Department of Agriculture secures them. So, only homes within rural localities can be bought with this mortgage program. Different from the FHA, it does not require a down payment. The FHA loan asks for a 3.5% to 5% down payment on a home, and conventional loans can be up to 20% and more. Other perks include 100% financing, no monthly mortgage insurance fees, and the actual mortgage payment is sometimes lower than the FHA loan. There are household income limits for the USDA loan.
The Federal Housing Administration insures the FHA loan. Unlike the VA and USDA loan, the FHA has no location or vocation requirements. It’s open to everyone.An FHA loan has lower closing costs and no income limits, which is ideal for lower to middle income families. Another great feature of all three programs alike is the buyer can use gifted or borrowed money towards payment of the home. Times are hard, and sometimes people need to go to relatives or friends for a little financial help. Conventional loan programs will not allow such assistance.
VA Loans
The VA loan program is a unique plan for service members. Not many U.S. Veterans utilize or even know about the Department of Veteran Affairs offer to back a home loan for them. In a few short years, the loan has gained increased popularity among lenders.
It offers
• A stress-free process
• 100% financing
• Less strict credit and income standards than conventional loans
• No prepayment penalties or private mortgage insurance payments
• A buyer can receive a loan up to $417,000
It’s been a good year for veterans. An extension on the tax credit, plus the U.S. Department
of Housing and Urban Development’s efforts to provide affordable housing to eligible military
members makes now a great time to buy a home.
How to obtain a VA Loan
• A veteran must be able to show that he or she was honorably discharged, or served at
least 90 days on active duty during war or 181 days on active duty during a time of peace.
• One may also be determined eligible if one is a spouse of veteran who is missing in
action, a prisoner of war or died from service related events.
• Find a VA Lender.
• Fill out a Certificate of Eligibility form.
• Find a certified <a href=”http://www.stlouishomeappraiser.com/”>home appraiser</a>.
Some cons
• In most counties, the VA only secures half of the loan.
• They are not open to everyone. You have to be a veteran.
• In most cases, there will be a small funding charge.
All three programs can help one’s family to potentially obtain their dream home. However, pay
close attention and research which program will save the most money. A lending counselor can
help families to discover their options.
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.
