Below is an example of a note I just sent along with an offer. To be honest I am not sure if this works or not, but this is what I have been sending along with offers to purchase when my clients write contracts on foreclosures. Often I feel like these explanations fall on deaf ears and I am never really sure if the listing agent passes them on. However, our contract was ultimately accepted for $10,000 higher than the offer that accompanied this note. The seller (bank) came down 15k from their list price after the property had been on the market for 19 days.

Dear Listing Agent:

Please present this note along with all MLS printouts to your asset manager and please ask that it be forwarded to his/her manager as well. This should accompany our most recent offer of $xxx,xxx with a closing of July 23^rd.

Explanation of Included Data
Item 1: Searching the MLS for the address XYZ Street reveals that this home was listed several times since 2002 and was unsuccessful at selling at market value every time. Please note that the most recent expired listing was in 11/2003. At that time the home was in superior condition and was unable to sell for $339,900.

Item 2: This is a map search of the Subdivision including all SOLD properties from the present to June 2000. The highest sold price for this subdivision was $349,900 in 2008.

Items 3-9 Include CMAs of the immediate neighborhoods. (Exact boundaries of map search were included here). Below are the results of the average days on market, price per square foot and % of list price to sale price

2004-2005: 66 CDOM $166.74 96.34%
2005-2006: 111CDOM $182.70 92.66%
2006-2007: 132CDOM $170.83 88.26%
2007-2008: 107CDOM $166.56 92.48%
2008-2009: 66CDOM $153.88 88.64%
2009-2010: 57CDOM $147.36 89.73%

Note that for 2009-2010 there are two versions of the CMA. One version eliminates 12345 Lane which sold for 115% of list price. This is obviously an exception.

Summary:

XYZ Street failed to sell for $339,900 in a good market when it was in superior condition. To get this home back in the condition it was in in 2003 (when it failed to sell) this home will need between 50-70K of updates. At the buyers’ current offer price of $xxx,000 if they invest $70,000 in renovations they will be into this property for $340,000. The highest sold price for any house in this subdivision in the last ten years was for $349,900.

In the current market (within the last year and with the area mapped) homes are selling for approximately 89% of list price with in an average of 40 days on market. 89% of current list price would be $262, 105. The buyers’ current offer is 3% higher than that. Please ask the bank if they would like to sell the home now for 91% of asking price or wait 3 more weeks and sell for no more than 89%.

It is true that this home has only been on the market for 19 days and has already received an offer. However, I am sure based on the feedback you have received from other showings a low offer was no surprise. The systems are nearly as old as the house. The kitchen and all the baths need to be completely updated. Every room needs cosmetic attention in terms of wall repair and paint and all of the floors need to be torn out and re-installed. The rear exterior roof is caving and has caused interior water damage. Most of the windows and skylights need updating. And the condition of the pool is unknown.

This is not priced for an investor and is therefore only marketed to a limited pool of buyers. There are not many buyers in this price range that are willing or financially capable of taking on such a huge renovation. With national forecasts stating that the St Louis County market has not yet hit bottom, the historical MLS data showing that home values in this area have steadily decreased since 2005 and the likelihood that this buyer will have to relocate within 5 years, this will likely be the best offer put forth by any buyer.

Thank you for your consideration and please let me know if you have any questions

In addition to Sunday Open Houses, which agents host to give their listings exposure to the buyer community, Realtors often host Agent Open Houses which typically happen on Tuesdays.

Traditionally these Tuesday Opens were held specifically for the office who was presenting the listing. It was a way to get all the agents in the office familiar with the property so that if anyone called the office, any agent would be able to answer the caller’s questions even if it wasn’t that particular agent’s listing.

Fast forward to the 21st century where our industry is technology driven. With the just a few clicks most people can get all the info they need about a home via the internet. If someone calls the office, an agent can quickly access all the relevant information and relay it to a caller. So the Tuesday tour has gone out of fashion.

However recently I have been participating a monthly event organized by Dennis Hayden a city real estate broker and attended by city agents which puts a different spin on the Tuesday tour. This tour is open to all listings that are active in a specific neighborhood. Each month the tour focuses on a different neighborhood and recruits agents from all different agencies to showcase available homes the chosen area.

Below are photos of homes I toured at Tuesday’s Agent Open along with the Realtors who are representing them.

Here is my listing at 4265 Humphrey which was open on Tuesday. It’s 2 bed/1 bath with an office with an amazing yard complete with privacy fence listed for $114,900.

This home, listed by Annie Trachsel, is on the corner of Wyoming and Roger. It has 3 bedroom and 1 full bath. The back yard is really nicely landscaped and has a Pergola. It’s listed for $185,000.

Above is Debby Ervin at her listing at 3821 Hartford. It is 5 bedroom, 2.5 bath historic home listed at $339,000. Great curb appeal!

3959 Wyoming is listed by John Grass and is priced at $299,900. The home is expansive with 4 beds, 2.5 baths and basement that’s perfect for a “man cave”.

3210 Morganford is listed by Karen Schindler for $179,900. It is a town home with 2 beds and 2 baths and some really cool finishing touches.

The lovely Mary Walls was hosting the agent open on Tuesday at 3847 Utah Place $435,000. Oh Utah Place…what an amazing street! This home has 4 beds and 2.5 baths.

3722 Connecticut has 3 beds and 2 baths and is listed by Sarah Foley-Davis for $229,364. For all this house has to offer, the price is really affordable.

3153 Portis, listed by Tim Tanz is massive with 4 beds and 3 bath. It is listed for $279,900. Close to the park and walking distance The Royal.

Reasons I Love This Concept

First its great for sellers. Having 15-25 agents view your home is a great way to get a lot of feedback in a short amount of time. After viewing agents fill out a survey that asks about price, condition and needed improvements. This data gives the home owner a lot of valuable information.

Second it allows agents from different brokerages a chance to actually meet each other as colleagues. You would be surprised at how smoothly sales go when the opposing agents have established a rapport. When agents have the opportunity to develop a respectful working relationship there is a lot less posturing and a lot more communication. And let’s face it, most of goes wrong in a real estate transaction could be easily avoided with clear communication.

And finally it allows agents to not only keep up with the active inventory but also helps them gain a greater perspective on the neighborhood as a whole. Viewing several listings in one area gives a better idea of price and available housing stock. Skimming through these listings you will begin to develop an overall picture of the neighborhood.

Below is a guest blog written by Mark Anderson from Pulaski Bank. Recently I have run into some issues helping buyers finance the purchase of condo. I asked Mark to explain what the difference is so that people can be more prepared when making an offer.

Approval for a mortgage goes beyond assessing the credit risks of potential borrowers. Mortgage financing, unlike credit cards and student loans, is based on physical collateral in the form of houses and condos. This may seem elementary, but it is crucial for understanding the problems we currently face when financing condos.

For a house, an appraisal based on recent comparable sales in the same area is the only evaluation needed to prove the value of collateral. For condos, an appraisal is not enough as a condo is part of a larger building. The building itself is managed by a home owner’s association, or HOA for short. For a mortgage bank to approve your loan on a condo, it must evaluate the covenants and budget of the HOA along with the makeup of the owners and their ability to pay monthly dues and assessments.

This evaluation process has become much more strict over the past 2 years, but not without reason. Consider the common, real life cases of HOA’s that cannot afford to make necessary repairs because members are behind on their dues. In many cases HOA’s like this don’t have a general reserve fund at all. If banks only evaluated you as an individual, they simply wouldn’t be assessing the risks related to the collateral as a whole.

The good news with banks tightening guidelines is that buyers approved for loans on condos can count on the fact that their new HOA is well organized and that the members keep the place well funded. It can be frustrating hearing from your loan officer that you cannot buy a particular unit, but it’s important to keep the bigger picture in mind. What may seem like a silly technicality affecting your ability to buy a condo is ultimately based on how well that condo is going to maintain its quality and value.

Here are couple of good questions to ask when doing on research on particular condo.

• Is the building managed by a professional management company?
• Can I obtain a copy of the condo association board meeting minutes?
• How large are the HOA’s reserve funds?
• Have the condo fees increased in recent years?
• Is it possible to find out the delinquency rates of present owners to see if they are paying their association dues on time?

This Sunday, March 28th, is the date for the 11th annual big BIG Tour. There will be over 150 properties at all price levels available to tour and purchase in neighborhoods all across the City!

The tour is FREE and open to all. Just stop by the City Living Expo and Big BIG Tour starting point at Compton Drew ILC Middle School, located at 5130 Oakland Avenue just west of the St. Louis Science Center. Pick up your FREE program where all open house times and addresses listed and get out and tour the city.

Two of my current listings will be open to view this Sunday, March 28th from 10-2PM.

5512 Finkman in Southampton/Princeton Heights is a 2 bedroom, 1 bath bungalow with a 1st floor stackable washer/dryer. The hardwood floors were refinished last week and the bedrooms have been freshly painted. This home boasts a significant amount of updates including a newer roof, thermal windows and mechanical systems. MOVE-IN Ready and a bargain at $159,900!

2623 Nebraska in Tower Grove East is a 4 bedroom, 3.5 bath townhome on a street where recent sales range from 200-240K. This townhome has been completely updated with newer mechanical systems, electric and plumbing. The large kitchen a has center island and full stainless appliance package. Complete with a 2-car garage-port this home is available for $194,900

I get excited about all my SOLDS, but this one was a major accomplishment. 1411 Hebert is the first full renovation to sell in Old North St. Louis for market value. Of course I would like to believe it was the incredible marketing and fierce sales tactics of the agent but the house really sold itself. It truly was one of the most original and thoughtful renovations that I have seen. In fact for the duration of the listing, it was one of the most popular houses Circa had. Additionally it had no less than FOUR written offers. In the end there was one contract accepted as well as one back up offer. The folks in the back up position went so far as to offer to buy the first offer position by giving the people in first position $5000 and refunding any costs they incurred while under contract. That was a first for me. Hats off to the former owners who put so much of themselves into the renovation! And congrats to the new owners who are so looking forward to becoming an integral part of the ONSL community!

HOPE (Home Ownership Purchase Enhancement) will help some qualified Missouri families pay their real estate taxes in 2010.

MHDC is allocating $15 million towards the HOPE program. Qualified Missouri families that purchase a home in 2010 are eligible 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 HOPE property tax incentive and the HOPE energy-efficiency incentive is $1,750.

To be eligible home buyers must purchase in 2010 with a contract having been executed no earlier than January 1, 2010. The $15 million is available on a first come first serve basis and does not have to be paid back as long as the homeowner lives in the property a full year after receiving the funds. To qualify buyers must meet certain income guidelines and purchase in target districts.

View a list of properties available in census tract 1241.

View a list of properties available for sale in census tract 1224.

View a list of properties in census tract 1164 that are currently for sale.

View a list of properties in census tract 1193 that are currently available for sale.

Here is a link to the FAQ’s regarding the HOPE program.

All map files can be found on the MHDC website.

I recently read Farm City: The Education of An Urban Farmer by Novella Carpenter. Ammmaaaaazing! Check out the New York Times Book Review. In sum, the memoir is about a woman who begins by doing some squat gardening on a vacant lot in “the ghetto” next to her apartment. Ultimately she ends up raising her own food and making charcuterie of her pigs, Big Boy and Little Girl. The book spans several years and takes place in Oakland CA. Entertaining and educational, it discusses food security and the importance of knowing where your food comes from.

Of course the memoir got me thinking about community gardens and the possibilities of vacant lots in St. Louis. The food security movement is taking hold here and St. Louis has many resources for urban farms and community gardens. Below are just a few pictures from around my neighborhood.

Tower Grove East has a prolific community garden. I know it doesn’t look like much now, but in the Spring Summer and Fall this is one of the most beautiful corners in the neighborhood. Want to live here?

The same goes for Fox Park Farm. Located at the corner of Russell and California, this space is glorious when in bloom and there always seems to be someone from the neighborhood out there working. Check these home sale listings if you want to know more about housing in the Fox Park neighborhood.

City Seeds is another enterprise altogether. It’s mission is to foster self-sufficiency in addicted and chronically mentally ill homeless; increase production and distribution of locally grown fresh food for low-income residents, and provide nutrition and food preparation/preservation programs.

As I mentioned above, there are ample opportunities to farm in the city. But there might just be one more coming soon. Check out the photo below. This is a vacant lot at the corner of Minnesota and Arsenal across from the old Bavarian Inn. It is currently owned by a notable St. Louis developer, who taking a cue from the benevolent lot owner in Carpenter’s book, has offered to let neighborhood folks start planting. This blog post is in fact a bit of a fishing expedition to see if there are people out there who would be interested in the opportunity to take on a raised bed or two. There would be no charge to garden, you would be welcome to all your own produce and the owner is even considering providing the raised beds.

Please let me know what you think…..

City Garden Montessori is in its second year as a St Louis City Charter School and is now accepting applications for next year’s kindergarten enrollment. Applications are due February 12th. Please contact Christie Huck at 314-664-7646 for more information

Recently one of my past clients invited me to visit City Garden Montessori. She has been a St Louis City resident and advocate for a long time, but had been sending her oldest son to a private school in Clayton. Last year they moved into the Shaw neighborhood and made a very fortunate discovery: City Garden Montessori. Since enrolling her son in the St. Louis City Charter school, she has been really excited by the experience and has been thrilled with the changes she has seen in her son. The Montessori Method of self direction and active engagement has done wonders for her highly gifted and very active 6 year old.

The school is located at the corner of Spring and Russell in the Shaw neighborhood. There are four classrooms in total including the pre-school program. (Pre-school is tuition based and serves ages two and half-five). The charter school includes one kindergarten class (age 5) and two elementary classes which in traditional Montessori fashion are mixed ages similar to the traditional grades of 1-3. Each classroom has two teachers. EACH CLASS HAS TWO TEACHERS!

When I visited one of the elementary rooms I saw lots of independent study, a math presentation and a lot of reading. In addition to academics the children have work tasks which include cleaning chores, animal duty or volunteering at a community soup kitchen. Additionally there is no shortage of parent volunteers. Some parents have organized a gardening committee as evidence by the raised beds and composting stations outside.

To learn more about Montessori Education in general click here.

To learn more about Montessori Education in St. Louis click here.

From the City Garden website:
City Garden Montessori Charter School is a tuition-free, public elementary school, serving the Botanical Heights, Forest Park Southeast Shaw, and portions of the Southwest Garden and Tiffany neighborhoods in the City of St. Louis.

Don’t live in the identified boundaries? click here
There are ample opportunities to move into the area with homes ranging from the low 100s to the 600s
If you are interested in the school but don’t live in the area, call anyway. If there are open spots in the kindergarten, they will consider children who live outside of the identified area.

Whew! Been a long time since I updated the blog. I have to admit I slacked off in December as I was winding down from a very busy and productive year. I thought January would be the opportune time to start blogging a new, but the phone hasn’t really stopped ringing and it looks like I am going to be busy with some wonderfully diverse new listings.

So as I am easing back into it, let me just start with a few sneak peeks at some coming soon properties.

Tower Grove East

29xx Minnesota: 3 beds/1.5 baths and 1 car brick garage. If you love wood work then you will love this house! All system updates were done about 5 years ago along with the roof. Extra insulation in the attic keeps this home particularly warm and the fully fenced backyard with brick patio is an oasis! Wood floors throughout and custom School House fixtures complete the package. $159,900

Shaw

40xx Shenandoah: 2beds plus office/1.5 baths and 2 car-garage-port. With approximately 1700 SQ FT of living space and full basement. First floor has woodfloors with living room, dining room and large kitchen. Upstairs has 2 large bedrooms punctuate by a huge office $174,500.

Gravois Park:

36xx Michigan: 3 beds/1 bath and 1 car garage. The first floor of this 1.5 story Craftsman is perfect for entertaining with a circular flow and hardwood floors. Upstairs there are three large bedrooms and 1 full bath. The closets are a nice surprise. The wide front porch is inviting and the two story enclosed rear porch adds a mud room and office to this home. $85,000