A short sale is a property that will sell for less than the balance owed on the mortgage. If the seller is going through hardship, owes more on the property than the value of it, then it can be a short sale.  A short sale can be a way to get a great deal on property, but the buyer needs to be aware and informed. Banks will only accept a short sale if it is in their best interest financially, and deemed better than foreclosure on the property. Banks are under no obligation to approve a short sale. Depending on the bank, it can take 2 weeks to several months to get an approval (or not), and in the meantime, even if the buyer is able to wait, there could be snags that are unforeseen. The best advice is to work with a Realtor who has experience in short sales. Your Realtor will act as a guide for you, and protect you in these unfamiliar waters.

 A 1% INCREASE IN MORTAGE INTEREST RATE CAN REDUCE YOUR “BUYING POWER” BY APPROX 15%!

For example, if you could afford a $200,000 home at a 4% interest rate and the rate rises by just 1%, then the same principle and interest payment might only buy a $170,000, or 15% less home.

1. Make sure you are credit worthy. Check your credit history, build up your rating if needed, and fix any errors on your credit report.
2. Consider buying vs. leasing. With costs of buying and selling, plus time needed to build equity, you could end up losing money if you move too soon.
3. Buy a home you can afford. The rule of thumb is you can afford housing that cost about two and one half times your salary, but there are calculators available online to help you figure exactly what you can afford based on income, debts and expenses.
4. You may qualify for a loan with less than 20 percent down. Meet with a lender to discover programs that you qualify for.
5. Even if you don’t have children, buy in a good school district. When it comes time to sell, good school districts are a top priority to many home buyers.
6. Get a REALTOR®. Sure, you can go online, and go shopping. But you’re better off with someone who has your best interests at heart and a buyer agent can help you in negotiations and strategies in the bidding process.
7. Choose wisely between points and interest rate. If you plan to stay in the house a long time, it’s usually better to pay additional points to lower the interest rate.
8. Get pre-approved before house hunting. Know upfront what you can afford to save you time lost looking at what you can’t afford and you will be able to make a serious offer when you do find one you want.
9. Be a smart bidder. Ask your REALTOR what similar homes in the area have sold for, and if homes have been selling for 5% less than asking price, then work with your REALTOR to make a competitive offer.
10. Hire your own home inspector. One can be provided for you, but choose one that you feel will do a thorough job and have your best interest in mind.

With new housing data released last week, there are some glimmers of hope in the real estate market, which can lead to more sellers stepping out to sell their properties. The federal government is trying to keep interest rates low and stable by extending the federal funds rate near zero through 2014. This move helps mortgage rates stay under 4 percent, with a little fluctuation here and there.

Foreclosures are decreasing in the St. Louis metro area, and the supply of homes for sale is also down, according to the St. Louis Association of Realtors. The national organization checks in with good news too; existing home sales rose by 5 percent in December, higher than a year ago. To be realistic, we do realize there’s a long road ahead of us and we, as a community, may be taking baby steps, but there is some cause for hope as 2012 moves along.
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Kitchens rock! To build more interest in your property or just spiff it up for your family, the kitchen is the best place to start. To get ideas, learn about paint colors, hardware, cabinets, energy savings, green products, anything that goes in your kitchen and the rest of the house, we think you should attend the St. Louis Builders & Garden Show coming up Thursday, February 23 through Sunday, the 26th at America’s Center and the Edward Jones Dome in St. Louis.

This is the best place to start any remodeling project and learn what buyers are looking for in their next home. With 500 exhibitors, a wide range of featured speakers you can’t go wrong.

Also coming up is the Builders St. Charles Home Show April 2012 at the St. Charles Convention Center. More about that later.

Big changes are in store for St. Charles residents and those who use the Blanchette Bridge regularly, going from St. Louis County and back. The good news is the westbound section will be replaced with a new, safer modern span. The not-so-good news is travel will be impacted when the westbound section is closed for renovation.

While inconvenient in the short term, rehabbing the westbound lane will add even more appeal to St. Charles, our businesses, economic environment and livability.

The construction, slated to begin around November, will take less than a year, according to the contractor Walsh Construction Company. However, between now and actual construction, anticipate nightly lane closures for utility work.

To keep up with the latest bridge info, go to the Missouri Department of Transportation’s website. You can also sign up for periodic email alerts or call MODOT at 888-275-6636.

When the westbound span is entirely closed, traffic will be routed to the eastbound span (three lanes west and three lanes east). Lanes will be reduced to 11 feet with no shoulders. Top speed is 45 mph.

Motorists are urged to use Route 370 and Route 364 (Page Avenue) instead of the Blanchette Bridge compressed lanes to avoid traffic snarls. It wouldn’t hurt to begin practicing your new route now so that when the time comes, you’ll be an old hand at getting to and from St. Louis County.

Because of traffic rerouting, the bike lane on the Route 370 Missouri Bridge has been closed and re-striped to add a fourth traffic lane. The bridge will be re-striped again in 2014 and the bicycle lane restored.

An important note here: Slow down! Tempers are bound to flare with frustration on the rise, but be considerate and honor the 45 mph or lower speed. Getting to your destination two minutes early is not worth the life of a construction worker or another motorist. Put yourself in their place; what would it feel like if you were working on the bridge surface and cars are whizzing by at 65 miles per hour. We think terrifying.