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TOP 10 REASONS IT’S A GREAT TIME TO BUY A HOUSE IN ST. LOUIS
1. Selection, selection, selection. There are about 25,000 resale homes on the market in St. Louis. Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory dropped. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of residential homes, attached homes, condos, and townhouses. There are lots of options in this market.
2. No Bidding Wars. In 2005, multiples offers on good properties was still the norm. Often if you weren’t quick enough, you’d lose your “dream home” in the feeding frenzy of the bidding war. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market. You are in charge!
3. You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.
4. Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.
5. Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2005 many buyers waived these contingencies in order gain an advantage with multiple offers.
6. There are plenty of specs. In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines. Now builders covet your interest and make concessions to get your contract.
7. Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
8. Few, if any investors. It is estimated that one third of all sales in 2005 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.
9. Location, location, location. Today's buyers can find homes closer to work. In the past buyers flocked to further and further from St. Louis downtown and Clayton in order to find affordable homes. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines, and relatives.
10. Rates are great! The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back and they are awesome! Rates are 5.75 to 5.87% for a 30 year fixed rate! If you are thinking of buying, it’s a great time to be you so jump on in!