Note Well:This St. Louis home is a short sale — We are Certified Distressed Property Experts.  We help people with distressed properties.

Super opportunity for the handyman! Located at the back of a peaceful cul-de-sac, this spacious all brick 4 bed/3 bath ranch residence has everything you’ve been searching for. The living room & dining room share a tall cathedral ceiling lending a huge space to welcome & entertain your guests. The family room has a full masonry fireplace & sliding glass doors to the private aggregate patio. You’ll be very impressed with the extra-large kitchen & breakfast room. The master suite includes a second set of sliding glass doors to the back patio, a full bath with whirlpool tub & His&Hers closets. The functional space is tremendously expanded with the huge lower level. There is a large recreation room with brick fireplace & built-in brick bar, plus 2 additional rooms & the third bathroom. The privacy… fenced backyard features a large aggregate patio surrounding an in-ground pool. Don’t miss out on this one. $203,000.

This is not listed by Nolting Real Estate.  We include it here because it is a good buy in a subdivision that we love — Westbury Manor.  We’ve sold a number of homes in Westbury Manor in the last year.  Properly remodeled, this home should command about $300,000.  It’s a good investment.  Call us to schedule a tour of 162 Saddleford — 314.267.2636.

Search for other short sales at our St. Louis MLS search website.

Housing starts in St. Louis are up.  Nationally, a 22% surge represents the first increase since June when they rose 11%.  

Applications for building permits, considered a reliable sign of future construction activity, rose 3% to a seasonally adjusted annual rate of 547,000 last month. Economists were expecting permits to fall to 500,000.

A past article about housing starts in St. Louis.

For more information about housing starts, please visit my St. Louis Home Guide website, or call me at 314-267-2636.

And, to know what your house is worth in today’s market, please visit “What’s my St. Louis home worth?”

Russ

WASHINGTON (MarketWatch) – Boosted by an 82% increase in construction of apartment buildings, U.S. housing starts surged 22% in February to a seasonally adjusted annual rate of 583,000, the Commerce Department estimated Tuesday. It was the first increase in eight months. Construction of new housing units had plunged 38% in the previous three months before February’s unexpected jump. Economists had forecast a further drop to 456,000, despite an expected surge in multifamily construction. Building permits, which are less volatile than the starts data, rose 3% in February to a 547,000 annual rate. Permits for single-family units rose 11% to a 373,000 rate, the largest percentage gain in 18 years.

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For answers to all of your St. Louis real estate questions, visit Russell Nolting’s St. Louis home listings website.

For more Des Peres listings, go to Search Homes St. Louis.  For Des Peres Community Resources, Click here

Remodeling magazine’s annual report shows that maintenance-related projects and moderately priced upgrades are providing stable paybacks, even in a slower market.

Cost vs. Value Report 2008

Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. Click this link for previous Cost vs. Value surveys.  When you compare the national averages, replacement projects that boost curb appeal—siding, windows, and decks—give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.

1. Upscale fiber cement siding (86.7%)

2. Midrange wood deck (81.8%)

3. Midrange vinyl siding (80.7%)

4. Upscale foam-backed vinyl (80.4%)

5. Midrange minor kitchen remodel (79.5%) 

6. Upscale vinyl window replacement (79.2%)

7. Midrange wood window replacement (77.7%)

8. Midrange vinyl window replacement (77.2%)

9. Upscale wood window replacement (76.5%

10. Midrange major kitchen remodel (76.0%)

If you would like to know how your home value has been affected by remodeling, let me perform a Comparative Market Analysis for you.  A CMA compares your home to similar properties in the area in order to produce a market value.  I’d be happy to take the time to put together this complimentary report.  You can provide your information by visiting my St. Louis Real Estate Resource page.  

Russell Nolting
NoltingRealEstate.com

When markets fluctuate, people get scared.  But it’s important to note that houses, like stocks, appreciate over the long term.  The key to both the housing market and the stock market is to be patient.  The article below includes a number of statistics to prove that having patience is the key to the stock market.  For similar real estate statistics, please visit my St. Louis real estate news page.   And I hope you enjoy Greg’s article.

Russell Nolting, (314) 267-2636 direct

The Case for Waiting Out the Storm

Contributed by Gregory R. Howell, Guest Blogger and Vice President-Wealth Management, Financial Advisor, 
citi smith barney
314.854.5607 Direct

Today’s financial markets are giving many investors cause to doubt the wisdom of investing in stocks. The many months of negative returns in most major markets have taken their toll on even the bravest investors. In order to put today’s very difficult events into some perspective, it may help to look back at what other people in other times may have experienced.

HYPOTHETICAL ILLUSTRATION #1: THE 1970s

Two people invest $100,000 each into identical equity portfolios on January 1, 1973,

and were able to successfully replicate the returns of the S&P 500.* Consider the abysmal market environment during 1973 and 1974 and the impact of negative returns on their portfolios.

3 Months Later…                     $95,120 (March 1973)

6 Months Later…                     $89,631 (June 1973)

9 Months Later…                     $93,951 (September 1973)

12 Months Later…                   $85,345 (December 1973)

1 Year, 9 Months Later…         $57,378 (September 1974)

What if, at this point, Investor #1 gave up and “threw in the towel?” See how the results would look if Investor #1 liquidated the portfolio and instead invested the remaining

$57,378 at a hypothetical 5% rate of return:

6 Months Later…                     $58,813 (March 1975)

12 Months Later…                   $60,247 (September 1975)

2 Years Later…                        $63,259 (September 1976)

5 Years Later…                        $73,230 (September 1979)

10 Years Later…                      $93,462 (September 1984)

What would have happened if Investor #2, on the other hand, remained committed to the original equity investment strategy and continued to mimic the returns of the S&P 500 with the remaining $57, 378?

6 Months Later…                     $77,157 (March 1975)

12 Months Later…                   $79,262 (September 1975)

2 Years Later…                        $103,404 (September 1976)

5 Years Later…                        $124,768 (September 1979)

10 Years Later…                      $244,437 (September 1984)

HYPOTHETICAL ILLUSTRATION #2: THE TECH BUBBLE

Two people invest $100,000 each into identical equity portfolios on October 1, 2000, and were able to successfully replicate the returns of the S&P 500. Consider the collapse of the tech bubble from 2000 to 2002 and the impact of negative returns on their portfolios.

3 Months Later…                     $92,180 (December 2000)

6 Months Later…                     $81,252 (March 2001)

9 Months Later…                     $86,007 (June 2001)

12 Months Later…                   $73,379 (September 2001)

2 Years Later…                        $58,347 (September 2002)

What if, at this point, Investor #1 gave up and “threw in the towel?” See how the results would look if Investor #1 liquidated the portfolio and instead invested the remaining $58,347 at a hypothetical 5% rate of return:

12 Months Later…                   $61,264 (September 2003)

2 Years Later…                        $64,327 (September 2004)

3 Years Later…                        $67,544 (September 2005)

4 Years Later…                        $70,921 (September 2006)

5 Years Later…                        $74,467 (September 2007)

What would have happened if Investor #2, on the other hand, remained committed to the original equity investment strategy and continued to mimic the returns of the S&P 500 with the remaining $58,347?

12 Months Later…                   $72,586 (September 2003)

2 Years Later…                        $82,648 (September 2004)

3 Years Later…                        $92,768 (September 2005)

4 Years Later…                        $102,769 (September 2006)

5 Years Later…                        $119,667 (September 2007)

Please click this link for Greg’s article entitled Bull Markets Last Longer.  

Gregory R. Howell

Vice President-Wealth Management
Financial Advisor
citi smith barney
101 S. Hanley Road, Suite 600 | Clayton, MO 63105
Tel: 314.854.5607 Direct | 800.325.0630 Toll Free
314.854.5606 Fax
For account access or market information please access Greg’s website at
http://fa.smithbarney.com/greghowell

Smith Barney Access is a service mark of Citigroup Global Markets Inc.
Member SIPC

Home prices are down and foreclosure rates are up.  There are definitely bargains out there whether you’re looking for a primary residence or a St. Louis real estate investment!  Are you ready to jump in?

There are foreclosures and there are foreclosures.  While many buyers are looking for the bank-owned home that has gone through foreclosure, some buyers want to buy the homes on the courthouse steps.  These transactions require that you close within days.  This type of purchase will require cash.  You need to set up a line of credit or similar arrangement with your bank well in advance.  

The bank-owned post-foreclosure property will not require the quick closing of the courthouse steps sale.  However, most banks will not entertain offers unless the buyer is preapproved with a reputable lender.  One of my favorite St. Louis lenders is Matt Eversgerd of First Integrity Mortgage Services.

Foreclosures are typically sold as is, but you can inspect the property before you bid. Even after you put down a deposit, you can change your mind and get your money back. Private auctions typically offer a bigger window for deliberation than public auctions on the courthouse steps.

Remember also that many foreclosed properties do not have active utilities.  You may have difficulty getting the full picture on the property.  It’s important to have a good inspector.  click here for a good St. Louis home inspector.

Look…a $100 bill is worth $100 every day of the week.  What matters in a foreclosure is what the house is worth, not what the lender is asking.  Remember that “Foreclosure” does not mean that the house is a good deal.  Do your homework to determine the value of the property IN TODAY’S MARKET.  One of St. Louis best appraisers is Collins Appraisal Services.  Instead of using an appraiser, an experienced Realtor (like me!), can do your homework for you at no charge.  You can fill out our Seller’s St. Louis Property Value request form — just put in the notes that you are looking for an investment property and we’ll treat it the same way.  

Don’t exclude the short sale.  The short sale requires that the buyer, the seller and the lender negotiate the final sales price.  The seller will not be able to cover the balance due on the note.  Foreclosed properties are often poorly maintained — if you don’t pay your bills you probably don’t keep up on maintenance of the property.  But the short sale, in my experience, seems to be generally in better condition.  These are important properties to consider.

In summary, you need four partners to help you buy a foreclosure or short sale:  a good lender, a qualified inspector, a licensed appraiser, and a professional Realtor who is experienced in this type of residential real estate.  

For more information, call Russell Nolting at 314-267-2636.  And you can always visit my website for great information about the St. Louis foreclosure market.

by Guest Blogger Matt Eversgerd of First Integrity Mortgage Services – 314-620-7227

Ever since the dawn of currency, people have made fortunes off the “Buy low, sell high” philosophy.  It’s what investors in the stock market try to do, it’s what people in real estate try to do, and it’s the driving force behind the sale of all consumer goods. 

It seems that in a time when real estate values have leveled off, homes are taking a bit longer to move, and sellers are more anxious than ever to get an offer on their property, there’s never been a better time to purchase investment property.  In addition, uncertainty in our stock market right now makes real estate a golden opportunity.

It’s hard to believe that as early as last year you could purchase investment property with a no income verification loan and finance 100% of the price.  While lending standards have tightened up across the board, we’ve seen an even greater tightening up on investment property.  BUT, if you can find 20% down and have the income to qualify, you are in the enviable position of being able to take advantage of the “buy low mentality.”  It’s not that hard to qualify, and you can worry about selling high later. 

The biggest hurdle is usually the 20% down payment; however there are several ways to come up with the money.  You could take it from your savings account or investment accounts, or if you have the ability, you could borrow it from the equity in your primary residence and actually finance the entire purchase.

The bottom line is this…If you’re looking for an opportunity to take advantage of the times; there’s never been a better time to purchase investment property!