May Lake of the Ozarks Real Estate Update

Home Warranty Plans

Frequently in the home buying or selling process, buyers encounter homes whose sellers are offering home warranties.  Both buyers and seller (and some agents) are frequently under the impression that these warranties cover most, if not all, costs to repair or replace things that fail in the home.

A home warranty is a contractual agreement provided to an owner of a house by any of a number of different types of entities. In the case of this article, I am referring to “home warranty” companies.   The home warranty industry was founded in 1971 by American Home Shield.  In the strictest legal sense a warranty of any kind must adhere to guidelines set at the states' and federal government's levels. But the word “warranty” is not always used explicitly to mean a legal warranty is being conveyed. Usually, a home warranty is not a warranty at all but rather a home service contract that covers the repair and/or replacement costs of home appliances, plumbing, heating and cooling and electrical systems, and possibly other components. Coverage and costs vary significantly across home warranty companies and home warranty contracts do not cover all home repairs.

Some home plans are more expensive and cover more items while others are more limited.  Most require that you pay a service fee, around $50 to $100 per incident and also have a maximum amount that they will pay per covered item and a limit on what they will pay in total.  Be sure that you are aware of what the coverage exclusions are and if the company pays the full cost of replacing an item or its depreciated value. 

Some common complaints that home warranty clients have about warranty companies are:            1. Deny the claim citing homeowner's maintenance negligence or “pre-existing problem”

2.  Repair the equipment even when it is in such bad shape as to be replaced (which may keep it running until your warranty ends)

3.  Utilize sub-standard service providers (the warranty company chooses the provider), this issue is often attributed to the fact that they have negotiated lower rates from these providers

Most warranty companies have a “Sample” Coverage Terms document that outlines what is included and excluded as well as some other terms.  These generally look pretty good.  Many have fine (miniscule) print that references a cover/front page that details specific coverage on the particular home.  Make sure you have all information before making a decision.

One of the best preventive measures you can take to reduce the risk of nasty equipment failure surprise after closing is to schedule a thorough home inspection (by a reputable, knowledgeable company).  Your purchase contract should allow for an inspection and have a date by which you must complete and report any issues to the seller.  If their response is that the home warranty will cover it, look over the coverage terms AND make a call to the warranty company to verify this.

A great resource for home warranty information and reviews of existing companies as well as a list of ones no longer in business (some reportedly still selling warranties).  www.HomeWarrantyReviews.com Reports I have read state that around 20 companies went out of business between 2013 and 2014.    

A home warranty can be a great asset, you just need to do a little homework to make sure you know as a seller what you are offering and as a buyer what you are receiving.  

Michael has been selling real estate at Lake of the Ozarks since 1981.  He is one of the most respected brokers in the area.  If you would like a detailed sales report and value for your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 573.365.SOLD.  You can also view each month’s article, ask questions and offer your opinion on his blog at www.AsTheLakeChurns.com

 

 

 

 

April Lake of the Ozarks Real Estate Update

Total condo sales rose again in 2013, up 9% over 2012.  The 2013 numbers represent an increase of 29.6% over the low points that occurred in both 2009 and 2011.  Below is a chart detailing the condo units sold each year in varying price points.  As we saw in the upper end home market, the upper condo range has flattened out with sales over $300,000 being almost non-existent the past 12 months. 

There are currently a total of 735 units actively on the market.  In addition, there are currently 55 units under contract.

All data is from the Lake of the Ozarks Multiple Listing Service for the dates and years shown.

My office will be hosting the May Business Journal Social at Bootlegger’s on Thursday, May 8th, stop by to visit and kick off another great season at Lake of the Ozarks.

If you would like a detailed sales report and value for your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 573.365.SOLD.  You can also view each month’s article, ask questions and offer your opinion on my blog at www.AsTheLakeChurns.com

March Lake of the Ozarks Real Estate Update

     Below is a comparison of lakefront home sales in 2012 and 2013 at Lake of the Ozarks.  2013 saw a small increase in the number of homes sold with 7 more sales than in 2012.  The market saw a slight shift in number of homes sold in the various price ranges with the $500,001 to $800,000 price points seeing the largest gains.  The $100,001 to $200,000 range was still the largest part of the market making for 31.2% of sales however this was a decrease from its share of 34.1% of the market in 2012.  The luxury home market also showed very modest improvement, the increases are not large; however this is a small part of our overall market.

 

 

   I feel the decrease of sales in the lower price range is mainly a result of a reduction of inventory due both to sales and rising home values.  (You cannot purchase the same home for $200,000 as you were able to just 2 years ago.)   As I’ve reported in the past, the luxury home market took one of the biggest hits in terms of both number of sales and values.  It is promising to see a return in confidence of buyers in this market.  I do feel the sales in this range have been driven by price adjustments.  I feel this market will rebound more slowly in part due to the fact that many of the luxury home sellers are able and willing to wait for market values to increase rather than reduce their prices.  The increase in the mid to upper range is very exciting as this represents a portion of the market where pent up demand is being seen as a surge of buyers who have held off on purchases due to the uncertain economic climate are moving forward.

     Last month’s article did not make the February Business Journal issue due to an error on my part.  I apologize to any readers who missed this.  I reported on the sales activity over the past five years broken down by property type.  This report showed a steady increase in sales with 2013 showing increases in all property types.  If you didn’t receive a copy of the report from me via email or read it on my blog, you can access it at www.AsTheLakeChurns.com or send me an email and I’ll get it right to you.      Sales info: Lake of the Ozarks MLS for all times reported.

    If you would like a detailed sales report and value for your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 573.365.SOLD or cme@yourlake.com.     

February Lake of the Ozarks Real Estate Update

     Below is a report of sales activity at Lake of the Ozarks over the past five years and include sales from 2010 through 2013.  As you can see, the sales have been steadily increasing with 2013 showing increases in all property types.

 

    Data is based on information from the Bagnell Dam Association and Lake of the Ozarks Board of Realtors MLS for all times reported as of January 14, 2013.

    If you would like a detailed sales report and value for your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 573.365.SOLD or cme@yourlake.com.   You can view thousands of lake area listings with photos and virtual tours at www.YourLake.com   You can also log your opinions and ask questions on Michael’s real estate blog, www.AsTheLakeChurns.com

 

January Lake of the Ozarks Real Estate Update

Recent reports show that both Lake Ozark and Osage Beach’s sales tax revenue is up this year. Lake Ozark’s revenue has increased by 26% and Osage Beach is up 1.6% over 2012. New retail developments in both cities have played a large part in this uptick and in Osage Beach, Prewitt’s Point and Dierbergs generated $510,000 in tax revenue. Nationally, homes values roses 7.9% over last year. This is the 2nd yearly gain in a row and in 2012 and 2013 homes have gained back about 44% of the total value lost from 2007 through 2011 when values decreased each year. Locally, home sales continue to increase in numbers and value. A total of 1,462 lake area homes have sold as of December 20, 2013. This is an increase of 7.1% over 2012 sales of the same time frame. Data gathered from Lake of the Ozarks MLS for all dates noted. Broken down by property type, here’s an overview of how the sales shook out:

I recently responded to a person who posted a request for advice via an online real estate forum. Following is the question along with my response. Question: What do new house buyers look for in their real estate Agent? Does personality really matter? Answer: Buyers should look for an agent with experience, knowledge of the area they are purchasing in, knowledge of the real estate process, good negotiation skills, honesty and integrity, a good reputation among the community, fellow agents and previous clients, patience and the time available to work with them based on their needs. Personality does matter; a buyer should feel at ease with an agent as they will be spending a great deal of time together. Their agent will also be working with other agents, lenders, inspectors, title companies etc.,so a good personality along with the aforementioned traits will benefit the buyer when their agent deals with other people on their behalf. If you have a question regarding real estate, please feel free to call, email, or post a message on my blog. I’ll get back to you promptly. If you would like a detailed sales report and value for your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 573.365.SOLD or cme@yourlake.com. You can view thousands of lake area listings with photos and virtual tours at www.YourLake.com You can also log your opinions and ask questions on Michael’s real estate blog, www.AsTheLakeChurns.com

December Lake of the Ozarks Real Estate Update

With the ever increasing data available on the internet, consumers have the opportunity to be more knowledgeable about area markets. There are thousands of websites offering everything from search features showing what properties are currently available to how long they have been on the market, the history of list prices, sales prices and how the neighborhoods and community offerings are rated. Having well informed clients with the ability to do advanced research from the time they are just considering buying or selling is beneficial to real estate professionals. Technology has streamlined the process in many ways and has added a new level of convenience throughout the entire transaction. The majority of listing data used on real estate sites is obtained through agreement with local Multiple Listing Services. The “meat and potatoes” so to speak, is the property information such as pricing, location, square footage, land size, etc. This data is syndicated to these sites via MLSs as well as other listing sites that real estate companies have decided to utilize in promoting the properties available for purchase. I have been following an increasing trend on the public accessed sites to attempt to provide additional information above and beyond the basic data that is being syndicated to these sites via real estate professionals. On the surface, these appear to be pertinent facts that would assist a consumer in making educated decisions. The concern that I would like to share with you is that, while these sites can be very helpful, much of the additional data they are providing is inaccurate. It does not appear that there is any attempt to mislead consumers, however, as we’ve all heard “Real Estate is Local”. In our area, you cannot expect to draw a 5 mile radius on a map and expect that all homes in that location are comparable. I have seen numerous instances where sites are touting homes as being comparable when there is no basis for this other than being situated within a certain radius. I have not found any of these sites to factor in construction quality, how the property lays, amount of land or lakefrontage or even whether the property is on or off the water. As just two examples, I recently noticed a luxury home priced at just under $1 Million (I feel it is fairly priced and this is not my listing), the real estate site estimated it is worth $220,000. Another home displayed on the site and listed at $335,000 did not show a value estimate but the site did offer that it had decreased in value $50,000 in the previous 30 days. This home had only been on the market for 30 days and had not had any adjustments to the list price. With the market rebound we are experiencing, this type of misinformation can lead to poor judgment and even heartbreak for both buyers and sellers. Relying on substandard data can lead sellers to lose money or decide not to move forward when the time is actually right for them to do so. It can also lead to buyers making extremely low offers and missing out on buying opportunities. I am a big proponent of having knowledgeable clients and support sharing all pertinent information to allow them to make the best possible decision. I encourage you to utilize any of the information available to you but to also seek out an experienced, knowledgeable real estate professional to help guide and counsel you in making a financially sound choice. I’d like to thank all of you that take the time to read my column each month. I appreciate you and the feedback you pass along. Best wishes to you and your families for a wonderful holiday season and a happy and healthy 2014! If you would like a detailed sales report and value for your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com. You can view thousands of lake area listings with photos and virtual tours at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

November Lake of the Ozarks Real Estate Update

A few month’s ago I touched on the activity Osage Beach’s Grand Glaize West End. Here’s an update on a couple of items I had discussed. The new owner/developers of The Hamptons on the Lake Condominium development have finalized their purchase. They are experiencing very good activity with several sales already in place and request for units in future buildings. They are in the process of planning the next building. The developers have a long successful track record on projects in other areas including Branson . The Towne Harbour Entertainment and Hospitality District project has been receiving a lot of press and its developers are poised to move forward as well. This development will be located in part on the former Kalfran Lodge property and will bring a variety of retail and commercial venues. We continue to see a slight increase in lot sales. There have been a total of 57 lakefront lot sales closed as of October 15th. Prices have ranged from $4,900 to $470,000 with a median price of $68,000. Camden County new home building permits totaled 32 at the end of July, this compares favorably against the previous three years totals for all 12 months at 47 in 2012, 34 in 2011 and 44 in 2010. Total number of properties sold in 2013 has risen 13% over 2012 and the average sales price has increased by 6.6%. Several new businesses have opened recently including Dick’s Sporting Good and the new Eagles Landing 8 Cine and I am hearing reports of other national franchises making commitments here at the lake. Several of my investment clientele are also reviewing demographics to determine whether to move forward in expanding their businesses to the Lake of the Ozarks area. Data has been obtained from the Lake of the Ozarks MLS based on all property type sales over the time frame from January 1, 2004 to October 28, 2013 and all other times represented in the data. This just a summary of sales here at the lake. If you would like a detailed sales report and value for your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com. You can view thousands of lake area listings with photos and virtual tours at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com