Monday, April 23, 2012

May Lake of the Ozarks Real Estate Report

Who’s Representing You?

Missouri law allows real estate licensees to work for the interest of one or both of the parties to the transaction. The law also allows the licensee to work in a neutral position. The general public, and even many licensees, believe that if you are working with a licensed real estate agent, they are working on your behalf. However, Missouri law requires that you must enter into a written agreement if you want representation.

At the onset of communication, a licensee must make you aware of the choices available to you in terms of representation. Without a written agreement stating the type of relationship you have with an agent, that agent is working in a neutral position, not as an advocate for you or, if they are the listing agent on a property you have interest in, most likely they are working for the seller. In a neutral, or Transaction Brokerage, position the agent still has a duty to be honest and fair with all parties and cannot disclose any of your confidential information. If you’d like a copy of the types of representation that are available call or email me.

Be sure you understand from the start, who the agent you are dealing with is working for. Ask for recommendations from friends and coworkers. Ask the agent for previous clients you can contact for insight into their real estate experience. Many buyers are concerned about entering into an exclusive agreement with an agent in case a “deal” comes along that they could “save” on commissions. I have assisted numerous sellers over the years who are struggling to re-sell that “deal” they cut for themselves. Consider enlisting an experienced, knowledgeable, reputable agent to work on your behalf. A great agent can save you time, money and a great deal of headaches down the road.

Now for an update on the current lake market. A year ago, I wrote that I was seeing an upward trend in the number of homes sold, the total sales volume and an increase in the upper range of sales prices. I was cautiously optimistic that the lake home market was starting toward a slow but positive recovery.
As you’ll see in the chart below, our market has continued a steady growth.

This chart lays out the number of homes sold, average sales price, and average days on the market based on data from our Bagnell Dam Association of REALTORS Multiple Listing System comparing the time frames of January 1 thru April 15 of each year from 2003 to the 2012.
Chart here please


If you would like a detailed sales report on 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 View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

April Lake of the Ozarks Real Estate Report

The latest lake home sales figures show an increase once again. This rate is above year ago levels by 26.7 percent. Condo sales have also shown a large increase in 2012 vs. 2011 with a 22.8 percent growth in units sold. Average days on the market for lake homes has dropped from 214 to 168 however, condo market times have seen an increase of 23 days over the same time last year.
Lawrence Yun, NAR chief economist, said underlying factors are much better compared to one year ago. "The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market," he said. "Although relatively unusual, there will be rising demand for both rental space and homeownership this year. The great suppression in household formation during the past four years was unsustainable, and a pent-up demand could burst forth from the improving economy."
Regionally, the results were mixed. Declines were seen in both the Northeast and West. The Northeast dropped 3.3 percent in February, with median prices declining 1.9 percent from a year ago.
The West posted a 3.2 percent monthly decline, but is up 6.1 percent of February 2011 as well as up 3.1 percent in median prices.
The Midwest and South were both up, rising 1.0 and 0.6 percent respectively. The median price in the Midwest was down half a percent to $120,000, the lowest median price in the nation.
Decreasing inventory, combined with virtually no new residential construction during the past three years, assure that rents will continue to rise as well as likely home price increases in 2012. I also feel the decrease will drive lot sale which have been almost non-existent the past few years.
So, back to the same song, second verse: you’re not going to find a better time to purchase at Lake of the Ozarks. If you are considering selling, prices are holding steady. If you’re looking to sell and purchase another property, any value loss in your existing home will be offset in the lowered value of the purchased home.
If you would like a detailed sales report on 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 View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

March Lake of the Ozarks Real Estate Report

As the market stabilizes some buyers are defeating themselves and reducing the value they could gain from buying at the bottom of the market, in terms of both home prices and interest rates. Here are just a few ways buyers are setting themselves up for failure.
Looking too long and at too many homes. It is not unusual to hear buyers today say they've been searching for a year, 18 months, even two or three years. Often these buyers have made low offers on multiple properties and have lost out on several “deals”. When you take that long, you become susceptible to overpaying out of sheer exhaustion. It can also cause you to settle for a home that doesn’t meet your needs. To avoid this problem understand and be clear on the differences between what you want and what you need, and work with a local real estate professional you trust. Look to your agent to help keep your expectations based in reality so you can make better decisions about your purchase. Look at homes in a price range where you're likely to find something that will work for you and will allow you to be successful in your efforts to obtain one.
Delaying making a decision because they think prices may get even lower or a better deal will come along. The lake home market has stabilized and I predict a small increase in values over the course of 2012. Inventory is being reduced and days on the market are almost a month and a half shorter than last year.

Making offers way too low. Overbidding seems like an obvious way to cancel out the bargain potential of your deal but making excessively low offers that sellers couldn't afford to take if they wanted to can have the very same result. Buyers who think they can operate strictly on the basis of what the news keeps reporting as a buyer's market are shooting themselves in the foot. If you don't actually secure the home, the bargain basement price you offered is no deal at all. Even if you are willing to come up in price, you’ve probably insulted the seller which will make negotiations more difficult when you make a better offer.

Stressing out. There is so much information available now that it can be overwhelming for a buyer to know how to move forward. Some buyers try to apply national headlines about home prices being depressed to the superlocal dynamics of the Lake of the Ozarks market. Many deny that basic truths apply to them. For example buying a short sale listing can result in a great deal for you however every step in the process is a long drawn out affair, know going in that you will have to have patience and remain calm. Stress over buying a home often leads to panic-based and fear-based decisions, which can be costly in the short and long term.
Manage your expectations by working with a trusted broker or agent you feel comfortable having advise you about the lake area market. Make sure they are knowledgeable about the location where you want to purchase and that they have the negotiation skills to secure the best deal possible on the home that fits your wants and needs.
If you would like a detailed sales report on 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 View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com