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Ryan Shaughnessy, Broker/Attorney - Your Lafayette Square Real Estate Partner

Public Service Announcement - National Drug Free Work Week

PSA - National Drug Free Work WeekSTART OF NATIONAL DRUG FREE WORK WEEK

The National Drug Free Work Week starts October 19, 2009. The purpose of the National Drug Free Work Week is to highlight that being drug free is key to workplace safety and health and to encourage workers with alcohol and drug problems to seek help.

PURPOSE OF NATIONAL DRUG FREE WORK WEEK

The National Drug Free Work Week is sponsored by the U.S. Department of Labor in coordination with members of its Drug-Free Workplace Alliance. This cooperative program, which represents both employer/contractor associations and labor unions, aims to improve safety and health through drug-free workplace programs. It focuses on the construction industry because research indicates that it has higher than average rates of worker alcohol and drug abuse-a serious concern given that it also is among the industries with the highest rates of workplace accidents and injuries. But because drug-free workplace programs benefit all workplaces, employers and employees in all industries, not just construction, are encouraged to take part in Drug Free Work Week.

WHAT REAL ESTATE PROFESSIONALS CAN DO

Real estate professionals often face the same problems as other industries when it comes to substance abuse related issues. In other professions such as attorneys, there are often employee assistance type programs available from state and local associations or even individual firms. However, real estate agents often do not have access to employee assistance type programs.

Here are a few ideas from the Drug-Free Work Alliance:

* Implement a Drug-Free Workplace Program - Develop a Drug-Free Workplace Program at the association or brokerage levels. For more information on starting a Drug-Free Workplace Program, visit www.dol.gov/workingpartners. This website offers detailed guidance on how to develop a Drug-Free Workplace Program starting with a written policy.

* Promote your Drug-Free Workplace Program - If your association or brokerage already has a Drug-Free Workplace Program or employee assistance type program promote the programs by distributing a copy of your drug-free workplace policy to all real estate agents and brokerage employees.

* Train Managers - As part of the Drug Free Work Week, associations or brokerages can provide training to team leaders and sales managers to identify and deal with real estate professionals who have performance problems that may be related to alcohol and drug use, including clearly identifying where real estate professionals should be referred to for assistance.

* Educate Real Estate Professionals - As a part of the Drug Free Work Week, associations or brokerage might consider holding seminars on time management, stress management, financial planning and substance abuse.

* Develop or Publicize Employee Assistance Progrmas - If your association or brokerage has an employee assistance type program, remind real estate professionals about these programs. Employee assistance programs often offer free or low cost services to assist employees to resolve personal and workplace problems, including alcohol and drug abuse. If your association or brokerage doesn't offer an employee assistance type program, consider developing such a program even if it only consists of educational programs, self-assessment materials, and lists of local treatment programs and other resources.

* Encourage the Use of Self-Assessement Programs - Encourage real estate professionals to perform private self-assessments such as confidential, self-administered online screening tools available at www.AlcoholScreening.org.

* Compile a List of Local Resources - Whether or not your association or brokerage has an employee assistance type programs, develop a list of local resources. To locate resources in your community, visit www.findtreatment.samhsa.gov or phone 1-800-662-HELP. Also, self-help programs such as the 12-step programs of Alcoholics Anonymous and Al-Anon are free and available nationwide.

* Review Health Insurance Plans - If your association or brokerage offers a group health plan or provides referrals to health insurance providers, suggest insurance companies and policies that provide coverage for substance abuse assessment and treatment.

Meet Our Preferred Lender - New Castle Home Loans / Chicago Office

PREA Signature Realty - Preferred Lenders

INTRODUCTION TO OUR PREFERRED LENDER

For those readers and subscribers in need of a home loan, I wanted to take this opportunity to introduce Jim Quist and New Castle Home Loans as one of our preferred lenders. New Castle Home Loans was formed in 2003 and has experienced steady growth with offices in Chicago, Illinois, Lombard, Illinois, and St. Louis, Missouri. Over the years, New Castle Home Loans has established a strong niche in offering loan products for new construction and conversion project in Chicago, Illinois and St. Louis, Missouri.

HOW WE SELECT OUR PREFERRED LENDERS

At PREA Signature Realty, we base our recommendations and make referrals to lenders and other service providers based solely on the service that they provide to our customers. We have a longstanding policy that prohibits our agents from receiving any direct or indirect compensation from our preferred service providers.

When we make a recommendation or referral to a lender, we are looking for three main things from our lenders:

  • Competitive Pricing with No Hidden Fees and No Junk Fees
  • Extensive Experience and Access to a Wide Array of Loan Products
  • Superior Customer Service and Communication

WHY CHOOSE NEW CASTLE HOME LOANS

Since 2005, we highly recommended New Castle Home Loansto our developer client in St. Louis. When we started PREA Signature Realty in 2008, we continued the relationship and designated New Castle Home Loans as one of our preferred lenders. Here are some of the reasons we designated New Castle Home Loans as one of our preferred lenders:

  • Competitive Pricing - Low Interest Rates, Standardized Fees, and No Junk Fees
  • Loan Officers with Extensive Experience and Product Knowledge
  • Access to Wide Array of Loan Products from over 50 National and Regional Lenders
  • Streamlined, Simplified Online Loan Application Process
  • Constant Communication - Providing Our Agents with Automated Notifications regarding Each Step in the Loan Process
  • Internal Underwriting of Loans
  • Identifying and Anticipating Issues based on Familiarity and Experience with New Construction, Conversion and Condominium Projects
  • Clear Explanation of Loan Options - Allowing for Informed Consumer Decisionmaking
  • Superior Customer Service
  • No Surprises - Rates/Fees Quoted are Rate/Fees Delivered
  • On-Time Closings with No Funding Delays

CUSTOMER TESTIMONIALS

Here are a few testimonials from agents and customers who have used New Castle Home Loans:

  • Heather Gustafson, CMK Realty-Chicago: "NewCastle is one of the best that we have ever dealt with. Our buyers report that they have the lowest rates and best service. NewCastle is CMK's preferred lender and based on our experience, we recommend NewCastle Home Loans to any broker, agent or real estate developer."
  • Stuart Schwartz, @ Properties-Chicago: "Jim, Another great job! Every customer I refer to you closes on time and without problems-- Happy customers make my job easier."
  • Ryan Shaughnessy, PREA Signature Realty-St. Louis: "We want our buyers to use NewCastle, especially on our condominium conversion projects. They just make it easier--for the customer and us. NewCastle always closes on time and the money is always there--with no surprises."
  • Doug Bailey, Chicago: "Jim, You did such an outstanding job for me that I plan to let everyone know when they ask about a mortgage lender. Thank you for all of your help."
  • Liz Reger, Ideal Location-Chicago: "I've been a Realtor for over 10 years and I refer my buyers and anyone that has a question about a mortgage to Jim Quist at NewCastle Home Loans. I also finance my own primary and investment properties through Jim."
  • Frank Dixon, Oak Park: "Our real estate agent recommended NewCastle and she was right when she said they are great to work with. NewCastle made the whole process easy, gave us the lowest interest rate with no junk fees--and there were no surprises at the closing table. When someone I know is buying or refinancing, I tell them to call NewCastle."

CONTACT INFORMATION

On behalf of PREA Signature Realty, we wanted to say thank you to New Castle Home Loans for underpromising and overdelivering on their mortgage services.

Interested in Purchasing a Single Family Home, Townhome, Condominium or Loft in Lafayette Square? Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381.

Where is the Federal First-Time Home Buyer Tax Credit Producing the Most Sales? You Guessed It - California, Florida and Texas

FEDERAL FIRST TIME HOME BUYER TAX CREDIT USAGE (AS OF AUGUST, 2009)

Recently, there has been impassioned pleas from the HBA, NHBA, NAR and other trade organizations seeking the extension of the $8,000 Federal First-Time Home Buyer Tax Credit ("Federal Tax Credit"). Often, we receive questions as to how the Federal Tax Credit is impacting sales in the St. Louis area. Although the statistics vary based on their source, the U.S. Treasury released its August report which indicates that three states - California, Florida and Texas - accounted for 72% of the sales transactions in the nation utilizing the Federal Tax Credit. In Missouri, there has been a modest use of the tax credit with 6,615 closed sales transactions (or 5% of the total national closed sales transactions).

Here are the states with 6000 or more closed sales transactions using the Federal Tax Credit:

Federal First Time Home Buyer Tax Credit

Here are the state by state breakdown of closed sales transactions using the Federal Tax Credit:

State # of Sales using Tax Credit % of Total Sales using Tax Credit
Alabama 5046 2%
Alaska 485 0%
Arizona 9357 3%
Arkansas 3021 1%
California 42,304 13%
Colorado 6210 2%
Connecticut 2230 1%
Delaware 861 0%
District of Columbia 471 0%
Florida 29,132 9%
Georgia 11,109 4%
Hawaii 488 0%
Idaho 2457 1%
Illinois 9918 3%
Indiana 5866 2%
Iowa 3455 1%
Kansas 3147 1%
Kentucky 4105 1%
Louisiana 4353 1%
Maine 931 0%
Maryland 5022 2%
Massachusetts 4548 1%
Michigan 9237 3%
Minnesota 6964 2%
Mississippi 2949 1%
Missouri 6615 2%
Montana 1041 0%
Nebraska 2771 1%
Nevada 5259 2%
New Hampshire 1062 0%
New Jersey 5500 2%
New Mexico 1466 0%
New York 8076 3%
North Carolina 9355 3%
North Dakota 659 0%
Ohio 9172 3%
Oklahoma 4300 1%
Oregon 3565 1%
Pennsylvania 10,250 3%
Rhode Island 964 0%
South Carolina 4684 1%
South Dakota 886 0%
Tennessee 8549 3%
Texas 29,536 9%
Utah 4623 1%
Vermont 351 0%
Virginia 9093 3%
Washington 6229 2%
West Virginia 788 0%
Wisconsin 5202 2%
Wyoming 648 0%
zz - Armed Forces 177 0%
zz - Foreign 10 0%
zz - U.S. Possessions 8 0%
Total Sales 314505 100%

TAX CREDIT STRATEGIES

The $8,000 Federal First-Time Home Buyer Tax Credit is set to expire on November 30, 2009. To meet the deadline, it important to get a home under contract almost immediately. However, there are other opportunities to take advantage of the Federal Tax Credit that can close in a shorter timeframe than a sales transaction using conventional or FHA financing. Here are some examples from the St. Louis market:

  • 100% Developer Financing
  • 90% Seller Financing
  • Short-Term Financing

For those who have started the process late, there are still some great opportunities to take advantage of Federal Tax Credit.

Interested in taking advantage of the Federal Tax Credit in St. Louis, Missouri? Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 to explore alternate tax credit strategies.

First-Time Home Buyers Benefit from Recent Market Trends - Is It Time to Buy My First Home?

THE QUESTION - TO BUY OR NOT TO BUY

Recently, a first-time home buyer asked "Is now the time to buy my first home?" Well, there is no simple answer to this complex question. Real estate professionals aren't necessarily the best equipped to predict future economic conditions. However, real estate professionals do monitor current trends as well as historical trends in local, regional, and national real estate markets.

NATIONAL TRENDS INDICATE THAT THE TIME TO BUY IS NOW

Presently, there are three key national trends which provide support for the position that now is the time to buy:

  • Housing Affordability Index: The National Association of Home Builders recently released its Housing Opportunity Index which showed that 72.3% of all new and existing homes homes sold in the second quarter of 2009 were affordable to families earning the national median income of $64,000 using standard underwriting criteria. Compared to 2008, this represents a strong positive change from 55% in the second quarter of 2008 to 72.3% in the second quarter of 2008.

Housing Affordability Index

  • Interest Rates: The average interest rate for a fixed 30 year loandipped below 5% in 2009 and is now at historic lows. Since 2000, interest rates have declined from over 8% to below 5%. In practical terms, this means that purchasers can afford more home for the same monthly payment. For example, a purchaser today who borrows $200,000 at a fixed 30 year interest rate of 5% would pay a monthly payment of $1073. In contrast, a purchaser who borrowed $200,0000 in 2000 at a fixed 30 year interest rate of 8% would have paid a monthly payment of $1467. Or stated differently, today's purchaser can obtain a $200,000 loan at the same monthly cost as what a purchaser in 2000 would have paid for $165,000 loan.

Fixed Interest Rate Trends

  • National Median Prices: Since 2006, the national median priceshave declined. In 2009, national median prices appear to have stabilized with a slight increase in the second quarter of 2009. Now, there is no guarantee that prices will rise in 2010 and beyond. However, it does appear that prices have stabilized and may show a modest increase in 2010.

National Median Prices

THE $8,000 FEDERAL FIRST-TIME HOME BUYER TAX CREDIT

The $8,000 federal tax credit for the purchase of new homes by first-time home buyer represents a unique opportunity. It is especially attractive for young professionals and recent graduates. Depending on the loan amount, the tax credit could be used to pay between 7 to 20 monthly loan payments for the typical first-time home buyer. Here are some examples:

  • $75,000 Loan- Monthly Payment $403 - 20 Mortgage Payments
  • $100,000 Loan - Monthly Payment $536 - 15 Mortgage Payments
  • $150,000 Loan - Monthly Payment $806 - 10 Mortgage Payments
  • $200,000 Loan - Monthly Payment $1073 - 7.5 Mortgage Payments

With favorable pricing, historically low interest rates, and the federal tax credit, I can only conclude that NOW is the time to buy for the average first-time home buyer.

INTERESTED IN PURCHASING YOUR FIRST HOME? Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 or send an e-mail to Ryan@PREASignatureRealty.com to discover how easy it can be to purchase your first home.

The St. Louis Multiple Listing Service Partners with Point2Agent to Offer a New Syndication Platform to St. Louis Real Estate Agents and their Customers

MLS REAL ESTATE SYNDICATION

The Mid-America Regional Information Systems ("MARIS"), the local multiple listing service for the St. Louis metropolitan area, has now provided a new marketing tool for real estate agents and their customers in the St. Louis area. MARIS now provides a real estate syndication platform that allows real estate agents to syndicate or feed their MLS listings to 27 aggregator and real estate portal sites like Trulia, Cyberhomes, Yahoo Real Estate, Google Base, Oodle, FrontPage, Zillow, Hotpads, and more. The biggest change is that data for these additional sites no longer has to be sent by a separate feed or manually entered into the 27 separate sites.

Real Estate Syndication

This new marketing tool is an opt-in system so it will vary from brokerage to brokerage and agent to agent. The new real estate syndication platform is powered by Point2Agent.com. PREA Signature Realty has opted-in to the use of the real estate syndication platform provided by MARIS. The new platform is powered by Point2Agent.com. For customers of PREA Signature Realty, you will see no change in where your listings appear. PREA Signature Realty has always used real estate syndication to maximize exposure of our customer's listings on the internet and has regularly used the Point2Agent.com platform as one part of our internet marketing strategy. The new MARIS provided platform will eliminate the need for our brokerage to set up a separate listing feed to these sites and/or agents will no longer have to manually enter information into the Point2Agent.com site. For our listing customers, you will see no change in the website statistics sent to you and you will still be able to log-in to the Point2Agent.com site to see your statistics at any time between our weekly reporting dates.

In addition, this new marketing tool doesn't present a shift in our internet marketing strategy. PREA Signature Realty will continue to syndicate or place listings on over 500 national, regional and local websites to maximize the exposure of our customer's listings on the internet.

Interested in listing a single family home, condominium or loft for sale or rent in St. Louis, Missouri? Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381.

Other Posts: Real Estate Syndication - An Overview