1. Don’t buy if you can’t stay put.

If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner – even in a rising market. When prices are falling, it’s an even worse proposition.

2. Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you’ll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. If you can’t put down the usual 20 percent, you may still qualify for a loan.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.

5. Buy in a district with good schools.

In most areas, this advice applies even if you don’t have school-age children. Reason: When it comes time to sell, you’ll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help- Call Krantz & Associates!

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate.

When picking a mortgage, you usually have the option of paying additional points — a portion of the interest that you pay at closing — in exchange for a lower interest rate. If you stay in the house for a long time — say three to five years or more — it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can’t afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before bidding.

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that’s about eight to 10 percent lower than what the seller is asking.  Don’t be afarid to take an agressive move in the down market, but if you’re unsure of where to start an offer don’t hesitate to call one of our experienced agents at Krantz & Associates.

10. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that’s just the bank’s way of determining whether the house is worth the price you’ve agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.  If you’re struggling to find a reputable home inspector feel free to call the Krantz office for some great recommendations.

1) Furnace Inspection

• Call an HVAC professional to inspect your furnace and clean ducts.
• Stock up on furnace filters and change them monthly.
• Consider switching out your thermostat for a programmable thermostat.
• If your home is heated by a hot-water radiator, bleed the valves by opening them slightly and when water appears, close them.
• Remove all flammable material from the area surrounding your furnace.

2) Get the Fireplace Ready

• Cap or screen the top of the chimney to keep out rodents and birds.
• If the chimney hasn’t been cleaned for a while, call a chimney sweep to remove soot and creosote.
• Buy firewood or chop wood. Store it in a dry place away from the exterior of your home.
• Inspect the fireplace damper for proper opening and closing.
• Check the mortar between bricks and tuckpoint, if necessary.

3) Check the Exterior, Doors and Windows

• Inspect exterior for crevice cracks and exposed entry points around pipes; seal them.
• Use weatherstripping around doors to prevent cold air from entering the home and caulk windows.
• Replace cracked glass in windows and, if you end up replacing the entire window, prime and paint exposed wood.
• If your home has a basement, consider protecting its window wells by covering them with plastic shields.
• Switch out summer screens with glass replacements from storage. If you have storm windows, install them.

4) Inspect Roof, Gutters & Downspouts

• If your weather temperature will fall below 32 degrees in the winter, adding extra insulation to the attic will prevent warm air from creeping to your roof and causing ice dams.
• Check flashing to ensure water cannot enter the home.
• Replace worn roof shingles or tiles.
• Clean out the gutters and use a hose to spray water down the downspouts to clear away debris.
• Consider installing leaf guards on the gutters or extensions on the downspouts to direct water away from the home.

5) Service Weather-Specific Equipment

• Drain gas from lawnmowers.
• Service or tune-up snow blowers.
• Replace worn rakes and snow shovels.
• Clean, dry and store summer gardening equipment.
• Sharpen ice choppers and buy bags of ice-melt / sand.

6) Check Foundations

• Rake away all debris and edible vegetation from the foundation.
• Seal up entry points to keep small animals from crawling under the house.
• Tuckpoint or seal foundation cracks. Mice can slip through space as thin as a dime.
• Inspect sill plates for dry rot or pest infestation.
• Secure crawlspace entrances.

7) Install Smoke and Carbon Monoxide Detectors

• Some cities require a smoke detector in every room.
• Buy extra smoke detector batteries and change them when daylight savings ends.
• Install a carbon monoxide detector near your furnace and / or water heater.
• Test smoke and carbon monoxide detectors to make sure they work.
• Buy a fire extinguisher or replace an extinguisher older than 10 years.

8) Prevent Plumbing Freezes

• Locate your water main in the event you need to shut it off in an emergency.
• Drain all garden hoses.
• Insulate exposed plumbing pipes.
• Drain air conditioner pipes and, if your AC has a water shut-off valve, turn it off.
• If you go on vacation, leave the heat on, set to at least 55 degrees.

9) Prepare Landscaping & Outdoor Surfaces

• Trim trees if branches hang too close to the house or electrical wires.
• Ask a gardener when your trees should be pruned to prevent winter injury.
• Plant spring flower bulbs and lift bulbs that cannot winter over such as dahlias in areas where the ground freezes.
• Seal driveways, brick patios and wood decks.
• Don’t automatically remove dead vegetation from gardens as some provide attractive scenery in an otherwise dreary, snow-drenched yard.
• Move sensitive potted plants indoors or to a sheltered area.

10) Prepare an Emergency Kit

• Buy indoor candles and matches / lighter for use during a power shortage.
• Find the phone numbers for your utility companies and tape them near your phone or inside the phone book.
• Buy a battery back-up to protect your computer and sensitive electronic equipment.
• Store extra bottled water and non-perishable food supplies (including pet food, if you have a pet), blankets and a first-aid kit in a dry and easy-to-access location.
• Prepare an evacuation plan in the event of an emergency.

-D. Quante

Susan Ebling

Realtor®, ABR, GRI

Susan is native to Lake of the Ozarks and has been serving the public all of her life, starting at her family owned and operated restaurant and bar, The Topsider.  Susan earned a BS in Education at SMSU, but decided to pursue a Real Estate career in 2000.  She has earned numerous awards, including the Realtors Honor Society and has been nominated for Realtor of the Year 4 times.  She resides in Osage Beach and has a 3 year old daughter, Alexandra.  If you are looking for someone who has seen all the changes the lake has undergone since the time of a 2 lane Hwy 54, then contact Susan!

1. Deck the halls, but don’t go overboard. Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Adornments that are too large or too many can crowd your home and distract buyers. Also, avoid offending buyers by opting for general fall and winter decorations rather than items with religious themes.
2. Hire a reliable Krantz & Associates real estate agent.   That means someone who will work hard for you and won’t disappear during Thanksgiving, Christmas or New Year’s.  This will ease your stress and give you more time to enjoy the season.
3. Seek out motivated buyers. Anyone house hunting during the holidays must have a good reason for doing so. Work with your agent to target buyers on a deadline, including people relocating for jobs in your area, investors on tax deadlines, college students and staff, and military personnel, if you live near a military base.
4. Price it to sell. No matter what time of year, a home that’s priced low for the market will make buyers feel merry. Rather than gradually making small price reductions, many real estate agents advise sellers to slash their prices before putting a home on the market.
5. Make curb appeal a top priority. When autumn rolls around and the trees start to lose their leaves, maintaining the exterior of your home becomes even more important. Bare trees equal a more exposed home, so touch up the paint, clean the gutters and spruce up the yard. Keep buyers’ safety in mind as well by making sure stairs and walkways are free of snow, ice and leaves.
6. Take top-notch real estate photos. When the weather outside is frightful, homebuyers are likely to start their house hunt from the comfort of their homes by browsing listings on the Internet. Make a good first impression by offering lots of flattering, high-quality photos of your home. If possible, have a summer or spring photo of your home available so buyers can see how it looks year-round.
7. Create a video tour for the Web. You’ll get less foot traffic during the holidays, thanks to inclement weather and vacation plans. But shooting a video tour and posting it on the Web may attract house hunters who don’t have time to physically see your home or would rather not drive in a snowstorm.
8. Give house hunters a place to escape from the cold. Make your home feel cozy and inviting during showings by cranking up the heat, playing soft classical music and offering homemade holiday treats. When you encourage buyers to spend more time in your home, you also give them more time to admire its best features.
9. Offer holiday cheer in the form of financing. Bah, humbug! Lenders are scrooges these days, but if you’ve got the means, then why not offer a home loan to a serious buyer? You could get a good rate of return on your money.
10. Relax — the new year is just around the corner. The holidays are stressful enough, with gifts to buy, dinners to prepare and relatives to entertain. Take a moment to remind yourself that if you don’t sell now, there’s always next year, which luckily is only a few days away.

The good news? Two key measures now suggest it’s an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation’s ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades.

Two of the silliest mantras during the real-estate bubble were that a house is the best investment you will ever make and that a renter “throws money down the drain.” Whether buying is a better deal than renting isn’t a stagnant fact but a changing condition that depends on the relationship between prices and rents, the cost of financing and other factors.

But the math is turning in buyers’ favor. Stock-oriented folks can think of a house’s price/rent ratio as akin to a stock’s price/earnings ratio, in that it compares the cost of an asset with the money the asset is capable of generating. For investors, a lower ratio suggests more income for the price. For prospective homeowners, a lower ratio makes owning more attractive than renting, all else equal.

Nationwide, the ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble, according to Moody’s Analytics. The average from 1989 to 2003 was about 10, so valuations aren’t quite back to normal.

But for most home buyers, mortgage rates are a key determinant of their total costs. Rates are so low now that houses in many markets look like bargains, even if price/rent ratios aren’t hitting new lows. The 30-year mortgage rate rose to 4.12% this week from a record low of 3.94% last week, Freddie Mac said Thursday. (The rates assume 0.8% in prepaid interest, or “points.”) The latest rate is still less than half the average since 1971.

As a result, house payments are more affordable than they have been in decades. The National Association of Realtors Housing Affordability Index hit 183.7 in August, near its record high in data going back to 1970. The index’s historic average is roughly 120. A reading of 100 would mean that a median-income family with a 20% down payment can afford a mortgage on a median-price home. So today’s buyers can afford handsome houses—but prudent ones might opt for moderate houses with skimpy payments.

For example, the median home in the greater Phoenix market, including houses, condos and co-ops, costs $121,700, according to Zillow.com. With a 20% down payment and a 4.12% mortgage rate, a buyer’s monthly payment would be about $470. Rent for a comparable house would be more than $1,100 a month, according to data provided by Zillow.com.

Of course, all of this assumes mortgages are available—no given now that lending standards have tightened. But long-term data on down payments and credit scores suggest conditions are more normal than many buyers think, according to Stan Humphries, chief economist at Zillow. “If you have good credit, a job and a down payment, you can get a mortgage,” Mr. Humphries says. “There’s more paperwork and scrutiny than five years ago, but things are pretty much like they were in the ’80s and ’90s.”

Not all housing markets are bargains. Mr. Humphries says Zillow has developed a new price/rent ratio that uses estimates for each individual property rather than city medians, to better reflect the choices facing typical buyers. A fresh look at the numbers suggests Detroit and Miami are plenty cheap for buyers, with price/rent ratios of 5.6 and 7.7, respectively. New York and San Francisco are more expensive, with ratios of 17.6 and 17.2, respectively. The median ratio for 169 markets is 10.7.

For investors seeking income, one back-of-the-envelope way of seeing how these numbers stack up against yields for other assets is to divide 1 by the price/rent ratio, resulting in a rent “yield.” The median market’s rent yield is 9.3% and Detroit’s is 17.9%.

Investors would then subtract for taxes, insurance, upkeep and other expenses—costs that vary widely. But suppose total costs were 4% of the purchase price. That would still leave a 5.3% rent yield in the typical market. With the 10-year Treasury yield at 2.2% and the Standard & Poor’s 500-stock index carrying a dividend yield of 2.1%, rents for residential housing in many markets look attractive.

A few caveats are in order. First, not all transactions are average ones. Even in low-priced markets, buyers should shop carefully. Second, prices could fall further. Celia Chen, a senior director at Moody’s Analytics, expects prices to drop 3% before bottoming early next year and rising slowly thereafter. “If the economy slips back into recession, however, we could easily see a 10% drop,” Ms. Chen says.

And property “flipping” can be dangerous even when prices are rising. That is because, absent a real-estate boom, house price gains simply aren’t that exciting. Research by Yale economist Robert Shiller suggests houses more or less track the rate of inflation over long time periods.

Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.

Article by Jack Hough, a columnist at SmartMoney.com

“This situation is ridiculous, and the people who call the Lake their home deserve a solution now – not next year,” said Blunt. “That’s why this amendment would help protect current landowners from having their homes removed, and ensure that Ameren takes the proper steps to protect privately-held land from government infringement.”

In an effort to also protect future landowners nationwide, Blunt’s second amendment would modify the Federal Power Act by changing the definition of what can be considered a “project purpose.” Blunt’s amendment would change current law to ensure that FERC includes the consideration of “private landownership and private land use” within the project boundaries. Currently, FERC recognizes public recreational use of land, but not private ownership. U.S. Senators Jim Inhofe (Okla.) and Claire McCaskill (Mo.) are cosponsoring this amendment.

“It’s outlandish that FERC places more value on protecting public recreation use of land over private ownership,” said Blunt. “My amendment would ensure that private landowners are protected now and moving forward.”

“I am confident that today’s decision will bring clarity to residents along the shoreline of the Lake of the Ozarks,” FERC Chairman Jon Wellinghoff said. “I expect Ameren to move quickly to comply with the Commission order. This will resolve all outstanding issues associated with its shoreline management plan and bring this matter to a swift and satisfactory resolution.”

FERC’s prior order on this case, issued July 26, 2011, was misinterpreted to mean that the Commission would order all privately owned structures built within the boundaries of the Osage project to be removed. Ameren is responsible for managing the shoreline, which includes ensuring that structures within the project boundary around the Lake of the Ozarks are built with the proper authorizations.

Today’s order states:

• Whatever property rights that owners have in lands within the boundaries of the Osage Project, whether conferred by deed, lease, easement or other conveyance, have not been and will not be altered by FERC’s actions today. Nothing in this order affects any previously issued valid permit authorizing a non-project use of project lands or waters.
• For structures without valid deeds, permits or easements, Ameren must determine whether they interfere with the Osage project. If they do, Ameren must take some action, such as redrawing the boundaries of the project, so those structures no longer are sitting on project lands. This would put them outside of the project boundaries and therefore outside of FERC jurisdiction.
• If any structure does interfere with the operation of the Osage project, Ameren and the structure owner must find a solution that satisfies both sides. Ameren itself has stated that after the project boundary is revised, it expects the majority of structures will no longer be considered nonconforming.

FERC established these requirements in the context of directing Ameren to change its shoreline management plan for the Osage project. Ameren must file with the Commission its plan to modify the project boundary by June 1, 2012.

One of the more successful approaches we have implemented is the use of video. I’m not speaking of the virtual tour that we have accompanying all of our listings. While that has been and continues to be a very appealing aspect of every listing, this is something more. A total walkthrough with commentary for example. Imagine the possibilities at this point! The video can be downloaded to YouTube, which is owned by one of the world’s largest search engines, Google. The video can be attached to my website to showcase a particular listing that I have. It can remain on our company website, blog,  and we can email it to prospective clients. I think that is pretty cool.

We don’t just do houses! Let’s say that you have had your home on the market and it didn’t sell. You are thinking of hiring another company to get the job done for you. How would you like to meet me before you ever talk to me in person, let me explain. Part of the introductory package that I send to expired listings (you are an expired listing if your home went off the market without selling) is a DVD about five minutes long introducing myself and two other very important people that work in our office. Nothing too fancy, but I’ll bet that you won’t get a letter from another agent doing the same thing.

We also do monthly and quarterly updates giving showings  and sales activity, and other current market information.  If you haven’t seen one of our video’s, check out our monthly LHC video on our website. We are not complacent, things change daily and I would like to think that we do too!

Marc Hammack

REALTOR®, CDPE

Marc moved to the Lake of the Ozarks in the Spring of 2001, from the Kansas City area.  He has 10 years of experience in the personal finance industry, as a loan officer and over 20 years of experience as a carpenter and custom home builder.  His background has enabled him to have a good understanding of the value of properties at the lake, from both a financial and product quality aspect.

Following the market statistics was a ‘Developers Panel’.  New this year, this panel featured top developers, Neil Stewart, Gary Prewitt, and Kevin Brown.  Neil’s latest development is Parkside Village (15+ acre medical development across from Lake Regional).  Gary developed Prewitt’s Point and is currently working on The Shoppes at Eagles Landing (new home of Kohl’s, CVS Pharmacy, and Menards).  Kevin developed Lands End and many other condominium complexes here at the Lake.  The developers shared their insights into the challenges of developing today, how the Lake differs, and what can be done to encourage future development.

Jeff Green, Missouri Shoreline Supervisor, presented on FEMA property boundary issues as well as Ameren’s position regarding the rehearing request.  Jeff gave a clear understanding of the current issues affecting 5% of waterfront properties around the lake and what it will mean if FERC adopts Ameren’s request in their final ruling.  Finally, Frank Christensen laid out his predictions for the 2012 real estate market, suggesting that we will see modest gains in both volume and sales numbers with a chance for a wild card 10% increase.  The symposium offered great information and everyone walked away with a better understanding of our market.  To view all the presentations of the symposium, visit: www.LakeRETrends.com

One specific topic focused on Camden County’s new mapping system.  The GIS Analyst for Camden Co., provided us with up-to date information on how to navigate and best utilize the new mapping system.  Education continued when both city planners for Osage Beach and Lake Ozark came to discuss new commercial activity.  Affiliates shared information in the lending and insurance industries.

The September 27^th class, featured Wayne Fredrick, Regional Director of the RE/MAX Mid States Region and former owner and broker of RE/MAX Springfield.  Wayne has an extensive background in training and is instrumental in helping agents adapt to the changes in our current market.  (Over 40 RE/MAX Lake of the Ozarks agents attended).

Other topics included negotiating for today’s buyers and sellers; how to help sellers sell for the most money in the shortest time, and communicating in today’s market.

It was a tremendous class and our team came away very excited about what we learned and how we could use the ideas to help our clients.  We are very fortunate to be associated with a company that cares enough to continue to increase the support and training needed to keep us on top of the market.

Our team takes advantage of all opportunities to educate ourselves on today’s changing markets.  We are up over 20% in team production over 2010 and attribute our growth to the ability to adapt and change to the demands of the market.  When choosing a Realtor to represent your property and the Lake make sure education is a key component in their business plan.  If you have any questions about your Lake property or would like an expert opinion- feel free to contact our office at 573-302-2355 for a free consultation.