Our broker, Adam Kruse, has been involved for several years with helping to promote “The good of the loop”  participating in activities such as loop cleanup day and unofficially helping to plan small parts of the wildly successful Loop Ice Carnival.  Kruse says, “Joe Edwards is one of my Heroes” as he flashed a big smile for being in a photograph with our St. Louis Hero Joe Edwards.  Edwards is well known for owning such businesses as Blueberry Hill,  PinUp Bowl,  Moonrise Hotel, among many of the buildings that are rented to businesses such as HSB Tobacconist and others.  Adam Kruse has a great respect for Edwards due to his success as a real estate mogul and marching to the beat of his own drum, Edwards is well known for his long hair, bear, and Hawaiian shirts, shorts, and sandals.

Congratulations to the Loop on their receipt of the recent funding and Hermann London is looking forward to tracking the progress of the Trolley and the positive impact on the homes and businesses along the route.  We feel that a project of this size will continue to build positive press for St. Louis, and will hold the Delmar Loop as a mainstay on such lists as “Top 10 greatest streets in America”.   We don’t know the exact timeline until we can expect ground to be broke, or to jump on the trolley for the first time and ride over to the History museum, but we will keep our readers in the “loop”  on the progress.

One look at the build quality of a Kaydean Group home, and you will know it’s the right time to build.  A Kaydean Group home is built to stand the test of time. They have devoted there attention to building quality home that delivers an attractive curb appeal, way beyond that of there competitors. Prices are currently at there low point, don’t miss out. The interest rates are at 54 year lows!

To find out more details contact Phillip Vincent at 314-537-7445

2.       With 5 employees, is 1,000 SF the right amount of space?  5 people per 1,000 feet is a good rule of thumb, but if you have special storage needs or big servers, that could push you into a bigger footprint.

3.       How much parking do you need?  Is 5 employees it or do you need space for visitors?

4.       How important is visibility?  Do you need to have building signage?

5.       What does the space feel like?  Creative office or traditional?  Are we looking for a space that can be converted with some character or are you looking for a very professional space?  How nice are the finishes?

6.       Is there anything you need to be near?  Other businesses perhaps (for instance appraisers and real estate people like to be near each other and lawyers like being near a courthouse), or near restaurants and bars, or near a highway?  Is access to other parts of the city important?

7.       Lastly, how much do you want to pay per month?  Does your budget include utilities (gas and electrical)?  What about phone and internet?  How long of a lease do you want to sign?  Many landlords leasing space of this size treat it as an apartment and run credit checks and have the tenants sign personal guarantees.  Are you comfortable with that?

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research of the National Association of REALTORS® speak about “Market Trends & Economic Forecasting”

Yun discussed the U.S. economy and the impact that it has on the housing market. He began stating that 1/3 of home sales are distressed sales (i.e. short sales, foreclosures, REO’s) and that there are about 700,000 more vacant homes than the market typically holds. He spoke about what is driving the market today, how this effects the consumer and his views on the success of the late tax credit.

According to Yun, 4.4 million Americans were able to take advantage of the tax credit. Approximately 2/3 of those were first time home buyers while the other 1/3 were repeat buyers. He also stated that he felt that the tax credit was a success. It helped to move inventory through the market and helped to move buyers “off the fence.”

Yun stressed the significance of low interest rates stating that if you look back in time, today’s rates are even lower than rates during Eisenhower’s Presidency in the 50’s. This should be helping to increase consumer confidence, however Yun suggested that it is psychology that is driving the market today. Even the consumers who are willing and able to purchase a home are holding out longer than they typically would to make their purchase.

Consumers whom are willing and able to purchase a home should do just that. Housing affordability is high due to the low interest rates and low housing prices. Yun simply suggested that buyers be sure to stay within their financial means when purchasing a home.

With willing and able buyers holding out, the market is seeing a stockpile of inventory. Yun explained that once 10 months of inventory accumulate, according to economic philosophy, prices should then decrease. However, Yun also stated that it would be difficult for prices to drop much lower than they already have.

Yen concluded the lunch stating that it is now psychology and consumer confidence that is driving the market. The U.S. is in a “slow recovery,” with interest rates low and job creation on the up-swing, Yun dubbed this era to be “The Great Recession.”

Laura Poole
Hermann London
636-284-8828 cell
314-802-0797 x725 office
7350 Manchester Road
St. Louis, MO 63143
LauraP@HermannLondon.com

Looking ahead, many economists believe that U.S. interest rates will remain low for an extended period of time. Words from Fed Chairman Bernanke last week seemed to reiterate that the economy continues to struggle particularly with jobs and a housing sector that remains in recession. After a strong week last week in the stock market and selling in the bond market, one focus will be treasury auctions. Strong demand continues for treasury bills with a total of $104B set to be sold Tuesday, Wednesday and Thursday this week. June new home sales are to be announced Monday and are expected to be up 4.25% from May. Other key data announcements this week include early estimates of 2nd quarter GDP and the Chicago Purchase Managers’ Index.

Greg Iverson
Mortgage Banker
Envoy Mortgage LP

10121 Paget Dr.
St. Louis, MO 63132

314-993-6690 Office
877-907-6907 Toll Free
636-751-1068 Cell
866-560-1801 Fax

ST. LOUIS, MO – Laura Poole with the Hermann London Real Estate Group has been awarded the National Association of REALTORS^®’ Green Designation, the only green real estate professional designation recognized by NAR.

Poole achieved this prestigious designation after completing 18 hours of course work designed specifically for REALTORS^®.  The courses were created in collaboration with a multidisciplinary team of industry experts from across the country; ensuring designees gain comprehensive knowledge of green homes and buildings and issues of sustainability in relation to real estate.

More specifically, Poole was trained in understanding what makes a property green, helping clients evaluate the cost/benefits of green building features and practices, distinguishing between industry rating and classification systems, listing and marketing green homes and buildings, discussing the financial grants and incentives available to homeowners, and helping consumers see a property’s green potential.

“Living green is about making healthy choices that are also easy on your wallet. NAR Green Designees have the necessary resources & relationships to effectively work with you on your next green project.” said Al Medina, Director of NAR’s Green Designation.  NAR’s Green Designation was developed in response to growing consumer awareness of the benefits of resource-efficient homes and buildings. The designation helps consumers who care about energy efficiency and sustainable building practices identify REALTORS^® who can help them realize their green real estate and lifestyle goals.

As an NAR Green Designee, Poole has gained the knowledge and the tools necessary to become a trusted green resource for St. Louis.

For more information about Laura, please visit Laura’s Bio or email her: LauraP@HermannLondon.com.

1. Does the Gateway Science Academy (GSA) charge tuition?

This school runs much like a public school and it free to all students.

1. Does GSA provide transportation to the students?

No, parents are required to organize rides for their children to and from school.

1. Who can apply to GSA?

The goal of GSA is to be a neighborhood school. Their first priority will go to students that live in the following zip codes: 63139, 63109, part of 63110 and part of 63143. Parents are encouraged to apply even if they are not in these zip codes because if the school is not full they will accept students from other zip codes.

1. Are there any other activities that the school offers?

GSA will offer a variety of interest clubs after school. These include drama club, cooking club, dance club, choir, guitar, art, green team, student council, yearbook, and a variety of sports. The school would be happy to accept any other ideas. These clubs all run different times from a few weeks to the full school year. All of these clubs will end by 5pm.

1. Will the students be required to wear uniforms or have a dress code?

The students will be required to wear a uniform. They will be purchased through the school.

1. What grades will the school service?

The first school year, 2010-2011, will have grades K-7. After the first year, GSA’s goal is to continue to add older grades and end up with a school that houses K-12.

1. Is GSA accredited?

For the 2010-2011 school year, the school is not accredited however the goal of the school is to be accredited by year 2.

1. The school is named Gateway Science Academy, does that mean the main focus is on Science?

The school will focus on all core areas of academics, not just science. However, the school will be an environment for an intensive technology, math and science learning.

1. Where is this school located?

The address of the school is 6576 Smiley, St Louis, MO 63139. The phone number is 314-498-7454.  It is housed in Epiphany of our Lord that closed at the end of the 2009-2010 school year.

At the meeting last Thursday all of the teachers and staff attended and introduced themselves. They were all very enthusiastic and happy to be a part of this new program.  There were 900 people that applied for these positions so GSA is excited to have the cream of the crop. Call the school with any questions or come by anytime between 9am and 3pm, Monday thru Friday for a tour of the school. This is a great resource for the community and will increase our property values and keep more families in the city that can’t afford private schools. For more information on properties in the area call Laura Breitenstein at 314-608-2299.

Laura Breitenstein, Broker-Salesperson, M.B.A, Power Agent

Hermann London Group

P:314-608-2299

Email: laura@hermannlondon.com

Rates are fantastic

basis points, 30 year FHA bonds increased 100 basis points and 15 year conventional bonds increased 84 basis points.  Overall these bond price increases led to a decrease in mortgage rates of approximately 8 basis points on average.  Analysts believe investors flocked to bonds last week due to growing concerns with the United States economy.  Two key manufacturing indexes came in weaker than expected and the consumer sentiment index plunged (indicating that consumers are not nearly as comfortable with the state of the economy as Wall Street and Washington would like them to be).

Mortgage markets this week will be affected by the June housing reports that are due out.  June housing starts and permits are due out Tuesday while existing home sales are due out Thursday.  Both numbers are expected to be down from May.  Federal Reserve Chairman Ben Bernanke will speak Wednesday and Thursday.

Overall, the equity markets are expected to struggle this week, adding support to low mortgage rates.

Greg Iverson

Mortgage Banker

Envoy Mortgage LP

10121 Paget Dr.

St. Louis, MO 63132

314-993-6690 Office

877-907-6907 Toll Free

636-751-1068 Cell

866-560-1801 Fax

giverson@envoymtg.com

Working as a Team to complete Short Sales

want to sell them (they think) but most people don’t really understand them, and everyone you talk to has a different opinion about them.

We did a survey to Realtors across the country asking for opinions, tips, ideas, and stories about short sales and here are some of the responses:

“Perserverance and strong document preparation skills are two of the most important traits a short sale agent needs. I work on shortsales 7 days per week and see all sides.
Buyer issues, seller issues, lender issues. I am able to sucessfully navigate the process but it’s not easy. If you are interested let me know.
Good luck.” – Lisa Johnson

“A buyer that is considering a short sale needs to be ready to invest a lot more time than a typical real estate transaction. Most short sales take longer than 90 days from contract to close and have seen them go as long as 1 year. The buyer also needs to realize that a short sale is not always a good deal. The short sale process is for the benefit of the seller. A house goes into a short sale when the seller owes more on the mortgage or mortgages than the seller can sell the house for on the fair market, so the lenders are willing to take less than what is owed on the note or notes. To be a good short sale agent you have to be patient, organized and a great communicator. The process is difficult and requires communications between many different parties, selling agent, lenders, negotiators, etc.” – Jeff Biney

“I did my first short sale in 2002 before they even had a name, and now I teach continuing ed to Realtors in Florida about short sales while still actively working the transactions myself.

Short sales pose an extra layer of risk to the buyer they sometimes wait months and months and at the end the contract is turned down by the bank. Usually this is caused by one of 3 things: a mis-priced property, an inexperienced listing agent, or an unqualified seller.

A great short sale agent must be organized, patient, diplomatic when dealing with the lenders, use honey to attract flies rather than vinegar, yet be willing to become a pit-bull when and if the need arises!

Homes become a short sale when the amount is owed on the property plus all of the expenses of the sale exceed what the property is worth. General rule of thumb: What the home is worth in TODAY’S market less 10% in costs. If that exceeds the amount you owe on the home (including all back payments, attorney’s fees, taxes, etc.) then you are looking at either bringing the difference to closing in the form of cash or it must be a short sale.

Short sales are 98% based on true hardship of the seller and that is a critical part of the short sale approval’s chances.” -Andy Tolbert

“What advice would you give to a buyer considering
purchasing a short sale? Expect delays and lots of up’s and downs. A short sale is never uncomplicated. Expect lots of communication between the realtor and the buyer and seller, the title company and also the lender especially if situations involving FHA loans. This is not a situation where the buyer can plan with any certainty because there is always a twist or a turn involving a short sale transaction. It is a roller coaster always until the finish line. Number one tip is to be sure your realtor the buyers agent and the sellers agent are on the same page and in good communication because communication is key. Agents need to stay in constant communication with the bank and with their clients both the seller and the buyer.

What does it take to make a great short sale agent? Excellent communication and writing skills. They must be able to communicate well in writing and by phone and be aggressive in order to ensure the short sale is closed.

HOW DO HOUSES END UP BEING A SHORT SALE? Homes end up being short sales for a variety of reasons the top two are 1) because homeowners end up not being able to negotiate withthe banks to lower their interest rates or monthly mortgage payments tto fit their particular budgets or 2) they find that their homes are upside down and their only choice is to sell and hope that the bank will approve a short sale so that they can walk away from their home without having a foreclosure on their record.” -JACOB J. GABRIE

“Short sales are an excellent alternative for ‘educated’ buyers. The key word is ‘educated’. Qualified buyers are able to negotiate fair deals at safe terms. Ultimately freeing the market of extra inventory. I have a system in place that allows the home owner some control and the buyer to feel as though it’s worth waiting out the process so it’s a win-win situation for all involved” – Lisa Sevajian

“What advice would you give to a buyer considering purchasing a short sale? Buyers should keep in mind that short sale properties are often in better condition than foreclosures and are priced to sell quickly. Buyers also need to remember that not just any offer will do – a short sale is a fire sale, but home sellers may counter; and their agents can only bring reasonable offers to the bank, which typically means a little less than market value.

What does it take to make a great short sale agent? Designation and Determination – not just anyone can help navigate a short sale – before listing your home consult with a Certified Distressed Property Expert (CDPE) designated agent who can help you make good decisions early in the selling process. CDPE training walks agents through every step of the process, including all the documents needed by banks.

How do houses end up being a short sale? The dramatic increase in the number of short sales is due to the current economic crisis, including rising unemployment and drops in home prices across the nation. A short sale can be the best option for homeowners who are “upside down” on mortgages (when you owe more on your home than it is worth) because it may not hurt their credit history as much as a foreclosure.” – Rosanne Gain

“The best answer to all of your queries is PATIENCE,PATIENCE,PATIENCE. In order to purchase a short-saleproperty a buyer has to exercise caution and patience. The biggest concern for most buyers should be “can I deal with the unknown?” In many cases home inspections are allowed but only after a contract has been accepted. The biggest thing for a buyer is to find an agent who has closed sort sales before. Many realtors claim to have the knowledge but unless you know for sure, you can’t be too careful. Having an agent who knows the process can not only speed it up in some cases, but they can also get the best price for you without all the haggling. Thank You” – Don Billings

“Buyers who are considering purchasing a short sale should be prepared to wait for the bank to review the package and understand that there are no guarantees that the terms agreed upon with the Seller will be accepted by the bank as well. This wait can be 3 to over 6 months depending how many mortgages are there on the Property.

When purchasing a short sale, Buyers should make sure that theirs is the only contract executed by the Seller and sent for the bank’s review. In cases where multiple offers are sent, Buyers can waste months before learning that somebody else’s offer has been accepted.

House ends up being a short sale when total outstanding mortgages on the Property exceed the current market value. Therefore, Seller is not able to generate enough proceeds from the sale to cover mortgage balances and he usually has some type of financial hardship that prevents him of covering the difference himself. In this case, bank is asked to forgive the difference by allowing short payoff, hence the short sale.

The Real Estate agent processing short sales must be knowledgeable about the process inside out. Initially, they should price the Property correctly based on the latest comparables, not based on the outstanding mortgage amounts. Once the offer is received and the package is submitted to the bank, constant follow up and persistence on the part of the realtor are on the top of the list. This close supervision of the proceedings is needed to successfully complete the transaction, while keeping all the parties up to speed with the latest developments.” - THE DS TEAM

“What advice would you give to a buyer considering purchasing a short sale?
I would tell them to make sure that their agent (selling / buyer agent) verifies the Listing Agents (sellers agent) level of short sale negotiating experience. The worse thing for the buyer is to make offers on short sales where the listing agent has no experience getting them approved.

What does it take to make a great short sale agent?
A GREAT SHORT SALE AGENT IS ONE THAT SEE ALL ROAD BLOCKS DURING A SHORT SALE NEGOTIATION AS JUST A MINOR HITCH THAT NEEDS TO BE NEGOTIATED. HENCE, THEY NEVER QUIT, THEY FIND THE MIDDLE GROUND AND MAKE SURE THAT THEIR CLIENT (SELLER) GETS A DEAL THAT IS IN THEIR BEST INTEREST. A GREAT SHORT SALE AGENT DOES CONSTANT FOLLOW UP WITH ALL PARTIES INVOLVED IN THE SHORT SALE FROM THE LOSS MITIGATOR, TO THE BUYER AND AGENT, TO THE SELLER AND EVEN TO THE TITLE COMPANY. NO STONE IS LEFT UNTURNED AND NO ONE IS LEFT UNINFORMED

How do houses end up being a short sale?
Home end up in short sales for two main reasons

* THE HOME HAS LOST SIGNIFICANT VALUE
* THE SELLER IS IN FINANCIAL HARDSHIP AND CAN NO LONGER MAKE PAYMENTS (THAT SAID THERE IS A NEW TYPE OF SHORT SALE CALLED STRATEGIC SHORT SALES WHEREIN THE HOME HAS STILL LOST VALUE BUT THE SELLER IS MAKING THE FINANCIAL DECISION TO SELL THE PROPERTY EVEN THOUGH THEY CAN AFFORD TO KEEP IT – THEY DO NOT WANT TO HOLD ONTO A HOME THAT HAS NEGATIVE EQUITY)” – Owen McGab Enaohwo

“I would advise a potential buyer of a short sale to investigate the loans the seller took out on the property. The loans can tell a lot about whether a property even has a chance at being sold short. Whether the loans are FHA or Conventional, or if there are multiple loans and liens can tell you a lot and make a huge difference.

Being great at selling a short sale (like a lot of things) is all about practice. If selling short sale homes is going to be a part of your business plan as a Realtor, it’s important that you do enough of them to have clear answers and responses to typical obstacles. I’m meeting six different distressed seller’s this week and no two of them have the same situation. Like any specialty if it’s not your regular book of business, I highly recommend referring it to someone else.

A short sale can happen anywhere from new build areas to established neighborhoods. It takes three things to happen.
One, you bought a home with a loan. Two, your home’s value decreases below the amount of the loan. Three, you decide to sell.  Any sale would evolve your lender because he won’t be receiving the full loan amount in repayment. ” - NOAH SLAUSON