There is an increasing amount of documents and attachments that must be included in every sale.Some closing officers are even having the parties sign an agreement that they will sign additional forms if it is discovered that that they have been accidentally omitted.
Specific disclosures can be required to be given to buyers prior to them seeing the property for the first time and others prior to entering into a contract, and still others prior to closing the transaction.A bill of sale is generally required when personal property is included in the sale but special care needs to be taken so that it doesn’t affect the mortgage amount.
Specific types of buyer financing require specially promulgated contracts.Understanding which sales contract to use is important to protect the rights of all parties.It is also necessary to know what special provisions to include.
Download this episode (33 min)
Downtown St. Louis is ALIVE! Check out the downtown living tour this May 3rd and 4th noon to 5pm to see all of the available residential units for sale or lease. Cost is only $5. Start at either 9th and Olive or 20th and Washington. Listen to Jim Cloar, President and CEO of the Downtown St. Louis Partnership, talk about all of the exciting things that are happening downtown. He mentions transportation, the new grocery store, perception of crime and more. This is a show you do not want to miss.
Everyone deserves a break. Especially those who keep the streets clean. I am happy to say that they have done a wonderful job making Downtown St. Louis a clean place to live.
There is nothing better than walking to your car after a baseball game and find that your friend the parking meter had expired by 2 minutes. Good thing these suckers are free on the weekends. If you can find a friend who lives downtown in one of the lofts then see where there are free spots in the alley. Save some quarters for your gas tank instead.
Bridge & Tunnel NY Style Pizza in the Old Days Inn across from Copia
Senior Julio Mexican rest. open in the old Have a Nice Day Cafe location in Union Station
New Shuttle Service openning on Market & Jefferson
New Pet Rescue/ adoption place at 2722 Washington 533-POSH
Maurizio's remodeled & new name: Maurizio's Pizza & Pasta Bowl They added 7 Pasta dishes. Steve Scaglioni is the owner. He might have some good words for a podcast for you. He visits the restaurant almost everyday.
621-1997 is the restaurant number. Tell him I said to talk with you. We have lunch a few times a week. He is extremely intelligent. His other business just went public on the Nasdaq.
Hannegan's on the Landing is now do lunch delivery M=F 10:30=1pm
Business On The Mound - is a local internet radio show that plays every Thursday. They pitch for new businesses and up and comers. (I suggest you contact Bryan Kress 847-971-1001 He would love to put you on his show. You are doing good stuff.) www.businessonthemound.com
F15teen - has a limo service for Baseball season
King Louie's Popcorn is opening a second location in South County Mall - currently in Union Station
Gus' on Tucker is planning on changing to a Pet Care & Supply Store - Jamie's/the owner says his wife has been a vet for years and downtown needs the service.
The plan to use the entire building/ 3 floors
Robert's Brothers are constantly working on their location next to Wasabi on Washington. Looks like 4 mall type stores to be available as a walk-in from the sidewalk situation.
Ben, Brad & Zachary have finished remodeling the old Marte's building into three storer fronts on Washington & 14th and a bar/restaurant facility in the back half of the building.
They also have done an excellent job designing their Monkey building into offices and retail store fronts for Erlich's Cleaners and a shoe store *(I don't remember the name) in the front of their building. The conference room is like a room from the future: all bright white with glass walls and tables and bright white swivel chairs on wheels. An excellent meeting room.
The building across the street has been acquired by a bank and is currently being leased out at very affordable rates.
City Museum has expanded to summer hours. Sorry I don't have them at my desk at this moment.
I'm told the Park Pacific development at Olive and Tucker is still moving.
Blue Urban is auctioning off lofts next to the baseball stadium soon.
(There's a podcast for you. They auctioned off one of their buildings last year. Sold every unit in a day. A
contact: Glenda at 436-2200)
A new boutique will be having a Grand Opening in the Bogen (Tucker & Washington/Bogen Bldg) the 27th of March. California Clothing and such I believe. More boutiques are what Ben, Brad & Zachary and trying to bring back to the Washington Avenue Loft Area.
KYO has remodeled and converted into two entities:
Sugar Lounge on the old Inferno rest. side and a kind of cocktail lounge restaurant on the west side of the building. Very nice interior. They haven't sent me any info yet. Doug who previously started KYO is still associated with the operation. Megan from Lucas PArk Grille is now working their.
• May. 2, 2008 - Frequently Heard Pricing Objections That Have No Relationship to Value
Frequently Heard Pricing Objections That Have No Relationship to Value
"Another Agent said it was worth more." – It isn’t an agent that puts a price on a property. It is established by the market which includes what similar properties have sold for recently and what the supply and demand is currently.
"Our home is nicer than those houses." – This is a subjective opinion, generally, from a biased individual (the seller). What is “nice” to one person may not be to another.
"People always offer less than asking price." – This makes the assumption that everything is over-priced and that isn’t the case. There are lots of properties that sell for full price or sometimes even higher. By over-pricing a property to allow for the buyers negotiations actually encourages lower offers.
"We can always come down on our price." – Studies have shown that the longer the home stays on the market, the lower the price will be. Sometimes, it can be lower than what it would have sold for if it had been priced properly in the beginning.
"We have to get that much out of our home." – There is no rational reason why a buyer should pay more than fair market value for a person’s home just because the seller has a need for the money. The buyer usually thinks that they have a good need for the money also.
"My neighbor was able to get his price." – “His price” may be less than he was asking and the only way to know is through examination of the MLS or county records. Many times, this objection is a misunderstanding about what the neighbors “thought” the property sold for.
"Let's try it at our price for a month or so." – Trial and error is generally not an acceptable way to price a home. The initial price enthusiasm of the market generated by a new listing is lost and can’t be regained.
"The buyers can always make an offer." – Unfortunately, the correct buyers who might make an offer won’t even be looking at it because it is out of their price range. Buyers don’t want to look at homes they can’t afford just to get their hopes dashed and have to downsize their realities.
"We paid more than that for our home." – Regardless of the reason, ignorance of value or downturn in the market, appraisers don’t care and neither do the buyers.
What you do and do not do have an effect on how much the home sells.
The preparer disclaims all express or implied warranties for the contents of this report. Although all facts, figures and projections have been obtained from sources deemed reliable and are believed to be correct, their author assumes no guarantee or liability. This form assists in the analysis of a real estate decision and is not intended to comprehensively analyze the financial or tax ramifications for an individual homeowner. Should you feel you need legal or tax advice, it is suggested that you consult a qualified professional. This form assumes the tax preparer will itemize deductions.
SALE OF A PRINCIPAL RESIDENCE
The Internal Revenue code allows a homeowner to a specific amount of gain from a principal residence based on a taxpayer meeting certain requirements.
However, most homeowners don't take advantage of all the adjustments in order to keep the gain as low as possible. If the truth could be told, most people's records are so poor that when the time comes to recognize the gain, the calculations probably have to be based on estimates instead of actual numbers.
Rules to be eligible for Exclusion
1)Qualifying home must be used as your principal residence two out of the five preceding years. This exclusion does not apply to vacation or 2nd homes.
2)Effective for sales on or after May 7, 1997.
3)Couples filing joint returns can exclude up to $500,000 of gain on sale of principal residence. Single return filers can exclude up to $250,000.
4)Gain in excess of applicable exclusion is taxed at appropriate capital gains rate.
Part 1 - Basis of Residence
A.Purchase Price - the form starts out with the original purchase price of the home. This would be the price that is shown on the closing statement at the time of purchase.
B.Personal Property Items - the cost of personal property that was included in the purchase price must be subtracted at this point. If no actual value was assigned to the property at the time of purchase, a conservative estimate should be used.
C.Purchase Costs - Included here are closing costs that the homeowners paid for the acquisition of the home but were not expensed in the year of purchase. Costs to acquire the loan and reserves for insurance cannot be deducted or capitalized.
D.Total Basis at Time of Purchase - this is the figure that is arrived at by subtracting the personal property items from the purchase price, then adding the unexpensed closing costs and then, subtracting the cumulative deferred gain.
E.Capital Improvements
IRS allows a homeowner to take the costs of capital improvements and add them to the basis of their home in order to accurately reflect the true gain in a property when it is sold. The problem is that many people find it hard to distinguish a capital improvement from a repair.
A repair is considered to be maintenance of an existing item such as fixing a dripping faucet, adding Freon to an air conditioner, or replacing a broken window.
However, a capital improvement is something that adds value to the residence either by materially adding features or extending the life expectancy of the improvement.
A good record should be kept of capital improvements and it needs to be documented with receipts and canceled checks. To avoid controversy at some point in the future, a photograph could go a long way in helping to prove that the improvement was actually made.
The basic questions to determine if an expenditure qualifies for capital improvement treatment are:
1)does it materially add value to the property?
2)does it extend the life of the property?
3)does it adapt a portion of the home to a new use?
Capital improvements can include such items as landscaping, street assessments, remodeling, swimming pool, Formica counter-tops, and the like. If replacement items are used such as installing carpet where there had previously been carpet, only the upgrade amount can be added. For instance, if the home had a builder's grade of carpet and it was replaced with a more expensive line, only the difference between the builder's grade and the replacement can be added as a capital improvement.
An adjustment for casualty losses can also be made in this location on the form. A casualty loss is any actual monetary loss in value to the property you may have suffered but did not recognize on your tax return for the year of the loss and that you were not reimbursed for out of insurance proceeds.
F.Adjusted Basis- the combination of the total basis at time of purchase and the total capital improvements is called the adjusted basis.
Part II - Computation of Gain
A.Selling Price of Old Residence- the sales price of the property that is being sold is placed in this blank. It is the figure shown on the closing statement and sales contract.
B.Less Personal Property Items - An adjustment is made to determine the value of the real property being sold. If no actual dollar value was attached to the personal property, the IRS allows the value to be estimated. Unlike the strategy in Part 1, the larger the value of personal property declared here, the smaller the gain. Therefore, don't undervalue personal property.
C.Expenses of Sale - The sales expenses or sales costs of the old residence are listed here to be subtracted from the sales price of the old residence less personal property items in order to accurately reflect the gain.
Typical fees paid are brokerage fee, loan fees, title insurance, escrow fees, attorney fees, and other miscellaneous fees. Points paid by a seller are not interest but are treated like other sales costs and are basis adjustments.
However, a pre-payment penalty is considered interest and is not reported here but as interest paid on a personal residence and is reported on Schedule A of the 1040 Form.
D.Net Selling Price - the price that the property sold for less personal property items and expenses of sale in order to accurately reflect what the seller actually received for the property.
E.Basis of Residence Sold - inserted on this blank is the adjusted basis that was calculated in Part 1.
F.Gain on Sale - by subtracting the adjusted basis from the net selling price, the gain on sale is ascertained.
• Feb. 16, 2008 - Buyer’s or Seller’s Market Downtown St. Louis
To determine a trend, it is necessary to analyze whether the days on the market are increasing indicating a shift toward a Buyer’s market or decreasing, thus indicating a shift toward a Seller’s market.
The determination of when it switches from a Seller’s to a Buyer’s market is difficult to pinpoint. The trend toward a Buyer’s market is easier because the days on the market are increasing. When this happens, there are more homes on the market competing with each other for the available number of sales per month.
In rapidly increasing or decreasing markets and when the competition is stronger, the subject property should be priced slightly ahead of the market. Only in a rapidly rising market, can a home be priced slightly ahead of what the market indicates. However, when the market is declining, the home should always be priced slightly below what the market indicates.
It takes a certain amount of time to get the home exposed to the market and it needs to have the competitive price advantage at that point. If it doesn’t get this initially, the property will be trailing the declining market and generally never achieves that advantage.
The first real estate podcast for the St. Louis, MO metropolitan area offers practical real estate advice from experienced professionals working and living in St. Louis.
Doug Devitre welcomes Lewis E. Reed, President of the St. Louis Board of Aldermen to the show to speak about real estate and other issues important to St. Louis.
St. Louis, Missouri, January 28th, 2008: President Lewis E. Reed sits down with Doug Devitre and answers important real estate questions and discusses key issues in St. Louis. He explains TIF’s, the Community Development Administration, Neighborhoods, Environmental Issues and Education. This is a unique opportunity to hear one the region’s most influential policymaker’s thoughts on St. Louis.
Professional contact information:
·Rory J. Roundtree, Communications Director
·314-622-4114
·RoundtreeR@stlouiscity.com
·City Hall
·1200 Market Street, Rm. 232
St. Louis, MO 63103
Ways to listen to this podcast:
There are several ways to access this podcast over the internet:
1.Visit www.STLpodcast.com and look for the topic and click on the play button.
2.Visit www.MoveWithDoug.com and select the “First St. Louis Real Estate Podcast” link.
3.Open iTunes music software on your computer and type “Devitre” in the search link and look for “First St. Louis Real Estate Podcast St. Louis.”
4.Subscribe to the podcast through iTunes to automatically download each show.
5.Download the podcast to an iPod or MP3 player from iTunes.
If you have just moved to downtown or have lived year for a while it may be a good time to get out and meet some of the neighbors. I know that each building has their own separate events but not many building have an all together social event. Cummel's Cafe, a local breakfast and lunch nook if offering mimosas, bloody mary's and a breakfast buffet all for $10. It is located at 1627 Washington Ave. Where can you get all you can drink cocktails and breakfast for $10??? Also, Cummels has WiFi internet so if you want to bring your laptop and surf the net, or post to your blog then you have that additional option. Hope to see you there.
• Jan. 7, 2008 - 1511 Locust Street #104 Downtown St. Louis
Worth every penny. Live Downtown next to all the action at a fraction of the cost (less than ($158/sq.ft.). Truly unique private 400 square foot backyard has its own landscaping and patio, perfect for outdoor grilling or entertaining guests. 20 x 20 of windows brings substantial natural night to the kitchen/dining area. Includes 1 car assigned secured parking space #220. Exercise room with TVs, two hot tubs and extra club patio has a gas grill with additional seating. Extras include double sinks in bathroom and private laundry hook ups. Updated kitchen features new cabinets, countertops, and appliances (refrigerator, microwave, stove, & dishwasher) included in the sale. Why rent when you can own and build equity instantly on the purchase? This unit appraised last year for $180,000. Annex Lofts is 8 blocks from the Metro Link. Buy as a second residence or investment property. Interstate 64/40 is closing. Why sit in traffic when you walk to everything? Call for a private showing. Parking is $73/quarter maintenance fee for the garage. Annex Lofts http://www.annex-lofts.com/home/about.asp Located in the historic Washington Avenue Loft District, The Annex Lofts is in the heart of St. Louis' vibrant urban renaissance. Just minutes from leading sports and entertainment venues, downtown business district employers, and a mix of trendy restaurants and nightlife, The Annex Lofts is close to everything. Originally the building was an Ely Walker Dry Goods Warehouse. It was later purchased by the General American Life Insurance Company (their former headquarters is now the Terra Cotta Lofts) and it became “the annex” to the General American Life Building. In 1961 the original façade was removed and the limestone and black granite façade was added to modernize the building. The lower floors were used as additional office space and the upper floors were used for storage. The Annex Lofts are authentic residential loft spaces combining the texture and authenticity of the circa 1917 Ely & Walker Dry Goods Building with modern interior design. Each loft home features a desirable mix of original architectural elements and new modern amenities. Added value comes from secured garage parking, a complete kitchen appliance package and upscale professionally-designed common spaces including a fitness center and patio/garden area.
• Jan. 7, 2008 - 1520 Washington #622 - Ely Walker Building
This loft showcases the finest of urban living priced below what other comparables are selling in the building. Spectacular views of St. Louis city skyline from the 6th floor oversized windows and overlooks the gigantic atrium inside the building. Upgrades include 42'' Brighton Honey cabinets, pedestal sink, GE appliances, and wine chiller. The party deck on the top floor is perfect for entertaining guests. The large private exercise room will keep you fit year round without leaving the building too. Walk the Washington Avenue strip filled full of trendy restaurants and stylish boutiques. This unit comes with one covered garage parking space.
Get ready to sit in traffic. There are many things you can do in order to be productive while sitting in traffic. If you don't have an iPod yet then now is the time. Why not listen to your favorite book on tape or learn a foreign language? Just because you will have a longer commute does not mean you can be productive.
Also I recommend altering your driving schedule if you can. Arrive early to work an leave early. Arrive late and leave late. Work from St. Louis Bread company on your laptop. I tell people I have 30 offices in the St. Louis area all that serve the best coffee, sandwiches, and have wireless internet for everyone.
Also, we will be releasing the first St. Louis podcast for real estate so stay tune to get the latest real estate information in the St. Louis area. I will keep you posted when this is released.
• Dec. 4, 2007 - 111 Question to Ask Before Buying a Loft Downtown
Buying new construction or resale lofts/condos is not as easy as you may think. Prepared consumers know what questions to ask and when to ask them. Avoid common mistakes most first time loft buyers make by asking the right questions before you make an offer to invest in lofts/condos for sale. Please read the following questions and be sure to ask the appropriate professional when you are ready to make that next step.
The Developer
1. Is the developer local, from another part of the state, country, or world?
2. What other projects has the developer produced?
3. Does the developer have a reputation for producing the units by the anticipated closing date?
4. Who is the architect for the building?
5. Have is the general contractor?
6. Does the developer use union workers?
7. Who are the major suppliers of materials, supplies and personal property?
8. How many builder sales representatives will work with me throughout the process? If so, then who does what?
9. Does the builder use green building materials and/or systems?
Jim Cloar President and CEO of the St. Louis Downtown Partnership
The Downtown St. Louis Partnership is a private, not-for-profit organization,representing the downtown community in its efforts to improve the economic vitality and attractiveness of downtown St. Louis. In that role, the Downtown St. Louis Partnership also serves as the manager of the Downtown St. Louis Community Improvement District which provides enhanced services that make downtown clean, safe and inviting.
The Partnership is responsible for coordination or support of the following downtown initiatives, programs & services:
Development & Investment
Business Recruitment & Retention
Housing Development & Marketing
Retail Development
Market Research
Security
Maintenance & Beautification
Marketing and Special Events
Are you moving to St. Louis?? Please make your comments here...
Have you ever seen that guy that drives around from the bars to the lofts. Listen to Brian McGowan talk about all the fun bars, developments. And if you are lucky he may pick you up along the way and give you a refreshment and a lite snack.
Downtown St. Louis is hot right now. New developments, lofts, shopping, nightlife, and restaraunts for everyone. For the latest news and updates about downtown St. Louis living be sure to get it all here.
The preparer disclaims all express or implied warranties for the contents of this report. Although all facts, figures and projections have been obtained from sources deemed reliable and are believed to be correct, their author assumes no guarantee or liability. This form assists in the analysis of a real estate decision and is not intended to comprehensively analyze the financial or tax ramifications for an individual homeowner. Should you feel you need legal or tax advice, it is suggested that you consult a qualified professional. This form assumes the tax preparer will itemize deductions.
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