THE LAFAYETTE REPORT: October 2008

The City of St. Louis may just be one of the nation's best kept secrets.  Whether you are a young professional, raising a family, an empty nester or retired, the City of St. Louis offers a low cost of living, affordable housing and an active lifestyle. 

Here are some of the awards and honors bestowed on St. Louis by national civic organizations, business advisory groups and national financial magazines:

• National Civic League - All America City Award (2008)
• Council for Community and Economic Research - Lowest Cost of Living (2008) - Ranked #2
• Forbes - Best City to Buy a Home (2008) - Ranked #3
• Best Life - Top 100 Places to Raise a Family (2008) - Ranked #92
• HomeVestors - Best Cities for Real Estate Investing (2008) - Ranked #8
• Forbes - Best Cities for Singles - Culture Ranking (2007) - Ranked #9
• Forbes - Most Affordable Places to Live (2007) - Ranked #4
• Expansion Management - Four Star Quality of Life Metros (2007)
• Forbes - Best Cities for Young Professionals - Ranked #15
• Worldwide ERC - Best Cities for Relocating Families (2007) - Ranked #9
• Forbes - Most Affordable U.S. Real Estate Market (2007) - Ranked #7
• NAHB - Most Affordable Housing Market (2006) - Ranked #2
• Expansion Management - Overall Quality of Life Metro (2006) - Ranked #3
• Kiplinger's Personal Finance - 50 Smart Places to Live (2006) - Ranked #18

If you haven't considered St. Louis as a place to live, if you are relocating to St. Louis, or if you are just plain curious, take 7 minutes to watch this video:  RCGA Video - In All of America.

Recently, there has been an influx of employees relocating to St. Louis resulting from the Wachovia Securities' purchase of A.G. Edwards, Enterprise Leasing's purchase of Alamo and National, regular brewery training rotations at Anheuser-Busch's St. Louis Brewery, or computer and systems training at Nestle.  Whether you are looking to buy a new home or rent a loft or condominium or just need temporary corporate housing, we look forward to the opportunity to work with you. 

For more information on Lafayette Square and other historic neighborhoods of the City of St. Louis, Missouri, please contact Ryan Shaughnessy / Preservation Real Estate Advisors by telephone at 314-971-4381 or by e-mail at ryan@gilded-age.com. 

When it comes to purchasing a new home, there is no such thing as a free lunch.  As a buyer's agent, we can assist you and provide you with guidance regarding the home search and sales process.  However, we strongly suggest that you take control of the process, set firm requirements and fully participate in the home search and sales process.  Before you start your home search, you need to prepare for homeownership. 

Here are some simple tips:

(1)  Review Your Credit Report and Score:  Obtain a copy of your credit report from one of the major credit reporting agencies - www.equifax.com, www.transunion.com, or www.experian.com.  Review the credit report to verify its accuracy.  Close unused lines of credit or old credit accounts.  If there are errors, write to the credit company challenging the accuracy of the credit report.  If you have a credit score below 680, take steps to improve your credit score by making payments on time.

(2)  Decide How Much Home You Can Afford:  Prepare a budget and review your income and expenses.  After you have reviewed your budget, determine what monthly payment you can reasonably afford.  Do not delegate this important decision to your lender.  Use a loan calculator such as the BankRate home affordability calculator found at:  www.bankrate.com/brm/calc/newhouse/calculator.asp. As a rule of thumb, you can generally afford between two and three times your gross income.

(3)  Start Saving:  Start saving for both the downpayment and closing costs.  The era of easy money is over.  Although loans are available for qualified applicants, most loan products require some downpayment ranging from 3% to 20% based on a series of factors including the purchase price, your income and expenses, and your credit score.  In addition, closing costs range betwee 2% and 7% of the purchase price.

(4)  Assess Your Housing Needs:  Start by making a detailed list of your housing needs, wants and desires.  Establish a clear set of criteria for evaluating and selecting your new home.

(5)  Select Where You Want to Live:  Research where you want to live.  Start looking at housing prices.  Focus on finding the right neighborhood for your needs.  Consider such items, where applicable, as schools, parks, recreational facilities, public transportation, etc.

(6)  Determine Your Mortage Requirements:  Obtain recommendations to select a qualified lender.  Determine what type of loan products are suitable for your personal circumstances. 

(7)  Obtain Pre-Approval:  Organize your financial records such as W-2 forms, tax returns, most recent pay stubs, 2-months of bank statements, etc.  Make a formal application with your selected lender.  Obtain a pre-approval letter.

(8)  Consider Alternate Sources for Downpayment:  Make inquiries to see if you qualify for any special mortgage or downpayment assistance program offered by federal, state or local government agencies.  Determine whether your employer has a housing assistance program.  If you are a first-time homebuyer, consider adjusting your federal income tax withholding to increase your net pay under the Federal First-Time Homebuyer Tax Credit Program. 

(9)  Calculate the Costs of Homeownership:  Start by estimating your principal and interest payment using a standard loan amortization calculator such as found at www.bankrate.com/brm/mortgage-calculator.asp.  Then factor in the estimated costs of real estate property taxes, insurance, maintenance, utilities, and subdivision or association fees.  Compare the total costs to your original budget to determine whether you can regularly and consistently make these payments.

(10)  Start Your Home Search:  Contact a qualified and experienced real estate professional to assist you with your search.

By taking these steps, you will be prepared to purchase a new home.  For some people, this planning will take days or weeks.  For others, it may take several months.  However, if you prepare to purchase a home, you eliminate uncertaintly, identify problems and make the sales process more efficient and surprise-free.

If you are a first-time homebuyer, we would like the opportunity to meet with you and to assist you with your home search.  For a free initial consultation, please contact Ryan Shaughnessy/Preservation Real Estate Advisors by telephone at 314-971-4381 or by e-mail to ryan@gilded-age.com.

Note:  The opinions and statements contained herein represent my personal opinions and observations.  These blog entries are not reviewed, endorsed or approved for publication by Gilded Age, L.L.C., Gilded Age Sales, L.L.C. or Preservation Real Estate Advisors, L.L.C.

As real estate professionals, we often show vacant homes or work with new customers that we do not personally know.  As a result, there are inherent risks associated with our jobs.  Every year, there are news stories regarding assaults and other crimes against real estate agents.  To read a few of these stories, visit:  http://realguard.com/news.htm.  In September, 2008, NAR sponsored its annual Realtor Safety Week.  Over a month has passed since this event and I ask the following question: 

Have you reviewed your personal safety procedures to ensure that you don't become a crime victim?

Safety Tip #1 - Know Who You Are Dealing With When You Have New Clients or Customers:  Every real estate brokerage will have a different safety policy or procedure.  Here are some common practices:  (1)  Meet new customers at your office.  (2)  Use a customer identification form or photocopy their driver's license.  Record the customer's license number and auto description.  (3)  Verify the customer's identity.  Sometimes, it is simply confirming that their name matches their telephone number or home address.  If you are suspicious of a person, check their name against the sex offenders database.  Here are some links to such databases:  City of St. Louis,  St. Louis County, State of Missouri, St. Clair County (IL), State of Illinois, and other private databases such as AncestorHunt.com.

Safety Tip #2 - Tell Someone:  Before showing a property or conducting a tour tell someone - who, what, where and when.  That is, contact the office to tell someone who you are meeting with, where you are going, when you are meeting, etc.  Call in before the tour.  Call out when you complete the tour or a portion of the tour.  Knowing where you are and when and where you will be next is important so that we can track the events and notify the police in the event of an emergency.  By calling in, this helps us help you.  Provide your office manager with an itnerary form so your office can track your whereabouts if an emergency arises.

Safety Tip #3 - Keep Your Keys and Cell Phone within Reach:  Your keys and cell phone can be used as deterrents to avoiding a crime and for summoning police.  First, program your emergency numbers into speed dial. These numbers should include 911, emergency road serv­ice, your office, your Sales Associate buddy and your family numbers.  Second, keep your cell phone fully charged.  Third, carry your cell phone with you at all times. Get a hol­ster and make it a part of your apparel, or keep it in your hand at all times. Your greatest source of help is your cell phone. If you keep your cell phone in a purse or briefcase, it may not be available when you need it most.  Fourth, call the office on a regular basis to let know where you are.  Use your car key fob to activate your car alarm, flash lights, etc.

Safety Tip #4- Conduct a Safe Open House: Here a few suggestions for a safe open house:  (1) Don't advertise a listing as vacant.  (2)  Establish escape routes.  (3)  Call the office or a buddy hourly or at other regular intervals.  (4)  Keep your keys and cell phone with you.  (5)  Park where you can get out quickly.  (6)  Make sure all deadbolt locks are unlocked to facilitate a faster escape. Double check the backyard to make sure you can get past the fence if necessary.  (7)  When leaving the property, secure the house and check all win­dows and doors.  (8)  Avoid attics, basements and getting trapped in small rooms. Always let prospective clients lead the way into rooms, while you stay close to the door.  (9) Remind sellers to put valuables in a safe, secure place. (10)  Do not leave your briefcase, purse or laptop sitting on a counter. Remember, that nice looking couple could actual­ly have other motives besides seeing the property. Thieves often work in teams; while one is keeping you occupied, the other is stealing whatever they can.  (11)  Be aware of suspicious behavior and your surround­ings.  Report suspicious behavior to your office or to the police.  (12)  Place one of your business cards, with the date and time on the back, and place it in a kitchen drawer in the display.

Safety Tip #5 - When in Doubt, Use the Distress Code:  Set up a pre-arranged distress code with your office or buddy.  The distress code is important because it allows you to communicate you need for assistance to your office or buddy without alerting your customer.  You may find yourself in a situation where you think you might need help and you can use the phone, but the person you are with can overhear the conversation and you do not want to alert him or her. When in doubt, use the distress code.

Safety Tip #6 - Don't Make Personal Marketing Too Personal:  Giving out too much of the wrong information can make you a target. Concentrate on your professional profi­ciency rather than personal information in newspapers, resumes, on business cards and websites.  Be careful how much personal information you give verbally as well. "Getting to know your client" does not need to include personal information about your children, where you live and who you live with.  Be guarded with your personal information.  Avoid using glamour shots in your personal marketing - your personal safety is too important.  Criminals have been known to circle photographs of their would-be victims in newspaper advertisements and home magazines. These victims were targeted because of their appearance in the photograph.

Safety Tip #7- Use the Buddy System:  Every agent should have a buddy or use a virtual buddy system.  Call your "buddy" when you start and end a showing.  If you feel uneasy about a showing request, bring the your buddy along.  There is safety in numbers.

Safety Tip #8 - Dress for Success and Safety:  Your image is important so dress professionally. However, dress for safety as well.  Expensive jewelry can make you a target. We recom­mend that you save the flashy jewelry for formal occasions. Criminals will scout real estate representatives and homes for jewelry, laptop computers and items that are easy to sell, so don't flash the cash or wear diamonds when you are in the office or on the road. Don't wear shoes that will hamper your ability to move quickly if necessary.

Safety Tip #9 - Danger is Not Always Easy to Identify:  Trust you instincts.  Gut feelings... hesitation... unexplained fear... apprehension.  These are signals that something isn't right.  Listen to your intuition.  Safety experts agree that it is best to assume that your instincts are right and to take the necessary precautions. Do not be so anxious for a sale that you ignore your own intuition in the heat of the moment. Use these same instincts before you give out your phone number or address, and especially before getting in the car with a new client (not a recommended practice).

Safety Tip #10 - Practice Car Safety:  Always have your keys with you.    Keep car doors locked at all times.  Park in a well-lit area.  Don't get blocked in.  Beware of dead-end streets. Use separate cars.  When you are alone, the first thing you should do when you get into your car is lock the doors. Be observant when approaching your car, looking underneath and in the back seat before you get in.  You spend a lot of time in your car. This, in itself, exposes you to a greater likelihood of running out of gas, a mechanical failure or an accident. Make sure you have a fully charged cell phone, tools, blankets, flares, first aid kit and warm clothes in the trunk of your car.  Secure valuables out of sight. 

Safety Tip #11 - Be a Follower, Not a Leader:  When you show a house or unit by yourself, avoid entering the room first.  It is too easy to be cornered or trapped in a room, basement or attic. Have your client go ahead of you. You can flee more easily if you get a bad feeling about the situation.  When you show a house or unit, be aware of possible escape routes and leave all doors open and unlocked.

Safety Tip #12 - Have a Defensive Plan - Fight or Flight?  It's not pleasant to think about, but even the most safe­ty-conscious real estate professionals might find themselves in a dangerous situation. If this happens, remember that the primary goal in any incident is to escape from the dan­ger and call for help. Try to find a discreet way of remov­ing yourself from the situation, such as saying you need to step outside to make a phone call and then not going back inside.  If an attack does occur, stay as calm as possible. Think rationally and evaluate your options. There is no one right way to respond to a confrontation because each situation is different. The response depends on the circumstances: location of the attack, your personal resources, the characteristics of the assailant and the pres­ence of weapons. There are many strategies that are effec­tive, but you must rely on your own judgment to choose the best one.

Safety Tip #13 - Use Personal Safety Equipment:  In addition to your cell phone and keys, consider the use of other personal safety equipment such as whistles, personal alarms, pepper sprays, and call back or check in services.

In conclusion, personal safety is no accident.  Review your personal safety procedures.  Watch the NAR safety video: 2008 Safety Video.  It is a dangerous world out there - be smart and stay safe. 

Note:  The opinions and statements contained herein represent my personal opinions and observations.  These blog entries are not reviewed, endorsed or approved for publication by Gilded Age, L.L.C., Gilded Age Sales, L.L.C. or Preservation Real Estate Advisors, L.L.C.

Recently, a prospect relocating to Saint Louis, Missouri, asked a simple and direct question - What does Lafayette Square have to offer me?  Well, I could and did explain to the prospect the economics of this market.  That is, it is a strong and stable market with increased sales and consistent price appreciation in good and bad times.  In addition, I explained interest rates are at historic lows, supply is tightening and pricing remains favorable to purchasers. However, these are only some of the reasons to purchase a home in Lafayette Square.  When you focus only on price considerations, you sometimes miss the "human" dynamic.  Lafayette Square offers a great lifestyle - a walkable neighborhood with a vibrant business community (often your neighbors).  So, instead of "telling" the prospect of the benefits of this wonderful neighborhood, I decided to show the prospect the neighborhood.  As they say a picture is worth a thousand words.

LAFAYETTE HISTORIC DISTRICT

Lafayette Square was established as a National Historic District in 1979.  The Lafayette Square neighborhood is one of the oldest neighborhoods in St. Louis.  There are over 375 Victorian homes in the neighborhood that have been renovated and preserved.  Although the neighborhood is closely associated with its "Painted Ladies", the neighborhood also showcases a variety of architectural styles - including French Second Empire, Romanesque, Italianate, Queen Anne and Federal designs.  When you walk along the tree-lined streets of the neighborhood, it is hard to miss the rich architectural details of the homes.  In addition to the historic homes, new homes - both conversion and in-fill projects - have been designed and constructed to pay homage to this rich architectural heritage while offering all of the amenities associated with contemporary living.

LAFAYETTE PARK

The crown jewel of the Lafayette Square neighborhood is Lafayette Park.  This 30-acre Victorian park, a part of the original St. Louis Commons land grant, was set aside for future park uses in 1836 and was dedicated as a public park in 1851.  The park has always been an integral part of the neighborhood.  It offers walking paths, picnic areas, ball fields, two pools or ponds, playground equipment, and other amenities commonly found in a public park.  But Lafayette Park is more than a great recreation facility - it is a meeting place for the residents of Lafayette Square and is home to such events as the summer concert series, summer movies in the park, Perfectos old-style baseball, the Taste of Lafayette, and is the starting point for the Tour de Lafayette bike race and the house and parlor tours.  It is where neighbors go to meet their neighbors.  Lafayette Park has always benefited from a strong public-private partnership and this continues today with the hard work of the Lafayette Square Restoration Committee and the Lafayette Park Conservancy.

PARK AVENUE PLAZA - FOUNTAIN SQUARE 

In 2001, neighborhood leaders spearheaded a drive to establish a tax increment finance district to fund public improvements in the Lafayette Square neighborhood including brick sidewalks, bike lanes, period streetlights, public parking lots and other improvements.  However, the first, largest and most significant public improvement was the Park Avenue Plaza.  In the heart of the vibrant neighborhood business district, there once stood an auto salvage yard.  With the vision of community leaders and use of TIF financing, the site was acquired and a new plaza with landscaping, fountain, and sitting areas was  created.  It serves as a beautiful back drop to the adjoining restaurants and businesses, a meeting place for residents, and has been known to be used for impromptu games of bocce.

NEIGHBORHOOD BUSINESS DISTRICT

When you live in Lafayette Square, you discover the secret pleasure of walking to dinner.  In Lafayette Square, you won't find national franchises - but you will find a vibrant local business community.  

From the coffee shop to restaurants to the art glass store to the pet boutique to salons and spas to antique stores to development companies, real estate brokerages, and law firms, you will find that the owners and employees of these small businesses often share a common characteristic - they also live in the neighborhood.  So buying local isn't just a slogan, here it is a way of life.

Although the focus of the post is to discuss why you should purchase in Lafayette Square, it does focus too much on the neighborhood amenities.  In reality, the park, fountain, businesses, etc. can be found in a number of neighborhoods.  But, Lafayette Square isn't just about buildings or neighborhood amenities, it is about the community.  In Lafayette Square, you will find active and involved neighbors.  The real secret is that, in addition to a wonderful home, you also get great neighbors. 

Discover Lafayette Living today! 

When you are ready to look for a new home in Lafayette Square, contact Ryan Shaughnessy/Preservation Real Estate Advisors by telephone at 314-971-4381 or by e-mail at ryan@gilded-age.com.  We look forward to the opportunity to assist you in you new home purchase.

Note:  The opinions and statements contained herein represent my personal opinions and observations.  These blog entries are not reviewed, endorsed or approved for publication by Gilded Age, L.L.C., Gilded Age Sales, L.L.C. or Preservation Real Estate Advisors, L.L.C.

We are a small, local and independently owned real estate brokerage working primarily in the Lafayette Square, Georgian Square, and other historic neighborhoods.  We have 7 licensed agents.  We may be small but we deliver big results.  Here are our year to date totals in the neighborhoods that we serve:

Source:  MLS/Assessor COV

Lafayette Square:  Bounded on North by Chouteau, West by Jefferson, South by Hwy. 44 and East by Trumaan Parkway. 

Georgian Square:  Bounded on North by Chouteau, West by Truman Parkway, South by Hwy 44/55/70, and East by Tucker.

If you are looking for a home in Lafayette Square or the other historic areas of the City of St. Louis, Missouri, or are relocating to the Saint Louis metropolitan area, we look forward to the opportunity to work with you. 

For a free Urban Living Relocation Package, please contact Ryan Shaughnessy / Preservation Real Estate Advisors by send an e-mail to ryan@gilded-age.com or by telephone to 314-971-4381.

Note:  The opinions and statements contained herein represent my personal opinions and observations.  These blog entries are not reviewed, endorsed or approved for publication by Gilded Age, L.L.C., Gilded Age Sales, L.L.C. or Preservation Real Estate Advisors, L.L.C.