Five-Year Vacancy Trends in St. Louis & St. Charles Single-Family Rentals

Five-Year Vacancy Trends in St. Louis & St. Charles Single-Family Rentals

Over the past five years, the rental market for single-family homes in the St. Louis and St. Charles County metro areas has experienced notable shifts in vacancy rates. These changes – from pre-2020 lows, through the pandemic upheaval, to recent corrections – have impacted rent prices, time on market, tenant quality, and prompted landlords to adjust their strategies.

This post dives into specific vacancy rate trends in both counties, visualizes how those rates have changed, and breaks down how it affects local landlords and real estate investors. We'll also highlight municipalities like O'Fallon, Florissant, Wentzville, and St. Peters and provide key resources to help you navigate the local rental market successfully.

Vacancy Rate Trends in St. Louis & St. Charles (2019–2024)

In St. Louis County, vacancy dropped from nearly 10% in 2013 to about 4.5% by 2019. St. Charles County followed a similar trend, dropping below 6% in 2019. The pandemic in 2020 pushed occupancy even higher as families sought space and stability.

In 2020, the St. Louis metro rental vacancy rate dropped to 5.3%, the lowest in years. St. Louis County likely saw rates closer to 3–4%. St. Charles had a small bump in 2021 (8.2%) as new construction entered the market but returned to around 5–6% by 2023.

As of 2023, the metro-wide vacancy rate climbed back to 7.73%, the highest since 2019 but still reasonable compared to historical norms.

Figure: Vacancy Rate Trend (Source: FRED St. Louis Fed)

Municipality Highlights

• Florissant – Affordable suburb with consistent renter demand.
• O’Fallon – Booming St. Charles suburb with new SFR development.
• St. Peters – High demand from families and professionals.
• Wentzville – Fastest-growing city in Missouri, strong rental absorption.

Impact on Rent Prices and Time on Market

As vacancies dropped, rents climbed. By 2019, St. Charles median rent exceeded $1,050. Across the metro in 2024, it’s around $1,225.

Homes are leasing quickly — average 22 days on market. In tight markets, tenant quality increases, and landlords can screen more strictly. As vacancy rises, landlords may need to be a bit more flexible.

Tenant Quality and Turnover

Low vacancy improves tenant quality due to increased competition. Landlords can be more selective and experience higher renewal rates. In higher-vacancy markets, more flexibility may be needed in screening, but retention remains key to minimizing costs.

Landlord Strategies

• Track trends with Missouri REALTORS® and STLREIA
• Price rentals competitively to reduce downtime
• Improve curb appeal and property condition
• Retain great tenants with lease renewal incentives
• Plan ahead for occupancy inspections (e.g., St. Louis Housing Guide)

Helpful Resources

• St. Louis Real Estate Investors Association
• Missouri REALTORS®
• Missouri Landlord-Tenant Law (PDF)
• St. Louis County Housing Services
• St. Charles County Government
• Cities: Florissant, O’Fallon, Wentzville, St. Peters

Conclusion

Vacancy rates have cycled through historic lows and are now stabilizing. Smart landlords are watching trends, adapting screening and pricing, and focusing on tenant retention. Whether you own in Florissant or Wentzville, staying proactive and plugged into local data is the key to long-term success in the St. Louis metro rental market.

Five-Year Vacancy Trends in St. Louis & St. Charles Single-Family Rentals

Over the past five years, the rental market for single-family homes in the St. Louis and St. Charles County metro areas has experienced notable shifts in vacancy rates. These changes – from pre-2020 lows, through the pandemic upheaval, to recent corrections – have impacted rent prices, time on market, tenant quality, and prompted landlords to adjust their strategies. In this post, we’ll dive into specific vacancy rate trends in both counties, visualize how those rates have changed, and discuss what it all means for local landlords and real estate investors. We’ll also highlight key municipal hotspots (like O’Fallon, Florissant, Wentzville, and St. Peters) and provide resources (investor associations, REALTOR® data, city housing links) to help landlords navigate the current landscape.

Vacancy Rate Trends in St. Louis & St. Charles (2019–2024)

Vacancy rates – the percentage of rental homes that are vacant and available – hit historic lows in the late 2010s, then swung sharply during 2020-2021, and have since risen to more typical levels. In St. Louis County, the rental vacancy rate peaked around 9.9% in 2013 and then steadily declined to only ~4.5% by 2019 , indicating a tight market. St. Charles County saw a similar drop: after spiking near 9.9% in 2016, vacancy fell to about 5.99% in 2019 . These late-2010s rates were quite low historically, reflecting that single-family rentals were in high demand and few were sitting empty.

Then came 2020. During the early pandemic, many local landlords observed an unprecedented surge in occupancy – people were staying put or seeking single-family homes (for more space) in the suburbs. The overall St. Louis metro rental vacancy rate plunged to around 5.3% in 2020, the lowest level in years (down from about 8.8% in 2019) . In practical terms, this meant most decent rental houses were getting snapped up quickly, and very few were languishing without tenants. St. Louis County in particular may have seen vacancy drop into the 3–4% range by 2020-21, an extremely tight condition . By contrast, fast-growing St. Charles County experienced a brief spike around 2021 (ACS data showed roughly 8.2% rental vacancy in St. Charles in 2021 ), likely due to new housing construction coming online and some pandemic-related shuffles. Even so, that inventory was soon absorbed as demand remained strong.

Starting in 2022 and into 2023, vacancy rates began creeping back up toward more balanced levels. The latest Census Bureau data shows the St. Louis metro’s average rental vacancy rate hit 7.73% in 2023, an increase of over a full percentage point from the prior year . This 2023 rate was the highest in four years, though still moderate by historical standards (for context, a decade ago vacancies were often above 9–10%). St. Louis County’s vacancy inched back toward the mid-single-digits, and St. Charles County’s vacancy settled roughly in the 5–6% range by 2023 (down from that 2021 bump). In short, after the rollercoaster of 2020 (plunging vacancies) and 2021 (rebounding vacancies), the market in both counties is now closer to equilibrium – not as ultra-tight as 2020, but still tighter than the early 2010s era.

To visualize these swings, consider the St. Louis metro’s vacancy trend over the past several years. The chart below (based on U.S. Census data) illustrates how vacancies declined into 2018–2019, bottomed out in 2020, and then rose through 2023:

Graph of St. Loiuso MSA Rental Vacancy Rate for 2015-2023

Figure: St. Louis MSA Rental Vacancy Rate, 2015–2023. After a low of ~5.3% in 2020, vacancy climbed to 7.7% by 2023 .

These vacancy dynamics underline just how unusual the COVID-19 period was. High occupancy (low vacancy) in 2020 was driven by factors like eviction moratoriums (keeping tenants in place) and a shift toward single-family living. By 2022–2023, as life normalized, more rentals opened up again – some new construction, some turnover that had been delayed – causing vacancy rates to rise.

It’s worth noting that single-family rentals have become a major part of the local rental supply. In fact, in the St. Louis suburban submarkets, a large share of renters now live in houses rather than apartments. For example, in the western St. Louis area, 38% of renter households were in single-family homes as of 2016, up from 25% in 2000 . This trend has only continued, meaning the vacancy rates discussed here are heavily influenced by what’s happening in the house rental market (not just big apartment complexes).

Local Spotlights: In St. Charles County, rapidly growing communities such as O’Fallon , St. Peters , and Wentzvillehave seen an influx of newly built homes (some specifically intended as rentals). This growth initially added some vacancy as new units awaited tenants, but strong population gains quickly filled many of these homes. (St. Charles County has been a regional leader in new home construction – over 40% of new home demand in the metro was projected to be in St. Charles a few years ago .) Meanwhile, in St. Louis County, established municipalities like Florissant (an affordable North County suburb) continue to enjoy steady renter demand for single-family houses. These communities have relatively affordable home prices and rents, which helps keep occupancy high as many families opt to rent there rather than in costlier areas. Overall, both counties’ most popular cities benefit from local amenities and schools that attract long-term renters, keeping vacancies relatively low.

Impact on Rent Prices and Time on Market

Shifts in vacancy rates have a direct impact on rent prices in the St. Louis/St. Charles region. When vacancies plunged in 2019–2020, landlords gained pricing power – fewer empty homes meant less competition and more applicants per property. Even before the pandemic, tight supply was nudging rents upward. For instance, in St. Charles County the median gross rent hit $1,057 by 2019 – the highest on record at that time . Similarly, St. Louis County saw rent growth through the late 2010s (median rents there peaked just above $980 in 2017 in real terms) .

During 2020–2021’s very low vacancy period, many landlords were able to raise rents more aggressively, and new lease offers often came in at premium rates. Renters were competing for a limited number of single-family homes, which drove annual rent increases above normal levels. By 2022 and 2023, as vacancy rates rose a bit, rent growth began to moderate. Recent market data show that while rents are still increasing, the pace has slowed. The median rent across the St. Louis metro is around $1,225 as of early 2024, but rent growth has started to decelerate in line with broader economic conditions . In other words, landlords aren’t able to hike rents quite as steeply as they could when vacancies were at rock bottom. (Many tenants are more price-sensitive now, and with a few more options on the market, exorbitant rent increases may lead renters to look elsewhere.) Still, overall rent levels today are higher than five years ago – a reflection of the strong demand and limited supply that persisted through most of this period.

Vacancy swings have also affected how long rental homes sit on the market. In times of low vacancy (high demand), houses rent out fast. Landlords often report that a well-priced, well-presented single-family home in the region can find a tenant within a few weeks. Currently, properties in the St. Louis area rent remarkably quickly – averaging around 22 days on the market before going under contract . That’s only about three weeks from listing to signing a lease. Such short market times indicate a persistent tenant demand, even as vacancy rates have ticked up slightly. By contrast, if vacancy were to rise further into the high single-digits or above, we’d expect the average time on market to lengthen. In a softer market, a rental home might take a month or two (or more) to find a tenant, and landlords might have to relist or adjust pricing to avoid prolonged vacancy.

So far, St. Louis and St. Charles single-family rentals are leasing briskly. Quick turnaround times have a few implications for landlords: (1) you must be ready to show the property and process applications immediately when a tenant gives notice, because qualified renters are acting fast; and (2) you can be reasonably confident that if your home is in good condition and priced close to market, it won’t remain vacant for long. The current ~7.5% regional vacancy rate is still low enough that demand outstrips supply in many neighborhoods .

Tenant Quality and Turnover Considerations

One often overlooked effect of vacancy rate changes is on tenant quality and turnover. When vacancy rates are extremely low (landlord’s market), landlords receive more rental applications for each available home. This larger tenant pool allows for high selectivity – landlords can screen for excellent credit, stable employment, and clean rental history, and still fill the unit easily. Many local landlords took advantage of the 2020-2021 tight market to raise their screening standards, knowing another eager renter was waiting if the first prospect didn’t qualify. The result was often higher-quality tenants: renters who are financially stable and likely to take care of the home. This can lead to lower default risk and less property damage, ultimately saving the landlord money.

Additionally, in a low-vacancy environment, tenants are more motivated to renew leases, since finding another rental (especially a single-family home in the same area) might be difficult or costly. Landlords in St. Louis/St. Charles with good tenants have been smart to prioritize renewals and avoid turnover. Renewing a lease with a modest rent increase (rather than risking a vacancy) is a common strategy when you know you have a solid tenant in place. This keeps turnover costs down (no need to advertise, clean, and repair between tenants) and maintains steady income.

On the other hand, as vacancy rates rise, the dynamic can shift. If the market softens and renters have more choices, landlords might see fewer applicants per listing and may have to relax their criteria slightly to get units occupied. For example, a marginal applicant who might have been passed over a year ago could be given more consideration if they’re the only one in line. Landlords should be cautious here – a higher vacancy rate doesn’t necessarily mean you should rent to an unqualified tenant (that can lead to eviction or damage costs later), but it might mean being a bit more flexible on requirements (perhaps accepting a lower credit score with a larger deposit, for instance). The key is to balance filling the vacancy in a reasonable time with maintaining reliable tenants. Fortunately, the current vacancy levels are still low enough that most landlords can find quality tenants without much delay.

In short, tenant quality tends to track vacancy: tighter markets yield highly qualified renters (since landlords can choose the best of many), whereas looser markets might force some compromise on tenant selection. Being aware of where we are on that spectrum (today we’re in a relatively balanced market) can help you adjust your screening strategyaccordingly. No matter the market, proactive landlords focus on tenant retention – keeping good renters happy so they renew – as the first line of defense against high vacancy. Simple efforts like responding promptly to maintenance requests, performing preventative upkeep, and considering reasonable lease renewal incentives (e.g. minor upgrades or not raising rent one year) can pay off in longer tenancies and fewer vacant periods.

Landlord Strategies for an Evolving Market

Given these vacancy trends and their effects, what strategies should landlords and investors employ in the St. Louis and St. Charles single-family rental market? Below are several practical approaches:

• Stay Informed on Local Market Data: Knowledge is power. Track vacancy and rent trends via trusted sources – for example, the St. Louis REALTORS® Association releases housing reports, and the Missouri REALTORS®provide statewide market stats and resources . Knowing that, say, “rents are up 3% year-on-year in St. Charles” or “vacancy is rising in North County this quarter” can guide your decisions on setting rent or when to invest in a new property. (See Resources at the end of this post for links.)

• Set Competitive Rent Prices: In a high-vacancy situation, overpriced rentals will sit vacant. Even in today’s balanced market, savvy tenants have access to online listings and will skip over a house that doesn’t match the area’s price range. Compare similar listings in your neighborhood and be realistic. If the vacancy rate creeps up in your area, consider pricing just below the market median to attract a bigger pool of applicants and rent the home faster. Conversely, when vacancy is ultra-low, you might aim slightly above market – but be cautious, as an empty month can quickly wipe out the gain from a higher rent. The rule of thumb is to minimize downtime. A modest rent concession is often worth it to get someone in the home sooner.

• Enhance Marketing and Curb Appeal: As vacancy rates inch up, you’ll want your rental to stand out. Professional photos, online listings on multiple platforms, and prompt responses to inquiries are essential. Also, curb appeal and maintenance matter more when renters have options – a well-kept property will attract quality tenants more quickly. Small investments (fresh paint, landscaping, fixing that broken gutter) can pay off with shorter vacancies. In tight markets you might rent “as-is” in a rush, but in competitive times, addressing deferred maintenance before listing is wise.

• Streamline the Turnover Process: Every day a property sits vacant is lost income. Have a plan for quick turnovers: line up contractors or cleaners in advance if you know a tenant is leaving, and start advertising before the unit is vacant if possible (with the current tenant’s permission). In many St. Louis area municipalities, you’ll also need to schedule an occupancy inspection whenever a tenant moves out. Build that into your timeline – for instance, Florissant and most North County cities require a passed inspection and occupancy permit for the new tenant , which can take several days. The City of St. Louis has a similar Housing Conservation Inspection requirement for rental units . Being on top of these local rules (and getting the paperwork done quickly through the city’s public works or building department) will reduce the idle time between tenants.

• Focus on Tenant Retention: As mentioned, keeping good renters is far easier than finding new ones. Especially now, with vacancy rates around 7%, there’s a bit more incentive for tenants to shop around at lease end. Proactively reach out 2–3 months before lease expiration. If you have a reliable tenant, consider offering a lease renewal with a reasonable rent increase (or even no increase if that fits your financials) to lock them in for another year. Perhaps offer a minor upgrade (e.g. new carpet, or a professional deep clean) as a thank-you for renewing. Such gestures can increase loyalty. High turnover is costly – not only do you risk an empty house, but you also incur repainting, cleaning, and advertising costs. Many successful single-family landlords in St. Louis aim for longer-term tenancies to maximize cash flow.

• Adjust Tenant Screening (Carefully): When the market was hyper-competitive, many landlords had the luxury of extremely strict screening (income 3x rent, 700+ credit score, etc.). If you’re now in a sub-market or time where you’re not getting applications as quickly (say your property has been listed for a month with few inquiries), you might revisit your criteria. This doesn’t mean renting to blatantly unqualified tenants – rather, consider factors like: maybe accept a pet with a pet fee (many families have pets, and you widen your audience by being pet-friendly), or consider a slightly lower credit score if job/income is solid (perhaps offset by a higher security deposit). The goal is to widen your pool just enough to get a good tenant in, without exposing yourself to undue risk. It’s a balancing act – one that becomes important if vacancy rates rise. In contrast, when units are flying off the market in days, stick to your strict criteria; you’ll likely find a tenant who meets them.

• Be Prepared for Economic Changes: Both St. Louis City and County have relatively affordable rents compared to coasts, but local economic shifts (like major employers expanding or leaving) can affect housing demand. Stay attuned to news (business developments, interest rate changes, etc.) that might influence local rental demand. For example, if mortgage rates are high, more people may choose to rent longer, bolstering demand for your rental home. If a new company opens in O’Fallon or Chesterfield, you might see an uptick in renters relocating for jobs. These factors can indirectly influence vacancy rates and how much you can charge. Being proactive – maybe you decide to buy another rental property when you see demand rising, or conversely hold off if you sense the market is cooling – can put you ahead of the curve.

• Leverage Local Networks and Resources: Don’t go it alone. Tap into the community of landlords and investors in the area. The St. Louis Real Estate Investors Association (STLREIA) is a great example – they host monthly meetups, share market insights, and provide education for landlords and investors . Networking with peers can alert you to neighborhood-specific trends (e.g., “lots of rentals coming on the market in XYZ suburb”) and also hook you up with trusted contractors, attorneys, or property managers. Similarly, keep an eye on communications from Missouri REALTORS® and St. Louis REALTORS®; even though they cater to real estate agents, they often publish housing market updates and forecasts that savvy landlords can use. In a profession where local knowledge is key, these networks and data sources are invaluable.

Finally, always ensure you’re legally compliant with local ordinances. Different municipalities in St. Louis County have different rental rules – some require landlord licenses or regular inspections. For instance, St. Louis City provides an online Landlord’s Guide (Inforent) with guidance on permits, tenant screening, lead paint disclosures, and more . Staying on top of these requirements not only keeps you out of trouble but also helps maintain good tenant relations (tenants appreciate a landlord who takes care of safety and legalities). When vacancy rates fluctuate, the last thing you want is a preventable delay (like failing an occupancy inspection) causing additional lost rent.

Resources for Local Landlords

To further educate yourself and stay connected in the St. Louis/St. Charles rental market, here are some helpful resourcesand links:

• St. Louis Real Estate Investors Association (STLREIA) – A non-profit organization dedicated to educating and networking local real estate investors and landlords. They host meet-ups, have an active online community, and share tips specific to the St. Louis market. Joining STLREIA can put you in touch with experienced landlords who have navigated many market cycles . (Website: STLREIA.com)

• Missouri REALTORS® – The state REALTORS® association provides market statistics, legislative updates, and resources that can benefit landlords (even if you’re not an agent). They track housing trends statewide and often publish insights on inventory, vacancy, and property management best practices. Missouri REALTORS® also advocates for property owners’ rights at the state level . (Website: missourirealtor.org)

• Local City Housing Departments: Most cities in St. Louis County and St. Charles County have webpages for landlord requirements and housing resources. For example, the City of St. Louis Housing Division offers an online guide called Inforent: A Landlord’s Guide with information on occupancy permits, tenant screening, and eviction procedures . Similarly, St. Louis County’s Neighborhood Preservation department can assist with codes and permits, and many municipalities (like Florissant or O’Fallon) list their rental property ordinances on their official websites. Always check your property’s city website for a “Landlord Information” or “Rental Property Owners” section. (See official city websites: e.g., Florissant, MO , O’Fallon, MO , Wentzville, MO , St. Peters, MO .)

• St. Louis & St. Charles County Housing Authorities: If you’re interested in the Section 8 program or other rental assistance programs (which can be a strategy for reducing vacancy, as you tap into a pre-qualified pool of tenants), the housing authorities can be a resource. The Housing Authority of St. Louis County provides a Landlord Portal and liaison for those renting to voucher holders . Likewise, the St. Charles County housing assistance programscan be accessed via the county’s community development department. These agencies often host briefings for new landlords and ensure you understand the inspection and leasing process for assisted tenants.

• Landlord-Tenant Law Guide (Missouri Attorney General’s Office): Missouri has specific laws governing security deposits, evictions, habitability, etc. St. Louis County’s website hosts a PDF of Missouri’s Landlord-Tenant Law which is a must-read for all landlords . It covers your legal obligations and tenants’ rights in areas such as required notices, return of deposit timelines, and property maintenance. Staying compliant with these laws not only avoids legal trouble but also makes for better landlord-tenant relationships. (Resource: “[Missouri Landlord-Tenant Law ](https://ago.mo.gov/docs/default-source/publications/landlord-tenant-law.pdf)” – a handbook from the Missouri Attorney General.)

• St. Louis Real Estate News & Blogs: Keep an eye on local real estate news sites (like St. Louis Real Estate Newsby local analyst Dennis Norman). They frequently analyze Census data and market trends. For instance, reports on 2023 vacancy rates hitting a four-year high or updates on homeownership rates can give context to the rental market. These can be found via local real estate blogs or the business section of the St. Louis Post-Dispatch. They help you stay updated beyond just your own properties.

By leveraging these resources, you can stay educated and make proactive decisions about your rental investments. The St. Louis and St. Charles single-family rental market has proven resilient and profitable for landlords who adapt to its ebbs and flows. As vacancy rates trend and economic conditions change, being well-informed will position you to minimize vacancies, set the right rents, attract great tenants, and ultimately maximize your returns in the long run.

Conclusion: The past five years have been anything but static for landlords in St. Louis and St. Charles counties – we’ve seen vacancy rates fall to the floor, then bounce back up to a sustainable level. Through it all, single-family rentals remain in demand, and opportunities abound for attentive landlords. By understanding vacancy trends and their ripple effects on rent, marketing, and tenant management, you can stay ahead of the curve. Whether you own a bungalow in Florissant or a new two-story in O’Fallon, the fundamental strategy is the same: keep your properties desirable and well-priced, treat your tenants well, and plug into the local real estate community for support. With that approach, you’ll navigate the ups and downs of the market and come out on top, enjoying steady income from your long-term rentals in the vibrant St. Louis region.

Owning Rental Property in Chesterfield, MO: The Ultimate Guide for Landlords

🏡 Owning Rental Property in Chesterfield, MO: The Ultimate Guide for Landlords

Keywords: Chesterfield Property Management, Rental Property Chesterfield MO, Property Managers Chesterfield

If you’re considering buying or managing a rental property in Chesterfield, Missouri, you’re in the right place. Known for its great schools, strong economy, and suburban luxury, Chesterfield is one of the best places in the St. Louis area to own investment real estate.

This guide gives you deep insights into the rental market, current trends, landlord resources, and the top 10 Chesterfield property management companies, topped by Avenue Real Estate Group.

🔍 Why Chesterfield, MO is a Landlord’s Dream

Chesterfield is a highly desirable suburb 25 minutes west of downtown St. Louis. It’s clean, safe, loaded with amenities, and filled with high-earning tenants.

What Makes Chesterfield a Smart Market:

• Median Household Income: $125,000+

• Top-rated Schools: Rockwood School District & Parkway School District

• High Renters’ Demographic: Young professionals, traveling nurses, corporate relocations, and affluent retirees

• Strong Demand: Properties lease quickly, especially single-family homes and upscale townhomes

“Chesterfield’s rent prices are rising consistently — a great signal for long-term investors.”

— Zumper Rental Trends

📈 Chesterfield Rental Market Overview (2025)

According to Zillow, Chesterfield’s average rent is:

• $1,500 for a 1-bed

• $1,950 for a 2-bed

• $2,300+ for a 3-bed home

📊 Rental Price Distribution:

• $751–$1,500: 26%

• $1,501–$2,250: 56%

• $2,251–$3,000: 13%

• $3,001+: 5%

And vacancy rates remain low — around 3–4%, showing strong tenant demand.

🛠️ Why You Should Use a Property Manager in Chesterfield

If you want to:

• Avoid tenant headaches

• Keep maintenance on autopilot

• Maximize cash flow

• Stay compliant with Missouri landlord-tenant laws

…then partnering with a pro makes sense.

📘 Missouri Landlord-Tenant Law

A local expert handles marketing, screening, leasing, inspections, rent collection, and even evictions — so you don’t have to.

🏆 Top 10 Chesterfield Property Management CompanieS

Here’s your go-to list — all vetted, trusted, and active in the area.

1. Avenue Real Estate Group — BEST OVERALL

• Locally owned. Hyper-focused on Chesterfield and West County.

• Premium leasing, full-service management, and maintenance.

• Transparent pricing, owner portal, and 5-star Google rating.

🔗 Learn More

2. Deca Property Management

• 30+ years in STL

• Full-service including tenant placement & inspections

• Great for single-family homes

3.PMI STL Metro

• Part of the PMI franchise network

• Professional reports, legal compliance, HOA management

4. West End Management

• Solid for luxury homes

• Responsive team and strong tenant screening

5. Community Property Management

• Focuses on HOAs and condo communities

• Tech-forward with board portals and maintenance tracking

6. Garcia Properties

• Known for stylish urban properties but expanding west

• Boutique feel, high-touch service

7. KLMR Properties

• Chesterfield-based

• Great for first-time landlords and single-unit owners

8. Select Leasing & Management

• Experienced STL firm with strong leasing team

• Handles difficult evictions if needed

9. SOTO Property Solutions

• Also handles renovations and flips

• Great if you’re an investor with a value-add strategy

10. McKelvey Properties

• Commercial and residential expertise

• Long-standing reputation in West County

📚 Bonus Resources for Chesterfield Landlords

Here’s a bunch of helpful tools and pages to level up your rental game:

• 🏢 St. Louis County Property Lookup

• 📜 Missouri Lease Agreement Template

• 🧾 Missouri Eviction Process Guide

• 🧮 Rental Property ROI Calculator

• 🔍 Crime Map - Chesterfield

• 🏫 School Ratings via Niche

• 📦 Furnished Rental Demand via Furnished Finder

• 📅 Chesterfield City Rental Inspections Info

✅ Final Thoughts: Is Chesterfield Worth It?

If you’re in the market for long-term cash flow, strong property appreciation, and low vacancy risk, Chesterfield is one of the top-tier places to invest in the Midwest.

And if you want the best Chesterfield property management company in the game, go with Avenue Real Estate Group. Local, responsive, experienced — they’re who you want in your corner.

Want help analyzing a property or getting a free rent estimate in Chesterfield?

Shoot over the address and I’ll run comps for you.

Why Landlords in Webster Groves and Kirkwood Should Consider Hiring a Property Manager

Why Landlords Should Consider a Property Manager for Their Rental Properties in Webster Groves and Kirkwood

Webster Groves and Kirkwood are two of the most desirable suburbs in the St. Louis metro area for both residents and property investors. Known for their charming historic homes, exceptional school districts, vibrant small business communities, and active neighborhood associations, these cities attract a steady influx of renters year-round. For landlords, this means a golden opportunity to own income-producing property in high-demand areas. But as many discover, the day-to-day operations of leasing and maintaining rentals can be more than just a side hustle—it can be a full-time job. That’s where hiring a trusted property management company can provide immense value.

The Role of a Property Manager

Property managers offer a full suite of services tailored to the needs of landlords. They act as the middleman between landlords and tenants, handling everything from marketing and showings to lease execution, maintenance coordination, and eviction processes if necessary. Their knowledge of state and municipal laws, such as Webster Groves’ occupancy permit rules and Kirkwood’s housing code, protects property owners from legal missteps.

Beyond compliance, great property managers also serve as advisors. They help you set competitive rental rates using local market data, recommend improvements to maximize rental value, and optimize your property’s cash flow. Think of them as your local investment partner, always working to protect your asset and generate income while you focus on growth.

Why Tenants Love Webster Groves and Kirkwood

Both cities are filled with long-term appeal. Residents appreciate not just the aesthetics, but also the deep sense of community and access to a wide array of amenities. Here are some of the biggest draws for tenants:

• Historic Neighborhoods: With tree-lined streets, turn-of-the-century architecture, and well-maintained sidewalks, both cities have a classic charm that makes residents feel at home.
• Walkable Downtowns: Downtown Webster Groves and Downtown Kirkwood are hubs for shopping, dining, coffee, and community festivals.
• Food Scene: Tenants love spots like The Block, Katie’s Pizza & Pasta, Strange Donuts, and Clementine’s Creamery.
• Education: Kirkwood and Webster Groves school districts are nationally recognized and drive demand from families.
• Transit Access: Both areas are served by Metro Transit, making commutes to downtown St. Louis simple and affordable.
• Parks and Rec: Residents enjoy easy access to Kirkwood Park, Deer Creek Park, and miles of greenways and bike trails.
• Local Events: From the Greentree Festival to the Old Webster Nights, the calendar is packed with community gatherings year-round.

Why It’s a Smart Investment Market

In addition to tenant demand, landlords benefit from the financial stability and appreciation that these neighborhoods provide. Home values have appreciated significantly in the last decade and continue to show strength. Rental properties in Kirkwood and Webster Groves often maintain high occupancy, limited turnover, and solid rent increases annually.

Key reasons to invest here:

• Consistent Rent Increases: Average rent rises steadily, with 3-5% annual growth common in many zip codes.
• Low Vacancy Rates: Due to desirability, properties typically rent quickly—even in slower economic periods.
• Desirable Demographics: High-income households, families with school-age children, and young professionals with stable employment make up the bulk of renters.
• Community Investment: Both cities are active in infrastructure upgrades, park expansions, and business development, keeping neighborhood appeal high.

What If You Manage the Property Yourself?

If you live nearby and have the time and know-how, managing the property yourself is a valid route. You’ll save on management fees and maintain direct control. That said, you’ll need tools to keep things efficient and compliant. Here are a few highly rated options:

• Marketing: Zillow Rental Manager, Apartments.com
• Tenant Screening: SmartMove, Avail
• Rent Collection: Rentec Direct, Cozy
• Maintenance: Property Meld, Angi
• Lease Documents: Missouri Lease Templates, LawDepot

Top 10 Property Management Companies for Webster Groves & Kirkwood

1. Avenue Real Estate Group
2. Property Management STL
3. Hermann London
4. West End Management
5. Deca Property Management
6. Select Leasing
7. RPM Specialist
8. Eaton Properties
9. Garcia Properties
10. Kingsland Properties

Next Steps: Is Property Management Right for You?

If you want to maximize your ROI while freeing up your time and avoiding legal pitfalls, hiring a professional property manager is one of the best decisions you can make. Whether you own a single-family home, duplex, or a portfolio of rental units, property management professionals can ensure your investment thrives. And with Avenue Real Estate Group, you get local expertise, trusted vendors, and exceptional service.

Ready to explore your options? Contact Avenue today or call (314) 200-0215 to schedule a free consultation and property evaluation.

Garrett Knox from Knox Mortgage

Exploring Real Estate and Mortgage Insights with Garrett Knox on the Saint Louis Property Management Podcast

In this episode of the Saint Louis Property Management Podcast, Greg Abel sits down with Garrett Knox from Knox Mortgage to dive deep into the world of mortgages, real estate investing, and the ever-changing market dynamics in the Saint Louis area. Whether you're a seasoned real estate investor or a first-time home buyer, this conversation is packed with valuable insights about navigating the complexities of real estate financing and investment.

Mortgage Beginnings: From Direct Sales to a Thriving Mortgage Business

Garrett’s journey into the mortgage industry started over 23 years ago in a surprising way. Initially in the direct sales business, Garrett made a major shift when a friend approached him for office space. That simple conversation sparked the idea of launching a mortgage company, which led to the formation of Mid America Mortgage Consultants. What began as a small operation in Valley Park, Missouri, soon evolved into a full-time career.

Garrett’s ability to adapt and grow within the industry is one of the key takeaways from the podcast. He highlights how important it is to remain flexible and ready to pivot when opportunities arise—a lesson many real estate professionals can appreciate.

Navigating the Mortgage Landscape: Mortgage Brokers, Bankers, and Beyond

One of the main topics in the conversation is the distinction between different roles in the mortgage industry: mortgage brokers, mortgage lenders, and mortgage bankers. Garrett explains how the 2008 financial crisis changed the perception of mortgage brokers, and for a time, the term "broker" carried negative connotations. However, today, Garrett has returned to the mortgage broker model, which he believes is advantageous for both him and his clients.

By being a broker, Garrett can offer competitive rates from various lenders. This flexibility allows him to work with a wider range of clients, particularly those looking for the best mortgage deals. For investors and home buyers alike, this means better pricing and a more tailored approach.

"The benefit of being a broker is you have access to multiple lenders, and owning the company allows me to control my pricing and offer better rates than big companies."

The Importance of Understanding How Rates Work

A common challenge home buyers and investors face is understanding how mortgage rates work. Garrett demystifies the rate-setting process, explaining how different lenders may mark up their rates by varying percentages. As a broker, Garrett can offer more favorable rates by keeping his margins thin, ensuring his clients get better deals than they might from large, corporate lenders.

This section of the podcast provides a behind-the-scenes look at the inner workings of mortgage rate setting, offering a transparent view of how brokers like Garrett can help clients navigate the often-confusing world of home loans.

Real Estate Investing: Flips, Rentals, and Long-Term Strategy

Garrett’s experience isn’t limited to mortgage lending—he’s also an avid real estate investor. He shares the story of his first real estate flip, which turned out to be a "home run" that hooked him on property investment. Since then, Garrett has completed over 80 property flips, as well as rentals, giving him a unique perspective on the local real estate market.

The conversation turns to how the current market conditions—particularly high interest rates—are affecting real estate investors. Garrett explains that, while it’s more difficult to cash flow properties in today’s market, there are still opportunities for long-term investors who are willing to wait. He mentions his strategy of refinancing properties over time to improve cash flow and highlights the importance of taking advantage of appreciation and tax benefits through strategies like cost segregation studies.

"Right now, you’re not going to cash flow at all, but you’ll get the appreciation and tax write-offs. The long-term play is refinancing when rates drop, which is when you’ll start to see better cash flow."

Holding vs. Flipping: A Changing Investment Strategy

Over the years, Garrett’s approach to real estate investing has evolved. While he once focused heavily on flipping properties, he’s now shifting toward holding rentals for long-term gains. His goal is to acquire 20 rental properties in West County, targeting ranch homes in good school districts.

This shift reflects a growing trend among real estate investors who are opting to hold onto properties for appreciation rather than quick profits from flipping. As Garrett notes, the long-term value of owning a rental property often outweighs the short-term gains of flipping, especially in today’s market where interest rates and carrying costs make quick flips more challenging.

Advice for New Investors: Overcoming the Cash Flow Hurdle

One of the most valuable parts of the podcast is Garrett’s advice for new investors looking to break into the market. He explains that many first-time investors are intimidated by the initial cash requirements, such as the typical 20-25% down payment needed for investment properties. However, Garrett’s ability to offer competitive rates and lower fees helps ease this burden for his clients.

He also touches on the importance of qualifying for investment property loans and the role rental income plays in the approval process. For example, lenders often use 75% of the rental income from a property to help offset the mortgage payment, making it easier for investors to qualify for financing.

"Once it’s on your tax return for a year, or if you have a signed lease, we can count 75% of the lease income to help offset the mortgage."

Understanding Debt Service Coverage Ratio (DSR) Loans

Garrett introduces the concept of Debt Service Coverage Ratio (DSR) loans, which are growing in popularity among real estate investors. These loans are based on the rental income a property can generate rather than the borrower’s personal finances. Garrett explains how DSR loans are ideal for investors looking to qualify based on the property’s cash flow potential.

"If the rental income is 1.25 times the mortgage payment, you can qualify for a DSR loan. This type of loan is a great tool for investors, and it’s growing in popularity."

Market Reflections: The Challenges of Today’s Real Estate Environment

The podcast closes with a reflection on the broader real estate market, particularly the challenges of financing properties in today’s high-rate environment. Garrett emphasizes the need for patience and long-term thinking, as many investors are now facing higher rates that eat into cash flow. However, with proper planning and refinancing opportunities on the horizon, there are still ways to make smart real estate investments.

"Right now, rates are in the high sevens to mid-eights, but refinancing down the line could improve cash flow."

Final Thoughts: A Wealth of Knowledge for Real Estate Enthusiasts

This episode of the Saint Louis Property Management Podcast provides a wealth of knowledge for anyone interested in real estate, from seasoned investors to first-time home buyers. Garrett Knox’s expertise in both mortgages and property investing offers listeners practical tips and a deeper understanding of the local market dynamics in Saint Louis.

Whether you're looking to secure your next mortgage, make your first investment, or grow your portfolio, this podcast is a must-listen. With Garrett’s insider insights and Greg’s experienced hosting, you’ll come away with actionable information and a better grasp of what it takes to succeed in real estate.

00:00:01 – 00:00:20:
Introduction to the Saint Louis Property Management Podcast hosted by Greg Abel. Today’s guest is Garrett Knox from Knox Mortgage. The conversation will focus on real estate, mortgages, and investing, keeping the discussion local to the St. Louis area.

00:00:21 – 00:02:30:
Garrett shares how he transitioned into the mortgage business 23 years ago. He started a mortgage company after his previous business wasn’t fulfilling, and opened his first office in Valley Park, Missouri.

00:02:31 – 00:04:00:
Discussion about Garrett’s first mortgage company, Mid America Mortgage Consultants, and how business names evolve over time. Garrett shares his background, growing up in St. Louis, moving to California, and eventually returning to Missouri for family.

00:04:01 – 00:06:10:
Greg and Garrett discuss the St. Louis real estate market, including why people move back to the area, often due to family or work. They touch on the extremes of the St. Louis weather and how some clients only stay temporarily.

00:06:11 – 00:08:45:
Conversation shifts to understanding mortgages—terms like "mortgage banker," "mortgage broker," and the impact of the 2008 mortgage meltdown. Garrett explains how becoming a broker allowed him to offer more competitive rates and control his pricing.

00:08:46 – 00:12:30:
Greg asks about how mortgage rates work for clients. Garrett explains the rate calculation process and how different lenders mark up rates. As a broker, Garrett can offer lower rates, which benefits clients looking for better deals.

00:12:31 – 00:15:30:
Garrett shares how he became interested in real estate investing and did his first flip back in 2005 after reading various real estate books. His first successful investment fueled his passion for property flips and investments.

00:15:31 – 00:18:15:
The conversation addresses the current real estate market and how interest rates are affecting cash flow for investors. Garrett explains how he continues to invest in rentals, despite knowing he won’t cash flow immediately but expects long-term appreciation.

00:18:16 – 00:21:45:
They discuss strategies such as cost segregation studies to accelerate depreciation, which can benefit property owners. Many investors are now holding onto properties for appreciation rather than immediate cash flow.

00:21:46 – 00:25:10:
Garrett shares his investment goals, including aiming to acquire 20 rental properties in the West County area. His focus is on ranch-style homes in good school districts.

00:25:11 – 00:28:00:
For new investors, Garrett explains the process of getting financing for an investment property. He outlines the typical down payment (20-25%) and how he offers competitive rates. Garrett also discusses the importance of qualifying based on rental income and how it can offset mortgage payments.

00:28:01 – 00:31:30:
Greg and Garrett discuss the challenges for young investors trying to break into the market, particularly due to cash requirements. They compare the long-term benefits of real estate investment to other financial markets, emphasizing the value of leveraging real estate appreciation.

00:31:31 – 00:34:30:
Garrett introduces the DSR (Debt Service Coverage Ratio) loan, a growing tool among investors. This loan allows qualification based on rental income rather than personal income. The conversation touches on loan specifics, such as minimum down payments and interest rates.

00:34:31 – 00:37:00:
They talk about how hard it is to secure mortgages for low-value properties, given the points and fees that make smaller loans difficult. Garrett explains that properties under $80,000 are less common in the current market due to rising home prices.

00:37:01 – 00:39:00:
The podcast wraps up with Greg and Garrett agreeing to check in weekly for market updates, humorously suggesting they rename the podcast "Two Old Guys on Social Media." Garrett shares how personal branding with his name, Knox Mortgage, has helped him grow his business.

The Impact of Interest Rates on the St. Louis Housing Market

The Impact of Interest Rates on the St. Louis Housing Market

As we look ahead to 2025, the dynamics of the housing market are set to be significantly influenced by interest rates. Redfin economists predict that as mortgage rates decrease, more homeowners will list their properties for sale, particularly move-up buyers looking to take advantage of these lower rates. However, this influx in listings is expected to be met with even higher demand, causing homes to sell more quickly and often above their listed prices.

How Lower Interest Rates Influence the Market

Lower mortgage rates have a profound effect on the housing market:

1. Increased Affordability: As interest rates drop, monthly mortgage payments become more affordable, allowing buyers to consider higher-priced homes. This increased buying power can lead to more competitive bidding and higher overall home prices.

2. More Listings: Homeowners who were previously hesitant to sell may be more inclined to list their homes, knowing that lower rates could make it easier to afford a new, more expensive property.

3. Demand Exceeding Supply: Despite the expected increase in listings, the demand for homes is likely to outpace supply. This imbalance can result in homes selling faster and for prices above their initial listing.

Visualizing the Impact

The chart below illustrates how varying mortgage rates affect the maximum home price buyers can afford based on different monthly payments:

For example, at a 3% mortgage rate, a $3,000 monthly payment supports a home price of around $600,000. However, at a 6% rate, the same payment only supports a home price of about $450,000. This demonstrates how crucial it is for buyers to secure the lowest possible rates to maximize their purchasing power.

Current Market Conditions

Even though mortgage rates have decreased from their recent peaks, they remain significantly higher than the lows experienced during the pandemic. The current economic volatility suggests that rates might experience temporary increases. U.S. Treasury yields, which are an indicator of where mortgage rates are headed, recently showed fluctuations, underscoring the importance for buyers to act quickly.

Recommendations for Buyers

Given the current market conditions, here are some strategies for prospective homebuyers:

• Act Quickly: With the likelihood of demand outstripping supply, buyers should move fast to take advantage of improving affordability and existing inventory.

• Shop Around: Ensure you’re getting the best mortgage rate by comparing offers from different lenders.

• Stay Informed: Keep in touch with your lender to secure the best available rate as market conditions change.

Conclusion

Lower interest rates significantly enhance home affordability, driving demand and influencing the overall housing market. As we approach 2025, understanding and leveraging these dynamics can help buyers navigate the market more effectively. Locking in lower rates now could provide substantial financial benefits and increase your buying power.

Stay proactive and informed to make the most of the current and future housing market opportunities.

Source: https://www.redfin.com/news/home-affordability-improves-mortgage-rates-drop

ST. LOUIS MONTHLY HOUSING REPORT - ARRIL 2023

US existing-home sales declined 2.4% month-over-month as of the last measure, according to the National Association of REALTORS® (NAR), reversing February’s sales gain of 14.5%. Fluctuations in mortgage interest rates have caused buyers to pull back, with pending sales dropping 5.2% month-over-month. Meanwhile, the median existing-home sales price declined for the second month in a row, falling 0.9% nationally from the same time last year, the largest year-over-year decline since January 2012, according to NAR.

New listings decreased by 21.1% for residential homes and 33.2% for townhouse/condo homes. Pending sales decreased by 18% for residential homes and 22% for townhouse/condo homes. Inventory decreased by 1.7% for residential homes and 10.8% for townhouse/condo homes.

Median sales price increased 5.3% to $276,000 for residential homes and 3.3% to $219,000 for townhouse/condo homes. Days on market increased 12% for residential homes and 48% for townhouse/condo homes. Months supply of inventory increased by 27.3% for residential homes and 9.1% for townhouse/condo homes.

https://www.stlrealtors.com/pages/housingreport/

St. Louis Property Management

St. Louis is a bustling city with a rich history and a diverse economy. If you're a property owner in St. Louis, you know that managing your properties can be a challenge, whether you're dealing with tenant issues or maintenance problems. That's where St. Louis property management comes in.

What is St. Louis Property Management? St. Louis property management is a service that helps property owners manage their rental properties. It includes a wide range of services, such as tenant screening, rent collection, property maintenance, and legal compliance. Property management companies in St. Louis specialize in managing single-family homes, multi-family properties, apartments, and commercial buildings.

Why Choose a St. Louis Property Management Company? There are many benefits to choosing a St. Louis property management company to manage your properties. Here are a few reasons why:

1. Save Time and Energy: Property management can be time-consuming and stressful, especially if you have multiple properties. A property management company can handle all of the day-to-day tasks, so you don't have to.

2. Tenant Screening: Finding reliable tenants is key to running a successful rental property. A property management company can handle tenant screening, including credit checks, background checks, and reference checks, to help ensure that you find the right tenants for your properties.

3. Rent Collection: Collecting rent can be a hassle, especially if you have tenants who are late on payments. A property management company can handle rent collection for you, and can even evict non-paying tenants if necessary.

4. Maintenance and Repairs: Property maintenance can be costly and time-consuming. A property management company can handle maintenance and repairs for you, which can save you money and reduce your stress levels.

5. Legal Compliance: Property management companies are well-versed in local, state, and federal laws and regulations. They can ensure that you're in compliance with all relevant laws, which can help protect you from legal issues.

Choosing the Right St. Louis Property Management Company If you're considering hiring a St. Louis property management company, it's important to choose the right one. Here are a few things to look for:

1. Experience: Look for a property management company with experience managing properties similar to yours.

2. Reputation: Check online reviews and talk to other property owners to gauge a company's reputation.

3. Services and Guarantees: Make sure the property management company offers the services and Guarantees you need.

4. Fees: Understand the fees associated with property management, and make sure they fit your budget.

In conclusion, if you're a property owner in St. Louis, a property management company can help make your life easier. By handling everything from tenant screening to maintenance and repairs, property management companies can save you time, money, and stress. Just be sure to choose the right St. Louis property management company for your needs.

For more information on property management by Avenue please visit LeasingSTL.com

Why Today’s Housing Market Isn’t Headed for a Crash

Why Today’s Housing Market Isn’t Headed for a Crash

67% of Americans say a housing market crash is imminent in the next three years. With all the talk in the media lately about shifts in the housing market, it makes sense why so many people feel this way. But there’s good news. Current data shows today’s market is nothing like it was before the housing crash in 2008.

Back Then, Mortgage Standards Were Less Strict

During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. Banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance an existing one.

As a result, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices. Today, things are different, and purchasers face much higher standards from mortgage companies.

The graph below uses data from the Mortgage Bankers Association (MBA) to help tell this story. In this index, the higher the number, the easier it is to get a mortgage. The lower the number, the harder it is.

This graph also shows just how different things are today compared to the spike in credit availability leading up to the crash. Tighter lending standards have helped prevent a situation that could lead to a wave of foreclosures like the last time.

Foreclosure Volume Has Declined a Lot Since the Crash

Another difference is the number of homeowners that were facing foreclosure when the housing bubble burst. Foreclosure activity has been lower since the crash, largely because buyers today are more qualified and less likely to default on their loans. The graph below uses data from ATTOM to show the difference between last time and now:

So even as foreclosures tick up, the total number is still very low. And on top of that, most experts don’t expect foreclosures to go up drastically like they did following the crash in 2008. Bill McBride, Founder of Calculated Risk, explains the impact a large increase in foreclosures had on home prices back then – and how that’s unlikely this time.

“The bottom line is there will be an increase in foreclosures over the next year (from record level lows), but there will not be a huge wave of distressed sales as happened following the housing bubble. The distressed sales during the housing bust led to cascading price declines, and that will not happen this time.”

The Supply of Homes for Sale Today Is More Limited

For historical context, there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to fall dramatically. Supply has increased since the start of this year, but there’s still a shortage of inventory available overall, primarily due to years of underbuilding homes.

The graph below uses data from the National Association of Realtors (NAR) to show how the months’ supply of homes available now compares to the crash. Today, unsold inventory sits at just 2.7-months’ supply at the current sales pace, which is significantly lower than the last time. There just isn’t enough inventory on the market for home prices to come crashing down like they did last time, even though some overheated markets may experience slight declines.

Bottom Line

If recent headlines have you worried we’re headed for another housing crash, the data above should help ease those fears. Expert insights and the most current data clearly show that today’s market is nothing like it was last time.

2022 Housing Market Forecast [INFOGRAPHIC]

Some Highlights

• What does the rest of the year hold for the housing market? Here’s what experts have to say about what lies ahead.

• Home prices are projected to rise and so are mortgage rates. Experts are also forecasting another strong year for home sales as people move to meet their changing needs.

• Let’s connect so you can make your best move this year.

Things That Could Help You Win a Bidding War on a Home

With a limited number of homes for sale today and so many buyers looking to make a purchase before mortgage rates rise further, bidding wars are common. According to the latest report from the National Association of Realtors (NAR), nationwide, homes are getting an average of 4.8 offers per sale. Here’s a look at how that breaks down state-by-state (see map below):

The same report from NAR shows the average buyer made two offers before getting their third offer accepted. In this type of competitive housing market, it’s important to know what levers you can pull to help you beat the competition. While a real estate professional is your ultimate guide to presenting a strong offer, here are a few things you could consider.

Offering over Asking Price

When you think of sweetening the deal for sellers, the first thought you likely have is around the price of the home. In today’s housing market, it’s true more homes are selling for over asking price because there are more buyers than there are homes for sale. You just want to make sure your offer is still within your budget and realistic for the market value in your area – that’s where a local real estate professional can help you through the process. Bankrate says:

“Simply put, being willing to pay more money than other buyers is one of the best ways to get your offer accepted. You may not have to increase it by a lot — it’ll depend on the area and other factors — so look to your real estate agent for guidance.”

Putting Down a Bigger Earnest Money Deposit

You could also consider putting down a larger deposit up front. An earnest money deposit is a check you write to go along with your offer. If your offer is accepted, this deposit is credited toward your home purchase. NerdWallet explains how it works:

“A typical earnest money deposit is 1% to 2% of the home’s purchase price, but the amount varies by location. A higher earnest money deposit may catch a seller’s attention in a hot housing market.”

That’s because it shows the seller you’re seriously interested in their house and have already set aside money that you’re ready to put toward the purchase. Talk to a professional to see if this is something you can do in your area. 

Making a Higher Down Payment 

Another option is increasing how much of a down payment you’re going to make. The benefit of a higher down payment is you won’t have to finance as much. This helps the seller feel like there’s less risk of the deal or the financing falling through. And if other buyers put less down, it could be what helps your offer stand out from the crowd.

Non-Financial Options To Make a Strong Offer

Realtor.com points out that while increasing these financial portions of the deal can help, they’re not your only options:

“. . . Price is not the only factor sellers weigh when they look at offers. The buyer’s terms and contingencies are also taken into account, as well as pre-approval letters, appraisal requirements, and the closing time the buyer is asking for.”

When it’s time to make an offer, partner with a trusted professional. They have insight into what sellers are looking for in your local market and can give you expert advice on what levers you may or may not want to pull when it’s time to write an offer.

From a non-financial perspective, this can include things like flexible move-in dates or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). For example, you could make an offer that’s not contingent on the sale of your current home. Just remember, there are certain contingencies you don’t want to forego, like your home inspection. Ultimately, the options you have can vary state-to-state, so it’s best to lean on an expert real estate professional for guidance.

Bottom Line

In today’s hot housing market, you need a partner who can serve as your guide, especially when it comes to making a strong offer. Let’s connect so you have a trusted resource and coach on how to make the strongest offer possible for your specific situation.

How To Approach Rising Mortgage Rates as a Buyer

In the last few weeks, the average 30-year fixed mortgage rate from Freddie Mac inched up to 5%. While that news may have you questioning the timing of your home search, the truth is, timing has never been more important. Even though you may be tempted to put your plans on hold in hopes that rates will fall, waiting will only cost you more. Mortgage rates are forecast to continue rising in the year ahead.

If you’re thinking of buying a home, here are a few things to keep in mind so you can succeed even as mortgage rates rise.

How Rising Mortgage Rates Impact You

Mortgage rates play a significant role in your home search. As rates go up, they impact how much you’ll pay in your monthly mortgage payment, which directly affects how much you can comfortably afford. Here’s an example of how even a quarter-point increase can have a big impact on your monthly payment (see chart below):

With mortgage rates on the rise, you’ve likely seen your purchasing power impacted already. Instead of delaying your plans, today’s rates should motivate you to purchase now before rates increase more. Use that motivation to energize your search and plan your next steps accordingly.

The best way to prepare is to work with a trusted real estate advisor now. An agent can connect you with a trusted lender, help you adjust your search based on your budget, and make sure you’re ready to act quickly when it’s time to make an offer.

Bottom Line

Serious buyers should approach rising rates as a motivating factor to buy sooner, not a reason to wait. Waiting will cost you more in the long run. Let’s connect today so you can better understand your budget and be prepared to buy your home even before rates climb higher.

Why a Real Estate Professional Is Key When Selling Your House

With today’s real estate market moving as fast as it is, working with a real estate professional is more essential than ever. They have the skills, experience, and expertise it takes to navigate the highly detailed and involved process of selling a home. That may be why the percentage of people who list their houses on their own, known as a FSBO or For Sale By Owner, has reached its lowest point since 1985 (see graph below):

Here are five reasons why selling with a real estate professional makes more sense, even in today’s hot market:

1. They Know What Buyers Want To See

Before you decide which projects and repairs to take on, connect with a real estate professional. They have first-hand experience with today’s buyers, what they expect, and what you need to do to make sure your house shows well.

If you don’t lean on their expertise, you may spend your time and money on something that isn’t essential. That’s because, in today’s low-inventory market, buyers are willing to take on more of the renovation work themselves. A survey from Freddie Mac finds that:

“. . . nearly two-in-five potential homebuyers would consider purchasing a home requiring renovations.” 

A professional can help you decide what you need to tackle. It’s not canned advice you could find online – it’s recommendations specific to your house and your area.

2. They Help Maximize Your Buyer Pool

Today, the average home is getting 4.8 offers per sale according to recent data from the National Association of Realtors (NAR), and that competition is pushing prices up. While that’s promising for you as a seller, it’s important to understand your agent’s role in bringing buyers in.

Real estate professionals have an assortment of tools at their disposal, such as social media followers, agency resources, and the MLS to ensure your house is viewed by the most buyers. According to realtor.com:

“Only licensed real estate agents can list homes on the MLS, which is a one-stop online shop of sorts for getting a house seen by thousands of agents and home buyers. . . . This is certainly one of many good reasons why the majority of home sellers decide to employ the services of a listing agent rather than going it alone.”

Without access to these tools, your buyer pool is limited. And you want more buyers to view your house since buyer competition can drive your final sales price higher.

3. They Understand the Fine Print

Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. That’s why Investopedia says:

“One of the biggest risks of FSBO is not having the experience or expertise to navigate all of the legal and regulatory requirements that come with selling a home.”

A real estate professional knows exactly what needs to happen, what all the paperwork means, and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.

4. They’re Trained Negotiators

If you sell without a professional, you’ll also be solely responsible for all the negotiations. That means you’ll have to coordinate with:

• The buyer, who wants the best deal possible

• The buyer’s agent, who will use their expertise to advocate for the buyer

• The inspection company, which works for the buyer and will almost always find concerns with the house

• The appraiser, who assesses the property’s value to protect the lender

Instead of going toe-to-toe with all these parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.

5. They Know How To Set the Right Price for Your House

If you sell your house on your own, you may over or undershoot your asking price. That could mean you’ll leave money on the table because you priced it too low or your house will sit on the market because you priced it too high. Pricing a house requires expertise. Investopedia explains it like this:

“. . . There is no easy or universal way to determine market value for real estate.”

Real estate professionals know the ins and outs of how to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your house. These factors are key to making sure it’s priced to move quickly while still getting you the highest possible final sale price.

Bottom Line

There’s a lot that goes into selling your house. Instead of tackling it alone, let’s connect so you have an expert on your side throughout the entire process.

What You Need To Budget for When Buying a Home

When it comes to buying a home, it can feel a bit intimidating to know how much you need to save and where to find that information. But you should know, you’re not expected to have all the answers yourself. There are many trusted professionals who can help you understand your finances and what you’ll need to budget for throughout the process.

To get you started, here are a few things experts say you should plan for along the way.

1. Down Payment

As you set your savings goal for your purchase, your down payment is likely already top of mind. And, like many other people, you may believe you need to set aside 20% of the home’s purchase price for that down payment – but that’s not always the case. The National Association of Realtors (NAR) says:

“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership. Having this knowledge is critical to know what to save . . .”

The good news is, you may be able to put as little as 3.5% (or even 0%) down in some situations. To understand your options, partner with a trusted professional who can go over the various loan types, down payment assistance programs, and what each one requires.

2. Earnest Money Deposit

Another item you may want to plan for is an earnest money deposit. While it isn’t required, it’s common in today’s highly competitive market because it can help your offer stand out in a bidding war.

So, what is it? It’s money you pay as a show of good faith when you make an offer on a house. This deposit works like a credit. You’re using some of the money you already saved for your purchase to show the seller you’re committed and serious about their house. It’s not an added expense, it’s just paying some of that up front. First American explains what it is and how it works:

“The deposit made from the buyer to the seller when submitting an offer. This deposit is typically held in trust by a third party and is intended to show the seller you are serious about purchasing their home. Upon closing the money will generally be applied to your down payment or closing costs.”

In other words, an earnest money deposit could be the very first check you’ll write toward your purchase. The amount varies by state and situation. Realtor.com elaborates:

“The amount you’ll deposit as earnest money will depend on factors such as policies and limitations in your state, the current market, what your real estate agent recommends, and what the seller requires. On average, however, you can expect to hand over 1% to 2% of the total home purchase price.”

Work with a real estate advisor to understand any requirements in your local area and what they’ve recommended for other buyers in your market. They’ll help you determine if it’s something that could be a useful option for you.

3. Closing Costs

The next thing to plan for is your closing costs. The Federal Trade Commission (FTC) defines closing costs as:

“The upfront fees charged in connection with a mortgage loan transaction. …generally including, but not limited to a loan origination fee, title examination and insurance, survey, attorney’s fee, and prepaid items, such as escrow deposits for taxes and insurance.”

Basically, your closing costs cover the fees for various people and services involved in your transaction. NAR has this to say about how much to budget for:

“A home costs more than just the sale price. For example, closing costs—which make up about 2% to 5% of the home’s purchase price—are a major added expense…Lenders provide a Closing Disclosure at least three business days prior to closing on a mortgage. But buyers will need to budget for these added costs ahead of time to avoid sticker shock days before closing.”

The key takeaway is savvy buyers plan ahead for these expenses so they can come into the process prepared. Freddie Mac sums it up like this:

“If you’re in the market to buy a home, your down payment is probably top of mind. And rightly so – it’s likely the biggest cost of homebuying. However, it is not the only cost and it’s critical you understand all your expenses before diving in. The more prepared you are for your down payment, closing and other costs, the smoother your homebuying journey will be.”

Bottom Line

Knowing what to budget for in the homebuying process is essential. To make sure you understand these and any other expenses that may come up, let’s connect so you have reliable expertise on what to expect when you buy a home.

The Best Week To List Your House Is Just Around the Corner

Are you thinking about selling your house? If so, you may want to make it a priority to start the process soon. According to realtor.com, the sweet spot for sellers is just around the corner. In a recent study, experts analyzed housing market trends by looking at data from the past several years (excluding 2020, since it was an atypical year). When applied to the current market, experts determined the ideal week to list a house this year. The research says:

“Home sellers on the fence waiting for that perfect moment to sell should start preparations, because the best time to list a home in 2022 is approaching quickly. The week of April 10-16 is expected to have the ideal balance of housing market conditions that favor home sellers, more so than any other week in the year.”

If you’ve been putting your move on the back burner waiting for the ideal time to sell, you should know your golden window of opportunity is coming up. If you’re able to get your house ready quickly, here’s what you can expect from that week.

You Should See More Buyer Activity

The article expects higher buyer demand based on what’s happened in previous years. This could result in increased competition among buyers and ultimately a bidding war over your house. And since mortgage rates recently ticked up over 4%, chances are good that analysis is right. When rates rise, experts say buyers often hurry to make their purchase before rates climb higher. As Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), says:

“. . . Buyers are rushing to lock in lower rates as the outlook is for even higher mortgage rates in the following months.”

Your House Is Expected To Sell Quickly

Additionally, the realtor.com analysis shows houses sell even faster during this week of the year, likely due to the heightened buyer demand. If you work with a trusted real estate professional to price your house right, it should sell quickly. And when homes are already selling in just 18 days according to NAR, that could set you up for a big win.

Your House Will Be in the Spotlight

Since the beginning of the year, the number of homes available for sale has been at or near record lows. According to the realtor.com study, the typical trend for this week of the year is that there will be even fewer sellers on the market. If you list when inventory is low, your house will be the center of attention for eager buyers craving options.

If you’re ready to move fast, you may want to shoot for April 10th-16th as your target goal. Just remember, even if you’re not ready to list within the next couple of weeks, rest assured this is still a hot sellers’ market. If you list later in April, you’ll still be in the driver’s seat.

Bottom Line

Ready to get the ball rolling? Let’s connect and schedule a time to go over your next steps. In the meantime, make a checklist of things you need to tackle to get your house ready. When we talk, we can prioritize your to-do list and get you on the road to selling your house.