The Missouri Property Tax Credit Claim gives credit to certain senior citizens and 100 percent disabled individuals for a portion of the real estate taxes. The credit is for a maximum of $1,100 for owners who owned and occupied their home.

Click here for the Property Tax Credit Qualification Chart.

Many real estate sales in 2011 at the Lake of the Ozarks were paid for with cash.   Surprised?  With record low interest rates and the great tax break you get for buying vacation and second homes, it is a bit surprising.   The National Association of REALTORS estimates that 30% of purchases this year are all cash, up from 15% a few years ago.

One reason why people are doing this is that they are getting little to no return on the investments elsewhere, so they might as well be investing in something with an upside.  You aren’t getting much of anything from a  CD right now.   Real Estate foreclosures at the Lake of the Ozarks have actually declined from the previous years number for the first year since 2006.  So real estate is at least stabilizing, that is the first step before it can start appreciating again.

Sometime you can get a lower purchase price if you offer cash.  A few years back this really didn’t translate into a discount of much at all, now savvy agents and sellers realize the benefit of a qualified buyer.   

Some advantages of a cash closing also included saving on closing costs.  At the least, you save on the lenders title policy, and the option to get title insurance at all will be your decision.   You will also save  on appraisal. if you have a clear picture of the deal you are buying and it’s real value.  Mortgages are taking longer to complete, a there are more fees than ever before. 

The best option is to buy with cash, the cash offer and quick closing date will get you ahead of someone making a similar offer but that has the uncertainty of a financing contingency.  Then you can refinance the property at your leisure, without the stress and hassle of a closing date hanging over your head.  

If you have any questions about financing real estate at the Lake of the Ozarks, a condominium or waterfront home, call John Garrett today.   573-480-6420. 

5 Things to Know About Lake of the Ozarks Title Insurance

Title insurance protects the holder from any losses sustained from defects in the title. It’s required by most mortgage lenders.  It is even more important on a foreclosure property.  I’m sure you have heard of the many wrongful foreclosure issues that are out there.   Some title companies actually stopped insuring GMAC foreclosures for a while.  They weren’t the only lender under scrutiny either.

Title is one of those things where you just show up to a closing and there it is, at the bottom of page 2, section 1100 of the HUD-1 settlement statement.  It is probably the most expensive charge on the HUD-1, and you are wondering “who picked this, why do I need it, what the …?”  How I explain title insurance is this:  If someone shows up years later and claim they own the property, or more likely, had a partial claim of some sort in the property, you are insured from that claim.  If they do, in fact, have a claim in the property, the title insurance will make them whole financially.

Here are five other things you should know about Lake of the Ozarks title insurance.

 1. It protects your ownership right to your home, both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person’s name or an inaccurate description of the property.

2. You pay it once at closing, and again if you refi,  usually based on the price of the property.

3. Our local custom is the seller pays for title commitment, the buyer pays for the title policy and lender policy.

4. The lender will require a lender policy if the purchase is financed.

5. Sometimes you can ask for discount in the title policy.  It doesn’t hurt to ask.   Tell  them, you will use them again and recommend friends and family use them as well.  Do this as soon as the title work is ordered by the real estate agent.

Call John Garrett if you have any questions about this or any other real estate matters.

Lake of the Ozarks – Tax Benefits of Second Home Ownership

The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of second home-ownership and makes Lake of the Ozarks real estate an attractive investment that can be enjoyed by friends and family.  Here’s how it works.

You Purchase:

You have a loan of $150,000 for 30 years, at 7 percent (yes, they are much lower than this right now, but they won’t stay that way forever).  Your payment would be $997.95 per month.  The first payment is made, $122.75 goes to pay down the principal amount of the loan, and $875 is interest paid for that month.   You are allowed to deduct the interest portion of the payment (for this example we will keep the amount of interest paid at $875 for 12 months).

$10,500 = Mortgage interest paid
$  1,200 = Annual property tax
______

$11,700 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 33 percent tax rate: 11,700 x 0.33 = $3,861

$3,861 = Amount you have lowered your federal income tax (at 33 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.

Call John Garrett with any questions about Lake of the Ozark real estate.  573-480-6420.

Lake of the Ozarks Common Closing Costs for Buyers

When you buy a house at the Lake of the Ozarks, you’ll be glad to know that Missouri is one of the lowest closing costs state in the US. This along with low interest rates and great seller concessions make it an ideal time to buy at the Lake.

You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for:

• Down payment
• Loan origination
• Points, or loan discount fees, which you pay to receive a lower interest rate
• Home inspection
• Appraisal
• Credit report
• Private mortgage insurance premium
• Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage
• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
• Deed recording
• Title insurance policy premiums
• Land survey
• Notary fees
• Prorations for your share of costs, such as utility bills and property taxes

A Note about Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6^th of the month. You would owe the gas company for only the days from the 6^th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.  Call John Garrett Prudential Lake Ozark Realty at 573-480-6420 with any questions. 

If you are serious about buying Lake of the Ozarks real estate, now is the time you have been waiting for.  A perfect storm of low interest rates,  a buyer’s real estate market, and foreclosures to lower prices further have created the right time to buy real estate at the Lake of the Ozarks.   Here’s what you need to do:

• You need a qualified buyer’s agent.
• Get pre-qualified with a lender.
• Register with the best MLS search site at the Lake.
• Decide what area of the Lake is right for you.
• Decide the level of “fixing up” you are willing to do.

Buying real estate at the Lake of the Ozarks is not difficult if you follow a good plan.  By doing the 5 items present above, you will have a huge advantage over typical buyers that are wasting their time chasing print ads that have already been sold and looking at outdated real estate web sites.   I have helped people buy their Lake of the Ozarks home (and Condos) since 1995, I have worked everyday, full-time in this market ever since.   I can say without a doubt that now is the best time to buy real estate at the Lake of the Ozarks. 573-480-6420

Lake of the Ozarks Condominiums sold in 2011, what would you guess?  Sales up or down from last year?  If you said up, you are right.  Sales increased in both # of sales, and dollar volume, while average sale price remained basically unchanged.

2011 produced 135 sales, 2011 produced 157 sales.  The volume increased from $22,782,910 to $26,017,834.   The sales volume was slow for spring, but has really picked up lately.  Let’s hope this indicates a strong 3rd and 4th quarter for condo sales.

Search for foreclosure condos here

Lake of the Ozarks Waterfront Homes sales show a nice gain over the same period last year.  26% is nothing to sneeze at!

June 2011 Waterfront Home Sales
Sale Price Volume $17,833,499
Avg Sale Price $349,676

June 2010 Waterfront Home Sales
Sale Price Volume $13,138,210
Avg Sale Price $285,613

It is a bump along recovery, but positive news is good news anytime you can get it.  Call John Garrett for detailed accurate pricing reports in this market.  Whether a buyer or seller, you can’t afford to use an agent that doesn’t know the market.

If searching the Lake of the Ozarks area for foreclosures, you’ll notice in the MLS comments a line that reads “This is a Fannie Mae HomePath property you can purchase for as little as 3% down.”

Sounds great, right? The problem is that it must be your primary residence to qualify for this low down payment option. The good news is you can buy with as little as 10% down, IF you use the right lender.

John Garrett is an expert on getting these kind of deals done. Call him to get started today, having your financing in order makes all the difference, especially in these challenging times. 573-480-6420

Lake of the Ozarks, last year in condominiums sold, there were 28 foreclosure sales by June 24th, 2010. In the same period in 2011, there have only been 17 foreclosure condominium sales. There has been a decline in foreclosure sales and a not surprising increase in average sale price and price per square foot this year.

Now is the time to take advantage of this market, before it goes up and the deals become fewer and far between. Call John Garrett 573-480-6420