Fort Leonard Wood Real Estate - I Need A Home NOW!
I Need A Place To Live - NOW!
Thanks for visiting my Fort Leonard Wood real estate blog. These blogs cover the real estate market in and around the Fort Leonard Wood area. If you plan to buy or sale in the next 30 to 60 days this is the blog for you. If this is your first visit to my blog, welcome and please sign up for future Fort Leonard Wood Market Updates so you can stay on top of the market conditions. The market conditions in Pulaski County change as frequently as the weather so stay updated!
What Makes Markets Go Up and Down? Most areas with decent real estate market conditions have a major economic provider that causes the market to be survivable. Louisville Kentucky has the Toyota Plant, St Louis has numerous major corporate businesses, and Washington D.C. has the Government agencies that keep their markets moving forward. It is no surprise that the Pulaski County Market includes the Fort Leonard Wood Military installation. According to a 2013 study of Missouri’s military infrastructure, the base is credited with supporting 36,400 direct and indirect jobs in the state, it is Missouri’s fifth largest employer, and has a total economic output of $2.1 billion. So, the more Military members that move to Fort Leonard Wood the more housing is required to support them. With the recent downsizing of military personnel at Fort Leonard Wood it has caused an increase in the number of homes that are available to sell. The more homes available for sale the more choices buyers have and thus they are looking for “a deal”. “CREC and its partner, the Leonard Wood Institute, are studying and quantifying the impacts stemming from the 2013 actual, and the 2015 personnel reductions on Fort Leonard Wood military base. The start date is July 2016 and the end date is June 2017. The study includes an analysis on topic areas including: employment and workforce impacts, retail and lodging, housing, schools, small business and suppliers, as well as social and public services to name a few.” (1)
How Do I Know When to Buy or Sell? Now that we have discussed what drives the Fort Leonard Wood market we can dig into how sellers and buyers can approach these market conditions to get the highest price for their home or the best deal on a home if you are a buyer.
The chart below shows the number of residential homes on the market in the Fort Leonard Wood area by type and average sales price. These numbers show buyers what they have to choose from and shows sellers what their competition looks like. Many of the questions we get from buyers in a military market is “when can I move in”? To put this in perspective sellers need to realize (and most do) that a Service Member has 10 days of Temporary Living Allowance (TLA) where the military will cover their lodging cost during that time. This forces military members to find a place to live within 10 days or pay out of pocket. Couple that with having their family live in a hotel and trying to start work on base as soon as possible it makes for the perfect storm.
Number of Active Homes & Average Price
I Need a Home NOW - I Cannot Wait 30 Days to Move In: As you can see from the chart above there are numerous homes to choose from. Since military members need a place to live quickly, when they arrive, an empty home will sell faster than an occupied home. That is another thing that makes this market unique. Sellers are willing to let buyers live in their home prior to them owning it (or closing). This is called “Possession Prior To Closing” or possession prior. This is a key factor on whether your home will get a good offer price or not. Buyers do not want to wait 30 days for a seller to move out and then close on the home. In their mind, they must pay for a place to live for 20 days (10 days TLA + 20-22 more days to close). If a seller will allow a buyer to move in once they accept the offer they are more likely to get a decent offer on their home. The buyer negotiates a per day rent rate, which is cheaper than 20 days in lodging. Most hotels are $75 to $100 a night. Staying in a hotel waiting for the home to close could run upwards of $2000. If a seller lets a buyer move in the home for $35-$40 a day that comes to around $800, a huge difference to a member of the military. The other upsides to allowing a buyer to move in is:
1. The buyer gets to have their household goods delivered and can get their family settled sooner.
2. The seller gets rent on a home that would otherwise be empty and drawing no income.
3. The buyer saves money compared to staying in a hotel waiting for their home to close.
4. The seller has someone staying in their home with a vested interest to maintain it and ensure all goes well with the home until closing.
Do I Need Renters Insurance? Not every transaction runs as smooth as expected and there are some hurdles that pop up along the way. I encourage buyers and sellers to check their insurance policies to ensure they have the proper coverage in a possession prior scenario. A buyer should have renter’s insurance in case of fire or water damage. The seller must maintain coverage on the actual home but their insurance will “not” cover a buyer’s personal belongings in most scenarios. Always remember to protect yourself and speak to a knowledgeable real estate agent. Most of a buyer or seller’s questions can be answered by reviewing the contract or speaking with an agent with knowledge of the “local” area. As always you can call Realty Executives anytime and we will answer your questions to the best of our ability and with your best interest in mind.
If you are in the market to buy or sale please call, text, or email me and I will respond quickly. You can also get a free market analysis from my website to see if the market is right for you. Continue to follow my blog to stay informed on the Fort Leonard Wood housing market. Things are looking up and when it is time for you to invest, buy, or sell you’ll be better informed to become a winner in Real Estate by following my blogs. Use one of knowledgeable agents at Realty Executives for all your housing needs.
*statistical information was obtained from MARIS (PCBOR MLS Service) all information should be independently verified