ST. LOUIS – The St. Louis real estate market is on tilt and chronicling this craziness takes teamwork. That’s why Contact 2 is collaborating with Michael Calhoun and Megan Lynch from KMOX Radio.
“I thought if we put our heads together we could provide a comprehensive look at what’s going on with buyers and sellers right now,” Lynch said.
And builders too; like John Eilermann, CEO of McBride and Sons Homes. He told KMOX the market for new home construction is driven by low interest rates and low inventory of existing homes. Under normal circumstances, the company keeps 100 to 150 inventory homes ready for instant move in.
“Right now, we have one completed inventory home and there’s not many behind it because sales are so strong,” Eilermann said.
For example, buyers took extreme measures a few weekends ago to secure a home in McBride’s Westhaven development in Wentzville.
“Twelve families camped out in tents so they could be the first ones to purchase. We ended up selling 21 homes,” Eilermann said.
“They’re searching for their home, they think they found the perfect one, and it’s gone. So, when you think you’ve found the space you want, camping out doesn’t seem so out there,” Calhounsaid.
“To give up an appraisal rider or an inspection on a house, that blows my mind,” said homebuyer Vickey Harper.
Harper is describing a potentially dangerous gamble taking place in the current real estate market. Buyers are eliminating contingencies like inspections, appraisals, and financing clauses to make their offer more attractive.
“Waiving the inspection is a real concern,” said Edwardsville real estate attorney Edward McCarthy.
He explained to KMOX’s Megan Lynch that when buyers eliminate protections from their offers, they’re essentially getting agreeing to buy the property as-is.
“You’re looking at a real burden there if it happens to you,” McCarthy said.
Lynch added: “The most surprising thing was that basically, if you waive that right to an inspection, you have no legal recourse. You are on the hook.”
The legal element is just another factor complicating the St. Louis real estate market right now. Through our collaboration with KMOX Radio, we’ll continue to explore this historic time as we work to inform buyers and sellers.