Contact 2: A seller’s perspective of the crazy St. Louis real estate market

ST. LOUIS – “We had 33 different showings on our house. We had 12 offers that came in. Out of those 12 offers, every single one of those was over asking price, which is just crazy to think about. Most of them had very few contingencies, if any,” said St. Louis County resident Tim Rhame.

Welcome to the St. Louis real estate market in 2021. Amy and Tim Rhame’s situation might not be the norm, but it’s far from the exception right now.

“It’s pretty crazy. It’s good problem to have for most sellers, but it can get nuts,” said Ben Faser, the Rhames’ realtor.

Faser counsels his clients to remain cautious despite the craziness.

“I have people reaching out to me all the time saying, ‘I’m thinking about selling my house.’ My first question to them is, ‘Do you have somewhere to go?’” he said.

A crucial question considering the latest housing report from St. Louis Realtors. Year to year, inventory is down more than 40%. The average home sold in 28 days compared to 42. Faser says price remains one of the key drivers.

“If you get caught up in the stories of 30, 40, 50 (thousand dollars) over asking price but you start too high, the buyer pool is so educated right now, and they know when something is overpriced. They’ll wait. We’ll know immediately if we’re not in the right ballpark because we won’t get showings,” Faser said.

Sellers should also consider potential tax implications. Attorney Alex Curcuru explained the “principal residence exclusion” to KMOX’s Megan Lynch.

“So long as you both own and use your residence for two of the most recent five years, you can exclude up to as a single person, $250,000 in gains. As a married couple, up to $500,000 in gains,” Curcuru said.

If you’re selling, but haven’t lived your home two years, Curcuru says there’s a partial exclusion.

“Where you can essentially count the days,” he said. “For those that may have more than $500,000 for a married couple, they may want to consider and make sure the basis they’re reporting, what they put into the house, is accounted for as well.”

The Rhame residence is proof the concept of a forever home may be forever changed. Five years after moving in, they’re moving on. They bought a home off market from a friend of a friend.

“When I went to the other neighborhood, I saw the kids, talked to the neighbors. They also think their neighborhood is the best neighborhood,” Rhame said. “I think my neighborhood is the best neighborhood. Maybe we’ll find another great neighborhood with great neighbors.”

FOX 2