Kansas City North Real Estate Blog

Staged to SELL

Today, REALTORS® are tasked with so much more than showing properties and negotiating contracts. We are responsible for every detail in order to ultimately close on a property. From awareness of market conditions to our ability to help our sellers face reality about market values, a REALTORS®’ job is seldom done!

More than ever we are responsible for insuring that all the pieces of the real estate puzzle fit together perfectly. And for some, natural talents in decorating, color choices, furniture placement, discarding of items, etc., are part of their value package.

What we do know is today, more than ever, buyers rely on the Internet to view our listings prior to making an appointment to physically see the home. Insuring that a property stands out is critical. These buyers use the Internet to narrow their choices, so creativity combined with a few accessories, a little reorganization, and ruthless paring can make a property stand out in today’s slower markets. The subject of staging comes to mind.

Even in a fast-paced market, staging can pay off. A number of surveys have proven that staging can increase a sales price by several thousand dollars. Cleaning and decluttering can add several thousand dollars to the final price as well. Like the offering of a home warranty, staged homes sell for more than non-staged homes. And the good news is that staging does not have to cost a fortune. The comparably low cost of staging can net big rewards.

So what is “staging” anyway? Staging is increasing the perceived value of a home by “showcasing” the space to allow potential homebuyers to mentally move in. Staging is a subtle art that involves creativity and some muscle. The point of focus is to emphasize the property and not the owner’s personal items.

When a property is “staged” all clutter is removed. In order for a property to sell quickly and for top dollar, an environment of neutrality should be the focus. De-personalizing is the key here. And creating a space that is harmonious and spacious is the objective. The buyers must be able to picture themselves living in the home, and that is difficult to do when family photos, grand art collections, and other personal effects capture their attention.

Think of staging like detailing a car. A smart auto seller would pay to have the car immaculately cleaned and polished prior to selling it. This adds value to the car and that is exactly what staging does for a property. In fact, the investment in staging can prove to be substantially less than the first price reduction.

We’ve all heard that first impressions are lasting impressions, so it is our responsibility to insure that our listings are the ones remembered. Perhaps a fresh coat of paint is needed on a weather-beaten front door. Go ahead and remove all those old nails that have been used to hang the holiday wreaths.

The driveway and sidewalks should be pressure washed to remove grime, stains and debris. Insure that trees are pruned, fresh mulch/straw is placed in flowerbeds and that the home is inviting. Odors from pets, cooking, strong scented candles, etc., should also be eliminated.

On the inside, one of the most important things you can do is to start removing all items that are not absolutely necessary for daily life while the home is for sale. What I like to share with my sellers is that “since you are planning on moving anyway, you might as well start boxing things up.” If needed, I may recommend that my sellers go ahead and rent a storage unit and take these excessive items off site. Creating spacious living areas is our goal.

For vacant homes, simple furnishings and accessories create a homier environment. Sometimes it is difficult for buyers to imagine their furniture in vacant spaces. Hence, the reason builders today use fully furnished models to sell their products. Be careful here if you are considering renting furniture as monthly rental fees can be expensive. Perhaps purchasing and then reselling might be a good alternative. Yard sales, or even donating and receiving a charitable tax deduction are options.

As top-notch REALTORS®, we should have our sellers fix any visible problems that might be a red flag for potential buyers. Suggest that our sellers consider re-painting public rooms that garner a lot of a buyer’s attention (kitchen, dining room and living room). When showing the homes, we must turn on every light in the house and tune all radios in the home to the same classical music station. A helpful hint is to ask the owner to refrain from smoking inside the home and from doing any cooking that would leave a smell.

So how does one go about choosing a stager? Like our business, a solid referral is your best choice. Find someone who has recently worked with a stager and question them about their experience. Then interview the stager yourself. Ask lots of questions to determine how he or she works and what the cost is. Just as we have a listing presentation, top-notch stagers will have a formal presentation to share.

The Internet is also a good resource for doing homework prior to making a selection. Explore www.stagedhomes.com, which is the Web site for Accredited Staging Professionals (ASP), where a regional list is available for consulting. There is also an International Association of Home Staging Professionals (IAHSP.com), which also provides stagers by region. Like REALTORS®, ASPs maintain a code of ethics and should have sound business practices and proper insurance. A continuing education program also offers ASPs the opportunity to increase their knowledge by earning different levels of accreditation, such as an ASP Master.

The stager should pass your interview, just as our buyers and sellers interview us for our jobs. Steer clear of part-timers or those practicing staging as a hobby. Find out if the stager works alone or has a team. Ask for references so that you can do a thorough background check. Find out if the stager has his or her own inventory or will be renting furniture. Stagers who own their own stock of furniture and accessories should offer you a tighter quote.

Lastly, Don’t overlook personalities. You will be working with these stagers during various parts of the transaction, so a good working relationship benefits both parties. Don’t just make a decision based on money because stagers have different styles, work ethics and temperaments.

Adding Curb Appeal

When a house for sale looks good outside, buyers are more likely to want to come inside, says Barb Schwarz, founder of the International Association of Home Staging Professionals. Here are some of Schwarz’s suggestions for tidying up the yard.

• Make it neat and clutter-free. Get rid of children’s toys and limit the number of hanging flower baskets and yard art. "It's far better to have fewer bigger pots than the clutter of smaller hanging pots," Schwarz says. "They just weigh down the house."
• Mow, weed and edge. “If the yard doesn't look well-manicured, then potential buyers feel the home hasn't been well maintained," Schwarz says. If the dog urinated on the yard and killed a portion of it, Schwarz recommends painting it.
• Trim the greenery. Trim trees from the bottom so they create a canopy but don’t block the view. Trim foundation plantings from the top, so they don’t impede views of the windows.
• Add color. If there’s no color in the yard, plant something like brightly blooming impatiens along the walkway.
• In winter, place two small potted evergreen trees on either side of the door to brighten up the entrance. Also, make sure the walkways are clear of ice and snow.
• Buy a new welcome doormat to dress up the front door.

Kansas City ranks No. 3 for Relocating Families

Kansas City ranks No. 3 among large metropolitan areas in the 2007 Best Cities for Relocating Families, published by Worldwide ERC and Primacy Relocation.

Fort Worth-Arlington, Texas, ranks No. 1 among metro areas with populations of at least 1.25 million. Wichita ranks second among midsized metros with a population of 575,000 to 1.25 million. Knoxville, Tenn., topped that list. Provo-Orem, Utah, came in No. 1 for relocating families in small metro areas, those with a population of 350,000 to 575,000. Springfield, Mo., ranks 11th on the list of small metro areas.

This is the third year for the study, on which the two organizations worked with Bert Sperling of Sperling's BestPlaces to rate cities based on short-term and long-term factors that determine the likelihood of a successful relocation. In relocating a family, traditional variables such as an area's cost of living, crime rates, education and climate are combined with more abstract factors such as a city's arts and culture scene, focus on diversity and number of physicians per capita, according to a release.

The 2007 study placed a special emphasis on the housing market.

If you are considering relocating to the Kansas City area, especially Liberty Missouri, please call Ron Henderson of Keller Williams, Northland Partners at (816) 651-9001 or visit his website at http://www.clayandplatte.com/

Honesty, Integrity, Experience

You know, probably the very first question you should ask any real estate agent is, “What makes you different?”  The reply from most agents will probably be your standard answers like, “Honesty, Integrity, and Experience” but wouldn’t that be pretty much what you should expect from your Realtor in the first place?  If you spoke with 10 agents I’m guessing this is what at least 9 of them would say differentiates them from their competitors, but do these things entirely set them apart from all the other Realtors out there?

I believe this is partly the fault of the agents themselves because they use these words without ever considering what they might really mean. Let’s consider each one individually.

HONESTY:

Let’s face it, when someone is trying to persuade someone else to buy their product or service, and especially when there is a considerable amount of money involved, honesty can sometimes take a backseat or at least only come along for the ride. Most people would expect their Realtor to be honest with them, but they may not exactly want to hear the whole truth and nothing but the truth.

I’m talking about being honest enough with your sellers to tell them when their house is just not worth the amount of money they think its worth or that they need to fix some “issues” before putting it on the market. I’m talking about being honest enough with a buyer to point out certain things about a house that could kill their interest in buying it and cause you the need to show them another 10 homes before they find the right one. I’m talking about being honest enough to tell a seller that the market is slow right now and you cannot guarantee when their home will sell. My customers tell me they appreciate this kind of honesty. They need to make educated financial decisions and do appreciate the information I give them, even if it hurts.

Because I’m in the real estate market every single day, there are things that I know that the typical home owner cannot possibly be expecting. I consider it my responsibility to inform them of everything and to rise to a higher standard of “honesty”.

INTEGRITY:

The dictionary defines integrity as, “The quality of possessing and steadfastly adhering to high moral principles or professional standards”. To me this basically means doing what’s right in all situations, no matter what the consequences. Integrity refers to the quality of a person's character, but it cannot simply be something you tell people you have, integrity must be proven.

A good example is when a friend or past client refers a potential client to me and they tell them I’m a Christian or that I’m the Chairman of the Deacons for Northland Baptist Church. Don’t get me wrong, I do understand why they’re telling them this. It’s because they assume someone in this position would have a great deal of integrity, but one may acknowledge a person to have integrity yet that person may hold importantly mistaken moral views. What they’re really saying is that I have the same “moral” views that they associate with integrity so even though this person may have just met me for the first time, knowing what I hold true morally can be translated as integrity unless I prove otherwise.

EXPERIENCE:

Whenever someone talks about experience, it reminds me of my very first real estate transaction with two out of town buyers. These were seasoned home buyers and I was petrified of the moment they would ask me that dreaded question, “So how long have you been in real estate, Ron?” To my utter amazement, that question never did come. On the day of their closing they told the closing agent I was “the very best Realtor they’d ever worked with”.

After some time has now passed, I’ve come to realize that experience comes in many forms and isn’t always measured by the years you’ve been in the business. I’ve met many, many agents that have spent quite a few years in real estate, yet I still wouldn’t call them experienced. Because I pre-planned every single detail with that first client, they simply considered me an experienced agent and therefore never felt the need to question it.

When most buyers and sellers say they want an experienced agent working for them, what they’re really saying is someone that has made a lot of mistakes and learned from them before getting to us. They also may not realize that experience doesn’t necessarily mean the smartest person in the business, but that you probably know who to call when a situation does arise. For me, having a large business card file for my trusted vendors is a good example of experience. I may not know everything there is to know about Heating and Cooling systems, but if the inspection shows there may be an issue, my “experience” tells me that Chad Shanks Heating & Cooling is the one to call.

I often find that buyers and sellers don’t realize how important it is to work with an experienced agent until they actually get to work with one that is. My clients are amazed at all the little things that can go wrong with buying or selling a home, but they tell me they didn’t feel any pressure because they trusted I knew what I was doing and would take care of them. That’s what experience can do for you. I never get tired of hearing them tell me after the closing, “how easy that was” or “how much they’ve enjoyed working with me throughout the entire process”.

Maybe I should put these words on the back of my business card. “Honesty, Integrity and Experience” I like the sound of that!

Top 7 Tips for First Time Homebuyers

Purchasing your first home is a big step, that comes with some very serious decisions. Many homebuyers are intimidated by the process, and continue renting much longer than they should, or need to. However, if you break the homebuying process down into these simple steps, and follow these important tips, you will find the process less intimidating, and much more manageable.

1) Before You Begin, Ask Yourself One Question

Will you live in your next home for at least 3 years? If the answer is "Yes," you should probably purchase, rather than continue renting. With average appreciation, you'll break even on your closing costs after 2 years, and start making money at year three. Every year after that will put more money in your pocket! The most expensive aspect of real estate is buying & selling, so the longer you can live in the home the better. However, purchasing makes sense if you can make as little as a 36 month commitment.

2) You Don't Need a Down Payment!

It always surprises me how many people want to purchase a home, but don't because they believe that a hefty down payment is required. Zero down programs are very common, and are quickly becoming the norm, rather than the exception to the rule. Because your new home is collateral for the loan, there are many banks that will jump at the chance to loan you 100% of its value. Perfect credit isn't a requirement, either. Because real estate typically appreciates in value, it's often easier to be approved for a 100% mortgage than it is to borrow 100% for a car!

3) Get Pre-Qualified

Pre-qualification is a very important step, and the step that first time home buyers dread the most. Qualifying to buy a home is pretty easy and requires relatively little work for you. Pre-qualification is what gives you buying power and allows you to make an offer on your dream home when you've found it. More importantly, pre-qualification will let you know how much your new home will REALLY cost - in monthly payments. A $150,000 or $300,000 home doesn't mean a lot to most buyers - but $1200 per month and $2500 per month are tangibles that everyone can understand. After your lender pre-qualifies you, ask them for a "payment table" that shows you a rough estimate of TOTAL monthly payment based on purchase price. Pick your payment, and you know the price range to shop in.

4) Consult a Real Estate Professional ASAP

Many first time home buyers avoid contacting a Real Estate Agent because they dislike high pressure sales. However, Real Estate Agents have an advantage over traditional salespeople because they have access to the Multiple Listing Service, which is a database that lists roughly 99% of the homes for sale in a given market. This means that your Real Estate Agent doesn't have to sell - he/she merely presents your options. The most important qualities to look for in your Real Estate Agent are his/her knowledge of your specific market and their willingness to help. Interview a few agents and choose one that will help guide you through the process. You'll find the help & insight will be invaluable - and you'll be glad you contacted your Real Estate Agent sooner, rather than later.

5) Make a List of "Must Haves" & "Wants"

Many new home buyers mistakenly think that they will "just know" when they "walk into the one." While some buyers DO fall instantly in love with a home, this is not the norm. You'll find your search is easier, and you will be more confident in your decision, if you take a systematic approach to your search. The best way to organize your search is to make two lists: Your "must haves" and your "wants." Your "must haves" are the absolute necessities in your new home - in fact, you don't even need to view a home if it doesn't have every "must have." Great examples of your "must haves" are price, school district, size, etc... Your "wants" are the qualities that you would like for your new home to have, but it's not a necessity. Great examples of "wants" are color, flooring, kitchen appliances, surround sound, and type of exterior. By taking the time to articulate what you need and want in your new home, you will know exactly what to look for when viewing prospective homes.

6) Pick Your Favorite Neighborhoods

You can always make changes to your house, but you can never change its location. Most home buyers already have a good idea of where they would like to live because of school districts, work, or other factors. However, neighborhoods can be pretty different, even in the same area of the city. Ask your Real Estate Agent to email you a list of homes in the specific area of town you're interested in. Take a drive through the different neighborhoods on the list your Real Estate Agent sends you, and choose your favorites. Pay attention to area amenities, how well the yards & common areas are kept, and if you see a lot of "for lease" signs - which can be an indication of a heavy rental area, and lacking in "pride of ownership." After you have picked your favorite neighborhoods, and you know your "must haves" and "wants," you can literally make a list of EVERY home available that meets your criteria, and view those homes.

7) Make Your Decision!!!

Homebuyers often hesitate after they've found the right home because they're not confident about their decision, or their decision-making process. Your home is probably the largest investment of your life, and it's normal to feel butterflies in your stomach before putting your first home under contract. However, if you do your due diligence - and you have if you followed the steps above - then you will have your bases covered. If you've found a home that meets all of your "must haves," most of your "wants," is in the right neighborhood, and in your budget - it's the home for you! Don't wait and let another buyer take YOUR home!

Buying your first home can seem very intimidating, but can be extremely exciting. If you think that buying a home is right for you, it probably is. Make sure and follow these important tips and you'll know you made the right decision when you find your first home.

An Experienced Realtor can actually SAVE you money!

Just yesterday we closed on a home for one of my clients.  During the process we used my home inspector, David Moore of Advantage Property Inspections www.YourInspectionCompany.com .  David did a fantastic job of inspecting the entire home top to bottom and during the inspection he performed a carbon monoxide test on the furnace. Not all inspectors will go to this extent during the inspection but mine does and that’s one of the many reasons why I use him.

Upon performing this test, he found elevated levels of carbon monoxide and noted that the furnace should be checked out by a certified heating and cooling technician. In writing this up on what’s called the Resolution addendum, I indicated that the buyers wanted the full system checked thoroughly and repaired in necessary.

You see, as a real estate agent, I consider it my duty to know some things about a house.  I feel the need to educate myself with the systems and structure so that I’ll know and understand what’s going on. Not all Realtors feel this way though.

I certainly don’t know everything about the inner workings of a furnace and all the various manufacturers, but I do know that when a furnace is turn on and heated up, the Heat Exchanger, being made of metal, expands. Then when the system is turned off, the heat exchanger cools down again. All this heating and cooling weakens the metal over time.

Have you ever tried to bend a thin piece of metal?  At first it’s very ridged, then as you bend it a little more and a little more it starts to bend much easier and eventually it forms a crack and then breaks. Well that’s pretty much what had happened with this furnace in this house. 

Anyway, after submitting the Resolution Addendum to the sellers agent asking this issue to be fixed, the seller’s agent told me they just had the furnace serviced three months ago and the sellers didn’t want to pay to have someone come out and check it over again.  I told them we considered this a safety issue and simply wanted them to have someone come out and sign off on it. As it turns out, the heat exchanger was in fact cracked and since the sellers had signed off
on the Resolution Addendum and agreed to service and repair anything on the furnace that might be an issue, my client received a brand new $1,500 furnace.

Keep in mind, not all agents would know about this type of thing and may have simply encouraged their buyers to not worry about it and unknowingly cost their buyers that $1,500 instead.