Kansas City North Real Estate Blog

12 Tips for a Mold Free Home

Follow these suggestions to keep mold from growing in your home:

1. Check the exterior of your home regularly for accumulation of ground water.
2. If you ever see bubbling or dampness in a wall, get the wall opened to see what's causing it.
   
3. If your house sits above a foundation and there's a heavy rain, put electric fans under the house to dry the ground.
4. Fix leaky faucets, pipes and other leaks as soon as you find them.
5. Have your heating and air conditioning system serviced each year.
6. Clean and dry out wet or damp areas within 48 hours.
7. Keep indoor humidity below 60 percent by venting bathrooms and dryers to the outside, using air conditioners and dehumidifiers, using exhaust fans or opening windows when cooking, washing dishes or cleaning, and increasing ventilation.
8. If you have a leak that saturates carpet, ceiling tiles or upholstery, remove them.
9. Use paint that has an EPA-approved mold inhibitor.
10. Clean kitchens and bathrooms with mold-killing cleaners.
11. Don't carpet bathrooms.
12. Don't put vinyl wallpaper on walls that are at risk of sustaining water damage. 

If you are concerned about mold in your home or for additional information on this subject, give Ron Henderson a call at 816-651-9001 and he will put you in touch with the right company for a further evaluation.

Do's and Don'ts of Foreclosure

Dear Real Estate Adviser,
I just received a notice of default letter from my mortgage lender that says my house will go to auction sale in four months. Can I still sell my house before this happens? What are my other options?
-- Sue

Dear Sue,
It appears that you are right in the beginning of the foreclosure process, but as long as the house is still in your name you can save it. While you need to be careful, you also need to act quickly. Four months can seem like a long time but it can go by in a flash. So let's get right down to what your options are.

1. Sell the property. 2. Work out a deal. 3. Refinance with a subprime lender. 4. File Chapter 7 bankruptcy. 5. File Chapter 13 bankruptcy. 6. Short sale/deed in lieu of foreclosure. 7. Walk away from the house.

1. Sell the property: If you can find a buyer before the house is auctioned, you can sell it and keep whatever equity still exists.

2. Work out a deal: Your lender may be willing to work with you, rather than lose money at a foreclosure sale.

3. Refinance with a subprime lender: Your credit is poor right now because of the mortgage delinquencies. This means most or all of the traditional banks will not work with you. However, if there is equity in the property, you may be able to find a lender who will refinance you -- at a higher-than-normal rate. These are called subprime loans, and they're increasingly common: About 20 percent of mortgages today are subprime.

4. File Chapter 7 bankruptcy: If you can't get caught up in time, you will not be able to keep the house -- but you'll generally be able to delay the foreclosure sale a month or even several months. Any remaining debt to the lender will be wiped out.

5. File Chapter 13 bankruptcy: If you can afford to make the future mortgage payments and the delinquent payments, too, file for a Chapter 13 bankruptcy. This is different than Chapter 7, in which assets are liquidated but debts are wiped clean. With Chapter 13, you keep your assets and, under court supervision, you repay your debts under a three-to-five-year plan.

6. Short sale/deed in lieu of foreclosure: A short sale takes place when the bank allows you to sell your property even though their mortgage won't be paid. Be careful -- the bank may allow the sale to go through, but only on the condition that you repay the deficiency. In a deed in lieu of foreclosure, the property is signed over to the bank in exchange for the bank giving up its rights against you. When might a bank agree to either of these? Lenders spend close to or more than $30,000 to foreclose on a property. Most lenders will consider these options to avoid foreclosure costs.

7. Walk away from the house: Pack your things and leave. The only issue remaining is whether your lender can sue you for any deficiency still owed after the sale, and that depends on the state you live in and the type of mortgage you have. You'd be wise to speak to an attorney before taking this step.

Any sale or transfer of property has tax consequences, including a foreclosure sale or a deed in lieu of foreclosure. Seeing an accountant is probably a good idea, as well.

Here are two options NOT to consider. In other words, they're scams.

1. Signing over your property title to another company: Some companies say that after the mortgage is current they will re-sign the property back over to you. This rarely happens. Instead, the company is likely to pull out equity, not make any mortgage payments and allow the property to be foreclosed. You will not be able to save the property from future foreclosures because the property is no longer in your name. 2. High-interest second mortgage: When a property has equity, there are companies that will give you a second mortgage, in an amount as high as 70 percent of the equity available. The interest rate could be as high as 18 percent and the fees can be exorbitant. They are hoping that you'll blow the money and default -- which allows them to take the property from you.

Sue, you have options, but you need to avoid the scams and act quickly if you want to have the best outcome. Delaying only makes foreclosure inevitable.

Seven Bridges in Platte City

Last month I had the opportunity to help one of my clients purchase a beautiful home in Seven Bridges located in Platte City, Missouri.

I really hadn't been to Seven Bridges before, but I'd heard some nice things about it and thought I should drive up there and check it out. This client was in an upper bracket price range and wanted something a little different. After taking one afternoon to preview some of the models up there, I advised my client that I thought this might be the subdivion they were looking for.

The homes in Seven Bridges range in price from $300,000 to $600,000 but with this price range comes an unbelieveable community comprised of bridges, waterfalls, small lakes and walking trails. The community center and it's pool are like none I've ever seen before.  The community center alone is why this subdivision should be seriously considered when purchasing a home in this price range. It's got a game room, full sized indoor basketball court, a very large dining hall with chef quality kitchen, a library, billiards room, and several seating arrangements in front of a massive stone fireplace. Needless to say, it's a very impressive building and certainly worth a tour while you're there.

Seven Bridges
Range: $300 and up.
N Hwy, south of 136th Street
Platte City, MO 64079

Description:
Platte County’s newest upscale community. Features include a large clubhouse, walking trails, bridges and ponds galore. A wonderful place to call home. The Vineyards at Seven Bridges have homes starting at $400,000; the Orchards at Seven Bridges have homes starting in the $300,000’s.

Driving Directions:
I-29 North, past the airport, to I-435 West. Exit off I-435 onto 120th Street. Turn right (west) onto 120th Street. Continue on 120th Street to N Hwy. Turn right on N Hwy, continue to Seven Bridges Road, turn left. Continue through turn about, past the clubhouse, to the Sales Office.

If you're interesting in getting more information about Seven Bridges or possibly view a few of their 14 model homes, please give Ron Henderson at call at (816) 651-9001.

The 7 Deadly Buyer Objections

When buyers walk through a home for the first time, unknowingly they look for the negatives, the reasons they can eliminate a home from consideration. Even the smallest flaw in your home can be seen as a much bigger problem than what it really is. A classic example of this is a ceiling stain.

Countless times over the years as I've walked a buyer through a home they have looked up and noticed a stain on the ceiling. Inevitably they will point up and say something to the effect of "Uh-oh, look at that." Translated, "Scratch this home off the list."

Now a ceiling stain is definitely something to be concerned with as it might indicate that the roof is leaking, or the gutter system is failing, but in the vast majority of these cases what has happened is that there was a previous problem that has since been fixed. The problem is the homeowner didn't take the next step and repair or repaint the ceiling. To be clear this is not a matter of hiding a problem as most states require that homeowners disclose any known defects in a home with a standard disclosure statement. Instead this boils down to a buyer's over zealous imagination. Once they see that stain, they picture the whole attic full of water, a gaping hole in the center of the roof, and rain clouds on the horizon.

Buyers horriblize problems.

Now it might be natural to think that a real estate agents job is to convince a buyer to overlook these small flaws. Wrong. A listing agent's job is to expose a home to the maximum number of buyers through marketing and promotion, and one inescapable truth in marketing is that top condition equals top dollar, and less than top condition equals less than top dollar. When a home has flaws one of two things has to happen - either the sellers will have to pay a buyer to ignore them by reducing their price or the seller will have to fix them.

So what areas of a home are buyers most concerned with? Let's take a look at the seven most deadly buyer objections.

Ceiling Stains

Since we already cracked the shell on this rotten egg let's deal with it first. If your home has any roof leaks, seeping around vents, chimneys, or additions, or if your home's gutter system is blocked or failing, these items must be fixed in order to secure top dollar. If you don't happen to be a licensed roofing contractor, it may be wise to have the work done by someone who can provide a certification that the work was done to local building code standards.

But as important as fixing the source of the problem is repairing any damage done inside of the home is just as important. These repairs could include new sheet rock, wood paneling, paint or wallpaper. Just be sure your repair fully matches the rest of the homes finish.

Kitchens

The kitchen is the center point of most homes, the hub around which the family wheel spins. It's no wonder then that a kitchen can make or break a home sale. While a buyer may be willing to overlook a small bedroom, or a missing closet, if a kitchen does not measure up to a buyers standards all bets are off. To improve your kitchen you may want to follow the advice of home improvement experts by looking at these top five ideas:

Top Five Kitchen Improvements Sinks and Faucets - Even the best quality sinks, and faucets can get beaten up over time. When it's time to sell it's a good idea to, at the very least, clean the faucets, re-caulk the sink, and if your sink is chipped take a trip to Home Depot for a low cost fix. If your sink or faucet is beyond repair it may be a great time to upgrade to a more modern sink system. Appliance Upgrade - Although not cheap, new or updated appliances can excite a buyer who may be leaving older appliances. In addition matching the appliances by color will provide continuity to the kitchen. Obviously small home appliances that are rarely used but take up counter space like bread makers and toaster ovens should be packed and stored. New or Refaced Cabinets - When selling many homeowners make the choice to invest in new cabinets or opt for the less expensive option of re-facing older cabinets. Re-facing cabinets means that you leave the cabinets in place but add a new veneer to the exterior. Can't decide what to do - replace or reface? Visit www.thisoldhouse.com for ways to make your decision easier. New Lighting - According to www.homefocused.com - "Bright, airy lighting makes working in the kitchen easier. Fluorescent lighting on the ceiling provides a bright, but soft light. Fluorescent lighting can also be installed under cabinets for task lighting, throwing light directly onto the countertop below them." New Counter Tops - A kitchen counter is the face of your kitchen, sure you can have the best cabinets, appliances, lighting, flooring, and paint but if the counter top doesn't hit a home run your still three bases short of a win. The counter top ties every piece of your kitchen together. Ask yourself - Do my counter tops live up to the rest of the kitchen, if not consider an upgrade. Also don't forget the back splash, a worn out back splash can make even the best counter tops seems dull or dated.

If you have the notion of going big by completely remodeling your kitchen, or perhaps building a new home from scratch to resell check out the top items buyers are looking for in a new kitchen.

• Upper End Appliances 65%
• Increased Pantry Space 64%
• Renewable Flooring 53%
• Wine Refrigerators/Storage 53%
• Integration with Living Space 53%
• Recycling Center 48%

** Based on 2006/2007 American Institute of Architects Poll

Declining Neighborhood

In a 2006 study of home buyers and sellers conducted by the National Association of REALTORS® it was found that buyers rated neighborhood quality as the number one factor in purchasing a home. So what if your neighborhood lacks a little (or a lot) to be desired? Check out this quick list of ideas compiled by Trish a REALTOR® from Mississippi:

Cleaning Up the Neighborhood Strike a Deal - If your neighbor's homes are dragging your listing down why not spring for a landscaper to give their yard a makeover? Why pay for a neighbors yard to be improved? So you can sell your home for top dollar! Call the City or Chamber of Commerce - Ask them if they are any neighborhood clean up programs available. Many volunteer organizations pick an area each month to clean or improve. Why not your neighborhood? Team Up - If there are other homeowners attempting to sell their homes in the neighborhood why not team up to tackle the problem? A combined effort over one weekend - picking up trash, cleaning out storm drains, or painting over graffiti could inspire others to follow your lead.

Age of home

Because many buyers perceive an older home to be a potential money pit some sellers find it wise to invest in minor home improvement projects. For instance many sellers replace their cabinet hardware with updated styles. The same is true of lighting fixtures, and even plumbing fixtures. For bigger projects sellers have been known to replace windows, front doors, appliances, and even garage doors to update a homes appearance.

Bathrooms

Your bathroom is about to have a top to bottom inspection so be sure to re-caulk around the tub and toilet, replace rusted or worn out fixtures, and remove all of the unnecessary items taking up space on the counter. The tub and shower are of critical concern, if they are chipped or damaged cancel your golf game and head down to your nearest hardware store. Buyers also hate to see leaking faucets, or drains that don't, you know drain, and don't be surprised if they flush the toilet to watch how fast the bowl refills.

If you plan to remodel or add a bathroom to your home check out this list of what home buyers want in a new bathroom:

• Radiant Heated Floors 62%
• Multi-Head Showers 62%
• Accessibility/Universal Design 48%
• Door-less Showers 47%
• Linen Closet Storage 36%

** Based on 2006/2007 American Institute of Architects Poll

Smells

If you are a smoker, who actually smokes in your home, be warned your home could take a lot longer to sell. Why? Only 25% of the American population smokes and of that group a big percentage don't smoke in their homes. Of course smells can come from other sources as well - cooking odors, oven fires, trash or compost, and one of the worst animal odors. To remove smells from your home you may find it worth the expense to have it cleaned professionally.  Also don't forget to have the carpet and rugs professionally steam cleaned. Whatever you do, don't try to cover up the oders by spraying room deoderizers throughout the house. This doesn't help and usually makes it worse.

Floor Coverings

Often the first item a buyer will notice when they step into your home is the floor coverings. Carpets that are in good condition, clean, and match the style of the home will add to a buyer's favorable first impression. On the other hand floor coverings that are worn, torn, dirty, or just plain ugly will turn off a buyer faster than a terrarium full of pet vipers (something I've actually seen in a buyer's home).

I know the argument - We don't want to pick a carpet the buyer won't like so will just let them do it after they move in. Come on, we both know this is really code for: "I don't want to spend money carpeting a home I'm about ready to sell." The problem is buyers are notoriously bad at visualizing a home in some future state of repair and they are even worse about buying a home that is not turn key ready. Because of this many sellers do their homework and find a floor covering company that will install new flooring but will also agree to wait 30, 60, or 90 days for payment. Best case the home sells before the bill comes due and the invoice gets paid in escrow worse case you get to enjoy new carpets and a new second mortgage.

To have your home evaluated by someone who can make some suggestions before putting it on the market, call Ron Henderson at 816-651-9001.

Working without a Realtor

I went to show one of my listings today to a buyer not working with a Realtor.  Of course my goal is primarily to sell her that house, but it is also to gain that buyer as a customer.  This buyer was different - she had done her homework, she knew the home values in that area, the recent sales and how long properties have been on the market, and she's even seen some of them to make a good comparison.

When I asked why she is not working with a Realtor, her answer was that she thought she would have a negotiating advantage if a second Realtor was not involved.

I've run into this before and it isn't certainly their fault, it's simply that no one has ever explained to them how this works.

You see, when someone signs a "listing agreement" with a Realtor, they're signing an exclusive contract to work with that Realtor in selling their home. This Realtor is called the "listing agent".  This contract spells out many different things, but one of the most important items is the agreed upon cost for these services of marketing and selling the home AND the "split" for this cost.  What's the split? 

Let's assume the seller agrees to pay the listing agent a commission equal to 6% of the total sales price. The "split" will be that part of the contract that says the listing agent will get 3% of the total sales price and the "buyers agent" will get 3% of the total sales price.  In essence, you are agreeing to pay two agents if necessary, each 3% of the total sales price. 

This is the reason you want to hire real estate agent in the first place.  By hiring one agent, you are in a sense hiring every single Realtor in your entire city.  They all have access to the local MLS and will be able to receive a commission on the sale of your home buy bringing in a qualified buyer.

But, back to todays buyer.  She's thinking that if she does not have a Realtor working for her, she will be able to negotiate a better deal because the seller will only have to pay the Listings Agents commission of 3% instead of the entire 6% commission.  NOT TRUE.

When you sign a listing agreement to sell your home, you are clearly agreeing to pay the WHOLE commission.  If there are two agents involved in the transaction (one for the seller and one for the buyer) then the commission is split according to the contract.  If the buyer walks in without a Realtor, then the Listing Agent will keep the ENTIRE full commission that was agreed upon. 

That's why it makes no sense to work without a Realtor representing you on the buyers side.  A qualified buyers agent will be much more equipped to negotiate for you and quite honestly, can probably negotiate a much better price. All this assumes you've done your homework and actually found a great Realtor to represent you, but that's another story all together.

For more information about this subject, or to talk to an experienced agent about representation, please contact Ron Henderson at Keller Williams Realty (816) 651-9001 or visit our website at http://www.clayandplatte.com

Banks Woo Borrowers Who Have Good Credit

Banks have plenty of money available for borrowers with great credit and a desire for a conventional fixed rate mortgage, says James Chessen, chief economist for the American Bankers Association.

To attract these customers, lenders are offering fee waivers, competitive interest rates, and a willingness to negotiate.

Banks like conventional borrowers because they tend to be the kind of customers that will take advantage of other products from the lender, including savings accounts, credit cards and checking accounts. "We find that someone who has a mortgage with us will have about five products in addition to the mortgage," says Terry Francisco, a spokesman for Bank of America Corp.

To attract this kind of business, Bank of America is offering "No Fee Mortgage Plus," saving consumers about $3,000 in closing costs, which the bank covers.

Deals like this one make it important for borrowers with good credit to shop around.

Source: The Wall Street Journal, Julian Mincer (09/06/2007)

Executive Home on 3 Acres