Kansas City North Real Estate Blog

KANSAS CITY: existing home sales recover

The Kansas City real estate market is divided by the Kansas-Missouri state line, but it functions as a single housing market. So the figures here, from the Kansas City Regional Association of Realtors, include sales from both sides of the border.

The market seems to be recovering from a bottom it hit in January. The Kansas City metro area, with a population of about 1.97 million, never experienced the torrid sales pace that much of the East and West Coasts did during the recent housing boom. Sales did hit a cyclical peak last June but then fell. Sales have risen for the past four months. And sales of existing homes were up 1% in April compared with April last year, though the average price fell about 1%.

For newly built homes, sales were down 18% in April compared with April 2006, but the average price rose nearly 7% to $282,990.

"We had a little optimistic building" by developers, says Diane Ruggiero, CEO of the local association of Realtors. There was a 10.4-month supply of new homes on the market in April, down from the peak of 15.9 months at the start of the year. For existing homes, there was a 6.8-month supply, up from March but down from an 8.6-month inventory in January.

"There are two differences in our market than (five years ago)," Ruggiero says. "One is bigger inventory, two is more agents. In 2001, we had 6,500 agents in this region. Now, we have a little over 10,000. There's a huge growth in the number of people coming into the business."

Avoiding Bankruptcy in your Retirement Years

With U.S. bankruptcy filings up more than 40% this year, Americans 62 years old and older should realize they may be able to avoid bankruptcy by applying for a reverse mortgage loan.

Many people filing for bankruptcy have experienced a major health crisis or have suffered a life-changing event, such as job loss or divorce. Properly utilizing the equity in a home can give people age 62 or older the funds needed to pay their bills during one of these difficult periods and avoid bankruptcy.

“People should consider their options carefully before securing a reverse mortgage,” said Doug Erickson, director of partner relations for Consumer Credit Counseling Service (CCCS) of Greater Atlanta. “In addition to obtaining reverse mortgage counseling from an independent and accredited counseling agency, a good financial advisor can help people weigh all of the information before deciding how best to proceed.”

A reverse mortgage is a loan that allows a homeowner to convert the equity in their home into tax-free income without having to sell the home, give up the title, or take on a new or additional monthly payment. Instead of making payments to a lender each month, the lender makes payments to the homeowner.

For some seniors, a reverse mortgage may be a better option than a home equity loan. However, some reverse mortgage loans have interest rates that are higher than regular fixed-rate mortgage loans, and lenders may charge points and other fees. A certified reverse mortgage counselor can help you evaluate those options.

You must be 62 years of age or older to be eligible for a reverse mortgage. You should also have a significant amount of equity in your home and the home must be in reasonably good condition. Although income and credit history are not considered in securing a reverse mortgage, CCCS believes it is critical for homeowners to review both items. Reverse mortgage clients need to develop effective budgeting skills to meet periodic expenses, such as property taxes and homeowners insurance.

Early warning signs of serious financial problems can include late or missed payments for more than one month, credit cards that are maxed out, and making only minimum payments on credit cards and other unsecured debts.

“While bankruptcy may be the only choice for many consumers, there are viable alternatives for some seniors,” said Erickson. “The decision to file for bankruptcy is definitely an opportunity to get a new start, but it also has long-term implications and consumers need to clearly understand them.”

If you'd like to know more about Reverse Mortgages and how they may benefit you, please call Ron Henderson at (816) 651-9001 or to speak with a trusted investment advisor, click here http://www.clayandplatte.com/content/partner.html?prtnrid=1306630

How to find a Professional Roofing Contractor

Kansas City homeowners owners looking to repair or replace their damaged roof systems should heed this important advice: Insist on a professional. The National Roofing Contractors Association can help you find a professional roofing contractor in your area. Here are some valuable guidelines to help you in your decision:Check for a permanent place of business and telephone, tax I.D. and Missouri roofing contractor’s license numbers.

Insist on seeing copies of the contractor’s liability and workers’ compensation insurance certificates. Make sure the coverages are in effect through the duration of the job.

Look for a company with a proven track record that readily offers client references and a list of completed projects. Call these clients to find out whether they were satisfied.

Insist on a written proposal and examine it for complete descriptions of the work and specifications, including approximate starting and completion dates and payment procedures.

Check to see if the contractor is a member of any local, state, regional or national industry associations, such as the Midwest Roofing Contractors Association and NRCA.

Call your local Better Business Bureau to check for any complaints that have been filed.
Have the contractor explain his project supervision and quality-control procedures.

Request the name of the person who will be in charge, how many workers will be required and the estimated time of completion.

Carefully read and understand any roofing warranty offered and watch for provisions that would void it. Keep a healthy skepticism about the lowest bid. If it sounds too good to be true, it probably is. Remember, price is only one criterion for selecting a roofing contractor. Professionalism and quality workmanship also should weigh heavily on your decision.

For more information, visit www.nrca.net.

Staging for the Holidays

   This is an article from my good friend and professional home stager, Sue Shores.  She's wonderful.  Thanks for the helpful tips Sue!

The holidays are just around the corner..how can we miss it with all the commercials.  Yeah! What a time to decorate..wait a minute, put the breaks on your decorating sled..your house is designed to sell the house, not the decor. 

Tips to simplify your decorating (also known as decorating for the holidays without overwhelming that buyer that walks in the door)



1.      When you place a holiday item, ALWAYS remove an existing decorative item.  Never just add without removing first! 

2.      Do not display an entire collection, pick one to 3 items and group them together. 

3.      Hold on to the garland this year..try simply twisting it around the posts instead of displaying it on the entire staircase.  We want the buyer to see the staircase, fireplace, front door, porch posts.. 

4.      Christmas tree..maybe this year, go for the small version, remove a chair or table to make room.  Remember to keep the furniture placed to show traffic flow and function. 

5.      Stick to 2 complimentary colors with your decor.  We want to go calming on the eyes and possibly colors that work with your current decor. 

6.      Scented items are great for the holidays, keep it simple, scented candles can be overwhelming..try using one scent.. clove, cinnamon, or of course, evergreen just to name a few.

7.      Finish the marketing concept with your wrapping paper as well.  Colors that blend, with the decor..an inexpensive idea is white/cream paper with 1 or 2 ribbon/bow colors 

8.      As always, the entry needs to remain open, the windows not cluttered and covered up with decor. 

9.      Ice and snow, oh no..keep in mind to clear your walks, you don't want the buyer to drive by because they don't want to get their shoes snowy!!  Also, safety first!! 

10. Enjoy your holidays, you may like the simplicity of just a few items being displayed this year.  Keeping it simple can actually be a relief! 




Sue Shores
Changeit Room Redesigns Home Staging
"Creating homes you'll love to come home to"
816-584-1393
http://www.changeitkc.com

Procuring Cause... or How I Almost Lost a Sale

This last weekend I went to a family gathering with my wife's family. One of her relatives that I hadn't seen in a while was there and mentioned they were most likely going to sell their current home and move this next summer. I asked them where they were thinking they'd like to live and he mentioned they'd been looking at a beautiful new community called Seven Bridges in Platte City, MO.

Realizing that the Fall Homes Tour was going on just last month, I assumed that they'd been browsing around at different communities and simply looking at homes. "Actually" he said, "We've been out there two times and have chosen two homes we really like".

Knowing that they may have already spoken to the listing agents one too many times, I asked them if they'd ever thought to give me a call so I could go out there with them (since I'm 100% sure they would want me to represent them) and he said to me, "Well we were just looking at the homes and didn't want to bother you yet. We certainly would call you when we're ready to start negotiations in the Spring".

I asked him if he'd ever heard the term "procuring cause", but of course that's a real estate term that the general public wouldn't know about. I explained to both of them, "Procuring Cause is a real estate term that basically means 'the uninterrupted series of causal events which results in the successful transaction.' Of course I realize that's not the NAR official statement, but I read it somewhere and thought it was a little more basic terminology.

I explained a little further by telling them, "You have been out to this community twice, you've probably spoken with the listing agent both times, and she's most likely learned a little more about you and directed you in some way. If you've signed in during an open house tour, called a real estate agent for information about a property listing, toured one or more homes with one or more salesperson's, or provided your e-mail address over the Internet to receive property listing updates, you enter a gray area that may cause me to be left out of this transaction and not able to properly represent you.

This is a very typical situation that we deal with in real estate and since I am both a listing agent and a buyers agent, I can certainly sympathize with both sides of the debate. My client didn't realize that what they were doing might be a risk to their future opportunity to be represented by the agent of their choice.

Now that I've explained this to them they've agreed that it might be in their future best interest to call me the next time they decide to go look at more homes, even if they're "just looking".