Kansas City North Real Estate Blog

New Home Construction in the Kansas City area

The U.S. population continues to increase. Annual household growth is expected to rise by an average of more than 1.5 million for the 2009 to 2012 period. Affordability is at its highest levels since the 1970s. Mortgage rates are lower than when even our grandfathers would remember.

But there's a serious threat right now to meeting future demand. In many markets, the collar has rapidly tightened on builders who've been looking to fund their next project. Home builders who do find the bank or private or institutional equity source that will talk with them are encountering new, different and more stringent requirements: — more cash equity, additional collateral, guarantor support, additional loan fees, higher interest rates or higher returns.

Specifically, in the Clay County, Missouri area in 2006 there were 749 new construction homes sold. In 2009 that number had dwindled all the way down to 307 new construction homes sold. Oh sure, a good case could be made because the market is down, but in 2008 and 2009 many of the home builders were having a very difficult time arranging financing.  This is ultimately what drove them out of the business or put them under!

As we move into 2010, there are only a handful of builders that have survived and they’re simply not able to keep up with demand. The chart below shows the steep decline in New Homes availability in the Kansas City area.

 If you currently own a home right now, this could actually be good news for the value of your home.  Since there are fewer new homes available in Kansas City, more buyers will be forced to purchase a "resale" home when they're ready to buy. In previous years, if you owned a home in certain price ranges you were competing directly with new home builders in Kansas City. This new home construction depressed the sales value of resales. 

I personally work with several Kansas City home builders and because of these shortages in inventory, they're seeing huge increases in the showing activity of their current spec homes. I'm also seeing several of them begin to actually raise their home prices or at least hold tight to their asking price. Uneducated buyers still think builders should be willing to negotiate and are shocked when the builder counters with a full price offer and won't bow to their other demands, but they don't understand it's simple economics of supply and demand.  When supply is short and demand is high, prices will begin to rise and the builder is holding the better hand.

The biggest problem for selling new construction homes is that here in Kansas City we're used to driving around to several new homes communities and personally touring 8-12 homes per subdivision.  That's just not possible now. Many builders that had 3-5 spec homes per subdivision, now only have one home they use as the model.  If buyers can't see what the home looks like finished, they're not interested. We've become an instant society and buyers want it now. They're not willing to wait 6 months to get the home of their dreams.

The biggest problem for builders is getting financing. Many of them are actually limited, not by the number of homes they can sell, but by the number of homes they can build at one time.  Banks will actually put a limit on the number of loans they'll do for one builder to limit their risk, but because they're limiting them, it makes it much harder to make a respectable living building homes.  It's a catch 22.

It will be interesting to see what happens as we move into the Spring of 1020 in Kansas City. 

How to Choose a Great Kansas City Listing Agent

How to Choose a Great Listing Agent

Ask these 10 questions to find the best professional to sell your property.

By Jennie Phipps, FrontDoor.com 

The world is full of people who sell real estate. Some of them are smart, efficient, focused, versatile and willing to go the extra mile. And some of them aren't.

Finding an agent who will sell your home using a range of marketing tools to get you the best deal possible in a reasonable amount of time, all while charging a fair rate, takes some effort. Interview at least three candidates before you sign a contract.

Here, thanks to Alison Rogers, author of Diary of a Real Estate Rookie, and a practitioner in New York City, are 10 questions you really want to ask so you can identify the best real estate agent to sell your property.

1. How much? Ask potential agents how much they think they can sell your home for. If two agents say $600,000 and the third says $700,000, think hard. It's likely the high bid is an exaggeration to attract your business. In the trade it's known as buying a listing. In the end, you'll be the one who pays because the high price will scare away potential buyers before you inevitably drop the price.
2. How will you market it? Running a few classified ads in the local paper, listing it on the Internet and holding an open house shouldn't be the only answers. The practitioner should be able to talk about what kinds of people are likely buyers and how he will reach out to those specific people.
3. How has your business changed in the last five years? If she doesn't talk about website tours and smart phones, chances are this is not a highly wired agent. While Luddites can still sell houses, it is getting harder. And if this is one of those people who doesn't even use e-mail, you're letting yourself in for unnecessary aggravation. And you may cut yourself off from opportunities.
4. Tell me how your last two deals surprised you? Every agent has a success story, but this question will give you a much better feel for what this practitioner is like as a salesperson.
5. What's your specialty? If you're selling a starter home in a community full of young families, hiring an agent who specializes in seniors is probably a bad idea. It doesn't mean that if he only sells condos that he can't sell a house, but he may not be geared up to do the best job.
6. How many people are you selling homes for right now and what are you doing for them? It may not be a bad thing that a high-powered agent is juggling 15 homes, but don't expert her to give you personal service, although her assistant should be attentive. On the other hand, be wary of an agent with no other customers because she may lack experience and contacts.
7. What do you expect of me? A good salesperson will have expectations. He may want you to leave and take the dog when the house is shown, paint the garage, move some furniture around and scrub the tile in the bathroom. It shows that he can think like a buyer and that's a good thing.
8. What advice would you have for me if I get an offer from a buyer who wants to use an FHA loan? It wasn't very long ago when the right answer might be run the other way, but these days government-guaranteed financing from the Federal Housing Administration, the Department of Veterans Affairs and state and locally managed loan assistance programs can be key to selling a property. Real estate

via www.frontdoor.com

Brooklyn Highlands, Kansas City North Real Estate

Home for sale in Brooklyn Highlands subdivision, Kansas City MO. 

 

Open Floor Plan w/Finished Basement! Large Kitchen w/Abundance of Cabinets & Counter Space, Custom Tile Backsplash & Wood Floor. Impressive Master Suite w/ Custom Trim, Large Walk-in Closet & Whirlpool tub, Double Vanity, Bedroom Level Laundry, Hi-Efficiency Furnace, Humidifier, Deck & Extra Deep 3 Car Garage. 4th bed or home office in lower level.  Seller has just recently finished the lower level to include beautiful family room with custom built-ins, a possible 4th bedroom or home office, and a full 3rd bathroom. Sellers own a tile and flooring store in the Northland so 3rd bedroom can be changed out to carpet if the buyers would like.  Staley High School, New Mark Middle School, and Northview Elementary.

To see this beautiful home for sale in the Kansas City North area, call Ron Henderson, Keller Williams  Northland Partners (816) 651-9001

Realtors Strive to Reduce Stress in Short Sale Transactions

According to the most recent Realtors® Confidence Index, buyers continue to be discouraged with the extended short sale process, resulting in foreclosures that could have been prevented. New resources from the National Association of Realtors® aim to help Realtors® and consumers successfully navigate the short sale process to help more homeowners avoid foreclosure.

“Our members report that short sales are often riddled with delays and red tape,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “As the first, best source for real estate information, Realtors® are dedicated to help streamline and improve the short sale process for both buyers and sellers.

via www.realtor.org

I would certainly agree with the frustrations over the amount of time it takes to get a short sale approved. Some of the lenders I've worked with jump on board relatively quickly, but others like Bank of America can drag out 6-12 months.

I think I've been more successful than most, but I've had 3 short sales this last year that ended up going into foreclosure. Honestly though, all three sellers simply waited too long before contacting me. When your already 6 months late on your payments and they're sending you a final notice of sale (via certified letter) it's much harder to stop the foreclosure at that point.

Short Sale in Kansas City, KS - Piper Estates Home for Sale

Almost 2 acres on large corner lot! Open Ranch w/large kitchen & breakfast nook. Gorgeous oak cabs, Andersen & Pella Windows & Doors, 6-panel stained doors, huge pantry and large island. Large walkout basement ready to finish. Beautiful and private views from the large deck in back. One year old roof. Custom marble in master bath. Slate Tile entry.

"the sale of this home is contingent upon the seller receiving an acceptance from all lien holders - property is being sold "As-Is" - Short Sale Disclosures must be signed and accompany all offers" FOR MORE INFORMATION ON THIS HOME OR IF YOU ARE CURIOUS ABOUT HOW A SHORT SALE  WORKS, PLEASE CALL RON HENDERSON, KELLER WILLIAMS REALTY AT (816) 651-9001.

GORGEOUS STALEY FARMS HOME WITH BEAUTIFUL IN-GROUND POOL!

GORGEOUS STALEY FARMS HOME WITH BEAUTIFUL IN-GROUND POOL!! Prestigious JOHN LOBER home backs to 16th fairway of golf course. Large Kitchen/Hearth Room features granite counter- tops, an abundance of cabinets & big walk-in pantry. Walk out lower level with Rec Room and Media Room with wet bar + tons of storage. Large master suite. ALL THE UPGRADES!!

 

For more information about this beautiful home or any other homes in Staley Farms, please call RON HENDERSON, KELLER WILLIAMS REALTY (816) 651-9001.