Kansas City North Real Estate Blog

Five Bad Home Improvement Ideas

When considering adding value to a home, you consistently hear from the real estate industry that updated bathrooms and quality kitchens stand out in a home sale. Those are proven sale closers. There are certain other improvements you can make to your home that will beautify it or create convenience for your family. When it comes time to selling, however, those improvements may do nothing to increase the value of the property and may even turn off potential homebuyers. 

Over-the-Top Renovations

Au contraire mon frère, not all renovations will raise the value of your home. Just `cause it's bigger doesn't mean it will be perceived as better by future homebuyers. Unless your home is located in Beverly Hills or some other very posh neighborhood, don't install the bathroom with the supersized steam shower, imported Italian marble and several different spray heads ... unless you have the money to do it for your own pleasure and enjoyment only. That kind of improvement doesn't typically do anything to increase the value of the average home. 

On the other hand, if you updated an old bathroom, you could see an increase of several thousand dollars to your home's bottom line. Real estate professionals suggest that homeowners pour over local home listings to see what amenities are the standard in your area, then upgrade your home to meet it. If you overdo it, however, you may not recoup your investment.

Swimming Pools

If you think installing a swimming pool in the back side of your home will draw hoards of homebuyers clamoring to make offers on your home at sale time, you'd be wrong. Some may consider it a perk, but others may perceive it as a pain with all the maintenance it will require.

Homeowners have even paid to have their swimming pools buried to create more yard space. If you shell out the expense to build one, don't expect your home's value to budge. The only exception to building a swimming pool is if you live in states where they are considered the norm. 

Home Office Renovations

Although, a home office is often an amenity appreciated by those shopping for a home, it should be built with frugality in mind. Overhauling an office doesn't pay off when it's time to sell your home. Don't steal usable space from another living area to create a home office. Instead, make sure the space can easily be converted back into a bedroom or other living space if needed. If you decide you just have to have the built-in Curly Maple wood shelves, know that you will only recoup around 50 percent of your cost at sale time.

Unique Builds

Home magazines are always coming up with clever and creative ways to change the look of your living space. Some are exotic and outlandish, but they can pique your interest. Tempted to put a classic disco ball with lights in your bedroom, a constellation ceiling in your family room or a peaceful Koi pond in your back yard? Avoid making outlandish changes to your home or changes that will be perceived as adding work for a future homeowner. Don't be tempted to incorporate these ideas into your own home, unless you don't plan on selling anytime soon. Homebuyers may not share your enthusiasm.

Roof Renovations

If your roof needs repair, don't hesitate to have the work done. It will be one less issue you'll have to deal with when listing your home. If in your pursuit to list your home you think replacing your roof with cedar shakes or clay tiles will increase the value, think again. Although they have the ability to make your home stand out, they probably won't inspire homebuyers to pay more for them. So, unless you have the money to burn, keep it simple when preparing your home to be listed on the real estate market.

via www.brokeragentsocial.com

Home Prices Gain in 91 U.S. Cities

May 11 (Bloomberg) -- Home prices rose in 91 U.S. cities in the first quarter as states hard hit by foreclosures began to recover and a tax credit cut the number of properties for sale.

The median price of a single-family home sold in Saginaw, Michigan, doubled to $60,800, the Chicago-based National Association of Realtors said in a report today. Prices in Akron, Ohio, climbed 90 percent to $95,300 and Grand Rapids, Michigan, recorded a 26 percent increase to $90,700. Nationally, the median declined 0.7 percent.

Cities that led the nation in foreclosures a year earlier had the biggest price increases as a tax credit of as much as $8,000 boosted demand and drove the supply of unsold homes to a four-year low in January, according to Lawrence Yun, chief economist for the Realtors’ group. Brian Bethune, chief U.S. financial economist for IHS Global Insight, said an improving job market should sustain the fledgling rebound in real estate.

“In the second half of the year, employment growth and an improving economic situation should keep the housing recovery on track,” Bethune said in a telephone interview from his Lexington, Massachusetts, office.

Today’s report showed the recovery accelerating from the fourth quarter when 67 metropolitan areas reported price gains.

Peak to Trough

The U.S. median home price tumbled 29 percent over three and a half years as defaults among subprime borrowers flooded the housing market with cheaply priced foreclosures and Wall Street piled up $1.78 trillion in losses and asset writedowns.

The median price of an existing U.S. home peaked at $230,300 in July of 2006 and hit a low of $164,600 in February, according to NAR data. The drop was 13 percent in 2009, outpacing 2008’s 9.5 percent decline.

This year, prices may increase 2.5 percent as the economy improves, according to the Realtors’ forecast.

The median price of a single-family home in the New York metropolitan area rose 1.8 percent to $380,400 in the three months ended March 31. The areas surrounding New Haven and Milford, Connecticut, gained 5.3 percent to $227,900.

The Edison, New Jersey, region had a 1.5 percent gain in the median price to $325,800; and Hartford, Connecticut, posted a 1.6 percent increase to $225,900. Prices in the Boston metropolitan area increased 11 percent to $321,800.

“The market has changed dramatically from last year, with things now selling fairly quickly at close to asking price,” said Mary Kelleher, a real estate broker with Gibson Sotheby’s International Realty in Boston. “Last year was like having root canal surgery.”

Worst Markets

The worst-performing markets were Ocala and Orlando, Florida, each with price declines of 15 percent. Reno, Nevada, fell 14 percent and Las Vegas was down 12 percent.

via www.businessweek.com

THIS IS OLD NEWS TO US REALTORS. SOME PEOPLE ARE STILL SHOCKED TO FIND OUT THAT HOME PRICES ARE ALREADY ON THE RISE IN KANSAS CITY, BUT REAL ESTATE IS A LOCAL MARKET SO EACH MARKET IS DIFFERENT.

WHAT ARE YOUR THOUGHTS ABOUT THIS?

Embassy Park in Kansas City North

 

Embassy Park subdivision in Kansas City Missouri TOP OF THE LINE CASA BELLA HOME - THIS HOME HAS IT ALL, SURROUND SOUND w/6 ZONE AUDIO, BEAUTIFUL HARDWOOD FLOORING, GRANITE COUNTERS EVERYWHERE, ENORMOUS WALK-IN PANTRY, LUXURIOUS MASTER BEDROOM, WET BAR, CUSTOM SAUNA, STAMPED CONCRETE PATIO, EXTENSIVE LANDSCAPING, 2 FIREPLACES, LARGE SCREENED IN PORCH, BACKS TO GREEN-SPACE. ELEGANT THROUGHOUT!   THIS IS AN ABSOLUTELY STUNNING HOME THROUGHOUT. PHOTOS JUST DON'T DO IT JUSTICE. YOU MUST SEE THIS ONE IN PERSON TO TRUELY APPRECIATE IT. To see this beautiful home or to get more information on other available homes in Embassy Park, call Ron Henderson at Keller Williams, Northland Partners 816-651-9001.

Why foreclosure is not a good option. Consider a short sale.

Why not be foreclosed? Why sell short? Agents who have closed hundreds of these transactions provide this list of reasons:

• Avoid the foreclosure stigma – Homeowners will always have to disclose that they had a foreclosure on any mortgage application and (many job applications) that they submit in the future. This can have an adverse affect on their future mortgage rates. Foreclosure is asked about specifically in credit inquiries. There is no seven-year time limit on this item.
• Protect credit score – Credit scores will be lowered by 300-plus points (per loan) by foreclosure. The impact of a short sale—about half that much.
• Improve eligibility for a government insured loan – The homeowner will be ineligible for a government insured loan for 5-7 years (only two years in a short sale). A foreclosure is the one credit report item that is almost impossible to have repaired.
• Avoid a deficiency judgment – Lenders can seek a deficiency judgment against the homeowner and collect any amount they do not recover at sale.
• Protect employment prospects – Many employers run credit checks on prospective employees. Foreclosure is one of the top items that will put a potential new hire, or even current employment, in jeopardy.

via www.kw.com

IF YOU OR SOMEONE YOU KNOW IS BEHIND ON YOUR HOME PAYMENTS DUE TO LOSS OF INCOME, DIVORCE OR MEDICAL BILLS PILING UP AND YOU NEED TO SELL YOUR HOME, CALL RON HENDERSON AT 816-651-9001 TO DISCUSS YOUR OPTIONS.

Over 230 Kansas City Homes Auctioned May 14th and 15th -- KANSAS CITY, Mo.

KANSAS CITY, Mo., April 27 /PRNewswire-USNewswire/ -- Buyers hunting for incredible discounts on homes will find a bushel at Hudson & Marshall's two-day receiver's auction of over 230 Kansas City homes. Each property comes with an insurable title, no back taxes or liens and will be auctioned May 14th and 15th at 1:00pm at the Holiday Inn Kansas City SE-Waterpark Hotel.

This is a receiver's auction. Hudson & Marshall will auction the properties on behalf of a seller, a court appointed receiver in case no. 0916-CV19633. In an effort to quickly sell these properties, most of the properties being auctioned will be sold absolute (no minimum and no reserve bids) to the highest bidder regardless of price.

Buyers will be required to make a cash or certified check deposit of $1,000 for each property which they are the winning bidder. All homes being auctioned by Hudson & Marshall are sold "as-is" and buyers should contact listing agents to inspect properties before placing any bids. Complete property details, including photographs and additional information may be found at www.hudsonandmarshall.com or by calling 866-539-4172.

"For buyers looking to take advantage of today's real estate market, purchase property at a huge savings and hold onto it until the market rebounds, this auction is the ideal buying opportunity," said Dave Webb, principal, Hudson & Marshall.  "With little money down, buyers can purchase property at bargain prices they can either rent or live in," added Webb.

Many properties have been renovated and about 75 are currently leased and/or qualify for Section 8 housing, making them ideal income producing properties for investors.  Through its Housing Choice Voucher Program, also known as Section 8, the Department of Housing and Urban Development (HUD) provides low-income families with vouchers for up to 80% of a monthly market rate rent, which is paid directly to a landlord.

Prior to auction, buyers can purchase property online by visiting the website and clicking on the Bid-Now icon. Sellers typically respond to offers within 24 hours. Pre-auction Bid-Now offers are subject to seller's confirmation, which means sellers have the right to accept, reject or counter any bid. Properties marked absolute will be sold absolute only on auction day

via www.prnewswire.com