What to Do When Your Home Won’t Sell: Part 1

Are you having trouble trying to sell your home? If so, you may want to try one of these four alternatives.

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Listing your home can be a stressful experience in and of itself, but this is especially true if you’re having a difficult time attracting buyers. To help address this common problem, our team is launching a two-part series on what to do when your home won’t sell. And today marks the first episode.

We’ll be covering the first four solutions in this installment, so let’s dive right in:

1. List again in the future. Sometimes the reason your home won’t sell is simply that the timing’s wrong. Sellers must consider current market conditions, as well as their own personal circumstances, before putting their home on the market. If you’ve been struggling to sell, sometimes the best solution is to try again at a more opportune time.


2. Refinance your mortgage instead of selling. If your motivation to sell is largely financial, then perhaps a home sale is not the right solution at all. This isn’t to say that a sale is entirely out of the question, but you should consider other options if this is your reason for listing. Speaking with a lender is a great first step. They will be able to inform you of your options based on your individual situation. 

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If you’ve been struggling to sell, sometimes the best solution is to try again at a more opportune time.

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3. Turn your home into a rental. This isn’t always the best solution for those who lack experience in acting as a landlord, but it can be a decent alternative to selling for those ready to accept this (often hefty) responsibility. There are renters out there who will take great care of your home, but you must be prepared for less favorable outcomes before you decide to rent out your property. You should also check with your mortgage company to ensure that this option is within your legal right.


4. Pursue a short sale. This option isn’t as common right now as it was in years past, but it is still available for those who need it. Still, like the other options we’ve listed, sellers must think carefully about their situation before pursuing a short sale. Having an attorney by your side when you do so may also be a smart move.

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Thinking of Subdividing? Here Are the Factors You Need to Consider First

If you’re thinking of subdividing or developing a piece of property, there are several factors you need to consider to determine whether or not that will be economically feasible.

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If you’re thinking about subdividing a piece of property or developing it and then selling it, you first need to determine whether taking this step is economically feasible.

Some parcels of land can be used for high-density development, but a lot of them can’t. This means you need to consider factors like how close your land is in proximity to the nearest city limits, whether your water lines and utilities are available and strong enough to service the number of rooftops you plan on building, how the land slopes in relation to the nearest sewer, etc.

Another factor to consider if your property is somewhat larger (50 acres or so) is whether the road accessing the property can handle the type of traffic that comes from being near the city limits. By and large, you can fit two and a half to three homes per acre on a developable property. By “developable”, I mean that the roads, sidewalks, and infrastructure can allow the fire and police departments to service the community properly.
 

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When a developer invests in a property, the most affordable part is the land, itself.

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It’s important for you to remember that when a developer invests in a property, the most affordable part is the land, itself. The expensive part is building the infrastructure and adding all the off-site improvements (i.e., water lines, sewer lines, gas lines, sidewalks).

On a 50-acre property, you can build anywhere from 100 to 150 homes. If you add that much traffic—say, two cars per household—to a county road that doesn’t have curbs, gutters, and proper stormwater planning, that can create a plethora of problems. Adding stoplights and turning lanes can cost up to $250,000, so that alone can make a property economically unfeasible for development.

Every property is different, and there are many other things to consider before you decide to subdivide and/or develop yours, but these are just a few factors to educate yourself about before moving forward.

If you have any other questions about this topic or you’re curious about what’s going on in our market, don’t hesitate to reach out to me. I’d be glad to help you.

How to Buy and Sell at the Same Time

If you’d like to buy a house but you also need to sell your current house, you need to design a smart buying and selling strategy. Here’s how you can do that.

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If you need to sell your current home to buy another home you’re interested in, there are several strategies you can use.

To design a smart home buying and selling strategy, you should first look at your overall goals and what your financial situation is. What kind of equity will you be rolling into the new home? What kind of mortgage payments are you looking for?

You should also consider implementing contingencies. In this type of situation, we oftentimes work with clients who buy a home that’s contingent on the closing of their current home. You can also use bridge and swing loans that will give you more time between buying one home and selling the other and help you avoid the crunch of a simultaneous closing.
 

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You have a much better chance at influencing all of these moving parts if you put together a great team behind you.

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Whether you’re buying or selling, there are about 75 people who are either directly or indirectly involved in the transaction, and you have a much better chance at influencing all of these moving parts if you put together a great team behind you. With everything that’s happening, coordinating both transactions can seem like threading a needle. This is why, when we work with homeowners in this situation, we sit down with them, go over every possible strategy, review their financial situation, and look at the market itself. Whether we’re in a buyer’s market or a seller’s market will affect your strategy.

As long as you take the time to put together a plan with your real estate agent and put together a great team behind you, you can make buying and selling at the same time a stress-free situation.

If you have any questions about this topic or you have a topic you’d like us to discuss in a future video, don’t hesitate to reach out to us. We’d love to speak to you.

How to Optimize Your Success in a Multiple Offer Situation

How are today’s buyers and sellers approaching multiple offer situations, and which approach is the most effective? Let’s discuss some common tactics.

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Whenever a market is swayed to considerably favor either buyers or sellers, multiple offer situations tend to become more common. And when a listing meets certain additional criteria, like being aggressively priced, the likelihood that it will receive a high level of interest becomes even stronger.

With this in mind, what’s the best way for buyers to tackle such situations and what kinds of offers should sellers prioritize?

Back during the recession, sellers would choose a buyer based on which offer was “highest and best.” They would often also impose a deadline for a given offer, which put a lot of pressure on those looking to purchase the home. Having an expert advisor to guide you through scenarios like this was extremely valuable during that time and is actually still valuable today.

Although seller expectations have changed since the recession, most people who have listed their homes still hope to earn the best deal possible.

One common way today’s buyers navigate multiple offer situations is by including an escalation clause in the offer. An escalation clause allows buyers to surpass competing offers up to a certain dollar amount. This allows buyers who find themselves in a bidding war to retain the upper hand (within a particular threshold). 

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Carefully reviewing all offers with the help of a real estate professional is the most effective way for sellers to achieve optimal price, terms, and conditions.

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Sellers should also realize that price isn’t everything. Selecting the offer that is highest and best is not the best way to maximize equity. Independently negotiating with each buyer is a far better approach. Carefully reviewing all offers with the help of a real estate professional is the most effective way for sellers to achieve optimal price, terms, and conditions.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Why an Auction May Be Your Best Bet to Sell a Unique Property

Selling a unique property isn’t the same as selling a conventional property, which is why an auction is a great way to sell them.

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Over the years, I’ve been fortunate enough to have been involved in a lot of sales of unique properties. What’s the best way to sell a unique property, though?

First, you should know that every property will sell, but there are four main components of that sale that have to be dialed in:

• Location: Location is crucial to maximizing the value of a property.
• Condition: If a property is in good condition, it will sell.
• Marketing: A property has to be exposed to the total buyer pool who might be interested in it.
• Price: A home has to be priced correctly for what it is, where it is, and what condition it’s in.

That being said, one selling method that I’ve always found works extremely well with a unique property is an auction. This is because an auction brings together all the competing buyers in one place and bids the property’s price up to what the market says it’s worth.

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An auction brings together all the competing buyers in one place and bids the property’s price up to what the market says it’s worth.

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Think of it this way: If you inherited a rare, prized piece of art, you’d never think of putting a price tag on it and seeing if a buyer comes along to buy it. We sell a lot of conventional properties that way through normal marketing avenues, but not with unique properties. An auction isn’t the only way to sell a unique property, but it’s a way that can create maximum demand and maximum exposure in a time frame you can dictate.

If you’d rather sell a unique property through conventional marketing avenues, there are different strategies you need to take. Some of these strategies, for example, involve using social media platforms geared toward the type of buyers you want to attract.

If you have any more questions about selling unique properties or you have any other real estate needs I can assist you with, feel free to give me a call or shoot me an email. I’d be happy to help you.

Will These Home Improvements Improve Your Home’s Value?

There are certain home improvements that won’t add much, if any, value to your home. Here are four of them.

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Today we’re beginning a two-part series that details seven things that do not increase the value of your home, whether you’re planning to sell soon or down the road. Here are the first few:

1. Extensive professional landscaping. If you go over the top with landscaping, you will typically not get a full return on your investment when you sell. A good landscaping update will give you more curb appeal and help your home sell faster when buyers are comparison shopping. However, it doesn’t necessarily increase its value.

2. Upgrading electrical or plumbing systems in an older home. Just like a car would, an older home needs maintenance. It’s an integral part of protecting your property. Make no mistake that if these are things your home needs, you should do them in order to maintain its current value. However, don’t expect the home’s value to increase because of them.

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Stay tuned for part two, which will be coming in a few weeks.

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3. New roof, gutters, sprinklers, or HVAC unit. These are also maintenance items like the plumbing and electrical systems. It will maintain the home’s value and buyers appreciate a home that is updated and well-maintained.

4. Swimming pools or hot tubs. I get questions about these from homeowners all the time. The truth is that appraisers won’t give you very much credit for it. If you want a pool and want to enjoy it, you should go for it. If it’s well-kept and maintained over the years, it can sell faster and attract a higher offer. However, it won’t increase the value by much.

Stay tuned for part two of the series when I will discuss the final three home improvements that do not provide value to your home. If you have any questions for me in the meantime about any of these items or about anything else related to real estate, give us a call or send us an email. We look forward to hearing from you soon.

The Hidden Magic of Kansas City

Though Missouri is a flyover state to many, Kansas City is a place with a rich history and something for everyone.

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What’s so great about Kansas City? Why should people want to move here?

If you have family members or friends who are thinking about moving to Kansas City or transferring here to work and live, you might want to forward them this email. I want to show them the flavor and neat parts of this historic city that we have come to love.

Having been born and raised in the area, I know that there are so many things that are great about Kansas City, even though Missouri is often considered a “flyover” state, and Kansas City itself is often thought of as a “cow town.”

In recent years, Kansas City has come to be a very cosmopolitan community, and there are a lot of amazing aspects to the city that many don’t consider.

In recent years, Kansas City has become a very cosmopolitan community. There are many aspects of the city that people do not consider such as the great schools, many places to worship, and the great shopping districts like Country Club Plaza and Crown Center.

In addition to all the great venues available, we also are a huge sports town. We have the Kansas City Chiefs, one of the best NFL franchises in the world. We also are home to the Royals, who of course won the World Series in 2015. For soccer fans, Sporting Kansas City is a professional soccer club based here in town.

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There is always something to do in Kansas City, no matter who you are or what you enjoy.

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The Power and Light District downtown is a popular nightlife destination for people from all over. National acts are constantly filling up the Sprint Center with fans of all different forms of entertainment.

Kansas City is home to three casinos: Harrahs, Argosy, and Ameristar.

Kansas City, along with all of its great attractions, is also a city with a rich history. In the late 1800s, Kansas City was the end of the western frontier, serving as the place where everybody stopped before they continued their journey west. This history has inspired many artists, and you are encouraged to check out the art in the Freight House District if you want to take a step back in time.

There is always something to do in Kansas City, no matter who you are or what you enjoy.

If you have any questions or topics you’d like me to address in the future, please feel free to reach out to me. I’d love to hear from you.

How Buying New Construction Differs From Buying a Resale Home

Buying new construction allows you to customize the home to your specific needs, and there are different kinds of builds to choose from.

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Depending on the market you are buying in, new construction can be a great option, particularly when the marketplace overall is short on inventory (as it is now). Buying new construction allows you the opportunity to buy a home that is 30, 60, 90, or 120 days from completion and customize it to your needs.

What are some of the differences between new construction homes and resale homes, though?

First, the most important part of buying new construction is having an expert real estate advisor to work alongside you and guide you through the whole process.

Another important part of the process is the builder you choose, so when you are putting a team together for your new construction purchase, make sure you choose a builder who cares about the people he is building a home for. We work with many builders in the Kansas City area, so we would be glad to match you up with the right builder who can get you across the finish line on time with the exact home you want.

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Not all real estate agents are accustomed to handling new construction transactions.

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When it comes to the differences between buying new construction and buying a resale home, with a resale property, there has already been a lot of upgrades done to it. This means you get the benefit of already having something like a finished basement with a bar attached. These kinds of things are not always included in a new construction spec home (more on that below).

When purchasing new construction, there are a few different kinds of builds you can choose from. These include custom build homes, semi-custom build homes, and spec homes. Spec homes are when a builder builds a home with the intent to sell it for a profit. Sometimes they will pick one that is very desirable and sell it before it is finished. Other times, they will wait and let people pick things out. In that way, they are different from the other two options.

Not all real estate agents are accustomed to handling new construction transactions, which is why, again, you need to choose an agent with a lot of expertise in this area. Even though there are a lot of great builders out there, at the end of the day, you are buying from someone who is a professional home seller. Their job is to build a home they will make a profit on; your agent’s job is to make sure you are protected and you get what you want out of the home.

As always, if you have any questions about this or any other real estate-related topic, please feel free to call or email me anytime. I would love to help you.

Where to Start Your Search for a New Home

If you know you need a different home but are unsure where to start, we can help.

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Are you thinking of moving and buying another home but are unsure what exactly you want? It is fairly common for people to contact me and tell me that they have either outgrown their home or want to downsize but do not know what type of home they want next. My advice to them is that it is a great idea to sit down and begin with some sort of plan. If you have a general idea of what you want to accomplish but you are not sure where to begin, you can start there. There are multiple types of living options to choose from: lofts, apartments, country estates, townhomes, patio villas, suburban subdivisions, etc., which all offer different things for the buyer. The first step to deciding which is right for you is deciding what you must have. Do you have to have a gourmet kitchen? Do your kids need a flat backyard to throw around a football? Or, maybe space for a third garage is a must? Start with the things you are certain about.

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You need to make a plan to figure out what you absolutely need to have in a new home.

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Next, look at what your budget will be. What do you want your mortgage payment to be per month? To do this, we figure out how much you can qualify for in terms of a loan and how much you need to set aside for a down payment. Also, do you want a fixer-upper home? Or do you prefer a home which is totally maintenance-free? After we know all of the certainties, then we start the process of refining. We can build on what we know to find you your dream home. The key is to have an expert advisor that can help you work through the process. If you have any questions or would like to work with me to help you decide what you want and need in a home, please feel free to contact me. I look forward to speaking with you soon.

Be On Guard For Real Estate Scams

A client of mine recently received a scam letter in the mail. They are designed to look official, so here is what you need to know.

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There are many scams in the world of real estate. If you don’t know what to look for, you could lose out big time. Today I will go over what you need to know. One of my past clients received a scam letter in the mail the other day. The letter was something that was pulled straight out of the public record, asking my client to pay for the validation of some information on their property and to pay for records from closing their property. I can tell you that the title companies and vendors that we use are never going to charge you for that information. If you get a letter like this, it is a scam letter. Make sure you either call me or the title company to ask them if this is something that is necessary for you to pay.

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A scam letter has all the information on it for it to seem official, but I assure you it isn’t.

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The letter my client received looks extremely official. It is called “Records Recovery Services,” and they are located near Jefferson City. It has the actual client’s name in front of the address of the property they bought, the date they bought it, the parcel number, the square footage, and the assessed value. It has all the information on it for it to seem official, but I assure you it isn’t. As I said, everything on there is a matter of public record. We do everything we can to protect your private information; if you see something like this, be sure to throw it away and give us a call. If you have any questions, please feel free to reach out to me. Additionally, we would love to hear your suggestions for topics of future videos. I hope to hear from you soon!

Kansas City Area Market Update for Spring 2018

The real estate market is complicated. That’s why we’re breaking down some of the latest numbers today.

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We’re already into the second quarter of 2018, so we wanted to take a look at some statistics for the different counties around the Kansas City Metro and look a bit deeper at the monthly numbers to see exactly what’s happening. Let’s start off in Johnson County. For the first quarter of 2018, our median sale price went up about 5.2% to $273,450 from the first quarter of 2017. The average sale price during this time period was also up 4.1% to $324,000. Those are all encouraging statistics. The percentage of asking price received is also up to 98.5%. Homes are staying on the market for an average of 51 days, which is down 5%. Now let’s look at Clay County, Missouri. The median sale price here is up 12% and the average sale price is up 10.7%. Those are some pretty big jumps. The 54 average days on market is down 10.2% as well. Over to the west in Platte County, Missouri, we’re seeing a median sale price of $252,000 which is up 1.6%. The average sale price stayed flat at $276,000. The average days on market here has dropped to 58 days, down 13.1% from last quarter. In Jackson County, Missouri, the average sale price is up 10.5% to $190,049 and the median sale price is up 2.4% to $150,000. The average days on market here is down 13.2% to 59 days. That’s what we’re seeing through the first quarter, but let’s take a quick look at how things panned out last month.

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We want to make you the most educated buyer in the marketplace.

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For the March 2018 real estate market in Kansas City, here are some quick facts. Our change in combined closed sales is down 5.3% and our change in combined average sale price is up 8%. The most concerning statistic, however, is the change in combined supply in new and existing home sales. It’s down by 20.8%. There are far more buyers in the market right now than sellers, making things more competitive for everyone. Inventory is down across the metro by 24.5%, leaving us with just 1.5 months of inventory As far as new homes are concerned, here’s what we’re seeing; Closed sales are up 12% Average sale price is up 3.7% Days on market are up 3.8% Pending sales are down 2% Inventory is up 4.2%, but we’re still in a seller’s market. Here’s the key: If you’re going to be a buyer or seller in the months ahead, make sure you have all the right data and facts pertaining to not only the real estate market, but also the lending environment, the school district, the neighborhood, and even the floor plan that you are looking at. We want to make sure you’re the most educated buyer or seller in the marketplace. For a full breakdown of all the latest numbers in and around the Kansas City Metro, see the graphs here.

If you have any other questions at all about the real estate market or real estate in general, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

The Key Steps of a Mortgage Pre-Approval

If you’re buying a home with a mortgage, you absolutely need to get a pre-approval first. Here’s why.

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There's no doubt about it. It's a very competitive market today if you are looking to buy a home. Inventory is near record lows, and more and more homebuyers are entering the market. This means you need every advantage to grab that perfect home when you do find it. One no-brainer is to get pre-approved for a mortgage. A pre-approval informs you of how much you can borrow and it's something you will need to do at a later point anyway. A pre-approval can mean the difference between having your offer accepted or having to watch your dream home go to somebody else in a crazy market like this. In spite of all these good reasons, less than 10% of buyers who got a mortgage get pre-approved by the lender who originated the loan. In other words, you can definitely get a leg up on the competition by starting your home search at the loan office rather than at the open house.

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A pre-approval definitely gives you a leg up on the competition.

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Here are a few things that you will need: 1. Proof of income. At a minimum, lenders will want to see pay stubs from the past 30 days showing your year-to-date income, two years of federal tax returns, and two years of W2 forms from your employer. 2. Proof of assets. You will need to present statements from your checking, savings, or investment accounts to prove that you have funds for the down payment and closing costs. 3. Good credit. Most lenders reserve the best rates for homebuyers with a credit score of 740 or above. You can still qualify for a mortgage with a lower credit score, but a good lender will also recommend ways that you can improve your credit and qualify for a better loan. These are the biggest and most common things you will need to get pre-approved, though your lender might want to see some other documents as well. Once you are pre-approved, the buying process will be faster, more convenient, and less stressful. Most importantly, it will make it more likely that your offer for that perfect home gets accepted. If you have any questions for me or need any additional assistance, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.