Kansas City Area Home Sales Statistics July 2008

Posted at 8:40 AM, Aug. 21, 2008

Kansas City Area Home Sales Statistics - July 2008

As reported from Heartland MLS, here is a summary of home sales statistics for July 2008, as compared to one year ago. Note, Jackson County is on the Missouri side of the state line; Johnson County on the Kansas side.

Jackson County

Pending contracts:         950 homes, down 1.55%

Average sales price:      down 9.83%

New listings:                  1728, down 15.58%

Inventory:                       7796 homes, down 9.21%

Johnson County

Pending contracts:          709 homes, down 21.16%

Average sales price:       down 8.11%

New listings:                   1117, down 14.71%

Inventory:                        4571, down 3.42%

That is way too much use of the word 'down'!  However, what these figures tell me is that potential sellers have decided not to list--feeling they won't get the price they want or that the heavy spring/summer buying market is over.  This will actually help bring a bit of balance to the market, as buyer who want/need to buy will have less to choose from.  The lower average sales price is discouraging, but I still think the housing prices elevated too fast over the past 4-5 years and this is a natural market correction.

If you would like detailed statistics on home prices in your area--closed sales or currrent listings,

email me:    mary.hutchison@prukc.com

Thank you for reading my blog, comments are welcome!

You Can't Always Get What You Want

Posted at 5:37 PM, Aug. 17, 2008

You Can't Always Get What You Want

...and you know the line that comes next, 'if you try sometimes, you get what you need'.  I've been thinking about the wisdom of that line often lately...as I try to explain to my 14 year old daughter why we don't fly off to Europe or make impulse purchases without questioning like many of her friends.

This has been a tough year for the real estate business...and I am speaking for myself and many other agents in my office.  Clients who were going to list their houses say 'no, we don't have to move, the market is too bad'.  Buyers seem eager to buy...until a possible job layoff cancels their plans.  Sellers price homes too high and wonder why the house won't sell.  There are agents who are still pulling in  six figures annuallly  on a regular basis--from what I see, it's those agents who have been selling homes for ten years or more, or, they deal with very wealthy clients.  When business is good, I can splurge a bit on shopping trips and save extra money for the  special vacation.  When it's not so good--and the cost of food and gas keeps going up while income drops--it's time to cut back even more.

I'll admit, I've always been a bit of a penny-pincher.  When everyone else wanted SUV's, I was wondering, why spend so much on a car with poor gas mileage?  While buying books on line is inexpensive--we've always used the library.   We always plan to cook a little more to have leftovers during the week, and when dining out, portions are usually large enough to take home the extra for a smaller meal.  I've always brown bagged my lunch, won't spend $70 a month to color my hair, insist on the younger sister wearing hand me downs when she can.  This thriftyness is not enough to pay for a trip to London or to buy my oldest a car when she turns 16.  But now I try to be even more creative in saving a few dollars here and there.  We share a clothesline in the back yard with our neighbors...if we  see a  movie, it's the $5 daytime show...we walk more and do not make unnecessary car trips...I coast a lot in my vehicle and I question almost every purchase, watching sales at the grocery store and stocking up to save.

Although I would love to have more money to travel, to spend on clothes, to decorate my house, I'm thankful for what I do have...and that's what I try to convey to my daughter.  She has food, clothes, she has great friends and a tight, loving family.  She's a wonderful kid, just experiencing the very normal jealousy that comes from seeing others who don't have to watch their spending quite as much. I'm thankful for my loyal customers, my husband's steady job, the health of my family and the support of our friends.  Some day I hope she will appreciate the sacrifices we've made to give her a good education, to know that  she can appreciate earning her own money to buy her own digital camera and cell phone,  how she didn't turn into a typical spoiled kid who gets the latest everything.  And as I wrap this up, guess who I sound like.....my parents!

Please note:  comments will be posted, but I cannot answer comments personally!  If you want specific real estate information on the Kansas City area or have questions, email me.  This blog will not allow me to answer you personally through the comments section.

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Light Rail in Kansas City -- Finally???

Posted at 5:43 PM, Aug. 11, 2008

Light Rail in Kansas City -- FInally??

As I sit typing this blog entry, listening to U2 on the Ipod, I feel like echoing Bono's soaring screams...will Kansas City finally get light rail and take a few steps towards being a big league city??  And more importantly, will Kansas City GET IT RIGHT?

It's on the ballot on November 4th...and I predict it will pass.  A 3/8 cent sales tax for --gulp--25 years, I also predict it will the tax will be back on the ballot for renewal at that time!  Apparently 815 million will get us a 'starter' line of 14 miles, from north Kansas City to 63rd and Bruce R Watkins Drive.  That's if we can get the Feds to give us over half  the cost!

Honestly, I have mixed emotions about light rail...for this town.  I LOVE light rail in other cities, but somehow, I have a feeling it just won't get done right here--and surely will not come in on budget. There are so many instances of Kansas City residents voting in higher taxes for special projects that turned out to be mismanaged, over budget, not self supporting and not attract the business promised.  (Examples:  Science City at Union Station, 18th and Vine District, Zoo remodeling in the 90s, Kemper Arena improvements, Bartle Hall expansion, Liberty Memorial ).  It's hard for me to get down on these projects , as I am a big civic booster of Kansas City and supported all of these tax increases.  I want a thriving downtown, busy Science City, sold out Bartle Hall.  But all of these projects are losing  money...thus the non stop need for even more tax support.

A client was talking about how light rail would affect his purchase of a condo --which is located along the proposed light rail route.  I think it would increase the value--in other cities like Denver, New York, Portland -- a location's proximity to light rail is a huge plus--whether it's an apartment, home, hotel, condo, etc.  Even now in Kansas City, with gas prices going so high, resale homes that are located close to bus service (or within walking distance to schools, shopping, etc) promote that fact as a desirable positive of the location.  It would be very disruptive while building the stations, the route, but ulimately would be a positive.

So I will be positive about this ballot, will vote yes, will (try to) feel confident our city leaders can get this done right.  Years from now, if it's finally finished, I'll still be here in my Brookside home, knowing I can always walk and use the old fashioned bus service!

Know the Details Re: the new Housing Bill

Posted at 7:06 PM, Aug. 2, 2008

Know These Details Regarding the New Housing Bill

It's finally here....'something' to help the troubled housing market.  What's in it for you...or someone you know...a first time buyer or a veteran?  Read on for a brief explanation and the details to know.

Mortgage Renegotiation:

If you are having trouble meeting your monthly house payment, your lender MAY be willing to give you a better deal under this new bill--they are not required to do so.  The home must be your primary residence and you have to verify your income. Your monthly housing payment has to be at least 31% of your monthly household income. Your loan must have been made prior to 1/1/08. Your lender may refinance you into a new fixed rate 30 year loan for no more than 90% of what the property is currently worth. If you get the new loan, you cannot take out a home equity loan for at least five years after getting the new loan. You will have to pay a 1.5% fee each year on the balance of the loan. Once you sell, you have to give no less than 50% of any appreciation back to the government. IF you sell the home in less than five years, you will have to turn over more of the appreciation. This program begins Oct 1 and ends Sept 30, 2011.

First Time Buyers:

First time buyers, for a primary residence, can get a federal tax credit of $7500 or 10% of the purchase price, whichever amount is smaller. However, if your modified gross income is more than $75,000 or $150,000 if married and filing jointly, the credit phases out. Also, you do have to pay the credit back over the next 15 years when you pay your federal taxes.  This portion of the bill is retroactive to homes purchased after April 9, 2008 and expires July 1, 2009. Simply put, this is an interest free loan for first time buyers--still, it's something to help out.

Additional Deduction for Homeowners:

If you don't itemize your return, and take the standard homeowner deduction...you are now eligible for an additional federal deduction of $500, or $1000 if married and filing jointly.  You do need to report the property taxes paid on your form.  IF less than $500, or $1000 if filing jointly, the deduction is limited to the amount you paid in property taxes.

Veterans:

Mortgage lenders now must wait nine months (instead of 90 days) before beginning the foreclosure process on homes owned by vets returning from the military.  Also, banks must wait a year before raising interest rates on mortgages held by returning military personnel.

There's something in this bill for almost everyone...will it 'save' the housing market?  I don't think so. But it's 'something' to help those who need it.  What will get this housing market moving again is a better economy with more jobs, lower inflation on essentials and higher consumer confidence.

I'd like to hear your comments, email me at mary.hutchison@prukc.com

Kansas City Area Home Sales Statistics June 2008

Posted at 9:09 AM, Jul. 19, 2008

Kansas City Area Home Sales Statistics June 2008

Here is a summary of Kansas City area home sales statistics, June 2008 as compared to June 2007--plus commentary!

Jackson County

Pending contracts: down just under 17%

Average sales price:  down 11.08%

New listings:  down 15%

Inventory:  down 1.44%

Johnson County

Pending contracts:  down 22.55%

Average sales price:  down 2.35%

New listings:  down 21.63%

Inventory:  down 1.96%

What's the upside to all of these down stats?  The market is continuing to correct itself after years of prices that were rising too fast. 

Fewer new listings means would be sellers are waiting--if they don't have to move, they won't.  They will wait until the market gets better--or improve the home they have.  Fewer sales shows us the tightening of the money supply (no more 100% financing for would-be first time buyers, which brings the domino effect to second time buyers who want to move up) and the hesitation from buyers to pull the trigger and write an offer--they want to see everything that's out there and wait for the best deal. 

Consumer confidence has a lot to do with buying and selling a house.  Everyone, except the very rich, is feeling the shock of high gas and food prices. Confidence is low and most everyone is pulling back.  Essentials first--and buying a new house--that can wait.  That's the bottom line reflected in these statistics.

If you would like sales statistics for your particular area or subdivision in the greater Kansas City area, send me an email at mary.hutchison@prukc.com

Thanks for reading my blog, comments welcome!

Reflections on Independence Day and Home Ownership

Posted at 11:42 AM, Jul. 6, 2008

Reflections on Independence Day and Home Ownership

We had unusually pleasant weather in Kansas City for the Fourth of July holiday.  Today's weather -- hot,sticky, in the 90s--is what we usually get.  Friday and Saturday were warm, mild, with sunny skies and cool evenings--not even the mosquitoes were biting!  Perfect for fireworks and outside plans, walks, biking, sitting poolside. Everyone was talking about how great it was to be outside, instead of complaning about the usual typical humid conditions. What does this rambling about weather have to to with home ownership?

Because on this weekend that clelbrates   the American spirit of the freedom to honor  'life, liberty and the pursuit of happiness'--to me, that is embedded in home ownership.  My weekend festivities centered on family and friend gatherings: in my  special Brookside 'hood, listening to those small streetside fireworks as soon as dusk arrives;  gathering in Loose Park with my neighbors' eclectic group of friends and kids for D'Bronz pizza, blankets, baseball and badmitton; spending some time at the local pool and chatting with various lounging friends; going to my brother's home for a family cookout featuring a cherished family recipe and then watching all the fireworks displays' from around the city from his deck perched high above the rest of the homes...it's these simple events, centered around home and friends, that everyone should appreciate.

Establishing roots in a city...in a home...knowing your neighbors..being a part of a community...all of this is a part of the American Dream that is celebrated on July 4.  Home ownership offers  you so more than the physical house itself..it opens you up to a community,  new friends,  family celebrations around the table, watching the kids on the block grow up, how the changing seasons affect the look of the area, talking local happenings and gossip with the neighbors.  After a vacation or  a hard day at the office, turning the block to see your home..it's a comforting, special security that not only gives you physical shelter but plenty of 'emotional equity' as well.  Take pride in your home, your neighborhood, your surroundings--make the most of all that  it offers--it's part of the American Dream that is celebrated every July 4.

Kansas City Home Sales Statistics May 2008

Posted at 7:17 PM, Jun. 22, 2008

Kansas City Home Sales Statistics-May 2008

From the Heartland MLS, here are home sales statistics for May 2008, as compared to May 2007.

If you have comments or would like detailed information on your subdivision, email me.

Jackson County

Pending contracts:  down 16.92% 

Average sales price:  down 11.08% 

New listings:  down 15%

Inventory:  down 1.44%

Johnson County

Pending contracts:  down 17.13%

Average sales price:  down 3.93%

New listings: down 11.95%

Inventory:  down 1.37%

Commentary:  The overall  market is still soft, some specific areas are stronger than others.  With the decrease in new listings and inventory, this gives the market a chance to 'even out' and move towards a more balanced market for both buyers and sellers.  Some sellers are thinking they will wait until next year to sell--taking a wait and see attitude, hoping prices will start to rise. Personally, I am experiencing more buyers coming through open houses and buyers who are now just ready to buy after months of looking and thinking about the purchase. Also, interest rates have creeped up and will probably not be decreasing for some time. 

I also want to mention that in the past two weeks, I've talked to several people who are seriously thinking of moving out of the suburbs to be closer to their jobs in order to cut the commute and/or take the bus each day.  This time, more so than last year when gas prices started the long, steady climb, people seem to be actively taking steps to leave the car behind and walk, carpool, bus, cut out unnecessary trips and rethink every route.  I get the feeling this is a permanent change in behavior.  I know it is for me!

I would like to hear your comments...email me!

Commentary-HGTV 25 Biggest Real Estate Mistakes

Posted at 12:59 PM, Jun. 16, 2008

Commentary on HGTV's List of the 25 Biggest Real Estate Mistakes

Recently HGTV published a list of the 25 Biggest Real Estate Mistakes. Reading through the list, it was enlightening and thought-provoking.  I don't agree with everything on the list but there are a few mistakes that provoked thoughts to share on the blog. I want to know what you think. Email me!

#25.  Buying a House for the Decor

There is no doubt that staging works--and an updated, well decorated home will sell faster.  So many times a buyer will walk in and fall in love with the decor...then during the walk-through of the vacant house before closing, you can see some disappointment on the buyers' faces as they walk though the empty space.  It's not as striking without the furniture, curtains, decorator touches.  That's why I tell buyers:  look beyond the decor!  Is this the floorplan you like? How do you like the flow of the space? What about the location? On the flip side, showing a vacant house that meets all of the buyers' stated wants/needs can be a challenge--the buyer can say 'it just doesn't feel like the one'.  There is some truth to the 'feel' of the home, the karma, the vibe.  Be open minded, though, if it's not decorated but does have what you want--the decor can come later.

11.  Not Setting a Realistic Budget

One reason the mortgage market is a mess:  lenders qualify buyers for more than buyers are comfortable paying.  I preach this constantly -- go lower than what you qualify for because there will be monthly maintenece, utilities, insurance, taxes--the price of home ownership goes up, except for your payment (on a fixed rate loan).  Don't get caught up in buying a pricey home just because you qualify for it.

2.  Setting Too High a Price

The housing market is going through a correction.  Five years ago, prices were going up so fast the market went crazy (almost like oil prices now).  As prices fall with so much inventory and not enough buyers, sellers won't accept the fact that they can't get as much as they thought they could for their home.  Keep in mind all real estate is local and some markets are strong.  But the fact is, most sellers will not get as high a price as they would have two years ago.  Look at the comparables, hire a smart, honest agent and price your home accordingly.  It's very difficult to come down from an original price that was too high..the perception is that something is wrong with the house and the seller will be desperate to get rid of it.

1.  Failing to Showcase a Home

This is crucial...show your home in the best possible way.  Invest in some updates, staging, painting, landscaping--whatever it takes to have your house ready for the market.  De-personalize the house, realize it needs to be neutral for others to imagine themselves living there.  It will pay off in a better offer.

Click here to see the complete list of mistakes from HGTV.

Thanks for Your Comments!

Posted at 10:47 AM, Jun. 13, 2008

I have received numerous comments on several of my recent entries, and I want to make sure I get back to you quickly if you have questions. I do check this blog regularly, but if you want a more immediate (or private) reponse, email me here.

Thanks again, and keep those comments and questions coming!

National Association of Realtors--New Comments on the Market

Posted at 5:51 PM, Jun. 9, 2008

National Association of Realtors Comments on the Housing Market

It's not always bad news, friends!  Today the National Association of Realtors posted  a press release regarding national housing trends along with some predictions.  Remember, all real estate is local and as a seller/buyer, you need to be in tune with your particular area. Still, some highlights worth mentioning:

• Interest rates are steadily inching upwards. Predicting  a rate of 6.3% for a 30 year fixed loan by end of year.
• The affordability index is up.  More buyers are realising that now is the time to take advantage of the slower market that is pushing prices down.
• New home sales are still very slow.  The rising cost of construction materials--and the higher costs to transport them--keep this market slower than resale.

Consumer confidence has a lot to do with homebuying.  I remember the last presidential election year--buyers were skittish, sellers sensed uncertainty, and sales stalled somewhat.  This election year is different, with an uncertain economy and gas prices affecting everyone, everyday, in every way.  Still, it will probably cost you more to move next year than this year..in transportation costs, interest rates and home supplies/decor.  So hop  off the fence and buy or sell  now!

New York Times Article - Writing A Letter With Your Lowball Offer

Posted at 6:35 PM, Jun. 3, 2008

New York Times article--Writing A Letter with Your Offer

I am a big fan of the New York Times and scan the online edition daily. An article from May 31 is worth reading, I've included a link below.

This article offers a template for buyers who want to make a lowball offer on a house.  Rather than describe the buyers themselves, how much they love the home, what they plan to do with it, etc, this letter focuses on the buyer's market of today, citing national statistics and why the sellers should not be insulted by the offer--and implies they should be happy they have an offer.

Equal time is given to a response as well--there is a sample letter from the seller as a response to the buyer, citing how government backed loans are loosening up restrictions and how going up a little in price doesn't affect monthly payments that much. And, of course, out of all the houses for sale, this house is the one you want.

As an agent, I have suggested buyers write letters to accompany offers and have received letters from buyers with contracts on my listings.  These letters have a totally different approach, attuned to the market of today.  Any savvy negotiator, realtor or client, should take a few  moments to read them.

www.nytimes.com/2008/05/31/business/yourmoney/31money.html

Aviod These Mistakes Homebuyers Make!

Posted at 7:59 AM, May. 30, 2008

Avoid These Mistakes That Homebuyers Make!

It's still a buyer's market...and if you are thinking of buyer a home, consider these common mistakes that many buyers make.  A good Realtor will counsel you to avoid them:

*Use the same agent that lists the home you want to buy.  This arrangement can work, but know that the listing agent's loyalty is first to the seller of the home. As a buyer, it's better to have your own buyer's agent working for your best interests.

*Fail to have a home inspection.  The money spent for a home inspection is well worth it--especially if you use an experienced home inspector. On the other hand, don't get too concerned about every little item that needs repair on the report.  Home ownership requires maintenece--determine what are the most important repairs first, then plan to take care of the other smaller issues within the first year or so.

*Compare mortgage lenders and their closing costs.  Know the difference between a mortgage banker and mortgage broker.  Shop your loan around to a few lenders and compare costs.  Be sure you know the terms of the loan and why some banks charge certain fees and others don't.  Is it better for you to pay PMI or structure the loan differently?  What's the difference in payment between a 15 and 30 year loan? Take the time to talk at legnth with your lender and explore the best way to structure your loan.

*Make a lowball offer to the seller.  There are considerations here-if the house has been on the market a long time, if the seller is saying 'bring all offers'--sure, why not go for it?  But if the home is relatively new to the market and is price right, a lowball offer will just upset the sellers and set the stage for uncomfortable, uncompromising negotiations.

*Don't get a copy of the Homeowners Association Deeds and Restrictions.  This is especially important for newer subdivisions.  Write it in the contract that you want a copy to review --and do so before the end of the inspection period. You may have plans for the home that are subject to certain rules (for example, fencing in a yard or certain colors of house paint).

*Bring too many others into the buying process.  Sure, you can get another opinion from family members and friends about the house you want to buy--but take their opinions objectively.  It is human nature to pick apart the negative aspects of the home--and all homes have them--but concentrate on the positives and if this house has (most) everything you want--trust your gut feeling and go for it.

*Talk to the neighbors.  This is more subjective, but is something I always try to do for my buyers.  Neighbors will tell you a lot:  is the block friendly, does everyone know each other? Are there neighborhood get togethers? Do the homes tend to have water in the basement? What's the traffic like?  Most neighbors are happy to share this information. After all, everyone is curious about the 'new people who bought the house'!

I could think up several more examples, but these are some basics to keep in mind as you search for a home.  It's probably the biggest investment you will make--take your time and be well-informed!

Kansas City Area Residential Sale Statistics April 2008

Posted at 7:23 AM, May. 21, 2008

Kansas City Area Home Sales Statistics-April 2008

Here is a summary of April residential home sales stats for Jackson and Johnson County.  Overall, still very slow compared to one year ago but inventory has not had a sharp increase...listings are down, reflecting sellers' hesitation about selling in a slower market.

Jackson County (comparisons to April 2007)

Pending contracts: down 15%   Average Sales Price: down 19.5%

New Listings: down 8.95%         Inventory: up 2.72%

Johnson County (comparisons to April 2007)

Pending contracts: down 19%    Average Sales Price:  down 1.52%

New Listings: down 9.21%         Inventory: up .79%

Johnson County sales are still relatively strong compared to the overall market.  Average sales price has stablized since the first of the year, showing very little reduction from last year. 

Overall consensus in our office is that there are buyers, but they are very, very choosy as they look around and they expect 'a bargain' along with an updated, mechanically sound and nicely decorated home. They are also taking their time looking at everything in the market.  Interest rates are still low...a good market for buyers!  Sellers need to price their homes very competatively and don't be insulted at lowball offers. All the national press regarding the poor housing market has them thinking sellers will jump at any offer.  A good Realtor will negotiate a deal that both parties are happy with--that's the goal!

Your Credit Score Determines Your Interest Rate

Posted at 11:41 AM, May. 12, 2008

How Your Credit Score Affects Your Loan's Interest Rate

Credit scores have always affected interest rates, now more so than ever due to the credit market crisis.  Mortgage institutions can tease  you with the offer of low interest rates -- but buyer beware, there is always a hitch!  It pays to know your credit score if you plan to purchase a home--there are personalized free reports available on-line.

A 30 year fixed conventional loan offers a 5.875% rate.  Now, your credit score must be over 720 to get the best rate.  If your score is:

680-719, your rate will be about .125% higher

660-679, .375% higher

640-659, .5% higher

If you have a downpayment of 30% or more, the interest rate terms can be  more favorable.

Know your credit score.  If it's lower than you would like, due to late payments, large debt, missed payments, etc.--start work now to increase your rating.  If you plan to purchase a house, getting your credit score to a higher level over a period of  months will benefit you when you are ready to buy.  An experienced mortgage banker can offer advice and specific steps to get your credit at a better level.

I predict the housing market will stay slow the rest of the year.  If you plan to buy, start checking your credit score now!

The Art of Lowballing

Posted at 12:56 PM, May. 5, 2008

The Art of Lowballing

The national weekend newspaper magazine PARADE devoted most of yesterday's copy to the current real estate market.  One portion  is entitled, The Best Strategies for Right Now.  Separated into two sections, one for buyers and one for sellers, most of the advice was right on the money. However, the strategy for buyers to 'lowball 'em' when making an offer deserves some additional commentary.

Even in a more balanced market, most buyers do not offer list price on a house.  There are exceptions, for example if the house is brand new to the market, if it is priced well out of the gate or is percieved as a 'good deal', if it has everything the buyer wants and more.  But in this buyer's market, I hear stories almost every day about buyers who lowball to the extreme, based on friends and family advice while not taking into consideration the experienced agent's advice.  Sure, everyone wants a deal, and buyers don't want to overpay.  A buyer's agent job is to get the best house for the buyer at the best price.  But when a buyer insists on offering a price that is so low it's insulting to the seller (and then asks for lots of free extras on top of it!), it sets a bad tone for the negotiation.  Most sellers know that in this market, the offer will not be at the asking price.  However, the smart approach is to make an offer that is workable, and doesn't immediately put the seller off. If the seller perceives the buyer's offer akin to a stab in the heart--followed by a twisting of the knife-- any further negotiations are clouded with this perception and the seller becomes defensive and hostile. 

The best negotiations are ones that start off with the approach of 'we want this to work well for everyone' and go from there.  Listen to your agent regarding a lowball offer. Look at the comps with him.  Strategize about a reasonable, good faith offer and remember, more negotiations come after the inspection. Don't always think your agent wants you to go higher so that he/she can earn more money.  Yes, we do work for commission.  But most professional agents think of the best way to get the house for the buyer and not  immediately, 'what's in it for me'.  If it's a hostile process, the chances increase the deal will not go through and then everyone loses.

I believe one reason for this slow housing market is the animosity between lowball buyers and sellers who are unrealistic about what their house is worth in today's market.  An insulting lowball offer does nothing to help both parties achieve the goal of selling the home.

Kansas City March Sales Trends

Posted at 6:11 PM, Apr. 22, 2008

March Sales Activity -  Kansas City Area

Here is a summary of the residential real estate sales for March in the Kansas City area. ..still proving it's a slower market.

Jackson County

Pending Contracts:  933/down 17% from last year.

Average Sales Price down 7% from last year.

New listings down 23% from last year.

Inventory slightly up at 2.5% from last year.

Johnson County

Pending Contracts: 782/down 22% from last year.

Average Sales Price down .25% from last year.

New listings down 18% form last year.

Inventory up 2% from last year.

March through August  are typically the biggest months for residential sales in this area.  NOW is the time to buy, or if you are a seller, NOW is the time to make sure your home shines above the rest and is priced better than the competition!

Staging Works-And It's Tax Deductible!

Posted at 12:47 PM, Apr. 3, 2008

Staging Your Home--It's Tax Deductible!

Staging works...as any viewing of HGTV's Designed to Sell knows!  Of course, on that show they do not count labor costs-just materials.  However, most staging professionals work their magic with decor and furniture you already have in the house, and the results can be amazing!

Paying a stager to stage your home is part of the marketing of the property-and therefore tax deductible.  The stager's services are a write off, not any supplies that are used (for example, paint, new rugs, curtains, etc.)  Keep the receipt and add it to the deductions you will have when the home purchase is completed.

Many Realtors include the cost of staging in their services--so be sure to ask about that when you are interviewing agents. Remember, when you are selling your home, don't think of it as 'your' home--you want buyers to imagine themselves living in the house.  A stager will de-personalize and freshen up the look for an overall  minimal cost--that is worth it.

Price Your House To Sell

Posted at 8:47 AM, Mar. 20, 2008

Selling Your House?  Price It To Sell!

How to decide on a price for your home?  There are some common sense answers:

Look at other homes in the neighborhood and check what they have sold for.

Compare homes with similar features as yours: number of bedrooms, baths, square footage, updating.

Compare location:  is your home on a busy street? Back up to commercial property? On a corner?

Be aware of curb appeal--that first impression is so important.

There is a large amount of inventory on the market.  Buyers want to see everything out there to be sure they are getting the best deal.  Before you price your home, have your Realtor take you out and show you the competition. Look objectively as if you were the buyer.  Remember, buyers aren't just looking at your house--they are looking at all the houses for sale in the location they want.  Honestly compare yours to what else is on the market nearby and then price it.  You want the buyer to walk in and say, 'this house is a great deal and I"m willing to pay the asking price'.  You will get the price you wanted up front, you won't have to endure weeks of keeping the house spotless and tidy for constant showings, and the buyer will feel he/she got a good house at a great price. 

It's a different marketplace now than it was three years ago--be aware of the situation and prepare your house to show well.  It will pay off when you get an offer!

For a complimentary consultation on the market conditions in your neighborhood, contact me at mary.hutchison@prukc.com

Kansas City Area January Sales Statistics

Posted at 8:41 AM, Feb. 21, 2008

Kansas City Area-Home Sales Statistics

Below is the summary for home sales statistics for January, broken down by county.  There are buyers out there, but less than last year.  Once this weather breaks for good--sales will be up.

Jackson County

833 pending sales vs 905 pending sales Jan 07. Down almost 8%

Average sales price down 11.52%

More inventory--up almost 6%.

Johnson County

593 pending sales vs 725 pending sales Jan 07. Down 18%.

Average sales price up 4.5%

Inventory up--4.5%

Now is the time to buy!  Interest rates have edged up but there is still too much inventory, sellers are willing to wheel and deal!  Take advantage of this market now if you are thinking of purchasing this year!

Tips For Visiting An Open House

Posted at 8:32 AM, Feb. 7, 2008

Tips for Visiting An Open House-Part 1

Thinking about buying?  Whether it's now or a year from now, you are probably  out looking at houses on Sundays,  to 'see what's out there'.  This is an excellent time to do just that--you get a feel for the area and current prices.  Here's some tips on open house tours  from an agent perspective:

1.  If you are just looking and not ready to buy--don't feel like you are wasting your time or the agent's.  You are learning something about the market, about housing, with every house you visit. For the agent, it's more exposure for the house:  it may not be the one for you, but you may know someone who's looking in the area.  The key to a successful  open house is exposure to a wide variety of people. Most agents like to talk to open house visitors-whether they plan to buy or not.

2.  Take an information sheet from the agent.  Ask how long the house has been for sale, and why the sellers are moving.  This gives you an indication of how much the seller may bargain (longer time on market can equal more bargaining power) and how motivated the seller is (have they already purchased another house? are they relocating to another city?).

3.  Check the exterior of the house--does it need a fresh coat of paint? Do you see a lot of wood rot? Is the yard well trimmed and neat?  Also look at the houses nearby--are those homes well kept? Attractive from the street? Does it look like neighbors take pride in their homes?

4.  Note what you like and dislike about the house--and tell the agent!  We want the feedback!  Sellers want to hear that information as well.  Be diplomatic but do give your opinion--it counts!

More tips coming next week...  My open house this Sunday Feb 10 is an updated Brookside beauty at 6720 Locust in Armour Hills Gardens--stop by!