There is an interesting article in Time Magazine, posted today, titled "Reinventing the McMansion".  The story talks about how larger homes, in the 4000-6000 SF range, are languishing on the market with few interested buyers.  However, there are some intriguing new possible uses for these gigantic homes:  to house older children aging out of foster care or perhaps multi-generation families can share the space. 

The American Dream includes a home of your own--and during the real estate boom it was 'bigger and better'.  Families traded up to huge homes, newly built in the far flung suburbs, with soaring ceilings, a personal bathroom for everyone, separate 'media rooms' and large bedrooms with walk in closets. Is bigger really better?  I say no..and there is evidence that these McMansions are no longer desirable, even to those who can afford them.

There are practical reasons: large homes suck up a lot of energy, using more water, heating fuel and electricity.  Daily round trips to the office require more gas and time.  Even a trip to the grocery store or to 'the city' for a special event means more planning and time involving traffic hassles.  Families living in these large homes can often spend most of their time separated from each other--each child in his or her own little world tucked away in a bedroom, complete with personal TV and computer; Mom in the huge gourmet kitchen and Dad spending an hour on the highway to get home.  This lifestyle is alienating as well as expensive.

This recession has really brought home the fact that bigger is not always better in housing.  I have heard of many buyers who want to 'downsize'-- a 2000 SF home is plenty. They want lower utility bills and building maintenance.  And if the kids need to share a bathroom--well, they will adjust. Buyers want walkability in their neighborhoods--the ability to walk or bike to a restaurant or grocery store, to school or the park.  That's why homes in Brookside and Prairie Village will always be popular:  there's plenty of home styles and sizes to fit most any requirement, with schools and shopping within a short distance.  City amenities, too, are just a few miles away.  Sharing a smaller space can bring a family closer together--more interaction and sure, perhaps more arguments and compromising. 

If you have a smaller home, appreciate what you have and get creative with your current space to utilize it fully.  Buyers need to seriously think about the additional costs and change of lifestyle when considering a large home purchase.  There will always be more buyers for a smaller home than a McMansion.

Your comments are welcome...  email me or visit my website.  Thanks for reading my blog!

The national media is blasting that home sales are up...compared to last year.  But what about prices?

Truilia is reporting that 25% of homes currently on the market have had at least one price cut. That's a national statistic. According to their stats,   Kansas City MO has experienced 25% increase in price reductions from June '09 to August '09.  CEO Pete Flint also remarked:  "The reality is, today's sellers need to price aggresively to avoid reductions.  Consumers are looking for value and when they find a good deal, they are taking advantage of market conditions'.  SO TRUE!

Sellers, here's the deal:  you can price to sell or you can price and 'wait and see' if someone bites at the over-reaching listing price.  This is the reality in today's market, but so many sellers don't want to hear it. LISTEN TO YOUR AGENT.  CHECK OUT THE HOMES NEAR YOU ON THE MARKET. ACT LIKE YOU ARE A BUYER. 

It always amazes me when I hear someone say "my neighbor/friend/father says I can get xxxx amount for this house and I'm not going to underprice it."  Is  your neighbor/friend/father working real estate every day of the week like an experienced, professional agent? No.  Does your agent want you to get the highest price possible for your house? Yes.  Who wants a quick sale? Agent and seller. And what is a quick sale today?  Within 30 days.  But buyers today are so different from the buyers of 4-6 years ago when the market was hot.  When a house would sell in two days. What's selling in two days now?  A house that is priced right, staged right, and appears to the buyer to be quite a deal! (w hy are foreclosures hot? Because of the pricing!)  I hear it all the time from every buyer:  I want a 'good deal'.  They know this is THE time to buy since it appears we are at the bottom of the market. Today's buyer will keep looking until they find that 'good deal'. And they will look at everything in their price range. As a buyer's agent, too, it's up to the Realtor to point out the 'good deal' to the buyer--and the homes that are overpriced for this market.

Sure, there is a lot of money at stake in a transaction. As a seller, you want the most from your sale. However, today's market favors the buyer.  And buyers know it.

It's frustrating for sellers and their listing agents to have a house sit on the market for months, knowing it would sell if it was priced right and shows well.  Sometimes it's the location that holds back a sale. Sometimes it's an abundance of inventory in a particular subdivision or area.  Most of the time today--it's  price that prevents the sale. (and i"m referring here to moderately priced homes, not the upper end high dollar market). There are buyers out there.  Take a look at your showings and the feedback, ask your agent--that will tell you what's holding back the sale.

Your comments are welcome! Email me or visit my website.

Today the New York Times reports that new home sales (that's new construction) have made their largest monthly gain in 8 years--up 11% in June.  Still, that's 21% lower than June '08.  These are national statistics.  In the Midwest, the paper reports new home sales are up 6% from one year ago.

Good news? Well...like most statistics, it depends on the spin!  Even in a 'down' market, most sales happen in the first six months of the year.  From July-December, sales slide.  And remember that 'sales' means a closed transaction--average time from contract to close is about 45-60 days. So most of these new home sales contracts were inked months ago.

Here's what's happening in my zip code of 64113--a very desirable area of Kansas City MO, full of older homes ranging in price from a fixer-upper below $200K up to nearly $1million:

From 7/1/07-6/30/08 there were 272 sales in this zip code, 133 homes sold at $299K or less. 

From 7/1/08-7/24/09, there were 228 sales, 161 homes sold at $299K or less.

It's good news that homes are selling because that reduces inventory, keeps prices stable, the market will balance out...eventually.  Another interesting fact is that in a normal year, 33% of home buyers are first time buyers; so far in 2009 that figure is 55%.  That is certainly true in my sales this year--many first timers, most sales under $250,000.  The market for $300-$400K homes  is much softer, at least in this zip code.  And if you are selling in that price range, the home better be HGTV Designed to Sell perfect. Buyers are VERY picky these days, want to see EVERYTHING in their price range, feel no urgency to buy (unless there is a specific deadline) and want to be sure they are getting 'a deal'. 

The Natl Association of Realtors is pushing to extend the $8000 tax credit beyond the current November 30 deadline and would like to see ALL home buyers eligible, not just first time buyers.  NAR predicts that if the tax credit/refund was extended, this could spur an extra 700,000 home sales next year.  Don't expect this extension, however.  President Obama is all about his 'health care coverage for all' getting passed first above all else.  Also, if the extension would happen it would have to be deficit neutral-- paying for itself by cutting somewhere else.

Parting words:  Sellers: know  your competition.  Chances are you will have to still compete on price for several more months.Make your house look like a 'good deal' for the price.  Outshine the competition with price and / or decor.    Buyers:  I predict there will be a rush of first time buyers in Aug, Sept and Oct who want to take advantage of the $8K tax credit.  Get out there and start looking NOW in the area you are interested in. Be READY to sign when you see something you like at the price you want..  As we get closer to that Nov 30 deadline--inventory for the first time buyer price range (generally $200K or  less) will shrink.

Need  sales statistics for your neighborhood? Email me and I"ll be happy to send you info!

Here it is..part two of my blog regarding True Confessions....thoughts to share with other agents, potential clients and those interested in the (real)  life of a real estate agent.  These are thoughts I often have that I would like to blurt out at times...isn't that what a blog is for?

4.  Please be honest with me.  If you are considering listing your  house with me, and you chose someone else--please tell me!  You can be diplomatically honest and I want to know. It's like a job interview--when you tell me why I didn't get the job, I'll learn from what you say.  Same thing for buyers--if I give  you a few hours' time driving you around showing you properties (which I am happy to do one time before signing paperwork) and I contact you to follow up--please don't ignore me!  Just tell me you changed your mind, or you didn't think we clicked, or you're not ready--whatever the reason is, please give me the courtesy of a response. Although no one likes rejection, I'd rather hear what you honestly think.

5.  Don't be insulted when I ask 'have you talked with a mortgage lender?'.  The home lending business is quite different from what it was a year or two ago.  I am not asking because I want to know all the details of your personal finances. I am not asking because I doubt you are qualified to purchase a home.  I am asking for a few reasons:  are you comfortable with the payment you've been approved for?  do you plan on an FHA or conventional loan? do you have a sense of closing costs?  If you haven't visited with a lender yet, that's OK.  Don't be embarrassed or feel you have to rush out and do it. It's just something I need to know as we talk about the process and your plans to buy.

6.  I live this job every day..seven days a week. This is a fact for dedicated, service-orientated agents.  Please, listen to what I'm saying and know I'm telling you the truth, what the market is like right now, today.  Don't rely solely on what the national media reports, or what 'great deal' your friend of a friend got on a foreclosure, or the fact that your neighbor's house sold for full price in two days. Don't take it personally if your home needs some extra TLC or staging, if the recommended price isn't what you were hoping for, Every house is different, every market is different, selling in April is different than selling in November.  TRUST is vital in the agent-client relationship. If you can't / won't trust your agent, -- move on.

I may even be able to come up with a Part Three of True Confessions!  But that's it for  now.  Thanks for reading my blog--your feedback is appreciated.  Email me or visit my website, maryhutchison.org