Need More Space?

This is it! A three story home on a lovely, wide, tree-lined street close to Loose Park, the Brookside Shops, UMKC and Stowers Institute and the Country Club Plaza.

Four bedrooms, three full baths, one half bath, two car garage, private drive, updated designer kitchen, newer roof, office space and family room!

Third floor features the large  fourth bedroom and it's own full bath.  Perfect for a guest, student, teen or nanny.  The sellers are ready to move--this is your opportunity to snatch a classic home in a highly desirable location.  $389,000--offers encouraged!  Contact me for a private showing.

                                                  maryhutchison.org

This week's blog is a quick one...not Part Two of "True Confessions" as promised, but information on a new listing near UMKC and Stowers Institute in Kansas City.  "True Confessions" will return!

5835 Cherry...Three bedrooms, one bath, hardwoof floors, large eat in kitchen, fenced with back deck, close to Brookside shops, Trolley Track Trail and bus routes.  Quick possesssion, $182,500 email me for your private tour.  mary.hutchison@prukc.com

Here it is, folks...true confessions, part one.  I'm putting in writing a few thoughts that I want to say regarding a  relationship  with a real estate  agent,   Of course I try and express these sentiments with a bit more diplomacy when talking with current and potential customers.  Here in the blog, they will just tumble out...

1.  I want you to feel like you are my only client...but most of the time you are not. 

I so appreciate those customers who realize that I am usually juggling several clients at once, all in various stages of the buying and selling process.  So when a client calls on Thursday to ask "Can we look at a few  houses tomorrow?" -- chances are I already have my day planned with other appointments and obligations.  Try to give me as much notice as possible--or a few dates when you are free to look--and I'll do my best to make it happen as soon as possible!

2.  I can't answer this question:  Is this a safe area?  How much crime happens around here?

A good question, one that everyone asks when looking at a neighborhood.  However, crime happens everywhere!  If you want to know specifically how much crime is in a certain area, call the local police department or check out www.crimereports.com  .  No agent should represent himself as knowing how much crime happens in a particular geographical area. 

3.  I do not earn 3% commission from each sale. 

Sure, the standard commiision from a sale is 6%, which breaks down to 3% for the listing broker and 3% for the selling broker.  If I make a sale, the 3% goes first  to Prudential, who takes a cut.  Then, the government takes a cut with federal, state and local taxes. Another cut comes out to pay for expenses:  marketing, desk fees, technology fees, E&O insurance, office supplies, postage, copies, gas, etc. After the money trickles down to me, the total amount is usually 50% or less of the initial 3% commission. And sometimes I actually lose money--if I spend several weeks with a buyer who doesn't buy, or marketing a house that doesn't sell or is taken off the market--that's a loss because no sales transaction took place,  so no  income was earned.

Please know the point of this blog is not to complain--I enjoy my job!  And I really enjoy working with all different types of clients.  Some customers are more familiar with how a real estate agent works than others.  I feel it's good to bring these thoughts out there for anyone to think about who is currently using or plans to use a realtor.  Next week:  True Confessions Part 2!

Your comments are welcome email me or visit my website:  maryhutchison.org

Kansas City was home to one of real estate's most forward thinking developers, JC (Jesse Clyde) Nichols.  He developed commercial and residential properties in the Kansas City area, on both the Missouri and Kansas side of the state line.  His most well known achievement, the Country Club Plaza, was the nation's first shopping district built outside of a downtown area.  He called his method of development 'planning for permanence' -- and even in this depressed home market, many Nichols' subdivisions still hold up their value.

A 40 year comparison of average home prices in subdivisions that Nichols built show some interesting statistics.  For example, the average price of a home in Fairway, KS in 1970 was $25,600.  In 2008 it was $332,698.  Part of the genius of Nichols was  he would build small, medium and larger homes in the same subdivision--just a block or so away from each other.  This enabled different types of buyers with different incomes to live in the same subdivision--but all were restricted by covenants and the expectation that all homes would be well maintained.  Generally, his developments were conveniently located close to shopping areas, some within easy walking distance.  After all these years in real estate, I'm finally tackling a book about Mr Nichols to learn more about the man, his influences and his life.

The real point of this blog is to show a comparison of a few of Nichols' developments and how the prices have changed over the years. Note the 2008 average sales price and the percentage change from the previous year.

                                          1980              2000                 2007                    2008

Armour Hills                  67,900          159,892             237,255             223,304       -6%

Corinth Hills                 116,000         214,796             276,530              269,677       -2%

Fairway                           80,100          222,248             331,276             322,698       -3%

Prairie Village                54,400          134,901            195,512             199,125      +2%

Verona Gardens           130,500         217,667            267,606             269,775     +1%

Remember, all real estate is local.  Some subdivisions and cities hold their value better than others.  For an analysis of values in your neighborhood, email me with your address and subdivision name.

Thank you President Obama!

First time homebuyers may now qualify for an $8000 tax credit on the purchase of a new home!  Here's a summary of the details:

• A 'first time buyer' is one that has not owned a home for the past three years.
• Buyer must make less than $75,000 in  income  if single, $150,000 for couples.
• The credit is worth $8000 or 10% of the home's value, whichever is less.
• Claim the credit on 2008 or 2009 taxes.
• Home purchase must be made between Jan. 1-Nov 30, 2009.
• Buyer must live in the house for three years--or the credit will have to be paid back.
• The credit is refundable!  Which means you may get a refund check for up to $8000!  Check with your tax preparer for details on this aspect of the plan.  It all depends on how much in tax you owe--or don't owe--at the end of the year.

This should start moving the market as first time buyers who purchase enable second and third time buyers to move up and purchase..it's a domino effect. 

If you, or someone you know, is searching for that first home...now is the time to buy!  Email me for more information on making that very first home purchase!

Commentary on Kansas City Star Article dated Feb 6, 2009

In a recent front page story of the Kansas City Star, an economist declared average home prices should bottom out in the second half of the year.  The economist was referring the the national housing market--what about predictions for Kansas City?

The accompanying graph along side the story showed up to a 15% decline in local home prices since 2006.  (Portions of the East and West coasts show more than a 30% decline.)  Our area has not suffered as much as other parts of the country.  Even before the housing bust, the local housing market was always one of the most affordable in the US.  Price declines should be made up as the market makes its way up over the next few years.  In addition, the article states new home construction has declined, new home sales inventory is declining as sales pick up, and overall  inventory is going down--which will create a more balanced market for buyers and sellers.

Sellers moaning about declining home values need to remember that during the boom years of the market, roughly 2002-2006--some prices were rising so fast that the market couldn't keep up.  Homes had multiple offers, sold in a few days, prices increased dramatically due to 'demand'--demand that is now in question because of the mortgage crisis. What good are fast rising prices when just a few years later the same house won't appraise for the selling price??  I think  we are undergoing a much needed correction in home prices.  Housing prices will rebound--at a slower pace, which is best for buyers and sellers.

This is the year to buy and sell.  Why?  Because the bottom is here.This year, 2009.  For buyers, the tax credit (that will pass in some form in the Obama administration's stimulas plan) and the low interest rates of under 6% (possibly under 5%) make this the time.  Sellers, if you want to move up, or just downsize, your house WILL sell this year if marketed properly and well maintained. Make your home outshine the competition to get the best price. And those lower rates and tax credits will  benefit  sellers when they turn into buyers. 

Once the market starts picking up--and the media cranks up the positive housing sales stories--it will be too late.  The gloomy mindset that afflicts so many potiential buyers and sellers will quickly turn into a mindset of 'I'd better sell/buy now' and the negotiations will be very different.  Be smart and ahead of the curve--start your research, spruce up the house, and make your move before it's too late.  Real estate will always be a great investment--get ready to take advantage of the bottom of the market and turn it into a positive for yourself!

2008--not a good year for Kansas City area home sales!  Below are statistics for Jackson and Johnson County:  December '08 and final year end figures. 

It is interesting to note that overall, Johnson County had far less pending contracts than the year previous but the average sale price was only off about 3%.  Jackson County finished the year with less pending contracts as well AND much lower average sales price.

2009 should be a somewhat better year, because of less inventory, lower interest rates and the upcoming spring market--when most sales occur, no matter how poor the market.  At the end of '09, I'll check to see if I was correct!

Jackson County

December '08:  pending contracts down 5.98% from 12/07, average sales price down 9.49%.  Inventory down 17.64%.

Johnson County

December '08:  pending contracts down 20.90% from 12/07, average sales price down 15.35%.  Inventory down 5.14%.

Year end 2008 figures:

Jackson County

Pending contracts down 9.69% from 12/07, average sales price down 11.57%.

Johnson County

Pending contracts down 18.63% from 12/07, average sales price down 2.96%.

If you would like an analysis of 2008 home sales in your particular subdivision, email me with your address and zip code.  Thank you for reading my blog, comments welcome!

Sure, the economy seemingly drops deeper every day and the news focuses on the negative...but for many first time buyers, this is THE time to get a real bargain on a house price and a very agressive interest rate.

If you are considering buying your first home, read this recent story from the New York Times. 

http://www.nytimes.com/2008/12/06/business/yourmoney/06money.html?_r=1&em

It offers some good points to think about as you make the decision.  Now is the time to take advantage of the market if you can!

I welcome your comments..email me or visit my website.

Another dismal month for home sales in Jackson and Johnson County..statistics and commentary follow.  All stats are compared to same month one year ago.

Jackson County

Pending Countracts:  down 16.8%

Average Sales Price:  down 22%

New Listings:  down 23.8%

Inventory:  down 16%

Johnson County

Pending Contracts:  down 33.8%

Average Sale Price:  down 4.5%

New Listings:  down 15.3%

Inventory:  down 5%

Keep in mind there are many more foreclosures in Jackson County, in areas with lower home values to begin with.  In the suburbs, having so many homes sit on the market further pushes prices down, and buyers 'lowballing' on offers. 

Both counties have fewer  listings than one year ago, reflecting sellers' hesitation to list if not necessary to move.  Also, at this time of year sellers tend to wait until after the holidays to list, prefering to show off their homes during warmer spring weather when the market is naturally stronger.  

Sales prices for Johnson County are not as affected, with an average sales price of just under 5% less than last year.  Overall for the YTD, Johnson County sales prices are just 2% less than a year ago.  

If you would like specific statistics for your area or subdivision, , email me.  Thanks for reading my blog, comments are welcome!

The song remains the same...the housing market is slow, foreclosures are up, interest rates are low, now is the time to buy!!

But is it really the best time to buy...for you?

Think about these questions if you are a first time buyer...and then make a decision. 

1)  Is your job stable?  If rumors of layoffs are going through the grapevine, try to find out if your job is secure.  If you have doubts, trust your gut feeling.  Don't buy if you think your job is in jeopardy.

2)  Can you make a payment based on one income if you are married/living with a roommate?  Many homeowners purchase more house than they can reasonably afford.  A house payment is just part of the obligation--there are taxes, interest, and utilities as well.  Don't depend on more than one income (or a large percentage of your take home pay) to make the house payment.

3)  Figure out the true cost of home ownership first.  Yes, the interest deduction is a plus at tax time.  Along with the house comes maintenance, repairs, decor.  Think about the extra expenses that will come up and figure a percentage into your monthly budget dedicated to house upkeep.  

4) Are you planning to stay in the home for several years?  It takes time to build equity in a home.  If you plan on a job transfer in a couple of years to a different city, you may not be able to make money on the transaction when you sell.  It's best to live in the home at least four to five years before selling.

5)  What type of lifestyle do you enjoy?  If you travel often for your job, like to take extended vacations, dedicate yourself to long hours at the office, dislike yard work and home repairs--buying a house probably isn't for you.  (Of course you can still own--check out a condo!) 

Buying a house will cost more than renting...but the benefits of home ownership outweigh renting in many respects.  Still, it's never a good time to buy if your financial situation is unstable or the maintenance of a home doesn't fit with your lifestyle.  Take the time to do some math, talk to homeowners--then make the decision if buying is right for  you.

Thank you for reading my blog.  Comments are welcome!  If you  are thinking of buying or selling and would like additional information about the current market in the Kansas City area, email me.

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!

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!

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-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!