This week I heard a radio commercial for a local real estate agent. I  listened closely--wanted to hear 'the pitch' and the approach.  At one point in the ad, the voice says something like: 'it's easy to buy a house--go look at some homes and sign some papers'.  Oh my, it is not that easy...especially in this current depressed housing market. And signing legal documents regarding (probably) the largest purchase of your life should not be taken lightly.

But it can be  fun to look at houses, especially when you click with the customer. It can also be exhausting, depressing and bewildering.

How many buyers actually take the time to interview an agent who will represent them?  It's more common for sellers to interview a few  agents when listing a home.  As with most business relationships, people like to do business with people they like.  And there is the important 'gut' feeling when you are talking with someone.  I do think that more buyers should actually interview agents before they start looking at homes.  Even if it's early in the process and you don't plan to buy for a few months--talk to friends, get referrals, and take a half hour here and there to talk to potential  agents. A referral from a good trusted friend makes all the difference, but still--have that important get-to-know-each-other chat before you decide. 

And here's a tip:  if you talk to agents a few months before you  are ready to seriously start looking --tell them what you want, your price range, the location. Get a feel for the buying process. Then, see how many agents stay in touch with you even though you won't start looking for a while.  No one wants an agent who will bug them constantly to buy--but a good agent will find a way to stay in touch through the occasional email or mailing to show you they want your business and will work for it.

And what questions should you ask your potential buyer's agent?  That's the subject of the next blog post.

Thanks for reading my blog. You can reach me at mary.hutchison@prukc.com or my website.

I recently read The Opinionator column in the New York Times entitled "Home for Life".  Author Allison Arieff was complaining about the fact that for too long, homes have been designed with the 'eyes of resale', meaning large master suites, Viking stoves, granite counters, etc.  It was 'all more about the future tenant than the current resident'.  Other comments included that for 'too long, home design was hijacked for the allure of resale value' and maybe now a home will be considered not so much 'an investment but as a home'.  She then went on to talk about current trends for home buyers--namely universal design elements, smaller homes, and  the addition of 'granny flats'--additional rooms so other family members can move in if needed.

Although Ms Arieff made some good points, overall the theme of this piece was all wrong. The majority of buyers don't just buy one home in their lifetime--usually it's two or three, more if a career requires relocation. When I'm showing a buyer a home, my two main thoughts are:  1) does this house seem to fit what my buyer wants? and 2) what about resale?  Buyers often look surprised when I mention resale--but it IS important. When walking through a home if there is an obvious feature that will affect resale at any time, I bring it up.  Some features are obvious:  the home is located on a busy street, very close to a school, backs up to commercial property, doesn't have a backyard, no garage, unusual floor plan, etc.  It may be a feature that doesn't bother my buyer -- or maybe my buyer didn't notice it, but will when I point it out.

Driving through just about any new home development these days, you will see many 'cookie-cutter' features in each one.  These include the large hearth kitchen, sitting room off the master, bathrooms the size of a bedroom, high ceilings, beige walls, granite counters and first or second floor laundry rooms.  Why?  Because that's what so many suburbanites want!  I don't think it's all about resale in these communities, it's about what current buyers are looking for--and these features are generally a 'must have' for suburban buyers. In ten or fifteen years, some of these amenities may be obsolete and there will be  other hot design in it's place. Often even in the older, smaller homes, walls are knocked down for a more open feel with a larger kitchen, laundry rooms are moved up a flight or two and counters refitted with a more modern looking counter top.

The general home buying public has learned several lessons from the crash in the housing market. These include:  don't use your home as a cash machine, don't get into a crazy adjustable rate mortgage, plan on staying in the home for several years and keep it well maintained and updated. But the only buyers I know that buy with 'resale' as an important consideration are those who flip homes.  For everyone else, it IS that sense of community, the feel of the home, the decor potential and the interior/exterior features that prompt an offer. Resale is just one component.

Thanks for reading my blog--your comments are welcome!  You can also email me or visit my website.

I'm at the listing appointment, meeting the owner, knowing he's interviewing a few other realtors.  It's a gorgeous home, well-maintained with great curb appeal, a desirable location and a move-in ready interior. I want the business, but also want to get to know the owner better--I can tell he and I are interested in a lot of the same topics of conversation (cooking, books, Brookside, his work).  I'm thinking, let's skip the business part and just talk. (NOT flirting here--both of us in happily commited relationships).

A day or so later, I get the call. You're the agent we want to work with. Hooray!  I think, yes, and you are the type of client I love to work with.  We get the paperwork done, I start the marketing process and poof:  just two weeks later the house is sold.

Everyone's happy, right?

Yes .... but....he's relocating  of town. I'm already going to miss the long chats on the wrap around porch, ping-ponging from topic to topic, talking about politics, health care, movies,local happenings,  etc.  Feelin' like I just made a great new friend in the neighborhood that's moving on too soon.

So often during a transaction, you are communicating with the client through several weeks and sometimes months--during tense negotiations and difficult conversations. Almost daily phone calls and hours in the car provide a lot of opoortunity to talk about subjects other than the real estate business at hand. Sometimes those conversations click, sometimes they stay mostly business-oriented.  Everyone is different. Then when the business is done--it's harder to just walk away and get on with the next deal. I want to keep those I clicked with in the orbit.

Not everyone I work with becomes a friend but many do..especially the ones that move into Brookside. That's the best perk of this job: meeting clients who eventually become friends. Every year I look over my sales and think about the new people I've met, the ones I really like to stay in touch with, have over for dinner, meet up with to go shopping, attend their  weddings and visit the new babies. I'm taking about you Christian, Julie, Lauren and Paul, Alex and Stephanie, Mic and Missy,  Judy,..and many more. Wow, all these great new people I get to know through this job!

So goodbye soon to you Mr Mark.  Yes there's phone and email, but not the same.  Every time I drive by your house (and I do at least once a day), I'll think about having a cocktail on the porch, talking about...whatever, enjoying yet another friend who started out as a client.

Heavy sigh.

The new rules regarding lead based paint renovation, repair and painting from the EPA are now in effect.  For those of you living in a home built before 1978 listen up:  it's now going to cost a lot more to remodel or paint your home. Even a small remodeling project will cost more.

Contractors and renovators must now be  trained and certified in EPA's new lead-based paint work practices. (If you want to do these projects yourself to your own property--you are exempt).  Once trained and certified, here's what's required when the work is being done:

*Protective plastic sheeting to floors and other surfaces and extend the sheets a minimum of six feet in all directions from where the paint will be disturbed.

*Area must be misted with water to minimize dust; components must be pulled apart instead of pounded or hammered to prevent spread of dust and particles.

*Power sanders/grinders must have HEPA vacuum attachments to capture dust.

*Workers should wear respirators and disposable suits, gloves, shoe covers.

*After the work is complete, contractor wipe all surfaces  with disposable cloths and compare the cloth with an EPA card that will determine if lead particles are still present.

*Records must be kept by the contractors for three years to prove the work was done according to the EPA methods.

Start adding zeros to the cost of your renovation project.  Contractors I've spoken with (remodelers, painters, window installers) estimate that prices are increasing by 10-40% depending on the size of the job.  Not only is more equipment required, but more labor hours are required. 

Fines start at $37,500 per day.  That is not a typo.

Yes we all know lead paint is a health hazard.  I've lived in homes containing lead paint all my life--and so have my kids. I've also lived in homes with asbestos covered pipes and radon. (Why doesn't the EPA require asbestos and radon testing as well?)   I understand what the EPA is trying to do here--protect people from the possibility of lead poisoning.  But I feel there should be an opt - out waiver  clause for homeowners who do not want to pay the hundred--and thousands-- of extra dollars required to meet these new rules. Contractors who have worked around lead based paint for years and years aren't dropping dead every day. Let the homeowner make the choice.  After all, it was the homeowner who decided to purchase a home built before 1978 and had to sign the lead based paint disclosure form before purchasing. 

Your comments are welcome..thanks for reading my blog.  Visit my website at maryhutchison.org

Recently I obtained my SRES designation--Senior Real Estate Specialist.   I enjoy working with seniors who want to downsize and perhaps move to an independent or assisted living home.  When I was taking the classes for the SRES, I noticed it's aimed to help buyers or sellers who are 55+ years old.  Many of the people I know in their 50s do not consider themselves 'seniors' or even 'older adults' -  but the smart ones are starting to think and plan for the day when they will need special housing and assistance as their bodies wear out.

With that in mind, here are the trends in housing for those who want to age in place.  If you are planning ahead for retirement and a possible downsize in housing, these features will be important to you:

• Master bedroom on first floor.  Although climbing stairs is good exercise, there are trip hazards as you age.  And how many older  people do you know that have had knee replacements?
• Large master bathroom.  Easy to navigate a wheelchair if necessary; level, step in showers; grab bars and wide door frames.
• Washer/dryer on main level.  Even those under 55 want this feature--having the washer/dryer on the main level saves trips up and down steps and is more convenient for carrying clothes back and forth.
• Private patio.  Although it's nice to know the neighbors, many people crave a sense of privacy as they age and want a secluded outdoor space to relax.
• Smaller home but energy efficient with storage space.  Retirees are on a fixed income.  They can make do with less.  They don't want 3000+ SF homes with soaring ceilings and extra, unusable space.  An open floor plan is still desirable, along with easy to open windows, added insulation, energy efficient features and smaller yards.  

Aging in place is something to plan for when you are planning retirement.  For more information on aging in place features, email me.  And if you have an older relative thinking about making a move--I'd be happy to come by for a visit and talk about various options regarding downsizing and housing.  Thanks for reading my blog!

This is the kind of home you keep in the family for generations...there's lots of room to grow in this 4 bedroom, three and a half, bath,  3 story home in Brookside!  The first floor offers a living room, large dining room, designer kitchen, mud room, family room and office...the second floor features three large bedrooms, two full baths, a cozy library and a sunroom.  The third floor can be a bedroom or an office/nanny's quarters and features it's own full bath.  Full basement, hot water heat, backyard deck and two car garage with a private drive.  You can't beat the location--nestled between the Brookside shops and Loose Park, close to UMKC, Stowers Institute, the Country Club Plaza and the Trolley Track Trail.  I used to live on this block...so I can vouch for all of the friendly neighbors!  441 W 58th Terrace, $349,500

Now is the time to buy while interest rates are low and prices favor buyers...call or email me for a personal tour!  Mary Hutchison    816 510 1262

The old saying is true....in real estate it's all about the location.  That's the first thing a buyer decides when looking for a home:  where do I want to live?

Homes near UMKC retain their value well..and here's a new listing that offers a lot of space for the money.  It's a two story home with three bedrooms, office space, and two baths, plus a one car garage.  The hardwood floors in the living room and dining room have been refinished, and the kitchen offers lots of cabinet and counter space.         

 There's a deck off the kitchen, a fenced yard, beautiful original stain glass windows and newer windows in the rest of the house.  It's one block from the pricier Crestwood neighborhood, plus close to Brookside, UMKC, the Country Club Plaza and the Stowers Institute.                                                                      

5628 Locust, Kansas City MO 64110  Kingston subdivision                                     

Immediate occupancy!  Priced at $189,000.  Call ( 816 510 1262 )or email me for a private tour!

Thanks for reading my blog.  Visit my website, maryhutchison.org

Do you know a senior who is thinking of making a move?

Seniors and their families are invited to a free seminar this week at Armour Oaks Senior Living Community, March 4 at 10:00am, 8100 Wornall Road. 

I will be a featured speaker, along with Cindy Murphy of Downsizing Simplified.  I  will talk about the current state of the housing market in the Kansas City area, and Cindy will discuss her services helping seniors downsize and prepare for a move.

Working with seniors is a market I focus on...and enjoy!  Recently I received my SRES designation, Seniors Real Estate Specialist.  I've found that seniors who choose to move to senior independent living are much happier--and healthier--than those who stay in a home alone.  Waiting until a senior is forced to move (because of an injury or doctor's orders) is not pleasant.  Often the families are scrambling to find a suitable location, decisions are rushed, and the senior feels like s/he is abruptly making a life changing move in very little time.  The seniors who actively control their move, research varioius housing options and move when they are still active and healthy ultimately make a much better adjustment.

Armour Oaks offers many types of care:  assisted living, skilled nursing care, and independent living.  They accept Medicaid in both the assisted living and skilled nursing areas.  Their new independent living center is comfortable and attractive:  a beautiful brick building with social areas and wonderful food served restaurant-style.The 25 acre campus is in the Waldo/Brookside area, and their housing options are well priced. Armour Oaks is a local not-for-profit organization.

Please join us on March 4..you can just show up at 10am or call ahead, 816 363 5141.  Refreshments will be served--hope to see you there!

Thanks for reading my blog.  You can contact me via email or visit my website.  Comments are welcome, I cannot respond directly to comments via the blog.  For personal assistance, use my email address.

Recently I attended a  community meeting about Rockhill Greens at St Peter's Legacy Center.  Because I work with senior adults transitioning to new housing, I was curious about the details of this proposed project.  Here's a brief rundown of what I learned:

Kelly Hrabe was the representative for Sonoma Development Partners, the entity behind the project.  Kelly lives nearby in Armour Hills and belongs to St Peters.  Sonoma Development Partners is a 'special proposed entity' for this project and is a legal 'structure' to get the project done.  Kelly is part ofThe Net Giver organization, a for-pr oft community that works with 'affordable and market rate' senior citizen communities.

Rockhill Greens would ultimately be a 37 acre campus; right now the developers have a purchase contract for 14 acres.  The site is part of the Research Medical Center campus, between Troost and Holmes.  Current buildings would be demolished.

It would be a mixed use development, with a little retail but mostly housing for seniors.  The first phase includes 130 units, 90 of which would be assisted living and 40 memory care units. Eventually, independent living, adult day care and dementia care would be offered. The development would be enviornmentally  friendly, with an organic garden, walking paths and an amphitheater.  Residents could be some of the employees.  Seven acres would be sold on the 'open market' .  The property would be managed by a different company.

At this point, Sonoma Development Partners are asking for community support, asking for letters or emails that can be used as they prepare for a presentation in Jefferson City this summer to the Economic Development Council.  This project must be issued a 'certificate of need' from the state to continue. 

Initially, I am in favor of this project.  The need for senior housing will grow as the baby boomers age, and the campus is in a central part of the metro area.  Affordable pricing for the units is a must--and Mr. Hrabe could not give any information at this time on resident costs. If the project is as attractive, affordable and community oriented as Mr. Hrabe says, Rockhill Greens will be a neighborhood asset.

 You may have been approached recently by someone asking you to sign a petition to change  the Missouri constitution, preventing a new tax on real estate transactions.  Read on for details...and why you should sign the petition.

A real estate transfer tax (levied as part of closing costs) is currently in place in many other states--including Kansas.  Missouri real estate agents do NOT want a transfer tax hitting homeowners in this state.  With tax revenues falling and budget cutbacks continuing, state legislators will try anything to get more money into Jefferson City.  That's where this potential additional tax comes into play.  The tax would be levied on any transfer of real estate at the time of closing and affect buyers and sellers.  This ballot initiative would constitutionally protect your real estate property from any transfer taxes if ratified by voters.

Here's how the petition reads:

Shall the Missouri Constitution be amended to prevent the state, counties and other political subdivisions from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate?

The answer is....YES!

We already pay property taxes every year..why submit buyers and sellers to a new tax?  The housing market is still fragile and it will be years before some homes regain the value they lost during the  recession.  Closing costs on each deal already average thousands of dollars--we don't need yet another tax to pay when buying and selling property.

The petitioners would like 230,000 signatures by May to get the amendment on the ballot.  This issue would likely be voted on in November of this year.  If you are a registered voter of Missouri, please sign this petition to put the issue on the ballot for a statewide vote.  Major funding for this initiative is provided by the Missouri Association of Realtors.

Comments are welcome...if you would like a personal response, please email me.  I cannot respond privately to individuals who publicly post comments or questions.  Thank you!. 

Welcome 2010! Personally, last year was not a bad year for my real estate business--worked harder, pursued more business and it paid off!  Luckily, none of my past customers have lost their homes or gone into foreclosure.  I thing the key to a stronger housing market is : STABLE, WELL PAYING  JOBS! 

Thinking about my business for the next year and setting some goals, I decided to write a few New Year's Resolutions regarding my personal contacts and customers.  I'm sharing them on the blog to keep me focused and as a reminder through the coming year.

1.  Be more patient.  This resolution refers to first time buyers.  Now I really enjoy working with first time buyers--they are excited about buying a home, have lots of questions, and really appreciate the guidance of an experienced agent.  Typically, first time buyers want to look at lots of homes--25, 40, 50 or more--just to be sure they've seen 'everything' out there and that they pick 'the right one'. First time buyers are usually looking at a price range of  well under $150K. Any honest agent will tell you it's tiring and physically  taxing to constantly show homes to a buyer that you know won't be the right fit. The final paycheck is pretty low after expenses.  So it can be easy to slip into an irritated mood, showing homes that you know the buyer won't want. This year I resolve to be more patient when showing that 41st home and  more proactive in explaining, ahead of time,  why the homes they may want to see won't work.

2.  Talk about the psychology and strategy of negotiating a deal.  It's easy to explain the technical parts of the contract, the steps you take to get a deal done, the paperwork involved.  After all of these details are covered, it's a good idea to talk about what could happen, the pros and cons of the offer, how it may be received and the stress  of going back and forth with pricing and concessions several times.  Initially, to make an offer or to know you are receiving an offer is a thrill.  That thrill can quickly turn into resentment and frustration on both sides. This year I'm going to take the time to prepare my client in advance for the best and worst case scenarios and the finer points of the thought process behind the actual negotiations.

3.  Show more appreciation for my clients--verbally.  Whenever a client sends me a referral, I always send them a thank you note with a small gift card or flowers.  If I end up working with the referred person, I follow up and again say 'thanks' to my customer.  This year I resolve to also take the time to make a phone call as well to say 'thanks' for the referral.  In addition, after a deal is closed, I will verbally thank my clients for their business besides giving them a closing gift and thank you note.  When a client takes the time to tell me in person that I'm doing a good job, thanks for everything, we are impressed with your services--it really makes my day!  I want to do the same for my customers by sincerely thanking them more than once, looking them in the eye and really voicing my appreciation.

The new year is a good time to step back, reflect and think about how you can make your business better.  These resolutions are pretty simple and should be easy to keep.  I just need to remember to pause and think about how I can make each transaction better from beginning to end, using these reminders. Now, on to some personal resolutions...which I won't publish here!

Thanks for reading my blog, your comments are welcome!  Visit my website:  maryhutchison. org

Taking a break from the blog for the holidays.

Happy 2010 everyone!  Feel free to read past blog entries.

Mary

Got a smaller home to sell?  You are in luck--McMansions are out, smaller homes are in.  Why?  It's the economy, stupid!

It wasn't that long ago that most buyers wanted a big house--the soaring two story entry halls, the separate rooms for an office, library, sitting room, media room, the big kitchen and hearth room combo.  Sure, some people still want these 3500-5000SF homes, but more often these days I hear "we want to downsize'.  And the reasons are practical as well as psychological. People are realising they can live with less. In addition, first time buyers represent a large block of buyers today with the $8000 tax credit--and typically, a first time buyer starts out with a smaller home.

Buyers are attracted to the simplicity and affordability that is offered in a smaller home.  These homes are typically more affordable and energy efficient.  Buyers see that their choice of a home is a way to control costs, because there are so  many costs they can't control (gas, food, taxes, college tuition, etc).  Locking into a fixed rate  loan on a smaller home --one that doesn't take two incomes to support--is a good investment and a controlled expense.  Often, the smaller homes are within walking distance to many amenities that buyers want:  locally owned shops, a small grocery, the bus line.  My neighborhood of Brookside in Kansas City MO is a model for the New Urbanism movement (promoting walkable neighborhoods) and has been copied in several areas around the U.S.  Of course, many of these New Urban neighborhoods ... are just off a highway exit.  Still, the charm of Brookside homes (most built in the 1920s and 30s) along with the bike trails and amenities within a short walk of  most homes keeps up the values of these homes. In addition, Brookside is within a few miles of downtown KC, two colleges,  nationally recognized research institutions, museums and a large city park. It's easy to work ,play and live within a ten mile radius of your home.

So if you have a smaller home to sell--don't fret.  Play up the positives of the smaller space.  Have this information ready for buyers:

• property tax info compared to a larger home nearby
• monthly utility bill averages  (and any energy saving appliances or features of the home)
• info regarding access to bus lines
• maps showing  schools, parks  and shops within walking distance
• smaller yard = less outdoor maintenance

In preparing the inside of your home for the market, remember that decluttering a small home is even more important than decluttering a larger home.  Be sure each room has an obvious, primary function and play it up--a kitchen is for cooking,  the dining room is for dining and doesn't double as an office.  Closets should be organized and neat with some open space.  Use lighter colors on the walls and keep lighting focused yet cozy--not harsh.  No large scale furniture pieces should  dominate a room. Play up small nooks for a reading area or homework/computer table. Clean out the basement, organize storage space and have this area well lit. Kitchen counter tops and tables should be mostly clear of appliances, heavy decor and lots of personal photos.  Show how each room can function as it's intended with a minimum of extra 'stuff'.  Make each room feel comfortable and welcoming, which is much easier to do in a smaller space than a large room with soaring ceilings.

Remember that a bigger house can mean bigger problems, and it surely means more maintenance. Your smaller home can be attractive to what many buyers are looking for right now--so play up the positives of living in less space while still keeping it stylish!

Details, details...a short blog entry regarding details for the $6500 tax credit for current homeowners.

If  you have lived in your current residence for at least five years and you buy a new home, here's a brief rundown of the requirements for the credit:

*Effective date:  11/6/09

*The contract on your new home must be binding and effective by April 30, 2010.

*You must close on the new home by July 1, 2010.

*Income limits:  $125,000 single person, $225,000 married couples.

*Purchase price of your new home must be $800,000 or less.

*You do not need to sell your current home to claim the credit but you must occupy the new home as your primary residence.  You can keep the first home as an investment property or second home.

*You must keep the home you purchase at least three years or a portion of the credit must be paid back.

Thinking of sellilng your current home and buying a new one?  Use the next couple of months to get your home 'show ready' to put on the market in January.  Start looking  now for the type of home you want to buy--visit open houses, look on line, interview realtors. Do your homework, be prepared and take advantage of this opportunity to upsize--or downsize--your primary residence while interest rates are low.

Need more information about home prices in your neighborhood?  Email me and I'll send them to you.

Thanks for reading my blog!   maryhutchison.org

This is traditionally the time of year when the new listings start to slow down...as we get closer to the holidays, potential buyers focus on other more pressing matters and sellers often decide to 'wait until spring' to list the house.  In addition, homes don't show as well during the cold winter months.

During this past Tuesday's realtor tour, I saw three houses worth a look--if only I had buyers for them!  Still, want to share them in the blog in case YOU happen to know someone looking in the Brookside/Leawood area. 

Who wants a Leawood ranch style home?  This one offers an excellent location, just off State Line and 83rd St.  It features a brick exterior and new roof.  Inside, it offers a large kitchen/family room area, three bedrooms, two full baths and a main level laundry, plus a patio off the family room and a two car garage.  This home could use a little  updating but is perfectly liveable as is.  Priced at $329,500--this home will only grow in value as the years go by.

Across the state line on the Missouri side, popular Brookside always has a wide selection of homes for sale--at different price points with various floor plans and features.  Bungalows are popular in Armour Hills, and this one on E 70th St is larger than it looks from the outside.  Updated throughout, this 3 bedroom 2 full bath home has a two car garage and a large master suite on the second floor. The original trim woodwork is not painted and it can come across as a bit dark on the inside.  But for the price ($225,000) and location, it's a good buy.  In addition, I have friends on the block--friendly neighbors are included with the purchase!

                           Finally, another Brookside home on E 72cd Terrace.  This tudor style two story is two bedrooms, one and a half baths with a one car garage for $188,000.  There is a small office room on the first floor and a small eat in kitchen, with a deck in the backyard. Decor inside is shabby chic, and although you can't see it from the picture, the walkway up to the house is very attractive  work.  Walk to restaurants and other services on   Gregory from this home.                                                                       

(OK, my formatting on the blog isn't the best and I'll have to work on it.)  Please note, these homes are not my personal listings but I have toured them and feel they are nice properties to show.  If you are interested in looking at homes on line, email me what type of home you are looking for and I'll set you up!  Thanks for reading my blog; comments welcome.

A catchy title to this blog entry....so what's the catch?

With the federal $8000 tax credit expiring in a few weeks, I wanted to talk about another program, available in Kansas City MO only, for first time buyers.  It's called the KC Dream Home Program and one of my buyers used it this summer to purchase a house in Waldo.

Here's the good news:  this program will give eligible buyers CASH for down payment and closing assistance to purchase a home in the KCMO city limits.  This money is actually a 'loan'--but you don't have to pay it back if you live in the home ten years.  More on that later.  The amount available is up to 20% of the purchase price of the house, maximum $20,000.  Other requirements are:

• You must be a first time homebuyer
• Income guidelines:  up to $39,400 for a single person, $45,050 for 2 persons.
• The home must be priced under $150,000
• You must attend a homebuyer's workshop (usually on a Saturday)
• A KCMO inspector must inspect the home before closing
• There's lots of paperwork to complete (of course)

Your lender  can ask  for the money  AFTER you have a signed contract to purchase a home.  You can fill out the paperwork BEFORE you buy a home.  Buyers are not guaranteed they will receive the funds--there is only so much money in the pot to go around.  But it's worth checking out if you are serious about buying a home. A 20% loan from the City could eliminate your monthly PMI costs and effectively lower your monthly payment. 

Now about the 'loan'.  At closing KCMO will give your lender a check for the loan amount you qualify for. 10% of the loan is 'forgiven' every year..so if you live in the house ten years, you don't owe the city any money.  If you move after 5 years, you will owe 50% of the money that was 'loaned' to you. 

Typically it takes 45-60 days to close a home purchased with the help of the KC Dream Home Program. I was actually surprised at how relatively easy the process was when my buyer used this program this summer. It's worth it if you are willing to put the time into completing the paperwork and attend the workshop.  If you would like more details about the program, email me

Thanks for reading my blog...your comments are welcome! 

"Let's look at short sale homes--I've heard there are some real bargains out there!"

How many times have I heard a variation on this statement this year??  I'm going to be very blunt and honest in this blog regarding the hassles of a short sale.  Buyers who think they can pick up a 'deal' need to be educated FIRST on what happens with a short sale transaction--and then decide if it's worth the hassle. Especially the first time buyers!

1)  Know what a 'short sale' is.  The owners of the property have spoken with their lender regarding the hardship of making the monthly payment.  The lender agrees to accept LESS than the full balance of the mortgage.

2)  Know that there can be more than one lien on the property.  That means that all banks with a stake in the property have to agree to take less than what is owed, not just the first/primary mortgage holder. All lienholders must sign off on the transaction.

3)  Know that there WILL be delays of  weeks, usually months, as the buyers wait wait wait to hear back from the lenders/investors regarding how much less they will take for their payoffs.

4)  Know that banks are overloaded with short sales and they are short staffed to deal with them...that is part of the reason it takes so long to get answers.  You are one buyer interested in one house--the bank may have hundreds of short sales to deal with at the same time.  Unlike agents, bank employees  do not work 24/7.

5)  Know that all the documents are screened by more than one party--the banks, the 2cd and 3rd lien holders, and the mortgage investors.  Quite often the second and third parties will hold up the transaction, trying to get a larger share of the proceeds from the transaction.

6)  Know that there can be more than one buyer making an offer on the same house--a bidding war may result. Offers from other parties can be considered by the bank at any time during the process.

7)  Know that although the buyer can and should have a professional inspection done on the property, it is likely that the seller will not have money for repairs or extra concessions, like seller paid closing costs.

8)  Know that it can be easier and faster to buy a foreclosed property.  Why?  Because the bank already owns it.  Foreclosures often have their own challenges--that's for another blog.

9)  Know that real estate agents often do not make a full commission on a short sale.  it takes ALOT of extra time and hassle to deal with a short sale.  Follow up calls, paperwork, little surprises that pop up all the time--for a deal that has maybe a 50/50 chance of closing. All agents work on commission--some agents feel it's not worth their time to deal with a short sale because of all the time invested for little -- or possibly no--compensation. Know that an agent only gets a portion of the  standard 3% commission from the purchase price, not the full 3%.

As a buyer, if you are mentally prepared to put up with the delays and hassles of a short sale--expect the worst!--then go for it.  For most people, finding the home you want and going through the normal sales process is stressful enough--it's such an emotional transaction.  Know the problems you'll encounter up front, be prepared to wait and quite possibly not get the house at all --and then decide if a short sale is worth it for  you.

Thanks for reading my blog.  Contact me or visit my website if you would like to talk about buying or selling a home.

Desireable Armour Hills is one of the largest subdivisions in the Brookside area, so I have decided to report each month on the home sales stats in my blog.  There are over 900 homes in Armour Hills, and as a resident myself, I like to track sales here.  Average sales prices have declined, still, there is always plenty of interest from buyers looking for homes.

In September 2009, two homes sold (that is, they 'closed') with an average price of $208,250.  By comparison, six homes closed in August 2009, with an average price of $231,671.

There are nine homes in Armour Hills that are pending (meaning, waiting to close) or on back-up status (meaning there is a contract on the home and the buyers are conducting inspections).  The average price of these homes is $287,272.

As of today, there are 27 homes for sale in Armour Hills, with an average price of $242,272. 

These stats reinforce the trend we've seen all year:  first time buyers are the majority of the market (as they buy the lower priced homes; the abundance of inventory pushes prices down; higher priced homes sit on the market longer; there are plenty of homes for buyers to chose from.

If you are a resident of Armour Hills, or are thinking of becoming one, email me for more detailed statistics of this market.  Comments welcome--thanks for reading my blog! maryhutchison.org

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 Association of Realtors is putting the pressure on our elected leaders to extend...and even expand..the $8000 tax credit/refund for first time buyers.  Currently the credit is due to expire on December 1, meaning the house sale has to be closed by November 30--which is the Monday after the long Thanksgiving weekend.  Buyers:  do NOT plan on closing that day!

Personally, just over one half of my sales so far this year have been first time buyers.  In 2008, it was well less than half.  So would those first timers have bought anyway this year, if the tax credit was not in place?  Some would have, sure, but most -- I don't think so.  I know the $8000 incentive pushed some fence sitters to sign at the X.  It's also interesting to note that the usual 'move up' market--meaning those persons buying their  second or third home--are not 'moving up' this year.  I've experienced that as well, as possible sellers feel they can't get what they want for thier house so they don't list it, or they list it but it doesn't sell, or they are upside down on their loan due to falling home values or--and I think this is a big reason--they are afraid of a layoff and don't want to risk a larger house payment.

Each of my first time buyers this year not only bought a house, but stimulated the economy in other ways along with it:  they bought furniture, appliances, lawn mowers, home decor; hired a handyman for various home fix up jobs; hired a mover, went out to eat, bought beer and pizza for the friends who helped with the move; you can see the domino effect here.  Perhaps best of all, these buyers realized their dream of home ownership much earlier than they once thought, and they are excited about becoming part of a neighborhood, taking pride in their home's appearance and creating a sense of community you don't have in an apartment rental.

These are the pros of the tax credit.  The cons of extending it?  The cost, of course.  It's going to cost almost twice the projected amount anyway--extending the credit and possibly expanding it will add more debt to all taxpayers.  But like the 'cash for clunkers' deal, the psycological effects of buying a new home can't be priced in dollars so easily.    Just about every buyer I talk with says 'we like to entertain, we like to have friends over'.  That' pride of ownership is worth more than $8K.

The current health care debate shadows everything else in Washington and the rest of the country right now...except unemployment benefits, which have to be extended every six weeks or so.  Don't count on the $8K tax refund extension.

One final word...if you are a first time buyer and you don't buy now--you'll probably regret it next year.  Chances are you won't get a better deal than you can now.

Thanks for reading my blog--comments welcome!  Email me or visit my website maryhutchison.org