How To Make The Move Easier On Your Family

Call Tom McChesney with Keller Williams Key Partners 913-908-2453 or email me if you would like professional representation in purchasing your next home.

Find out what your home in the Greater Kansas City area, including Johnson County, KS is worth.

People generally have two kinds of needs during a home purchase. First are the transactional needs, such as searching for a home, obtaining financing, negotiating the terms of purchase, completing paperwork and legal documents, and arranging the move. The second are emotional needs, which can be more stressful than the financial ones. The following are some tips to help ease the stress.

Prepare Your Children

Although you may have lived in your current home for just a few years, four years is half the lifetime of an eight-year-old. Your home may be the only home your children remember. It’s where they feel safe and it’s probably the center of your son or daughter’s world.
Be sure to announce the move in a completely upbeat way. You might talk about how beautiful the new neighborhood is and how good the schools are. Bring your children to the new home, if that’s possible or positively describe it to them. Find out what your children’s favorite things are in your current home, and then try to re-create them in the new home. Keep your children actively involved. For instance, take them shopping for paint, bedspreads, carpets, and other items for their new room.
Your children are bound to have worries during the move. Help lessen these anxieties by finding ways to make parting pleasant. For example, plan a going-away party or create a photo album with pictures of neighbors, their home and the neighborhood.

Gain Knowledge

As you begin the process, you may start to feel out of control, as though other parties to the purchase transaction are running the show. Your mortgage company, the appraiser, the inspector, and the seller all have certain powers to approve or disapprove of your overall plan to purchase this home and move successfully. To alleviate your feelings of helplessness, one of the best things you can do is to understand as much of the purchase process as possible. Work with your real estate agent to prepare yourself for the unknown and tie down loose ends.

Trust the Process

There can be so much to do that it’s easy to panic. Buying a home may feel risky, but the truth is it’s an opportunity for you and your family. Even though you can’t predict what will happen every step of the way, your real estate agent helps people buy and sell homes as a profession! Your agent has been there before and understands that this is a major upheaval in your life. Trust that your agent is looking out for you on your way to a successful closing and move.

Be Flexible

Although your agent will do everything possible to prepare you for your home purchase, there is no such thing as a perfect world. The property inspection may reveal areas of concern, or closing may be delayed for some reason. Try to take a deep breath and be flexible in your thinking.

Seek Entertainment

Whenever you feel things are spinning out of control, find a diversion! Take a walk around your new neighborhood; go out of town or to a movie with your family. Whatever outlet works best for you, this is a good time to engage in it! Remember to take one “move” at a time.

My Last 5 Sales: Proof the Market is Red Hot!

The last five sales transactions I have been involved in as the listing agent demonstrate just how good a market it is for sellers in the Kansas City Metropolitan area right now! The key to taking advantage of this market is to position your property properly in the marketplace. My clients receive this positioning! The average listing in the KC Metro area sold in 69 days in April 2016. These five listings sold on average, in less than 3 days. 

A listing in Lee's Summit, MO was on the market for just three days before going under contract for list price. Another listing located in Kansas City, KS was on the market four days before going under contract for MORE than list price. This seller received multiple offers as well! On the far east side of the Kansas City Metro, my Blue Springs MO listing was on the market just one day before it went under contract for MORE than list price. I also had a listing in Leawood, KS that sold in two days for list price and lastly, I had a property listed in Kansas City MO that sold in just two days, had multiple offers, and was sold for MORE than list price! 

If you are thinking of making a  move, and would like to receive the benefit of this expertise, give me a call! 

EDITDELETE

Are You Thinking of Buying Directly from a For-Sale-By-Owner?

Provided by Tom McChesney of Keller Williams Realty Key Partners LLC. 

Call 913-908-2453 or email me if you would like professional representation in purchasing your next home.

Find out what your home in the Greater Kansas City area, including Johnson County, KS is worth.

Whether you made a conscious decision to purchase a home For Sale By Owner, or happened to find the home of your dreams through a FSBO, you should weigh the financial and emotional risks associated with dealing directly with a FSBO.

First and primary: Do you know what constitutes a valid contract? Are you absolutely certain the seller knows? Where will you obtain current, legally approved, valid residential real estate sale documents for your State? Laws vary from State to State and legal contracts undergo frequent revisions. Real estate documents are lengthy and filled with language difficult to comprehend. Waiting until the highly emotional period of contract negotiation (perhaps in the presence of multiple offers) could mean you may not have the time or inclination to thoroughly review a lengthy sales contract. You may not have the time to consult with an attorney either! Take some time before you begin looking at homes to obtain and familiarize yourself with current real estate documents in your State. If you don't understand the contract in its entirety, consult with a real estate attorney. (Don't depend on or trust the seller to "take care of everything" or advise you.)

A real estate transaction often starts out well, with both parties believing they understand the terms and conditions agreed to. Buyer and seller may even feel an affinity towards one another, but that can change quickly. A house isn't just a house, it's been "home" to the seller. That alone implies emotional ties. The seller may not be thrilled about the move and conflict among family members over the move may also create tension in your dealings with the seller. Realize that even in the best situation you are in conflict with the seller. What do I mean? Well, you (the buyer) want to purchase at the lowest price possible in terms favorable to the you. The seller wants to sell at the highest price possible in terms favorable to the him/her. Both buyer and seller are looking out for their own best interests and those interests conflict with one another. Add emotions into the mix and the whole tone of the transaction can change in a heartbeat. 

One of the most sensitive parts of a real estate sale is the inspection period. There are several ways that inspections can complicate the process.  While not comprehensive, they include:

·         inspections are not completed within the prescribed time frame in the contract

·         the inspection reveals serious issues that are costly to address

·         the credentials of the inspector may be called into question

·         the seller refuses any or all of the requested repairs or to make financial concessions for the buyer to correct after closing

·         parties are unable to reach an agreement during the prescribed time frame in the contract, voiding the agreement

·         agreed-upon repairs are not completed

Get the idea? The inspection can reveal multiple issues so it's important to recognize and differentiate between a serious issue and a minor issue and then weigh appropriately items worthy of negotiating. Upon making that determination, it takes skillful negotiation and tact to present these to the seller and obtain agreement. Consider also: if you are working directly with the seller, your access to the house for inspections and the appraisal is dependent entirely upon the seller's availability and cooperation. In spite of all this, inspections are a great idea. Why? Homes are not self-maintaining. If maintenance has been deferred, the home will have varying degrees of deterioration or neglect. It's in the buyer's best interest to know of any issues before closing.  

Employing the right timing for various aspects to the sale may be a factor few buyers consider. For instance, a buyer may think it best to order an appraisal right away - as soon as the contract is signed. Since the inspection period can be one of the "make or break" parts of the sale, it's generally best to wait until the inspection period is over before ordering the appraisal. An exception would be when there is too little time between the effective date of the contract and the closing date. 

Any of the situations described above can be serious enough to cause the sale to fall apart. Many things can trigger collapse of the sale and both buyer and seller can experience financial and emotional losses when a sale falls apart.

While there's never a guarantee of a trouble-free transaction in transferring real estate, a professional real estate agent has the knowledge and experience to help buyers (and sellers) navigate through the process and come out of difficult situations with a happy result for both buyer and seller. Take advantage of my experience and professionalism to represent and advise you in your real estate purchase.  

Provided by Tom McChesney of Keller Williams Realty Key Partners LLC. 

Call 913-908-2453 or email me if you would like professional representation in purchasing your next home..

Find out what your home in the Greater Kansas City area, including Johnson County, KS is worth on my website.

How is The Current Real Estate Market Impacting Buyers and Sellers?

Real estate market data for the Greater Kansas City area, including Johnson County, KS obtained from the Kansas City Regional Association of Realtors and provided by Tom McChesney of Keller Williams Realty Key Partners LLC.

Call 913-908-2453 or email me if you would like more detailed market information specific to your neighborhood.

Find out what your home in the Greater Kansas City area, including Johnson County, KS is worth on my website.

This is the time of year when the real estate market starts heating up. Historically June and July are the biggest months based on number of real estate transactions. The difference so far this year is that the market is heating up much earlier than it has in previous years. Let’s look at how the supply of inventory, interest rates, new construction, and student loan debt are impacting the real estate market right now.

INVENTORY IS LOW!

Inventory tightened in 2015 due to increased demand from lower interest rates and continued sluggishness in new home construction.

For the Greater Kansas City Heartland MLS areas, Months Supply of Inventory numbers are even more dramatic:

Buyers:

Buyers are having a hard time finding the home they want because the selection of available homes is very limited. When they find the home they want, more often than not they find themselves competing against other offers. If you think the easy solution is to just make sure you submit the highest bid: It’s not always the highest offer that wins the home. In some cases, other terms of the contract or a personal letter written by the buyer to the seller makes more of a difference than price.  Right now, multiple offers are common and this high demand, low inventory market is driving prices up.  Listings can sell for as much as 5% over list price. This is a Seller’s Market; the seller has the advantage.

While this can be a frustrating market for buyers, I encourage buyers to enter the market now before projected rate increases occur. Why? Because a 1% increase in interest rates equals a 10% decrease in what you can afford to buy. Get more house for the money while rates are low!

A professional real estate agent has the ability to find the unlisted homes before they hit the market and can set you up to receive an alert as soon as a home is listed in the MLS. If you consent to a Buyer Agency agreement, then your real estate agent is representing your interests in any negotiation with a seller or a seller’s agent. Contact me if you have any questions about a Buyer Agency Agreement.

Sellers:

Sellers with homes in good condition who price their home in the market are likely to find the house sells very quickly. Right now, many homes are sold before they hit the market or within a few days of posting to MLS, often – but not always – with multiple offers.  This can be a shock to the home owner and may cause concern that the house was priced incorrectly.  Not necessarily: high demand, low inventory has created this situation, and the need for the house to appraise still exists.  

While a bidding war among buyers can drive the sale price up, an appraiser will analyze recent sales and if the value cannot be substantiated, the home will not appraise. Focus on all points of an offer, not just the price.

With demand for homes so high, you might think you don’t need professional representation. In 2015, 87% of buyers had professional representation. That means, agents working for the buyer negotiating for the buyer’s interests, not yours! Less than 2% of buyers worked directly with the seller in 2015. Contact me if I can answer any questions about professionally marketing your home.

Did you know? The median sales price in 2015 was $222,400.6.8% more than in 2014.

INTEREST RATES ARE LOW!

Interest rates average 3.85% in 2015, down 0.32 percentage points from 2014’s average. Interest rates in 2015 were below 4% for almost all of 2015 and helped drive demand.

The general consensus for 2016 is that interest rates are going to begin increasing sometime this year. While slight increases in interest rates may not alarm you, consider this:

In the example above, the $222,400 house with a monthly principal and interest payment of $1,044.00 would change with an interest rate increase to 4.86% to a monthly principal and interest payment of $1,148.40.

Buyers: 

Lower interest rates decrease your monthly house payment so you devote a smaller percentage of your income to a house payment. You can qualify for a larger loan amount which enables you to look at nicer homes in a higher price bracket. My free home search tool can help you find the home for you and it also can put you in touch with a lender to learn how much home you can qualify for at today’s interest rates. No one knows how much rates will increase so exactly how much of an effect interest rate increases will have cannot be predicted. 

Sellers: 

Low interest rates put more buyers for your home in the market. As demand increases, prices increase. Higher interest rates take some buyers out of the market for your home, lowering demand. As demand falls, prices also fall.  Sell while demand is high! Contact me to find out how much your home could sell for in this market. No one knows how much rates will increase so exactly how much of an effect interest rate increases will have cannot be predicted. 

Did you know? A 1% increase in the interest rate equals a 10% increase in the monthly cost of a house.  (Or, it decreases 10% the amount of house that can be purchased with the same budget.)

NEW CONSTRUCTION STARTS REMAIN SLUGGISH

New home construction continues to improve but is still well below the historical average.

Buyers: 

In this market buyers don’t have as many choices. Buyers may not be able to find new homes and may have to purchase resale homes. Since there’s also a shortage in resale, buyers are competing with other buyers for the nicest homes. Some buyers may be forced to buy older homes in need of work. 

Even with a shortage of inventory, it’s still a good time to buy a home because interest rates are low and affordability is at an all-time high.

Sellers: 

This is a good time to sell your home since you don’t have to compete with as many new homes. You may be able to sell your home at a higher price without new homes in the same price range competing against you for buyers.

Did you know? Below average new home starts contributes to a shortage of inventory. 

STUDENT LOAN DEBT INCREASING

Between 20013 and 2015, the total amount of student loan debt nearly quintupled, going from $241 billion to $1.2 trillion. A 398% increase.

As a market segment, the number of first-time homebuyers is dwindling. This correlates to increasing student loan debt and high unemployment or underemployment among recent college graduates. These factors are forcing young people to delay homeownership.  First-time homebuyers are usually 40% of the market so a significant portion of the market is missing.

Buyers: 

Avoid going into debt as much as possible. Pay off existing debt as quickly as possible and don’t allow yourself to be late or fall behind on payments as this will affect your credit rating and impact your ability to purchase a home. If your debt-to-income ratio is too high, you may not qualify for a home loan, or at least not for the home you might want to buy. Visit my website if you would like more information on qualifying for or purchasing a home.

Sellers: 

With a large segment of buyers missing from the market, the best advice is to work with a professional who is able to properly position your house in the marketplace to maximize the number of prospective buyers and get you the most that you are able to get from the sale of your house. Visit my website to learn more about selling your home or contact me to learn how much your home your home could sell for in today’s market.

A 398% increase in student debt between 2003 and 2015 is staggering. Has income gone up 398% in the last 12 years to compensate? (No.)

THE ECONOMY – AN OVERVIEW

Real estate experiences highs and lows in varying degrees. Is it worth it?

Ultimately that’s a question you have to answer for yourself.  Like anything else, there are pros and cons to owning real estate.  As you can see from the data above comparing homeownership to renting, median net worth is substantially greater for homeowners. Over the long term, real estate has been and continues to be one of the best investments you can make as homes tend to appreciate over time. Whether you rent or own, you are making a house payment and the economy has an effect on both segments of the housing market.

My free home search tool can help you find your next home and alert you when new homes are placed on the market. It can also put you in touch with a lender to learn how much home you can qualify for at today’s interest rates.

Find out what your home in the Greater Kansas City area, including Johnson County, KS is worth or call me at 913-908-2453.

The best advice you can receive about real estate you own or wish to purchase will come from your local real estate professional who monitors local trends and can advise you accordingly.  Contact me if I can help you with your real estate needs! 

Real estate market data for the Greater Kansas City area, including Johnson County, KS obtained from the KCRAR and provided by Tom McChesney of Keller Williams Realty Key Partners LLC.

What Can You Do To Make Your Home Sell Faster?

We have five senses (some would add a sixth) of sight, touch, taste, and smell. Three of these play a role in the first impression your home will make upon a potential buyer. First impressions are important and can end a showing quickly if the impression given is the wrong one.

Of our five senses, smell is the one in my experience that is most off-putting. If the house smells like cigarette smoke, or animal urine, or has a mold or mildew smell; the buyer loses interest in seeing any other part of the house and will not be making an offer.  It can be extremely hard to get rid of odors. Mold or mildew odors indicate larger problems - water infiltration, and few buyers are willing to lay down their hard-earned money for a home with mold or mildew.

How a home appears visually is also a large factor in a buyer's first impression of your home. Dark rooms, clutter, unconventional decor or paint colors, and a lack of cleanliness are not going to sell a home. It will sell someone else's home - and for a higher price in many cases.

The sense of touch has a lot to do with cleanliness. If the floors are sticky to walk across, or the cabinets have a layer of grease on them, or the counters look so dirty you wouldn't want to touch them, then the appeal of the home goes down considerably. Another aspect of touch - and this is a true story: a group of realtors were touring a home just listed by the office when everyone began experiencing unbearable itch on their legs and arms. The house looked okay but had been vacant for some time. Still living there were fleas and those fleas were ravenous! That problem had to be addressed before the home could be shown to would-be buyers. I'm not sure any of the realtors present that day ever went back and understandably so. They nearly stampeded to get out of there! Imagine if a buyer and their agent had been the first to walk into that situation!

To make your home sell:

1. Open the draperies, pull up the shades, and let in the sunlight.
2. Create a positive mood. Turn on all lights, day or night, and install higher wattage light bulbs to show your home brightly.
3. Remove clutter from each room to visually enlarge them and provide a sense of assurance to would-be buyers that you're not trying to hide defects in the home from them.
4. If you have a fireplace, highlight it in your decorating.
5. Keep your home dusted and vacuumed at all times.
6. Replace the carpet if it does not clean up well.
7. Have a family "game plan" to get the home in order quickly if necessary.
8. Air out your home for one-half hour before showings if possible.
9. Lightly spray the house with linen-scented air freshener so that it has a chance to diffuse before the buyer arrives. If you are a smoker, do your best to smoke outside (not in the garage!) during the period of time you have your house on the market. Also spray upholstered furniture with a product like Febreeze to remove odors from furniture. 
10. Put family photos in storage.
11. Improve traffic flow through every room by removing unnecessary furniture.
12. Create the feeling of a spacious entry area by using decorative accents and removing unnecessary furniture.
13. Putty over and paint any nail holes or other mishaps in the wall.
14. For dried out or scratched woodwork, use a product like lemon oil or Old English Scratch Cover. It's remarkable how these products can improve the appearance of woodwork. 
15. Paint all interior walls a neutral color to brighten the home and make it look bigger.
16. Repair or remove any loose or damaged wallpaper.
17. Clean all light bulbs and light fixtures to brighten the home. 
18. Wash all windows inside and out.
19. Use healthy, lush, plants in transitional areas of your house. 
20. Remove and/or hide excess extension cords and exposed electrical cords. 
21. Open doors to areas you want potential buyers to see such as walk-in closets, pantries, attics, etc.
22. Remove all smoke and pet odors. These are tough. Few products really work at removing tough odors. Contact me to learn what products I've used and which work the best. 
23. Repair or replace damaged banisters and handrails. Tighten them if they have become loose. 
24. Microwave a small dish of vanilla 20 minutes before a showing and place it in an out-of-the-way place. 
25. Highlight an eat-in area of your kitchen with a table prettily set for dinner. 
26. The kitchen and bathrooms should be spotlessly clean.
27. Expand your counter space by removing small appliances.
28. Create a master suite effect in decorating the master bedroom.
29. Depersonalize bedrooms and decorate in a neutral scheme.
30. Make sure the beds are made and the linens clean.
31. Organize closets and remove unnecessary items and put them in storage.
32. Do not leave wet, dirty towels lying around and wipe down the sinks and showers after each use.  
33. Re-caulk the tub if the caulk is not bright white.
34. Repair or replace broken tiles in the shower/tub.
35. Replace shower curtains and keep them clean.
36. Put out fresh towels and decorative soaps.
37. If you have pets, secure them for showings if possible. Keep their food and litter areas clean. 
38. Keep the yard mowed and raked at all times. 
39. Use flowering plants to dress up the yard, walkway, and patio/deck.
40. Remove all toys, bicycles, tools, unsightly patio furniture, and trash from the yard.
41. Porches, steps, verandas, balconies, patios, and other extensions of the house should be kept uncluttered, swept, and in good condition.
42. Paint all entrance doors and remove cobwebs at entries.
43. Make sure any sliding glass doors and overhead garage doors open easily. Fix and paint the doors if necessary. 
44. Clean and shine all hardware and accessories indoors and out. (Door knobs, knockers, amps, mailbox, address numbers, windowsills, etc.)
45. Trees and shrubs should be trimmed - especially if branches extend over the house or are in contact with the house.
46. Use a new doormat.
47. Be sure the front doorbell and any exterior outlets are in good working order. 
48. Be sure the front door and screen door work perfectly, are clean, and in good condition. 
49. Clean out the gutters. 
50. Fill any holes in the yard or areas where the ground has sunk and water pools with rain. (Especially next to the foundation.)

A real estate agent with years of experience is a valuable resource to help identify any issues a buyer might have with your home. Real estate agents have a network of reputable companies to help with repairs and can provide a list of recommendations. An agent can advise what repairs or upgrades offer the best return on your investment. Remember: not all repairs or upgrades add value to the property, but they will help you market your home competitively and sell quickly.

Find more about selling your home or contact me through my website: TomSellsKC.com.

Buying New Construction

Some things to think about if you are looking to buy new construction.

Having a buyer's agent is VERY important! New home builders often have on-site sales agents who represent them in the sale of their homes. When buying or building new construction, buyers should have their own representation as well.

Prospective buyers think that they can get a better deal by going straight to the builder and eliminating the Realtor. Builders are looking out for their own interests. Protect your interests and rely on the experience of a professional Realtor. 

Realtors have the largest pool of buyers and word-of-mouth among Realtors can have a widespread effect on a builder's success. If you are mistreated during the purchasing process or after you move in, your Realtor can have much more sway in ensuring a satisfactory outcome. Realtor's network extensively and are usually aware of disreputable builders and can advise you accordingly. It is in a builder's best interest to work with Realtors and establish a good reputation in the real estate community.

 It is the Realtor’s role is to find the best possible home for their buyer and to educate them about the buying process. Realtors are happy to bring their clients to new home communities and for good reason: energy-efficient homes, quality of construction, a variety of floorplans to fit today's lifestyle, the use of green building materials, and new home warranties are all great incentives for buyers. Typically, on-site agents are trained to ask if prospective buyers are working with an agent. It is important that buyers visiting a new home community and “just looking” inform the on-site sales agent that they are represented by a Realtor. Realtors should pre-register their clients if they know that their clients may be interested in a community.

Having a Realtor can provide valuable insight and assistance through the building process. To learn more about me and what I can do to help you purchase a new home in Overland Park, KS or other areas of Kansas City, visit my website at www.TomSellsKC.com or email me at Tom@TomSellsKC.com

Prepare Yourself For Buying

Thinking of buying a new home? Here are a few things to keep in mind to ensure that the process is smooth and frustration-free:

Consider Working with a Buyer Agency: Working with a Realtor that is truly committed to helping you is key during the buying process. The ideal candidate should be someone who really knows the area in which you are looking to purchase a new home. Your Realtor should also be able to evaluate values fairly, as well as keep you safe during the buying process.

Look & Listen to Objective Assistance: Keep in mind that your Realtor is not simply trying to get the sale, they truly have your best interest at heart! Their job is to provide you with honest, helpful feedback. This is especially true if a multiple-offer situation arises. Your Realtor can step outside of the oftentimes emotional side of buying a home and give you the business opinion.

Be Pre-Approved: Pre-approval shows that you can actually buy a home, allows you to know what’s in your price range, and you’ll have leverage in negotiations with sellers.

Have Your Down Payment Ready: Having the money (liquid funds) readily available to make a down payment is critical during the buying process. Make sure the money is not tied up in savings accounts, etc., because sometimes you can only pull from these accounts at certain times throughout the year. Previously, buyers would take out No Money Down loans but these are harder to come by nowadays. If you need a No Money Down loan, talk to your Realtor.

Three Common Situations: What if you have to pay full price on the home, how much over full price do you offer to pay? What if you’re involved in a multiple-offer situation? What if you’re being asked to waive the appraisal contingency? These are three very common situations that can arise during the buying process and who better to answer them than your Realtor!

If you have any further questions on how to prepare yourself for the best home buying experience, don’t hesitate to contact me!