4 Common Inconveniences of Selling Your Home

Whether you decide to sell your home through a real estate professional or independently, selling your home can present some unique challenges to your daily routine. Some seller's are taken by surprise at many of the common inconveniences they face when they decide to put their home on the market. The following "warnings" can help you be a little more prepared.

1. Showings at all times of day
If you're selling your home through a real estate professional, you might find yourself with just 30 minutes to get out of your home so someone can view it. This can definitely interrupt your routine, especially in the evening when you may be sitting down for dinner or enjoying your favorite TV show. If you decide to sell independently, you may have more flexibility in when you allow visitors, but you still need your home to be accessible. Many agents try to show homes during the day if possible, to minimize the inconvenience to the homeowner, but many potential buyers are free at the same times you generally are: evenings and weekends, so the majority of showings will probably be at those times.

2. Always be in "Showing Condition"
Because showings can happen at any time of day, without much prior notice, it is essential for homeowners to keep their homes in good "showing condition" at all times. This can be inconvenient for many, since most people do not keep picked up after themselves at all times. It has been said that when you put your home on the market, you're not so much living in your home as you are in a museum. Furniture may be rearranged or "staged" in such a way that doesn't suit your lifestyle, but accentuates the homes best features. Homeowners with children may find that it is no longer best to allow toys to be lying around at all times, even in common places like family rooms or back yards. Homeowners with pets should either take their pets with them when they leave during showings or have an area where they can be confined for short periods of time, such as a spare room or kennel. Be sure to alert your agent to the presence of any and all animals in the home so that they can make a note of it in the showing instructions. Taking these precautions can not only insure the safety of your pets, but can also make potential buyers more comfortable in your home. These inconveniences apply to homeowners using real estate professionals as well as independent sellers, and take some getting used to, but are definitely worth it in the end.

3. Loss of Privacy
Again, this rule hits all home sellers equally hard. When you have strangers going through your home on a weekly or even daily basis, your privacy drastically decreases. Many buyers will open closet doors and medicine cabinets as they examine homes. They will be walking through people's bedrooms and bathrooms, two of the most private rooms in your home. To protect your privacy, it is important to put away items that you would not want strangers to see. Keep closets and cabinets organized to make them look more spacious - these areas are commonly overlooked by many homeowners.

4. Security Issues
One of the most important issues to be aware of when placing your home on the market is its potential impact on the safety of your family. Many homeowners know to pack up valuable items such as heirlooms or jewelry, but it is also a good precaution to pack away prescription drugs as well. Any financial information or documents with identifying information (like a social security number) should be put in a safe place when your home is on the market. For the safety of the children in your home, it is also a good idea to secure any information that tells where they attend school or extracurricular activities. It is unfortunate that such precautions must be made, but it can make the difference between being safe and putting yourself and family in danger. Again, this is an issue that affects all types of home sellers, and I strongly urge everyone to take this essential precaution.

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6 Creative Ways to Afford a Home

1. Investigate local, state, and national down payment assistance programs. These programs give qualified applicants loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program, www.getdownpayment.com, and the American Dream Down Payment Fund from the Department of Housing and Urban Development, www.hud.gov.

2. Explore seller financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you would do with a mortgage.

3. Consider a shared-appreciation or shared-equity arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors' names are usually on the mortgage. Companies are available that can help you find such an investor, if your family can’t participate.

4. Ask your family for help. Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history.

5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.

6. Consider a short-term second mortgage. If you can qualify for a short-term second mortgage, this would give you money to make a larger down payment. This may be possible if you’re in good financial standing, with a strong income and little other debt.

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Selling vs. Renting: 5 Things You Should Know Before Becoming a Landlord

With home sales as they are, more and more people are considering renting out their property rather than sell it. Renting your existing home can actually be quite lucrative, or at the very least help you come out even. If you have your home paid off, renting can be a good alternative to selling, since you can buy a new home on your time frame, and you can make a little money from the rental. If your home is not paid off, you might still be able to break even by charging slightly more than your mortgage payment for rent.

However, becoming a landlord has its challenges, as I hope you are aware. Here are a minimum of 5 things you should consider:


1. How will you screen tenants?

Just as it is important for real estate agents to screen potential buyers, it is important that you screen your potential tenants. Some methods include background checks, asking for references, interviews, and credit checks. You're looking for tenants who will be responsible - they will pay rent consistently, and will not be destructive to the property.

**Don't Forget the FAIR HOUSING ACT! No matter the size of the property you are renting, it is ILLEGAL to discriminate on the basis of race. **

2. What expenses will you have?
If you've been living in the property, you should have a fairly good idea of what your monthly housing expenses include: gas, electricity, etc. But as a landlord, you will also be responsible for other expenses, such as repairs, vacancies, and debts. It is always wise to plan for these expenses before taking on the burden of landlord.

3. How will you handle disputes with tenants?
Over the course of a rental property, you are bound to have someone who is a "bad" tenant." Hopefully, your screening process will reduce this probability, but you still need to be aware of the possibility and be prepared. If you don't already have an attorney, you should definitely consider hiring one, just in case. Try to handle disputes with an informal meeting first, if possible, before resorting to legal action.

4. What rules will you have for your tenants?
Before you begin looking for tenants, you should have decided on a clear set of rules for potential tenants. These rules should also include the corresponding consequence if broken. Your rules should apply to all residents, not just a certain group. Make your rules as clearly stated as possible. If you do not feel comfortable drafting this document, consult an attorney - they can ensure your contracts are written fairly and can be easily enforced.

5. GET EVERYTHING IN WRITING!!!
I cannot stress this enough -- if you don't get it in writing, it will not stand in a court of law. Keep records of EVERYTHING -- disciplinary action, names, contact numbers, rules, deposits, rent checks -- anything that you would need to refer to at any time. When in doubt, WRITE IT DOWN. When a person signs a lease, you should have them initial after important clauses or at the bottom of each page. Once again, consult an attorney to make sure your contracts are up to par.


OTHER THINGS TO CONSIDER:
How will you advertise your property?
How will you handle maintenance and repairs?
What type of insurance should you have?
How will renting affect your taxes?
How will you keep track of damages?
How will you communicate with your tenants?

BEST OF LUCK as you consider this major decision!

Do you currently rent out a home? What other challenges have you encountered?

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5 Internet Tools and Sites for Home Buyers and Owners

It used to be that, when you decided to begin shopping for a new home, you had one of three options -- stop or call about "for sale" signs, peruse the local classified listings, or hire a real estate agent to show you homes. Today, there are many more options that make the entire home buying process simpler and quicker. The Internet has been a life-saver for buyers, and I am really excited about the opportunities it presents. Not only can you shop for your next home, you can also find a lot of information about the process! Let me share with you some of my favorites:


Home Searches & More:

RealSeekr - one of the up-and-coming real estate search sites, RealSeekr features your standard home search tool, as well as forums for asking questions of real estate professionals, school information, and even a free listing site for Independent Sellers (FSBO).

Realtor.com - well-known in the home search business, Realtor.com continues to offer a great search resource for home buyers. It also features a Realtor search, as well as school/neighborhood information, mover and lender searches, and many helpful articles on the home buying/selling process.

Trulia - lesser known in the web-search industry, Trulia's most interesting feature is "Trulia Voices," a place for consumers and professionals to meet and discuss frequently asked questions.

Zillow - another lesser known web search, Zillow also offers a discussion board, mortgage/lender information, helpful articles, and free posting for agents and owners.


FrontDoor - leading the web in real estate tools, FrontDoor offers many calculators, including a rent-vs-buy calculator, a home affordability calculator, and a mortgage calculator, among many others.

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Improve Your Chances of Obtaining Financing

One of the biggest hurdles of purchasing a new home is obtaining financing. Today, home buyers have more choices than ever when it comes to financing, and lenders are making it possible for more and more people to achieve their dream of owning a home. However, before you begin the home-buying process, there are few things you can do to make it easier to get a loan.

Lender's look at many things when considering a loan, but two of the most important factors are your CREDIT SCORE and your DEBT TO INCOME RATIO. Want to know how to improve both of these numbers and make your home-buying experience smoother? Read on.

First of all, what do these two things mean?

Your credit score is is actually computed from several different elements of your credit report, which you can obtain through sites such as AnnualCreditReport.com. The elements considered are:

1. Credit and Payment History (credit cards, retail accounts, installment loans, etc.)
   
2. Total Amount Owed (in proportion to credit limit)
3. Credit History (how much credit and how long)

Basically, the lower your credit score, lenders will consider you more of a risk (meaning you won't pay back the loan) and therefore will either deny your request or jack up your interest rates.

Your debt-to-income ratio is, simply put, your monthly debt in relation to your monthly income. It's presented as a percentage, and anything over a certain percentage makes you a higher risk, according to lenders.

So what can you do to improve these two factors?

With your debt-to-income ratio, you have TWO options:

1. Increase your income
2. Decrease your debt

Obviously, increasing your income is going to be challenging, but you do have some options:

• Take a part time job
• If one spouse is not currently working, find a second source of income
• If you feel you are not getting paid enough, ask for a raise or seek a transfer
• Take a closer look at your investments and tweak them if necessary

Decreasing your debt is probably the easier task:

• Paying off credit cards and loans
• Reducing monthly expenses
• Implement a budget to help control expenses

So what about your credit score?

Try to pay bills on time and do NOT max out your credit cards.
Don't apply for credit cards unless you absolutely need them. Each application is a ding on your credit score.
Check your credit report three times a year to make sure you are not a victim of fraud.

By improving these two scores, lenders will take your application much more seriously. By getting pre-approved, sellers will take your offers much more seriously, and you are more likely to get the house you want. To get pre-approved, talk to a lender, or your banker. It gets the ball rolling by giving you an estimated price range, but doesn't commit you to anything. Think about it. Seriously.

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Does Your Open House Put Your Family in Danger?

If your home is on the market, chances are there is a sign in the yard stating that fact, either by a real estate agent or by yourself if you're selling your home by owner. Many times, buyers may ask you to see the property, and you of course, like many sellers, would almost hate to pass up the opportunity to show your house to a potential buyers. However, there are a few things you must keep in mind when showing your home to people off the street that will keep you and your family safe.

1. Escort All Prospects through your home. Sometimes, a couple or family might scatter, making it hard for you to know where everyone is at all times. Keeping everyone together prevents your property from being broken or stolen, and also means you only have to explain everything once, rather than multiple times. When escorting prospects, be sure to always walk behind them, so you can make a quick escape if necessary.

2. Discuss the Situation with Your Children. Be sure they are aware to never let strangers in the home, or to give out your address to people who ask about the home. Alert babysitters to the special circumstances as well.

3. Recheck Locks and Windows After Showing. It only takes a second for someone to unlock a window or door to allow them easier access during the night or work day. After the prospects leave, make sure all doors and windows are secured to keep your family and belongings safe and secure.

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If your home is listed with a real estate agent, they should be aware of these practices. Hopefully, they should be just as concerned for your safety and belongings as they are for their own personal well-being. If you feel your agent is not following these basic safety guidelines, please tell them of your concerns.

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MARKET STATS (4/18/2008)

Lee's Summit:
Avg List Price - $256,633
Avg Sale Price - $216,374
Avg Days on Market - 43

Independence:
Avg List Price - $112,185
Avg Sale Price - $92,388
Avg Days on Market - 31

Blue Springs:
Avg List Price - $174,505
Avg Sale Price - $148,512
Avg Days on Market - 33

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Blue Springs MO Sellers' Update

Last week, we examined the current outlook for home sellers in the Independence area. But as you may know, the outlook for sellers may vary according to the area in which they live. With so many suburbs in the KC Metro area, some become more desirable than others, which affects both home values and how quickly they sell. This week, we'll examine the current outlook for sellers in the Blue Springs area.

2 Bedroom Homes:
# on Market: 19
Sold in Last 30 days: 1
Average List Price: $132,000
Avg Sales Price: $118,500
Avg Days on Market: 68 (just over 2 months)
Avg Percent List Price: 90%
Months of Inventory: 19 (Strong Buyer's Market)

3 Bedroom Homes:
# on Market: 243
Sold in Last 30 days: 46
Average List Price: $146,294
Avg Sales Price: $142,707
Avg Days on Market: 83 (under 3 months)
Avg Percent List Price: 98%
Months of Inventory: 5 (Normal Market!)

3+ Bedroom Homes
# on Market: 201
Sold in Last 30 days: 18
Average List Price: $205,661
Avg Sales Price: $198,681
Avg Days on Market: 63 (2 months)
Avg Percent List Price: 97%
Months of Inventory: 11 (Strong Buyer's Market)

Homes Under $100K:
# on Market: 23
Sold in Last 30 days: 7
Average List Price: $85,071
Avg Sales Price: $81,486
Avg Days on Market: 122 (4 months)
Avg Percent List Price: 96%
Months of Inventory: 3 (Seller's Market!)

Homes Between $100-200K:
# on Market: 275
Sold in Last 30 days: 42
Average List Price: $139,808
Avg Sales Price: $137,154
Avg Days on Market: 69 (just over 3 months)
Avg Percent List Price: 98%
Months of Inventory: 6.5 (Slight Buyer's Market)

Homes Between $200-300K:
# on Market: 103
Sold in Last 30 days: 14
Average List Price: $244,365
Avg Sales Price: $234,981
Avg Days on Market: 81 (under 3 months)
Avg Percent List Price: 96%
Months of Inventory: 7 (Slight Buyer's Market)

Homes Over $300K:
# on Market: 69
Sold in Last 30 days: 2
Average List Price: $337,450
Avg Sales Price: $319,330
Avg Days on Market: 65 (just over 2 months)
Avg Percent List Price: 95%
Months of Inventory: 34.5 (Strong Buyer's Market)

SUMMARY:
There is still a Buyer's Market (slightly) in Blue Springs, but certain categories (3 bedroom homes and home under $100K) have actually transitioned into normal or even seller's markets! That is great news for those owners who own homes fitting that criteria! The larger and more expensive homes are generally sitting on the market longer, but that is fairly typical. All homes are selling near their listing price, which is still good news for all those considering putting their home on the market.

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Independence MO Sellers' Update

We are now more than halfway through the year, and many homeowners are considering putting their home on the market. But with the portrayal of the real estate market in the media, the big question on everybody's minds is: Is the timing right? Here is a glance at the current real estate market in Independence MO:

INDEPENDENCE

2 Bedroom Homes:
# on Market: 212
Average List Price: $68,415
Sold in Last 30 days: 25
Avg Sales Price: $47,024
Avg Days on Market: 81 (less than 3 months)
Avg Percent List Price: 91%
Months of Inventory: 8 (Buyer's Market)

3 Bedroom Homes:
# on Market: 639
Avg List Price: $139,553
Sold in Last 30 days: 84
Avg Sales Price: $89,156
Avg Days on Market: 80 (less than 3 months)
Avg Percent List Price: 98%
Months of Inventory: 7 (Slight Buyer's Market)

3+ Bedroom Homes:
# on Market: 851
Avg List Price: $106,532
Sold in Last 30 days: 109
Avg Sales Price: $103,670
Avg Days on Market: 81 (less than 3 months)
Avg Percent List Price: 97%
Months of Inventory: 8 (Buyer's Market)

Homes Under 100K:
# on Market: 502
Avg List Price: $69,601
Sold in Last 30 days: 70
Avg Sales Price: $53,831
Avg Days on Market: 92 (3 months)
Avg Percent List Price: 95%
Months of Inventory: 7 (Slight Buyer's Market)

Homes Between 100 and 200K:
# on Market: 463
Avg List Price: $138,334
Sold in Last 30 days: 52
Avg Sales Price: $139,275
Avg Days on Market: 65 (2 months)
Avg Percent List Price: 98%
Months of Inventory: 9 (Buyer's Market)

Homes Between 200 and 300K:
# on Market: 79
Avg List Price:$246,038
Sold in Last 30 days: 4
Avg Sales Price: $219,750
Avg Days on Market: 148 (under 5 months)
Avg Percent List Price: 96%
Months of Inventory: 19 (Strong Buyer's Market)

Homes Over 300K:
# on Market: 36
Avg List Price: $475,488
Sold in Last 30 days: 1
Avg Sales Price: $319,500
Avg Days on Market: 135 (under 5 months)
Avg Percent List Price: 90%
Months of Inventory: 36 (Strong Buyer's Market)

SUMMARY:
There is definitely still a Buyer's Market in Independence, but the length of time a home sits on the market depends on its size and price. It's very possible that by the end of the year, some of these homes now categorized as "slight buyer's market" will cross the divide into "normal market" or possibly even "seller's market." Remember: There are three things that sell homes - marketing, condition, and price. If your home isn't selling, consider which of these areas might need improvement. If you feel your agent is not properly marketing your home, don't be afraid to make suggestions or even find a new agent.

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Interviewing a Listing Agent: 3 Questions You Should Always Ask

When the time comes to select an agent to market your home, one of the most important steps is the listing agent interview. This appointment helps you separate the valuable from the worthless, the experienced from the inexperienced, and those who are on the cutting edge of real estate trends and marketing.

You should ALWAYS interview agents before choosing one. Just because you have a friend or family member in the business does not mean they can competently handle marketing your home. If you have been referred to an agent by a friend or family member, you should include them in your interviewing process as well. I encourage all my sellers to interview a minimum of three agents before selecting the one that fits their needs best.

But what questions should you ask to help you get an idea of their competency? Here are my top three:

1. Are you willing to provide references?
An agent on top of their game should be prepared for this request. They may even include it in their listing packet or presentation. You should ALWAYS contact the references they provide -- if they are past clients, ask about the quality of service they received, and if they would refer friends and family to that agent; if they are co-agents, ask about their work ethic, their marketing, and how informed they are about the current market. Don't be hesitant if they only have co-workers listed -- remember, these people see your potential agent frequently, and have a working knowledge of what it takes to be a "good" agent. Don't assume that just because an agent is new to the business that they are not "experienced" enough to handle your home. Many times, these new agents are on the cutting edge when it comes to marketing and recent changes in real estate practice. They generally have a better understanding of "today's buyer" than some agents who have been in business for much longer.

2. What is included in your marketing plan?
How an agent markets a property is a key component to it selling quickly at top dollar. You could have the greatest house on the market, but poor marketing could prevent it from selling timely (or at all!). Any agent you interview should be able to tell you at least three dimensions of their marketing plan: co-agents, Internet, and open houses. If an agent does not talk about any one of these three, ASK them about it! They are essential to exposing your home to the most people possible. If they are not included, do not hesitate to exclude that agent from your list of consideration.

3. What changes would you suggest I make to my home before putting it on the market?
If an agent answers "nothing!", I would be very hesitant to hire them. In all honesty, most homes are in need of at least some minor repairs or rearranging, and if they sugar-coat bad news from the beginning, how are they going to tell you when the price needs improvement or that buyers are giving negative feedback? A good agent should be able to communicate with you openly and honestly, even if it's bad news you don't particularly want to hear.

ALWAYS ALWAYS ask for a "leave-behind" which you can look over after the agent leaves. It should have a summary of their marketing plan, pertinent contracts, and a list of references to contact. After contacting references, try to have a decision made within the week and let the agent you've selected know so they can get started on drafting up necessary paperwork and putting the marketing in motion.

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New Building Technology in Missouri

Ever wondered what the future of home construction holds? No need to wonder any more -- the future is here in eastern Jackson county!


Greg Andachter of Landmark Builders of Blue Springs, who has been building energy efficient homes in the area since 1985, recently started building Insulated Concrete homes in his new subdivision, Cardinal Woods West (at RD Mize & Pink Hill Rd). So far, there are three ICF homes in Cardinal Woods West, including the model home.

The technology has been around for almost 30 years, but no one in the area has taken the challenge of building with it. Tornado and weather resistance is hardly its only benefit, however, and the additional investment is well worth it.

• Energy Efficient
• Because the home is concrete from the footings to the rafters, you are heating and cooling against the ground temperature (55°) rather than the outside temperature. Depending on your energy usage, you could end up saving over two-thirds of your current energy costs!
• Sound Proof
• Water/Mold Resistant
• Pest Resistant
• Because you're not dealing with traditional wood framing, there is less material (wood) to attract pests like termites.
  
• Fire Resistant
• Tornado Resistant (up to an F-4)

Insulated Concrete homes may cost more up front, but you will save on your energy bills as well as homeowner's insurance. In addition to those savings, you may also save yourself the time and money that the typical homeowner puts into repairing damage caused by mold, fire, and wood-destroying insects, which can be very expensive.

Thinking about building a new home? Lots are still available in many of Landmark Builder's subdivisions, at multiple locations throughout the county. Stop by one of their models for a closer look at this new technology! Models open daily from 1-5 PM.

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