Careful Analysis Early In The Kansas City Home Buying Process Can Prevent Buyer’s Remorse Later

Checking The Pulse Of The Kansas City Real Estate Market

We’ve all had cold feet when contemplating a purchase at some point in our lives. Cold feet can come from an indecision of which item to purchase or, in some cases, it comes when you realize you shouldn’t even be buying the item at all. When dealing with Kansas City homebuyers, it’s critical that we determine early on that a buyer is prepared both emotionally and financially for the purchase they’re about to make. If you buy a wrong car that can be stressful but it’s usually not an earth-shattering mistake. If you buy the wrong home however, that could be a very, very costly mistake. Along with marriage, the decision to buy a home is one of the most important decisions most of us will make in our lifetimes.


While it’s better to have cold feet early in the process than buyer’s remorse later, the best option is to work to avoid either situation altogether. That’s why it’s so important that Kansas City home buyers consider a few core issues before beginning their home search.
If there is any uncertainly about your job situation or job security, you should consider buying a smaller, more affordable home — or renting until your situation becomes more clear. Having a stable income is the only way you will be able to enjoy home ownership. If you believe there’s any chance you could get laid off or relocated or if you are self-employed and your income level fluctuates greatly, you could be setting yourself up for a lot of stress later. Having to turn around and sell a home quickly, usually leads to financial losses, even in a seller’s market.

If you already have a lot of debt that you aren’t able to pay down significantly each month, then buying a home is just going to add to your monthly expense burden. If a Kansas City mortgage lender says you qualify for $2,000 a month house payment, that means that’s the MAX you qualify for – and it means that if you go that high with your payment, you’re likely going to be in a poor position to satisfy some of your other wants and needs later. If a lender’s Pre-Approval tells you that you can afford a $300,000 home, you might only want to go up to $250,000 to leave yourself some breathing room going forward.

Additionally, you should also have cash reserves in the bank. Without getting too deep into any client’s financial affairs, there’s a tell-tale sign of someone who’s about to put themselves in a difficult situation. That’s the question of how much of a down payment the buyer has… FHA loans require a 3.5% down payment and conventional loans require a 5% down payment. If a buyer doesn’t have at least this much in savings, they really should be renting and working to save up the money to purchase a home. There are also future home repairs that a buyer needs to consider. If the air conditioner goes out, you had best have a home warranty in place or savings to pay for the repairs. If you don’t, you’ll either have to hold off on the repairs or make monthly payments on the repairs — neither being great options.

Posted by Jason A. Brown

Tell Your Kansas City Realtor To Leave Those Rose Colored Glasses Behind

Hands On The Heartland
Checking The Pulse Of The Kansas City Real Estate Market

Let’s be honest, it’s not all that hard to become a Realtor in Kansas City and in other parts of the country for that matter. Spend a week studying, take the exam and you’re off and running.  That’s how I did it 15 years ago and how I assume most other real estate agents do it as well.  From there though a startling 80% of agents drop out within a year. That means 80% of people who jump in thinking that selling real estate is easy, find out it’s not. The 20% who make it past the first year quickly start to distinguish themselves from each other.  I certainly run my business different from many agents. I’m candid, not wishy-washy. I tell my clients the truth even when it hurts — even when it costs me business. My job is helping guide people in making their real estate decisions and, if I do that well, I’ll close enough transactions to make a living.


Recently I was talking at the water cooler with a fellow agent I respect and we were discussing how rough it is for sellers out there. After eaves-dropping for a while, another agent asked if all we had to share was bad news. I turned to her and asked if she was aware that for the past 12 months, in every one of the primary cities I work, there had been MORE homes coming on the market than home Sold. (Read: even more competition hitting the market for home sellers.)  I shared with her a few of our area market statistics before she interrupted to say that she’d rather look on the bright side of things. Well, I can appreciate that in a person. However if my financial planner gives me advice through rose colored glasses, how does that help me? I guess a pep talk could have me feeling better until my next investment statement arrives in my inbox. You see, I want the TRUTH, even when it hurts.

Speaking of the “truth”, it’s a fact that many home sellers in Kansas City right now want to work with an agent who makes them feel better about their situation. I understand this is a stressful time for many who own real estate and are facing a possible Short Sale, Foreclosure or have had to give up important things in life to keep up with their house payments. But I’ll get out of the business before someone can convince me that a real estate agent’s primary job is to make the client feel better. That perception is ridiculous to me. If I’m selling a home out-of-state, I’d want an agent who works hard for me and who has an in-depth knowledge of the area so they can give me the best possible advice. I want an agent who has statistics to back up their assertions. I want an agent who has the online presence to help me succeed and online tools that simplify the process. I’d want an agent who is organized, easy to communicate with and who understands my goals. But most importantly, I’d want an agent who doesn’t own a pair of rose-colored glasses.

Posted by Jason A. Brown
COMMENTS CAN BE LEFT BELOW…
(Click post headline if you don’t see the LEAVE A COMMENT section.)

Johnson County Kansas Real Estate Update – July 2009

Hands On The Heartland
Checking The Pulse Of The Kansas City Real Estate Market


Johnson County Kansas Real Estate Information
Past 15 Days of Johnson County KS Real Estate Stats
Type
#
Average $
Avg DOM
Listings Past 15 Days
571
Total Active Listings
3,289
Newest Contracts Written
408 $245,946 96
Newest Sold (Closed)
309 $266,218 118

* Average $ of “Newest Contracts” considers the price the homes were listed at when they went under contract. Data pulled from Heartland MLS and deemed reliable but not guaranteed. Low samplings in any category can skew results.  Stats may not be an exact 15 days from date of this post.  DOM = Days On Market.

Johnson County KS Real Estate

Johnson County KS Real Estate

Using these past 15 days of market stats to figure the absorption rate in Johnson County Kansas, there’s currently 5.3 months of inventory on the market. If we use the 408 contracts written to figure the absorption rate (under the assumption that they all make it to closing – which they won’t), then the absorption rate would be an improved 4.0 months of inventory on the market in Johnson County KS.

The market is really looking better in terms of sales rate in the Johnson County KS area. We’re still seeing more homes listed than sold and since the months of inventory isn’t spiking this is an indication a significant amount of homes are going unsold/taken off the market by the sellers. This is not necessarily a bad thing because sellers simply running it up the flag pole further saturate the Kansas City real estate market.

Looking at 15 days of market stats is a small snap shot of local Johnson County KS activity. Market conditions also vary greatly from one city or subdivision to another, so don’t take just a macro look at market activity. Feel free to contact me to obtain detailed market stats on YOUR city, subdivision, zip code, etc.

View Past Johnson County KS Real Estate Stats

Johnson County KS Buyer’s Agents

Johnson County KS Listing Agents

View All Johnson County Homes For Sale On Kansas City MLS

Posted by Jason A. Brown

COMMENTS CAN BE LEFT BELOW…
(Click post headline if you don’t see the LEAVE A COMMENT section.)