Tag Archives: Kansas City Home Sellers

Several Real Estate Tax Breaks Could Be Ending For Kansas City Homeowners

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Checking The Pulse Of The Kansas City Real Estate Market

The majority of homeowners who made a down payment of less than 20% when buying a home are paying Private Mortgage Insurance (PMI). This is a necessary and expensive costs associated with many monthly mortgage payments. When paying PMI, Kansas City homeowners have at least been able to get relief by writing the PMI off when completing their annual income taxes (i.e. paying the PMI with BEFORE tax dollars). But this break is scheduled to come to an end this year unless homeowners itemize their tax deductions. This would cost these homeowners several hundred dollars a year by having to pay the PMI with AFTER tax dollar, so homeowners will want to weigh the costs of starting to itemize deductions versus the cost of losing this tax break.

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An additional tax provision related to Kansas City real estate that is scheduled to come to an end is the Energy Efficient Upgrade tax break. This has allowed homeowners since 2006 to deduct 10% of the costs of making their home more energy efficient, up to a total lifetime tax break of $500. A separate $500 energy tax credit is also scheduled to come to an end for homeowners who install energy efficient appliances. So if you’ve been considering installing new windows, a new air conditioner or a new range, now could be a good time.

The Mortgage Debt Forgiveness Act is another tax break scheduled to come to an end in 2013. This tax break has given underwater homeowners relief when completing a short sale, foreclosure or deed-in-lieu of foreclosure. When a lender “forgives” a homeowner from paying back all of what’s owed on a home, the “forgiven” debt amount may be viewed as taxable income. If so, and if this tax break ends, underwater homeowners could be faced with additional hurdles to overcome.

Time will tell if any or all of these tax breaks get extended. If they don’t get extended soon, it’s possible they could get retro extended at some point in 2014. This article is not tax advise and be sure you contact a CPA or tax adviser to discuss how past, current and future tax situations and changes relate to your personal real estate and tax situation.


Posted by Jason Brown

Selling Your Kansas City Area Home? Where It’s Advertised Is More Important Than Ever

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Checking The Pulse Of The Kansas City Real Estate Market

Knowing where your home is going to be advertised is a critical part of the home selling process. We go to great lengths to promote our sellers homes because we know home buyers aren’t just using the same old methods to locate homes. Knowing which sites are most popular with home buyers is very important and what’s popular today may not be tomorrow. So we’re constantly studying the trends to help our sellers maximize their real estate investments.

Over the past several months, there’s been a lot of fluctuation among the most popular real estate sites. When I had a seller tell me another listing agent told them the only places their home needed to be advertised were MLS and Realtor.com, it took just a few minutes to show them how severely they’d be limiting themselves if they relied solely on that marketing plan. Though Realtor.com is still a popular site, it’s no longer #1 in home buyer’s hearts. That distinction falls to Yahoo Real Estate. In fact, Zillow is now consistently ranking ahead of Realtor.com so you can see the importance of having a thorough marketing plan.

You may be surprised to hear that if you add ALL three of these top sites together, they still only account for 20% of the market share. This means that even if an agent is marketing your home in ALL three of the most visited real estate sites online, you’ll still be missing out on 80% of the market share if nothing else is done. Real estate has really changed in recent years and I’d look forward to sitting down with you and showing you where the other 80% of home buyers are searching for homes.


Posted by Jason Brown

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Potential FHA Loan Changes Would Have A Drastic Effect On Kansas City Home Buyers… And Home Sellers

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Checking The Pulse Of The Kansas City Real Estate Market

Mortgage industry consultant Brian Chappelle estimates that FORTY PERCENT of home buyers would fall out of the market-place if FHA raises the minimum down payment requirement from 3.5% to 5%. I just don’t see how we can afford to implement these types of drastic changes with a real estate market – and economy – already on edge. The lack of buyer demand is already harming property values across the country and imagine what would happen if 40% of home buyers disappeared due to sweeping FHA mortgage changes.


Increasing the minimum down payment from 3.5% to 5% on a $200,000 Johnson County Kansas home, would increase the home buyer’s down payment from $7,000 to $10,000. That’s a very significant THREE THOUSAND dollars and anyone thinking the potential FHA changes would be insignificant should think again.  $3,000 is guaranteed to run many home buyers we’re working with right now out of buying home. That will mean less demand for area home sellers and we all know what that means — lower sales prices.  These changes are very likely to happen though as we work to lessen the government’s involvement in the housing market. I hope there’s someone with a good head on their shoulders suggesting they SLOWLY (incrementally?) implement these types of changes. If not, it’s going to be a bumpy ride. 


Posted by Jason Brown

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Some Background On What To Expect At Your Closing When Buying Or Selling A Kansas City Home

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Checking The Pulse Of The Kansas City Real Estate Market

The real estate closing is usually the last big hurdle when buying or selling a home. Most closings are an after-thought but what goes on behind the scenes is vital to a successful real estate transaction and can surprise a buyer or seller — and even a seasoned Kansas City Realtor on occasion. Kansas City home buyers and home sellers who are nearing the end of their home purchase or home sale need the transaction to go off without a hitch and they don’t want to get confused with the terminology, closing costs and escrow.

In the Kansas City metro area, most real estate closings occur at a title company. In some other parts of the country, real estate closings occur at an attorney’s office. Virtually all home sellers close at the title company here in the metro area.  With home buyers, probably 80% close at the title company as well. But it’s the buyer’s lenders choice on whether the loan will close at their own mortgage office or at the title company. Most lenders choose to not mess with handling the closing and let the title companies earn the profit from doing so.

You may hear a closing referred to as a settlement closing or an escrow closing and they all mean the same thing. The result in any case is the transfer of ownership of a property from one owner to another. The average closing occurs about 30 to 45 days from going under contract, but some transactions can close quicker if needed. This is especially true on cash closings and/or closings on vacant homes. If a home is occupied by the home seller or if the buyer is getting a mortgage loan, it’s pushing it to try and close the transaction quicker than 30 days out.

The amount of closing costs involved can vary greatly from one transaction to another. There’s many factors that are outside of the title company’s control and a big one is how much a particular lender may be charging the buyer to provide the loan. Whether or not an appraisal and/or home inspection are done could effect the final closing cost amount. Title insurance costs also vary and the more expensive the home, the more expensive the title insurance will be (for home sellers). There are other items to consider as well, including varying government charges, taxes and recording fees and most loans will require a buyer to put cash in an escrow account to pay property taxes and insurance as they come do.

In addition to handling the closing, the title company has the important job of providing the title insurance. Title insurance protects a homeowner’s claim to the property because the title company researches and assures the seller and buyer that there are no other issues or claims to the title on the property.  Once everything is in order, we’re ready to schedule a closing time. The title company typically sends the buyer and seller a preliminary copy of the HUD settlement statement. This document details the financial figures of the transaction – for both the seller and the buyer – and this helps to ensure everyone is on the same page for the closing that is about to occur.


Posted by Jason A. Brown

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Kansas City Home Buyers Are Missing Out On The Perfect Storm

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Checking The Pulse Of The Kansas City Real Estate Market

I continue to see home buyers sitting on the fence, feeling there’s no need to hurry and/or waiting for the market to head back up before buying a home. But buying once the market is in a clear upward trend means paying a higher price for a home. It’s futile to try to time a market and signs right now indicate home prices are stabilizing in most areas. Many smart home sellers are realizing that they may lose money on their home sale but they’ll make it up on their home purchase. If they’re a move-up buyer, they’re in an even better position to see increased gains simply by buying more real estate in a down market. The more expensive homes are also the better deals in today’s market.


This is the perfect storm for Kansas City home buyers and we’re unlikely to ever again see the great deals present in today’s Kansas City real estate market. From Overland Park to the Northland and from Lenexa to Lee’s Summit, the volume of foreclosure and short sale listings present buyers with amazing choices. Even for those who don’t want to mess with a home in the condition of a distressed sale, the low prices of those homes is pushing down the price of move-in condition homes as most sellers realize they’ve got to be aggressive with their pricing to get attention.

In today’s buyer’s real estate market, buyer’s are getting away with being firm at the negotiating table… including close date and price in many instances. If you’re going to make a lateral move like selling a $200,000 home in Overland Park and buying a $200,000 in Olathe, now is a great time to make a move. If you have a good agent assisting you, you’ll minimize the losses on the your home sale and maximize the gains on the home purchase. If you’re a move-up buyer, even better. If you’re currently renting, you simply need to schedule a meeting with me and I’ll show you why buying a home makes more sense than ever.

Posted by Jason A. Brown

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Move-Up Home Buyers In Kansas City Need To Overcome Home Selling Paralysis By Analysis

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Checking The Pulse Of The Kansas City Real Estate Market

If you’re nearing retirement and wanting to sell your home and move into a retirement home, this is a tough time to sell. If you can’t afford your current house payments and need to sell your current home and buy a smaller home, I feel for you. In the latter situation, today’s lower interest rates will soften the blow. However it’s unlikely to help you overcome the net losses that will come with selling a larger home and buying a smaller one in today’s market. But there’s a perplexing paralysis by analysis with move-up buyers who are passing up what I believe in hindsight will prove to be opportunities of a lifetime.

There’s really is a serious disconnect that needs overcome or it’s going to take longer than it should to get out of our current real estate rut. There are a lot of home buyers who want to buy a home at a huge discount but refuse to sell their current home at today’s market value. It’s human nature to want to get a good deal when selling AND buying. But what buyers are missing is that they don’t have to win both the battle of selling and buying. We know we can get them a great deal when buying but that’s not enough for some sellers who can’t get over the hurdle of selling their home for less than what they feel it’s worth.

This thought process is certain to cost a lot of people a lot of money. There are more deals than ever in today’s real estate market and if you are a move-up buyer, waiting any period of time could cost you the deal of a lifetime. Selling a smaller home AT MARKET VALUE and then buying a new, larger, home AT MARKET VALUE has a positive net effect — due to buying larger when prices are at a discount. So many potential move-up buyers are so caught up in trying to win the selling battle that they are going to lose the war — and will live to regret not making the move when they could have moved up in a discount market and with such low interest rates.


Posted by Jason A. Brown

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Home Sales Are Slowing Despite Interest Rates Dropping Even Lower In Kansas City

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Checking The Pulse Of The Kansas City Real Estate Market

Mortgage interest rates dropped yet again this week, giving buyers further opportunities to refinance their current home or buy a home and lock in low mortgage payments for the next 15 or 30 years. It’s hard to fathom that Kansas City home buyers can secure a long-term home loan at just 4.25% interest. This assumes the borrower has decent credit and a 5% down payment.  Yet it’s become apparent that low mortgage interest rates alone aren’t going to carry us into a housing recovery.


Today’s low interest rates simply aren’t stimulating buyers the way they have in the past. That’s understandable though with more than 10,000,000 U.S. homeowners upside down on their homes and many more worried about job security and whether home prices will fall further. The market has certainly changed from five years ago when Kansas City home sellers were selling a home they bought two years earlier and turning a profit — AFTER factoring in real estate commissions, title fees, moving costs, etc.

In the past, when mortgage interest rates dropped, it was the signal for home sales to pick up. This time around however, it’s just not bringing as many home buyers out of the woodwork. Although low rates haven’t picked the real estate market up, I wonder if they’ve prevented the market from a complete collapse. It’s impossible to say for sure and I’m just thankful that the home buyers who are searching for a good deal don’t have to factor higher interest rates into the buying equation.

Posted by Jason A. Brown

Top 10 Things To Do If You Want To Kill Your Kansas City Home Sale

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Checking The Pulse Of The Kansas City Real Estate Market

Just when I think I’ve seen it all, I walk into a home this week that has three puppies in the master bath tub. The showing directions indicated dogs would be kenneled but who knew this is what that could mean? My buyer was not amused and I was – well, I was slightly amused – until I realized my time had just been wasted because my client had no further interest in the home. So this got me thinking, what are some of the craziest things I’ve seen that turned my buyers off when viewing a home. Here’s my top 10 list of things to do if you want to kill your Kansas City home sale…


1. Put 3 puppies in the jetted corner tub.
2. Sit the cat litter in the entry way.
3. Have a front door lock that falls off when opening the door.
4. Tell the appraiser about an upcoming neighborhood foreclosure.
5. Tell the buyer the mold isn’t bad enough to mitigate.
6. Have Marmaduke’s cousin roaming the home during a show.
7. Have standing water on your basement floor.
8. Stay at home for the showing and tell the buyers to take their time.
9. Have bugs in the home and a note that the seller is willing to exterminate.
10. Tell buyer’s agent they have a 15 minute window to show your home.


And I don’t dare say I’ve seen it all because no sooner would I say that than carnival music would start playing and the bearded lady would greet me at one of my showings tomorrow.


Posted by Jason A. Brown

4 Out Of 5 Kansas City Listing Agents Recommend Double Jeopardy To Their Sellers

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Checking The Pulse Of The Kansas City Real Estate Market

4 out of 5 listing agents surveyed say Kansas City home Sellers should have their homes pre-inspected. Here’s an opinion from the 1 out of 5 group. I believe pre-inspections are a bad idea for Sellers because they leave Sellers facing a double jeopardy situation in dealing with inspection repairs. One of the main reasons many Kansas City real estate agents recommend pre-inspections is because it allows a Seller the time to get multiple bids, thus saving them money on necessary repairs (versus having to deal with them in a rush during the Buyer’s inspection process). Although it’s possible a Seller could get repairs done for less if found during a pre-inspection, there’s usually enough time to deal with inspection repair bids during the alloted contract time frame — so this isn’t reason enough for me to recommend pre-inspecting.

Another reason I often hear is that pre-inspecting can help prevent contracts from falling apart later. While it’s possible that pre-inspecting could prevent a deal from falling through, it could also prevent Buyers from ever even making an offer on the home — depending on the issues, addressing repairs may not be enough to ease a buyers concerns that the issues were present in the first place. Some agents say that Sellers should pre-inspect because doing so allows the Seller to choose the inspector and that a Buyer may not even follow-up with doing their own inspections. But why would they trust a report that was ordered, paid for and, most likely, completed under the influence of the Seller? And don’t forget the reports aren’t free – they will cost Sellers several hundred dollars.

So what do I recommend Sellers do? Sellers should complete repairs to all issues of which the Seller is already aware. Sellers, by law, must disclose all known defects. So they’re better off disclosing completed repairs than having to disclose the problems unaddressed. Also remember that the inspection burden is on the Buyer, not the Seller. It’s a Buyer’s inspectors job to work at uncovering unknown defects. I’d let the Buyer’s inspector do their job and avoid double jeopardy when it comes to home inspections. Sellers who go through with pre-inspecting should plan to fix ALL items listed on the pre-inspection report. Otherwise, they’ll be giving Buyers reasons to NOT even make an offer on the home. Also keep in mind that no two home inspectors are alike, so Sellers should prepare to  open their checkbooks a second time after going under contract.  If you want to read more (much from the 4 out of 5 agents,) here’s a forum thread with agents discussing pre-inspections.

Note: most homes I deal with are less than 40 years old. Homes that are 50, 60… 100+ years old may make sense to pre-inspect — then again, I could make a good argument that pre-inspecting older homes could be even worse for Sellers. Also, the 4 out of 5 agents is a reference  to the old dentist commercial and no one was really surveyed.
Posted by Jason A. Brown

Be Sure You Hire A Kansas City Listing Agent Who’s A Full-Time Real Estate Professional

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Checking The Pulse Of The Kansas City Real Estate Market


I’ll bet that more than 3/4 of licensed Kansas City real estate agents are not full-time real estate professionals. I think I may even be conservative in that estimate.  Some time ago I read somewhere around 80% of real estate agents make less than $30,000. That means there are lot of part-time agents running around. I can’t fathom having my wife’s hair stylist manage my retirement plan in her spare time and why anyone would list their most expensive investment with a part-time agent is beyond me. If I’m selling a home in Phoenix, I’d NEVER hire a Phoenix real estate agent who sells real estate part-time. No exceptions to the rule.

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I certainly do understand relatives wanting to help another family member out — and many of us DO have a family member who’s a licensed real estate agent. But, really, unless the agent has a proven track record, choosing an agent simply because they’re a family member (or friend) could lead to hard feelings between family members (or friends). Firing a family member surely can’t be easy!

There are enough Kansas City real estate agents to choose from who are full-time professionals that you shouldn’t have to settle for an agent who doesn’t make selling real estate their number one priority. Think about it, if selling real estate isn’t the agent’s number one priority, then you’re not making selling your home your number one priority.  Taking it a step further, how is an agent who has a day job going to be able to attend the buyer’s inspections and represent the buyer’s best interests? Available to let the appraiser in the home? Available to promptly answer lender questions or the other agent’s questions along the way? Handle contract and inspection negotiations that sometimes take time and drag out? Be able to attend the closing at the title company? Better yet, what happens when the “world is falling apart”, which happens in about 1 out of 10 transactions? I hate telling a client that I need to step aside for a moment to handle a problem with another transaction. But at least I  CAN step away to handle a problem. If your real estate agent has a day job, a night job or a weekend job, then that means you’ve seriously limited your chances at a successful real estate transaction.

Posted by Jason A. Brown
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