Pre-Inspections Could Cause Kansas City Home Sellers To Face Double Jeopardy

Checking The Pulse Of The Kansas City Real Estate Market

I’ve debated other Kansas City real estate agents over the years about whether pre-inspecting a home is a good idea for home sellers. There’s a few agents who agree that there’s more downside than upside to pre-inspecting but the majority of agents are quick to recommend pre-inspections to their home sellers. One of the main benefits to pre-inspections are they provide home buyers reassurance in the home. Another reason home sellers might pre-inspect is to give themselves ample time to address inspection items that may come up — before a buyer gets involved and possibly tries to dictate the repair process. These sound like very decent reasons to pre-inspect but you’ve also got to consider the downside of facing double jeopardy of sorts when it comes the home inspection process.

I certainly don’t recall any home buyer ever choosing a particular home simply because it had been pre-inspected. You can bet that, whether or not a home has been pre-inspected, a home buyer is going to hire their own home inspector to look things over once the home goes under contract. Doing a pre-inspection will cost a home seller several hundred dollars and the seller is then required by law to disclose ALL material defects in the report to future buyers. In most cases, a home buyer is going to expect a seller to have addressed all critical items in the pre-inspection report. Then the buyer is going to do their own home inspection and the seller is going to get to go through the repair process once again after the buyer’s home inspector pours over the home.


Posted by Jason Brown

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Lowering Of Conventional Loan Limits Should Have Minimal Effect On Kansas City Real Estate Market

Checking The Pulse Of The Kansas City Real Estate Market

Fannie Mae is planning to be less involved in future upper bracket home purchases. Currently, most counties across the U.S., including all of our Kansas City metro counties, have a $417,000 maximum loan amount that Fannie Mae will back. This means if you need a $450,000 loan, you don’t qualify for a conventional loan backed by Fannie Mae and will need to search for a lender willing to deal with this price range loan. That would likely mean higher loan costs, a higher interest rate, etc. Since it doesn’t appear there will be any change to the $417,000 level, it appears our Kansas City real estate market is mostly insulated from the coming changes.

More expensive real estate markets across the country are sure to be effected however. During the mortgage lending crises of the past several years, Fannie Mae stepped in raising the maximum price on loans it would back. This was designed to help stabilize counties with the most fragile and expensive real estate markets (i.e. few lenders around who were willing to make loans on the homes). But now Fannie Mae is reeling things back in by lowering limits back closer to the lowest $417,000 figure. 

While Kansas City appears mostly insulated from these changes, any adverse affect on our delicate national real estate market threatens to have a trickle down effect.  With some reports indicating that national home prices have fallen back to 2002 levels, let’s hope the effects of these changes are minimal here in Kansas City, Johnson County Kansas, Overland Park and the surrounding areas.


Posted by Jason Brown

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Home Prices Show Signs Of Stabilizing In Kansas Despite Significant Drop In Volume Of Sales

Checking The Pulse Of The Kansas City Real Estate Market

The recent Kansas Association of Realtors (KAR) report on February’s real estate market indicates both the volume of home sales and average sales prices are trending down in the state. Overall in the state of Kansas, home sales (closings) fell 7.7% in February 2011 compared with February of 2010. This is vastly different from the 5% rise in average sales price we saw in last months’ report. Home prices did stabilize though and the 1.8% drop in sales prices was much improved after last month’s report which showed an 8% fall in home prices. Compared to the 5.2% national drop in home prices, Kansas appears much more stable than other U.S. markets.

There’s currently 11.7 months of inventory on the market in the state of Kansas, which is almost 1.5 months less than in last month’s report. Looking closely at our local market in Johnson County Kansas, 351 homes were sold (closed) in February. This was just slightly less than the 369 home sales in Johnson County in February 2010. Comparing this February’s sales rate  (adjusting for the short month) to the 3,786 Johnson County Kansas homes for sale, there’s 9.2 months of inventory available. This indicates a buyer’s real estate market in Johnson County Kansas and presents first time home buyers, move-up buyers and buyers considering a lateral move with an excellent opportunity to explore their options.

Posted by Jason A. Brown

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Checking The Pulse Of The Kansas City Real Estate Market

Kansas City Realtor

Jason A. Brown
Jason A. Brown
Jason Brown Premier Realty Group
Keller Williams Realty Partners, Inc.
Email Jason Brown
Office: 913-906-5417
Cell: 913-915-6008 www.JBPRealtyGroup.com


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Posted by Jason A. Brown

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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
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