Tag Archives: Lenexa KS Real Estate

Home Sellers Reduced Home Prices $24 Billion During The Past 12 Months

Posted on by
Checking The Pulse Of The Kansas City Real Estate Market

According to Trulia, home sellers nation-wide lost $24 billion in potential equity by way of price reductions taken when selling their homes. Many of the homes included in the report are still on the market and will see further price reductions before selling. Nationally, home prices were down 6.7% in the U.S. in February (year-over-year). Extremely motivated home sellers should watch the video in the link below and be sure their real estate agent is giving them the local real estate market stats, so they can make an informed real estate decision…

Realty Check: Pricing Under Pressure
Thu 07 Apr 11 | 04:25 PM ET


Posted by Jason A. Brown

Add to DeliciousAdd to DiggAdd to FaceBookAdd to Google BookmarkAdd to RedditAdd to StumbleUponAdd to TechnoratiAdd to Twitter

How Would Elimination Of 30 Year Fixed Rate Loans Affect Kansas City Home Buyers?

Posted on by
Checking The Pulse Of The Kansas City Real Estate Market

The other day a Realtor told me she didn’t care if Fannie Mae never backed another loan. Her argument was that Fannie Mae is backed by the government and government shouldn’t be meddling in the mortgage business. She added that the failed loans that Fannie Mae provided are a large reason for the downturn in the real estate market. There is some truth to that but the problems we’re faced with run deeper. But even if you agree 100% with this agent’s assessment, consider this… Fannie Mae is the major reason the majority of home loans were made during recent decades. Without Fannie Mae many Americans would not have a home and those who still would wouldn’t have mortgage loans as we know them today.

Without Fannie Mae, there would likely be no more 30 year fixes rate loans made. Why is this you ask? Because many private lenders aren’t willing to guarantee an interest rate for 30 months, much less 30 YEARS. And that’s exactly what Fannie Mae promotes. You go to your local bank to get a loan, your local bank runs a combination of you and your home through the Fannie Mae underwriting system and, if things look good, Fannie Mae will guarantee a 30 year fixed rate loan… and you get your loan. If interest rates jump from 5% to 10% over the coming years, there’s no worries because your interest rate is locked and guaranteed.

But if Fannie Mae wasn’t standing there to back the loan, do you think your local bank would lock and guarantee an interest rate for 30 years? Most banks wouldn’t do it when times were great, so most surely won’t do it today. What does all this mean to us as home buyers? If Fannie Mae goes out of business, the available loan types that our local lenders will make will be MUCH more conservative. Start thinking about 3 years ARMS which put the interest rate risk on you as the buyer and takes long-term interest rate risk off the banks making the loans. Yes, I’m talking about those same 3 year ARMS that caused tons of foreclosures when the interest rates starting re-setting in year 4.


Posted by Jason A. Brown

Add to DeliciousAdd to DiggAdd to FaceBookAdd to Google BookmarkAdd to RedditAdd to StumbleUponAdd to TechnoratiAdd to Twitter

Expect The Buyer’s Real Estate Market In Kansas City To Continue

Posted on by
Checking The Pulse Of The Kansas City Real Estate Market

I start off most days by reading local and national sources for news that has an effect on our local Kansas City real estate market. It will take more than an isolated piece of good news to get things turned around, but it has to start somewhere and I’m there most days looking for that news. But even on the days when I find good news, the next nine pieces are bad news for the real estate market. For instance, new home sales rose 6.6% last month. But then I see that it’s been more than year since the unemployment rate was below 9.5%. Until that changes, buyer confidence is going to wane. The buyers who are out there will need to make sure they are on solid ground and have their ducks in a row.


There’s also a lot more to consider than just unemployment. Economists say inflation is likely to rise. Food prices are likely to rise. Gas prices are likely to rise. I wonder how many buyers this winter are going to be ready, willing and able to buy and sell a home — irregardless of all the great deals that are out there. There’s plenty of other challenges facing a real estate turn around in the coming months… Goldman Sachs projects the Federal Reserve needs to purchase $4 TRILLION in assets for there to be any chance of getting things moving in the right direction. I read that precious metals are soring to ridiculous levels — I believe I read that silver prices had almost doubled this year. When this happens it’s a clear indication that people are running scared to perceived low-risk investments.

On a real estate level, foreclosures aren’t falling like I’ve heard many real state agents say. Just the opposite is occurring. In fact, we just saw the ALL-TIME record for foreclosures in a single month — there were more than 100,000 foreclosures reported in September. The Case-Shiller report that came out this week shows home prices have declined for consecutive months. The president and chief executive officer of the The Federal Reserve Bank of New York indicates we have 3 MILLION more vacant homes in the U.S. than normal.

Then there’s the examples of overqualified workers I’ve seen taking on jobs to make ends meet. This includes there being 5,000+ janitors, 18,000+ parking lot attendants and 300,000+ waiters/waitresses in the U.S. who all hold PhD’s, college or some sort of professional degree. There’s a lot of sellers wanting to “buy down” right now due to the market but the problem is there’s very few “buy up” buyers to purchase their homes. Before making the move to take advantage of the amazing real estate deals available today, most buyers are moving cautiously to ensure their plan is in place, finances are in complete control and ensuring a comfort level with their job security.


Posted by Jason A. Brown

Add to DeliciousAdd to DiggAdd to FaceBookAdd to Google BookmarkAdd to RedditAdd to StumbleUponAdd to TechnoratiAdd to Twitter

Lenexa Kansas Real Estate Update – September 2010

Posted on by
Checking The Pulse Of The Kansas City Real Estate Market
Real Estate Info for The City of Lenexa KS
Recent 15 Days of Lenexa Kansas Market Activity

After using the past 15 days of market stats below to calculate the absorption rate in Lenexa Kansas, we can determine there’s 10.8 months of inventory on the market. This is high and yet another indication of the buyer’s market we’re seeing. There is a ton of great inventory for buyers to choose from and the average list price of the new homes coming on the market (269,472) is perfectly in line with the average sales price over the same 15-day period in Lenexa.

Type

#

Average $

Avg DOM

Listings Past 15 Days

 50 $269,472

–

Total Active Listings

 344

–

–

Newest Contracts Written

 18 $276,467 249

Newest Sold (Closed)

 16 $294,689 185

* The 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.

The days on market continues to creep upwards in Lenexa and the 16 homes that sold took more than 6 months to do so. The 18 homes that went under contract were already at 249 days on market, so the stats are trending the wrong way for Lenexa home sellers. Whether buying or selling a home in Lenexa Kansas, it’s more important than ever that you align yourself with a real estate agent who understands what’s going on in our real estate market. Please let me know more about your real estate situation and I’ll get you the market stats specific to the areas that interest you most. I look forward to representing your best interests all the way through the real estate process.

View Past Real Estate Stats On Lenexa Kansas

Buyer’s Agents In Lenexa Kansas

Seller’s Agents In Lenexa Kansas

Relocating to Lenexa Kansas

View All Listed Lenexa Kansas Homes For Sale

Lenexa Kansas

Lenexa Kansas

Interesting Lenexa Kansas Link…
Lenexa Kansas Parks and Recreation Guide
Posted by Jason A. Brown

The Price Is Wrong Bob: Disputes Over What Items Are Fixtures Could Lead To Fisticuffs

Posted on by
Checking The Pulse Of The Kansas City Real Estate Market

I was at a final walk-through with a Lenexa home buyer and I see him staring intently into the 1/2 bathroom. My buyer asked if I knew whether the mirror over the vanity was staying. I said, if it’s screwed or glued to the wall then it’s staying. Otherwise it’s not a fixture and he should expect the home seller to take it with them when them moved out. Well, the mirror was just hanging on a nail and in all likelihood the mirror would be gone when my buyer took possession of the home. Fortunately this seller either didn’t want the mirror or didn’t realize it wasn’t a fixture because the mirror was still there after closing.

Many Kansas City real estate agents use the phrase “anything nailed, screwed or glued to the home stays with the home”. Really though, it’s more complicated than that. The Residential Real Estate Sale Contract (used in probably 99% of residential home sales in the Kansas City area) states that fixtures include items “buried, nailed, bolted, screwed or glued” to the property. But that paragraph in the contract becomes a little vague with the verbiage “or otherwise permanently attached to the property”. In most cases though it’s pretty clear what items are a fixture, equipment or appliance — and thus expected to stay with a home.

To make things as clear as mud, there’s a whole section of the base contract devoted to spelling what is a fixture in a home. Some of the interesting items include “Central vacuum and attachments”. Of course the central vacuum is a fixture but somewhere along the way, some squirrely seller must have taken the attachments with them when they move out. Fireplace glass doors that are attached to the firebox would stay. But fireplace doors just sitting on the hearth would not. Garage door openers obviously stay but since the remotes are NOT attached to the home, the contract is clear that those too are fixtures too. Humidifiers stay, right? Well, the one’s that are attached to the furnace do. But humidifiers sitting on the floor next to the furnace don’t.

The base contract says all built-in kitchen appliances stay yet that doesn’t include the refrigerator. The logic is that the refrigerator isn’t attached thus making it personal property. I’ve never seen this disputed but I wonder when the time will come that some seller will take the range/oven with them at closing. Like refrigerators, most ranges are not attached to the cabinetry or floor in any way — they simply slide in and sit on the floor.  One day a buyer is going to show up after closing to find the seller has taken the range with them. Could make for another good Judge Judy episode.

What about that shelving in the unfinished basement or garage? If it’s screwed into place then it stays. If it’s just sitting there on the floor, it doesn’t. One items that is seemingly a fixture but which does NOT stay with the home is a satellite dish. I assume that’s because many satellite dishes involved service contracts that bind the seller to continue paying for their service for the duration of the agreement — irregardless of where the seller lives.

Another of my favorites is outdoor play-sets. Those clearly are NOT fixtures but some sellers just leave them behind. It’s not right and if a buyer didn’t express interest in the play-set, the seller is probably going to have to come back and remove the play set from the property.  In an attempt to avoid this becoming a problem just before or after closing, I recommend writing into the additional EXCLUSIONS section of the contract that “play-set does NOT stay”. And about those ever confusing window treatments… blinds are fixtures but curtains are not. The rods the curtains hang on however are fixtures because they’re secured to the home.

Posted by Jason A. Brown

Is Your Johnson County Kansas Homeowners Association A Blessing Or A Curse — Or Both?

Posted on by
Checking The Pulse Of The Kansas City Real Estate Market

Homeowners Associations place restrictions on the homeowners living within a community and those restrictions typically include the types of materials they can be used to build an exterior deck on a home. This may seem like a pain, but it’s those same restrictions that help keep property values higher in the community. An HOA may charge hundreds of dollars each month in dues but it’s those dues that provide the funds to support a nice community pool and maintenance of the common areas and the entryway into the community. So a good homeowners association provides benefits that outweigh the costs and hassles involved.

Despite the hoops that must be jumped through, I’d personally never live in a community in town that didn’t have an HOA keeping the neighbors in line. It’s a small price to pay to have to follow rules and regulations when it comes to the types of materials I can use on my yard fencing, roofing shingles and decking boards. I also happen to like the Johnson County beige color that most exteriors are painted and would NOT want my neighbor’s house painted purple. That could happen if there were no HOA present. Well, actually, that could happen WITH an HOA present. But there would repercussions — the most common being the HOA fining and/or placing a lien on the property who’s broken the rules. Though the most common reason a lien would be placed on a property is due to non-payment of the homeowner’s yearly or monthly dues.

Most communities have a well-run homeowners association, but some others have their troubles. Some don’t have enough homeowners present to cover the costs of the HOA’s commitments. Others have homeowners who refuse to raise the dues to a level that will cover the HOA’s commitments. Others waste the collected dues frivolously. Running an HOA could include maintaining a community pool, clubhouse, walking trails, park, common areas, trash pickup, etc.

A Homeowners Association is also about more than just collecting enough to cover the current costs and expenses. It’s also imperative that the dues being collected are enough to provide a SURPLUS of funds for when major items break down, wear down or become obsolete. I’ve heard 25% used as a good rule of thumb for HOA savings — in other words, if your HOA dues are $400 a year, then $100 of those yearly dues should be going into savings. If you have concerns about the restrictions on the subdivision you’re about to buy into or if you have questions about the stability of the HOA in question, ask the home seller for a copy of the homeowners association restrictions early in the process – or ask the seller for the contact info for the HOA. You can also ask for a copy of the HOA’s current yearly budget and financial statement.

Posted by Jason A. Brown

Always Do A Final Walk-Through Prior To Closing Your Kansas City Real Estate Transaction

Posted on by
Checking The Pulse Of The Kansas City Real Estate Market

Once a buyer has come to terms with a seller on an Inspection Resolution, most transactions are full-speed ahead to closing. As a listing agent I know that many home buyers never even come to do a final walk-through of the home. Or if it’s a vacant home the buyer’s agent may have let the buyer into the home without notice. Either way is not the proper way to handle matters in the days leading up the closing.


Doing a final walk-through in the days prior to closing is important for many reasons. One, it’s the buyers chance to walk the home and verify the agreed to inspection items have been completed properly. If something hasn’t been done, there will be time for the seller to get contractors back to the home – assuming you don’t try to do the walk-through at the very last-minute. Just as important, a final walk-through allows a buyer to walk-through the home and be sure nothing adverse has happened to the home in the weeks leading up to the closing. Image if there has been a plumbing leak, roof leak, fire damage or vandalism to the home in the mean time?

You might also like to know if the seller damaged the hardwood floors moving that piano out of the home. Or if they’ve left huge holes in the drywall after removing large items. You’ll also want to verify all items that were considered “fixtures” in the real estate contact are still at the home. Did the seller take the half bath mirror with them that was screwed into the wall? Did they take the refrigerator that was clearly written in the contract as staying? These are important factors that only a final walk-through will help with and have you feeling confident when you sit down at closing to sign on the dotted line.

Closing on a home using the seller’s “word” that they’ll get things straightened out after closing could mean the item will never get addressed. A buyer looses most of their leverage after the closing has occurred and the seller has their money. Of course a buyer could sue if the issue is worthy enough, but why not avoid that by just making sure everything is in order PRIOR to closing?  Some of the other more critical items to really look over include making sure the there’s no damage to the walls or floors from the seller moving out and that the furnace, air conditioner and kitchen appliances are all working properly.

If a home simply can’t be made perfectly ready for closing, then there’s several options. The obvious one is delaying the closing, but that could be a very bad situation for a buyer or seller… or both. The sales price of the home could be reduced by the amount needed to address the item in question — if the lender will allow this to occur. Money could be placed into an escrow account and released once the item is complete. Another solution I’ve seen, is the seller agrees to pay for an item at closing and a check is cut by the title company to the company that will be doing the repair. The check is then given to the BUYER of the home at closing, who will have the leverage of not releasing the check to that company until the work is completed.


Posted by Jason A. Brown

Only You Can Truly Decide How Much Kansas City Home You Can Afford

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

As a Kansas City home buyer, the Golden Rule for how much you can afford is to simply ask yourself. No one is more qualified than YOU to decide what YOU can afford. Now a mortgage lender is going to tell you the max amount they’ll let you borrow. But that amount may be much more than you can or want to truly afford. And by afford, I mean how much you can “afford” to sacrifice other things in your life. It’s one thing to afford a $2000 a month house payment and another completely to be able to do so without compromising your favorite boat or expensive dining habits.


So when the lender says here’s your Pre-Approval Letter and you can buy up to a $290,000 home, the better question is “how much will my payments be? Once you know that you’ll know if buying a $290,000 works into your master plan. If it doesn’t, then maybe you should be looking at $200,000 or $250,000 homes. It’s up to you and this is not something than any loan officer, Kansas City Realtor, friend or family member can decide for you. When a lender pre-approves you, the underwriting guidelines are designed to minimize the lender’s losses and are not in place to protect your  future finances. A good loan officer will certainly help you with that, but the underwriting guidelines that spit out a Pre-Approval Letter don’t factor it into the equation.

So what are some good rules of thumb when deciding what’s the right amount of mortgage payment? A good general rule of thumb is that your house (including principal, interest, taxes, insurance and PMI on the loan and also including your HOA dues) should not take up more than 25% of your gross income. But if you use this rule of them then you’ve already broken the Golden Rule in  the first paragraph. I know that I’m seeing buyers purchase homes at double to quadruple the amount they make per year.  In other words you could use as a general rule of them that someone who makes $50,000 may be able to purchase a $200,000 home — of course that’s making a whole lot of assumptions. But you would never use a rule of thumb anyhow when making such an important decision, would you?


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

Lenexa KS Real Estate Update – October 2009

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

City of Lenexa Kansas Real Estate Update
 Past 15 Days of Lenexa KS Real Estate Stats
Type
#
Average $
Avg DOM
Listings Past 15 Days
 34 $238,936
–
Total Active Listings
 301
–
–
Newest Contracts Written
 31 $232,569 135
Newest Sold (Closed)
 21 $230,444 89

* The 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.

Lenexa KS Real Estate

Lenexa KS Real Estate

Using these past 15 days of market stats to figure the absorption rate in Lenexa Kansas, there’s currently 7.2 months of inventory on the market. That’s high and an indication that 300+ homes on the market is too much inventory for the 40 sale per month pace this 15-day period puts us on. The average sales prices are in line however, from the average list price ($238,936) to the average sold price over the past 15 days ($230,444).

The average days on market of the sold homes is 89 days and decent in our current market. However it should be noted that the 31 homes that went under contract took an average of 135 days to do so. Also, looking at 15 days of market stats is a small snap shot of local Lenexa Kansas activity. Market conditions can and do vary greatly from one subdivision to another, so be sure you request that your real estate agent give you the market stats of the specific Lenexa home community that interests you.

View Past Lenexa KS Real Estate Stats

Lenexa KS Buyer’s Agents

Lenexa KS Listing Agents

View All Lenexa 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.)