Tag Archives: Selling A Kansas City Home

How An Olathe Kansas Home Seller Came Out A Winner In A Buyer’s Market’s

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Checking The Pulse Of The Kansas City Real Estate Market

Home buyers are looking for the deal of the century so it’s important for serious home sellers to place themselves in the best possible position to achieve success. Far too many home sellers believe the best strategy is to price their home high and hope for an offer to come in. That’s a tough strategy in a seller’s market and simply isn’t working a buyer’s market. Other area home sellers are pricing their homes right at perceived market value when comparing their homes to the rest of the listings on the market. However due to our current market and fewer buyers being present in the marketplace, the buyers who are shopping for homes are expecting a deal. So pricing at market value today may not illicit any buyer response.

While many buyers will be looking closely at the price of the other area homes for sale, a good buyer’s agent and the appraiser (who will be appraising the home later) will both be looking instead at the comparable SOLD homes. So to get a home sold quickly and for top dollar, home sellers should look closely at what comparable homes have sold for recently and price their homes at or slightly below a value based on that information. Doing so will keep you a step ahead of the competition and will have your competition adjusting their price to match you, rather than you chasing them on pricing. This is important because the next buyer who comes into your neighborhood is probably going to be most interested in the best priced home. If you aren’t THAT home, you’re likely just going to help competition sell their home.

While some home sellers will view this as potentially underselling their home, the reality is that selling quickly almost always nets the most for a home, while the effects of overpricing are much worse. The home sellers in today’s market who price their homes ahead of the competition are giving themselves an excellent opportunity at a quick sale and for selling the home for the most the market will bear. This is exactly what happened with an Olathe home seller who took my advice, priced their home appropriately, and got it sold in just four days… while the comparable competition in the neighborhood is left wondering what just happened. This seller now gets to move on to the fun part… locating their new home.


Posted by Jason Brown

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When Is The Best Time To Buy or Sell A Johnson County Kansas Home?

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Checking The Pulse Of The Kansas City Real Estate Market

People will try to time the market but in many cases the proportion of buyers and sellers are similar at different times of the year. In May there will be a lot of buyers out there but there will also be a lot of sellers competing for those area home buyers. Without knowing more about the factors surrounding the buyer’s home purchase or the seller’s home sale, that doesn’t necessarily give a buyer OR a seller an advantage.


Some think the best time to buy a home is in August or January when there are the fewest number of buyers in the marketplace. But the good homes have often sold by July and December and there’s a low volume of listings typically coming on the market at those times. So, is buying home when the best listings are gone and when are there fewer listings on the market really a good idea?

Deciding the best time to buy a home is truly a personal decision. That’s why I believe the best time to sell and buy a home is when the time is right for YOU. Yes, May is generally a better time to sell than March, but if you need your home sold soon I wouldn’t wait simply on the assumption it will be better if you do so. And February is probably better than December but if you hope to follow up a home sale by getting involved in spring buying market, then waiting could actually have a negative net affect on your sale/purchase outcome if it takes you longer than anticipated to sell your home.

More than anything, I recommend looking at the supply and demand at a given time. As a seller you want to sell when the months of inventory seems to be at a low point. As a buyer, you want to buy when the months of inventory seems to be a high point. Doing so will put you at an advantage in your real estate transaction and it won’t matter if your calendar shows that it’s June or December.


Posted by Jason A. 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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You Know It’s A Buyer’s Real Estate Market In Kansas City When…

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Checking The Pulse Of The Kansas City Real Estate Market

You know it’s a buyer’s real estate market in Kansas City when…

1. … a buyer’s agent tells a listing agent the seller better accept that contingent offer or else.

2. … a buyer expects every single item on the inspection report be corrected by the seller.

3. … a buyer rules out a 50-year old because it has a squeeky floor.

4. … a buyer views 20 homes and doesn’t find a home they like.

5. … a buyer won’t consider any home that doesn’t have a finished lower level, fence and a butler.

6. … a buyer asks for $5,000 in seller paid closing costs yet the buyer has a $25,000 down payment.

7. … a buyer won’t give a home seller even a half day after closing to give up possession of the home.

8. … a buyer demands a sales price equivalent to the sale’s price of the foreclosure home next door.

9. … a buyer rules out a home out because it has wallpaper in one bathroom.

10. … a buyer asks for a home warranty, the refrigerator and the dog to be included for free.


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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Donating Excess Items To Charity When Moving Out Of Your Kansas City Home

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Checking The Pulse Of The Kansas City Real Estate Market

The average Kansas City home seller has lived in their home for about 6 years.  A LOT of items, much of it junk, can build up in a home’s living and storage areas during that time. You’ve probably seen some of the worst case scenarios if you’ve watched the TV show Clean House. But even mild problems need addressed when selling your home.  In some of my previous posts, I’ve covered the options of disposing of items and also storage of items when preparing your home for sale. But there’s another excellent option for the items that fall in between “worthless” and “keepers”. You can donate the items to charity. In addition to helping those in need, it can also be tax deducible if done the right way.

You know that when it comes to de-cluttering, it can not come at the expense of another room or even the home’s storage areas. So, after you’ve organized the items you no longer you need, you can move forward the plan to donate those items. First of all, make sure you take details notes on the items you’re donating. When it comes to valuing the items, there’s no exact formula used by the IRS for verifying the amount you place on the items. But if you drastically overestimate the value of your donations, you’re asking to get audited. Consult a tax advisor as it relates to donating item for tax purposes. (Thank you random italicized voice.)  Should you ever get audited, you’ll be glad you have good records detailing the items you have given to charity. Most of us probably don’t have the receipts from when we purchased the items, but it’s important that you do assess a value to every item. Know this much, the value is going to be something less than what you paid for the item.

Should you ever get audited, it would probably help if you have taken photos of the donated items. To  help you “do the right thing” when assessing the value of donated items, here’s an IRS link for Determining The Value Of Donated Property and here’s a short YouTube video from the IRS It’s my understanding that if you donate less than $500, there’s no special document necessary to take the deduction at tax time. It can get more complicated after that and if you’ve donated items over $5,000  I’ve heard that an actual appraisal is required. Tax rules change all the time and this article is not tax advice.  Remember, I’m just a Kansas City real estate agent talking to you about donating items when selling your home. Always contact a CPA for tax advice.

If donating items when readying your Kansas City home for sale is in your future, here’s some great options in the metro area...

SALVATION ARMY – KS & WESTERN MO
GOODWILL – EASTERN KS & WESTERN MO
VIETNAM VETERANS OF AMERICA – JOHNSON COUNTY KS
BIG BROTHERS BIG SISTERS – GREATER KC


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