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Category Archives: Home Seller Advice

2014 Real Estate Forecast

31 Thursday Oct 2013

Posted by JoannaGWilliams in Home Buyer Advice, Home Seller Advice, Kansas City Market Stats, MO, Moving

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Tags

2014 real estate forecast; real estate market, market stats

The Kansas City Regional Association of Realtors brought Lawrence Yun, NAR’s Chief Economist, in to shed some light on what the real estate industry can expect in 2014.

Right now, inventory is bouncing at 13 year lows. This has contributed to our rising prices and a new crop of For Sale by Owners. Nationally prices have continued to rise in the double digits throughout 2013 and with the current inventory shortage, this should continue through 2014. We all have witnessed some areas of Kansas City tracking at a good rate, so please visit my previous blog posts or contact me to find out the exact numbers for your particular area.

Dr. Yun stressed the importance of our need for more new construction, as new construction inventory is at a 50 year low. He said new home starts need to reach 1.5 million or we will have a persistent inventory shortage nationwide. Kansas City’s housing starts are at about half of their average. Another interesting stat showed us the gap between new and existing home prices is larger than it’s ever been. The only way this can be fixed is to have a dramatic increase in resale home prices. Right now, we are battling appraisals on about every other transaction. Consumers can rest assured real estate agents in Kansas City are fighting the battle against low appraisals with fervor. We are doing our best to keep those prices moving!

new home inventory

Photo courtesy of KCRARphotos

One of the most surprising stats was the fact that 30% of the transactions are cash. Lawrence stated further studies have indicated many parents have purchased homes for their children with cash and they are actually becoming the ‘lender’, having the payments with interest paid to them instead of a bank. Others are paying cash for the house to make their offers more appealing than the others that would be bidding on the same property. After the home closes, they are taking out Home Equity loans to finance the property and have the tax benefits from doing so.

The rental population continues to grow with home ownership flat lining at 64%. Home ownership is primed to grow, according to the historical data, but enough jobs have to be created in order to get renters into homes. The rental market is dealing with a large amount of college graduates with high debt and inadequate jobs. Actual household formation is increasing, it’s been low since 2007. Unfortunately, it’s not yet turning into an increase of new home buyers. However, the current wealth of homeowners is at a staggering amount, while the average renter has about $4000 total wealth. (A great reason to purchase a home!)

homeowner households

Photo courtesy of KCRARphotos

Some good news? Missouri and Kansas’ shadow inventory of distressed property is not only lower than the U.S. average, but has also shown only gradual changes (with the exception of the 2010 spike) over the last 13 years. There are bubbles in other areas that will hit soon, New York is one of the highest, almost double that of the entire U.S.

Photo courtesy of KCRARphotos

Photo courtesy of KCRARphotos

Interest rates will remain low, taking into account they were at 8% or higher 13 years ago. Dr. Yun stated they should increase to 5.3% by the end of 2014.

Photo courtesy of KCRARphotos

Photo courtesy of KCRARphotos

He predicted steady sales throughout 2014 with no increase in the number of sales, but the increase in home prices should help offset the lack of growth.

Another note, there has not been a meaningful increase in REALTOR membership which means less competition overall.

I felt this was one of the better forecasts as it seems more realistic than it has in year’s past. Trust me, there’s been several years we’ve left this forecast wanting to jump off a bridge and last year was full of unknowns. Since we’re finally seeing some steadying in the market, the economists are leaving less to chance and making strong predictions. To me, this in itself is positive.

Special thanks to Dr. Lawrence Yun for making the trip to Kansas City. Click here for all the slides from the presentation.

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Kansas City Real Estate Market Activity, September

18 Friday Oct 2013

Tags

better homes and gardens, bhgre, housing market, kansas city market, kansas city real estate

Kansas City Real Estate Market Activity, September

As discussed last month, Kansas City has become a very level housing market. In my opinion, the leverage in a transaction belongs only to the person that’s least motivated. For example, if a buyer has to have a home purchased within a certain time frame, the seller will have the advantage. The same thing can be said for a seller that has to unload a property. This is where agents need to recognize the hot buttons for their clients and also pay close attention to any hot buttons from the other party. Our negotiating skills will be put to the test along with our fabulous listening skills. Sales ARE still happening, but because sales have slowed down, we will see some discouraged sellers taking their homes off the market for the holidays. Buyers need to be aware of this and try not to hesitate when they find one they love.

Clay/Ray Counties
Clay/Ray County sales were down for the month by 4.1% from 2012. Units were at 256 versus 267 last year. Year to date, unit sales are up 6.7%, with 3,334 units this year versus 3,124 last year.
The average sales price for the month was up 10.1% from last year, with an average price of $160,875. Year to date, the average price is up 9.4%. The average price is $159,340, versus $145,722 last year.
New listings were up 89 units to 523 or 20.5% from last year’s 434 units. Inventory is down 0.9% from last year and is running at 2,015 units. Inventory is up 18 units from last month.

Platte County
Platte County sales were down for the month by 9.1% from 2012. Units were at 110 versus 121 last year. Year to date, unit sales are up 6.6%, with 1,441 units this year versus 1,352 last year.
The average sales price for the month was down 10.7% from last year, with an average price of $193,321. Year to date, the average price is up 6.5% from last year. The average price is $204,275 versus $191,834 last year.
New listings in Platte County were down 6 units to 207 or 2.8% from the 213 units last year. Inventory decreased 6.9% from last year and is running at 885 units. Inventory is up 25 units from last month.

Heartland
Adjusted Sales* for the entire Heartland area were at 2,311, up for the month by 5.3%, or 116 units. The average price was up 7.9%, and averaging $183,559. Year to date, sales were up 9.7% or 2,263 units for a total of 25,550 for 2013. The average price for the year is running at $182,483, up 9.4% from 2012’s average of $166,832.

Posted by JoannaGWilliams | Filed under Home Buyer Advice, Home Seller Advice, Kansas City Market Stats, Liberty, MO

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Knowing How To Price

13 Sunday Oct 2013

Posted by JoannaGWilliams in Home Seller Advice, Liberty, MO, Real Estate Career Advice

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There’s a ton of pricing theories in our real estate world. I would encourage you to have the discussion below before your home is listed on the internet or before your next price reduction. The simple truth is, getting your home sold quicker could be as simple as a couple of rounded numbers.

This is a portion of my blog post featured on Better Homes & Gardens Real Estate Clean Slate blog. 

Today, a buyer could search from $200,000-$230,000 or from $230,000 to $250,000 (especially if it’s a pre-populated drop-down list).

Notice any similarities in the above example? $230,000 appears twice.

Online marketing isn’t new and it isn’t all about photos. As a listing agent, it’s important to regularly reinforce our value by doing everything we can to properly price a home for both offline and online marketing to ensure we get the most buyers’ eyes on the listing.

In some instances, this could mean moving the price to a rounder number in order to double the views.

 

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Clay County Real Estate Market Activity

17 Tuesday Sep 2013

Tags

kansas city re

Clay County Real Estate Market Activity

What’s not showing on the chart? Absorption rate. In the Northland (Clay and Platte Counties) the absorption rate is running at a very level 6.4 months. We’ve seen some great inventory coming on and the sales have slowed down a little. Buyers are taking a bit more time with their decisions, as are sellers. This tug of war style of negotiating will likely continue if the absorption rate stays put.

Clay/Ray Counties
Clay/Ray County sales were down for the month by 2.5% from 2012. Units were at 312 versus 320 last year. Year to date, unit sales are up 5.4%, with 3,011 units this year versus 2,858 last year.
The average sales price for the month was up 10.6% from last year, with an average price of $170,876. Year to date, the average price is up 9.2%. The average price is $159,108, versus $145,680 last year.
New listings were up 42 units to 571 or 7.9% from last year’s 529 units. Inventory is down 3.2% from last year and is running at 1,997 units. Inventory is down 9 units from last month.

Platte County
Platte County sales were down for the month by 11.7% from 2012. Units were at 135 versus 153 last year. Year to date, unit sales are up 6.5%, with 1,312 units this year versus 1,232 last year.
The average sales price for the month was up 14.4% from last year, with an average price of $227,906. Year to date, the average price is up 8.7% from last year. The average price is $205,350 versus $188,894 last year.
New listings in Platte County were up 5 units to 223 or 2.3% from the 218 units last year. Inventory decreased 9.0% from last year and is running at 860 units. Inventory is down 20 units from last month.

Heartland
Adjusted Sales* for the entire Heartland area were at 2,720, up for the month by 7.1%, or 181 units. The average price was up 10.5%, and averaging $191,574. Year to date, sales were up 9.8% or 2,077 units for a total of 23,175 for 2013. The average price for the year is running at $182,336, up 9.5% from 2012’s average of $166,453.

Posted by JoannaGWilliams | Filed under Home Buyer Advice, Home Seller Advice, Kansas City Market Stats, Liberty, MO

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Image

July 2013 Kansas City Real Estate Market Activity

16 Friday Aug 2013

Tags

real estate market

July 2013 Kansas City Real Estate Market Activity

For my office, July was our busiest month so far this year. Overall sales were down, but sales price stayed on the rise and inventory has increased. (We’re really bringing in some great listings for our fall buyers.)

Clay/Ray Counties
Clay/Ray County sales were down for the month by 5.9% from 2012. Units were at 338 versus 359 last year. Year to date, unit sales are up 3.5%, with 2,627 units this year versus 2,538 last year.
The average sales price for the month was up 7.8% from last year, with an average price of $162,987. Year to date, the average price is up 8.8%. The average price is $156,768, versus $144,126 last year.
New listings were up 78 units to 6121 or 14.6% from last year’s 533 units. Inventory is down 4.0% from last year and is running at 2,006 units. Inventory is up 12 units from last month.

Platte County
Platte County sales were down for the month by 3.8% from 2012. Units were at 154 versus 160 last year. Year to date, unit sales are up 7.1%, with 1,156 units this year versus 1,079 last year.
The average sales price for the month was up 20.3% from last year, with an average price of $208,297. Year to date, the average price is up 7.8% from last year. The average price is $201,717 versus $187,105 last year.
New listings in Platte County were up 22 units to 256 or 9.4% from the 234 units last year. Inventory decreased 9.0% from last year and is running at 880 units. Inventory is down 15 units from last month.

Heartland
Sales for the entire Heartland area were at 2,472, down for the month by 6.4%, or 170 units. The average price was up 14.6%, and averaging $197,335. Year to date, sales were up 7.0% or 1,304 units for a total of 19,866 for 2013. The average price for the year is running at $180,730, up 9.4% from 2012’s average of $165,242.

Posted by JoannaGWilliams | Filed under Home Buyer Advice, Home Seller Advice, Kansas City Market Stats, Liberty, MO

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Image

KC Real Estate Market Activity

19 Wednesday Jun 2013

Tags

Better Homes and Gardens Real Estate, Kansas City Homes, kansas city market, real estate market

KC Real Estate Market Activity

We’ve been seeing a few more listings coming on the market, which is a great thing for those buyers that haven’t been able to find ‘the one’. They’ll have a little more to choose from if they leap quickly. I’d also like to point out, from the chart, the steady increase in prices. Not all appraisals are catching up with what a buyer is willing to pay, but it is starting to get better. Overall, the market is strong in the Northland.

Clay/Ray Counties
Clay/Ray County sales were down for the month by 8.9% from 2012. Units were at 357 versus 392 last year. Year to date, unit sales are down 1.8%, with 1,770 units this year versus 1,802 last year. The average sales price for the month was up 4.1% from last year, with an average price of $164,584. Year to date, the average price is up 5.6%. The average price is $150,777, versus $142,828 last year. New listings were up 39 units to 631 or 6.6% from last year’s 592 units. Inventory is down 7.1% from last year and is running at 1,987 units. Inventory is up 45 units from last month.

Platte County
Platte County sales were up for the month by 3.1% from 2012. Units were at 163 versus 158 last year. Year to date, unit sales are up 8.1%, with 788 units this year versus 729 last year. The average sales price for the month was down 4.0% from last year, with an average price of $200,825. Year to date, the average price is up 2.5% from last year. The average price is $191,938 versus $187,353 last year. New listings in Platte County were up 43 units to 284 or 17.8% from the 241 units last year. Inventory decreased 12.0% from last year and is running at 870 units. Inventory is up 31 units from last month.

Heartland
Sales for the entire Heartland area were at 2,688, down for the month by 7.6%, or 221 units. The average price was up 11.8%, and averaging $191,008. Year to date, sales were up 3.9% or 514 units for a total of 13,627 for 2013. The average price for the year is running at $171,784, up 8.3% from 2012’s average of $158,547.

Posted by JoannaGWilliams | Filed under Home Buyer Advice, Home Seller Advice, Kansas City Market Stats, Liberty, MO, Moving

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Your House is Listed…NOW What?

20 Monday May 2013

Posted by JoannaGWilliams in Home Seller Advice

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Holy cow, you’ve finally chosen a real estate agent, signed the contract, have a sign in the yard, Now What?

I said this in my previous post, but it will help you to walk through other listings to see what you’re up against. You’ll see your home in a whole new light once you’ve spent some time in someone else’s.

Granted, your agent has told you to clean, declutter, depersonalize, etc. But, there’s always that extra step that so many of us would miss, but that’s because you’re sellers that haven’t walked through 40 homes.

Now that you feel your home is perfect, keeping it that way while you’re living in it can be quite a task. I highly recommend investing in some Swiffer wet cloths and some Clorox wipes—-both things can come in very handy if you have to run out the door to allow a showing. Sure you can ask for extra notice before showings are scheduled, but you will be turning away a certain portion of your potential buyers. My advice is to allow your home to be shown as much as possible. If it’s an absolute mess one day and a showing is scheduled, call your agent and ask them to call the agent showing it to pre-warn them.

Pets? Ugh, please don’t make the real estate agents showing your property babysit them. If we have to remember the name of your dog, not to let the cat outside, etc—-we can easily become distracted from your home’s best features while we’re running around trying to corral your pet.

Now don’t despair, your home probably won’t be shown every day. Depending on the market, showings could be very slow. This isn’t the fault of your real estate agent. If they’ve done their job, good pics, good listing info, loaded to the web, priced correctly, etc—-your house is being properly marketed. Your agent cannot invent buyers, nor would you want someone to lie to you. Be patient, the right buyer will come along. Selling a home takes time and effort. Your agent wants your home to sell as much as you do.

When your home is shown, your agent will try to get feedback from the other agent’s buyers. We have to rely on the cooperation of the other agent on this matter. Sometimes the buyer’s agent is so busy showing 40 properties, that it could take a couple of days for feedback. If you do receive feedback, PLEASE LISTEN TO IT. If the buyers said something about a huge change they think you need to make, discuss this with your agent. They will give you a good opinion on whether or not it’s necessary.

I know this is a very stressful time. Try to relax, be patient and do everything IN YOUR POWER to help get your home under contract.

Don’t Base REALTOR Selection on Home Price!

20 Monday May 2013

Posted by JoannaGWilliams in Home Seller Advice, Random Thoughts

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I know I was going to write about your home being on the market next, but an agent reminded me of this common misconception today and I had to share.

You interview 3 agents:

Agent 1 says your home is worth $219,000

Agent 2 says your home is worth $220,000

Agent 3 says your home is worth $250,000

Please DO NOT choose the real estate agent that tells you the highest price. Look at the facts…if two out of three agents think your home will sell around $220,000…that’s probably the best idea of market price. They’ve done their homework and they’ve probably showed you their homework…the other one probably did a quick glance at a couple of active properties before running out the door to meet you. It’s perfectly fine to like and choose Agent 3, but please, don’t price your home at the higher price. You have two great price opinions from other agents in your market area—-use the realistic number and get that house SOLD!!

Listing Your Home, Selecting a REALTOR

20 Monday May 2013

Posted by JoannaGWilliams in Home Seller Advice

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When you start telling people that you’re thinking about selling your home, you will naturally get several recommendations on real estate agents to use. But please, heed my advice and interview a couple of agents and do your homework before choosing one. Remember, this person is going to be a part of your life until your home’s sold.

When I say, do your homework, I mean for you to get on the web and use Google to search for the best websites in your area. For instance, if you’re in the Kansas City area, you would do a Google search on Kansas City real estate. Now, check out the websites of the ones that come up first in your search criteria. Is the site easy to use? Do they have an office near your area? Do you already know any of the agents in that office? Do you recognize the name of the company? Etc, etc. Also, now is the time to do a little searching for the people that were recommended to you. Are they on one of these major sites? How’s their personal website page? Do they have homes listed? How are their pictures? The reason all of this is so important is because you really need for your agent and their company to be current with technology. 94% of buyers begin their home search online.

Next, you can either pick up the phone and call the agent or just email them (to test their response time). Tell them you’re interviewing agents. Don’t know who to choose from those companies that you found on the internet? You can always call the main office number and chat with the broker. I’m always happy to talk with a potential customer about their property, their needs, and who I think would be a good fit for them.

Here they come!

A few tips here: Don’t make your choice based on their commission rate. Do ask them about their marketing. Don’t let someone force you into a decision. Let go of your emotional ties to your house. Do look at the comparable sales they bring and make an informed decision. Do go with your gut feelings.

Nobody can tell you exactly what your home will sell for, or how quickly it will sell. They CAN give you stats from their MLS about the current market. When you choose your agent you’ll sign a contract with them for a certain number of months. I highly advise you to ask your agent if they’ll take you through the comparable homes on the market. This can give you a good feel for how your priced and how your home stacks up in comparison to the competition.

Also, a common misconception is that the real estate agent you’ve chosen should be showing your house themselves. This isn’t always the case. Trust me, if they have buyers in your price range…they will bring them through. For the most part, other agents from their office or from other offices will be showing your home. Our MLS system & websites match the buyers with the homes, and the buyers are usually under contract with their own agent.

Next time: Your house is listed, Now What?

Time is of the Essence, Right?

20 Monday May 2013

Posted by JoannaGWilliams in Home Buyer Advice, Home Seller Advice

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Yep, especially when you’re trying to buy or sell a house.

Okay, if you’re a buyer and the lender is asking you for paperwork, you’ll need to do your best to get him/her everything they need as soon as humanly possible. The lending world doesn’t stop because you have to work an extra shift. If you’re someone that has trouble doing things in the middle of the day, please either have a conversation with your boss letting them know that you’re trying to buy a house; or…get a cell phone that you can get online with and email docs. A personal scanner/printer would help as well. This is the largest purchase you’re probably ever going to make….stop….think….and do everything in your power to make it happen. Also, discuss this with your real estate agent ahead of time. Some agents are willing to do a certain amount of ‘ferrying’ paperwork in order to get the deal done, but if you don’t tell us you need help with this, we don’t have any idea you need that service until the last second when the lender tells us the deal can’t close because docs are missing.

Okay, sellers, your turn. I know that when you’re on the selling end, you’re a little more distracted with keeping your house clean, making repairs, finding a place to live, packing, etc. But, help us out here….you WANT to sell your house, right?? So, if it’s impossible for your real estate agent to get a hold of you or get signatures from you, I have a NEWSFLASH! Your contract will fall apart. If you have a trip planned and are planning to leave town, please contact your real estate agent. Find out ahead of time if you’ll have access to a place like a UPS store or hotel office area. Give your agent your out of town contact info and let him/her know when you’ll be returning. Will you be completely inaccessible?? That’s perfectly fine, but tell us so we can let the agent that has anxious buyers know when they can expect an answer. It’s not rocket science, but it is Smart Selling.

Thanks for listening, enough for tonight, this is as REAL as it gets. 🙂

Disclaimer: We sell real estate in Missouri and Kansas. Laws and contracts will vary from state to state.

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JoannaGWilliams

JoannaGWilliams

Joanna jumped into the real estate business in 2000 and never looked back. A glance through her resume would have anyone confused because she’s actually never left the company with which she started. Change in the market and changes in ownership and locations have filled her 13 years in the real estate world. Change is a scary word for some, but Joanna has embraced it with courage and made the decision to not only survive, but to thrive. To break it down Prudential Snook was sold to Prudential Carter-Duffey in 2006, which was sold to Prudential Kansas City in 2009, which then rebranded themselves with a new franchise (Better Homes and Gardens Real Estate) in late 2012. Her personal motto is ‘Consistent Pursuit of Improvement’, which is clear in her dedication to her company, people and local real estate association.

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