Urban KC Living Real Estate Blog

Tax Credits for Replacing Your Roof

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Kansas City Region October Housing Statistics

October Housing Statistics

Average Sales Price The average new home price this month ($274,216) is 17% lower than one year ago ($333,112). The largest price increase (7%) occurred in Jackson County. The average existing home price this month ($148,009) is up 8% from one year ago ($137,132). All counties except Johnson experienced an increase in average sales price for existing homes from the same month last year. The average price for combined new and existing homes in the region this month was $158,074, which is down 1% from the average sales price of $159,711 for combined sales prices in October 2008. Cass, Jackson, Leavenworth and Miami counties all experienced a slight increase in the average sales price for new & existing combined from the same month last year.

Home Sales New home sales this month of 212 represents a 15% decrease from one year ago when there were 249 new home sales in October. New home sales increased this month 8% from the past month when there were 197 new home sales. Existing home sales in October increased 31% from one year ago when there were 1,785 sales. They were up 7% from last month’s sales of 2,186 compared to this month’s sales of 2,336. Combined home sales of existing and new homes were 2,548 for October, which is up 7% from the total of 2,383 sales from a month ago. This month’s combined total sales were also up 25% from one year ago when there were 2,034 sales.

Inventory New Home inventory continues its steady decrease again this month with 2,161 homes in inventory compared to 2,195 new homes on the market last month. The new home inventory for the region is 39% lower than it was a year ago at this time when there were 3,516 new homes on the market. Resale inventory this month of 13,139 is 3% lower compared to 13,556 one month ago. The existing resale inventory this month is 9% lower than it was a year ago when the resale inventory was 14,456. New & existing inventory combined was 15,300 this month compared to 15,751 last month representing a 3% change in the past month. One year ago the inventory was 17,974 which represents a 15% decrease in total inventory over the past year.

Kansas City Region Supply of Homes on the Market The Supply calculation is determined by taking the “Inventory” and dividing it by the “12 month average of the number of Sales.” Generally speaking, a 5-6 month supply of homes on the market equates to a “balanced” market. When the supply exceeds 6 months, the market begins to favor buyers, and when the supply is less than 5 months the market tends to favor sellers. Supply for combined new and existing homes dropped to a 7.4 month’s supply in October from a 7.7 month’s supply in September. The existing home supply also dropped this month to 7 months from a 7.4 month’s supply. The new homes supply in October 2009 was 10.9 months compared to 10.5 months in September. A slight buyer’s edge is present in the existing home markets and a considerable buyer’s edge is present in the new home market.

Source: Kansas City Regional Association of REALTORS® and Heartland Multiple Listing Service ©Copyright 2009. KCRAR is the “Voice for Real Estate in the Kansas City Area”

Tax Credit Extension

The Tax Credit

 

Provided by NAHB - www.federalhousingtaxcredit.com 

$8,000 First-time Home Buyer Tax Credit at a Glance

• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

 

The above article was found on the NAHB website at http://www.federalhousingtaxcredit.com/

 

More information and a FAQ pages can be found by visiting their website.

Thank you to the National Association of Home Builders for compiling this great summary!

Make an offer by October 9th to take advantage of tax credit!!!

Most everyone is probably aware of the 2009 First Time Home Buyer Tax Credit by now. What most people may not realize is that you need to make an offer by October 9th to be able to close by the deadline. This means you have a couple of weeks only!!! Read more about the tax credit by clicking here or call me at 816.377.6389 or e-mail at AJ@UrbanKCLiving.com. Hurry!

According to Reuters...Mortgage Applications Are Increasing Rapidly

Read the full article from Reuters Download Reuters says U.S. Mortgage Applications Rise As Rates Plunge.

Looking for a great Kansas City Photographer?

When I receive a fantastic service from a local KC business owner, I gladly spread the word to others. After all, my business is built on referrals and I always appreciate clients sending people my way if I did a good job for them!

If you haven't heard of Kristopher Saim Photography, you must check out his website and some of his work.This is a local KC business that is here to stay. The founder, Kris Saim, makes working hard for his clients a breeze since he has a true passion for photography.

More so now than ever, photography in Real Estate is extremely important. Most buyer's today at least start their home search online if not use the internet throughout most of their buying process. If there are not quality photo's posted in MLS, on the broker's websites and everywhere advertisement is placed, a buyer probably isn't going to give the property a chance to view it in person. This is true for curb appeal as well seller's! Make it inviting - don't let buyer's drive right past your home!

Kris not only creates some of the highest quality of photos, he does it in a recognizable way. So many times when I work with buyer's they tell me "this home does not look like the pictures online". Kris keeps the pictures true to life but also captures details in the home that buyer's might otherwise have missed. Kris has taken pictures of my clients home in 2009 and some have sold in less than a week.The pictures help get buyer's into the home.

Kris also is very experienced in wedding photos, engagement photos, sporting events, family events, Urban Scenes and many other types of photos in addition to real estate.

You can view some of his work on his website at www.KristopherSaimPhotography.com.

New Listing in the Waldo Area

Click the following link!

724 E 71st Terrace, Kansas City, MO

Thinking about buying a home in 2009? What to prepare in advance for your lender to guarantee a smooth close.

Some lender rules are changing this week. What do you need to prepare as a buyer to keep things moving smoothly to close? I asked a trusted lender to compile some information on what to expect and what to prepare for in advance to keep things moving smoothly during the buying process. I want to give him a big thanks in advance for preparing this great article!

Terry Hayter with Solutions Bank wrote the following article of "good to know" information for buyers.

When a borrower makes an application, the lender must present them with initial disclosures within three business days. The disclosure package includes the Good Faith Estimate, Truth in Lending disclosure, and other legal forms as required by law.

 

If the disclosures are mailed, the lender must allow three business days for receipt of the disclosures by the borrower. During this period the only fee that may be collected is a reasonable charge for a credit report. If the application was made in person and disclosures delivered at that time, other fees such as for appraisal may be collected.  If disclosures were mailed, only the credit report fee may be collected until the third business day has passed.  

 

The borrower must be provided a copy of the appraisal a minimum of three days prior to loan closing. If not, closing must be delayed until the borrower gets a copy and the three-day window for review has passed. (The borrower may also opt out of this requirement)

 

Any changes in fees or rate that result in an APR change of 0.125% require re-disclosure. The borrower must then receive new disclosures and have at least three days to review before closing. Once again, this is to insure the borrower has time to review and is comfortable with the loan terms and costs.

 

Also, keep in mind that if lenders change in the middle of the process, the new lender will have to start the disclosure process over again.  Changing lenders in the middle of a transaction may result in lengthy and costly extensions.

 

Many borrowers today are often too busy to come to the office to make the application.  These borrowers do it conveniently by phone or online. In these cases, the disclosures are mailed to them. As a result, the timeframes and wait period will be slightly longer. 

 

So, let’s say you want to close as quickly as possible.  What can you do to be proactive and make sure the processing time moves as quickly as possible?

 

• Make the application with your lender in person if possible.
• Get a fully executed, clearly legible copy of the purchase agreement as soon as it's available from your agent to give to your lender.
• Be ready to pay for the appraisal when asked.
• Prepare and be ready to submit all requested documentation (pay stubs, W2's, bank statements, etc.) within 3 days of application.
• Carefully review the disclosure package and notify your lender of any corrections immediately.
• Lock your loan at the time of application or early in the transaction.
• Choose a credible, reputable, ethical lender you can trust to honor the rates and fees they disclose. Surprises at the closing table are not good for anyone.

For additional information, please contact Terry Hayter. You can also contact Terry for your purchase and refinance loan needs!

Terry Hayter

Mortgage Officer

Solutions Bank

Mission Farms

10685 Mission Farms

Leawood, KS 66206

P 913-239-1251    M 816-591-4738    F 913-341-2525

THayter@SolutionsBank.com

 

New Listing in Prairie Village

Click the following link!

4901 W 69th Street, Prairie Village, KS

 

 

Low Ball Appraisals

In speaking to many local KC REALTORS, and from my own personal experience, some lender appraisals are currently coming back as "low ball appraisals" for many qualified buyers.

Given the current market and economy, this does not come as a surprise. Lenders want to make sure before offering financing to a buyer for a particular home that the current market value supports the purchase price. Lenders determine current market value of a property from an appraisal. That is fair enough - no questions asked.

What seems a little unfair is that two different appraisers can determine the current market value of a home to be different - VERY different.

When a lender hires multiple appraiser's, one appraisal can come back with one market value and another appraisal can come back with a discrepancy of $10's of thousands of dollars different. How is that possible?

To read more about this subject, CNNMoney.com wrote an article. To read the full article, please visit this Link.

Have you as a buyer or seller ran into this scenario? What was the outcome? It is vital in the current economy to use a lender that offers the best customer service possible, the best terms for you and a lender that can close when promised.