Urban KC Living Real Estate Blog

Do you know what your Kansas City neighborhood "WalkScore" is?

 Kansas City has always been a city built around the automobile. However, more and more Kansas City neighborhoods are obtaining walkable status. Do you know what your current neighborhood rating is? It may be a good time to consider moving to one of the top 4 "Walker Paradise" locations. Read more on WalkScore here.

2009 First Time Home Buyer Tax Credit, Explained

Many buyers have come to me with questions on the details of the 2009 first time home buyer tax credit. The National Association of Realtors has kindly put together a user friendly powerpoint presentation that explains the new credit in detail.

For the FREE presentation, click here. I look forward to helping you wish any questions you may have!!

*It is recommended to consult your accountant for specific details and your own person situation*

How To Get Your $8K First Time Home Buyer Tax Credit At Close!!!

The $8,000 first time home buyer tax credit was passed this past week. This new credit is of great value. Why? You don't have to pay it back!!!

You may ask, how is this going to help me? I need the money at close!!

The Missouri Housing Development Commission has rolled out a Tax Credit Advance Loan Program. I will be following up on this post with additional information in the next few days. In the meantime, check out their brochure and website!!

Download TCAL_Brochure

Website

Cosentino's Brings It - Urban Style

 

The extremely welcomed Downtown KC grocery store has its doors open in the heart of the Urban Core!

For those Urbanites that take their lunch break downtown or who have made Downtown Kansas City their home, Cosentino's didn't come any too soon!!

You can park in the garage parking area, take a short elevator trip down a floor and the doors open in front of you to reveal the ultimate grocery shopping experience. Don't forget to get your parking pass validated at check out!!

The two story floor plan offers an area to pick up gourmet prepared food, generous isle space with all of your favorites and must haves, a section for those events you host at home (yes, alcohol - complete with a wine tasting section), and an upstairs that offers lounge space for a quick meeting or a place to study.

My first trip to the Downtown grocery store had me grinning from ear to ear and I will be venturing back often.

See you there!!!

MHDC announces a new program to maximize the benefits of the First Time Home Buyer Tax Credit

The Missouri Housing Development Commission has released a new program that will maximize the First Time Home Buyer Tax Credit if you hurry!

As most of you have heard, the First Time Home Buyer Tax Credit is currently scheduled to run through June 30, 2009. You still have time! (Link)

In addition, first time home buyers need to know this new news release. MHDC is working to get you the credit at close - not when filing your taxes! Here is how it will work...

*The following information is taken from www.mhdc.com. Please visit www.mhdc.com for additional information.*

First-time homebuyers receive a tax credit worth 10% of their home purchase, up to $7,500. The credit is claimed on the homebuyer’s federal tax returns. The credit is refundable, which means that the homebuyer receives a refund for the amount of the credit minus any federal tax liability. The credit is essentially an interest-free loan from the federal government and must be repaid through an increase in federal income taxes over a period of 15 years.

How the MHDC Tax Credit Advance Loan Program Works:
 

MHDC makes a second mortgage to the homebuyer at the time of closing worth up to 6% of the home purchase price or a maximum of $6,750, which is used to cover downpayment and closing costs. The tax credit advance loan is paired with MHDC financing for the first mortgage in the form of a safe 30 year, fixed rate mortgage. The homebuyer then files for the federal tax credit and uses the credit refund to pay off the MHDC tax credit advance loan. If the tax credit advance loan is paid off by the designated deadline (no later than June, 2010), the homeowner pays no interest other than a modest servicing fee. If the tax credit advance loan is not paid in full by the deadline, principal and interest payments to repay the loan over 10 years begin automatically.

MHDC loan programs are available for households with incomes up to $85,500.

The federal tax credit and the MHDC tax credit advance loan program are both currently set to expire June 30, 2009.

 

 

P&L District to host Scion Open

If you have been to the Power and Light District, you know that the "Live" Block is unique in itself. Wait until you hear this one! On Saturday February 7th, the Live Block will be transformed into the most exciting snowboard tournament to hit the Midwest!!

The P&L District will be the final stop of the 2009 Scion Open Snowboarding Event.

There will be a ramp that is approximately one and a half stories high, fifty feet wide, and one hundred feet long in the Urban Core of Downtown KC. And you thought that the new grocery store opening was something to talk about!

For additional information please visit the following links:

Midwest Scion Events

and

Power and Light District Events

Remodeling Do's and Don'ts

So you may be thinking "has my home lost value since I purchased it?" Should I invest anything into my home if I am planning on selling it within a year? According to the December issue or REALTOR magazine, exterior projects are the way to go.

Spend that hard earned dollar on the outside of the home to see the greatest return. When buyers pull up to your home to look at it when it's listed, they will make a decision in a matter of seconds as to if they wish to live there. Also, if you are not looking to sell your home for a while, wouldn't you like to make the exterior more inviting when you get home from a long days work? I believe if you are going to spend any money on your home before you sell it, you should also get to enjoy it for a while!!

Decks, siding and window's made the top of the list for exterior remodeling projects that pay off according to REALTOR.

Oh and don't forget, if you are looking to do interior remodeling, kitchens are #1 with bathrooms coming in at #2.

For more information on returns in your investments, contact me at aj@urbanKCliving.com.

Kansas City - Are you looking for a new home or do you have a vision?

As a full time REALTOR in the greater Kansas City area, I have seen a change in what a large percent of my clients are looking for in their new home. New home sales were high in numbers in years past. Now, some new home subdivisions are seeing an impact as trends change. What are Kansas City buyer's looking for?

When I first got into real estate, the majority of my clients were looking for a common search criteria to include: granite, stainless steel, and amenities galore. Now I am seeing a new trend. My clients seem to be looking for the 'best deal' and are buying homes that need little to ALOT of work. Buyers of today have a more 'do it themselves' attitude. They are not afraid of a little hard work to make a home what they truly want in the end and really can take pride in ownership.

Where does this place some of the KC new home subdivisions? Some promised pools, walking trails, etc. Now, with new home sales down, some developers have pulled out temporarily or permanently (for some, the bank gave them little choice). This is leaving a few subdivisions looking unfinished. For some buyers, they wanted great finishes and what I like to call 'turn key' homes. Now they are living next to an empty lot with weeds growing up in them (the truth hurts).

The moving trend in buyers to buy more 'as is' and wanting to get a GREAT deal is becoming more common, especially with people moving to urban areas. Even when dealing with clients buying condos and lofts, if given the option, the majority are buying 'as is' which may include apartment grade updates.

I want to express many new home subdivisions are doing very well and are keeping promises to their buyers. There are only a select few that may have let their buyers down - not on purpose. Also noted, I bought a fully updated condo with all of the 'fixings' because I am not handy and my condominium complex has done very well.

But if you are ready for the adventure, I think this new trend of 'fixing it up yourself' is fantastic. As the KC Urban Core is my passion, I love to see homes and even entire areas being brought back to life. This is not without a lot of sweat and tears - good job buyers!!!

I look forward to your comments!

How Did Missouri and Kansas Rank Nation Wide for Closing Costs?

MSN.com and Bankrate.com just released an article on "State-by-state closing costs". First time home buyers are sometimes overwhelmed when hit with closing costs. You will be happy to know that Missouri was ranked 54 and Kansas was ranked 55 out of 56 states/large cities in 2008 for having low closing costs. Average closing costs in 2008 for Missouri were at $2,758 and Kansas were at $2,669. That is great news if you are buying a KC home!!!

You can read the full article at:

http://realestate.msn.com/Buying/Article_bankrate.aspx?cp-documentid=10659825

www.bankrate.com

First time homebuyer? Did you know about the $7,500 tax credit?

If you are a first time home buyer and wish to take advantage of the $7,500 tax "credit" (I say credit lightly) you had better act fast. The tax credit was passed with the Housing and Economic Recovery Act. The tax credit runs from July 1,2008 through July 1, 2009.

What are the qualifications?

• You need to be a first time home buyer
• You need to purchase/close before July 1, 2009
• Tax credit of 10% of your homes purchase price with a maximum amount of $7,500
• Individuals have to make less than $75,000 per year
• Couples have to make less than $150,000 per year

Things you may not know but NEED to know...

• You have to pay it back! Basically you are getting a interest free loan for 15 years. Your first payment is due within two years.
• If you sell your home before the 15 years, you owe any remaining amount of the loan back if you make a profit.

So, if you wish to take advantage of this tax credit you need to act quickly. Some would argue highly, including myself, to put this money away for a rainy day - knowing you will have to slowly pay it back. Why not invest it safely in the meantime and earn money on your interest free loan?

According to REBAC, "About 2.5 million first-time buyers are expected to take advantage of the $7,500 tax credit between now and the middle of next year". Are you going to be one of them?

I look forward to your questions and comments...

The Country Club Plaza 77th Annual Art Fair

I hope you were as lucky as I was to get to attend the 77th Annual Country Club Plaza Art Fair this past weekend. If you attended, you know you were among hundreds of thousands of people who enjoyed a great weekend full of unique and creative art, good music, great food, along with of course, cool refreshing drinks.

The Country Club Plaza is just one reason to live in the Urban KC Core. As I ventured out of my plaza condo on Saturday, I was able to walk from my home to the Plaza while others had to drive around looking for a place to park. I really felt lucky being able to stroll down the street and not having to deal with trying to park which helped make my day less stressful. Plus, my commute home was very nice - I saved gas money!

It was amazing to me how far some people came just for this event. Talking to some artists - many came from out of state while others were displaying their local work. The artists showed some of the best work they had to display and all were impressive. There were many talented people in one location and you could really see the creativity and hard work that went into each piece. I was particularly awed by the local designs of Kathleen Patton. Check her out online at:

http://www.pattonart.com

 

Two Country Club Plaza Residents talk about the great weather and share a drink.

Let me know if you are ready to make the move to the Urban Kansas City Core!

KC Dream Home Program is back!

According to the Kansas City Business Journal, September 15, 2008, the Kansas City Dream Home Program is accepting applications again!! This is great news for many Kansas City first time home buyers. This program offers a maximum of $20,000 down payment assistance for those that quailfy. This grant will work as follows:

$20,000 forgivable loan if the owner occupies the home for 10 years. You don't have to pay this amount back!

However, if you don't live there 10 years, this is how it breaks down:

Own and occupy for 1 year - you owe $18,000 back

Own and occupy for 2 year's - you owe $16,000 back

Own and occupy for 3 year's - you owe $14,000 back

Own and occupy for 4 year's - you owe $12,000 back

Own and occupy for 5 year's - you owe $10,000 back

Own and occupy for 6 year's - you owe $8,000 back

Own and occupy for 7 year's - you owe $6,000 back

Own and occupy for 8 year's - you ower $4,000 back

Own and occupy for 9 year's - you owe $2,000 back

Own and occupy for 10 year's - you owe nothing back

You can read the Kansas City Business Journal article at http://www.bizjournals.com/kansascity/stories/2008/09/15/daily8.html?f=et65&ana=e_du

To see if you qualifying for this or other KC area programs, please visit:

http://www.kchomeprograms.com/

4th Annual Falldo Waldo Crawldo

Fall is approaching quickly and so is the 4th annual Falldo Crawldo. You can check out the details at:

http://www.waldocrawldo.com/

Don't miss this event. Take advantage of Urban Kansas City!!!

Paying PMI? You need to read this!!!

What is PMI? PMI stands for Private Mortgage Insurance. If you do not have 20% to put down as a downpayment on your new home, you will become familiar with this term fairly quickly! PMI is insurance that a lender requires you to pay each month if you do not have 20% down. This helps cover your lender in the event you default on your loan.  And yes, it's a monthly expense to you.

Ways to avoid paying PMI? Put 20% down! Or...let's get realistic...f you are like a lot of people, especially first time home buyers, it can be challenging to find 20% just sitting in your bank account waiting to be tied up in your new home.

Fact - once you have your mortgage paid down to owing 80% or less, the PMI drops off and you do not have to pay it anymore. How can you get to this stage quicker?

Since we are in a buyer's market, this may be helpful to you...

I will use the following story just for this example...

Let's say you are wanting to buy a home in Brookside. You work with a buyer's agent that is an Accredited Buyer's Agent (ABR) - we are - and we work hard on your behalf to negotiate the lowest purchase price possible. We do this for all of our buyer clients. With the amount of homes available, buyer's can be more picky over which home they purchase. This is making some home seller's anxious and some will sell their home lower than market (appraised) value.

Let's say after six months of living in your home, you decide to hire an appraiser to get your home appraised. This will cost you a couple hundred dollars. Let's say you purchased it for $200,000, due to the seller being motivated, but it appraises for $250,000. Boom, you now have black and white documents to take to you lender and show that your homes mortgage is $50,000 under appraised value. You now have a balance of under 80% owed on your home and the PMI drops off saving you around $100 a month on your mortgage payment.

Please feel free to e-mail us you story or questions. We would love to hear from you!

Buyer's Market...What does this mean for you, the buyer?

A buyer's market can mean many things to different people. One things is for certain - inventory is high causing deep negotiations.

When I meet with a buyer for the initial consultiation, I like to give buyers a copy of the ABR Home Buyer ToolKit to utilize. Feel free to get a sneak peak from this example.

Buyer's have so many homes to choose from, it just makes things harder! It's like shopping for a new sofa at a very large store. There is one at the Legend's that offers this same problem (not to mention any names). Too many good choices!

My recommendations are to:

• First, pick an area you wish to live. I would suggest an area you like to spend your evenings or time away from work. Some people move closer to work, but what if you change jobs?
• Second, pick a style of home you like. This can include but not limited to Colonial, Contemporary, French, Spanish, Traditional, Tudor, etc. Some home styles are limited to the location the home is in Kansas City.
• Third, create your property "wish list". This is a list where you decide what's most important to you. For example:

                  Number of bedrooms?

                  Number of bathrooms?

                  Garage? How many spaces?

                  Fireplace?

                  Fenced Yard?

                  Are you willing to do updates?

                  Hardwoods?

                  Size of Yard?

                  Age of House?

                  Number of Floors?

                  Patio/Porch?

These are just a few things to get you started. You can create your own. Writing these down will really help you to know what you can live without

• Fourth, is to create your budget. When doing this, remember to include taxes and any HOA dues you may have. This is also the step to reach out to lenders to obtain your preapproval letter. Be sure to interview lenders until you find the lender and mortgage that fits your particular needs.
• Fifth, is to contact Urban KC Living to get your search started! The more information you bring, the better your search will be!

HGTV and You

I hear from more and more clients that HGTV is one of their favorite TV channels and often get questioned myself if HGTV is on my "favorites" list. Personally, being a full time REALTOR and working 50+ hours a week in the Kansas City real estate market, I find myself not wanting to watch this channel when I get home. I have to admit though that I can tell you the day and time most any of the shows are scheduled to run.

What draws you to this channel? Why are so many Kansas City people consumed with watching this station daily?

This subject has sparked my interest. I want to find out how many homeowners, home sellers and home buyers in Kansas City find interest in this channel and are possibly addicted to watching it. I know I have clients, friends and family that are probably in this category. HGTV offers great insite on buying homes, selling homes, remodeling homes, and even how to decorate your home on a budget.

Please send us your comments if you live in the Kansas City area as to why you love this channel and why you can't stop watching it!

Lowe's is Giving Back

Be sure to visit Lowe's current website. This site is currently offering advice for home buyers and home sellers. And of course, when you are buying or selling, there are usually improvements that need to be done to your home. So, be sure to utilize the 10% off coupon good for purchases up to $5,000! This will really come in handy when preparing your house to sell or when you buy your new home and need to make some improvements!

The inside scoop on homes for sale in Brookside, MO

Interested in buying or selling your home in Brookside, MO? Here are some interesting statistics that you need to know.

The always sought after 64113 zip code has done fairly well in 2008. With there being 294 homes listed since January in Brookside, 156 homes have sold. 101 homes were taken off the market without being sold. The average number of days on the market is 38. The homes sold with the lowest average number of days on the market in March and May of 2008 being at 33 days.

Has your Brookside home been on the market for several months with not many bites? Maybe it's time to bring in a professional stager or decide to either take it off the market for a few months or lower that price!

It's vital to list your home at a price point that will sell it quickly. If buyers see that your home has been on the market for several months, they will either question "why" or offer a "low ball" figure thinking you may be desperate. Have your agent run comparables for homes that are also on the market the same time yours is to see what your competition is. Also, have your agent run comparables for homes that have sold in your area in past months to see how much the seller's have had to come down to get that house sold! The first 30 days your home is on the market is the most crucial.

For more information or for a free market analysis, contact aj@urbanKCliving.com.

Trouble finding a new construction home in the Kansas City Urban Core?

Many buyers are looking for a new construction home in the Kansas City Urban Core but cannot seem to find what they are looking for. New construction homes are popping up in the core, but you need to know where to look! This blog is dedicated to help with some options.

For the first time home buyer, you have two options close to KU Med. Two of three "Minnie Street" homes are currently available in the Rosedale Subdivision. With the remaining homes having a price drop of $15-$22K, this makes these homes a great deal. Enjoy the modern homes featuring bamboo floors and a wall of trees in the backyard for $185K or $192K.

Looking for a chance to build your home in historic Hyde Park? Two options came on the market just a few months ago with a chance to build your 4 bedroom/3 bathroom home for $195K designed by Eco Studio One or you can purchase the lot and build yourself. Either option will allow you to be included in the building/design process!

Do you want Downtown Kansas City views but want out of the hussle and bussle of downtown? Look to the Mellier and Duncan Subdivision. One of three homes remain on Genessee Street. This contemporary house can be built to your finishes. The back decks will offer incredible views of Downtown Kansas City. A 2 story plan will run $299K or choose a 3 story plan for around $347K. Only one left!

Coleman Highlands subdivision has a home back on the market. This home is approximately 2 years old and is a resale. Listed at $272K, this 3 bedroom/2 bathroom home has a loft feel with concrete floors! Need to see it to believe it!

Want to be as close to downtown as possible? Be prepared to pay for it! The Cresta Bella homes will offer new construction homes in a gated community with some terrific features including private elevators, security systems, and outdoor kitchens. The 9 homes are priced at $1.5M but offer 4 bedrooms/4 full and 2 half bathrooms located at Jefferson and 17th street.

If you want more info on these homes including picutres or renderings or wish to have a private showing, please contact aj@urbanKCliving.com.

Why home inspections and warranties are a must!!!

A lot of buyers - especially first time home buyers - find themselves handing over more money than they ever expected when buying their home. You usually have a down payment, closing costs (which include a variety of fees), moving costs, the cost in switching your utilities, and of course, the option to have a home inspection.

Home inspections are at the buyers expense - as it should be so you can hire who you want and have them work for you. But when hit with so many other expenses at once the idea of shelling out more money at this time can be hard when it's an option. In my eyes and from past experience with clients, having a home inspection is a must - NOT AN OPTION. You are buying this home with the responsibilities that go with it and any faults after close belong to you. Know what you are buying and having the best inspector in town is worth the money. Do not go cheap here - get the best (you can find Kansas City Inspector's listed on our website at www.urbanKCliving.com).

In the current Kansas City real estate market, what I also suggest to negotiate into the sales contract is that the buyers ask the seller's to purchase a one year home warranty. Home warranties are usually under $500 and will give buyers the ease of knowing that some items will be covered under this warranty after close. Realtor's usually get a kickback on selling a home warranty, the amount must be disclosed to you, if any.

Do you have good or bad experiences in purchasing your home? We would like to hear from you! Add a post to this blog. Happy Reading.

Should I update my home before I sell in the current Kansas City Real Estate market?

Many sellers ask me what they can do to get more bang for their buck when selling their home in a buyers market.

The first thing sellers approach me with is usually something like this:

"We are wanting to sell our house but do not know how much money we should invest in our home and what we should upgrade to get our house sold for more $$$".

In the current Kansas City Real Estate market, I would make sure the curb appeal is outstanding but forget upgrading the interior, too much. Adding some flowers to the front yard, making sure the light bulb on the front porch is working, and the yard is trimmed to perfection are just a few ways to spruce up your curb appeal. All of these items are inexpensive and will give you a return on your money.

I would definitely steer clear of making any major renovations to the interior of your home in the current market right before you sell.

What to do?

• Stage it - higher a professional stager. Let the experts do what they know best!
• Make sure your home is extremely clean - don't forget to wash the inside and outside of those windows
• Make it smell great - go for clean and warm smells, not "take my breath away" strong
• Paint your walls and ceilings
• Open up the curtains and show off the outside

What not to do?

• Major renovations to the kitchen, bathroom, etc.

Why not?

What you may like and what buyers like may be two totally different things. What you have done is invest money and in return have to raise the asking price.

However, the buyer may still have to change what you just renovated to fit their needs and cost them more money! If a home comes on the market that is priced lower than yours and in both homes the buyer will have to upgrade the kitchen to their taste and needs (for example), the buyer will probably be putting an offer on your neighbors property, not yours.

Buyers are not scared anymore in pooring some sweat equity into their new home. The days of "turn-key" buyers are leaving and buyers looking for a great deal are gaining in numbers.

Let the buyers do the work after they move in. Just focus on making your house the best it can be and keep your list price realistic!

Your lender can make all the difference

Let's discuss lenders for a minute...

One of the first items on your home buying check list is to contact a lender and get a preapproval letter. This puts the power in your drivers seat (no one likes manual anymore) and lets you and your REALTOR ride smoothly and comfortably when shopping for your perfect home.

When interviewing lenders, yes interviewing, there are several questions you need to ask them. After all, they are going to request a lot of questions about you! A helpful list can be found on our website at www.urbanKCliving.com.

Once you have completed the lender interview process, remember one thing, you get what you pay for. Just because one lender has a lower interest rate or lower closing costs does not mean better service. In any type of real estate market, you want a lender that offers outstanding customer service. This includes returning your phone calls and answering your questions in a timely manner so you have a grasp on what to expect. After all, the past few months have been brutal! Finally you found the perfect REALTOR, found the perfect home, had a rough inspection but you made it through fine and now your closing day is fast approaching. Don't let your closing day get pushed farther out due to the lack of good old customer service.

How did the local Kansas City Real Estate Market hold out through the first half of 2008?

What are the two questions I get asked most, especially from relocation and out of town buyers?

How is the local real estate market? When is it going to be a seller's market?

I have heard many predictions, but no one can predict the future. I would steer clear of anyone that said they knew for certain!

On average, the sale price of homes in Jackson County the first half of 2008 was around 95% of list price.

How does this make Kansas City fare with the rest of the nation? I would say we are doing okay, but it's still a buyer's market.

With that being said, now is a great time to buy in the Kansas City area. Homes are selling at a great discount, but seller's are still making out okay compared to the rest of the nation. I would not listen to the national media in the current market. If you find a home that you love, you still need to move quickly!