Setting Buyer Expectations in a Seller’s Market in Kansas City

Setting buyer expectations in a seller’s market in Kansas City can save you time, money and frustrations!

Seemingly overnight we have transitioned from a buyer’s market (more than six months of inventory) to a seller’s market (less than 6 months inventory) in Kansas City. Naturally there is some lag between when the news passes this info along. So right now, we have real live buyers in the field, still looking to get that deal of a lifetime, and they are coming up on homes that are going under contract in less than a week, multiple offers and oftentimes now going under contract for more than list price. If you are not ahead of this shift, and setting your buyer’s expectations about the market ahead of time, you could be setting yourself up for frustration and disappointment.

So how do you set buyer expectations in a seller’s market?

In short, data. You should have the ability to pull up market statistics in your local MLS that can show you average list to sales price ratios over a period of time. In the Heartland MLS that report is called the “Market Conditions Addendum” and does a nice job of compiling the data in a very easy format. Let’s be real, all the data in the world doesn’t mean diddly if you can’t interpret it and relay the info to your buyers in a way that they will understand.

So what if your buyers still think that they can go out and steal a property?

So if you have tried to set your buyers expectations by showing them the data that shows them that we are in a seller’s market here in Kansas City or wherever you are, then sometimes losing out on a property is the only remedy. We are the agent of our client. We can provide advice and consult to the best of our knowledge, if your client still wants to lob in an offer then as a fiduciary you have to do it. Just make sure to let them know that they could be losing out on their perfect home, while someone else comes in on top of this offer and takes it.

Ok, great Mat, we hear you, but how can I set my buyer’s expectations in this Seller’s Market?

Simple. Scripts.

List Price to Sales Price
The average list price in (____________) is (__________) but the average sales price is
(__________). That means that sellers are coming down approximately (__________
dollars). The reason I share this information is that I would prefer to turn you down now,
rather than disappoint you later, if you think you could offer $25,000 less than the list price
and actually expect to get it.
So let me ask you a very direct question. If we found you the perfect home and the seller
is only willing to come down about (_________ dollars) how would you feel about that?

If you want even more killer tips on taking advantage of this monstrous shift in the market, reach out to me here!

Advertisements

Are there any particular requirements for me to purchase a Foreclosure or Short Sale in Kansas City?

Are there any particular requirements for me to purchase a Foreclosure or Short Sale in Kansas City?

This is part of a longer blog thread where we are talking about distressed sales in Kansas City, and more particularly in Johnson County Kansas, and what the differences are, and which one is right for you. You can read the first post on this topic here.

As with many things in life, buying a foreclosure deal in Johnson County also comes down to “The Benjamins” – Cash money, financing and/or a combination of both.

Foreclosures

There is a big push for the foreclosures on the market to be purchased by Owner Occupants – people who are going to live there. Many of the government backed foreclosures and or big banks have a special period that only owner occupants can bid on a property. HUD call this the “exclusive” period which varies in length of time but can usually be about 14 days, and Fannie Mae calls this the “First Look Initiative”. During this time, no investors are able to submit an offer, therefore reducing the competition for these deals.

Just because you want to buy a foreclosure, doesn’t mean you can! Lending requirements for different loans have different “condition” requirements. That means, if you can only qualify for an FHA or VA type loan, the house may be in too rough of shape for it to pass the lenders appraisal process. A really good lender can explain all the different loan types available and what you will qualify for, I’m not going to get into that. Important thing to note is to tell your lender that you are considering looking at foreclosures and which loans will work for you.

Short Sales

Depending on the condition of the property the same lending requirements may apply here as well. On of the very biggest requirements in purchasing a short sale is PATIENCE. It can take 77 to 120 days for a Short Sale to close. So be prepared to make an offer, have the seller sign it and then wait for up to 3 months before you even get a response from the bank. It doesn’t mean that people are not doing their jobs, the banks are just that overloaded.

So, are there any particular requirements for me to purchase a Foreclosure or Short Sale in Kansas City? Mainly your financing, whether you are going to live there or not and your time frame are your most important factors.

Where can I find Foreclosures and Short Sales in Kansas City?

Where can I find Foreclosures and Short Sales in Kansas City?

This is one part of a longer blog thread where we are talking about distressed sales in Kansas City, and more particularly in Johnson County Kansas, and what the differences are, and which one is right for you. You can read the first post on this topic here.

The good news is that by reading this post you are already one step closer to finding the “GREAT DEALS” that foreclosures and short sales have to offer. Actually, if you just look up at the first line – that particular hyperlink will take you to a very special list – a Johnson County Foreclosure list. (Don’t tell anyone!)

I mainly wanted to write this post to warn you of the predators out there that are willing to take your money to offer you something that is pretty much free – well, you may need to provide some contact info – but never your credit card number. So if you have ever stumbled upon a “Get the Hottest Secret Foreclosure List” site and they ask you to pay for it – RUNNNNNNNN!!!!!!!!

Foreclosures – If you are really interested in finding them you can ask your Realtor – I happen to know a good one if you need one 🙂 – and have them run a search in their MLS  (the Multiple Listing Service, the database that all realtors use to market homes for sale) for the terms “REO, BANK OWNED, CORPORATE OWNED, AS IS, HUD, FANNIE MAE, and FORECLOSURE”. This should bring up quite a list of foreclosure properties, and they can set you up on an automatic email that updates you with any new properties as they come on the market.

Short Sales – This one is a little harder to search on your own, but your agent (wink wink) can help you out with that. There is a field in our particular MLS here in Kansas City where if a listing is a potential Short Sale, then they have to disclose it to the other agents. We as agents can search those types of listings or even remove those types of listings from your search.

So, Where can you find Foreclosures and Short Sales in Kansas City? Well, silly, you just did!

What’s the Difference between a Short Sale and a Foreclosure?

What’s the Difference between a Short Sale and a Foreclosure?

This is a great question and we get asked this a lot.

This is one part of a longer blog thread where we are talking about distressed sales in Kansas City, and more particularly Johnson County Kansas and what the differences are and which one is right for you. You can read the first post on this topic here.

So back to the main question.

What the heck is the difference between a short sale and a foreclosure?

There are two main differences and they all have to do with where in the foreclosure process a property or owner happens to be.

So what is a foreclosure?

A foreclosure is a listing that is being sold by a bank or other entity that has taken back a home that went into default and was unsuccessfully sold at the foreclosure auction. It is vacant and can be in many different level is disrepair. Sometimes these are called “REO’s”. According to Wikipedia, “The term REO originates from the term Other Real Estate Owned (OREO), which is used on financial statements to classify real estate property owned by financial institution but which are not directly related to its business.” Generally foreclosures are much easier to purchase and can close fairly quickly 10-20 days depending on the lender.

So what the heck is a “Short Sale”?

In short (no pun intended) a short sale is an attempt for a seller to sell a home for less than they owe(selling it “short”) on their mortgage balance in lieu of going into foreclosure.

Why would a bank want to do something like this? Why would any bank agree to sell for less than what is owed? Great question! Foreclosures are expensive and banks are in the business of lending money and not owning homes. If a seller is not able to make payments and the house can only sell for a certain amount of money, then the bank may actually save money by accepting a short sale than going all the way to foreclosure.

We will get into this in a later post, but there is nothing quick about short sales and the can take 77-140 days to close. Yikes!

If you want to find out more you can reach out to us and we will be happy to sit down with you and discuss your options. Also, if you know of someone who is behind on their payments and feels like their only option is foreclosure, then they need to talk to us right away. They have option that can greatly affect their future borrowing ability – they do not have to give up.

Till next time!

Buying Foreclosures and Short Sales in Kansas City and Johnson County – What’s the deal?

Buying Foreclosures and Short Sales in Kansas City and Johnson County KS can be a very  good opportunity for any buyer, and especially in a buyer’s market you can get a two for one value. So what’s the deal? Is there a deal? How do I find them? How do I buy them?

Do you know what you are getting into?

Make sure you know what you are buying before you get too excited about a possible deal.

Great questions! Lets look at a couple key points that I am going to discuss in detail in future blog posts.

  • What is the difference between a Foreclosure and a Short Sale?
  • Where can I find Foreclosures and Short Sales in Kansas City?
  • Are there any particular requirements for me to purchase a Foreclosure or Short Sale?
  • Are Foreclosures or Short Sales right for me?

What is the difference between a Foreclosure and a Short Sale?

There are huge differences and while both can be a great opportunity, It’s important to know what you are getting into. Especially if you have a very strict time deadline. You will find out the “Short Sale” does not mean “Quick Sale”. We will go into that in more detail in our next post.

Where can I find Foreclosures and Short Sales in Kansas City?

You have started at the right place! With Me! DO NOT GO OUT AND PAY FOR A LIST! Just subscribe to this blog or our Facebook Fan Page to get the info hot off the presses.

Are there any particular requirements for me to purchase a Foreclosure or Short Sale?

Yes, depending on if you are going to rent or live, or finance or pay cash.

Are Foreclosures or Short Sales right for me?

We will discuss things like timeline, type of financing, how handy are you? Do you have a little pile of cash to make repairs and make double your money? Are you patient and can wait for the right deal?

Stay Tuned! If you cant wait for the next post, just email me or contract us here.

Lenexa Kansas Golf Course Homes/Communities

If you are looking to live in a quality great community and wonderful neighborhood that is beautiful and highly desirable, then look no further than Lenexa Kansas Golf Course Homes/Communities. Lenexa Kansas offers fantastic homes that sit on large grass lots, complete with a wonderful golf courses that are just steps away from your new home. Living in the wholesome state of Kansas, Lenexa is the community you have been looking for!

Golf

If you are a golfer, then is not a better place to live than in Lenexa. There are 4 executive golf communities in the area and they are all perfect for everyone including; beginner to moderate golfers, and all the way to the advanced and professional golfer. The golf courses are definitely an attraction and fantastic attribute to living in a Lenexa Kansas Golf Course Homes/Community. It is perfect to live next to a golf course if you are interested in golfing, the golfing lifestyle or even an avid golfer yourself. There is an entire golfing community at Lenexa and if you just love to golf, you will love the fact that you will be around like-minded individual’s right in your neighborhood.

Lenexa, Kansas

Raising a family in a Golf Course Community in Lenexa is a wonderful idea due to the amenities that are available in Lenexa, Kansas. The homes/communities include all the features that make life grand. Close by, there will always be something to do for the kids as well as yourself. The idea is that when you buy a home in Lenexa, Kansas, you are not just buying the home, but you are buying the community as well as the neighborhood. It makes perfect financial sense to buy a home that is surrounded by lush foliage, a great golf course and other beautiful homes. All these positive perks will make resale a breeze if you ever want to put your home back on the market, but you won’t want to with the joy you will find living in a Lenexa Kansas Golf Course Homes/Communities.

Olathe Kansas Golf Course Homes

Live in Luxury and Play Golf in Style – Olathe Golf Course Homes

If you are a golf fan and just love to spend afternoon upon afternoon on the course practicing your favorite sport, alone or with company, and you feel like traveling from your home to the course is wasted time that could be better spent perfecting your swing or mastering your putt, then a golf course home is a perfect place for you to live in. One location where you can find such dream place for golf lovers is at the city of Olathe, Kansas, where golf is a way of life. Like many other traditional golf location, Johnson County Golf Course Communities enable you to enjoy your passion and live in style.

Play Golf Where You Live

The View From Your New Home

Olathe Kansas Golf Courses Homes are conveniently placed so you are just minutes from the fairway. Imagine waking up one morning and finding out you have an hour free and you wanted to spend it practicing your golf game. If you live in any other place that would be just an innocent wish, because the most typical scenario is that the golf course is located a considerable distance from your house. That free hour would have been spent just traveling to the course alone. Now imagine having that same free hour, but this time living in one of Olathe Kansas Golf Courses Communities. The picture changes radically, as now you would see the golf course out there, just by looking through your window. Spending that hour doing what you love most is a now perfectly conceivable idea.

Affordable Luxury in Olathe KS

The golf course homes that you can find at Olathe are also built and designed with the idea of delivering luxury and style. If you don’t only have in mind the possibility of playing golf whenever you wanted to, but you also care about living in a top-notch, artistically built house, then you will be able to find what you require in Olathe Kansas Golf Course Homes, where golf and luxury are coupled to form a perfect match.

One added benefit of living in this magical place for a golfer is that you will be surrounded by neighbors that share your same passion. Forming a new group of friends that are like you, think like you and, most important of all, love golf just as much as you do, will be a marvelous experience. You will have the opportunity to play with your new golf buddies on any occasion that you have the time to do so, as you all will be equally close to the spectacular golf course that are within close distance to the houses.

If you love golf and are looking to upgrade your life, take into consideration Olathe Kansas Golf Course Homes as your potential new place of residence. Contact Mat Lewczenko with Invessa Group to set up a consultation to discuss your new Olathe Kansas Golf Course Home.