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

How do you get your real estate license in Kansas?

So how do you get your real estate license in Kansas?

So you have thought about getting your real estate license. You live in Kansas. Now what? Well to get your real estate license in Kansas it is a simple 4 step process.

  1. Take the 30 hour pre-exam course.  This course prepares you to take the Kansas real estate license test. There are in class and online options, we have recommendations, but you can find out what is best for you. During this class it is advised that you get your fingerprints and send them off to the state for your background check.
  2. Take the Kansas real estate license test. The test is comprised of a majority of general real estate questions and portion of state specific questions as well.
  3. Take a 30 hour real estate practice course. This course is designed to introduce you to the way that real estate business is done and how to negotiate your way through a transaction. Like the first course there are in-class and online options.
  4. Apply for your License with the state!

    Get your Kansas real estate license!

    Get your Kansas real estate license!

Getting your license real estate license in Kansas is actually not that difficult. One of the hardest decisions you will make is where to “hang” your license. In Kansas, in order to practice real estate you have to be supervised by a Broker. All that means is you have to choose a real estate office to work at. The options are literally vast.

Questions to ask when choosing a real estate company to work for:

When choosing a real estate brokerage in Kansas to work for, there are several questions that are pretty important, especially if you are brand new to sales and also brand new to real estate.

  1. What types of new agent real estate training do you offer? Do you have a real estate mentoring or shadowing program?
  2. What tools, technology and systems do you offer, and what are their costs? Are the tools and systems included in my monthly dues how are they paid for?
  3. Do you have any statistics on new agent successes in your office? What are the averages that your office has in regards to helping brand new agents in real estate get commissions quickly?

Getting your real estate license in Kansas is one thing. Choosing a great real estate company in Kansas to work with is another.

If you are thinking of getting your real estate license in Kansas then we should talk! I would love to set up a confidential no obligation meeting to go over your needs.

To your success!!!

-Mat

KC First Time Home Buyers Fears (part 2)

First Time Home Buyer Fears part 2

Yesterday I started to address the results of a survey I posted on my Facebook Fan Page on what are some of your biggest fears when you bought your first home, or what are you concerned with most if you are thinking about buying a home right now. You can read the first post in this series here.

So to quickly recap. What were the top 3 first time home buyers fears in the Kansas City area?

  1. Buying in the right area.
  2. Can I afford it if something happens to me financially?
  3. Can I afford the maintenance?

Can I afford it if something happens to me financially?What now?

This is a really great question, and is still at the front of everyone’s mind in light of the recent economic situation. People who have seemingly rock solid jobs with the city, government, fortune 500 companies are being let go daily. So what happens then?

The first thing is having a great conversation with your lender and making sure you buy what you can afford. A good lender will not just give you a blank check, they will sit down with you, go over your monthly expenses and discuss with you what you could and should take on. The lenders who are still in business are good, there is a reason they have survived the market shift. Listen to them, but more importantly ask them questions. Here are a couple good questions you may consider asking your lender:

  • What will my total PITI (Principle, Interest, Taxes and Insurance) payment going to be?
  • What is my current debt to income ratio?
  • If I needed to sell quickly is this loan assumable?
  • Are there any prepayment penalties if I pay off my loan sooner rather than later or have to sell quickly

I will be going much further into lending, terms and the different products available in a future post.

The next step is making sure you are not paying too much for your home. As a market expert, I see hundreds of homes a month and watch the market statistics religiously. A phrase I use often with my clients is this, “If you are not a little embarrassed by your offer, you are offering too much.” This always gets a smile and you can see body language relax a little. I will always let you know if a property is grossly overpriced or if it is a Smoking HOT deal. Actually, I’m required by LAW to let you know about SMOKING HOT DEALS 🙂 That is, if we have an agency agreement.

Worst case scenario, if you lose your job and main source of income, there are options to mitigate your losses. Not over extending yourself on your mortgage on the front end can help you possibly handle it on one income until you get back in the workforce. Buying it correctly and not paying too much gives you the best opportunity to sell your home quickly and possibly not lose any money.

Stay tuned for part three of this survey Can I afford the maintenance? You can subscribe to this blog by clicking on the RSS feed icon or like our fan page and be updated when a new post hits.

Download our FREE First Time Home buyers eBook that talk about the step by step process that myself and my team will help with.

As always, thanks for reading!

P.S. If you or a friend or coworker is thinking about buying a home or selling a home in the next 30-60 days let us know! We would be thrilled to help your friends and family.