New construction purchases in Liberty have a different set of playing rules than that of resale. Here is what buyers can expect will happen and how to better prepare themselves for any potential pitfalls when buying a new construction home in Liberty, Missouri.
1. Use an agent. I know that sounds self-serving but here is the reality, those friendly people at the sales center are there to do one thing, and one thing only, make the developer money. They are there to protect his interests, not yours. Not to mention, most builder contracts are structured for the builder, not mutually agreeable parties. I have seen some that make War and Peace look like an easy read!
2. If you are wise enough to protect your interests and use an agent, don't go to any open houses or sales centers without them. As tempting as that might be, you jeopardize their commission and therefore will leave yourself without representation. The developers are sneaky that way, they know curiosity gets the cat and claiming you as "theirs" is just what they want. The more ignorant you are to the process and your rights, the easier it is for them.
3. Prepare for homelessness. What I mean by that is, depending on how far out the project is, even if the builder says with a straight face that they can deliver within 60 days of signing the contract, don't bet the farm on it. In fact, I tell all my clients to prepare for the worst case scenario. Have a plan B for your things and for where you can live should your new home not be finished on time.
4. Once the contract is accepted, pick out your finishes as soon as possible, this will help expedite delivery. Make sure you note that any items that are above standards, you will be required to pay for at the time of ordering, so choose wisely.
5. Other costs associated with a new construction purchase is the monthly association dues. One of the reasons they are estimated at seemingly low amounts is that the developer has not set the true yearly costs involved with maintaining the community and it's amenities. Typically the developer will bear most of this cost up front as a part of the cost for developing the land. After roughly 75% of the lots are sold, the homes association will then bare the cost and may need to substancially increase the yearly, or monthly, homes association fees.
6. A way to save money is on upgrades. Have the builder do what would be absolutely a nightmare to do yourself such as hardwood floors, but opt to do other upgrades afterward, such as window treatments, electric garage door openers, custom landscaping and installing a sprinkler system. You will be surprised how much you can save when you cut out the middle man.
7. Timing is everything. One of the best ways to save big bucks is when you buy. First phase is the cheapest of pricing, but some buyers can have a difficult time visualizing their new home when its just drawings on paper. Second phase buyers are the ones that experience the biggest hits, pricing goes up, home builders are less negotiable, and any upgrades will cost you. Third phase buyers or close-out specials are where buyers can get some of the best deals. The properties are already built, so choosing finishes is usually out of the question, but what would be an upgrade package can often become standards, such as stainless steel appliances and granite countertops. Last ones in can spend thousands less than the the earlier counterparts.
All in all, buying new is loads of fun, but can also be a painful learning experience. Don't be lured by the flashy signs and grand opening parties, protect your interests from the beginning is the best bet to buying quality new construction at the best price.
For more information on New Construction in the Liberty Missouri area or to discuss your specific needs, call Ron Henderson at (816) 651-9001 or visit his website at http://www.clayandplatte.com/ Ron Henderson has a CSP designation (Certified New Home Sales Professional) from the National Association of Home Builders. http://www.nahb.org/
Saturday, June 30, 2007
When Will My Home Sell?
There are four things that determine whether or not your home in Liberty, MO will sell quickly for the right price. Some of these may not be what you want to hear, but all of them are what you need to know.
1. LOCATION: Nothing affects your home’s desirability like location: proximity to services, neighborhood attractiveness, and any special settings like lake front, fairway frontage, views or a private setting. Recent surveys have shown that over 85% of buyers will pass up a “nicer home” for one that is in a preferred location. The location of your home is fixed. You can’t change it. If it’s a great location it will counter balance other not so strong features. If the location is less than optimal, you will need to adjust the other 3 factors
2. PRICE: Your home must be priced properly for TODAY'S market. Overpricing makes competing homes look like better values and can lead to mortgage rejections once the appraisal is in. Home prices are like stock prices…it doesn't matter what homes (or stocks) sold for a year ago or even 6 months ago, what matters is what homes (or stocks) are selling for now. The market doesn't care how much you paid for your home (or your stock) or how much you have put into it with upgrades and improvements, it's all about "comps" (comparables). All appraisers use "comps" to establish current market value for any property. For a professional opinion, have an appraisal done. Your buyer probably will, so be one step ahead!
An important concept to understand is that REALTORS® don't set prices; the market does. Don't make the mistake of selecting an agent to market your home based on what he/she says they can sell it for. If you're given a market price and not shown solid "comps" to support that price, someone may be trying to "buy your listing". Your home will just sit unsold for a long period of time until the price is reduced to the current market range. To get the best price for your home in the shortest period of time, price it right in the beginning.
3. CONDITION: Presentation is everything! Home buyers are attracted to clean, spacious and attractive houses. As a seller, your goal is to dazzle buyers. Brighten-up the house and remove all clutter from counter tops, tables and rooms. Scrub-down your house from top to bottom. The home you sell is not the home you live-in, so you must depersonalize it: Remove all clutter, especially from counter tops; if your counter tops have much on them, it shouts "not enough cabinet space"; and pack away all of your personal memorabilia, photos, knick knacks, etc. The Buyer must be able to feel the house, undistracted by your personality. You'd be amazed how many Buyers are unable to visualize how the house might look with their own "stuff" if they are overwhelmed by the Sellers' personality. If in doubt, pre-pack! You're going to be moving anyway, so start packing now. Homes look much larger when lightly furnished; move any unneeded "stuff" to the attic or garage and rent a storage building for larger items like excess furniture. It's all about staging. In a Buyers' market, you must give folks a reason to select your home over the competition. The little things can make a BIG difference.
Repair anything that needs repairing to make your home "move in ready". When buyers see deferred maintenance issues, they wonder what else has been neglected that they don't see. If they perceive a home needs repairs or lots of updating, they mentally attach very large numbers to what it will cost them and you will receive only low offers. Paint is the best "bang for your buck" improvement you can make. If your home is even marginally in need of painting, do it. Be sure to select neutral colors; but not necessarily white or beige. Clean your carpets and have them stretched if needed. Worn flooring (or unusual colors) should be replaced. Hot pink or aqua blue carpet will blind most Buyers to the rest of the house.
If you were selling your vehicle, wouldn’t you give it a thorough detailing first?
4. MARKETING: Exposure, exposure, exposure, that's how homes sell fast. There's so much more to marketing a home than sticking a sign in the yard or putting an ad in the local newspaper. In a Sellers' market, that might be enough. In today's tighter market, a more effective marketing plan is essential. A listing agent's most important task is to make your home known to as many folks as possible. Nearly 90% of home buyers start their home search on the internet. If you have a computer, that’s probably how you’ve started the search for your next home. Your home should be listed on as many sites as possible and should be presented as professionally as possible. Slide shows, virtual tours, etc are what the public wants to see. Your home should have its own dedicated website to be referenced in all printed and online marketing materials. This directs interested buyers to your home’s site directly without sending them to sites with competing properties. If your home isn't easy to find, displayed properly with lots of photos and a high quality virtual tour . . . it will most likely get passed over in favor of other properties.
In Liberty Missouri, folks will search the Internet, thumb through Homes magazines, and spend hours looking at homes that are in the local MLS (Multiple Listing System). Access to homes that are listed in the MLS is readily available through many local REALTOR® sites. No, people don't usually buy a house over the internet . . . but they do decide which ones to look at based on the home's online exposure.
In a nutshell: Change what you can and be prepared to adjust the price for what you don't!
1. LOCATION: Nothing affects your home’s desirability like location: proximity to services, neighborhood attractiveness, and any special settings like lake front, fairway frontage, views or a private setting. Recent surveys have shown that over 85% of buyers will pass up a “nicer home” for one that is in a preferred location. The location of your home is fixed. You can’t change it. If it’s a great location it will counter balance other not so strong features. If the location is less than optimal, you will need to adjust the other 3 factors
2. PRICE: Your home must be priced properly for TODAY'S market. Overpricing makes competing homes look like better values and can lead to mortgage rejections once the appraisal is in. Home prices are like stock prices…it doesn't matter what homes (or stocks) sold for a year ago or even 6 months ago, what matters is what homes (or stocks) are selling for now. The market doesn't care how much you paid for your home (or your stock) or how much you have put into it with upgrades and improvements, it's all about "comps" (comparables). All appraisers use "comps" to establish current market value for any property. For a professional opinion, have an appraisal done. Your buyer probably will, so be one step ahead!
An important concept to understand is that REALTORS® don't set prices; the market does. Don't make the mistake of selecting an agent to market your home based on what he/she says they can sell it for. If you're given a market price and not shown solid "comps" to support that price, someone may be trying to "buy your listing". Your home will just sit unsold for a long period of time until the price is reduced to the current market range. To get the best price for your home in the shortest period of time, price it right in the beginning.
3. CONDITION: Presentation is everything! Home buyers are attracted to clean, spacious and attractive houses. As a seller, your goal is to dazzle buyers. Brighten-up the house and remove all clutter from counter tops, tables and rooms. Scrub-down your house from top to bottom. The home you sell is not the home you live-in, so you must depersonalize it: Remove all clutter, especially from counter tops; if your counter tops have much on them, it shouts "not enough cabinet space"; and pack away all of your personal memorabilia, photos, knick knacks, etc. The Buyer must be able to feel the house, undistracted by your personality. You'd be amazed how many Buyers are unable to visualize how the house might look with their own "stuff" if they are overwhelmed by the Sellers' personality. If in doubt, pre-pack! You're going to be moving anyway, so start packing now. Homes look much larger when lightly furnished; move any unneeded "stuff" to the attic or garage and rent a storage building for larger items like excess furniture. It's all about staging. In a Buyers' market, you must give folks a reason to select your home over the competition. The little things can make a BIG difference.
Repair anything that needs repairing to make your home "move in ready". When buyers see deferred maintenance issues, they wonder what else has been neglected that they don't see. If they perceive a home needs repairs or lots of updating, they mentally attach very large numbers to what it will cost them and you will receive only low offers. Paint is the best "bang for your buck" improvement you can make. If your home is even marginally in need of painting, do it. Be sure to select neutral colors; but not necessarily white or beige. Clean your carpets and have them stretched if needed. Worn flooring (or unusual colors) should be replaced. Hot pink or aqua blue carpet will blind most Buyers to the rest of the house.
If you were selling your vehicle, wouldn’t you give it a thorough detailing first?
4. MARKETING: Exposure, exposure, exposure, that's how homes sell fast. There's so much more to marketing a home than sticking a sign in the yard or putting an ad in the local newspaper. In a Sellers' market, that might be enough. In today's tighter market, a more effective marketing plan is essential. A listing agent's most important task is to make your home known to as many folks as possible. Nearly 90% of home buyers start their home search on the internet. If you have a computer, that’s probably how you’ve started the search for your next home. Your home should be listed on as many sites as possible and should be presented as professionally as possible. Slide shows, virtual tours, etc are what the public wants to see. Your home should have its own dedicated website to be referenced in all printed and online marketing materials. This directs interested buyers to your home’s site directly without sending them to sites with competing properties. If your home isn't easy to find, displayed properly with lots of photos and a high quality virtual tour . . . it will most likely get passed over in favor of other properties.
In Liberty Missouri, folks will search the Internet, thumb through Homes magazines, and spend hours looking at homes that are in the local MLS (Multiple Listing System). Access to homes that are listed in the MLS is readily available through many local REALTOR® sites. No, people don't usually buy a house over the internet . . . but they do decide which ones to look at based on the home's online exposure.
In a nutshell: Change what you can and be prepared to adjust the price for what you don't!
Curb Appeal in Liberty, Missouri
As the saying goes, you never get a second chance to make a first impression. This adage certainly holds true when it comes to the curb appeal of the homes in Liberty, Missouri. Buyers these days make decisions quickly and might not even take the time to go inside your home if at first glance, they don't like what they see on the outside.
"The homeowners themselves aren't always in the best position to judge their own curb appeal given that they see the property everyday," said Holly Slaughter, editor-in-chief of RealEstate.com Tips and Tools. "This is why I always recommend that homeowners invite a real estate agent or a friend over to give an honest assessment of a home's curb appeal before putting it on the market."
If prospective buyers pull up to what might be their new home, only to be turned off by chipped paint and a shaggy lawn, chances are they'll move on quickly to the next listing. So what can you do to increase a home's curb appeal? Here are some easy projects to include on your to-do list:
- Maintain the lawn. Seed the bare patches in your lawn and keep the rest mowed and nicely edged. If you don't have time to do this, hire a service as the lawn is the first thing prospective buyers will notice.
- Consider whether your house could use a good power washing. This doesn't cost much and will quickly take away the years of dust and grime that has collected on your home.
- Make sure the doorbell works and that the front door opens and shuts smoothly without creaking. Creaking can indicate aging or disrepair - things no prospective buyer wants to be greeted with.
- Keep clutter to a minimum, meaning no bikes or toys on the lawn and no garbage containers in sight of the street.
- Repaint any areas where paint may be flaking.
A home's curb appeal is the "face" that everyone sees. Prospective buyers will be certain to stop and take a peak if a home is clean and welcoming so make sure you do what you can to make the home shine through great curb appeal.
If you own a home in Liberty, MO and would like an honest assessment of your home's curb appeal before putting it on the market, please call Ron Henderson at (816) 651-9001 or email him at ronhenderson@kw.com
"The homeowners themselves aren't always in the best position to judge their own curb appeal given that they see the property everyday," said Holly Slaughter, editor-in-chief of RealEstate.com Tips and Tools. "This is why I always recommend that homeowners invite a real estate agent or a friend over to give an honest assessment of a home's curb appeal before putting it on the market."
If prospective buyers pull up to what might be their new home, only to be turned off by chipped paint and a shaggy lawn, chances are they'll move on quickly to the next listing. So what can you do to increase a home's curb appeal? Here are some easy projects to include on your to-do list:
- Maintain the lawn. Seed the bare patches in your lawn and keep the rest mowed and nicely edged. If you don't have time to do this, hire a service as the lawn is the first thing prospective buyers will notice.
- Consider whether your house could use a good power washing. This doesn't cost much and will quickly take away the years of dust and grime that has collected on your home.
- Make sure the doorbell works and that the front door opens and shuts smoothly without creaking. Creaking can indicate aging or disrepair - things no prospective buyer wants to be greeted with.
- Keep clutter to a minimum, meaning no bikes or toys on the lawn and no garbage containers in sight of the street.
- Repaint any areas where paint may be flaking.
A home's curb appeal is the "face" that everyone sees. Prospective buyers will be certain to stop and take a peak if a home is clean and welcoming so make sure you do what you can to make the home shine through great curb appeal.
If you own a home in Liberty, MO and would like an honest assessment of your home's curb appeal before putting it on the market, please call Ron Henderson at (816) 651-9001 or email him at ronhenderson@kw.com
Difficult Situations
To be successful in real estate, you occasionally must deal with sometimes unpleasant selling situations and you must have a practical understanding of the emotions churning through your clients. Having empathy for your clients and knowing their situation is crucial.
I often work with people who are suffering severe pain from the major upheavals that are taking place in their lives. Selling a cherished home; facing the personal turmoil of moving to a new area; worrying about making far greater financial decisions than they as home owners are accustomed to; coping with whatever situation--sometimes a family tragedy that has forced their home on the market; all these are intense forms of change that are painful to bear.
I typically try to put myself in their shoes. I try to ask myself, “What would I do” or “How would I feel in this situation?” I think most of my clients can sense that I really do care about their needs and helping them through this very stressful time in their lives.
If I were talking to a wife and husband who are being transferred, I'm often more concerned with relating to her than him. He's excited; he has his promotion; his ego has just received a big boost. The wife is concerned about her career as well, but more concerned with the children, and their needs. On the other hand, I will frequently run into cases where it's a change in the woman's career that puts the couple's house on the market. This reversal of roles can be just as traumatic for the husband.
When I first contact someone that wants to buy or sell a home, I try to quit thinking about myself. I start asking questions so I can understand why they are doing what they're doing. There's a reason for the move. Until I know that reason, I can't start feeling their feelings and relating to them properly in order to serve their needs.
Sometimes the reason for the move isn't exciting and upbeat, but definitely down and discouraging. Although these situations are touchy to work with, they're very likely to give me the opportunity to render great service to someone who really needs it.
When selling a home during a divorce situation, I must exercise great tact and understanding. I don't take sides. I have to keep it very professional with both of them and not make moral judgments about them. I’m obviously working with highly emotional people; the great pain they're feeling makes them turn to anger, resentment, and non-cooperation at the slightest hint of provocation.
Another emotional situation is when there is a death in the family. Either the husband or wife, or maybe an elderly mother or father has passed and the children are selling “the family home”. All I can do to help is to get them the most money for their home in the shortest possible time. To earn that chance, I try to be understanding of their situation. I don’t pretend to know what they’re going through, but I try to put myself into the position of being a “trusted advisor” for them.
Financial crisis, another common reason for moving, can be extremely tough to handle. Have you ever known people who were about to have their home repossessed? It's a terribly painful position to be in, and I have to be exceptionally considerate and aware of how these people feel about their difficult circumstances. There are alternatives to selling their home and nothing makes me more happy than to figure out a way out for them.
As a real estate professional, you have more than a job; you have an absolute obligation to do everything in your power to feel like your clients feel.
I often work with people who are suffering severe pain from the major upheavals that are taking place in their lives. Selling a cherished home; facing the personal turmoil of moving to a new area; worrying about making far greater financial decisions than they as home owners are accustomed to; coping with whatever situation--sometimes a family tragedy that has forced their home on the market; all these are intense forms of change that are painful to bear.
I typically try to put myself in their shoes. I try to ask myself, “What would I do” or “How would I feel in this situation?” I think most of my clients can sense that I really do care about their needs and helping them through this very stressful time in their lives.
If I were talking to a wife and husband who are being transferred, I'm often more concerned with relating to her than him. He's excited; he has his promotion; his ego has just received a big boost. The wife is concerned about her career as well, but more concerned with the children, and their needs. On the other hand, I will frequently run into cases where it's a change in the woman's career that puts the couple's house on the market. This reversal of roles can be just as traumatic for the husband.
When I first contact someone that wants to buy or sell a home, I try to quit thinking about myself. I start asking questions so I can understand why they are doing what they're doing. There's a reason for the move. Until I know that reason, I can't start feeling their feelings and relating to them properly in order to serve their needs.
Sometimes the reason for the move isn't exciting and upbeat, but definitely down and discouraging. Although these situations are touchy to work with, they're very likely to give me the opportunity to render great service to someone who really needs it.
When selling a home during a divorce situation, I must exercise great tact and understanding. I don't take sides. I have to keep it very professional with both of them and not make moral judgments about them. I’m obviously working with highly emotional people; the great pain they're feeling makes them turn to anger, resentment, and non-cooperation at the slightest hint of provocation.
Another emotional situation is when there is a death in the family. Either the husband or wife, or maybe an elderly mother or father has passed and the children are selling “the family home”. All I can do to help is to get them the most money for their home in the shortest possible time. To earn that chance, I try to be understanding of their situation. I don’t pretend to know what they’re going through, but I try to put myself into the position of being a “trusted advisor” for them.
Financial crisis, another common reason for moving, can be extremely tough to handle. Have you ever known people who were about to have their home repossessed? It's a terribly painful position to be in, and I have to be exceptionally considerate and aware of how these people feel about their difficult circumstances. There are alternatives to selling their home and nothing makes me more happy than to figure out a way out for them.
As a real estate professional, you have more than a job; you have an absolute obligation to do everything in your power to feel like your clients feel.
Monday, June 11, 2007
Missouri Home Buying Programs
Are you thinking about buying a home in Liberty, Missouri? Do you have questions? Do you want to be a better informed consumer? If so, then the Missouri Association of REALTORS can help you!
The Missouri Association of REALTORS has launched a new website, www.mohomeprograms.com, to help reduce the costs of homeownership. The website is rich in content and offers a wealth of information at your fingertips from the comfort of your home. In fact, there are answers to 100 commonly asked questions on the site including:
How do I know if I'm ready to buy a home? How does purchasing a home compare with renting? What should I look for when walking through a home? How many homes should I consider before choosing one? What is the best way to compare loan terms between lenders? What can I expect to happen on closing day?
Check out the real estate glossary and you will find the definition to dozens of real estate terms. Visit the "consumer issues" section of the site and find information on things you can do to build a good credit record for yourself and improve your credit score.
The site also has a financing section that allows you to do a loan products search that, after answering a couple of questions, recommends the various loan programs that may be available to you with a definition of and information on each program.
All of this information is FREE and provided by the Missouri Association of REALTORS. So, whether you are a renter trying to decide if you can afford to buy a home in Liberty, or a homeowner who just wants to learn more about the home buying process, I would recommend you visit www.mohomeprograms.com
The Missouri Association of REALTORS has launched a new website, www.mohomeprograms.com, to help reduce the costs of homeownership. The website is rich in content and offers a wealth of information at your fingertips from the comfort of your home. In fact, there are answers to 100 commonly asked questions on the site including:
How do I know if I'm ready to buy a home? How does purchasing a home compare with renting? What should I look for when walking through a home? How many homes should I consider before choosing one? What is the best way to compare loan terms between lenders? What can I expect to happen on closing day?
Check out the real estate glossary and you will find the definition to dozens of real estate terms. Visit the "consumer issues" section of the site and find information on things you can do to build a good credit record for yourself and improve your credit score.
The site also has a financing section that allows you to do a loan products search that, after answering a couple of questions, recommends the various loan programs that may be available to you with a definition of and information on each program.
All of this information is FREE and provided by the Missouri Association of REALTORS. So, whether you are a renter trying to decide if you can afford to buy a home in Liberty, or a homeowner who just wants to learn more about the home buying process, I would recommend you visit www.mohomeprograms.com
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