Ten Questions Every Homeowner Should Ask an Agent

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As you embark upon what will be one of the most important transactions of your life – whether buying or selling a home – you should be absolutely certain that you are happy with the real estate agent you have hired to help you manage it. 

To help you with this all-important hiring process, here are ten important questions to ask an agent before you decide on whether or not to hire them:

Question #1

How Close Do You Get in Sale Price Related to Asking Price?

It is important to ask for this information as it relates to the past 60 days.  Given that many agents are not that active in the market, you would be best served to obtain the most recent information possible.  As a seller, your agent’s ability to come close to the asking price is a strong attribute and can mean a difference of thousands of dollars in your transaction.

Question #2

How Many Days on Average Does It Take You To Sell a Home?

What’s the average number of days on the market for properties listed by your prospective agent? Since this statistic can reach as high as six to nine months and in some cases and as much as a year, it is important to ask how your prospective agent ranks on the scale.

Question #3

What is the Rate of Homes Sold on a Monthly Basis?

Knowing the absorption rate of homes similar to yours that are on the market allows valuable insight as to how the market is performing for your particular needs.  Not only does it give sellers a glimpse into the system and how it would translate to their own sale but it also presents a broader view of the entire market in general.

Question #4

What Do You Do Differently To Get Homes Sold?

Especially with the current trying economic times, many agents have been faced with adversities trying to sell the homes on their list.  One of the best ways to learn whether your agent is a self-starter is to find out what they have done in the past when they were unable to successfully sell homes.  Ask why the agent feels the home(s) did not sell and then find out what they are doing differently to get them sold.

Question #5

What Percentage of Deals Do You Represent the Buyer Versus Seller? 

Some agents work primarily with sellers while others work mostly with buyers and still others are experienced with dual-agency deals.  Depending on your needs, you will benefit from an agent that specializes in one of the two.  It is important to ask which side of the fence your prospective agent tends to represent. 

Questions #6

How Many Homes Did You Sell Last Year?

Nothing speaks louder than numbers.  A very important statistic, ask what the total number of homes sold last year was and if possible try to get a more long-term picture of the agent’s performance in this regard. You can also ask for a month-to-month breakdown to see if there are certain stronger months.

Questions #7

Can You Provide a List of the Ten Most Current Clients You Have Worked With?

Rather than rely on the given list of referrals that many agents have handpicked, it’s a good idea to obtain a list of clients that are currently working with this Realtor.  It will provide a much-needed glimpse into the agent’s performance on various stages of real estate transactions.

Question #8

How Much of Your Work Day Do You Dedicate to the Real Estate Industry?

You want an agent that is 100% committed to their  job and if they are focusing more on a day job with real estate being a secondary thing, you run the risk of inaccessibility, lack of knowledge and experience plus lackluster motivation.  Find out how they feel about the real estate industry and whether they are passionate about their work.

Question #9

What is Your Style of Marketing – Proactive or Reactive?

What is your potential agent’s style of working?  Does he or she speak to a large number of people each day? Are they proactive or reactive in nature when it comes to marketing? See how this lines up with your real estate needs.  Are you in a hurry to buy or sell?  Does a laid back agent hinder your efforts? Or does slow and steady work better for you?

Question #10

What Does Your Daily Schedule Look Like?

The typical schedule of a real estate professional can be very telling.  By asking for a copy or general idea of how they conduct their day in terms of their work, you can get a good idea of how much time is devoted to the profession and what kind of business they are running.

Property Investment Now Promises Huge Returns Later

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You have probably heard over and over again lately about the phenomenal buying market out there for property enthusiasts. In fact, even if you are not a bona fide investor it is still a great time to get into the business of investing in property. One of the reasons for this ripe environment to invest and actually make significant amounts of money on that investment is the low costs of obtaining property that we are seeing today.

Today’s Low, Low Cost of Financing

Not only are homes priced lower but also the actual cost to borrow money to purchase the homes is also lower. Not too many years ago the cost of a mortgage was as high as many credit cards are today and when you compound that into 30-year fixed mortgages, the finance charges become astronomical. With today’s interest rates, however, monthly payments for the same house you might have purchased at the old interest rates are much lower.

Let’s look at a $200,000 home. If you financed it back in the 80s when rates were as high as 16% (or more) the total monthly payment amount would be about $2,900. Factor in today’s record-setting interest rates and the monthly payment is more than fifty percent less at around $1,200. This is for the same house!

Home Prices Remain Very Low

After the infamous market crash of 2007, housing prices plummeted and they have remained at or near bottom for quite some time now. For buyers and investors this translates to one of the best opportunities – especially when combining low home prices with record low interest rates. Not only is the home affordable, but so is the cost to borrow money to buy it.

Consider the example above of the $200,000 home. If your budget is $200,000 and you were not buying in today’s market – how much home would you be able to afford within that amount?  Of course, what you would be able to get will depends on location, neighborhood, style of home and other factors. But in general, the amount of house you would be able to afford ten years ago does not even compare to what you can get today for the same amount of money.

Invest for Pennies on the Dollar Now – Enjoy Sizable Returns Later

When billionaire investor Warren Buffett was recently asked about the best investment sectors of today he suggested investing in single-family homes on a 30-year fixed rate mortgage. This advice came in light of current market conditions that end up in pennies on the dollar investment schemes. Buying a home today for under $200,000 will easily yield more than double the returns by the time the mortgage is paid off. Many savvy homeowners today are also making extra payments to shorten the term length of their mortgages.

With the plethora of investors and buyers that are delving into the property market to seize the opportunities out there, many have been turning to any means possible to come up with the down payments. Whether dipping into savings, obtaining a home equity line of credit on an existing home, converting the purchased home into a rental property – buyers are getting creative.
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If you would like to explore your options and find out how you can take advantage of the amazing investment opportunities right now, contact us today. We would love to guide you and come with up with some ideas that work for you.

Tips for Selling Success in Spring Market

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In the real estate market, “spring” usually comes early, with people eager to list their homes as soon as in January to beat the competition as the weeks get closer to March.  But if you missed this year’s after-winter opportunity, now’s the next best time to sell.  With so many new home shows popping up everywhere on TV, now more than ever, buyers are super savvy so to help you with your home selling endeavor this year we have put together a few tips to get those buyers rolling in.

Make Them Want To Come Inside

Nothing makes a buyer more interested in seeing the property than a gorgeous exterior.  Excellent curb appeal does not have to take a lot of time, effort or money but if you do not tend to this essential aspect of selling your home, you could end up losing a lot of potential buyers to the competition. 

Curb appeal is simply a matter of maintaining and sprucing up the exterior and entranceway of your home.  By cleaning up dirty siding, fixing up post-wintertime yard messes or fixing minor cracks and crevices in the driveway – buyers will be wooed by that inviting first impression.  Take the time to add some flowers, put out a warm welcome mat and give buyers an idea of what they can expect when they set foot inside.  Not tending to this can make all the difference in the number of offers you may or may not get on your listing.

Once They’re In, Show Off Your Space!

So often sellers are selling a home without realizing that potential buyers have different tastes than their own.  The single best way to bridge the divide between one aesthetic sense versus another is to keep things neutral, neat and nice.  If you have a bright orange room, a fresh coat of neutral paint may just be the thing needed to attract the right buyer.  If there are gorgeous walk-in closets in the home, remove most of the items in the closet so the buyer can visualize their own things in the space. 

Fix any things that need repairs, remove the clutter from your home, have it professionally cleaned and then dress it up so you can show it off to the next owner!  If there are any cracks in caulking or baseboards, work to get them fixed.  Clean up baseboards, remove cobwebs and fix up anything else that may need repairs.

Leave a Lasting Impression

As buyers leave your home and move on to view the next one on their list, it is important that they remember your home.  Imagine that your home will be showcased in a magazine.  How would you set things up? Would you rearrange your furniture?  Remove extra items that are too personal or clutter up the space too much.  By giving these things thought and planning how you will present your home, buyers (and agents) that see your home will likely remember it and come back to it after seeing other properties that did not quite meet their standards. 

Keep in mind a show-ready home is one that shows off all the features and amenities of the property. When they can see the full potential of the home, buyers are able to imagine living in the space and they are far more likely to put in an offer.

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If you are getting ready to sell once you have worked on its curb appeal and set up the home’s interior ready for showing – it is a good idea to invite your Realtor for a walk-through.  Years of experience selling (and buying) homes with clients give them the perfect insight needed.  Good luck!

Another Secret to Selling Your Home in this Market

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Nothing is more important to a buyer before buying a home than knowing that they are not walking into a money pit. For this reason, getting a home inspection before getting into escrow is essential for buyers, regardless of whether it is a requirement of their lender.

The process of home inspections is yet to require licenses in many states so the only thing you can do is to rely on other methods to make sure you get a good inspector on your side.  We spoke to the owner of a long-time home inspection company that has performed thousands of inspections to date to find out how one should go about finding the right one.  Here’s what he had to say:

How Does Someone Go About Finding a Good Home Inspector?

The best way to find a good inspector is to talk to your Realtor.  Most agents have a preferred vendors list and of course home inspections are something they deal with on an almost daily basis.   They may have worked with a choice few and can corroborate their performance and results with proven experiences.  In many states there is no license necessary to become a home inspector so going through word-of-mouth is even more important.

Another very effective way to search for a reputable instructor is to go through a national-level association such as the American Society of Home Inspectors (ASHI).  In addition to member links and information they also have a search tool through which consumers can access a comprehensive directory of qualified, reputable home inspectors that are members of the society as well.  There are also state and local versions of these associations that you can access for more fine tuned searches if necessary. Many of these organizations provide certification after taking extensive testing and completing certification prerequisites. Professionals that have gone through this process are known as certified home inspectors and they are definitely measurably more qualified than many others that have completed first-level testing.

The more inspections performed allow more experienced inspectors to go through additional extensive certification testing and once completed they become master home inspectors – the best of the best and most qualified.

What Are Some of The Benefits of a Home Inspection?

Since a potential buyer can rely on one person to evaluate most of the home in one session, the field of home inspections is a specialized one where they go through every single part of the home.  Whether investigating the condition of the home’s foundation, roof, mechanical, electrical, plumbing, safety, heating/cooling, fireplaces, or so much more – the home inspector is trained to recognize problems in all areas. 

Contractors generally have a specialization in only one field, whereas home inspectors are training to view the entire home so if you know someone in a particular field it would still not make sense to forego the inspection and have that person review your home. 

One of the best aspects of having an inspection is that buyers can freely investigate all areas of the home, they can liberally ask questions during the process and get a good idea of what to expect further down the line if they were to purchase the property. Buyers get so much more out of it if present at the time of the inspection. 

From a Real Estate Perspective, How Do Inspections Help Consumers?

It is becoming more and more common now for inspections to take place ahead of time before the real estate transaction, so buyers can be ahead of the game before they get into escrow.  Also pre-buy inspections allow buyers to go back to the negotiation table and ask for seller credits for any issues that may be potentially substantial expenses. 

Sellers can also gain an edge and leverage when they have an inspection done ahead of time, with documentation to supplement their disclosure statement. At a time when buyers control the market it provides sellers with an advantage over the competition and it allows the process to go lot smoother, especially for older homes.

What Are Some Characteristics of a Good Inspector?

Look for an inspector that is able to find the problems, identify major issues, prioritize the essential ones, offer suggestions as to basic estimated costs for repair or renovation, and maybe even provide some leads for quality contractors to perform the work needed to be done.  They should also provide a comprehensive report that includes time frames and necessary fixes in order to bring the issues back to code or to repair problems.

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Further information about the typical items that are included in a home inspection plus things that require inspections through independent specialists is available here.

How Were Home Sales in 2011?

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With all the talk about the real estate markets across the country, you're probably wondering how our market did during 2011.  Amazingly, 2010 and 2011 showed almost identical home sales.  The number of home sales in the area was approximately 2900 in both cases.

About 25% of those home sales were short sales.  Of course, this is probably no surprise given the turmoil in the economy and real estate market in the last several years.  However, experts are now predicting about 15% less short sales this year than before. This is a good sign that things are on the upswing with the economy and housing market.

We're also noticing the buyers feel that we are now at the bottom of the real estate dip.  In fact, inventory is shrinking, and bank rates are still very low.  In addition, some sellers are more understanding of the situation now than ever before. When you add these three factors together, you have a great combination for the real estate market.

Experts are also predicting a 5% drop in home prices in our area, which will give us a median price of around $165,000. For the first time in 20 years, we are also seeing the population drop a bit due to people moving to get deals in other depressed housing states.

Our area is still a great place to live, work and play! One popular rocker has always said “live life like you're on vacation” and we definitely do that here.

Now is a great time to buy a personal residence or even a second home. I would love to share the full details of what the market is doing here by sending you a 10 to 12 page report. I can mail it to your home or even email it. You are also welcome to call me anytime on my cell phone.

My team and I are so excited because we can now see that this year will be even better than last year!

With Market and Interest Rates Down – Does That Mean Property Investment Is a Good Idea?

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So many people are wondering these days whether it is a good time to invest in property.  It’s no secret that interest rates are at an all-time historic low and when combined with the low housing prices we are still seeing these days, more and more people are considering real estate investment.

How can you tell if it is the right thing for you?  And if you do decide you want to venture into buying property for the sake of investment, how do you go about it and what type of dwelling makes the most sense? 

The answer is largely dependent on your individual investment goals.

Overall Appreciation Perfect for Long-Term Security


The easiest way to enjoy significant returns on investment is through the purchase of a single-family home.  Historically more popular, these properties are easier to rent out, entail less day-to-day management and they can be assumed as primary residence at any given time the investor would so choose, providing an added sense of security.  Home values do appreciate with time and single-family homes typically rise in value faster than other rental property types.

It is important that the property is located in a desirable location and also that it is easily rentable.  Your Realtor can assist you with an analysis of the area’s statistics in term of rent versus buy situations as well as a look at what other similar properties are renting out for.

Slow and Steady Monthly Income


Rental units that comprise of anywhere from 2 to 12 (or more) family units within the property are perfect for monthly real-time cash flow. While they may not appreciate as much as single-family homes, they provide the comfort and safety net of steady monthly income.  If increased cash flow is the goal then opting for multi-unit rental properties may be the best route to take.

Demographics play a key role in determining your investment.  For instance, if you live in a college town then a rental home near the college or downtown would be ideal for many senior or grad level students that prefer easy access yet quality housing.  Conversely, resort homes are also attractive and as long as they are located near some tourist attractions you may be able to yield decent rental income. Rental units in big cities are also popular in the more bustling areas of town.
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Given the increase of rental units and investment properties being rented out, there has been an influx of property management companies set up.  Ideal for the silent investor or someone that does not have a lot of time to put into the actual management of properties, property management companies handle anything from market analysis, finding and screening tenants plus managing the move-in process to handling day-to-day affairs like collecting rent or property maintenance.

If you can afford it and have investment goals that line up with some of the returns that are apparent with property investment, contact your Realtor to get a feel for what is available out there.  This is definitely a very interesting time to pursue an investment property.

Getting Through a Tax Appeal; How To Request Property Taxes Reassessment

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Now that the holidays are over, what comes next?  It is the beginning of tax season.  And property taxes are no stranger to this time of year.  As expected given the tumultuous past years we have collectively faced after the real estate bubble burst a while back, many homeowners want to make sure they are paying the right amount of taxes on their property.  If you are unsure as to whether your property taxes accurately reflect the current value of your home, you can request the County Board to reassess the current taxes you are paying.

Even though it may sound like a lot of time between now and April 1st, the deadline to submit your application can creep up very quickly, leaving you in the dark with not enough time to prepare.  Here are some valuable tips on how to prepare for a tax appeal request along with some important links that will provide further information on the process.

For Tax Appeal Success, You Need Evidence

Until and unless you provide the board with valuable, viable information that supports your claim to have your home’s value reassessed it likely that you will not be too successful.  The key is providing evidence demonstrating that other, like kind properties in your area have recently sold for amounts that are far less than your current property value.

In the real estate industry agents and other professionals often deal with “comparable sales” reports.  These are detailed reports that derive what the value of a home should be based on other similar homes that have the same profile.  This profile could be amenities, number of bedrooms and bathrooms, square footage, type of structure, type of garage, location, school district – a number of factors.  Realtors aptly perform a comparable sales analysis since they are well versed in the area and have a vested interest in understanding their neighborhoods’ property values. 

Realtors know and understand the ins and outs of such procedures as applying for a reassessment of property taxes.  Both agents are attorneys, for different reasons, offer valuable insight and experience into the process. Important details like the fact that comparable sales must include sales that took place in the year preceding the current tax year and only through October 1st, can be missed if not managed by a professional.  For this reason, it is always a good idea to have that professional backing when you are filing for a tax appeal. 

How Can a Professional Help With Filing a Tax Appeal?

Whether assisting homeowners will filling out the petition of appeal form submitted to the board, coming up with a tax record sheet showing the current assessment on the land and building or establishing the perfect comparable sales data – working with a Realtor (supplemented with an attorney) is ideal.  Not only do your chances of successful reassessment significantly improve but also if there are any roadblocks along the way you have knowledgeable support alongside you.
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If you have decided to pursue a tax appeal, keep in mind that just like filing federal and state income taxes, the closer you get to the deadline the longer it can ultimately take for processing. 
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Here is an important and useful link that will guide you through many aspects of the tax appeal process.  If you have any questions, please do not hesitate to contact us and we would be glad to take this on for you!


- http://www.kcgov.us/