Agent Sharon Eaton Discusses What’s Coming to KC

Glad Heart Realty Agent Sharon Eaton is sharing with us new developments coming to Kansas City. Stay tuned for more videos and information!

Agent Sharon Eaton Shares What's Coming to KC!

Posted by Glad Heart Realty on Monday, September 21, 2015

I Want To Buy a Foreclosure and Fix It Up

hammer and nail

This blog is directed to a person or family who wants to buy a house to live in.  This does not apply to investors who have cash, crews, connections, and experience.

If you are looking to buy a foreclosure, live there, and fix it up, it is a great idea if you can find the right house.  A majority of foreclosures need a major amount of work, so you have to think about a few things.

  1.  Any repairs you make will come out of your pocket, so you will need to have cash in the bank to make repairs, hire contractors, etc.
  2. Time….. Getting a house the way you want it can take a lot of time, a LOT of your free time is consumed in home repairs.  There is always going to be maintenance in home ownership, but do you want to spend all your family and social time working on the house?
  3. Buying a foreclosure is difficult if you need to get a loan, most banks won’t lend you money for a house that needs a lot of work.  A lot of banks won’t even look at an offer that has an FHA loan.
  4. If a foreclosed home has been on the market for more than 30 days, and hasn’t had a price drop, and investors haven’t grabbed it… it is not a good deal!  There are probably major problems.
  5. If the house has foundation issues, that is very costly.
  6. Always remember this:  It’s not just what you can see in the house, it is what you can’t see that can really add up in repairs.

The good news is you can usually have first crack at a foreclosure.  There is a 10 day window when it hits the market that only owner occupied purchasers can bid on.  This is to give the regular guy a chance, and not let the investors buy everything up.

My observations over the past few years:

Foreclosures usually drop the price $5,000 to $10,000 every 30 days, after 90 days they are more negotiable.  They are not very negotiable in the first 30 days, and many times get above asking price.

Dealing with a bank is different than dealing with a seller (person), the bank is on their own time schedule.

Be prepared to walk away if inspections don’t go well.  There is no renegotiating with the bank.  You are buying the house as-is.  I just learned this one the hard way J. You might hear otherwise, but 98% of the time they will NOT renegotiate for repairs.

I like to tell first time buyers that they may want to spend $20,000 to $30,000 more on a house and get something that is nicer.  That is about $40 to $60 a month more.  Instead of taking $1,000’s out of your pocket, and not knowing when it will end.

I have sold many foreclosed homes and have had happy clients.  I just like to help people understand what they might be getting into.  It is a big deal to buy a house!

What are your thoughts?  Have any of you had a great experience or a bad experience with a foreclosure?

Why Buying a House is Like Falling in Love

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By Wendy Manaco

I have been thinking about why buying a house is so emotional.  You have probably heard that from the real estate professional.  I will meet with a person and will listen to their wants and needs, carefully taking notes so I can best serve them.   We will peruse the internet, looking for the house that meets their needs, has the right amount of bedrooms, bathrooms, garage, and basement.  I call these the non-negotiables.

The buyer will then tell me what their wants are, such as big yard, a deck, a front porch, prefer a dead end street, brick house, vinyl siding, no vinyl siding, small yard…. You get the idea.  Everything has to fall under the umbrella of PRICE RANGE!  So we usually have to be ready to let some things go.

I have heard this a million times “if we could just take this house and put it on the other lot”. It is a common problem.  We can look at 10 houses that have all the needs, but they just don’t have the mojo, the buyers are saying  “it’s nice…but.  I always want to give feedback to the seller’s agent after looking at houses, but sometimes all I can say is “they weren’t feeling it”; but great house.

I LOVE when we walk into a house and you can feel the buyer’s smiles, they are “feelin” it.  Now this house may or may not have all the wants and needs, but it feels good, like home.  I LOVE THIS!!!

It reminds me of the list I had for my future non-existent husband before we met.  I had a nice list of wants and needs, but let’s just say, the list went out the window on our first date.  I think he could have eaten the shrimp tails and I still would have fallen in love.  Oh wait, he did eat them.  I should have known then.  He was a lot of things I never wanted, like Italian, yuck, and tall, not my favorite.  He was just barely a Christian, so we got that one covered, had 2 kids, wasn’t too sure about that.

None of it mattered.  I was in love; it was emotional, a bit irrational.  Oh well it worked out.  I am a happily married woman with a big Italian husband.

Price, Terms and Conditions

price-terms

By: Diane Bickle

These 3 factors determine a satisfactory and timely sale on your home.

Price

Your Glad Heart Realty professional will inform you of important information that affects the asking price of your home.

Factors that affect price are:

  • Are you in a buyer’s or seller’s market?
  • Is there something unique happening in your community to increase or decrease property values?
  • What is your competition (other comparable homes in your area) selling for?

Terms

Offer better terms than your competition to position your home ahead of your competition.

Some terms to consider are:

  • Have your home pre-inspected, address needed repairs BEFORE you sell.  Advertise your home as pre-inspected.
  • Place a Home Warranty on your home.  The advantages to you the seller are more than meets the eye.  The advantage to the buyer is peace of mind.  Talk with your Glad Heart Realty professional about these advantages.
  • Be prepared to pay some closing costs for the right buyer.   Buyers expect this term in today’s market.
  • What furniture, drapes, etc. will you not miss in your new home?  These items may serve as motivating factors to tie a buyer in emotionally to making an offer on your home.  Talk with your Glad Heart Realty agent about the best way to make these items attractive to a potential buyer.

Condition

Appearance is everything!  Your home should look it’s very best the day you go on the market.

Some appearance considerations are:

  • Curb appeal is paramount.  Clean flower beds, sow grass seed, edge and mow yard.  Make sure exterior paint is clean and fresh.
  • Clean walls or put a fresh coat of neutral paint on them.  This applies to woodwork and ceilings as well.  Clean and shine hardwood floors, clean carpets or replace worn carpets.
  • Clean bathrooms thoroughly – floors, walls, fixtures and tiles.
  • Clear all clutter from sight.   Take magnets off of your refrigerator and counter tops should be near bare.  Start boxing up personal affects that you will want in your next home.  Sell or give away remaining items.
  • Sell or store extra furniture so your home looks open and spacious
  • Smells really matter.  All unpleasant odors must go.  Deodorize home.

How to Handle the Emotions of Buying a Home

emotions-buying

By: Michael Cirelli

There is nothing quite like that feeling, you’re sitting at home waiting for what seems like days for your agent to call you and say one of the greatest phrases you will ever hear: “Your offer has been accepted!” Take a moment and let it sink in; you just took a huge step in the journey of home ownership. Feelings of excitement fill your heart as you think about the fact that you are under contract. This good news is followed by about 45 days of a roller coaster of emotions until you close on your new home.

What are your next Steps? There are 3 major next steps.

  1. You will have your future home inspected. You will want to be there, meet the inspector and let him educate you about the working components of your home. The next day, thoroughly read through this lengthy report. Minor to major matters will be addressed on your inspection report. Don’t fret – every home has issues. Every issue has a solution. Talk with your agent about how to address issues on the report. It’s customary for a seller to fix and repair matters addressed on the report. So relax. By all means, use the inspection visit to your home as an opportunity to remind yourself that this place is about to be yours!  Walk through the home, place your furniture in your mind’s eye. Have fun!
  2. Cooperate with your lender.  In order for you to be fully approved for a loan you will need to provide your lender with documents he/she requests. Do so in a timely manner because you don’t wish to delay your closing at all. Tax returns, W-2’s etc. are the type of documents you will be asked for. This process is called “going through Underwriting”. Helpful hint – Never quit your job while you are going through underwriting! Never buy a new car, recreational vehicle or spend a lot of money on a new purchase while going through underwriting as this most certainly will jeopardize your loan approval.
  3. Your lender will order an Appraisal. This process is the bank’s way of determining that your future home is worth the price you are paying for it. This expert assessment of the worth of your future home is also a built in safe guard for you, the home buyer, to rest assured you are getting value for value when you purchase your home.

This isn’t everything you need to know – but it’s the broad strokes. Your Glad Heart Realty agent will answer all your questions, keep you on target, and on your timeline to a successful close.

This is a great day! Relax, have fun and embrace the journey to home ownership.