TOP 5 Insider Tips for Kansas City real estate Home Buyers

The Dowell Taggart Team
Phone: 913.712.9313
Website: www.DowellTaggart.com
RE/MAX Website: www.KansasCityRealEstateNetwork.com
Blog: http://OnlineKansasCity.Blogspot.com

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“Why do some Kansas City home buyer’s get better deals?”

“How do they find them?”

“Did the Kansas City REALTOR make any difference?”

Based on those questions, here are our TOP 5 Insider Tips for Kansas City real estate Home Buyers….In no particular order;

 

1. How Should I Write My Offer?

 

The manner in which you write your offer depends on many factors….For instance, Does an Individual own the house? Or a bank? As an example, a person is almost always more motivated to move towards emotional satisfaction than a bank.

Oftentimes, the amount of time a property is on the market can influence an individuals’ need to get the property sold, yet for a Lender, days on market may mean very little.

Keeping that in mind, writing an offer for cash might appeal to a Lender, but may not motivate an individual. Same holds true for a quick close.

Consider, what if the Seller prefers a longer close date to allow them to finish their home search?  What if YOU can’t clearly and easily demonstrate the source of your cash for the purchase?

In the first case, a quick close offers no benefit for the Seller, and in the second, if the Seller’s REALTOR cannot deliver a solid proof of funds letter to their client, why would the Seller consider a cash sale?  Sometimes lender funded sales are far more reliable.

Writing an offer that is likely to be understood easily by the other Agent (as well as the Seller/Buyer), deliver emotional satisfaction to the Seller/Buyer, and meet the economic terms of all parties can be more difficult than deciding the terms of the offer.

The best Kansas City REALTORS understand what types of terms might appeal to different sellers, how to phrase those offers so that the parties on the other side might accept them, and finally, the tone to use when presenting the offer.

It isn’t “point and click”; full-time Kansas City REALTORS don’t write offers without considering these factors and rarely do we blindly shoot them over to the other REALTOR without carefully weighing our options.

 

2. Timing – When to Buy? 

 

Do you need a place to live, AND does owning fit your financial picture? If so, now might be a good time to buy.

Interest rates are important, and since most folks don’t pay cash, it’s a fair bet that you understand getting a great buy on a rate is far more important than a great deal on a house….If this hasn’t crossed your mind, call me, let’s discuss compound interest over an iced tea.

May not be popular for a REALTOR to say, but not everybody should own a home.

Can you afford maintaining your home? Fresh paint every so often, new roof, water heater….hey how about garage door repairs, or the occasional plumber’s visit? Consider this; while you’re living in an apartment, none of those costs travel to your checkbook while you’re making vacation plans….Call me and let’s talk. We don’t want you in a home unless you’re ready.

Much gets made over Winter, rather than Spring, yada yada…Doesn’t matter. There are great deals all year round. We just don’t want to move our furniture when it’s snowing outside!

 

 3.  Why Do Some Buyers Get Better Deals?

 

Simple, a combination of impatient patience. You heard me….Impatient people who patiently look for the right deal, then jump on it.

Just recently we worked with a couple who are relocating to Overland Park. We wrote an offer of $164,000 on a $237.000 home….listed for sale at $168,000.

Sure enough, other Buyers were interested as well.

We lost a great deal because the Buyers chose to think it over, and while the time to deliver our best and final offer came and went….They were still “crunching the numbers.” Our inaction made the decision for us. We sat tight at $164,000.

They were angry because they didn’t win. Hey, we were given the opportunity to increase our offer, yet my Buyers sat tight. They produced many graphs and charts, cited per square foot costs, demonstrated a great understanding of finance and the subdivision.

But they lost their dream home. Over a measly $4000. On a $237,000 home they could have purchased at $168,000.

Go figure! Hey you can be the best informed guy in the room, but if you snooze you lose.

4. How Should I Finance My Home?

 

The biggest decision you make is where you find the money.  Getting a great deal on the purchase price can be wiped out with poor financing, yet a fair purchase can be made great with the right financing package.

For instance, right now a 30 year fixed rate might run at 4.5%….While a 5 year adjustable rate may run 3.25%. Do you believe a 5 year ARM is risky? Not if you plan on relocating within 3 years, right?

Or, as with a recent client, he and his wife found their Kansas City dream home….at a price too good to pass. We made the offer and it was accepted. We closed with the ARM….And they are planning to refinance soon with he proceeds from a lawsuit the family is settling over in the coming year.

Another example is the Homepath financing offered on select Fannie Mae/Freddie Mac properties. The interest rate is higher, but there are different rules regarding Private Mortgage Insurance, or PMI. When rates were higher, the influence of PMI didn’t factor into the equation as much, but as interest rates have fallen, (and PMI premiums increased) paying attention to every penny counts.

Let’s talk.

5. How to Choose a Realtor

 

Can you find your REALTOR  on the Internet? If you can’t find them, can the public find your home for sale? Sure the REALTOR’s can find the home on MLS, but 87% of the time the BUYER starts their search on the web. And more than likely, BEFORE they find the agent.

If they can’t find the agent, the BUYER can’t find your property.

Do they answer their telephone? We prefer to speak to live people. The first or second voicemail is no big deal, but the third, the fourth time….Forget it. Call your REALTOR. If they answer, great….If they don’t, then we should talk.

Call us. Test us. 913.712.9313, or 913.712 9204.

Last test. This one is easy.

Does your Kansas City REALTOR answer the telephone between 8 and 5? Can they meet with you mid-day? Do all contract negotiations tend to slow down during the day…sort of take a siesta?

Congratulations. You just hired a school teacher. Or a soccer Mom. Or a Home Depot clerk….to masquerade as your Kansas City REALTOR.

We don’t have anything against part time folks, I really don’t. I love them in our business. I prefer that they make up more than 98% of the AGENT population; it makes for great deals and easy negotiations. I need someone to represent buyers on our overpriced Kansas City listings.

We don’t believe in taking advantage of people, neither do the vast majority of REALTORS in our market….If you hire a part time agent, expect and be satisfied with part-time results.

Finally, choose an agent that is familiar with your area, both for sale as well as purchase. I can’t be an expert in all areas…I’m not an expert in all areas. The schools, the economic outlook, commerce, developing trends….Too much to keep up with for all subdivisions, all neighborhoods.

We specialize. We all do.  So interview us, find out what we claim we are good at, then ask for concrete examples of those things. If it takes more then a second or two to recount the details, forget it, it’s make believe.

We specialize in Gardner, Olathe, Overland Park, Leawood, Lenexa, Shawnee and Johnson County, Kansas. If you need help elsewhere, we have formed great realtionships with other Kansas City REALTORS. We would be happy to refer one of them.

REMAX sells more real estate than any company in the world. Should we talk?