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5 (more) real estate terms you should know

 If you regularly follow our blog, then you know that we’ve been going through a list of common real estate terms, five at a time!  There are so many real estate terms that surface during the buying and selling processes…it’s enough to make your head spin!  (This is one of the reasons why it pays to employ the services of a licensed Realtor– read more about that in our previous post on the topic!)  We thought we’d take a few terms at a time and give simple explanations for each, courtesy of National Association of Realtors (NAR) Real Estate Glossary.  For the full list of the terms and definitions, click here!  For the first five terms that we covered, click here!Down payment: The amount of cash put toward a purchase by the borrower.Dual agent: A state-licensed individual who represents both the seller and the buyer in a single transaction.Earnest money deposit: The money given to the seller at the time the offer is made as a sign of the buyer’s good faith.Escrow account for real estate taxes and insurance: An account into which borrowers pay monthly prorations for real estate taxes and property insurance.Exclusions: Fixtures or personal property that are excluded from the contract or offer to purchase.

5 (more) real estate terms you should understand

 There are so many real estate terms that surface during the buying and selling processes…it’s enough to make your head spin!  (This is one of the reasons why it pays to employ the services of a licensed Realtor– read more about that in our previous post on the topic!)  We thought we’d take a few terms at a time (starting with “A” of course) and give simple explanations for each, courtesy of National Association of Realtors (NAR) Real Estate Glossary.  For the full list of the terms and definitions, click here!  For the first five terms that we covered in our last post, click here!Commission: The compensation paid to the listing brokerage by the seller for selling the property. A buyer agency agreement may require the buyer to pay a commission to his or her agent.Contingency: A provision in a contract requiring certain acts to be completed before the contract is binding.Conventional mortgage: A type of mortgage that has certain limitations placed on it to meet secondary market guidelines. Mortgage companies, banks, and savings and loans underwrite conventional mortgages.Counteroffer: The response to an offer or a bid by the seller or buyer after the original offer or bid.DOM: Days on market.  The number of days a property has been on the market.

5 real estate terms you should understand

There are so many real estate terms that surface during the buying and selling processes…it’s enough to make your head spin!  (This is one of the reasons why it pays to employ the services of a licensed Realtor– read more about that in our previous post on the topic!)  We thought we’d take a few terms at a time (starting with “A” of course) and give simple explanations for each, courtesy of National Association of Realtors (NAR) Real Estate Glossary.  For the full list of the terms and definitions, click here!Adjustable rate mortgage (ARM): A type of mortgage loan whose interest rate is tied to an economic index, which fluctuates with the market. Typical ARM periods are one, three, five, and seven years.Application fees: Fees that mortgage companies charge buyers at the time of written application for a loan; for example, fees for running credit reports of borrowers, property appraisal fees, and lender-specific fees.Back-up offer: When an offer is accepted contingent on the fall through or voiding of an accepted first offer on a property.Buyer agent: The agent who shows the buyer’s property, negotiates the contract or offer for the buyer, and works with the buyer to close the transaction.Closing: The end of a transaction process where the deed is delivered, documents are signed, and funds are dispersed. 

5 reasons why you should use a buyer’s agent in a new construction

The Home Builders Association of Greater Kansas City (HBA) is hosting the 55th Annual Spring Parade April 22 through May 7, 2017. Homes will be open from 11 a.m to 6 p.m with free admission.  This year the HBA is partnering with Harvesters to help alleviate child hunger during the summer months. From April 14 until the end of the Spring Parade (May 7) the HBA will be accepting non-perishable food items at its headquarters at 103rd and I-435 as well as donations at its website.  The HBA is hoping to raise 55,000 meals (or $18,500) for area kids this summer — donate now and help the HBA hammer out child hunger!With so much to look at on the Spring Parade, it’s the perfect opportunity to note why it’s important to use a buyer’s agent in new construction.Many people don’t realize that the builder’s agent only represents the builder.  Sure, they know a lot about the neighborhood and the builder…but they are the builder’s agent.  You need representation (as a buyer) by a licensed, knowledgeable agent.Here are five reasons why you should use a buyer’s agent on a new construction purchase:

  1. Your agent will discuss all options with you; new construction and resale.  Once you determine that new construction makes the most sense for you, she will help you evaluate and select a building lot and options.  Lot location and certain options/upgrades absolutely come into play when it comes to future resale value.  It might make sense to wait and install some options after construction, while others end up costing you more if not done during construction, before closing.
  2. As mentioned above, a buyer’s agent truly represents YOU, the buyer.  Your agent will negotiate on your behalf.  “Representing you” means that your agent might be able to negotiate terms/conditions that are more favorable to you, but still acceptable to the builder.  An experienced agent will have many new builds under her belt, and know what to look for and where to negotiate.
  3. A buyer’s agent can (and should) check on the property and building progress during construction.
  4. A buyer’s agent will attend a final walkthrough with you before settlement to make sure that all items are completed to your satisfaction.  If items remain undone, your agent will create a list for the builder with terms, to make sure that the items are completed post-settlement.
  5. As with any purchase, resale or new construction, your buyer’s agent will obtain and review a preliminary HUD-1 settlement statement to be sure it is accurate, while advising you of the amount of money needed for settlement/closing.

There are even more ways your Realtor® can assist you with your new construction purchase.  We have experience with builders on both sides of the state line and would love to help you with your dream home…from the ground up!  Give us a call today! You can reach Cami Jones at 913.206.2410.

What is “lack of inventory” and what does it mean to you?

The lack of available real estate inventory poses a challenge but it can be a good thing, depending on what side of the transaction you find yourself!  The Kansas City real estate market has been very hot, often resulting in multiple offers on Day 1, and many sellers find themselves receiving OVER asking price with no contingencies attached. A hot market is typically good news for sellers:  inventory is low, and competition is high.On the flip side, homebuyers will be up against a lot of other people vying for the same piece of property, and up against a short supply of existing homes.  Also, first-time buyers in high-demand areas may find that their best offer is beaten out by cash buyers and investors.  Use an experienced real estate agent (like any one of us on the Cami Jones Collaborative!) to help you get a handle on the market and look over what’s available.  You will need to decide where you can or can’t (or aren’t willing to) compromise.  Remember, finishes and appliances and paint colors are easy to change, location isn’t.  (Read our previous post for tips on buying!)As a buyer, you’ll want to get your financing lined up so you don’t waste any time in a hot market.  Once you find the house…be ready to pull the trigger with your offer! And be ready to offer without contingencies.  In a hot market, sellers will likely take the cleanest offer:  the one with no contingencies, the one with the most money down and the one offering the quickest (or most preferable) closing date.Above all, be flexible and be patient!  Your dream house awaits, it’s just a matter of time.  Good luck!  Call us today and let us help you sell and find your next home!  

5 things to look for when buying a home

Are you in the market to purchase a new home?  Perhaps you are going to be selling one and buying another one.  In either case, there are lots of things you should be looking for and that’s why it pays to hire a licensed Realtor® to represent you.  (Read more on why using a Realtor makes sense here.)  Here are 5 red flags that should make you take another look– and at least get to the bottom of things!FOUNDATION OR WALL CRACKSSome cracks are a normal part of a house settling that occurs with time. Others can indicate major structural issues or even previous water damage. Foundation work is a costly repair, so consult with a good home inspector before buying.  Some clients even hire multiple inspectors with different specialties.LAYOUT AND LOCATIONOne thing that absolutely can’t be “fixed” or altered after your move-in date is the physical location of the property.  Before buying, get out and walk around the house.  Go at different times of day, to get a feel for the “after school” traffic and rush hour traffic.  Look and listen around you.  The layout of the home is another thing you can’t easily fix after purchase. Sure, if you’re buying a tear-down or intend to gut and remodel, this isn’t a big deal.  But in general, you’ll want to walk the rooms and see if the layout works for you.  Is it open enough?  Do you have enough space to entertain?UNWELCOME PESTSYou’ll want to inspect for past and current evidence of termites.  In addition, roaches, mice and spiders are troublesome.  Granted, some of these pests can be seen as part of home ownership, especially if your property is situated near a wooded area or creek, but you’ll want to do your due diligence and go in with eyes open!IF YOU SMELL SOMETHING BADBad odors could be coming from pets, and if they have soiled the carpet, chances are you’ll be replacing the carpeting and padding as well.  Bad odors could also signal something much worse, like mold or even plumbing problems.  Again, when you are walking through the home, try to use all of your senses when observing and making notes.  And take notes/photos so you can point out to an inspector if you have any questions.TOO MANY ‘FOR SALE’ SIGNS IN THE NEIGHBORHOODIt could just be a sign of a hot market, with lots of properties moving.  BUT- you want to ask your Realtor to study comps and neighborhood market trend reports to     make sure property values are holding in the area and that there’s nothing causing everyone to leave!Let our team help you! We make the listing process easy and will have you on the road to selling your beautiful home in no time! Give us a call today! You can reach our team here.

3 resources for residential sellers and buyers

 Buying a home is one of the biggest decisions you’ll make in your lifetime.  We strive to deliver unparalleled customer service from the first contact you have with us until you are well settled into your new home!  Cami Jones Collaborative has a team of real estate professionals ready to help you; whether you are buying, selling, or both. Don’t just take our word for it– read what some of our past clients have to say!We have three key resources that will make your life easier and hope that you’ll take advantage of one or all of them.

  • For starters, you’ll want to install our mobile app!  It makes searching for homes a breeze and you can set custom alerts to keep you in the know at all times.  Click here for mobile app installation.
  • If you’re on the front end of selling, or are just curious about the market value of your home, you can click here to easily get an estimate of your home’s value.  Maybe you didn’t realize what your home was worth…and that “step up” neighborhood isn’t out of reach after all!  You can also obtain a customized neighborhood Market Trends Report to see what things are moving for in your area.
  • Here is a link to our Property Search tool- you can search by geography, school district, zip code, neighborhood, etc.  We are experts in the Kansas City-area real estate market, so whether you are looking north of the river or in western Shawnee, we can help.

 

What are Comps and how do they help determine house value?

Whether you find yourself buying or selling a home, neighborhood Real Estate Comps are a very important and useful tool.  “Comps” refers to comparable sales, and they are used by agents and appraisers to determine the value of a house.  The value of properties currently on the market along with properties that have sold in the past helps bring into focus the value of a house.When you use a licensed real estate agent like someone from Cami Jones & Co, she will have access to the Multiple Listing Service (MLS), which is a database of all the properties in a given area that have been listed “for sale,” are in process of being sold (pending,) have a contingent offer or have previously sold.  This is one of the many benefits gained when using a Realtor® to facilitate your real estate transaction.When reviewing Comps, we will take into account homes that have a similar size, condition, and location.  This way, we are comparing “apples to apples.”  The reasoning here is that your home is worth whatever others would be willing to pay for it — what the market bears — and the best way to determine this is to see what others have paid for similar homes.Keep in mind that every house is different, so you add or subtract from the fair market value to account for features and finishes that make the home more or less desirable to potential buyers even if size, condition, and location are pretty much equal.If you’re looking to sell and want to get a handle on what your home is worth, please contact us!  We are Kansas City’s real estate experts and would love to help!