Kansas City Real Estate Podcast with James Hern and Michael Hern

Here’s why you should have a real estate resolution this year. We have a question for you: What is your real estate resolution for 2020?  Are you considering buying or selling this year? It may be the best time to do so. Are you looking to invest or continue investing in real estate? This is the year to do it.  If you aren’t ready to do any of those things, but you own a home, you may be surprised at the equity you have in your home at this very moment. Now may be the time to capitalize on that. Should you refinance? You could pull that equity out, use it to pay off bills, or invest in other things.  “You may be surprised at the equity you have in your home at this very moment.” We would love to help and counsel you in all of these areas, so please contact us; we’d be glad to sit down and have a consultation to discuss your real estate resolutions this year. Don’t hesitate to reach out to us—we’d love to help you with your goals. In the meantime, have an excellent year!

If you’ve ever wondered why you should hire a real estate agent to help you sell your home, there are a few key reasons. For starters, how do you know how much your property is worth? If you’re basing your home’s worth on what a neighbor sold their home for, it doesn’t mean that’s what you’ll get for your house. By finding your home’s true value based on market data and not strictly opinion or hearsay, you’ll learn where you stand. “Just asking a real estate professional about whether and where you should spend your money will prevent that loss.” Sellers also commonly make the mistake of doing unnecessary repairs. They’ll often make improvements that won’t bring them a valuable return upon the sale of their home. Just asking a real estate professional about whether and where you should spend your money will prevent that loss. We’re here to help you get the most money from your home sale. Isn’t that what selling your home is all about? If you have any questions about hiring an agent or about selling your home, reach out to us. We’ll be happy to answer any of your questions.

What is a buyer’s needs analysis? In short, it’s a comprehensive interview that we have with you in which we take you through the buying process and learn a little bit more than what we call the three B’s of buyers. If you’ve talked to other agents and the only questions they asked you about revolved around the three B’s of buyers— “beds, bath, and budget”—then you need to be cautious of working with them. Those types of agents aren’t interested in what is going to be important for you with regard to your next home. After all, finding the perfect home involves more than asking about how many bedrooms or bathrooms you need, or about your budget. “During your buyer’s needs analysis, we’ll ask you questions that get to the core of what a dream home is like for you.” For example, what do you want your home to say about you? What would you like to feel when you walk into that home? Are you looking for more of a formal eating space or do you prefer an open concept? During your buyer’s needs analysis, we’ll ask you questions that get to the core of what a dream home is like for you. When you sit down with us for this 30- to 40-minute discussion, we’re saving you hours on the back-end because when you tell us exactly what you’re looking for, we can take you right to it. That makes sense, doesn’t it? If you have any questions about the buyer’s needs analysis or about buying a home in general, feel free to reach out to us. We’d love to hear from you!

How important is a home warranty? If you’re purchasing a new home, it’s not too important because you’ve already got a lot of warranties built in by the home builder and the appliance manufacturers. New construction home purchases make up a small percentage of all home sales, though, which means there are a lot of other homebuyers out there dealing with old appliances and the like.  “For just $500 to $600, you can buy peace of mind.” This is where home warranties become very valuable. For just $500 to $600, you can buy peace of mind. Your warranty will not only cover your most important appliances (furnace, water heater, refrigerator, etc.), but it will also cover your plumbing and electrical systems.  Not to mention, your home warranty is renewable every year, so you can keep having that peace of mind until however long you like.  Whether you want to get a home warranty or not is your decision, but I highly suggest you do so.  If you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d be happy to help you.

Whether big or small, your budget should allow for certain renovations to be made when it comes time to sell your home. Here are a few renovation tips to think about:  One lower-cost renovation you can make is increasing your curb appeal. Something as simple as doing a little landscaping, mulching, or sprucing up your yard’s overall appearance by cleaning up yard waste can make a big difference. Also a simple fix, replacing the hardware on your cabinet doors and any other door in your home can totally transform the look of your home.  The next one on the list should come as no surprise: painting. Especially if you have young children, your home’s walls probably aren’t exactly in pristine condition. Over time, the walls of a lived-in home tend to have scuffs, nicks, and maybe even fingerprints. Whether it’s your walls or cabinets, applying some new paint can add a great deal of buyer appeal. “Something as simple as doing a little landscaping, mulching, or sprucing up your yard’s overall appearance by cleaning up yard waste can make a big difference.” Let’s shift our attention to bigger-budget renovation items that will give you the greatest bang for your buck. While you can opt for a minor remodel, a full kitchen remodel usually returns a whopping 110% of the money you’ve spent.      The same goes for a bathroom remodel, but it’s important to note that this depends on how many bathrooms are in your home. It would probably be unwise to add, say, six bathrooms when your home already has two.   In any case, smaller items like new tile or light fixtures will give your home a nice value boost and are likely to put every dollar you spend back into your pocket.  From simple to difficult and cheap to expensive, these are just a few of the great renovation options you can try in your home that will prove to be money well spent.  Should you have any additional questions or if need input on what you can do to add value to your home before you sell, don’t hesitate to contact us by phone at 816-875-1744 or by email at James@HernHomes.com. We at The Hern Group would be happy to help!

Today I’m here to answer the question, “Why is a home inspection so important?”  As far as homebuyers are concerned, a home inspection gives you the most honest, accurate picture of a home’s condition. Sellers don’t always know about everything that is wrong with their property until an inspector actually comes in and takes a look. An inspection gives you peace of mind about what you’re buying. While no one can predict how long certain systems and appliances will last, home inspectors can point to factors that you’ll have to take under consideration when buying a home. If you know that the home’s furnace is on its last leg, a good agent will make sure that information is factored into the offer. “Have an inspector look at any property you’re considering purchasing.” If you’re like me and need a little help, it’s a smart move to have an inspector take a look at any home that you seriously consider purchasing, either for your family or as an investment. They will be able to tell you, or direct you to someone who can tell you, every imperfection in the home. If you have any questions about home inspections or about real estate in general, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

People have been asking us a lot lately, “Why should I come into the office for a buyer’s consultation?” Well, today we have the answer. The goal of this consultation is to sit down with you for a little bit to explain how the market works for buyers from A to Z. Things change periodically, and we would love to sit down and show you how the process works in the current market so you can get a better idea of what it will look like before you make a final decision.

Home maintenance is one of the joys of being a homeowner, but after you’ve lived in your home for a year or two and you’ve acquired a honey-do list of maintenance tasks, what do you do with it? In my household, we usually hire a professional to handle these kinds of things, and if you’re the same way, we have an offer to share with you.  We know plenty of great vendors who can handle siding, carpeting, painting, electrical repair, etc. Taking care of these things means having the right resources at your disposal, and we want to share those resources with you.  If you’d like to know more about these vendors and how they can assist you, don’t hesitate to reach out to us. We’d love to help you.

Should you buy or should you rent? Well, the answer depends on where you are right now in your life. Some people rent because they can get in and get out fairly easily. They don’t want to be saddled down by a mortgage, but what they fail to realize is that they’re still paying a mortgage—it’s just someone else’s. If you buy a home, however, you now have your own place. In addition to being able to do whatever you want with it, you’ll enjoy a multitude of tax benefits as well.  “If you stay in a home for five years, its value will increase by about 20%.” Equity is another big factor to consider when owning a home. Homes appreciate by about 4% each year, so if you stay in a home for five years, its value will increase by about 20%. Regardless of how big or small this increase is, it’s still 100% more than what you’ll gain by renting. When you weigh the two options, you’ll see the best choice is to buy instead of rent. And due to our current low interest rates, you could be owning a nicer place for less than you’d be paying in rent. If you would like to learn more, have any questions, or need more information, feel free to reach out to me. I look forward to hearing from you soon.

We’re still in somewhat of a seller’s market, and people are asking us if there’s any way to find success as a homebuyer. More specifically, they want to know how to make an unbeatable offer that cuts through the competition. Here’s how we get an offer accepted. First, we call ahead to the seller’s agent. We find out what’s in their seller’s best interest by asking where they’re moving, when they want to close, and so on. We want to package the offer in a way that appeals to the seller so it’s important to find out through the agent what works best. “Good communication is always important throughout the process.” We’ll have a pre-qualification letter, a good earnest deposit, and shorter inspection days. A typical inspection period is 10 days, but you can cut it down to three to five by finding out your inspector’s schedule.  Though good communication is always important throughout the process, you still need to make a strong offer on the home; a lowball offer won’t get you anywhere in today’s market. The rest of the terms and conditions are tailored to the seller. No matter what’s going on out there in the market, we’re always here to help you accomplish your real estate goals. If you have any questions or would like more information, feel free to reach out to us. We look forward to hearing from you soon.

Zestimates are a tricky business. Yes, they can provide interesting insight into what a home is supposedly worth, but the figure they list is often a far cry from what a real agent will tell you. So who’s right? Do agents know best, or should you trust your Zestimate, instead? Here’s the truth: Zestimates often miss the mark. It’s more of a “best guess” on your home’s value than an accurate calculation.  A Zestimate is simply an algorithm. Unlike an agent, there’s no way it can walk through your property and see what upgrades you’ve made, what your finishes are like, or any of the other fine details that make the home unique.  “Zillow’s Zestimate is more like a ‘guess-timate.’” Trying to determine a home’s true value with a Zestimate is sort of like trying to count blades of grass from 30,000 feet in the air.  You’ll get a much more accurate idea of what your home is worth when you enlist the help of a real estate professional. Local agents are able to take an up-close look at your property, accounting for every little detail as they develop an estimate of your home’s value.  Especially when you consider that Zestimates can be more than 20% off from your home’s true market value, the choice between this web-based algorithm and the opinion of a real, local agent is clear. Zillow’s Zestimate is more like a “guess-timate.” If you want to find out what your home is really worth, please reach out to us. We’d be happy to help. And, as always, if you have any other questions or would like more information, give us a call or send us an email. We look forward to hearing from you soon.

Interest rates are going up, but what does that mean for buyers? Well, it’s not a good thing. Most interest rate movement is negligible, but for every point that it goes up, you lose 10% of your buying power. If you have a $250,000 mortgage, each point costs you around $150 more each month. If the rate goes up, you’re paying for it. “If you want to buy a house, you should now.” Affordability has been at a 40-year low, but it’s creeping back up. The government has stopped conducting quantitative easing, which means they’re no longer spending money to artificially keep bonds low. Now that it’s ended, rates will begin to go up. If you want to buy a house, you should now. If you’re approved for a $200,000 mortgage but rates go up 0.5%, you’re losing 5% of your buying power. You can now only afford a $190,000 home. A 1% increase in rates will drop your buying power on that same property down to $180,000. You can see how a small change has a big effect.  With interest rates going up, now is the time to think about buying. Feel free to reach out to us—we can get you on the right road toward homeownership, answer any questions you may have, and give you more information. We look forward to hearing from you soon.

With the market shift going on, homes are staying on the market a lot longer than they used to. We’re not seeing as many multiple offers as we once did, either. This confuses sellers, who may begin to question why their house isn’t selling. The truth is, the market is shifting from being a complete seller’s market to more of a balanced market instead. This means that, due to supply and demand, conditions no longer strictly favor the sellers. Buyers can afford to be slightly pickier about the homes they want to buy. “The market is shifting from being a complete seller’s market to more of a balanced market instead.” This is where we come in: It’s our job to educate home sellers about how to prepare their homes for today’s market. Successfully selling your home in our market comes down to three things: price, condition, and location. Sellers need to ask themselves if their house is priced correctly, if it’s in good condition, and if it’s in a good location for buyers. Of these three criteria, price is definitely a driving factor—price your home with the market in mind and you should have fewer issues finding buyers. If you have any additional questions or would like a professional opinion about the price of your for-sale home, don’t hesitate to reach out to us. We’d be glad to help you.