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First, a personal note to all those I have done business with…THANK YOU. 2006 is ending and it has been my best sales year ever.

For those of you who follow this blog and wonder how a real estate agent can have his best year ever when the market is slowing, well, it’s just hard work. And proof that no matter what the economy or market is doing, if you work things will work out. They may not come easy, but God will provide.

SELLERS – INVESTMENT – Price your income properties appropriately and they will move. The “regular” buyers are sitting on the sidelines right now but investors are out sniffing around. And with so much inventory on the market they are buying the properties that make the most sense.

SELLERS – PERSONAL PROPERTY – Pricing is king! Inventories are up, buyers are down. That’s not the formula for a Seller’s market. Houses can and do still sell but you have to be prudent and listen to your professional. If your house isn’t moving it’s probably the price vs. condition. You can blame your REALTOR, the market, solar flares or whatever. But the price must match the market. If you must maximize your sales price, you may want to sit out this season and wait till things start to move a little better.

BUYERS – INVESTMENT – There are profitable properties out there. Email me your criteria and I’ll send you 3 or 4 that fit.

BUYERS – PERSONAL PROPERTY – While inventories are up and prices are softening your biggest advantage is that you can pick and choose. Bargain on a home and if they won’t move on price you can move on to the next home and see how motivated they are. Don’t let yourself fall in love with one particular property unless you are willing to pay whatever to get the deal done. So if you are buying your first home be real picky. But if you are buying your dream home you may have to pay.

I love this real estate business. It is so dynamic.

Many of you have probably been sitting on the sidelines waiting until the market is right. Whether you are looking for investment property or your next home, now is the time. Selection is outstanding, Sellers are beginning to get the message and interest rates are still, from a historical perspective, remarkably low.

No, Sellers are not giving properties away. But there are bargains to be had. And let’s say you are thinking of moving up. If your current home is worth $200,000 and you discount it 5% to sell it quickly you will sell it at $190,000 and “lose” $10,000. (Actually you probably gained more than that over time, just some of your gains have been erased.) Now you can go look for your next home. Most people purchase at 150% above what they just sold at. So in your case you are going to look for a $300,000 home. In this market, to sell it, they will need to do what you did. Discount the house to some degree. At a 5% discount, You pick up the next house at $285,000. Or a $15,000 savings. Getting the picture?

I am not saying the market is so bad that you HAVE to discount to sell. There are, of course, other strategies. The point I am trying to make, however, is that if you are willing to give a little, you could get a little more back. Think it over.

It’s official. Despite what some may be telling you, I believe we are definitely in a Buyer’s Market. My investment property listings are still getting showings. My investment buyers are still looking to scoop up values. But my “regular” residential listings are getting shown at a snail’s pace.

Many of my colleagues are coming up with unusual methods just to draw attention to their listings. And I’ve begun to follow suit. So beware Sellers, it’s not your market anymore.

But now the good news for us here in the heartland. Our sales have slowed and our price appreciation has held on or flatlined, at worst. But my associates out on the coasts are running for cover. Sales down 26% in many parts of Florida. Down 20+% in the Phoenix area.

You are going to see a shakeout of REALTORS and mortgage brokers. Is your REALTOR still in business? For those of us who consider ourselves professionals, we’re not too worried. Hard work and innovation always has it’s place. But for the order takers and the ones that put up signs and waited for the offers to come are going to be in trouble if they never learned how to market.

I keep watching the cable tv channels talk about the downturn in the market. And I have no doubt that the markets they are speaking of are down. However, here in Kansas City things are still buzzing along.

But there are segments that are suffering. And people pushing the price of their home are getting themselves into trouble. The longer a house sits, the lower the sales price will probably be.

At least with my investors, there are a lot of optimists out there. Rents are beginning to rebound as those who have been foreclosed on come back into the market. There are still a lot of questionable loans out there to be had, for sure. But by and large people are a little nervous about interest rates and are opting to stay where they are.

For more details, feel free to give me a call. I love to discuss this kind of stuff.

Hello – sorry I’ve been away. Vacations. Business. Etc.

Everyone everywhere in the news is talking about the real estate slowdown. Well, that may be true nationally. But here in the Olathe Keller Williams Realty office we had a record month in June and were just barely off last year’s pace for July. Personally, I had my best month ever for July. Who knows what all this means.

The Greater Kansas City MLS system, the Heartland MLS, shows that we currently have 21,866 listed properties for sale. And for the month of June we (meaning all the 10,000+ REALTORS who belong to Heartland) sold 4,241 homes. If you know your math you will see that is just a little over a five month supply of homes. Now us REALTORS feel that a six month supply of homes is “par”.

I would like to delve into this a little deeper. The sales are not that far off our historically high marks. What is up, and tremendously so, is the listings. It seems everyone has a home to sell. So if yours isn’t selling the market must be slow. But I am also finding that many of these listings are simply testing the market. This really isn’t the market to do that! Either price it to sell or get it off the market and quit wasting your time. After all, nothing is more annoying than having to get out on 20 minutes notice just so someone can show your home.

There is a lot of talk about the air coming out of the market and real estate investors rushing to liquitdate their holdings. But exactly who are these investors?

I have been yelling from my soapbox for quite some time that there is a difference between investing and speculating. Counting on rapid appreciation and buyers’ greed is not investing. But purchasing a home at or below market value (considering many factors like needed improvements, neighborhood condition, vacancy rates, etc.) and holding onto it for the long term is still the smartest way to invest in real estate, and thus build long term wealth.

Opportunities abound for those who know where to look and with whom to look. Act now if you have been standing on the sidelines. Be patient and realize that this latest real estate market is a lot like the post stock market boom. People will talk about how bad the sales are and where they are headed. But for those who carefully study and buy right, there is another upswing just around the corner.

Seven year cycles. Seven year cycles…

People ask me all the time what exactly adjusts your credit score. Well, the correct answer is that “nobody knows”. Oh, I’m sure the boys at Experian, Trans Union and Equifax know. But that is about it.

But there is quite a bit of speculation out there on some topics. A mortgage lender recently sent me a list of 32 Facts About Your Credit Score sheet. If you would like a copy simply email me at chris@listwithchris.net. Just state that is what you are looking for.

And if you don’t want to bother asking for the sheet you can just google an answer. But you know what you need to do; Don’t take out more credit than you need. Don’t forget to pay it back!