BBQ Capital | Kansas City Real Estate Investing

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!

I agree with this article. I suggest you read and study the market and act!!!

“As interest rates rise and the number of eager new buyers begins to diminish, adding supply to an already bad real estate market for sellers may mean a very good market for buyers and for property investors.”

To see more go to…

http://finance.yahoo.com/columnist/article/richricher/5766