Thursday, June 21, 2018

How Well Do YOU Know the Market?

A key to our success in real estate has been to effectively describe what is REALLY happening in the current market conditions, and helping our clients position themselves to get the most equity possible when selling, and if they are buying (especially in a hot market)  to know what value the market is bearing for a property so they don't end up paying too much.

I get the call many times from clients and the people they refer to us is that they saw a property (typically a for sale by owner) that just dropped their price $20,000 and they are calling me to find out if that is a good deal. First of all, if a price drops that much, it was probably WAY over priced in the first place and a big drop like that still might not have them in the current "market value" based on what buyers are currently paying for similar properties.

The experience of selling over 2,500 properties gives me the insight so many agents don't understand. I can actually "SEE" what is really happening in the market and give my seller clients the best advice to get then next buyer that buys. You see, every buyer you miss is a possible buyer, and you may have just helped your competition sell their house. In fact, many sellers are losing their buyer and the opportunity to get the most equity possible when they overprice their property. While they are overpriced, the seller who started out overpriced has dropped their price several times, and is now price correctly... so they steal the next buyer. Now the overpriced seller has to wait for the next buyer. We don't know when that next buyer is coming, AND the buyers are still only going to pay fair market value. If it takes overpriced listings to drop their price to the right price to sell, then there will always be "right priced" properties in the market and the overpriced properties will soon drop the price enough to get a buyer and steal that buyer from the next, new overpriced listing.

One key element to our success and helping our clients get the most equity possible AND make sure they don't underprice their property is to accurately evaluate the market before we put the For Sale sign in the yard. Once we determine what the property will most likely sell for (based on all of the current 'SOLD' activity for similar properties in their area) we position ourselves to be the most competitive property on the market. That, by the way, doesn't mean the cheapest.. and we don't want to be the most expensive either.

Once we determine the best position to HIT THE MARKET and we go live, then we need to watch real time activity to determine if we hit the market at the right spot. I want to share a perfect example of what an experience agent can provide a client to be their real estate specialist and help interpret the market to get the most equity possible.

This is a sample of a market review I just sent to a seller today. We analyzed the market. The market is definitely a hot market at the time I did this review, and I was able to predict that we would probably have about a dozen people through the property in the first week. Even in this HOT market, we have had the most traffic over any of our competition, and as of the day I printed this report, we had not gotten an offer from anyone. Reviewing the market and making strategic moves that make sense is how we get our clients more equity. In this particular case, we now know the seller is not leaving any money on the table. In fact, one price adjustment will most likely result in a sale sign in their front yard.

How well do you know the market? How well does your real estate agent know the market? Do you have friends or family that chose the wrong agent, and really didn't know what was going on?

There is no time that should be wasted "giving this agent a try" and if they haven't truly analyzed the market and they are pulling numbers out of thin air.. it is time to get a real estate professional that can open your understanding of what is really happening in the market and where the best position is to get the most equity. That sometimes means we are getting ten's of thousand's more than we would have thought. It is all about "supply" and "demand".

Take a look at the type of information we provide our clients to understand the market better than most real estate agents.


Every property is different, and market conditions change from area to area, type of home to type of home, and neighborhood to neighborhood. It takes professional experience and advice to determine the best strategy for your property. You should never "take a stab at it" or "see what happens".. you can do that from time to time, however make that decision with smart, accurate information.

Contact Brad Korn before you make any decisions about buying or selling real estate. My experience of 100 sales per year and over 2,500 properties in my career puts me in the top 10% of all agents in the KC area and in the top 15% of all agents in the surrounding 7 state area.

Thursday, March 22, 2018

Why Buyers May Lose If They Don’t Act Now
Rising mortgage rates could have a big impact on the direction buyers choose when shopping for real estate, economists warn. “Every time the interest rates go up, you eliminate a group of people who can no longer afford to buy a house,” one mortgage broker told realtor.com®. “Some people may have to rent for a period of time until they make more money—or buy a smaller house.”

Contact Brad Korn, Top Realtor with The Hern Group to find out how to get qualified for your loan and ask how you can give the seller a $5,000 guarantee your offer will close on time. PLUS find out about our FREE Instant Notification Program where we can get you a list of the newest listing even before they hit the big websites. Stop missing out on homes. We sell a home every day and we know how to help you win in this market so you don't miss your window of opportunity.
To avoid further complications in their plans, buyers may want to speed up their home search this spring, as interest rates are forecasted to move higher in the coming months. Forty-four percent of home buyers say rate increases likely will force them to settle for a smaller, less expensive home that requires a longer commute to their jobs, according to a realtor.com® survey. First-time buyers may be most affected by rising costs, as increasing home prices and interest rates price some out of the market.
Mortgage rates are at their highest levels in more than four years. The 30-year fixed-rate mortgage averaged 4.46 percent last week, according to Freddie Mac, and that’s largely expected to increase since the Federal Reserve said it is likely to raise its short-term interest rates this year. That could prompt mortgage rates to move higher at least three times this year, starting this month.
For the bulk of buyers, it’s not going to kill their decision to purchase a home, if anything, it will get them off the fence by creating a sense of urgency. Higher rates are “a kick in the pants for you to start thinking seriously [about buying].”
Rate increases—even minor ones—can add up over time. Realtor.com® offers this example: On a $300,000 house with a 30-year fixed-rate mortgage and 20 percent down payment, the difference between a 4 percent and 5 percent mortgage rate is $142 a month. Calculated over the life of the loan, that is more than an extra $51,000. “Buyers thought they could wait forever because rates were going to stay low forever,” says Palacios. “They’re starting to realize that if they’re going to buy, they should probably buy now.”
Home buyers who are concerned about rising rates may want to lock in with a lender, which guarantees the current rate for a set period of time. Still, don’t let your clients linger on making a decision. It typically costs several hundred dollars to lock in a rate.
shared by Brad Korn, Realtor member from RealtorMag article on 2/22. Source: “Is It Last Call for Low Mortgage Rate? Why Home Buyers Should Act Now,” realtor.com® (March 7, 2018)

Friday, September 08, 2017

Attention all Korn Team Past Clients:

An extremely happy client and friend added our name to this list to be recognized as one of the best real estate agents in Eastern Jackson County.

The Korn Team has been selling real estate for over 25 years and has sold over 2,000 homes in Eastern Jackson County. Our clients have been winning in all kinds of market conditions with average sale prices (on over 1000 listings sold) 98% of their asking price. This is an average over good and really bad market conditions. The market average for all other agents in the KC area is around 95% of list price. We have worked hard for our clients and have an aggressive, proven marketing plan that gets our clients properties in front of more buyers, hands down.

We hope you will take a moment to vote for us! and if you really want to, you can vote every day!!! I know some Realtors are having them mother and family vote every day, however we want our clients who love what we did for them to vote for us every day. Thanks!

Go to www.examiner.net now and follow the process:
Step 1: Go to Examiner.net
Step 2: click on “Best of” logo
Step 3: click on
“Housing & Real Estate”
Step 4: click on “Best Residential
Real Estate Agent”
Step 5: click on ”VOTE -Brad Korn”
Step 6: Share this post with
your family to vote every day too


Want to find out if your property will sell fast, and with multiple offers? Call me today to get an updated market valuation. 816-224-KORN (5676) or email me at bradkorn@hernhomes.com

Saturday, July 01, 2017

Seasoned Top Real Estate Agent VS The computers!!!! Who will you trust?

I want to tell you a Real Estate Story.....

What is really happening in the market? Consumers may not be getting a true picture of what is really happening.

People believe the market is HOT and properties are selling with multiple offers, over asking price and getting offers in just hours of being on the market. The reality is, we are in a very unstable, yet strong market.

I sell an average of 100 homes each year and just last month sold 13 properties! Not because the market is crazy... because that is a normal month. The reason many people think the market is crazy is because most real estate agents (about 80-90% of the them) sell 1-2 properties each month. So, think about your own job. If you only did what you do best 1-2 times per month vs 10-20 times every day, how great would you be? I talk to sellers every day, and I am surprised the common conversation other agents have with Sellers is "how much do you want to get? GREAT! this is a crazy market....and we can always come down if we need to". Selling a home every few days has given me and my clients a more realistic view of what is really happening.

There is a very specific strategy behind every property that goes up for sale. You want to position properly so you get the most equity possible. You want to price high enough that you don't leave money on the table, but you don't want to price so high, you miss the buyers that would look at your property.

Top real estate agents, like myself, that successfully get our clients top dollar understand the good 'ol Econ 101 rules of "Supply & Demand". When you understand where your particular style of home, amenities and neighborhood activity is, then and only then, can you come up with a strategy to beat the current market conditions.

Understanding the market does not come from a computer generated value... or an appraiser's opinion on the value you they give your home. Those do not show what the buyers are willing to do in your area and how they are buying in the current market conditions. In this day an age of technology and the so called "big boy" websites, Sellers are getting mixed information. Unfortunately all too many of them are underpricing or overpricing their property when they try to sell.

I am using this property as an example because it really helps understand how even a few thousand dollars off in value can mean a lot to someone. Real estate should not be a guessing game. There is enough hard data to make sure you price a property correctly for the market.

In the following examples it is amazing how the property values can be so different from each other. They are all big sites, yet prices are all across the board. There is a $17,457 difference between the lowest bid and the highest bid. that is 24% of the value of the property! Would you really trust any sources that were different by 1/4th of the total value of the property?

That difference is a LOT of money for someone that owns a $60-70k price. I will show the true "supply and demand" after you review the so called "best sites to see what my house is worth". The reality is this owner paid $72,600 in 2005. The reality after selling over 1,000 homes in the past 10 years in this down market, and selling over 1,500 homes prior to that since 1991, is that in the KC area, our values did not really drop (for this price range of home) from 2006 to today. That may vary in some areas and price ranges, but for the most part my extensive experience in selling and closing that many homes is that most properties will sell close to what they were bought for if a seller bought from 2006 to 2016. Now, today, the supply and demand is a little off for some areas, and seller's can capitalize and maybe sell for more. Also keep in mind if someone bought a short sale or foreclosure, they gained their equity the day they bought the property. I just helped a young home owner sell his first property and it was a foreclosure he bought for the $70k range, and we sold it in this competitive market for the $130k range with multiple offers... because there is absolutely NOTHING under $130k for sale in that area.





So what might this home really sell for in this market? If we look at the supply and demand, we can determine what the current competition is, and what the current buyers are really paying for properties like this.

Neighborhood activity for the past 6 months ranges from $24k to $103k. There are only 2 properties for sale, and 14 that have sold in the past 6 months. The lowest sale price was $35,000 yet, an agent has listed a property for $24,950. That is $10k lower than the lowest price in the past 6 months. That seller may have been able to make several thousand more with a better strategy. In fact, a few thousand dollars on a property in this price range is a BIG deal! Maybe they could have put $5k in this property and made $10k more... those are the things computers can't tell you.

Similar properties to this particular property have really been selling between $52k-$56k. This shows what 4 actual buyers have paid and closed on in the neighborhood in the past 18 months. If you look at the entire area (city limits and school district), it tells a very different story. The 2 cheapest homes you can even buy in the entire area are $52k and $59,900 and the other 14 properties that are still for sale right now are mostly in the 70k-80k price range... so there is no way I would suggest pricing this property under $60k. If we do the right things to the property and it is an average home, we should be able to price this property at about $75,000 and we will get the same amount of showings if we priced in the $55k range. Part of our success strategy is showing our sellers where the buyers are actually looking at properties.

In this particular report, there are as many showings at 75k as there are at 55k. There are quite a few less showings in the other price ranges, AND there are only 2 homes even priced in the 55k range right now, so those properties are selling as fast as they hit the market, and their real estate agent may have been able to push the price a little to get more.


What many sellers do not understand is the value is not set by you (or your real estate agent). The value of your home is already determined by the active buyers that are currently looking for homes like yours. In fact, if they don't come look at your home, then you are not priced correctly. They drove by, or saw your home on a list either on their computer or from printouts they had. If you positioned your property incorrectly and overpriced it, what you really have done is help sell one of your competitors properties. You may not even think of the other houses as "competition" because you know your property is better. Right? Wrong! Once a buyer makes an offer on another property, you don't get them back. In fact, they probably only move once every 5-7 years, so that buyer is gone forever! You don't get a second chance. If you really want to get top dollar, you need a strategy that makes you more competitive than your current competition. That doesn't mean you have to sell for less, it just means you have to evaluate the current supply and see what the demand has been and come up with a strategy to get the most money possible.

The old real estate saying says there are 3 things that sell property. 1) Price 2) Condition and 3)Location

You can't change your location. Your value on that is already set. You can change the condition however many sellers are being advised to do massive upgrades to get their property sold. In most cases, they may spend $10k, $40k or more updating, and even though they may get more for their property before the upgrade, it is very seldom the amount they spent to do the upgrade. For example, someone spends $20k updating to granite in kitchen and other things. They may actually get $5k more for the house... maybe even get lucky and get $10k.. but they did not get $20k or $40k in most cases. So in essence, they left equity, real dollars on the table. In that same example, if they had priced their house $10k less than the price before they did the upgrades, they would have actually netted $10k more than spending $20k to get $10k higher sale price.

This is why we say, the agent you chose matters.

Look at some real numbers you may not have heard.

In the first six months of 2017 (which is supposed to be some crazy hot sellers market) look at these statistics.

EXPIRED: There were 244 properties that Expired, or did not sell in the first 6 months of the year. In fact, Looking at the full year of 2016, there were over 3,500 properties that tried to sell, and did not sell during their first 6 months on the market.



CANCELLED: There were 1,209 sellers that cancelled their listing agreement with the real estate agent they hired. That is over 100 sellers each month in the Greater KC area that did not get their property sold, and missed buyer opportunities and left equity on the table.



WITHDRAWN: There were 200 sellers that just took their house off the market in the first 6 months of 2017. Most probably took their house off the market because they were not getting showings, or they think they need to do more upgrades because they positioned themselves incorrectly in the market or got bad feedback for the condition of their property.



Selling your home and capitalizing on the current market conditions to maximize your equity and/or profit from the sale of your home is no easy task. It takes experience of selling thousands of homes to know how to truly "read the market" and interpret the market conditions to help our clients take advantage of the current supply and demand.

Contact me if you would like more information about how to interpret current market conditions for your property. bradkornrealtor@gmail.com or 816-224-KORN (5676).




Tuesday, December 27, 2016

12 Days of Christmas and 12 Days to Get Your Home Sold NOW (Waiting till Spring May Cost You THOUSANDS)



The 12 Days of Christmas
is now one of the most famous songs
about receiving a lot of presents

Many people do not know The 12 Days of Christmas actually starts on Christmas Day and last until the evening of the 5th January - also known as Twelfth Night. The 12 Days have been celebrated in Europe since before the middle ages and were a time of celebration.


In the real estate world there is a trend happening that is costing sellers thousands of dollars in equity. Most people list in Spring. In fact, you may be preparing your home for a Spring sale right now. What you want to consider is that most people list in May, June or July. They typically will contract with a real estate agent for 6 months, which will expire in October, November and December. it is convenient and seems harmless for a seller to take their house off the market in October-December to prepare for the Holidays, and take a break... since they have been on the market for 6 months, dealing with showings and all the issues with the showing process that can wear you down when your property has not sold.

Here is what you probably did not know:
From May 1st through July in 2016
2,349 properties that DID NOT SELL It is stunning to know that over 1/2 of the properties that list with a real estate agent does not sell the first time around.



Why are home sellers are missing out on thousands of dollars?
During the Months of November and December 2016 market, The Greater KC area
over 4,300 homes received offers during that time and of those 4,300+ contracts received, over 1,200 of them closed and moved into their new homes for the Holidays. They also took advantage of the current interest rates on that new home. Waiting till spring may not only have cost them thousands of dollars in a lower sale price because of more competition for their buyer, it could have also cost them more on the purchase of their new home in the form of higher interest rate. There is NO equity gain in paying more INTEREST for your home.




What can actually happen on Christmas Eve and Christmas Day?
The Korn Team just received 5 offers on 5 different homes between December 23rd and December 25th. That is 5 home sellers that would not have sold their home if they had taken their home off the market they would not be sold.



We have explained 12 gifts you can have as a home seller by being on the market during the Holidays. Get all the Reasons why NOW is the time to get your home on the market with The Korn Team and get your personal fall strategy to beat the current market conditions before Spring gets here. See the full report here:  www.kornteam.com/holidays

Contact the Korn Team for a personalized strategy plan for your property AND especially if you have tried to sell your home in the past, contact us to find out WHY your home didn't sell and how our proven marketing plan can get you top dollar. The Korn  Team continues to sell an average of 100 homes each year and have sold over 2,300 homes over the past 25 years. Our marketing strategy is getting our client 3-4% higher sale prices over the Kansas City area market average. Let us show you why. Call us directly to schedule a time to meet (816) 224-KORN (5676).


Wednesday, February 03, 2016

Want $2,000 to $12,000 more (or even $25k-$50k for luxury properties) when you sell your property?

ATTENTION Home Owners:
Thinking of selling your property? WHY are you waiting?????


Here are the FACTs and
staggering statistics to YOUR pocket book:


Special message from Brad Korn: Please keep in mind this information is not available to just anyone and the interpretation of the following charts is not known by 95% of the realtors in the area. This is information we know because The Korn Team is selling 4x's more real estate than the average agent. Now you can take advantage of our experience and when you contact us, we will share with you our strategy to get our sellers the most money possible when they sell their homes.

Now is the time to get MORE for your property and get a HIGHER sale price, about 2% higher to be exact. On a $200k home, that is an extra $4,000 that could just not be there. In fact, you will see that this is really more like $12,000 if you do the smart thing, and call the Korn Team who has sold over 2,500 homes over the past 25 years and continues to sell an average of 100 properties each year averaging 98.8% of our list price on Korn Team listings sold. Look at our statistics for sales between the months of November - March at www.kornteam.com/holidays

Here are the current 4th Quarter numbers and what they mean to you as a home owner thinking of selling anytime in the next 6 months to 1 year. Now may be the absolute best time for you to consider selling. You will get more equity from your home AND trade up to a larger home with the lower interest rates.

Interesting statistic: If the interest rate goes up 1% and you are buying a 180k home, you would pay $10,000 more for that home (and the sad thing is it is all interest).

4th Quarter Statistics: provided by the Kansas City Regional Association of Realtors.


 
For Kansas city home owners, the pending sales are up over 13% which means more buyers where making offers on properties in the current market and if you compare that to the actual CLOSED sales, that were only up about 3% there are 3x's MORE buyers writing offers on properties right now. If you thought things slow down over the winter months... you may have missed out on an opportunity for more buyers than ANY other quarter (by the way, this market will continue from January through March. Check out www.kornteam.com/holidays where the Korn Team sold over 280+ properties during the months of November thru March and averaged 98.8% of list price. More easily said, the Korn Team can get you almost 1% higher sale price over all other months throughout the year, and that is 3-4% higher sale prices over the market average.



The current ACTIVE, for sale inventory is DOWN over 27%. Again... LOOK at what this means to you if you are waiting till Spring to sell your home. The number of homes for sale is DOWN 27%, the Pending Sales are UP 13% and when you see the final numbers... you may want to pick up the phone and call The Korn Team right now!!! If you wait till Spring, you could be missing out on $4k-$12k IN YOUR POCKET when you use the Korn Team to help you take advantage of the current market conditions and put together a strategy that will get you the more money than you should be able to get. Remember: it cost you nothing to meet with us, and it could cost you a LOT if you don't! Our strategy meeting is free. We can give you a no cost, no obligation, Brokers price opinion and strategy plan to beat the market.

Another recap: When Supply is LOW and demand is HIGH... that is the perfect time to sell. If you see in the green box, according to the KCRAR reports, Seller activity is going to go up because of the low supply. If you wait until more sellers come on the market, the supply will go up, and if the demand stays where it is, the buyers will have more choices. Simple economics show that when supply is UP and demand is DOWN, or lower now because more properties are for sale now,  the buyers have more choices and will make slightly lower offers AND you will have to seriously consider, or they will go buy their next favorite property.




Here are the numbers that should matter to you, the home owner thinking of selling in the next 6 months to 1 year: Sale prices have gone up 6% and the sellers in Oct-Dec are getting 1% HIGHER sale prices. You will NOT see this after April or May. You have a JUMP On the market right now to  
    #1) Get MORE money when you sell.
    #2) Get MORE house when you buy.

There has never been a time when you can SELL HIGH and BUY LOW. Economics does not allow the 2 to co-exist. Well, right now in the current market conditions, you can sell as high as you are going to, at least until April or May. By June all the summer sellers will be hitting the market driving the supply UP and giving buyers WAY MORE choices. AND....until April or May, because the current inventory is the lowest it has been, and pending sales are way up, AND the list price to sale price ratio is 1% higher AND the interest rates can still be in the 4% range... you are in the best, closest market we will ever see for a Sell Highest you can in this market, and Buy Lower than we have ever seen in any other market. This is the closest market condition where both are existing together.

visit www.kornteam.com for more information about us
call (816) 224-KORN (5676) to schedule a one on one, no cost, no obligation price opinion for your property in the current market conditions.











Tuesday, July 07, 2015

Frustrated Seller: NO Notice for Showings... and Agent left lights on

I had a client that is selling 2 properties with us right now. One is vacant and the other has a renter in the property. He has been really frustrated with the past couple showings.
 
I wanted to share with you my response to him commenting on an agent that gave no notice for a showing and another agent that showed his vacant property and left all the lights on, and the door open.
 
Here was my response to the seller after we made some changes in our listing instructions to do our best to get agents to be more mindful and responsible:
 
*****************************************************
I do apologize for the inconveniences you are experiencing, and selling and buying real estate should be FUN! The thing to really keep in mind is that there is really no common sense "etiquette" taught in most (if all) real estate schools AND most agents only sell one house every month or two... so they never really get great or experienced at selling real estate. Then on top of all that, Buyers only buy a house once every 10 years, and they are just excited about seeing homes and they call ALL the time adding more houses to a list of homes to see, and they especially don't think about whether or not their request was enough time for the seller to prepare.

What you want to know as a seller is that when the buyer throws on a "last minute" showing or even if the agent does... they are probably looking at a bunch of other homes. Every showing that can't be accommodated will 70% of the time just be 'passed over' because they probably have 5-8 other homes they are going to see.

Whether they give you notice or not... you can lose them as a potential buyer. The last minute looker has probably considered your property as a possibility because they weren't finding what they really wanted, and when we can't get the showing through when THEY want to go through, they will talk themselves out of seeing it.

As for agents leaving lights on and doors unlocked... believe me, I GET that is so frustrating and for our industry as a whole, I am embarrassed that someone could go into another persons home, and not treat it like their own, or respect the fact that they are in a strangers home. AGAIN, the reality is, we want every agent to show to every buyer whenever they can get the to look even if they don't give us notice (for the reasons above). AND along with that comes making the property available to agents that sell 4-10 homes per year. In fact, the National Association of Realtors sends out stats that show the average Realtor sells 4-6 homes per year. That is truly not enough sales to understand the level of professionalism full time Realtors would LOVE to see in our industry.

So, my advice to every one of our clients is in order to make sure you get the most money and most equity for your property and to make absolutely sure you sell as fast as possible is to accommodate every showings no matter what. When you do have to cancel or change a showing, even for all the reasons above, just say to yourself "Even if this is the buyer that will buy my house right now, and pay the most money for my house, I don't want to sell my house today". I know this is a little harsh, but 24 years and over 2500 sales... it is the best advice I can give every client.
********************************************
 
The Korn Team has sold over 2500 properties over the past 24 years and we bring ALL the advice and professionalism to our clients to best take advantage of the current market conditions for their market. We are glad to help you understand HOW to beat the market and HOW to get the most equity possible when you are selling a home.