A Kansas City Real Estate Blog by Realtor, Sarah Snodgrass

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Okay, so my chimney needs work. It is spalling and it needs to be repointed. Translation = the mortar has deteriorated and we need to repair and replace the mortar between the brick joints. This leads me to a topic close to my heart - will making this repair add value to my home? For example, if I were to put my house on the market next Spring, would I add this into how much I want to get back out of my house? The answer to this question should be no. The reason is simple: Repointing a chimney is a REPAIR, not an IMPROVEMENT. Same with a new roof, a new driveway, a new furnace, etc… These are things that make the house retain its fair market value. If the roof were old and deteriorated, or had three layers, I would tell you to subtract value from the house. If it is in good shape or new, you are at fair market value. Things that might add value are remodels, additions, upgrades.

Many people keep a running total of every penny they spend on their house, then when they call me to sell it for them, they want to get the price they paid plus the sum of what they have spent on the house. Well, I don’t mean to sound rude, but what does this really have to do with anything? The price of your house is determined by the market, not by how much you spent maintaining your property. It’s the price of home ownership- it ain’t cheap, but it sure is fun!

Urban Mining sent me an email today about the Uptown’s GREEN FEST coming up next week. It’s going to be at the Uptown Theater and in the big lot at the Uptown Shoppes just next door to the north. Those shops were the previous home of the Apple Market, and some other shops that I can’t remember. Evidently the word on the street is that the owner of the Uptown wants to clean it up and make it a more upscale shopping center sans crime and grime. Anyway, it appears the festival will have food, music, and vendors to help you learn about living green…

Last weekend, I threw a block party with the neighbors on my street and our friends. We obtained a block party permit from the city so that we had permission to block off the street. It was super easy and free. What a great way to get to know your neighbors and build community spirit. We had a band, keg, food, games… It was a total blast.

Do you belong to a homes association? If so, you should get involved. Mine has great events throughout the year such as a neighborhood garage sale, dumpster day where you can get rid of all the nasty trash in your house such as old paint, a neighborhood summer social at a nearby park, movie night under the stars, plus we have begun a crime prevention team. I really feel like I live in a great neighborhood where people care and look out for each other.

Kansas City’s city goverment website has a list of all the neighborhood groups and homes associations. You can see if yours is represented.

In preparation for my neighborhood block party this weekend, a couple neighbors and I took a trip to Bichelmeyer’s in Kansas City, Kansas today to buy pork butts. This place is so cool - fresh meat, homemade bologna, sausages…  The Bichelmeyer meat market opened in 1946, and is still going strong. It is a favorite of local meat connoisseurs and a great place to pick up BBQ supplies, especially for competition BBQ teams.

Someone posed the question to me recently, “Should you mix business with friendship?” My answer was a resounding, “Yes!” Working with friends is really a great thing to do in real estate. When it comes to buying and selling homes, the two most important things between agent and client are good communication and trust, two things which most people already have established with their friends. Think about it - who will work harder, care more about you and what happens to you, and will try to give you the best deal possible that a friend? Another benefit to working with a friend is that you will be spending alot of time with your realtor, so it is always more fun if you are friends too! Many times people do not use their realtor/friend because they are worried about hurting their friendship - well, they actually may hurt the friendship more by not using that realtor/friend. It can be very hurtful to find out that a friend used a stranger instead of you without even discussing their concerns.

When NOT to use a friend in Real Estate (or to just think twice about it):

• When that friend isn’t well trained
• When that friend lacks brain power (translation: dumb or ditzy)
• If that friend has a full time job doing something else and just “dabbles” in real estate
• When that friend doesn’t have a strong company and network behind them

When you should use your friend in real estate:

• When you trust this person
• If you think this person is smart and well-trained
• If you think this person is a hard worker and shows initiative
• If you enjoy being around this person
• If you think they will easily understand your style and what type of home you will want

If you are still worried, call their broker (boss) and ask questions about your friend’s training and client history. Ask for testimonials and references. Ask if they have worked with friends in the past and call them to talk about how it went. Personally, I care about all of my clients and I make it my policy to treat all of my clients the same, whether they are friend or stranger. I follow the golden rule by treating people just as I would want to be treated.

p.s. The photo above is of me and two friends who were also clients last year when they purchased their first home using me as their agent. We all lived happily ever after - especially when we celebrated the Jayhawk Men’s NCAA Basketball championship this Spring in Lawrence together as shown in the photo.

So, as you all know, I wish I was a restaurant reviewer. I love food, cooking, and dining out in KC. I tried the new pizza place in Brookside over the weekend called Blue Grotto (couldn’t find a website for them - they need one!). There were things I loved about the pizza, and some things I might have changed, but overall it was really good wood-fired oven pizza. I loved the crust and the cheese, and the toppings were fresh and creative. The sausage pizza was outstanding - I think they make the sausage in-house, and boy was it yummy. I thought the restaurant was designed very nicely too, but the next time we go I think we will probably just get a couple of beers at the bar and share a pizza instead of getting a table.

Kansas City Lunch Spots wrote about my other favorite pizza place in the area, Pizza 51. I love Pizza 51, it’s my go-to place. It’s great to take clients when we are out looking for homes because it is delicious, casual, fast, comfortable, cheap, and because everbody likes pizza!

Noodletown writes about a new spot in Westport, The Foundry… I think I heard about this on the food critics, but I have yet to check it out. With a good report from Noodletown, I will definitely be adding it to my list of places to try!

Interest Rates are down.

East Village may not happen. I can’t say that I am that surprised to hear that the development company is pulling out of the residential project right now with the slow market and extremely high amount of condo/loft/townhome inventory available in the downtown market right now. I calculated the absorption rate for condos/lofts/townhomes from downtown to the Plaza, and, at the rate properties have been selling, it would take 2 years (about 23 months) for the market to “absorb” all these properties.

• A six months supply signifies a balanced market.
• Less than six months supply reflects a sellers’ market.
• More than six months supply reflects a buyers’ market, which is what we have here.

I am starting to see some incredible deals out there and prices are dropping in response to the current market situation.

The media is so strange - I keep hearing about how the President didn’t want to sign this housing rescue bill and all that drama, but I haven’t heard much about exactly what details are in the bill. The National Association of Realtors has a good summary on their website, although CNN’s article might be a little easier to read for those not in the industry. The main aspects that will affect my clients and business are the FHA loan downpayment requirement going from 3% to 3.5%, the seller-funded downpayment assistance programs, and the homebuyer tax credit. The Wikipedia entry on the Housing and Economic Recovery Act of 2008 is the most thorough explanation of the tax credit I could find. 

The June numbers are out and it is more of the same. It is definitely a slow, buyer’s market out there. And prices are still down from last year, but not by much. The actual amount of inventory is still falling which is good, but so are the number of sales per month. The sales data I receive is for Jackson County, Missouri, and Johnson County, Kansas, and the numbers are definitely rosier in Johnson County. Comparing June 2008 to last June 2007, the average sales price is down 8% in Jackson County, and only down 2% in Johnson County. Below is a chart illustrating the actual number of sales (not prices), for the entire metro MLS area. The neon light green color is 2008 numbers. You will see that the number of sales has been pretty steady over the course of this year, but still falling from previous years. With gas prices so high and the continued effects of the mortgage meltdown, I do not anticipate any sort of a rebound this year, but maybe after the election we may begin to see a light at the end of the tunnel. In the mean time, it is a major buyer’s market and rates are still good so I suggest that people really take advantage of this time while it lasts.

If you are looking for a loft or condo in the city, I really recommend looking at Wallstreet Towers. Yes, this is the building where I have a new listing for sale, but I swear it is my absolute favorite condo development downtown and here is why:

1. The Architecture of the building - this is a modern glass, steel and concrete building that makes for very contemporary living spaces with walls of windows, outstanding views and high ceilings.
2. The Rooftop Pool & Deck - the rooftop pool opened this year, and it is reason enough to buy a condo here. It is located on the sunny roof of the adjacent parking garage which is an 11 story garage. It is like swimming in the sky. The pool itself is very large and modern with two sections - one being an infinity style pool. Also, there are plenty of lounge chairs and deck area surrounding for laying out in the sun. You can also find Grills for BBQing and an awesome putting green for the golf lovers.
3. Location - You are on the best street downtown. Walnut Street has less traffic than other streets such as Grand, Main or Broadway, and it has plenty of street and garage parking. Also, Walnut is the street that runs straight down into The City Market, so you can walk down there year round for the weekly Farmer’s Market. Walnut also runs through the Power and Light District so you can walk to the bars, restaurants, or the Sprint Center.
4. Pet Policy - I have a boxer dog named Chester who is the love of my life, so the fact that this is a very pet friendly building is a huge benefit. There is a convenient city park next door where people take their puppies to potty. The condo is spacious enough that I think Chester would be very comfortable living here. Also, it is a short walk to the Riverfront Heritage Trail which my very active puppy would love.
5. Party Spaces - There are FOUR places in the building where you can host a party. First, your condo. The one I have listed has huge open spaces which the sellers claim have been great for parties. You have an open living/dining/kitchen area, with a guest half-bath nearby. Second, the Party Room on the 4th Floor of the building. Here you will find a big party room with a pool table, an outdoor deck (great for smokers) and a kitchen to make catering or food prep easy. Third, the rooftop pool and patio. You could host a legendary poolside rooftop party for all your friends, and even BBQ for them. Fourth, the theater room. Have all your pals over to watch a KU Basketball game!

Last week I visited the opening of the Haden Lofts. This is a condo conversion from an old commercial brick building in the Crossroads area located at Broadway and Southwest Boulevard, just around the corner from one of my favorite local eateries, Lulu’s Noodles. I am not sure how many units there are in the building (over 22 different floor plans), but there are currently 5 listed for sale in MLS ranging in price from $260,260-$587,160. I think some of them might still be under construction.

Anyway, my impression of this development was positive. It is for people who want a crossroads location, and something in the “loft” style, with exposed pipes, high open ceilings, big windows, and brick walls. Evidently there is parking, and amenities include an exercise gym and free internet service. The standard finishes (kitchen and bath) were pretty tame, but they have upgrades and personalized options available. Of the five or so lofts I viewed, I saw several unique floorplans with lofted rooms, skylights and creative use of space.

Hey readers… It has been a busy week for me, and now I’m leaving for the Royals game - but I wanted to quickly feature my brand new awesome listing in Wallstreet Towers. For those of you who don’t know, Wallstreet Towers is my favorite condo development downtown. More to come later, but for now the listing is online, and here are a couple photos. (Most awesome pool in KC by the way - it is on the rooftop of an 13-story parking garage).