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Is a real estate attorney cheaper than a realtor? FSBO Lawyer on How to buy or sell a House without a realtor when buying or selling in Kansas City, KS & Saint Louis, Missouri, MO from a family member, friend, relative or other real estate arrangment legal assistance.  Is a real estate attorney cheaper than a realtor? FSBO Lawyer on How to buy or sell a House without a realtor when buying or selling in Kansas City, KS & Saint Louis, Missouri, MO from a family member, friend, relative or other real estate arrangment legal assistance. 

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Monthly Archives: October 2014

17Oct/14

Homebuilder confidence is falling

October 17, 2014How to buy or sell a House for sale by owner without a Realtor buying or selling in Kansas City & Saint Louisadmin

Homebuilders’ confidence fell in October 2014 after four months of gains that had pushed the indicator to the highest level in nine years.

17Oct/14

Mortgage rates tumble

October 17, 2014How to buy or sell a House for sale by owner without a Realtor buying or selling in Kansas City & Saint Louisadmin

Mortgage rates tumbled this week.  The 30 loan hit its lowest since June 2013 as Treasury bond yields marked new lows amid concern over global economic weakness.

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📰 Buying & Selling a House with no real estate agent news

  • Is a real estate attorney cheaper than a realtor
  • INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST-TIME HOME BUYERS
  • OPEN DOOR TO PAY $62,000,000.00 FOR DECEPTIVE TRADE PRACTICES
  • EVERYTHING YOU NEED TO KNOW ABOUT REAL ESTATE CONTRACTS
  • LAND TRUSTS – THE ULTIMATE ASSET PROTECTION
  • INTEREST RATES VS. PROPERTY VALUE
  • 3 DIFFERENT TYPES OF COMMERCIAL REAL ESTATE LEASES
  • WHAT IS A NOVATION AGREEMENT? NOVATION VS ASSIGNMENT
  • TYPICAL STEPS IN AN FSBO HOME SALE TRANSACTION
  • WHAT IS A GIFT OF EQUITY AND HOW DOES IT WORK?
  • LAND PATENT
  • WHAT IS A GIFT OF EQUITY?
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  • IF YOU ARE A PURCHASER OF AN INVESTMENT PROPETY YOU NEED TO OBTAIN AN ETOPPEL CERTIFICATE TO AVOID LAWSUITS AND POTENTIAL CLOUDS ON TITLE
  • PENDING RENTER CRISIS
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  • PURCHASING A PROPERTY SUBJECT TO
  • REPAYING THE FIRST TIME HOME BUYERS CREDIT
  • ASSIGNMENT AND ASSUMPTION AGREEMENTS
  • EXECUTORS DEED VS. ADMINISTRATORS DEED
  • IS AN ORAL AGREEMENT FOR THE SALE OF REAL ESTATE ENORCEABLE IN MISSOURI?
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  • EFFECTS OF INFLATION ON REAL ESTATE
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How to buy or sell a House from owner without a Realtor in KS or MO

Is a real estate attorney cheaper than a realtor

Is a Real Estate Attorney Cheaper Than a Realtor? Short answer: Yes. ( Book a video call with Real Estate Attorney, Mark Roy for legal help. ) Yes—in many Kansas City and St. Louis real estate transactions, especially For Sale By Owner (FSBO), hiring a flat-fee real estate attorney like Mark Roy can be significantly cheaper than paying traditional commission to a realtor. While agents charge a percentage, attorneys often charge a flat rate, saving thousands. Cost Comparison in Kansas City, KS & St. Louis, MO between a realtor and an attorney. Service Realtor Real estate Attorney Fee Model 5–6% Commission Flat Fee Average Cost on $300K Sale $15,000–$18,000 $1,000–$1,800 Best For Full MLS listing, marketing FSBO, family transfers, cash deals Licensing Real estate license Licensed attorney in KS & MO Legal Risks: Attorney vs Realtor Realtors are great at marketing and negotiation but are not legal experts. If a dispute arises over: Incomplete disclosures Boundary or easement issues Lien or title problems You may still need a lawyer. Hiring an attorney up front reduces legal exposure and gives you peace of mind. Pricing Scenarios and Savings Estimates Situation Realtor Real Estate Attorney Estimated Savings FSBO in KC, KS $15,000 $1,400 $13,600 Family sale in STL, MO $14,000 $1,200 $12,800 Home under $150K $9,000 $1,000 $8,000 Benefits of Hiring Real Estate Attorney Mark Roy vs. a realtor 🏡 Specialized FSBO Experience ⚖️ Dual State Licensure 🧾 Flat Fee Pricing 📄 Contracts, Closings, and Deeds Done Right 🧠 Deep Legal Knowledge for Unique Sales 💼 Small Business & Investment Transactions 💻 Remote Access and Document Prep Sell or Buy a Home with an Attorney, it's usually cheaper than using a Realtor Schedule a consultation with Mark Roy. Determine the property’s fair market value. Prepare state-approved contracts and disclosures. Conduct inspections (if required). Coordinate title, deed, and legal filings. Close the transaction with attorney review. Helpful Link: How to Buy or Sell a House Without a Realtor Legal Help for Selling to Family, Friends, or Relatives FSBO transfers involving relatives (parents, children, siblings, or friends) often include: Gift tax implications IRS reporting Legal title work Conflict avoidance Mark Roy’s services ensure the sale is legally sound and emotionally smooth. Can You Use an Attorney and a Realtor Together? Yes. In complex or high-value deals, some clients hire both: The realtor handles marketing and showings. The attorney reviews contracts, disclosures, and title. Free FSBO Templates & Legal Forms Mark Roy provides downloadable forms for: FSBO Sales Agreements Missouri Seller Disclosure Forms Deed Templates Lead-Based Paint Addendums Power of Attorney for Closings 👉 Visit FSBO Resources to download. FAQ Q: Is an attorney required in Missouri or Kansas real estate deals? A: Not always, but highly recommended—especially for FSBO, inherited property, or complex financing. Q: Can I sell without a realtor legally? A: Absolutely. FSBO is 100% legal. With a lawyer, you ensure compliance and protect both parties. Q: Can I use an attorney if my buyer has a realtor? A: Yes. The buyer pays their agent; you’re not obligated to pay their fee. Q: Can Mark Roy help remotely? A: Yes, he offers video consultations and digital closings for clients throughout Missouri and Kansas. Conclusion Hiring a real estate attorney like Mark Roy is often cheaper and legally safer than using a traditional realtor—especially in FSBO deals across Kansas City and St. Louis. Whether you're selling to family or navigating title issues, legal guidance ensures compliance and saves money. Visit https://www.fsbomidwest.com/ to schedule a free consultation and download legal resources today. Understanding FSBO in Kansas City and St. Louis For Sale By Owner (FSBO) transactions are increasingly popular in Kansas City, KS and St. Louis, MO due to the desire to save on high realtor commissions. FSBO allows homeowners to take control of the selling process while working directly with buyers. This model is especially advantageous in tight-knit communities, where buyers and sellers may know one another or already have a verbal agreement in place. However, the legal complexity of even seemingly simple real estate transactions means it is critical to retain a knowledgeable attorney. In both Missouri and Kansas, FSBO sellers are responsible for adhering to state and federal real estate disclosure laws, contract execution standards, and title conveyance protocols. An experienced FSBO attorney ensures that all necessary legal forms are filed correctly and that your transaction complies with local statutes. In states like Missouri, failure to disclose certain property conditions can result in litigation—even years after the sale. Title Services and Due Diligence Title services are a crucial part of any real estate transaction. Whether you are selling to a stranger or a family member, you must confirm that the title is clean—free from liens, encroachments, or unresolved ownership claims. Title searches, often coordinated by your FSBO attorney, uncover any such issues that could delay or derail a sale. If issues arise, Mark Roy is equipped to file quiet title actions or help clear existing liens, ensuring your property is ready for a smooth legal transfer. Due diligence also involves verifying zoning restrictions, property tax history, and special assessments. For example, in Kansas City, you may encounter properties subject to improvement district fees or historical preservation rules. In St. Louis, sellers may need to clear city occupancy inspections before transfer. Having a local FSBO attorney manage these tasks protects both parties and reduces post-sale disputes. Using FSBO to Sell Inherited Property Inherited properties often come with legal baggage. Probate, family disputes, outdated deeds, or unclear ownership can make these sales risky. FSBO attorneys are invaluable in these situations. Mark Roy regularly helps families in Kansas City and St. Louis navigate inherited home sales, especially when heirs want to avoid realtor commissions and sell quickly. He can draft or review partition agreements, resolve deed discrepancies, and assist in estate settlement coordination. Even if the property has not gone through probate yet, a knowledgeable FSBO attorney can help initiate proceedings or find creative alternatives like affidavits of heirship, depending on the state and circumstances. This allows family members to complete a legally sound sale faster and often with less cost than involving realtors unfamiliar with estate law. FSBO vs Realtor Timeline Step Realtor Real Estate Attorney Initial consultation 1–2 days Same day Property listing 1–2 weeks for staging and MLS Seller sets terms immediately Offer negotiation 1–4 weeks 1–2 weeks Contract execution Via agent, may delay legal review Attorney-drafted and reviewed Closing 30–60 days As fast as 14–30 days With FSBO and attorney support, you control the pace and skip unnecessary delays, which is a major benefit for motivated sellers or those working with cash buyers. FSBO for Buyers Looking to Avoid Agent Fees Buyers can also benefit from FSBO transactions. In traditional sales, the seller usually pays both the listing agent and the buyer’s agent. But in FSBO deals, if the buyer comes unrepresented, those commissions are saved entirely. This can lead to better negotiated prices, especially when a buyer and seller split the savings or use the extra funds for upgrades, repairs, or closing costs. Buyers should still consult a real estate attorney before signing any contract. Mark Roy can represent buyers in Kansas and Missouri FSBO transactions, helping ensure that the buyer’s rights are protected while the deal remains fair and legal. Key Differences between a Realtor & an Attorney Feature Realtor Real Estate Attorney Commission Cost 5–6% of price Flat fee ($1K–$2K) Legal Protection Basic; contract forms Full legal review & compliance Control Over Sale Shared with agent Seller controlled Documentation Prepared by brokerage Attorney-prepared Title Issues Referred to 3rd party Resolved in-house Should Still Use a Realtor even though it's cheaper to hire a Real Estate Attorney? While FSBO is a great option for many, there are still circumstances where a realtor adds value: You lack time or willingness to handle showings and negotiations. Your property needs professional marketing exposure. You’re unfamiliar with pricing strategies. In these cases, you can still retain an attorney like Mark Roy to provide contract oversight, legal review, and closing coordination—ensuring legal integrity even when working with

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST-TIME HOME BUYERS

INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST-TIME HOME BUYERS Democratic lawmakers are scrutinizing whether the American dream of a suburban home and white picket fence is being seized upon by large institutional investors, costing working people a shot at property ownership. The House Financial Services Subcommittee on Oversight and Investigations held the virtual panel Tuesday, titled “Where Have All the Houses Gone? Private Equity, Single Family Rentals, and America’s Neighborhoods,” to probe the impacts of firms engaging in what Rep. Al Green, the subcommittee’s chair, dubbed “mass predatory purchasing.” Shad Bogany, a real estate agent and advocate who testified before the committee, also said that institutional investors are “creating a generation of renters that will miss out on the benefits of homeownership, the ability to create wealth and stabilize communities.” “Congress, we need you to act,” Bogany said. Corporate ownership of single-family rental homes — which comprise about a third of the nation’s rental housing stock — has risen significantly since the 2008 financial crisis, when firms swooped in to purchase foreclosed properties, according to a committee memorandum. And the third quarter of 2021 marked the fastest annual increase in corporate ownership in 16 years, the memorandum said. What’s more, as the housing market grew hotter, and prices skewed higher, the investors had the advantage of being able to purchase homes with cash, trumping first-time and lower-income buyers. ‘After an extensive investigation into this practice, we have found that private equity companies have bought up hundreds of thousands of single-family homes and placed them on the rental market.’ — Rep. Al Green, the Democratic chair of the House Financial Services Subcommittee on Oversight and Investigations In the Atlanta metro area, 42.8% of for-sale homes went to institutional investors in the third quarter of 2021, while investors purchased 38.8% of homes in the Phoenix-Glendale-Scottsdale area during the same period, the committee’s memorandum said. “After an extensive investigation into this practice, we have found that private equity companies have bought up hundreds of thousands of single-family homes and placed them on the rental market,” Green, a Democratic congressman from Georgia, said during the hearing Tuesday. “This removes from the housing market homes that might otherwise have been purchased by individual homeowners,” he added. “These corporate buyers have tended to target lower-priced starter homes requiring limited renovation; these homes would likely have been bought by first-time buyers, low- to middle-income home-buyers, or both.” The homes, Green said, are often located in communities with higher-than-average populations of people of color. For example, the average population of five large investors’ top 20 ZIP codes is about 40% Black, although Black people comprise just 13.4% of the overall population in the U.S. according to to survey data from Invitation Homes, INVH, +0.64% American Homes 4 Rent AMH, +0.42%, FirstKey Homes, Progress Residential, and Amherst Residential, as well as an analysis of government data, according to the committee’s memorandum.   The average population of five large investors’ top 20 ZIP codes is about 40% Black, although Black people comprise just 13.4% of the overall population in the U.S. Republicans, however, said during the hearing that the Biden administration was to blame for rising prices and accused Democrats of scapegoating Wall Street while attempting to distract people from the worst inflation in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

OPEN DOOR TO PAY $62,000,000.00 FOR DECEPTIVE TRADE PRACTICES

  The Federal Trade Commission today took action against online home buying firm Opendoor Labs Inc., for cheating potential home sellers by tricking them into thinking that they could make more money selling their home to Opendoor than on the open market using the traditional sales process. The FTC alleged that Opendoor pitched potential sellers using misleading and deceptive information, and in reality, most people who sold to Opendoor made thousands of dollars less than they would have made selling their homes using the traditional process. Under a proposed administrative order, Opendoor will have to pay $62 million and stop its deceptive tactics. “Opendoor promised to revolutionize the real estate market but built its business using old-fashioned deception about how much consumers could earn from selling their homes on the platform,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “There is nothing innovative about cheating consumers.” Opendoor, headquartered in Tempe, Arizona, operates an online real estate business that, among other things, buys homes directly from consumers as an alternative to consumers selling their homes on the open market. Advertised as an “iBuyer,” Opendoor claimed to use cutting-edge technology to save consumers money by providing “market-value” offers and reducing transaction costs compared with the traditional home sales process. Opendoor’s marketing materials included charts comparing their consumers’ net proceeds from selling to Opendoor versus on the market. Those charts almost always showed that consumers would make thousands of dollars more by selling to Opendoor. In fact, the complaint states, the vast majority of consumers who sold to Opendoor actually lost thousands of dollars compared with selling on the traditional market, because the company’s offers have been below market value on average and its costs have been higher than what consumers typically pay when using a traditional realtor. The agency’s investigation found that Opendoor also violated the law by misrepresenting that: Opendoor used projected market value prices when making offers to buy homes, when in fact those prices included downward adjustments to the market values; Opendoor made money from disclosed fees, when in reality it made money by buying low and selling high; consumers likely would have paid the same amount in repair costs whether they sold their home through Opendoor or in traditional sales; and consumers likely would have paid less in costs by selling to Opendoor than they would pay in traditional sales. Enforcement Action Opendoor has agreed to a proposed order that requires the company to: Pay $62 million: The order requires Opendoor to pay the Commission $62 million, which is expected to be used for consumer redress. Stop deceiving potential home sellers: The order prohibits Opendoor from making the deceptive, false, and unsubstantiated claims it made to consumers about how much money they will receive or the costs they will have to pay to use its service. Stop making baseless claims: The order requires Opendoor to have competent and reliable evidence to support any representations made about the costs, savings, or financial benefits associated with using its service, and any claims about the costs associated with traditional home sales. The Commission vote to accept the consent agreement was 5-0. The FTC will publish a description of the consent agreement package in the Federal Register soon. The agreement will be subject to public comment for 30 days, after which the Commission will decide whether to make the proposed consent order final. Instructions for filing comments appear in the published notice. Once processed, comments will be posted on Regulations.gov. NOTE: When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $46,517. The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EVERYTHING YOU NEED TO KNOW ABOUT REAL ESTATE CONTRACTS

EVERYTHING YOU NEED TO KNOW ABOUT REAL ESTATE CONTRACTS A real estate contract is a contract between parties for the purchase and sale, exchange, or other conveyance of real estate. The sale of land is governed by the laws and practices of the jurisdiction in which the land is located. Real estate called a leasehold estate is actually a rental of real property such as an apartment, and leases (rental contracts) cover such rentals since they typically do not result in recordable deeds. Freehold (“More permanent”) conveyances of real estate are covered by real estate contracts, including conveying fee simple title, life estates, remainder estates, and freehold easement. Real estate contracts are typically bilateral contracts (i. e., agreed to by two parties) and should have the legal requirements specified by contract law in general and should also be in writing to be enforceable. Details explained in the contract In writing It is a legal requirement in all jurisdictions that contracts for the sale of land be in writing to be enforceable. The various Statutes of Frauds require contracts for the sale of land to be in writing. In South Africa, the Alienation of Land Act specifies that any agreement of sale of immovable property must be in writing. In Italy, each transfer of real estate must be registered in front of a notary public in writing. The common practice is for an “exchange of contracts” to take place. This involves two copies of the contract of sale being signed, one copy of which is retained by each party. When the parties are together, both would usually sign both copies, one copy of which would be retained by each party, sometimes with a formal handing over of a copy from one party to the other. However, it is usually sufficient that only the copy retained by each party be signed by the other party only. This rule enables contracts to be “exchanged” by mail. Both copies of the contract of sale become binding only after each party is in possession of a copy of the contract signed by the other party—ie., the exchange is said to be “complete”. An exchange by electronic means is generally insufficient for exchange unless the laws of the jurisdiction expressly validate such signatures. A contract for the sale of land must: Identify the parties: The full name of the parties must be on the contract. In a sales contract, the parties are the seller(s) and buyer(s) of the real estate, who are often called the principles to distinguish them from a real estate agent who are effectively their intermediaries and representatives in the negotiation of the price. If there are any real estate agents brokering the sale, they are typically listed also as the real estate brokers/agents who would earn the commission from the sale. Identify the real estate (property): At least the address, but preferably the legal description must be on the contract. Identify the purchase price: The amount of the sales price or a reasonably ascertainable figure (an appraisal to be completed at a future date) must be on the contract. Include signatures: A real estate contract must be entered into voluntarily (not by force) and must be signed by the parties. Have a legal purpose: The contract is void if it calls for illegal action. Involve Competent parties: Mentally impaired, drugged persons, etc. cannot enter into a contract. Contracts in which at least one of the parties is a minor are voidable by the minor. Reflect a meeting of the minds: Each side must be clear and agree as to the essential details, rights, and obligations of the contract. Include Consideration: Consideration is something of value bargained for in exchange for the real estate. Money is the most common form of consideration, but other consideration of value, such as other property in exchange, or a promise to perform (i.e. a promise to pay) is also satisfactory. Notarization by a notary public is normally not required for a real estate contract, but many recording offices require that a seller’s or conveyor’s signature on a deed be notarized to record the deed. The real estate contract is typically not recorded with the government, although statements or declarations of the price paid are commonly required to be submitted to the recorder’s office. Sometimes real estate contracts will provide for a lawyer review period of several days after the signing by the parties to check the provisions of the contract and counter propose any that are unsuitable. If there are any real estate brokers/agents brokering the sale, the buyer’s agent will often fill in the blanks on a standard contract form for the buyer(s) and the seller(s) to sign. The broker commonly gets such contract forms from a real estate association he/she belongs to. When both buyer and seller have agreed to the contract by signing it, the broker provides copies of the signed contract to the buyer and seller. Offer and acceptance As may be the case with other contracts, real estate contracts may be formed by one party making an offer and another party accepting the offer. To be enforceable, the offers and acceptances must be in writing (Statute of Frauds Common Law)and signed by the parties agreeing to the contract. Often, the party making the offer prepares a written real estate contract, signs it, and transmits it to the other party who would accept the offer by signing the contract. As with all other types of legal offers, the other party may accept the offer, reject it (in which case the offer is terminated), make a counteroffer (in which case the original offer is terminated), or not respond to the offer (in which case the offer terminates by the expiration date in it). Before the offer (or counteroffer) is accepted, the offering (or countering) party can withdraw it. A counteroffer may be countered with yet another offer, and a counteroffering process may go on indefinitely between the parties. To be enforceable, a real estate contract must possess original signatures by the parties and any alterations to the contract must be initialed by all the parties involved. If the original offer is marked up and initialed by the party receiving it, then signed, this is not an offer and acceptance but a counter-offer. Deed specified A real estate contract typically does not convey or transfer ownership of real estate by itself. A different document called a deed is used to convey real estate. In a real estate contract, the type of deed to be used to convey the real estate may be specified, such as a warranty deed or a quitclaim deed. If a deed type is not specifically mentioned, “marketable title” may be specified, implying a warranty deed should be provided. Lenders will insist on a warranty deed. Any liens or other encumbrances on the title to the real estate should be mentioned up front in the real estate contract, so the presence of these deficiencies would not be a reason for voiding the contract at or before the closing If the liens are not cleared before by the time of the closing, then the deed should specifically have an exception(s) listed for the lien(s) not cleared. The buyer(s) signing the real estate contract are liable (legally responsible) for providing the promised consideration for the real estate, which is typically money in the amount of the purchase price. However, the details about the type of ownership may not be specified in the contract. Sometimes, signing buyer(s) may direct a lawyer preparing the deed separately on what type of ownership to list on the deed and may decide to add a joint owner(s), such as a spouse, to the deed. For example, types of joint ownership (title) may include tenancy in common, joint tenancy with right of survivorship, or joint tenancy by the entireties. Another possibility is ownership in trust instead of direct ownership. Contingencies Contingencies are conditions that must be met if a contract is to be performed. Contingencies that suspend the contract until certain events occur are known as “suspensive conditions”. Contingencies that cancel the contract if a certain event occurs are known as “resolutive conditions”. Most contracts of sale contain contingencies of some kind or another because few people can afford to enter into a real estate purchase without them. But it is possible for a real estate contract not to have any contingencies. Some types of contingencies which can appear in a real estate contract include: Mortgage contingency – Performance of the contract (purchase of the real estate) is contingent upon or subject to the buyer getting a mortgage loan for the purchase. Usually, such a contingency calls for a buyer to apply for a loan within a certain period of time after the contract is signed. Since most people who buy a house require financing to complete their purchase, mortgage contingencies are one of the most common types of contingencies in real property If the financing is not secured, the buyer may unilaterally cancel the contract by stating that his or her condition has not or will not be satisfied or allow the contract to expire by declining to waive the condition within the specified time period. Inspection contingency – Another buyer’s condition. Purchase of the real estate is contingent upon a satisfactory inspection of the real property revealing no significant defects. Contingencies could also be made on the satisfactory repair of a certain item associated with the real estate. another sale contingency – Purchase or sale of the real estate is contingent on a successful sale or purchase of another piece of real estate. The successful sale of another house may be needed to finance the purchase of a new one. appraisal contingency – Purchase of the real estate is contingent upon the contract price being at or below a fair market value determined by an appraisal. Lenders will often not lend more than a certain percentage (fraction) of the appraised value, so such a contingency may be useful for a buyer. 72-hour kick out contingency- Seller contingency, in which the seller accepts a contract from a buyer with a contingency (typically a home sale or rent contingency where the buyer conditions the sale on their ability to find a buyer or renter for their current property prior to settlement). The seller retains the right to sell the property to another party if he so chooses after giving the buyer 72 hours’ notice to remove their contingency. The buyer will then either remove their contingency and provide proof that they can consummate the sale or will release the seller from their contract and allow the seller to move forward with the new contract. Date of closing and possession A typical real estate contract specifies a date by which the closing must occur. The closing is the event in which the money (or other consideration) for the real estate is paid for and the title (ownership) of the real estate is conveyed from the seller(s) to the buyer(s). The conveyance is done by the seller(s) signing a deed for the buyer(s) or their attorneys or other agents to record the transfer of ownership. Often other paperwork is necessary at the closing. The date of the closing is normally also the date when possession of the real estate is transferred from the seller(s) to the buyer(s). However, the real estate contract can specify a different date when possession changes hands. Transfer of possession of a house, condominium, or building is usually accomplished by handing over the key(s) to it. The contract may have provisions in case the seller(s) hold over possession beyond the agreed date. The contract can also specify which party pays for what closing cost(s). If the contract does not specify, then there are certain customary defaults depending on the law, common law (judicial precedents), location, and other orders or agreements, regarding who pays for which closing costs. Condition of property A real estate contract may specify in what condition the property should be when conveying the title or transferring possession. For example, the contract may say that the property is sold as-is, especially if demolition is intended. Alternatively, there may be a representation or a warranty (guarantee) regarding the condition of the house, building, or some part of it such as affixed appliances, HVAC system, etc. Sometimes a separate disclosure form specified by a government entity is also used. The contract could also specify any personal property (non-real property) items which are to be included with the deal, such as the washer and dryer which are normally detachable from the house. Utility meters, electrical wiring systems, fuse or circuit breaker boxes, plumbing, furnaces, water heaters, sinks, toilets,  cabinets, ceiling fans, door handles, plumbing fixtures, and most central air conditioning systems are normally considered to be attached to a house or building and would normally be included with the real property by default. Riders Riders (or addenda) are special attachments (separate sheets) that become part of the contract in certain situations. Earnest money deposit Although money is the most common consideration, it is not a required element to have a valid real estate contract. An earnest money deposit from the buyer(s) customarily accompanies an offer to buy real estate and the deposit is held by a third party, like a title company, attorney, or sometimes the seller. The amount, a small fraction of the total price, is listed in the contract, with the remainder of the cost to be paid at the closing. In some rare cases, other instruments of value, like notes and/or stock or other negotiable instruments can be used for consideration. Other hard assets, like gold, silver, and anything of value can also be used or in other cases, love (where it can be shown to have existed between the parties). However, the earnest money deposit represents a credit towards the final sales price, which is usually the main or only consideration. Financial qualifications of the buyer(s) The better the financial qualification of the buyer(s) is, the more likely the closing will be successfully completed, which is typically the goal of the seller. Any documentation demonstrating the financial qualifications of the buyer(s), such as mortgage loan pre-approval or pre-qualification, may accompany a real estate offer to buy along with an earnest money check. When there are competing offers or when a lower offer is presented, the seller may be more likely to accept an offer from a buyer demonstrating evidence of being well qualified than from a buyer without such

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

LAND TRUSTS – THE ULTIMATE ASSET PROTECTION

Land Trusts A land trust is a private agreement, where one party, the trustee, agrees to hold title to property for the benefit of another party or parties, the beneficiary(ies). The one who establishes the trust is the settlor or grantor. The settlor is usually the titleholder to the property before transfer into the trust. The settlor is often the beneficiary of the trust for his/her lifetime. Alternatively, for income property, the beneficiary may transfer beneficial interest in the trust to a limited liability company (LLC). Thus, the trustee holds the title to the property. If so drafted, the trustee must follow the instructions of the beneficiary. The beneficiary typically has the absolute right to direct and control the trustee and receive all income from the trust. The trust agreement, at the creation of the trust, governs the relationship between the trustee and beneficiary. Thus, the trustee often has no more power than the settlor gives him. Plus, he or she has no function other than to do as the trust deed instructs. Land trusts are most often revocable. Therefore, the trustor may change, modify, or terminate them while he is, or she is still alive. The beneficiaries may remove an uncooperative trustee. Since the trustee holds title as a fiduciary, they incur no personal liability for merely being on the title. Nor can the trustee lose the property to his or her personal creditors. Land Trust Pros and Cons Land Trust Benefits There are many land trust benefits. Here are some of the biggest advantages: Privacy of ownership Ease of transfer (by assigning beneficial interest in the trust to another party) Privacy of transfer (assigning beneficial interest is typically not public) Liability protection (a contingent fee attorney may not accept a case if he/she cannot find assets) Can use in any US state (not all states have land trust laws, but can use in all states) Helps to avoid due-on-sale clause (for one to four dwelling units) Keeps sales price secret Helps prevent property liens Can eliminate or minimize probate fees Land Trust Disadvantages Whereas land trust have many benefits, there are also some small disadvantages, as follows: Obtaining financing (may need to place property in personal name to obtain financing and transfer back into the trust afterwards) Does not protect property from lawsuits (need to include an LLC, for example, as the beneficiary) How Land Trusts Protect Privacy The land trust is comprised of two legal documents. There is a trust agreement between the trustor and the trustee. This document establishes the rights, powers, duties, and obligations of the parties; and A deed from the trustor to the trustee. First, you execute the trust agreement. Then, you record the trustee deed.  Once completed, the land titles office will no longer reveal to the world that you are owner of the property. In addition, the trust agreement remains private (in your file cabinet at home). Thus, no one need ever know that you retain an interest in the property. That is, the public records will not reveal this information. Litigators generally have not interest in suing people who have no assets. One of the easiest ways to determine whether or not someone has deep pockets is to search the public records for real estate holdings. For the successful real estate investor, the results of this search could paint a big fat bull’s eye on their backs. LLC + Land Trust for Asset Protection First, remember, a land trust is a privacy device, and not a corporate entity. Accordingly, land trusts do not enjoy the liability protections that corporations or limited liability companies may enjoy. If someone slips and falls on the property, the beneficiary can be held liable. That is why we establish a corporation, LLC or limited partnership to serve as beneficiary. Second, one can usually transfer property into a land trust free from taxation. The internal revenue code addresses this. The federal government will treat the property as if it was owned outright by the beneficiary. See I.R.C. §§ 671- 678. In addition, in many states, the transfer of property by a beneficiary to a revocable trust does not require the payment of any transfer or recording taxes. Finally, many investors may ask around and find that the attorneys and accountants with whom they come in contact have no idea what a land trust is, or how it works. While this can certainly be frustrating, there is an upside. Think about it. This means that many of the litigators in your community will be unfamiliar with land trusts. A significant number will stop their search for deep pockets at the end of the public records trail – the county recorder’s office. Benefits of a Land Trust There are many advantages to owning real estate through a Land Trust: Privacy of Ownership – Under a Land Trust arrangement, your identity as the legal owner of the real estate is not disclosed to the public or to any third party, except in cases of subpoena or court order. Ease of Transferability – The beneficiary (or “owner”) of a land trust may be changed without recording a change in the public records. Avoids Probate – Probate is usually necessary regardless of whether or not one has a will. A Land Trust arrangement, however, allows you to designate succession of ownership. You can do this exactly as you wish, thereby avoiding probate and costly, time-consuming proceedings relating to the property. Facilitates Multiple Ownership – Where there are multiple owners of a parcel of real estate, a Land Trust can be structured to provide for clear and easy legal division. You Retain Tax Advantage – You are still eligible for the homeowner’s and senior citizen’s real estate tax exemptions. Keep in mind, a land trust provides privacy of ownership, not true asset protection. There are tools that can provide true real estate asset protection So, you can use land trust for lawsuit prevention. That is, you so a contingent fee attorney does not readily see that you have “deep pockets” the land trust conceals our ownership. For liquid assets, on the other hand offshore trusts provide the most powerful asset protection. Here are some offshore asset protection examples that you may very well want to know

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

INTEREST RATES VS. PROPERTY VALUE

  Interest rates, especially the rates on interbank exchanges and Treasury bills, have as profound an effect on the value of the income-producing real estate as on any investment vehicle. Because the influence of interest rates on an individual’s ability to purchase residential properties (by increasing or decreasing the cost of mortgage capital) is so profound, many people incorrectly assume that the only deciding factor in real estate valuation is the mortgage rate. However, mortgage rates are only one interest-related factor influencing property values. Because interest rates also affect capital flows, the supply and demand for capital, and investors’ required rates of return on investment, interest rates will drive property prices in a variety of ways. Valuation Fundamentals To understand how government-influenced interest rates, capital flows, and financing rates affect property values, you should have a basic understanding of the income approach to real estate values. Although real estate values are influenced by the supply and demand for properties in a given locale and the replacement cost of developing new properties, the income approach is the most common valuation technique for investors. The income approach provided by appraisers of commercial properties and by underwriters and investors of real estate-backed investments is very similar to the discounted cash flow analysis conducted on equity and bond investments. In simple terms, the valuation starts by forecasting property income, which takes the form of anticipated lease payments or, in the case of hotels, anticipated hotel occupancy multiplied by the average cost per room. Then, by taking all property-level costs, including the financing cost, the analyst arrives at the net operating income (NOI), or cash flow remaining, after all, operating expenses. By subtracting all capital costs, as well as any investment capital to maintain or repair the property and other non-property-specific expenses from NOI, the result is the net cash flow (NCF). Because properties don’t usually retain cash or have a stated dividend policy, NCF equals cash available to investors and is the same as cash from dividends, which is used for valuing equity or fixed-income investments. By capitalizing dividends or by discounting the cash flow stream (including any residual value) for a given investment period, the property value is determined. Capital Flows Interest rates can significantly affect the cost of financing and mortgage rates, which in turn affects property-level costs and thus influences values. However, supply and demand for capital and competing investments have the greatest impact on required rates of return (RROR) and investment values. As the Federal Reserve Board has moved the focus away from monetary policy and more toward managing interest rates as a way to stimulate the economy or stave off inflation, its policy has had a direct effect on the value of all investments. As interbank exchange rates decrease, the cost of funds is reduced and funds flow into the system; conversely, when rates rise, the availability of funds decreases. As for real estate, the changes in interbank lending rates either add or reduce the amount of capital available for investment. The amount of capital and the cost of capital affect demand but also supply, capital available for real estate purchases and development. For example, when capital availability is tight, capital providers tend to lend less as a percentage of intrinsic value, or not as far up the “capital stack.” This means that loans are made at lower loan-to-value ratios, thus reducing leveraged cash flows and property values. These changes in capital flows can also have a direct impact on the supply and demand dynamics for a property. The cost of capital and capital availability affect supply by providing additional capital for property development and also affect the population of potential purchasers seeking deals. These two factors work together to determine property values. Discount Rates The most evident impact of interest rates on real estate values can be seen in the derivation of discount or capitalization rates. The capitalization rate can be viewed as an investor’s required dividend rate, while a discount rate equals an investor’s total return requirements. K usually denotes RROR, while the capitalization rate equals (K-g), where g is the expected growth in income or the increase in capital appreciation. Each of these rates is influenced by prevailing interest rates because they are equal to the risk-free rate plus a risk premium. For most investors, the risk-free rate is the rate on U.S. Treasuries; these are guaranteed by U.S. government credit, so they are considered risk-free because the probability of default is so low. Because higher-risk investments must achieve a commensurably higher return to compensate for the additional risk borne, when determining discount rates and capitalization rates, investors add a risk premium to the risk-free rate to determine the risk-adjusted returns necessary on each investment considered. Because K (discount rate) is equal to the risk-free rate plus a risk premium, the capitalization rate is equal to the risk-free rate plus a risk premium, less the anticipated growth (g) in income. Although risk premiums vary as a result of supply and demand and other risk factors in the market, discount rates will vary due to changes in the interest rates that make them up. When the required returns on competing or substitute investments rise, real estate values fall; conversely when interest rates fall, real estate prices increase. Conclusion Most retail investors, especially homeowners, focus on changing mortgage rates because they have a direct influence on real estate prices. However, interest rates also affect the availability of capital and the demand for investment. These capital flows influence the supply and demand for property and, as a result, they affect property prices. In addition, interest rates also affect returns on substitute investments, and prices change to stay in line with the inherent risk in real estate investments. These changes in required rates of return for real estate also vary during destabilization periods in the credit markets. As investors foresee increased variability in future rates or an increase in risk, risk premiums widen, putting increased downward pressure on property

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

3 DIFFERENT TYPES OF COMMERCIAL REAL ESTATE LEASES

3 Different Types of Commercial Real Estate Leases There are three basic types of commercial real estate leases. These leases are organized around two rent calculation methods: "net" and "gross." The gross lease typically means a tenant pays one lump sum for rent, from which the landlord pays his expenses. The net lease has a smaller base rent, with other expenses paid for by the tenant. The modified gross lease is a happy marriage between the two. While terms vary widely building by building, this basic overview will help businesses shop for the best deal possible. Gross Lease or Full Service Lease In a gross lease, the rent is all-inclusive. The landlord pays all or most expenses associated with the property, including taxes, insurance, and maintenance out of the rents received from tenants. Utilities and janitorial services are included within one easy, tenant-friendly rent payment. When negotiating a gross lease, the tenant should ask which janitorial services are provided, and how often they are offered. Excess utility consumption beyond building standards is sometimes charged back to tenant; so if the tenant is a big consumer of electricity, this point should be clarified in the lease as well. The tenant pays his own property insurance and taxes. A benefit of this type of lease is that it is supremely easy for the tenant, which can forecast expenses without worrying about an unexpected lobby maintenance charge, for example. The landlord assumes all responsibility for the building, while tenants concentrate on growing their businesses. Net Lease In a net lease, the landlord charges a lower base rent for the commercial space, plus some or all of "usual costs," which are expenses associated with operations, maintenance, and use that the landlord pays. These can include real estate taxes; property insurance; and common area maintenance items (CAMS), which include janitorial services, property management fees, sewer, water, trash collection, landscaping, parking lots, fire sprinklers, and any commonly shared area or service. There are several types of net leases: Single Net Lease (N Lease) In this lease, the tenant pays base rent plus a pro-rata share of the building's property tax (meaning a portion of the total bill based on the proportion of total building space leased by the tenant); the landlord covers all other building expenses. The tenant also pays utilities and janitorial services. Double Net Lease (NN Lease) The tenant is responsible for base rent plus a pro-rata share of property taxes and property insurance. The landlord covers expenses for structural repairs and common area maintenance. The tenant once again is responsible for their own janitorial and utility expenses. Triple Net Lease (NNN Lease) This is the most popular type of net lease for commercial freestanding buildings and retail space. It is known as the net net net lease, or NNN lease, where the tenant pays all or part of the three "nets"--property taxes, insurance, and CAMS--on top of base monthly rent. Common area utilities and operating expenses are usually lumped in as well; for example, the cost for staffing a lobby attendant would be part of the NNN fees. Of course, tenants also pay the costs of their own occupancy, including janitorial services, utilities, and their own insurance and taxes. Landlords typically estimate expenses and charge tenants a portion of these expenses based on their proportionate, or pro-rata share. A tenant who leases 1,000 square feet of a 10,000 square foot building would be expected to pay 10% of the building's taxes, insurance, and CAMS, for example. Triple net leases tend to be more landlord-friendly, and tenants should carefully review NNN fees and negotiate caps on the amounts they can be raised annually. An NNN lease can also fluctuate from month to month and year to year as operating expenses increase or decrease, making the company's expense forecasting tricky and sometimes frustrating. There are tenant benefits in the NNN leases, however. Transparency is an excellent perk, since tenants can see business operating expenses in relation to what they are charged. Cost savings in operating expenses are passed on to the tenant rather than to the landlord. In addition, the monthly rent in a NNN lease is potentially lower than in a gross lease, as tenants have a higher level of responsibility for the building. Absolute Triple Net Lease This is a less common option that is more rigid and binding than the NNN lease, where tenants carry every imaginable real estate risk, for example, being responsible for construction expenses to rebuild after a catastrophe, or for continuing to pay rent even after the building has been condemned. Aptly called the "hell-or-high-water lease," tenants have ultimate responsibility for the building no matter what. Modified Gross Lease As the gross lease is more tenant-friendly, and the net lease tends to be more landlord-friendly, there exists a compromise lease for the convenience of both parties. The modified gross lease (sometimes called the modified net lease) is similar to a gross lease in that the rent is requested in one lump sum, which can include any or all of the "nets"--property taxes, insurance, and CAMS. Utilities and janitorial services are typically excluded from the rent, and covered by the tenant. Tenants and landlords negotiate which "nets" are included in the base rental rate. The modified gross lease is more popular with tenants because its flexibility translates into an easier agreement between tenant and landlord. Unlike the NNN lease, if insurance, taxes, or CAM charges increase, the lease rate would not change. Of course, if those expenses decrease, the cost savings are passed on to the landlord. As janitorial service and electricity are not covered, tenants can better control how much they spend compared to a gross lease. Summary of NNN Lease, Modified Gross, or Full Service Commercial Leases When evaluating options for office space lease, it is important to compare the different lease options with an eye toward all expenses, and not just the base rental rates. NNN base rental rates tend to be much lower, with additional expenses added for the real monthly rate. Market forces will tend to even out rental rates for comparable properties, regardless of the type of lease. Tenants should expect to pay roughly the same amount with an NNN, modified gross, or full-service lease for similar quality office spaces in the same area. The most important rule of commercial leases is for tenants to read their leases carefully, and clarify exactly what expenses they have responsibility for. Circumstances under which additional charges will occur should be identified and caps

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A NOVATION AGREEMENT? NOVATION VS ASSIGNMENT

Novating a contract Sometimes businesses enter into agreements, which they later need to give up, be it because of internal restructuring or following an asset purchase. In these types of cases, termination may not always be the most appropriate or possible solution. However, they may be able to transfer both their rights and obligations to a third party. Read this Quick Guide to find out how. Novation is the process by which the original contract is extinguished and replaced with another, under which a third party takes up rights and obligations duplicating those of one of the parties to the original contract. This means that the original party transfers both the benefits and burdens under the contract. The benefits could be in the form of money or the benefit of a service, while burdens are what the party is obliged to do in order to receive the benefits, for example, payment for a service or goods, or the performance of a service. Novation is a complex process, as all the parties involved (the original parties and the incoming party) have to sign the Novation agreement. This is because while the benefits under a contract can be assigned without the other party’s consent, contractual obligations cannot be assigned without their consent. This means that the original party can only achieve this if both the the new party and the third party agree to a Novation. This may be difficult in some cases, for example when there is a change of supplier of services. The other original party may find it difficult to agree, if they don’t see a benefit of Novating the contract or ask for further assurances that they won’t be worse off as a result of the Novation. In these kinds of situations, the party wishing to Novate the contract should be prepared to negotiate with the other party. Ask a lawyer if you need advice based on your specific circumstances. Parties wishing to Novate their contract should carefully check its terms as sometimes, there may be a provision in a contract which will ban all purported transfers of the rights and obligations under the contract or it may specify how consent is to be acquired. A Novation agreement is essentially notice to the remaining party, and therefore the requirements for serving notice should be followed. After the contract is Novated, the outgoing party and the remaining party usually release each other from any liability and claims in respect of the original agreement on or after the date the agreement was signed. They might also agree to indemnify (promise each other to compensate the loss incurred to the other party due to the acts of the first party or any other party). For example, the outgoing party can agree to indemnify the incoming party in respect of any liabilities and obligations the incoming party agrees to take over and the incoming party can agree to indemnify the outgoing party in respect of any liabilities that the outgoing party retains. A Novation agreement transfers both the benefits and the obligations of a contract to a third party. In contrast an assignment does not transfer the burden of a contract. This means the outgoing party remains liable for any past liabilities incurred before the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TYPICAL STEPS IN AN FSBO HOME SALE TRANSACTION

Typical Steps in an FSBO Home Sale Transaction To successfully complete the sale and legal transfer of one’s home, the following steps are generally taken: 1) The property must be valued by the seller in order to obtain a legitimate and reasonable sales price for the property. It must then be placed on market for sale and advertised. 2) A written Real Estate Purchase and Sale Agreement, a Lead Hazard Disclosure form and other Real Property Disclosure forms (and other legal documents as may be required by the laws of the state in which the home is located) must be prepared by seller and presented to purchaser. These documents are then signed by the parties. A down payment/deposit is then usually paid to seller by purchaser at this time. 3) The purchaser begins the process of obtaining financing to pay the purchase price. This step may require that the purchaser obtain a survey and/or have a title search completed (or other activity as required by lender). The purchaser and/or lender may require a title insurance policy to be purchased and issued on the property, too. 4) The seller prepares a Deed (Quitclaim, Warranty or some other form of Deed), signs it, has it witnessed and notarized so that the property can be transferred to the purchaser. 5) The closing takes place and the purchaser (and/or lender) tenders the remainder of purchase price (that amount that is to be paid after the down payment is applied to the purchase price of the property) to the seller. The seller pays off all liens and mortgages on the property, and the revised Deed is tendered to purchaser. The purchaser then files that Deed with the governmental recording office in the county or parish in which the property is located so that property is legally transferred to purchaser’s name. What Else is Required to Complete the FSBO Process? While some additional steps are required if a bank loan is involved (e.g. the bank may require a survey, a home inspection, or may even require some testing for environmental issues), the steps listed above are those usually required in a For Sale by Owner real estate transaction. Additionally, a closing agent (usually a title company) can assist the buyer and seller in helping the parties transfer funds, file the deed and generally “close” the sale. The cost of a title company services are usually fairly modest. Please note that each home sale transaction may be unique and that issues may arise in the transaction requiring additional or different steps be taken (and, in some cases, additional forms and documents may be required). It is recommended that should any issues arise in the transaction that are not “typical”, a licensed attorney be contacted. This article is not intended to provide any legal advice with regard to the purchase or sale of any residential

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A GIFT OF EQUITY AND HOW DOES IT WORK?

When homeowners sell the family home to a loved one, they may wish to do so at a discounted rate. When this happens, the difference between the home’s market value and its sale price acts as a gift of equity from the seller to the buyer. A gift of equity is beneficial to the buyer, but there are certain requirements and potential tax implications that both parties should be aware of. What Is A Gift Of Equity? A gift of equity occurs when someone sells a property to a family member or close associate for a lower price than the current market value. The difference between the two prices represents the gift of equity. The gift of equity generally serves as the homebuyer’s down payment. It makes it easier for them to get a mortgage by creating equity in the home. A gift of equity is often used when a home sale occurs between family members. For example, parents might use a gift of equity when selling the family home to their child. How Does A Gift Of Equity Work? When parties plan to use a financial gift of equity, the homeowner sells the residence to the buyer at a rate below its market value. No money changes hands between the two parties. Instead, the gift creates equity in the home for the buyer. Then, when it comes time to get a mortgage, that equity serves as the buyer’s down payment rather than having to put down cash. Suppose a retired couple was moving to a smaller home and decided to sell their family home to their son and his new wife. The home’s value is $200,000, but the parents wish to cover the 20% down payment for their son. Rather than writing their son a check for $40,000, they would simply sell the home to their son for $40,000 less than its market value. The $40,000 difference is the gift of equity and serves as the son’s 20% down payment. The son is likely to have an easier time getting a mortgage since he’ll have 20% equity in the home. He’ll also avoid paying private mortgage insurance, which is often required for down payments less than 20%. Gift Of Equity Requirements There are a couple of specific requirements that the parties must meet to complete a gift of equity. Sellers should keep these in mind if they’re considering using this strategy to sell a home to a loved one. Equity Letter A gift letter is a document that summarizes all of the information about the gift, including the appraisal price and the sale price. Both the buyer and seller must sign the letter. A second letter will accompany other official documents at the home’s closing. An Official Appraisal To complete a gift of equity, the home’s seller must have an official appraisal done. Using the appraisal, the parties can determine the sale price and the gift of equity. The lender requires this appraisal, and the appraisal value will be included in the gift letter. The Pros And Cons Of A Gift Of Equity Pros Of A Gift Of Equity Avoid paying real estate agent commissions: Because a gift of equity often happens between two family members, these home sales often don’t require a real estate agent or an agent’s commission. This benefits the seller, who typically pays commission for both agents. Lower or no down payment for recipient: Because the gift of equity serves as the down payment, the buyer often doesn’t have to put down any additional money. Faster home sale: A gift of equity can help to expedite a home sale. First, the buyer doesn’t need time to save a down payment and may have an easier time qualifying for a mortgage. And because the sale occurs between family members, the process can go more smoothly. Potentially avoid paying private mortgage insurance: Buyers typically must pay private mortgage insurance (PMI) when they purchase a home with less than 20% down. Because the gift of equity often serves as a down payment, it can negate the need for PMI. Keeping a home within the family: For many people, their family home is an important memento. A gift of equity can help to keep a home within the family even when the buyer may not be able to save enough for a down payment. Cons Of A Gift Of Equity Legal fees for both parties: A gift of equity requires a contract between the two parties. As a result, one or both parties may have fees to an attorney to draft the contract. Potential trigger of the gift tax: The IRS requires that people file a gift tax return when they transfer more than $15,000 in gifts to another individual. If the gifted equity equals more than $15,000, then a seller would have to file this return. Negative effect on home’s cost basis: When you sell a home for more than you bought it for, you may be subject to capital gains taxes on the profit. Because a gift of equity reduces the sale price of a home (aka the cost basis), it increases the chances that the buyer will end up paying those capital gains taxes. Negative effect on local real estate market: A gift of equity reduces the sale price of a home. Doing so could impact the neighborhood’s real estate market because there’s a record of a property being sold below market value. The Bottom Line A gift of equity is a strategy that people can use to sell a family home to a relative for less than its market value. The lower sale price serves as the buyer’s down payment, making it easier for them to buy the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

LAND PATENT

A land patent is a form of letters patent assigning official ownership of a particular tract of land which has gone through various legally proscribed processes – such as surveying and documentation, followed by the letters signing, sealing, and publishing in public records – made by a sovereign entity. It is the highest evidence of right, title, and interest to a defined area. It is usually granted by a central, federal, or state government to an individual, partnership, trust or private company. The land patent is not to be confused with a land grant. Patented lands may be lands previously granted by a sovereign authority in return for services rendered or accompanying a title or otherwise bestowed gratis, or they may be lands privately purchased by a government, individual, or legal entity from their prior owners. "Patent" is both a process and a term. As a process, it is somewhat parallel to gaining a patent for intellectual property, including the steps of uniquely defining the property at issue, filing, processing, and granting. Unlike intellectual property patents, which have time limits, a land patent is permanent. In the United States, all claims of land ownership can be traced back to a land patent, first-title deed, or similar document regarding land originally owned by France, Spain, the United Kingdom, Mexico, the Kingdom of Hawaii, Russia, or Native Americans. Other terms for the certificate that grants such rights include first-title deed and final certificate. A land patent is known in law as a "letters patent", and usually issues to the original grantee and to their heirs and assigns forever. The patent stands as the supreme title to the land because it attests that all evidence of title existent before its issue date was reviewed by the sovereign authority under which it was sealed and was so sealed as irrefutable; thus, at law, the land patent itself so becomes the title to the land defined within its four corners. In practice, the "irrefutability" of counter-claims is relative; however, once a patent is granted permanence of title is established. History of land patents in the United States of America Land in the United States of America was acquired by claim, seizure, annexation, purchase, treaty, or war from France, Great Britain, the Kingdom of Hawaii, Mexico, Russia, Spain and the Native American peoples. As England, later to become Great Britain, began to colonize America, the Crown made large grants of territory to individuals and companies. In turn, those companies and colonial governors later made smaller grants of land based on actual surveys of the land. Thus, in colonial America on the Atlantic seaboard, a connection was made between the surveying of a land tract and its "patenting" as private property. Many original colonies' land patents came from the corresponding country of control (e.g., Great Britain). Most such patents were permanently granted. Those patents are still in force; the United States government honors those patents by treaty law, and, as with all such land patents, they cannot be changed. Many early patents of lands originally granted by Native peoples were contested, occasionally in court, as a result of different understandings of "private property" and "ownership" between those people, who typically held land and its bounties communally, reinforced by oral tradition, and colonizers from Western Europe who held established and finite views on assets, their transfer, and their adjudication in a system of written laws, Crown rights and officials, courts, and permanent records. After the American Revolution and the ratification of the Constitution of the United States, the United States Treasury Department was placed in charge of managing all public lands. In 1812, the General Land Office was created to assume that duty. In accord with specific Acts of Congress, and under the hand and seal of the President of the United States of America, the General Land Office issued more than 2 million land grants made patent (land patents), passing the title of specific parcels of public land from the nation to private parties (individuals or private companies). Some of the land so granted had a survey or other costs associated with it. Some patentees paid those fees for their land in cash, others homesteaded a claim, and still, others came into ownership via one of the many donation acts that Congress passed to transfer public lands to private ownership. Whatever the method, the General Land Office followed a two-step procedure in granting a patent. First, the private claimant went to the land office in the land district where the public land was located. The claimant filled out entry papers to select the public land, and the land office register (clerk) checked the local registrar records to make sure the claimed land was still available. The receiver (bursar) took the claimant's payment because even homesteaders had to pay administrative fees. Next, the district land office register and receiver sent the paperwork to the General Land Office in Washington. That office double-checked the accuracy of the claim, its availability and the form of payment. Finally, the General Land Office issued a land patent for the claimed public land and sent it on to the President for his signature. The first United States land patent was issued on March 4, 1788, to John Martin. That patent reserves to the United States one-third of all gold, silver, lead and copper within the claimed land. A land patent for a 39.44-acre (15.96 ha) land parcel in present-day Monroe County, Ohio and within the Seven Ranges land tract. The parcel was sold by the Marietta Land Office in Marietta, Ohio in 1834. Usage restrictions (e.g., oil and mineral rights, roadways, ditches, and canals) placed on the land are spelled out in the patent. These are distinct from state and local statutory regulations relative to property appurtenant to the land, such as zoning and building codes, as well as property taxes applying to both land and property. Private property rights accompanying land patents can also be thereafter negotiated in accord with the terms of private contracts. The rights inherent in patented land are carried from heir to heir, heir to the assignee, or assignee to assignee, and cannot be changed except by private contract (warranty deed, quitclaim deed, etc.). In most cases, the law of a particular piece of patented land will be governed by the Congressional Act or treaty under which it was acquired, or by terms spelled out in the patent. For example, in the United States, the laws governing the land may involve the Homestead Act or reservations placed on the face of the patent, or the Treaty of Guadalupe Hidalgo, which governs certain jurisdictional dicta relating to large amounts of land in California and adjoining territories. Legal entities other than natural persons (such as trusts and corporations) cannot obtain land patents except by express act of the United States Congress. An example of Congress granting land through patents to corporate entities is the railroad grants made under the Pacific Railroad Acts to compensate the railroad companies for building a transnational railroad across America. Former U.S. territories When a territory agreed to enter the Union of the United States of America, an Enabling Act was agreed to as a condition precedent of statehood. The Enabling Act requires that all unappropriated (not yet privately owned) lands be forever disclaimed by the territory and the people of the territory, and the title ceded to the United States for its disposition.[2] For example, the enabling act of the Washington Territory declares, in part: ... that the people inhabiting said proposed States do agree and declare that they forever disclaim all right and title to the unappropriated public lands lying within the boundaries thereof, and to all lands lying within said limits owned or held by any Indian or Indian tribes; and that until the title thereto shall have been extinguished by the United States, the same shall be and remain subject to the disposition of the United States. .. After the right and title to the land was disclaimed by the people of the territory, it was held in trust by the United States until someone proved a claim to it, typically by improving the homestead parcel for a certain period of time. Once a proper claim has been filed, the General Land Office (now the Bureau of Land Management) certifies that the claimant has paid for a survey, as well as depositing another sum of money. Then, pursuant to the various land acts of Congress, the land is granted to the private owner by letters patent under the signature and seal of the President of the United States of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A GIFT OF EQUITY?

    When homeowners sell the family home to a loved one, they may wish to do so at a discounted rate. When this happens, the difference between the home’s market value and its sale price acts as a gift of equity from the seller to the buyer. A gift of equity is beneficial to the buyer, but there are certain requirements and potential tax implications that both parties should be aware of. What Is A Gift Of Equity? A gift of equity occurs when someone sells a property to a family member or close associate for a lower price than the current market value. The difference between the two prices represents the gift of equity. The gift of equity generally serves as the homebuyer’s down payment. It makes it easier for them to get a mortgage by creating equity in the home. A gift of equity is often used when a home sale occurs between family members. For example, parents might use a gift of equity when selling the family home to their child. When parties plan to use a financial gift of equity, the homeowner sells the residence to the buyer at a rate below its market value. No money changes hands between the two parties. Instead, the gift creates equity in the home for the buyer. Then, when it comes time to get a mortgage, that equity serves as the buyer’s down payment rather than having to put down cash. Suppose a retired couple was moving to a smaller home and decided to sell their family home to their son and his new wife. The home’s value is $200,000, but the parents wish to cover the 20% down payment for their son. Rather than writing their son a check for $40,000, they would simply sell the home to their son for $40,000 less than its market value. The $40,000 difference is the gift of equity and serves as the son’s 20% down payment. The son is likely to have an easier time getting a mortgage since he’ll have 20% equity in the home. He’ll also avoid paying private mortgage insurance, which is often required for down payments of less than 20%.Gift Of Equity RequirementsThere are a couple of specific requirements that the parties must meet to complete a gift of equity. Sellers should keep these in mind if they’re considering using this strategy to sell a home to a loved one. Equity Letter A gift letter is a document that summarizes all of the information about the gift, including the appraisal price and the sale price. Both the buyer and seller must sign the letter. A second letter will accompany other official documents at the home’s closing. An Official Appraisal To complete a gift of equity, the home’s seller must have an official appraisal done. Using the appraisal, the parties can determine the sale price and the gift of equity. The lender requires this appraisal, and the appraisal value will be included in the gift letter. The Pros And Cons Of A Gift Of Equity Pros Of A Gift Of Equity  Avoid paying real estate agent commissions: Because a gift of equity often happens between two family members, these home sales often don’t require a real estate agent or an agent’s commission. This benefits the seller, who typically pays commission for both agents. Lower or no down payment for recipient: Because the gift of equity serves as the down payment, the buyer often doesn’t have to put down any additional money. Faster home sale: A gift of equity can help to expedite a home sale. First, the buyer doesn’t need time to save a down payment and may have an easier time qualifying for a mortgage. And because the sale occurs between family members, the process can go more smoothly. Potentially avoid paying private mortgage insurance: Buyers typically must pay private mortgage insurance (PMI) when they purchase a home with less than 20% down. Because the gift of equity often serves as the down payment, it can negate the need for PMI. Keeping a home within the family: For many people, their family home is an important memento. A gift of equity can help to keep a home within the family even when the buyer may not be able to save enough for a down payment. Cons Of A Gift Of Equity Legal fees for both parties: A gift of equity requires a contract between the two parties. As a result, one or both parties may have fees to an attorney to draft the contract. Potential trigger of the gift tax: The IRS requires that people file a gift tax return when they transfer more than $15,000 in gifts to another individual. If the gifted equity equals more than $15,000, then a seller would have to file this return. Negative effect on home’s cost basis: When you sell a home for more than you bought it for, you may be subject to capital gains taxes on the profit. Because a gift of equity reduces the sale price of a home (aka the cost basis), it increases the chances that the buyer will end up paying those capital gains taxes. Negative effect on local real estate market: A gift of equity reduces the sale price of a home. Doing so could impact the neighborhood’s real estate market because there’s a record of a property being sold below market value. The Bottom Line A gift of equity is a strategy that people can use to sell a family home to a relative for less than its market value. The lower sale price serves as the buyer’s down payment, making it easier for them to buy the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

COMMON HOA RULE VIOLATIONS

Here are some of the most common HOA rules violations you should know about: 1. LandscapingHOAs are responsible for the community’s curb appeal, so expect yours to have rules about overgrown lawns, weeds and unkempt exteriors. Be sure to check your bylaws about what types of trees, plants and shrubs are allowed to be planted. 2. VehiclesHOAs often limit how many and what type of motor vehicles (RVs, boats and commercial vehicles, for example) can be kept on the property, as well as enforce speed limits and rules about parking in designated areas. 3. RentalsSome HOAs have rules about subletting homes, both because of security and because most communities’ insurance is dependent on the percentage of owners versus renters. Most HOAs require written permission to rent a home, which may require a homeowner to join a waitlist. 4. TrashHomeowners in an HOA can get into trouble for throwing certain items, like boxes that haven’t been broken down or pieces of furniture, into community dumpsters. It might also be against the rules to put trash cans out too early or not bring them in by a certain time, since they can attract pests and detract from the community’s appearance. 5. Exterior storageHOAs sometimes limit what types of equipment can be stored outside. For instance, you might have to keep bicycles or kayaks out of view, behind a fence. Your HOA might also have rules limiting or preventing the addition of storage structures that aren’t attached to the home. 6. PetsTo keep their residents safe and comfortable, HOAs often have restrictions about where pets can and can’t walk, keeping dogs on leashes and picking up after your pet. You might also be limited to how many pets you can own, and specific breeds and sizes. 7. NoiseMost HOAs have rules that restrict loud noises between certain hours. (Most cities and counties also have noise ordinances that must be followed, even if the HOA doesn’t have restrictions.) 8. Holiday decorationsIf you’re the neighbor who keeps Christmas lights up until Valentine’s Day, living in an HOA community might not be ideal. Some HOA rules include rules for how long before and after a holiday you can decorate your home’s exterior. Others might even regulate the size and type of decor allowed. 9. Design changesHOAs often have strict rules about changing the appearance or structure of your home. Simple things like painting your house, adding a patio or deck or even changing your mailbox usually require written approval from the HOA’s design review committee. Can the police enforce HOA rules?The short answer is yes, police can enforce some HOA rules. That’s because HOA rules have to comply with state and local laws and ordinances. For instance, police could enforce speed limits, noise ordinances and pet leash laws because they are legal matters, but they wouldn’t enforce other HOA rules on landscaping or paint violations. What happens if you violate HOA rules?An HOA can’t force a homeowner to sell a home for not following the HOA rules; however, it can enforce the rules and initiate reasonable fines for violations. Just ask Atlanta homeowner Parker Singletary. Before Atlanta hosted the Super Bowl in 2019, one of Singletary’s neighbors mentioned that residents were allowed to rent their homes just for that weekend. Singletary cleaned his house, took photos and posted them on a popular property rental site. “Nobody ended up taking my house for the weekend, so I thought I was done with the situation,” Singletary says. Instead, he received a cease-and-desist letter from a local law firm for breaking the HOA rules, along with a $1,000 fine. As Singletary discovered, whether you knowingly break the HOA rules or overstep them by mistake, the consequences can be costly. If a bylaw is broken, it’s the association’s responsibility to notify the offending resident to allow them to comply, or assign a fine. In Singletary’s case, he didn’t receive a warning. Instead, he received a $1,000 fine, which he appealed. The fine was later reduced to $300 to cover legal fees. If a homeowner doesn’t pay a fine for a violation, late fees can pile up, and the HOA can put a lien against their home (even if it has a mortgage). The HOA can opt to foreclose on the lien, too, so it’s best to avoid that outcome if possible. How to respond to HOA rules violationsAddress it. Ignoring a violation won’t make it go away, and can actually make the situation much worse. Once you’ve received a violation notice, take steps to understand and correct the violation, and either pay or appeal the fine, if there is one.Don’t take it personally. Remember that the HOA’s rules were created to keep the community safe and comfortable for residents, including you. You also agreed to abide by the rules when you bought your home.Communicate. While friendly face-to-face communication can address minor infractions or warnings, written communication and documentation helps create clarity for everyone involved. When you’ve been accused of an HOA rule violation, it’s best to address it in writing. If there are extenuating circumstances — like a family emergency that causes you to fall behind on lawn care — communicate that to your HOA property manager. You don’t know if an exception can be made until you ask.Get involved. “There is usually a correlation between the level of homeowner involvement and the long-term success of a community,” Bauman says. So, if you want to improve your community, volunteer for a board position or attend meetings to see how you can contribute.Bottom lineLiving in an HOA community isn’t for everyone, but if you’re interested in joining one, be sure to do your homework and understand the rules before making an offer on a home. How an HOA enforces its rules and handles violations can vary between communities, so obtain a copy of the association’s CC&Rs to ensure you understand what you’re buying into and agreeing to. “Homeowners have the right to receive all documents that address rules and regulations governing the community association,” Bauman says, adding that “since association rules vary from community to community, common HOA violations also

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOA RESTRICTIONS ON SHORT TERM RENTALS

At first blush, short-term rentals seem like a win-win situation. You can find a nice place to stay for a few nights, and it is frequently cheaper than booking a hotel. Just as importantly, vacation houses and condos rented out through Airbnb or VRBO are often more interesting places to stay, with the individual character and idiosyncrasies you do not get from a cookie-cutter hotel room. It can be a great deal for property owners, too. In the right location, a property rented for short-term stays can bring in significantly more revenue than with a traditional year-to-year lease. That extra cash can be put toward improving the property, making it into a more attractive destination that can command higher rates. Or, it can just provide supplemental income. Either way, the property owner is coming out ahead. So far, short-term rentals sound like a great deal for all involved parties. Yet, there has been a growing trend to prohibit them in HOA communities. Is it just a case of power-tripping HOA boards lording their authority over members by banning a potentially lucrative source of secondary income? Actually, no. As is so often the case, there is more to it than that. For all their virtues, Airbnb, VRBO, and similar services can have genuine downsides for a homeowners' association. On a smaller scale, it is analogous to the so-called "Lemon Socialism," where profits are privatized, and risks are socialized. In this case, the advantages of short-term rentals (i.e., increased income) are reaped by individual property owners, while the potential downsides (when they are present, which is not always the case) are borne by the community as a whole. Why Do HOAs Prohibit Short-Term Rentals? When an HOA imposes a restriction on homeowners' use of their properties, it needs to have some justification (or at least a feasible pretense). With short-term rental restrictions, the purpose is generally to protect other members and preserve the character of the community. A quiet, sleepy neighborhood that all-the-sudden has vacationers coming and going on a regular basis stands a good chance of losing its quiet, sleepy nature. Vacation renters tend to be messier and noisier, especially at night, than permanent residents. The commotion can become a nuisance for people who reside in the community year-round—specifically, other homeowners and their families. Short-term renters also tend to ignore HOA rules or simply not know what the rules are. In a community with common areas and facilities, vacationers can overtax the commons, preventing full-time residents from enjoying the benefits for which their assessments pay. Vacationers do not pay HOA fees and are less vested in the long-term condition of the community. From a practical standpoint, short-term renters can increase a neighborhood's traffic and parking problems. And, if travelers regularly use common facilities like a pool or recreation center, the HOA's insurance rates are likely to increase, as additional use of the facilities by more people inevitably leads to more damage and risk of premises liability claims. With that said, a lot depends on the nature of an individual community. If the impact from short-term rentals will be minimal—or if the community is in a vacation hotspot where a large percentage of owners like the idea of renting through Airbnb or VRBO—a rental restriction might not make sense for that community. Authority to Restrict Short-Term Rentals. Even if a community has a valid reason to restrict short-term rentals, it still needs legal and/or contractual authority to support the restriction. Typically, the authority comes from an HOA's declaration, from state law, or a combination of the two. A declaration is a contract among property owners in a community. The owners jointly agree to accept certain obligations and restrictions on how properties in the community can be used. If everyone complies, the community as a whole will benefit—or at least that is the idea. Throughout the country, courts generally assume HOA restrictions are enforceable as long as a restriction promotes a legitimate purpose and is not forbidden by statute. See, e.g., Saunders v. Thorn Woode Partnership, L.P. 265 Ga. 703, 462 S.E.2d 135 (Ga., 1995); Laguna Royale Owners Assn. v. Darger, 119 Cal.App.3d 670, 174 Cal. Rptr. 136 (Cal. Ct. App. 1981). Even broad restrictions against all rentals have been upheld in some jurisdictions if the restriction is in the HOA's declaration, and the board can offer a legitimate justification for it. See, Four Brothers Homes at Heartland Condominium II, et al., v. Gerbino, 262 A.D.2d 279, 691 N.Y.S.2d 114 (N.Y. App. Div. 1999). So, the starting point when deciding if an individual HOA has the authority to ban short-term rentals is to look at the community's declaration. If the declaration prohibits rentals (short-term or long), then the HOA can likely enforce the prohibition unless there is some other reason why the restriction is unenforceable. Armstrong v. Ledges Homeowners' Assoc., Inc., 633 S.E.2d 78 (N.C. 2006). Limitations on Rental Restrictions. Though state HOA laws can vary considerably from state to state, multiple state legislatures have recognized that the right to rent out a property is valuable enough for homeowners to warrant some statutory protection. In general, state-law limitations on rental restrictions do not say that rental restrictions are per se unenforceable. Instead, the laws seek to protect property owners' due process rights and avoid a scenario in which an owner is deprived of a valuable property right without adequate notice. In Arizona, for instance, an HOA cannot enforce a rental restriction against an owner unless the restriction was already in the community's declaration when the owner acquired title to the property. A.R.S. §33-1260.01A. HOA declarations are public records recorded within county land records, so owners are assumed to have notice of restrictions and covenants in the declaration when accepting the deed to a property. The Arizona law protects owners from being deprived of a right they reasonably anticipated having when deciding to purchase the property. California law gives potential purchasers of homes in HOA communities the right to receive a written statement of any rental restrictions in a community before title to a property is transferred. Cal. Civ. Code §4525(a)(9). The law recognizes that, while a recorded declaration serves as formal notice to purchasers, buyers do not always read them thoroughly before agreeing to a purchase. Contractual & Statutory Protections. The most common state-law approach for protecting owners' vested property rights is through "grandfather" laws. A grandfathering provision lets an HOA enforce a newly adopted restriction prospectively but protects owners who previously relied on the restriction's absence. Grandfathering statutes relating to rental restrictions recognize that a substantial portion of a property's value can consist of the owner's ability to generate revenue by renting it out. As such, owners who previously enjoyed that right should not be deprived of it in the future without their consent. In a nutshell, it is unfair to enforce a rental restriction against an owner who purchased a property when the restriction was not in place. Florida and California laws prevent enforcement of rental restrictions against owners if the restriction was not already in effect at the time of purchase, and the owner did not vote to adopt the restriction. Fla. Stat. §718.110(13), Cal. Civ. Code §4740(a), (b). Similarly, Arizona's law will not let an HOA enforce a rental restriction against an owner who purchased a property before the restriction's enactment unless the restriction was approved by a unanimous member vote. A.R.S. §33-1227. So far, this all seems straight-forward enough, but there is a curveball coming. Under California's HOA law, existing owners are generally protected against later-adopted HOA rental restrictions. However, HOAs can enforce "reasonable" limitations, if not outright prohibitions. Laguna Royale Owners Assn. v. Darger, 119 Cal.App.3d 670, 174 Cal. Rptr. 136 (Cal. Ct. App. 1981). What that practically means is that an owner protected against rental restrictions, in general, might nonetheless be prevented from engaging in short-term rentals. California courts have recognized that short-term rentals can negatively affect a community beyond what results from ordinary, long-term rentals. With that in mind, the courts reasoned that a minimum lease period (or similar rule preventing short-term rentals) does not offend California's grandfathering law because the owner still has the right to rent the property. The right has been limited, but the owner can still rent to a long-term tenant. Watts v. Oak Shores Community Assn., 235 Cal.App.4th 466 (2015), Mission Shores Assn. v. Pheil, 166 Cal.App.4th 789, 83 Cal. Rptr. 3d 108 (Cal. Ct. App. 2008) But that raises a question: what is so different about short-term rentals compared to long-term rentals? Residential vs. Commercial Use. Residential use restrictions are one of the most common restrictions included in HOA declarations, and they have been consistently upheld by reviewing courts throughout the country. Essentially, a declaration says that properties in the community are intended to be used as homes, not as businesses or farms. And, by accepting a deed to a property subject to the HOA, owners covenant that they will not use their properties for commercial (i.e., business-related) purposes. It is similar to a single-family residential zoning ordinance—just adopted by an HOA instead of a local government. Some HOAs have tried to prohibit short-term rentals, relying on commercial-use restrictions. The argument is that if you are using your property as a short-term rental, you are effectively using it for a commercial purpose. Before looking at this question further, it is worth emphasizing two points. First, state courts are not consistent in how they have interpreted the issue. Second, a short-term rental prohibition based on a residential-use covenant is distinct from an ordinary rental restriction. If an association can rely on an enforceable restriction prohibiting rentals, it does not need to argue that short-term rentals are a commercial use. The argument generally comes up when an HOA wants to prevent short-term rentals but does not have a rental restriction—or it has a rental restriction that it cannot enforce against a specific homeowner due to (for example) a grandfathering clause. When considering this issue, an appeals court in Michigan held that an HOA that prohibited short-term rentals based on a commercial-use restriction did not exceed its authority. Eager v. Peasley, 911 N.W.2d 470, (Mich. Ct. App. 2017). Noting that "provid[ing] temporary housing" to vacationers is a "profit-making enterprise," the court concluded that "the act of renting property to another for short-term use is a commercial use, even if the activity is residential in nature." Thus, under the Eager Court's reasoning, a Michigan HOA with a commercial-use restriction could adopt and enforce a policy against short-term rentals, even if the HOA did not have an express rental restriction in its declaration. On the other hand, states that afford greater deference to individual homeowners' property rights have come down the other way. In North Carolina, for example, courts typically interpret unclear restrictions in favor of homeowners. Based on that principle, a North Carolina court held that a generalized restriction against non-residential use by itself was insufficient authority for an HOA to prohibit short-term rentals. Wise v. Harrington Grove Cmty. Ass'n, 584 S.E.2d 731 (2003). Unsurprisingly, the Texas Supreme Court likewise came down in favor of the property owner in Tarr v. Timberwood Park Owners Ass'n, 61 Tex. Sup. Ct. J. 1174 (2018). In that case, the HOA relied on a restriction that only allowed properties in the community to be used as single-family residences. According to the Tarr Court, the provision did not plainly forbid short-term rentals because, as long as renters used the home for residential purposes, the covenant was satisfied. Unfortunately, the question as to whether a residential use provision provides adequate grounds to prohibit short-term rentals is inconsistent from state to state. Accordingly, the most sure-fire way for HOAs to prevent short-term rental of properties within the community is to amend their declarations to unambiguously forbid short-term rentals. Adopting and Enforcing Short-Term Rental Restrictions. As we have seen, an HOA cannot just decide one day that it wants to prohibit short-term rentals. The prohibition must be grounded in some authority derived from the community declaration. For the most part, a community with an existing rental restriction in its declaration will have the right to enforce the restriction. If it doesn't, the HOA will need to amend its declaration following the amendment process provided under state law and the declaration itself. Usually, the amendment requires the approval of at least a majority of homeowners in the community. When proposing language for a rental restriction, an HOA board should clearly define what rentals will be prohibited. A common approach is to establish a minimum lease period (such as 30 days), with any rental period below that threshold forbidden. If there will be any exceptions to the general prohibition, they need to be spelled out, too. To avoid challenges from existing homeowners, it can be a good idea to include a grandfathering clause within a proposed amendment restricting rentals. Remember, multiple states have laws that prohibit enforcement of a rental restriction against a homeowner if the restriction was not in place when they acquired the property—unless the owner consents to the restriction. Even in states without these statutory protections, affected owners can argue that a newly adopted restriction deprives them of a vested property right. A "grandfather" clause might let an owner currently engaged in short-term rentals continue doing so. Or an amendment could establish a cap on the number of homes in the community that can be used as short-term rentals. Rental restrictions should include an enforcement mechanism that can be used against non-compliant owners. For example, fines might be imposed on violative owners, or access to common facilities could be limited for so long as a violation continues. State HOA laws vary with regard to permissible penalties, so an HOA needs to make sure its enforcement mechanism is statutorily compliant. When all else fails, an HOA can seek recourse via civil litigation. In that case, the board (on behalf of the HOA) files suit against the non-compliant owner and requests an order from a judge directing the owner to cease short-term rentals. Of course, litigation is often expensive and time-consuming, so it is usually better to resolve things out of court if possible. Importantly, an HOA should consult with an experienced attorney when attempting to amend its declaration. An attorney familiar with HOA law can help create an enforceable policy that complies with state law and ensures the amendment process is properly observed—mitigating the risk of future challenges to the policy. As a general matter, an HOA's enforcement of rental restrictions (or any other restrictions, for that matter) needs to be "procedurally fair and reasonable." Enforcement should be consistent and proportional and never "arbitrary and capricious." Saunders v. Thorn Woode Partnership, L.P., 265 Ga. 703, 462 S.E.2d 135 (Ga., 1995). Inconsistent or arbitrary enforcement can provide homeowners with a defense against enforcement actions. White Egret Condo., Inc. v. Franklin, 379 So.2d 346 (Fla. 1979). In many jurisdictions, courts have found that an association that attempts to enforce a restriction that it has not previously enforced consistently or enforced against some owners but not others—has effectively abandoned or waived its right to enforce the restriction. Liebler v. Point Loma Tennis Club, 40 Cal. App. 4th 1600, 1610-11 (4th Dist. 1995); Prisco v. Forest Villas Condominium Apartments, Inc., 847 So 2d 1012 (Fla.App. Dist.4, 2003). Similarly, enforcement aimed only at homeowners that fall within certain groups is subject to challenge by the singled-out homeowners. See, e.g., Bloch v. Frischholz, 533 F.3d 562 (7th Cir. 2008). Fair Housing Act Implications. Like with any other policies, an HOA's short-term rental restriction policies need to comply with the federal Fair Housing Act. The FHA prohibits housing discrimination based on race, color, religion, sex, familial status, national origin, or disability. 42 U.S.C. §3604(a). Blatantly discriminatory policies are obviously banned. For instance, an HOA cannot adopt a policy that prohibits short-term rentals to Episcopalians or prevents Episcopalians (but only Episcopalians) from renting their properties. The FHA can also cover policies and actions that are unintentionally discriminatory. If a policy results in a disproportionately "disparate impact" on a protected class, the policy may violate the FHA. Texas Dept. of Housing and Community Affairs v. Inclusive Communities Project, Inc., 135 S.Ct. 2507 (2015). "Familial status" discrimination can be a potential FHA tripwire for HOAs. Under federal court decisions interpreting the FHA, "familial status" does not just mean things like whether a person is married, single, or divorced. The term has also been interpreted to include most age-based discrimination. See, Iniestra v. Cliff Warren Investments, Inc., 886 F. Supp. 2d 1161, 1164 (C.D. Cal. 2012). Restrictions against families with children—or restrictions that appear designed to prevent rentals to families with children—can likewise amount to familial status discrimination in violation of the FHA. So, for instance, an HOA that tries to enforce a validly adopted blanket prohibition on short-term rentals will probably be upheld. But an HOA that allows some short-term rentals—but not to renters who have children—may find itself subject to an FHA complaint. HOA laws can be complex, with many variations between states. Homeowners who have questions about how their association's rules affect their rights—and associations that are unsure of the breadth of their restrictions or are considering an amendment to covenants—should consult with an experienced attorney familiar with the HOA laws of the state in which the community is

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

OWNING PROPERTY INUNEQUAL SHARES

A tenancy in common is a popular way for co-owners to take title to a home. This way of vesting offers an alternative to joint tenancy, in which a home is co-owned, but the owners split their interests evenly. Here, we talk about what a tenancy in common is, and why its allowance for co-owning in unequal shares can be a benefit. The Tenancy in Common: A Popular Choice for Co-Owners When people acquire a property together, they should be ready to specify what form of vesting will appear on the deed. In some states, the tenancy in common is the default vesting mode for married couples. In some states, it’s the default mode for unmarried co-owners, so these owners become tenants in common unless they affirmatively pick another form of vesting. Tenants in common can be a pair of owners or a group. They can be related to each other or unrelated. They can be spouses, siblings, partners, or friends. When they decide to hold title to a home in a tenancy in common, can these co-owners divide ownership unequally? Can each co-owner pitch in for maintenance in different amounts? On both counts, yes: The co-owners need to state their specific share percentages. This is sometimes overlooked by title companies — but the co-owners should have their own plan. Equal shares might not be optimal. Each owner can hold any percentage of the whole, and the deed will show each co-owner’s ownership percentage. Unless otherwise agreed, co-owners share expenses in proportion, too. When two or more people buy a house together, they’ll likely have different reasons and capacities for investing. We’ll take a look at some scenarios in the next section. Do the co-owners need to inhabit the home together? Only if that’s the plan. No one, legally speaking, is allowed to keep any part of the home off-limits to the other co-owner(s). In other words, the co-owners, even if they hold unequal portions of the property, enjoy a right to of access to all of it. But they can buy a home together without any intention to physically share it. Scenarios: Why Co-Buy Many people decide to share equity in their homes. Payments and expenses can be collaborative investments. Co-buying with a friend, business colleague, or sibling as tenants in common may help one or more of the co-buyers become homeowners. One owner might be on firmer financial ground than the other, and offer to be a co-buyer in order to help the other buy. The plan might involve refinancing later, in order to transfer the title into sole ownership, without the benefactor. A lender may want the additional co-signer on the loan to be a co-owner, so the financially stronger person has a stake in the asset. In this case, the primary buyer will live in the house, pay for the house, make all mortgage and tax payments, and take full responsibility for repairs, homeowner’s association dues, landscaping, and so forth. “Owner B” will pay nothing, and is only in the tenancy in common to help “Owner A” buy and have real estate. “Owner B” may take the lower percentage of ownership the lender allows. Later, when “Owner A” achieves sole ownership, only the smaller portion needs to be conveyed from B to A, so the new sole owner will have a lower transfer tax. These co-owners should think through every what-if scenario. What if “Owner B” passes away before the refinancing and transfer to sole ownership is complete? Did the co-owners create a legal agreement, explaining what should happen to the property if one co-owner dies during a temporary co-ownership? By default, the house will go into probate. Another reason for co-buying with a small ownership percentage could involve a condo purchase. Condo properties generally limit the renting of units and restrict owner-investors to some extent. A tenancy in common with unequal interests can be a workaround for the investor—if the mortgage lender approves of the ownership disparity on the deed. How the Mortgage Works for a Tenancy in Common If co-owners are taking title without having to finance the home, their unequal ownership percentages are up to them. They could have 99% and 1% interests; they tenancy in common allows for it. But if the house is financed, a lender is unlikely to let one borrower have minimal rights to the asset’s value. The point of requiring co-owners is to have everyone on the loan share responsibility for paying it back. Ultimately, the lender wants the option to claim the whole property in the event of default—thus, banks like co-signers to be co-owners. In reality, though, just one person might be paying the mortgage, and the other is on the deed in name only. “Owner B,” the Good Samaritan co-borrower, should be aware that no one is exempt from responsibility for paying off the mortgage and prepare for that unintended possibility. Selling: What Happens When a Co-Owner Wants Out When co-owners buy a home in a mutually beneficial agreement, they can later sell and divide the proceeds according to their share percentages. But tenants in common do not need to all be on board with selling at the same time. The co-owners in a tenancy in common: Can sell or take a loan out against their own share. Can sell their own interests in the property without the other owners’ consent. Cannot sell the entire property (forcing the others to sell) without the others’ consent. People can come into, as well as leave, the agreement. At any time, a new co-owner may come on board. At this time, the current group will need to convey their deed to the new, larger group—while leaving their original agreement intact. Unmarried tenants in common must pay tax when selling the property in whole or in part. Yet owners who make capital gains from the sale are eligible to exclude up to $250,000 of that profit from income tax, if they meet the IRS requirements. Last Wishes: What Happens When a Co-Owner Passes A tenancy in common differs from a joint tenancy with rights of survivorship. Should one of the owners pass away during the tenancy in common, that property interest winds up in probate, in the deceased homeowner’s estate. Put in another way, tenants in common may leave their portions of the property to any beneficiaries they designate in their wills. Upon any co-owner’s death, the living co-owners could wind up sharing ownership of the home with a beneficiary they do not know. This problem can be averted through a consultation with a wills and estates lawyer early in the process. In short, co-owners: Can pass their ownership shares to their named beneficiaries; and Cannot automatically pass the right of survivorship when they pass away. The Co-Ownership Agreement It can be well worth the time to hammer out a co-ownership agreement so the owners agree on how they will behave in certain situations. If the state in which the home exists allows it, co-owners in the tenancy in common may forge a written agreement to let one co-owner live in the house exclusively. They can also allocate responsibility for repairs and expenses. It helps to lay out in writing: What percentages in ownership shares the co-owners hold. Who will live in the house. How the rooms will be allocated if more than one owner will live in the house. Who is responsible for various up-front costs during the buying process. Who will cover the monthly mortgage loan payments, insurance, association fees, taxes, and other normal expenses. Who will handle other responsibilities desired by the group. A date by which refinancing and title transfer must occur if, for example, one owner is expected to achieve improved financial footing and become the sole owner. How the parties intend to bequeath their interests should one of them pass away.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

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How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

QUIT CLAIM DEED

Quitclaim Deed Quitclaim Deeds can be complicated legal documents. They are commonly used to add/remove someone to/from real estate title or deed (divorce, name changes, family and trust transfers). Last updated: April 9, 2021 The quitclaim deed is a legal document (deed) used to transfer interest in real estate from one person or entity (grantor) to another (grantee). Unlike other legal conveyance deeds, the quitclaim conveys only the interest the grantor has at the time of the deed's execution and does not guarantee that the grantor actually (legally) owns the property. Without warranties, the quitclaim deed offers the grantee little or no legal recourse against the seller if a problem with the title arises in the future. This lack of protection makes a quitclaim unsuitable when purchasing real property from an unknown party in a traditional sale. It is, however, a useful instrument when conveying property from one family member or spouse to another, and it is commonly used in divorce proceedings or for estate planning purposes. Title companies may require a person to execute a quitclaim document in order to clear up what they consider to be a cloud on the title prior to issuing title insurance. Similarly, prior to funding a loan, lenders may ask someone who is not going to be on a loan, such as a spouse, to complete and record a deed quit claiming their

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WARRANTY DEED

Warranty Deed, the Most Common Deed in Real Estate Of all the real estate deeds, General Warranty Deeds provide the most protection to the grantee (buyer). This type of deed guarantees that the grantor (seller) holds a clear title to a piece of real estate and has a right to sell it to the grantee. The guarantee is not limited to the time the grantor owned the property as with a special warranty deed; rather, it extends back to the property's earliest title. As such, earlier grantors occasionally find themselves confronted by issues from future grantees. The grantors also guarantee that, during their period of ownership, they did not encumber the property in any way that prohibits its transfer. Incorporate express references to any easements, restrictions, or other agreements of record that relate to the specific parcel of land, into the text of the deed. Providing this information puts the grantee on notice of the warranty's limitations and upholds the covenant against encumbrances. Traditionally, general warranty deeds include six common law covenants of title. Those six covenants can be separated into two categories: present covenants and future covenants. Present Covenants: Covenant of seisin: the grantor promises that he/she holds valid title to and possession of the property Covenant of right to convey: the grantor guarantees that he/she may legally convey both title to and possession of the property Covenant against encumbrances: the grantor legally declares the property to be free of any liens (encumbrances) unless stated in the deed Future Covenants: Covenant of warranty: the grantor will protect and defend the buyer against anyone who claims a superior title to the property Covenant of quiet enjoyment: the grantee will be able to access and use the property without restrictions Covenant of further assurances: the grantor will take reasonable actions necessary to resolve defects in the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

GRANT DEED

Grant Deed A grant deed is a legal document that is used to transfer (convey) rights in real property from one entity or person (the grantor) to another (the grantee). A grant, or bargain and sale deed, contains no express warranties against encumbrances. It does, however, imply that the grantor holds title and has possession of the property. The language used in the granting clause is usually "ABC grants and releases," or "XYZ grants, bargains, and sells," and is often dictated by statute. Because the warranty is not specifically stated, the grantee has little recourse if title defects appear later. In some states, this deed is used in foreclosures and tax sales. Each party transferring an interest in the property, or the grantor, is required to sign it. Then, the document must be acknowledged before a notary public (notarized) or other official authorized by law to administer oaths. The notary public or other official then places a seal and marks the document accordingly. The grant deed must be notarized in order to provide evidence that the instrument is genuine, as transaction documents are sometimes forged. The grant deed must also include a legal description of the property, which includes boundaries and/or parcel numbers. In most cases Grant deeds do not need to be recorded to be valid; however, it is in the grantee's best interest to record the deed at the country recorder's office in the county where the property is located. The law recognizes a grant deed in writing. Hence, it must be an original and filed with the proper government authority. The deed must indicate the involved parties, which is both the grantor (seller) and the grantee (buyer). It must clearly state a legal description of the property being transferred. Guarantees and responsibilities must be stated in the deed as well. These guarantees indicate that the grantor owns the property free and clear, and the seller assumes the responsibility for settling any future claims. If there is a time limit on the guarantees, it must also be incorporated in the deed. The finished copy of the deed must be duly signed by the parties and notarized according to law. The grantor settling any future claims on the property is the main criterion of writing a grant deed. However, this depends on the stipulated period, i.e., for the duration of time when the grantor maintains the rights to the property before the deed comes into effect. This clause is akin to general warranty deeds in some states, while a limited warranty deed for others. The seller is obliged to prove the falsehood of any claim challenge, and if the grantor fails to prove the claim fraudulent then he/she must pay the amount to settle the claim. Further, if the claim remains unsettled and the grantee must forgo the ownership, the grantor must return the amount to the buyer. The amount also involves the cost of renovating or improving the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CORRECTION DEED

Correction Deed - Correcting A Recorded Deed Once a deed has been recorded, it is part of the public record and cannot be changed. It is possible, however, to amend that record by adding a newly executed deed, usually called correction or corrective deed, deed of correction, or, in some states, deed of confirmation. As a confirmatory instrument, it perfects an existing title by removing any defects, but it does not pass title on its own. A correction deed confirms the covenants and warranties of the prior deed. It needs to refer to that instrument by indicating its execution and recording date, the place of recording, and the number under which the document is filed. It also must identify the error or errors by type before supplying a correction. The body of this new deed contains the same information as the original deed and thus confirms the conveyance of title. Generally, all parties who signed the prior deed must sign the correction deed in the presence of a notary, who will acknowledge its execution. A corrective deed is most often used for minor mistakes, such as misspelled or incomplete names, missing or wrong middle initials, and omission of marital status or vesting information. It can also be used for obvious errors in the property description. For example, errors transcribing courses and distances; errors incorporating a recorded plat or deed reference; errors in listing a lot number or designation; or omitted exhibits that supply the legal description of the property. A correction deed can also amend defects in the execution or acknowledgment of the original deed. Resolving material errors often causes confusion. A material correction constitutes an actual change in the substance of the deed, such as changing the legal description, adjusting the amount of consideration, and adding or removing names. Some states allow a corrective instrument to address these flaws, but others require an entirely new deed. Non-material changes are generally typographical in nature and may be adjusted with a less involved correction. For example, some states accept a re-submission of the original deed with corrections, along with a cover page that contains a correction statement, error identification, and clear reference to the previously recorded deed. Depending on the error type and gravity, re-acknowledgment may not be required under such circumstances. In some states, an affidavit of correction or a scrivener's affidavit may be recorded and serve as notification of an error in a recorded deed. It is usually reserved for minor corrections and typographical mistakes, and it can often be given by persons other than the parties of the original instrument, as long as reasons for the correction and knowledge of the facts corrected are stated and evidence of notification of the original parties or their heirs are provided. However, it does not constitute an actual correction of the original deed in the way a corrective deed does. Changes affecting the legal description of the property are often sensitive in nature and best handled by a new corrective deed, signed by the original grantor. Some states generally recommend that both parties, that is, the grantor and grantee, sign a corrective instrument to assure valid title. For larger errors or to include/omit a name from the existing deed, a new standard conveyance, such as a warranty or quitclaim deed, may be more appropriate than a correction

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TRANSFER ON DEATH DEED

Transfer on Death Deed Setting up real estate to be transferred upon your death. Real estate is often one of the most significant assets to consider in a comprehensive estate plan. There are a number of ways to distribute the property after the owner's death. Some of the more common options are wills, trusts, joint ownership, or transfer on death (TOD) deeds. Note: unless identified otherwise, all definitions originated with Black's Law Dictionary, Eighth Edition. Wills are probably the first thing people think of when considering how to handle their assets. More specifically known as a last will and testament, this is the most recent document by which a person directs his or her estate to be distributed upon death. Regardless of other available tools, almost everyone should have something in place for this purpose. A well-constructed will reinforces other estate planning strategies, such as a trust or a transfer on death instrument. On the surface, wills appear simple, and they can be, but their complexity tends to increase quickly. In addition, changes demand a review of the entire document and can incur legal and filing fees associated with every update. Real property distributed by a will must pass through probate, which adds time and expense to the process. Provisions exist to simplify things for smaller estates, but otherwise, both wills and probate can be tricky and are best approached by an attorney. A trust is a property interest held by one person (the trustee) at the request of another (the settlor) for the benefit of a third party (the beneficiary). The structure and purpose can vary -- there are dozens of different kinds of trusts, and variations within each type. They can exist independently from a will (nontestamentary), or be triggered by provisions found in a will (testamentary). It is important to seek legal guidance when arranging a trust because the wrong choice can have serious financial consequences. Because of these and other issues, it makes sense to consult an attorney to construct, administer, and modify a trust. Survivorship tenancy is a form of shared ownership that identifies the joint owner's right to the whole title upon the death of the other joint owner. The remaining owner(s) gains the title as a function of law, meaning it happens almost automatically (in theory). Three primary forms of property ownership support the right of survivorship: most joint tenancy, tenancy by the entirety, and some community property. Note that tenancy by the entirety and community property are only available to couples who are either married or in a legal civil union. For clarity, the right of survivorship must be written into the portion of the deed that identifies how the owners will hold title to the property. The exact format and wording may vary by state, but something along the lines of "John Doe and Jane Doe, as joint tenants with right of survivorship, and not as tenants in common." Survivorship tenancies can lead to potential complications. For example, the property could be at risk if one owner has credit problems or other financial issues. Real estate held this way cannot be included in a will except by the last surviving owner. Any sale or transfer of the property requires participation from all co-tenants or the joint tenancy is broken and changes to tenancy in common. Life is unpredictable, and sometimes the best way to handle an unexpected situation is to change or even revoke (cancel) a beneficiary designation. The established tools discussed above can be cumbersome and expensive to modify, and savvy clients needed more flexibility in their estate planning. Enhanced life estate, or "Ladybird" deeds, originated as the earliest direct answer to those demands. These deeds provided landowners with a responsive, non-probate option to direct the distribution of their real estate after death. They build on the premise of the life estate, which immediately transfers ownership of the property to the grantee/beneficiary, but allows someone else named in the document to live there for the remainder of his/her life. Traditional life tenants have little or no control over what happens to the property after they die. The "enhanced" part comes in with the reservation of powers to the grantor/owner on an otherwise standard warranty, grant, or quitclaim deed. When executed, grantors transfer the property to one or more grantees/beneficiaries but convey a life estate back to themselves, and reserve the power to sell the property outright, change or revoke the future transfer, or otherwise use the real estate as they wish, with no restrictions other than the requirement to formally record the changes during their natural lives. This reservation of powers enables landowners to retain full title rights, preserving their homestead status (if claimed) as well as any deductions, protections, and tax exemptions associated with the real estate during their lifetimes. The remainder, if any, goes to the named grantees/beneficiaries after the owner's death, thereby avoiding the probate process. Ladybird deeds are most common in Michigan, Florida, California, and Rhode Island. Even though they have been used and accepted for years, enhanced life estate deeds are not generally statutory (Rhode Island is one exception. See R.I.G.L. 34-4-2.1). Some states decided to take the concept of an enhanced life estate a step further and include laws for real property transfers on death (TOD) in their statutes. For example, Arizona (A.R.S. section 33-405) and Colorado (C.R.S. 15.15.401, et seq.) offer statutory beneficiary deeds. Ohio codified its transfer on death designation affidavit at ORC 5302.22 et seq. While Ladybird and beneficiary deeds, as well as other state-specific instruments, are still in use, a newer, but related, approach is gaining popularity -- a transfer on death deed under the Uniform Real Property Transfer on Death Act (URPTODA). Unlike wills, trusts, or survivorship tenancies, which tend to follow the same rules across the US, TOD instruments vary according to each state's interpretation and application of the law. Completed in 2009, the URPTODA describes the Uniform Law Commission's process to unify and standardize the use of these non-probate transfers. In addition to the associated definitions and rules, the Act contains model forms for both a deed and a revocation instrument. So far, Alaska, Hawaii, Washington, Oregon, Nevada, North Dakota, South Dakota, Nebraska, New Mexico, Illinois, West Virginia, Virginia, the District of Columbia, and most recently, Texas have chosen to enact the URPTODA, modified as needed to incorporate existing state laws and customs. Variations exist among the different transfer on death instruments, but they include specific common features: All initial and subsequent documents related to the transfer on death must be executed and recorded, in the county where the property is situated, during the owner's natural life or they have no effect. Executing transfer on death instruments requires the same competency as a will does. Transfers on death only convey the owner's interest in the property, if any, present at the time of death. Owners retain full title and absolute control over the real estate, its use, and its distribution until death. Beneficiaries have no rights to or interest in the property during the owner's lifetime. The form must state that the transfer is revocable. The power to revoke is at the heart of transfer on death instruments. Because of this feature, there is no obligation for the owner to provide notice to or collect consideration from the beneficiary (consideration implies a transfer of ownership that is not present here). Even so, many grantors inform beneficiaries about the potential transfer in order to save confusion later. The property is taken with all restrictions, easements, and debts in place, including mortgages. TOD instruments must meet state and local content and format requirements for real estate deeds. There are three primary ways to revoke a recorded transfer on death instrument: Execute and record an instrument of revocation Execute and record a new transfer on death instrument, explicitly revoking any previously recorded transfers on death related to the same property Convey all interest in the property to someone who is uninvolved with the original transfer. This option is possible because the owner retains full ownership of the property, and also because there is no consideration associated with TOD instruments. The procedure to collect the property transferred at death often differs from state to state. Generally, the beneficiary records an official copy of the owner's death certificate, accompanied by an affidavit containing details about the interest conveyed and the recorded TOD instrument. Some states simplify the situation and include a specific affidavit form in their statutes. Transfer on death deeds have some potential drawbacks, though. For example, recorded transfers on death might interfere with eligibility for state and federal assistance programs, and could trigger an estate recovery process for recipients of Medicaid's long term care benefits. In addition, some people might encounter difficulty obtaining title insurance or mortgaging the property when such documents appear in a title search. In most cases, beneficiaries take the property with no warranties of title, which could leave them at risk from outside claims against the property if there were any irregularities in the ownership history (chain of title). Two or more beneficiaries vest as tenants in common, meaning that they each get an individual share of the title. There are some exceptions, though, especially with enhanced life estate deeds, so consult a local attorney with specific questions. Property held jointly requires both owners to join in the TOD deed to ensure transfer to the named beneficiary. Otherwise, the transfer could be invalidated because the property is automatically distributed to the remaining co-owners. Survivorship tenants wishing to execute TOD deeds should review state laws concerning joint tenancy, or seek legal advice. Transfer on death instruments are flexible and convenient, and offer owners of real property a responsive tool for estate planning. Even so, they are not necessarily appropriate for everyone. Each circumstance is unique, so take the time to review and understand the relevant laws and customs. Finally, don't hesitate to contact an attorney with specific questions or for complex

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

AFFIDAVIT OF DEED

Affidavit of Deed Protect Yourself from Unrecorded Real Estate Transfers In general, a real estate deed must be delivered to and accepted by the grantee(s) to be properly executed or valid. Since most states do not require the grantee's signature on a deed, the grantor may find it difficult to prove delivery and acceptance. With the Affidavit of Deed form, grantors in a transaction can verify the date of the completed conveyance and protect themselves from future claims or questions when applying for Medicaid or other asset-based benefit programs. An affidavit is a sworn statement, made in front of a notary or other officer authorized to administer oaths. An affidavit of deed confirms delivery and acceptance of a deed by the grantee, and thereby its validity. It is a useful document because most states only require the grantor's signature on a deed, so it can be difficult to prove delivery and acceptance, both of which are required to have a properly executed deed in many states. With a correctly executed affidavit of deed, grantors in a transaction are able to prove the date of the completed conveyance and protect themselves from future claims regarding ownership of their former property. In addition, Medicaid and other asset-based benefit programs often uncover title problems when processing applications. If the grantor is protected by an affidavit of deed, these issues are generally easier to resolve. Unsuspecting homeowners have found their wages garnished, their credit destroyed, and their tax refunds seized, all because of unrecorded deeds for property they thought they sold. They've opened their mail to find bills for back taxes, graffiti-scrubbing services, demolition crews, and trash removal. They answered their front doors to encounter bailiffs brandishing summonses to appear in court. In some cities, people in this situation can be sentenced to probation with the threat of jail if they don't bring their houses into compliance. There has been much talk about so-called Zombie Titles in the wake of the recent foreclosure crisis. While an affidavit of deed will not directly help in these situations unless the foreclosing lender accepts a deed in lieu of foreclosure and signs an affidavit, it will help in similar situations caused by unrecorded deeds. For example, Tom Homeseller inherited a vacant house and no longer wants it. He sells the house to a company that specializes in managing low-end rental properties. Mr. Homeseller prepares the deed, signs it, and delivers it to the company buying the property. Despite the fact that the company placed tenants in the house (and collected rent from them), they never bothered to record the deed. The company also failed to provide suitable property insurance, to pay the real estate taxes, or even to cover the water and sewer bills. A few years go by and the house catches fire. The company walks away from the property. The tax collectors come after Mr. Homeseller since the deed was never recorded and his name still appears on the title as the owner the property. For the same reason, he is also obligated to pay the removal and cleanup costs of the property as required by local codes. He could even be held responsible for any loss the tenants suffered if the fire was a result of poor maintenance. Without an affidavit of deed, signed by the grantee, Mr. Homeseller will have a difficult time proving that he ever sold the property. These are just a few reasons why the grantor should require the grantee to sign an affidavit attesting to the deed whenever ownership of or interest in real property is transferred from one party to another. Information deemed reliable but not guaranteed, you should always confirm this information with the proper agency prior to acting. The materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. These materials are intended, but not promised or guaranteed to be current, complete, or

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

IF YOU ARE A PURCHASER OF AN INVESTMENT PROPETY YOU NEED TO OBTAIN AN ETOPPEL CERTIFICATE TO AVOID LAWSUITS AND POTENTIAL CLOUDS ON TITLE

An Estoppel Certificate (or Estoppel Letter) is a document often used in due diligence in Real estate and mortgage activities. It is a document often completed, but at least signed, by a tenant used in their landlord's proposed transaction with a third party. A mortgage lender intending to collateralize a tenant-occupied property or a purchaser intending to purchase such a property will often want to verify certain representations made by the landlord. An estoppel certificate provides confirmation by the tenant of the terms of the rental agreement, such as the amount of rent, the amount of security deposit, and the expiration of the agreement. Further, the estoppel certificate may give the opportunity to the tenant to explain if they may have any claims against the landlord, which may affect a buyer's or lender's decision to complete the proposed transaction. Some lease agreements require the tenant to complete such a certificate or to waive their responses by allowing the landlord to complete the estoppel certificate under certain circumstances.[ If the language in the lease so provides, a tenant can be in default under a lease after failing to comply with a request from the landlord for an estoppel certificate. The majority of commercial leases include a provision establishing the requirements for the provision of a tenant estoppel certificate following the landlord's

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

PENDING RENTER CRISIS

At the coronavirus pandemic’s onset in March 2020, millions of people saw cuts to their work hours, and millions more were laid off. The result of this was an inability to pay rent, and in response to lost wages, the federal government offered rental assistance through the CARES Act, while a September executive order directed federal agencies to halt evictions for some renters.  One year later, the pandemic’s persistence threatens to expose the cracks in federal and state policy designed to absorb renter shock and prevent landlords from evicting tenants who cannot pay rent. Expiring eviction moratoriums raise the question that housing justice advocates have long wondered: How will we face a potential eviction cliff? Advocates are worried that tens of billions in rent debt coupled with an expiring eviction moratorium will lead to mass evictions. Rent debt (the unpaid rent between the months of March 2020 and April 2021) plagues as many as 14.2 million renter households across the country. There are about 43 million renting households in the U.S., accounting for nearly one-third of the country’s housing market. And much like the pandemic itself, rent debt — and a potential eviction — is a crisis that also disproportionately burdens the least resourced in the country, like poor people, people of color, disabled people, and immigrants.   An eviction crisis was brewing even before the pandemic struck, prompted by multiple forms of income inequality and socioeconomic class stratification. According to the non-partisan Economic Policy Institute, wages for low-earning people have not risen in recent decades while income for the very rich has skyrocketed. Taken together, this led to a widening income gap between low-wage workers (who tend to be renters) and those in the top 10 percent of earners (who are likely to be salaried white-collar workers).   Because of a system that increases profits for business owners while keeping wages low for workers, renters have only saved 2.4 percent of their income in the past two decades, or about $440 in today’s dollars, according to the Urban Institute. While wages have plateaued, the cost of rent has continued to increase across the country in the past decade — as much as 90 percent in large cities. In some cases, renters are paying over 70 percent of their income on housing costs, leaving little money for food and other expenses while making saving extraordinarily difficult, if not impossible.  Behind the economics of the situation are the political conditions: The federal government has never guaranteed affordable home purchases and there is no federal right to housing. American social and legal structures don’t have adequate backstops and protections for renters, and generational wealth is built and sustained through property ownership.  Renters who do face eviction see a ripple of negative effects. Landlords are less likely to rent to those who’ve faced eviction proceedings, which means that renters might be forced into choosing homes in neighborhoods with under-resourced schools, fewer hospitals, fewer grocery stores, and less public transportation, meaning that a home isn’t just a home: neighborhoods can be determinative of life outcome.  “There are so many renters who are basically facing homelessness,” says Shanti Singh, the communications and legislative director of Tenants Together, a California-based coalition of tenant’s rights organizations. Without state or federal legislative action and broad cultural change, Singh says that California’s 18 million renters could be headed for the eviction cliff. In California, renters face $2.4 billion in rent debt, which Singh explains will remain with families long after individuals are vaccinated. While we know that the economic fallout of the pandemic will persist, it’s unclear if state and federal protections will. Singh says that at the very least, California needs to pass a legislative extension of protection against evictions and institute policies that achieve a just recovery where renters are able to find work again without having to shoulder the burden of repaying thousands of dollars of rent debt. Other than legislative proposals to forgive debt increase wages, and allow renters to save money and build wealth, Singh says that broad cultural shifts are needed to value renters in the ways homeowners are. “Renters blame themselves for what’s happened to them [and] for their inability to pay rent, [but] they did not lose their jobs on purpose,” Singh says. “When you see the ways people take it out on themselves, it speaks to [the] culture that we have to change where we blame the most vulnerable people in our

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

PENDING RENTAL MARKET CRISIS FOR RENTERS

At the coronavirus pandemic’s onset in March 2020, millions of people saw cuts to their work hours, and millions more were laid off. The result of this was an inability to pay rent, and in response to lost wages, the federal government offered rental assistance through the CARES Act, while a September executive order directed federal agencies to halt evictions for some renters.  One year later, the pandemic’s persistence threatens to expose the cracks in federal and state policy designed to absorb renter shock and prevent landlords from evicting tenants who cannot pay rent. Expiring eviction moratoriums raise the question that housing justice advocates have long wondered: How will we face a potential eviction cliff? Advocates are worried that tens of billions in rent debt coupled with an expiring eviction moratorium will lead to mass evictions. Rent debt (the unpaid rent between the months of March 2020 and April 2021) plagues as many as 14.2 million renter households across the country. There are about 43 million renting households in the U.S., accounting for nearly one-third of the country’s housing market. And much like the pandemic itself, rent debt — and a potential eviction — is a crisis that also disproportionately burdens the least resourced in the country, like poor people, people of color, disabled people, and immigrants.   An eviction crisis was brewing even before the pandemic struck, prompted by multiple forms of income inequality and socioeconomic class stratification. According to the non-partisan Economic Policy Institute, wages for low-earning people have not risen in recent decades while income for the very rich has skyrocketed. Taken together, this led to a widening income gap between low-wage workers (who tend to be renters) and those in the top 10 percent of earners (who are likely to be salaried white-collar workers).   Because of a system that increases profits for business owners while keeping wages low for workers, renters have only saved 2.4 percent of their income in the past two decades, or about $440 in today’s dollars, according to the Urban Institute. While wages have plateaued, the cost of rent has continued to increase across the country in the past decade — as much as 90 percent in large cities. In some cases, renters are paying over 70 percent of their income on housing costs, leaving little money for food and other expenses while making saving extraordinarily difficult, if not impossible.  Behind the economics of the situation are the political conditions: The federal government has never guaranteed affordable home purchases and there is no federal right to housing. American social and legal structures don’t have adequate backstops and protections for renters, and generational wealth is built and sustained through property ownership.  Renters who do face eviction see a ripple of negative effects. Landlords are less likely to rent to those who’ve faced eviction proceedings, which means that renters might be forced into choosing homes in neighborhoods with under-resourced schools, fewer hospitals, fewer grocery stores, and less public transportation, meaning that a home isn’t just a home: neighborhoods can be determinative of life outcome.  “There are so many renters who are basically facing homelessness,” says Shanti Singh, the communications and legislative director of Tenants Together, a California-based coalition of tenant’s rights organizations. Without state or federal legislative action and broad cultural change, Singh says that California’s 18 million renters could be headed for the eviction cliff. In California, renters face $2.4 billion in rent debt, which Singh explains will remain with families long after individuals are vaccinated. While we know that the economic fallout of the pandemic will persist, it’s unclear if state and federal protections will. Singh says that at the very least, California needs to pass a legislative extension of protection against evictions and institute policies that achieve a just recovery where renters are able to find work again without having to shoulder the burden of repaying thousands of dollars of rent debt. Other than legislative proposals to forgive debt increase wages, and allow renters to save money and build wealth, Singh says that broad cultural shifts are needed to value renters in the ways homeowners are. “Renters blame themselves for what’s happened to them [and] for their inability to pay rent, [but] they did not lose their jobs on purpose,” Singh says. “When you see the ways people take it out on themselves, it speaks to [the] culture that we have to change where we blame the most vulnerable people in our

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

PURCHASING A PROPERTY SUBJECT TO

What Buying Subject-To Means Buying subject-to means buying a home subject to the existing mortgage. It means the seller is not paying off the existing mortgage. Instead, the buyer is taking over the payments. The unpaid balance of the existing mortgage is then calculated as part of the buyer's purchase price. Under a subject-to agreement, the buyer continues making payments to the seller’s mortgage company. However, there’s no official agreement in place with the lender. The buyer has no legal obligation to make the payments. Should the buyer fail to repay the loan, the home could be lost to foreclosure. However, it would be in the original mortgagee’s name (i.e., the seller). Reasons a Buyer May Purchase a Subject-To Property The biggest perk of buying subject-to real estate is that it reduces the costs to buy the home. There are no closing costs, origination fees, broker commissions, or other costs. For the real estate investor who plans to rent or re-sell the property down the line, that means more room for profits. For most homebuyers, the primary reason for buying subject-to properties is to take over the seller's existing interest rate. If present interest rates are at 7% and a seller has a 5% fixed interest rate, that 2% variance can make a huge difference in the buyer's monthly payment. For example: A $200,000 mortgage at a 5% interest rate is amortized at a payment of $1,073.64 per month A $200,000 mortgage at a 7% interest rate is amortized at a payment of $1,330.60 per month The monthly savings to a buyer under these circumstances is $256.96 or $3,083.52 per year Another reason certain buyers are interested in purchasing a home subject-to is they may not qualify for a traditional loan with favorable interest rates. Taking over the existing mortgage loan may offer better terms and fewer interest costs over time. Buying subject-to homes is a smart way for real estate investors to get deals. Often, investors will use county records to locate borrowers who are currently in foreclosure. Making them a low, subject-to offer can help them avoid foreclosure (and its impact on their credit) and result in a high-profit property for the investor. Three Types of Subject-To Options A subject-to sale does not necessarily involve owner financing, but it could. Whether the seller carries any type of financing depends on whether they wrap the mortgage or the amount of the down payment versus the purchase price. There are three types of subject-to options: A Straight Subject-To Cash-To-Loan The most common type of subject-to is when a buyer pays in cash the difference between the purchase price and the seller's existing loan balance. For example, if the seller's existing loan balance is $150,000 and the sales price is $200,000, the buyer must give the seller $50,000. A Straight Subject-To With Seller Carryback Seller carrybacks, also known as seller or owner financing, are most commonly found in the form of a second mortgage. A seller carryback could also be a land contract or a lease option sale instrument. For example, let's say the home's sales price is $200,000, with an existing loan balance of $150,000. The buyer is making a down payment of $20,000. The seller would carry the remaining balance of $30,000 at a separate interest rate and terms negotiated between the parties. The buyer would agree to make one payment to the seller's lender and a separate payment at a different interest rate to the seller. Wrap-Around Subject-To A wrap-around subject-to gives the seller an override of interest because the seller makes money on the existing mortgage balance. For example, an existing mortgage carries an interest rate of 5%. If the sales price is $200,000 and the buyer puts down $20,000, the seller's carryback would be $180,000. At a rate of 6%, the seller makes 1% on the existing mortgage of $150,000 and 6% on the balance of $30,000. The buyer would pay 6% on $180,000. The Difference Between a Subject-To and a Loan Assumption In a subject-to transaction, neither the seller nor the buyer tells the existing lender that the seller has sold the property. The buyer is now making the payments. The buyer did not obtain the bank's permission to take over the loan. Lenders put special verbiage into their mortgages and trust deeds that give the lender the right to accelerate the loan and invoke a “due-on” clause in the event of a transfer. This clause simply means the loan balance is due in full. Not every bank will call a loan due and payable upon transfer. In certain situations, some banks are simply happy that somebody—anybody—is making the payments. But banks can exercise their right to call a loan due to the acceleration clause in the mortgage or trust deed, which is a risk for the buyer. If the buyer can't pay off the loan upon the bank's demand, it could initiate foreclosure. If a buyer makes a loan assumption, the buyer formally assumes the loan with the bank's permission. This method means the seller's name is removed from the loan, and the buyer qualifies for the loan, just like any other kind of financing. Generally, banks charge the buyer an assumption fee to process a loan assumption. The fee is much less than the fees to obtain a conventional loan.  FHA loans and VA loans allow for a loan assumption. However, most conventional loans do not. Pros and Cons of Buying Subject-To Real Estate Subject-to properties mean a faster, easier home purchase, no costly or hard-to-qualify-for mortgage loans, and potentially more profits if you're looking to flip or resell the home. On the downside, subject-to homes do put buyers at risk. Since the property is still legally the seller's liability, it could be seized should they enter bankruptcy. Additionally, the lender could require a full payoff if it notices the home has transferred hands. There can also be complications with home insurance

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REPAYING THE FIRST TIME HOME BUYERS CREDIT

Have you claimed the first-time homebuyer tax credit? For some buyers, it's time to start repaying Uncle Sam. Introduced in 2008, the first-time homebuyer tax credit originally was a type of interest-free loan. Anyone who purchased a house in 2008 and claimed the credit the following spring on their tax return would have to repay the sum starting two years later. That means the first payment is due in April. The government waived the payback rule for homes purchased in 2009 and after unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase. Still, the Internal Revenue Service maintains specific rules for getting the full benefit of the tax credit. Here's what you need to know: The repayment plan If you claimed the first-time homebuyer tax credit in 2008, you have to start paying it back this tax-filing season. Repayment is made in equal installments over 15 years. So, if you claimed the maximum $7,500 credit, you'll owe $500 per year. To make the payment, you have to file Form 5405, which is available in the free and basic versions of most tax-prep software, including those offered through the Internal Revenue Service's Free File program. Don't know how much you owe? Check your mail: The IRS sent letters outlining the amount of credit you received and what you owe this year. Exceptions to the rule There are few ways to avoid repaying the credit, unfortunately. "You can't get around this," said Mark Luscombe, principal federal tax analyst for CCH, a provider of tax-prep software. "Even though Congress eliminated the repayment requirement in 2009, they didn't do it retroactively." Some exceptions exist, however. For one, if you've since gotten divorced and transferred the house to your ex as part of the settlement, you are no longer responsible for payments. Your ex-spouse is. Or, if you've sold the home, you owe only up to the amount of gain you made on the sale. In other words, if you pocketed $5,000 from selling your home, you're on the hook for only $5,000, not the full $7,500, if you claimed the maximum credit. If you incurred a loss, your debt to the IRS gets erased. To see a complete list of exceptions, visit tinyurl.com/co4sng. You could owe the lump sum If you sell your home or stop using the property as your main residence, the 15-year repayment plan goes out the window, and the full credit (or balance) is due in full that tax-filing season. A similar rule applies if you claimed the first-time homebuyer's credit in 2009 or 2010: For those buyers only, you owe the full credit if the home no longer serves as your principal residence within 36 months of buying the property. Sell after that three-year period, and you don't owe the credit. The maximum credit in 2009 and 2010 was $8,000 if you were buying a principal home for the first time, or $6,500 if you had been a homeowner. The government considers first-time homebuyers those "taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase," according to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

ASSIGNMENT AND ASSUMPTION AGREEMENTS

The Assignment and Assumption Agreement An assignment and assumption agreement is used after a contract is signed, in order to transfer one of the contracting party's rights and obligations to a third party who was not originally a party to the contract. The party making the assignment is called the assignor, while the third party accepting the assignment is known as the assignee. In order for an assignment and assumption agreement to be valid, the following criteria need to be met: The initial contract must provide for the possibility of assignment by one of the initial contracting parties. The assignor must agree to assign their rights and duties under the contract to the assignee. The assignee must agree to accept, or "assume," those contractual rights and duties. The other party to the initial contract must consent to the transfer of rights and obligations to the assignee. A standard assignment and assumption contract is often a good starting point if you need to enter into an assignment and assumption agreement. However, for more complex situations, such as an assignment and amendment agreement in which several of the initial contract terms will be modified, or where only some, but not all, rights and duties will be assigned, it's a good idea to retain the services of an attorney who can help you draft an agreement that will meet all your needs. The Basics of Assignment and Assumption When you're ready to enter into an assignment and assumption agreement, it's a good idea to have a firm grasp of the basics of assignment: First, carefully read and understand the assignment and assumption provision in the initial contract. Contracts vary widely in their language on this topic, and each contract will have specific criteria that must be met in order for a valid assignment of rights to take place. All parties to the agreement should carefully review the document to make sure they each know what they're agreeing to, and to help ensure that all important terms and conditions have been addressed in the agreement. Until the agreement is signed by all the parties involved, the assignor will still be obligated for all responsibilities stated in the initial contract. If you are the assignor, you need to ensure that you continue with business as usual until the assignment and assumption agreement has been properly executed. Filling in the Assignment and Assumption Agreement Unless you're dealing with a complex assignment situation, working with a template often is a good way to begin drafting an assignment and assumption agreement that will meet your needs. Generally speaking, your agreement should include the following information: Identification of the existing agreement, including details such as the date it was signed and the parties involved, and the parties' rights to assign under this initial agreement The effective date of the assignment and assumption agreement Identification of the party making the assignment (the assignor), and a statement of their desire to assign their rights under the initial contract Identification of the third party accepting the assignment (the assignee), and a statement of their acceptance of the assignment Identification of the other initial party to the contract, and a statement of their consent to the assignment and assumption agreement A section stating that the initial contract is continued; meaning, that, other than the change to the parties involved, all terms and conditions in the original contract stay the same In addition to these sections that are specific to an assignment and assumption agreement, your contract should also include standard contract language, such as clauses about indemnification, future amendments, and governing law. Sometimes circumstances change, and as a business owner you may find yourself needing to assign your rights and duties under a contract to another party. A properly drafted assignment and assumption agreement can help you make the transfer smoothly while, at the same time, preserving the cordiality of your initial business relationship under the original

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EXECUTORS DEED VS. ADMINISTRATORS DEED

What is the difference between an executors deed and an administrators deed? When dealing with the distribution of an estate after a person dies, you will likely either hear the term executor's deed and administrator's dee d. Both are documents designed to officially distribute property and transfer it to the decedents, but an executor's deed is used when the deceased left a will behind. An administrator's deed is the document of someone who died without official notification of how he or she wanted their property distributed. An executor is the person appointed by the deceased to see to it that property is distributed according to the will. The executor may be named in the will itself, or may have been officially given the role before the person in question passed away. The executor may also be an official, such as a lawyer – or it may be a family member, spouse, or friend. This depends entirely on the wishes of the deceased.Should a person die with property left behind and no will stating how to distribute it, the probate court will take responsibility for the property and appoint an administrator. This person is then given the official power to distribute the property. Legally, none of the family of the deceased has the right to this property until it has been officially handled by the probate court and released to them by the administrator.Both executors and administrators must prepare official deeds to transfer property titles into the names of those receiving them. The deeds generally must be officially worded and state the process by which the decision to transfer the property was made, whether it is in accordance with a will or by the judgment of the court-appointed administrator. The deed must be witnessed and notarized, and then becomes a legal and binding document. In any case, after a death, you should strongly consider speaking with a lawyer to handle the distribution of assets and other legal complexities that

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

IS AN ORAL AGREEMENT FOR THE SALE OF REAL ESTATE ENORCEABLE IN MISSOURI?

IS AN ORAL AGREEMENT FOR THE SALE OF REAL ESTATE ENORCEABLE? Generally, a verbal contract is binding in Missouri. However, there are certain circumstances in Missouri when a verbal contract is not enforceable. Those circumstances are described in Missouri’s “statute of frauds”. According to the statute, the following verbal contracts are not binding. EXECUTOR OR ADMINISTRATOR Any administrator of an estate will not bind the estate to pay for a claim against the estate unless the agreement is in writing and signed by the administrator. PROMISE TO PAY THE DEBT OF ANOTHER In Missouri, a guaranty to pay the debt of another person must be in writing and signed by the guarantor. A guaranty is a contract whereby the guarantor agrees to pay the debt of another in the event of a default. In Capital Group, Inc. v. Collier, defendant was the President of a company. The company entered into a credit agreement with plaintiff. The agreement signed by the defendant said that the undersigned will be liable for the payment “of any and all goods and/or services furnished by [plaintiff]”. Plaintiff contended that defendant was personally liable for the debt of the company, because he signed the agreement without indicating his title. The court disagreed, holding that the agreement did not clearly show that defendant intended to guaranty payments owed under the agreement. AGREEMENT IN CONSIDERATION OF MARRIAGE In the Estate of Kilbourn, Wayne and Marjorie Kilbourn entered into an antenuptial agreement stating that they relinquished all rights to the property of the other. Marjorie then died, and Wayne asserted that her estate owed him for labor and other things he provided to her property when she was alive. The court denied his claim and said that any modification of the antenuptial agreement must have been in a writing signed by Marjorie, as the antenuptial agreement had been made in consideration of the marriage. CONTRACT FOR THE SALE OF LAND In Shaffer v. Hines, the administrator of an estate obtained an order from the probate court to sell certain land owned by the estate. Defendant was the high bidder at the auction. Defendant tendered a check to the attorney for the administrator, made payable to the estate. He later stopped payment on the check. The administrator then sued the defendant, claiming that he breached his verbal contract to purchase the land. Both parties agreed that the check was not a written agreement to purchase the land. The court of appeals held that the verbal contract was not enforceable pursuant to Missouri’s statute of frauds. LEASE LONGER THAN ONE YEAR A lease for more than one year must be in writing and signed by the party against whom a breach is asserted. A lease for more than one year that is not in writing and signed is not a lease. Rather, the tenants are tenants at will. In fact, pursuant to Section 432.050 RSMo., any lease not in writing and signed creates a tenancy at will. A tenant at will may be terminated with one month’s notice. Missouri courts have interpreted the one month period to encompass one rent period. For example, if rent is due March 1st, the notice must be served on the tenant before March 1st. The tenancy will then terminate on April 1st. AGREEMENT NOT TO BE PERFORMED WITHIN ONE YEAR An agreement that cannot be performed within one year must be in writing and signed. In Sales Service v. Daewoo, plaintiff agreed to provide consultation services to defendant over three years in exchange for $40,000 per year. Plaintiff was also to receive a percentage of defendant’s sales during the three years. Plaintiff sent a memo to defendant to this effect, but defendant never signed it. Defendant sent numerous signed memos to plaintiff related to the agreement, but none of them stated that the agreement was for three years. After 23 months, defendant informed plaintiff that defendant would no longer perform the services of the agreement. Plaintiff sued defendant for the amount plaintiff would have received under the rest of the contract. However, the agreement had to be in a signed writing, because it could not be performed within one year. TAKE-AWAY Most rules have exceptions. Such is true with Missouri’s statute of frauds. In Missouri, if a party committed a fraud in the formation of a verbal contract covered by the statute of frauds, then the courts nonetheless have the discretion to enforce such verbal contract. However, the verbal contract must still conform to all of Missouri’s other requirements for the formation of a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CHECKLIST OF CLOSING DOCUMENTS

Checklist of Closing Documents for Home Buyers So, what kind of paperwork will you have to sign when you close? While the process can vary from one borrower to the next, there are some commonalities that apply to most situations. Here’s a checklist of common documents that are needed for the mortgage closing process. 1. The Mortgage Promissory Note This is one of the most important documents home buyers sign on closing day, and you’ll soon understand why. This doc is also referred to as the “mortgage note” for short, and sometimes just “the note.” By signing this document, you are agreeing to repay the mortgage loan as outlined within the document itself. The promissory note will contain important details relating to your loan, such as the total amount you owe, the interest rate assigned, the length of the repayment period (e.g., 30 years), and other key details. It also specifies where the payments are to be sent, and what happens in the even of default (where the borrower fails to repay the debt). As a home buyer and borrower, it’s crucial that you read this mortgage document at closing and ask questions about anything you don’t understand. The promissory note obligates you to repay the debt in the manner specified. So you want to make sure you understand it prior to signing. 2. The Mortgage / Deed of Trust / Security Instrument When you sign the previous closing document above (the promissory note), you’re agreeing to repay the loan in the manner outlined within that document. The actual mortgage or deed of trust, on the other hand, is what gives the lender a legal right to take the home back through foreclosure — should you fail to repay the debt. This closing document is also referred to as the “security instrument.” What you need to know is this: When you hear your lender talk about “the mortgage,” they’re most likely referring to this document in particular. The deed of trust is a fairly lengthy form, and most of it is boilerplate. As a borrower, you’ll want to pay particular attention to the fill-in-the-blank portions of the deed of trust / security instrument. Those are the sections that will contain information specific to your loan. 3. The deed (for property transfer). You’ll notice there are two closing documents on this list with “deed” in the title. They’re actually two separate things. Bear with me. The deed of trust mentioned earlier (a.k.a., “the mortgage”) gives the lender the right to foreclose on the home if you don’t make your payments. The “deed” covered here is the document that transfers ownership of the property from the seller to the buyer. The terminology here is confusing. So let’s clarify it again: Deed: Document used to give the new owner rights to the property. Deed of trust: Document that allows the lender to take the home in default scenarios. 4. The Closing Disclosure This is another important document home buyers sign at closing. Actually, you should receive this disclosure before the day you close. Federal law requires mortgage lenders to give borrowers a Closing Disclosure document three days prior to the scheduled close. This gives you time to review the disclosure and, if necessary, resolve any issues. As its title suggests, the Closing Disclosure shows how much money you’ll have to pay on the day you close. This includes whatever down payment is due, along with all of your other closing costs. Collectively, these items are referred to as your “cash to close” amount. In a typical home-buying scenario, the borrower will bring this amount to the closing in the form of a cashier’s check. A wire transfer is another option, but most people bring a check. Home buyers should review this mortgage closing document as soon as they receive it. If something looks different from what you expected, be sure to ask your loan officer and/or escrow agent about it. The idea is to get your questions answered and resolve any issues prior to the closing day, to avoid unwanted delays. 5. The initial escrow disclosure statement. This document, which home buyers usually sign at closing, shows the specific charges you will pay into your escrow account each month (in accordance with the terms of your mortgage agreement). An escrow account is a special kind of account used to pay property-related expenses. As a homeowner, you pay money into the account. And your mortgage lender or bank then uses those funds to pay your property taxes and home insurance premiums on your behalf. When you sign the initial escrow disclosure document at closing, you are basically agreeing to the terms of that arrangement. 6. The transfer tax declaration (in some states) This is a regional closing document that’s required in some states but not in others. So, depending on where you live, you might have to sign this document when you close on a home as well. It’s primarily used in states (and counties) that charge a property transfer tax. Both the home buyer and seller have to sign the transfer tax declaration, at or before

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A FINAL WALKTHROUGH?

What Is a Final Walkthrough? A final walkthrough is just like it sounds—it’s a walk through the house you’re about to buy. It’s an opportunity for you and your real estate agent to spend a few hours looking over the place—room by room, inside and out—to check that everything works as it should. Here’s what to know: The final walkthrough gives you time to confirm that the seller made agreed upon repairs, and to check that no new issues have cropped up since the home inspection (which happens earlier in the house-buying journey). It’s really rare (and often really awkward) for the seller and buyer to meet on final walkthrough day. But if the seller does hang around, they should have their realtor there, too. A final walkthrough is never a waste of time—even if you feel great about the house. Buying a home is probably the biggest purchase you’ll make in your lifetime, and you want to make the most of this chance to give it one more look before you commit! When Does a Final Walkthrough Happen? The walkthrough happens as close to closing day as possible—usually a few days before. It can sometimes happen on closing day itself. This part is important: Having the walkthrough near closing day means the house should be empty, giving you a good look at the whole place as a blank canvas. The seller should have moved out their stuff and hopefully not damaged floors and walls in the process. Be sure to clarify this with your real estate agent to make sure the timing of the walkthrough is after the seller moves out and not before. Otherwise, you’ll be left wondering if the movers are going to accidentally knock a dent in the wall between the time you last saw the house and the closing that makes it legally yours. You don’t want any nasty surprises on closing day! How Long Does a Final Walkthrough Take? It could take one hour. It could take four hours. It all depends on the size of the property you’re walking through! Let’s pretend you’re closing on a three bedroom, two bathroom detached home in five days. For your final walkthrough, you should set aside at least three hours from beginning to end. What Should You Take to the Final Walkthrough? Want to be prepared for anything? Bring these things: Home purchase agreement: This legally binding contract lays out the terms agreed upon by the seller and the buyer. It covers everything from the appliances included in the purchase to repairs that should be carried out before the final walkthrough. Home inspection report: This report contains the results of the home inspection. You can use it to review the issues the inspector flagged, then check that the seller made the necessary repairs. Pen, paper and sticky notes: These are handy to make notes and mark any areas in the house that need further attention—like drywall or mold. Camera: You’ll want to take photos of anything that concerns you in and around the house. Something to test outlets: A night-light or phone charger is useful when testing electrical outlets—especially if the seller agreed to fix specific ones around the house. What to Look For During a Final Walkthrough Your final walkthrough day has arrived! What do you need to look out for? And let’s not forget the seller. What should they do in the days up until the final walkthrough? For the Buyer Outside the Home The first thing you should do during your walkthrough is go through the agreed upon repairs. Did the seller need to replace a faulty smoke alarm? Was the HVAC overdue for a tune-up? The seller should make all the agreed upon repairs by final walkthrough (and have receipts for everything to give to you.) Next, is anything missing from the house that you expected to remain? For example, is the flower bed missing a row of shrubs that were there before? You could withhold money from the seller for the shrubs you assumed would stay put. Here are a few other items to check for: Do the roof and gutters look okay from ground level? Is there any debris around the home that the seller should’ve cleared? (You don’t want to be responsible for disposing of tins of paint or bags of cement.) Are there any signs of pests—like rodent droppings or rotting wood from termites? Check that the garage door openers are available and work correctly. Make sure the doorbell works and that the mailbox is in good shape. Keep in mind, this is not necessarily the time to bring up new issues you didn’t cover in the contract or after the home inspection. It’s more of a final check to make sure there aren’t any glaring issues or unexpected red flags—like a back door that may have been broken since you last viewed the home. Inside the Home You should first check that the utilities (water, electricity and gas) are all on. Run major appliances like the washing machine and dishwasher to ensure that they work and don’t cause any leaks. You should also do a brief test of the dryer. Here are other items to check: Run the heating and cooling using the HVAC system regardless of the temperature outside! Is the refrigerator switched on and working as it should be in all compartments? Run hot and cold water through all the faucets in the home, and check that sinks drain properly and don’t leak. Briefly test all the showers and bathtubs. Look for any mold that wasn’t there before. Check in the corners of rooms and in places where there used to be furniture. Flush all the toilets a few times to ensure they work and fill correctly. Check for leaks. Run the garbage disposal. Test all the stove burners. If there’s an extractor fan above the stove or any bathroom extractor fans, check them. Test any outlets the inspector flagged for repair and make sure they work. Test all the light switches and ceiling fans in every room. Open and shut all the doors and windows and make sure they lock correctly. Are there any sticky doors or missing window screens? Look at all the walls, ceilings, floors, crown molding and baseboards. Are there caulking and painting repairs the seller agreed to make but hasn’t done? Are there signs of new damages after they moved out? Are all the fixtures present and in place? Fixtures are items like doorknobs, blinds and ceiling fans. They’re usually fixed into the home and shouldn’t be removed (unless agreed upon). And they’re different from personal property like table lamps or drapes that can be easily moved from room to room. If it looks like the Grinch has been through the house and unscrewed every fixture and light bulb, it can cost you a lot of unexpected cash to replace them. Finally, is the house broom clean? In other words, does it look like it’s been swept and roughly cleaned? You should expect a basic level of cleanliness from the seller, even if you choose to do further work on the house or give some areas a deeper scrub yourself. Pay extra attention if it’s a new construction. With new homes, plumbing and HVAC units haven’t had a lot of time to “settle in.” Kitchen cupboards might be misaligned or the laundry room could be missing a shelf. Surprises can (and often do) crop up during a final walkthrough, even with a brand-new home. For the Seller Now, the seller also has some key responsibilities by the time the final walkthrough happens. The seller should: Empty and clean the entire house. It doesn’t need to gleam. It’s okay just to sweep with a broom. Give the bathrooms a quick clean, too. Make sure you’ve made all the repairs you agreed to in the contract. You should have receipts and records of the repairs for the buyer in case they need to follow up on anything. Make sure any appliances you’ve agreed to include in the purchase are functioning, clean and empty. Don’t surprise the buyer with leftovers from last night’s takeout in the fridge! Fill in and paint over holes in walls after you’ve removed items like TV mounts and photos. Finally, review the purchase agreement so you’re reminded of what you agreed to leave behind. After all, you’re busy moving out and have a lot going on—just like the buyer! Problems During the Final Walkthrough These days, the contract between a buyer and a seller will usually give the seller up to a few days before closing to make repairs. Any problems after that deadline should be resolved before closing day. But life happens! Let’s say you discover the seller didn’t fix the electrics in the basement even though it was one of their agreed upon repairs. What happens next? Here are some options: You could ask for money due to the seller to be held in escrow (a neutral third party) until the problem is fixed. This is a good option for expensive repairs. If the repairs would only cost a small amount (like $100 or so), then you could agree to a concession. This means the seller pays the buyer to fix the issue and closing day can go ahead as planned. You could ask for closing to be delayed until the seller arranges to fix the problem. Some title companies and attorneys might also push for a delay until the seller makes the repair. If the closing timeline can’t be altered, both parties could sign a summary of the walkthrough and note any faults the seller agrees to fix after closing day. Closing day is so important in the house-buying process. Nobody wants to delay it! So it’s usually in everyone’s best interest to resolve any issues ahead of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SPECIAL WARRANTY DEED

What Is a Special Warranty Deed? Although general warranty deeds are more common in residential real estate transactions, there is one area where the special warranty deed becomes the norm. This one arena is for foreclosed properties, real-estate-owned (REO), or short-sold properties. Most Federal National Mortgage Association (FNMA), Housing and Urban Development (HUD), and bank-owned residences sell using this sort of deed. Perhaps one primary reason for the use of special warranty deeds is because the selling authority has no wish to be liable for any situation concerning the property before the seizure. A special warranty deed is a deed to real estate where the seller of the property—known as the grantor—warrants only against anything that occurred during their physical ownership. In other words, the grantor doesn't guarantee against any defects in clear title that existed before they took possession of the property. Special warranty deeds are most commonly used with commercial property transactions. Single-family and other residential property transactions will usually use a general warranty deed. Many mortgage lenders insist upon the use of the general warranty deed. Special warranty deeds go by many names in different states including covenant deed, grant deed, and limited warranty deed. KEY TAKEAWAYS A special warranty deed is a deed in which the seller of a piece of property only warrants against problems or encumbrances in the property title that occurred during his ownership. A special warranty deed guarantees two things: The grantor owns, and can sell, the property; and the property incurred no encumbrances during his ownership. A special warranty deed is more limited than the more common general warranty deed, which covers the entire history of the property. Understanding Warranty Deeds A warranty deed provides the transfer of ownership or title to commercial or residential real estate property and comes with certain guarantees made by the seller. These guarantees include that the property title is being transferred free-and-clear of ownership claims, outstanding liens or mortgages, or other encumbrances by individuals or entities other than the seller. A special warranty deed—also known as a limited warranty deed—is a variation of the general warranty deed. The general warranty deed is the most common and preferred type of instrument used to transfer real estate titles in the United States. Both the general and special warranty deeds identify: The name of the seller—the grantor The name of the buyer—the grantee The physical location of the property The property is free of debt or encumbrances other than those noted in the deed The grantor warrants that they are the rightful owner of the property and have a legal right to transfer the title. The grantor warrants that the property is free-and-clear of all liens and that there are no outstanding claims on the property from any creditor using it as collateral. There is a guarantee that the title would withstand any third-party claims to ownership of the property. The grantor will do whatever is necessary to make good the grantee’s title to the property. Both deeds provide the same general protections for the buyer. However, the primary difference between a special warranty and a general warranty deed is how they deal with the timeframe of protection given to title ownership. Special Warranty Deed While the use of the word "special" may communicate to a buyer the idea that the deed is of higher quality, the special warranty deed is less comprehensive and offers less protection due to the limited timeframe it covers. In residential property, special warranty deeds are frequently used in foreclosures and the forced sale of the property to satisfy a debt. A general warranty deed covers the property's entire history. It guarantees the property is free-and-clear from defects or encumbrances, no matter when they happened or under whose ownership. The general warranty deed assures the buyer they are obtaining full rights of ownership without valid potential legal issues with the title. With a special warranty deed, the guarantee covers only the period when the seller held title to the property. Special warranty deeds do not protect against any mistakes in a free-and-clear title that may exist before the seller's ownership. Thus, the grantor of a special warranty deed is only liable for debts, problems, or other encumbrances to the title that they caused or that happened during their ownership of the property. The grantee assumes responsibility for any problems that arise from the previous owners. As an example, imagine a home has had two previous owners before you. The first owner was a hoarder, and soon the home and yard fell into disrepair. The city's code enforcement department issued fines against the owner which attached to the property. The owner fell behind on their mortgage and the bank foreclosed, selling the home to the second owner. To the pleasure of the neighborhood, the new owner fixed the house and cleaned the yard. After 10 years they put the home on the market, and you buy it using a special warranty deed. A few years later you decide to sell the home. However, because the code enforcement liens remain against the property, they could encumber your sell. At the very least, you will need to satisfy the city's lien to free the title. Title Searches and Title Insurance Most times a title search will uncover any liens or claims to the title of a property. A title search is a review of available public records to determine the ownership of property. Attorneys, title companies, and individuals can complete title searches to verify ownership of property. While these searches are extensive, there is always the possibility that something will be missed. For this reason, most buyers—regardless of the type of warranty deed they use—also purchase title insurance when buying a property. Title insurance is an indemnity insurance policy that protects a buyer from financial claims against the title of a property that they own. Pros Special warranties allow the transfer of property title between seller and buyer. The purchase of title insurance can mitigate the risk of prior claims to the special warranty deed. Cons Special warranty deeds provide narrow protection for the grantees or buyers. Special warranty deeds cover only the period of ownership of the grantor or

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CERTIFICATE OF TRUST

The Definition of a Certificate of Trust When creating a revocable living trust, you are acting as a trustee. This means that you can move property within the trust at will, even dissolving it if you wish to do so. When doing business, banks, lenders, and other types of financial institutions may want to confirm that some assets are still within the trust and that you can still access them. A certification of trust is a document that is used to certify that a trust was established. It provides important information, like the name of the trust, the trustees, and the date it was formed. It is also referred to as an abstract or memorandum of trust. It provides substantiation that property is being held in the trust. This certificate will do the same job with an irrevocable trust. A certification of trust is a type of self-certification. This means it is made by the trustee as a declaration on penalty of perjury. What the Certificate of Trust Includes While the certificate requirements will be different in each state, it generally provides the following: The identification of the trustee who is in charge of moving, selling, or otherwise giving away property in a trust It will cite the creation of the trust and any changes that are made from the original trust. If its a revocable trust, it will explain who is allowed to revoke. Advantages of a Certificate of Trust One advantage of a certificate of trust is that it does not include information that you want to keep private. It will not list your beneficiaries, what they are going to inherit, or when they will receive it. This permits your trustee or you to conduct business while not disclosing information that you want to keep private. What is a Certification of Living Trust? Another name for the certification of living trust is the certification of inter vivos trust. A living trust is sometimes referred to as a family trust or inter vivos trust. They make sure that all assets acquired are in the name of the trust. Banks and brokerage firms require that when you are opening a new account you need to provide a copy of the trust. It is also requested from escrows when you purchase real estate. Some don’t want to provide a copy of the trust since it has private information inside, which includes the name of their children. The certificate of inter vivos trust will provide the necessary information to facilitate a transfer from the trust to your banking institution, transfer agent, or other third party. It will also confirm that the trustee has the authority to act for the trust. It will prevent anyone from getting into the trust that should not, including individuals and other institutions that have no business doing so. What is a Memorandum of Trust? A memorandum of trust is also a certification, abstract, or certificate of trust. It is a shorter version of the trust certificate. It provides institutions with information they need, but allows you to keep some components confidential. You are not required to provide the names of beneficiaries. It is almost always accepted in place of a regular trust. States with Their Own Certification Rules A lot of states will have their own laws regarding trusts. They state that if a certification of trust has certain information, the institution has to accept it in place of the whole trust document. Many states have certain statutes that lay out the contents of the certification of trust. As long as your certificates meet all state requirements, different institutions have to accept it. Otherwise, it will be liable for any losses that

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

IS YOUR HOA UNDER FUNDED?

How Much Should an HOA Have in Reserve? Choosing to live in a condominium complex or gated townhouse community certainly has many perks as to the maintenance of the property. As part of such a community, homeowners enjoy care-free living while the homeowners association or HOA is tasked with ensuring that all of the common areas of the property are well-maintained and cared for. This includes having all the landscaping cared for on a weekly basis, the pool (if there is one) cleaned and maintained, and all other physical aspects of the property kept in good working condition. Basically, anything that isn't connected with the individual unit in which you live is the responsibility of the HOA to repair and replace in a timely manner. That's why you pay your HOA fees on a regular basis. A portion of these resources are allocated to the Operating budget, which covers the routine management, upkeep and maintenance of the shared areas of the property. From the pool, to the utilities, to the yard work, your association fees are being used to make sure these parts of the community are tended to on a regular basis and everything is in good working order. If the Board of Directors is acting responsibly, a portion of these fees are also allocated towards the Reserve budget. This covers repair and replacement costs that will come about over time. Let's say the driveway needs to be sealed or the exterior of the buildings need to be repainted, your HOA fees will be used for those things, in addition to the various routine costs of managing the property. But if your HOA doesn't have enough cash in reserve to cover the expenses of a major repair or replacement, you could be subject to a Special Assessment in which all of the homeowners of the units contained on the property will be expected to come up with their proportionate share of the project cost. Depending on the work that needs to be performed, you could be on the hook for thousands of dollars when you least expect. Does this mean your Board of Directors is being derelict in their duties? If the special assessment is for a predictable (Reserve) project that failed in plain sight right on schedule, it certainly appears that way! In some states, an HOA is not bound by law to conduct a Reserve Study. In others, the Board must disclose relevant reserve information to all pertinent parties involved in any real estate transactions within the HOA. Regardless, a Board is responsible to meet the financial needs of the association & comply with all applicable laws. Reserve Fund Adequacy Let’s consider those HOAs that do conduct regular Reserve Studies and work towards maintaining “adequate reserves”. A long time HOA trade organization called the Community Associations Institute (CAI) worked closely with a number of Reserve Study professionals to develop the following definition of reserve adequacy: "Adequate Replacement Reserves” is defined as a Replacement Reserve Fund and stable and equitable multi-yr Funding Plan that together provide for the timely execution of the association's major repair and replacement expenses as defined by National Reserve Study Standards, without reliance on additional supplemental funding. You’ll notice that the definition contains two parts: having enough cash -and- not relying on outside funding sources like loans or Special Assessments. A current Reserve Study is the only way to determine reserves adequacy. That’s because a Reserve Study contains a funding plan designed as much as possible to avoid the need for outside funding sources. Absent a Reserve Study, it’s just a guess! The Reserve Study examines the basics of the HOA, things like age and condition of the building, as well as all of the features and common area amenities that the HOA is responsible to maintain. The study is a forecast of sorts, estimating when certain components of the property would be due for a repair or a replacement and the expenses associated with having this work performed at that time. While the Reserve Study is certainly a projection, it is based on projects that are both inevitable and predictable! The study provides Boards with numbers to work with in attempting to fund reserves at the same pace of the property’s deterioration and ahead of repair or replacement costs. It's possible that your HOA is currently underfunded and the Board will be forced to rely on a Special Assessment at the time of an expensive repair or replacement of something around the property. Resources on Reserve But let’s assume for the sake of argument that your homeowners association is taking all of the necessary steps to ensure that the property’s reserves are well funded and prepared for both inevitable and predictable future repair and replacement expenses. How much should the HOA have on hand to address these costs? Although every property is unique, most reserve experts will suggest that the reserves be funded at 70% or higher of the property’s calculated deterioration. A reserve fund at that level will, in most cases, mean a low risk of Special Assessment, and satisfy the definition of reserve adequacy as long as responsibly sized contributions continue to be made. However, HOAs with weaker reserve funds (i.e., less than 30% funded) can also satisfy adequacy requirements. Despite being underfunded, they can achieve reserve adequacy by adopting an aggressive funding plan that avoids reliance on outside funding sources. Home Values Whether or not the homeowners association takes action to ensure the money is available to complete repairs and replacements in a timely manner is a decision the Board will need to make. It is important for the owners of the various units of the property to have confidence that the Board is fulfilling their responsibility in this regard. Studies have shown that homes in condominium associations with strongly funded reserves sell for 12% more than comparable homes in underfunded

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EFFECTS OF INFLATION ON REAL ESTATE

Ways Inflation Affects the Real Estate Market Inflation from January 2007 through December 2016 was extremely low, averaging only 1.77% per year in the U.S. and 2009 was actually negative (i.e. falling prices = deflation). Although 2017 has seen a bit more inflation it is still low by historical standards. In times of low inflation, inflation is a vague term that economists throw around when they’re trying to make one point or another. However, when inflation begins rising and hitting your pocket, the reality begins to set in. And it can have a quite noticeable effect on, not only the goods you buy at your favorite big box store, but even on real estate. Let’s take a quick look at some ways rising (or sinking) prices get their tentacles into that new house being built or the one for sale down the street. Material Costs Stop and think for a moment about the different materials go into building a house. This is an example where the final product is a sometimes less-than-obvious sum of its parts. A partial list would include wood, copper, concrete, glass, steel, etc. Do you notice a pattern? These are all basic commodities to one degree or another, and there are many more that go into a house before it is finished. When the prices of these basic materials go up, it costs your friendly neighborhood construction company more money to build a house. They can choose to either make less profit (not likely) or raise prices. Guess what they usually choose? So price inflation drives up basic materials costs making new houses more expensive. Money Gets Expensive Another effect of rising inflation is that interest rates rise due primarily due the the FED raising the Federal Funds Rate (i.e. the interest rate at which banks lend reserve balances to other banks overnight). The FED does this in an effort to quench the fires of inflation, Thus it becomes more expensive to borrow money. So fewer people are able to afford loans, which causes demand to drop and fewer houses to be built. In times when less money is borrowed, economic growth in general becomes suppressed. A Shift Into Rentals The higher cost of borrowing also tends to shift people into rentals rather than the home buyer market. Obviously, this is bad for single family residential sales but can be a boon for landlords, perhaps even motivating them to build more multi-unit structures. Plus unlike mortgages, rents can be raised to compensate the landlord for inflation thus affecting those who can least afford it the most. Houses Provide Protection Against Inflation As mentioned above, once you lock in your mortgage, as inflation cuts the value of each dollar, you are able to pay off your mortgage with ever less valuable dollars. In addition, since a house is a commodity, it tends to appreciate pretty much in sync with rising inflation. So although owning a home won’t make you rich it does provide some protection against rising prices. Unlike your personal home, investing in income producing Real Estate however, can make you rich by getting your tenants to pay off your mortgage. The one caveat where a mortgage can bite you during rising inflation is if you have an “Adjustable” mortgage where your mortgage payment can be increased due to rising interest rates. What Do Foreclosures Have to Do With It? Follow this chain of logic and you’ll understand why an increase in foreclosures is another result of inflation. We’ve already discussed how growing inflation makes everything you buy more expensive. Let’s say a family has a mortgage they can barely afford with prices the way they are. Throw higher prices for food, gas, and all of life’s other basics into the mix and suddenly they’re having to choose between eating supper or paying the house note. This is how waves of foreclosures start like we had back in 2007. It is also a time when lenders become more predatory in their willingness to approve loans. It is something that borrowers have to be very careful about. And another reason we caution you against Variable (or Adjustable) mortgages. Deflation The focus here has been rising prices, which we call Price inflation which is commonly the result of “Monetary Inflation” (i.e. an increase in the money supply). Though inflation is much more common than its opposite, known as deflation – or sinking prices – there have been a few short instances of the latter in recent memory. At first, it seems that dropping prices would be a good thing. The problem is that it is usually associated with sinking demand brought on by high unemployment or by a contracting money supply due to a market crash. In the long run, it’s not a good thing for the housing market since it can result in falling housing prices as well. And once people see that they owe the bank more than their house is worth many end up defaulting on their mortgage which in turn increases the supply of houses on the market thus driving house prices down even

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS OWNER FINANCING?

Buying or selling a home can be a complicated process. Sometimes, homebuyers have trouble qualifying for a mortgage. Other times, sellers yearn to cut through the red tape and net potentially more profit. The solution for both may be owner financing. Although not very common today, owner financing is when the seller offers direct financing to the buyer instead of or in addition to a mortgage. What is owner financing? Owner financing occurs when the owner of a property for sale provides partial or complete financing to the buyer directly, after the buyer makes a down payment. The agreement here is very similar to a mortgage loan, except the owner of the home owns the debt instead of a bank or other lender. Owner financing is usually not reported on the buyer’s credit report. There is typically a substantial down payment required (usually 10 percent to 15 percent) that makes up for the fact that the financing is usually not dependent on the buyer’s income or credit history — although sellers are advised to perform a credit check regardless. Chris McDermott, real estate investor and broker of Jax Nurses Buy Houses in Jacksonville, Florida, has offered owner financing himself on investment properties he’s sold. McDermott says it can be a common practice in some areas, “specifically for rural land or homes that a seller owns free and clear.” Owner financing can be beneficial to buyers who aren’t eligible for a desired loan from a mortgage lender, or if the lender only qualifies the buyer for a portion of the purchase price. In the latter scenario, the buyer might be able to take out a first mortgage from the lender for that portion, and then obtain owner financing for the shortfall. How does owner financing work? In most owner financing arrangements, the owner (seller) records a mortgage against the property, which is sold via deed transfer to the buyer. Typically, the owner lets the buyer take over and move into the house without a mortgage, but after the buyer makes a down payment the buyer signs a promissory note and makes monthly payments to the seller, but the owner keeps the title to the home as leverage in the deal.” The buyer makes mortgage payments to the seller over an agreed-upon amortization schedule at a specified fixed interest rate. Typically, the seller will not hold that mortgage for longer than five or 10 years. After that time, the mortgage commonly comes due in the form of a balloon payment owed by the buyer. To make that balloon payment — generally a large lump sum — the buyer usually (by that time) qualifies for and obtains a mortgage refinance, likely for a lower interest rate. Alternatively, the buyer can get a first mortgage from a bank or other lender while the seller takes a second interest in lieu of some of the down payment. Say you want to buy a $200,000 house but the bank will only loan you $160,000. If the seller will take back a second mortgage for $40,000, the deal may be able to close. Just because a seller is providing the funds doesn’t mean the buyer won’t pay closing costs which costs can include deed recording and title fees. The good news is that the costs “are usually substantially less than you’d pay with bank financing. These are some of the different types of owner financing you might encounter: Second mortgage – If the homebuyer can’t qualify for a traditional mortgage for the full purchase price of the home, the seller can offer a second mortgage to the buyer to make up the difference. Typically, the second mortgage has a shorter term and higher interest rate than the first mortgage obtained from the lender. Land contract – In a land contract agreement, the homebuyer makes payments to the seller on an agreed-upon basis. When the buyer finishes the payment schedule, they get the deed to the property. A land contract typically doesn’t involve a bank or mortgage lender, so it can be a much faster way to secure financing for a home. Lease-purchase – With a lease-purchase agreement, the homebuyer agrees to rent the property from the owner for a period of time. At the end of that time, the buyer has the option to purchase the home, usually at a prearranged price. Typically, the buyer needs to make an upfront deposit before moving in and will lose the deposit if they choose not to buy the home. Wraparound mortgage – Home sellers can use wraparound financing when they still have an outstanding mortgage on their home. In this situation, the owner agrees to sell the home to the buyer, who makes a down payment plus monthly loan payments to the owner. The seller uses those payments to pay down their existing mortgage. Often, the buyer pays a higher interest rate than the interest rate on the seller’s existing mortgage. Example of owner financing Say a seller advertises a home for sale with owner financing offered. The buyer and seller agree to a purchase price of $175,000. The seller requires a down payment of 15 percent — $26,250. The seller agrees to finance the outstanding $148,750 at an 8 percent fixed interest rate over a 30-year amortization, with a balloon payment due after five years. In this example, the buyer agrees to make monthly payments of $1,091 to the seller for 59 months (excluding property taxes and homeowners insurance that the buyer will pay for separately. At month 60, a balloon payment of $141,451.27 will be due. The seller will end up collecting $233,161.27 after 60 months, broken down as: $26,250 for the down payment$58,161.27 in total interest paymentsTotal principal balance of $148,750 Pros and cons of owner financing For homebuyers ProsFaster closingNo closing costsFlexible down payment requirementLess strict credit requirements ConsHigher interest rateNot all sellers are willingMany deals involve large balloon paymentsMany lenders won’t allow unless seller pays remaining balance For home sellers Pros Potential for a good return if you find a good buyerFaster saleTitle protected if the buyer defaultsReceive monthly income Cons Agreements can be complex and limitingMany lenders won’t allow unless you own home free and clearPotential for buyer to default or damage home, meaning you’ll have to initiate foreclosure, make repairs and/or find a new buyerTax implications to consider Owner financing offers advantages and disadvantages to both homebuyers and sellers. The buyer can get a loan they otherwise could not get approved for from a bank, which can be especially beneficial to borrowers who are self-employed or have bad credit. However, the interest rate charged by a seller is usually much higher than a traditional mortgage lender would charge and the balloon payment that comes due after a few years will be significant. The advantages to the seller are manifold. Owner financing allows the seller to sell the property as-is, without any repairs needed that a traditional lender could require. Additionally, sellers can obtain tax benefits by deferring any realized capital gains over many years. Depending on the interest rate they charge, sellers can get a better rate of return on the money they lend than they would get on many other types of investments.” The seller is taking a risk, though. If the buyer stops making loan payments, the seller might have to foreclose, and if the buyer didn’t properly maintain and improve the home, the seller could end up repossessing a property that’s in worse shape than when it was sold. How to buy a home with owner financing or offer it If you can’t get the financing you need from a bank or mortgage lender, a skilled real estate agent can help you find properties with owner financing. Just be sure the promissory note you sign is legally compliant and clearly lays out the terms of the deal. It’s also a good idea to revisit a seller financing agreement after a few years, especially if interest rates have dropped or your credit score improves — in which case you can refinance with a traditional mortgage and pay off the seller earlier than expected. If you want to offer owner financing as a seller, you can mention the arrangement in the listing description for your home. Be sure to require a substantial down payment — 15 percent if possible. Find out the buyer’s position and exit strategy, and determine what their plan and timeline is. Ultimately, you want to know the buyer will be in the position to pay you off and refinance once your balloon payment is due. It’s important to have a real estate attorney prepare and carefully review all the documents involved, as well, to protect each party’s

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW TO REMOVE A LIS PENDENS NOTICE

SUMMARY A party to a lawsuit intended to affect real estate may record a notice on the land records containing the names of the parties, the name and object of the suit, the court where it will be heard, and a description of the property. This is called a notice of lis pendens, which signifies pending litigation. This notice binds any subsequent acquirer of an interest in the real estate to the result of the lawsuit just as if the acquirer were a party to the lawsuit. The law has procedures a property owner may follow to get the lis pendens notice removed from the land records. If the underlying lawsuit has been filed, the property owner may file a motion with the court to have it discharged. If the underlying lawsuit has not been filed, the property owner may file an application for discharge, together with a proposed order and summons. In addition, the law allows any interested party to file a motion to discharge a notice of lis pendens if it is not intended to affect property, if certain procedural requirements were not complied with, or the notice never became effective or has become ineffective. APPLICATION OR MOTION FOR PROBABLE CAUSE HEARING FOR DISCHARGE OF LIS PENDENS NOTICE The property owner may either make application for, or file a motion for, a hearing to determine whether the notice of lis pendens should be discharged. An application may be made if the litigation affecting the property is not yet before the court; a motion may be made if such litigation is already pending. A motion may be made at any time unless an application was previously ruled upon. The application must be made to the court where the underlying litigation is planned and must be accompanied by a proposed court order and a summons. The application, order, and summons must be substantially the same as those, which appear as suggested forms in the law. The court must give reasonable notice of the hearing to the person who filed the lis pendens notice. In no event may the notice be given less than seven days before the hearing. HEARING TO DISCHARGE LIS PENDENS NOTICE The burden of proof at the hearing is on the person who filed the lis pendens notice to establish that (1) there is probable cause to sustain the validity of his claim, and (2) if the notice involves an allegation of an illegal, invalid, or defective transfer of a real estate interest, the transfer occurred fewer than 60 years before the court claim. After the hearing, the court may either deny the application or motion or order that the lis pendens notice be discharged. APPLICATION TO STAY DECISION OF COURT PENDING APPEAL Either party may appeal the court's decision within seven days of the date it is handed down. The party taking such an appeal may within the seven-day period, file an application with the court which rendered the decision requesting a stay of the decision's effect pending the appeal. The application must state the reasons for the request and a copy must be sent to the adverse party. A hearing on the application must be held promptly. If the party taking the appeal gives a bond with surety in an amount the court deems sufficient to indemnity the adverse party for any damages, which might result from the stay, the court must stay the decision pending appeal. MOTION TO DISCHARGE LIS PENDENS NOTICE BY ANY INTERESTED PARTY An interested party (as opposed to just the property owner) may file a motion requesting the court to discharge a lis pendens notice in any case in which: 1. the lis pendens is not “intended to affect real property” as defined by law; 2. the recorded lis pendens notice does not contain the information required by law; 3. the property owner did not receive notice of the litigation the recording of the lis pendens notice as required by law; or 4. for any other reason the lis pendens notice never became effective or became in effective. RECORDING OF DISCHARGE OF LIS PENDENS OR STAY Any order of discharge or any order of a stay takes effect when a certified copy is recorded in the office of the town clerk in which the order of lis pendens was recorded. The court clerk is not permitted to provide any certified copies of the order until the time for taking an appeal elapses or, if applicable, until a decision is rendered relative to the granting of a stay. EFFECT OF RECORDING ORDER OF DISCHARGE When a certified copy of an order discharging a lis pendens notice has been recorded, the lis pendens no longer constitutes constructive notice of the litigation to any third party who acquires an interest in the property that is subject to the litigation. DURATION OF NOTICE OF LIS PENDENS No list pendens notice can be valid as constructive notice for more than 15 years unless it is re-recorded within 10 years after it was first recorded and the recording party serves a copy of the notice on the record owner within 30 days after it is re-recorded. If a lis pendens notice is re-recorded it is only valid for 10 years from the re-recording

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MISSOURI MERCHANDISING PRACTICES ACT

https://kcrealestatelawyer.com Our office gets calls everyday from home purchasers who discover after taking possession that there is a Material Defect to the property purchased - defective sewer line, defective foundation, defective roof, defective mechanical systems, defective plumbing, and the remedy in these cases usually falls under the Missouri Merchandising Practices Act. The Missouri Merchandising Practices Act (MMPA) exists to protect consumers. Missouri’s Supreme Court has observed that the unfair practices declared unlawful by the MMPA are exceedingly broad and, for better or worse, cover every practice imaginable, and every unfairness to whatever degree. Because attorneys may recover attorneys’ fees if a defendant is held liable for an MMPA action, it may be easier to find a lawyer to take your case, even if the damages are not significant.The elements of an MMPA Claim There are four elements to an MMPA claim: (1) the plaintiff purchased, or attempted to purchase, merchandise (which includes services) from a defendant in the state of Missouri; (2) the plaintiff’s purchase of, or attempt to purchase, merchandise (or services) was for personal, family, or household purposes; (3) the plaintiff suffered an ascertainable loss of money or property; and (4) the plaintiff’s ascertainable loss was a result of an action by a defendant that has been declared unlawful by § 407.020 RSMo. The MMPA statute declares many things to be unlawful. For example, the MMPA specifically prohibits “any deception, fraud, ... [or] misrepresentation.” It also prohibits “the concealment, suppression, or omission of any material fact.” However, reliance is expressly not an element of the MMPA. Thus, the fourth element requires the plaintiff to establish that his or her ascertainable loss was the result of either deception or fraud or a misrepresentation or the concealment or suppression or omission of any material fact by a defendant. Any one of these acts is sufficient to satisfy this element. Importantly, the MMPA specifically states that these acts can be before, during, or after the sale. The only requirement for this fourth element is that the ascertainable loss be the result of the unlawful act. There is no requirement that the ascertainable loss occur before the sale. Thus, damages which arise after the sale are also recoverable (as they would be in other cases). If these elements are satisfied, then the plaintiff may recover his or her actual damages. Importantly, actual damages are not limited to the ascertainable loss. For instance, emotional distress damages may be recoverable.Reliance is not an element The MMPA is a strict liability statute. As such, it does not require intent on the part of the actor, but it also does not require reliance. Indeed, even a consumer who admits that they did not believe the false statements may still recover damages arising from those false statements. Hess v. Chase Manhattan Bank, USA, N.A., 220 S.W.3d 758, 774 (Mo. banc 2007) (“a fraud claim requires both proof of reliance and intent to induce reliance; the MPA claim expressly does not.”) (citing 15 C.S.R. § 60-9.110(4)). Likewise, the MMPA does not contain an intent requirement for civil liability for actual damages. Thus, even if the defendant does not know whether a representation is not truthful or otherwise know that it is committing an unlawful act, that does not defeat a plaintiff’s claim under the MMPA. See State ex rel. Webster v. Areaco Inv. Co., 756 S.W.2d 633, 635 (Mo. App. 1988) (“It is the defendant’s conduct, not his intent, which determines whether a violation has occurred.”).Damages recoverable under the MMPA Upon a showing of the four elements of the MMPA claim, a plaintiff is permitted to recover all of his or her “actual damages.” The statute does not define what constitutes “actual damages.” There is little question that out-of-pocket losses and diminution of value damages are recoverable. But these are not the only types of actual damages which may be recovered under the MMPA. In addition, to the damages discussed below, a plaintiff may in certain circumstances recover punitive damages.Inconvenience damages The law is clear that inconvenience damages are recoverable under an MMPA claim. Crank v. Firestone Tire & Rubber Co., 692 S.W.2d 397, 408 (Mo. App. 1985) (“when the inconvenience is coupled with a compensable element of damage, the inconvenience occasioned by the breach may be compensated where it is supported by the evidence and shown with reasonable certainty.”).Garden variety emotional distress damages These types of emotional distress damages are recoverable in MMPA cases. In Lewellen v. Franklin, the Missouri Supreme Court En Banc affirmed a judgment in an MMPA case which awarded a consumer damages for “damage to her good credit”, “stress of being unable to make her loan payments” and “fear that she would go to jail.” 441 S.W.3d 136, 147 (Mo. banc 2014) (emphasis added). Likewise, in Dierkes v. Blue Cross & Blue Shield of Mo., the Missouri Supreme Court recognized that in fraud cases the benefit of the bargain rule can be inadequate, in which case “other measures of damages may be used.” 991 S.W.2d 662, 669 (Mo. banc 1999)Garden variety emotional distress damages do not require medical diagnosis Garden variety emotional distress damage are “ordinary or common place emotional distress, which [are] simple or usual.” Recently, the Missouri Court of Appeals, Western District has held that garden variety emotional distress damages such as “humiliation may be established by testimony or inferred from the circumstances. Intangible damages, such as pain, suffering, embarrassment, emotional distress, and humiliation do not lend themselves to precise calculation.” Soto v. Costco Wholesale Corp., 502 S.W.3d 38, 55 (Mo. App. 2016). Specifically, these damages do not require medical testimony, and may be supported solely based upon testimony of the plaintiff and lay witnesses. In conclusion, the MMPA is very broad and can be used against parties who use any unlawful act or deceptive practice in connection with the sale or services of a product for personal, family, or household purposes. You will see the MMPA asserted a lot of the time in Missouri class action cases where the damages may be minor but the defendant deceived hundreds or even thousands of consumers. You will also have a better chance of a lawyer taking your case because the MMPA allows for attorneys’ fees if you win your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

NOMINEE MANAGER

For many, the use of a nominee manager is a simple and effective way to maintain private business matters private and to make the business owner a less attractive target for potential lawsuits, solicitations or other nuisances. Nominee manager service is not about hiding things. It is about keeping private business matters private vis-a-vis on line records readily available to the general public. The Secretary of State (or equivalent agency) in each jurisdiction in the U.S. looks to that jurisdiction's business statutes to determine what information it must collect and maintain in order for business entities to remain in compliance with the minimum disclosure requirements in that jurisdiction. For LLCs, the general requirement is to list the managers or the members of the LLC. Corporate Creations can provide a corporate nominee to appear as manager of the LLC in state on line public records. This is significant because the publicly available information relating to the LLC becomes that of the corporate nominee manager, not the business owner's. The owner can now limit and better control who has their information. Further, the owner of the LLC retains all operational authority and remains in full and complete control of the LLC. The owner retains sole signature authority over any bank or other financial accounts, the owner retains the sole right to enter any lease arrangements or other contracts, etc. The corporate nominee does not touch or have any access or signature authority over any funds or company bank or financial accounts associated with the LLC. Also, the owner of the LLC can, at any time, remove the nominee manager from the LLC if they so choose. The nominee manager thus preserves the business owner's privacy by satisfying the legal requirement for an LLC to have one or more listed

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

KANSAS CITY MISSOURI IS A GREAT CITY TO LIVE AND INVEST

The Kansas City Real Estate Market: Investor's Guide For 2021Jeff RohdeWritten by Jeff Rohde Kansas City has been named as one of the top 10 housing markets for buyers to consider. Looking at the recent performance statistics for the real estate market in Kansas City, it?s easy to understand why. Active listings are down by nearly 50% year-over-year, while median sales prices have increased by almost 15% over the last 12 months. As homes become more expensive and harder to find, many households in Kansas City are choosing to rent rather than own. In fact, growth and demand are two words that best describe the real estate market in Kansas City, according to one local economist. Today, it seems like Kansas City is growing everywhere you look: downtown, in the first-ring suburbs, and in the outlying areas. Kansas City, Missouri (nicknamed ?KC? for short) is the largest city in the state and spans the Missouri and Kansas state lines. Located where the Missouri and Kansas Rivers meet, KC is known for its jazz music, pro sports teams, and delicious Kansas City-style barbecue. The economy is diverse, and the government is pro-business, two of the many things that help keep the real estate market in Kansas City growing strong and steady. Population Growth There are about 500,000 people in Kansas City itself and more than 2.1 million residents in the metropolitan area. The population of Kansas City has grown faster than St. Louis and other large Midwestern cities including Cincinnati and Cleveland. Key Population Stats: With more than 2.1 million residents, Greater Kansas City is the 38th most populated metropolitan area in the U.S.Population of Kansas City has grown by 0.73% year-over-year.The population of the nine-county Kansas City metro area is about the same as Austin, Las Vegas, and Pittsburgh, based on data from the Mid-America Research Council.People moving to Kansas City from other parts of the country account for about 50% of KC?s population growth, according to a recent report from station KCUR in Kansas City.Over the last 10 years the population of Kansas City grew by 7%, and is expected to add another 400,000 residents by 2040. Job MarketUnemployment in the Kansas City MSA is down to just 4.5%, according to the BLS (as of Oct. 2020). The U.S. Bureau of Labor Statistics reports that some of the employment sectors in Kansas City showing the fastest signs of recovery include construction, trade and transportation, education and health services, and government. Kansas City is a major transportation hub and is also home to high-growth tech sectors like IT and finance. Going forward, it?s likely that employment in the management and business, sales and office, and production and transportation sectors in Kansas City will continue to match or outpace U.S. averages. Key Employment Stats: GDP of Kansas City is nearly $138.5 billion, according to the Federal Reserve Bank of St. Louis, and has grown by more than 38% over the last 10 years.Kansas City, Missouri accounts for 56% of the metro area workforce with employment growing by 0.85% over the last 12 months.Largest employment sectors in Kansas City are education and health services, professional and business services, retail, trade, and manufacturing and construction.Major companies with headquarters in Kansas City include American Century Investments, Commerce Bancshares, Dairy Farmers of America, Garmin, Hallmark Cards, Interstate Bakeries (maker of Twinkies and Wonder Bread), Sprint Nextel, and one of the largest freight shipping companies in the world, YRC Worldwide.Ford and General Motors both have large manufacturing and assembly facilities in the Kansas City metro area, and Sanofi-Aventis has one of the largest drug manufacturing plants in the U.S. in south Kansas City.Largest federal government employers in Kansas City include the Department of Defense, Internal Revenue Service, Social Services Administration, and the Department of Veterans Affairs. The Kansas City Federal Reserve Bank is also headquartered here.Companies in Kansas City that recently created new jobs include Amazon Flex, CarMax, Hostess, U.S. Department of Agriculture, and Zillow Home Loans.Major universities in the Kansas City metro area include University of Kansas, University of Missouri-Kansas City, University of Central Missouri, and Park University.92.8% of people in the metro area are high school graduates or higher, while 37.7% hold a bachelor?s degree or advanced degree.Four major Interstate highways (I-70, I-49, I-35, and I-29) pass through Kansas City.Major cities less than 800 miles from KC include Atlanta, Chicago, Dallas, Denver, Houston, and Minneapolis.Freight railroads serving Kansas City include Burlington Northern Santa Fe and Union Pacific.Shipping channels in Kansas City have 41 dock and terminal facilities in the metro area.Kansas City International Airport (KCI) is served by major airlines including Air Canada, American, Delta, Southwest, and United. Real Estate Market The Kansas City real estate market is booming with buyers ?snatching up new homes especially in the mid-price range.? As FOX4 recently reported, the surge of home buying in the Kansas City metropolitan area was completely unpredictable, even while building permits are up 15% compared to this time last year. Rising construction and materials costs help to make resale homes an attractive option, which further increases the demand for single-family homes in Kansas City. Key Market Stats: Zillow Home Value Index (ZHVI) for Kansas City is $176,763 (as of November 2020).Home values in Kansas City have increased by 10.8% year-over-year and are forecast to growth by another 11.0% in the next 12 months.Over the past five years home values in Kansas City have grown by 51%.Median list price of a single-family home in Kansas City is $215,000 based on the most recent report from Realtor.com (Nov. 2020).Median listing price per square foot for a home in Kansas City is $120.Listing prices for homes in Kansas City have increased by 16.7% year-over-year.Median sales price for homes in the Kansas City area is $250,000.Of the 217 neighborhoods in Kansas City, KCI - 2nd Creek is the most expensive with a median listing price of $410,000.Most affordable neighborhood for home buyers in Kansas City is Ruskin Heights where the median price of a home is $91,300. Attractive Renters? Market Kansas City is ranked as one of the top markets for renters by WalletHub. The report measures key criteria such as activity in the rental market, affordability, and quality of life rating. A low supply of housing inventory may also be helping to drive the demand for single-family rentals in Kansas City. As the Kansas City Business Journal notes, the metro area had the second-largest decline in active housing supply in the entire country. Key Market Stats: Average rent in Kansas City is $1,037 per month based on the most recent research from RENTCaf? (as of Oct. 2020).Rents in Kansas City have increased 3% year-over-year.Over the past three years rents in metropolitan Kansas City has grown by nearly 9.2%.41% of the rental units in Kansas City rent for more than $1,000 per month.Renter-occupied households in Kansas City make up 45% of the total occupied housing units.Neighborhoods in Kansas City with the lowest rents include Blenheim Square - Swope Park Campus, Mount Cleveland - Sheraton Estates, and Oak Park where rents all average $660 per month.The most expensive neighborhoods to rent in Kansas City include Wendell Phillips, Paseo West, and Columbus Park where rents range between $1,391 and $1,463 per month. Historic Price Changes & Housing AffordabilityEach month Freddie Mac publishes its House Price Index report (FMHPI) that allows rental property investors to track both short- and long-term historical price trends. The most recent FMHPI from Freddie for home price trends in metropolitan Kansas City reveals: October 2015 HPI: 127.45October 2020 HPI: 187.485-year change in home prices: 47.1%One-year change in home prices: 12.1%Monthly change in home prices: 1.0%Affordability is another tool real estate investors can use to help forecast the current and future demand for rental property in Kansas City. According to the annual report from Kiplinger that tracks the affordability of housing in the top 100 U.S. markets: Since the last real estate cycle market peak in May 2006, home prices in Kansas City have decreased by 0.3%.Since the last real estate cycle market bottom in March 2012, home prices in Kansas City have increased by more than 66%.Kansas City has an affordability index of 3 out of 10, meaning the metro area is one of the more affordable places to own a home in the U.S. Quality of Life Cost of living has a major effect on the quality of life in an area. According to the cost of living calculator from NerdWallet, the cost of living in Kansas City is more than 40% less than big expensive urban areas such as San Francisco, New York City, and Seattle. Key Quality of Life Stats: Forbes ranks Kansas City as one of the best places for business and careers, job growth, and education in the U.S. with a cost of living 3% below the national average.Total per capita tax burden in Kansas is about 10% less than the national average.Kansas City is one of the least-congested metro areas in the U.S. and has one of the shortest commuting times.The RideKC Bike system has 42 locations across Kansas City, and the city plans to build 1,000 miles of bike lanes and pedestrian walks over the next 20 years.KC Streetcar serves the Central Business District, and connects the River Market, Crown Center, Union Station, and Crossroads Art Districts.Kansas City has more boulevards than any city in the world except Paris, earning it the nickname ?Paris of the Plains?.The NFL Kansas City Chiefs, MLB Kansas City Royals, and MLS Sporting Kansas City soccer teams give residents of Kansas City and real estate investors plenty to cheer

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

DEATH AND REAL ESTATE

What effect does the death of an owner of real estate have on the title to real estate? When a person who owns real estate passes away, depending on the manner on which the title to the real estate was held, a number of issues become necessary to address following such a person’s death. If the title is held as a joint tenant or as a tenant by the entirety, the title to the real estate passes automatically to the surviving joint tenant (tenants) or the surviving spouse. In a tenancy by the entirety situation, there is no need for the deceased person’s estate to be probated in order to pass title to the real estate to the survivor. However, if the title to the real estate is held as a tenant in common, then the deceased person’s interest in the real estate will pass in accordance with a devise under the Will (if the person dies leaving a will – which would then require that the Will be probated), or the deceased tenant in common’s interest will pass in accordance with laws of intestacy, which will also require the probating of the deceased person’s estate, in order to establish the decedent’s heirs-at-law to whom the real estate passes. Also, upon the death of a person owning real estate, there is an automatic Massachusetts Estate Tax Lien and an automatic Federal Estate Tax Lien which is placed upon the property, to protect the Commonwealth of Massachusetts or the federal government getting its estate tax paid, if there is a Massachusetts or Federal Estate Tax due, resulting from the deceased person’s estate. The current (calendar year 2012) threshold amount of estate assets that would trigger a Massachusetts estate tax due is $1,000,000, and the current (calendar year 2012) threshold amount of estate assets that triggers a Federal Estate Tax due following the death is the amount of $5,125,000. Unless the decedent’s estate exceeds these thresholds, there generally is no need to file either a Massachusetts Estate Tax return or a Federal Estate Tax return; however, in both instances, there is a need to record an Affidavit/Certificate of No Estate Tax with the Registry of Deeds or Registry District of the Land Court, in which the decedent’s property is located, the effect of which Affidavit/Certificate will be to document that there is no Massachusetts Estate Tax Lien and no Federal Estate Tax Lien. Where the real estate is held by a joint tenant or a spouse in a tenancy by the entirety situation, although the title of the deceased person’s interest in real estate passes automatically to the surviving spouse (in the instance of a tenancy by the entirety) or to the surviving joint tenant(s), in the instance of a joint tenancy, there is still a need to record in the Registry of Deeds or the Registry District of the Land Court, a certified copy of the decedent’s death certificate so as to document of record in the Registry and/or in the Registry District of the Land Court, the fact that the person has passed away. The death certificate is generally recorded at the same time that Affidavit/Certificate of No Estate Tax is recorded. When the real estate involved is registered land (also sometimes referred to as Land Court property), there may also be a need to record other documentation following a death in the chain of title, such as an Affidavit of No Divorce, and attested copies of certain probate related

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS TITLE INSURANCE AND WHY DO I NEED IT?

An Owner’s Title Insurance Policy is your best protection against potential defects that can remain hidden despite the most thorough search of public records. A Lender’s Title Insurance Policy also exists to protect your mortgage lender’s interest. For a one-time premium, a title company will agree to reimburse you for covered losses suffered due to undetected defects that existed prior to the issue date of a title policy, up to the amount of the policy. Unless specifically excluded, a title policy also provides for legal defense costs. A Title Insurance Policy protects you against potential defects such as: Forged deeds, mortgages, satisfactions, or releases Deed by person who is mentally incompetent Deed by person in a foreign country, vulnerable to challenge as incompetent, unauthorized, or defective under foreign laws Deed challenged as being given under fraud, undue influence or duress Deed signed by mistake (grantor did not know what was signed) Deed executed under falsified power of attorney Undisclosed divorce of one who conveys as sole heir of a deceased former spouse Deed affecting property of deceased person, not joining all heirs Deed recorded but not properly indexed so as to be locatable in the land records Undisclosed but recorded federal or state tax lien Undisclosed but recorded judgment or spousal/child support lien Undisclosed but recorded prior mortgage Undisclosed but recorded boundary, party wall, or setback agreements Misinterpretation of wills, deeds, and other instruments Discovery of later will after probate of first will Erroneous or inadequate legal descriptions Deed to land without a right of access to a public street or road Forged notarization or witness acknowledgment Deed not properly recorded (wrong county, missing pages or other contents, or without required payment) Deed to a purchaser from one who has previously sold or leased the same land to a third party under an unrecorded contract, where the third party is in possession of the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO TIPS FOR BUYERS

Most people don’t start out with the intention of buying a house that’s for sale by its owner, but these properties pop up regularly in the real estate market. Back in the day, you might have been driving around a neighborhood that you like and you spotted a sign in the yard: “For Sale by Owner!” You might have come across one in your local newspaper’s real estate classified section. These days, it’s more likely that you’ll come across FSBOs through online marketing. If you’re working with an agent and she’s particularly diligent, she might come across one while searching for something in your price range that meets your specifics. In any case, there it is. At first glance, you love the property. Is it something you should follow up on or should you steer clear? You can follow up without reservation if you keep a few things in mind. Buying a FSBO is just like buying any other property—sort of. But someone is going to have to assume the responsibilities of that missing listing agent. Do You Need an Agent? The seller obviously doesn’t want to hire a listing agent; he’s waded into this on his own. But many owners are willing to pay a buyer’s agent. If you already have an agent, she can contact the buyer on your behalf. If you don’t have one yet, consider finding one who’s willing to take on the job. Buyer’s agents aren’t always excited to work on FSBOs without a listing agent because they don’t want the liability, or because it means more work for not necessarily more money. When only one agent is involved, that person often ends up doing the work of both sides. As for your needs, having an agent can be extremely helpful throughout the entire process, and the seller typically pays the agent’s commission so there’s no reason not to work with someone. Why should you go it alone if you don’t have to? Writing the Purchase Contract A house sale begins with a purchase contract. If you’re uncomfortable writing one yourself and you don’t want to enlist the aid of an agent, you can call a real estate lawyer to handle that aspect of the transaction for you. In fact, you should have an attorney waiting in the wings anyway to make sure the entire transaction is accomplished legally and all your rights are protected. Many lawyers will draw up a purchase offer and other documents for a reasonable fee, and it’s usually money well spent. You can also find real estate purchase contracts online, but you might be better off hiring a professional if you don’t have the expertise to complete the forms correctly. This probably isn’t a time to be penny wise and pound foolish. If you do decide to take care of documents yourself, keep a few things in mind: Offer less than list price. That way, negotiations can only go up. If you start out too high, you can’t come back down. It can also help to nail down in advance whether the list price is reasonable or a pipe dream. Check comparables in the area and be prepared to negotiate. Write in contingencies. Make sure you have a way out of the transaction if you find physical defects in the property that the seller won’t fix, if the CC&Rs are unsatisfactory, or if your loan is not approved, among other issues. Some common contingencies include a satisfactory appraisal on the home, loan approval, a satisfactory home inspection and pest inspection, clear title from the seller, approval of the seller’s disclosures, and insurability. If any of these factors cannot be met, the contract becomes null and void…if you included the proper contingency clauses. Do not give your earnest money deposit to the seller. Give it to a third party to hold for you, such as a title or escrow company. Normally, the listing agent would place it in her escrow account for safekeeping. You don’t want it going into the seller’s checking account. What if he seller spends it and the deal falls through due to one of those contingency clauses? Or what if he just refuses to return it to you? You’d be out the money, at least until such time as you could take him to court and force it out of him. But you’re trying to buy a house, right? Do you really want to tie up your cash like that right now? Determine who pays for what. There are no set rules here. Who pays for which fees is negotiable. Figure out who will pay for transfer taxes, escrow, and title fees. If you’re an excellent negotiator, all the better. You can probably take care of this on your own. Use prorations to your advantage. Figure out whether any given proration will be in your favor. For example, the unused portion of property taxes is typically a credit back to the seller if they’re paid in advance of the sale. In this case, you might want to ask for no prorations. But if the taxes are paid in arrears, the seller will credit you, so you’ll want prorations. When will you take possession? Specify when the seller will hand you the keys so you can take possession of the property. It’s acceptable in some parts of the country to expect possession on the day of closing. In other areas, possession is given the day after closing to give the seller time to move. It’s not unheard of, either, for the seller to have relocation issues, particularly if the deal came together quickly. Consider whether you’re willing to let the seller rent from you for a period of time after closing. About That Home Inspection Always get a home inspection by a reputable home inspector. Too many deals go south when a bad home inspector is involved.8 Ask for credentials and ask the inspector whether she belongs to an association, then follow up on both to confirm. You have a few options if major problems are found with the inspection. You can ask the seller to: Fix the problem, but bear in mind that he’s not required to hire the best contractor available or ensure that a quality job is done. And many contracts specify that the property is being sold “as is,” so check yours. In this case, the seller is not required to fix anything. Credit you the money to hire your own contractor after closing. This amount will apply toward your closing costs. But whatever you do, don’t state in an addendum that the credit is for repairs. Reduce the sales price, typically by an amount commensurate with the anticipated cost of the repairs. Get a Title Policy Some buyers think it’s not worth the extra money to buy title insurance, but a smart buyer always does so. The cost to fix clouds on a title or to dispute easements can be enormous when compared to the pennies it costs to buy insurance. Some Myths About FSBO Deals FSBOs aren’t serious sellers. Not true. A small minority might be just testing the waters, but the majority absolutely do want to sell their homes. FSBOs are not flexible on price. Some buyers think FSBOs aren’t hiring agents because they can’t afford to, that they need to take every dime out of the deal so they won’t bend on price. But according to studies by the National Association of Realtors, most For Sale by Owners actually get less for their homes than those who list with a real estate agent.10 FSBOs are typically willing to negotiate, but they might not be very good at it if they don’t do it for a living. For Sale by Owners are hiding material facts. FSBOs are bound by the same laws that govern those who are represented by a real estate agent. These sellers must give buyers federal- and state-mandated disclosures, if any, including revealing any pertinent material facts. You don’t have to get preapproved for a mortgage. This is always helpful whether you’re buying a FSBO or going a more traditional route. It might not be required, but it helps to define your price range, and all sellers will appreciate knowing that you’re already approved to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS SUBROGATION?

What Is Subrogation? Subrogation is a term describing a legal right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured. This is done in order to recover the amount of the claim paid by the insurance carrier to the insured for the loss. When an insurance company pursues a third party for damages, it is said to "step into the shoes of the policyholder," and thus will have the same rights and legal standing as the policyholder when seeking compensation for losses. If the insured party does not have the legal standing to sue the third party, the insurer will also be unable to pursue a lawsuit as a result. How Subrogation Works Subrogation literally refers to the act of one person or party standing in the place of another person or party. Subrogation effectively defines the rights of the insurance company both before and after it has paid claims made against a policy. Subrogation makes obtaining a settlement under an insurance policy go more smoothly. In most cases, an individual’s insurance company pays its client’s claim for losses directly, then seeks reimbursement from the other party, or his insurance company. The insured client receives payment promptly, which is what he pays his insurance company to do; then, the insurance company may pursue a subrogation claim against the party at fault for the loss. Insurance policies may contain language that entitles an insurer, once losses are paid on claims, to seek recovery of funds from a third party if that third party caused the loss. The insured does not have the right both to file a claim with the insurer to receive the coverage outlined in the insurance policy and to seek damages from the third party that caused the losses. Subrogation in the insurance sector, especially among auto insurance policies, occurs when the insurance carrier takes on the financial burden of the insured as the result of an injury or accident payment and seeks repayment from the at-fault party. One example of subrogation is when an insured driver's car is totaled through the fault of another driver. The insurance carrier reimburses the covered driver under the terms of the policy and then pursues legal action against the driver at fault. If the carrier is successful, it must divide the amount recovered after expenses proportionately with the insured to repay any deductible paid by the insured. Subrogation is not only relegated to auto insurers and auto policyholders. Another possibility of subrogation occurs within the health care sector. If, for example, a health insurance policyholder is injured in an accident and the insurer pays $20,000 to cover the medical bills, that same health insurance company is allowed to collect $20,000 from the at-fault party to reconcile the payment. KEY TAKEAWAYS Subrogation is a term describing a legal right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured. Subrogation makes obtaining a settlement under an insurance policy go smoothly. In most cases, an individual’s insurance company pays its client’s claim for losses directly, then seeks reimbursement from the other party, or his insurance company. Subrogation is most common in an auto insurance policy but also occurs in property/casualty and healthcare policy claims. Special Considerations The Subrogation Process for the Insured Luckily for policyholders, the subrogation process is very passive for the victim of an accident from the fault of another party. The subrogation process is meant to protect insured parties; the insurance companies of the two parties involved work to mediate and legally come to a conclusion overpayment. Policyholders are simply covered by their insurance company and can act accordingly. It benefits the insured in that the at-fault party must make a payment during subrogation to the insurer, which helps keep the policyholder's insurance rates low. In the case of an accident, it is still important to stay in communication with the insurance company. Make sure all accidents are reported to the insurer in a timely manner and let the insurer know if there should be any settlement or legal action. If a settlement occurs outside of the normal subrogation process between the two parties in a court of law, it is often legally impossible for the insurer to pursue subrogation against the at-fault party. This is due to the fact most settlements include a waiver of subrogation. Waivers of Subrogation A waiver of subrogation is a contractual provision whereby an insured waives the right of their insurance carrier to seek redress or seek compensation for losses from a negligent third party. Typically, insurers charge an additional fee for this special policy endorsement. Many construction contracts and leases include a waiver of subrogation clause. Such provisions prevent one party’s insurance carrier from pursuing a claim against the other contractual party in an attempt to recover money paid by the insurance company to the insured or to a third party to resolve a covered claim. In other words, if subrogation is waived, the insurance company cannot "step into the client's shoes" once a claim has been settled and sue the other party to recoup their losses. Thus, if subrogation is waived, the insurer is exposed to greater

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

AFFIDAVIT OF HEIRSHIP

When a person dies without leaving a will, an affidavit of heirship may be needed to establish facts about the deceased person’s heirs and the transfer of property. While laws regarding an affidavit of heirship vary from state to state, the basic principles are the same across the nation. This guide will provide the information needed to understand the affidavit and why it is needed. Who Needs an Affidavit of Heirship When disposing of a deceased person’s property or transferring the deeds to the heirs, it is necessary to document the legal right of title has passed from the decedent, the person who has passed away, to the heirs. A probated will may establish the legal ownership, though even when a will has been probated the affidavit may occasionally be required before a deed transfer is affected. However, if the deceased passed away without leaving a will, the affidavit of heirship can establish legally who the heirs are, the property the deceased left behind, and how that property is to be disbursed. Additionally, the affidavit can usually be executed without involving probate court. This can speed up the process of transferring ownership of the property. For this reason, even in cases where a will has been left behind, some people may choose to execute an affidavit. In cases where there is no dispute over the heirs or how to disburse the property in question, an affidavit of heirship may be used. In that case, the heirs may agree to use the affidavit to execute the decedent’s wishes instead of taking the will to probate court. What the Affidavit Accomplishes The affidavit spells out who the legal heirs to the property are, what the property is, and who gains ownership of the property. Legally specifying who the decedent’s heirs are establishes the rights and responsibilities of those heirs to dispose of the decedent’s property and wrap up the affairs on behalf of the deceased. A full list of the property owned by the decedent is included in the affidavit and establishes exactly what property is being transferred to the heirs. For land, this includes a legal description of the property, of the sort found on the title deed. The affidavit also serves as an instrument for transferring ownership to the heirs. An affidavit of heirship may be used in lieu of a deed transfer and, in the case of land, the affidavit must be filed with the county recorder to establish the ownership of the land in the same way a deed would. Who Is Party to the Affidavit of Heirship The primary parties to the affidavit are the heirs themselves. This is usually the spouse or registered domestic partner and any living children or blood relatives of the decedent. This may also involve friends of the decedent or even a former spouse, but it is less common to have others involved in an affidavit of heirship because everyone involved must be in agreement on the distribution of the decedent’s property. The affidavit may also include information about heirs of the decedent who have passed away and who their heirs were. The affidavit must be signed by witnesses under oath before a notary public. The laws regarding who may attest to the affidavit vary from state to state. In most states, the witnesses must be one or more disinterested parties – that is, the witnesses must not be heirs or family members of the deceased. This prevents any conflict of interest where the witness would have an incentive to lie on the affidavit. Some states may require only one witness, or witnesses who are family members, or a mix of family members and disinterested parties. It is important to know the state laws regarding who may attest to the affidavit. The witnesses are usually required to know the decedent, the date they passed away, that names and birthdates of the family members and heirs, and whether the decedent had any outstanding debts at the time of their death. The witnesses will also usually be required to swear that they will not benefit financially from the estate themselves and can be held for perjury if their statements are false. Executing the Affidavit Once the witnesses have signed the affidavit in front of the notary, the document may be accepted as legal proof of heirship and transfer of ownership. In some cases, the document must be approved by a probate court. This is true in certain states that require this for any affidavit of heirship. Additionally, if the decedent left a will and it was in the process of being probated, the affidavit will need to be presented to the probate court for approval and to conclude the probate process. If real estate was being transferred in the affidavit, it must also be filed with the county recorder’s office in the county where the land is located. How to Create an Affidavit of Heirship While the affidavit of heirship is a simplified way of disbursing the property of a deceased person, it is nevertheless a legal document that must be properly created and executed. As such, it may be beneficial to have a lawyer familiar with estate law help create the affidavit of heirship on your behalf and help walk you through the process of getting the appropriate witnesses and executing and filing the affidavit. However, if you and the other heirs do not wish to engage an attorney for this process, it is possible to proceed to create the affidavit. Most states have an outline of what is required in the affidavit and that may be followed to ensure that all the requirements of the document are met. Consult your state’s website for information on the laws and requirements for an affidavit of heirship in your state. Another option is to consult a legal forms website online. These sites have ready-made forms that require you to fill in your specific information to create a legal document. These are usually tailored to the requirements of your state. You will still need to familiarize yourself with your state’s requirements for witnesses and the requirements for filing the document with a county recorder or probate court. While leaving a will is the best way to ensure the decedent’s wishes are carried out after their death, in many cases due to the absence of a will or in order to conclude the matter speedily an affidavit of heirship may provide a simple and speedy option for heirs to legally establish ownership of the decedent’s

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CERTIFICATE-OF-TRUST

Banks, financial institutions, and other lenders often make loans to trusts or loans that are guaranteed, collateralized, or otherwise supported by trusts. Lenders should perform due diligence for a trust, just as they would for other independent legal entities. This means verifying that the trust in question has the legal authority to borrow money, issue a guaranty, or pledge its assets, as applicable, and that the person signing documents on behalf of the trust is authorized to do so. Evidence of such authority would be found in the trust instrument, but it can be lengthy and will contain dispositive and other provisions that the trustee and trust beneficiaries might prefer remain private. A due diligence process requiring review of the entire trust instrument in such a case would be a lose-lose proposition – the lender must spend time and money reviewing a lengthy trust instrument, perhaps amended multiple times, and trustees and beneficiaries must reveal otherwise private information. Use of a certification of trust can avoid these problems. A certification of trust (or "trust certificate") is a short document signed by the trustee that simply states the trust's essential terms and certifies the trust's authority without revealing private details of the trust that aren't relevant to the pending transaction. It bridges the gap between what a lender needs to know and what a trustee wants to reveal – a true win-win. Many states, including Missouri (see Mo. Rev. Stat. § 456.10-1013), have adopted statutes designed to protect trust privacy and discourage requests for complete trust instrument copies by persons entering into contracts or other arrangements with trusts. The statutes accomplish this by permitting the trustee to furnish a certification of trust (which may include selected trust excerpts necessary to facilitate a particular pending transaction) rather than a copy of the complete trust instrument and protecting the person relying in good faith on such a certification of trust. Although this article focuses on the use of certifications of trust by lenders in the context of financing transactions, the statutes are generally applicable to any transaction involving a trust. Under Missouri's statute, which is modeled on the certification-of-trust provision of the federal Uniform Trust Code, the trust certificate must (1) be signed by all of the trust's trustees; (2) state that the trust has not been revoked, modified, or amended in any way that would cause the representations in the trust certificate to be incorrect; and (3) contain the following information: verification that the trust exists and its execution date; the identity of the person creating the trust (the grantor or settlor); the identity and address of the currently acting trustee; the powers of the trustee; whether the trust is revocable or irrevocable and the identity of any person having power to revoke the trust; the authority of co-trustees to sign or otherwise authenticate and whether all or less than all trustees are required in order to exercise the trustee's powers; the trust's taxpayer identification number; and the manner of taking title to trust property. The statute makes clear that a trust certificate need not include the dispositive terms of the trust, but it does permit the lender, or any other trust certificate recipient, to require the trustee to provide excerpts from the original trust instrument and later amendments designating the trustee and conferring on the trustee the power to act in the pending transaction, again balancing the lender's need to know against the trust's need for privacy. Even if a lender already possesses a complete copy of the trust instrument, the lender, as trust certificate recipient, is relieved of the need to review the instrument. Under Missouri's statute, when a trust certificate that meets statutory requirements is obtained, the recipient is expressly protected from liability when it acts in reliance on the certificate without knowledge that the representations in it are false. The lender is expressly permitted to assume, without inquiry, the truth of the statements contained in the certificate, and knowledge of trust instrument terms may not be inferred solely because a copy of all or part of the trust instrument is in the lender's possession. Further, if the lender enters into the pending transaction in good faith in reliance on the trust certificate, the lender may enforce the transaction against the trust's property as if the representations in the certificate were true. Lenders are cautioned, however, not to demand a copy of the trust instrument in addition to a trust certification and relevant trust excerpts, as doing so may subject the lender to liability for damages if a court determines that its demand was not made in good

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

AFFIDAVIT OF DEATH

Transferring Joint Tenancy Real Estate After a Death Property held in joint tenancy is usually easy to transfer to the survivor after the other owner dies. Many people, especially couples, own their homes or other real estate in "joint tenancy." Holding title this way is often a good idea, because it allows a quick and easy transfer to the survivor when one co-owner dies. Joint tenancy property doesn’t go through probate (that’s its biggest selling point), but as executor you may be asked to help with getting the property into the name of the surviving co-owner. (Real estate may also be held in a living trust. In that case, please see Transferring Real Estate Held in a Trust.) Many couples also hold property in "tenancy by the entirety." It’s similar to joint tenancy, but is available only to married couples (or couples who have entered into a registered domestic partnership or civil union) in about half of the states. Who Owns the Property When One Co-Owner Dies? When one co-owner dies, property that was held in joint tenancy with the right of survivorship automatically belongs to the surviving owner (or owners). The owners are called joint tenants. In most states, joint tenants must own equal shares; for example, you can’t have one joint tenant who owns a half-interest in the property and two others who own a quarter-interest each. So if three siblings owned a house in joint tenancy, each would own a one-third interest; if one died, the two survivors would each own a half-interest. Colorado, Connecticut, Ohio, and Vermont, however, allow joint tenants to own unequal shares. How to Tell Whether Real Estate Was Held in Joint Tenancy To see whether or not real estate owned by the deceased person was held in joint tenancy, check the deed that transferred the property into the names of the joint tenants. What you see may not be completely easy to understand. With luck, you’ll see something like “Stephen T. Jones and Maria L. Jones, as joint tenants with right of survivorship.” You might also see: “Stephen T. Jones and Maria L. Jones, as joint tenants” “Stephen T. Jones and Maria L. Jones, JTWROS” [joint tenants with right of survivorship] If the deed simply lists two owners but doesn’t say how they are taking title to the property, you’ll have to find out what state law says. In some states, it’s presumed that unless spouses state otherwise, they intend to hold real estate as joint tenants when they take title to it together. If you’re not sure whether or not real estate was held in joint tenancy, get expert advice from a local lawyer. How to Transfer Joint Tenancy Property Into the Survivor’s Name Legally, the surviving joint tenant owns the entire property, automatically, as of the moment of the joint tenant’s death. But the deed (and the property tax statement and the homeowner’s insurance bills) are all still in the names of both joint tenants. To make it clear that the surviving joint tenant is now the sole owner of the property, the survivor should document the change in the public real estate records. Those records are kept in the local land records office, which may be called the County Recorder, Register of Deeds, or other name. Real estate law is always local; the survivor will have to find out how things are done in the county where the property is situated. Generally, though, the survivor will need to record (file) one or both of these documents with the local land records office: Statement, signed by the survivor, stating that the survivor is now the sole owner of the joint tenancy property Certified copy of the death certificate The statement is often called something like “Affidavit –Death of Joint Tenant” or “Affidavit of Surviving Spouse for Change of Title to Real Estate.” It may need to be notarized, in which case it’s called an affidavit; in some states, it only needs to be signed “under penalty of perjury” and is called a declaration. Typically, the statement is about a page long and contains: a legal description of the property (copied from the deed) a statement that the property was held in joint tenancy a reference to the deed that transferred the property to the joint tenants, including its date and where it was recorded (filed) in the local land records office the name and date of death of the deceased joint tenant, and the name and signature of the surviving sole owner. Additional documents may be required by your state or county. To find out what documents are needed in your state, check the local court’s website, talk to someone at a title company, or consult a local probate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TRUSTS AND DIVORCE

Trusts and Divorce Trusts are an important tool that families can use to protect assets and pass wealth to future generations. When the beneficiary of a trust is facing divorce, he or she will be concerned that the trust assets and income may be vulnerable to a spousal claim. Such a claim can include equitable division of property, spousal or child support, and an award of legal fees and costs. Whether and to what extent a beneficiary’s interest in a trust can be subject to a spousal claim at divorce depends on: Whether the trust is revocable or irrevocable; Whether the divorcing spouse is the settlor (i.e., the creator) of the trust, or whether a third party established the trust; Whether the spouse-settlor funded the trust with marital or nonmarital property, or some of each; Whether the spouse has the power to compel distributions of trust assets or income; Whether there is a history of distributions from the trust to the beneficiary-spouse; and How the spouse used trust distributions after receipt. Trusts in Property Division Divorcing spouse as settlor of a revocable trust. If a spouse created and funded a revocable trust before marriage, and contributed no marital property after the parties’ marriage, the trust assets are his or her nonmarital property; nonmarital property is not divisible at divorce. Courts treat assets in a revocable trust as if they are owned outright by the trust settlor. If the spouse created the revocable trust during the marriage with marital property, such as savings from employment, the assets are marital property and can be equitably divided as if owned outright. Where a spouse-settlor funds his or her revocable trust with both marital and nonmarital property, the beneficiary’s ability to claim the nonmarital portion depends on whether he or she can clearly prove the identity of his or her nonmarital property contributions. If the assets are completely commingled and have become untraceable, the court may treat the entire trust as divisible marital property. Revocable trust established by a third party. A divorcing spouse who is the remainder beneficiary of a revocable trust created by a third party, such as a parent or grandparent, has no property right in the trust assets. The third party-settlor is the owner of the assets; they do not belong to the divorcing spouse and are not included in the pool of divisible marital property. Divorcing spouse as settlor of irrevocable trust. As a rule, a settlor has no power to terminate an irrevocable trust. After the settlor transfers marital (or nonmarital) property to the irrevocable trust, the trust is the owner of the property. Our courts have not wrestled with the question of their power to treat marital assets in an irrevocable trust as divisible property nor how a court can enforce an award against the trust itself. Courts in other states have ruled that a divorce court has power over an irrevocable trust only if the trust is a party to the lawsuit. A spouse who wants a court to take an action that directly affects the trust must sue the trust as an additional defendant in the divorce suit. Irrevocable trust established by a third party. Like the assets of a revocable third-party trust, the assets of an irrevocable third-party trust are not marital property. A spouse who is the beneficiary of such a trust does not have property rights in the trust assets that a court can divide at divorce. However, under some circumstances, a court can consider the value of the trust in deciding division of the couple’s marital property. One of the criteria for deciding what is a fair division of marital property is the value of each party’s nonmarital property. Where one spouse has substantial wealth in a third-party trust, a judge could decide to award the other spouse more of the marital property. The Fate of Trust Distributions Actions a divorcing spouse takes after receiving distributions from a trust may affect division of property at divorce. Spouse uses trust funds to purchase a home. A spouse who uses trust distributions to purchase a jointly titled family home has created a marital asset that a court will often decide should be divided equally at divorce. The beneficiary-spouse may ask the court for an unequal property award to compensate him or her for the contribution and the judge may or may not agree. Spouse commingles trust distributions with marital money in an operating account. A trust beneficiary might deposit trust distributions into a bank account in his or her sole name that includes marital funds, such as paychecks. If the owner uses it as an operating account, there may be multiple transactions in and out of the account; the multitude of transactions will make it difficult to clearly establish the portion of the account that is nonmarital property, especially when some contributions into the account were consumed by payment of family expenses. The court may treat the entire account as marital property. In most cases the beneficiary-spouse should not expect a court to compensate him or her for voluntary contributions of nonmarital money that were combined with marital funds and used to enhance the lifestyle of the parties and their children. Spouse transfers trust funds into a securities account. A spouse who combines trust money and marital money in an investment account titled in his or her name will have an easier time proving the nonmarital contribution as there are likely to be fewer transactions. However, in order to prove the value of the nonmarital share (including the original nonmarital contributions and the dividends, interest, appreciation, and shares acquired through sales and reinvestment) he or she must be able to produce account statements and other documents that show the source of all nonmarital contributions to the account and the entire history of the account from the date of marriage to the date of divorce. Spouse combines trust distributions with marital money in a joint cash or securities account. A joint account, even one that contains only one party’s trust distributions, could be wholly marital property or part marital and part nonmarital property. A party who seeks to claim a portion as nonmarital must be able to prove it with documents. However, documents showing the source of funds may not be enough; the other spouse may argue the funds or securities were converted to marital property when they were jointly titled. The outcome of such a dispute is unpredictable. Trusts and Post-Divorce Obligations When making an award of spousal or child support, courts consider all financial resources available to each party, not just income from employment; the laws governing spousal and child support make no distinction between monies available from wages and monies from a nonmarital source, such as a third-party trust. The court may consider a history of distributions from a trust, whether a beneficiary is a trustee of his or her own trust, and whether or not the terms of the trust permit the beneficiary to take distributions at will or to require the trustee to make distributions. The court may consider the family’s lifestyle prior to separation in deciding spousal and child support and the extent to which the wealthy spouse used trust assets to enhance the lifestyle. By contrast, if the re is no history of distributions from the trust, the court may ignore the trust in determining support and not speculate about what may happen in the future. When a spouse has a history of receiving distributions, but they are suddenly cut off when the couple separates, a court may look back several years, average the distributions and set support as if distributions will resume after divorce based on the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

PREPAID ITEMS VS. CLOSING COSTS

<a href="https://kcrealestatelawyer.com/wp-content/uploads/2019/01/roy-legal-group-branded-logo-2-e1559229612396.png"><img src="https://kcrealestatelawyer.com/wp-content/uploads/2019/01/roy-legal-group-branded-logo-2-e1559229612396.png" alt="" width="139" height="149" class="alignnone size-full wp-image-1747" /></a> What does prepaid mean? Prepaid items are exactly what the name implies - payments made in advance of the monies due to obtain your new loan. These amounts are often necessary to fund what's known as an "escrow" or "impound" account for property taxes and insurance. Lenders often require homeowners, especially those with less than 20 percent down, to have escrow accounts associated with their mortgage loan. This means homeowners pay an additional amount each month to an account administered by the lender. An escrow account on behalf of the lender lowers the its risk by making sure the home is protected. No liens for missed taxes should occur, and property insurance coverage protects the lender's collateral. What are prepaid items on a mortgage? When it comes to mortgage loans, there are several different types of prepaid items, the most common are: Homeowners insurance premium paid up front as well as into an escrow account Real estate property taxes paid into an escrow account Mortgage interest (also known as per diem interest) that accrues between the closing date and month-end Prepaid items: taxes and insurance Typically, one full year of homeowner's insurance is collected and prepaid to your insurance company at closing. Alternatively, some homeowners choose to pay this amount prior to closing. An additional cushion for homeowners insurance, along with property taxes, are collected and placed into an escrow account. This is so your new lender can build reserves and have enough to pay those bills when they come due. Prepaid items: mortgage interest Mortgage interest is collected as a prepaid item so the lender can apply it to your first mortgage payment. This way, no matter which day of the month you close, the lender has at least 30 days to enter your data into its system, and issue your first statement. The amount of interest required varies depending on what time of the month you close your loan. Some homeowners close at the end of the month so that it reduces the interest accrued in advance of your first monthly mortgage payment. A common misnomer is "skipping a payment." The feeling of skipping that first payment comes because you've paid the first payment at closing, in advance of it actually coming due. There is a difference between prepaid items, closing costs and fees. Prepaid items are not closing costs. They are monies that would have been paid anyway -- new home loan or not. Prepaid items, listed above, are figures on your Closing Disclosure unrelated to the process of getting a mortgage. The exception to this is upfront mortgage insurance premiums (MIPs) for Federal Housing Administration (FHA) mortgage loans. Closing costs on the other hand, describe all of the fees or charges for actions or items connected to originating and closing a mortgage loan. Closing costs can include things such as: Payments to title companies Attorney fees Governmental title recording fees Lender fees Some homebuyers' wonder, "Is the inspection part of closing costs." The answer is "typically not." Generally the home buyer orders and pays for an inspection to gain a detailed understanding of the home's condition. Sometimes, the home buyer is able to use the inspection report to gain price concessions from the seller or to negotiate certain repairs to the home. In cases where a home buyer doesn't pay for the inspection fee promptly at the time of service, inspection fees could be handled at closing as part of the closing costs. Closing costs and prepaid items factor into mortgage loan comparisons Understanding what is included in closing costs for buying a house and the difference between prepaid items, closing costs and other fees associated with closing can help you shop for lower mortgage rates. Prepaid items should be the same from one lender to the next. They are separate from your mortgage closing costs, rate and terms. As such, you can remove them from your cost comparisons. Separating closing costs and prepaid items should make comparing mortgage rates easy. If you're unsure about whether a certain item is included in closing costs or prepaid items, just ask yourself a simple question: "Is this a charge that I would have if I wasn't borrowing to buy the house?" If the answer is "yes," it's a prepaid

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS AN OPERATING AGREEMENT?

If you are seeking a business structure with more personal protection but less formality, then forming an LLC, or limited liability company, is a good consideration. If you are seeking a business structure with more personal protection but less formality, then forming an LLC, or limited liability company, is a good consideration. Regardless of your business structure, some paperwork like an operating agreement is expected. Here are the basics every LLC owner should know about operating agreements: What is an operating agreement? An operating agreement is a key document used by LLCs because it outlines the business' financial and functional decisions including rules, regulations and provisions. The purpose of the document is to govern the internal operations of the business in a way that suits the specific needs of the business owners. Once the document is signed by the members of the limited liability company, it acts as an official contract binding them to its terms. Why do you need an operating agreement? To protect the business' limited liability status: Operating agreements give members protection from personal liability to the LLC. Without this specific formality, your LLC can closely resemble a sole proprietorship or partnership, jeopardizing your personal liability. To clarify verbal agreements: Even if members have orally agreed to certain terms, misunderstanding or miscommunication can take place. It is always best to have the operational conditions and other business arrangements handled in writing so they can be referred to in the event of any conflict. To protect your agreement in the eyes of your state: State default rules govern LLCs without an official operating agreement. This means that each state outlines default rules that apply to businesses that do not sign operating agreements. Because the state default rules are so general, it is not advisable to rely on a governing body state to manage your agreement. Tip: Consult with an attorney and accountant to assist with the financial and legal matters of your agreement. What does an operating agreement entail? Operating agreements are contract documents that are generally between five and twenty pages long. What is included in an operating agreement? The functionality of internal affairs is outlined in the operating agreement including but not limited to: Percentage of members' ownership Voting rights and responsibilities Powers and duties of members and managers Distribution of profits and loses Holding meetings Buyout and buy-sell rules (procedures for transferring interest or in the event of a death) Are LLCs required to form an operating agreement? The requirement of an operating agreement depends on the state it was formed in. While many states do not require operating agreements, some, such as Missouri and New York. This information can generally be found on your secretary of state website. Tip: It is unwise to operate without an operating agreement even though most states do not require a written document. Regardless of your state's law, think twice before opting out of this provision. Where should operating agreements be kept? Operating agreements should be kept with the core records of your business. They are not required to be filed, nor will they be accepted by your state. Tip: Operating agreements should be kept

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE DIFFERENCE BETWEEN A REAL ESTATE LAWYER AND REAL ESTATE AGENT

If you ask a realtor whether to hire a real estate agent or a lawyer to buy a house, you can pretty expect the realtor will suggest hiring an agent. On the other hand, if you ask a lawyer which type of representation is better — lawyer vs real estate agent — the lawyer will probably say hire a lawyer. Each profession has its own advocates, but the best solution is neither of those options. It is both of those options. Now, we know what you're thinking. You're thinking if you are buying a house, you are not paying for an agent to represent you, the seller is paying that fee. So, why would you want to spend money you don't have to spend to hire a lawyer? Some buyers want the legal protections and advice only a qualified and competent real estate lawyer can provide. Hiring a Lawyer vs. an Agent to Buy a House If you talk to some lawyers, they might say you should hire a lawyer and not a real estate agent because a lawyer can provide both services. The trouble with that idea is few lawyers professionally sell real estate. It's a hat they don't often wear. Lawyers might not know the specific neighborhoods, how to prepare a comparative market analysis, draw a real estate contract, or anything about the listing agent nor the profession of real estate, much less how to spot defects, negotiate for repairs nor any of the other dozens of tasks an experienced buyer's agent performs. On the other hand, real estate agents are not licensed to provide legal advice. This means they cannot answer a legal question, even if they know the answer, without breaking the law. An agent could potentially lose her real estate license if she tried to practice law. A Real Estate Question vs a Legal Question Unfortunately, many real estate clients cannot differentiate between a legal question and a real estate question. If it pertains to real estate, many buyers don't see it as a legal question. They will say so, too, after nodding their heads that they firmly understand an agent can't give legal advice. They will say, "OK, I won't ask you a legal question but how do you think I should hold title?" Which is a legal question. Now, if a buyer wants to know how many square feet are in an acre, which is 43,560, an agent can answer that question. But if a buyer wants to know the ramifications of a shared driveway easement, that is a legal question. About now, you're probably thinking well, what good is a real estate agent then if she can't answer any legal questions about real estate? You would not be alone in that thinking. It's frustrating for a buyer. Another example is can I cancel this purchase contract and get my deposit back? Again, a legal question, not a real estate question. An experienced agent might point to the paragraph in the purchase contract pertaining to the return of earnest money deposit and she might disclose what usually happens with regards to her experiences, but she can't advise a buyer to sue the seller nor guarantee the deposit will be returned. If she knows the buyer's deposit is at risk, she might share a few situations about the way her clients handled these matters, but in the end, she will be forced to suggest a buyer obtain legal advice. The Bottom Line a Lawyer vs. Agent It is not that the buyer's agent does not want to help, it's that she can't give legal advice. Further, if she violated the law and expressed a legal opinion, a buyer could not rely on it anyway. Lawyers typically charge a few hundred dollars an hour. A brief consultation is the better way for a buyer to obtain legal advice than to try to squeeze it out of his agent, just because he doesn't want to pay a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE 5 BIGGEST SELLER MISTAKES

Mistake #1 – Overpricing Everyone wants to realize as much as possible when they list their home for sale. Here in the Lakes Region of New Hampshire, just like the rest of the country, the market is saturated with listings and there are very few buyers. Now, more than ever, if your house is not priced correctly people looking in your price range will see the deficiencies and instead opt to look at homes that are a better perceived value. If you price it too high thinking that you can negotiate downward, forget it! You may miss the many buyers who only search up to a certain price point. Inflating your price usually will lead to a much longer time on the market.  That could cost you money and inconvenience as well! Don’t become a stale listing because you overpriced your home. Overpricing can also occur when given bad advice from an agent who might not know the market very well or that is trying to “buy” your listing with a “pie-in-the-sky” number.  This leads us to: Mistake #2. Picking an agent based on sales price or commission rate Picking an agency and an agent in the Lakes Region to represent you can be confusing. A lot comes down to the agency’s reputation, their marketing program, how professional the agent is, or well…you just feel comfortable with the agent. Maybe you have used their services before. All good reasons.  But don’t base your choice on how much the agent tells you your property is worth or on the cheapest commission rate. Many times an inexperienced agent will tend to overprice a home. Unsure of how to do an accurate Comparative Market Analysis (CMA), he may pick bad or wrong comparables for the market analysis and the eager seller looks past the accuracy of what is represented. Most sellers want to believe that their property is worth more than it actually is.  You should have more than one CMA and compare what agents tell you. I have faith in my potential clients that when they are presented with “real data” they will come to the same conclusion as me. Sellers often wants to list their home with whoever will give them the cheapest commission rate. Note: Cheapest isn’t usually the best.  Why? 1. You usually get what you pay for. Believe it or not there are some heavy duty costs associated with running an agency and a lot of money is spent on advertising and marketing, equipment, office space, and support to get your property sold. If an agency is discounting commission rates they are undoubtedly cutting back on all the expenses it takes to sell your listing. 2. You usually get what you pay for. Full service counts for a lot in this business. Many times a seller will list with a discount broker from outside of our area (rather then utilize an agent in the Lakes Region). That agent (a.) doesn’t advertise in the lakes Region, (b.) doesn’t have buyers calling him looking for property in the Lakes Region because he’s not located here and (c.) doesn’t come to showingsbecause he lives too far away. Wouldn’t it make sense to pay that little extra and actually get the service you need to sell your house? 3. You usually get what you pay for. Professional, knowledgeable, successful agents in the Lakes Region—the agents that actually sell homes— don’t sell themselves, or you, short. If an agent is willing to discount his commission just to get the listing, he’ll discount his service when it comes to the hard line negotiations and other services you are paying him to perform. A good agent will more than earn that little extra you pay to get him by making your life easier, making sure the transaction is completed smoothly, and negotiating you a better deal. 4. Yes…….You usually get what you pay for. Most sellers don’t realize that commissions are split four ways between the listing broker and agent and the selling broker and agent. The smaller the commission, the smaller the split. Sometimes it is to the point where some agents may bypass listings—or move them to the last on the list—if they feel it is not worth their effort. Mistake #3. Not heeding showing and agent feedback Lakes Region REALTORS® make a living by knowing the market. Part of that knowledge comes from listening to the feedback from other agents and buyers who see your property. It is ultimately the buying public that sets the price that your home will ultimately sell for. So if your REALTOR® tells you that the feedback he is getting is telling him that the price needs to be adjusted, certain repairs need to be done, or the property needs some sprucing up….LISTEN!…or you may be sitting on your property for many months to come!!  It may take a few showings to come to a true consensus, but take all feedback seriously or you may be waiting a long time for that one buyer who is willing to overlook all the concerns. REALTORS® see hundreds of homes per month, so having your property toured by the agents in the listing office is a good way to test the price you have on your property. Mistake #4.  Failure to make a good first impression. First impressions are the key whether you are meeting someone for the first time or opening the front door to a property you are looking at to buy. So clean up, de-clutter, finish up projects that have been stopped midway, and freshen up wherever you can. You have to look at your own property with a very critical eye—the buyer certainly will. An uncompleted project or something that needs repair may be discounted by the buyer much more than the real cost to repair. So remove as many negatives as possible! A fresh coat of paint, if necessary, is the cheapest and easiest way to make your home feel much more appealing. Your REALTOR® can make recommendations to help you stage your property to sell. Mistake #5. Thinking that classified ads and open houses sell homes. While newspaper ads and open houses can and should be a part of an overall marketing plan, it is relatively unlikely that the sale of the subject property will come from those sources. The purpose of a newspaper ad, first and foremost, is to get the buying public to call the broker’s office. It is very rare that a prospective buyer actually buys the home he calls on. It is the agent’s job to direct a prospect to a home that fits his criteria. It is far more likely that your home will be sold as a result of an agent exposing your home to a buyer that has called on an ad for another property. So don’t get anxious or upset if you don’t see your property advertised each and every week in the newspaper! Public open houses don’t work all that well in the Lakes Region!! Other areas of the country have great success and buyers flock to them…but not here. If it is the only thing you can do, if you are a For Sale by Owner, then by all means do it! And while REALTORS® do them and occasionally get someone that leads to a sale, most of the time they are held only to appease the Seller or as a last resort.  Broker open houses are utilized much more often in the Lakes Region of NH as they will expose your home to many more buyers through the agents that come to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS USUFRUCT?

Usufruct (/ˈjuːzjuːfrʌkt/)[1] is a limited real right (or in rem right) found in civil-law and mixed jurisdictions that unites the two property interests of usus and fructus: Usus (use) is the right to use or enjoy a thing possessed, directly and without altering it. Fructus (fruit, in a figurative sense) is the right to derive profit from a thing possessed: for instance, by selling crops, leasing immovables or annexed movables, taxing for entry, and so on. A usufruct is either granted in severalty or held in common ownership, as long as the property is not damaged or destroyed. The third civilian property interest is abusus (literally abuse), the right to alienate the thing possessed, either by consuming or destroying it (e.g. for profit), or by transferring it to someone else (e.g. sale, exchange, gift). Someone enjoying all three rights has full ownership. Generally, a usufruct is a system in which a person or group of persons uses the real property (often land) of another. The "usufructuary" does not own the property, but does have an interest in it, which is sanctioned or contractually allowed by the owner. Two different systems of usufruct exist: perfect and imperfect. In a perfect usufruct, the usufructuary is entitled the use of the property but cannot substantially change it. For example, an owner of a small business may become ill and grant the right of usufruct to an individual to run their business. The usufructuary thus has the right to operate the business and gain income from it, but does not have the right to, for example, tear down the business and replace it, or to sell it.[2] The imperfect usufruct system gives the usufructuary some ability to modify the property. For example, if a land owner grants a piece of land to a usufructuary for agricultural use, the usufructuary may have the right to not only grow crops on the land but also make improvements that would help in farming, say by building a barn. However this can be disadvantageous to the usufructuary: if a usufructuary makes material improvements - such as a building, or fixtures attached to the building, or other fixed structures - to their usufruct, they do not own the improvements, and any money spent on those improvements would belong to the original owner at the end of the usufruct.[3][4][additional citation(s) needed] In many usufructuary property systems, such as the traditional ejido system in Mexico, individuals or groups may only acquire the usufruct of the property, not legal title.[citation needed] A usufruct is directly equatable to a common-law life estate except that a usufruct can be granted for a term shorter than the holder's

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A WRAP AROUND MORTGAGE?

A wraparound mortgage, more commonly known as a "wrap", is a form of secondary financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around and exists in addition to any superior mortgages already secured by the property. Under a wrap, a seller accepts a secured promissory note from the buyer for the amount due on the underlying mortgage plus an amount up to the remaining purchase money balance. The new purchaser makes monthly payments to the seller, who is then responsible for making the payments to the underlying mortgagee(s). Should the new purchaser default on those payments, the seller then has the right of foreclosure to recapture the subject property. Because wraps are a form of seller financing, they have the effect of lowering the barriers to ownership of real property; they also can expedite the process of purchasing a home. An example: The seller, who has the original mortgage sells his home with the existing first mortgage in place and a second mortgage which he "carries back" from the buyer. The mortgage he takes from the buyer is for the amount of the first mortgage plus a negotiated amount less than or up to the sales price, minus any down payment and closing costs. The monthly payments are made by the buyer to the seller, who then continues to pay the first mortgage with the proceeds. When the buyer either sells or refinances the property, all mortgages are paid off in full, with the seller entitled to the difference in the payoff of the wrap and any underlying loan payoffs. Typically, the seller also charges a spread. For example, a seller may have a mortgage at 6% and sell the property at a rate of 8% on a wraparound mortgage. He then would be making a 2% spread on the payments each month (roughly). The difference in principal amounts and amortization schedules will affect the actual spread made). As title is actually transferred from seller to buyer, wraparound mortgage transactions may give the bank or other mortgagees the right to call the superior notes due, based on the due-on-sale clause of the underlying mortgage(s), if such a clause is present. It is appropriate to note that the bank or other mortgagees may elect to continue to receive interest payments even in the case where they become aware of the transfer of ownership. If the mortgage remains current (and especially if the new buyer brings a formerly-defaulted mortgage current again) the original lender has no real incentive to elect acceleration of the note since they remain in a secure

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MARITAL PROPERTY

Types of Property Divided in a Missouri Divorce Proceeding When couples go through a divorce, they need to address a variety of issues, including how to divvy up their property (assets). Assets can include “real property,” such as homes and land, and “personal property,” such as bank accounts, cash, cars, furniture, collectibles, jewelry, clothing, bank accounts, investments, and retirement benefits. Missouri is a "dual-property" state, which means that, for divorce purposes, property is further broken down into two categories: “marital property” and “non-marital property.” Before you make any decisions about what to do with your property, you'll need to understand the difference between “marital” and “non-marital property.” It’s essential to make this distinction because family law courts only have the power to divide “marital property.” "Marital" Property in Missouri “Marital” property is all property acquired by either spouse during the marriage. Missouri law assumes that all property is marital unless a spouse can prove that something is non-marital. This rule applies to both real and personal property. For the most part, it doesn't matter whether title is in one spouse's name or both; the law assumes that an asset belongs equally to both spouses if it was acquired after the date the couple married. There are, however, some important exceptions to this general rule. For instance, if Spouse A adds Spouse B's name to a deed to non-marital property, and Spouse B later proves in court that Spouse A had a "donative" intent (meaning, wanted to make a gift), there is a possibility that the property may be "transmuted" (changed) to marital property. These and other exceptions can be difficult to analyze on your own. If you’re having trouble identifying property in your divorce, you should consult with an experienced family law attorney. "Non-Marital" or “Separate” Property in Missouri "Non-marital" property (also referred to as “separate" property) is everything that's not marital, and it belongs to only one spouse. The general rule is that separate property is not divided during a divorce, and it stays with the spouse that acquired it. The most common type of non-marital property is something that was acquired before the marriage, for example, a valuable piece of jewelry or a car that one of the spouses owned outright prior to the marriage. But there are other kinds of non-marital property under Missouri law, which have nothing to do with the date of purchase or acquisition. For example, if one spouse inherits something from a relative during the marriage, the inheritance is that spouse’s separate property. Or if a spouse receives a gift, even from the other spouse, that's also considered non-marital. Separate property can also be identified prior to marriage. Spouses can write a prenuptial agreement before their marriage, which explicitly states what property is marital and what's separate. They will be bound to follow the terms of the agreement if they decide to divorce. Finally, if spouses decide to legally separate (instead of divorce), all property they acquire after getting a separation decree is non-marital. This is different from the "date of separation" used for purposes of filing for divorce. When spouses split up and one files for divorce, the date they separated will be listed in the court papers. That date will be used to decide the value of assets, but everything acquired after filing for divorce is still assumed to be marital property up until the divorce is final. “Commingled” Property “Commingling” property is very common, and simply refers to blending non-marital property with marital property. Let’s say, for example, that Spouse A inherits money before the marriage and uses it for a down payment on a house. After this, Spouse A marries Spouse B, and they live in the home. During their marriage, they use marital income to pay the monthly mortgage. In this case, they have commingled a real property asset by using marital funds to pay down the mortgage on a separate property home. To sort things out in such cases, Missouri courts use a formula to fairly compensate Spouse A for any contributions made toward the home both before and after the marriage. Spouse A will get a non-marital and marital percentage that reflects his or her total contribution and any appreciation in value, whereas Spouse B will only get a marital interest. How Property is Divided in Missouri If you're planning a divorce, you have two basic options regarding the division of property. Reach a property agreement with your spouse First, you can reach an agreement with your spouse about how property will be divided. This is the ideal solution because it gives you and your spouse control of the situation, instead of leaving it up to a judge who may not fully understand all of the circumstances of your particular case. It's common for spouses to reach out-of-court property agreements, especially when they don't have many assets or when they're able to cooperate with each other. However, even if your case seems fairly straightforward, you may want to consult with an experienced family law attorney that can make sure your rights are fully protected and help you draft or review any agreement(s). Let a judge decide using the equitable distribution method The other alternative is to go to court and let a judge decide. Missouri judges can only divide marital property; separate property is not part of the overall distribution. Missouri is an “equitable distribution” state, which means judges will divide marital property in a way they believe is equitable (fair), but not necessarily equal. A court doesn't have to give each spouse a 50% share of the marital assets. Spouse A could receive 65% of the marital property, and Spouse B only 35%, as long as the division is fair and reasonable. In determining a fair division of property, courts must consider all of the following factors: the spouses’ economic circumstances (meaning, how they're faring financially, and what their prospects are for future income based on their abilities to earn) at the time of the divorce whether and how much each spouse contributed to the acquisition of the property the value of either spouse’s non-marital property the spouses’ behavior during the marriage (e.g., a spouse's property award may be reduced if he or she squandered marital assets), and custodial arrangements for the minor children (if any). Based on these factors, a court will issue a property settlement that it believes awards each spouse a fair share of the total marital property. The property settlement will apportion (assign) any marital debts as well. The debts are offset against assets in calculating the final property award. Proving Your Property is Separate Missouri's divorce courts start off with the assumption that all property a couple acquires after they're officially married is marital property. If you want to be awarded separate property, you'll have to prove to the judge that it's non-marital. Missouri follows a principle called "the source of funds rule." This means that when a court is deciding whether property is marital or separate, it will examine who paid for the property, and how. Property that is marital is divided equitably, but property that's separate is awarded to the rightful owner. If you can prove that you paid for or obtained an asset without a contribution from your spouse, you'll be awarded your separate share. But, if you own any separate property that appreciated in value because your spouse helped pay for it during marriage, such as with the commingled house example above, then your spouse will get a share

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

BUYER-SELLER DISPUTE RESOLUTION SYSTEM (DRS)

Introduction This Dispute Resolution System (DRS) is not intended to replace arbitration or mediation activities conducted by associations’ Professional Standards Committees. The program is designed to resolve disputes between buyers, sellers, and real estate brokers/salespeople not otherwise covered under Article 17 of the Code of Ethics and Standards of Practice of the National Association of REALTORS® (NAR). “Dispute Resolution System” and the acronym “DRS” are used to identify methods of resolving disputes out of court, including mediation and arbitration. DRS programs are increasingly important as parties and the courts are utilizing programs that avoid the legal system and resolve disputes in a quick and cost-efficient manner. DRS reflects a serious effort to design workable and fair alternatives to civil litigation. There are several types of DRS programs, including: Negotiation—Direct bargaining between disputing parties with the parties attempting to resolve the dispute without the involvement of a neutral third party. Many real estate brokers practice this method of DRS without even realizing it. One example is where a disgruntled buyer on a walk-through inspection finds the seller broke the mailbox when moving out of the home and the real estate broker offers to replace the mailbox to resolve the problem. Mediation—In mediation, a neutral third party assists the disputants in negotiating a mutually acceptable settlement. Mediators do not make decisions but instead help the parties make their own agreement by clarifying issues, utilizing persuasion, and employing other conflict resolution strategies and techniques. Although there is no guarantee that every dispute will be resolved, surveys show that settlements are reached over 80% of the time. Arbitration—Arbitration is probably the best known DRS method. In arbitration, parties agree to submit existing or future disputes to a neutral third party, the arbitrator, or a panel of arbitrators who decide how the dispute will be resolved. In binding arbitration, the decision of the arbitrator(s) is final and binding. In non-binding arbitration, the parties choose whether to accept the arbitrator's decision or to proceed to litigation. Benefits of DRS Faster than litigation. Less expensive than litigation. Discourages litigation of frivolous claims. Parties actively participate in the process. Provides service brokers and salespeople can offer to clients and customers. Enhances the image of REALTORS® by providing consumers viable alternatives to litigation. Potential for lowering the cost of Errors and Omissions insurance. In addition to the above benefits, in mediation: Parties retain their legal rights to arbitrate or litigate if mediation is unsuccessful. Parties control the outcome. The process helps restore goodwill between disputants. True interests of the parties (not just their positions) are discovered/addressed. Process and agreement are flexible, allowing parties to move beyond different views of law or fact to create durable solutions beyond “win/lose”. Solutions are just as binding and enforceable as arbitration awards. Parties are less likely to have to go into court to enforce their agreement than in arbitration because the parties have entered into the agreement as opposed to having a third party render an award. The National Association of REALTORS® DRS Program These materials were developed by the National Association of REALTORS® for associations to use in conducting alternative DRS programs involving consumers (i.e., buyers and sellers). Many associations have already implemented the mediation program developed by NAR in 1990, or have adopted this program when it was first offered back in 1994. Other associations have designed and implemented their own DRS programs. These materials update the NAR program. Associations are free to use the mediation materials, the arbitration materials or a combination of mediation and arbitration. A combination mediation/arbitration program may be the most useful in settling disputes in a timely and cost-efficient manner. In a combined program, the DRS clause in the agreement provides for a two-step process, first mediation and then, if mediation is not successful, arbitration. The key is to first have the parties make good faith efforts through mediation to make their own settlement. If parties cannot resolve their differences through mediation, they have committed to arbitration, through which a neutral third party decides the dispute based on the facts. The NAR program is designed to resolve disputes between buyers, sellers, and real estate brokers/salespersons. The program is not designed to be used for disputes between REALTORS®. Disputes between REALTORS® must be resolved through mediation and/or arbitration procedures established in the NAR Code of Ethics and Arbitration Manual. Many civil court systems across the United States have adopted some form of DRS. Generally, DRS is triggered at the time the lawsuit is filed. Depending upon the particular type of program, once a suit is filed, the parties must participate in mediation or non-binding arbitration. If the DRS is unsuccessful, civil litigation begins. DRS programs are frequently encouraged because they provide a measuring stick for the parties to determine the relative strength of their cases. The NAR program does not conflict with court-annexed DRS programs because the NAR program takes place prior to the filing of litigation. The NAR program creates minimal legal exposure for associations. Associations should review each component and, after the decision is made to adopt one or both components, carefully follow the NAR Guidelines. Associations that follow these Guidelines, and provide confirmation to NAR that a DRS program has been adopted locally, will be covered under the professional liability insurance provided by NAR. Note: At the discretion of the local association, the local DRS program can be offered in rental transactions between landlords and tenants, and their real estate brokers/licensees. Background The concept of a REALTOR® DRS program for buyer-seller disputes was conceived in 1987 by members of the REALTORS® Liability Task Force. In January 1988, members of the then newly formed REALTORS® Risk Reduction DRS Subcommittee began the task of designing and developing a Dispute Resolution System that could be easily implemented by local associations and REALTORS® throughout the country. In their deliberations, members of the subcommittee evaluated and debated the merits of arbitration as well as mediation. Because of the non-adversarial nature of mediation, and the fact that disputants did not give up legal rights in agreeing to mediation, the NAR program was developed initially as a mediation program. The Mediation Guidelines were developed and sent, in 1990, to every association for their independent endorsement and administration. Since 1990, several state associations have successfully developed and implemented arbitration programs. Because of their success and the interest in arbitration, in 1992, the Risk Reduction Committee decided to expand the NAR DRS program to include Arbitration Guidelines, at the discretion of local

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SPECIFIC PERFORMANCE

Specific performance is an equitable remedy in the law of contract, whereby a court issues an order requiring a party to perform a specific action, such as to complete the performance of the contract. It is typically available in the sale of land but otherwise is not generally available if damages are an appropriate alternative. Specific performance is almost never available for contracts of personal service, although performance may also be ensured through the threat of proceedings for contempt of court. Specific performance is commonly used in the form of injunctive relief concerning confidential information or real property.[clarification needed] While specific performance can be in the form of any type of forced action, it is usually to complete a previously established transaction, thus being the most effective remedy in protecting the expectation interest of the innocent party to a contract. It is usually the opposite of a prohibitory injunction, but there are mandatory injunctions that have a similar effect to specific performance. At common law, a claimant's rights were limited to an award of damages. Later, the court of equity developed the remedy of specific performance instead, should damages prove inadequate. Specific performance is often guaranteed through the remedy of a right of possession, giving the plaintiff the right to take possession of the property in dispute.[citation needed] As with all equitable remedies, orders of specific performance are discretionary, so their availability depends on its appropriateness in the circumstances. Such order is granted when damages are not an adequate remedy and in some specific cases such as land (which is regarded as unique). An order of specific performance is generally not granted if any of the following is true: Specific performance would cause severe hardship to the defendant. The contract was unconscionable. Common-Law damages are readily available or the detriment suffered by the claimant is easy to substitute, then damages are adequate.[1][2] The claimant has misbehaved (unclean hands). Specific performance is impossible. The performance consists of a personal service The contract is too vague to be enforced. The contract was terminable at will (meaning either party can renege without notice). The contract required constant supervision. Mutuality was lacking in the initial agreement of the contract. The contract was made for no consideration. Specific performance will not be granted for contracts which are void or unenforceable. The exception to this (in equity) is in relation to estoppel or part performance. Where an injunction to restrain an employee from working for a rival employer will be granted even though specific performance cannot be obtained. The leading case is Lumley v Wagner, which is an English decision. Additionally, in England and Wales, under s. 50 of the Senior Courts Act 1981, the High Court has the discretion to award claimant damages in lieu of specific performance (or an injunction). Such damages will normally be assessed on the same basis as damages for breach of contract, namely to place the claimant in the position he would have been had the contract been carried out. Examples In practice, specific performance is most often used as a remedy in transactions regarding land, such as in the sale of land where the vendor refuses to convey title. The reason being that land is unique and that there is not another legal remedy available to put the non-breaching party in the same position had the contract been performed. However, the limits of specific performance in other contexts are narrow. Moreover, performance based on the personal judgment or abilities of the party on which the demand is made is rarely ordered by the court. The reason behind it is that the forced party will often perform below the party's regular standard when it is in the party's ability to do so. Monetary damages are usually given instead. Traditionally, equity would only grant specific performance with respect to contracts involving chattels where the goods were unique in character, such as art, heirlooms, and the like. The rationale behind this was that with goods being fungible, the aggrieved party had an adequate remedy in damages for the other party's non-performance. In the United States, Article 2 of the Uniform Commercial Code displaces the traditional rule in an attempt to adjust the law of sales of goods to the realities of the modern commercial marketplace. If the goods are identified to the contract for sale and in the possession of the seller, a court may order that the goods be delivered over to the buyer upon payment of the price. This is termed replevin. In addition, the Code allows a court to order specific performance where "the goods are unique or in other proper circumstances", leaving the question of what circumstances are proper to be developed by case law. The relief of Specific Performance is an equitable relief which is usually remedial or protective in nature. In the civil law (the law of continental Europe and much of the non-English speaking world) specific performance is considered to be the basic right. Money damages are a kind of "substitute specific performance." Indeed, it has been proposed that substitute specific performance better explains the common law rules of contract as well, see (Steven Smith, Contract Law, Clarendon Law ). In English law, in principle reparation must be done in specie unless another remedy is ‘more appropriate’.[8] Legal Debate There is an ongoing debate in the legal literature regarding the desirability of specific performance. Economists, generally, take the view that specific performance should be reserved for exceptional settings because it is costly to administer and may deter promisors from engaging in efficient breach. Professor Steven Shavell, for example, famously argued that specific performance should only be reserved for contracts to convey property and that in all other cases, money damages would be superior. In contrast, many lawyers from other philosophical traditions take the view that specific performance should be preferred as it is closest to what was promised in the contract. There is also uncertainty arising from empirical research whether specific performance provides greater value to promisees than money damages, given the difficulties of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CO-LIVING

The Rising Trend of Co-Living Spaces By now, you've already heard about coworking. But there's a new concept on the way: Co-living, which is, in a sense, the coworking equivalent of finding housing. A trend that's been quickly embraced by young people in cities across the country, co-living is a new answer to the age-old issue of affordable housing. It's also an ideal way to continue your professional and personal growth outside of the office. While co-living might seem like a foreign concept, it might just be the perfect way to find a community that's just right for you. What is co-living? Co-living is the trend of living with many other people in one space that encourages its residents to interact and work together. They are most often run by companies and have popped up in response to the huge number of young people moving to expensive cities in search of work. Co-living is a new kind of modern housing where residents with shared interests, intentions, and values share a living space where they're almost like a big family. Co-living is built on the concept of openness and collaboration, with the residents often sharing similar philosophical values. This form of housing is based on the sharing economy. Residents will usually have their own bedroom and bathroom but will share common areas like cooking and living spaces. On a practical level, the expenses are shared between all the residents, which can make it a more economical choice for some. The price you pay for a co-living space will vary depending on the city you live in, but it will always be cheaper than traditional rent. While you might be imagining a hostel, dorm, or hippie commune, this version of communal living is designed with young, working professionals in mind. While it could feasibly work anywhere, it remains a mostly urban trend at the moment, with residents sharing a house, building, or apartment. Is co-living the same as coworking? Co-living and coworking are similar in terms of more than just their names. They are both based on collaboration and community and they take a novel approach to daily activities, whether it's how we live or how we work. Many coworking spaces like WeWork are now adding co-living to their options, and a great deal of the co-living spaces around the world include coworking as well. While they are not the same concept, they share key aspects that skew towards young users. They're also both poised to completely reinvent the way we think about working and living. Many co-living establishments will double as a co-working space. For those who are digital nomads or remote workers, this is an ideal situation as quality Wi-Fi, and a place to work are located within the space. Coworking and co-living are also similar because of the ease in which you can network. Both environments allow you to meet with similarly minded people and form relationships. These types of spaces will often have regular organized activities or events where you can naturally integrate with others. Many people opt to work in a co-working space rather than a coffee shop or at home because they want that sense of community; the same reason why people choose to live in a co-living space. Why is co-living so popular? The rise of co-living comes from many factors, including engaging amenities and the enjoyment of living with others who share similar interests. Unlike some communes, those who choose co-living do not separate themselves from the world outside of their living space; they interact normally with the world while choosing to live with like-minded or like-interested individuals. For this reason, you can find co-living spreading across the world. There are co-living spaces in the United States as well as in cities around the globe, with several companies offering multiple locations around the world. Its popularity also comes from the fact that many people want to be around others—it's easy to just open your door and start a new friendship or even a business. Other benefits include a reduced financial burden, community support, group activities, and a sense of belonging. Co-living currently appeals mostly to younger generations, especially digital nomads who want to be able to travel and don’t want to worry about a mortgage. This type of lifestyle has a heavy emphasis on agility. The ability to move from place to place without being tied down by a lease is freeing to some people. Co-living spaces solve many problems that digital nomads and millennials face. When moving to a new city, the norm for many is to sign a one year lease, fill the space with your furniture, set up all the utilities, and when the year is up, you must either move or renew the lease. However, with co-living spaces, there is often no lease agreement or minimum commitment, making it a good fit for people moving from city to city due to professional or personal reasons. Often, there is no security deposit, and you will never have to set up utilities. Because of the communal nature of the housing arrangement, all of the resources are pooled together. The expenses are included and paid for as a group. One last pro to co-living spaces is that many are already furnished, so you won’t have to hire movers or spend money on furniture. While living in a co-living space, you might experience enhanced productivity, especially if there is a coworking space available in the area. ‍ Exploring Co-living Spaces There are now hundreds of co-living spaces of all shapes and sizes around the world. The Collective, founded in 2012, offers both co-living and coworking in London. They offer 546 rooms spread across 10 floors, featuring a movie theater, a library, a gym and a restaurant, plus a shared kitchen on every floor. Sun and Co., meanwhile, is based out of Javea, Spain in a 19th-century home with the option of shared or private rooms. Some companies are a bit larger and boast multiple locations. Roam operates outposts around the world in places like Bali, Miami, Tokyo and San Francisco. All rooms come with private bathrooms and include cleaning services. Common offers a similar deal in six U.S. cities. WeLive, WeWork's new co-living brand, offers communal spaces in New York and D.C. that split the difference between hotels and apartments—tenants can stay for a few nights or months at a time. Services that connect users with spaces have also popped up in recent years. Berlin-based Medici Living raised $1.1 billion last year to beef up its co-living platform. CoWoLi, too, tailors its services to digital nomads who want to travel the globe and need help finding the right co-living space. Coworking Guides and Resources Co-living spaces are just starting out and the concept is completely new to many people, so concerns regarding safety, scams and practicality are completely valid. Keep in mind, though, that new concepts can become the standard—AirBnb, for example, was considered odd until it disrupted the entire hospitality industry. While each space varies, as long as you do your research you should be fine. Look up each company online to ensure that they have active websites and that they are legitimate businesses. When visiting potential homes, explore the space and imagine how you would feel coming home to it every day. Consider the specifics, especially if you prefer a private room, an open kitchen, or amenities like a gym and a pool. Meet and chat with people who live there to find out their interests and how they like co-living at the property. Is co-living the future of housing? According to research by the Urban Institutes Housing Finance Policy Center, only 1 in 3 millennials under the age of 25 owned a home by the end of 2018. This number is 8-9% lower than we have seen in previous generations. The traditional way of housing has required this change. Millennials are often the demographic that gravitates towards co-living spaces due in part to the general consumer trends towards a sharing economy. Co-living has become more than just a housing model; it has become a solution for the growing younger

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REALTORS COMMISSIONS – THIS LAWSUIT MAY CHANGE THE WAY REALTORS ARE PAID

A recently filed class-action antitrust suit against the National Association of Realtors, among other major real estate players, could spell a serious shakeup for the industry. If the plaintiffs win out, it may change the face of buying and selling real estate as we know it. In Moerhl v National Association Realtors (NAR), home sellers from across the nation are claiming that NAR’s compensation policies—which require all member brokers demand blanket, non-negotiable buyer-side commission fees when listing a home on a Multiple Listing Service—is a violation of antitrust law. Realogy Holdings, HomeServices of America, RE/MAX and Keller Williams are also named in the suit. Though Minnesota home seller Christopher Moehrl originated the claim, sellers who listed their properties on 21 different Multiple Listing Services across the country are also plaintiffs on the antitrust suit. These MLSs cover Baltimore, Philadelphia, Washington, D.C., Detroit, Cleveland, Milwaukee, Houston, Dallas, Las Vegas and many of the nation’s largest housing markets. The Gist of the Suit According to Adam Swanson, an experienced real estate attorney at McCarter & English, Moerhl and Co. are claiming the current NAR-MLS-agent payment arrangement “prevents buyer’s agents from negotiating their own commission, which would likely be less.” The claim specifically cites a 2002 study in the International Real Estate Review journal that says that if buyer’s agents negotiated their own compensation, listing commissions for sellers would be closer to 3%, rather than the 5 to 6% seen in most markets. “In this way, the plaintiff claims that he was harmed by having to pay a buyer’s agent and, therefore a higher listing commission than if he only had to pay his agent,” Swanson said. Swanson says the suit is also claiming that the payment arrangement encourages agents to steer buyers toward higher cost (and higher commission) listings, as well as listings exclusive to MLS, both of which are “anti-competitive.” According to Michael Walsh, CEO at Exclusively Buyers, a real estate firm that works only with homebuyers, “This is no garden variety lawsuit.” “Potential damages are estimated at $54 billion,” Walsh said. “The plaintiffs allege collusion, hidden payments and anti-competitive practices designed to maintain real estate commissions at artificially high levels.” Robert Hahn, the founder at real estate consulting firm 7DS Associates, has called the case a potential “nuclear bomb on the industry.” If the plaintiffs win out, it could mean a change to how Multiple Listing Services and real estate agents work—and get paid. Currently, in most transactions, the home’s seller pays a 5 to 6% commission fee, which is split between their agent—the listing agent—and the agent representing the buyer. Walsh calls the arrangement “absurd.” “This lawsuit could—hopefully, will—change the way real estate brokerages operate in the future,” he said. “Right now, buyers don’t negotiate the fee for their agent. The seller pays. The seller is actually paying for the agent who will be negotiating against their financial interests. This is exactly why buyers are often skeptical as to whether their agent is working for them or the seller or just enjoying a nice payday for doing nothing.” Where the Case is Heading The chances of settlement are slim, according to experts, so this one is likely heading to court. The firms handling the plaintiff side—Hagens, Berman, Sobol & Shapiro and Cohen, Milstein, Sellers & Toll—are known for their drawn-out legal proceedings and lucrative wins. Hagens Berman secured $1.6 billion in a case against Toyota in 2013 and another $206 billion from the tobacco industry in 1998. Cohen Milstein won an antitrust lawsuit against Apple just five years ago for $560 million. As Swanson explained, “These are not the type of firms that put a suit in place to collect a few thousand dollars and go away.” There’s also the nature of the suit to consider. According to Swanson, the plaintiffs are after more than just money on this one. “This case is not likely about an angry Plaintiff who is unhappy that he paid a higher commission on a property sale,” he said. “There is a bigger goal behind this lawsuit and that is to open the competitive field an allow new players to get into the market.” But according to NAR, the suit has no legs. "The complaint is baseless and contains an abundance of false claims," said Mantill Williams, VP of communications at NAR. "The U.S. Courts have routinely found that Multiple Listing Services are pro-competitive and benefit consumers by creating great efficiencies in the homebuying and selling process. NAR looks forward to obtaining a similar precedent regarding this filing.” Those precedents NAR is referring to? They likely include a case from 2018, which saw a federal judge dismiss antitrust claims by a real estate attorney (and non-MLS member) against Michigan MLS Realcomp. Despite similarities, Hahn says this new case does have its merits. “Their facts are hard to dispute,” he wrote. “NAR does have those policies. The MLS does have the unilateral offer of compensation. The brokers and franchises do require their agents to become REALTORS and join the local MLS. The MLS is an essential utility to be in business. None of that is really all that disputable. So the issue will be whether subtle details about how cooperation and compensation really works will be enough to make a difference legally.” Big Repercussions Industrywide, Hahn says the repercussions could be sweeping. “If the court rules in favor of the plaintiffs here, REALTOR Associations evaporate, the MLS likely dies off, and the entire infrastructure of residential real estate in the United States has to be remade,” he wrote when the suit was filed last week. “It could be Ragnarok, the final end of the world battle of Norse mythology.” According to Swanson, though, the impact will largely depend on locale. “There would be a small impact on some markets, like New York City where there are multiple services available to list properties. In other markets, the MLS is king for residential properties and it is nearly impossible to buy/sell real property without listing it on MLS,” he said. “Without the MLS agreement to compensate the buyer’s agent there may be far fewer buyers represented by realtors because a buyer’s agent may otherwise have no assurance of compensation or security.” This could open the door for more consumer-to-consumer sales, Swanson said, with services like Zillow and Redfin filling the gap. Newer, yet-to-emerge services may “replace the role of the buyer’s broker altogether,” he said. Whatever happens, Frederick Warburg Peters, CEO of Warburg Realty in New York and fellow Forbes.com contributor, expects confusion to be the main result. But mostly? Buyers and sellers will get what they pay for. “I do not believe that it is likely to have too much financial effect on any of the parties involved in the long run,” Peters said. “Sellers will continue to pay seller’s agents, sometimes at reduced fees through such companies as Redfin or Purplebricks, but more often at a higher commission model. The same will become true for buyers. Top agents will continue to earn higher fees, and buyers looking for a discount will be serviced by a new sector of low-fee buyer’s agents.” Those discount providers will offer fewer services for less money, he says. “Some will choose it; some will not. Most of the time, it won’t save either side

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A CORRECTIVE DEED?

What is a Corrective Deed? A Corrective Deed is a special type of deed used to fix problems in deeds that have already been recorded. Unlike other types of deeds that transfer interests in real estate, a Corrective Deed does not create a new interest. Instead, the Corrective Deed corrects the documents relating to the prior transfer of interest. Say, for example, that you sign and record a deed that has a misspelling in the legal description. You may create a Corrective Deed to correct that legal description. To create a Corrective Deed, start with the document you have already recorded. There are three changes to convert that document to a Corrective Deed. Change 1: Add “Corrective” to the Title The first step is to change the title of the deed. This allows third parties—like title companies and lenders—to easily see that the document is being filed to correct a prior deed. Assume, for example, that the prior deed is a California quitclaim deed. In that case, the deed title will probably be “Quitclaim Deed.” That title should be changed to “Corrective Quitclaim Deed.” Change 2: Make the Correction The next step is to correct the error in the prior deed. If the error is a misspelling in the legal description, simply correct that error. Change 3: Add an Explanation The final step is to add an explanation for the correction. This provides third parties with a simple statement of why the Corrective Deed is being filed. The explanation should describe the title of the prior document, information about where it was recorded, and the exact change. For example: This Corrective Quitclaim Deed is made to correct the Quitclaim Deed recorded on January 27, 2015, as Instrument No. 201501311 in Book 1771 at Pages 259-271, in the land records of Los Angeles County, California. The legal description in the Quitclaim Deed recorded on January 27, 2015, inaccurately stated that the Pat B. Harris Survey was recorded in Book 192 when it is actually recorded in Book 162. This statement clarifies that you are only making a correction and not changing anything that would require the involvement of others. This information can be added anywhere, but usually appears below the legal description in the body of the deed. What is a Scrivener’s Affidavit? Scrivener’s Affidavits are sworn statements by the person who drafted a deed. Unlike a Corrective Deed, a Scrivener’s Affidavit doesn’t correct anything. Instead, it simply adds information to the property records to help clarify something about the prior deed. Example: Assume that Amber Jones conveys the property to John Doe. A later deed conveys property from J. Doe to Susan Parker. This creates ambiguity in the chain of title because title examiners do not know with certainty that “John Doe” and “J. Doe” are the same person. In this situation, the person who prepared the second deed may file a Scrivener’s Affidavit stating that “J. Doe is one and the same person as John Doe.” This helps resolve the ambiguity in the title. Compared to Corrective Deeds, Scrivener’s Affidavits are of limited use. Because a Corrective Deed is signed by the original transferor or transferors and includes all of the information on a single document, a Corrective Deed provides more certainty than a Scrivener’s Affidavit. Scrivener’s Affidavits should only be used when no change needs to be made, but additional information will resolve the title issue. Limitations of Corrective Deeds and Scrivener’s Affidavits Note that Corrective Deeds and Scrivener’s Affidavits are used to correct problems that occurred when the original deed was prepared and recorded. You would not use a Corrective Deed or Scrivener’s Affidavit to change the substance of the transaction. For example, you should not use a Corrective Deed to transfer property to a new owner that was not named in a prior effective deed. That new owner already has rights in the property. If you want someone else to receive the property, the new owner must agree and sign a new deed transferring the property to the person that you now intend to have

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TAX LAWS FOR THE SELLER OF A CONTRACT FOR DEED

Tax Laws for the Seller of a Contract for Deed In cases where qualified buyers are scarce, selling a home through a contract for deed can make sense. Homeowners might sell homes using contracts for deed because they want regular income streams rather than lump-sum payments. Selling a home using a contract for deed does come with certain tax implications for sellers. For example, contract for deed sellers usually loses any property tax deductions to their buyers. Property Tax Deductions Also known as land contracts, contracts for deed are installment sales pertaining to homes. A homeowner selling a home in a contract for deed retains ownership until the installment sale contract is fulfilled. However, the IRS gives the right to claim property tax credit to the buyer, not the home's actual owner. In other words, if you sell your home through a contract for deed, you usually can't deduct its property taxes. Seller Tax Benefits The IRS allows contract for deed home sellers to control how their capital gains are reported. Capital gains resulting from a contract for deed home sale can be reported over the years you receive principal payments from your buyer. Additionally, any interest income you receive from your contract for deed buyer can be declared as ordinary income. You report your contract for deed installment sale income annually to the IRS. Reporting Requirements Generally, contract for deed sellers use IRS Form 6252 to report installment sales in the year in which they take place. You also use Form 6252 during each year you receive income from your contract for deed. Attach Form 6252 to your Form 1040 and Schedule D, "Capital Gains and Losses." First-year installment sales are reported on Form 6252 on lines 1 through 4, Parts I and II; and lines 1 through 4, Part II in later years. Caution Smart contract for deed sellers always craft thorough sale contracts covering buyer contract forfeiture circumstances. In contracts for deed purchases, buyers receive what's called "equitable title rights" to their properties. In certain states, it can be difficult to get a defaulting contract for deed buyerS out of a property if that buyer claims an equitable interest in it. Lastly, if you sell a mortgaged home through a contract for deed, the lender could foreclose if it finds

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE LEVY

What is a Levy? A levy is the legal seizure of property to satisfy an outstanding debt. In the U.S., the Internal Revenue Service (IRS) has the authority to levy an individual's property, such as a car, boat, house. Property belonging to the individual that is held by someone else, including wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, commissions or the cash loan value of a life insurance policy can also be levied. Tax Levy The Internal Revenue Code (IRC) authorizes levies to collect delinquent tax. However, certain procedures must be followed and requirements met before enforcing a levy. In the U.S., for example, the Internal Revenue Service (IRS) must first assess the tax and send a Notice and Demand for Payment (a tax bill) to an individual owing federal taxes. If the individual still neglects or refuses to pay the tax, the IRS will send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing (levy notice). This is typically sent at least 30 days prior to the levy and can be given in person, dropped at the tax debtor's home or place of business, or mailed to the individual's last known address. As a measure of last resort, the taxing authority may impose a federal tax lien to inform other creditors of the taxing authority’s legal right to a taxpayer’s assets and property. A tax lien goes up on the debtor’s credit report and remains there for 10 years. If the taxes remain unpaid, the tax authority can use a tax levy to legally seize the taxpayer's assets (such as bank accounts, investment accounts, automobiles, and real property) to collect the money it is owed. The IRS is also authorized to garnish the taxpayer’s wages until the debt is paid off A state tax levy applies to unpaid state taxes. Note that the IRS can also levy a debtor’s state tax refund, in which case, s/he may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy. In some cases, the IRS can seize the taxpayer’s property without notice. This could occur if the taxing authority believes that the debtor is a flight risk or that s/he is dissipating assets by moving them outside the country or transferring them to other persons. For federal contractors, the IRS does not need to provide any notification of the levy until after the tax levy is applied. A levy differs from a lien because a levy takes the property to satisfy the tax debt, whereas a lien is a claim used as security for the tax debt. In other words, while a lien secures the government’s interest or claim in an individual’s or business’ property when the tax debt remains unpaid, a levy actually permits the government to seize and sell the property to pay the tax debt. Bank Levy A creditor that obtains a court judgment against a debtor may be able to have the court issue a bank levy. The bank levy freezes the bank account(s) of the debtor until all the outstanding debt is repaid in full. If the levy is not lifted, the creditor can take the money from the bank account and apply it to the total debt owed. A bank levy is not a one-time event. A creditor can request a bank levy as many times as needed until the debt has been satisfied. In addition, most banks charge a fee to their customers for processing a levy on their account. A bank levy can occur due to either unpaid taxes or unpaid debt. Some types of accounts, such as Social Security Income, Supplemental Security Income, Veteran’s Benefits, and child support payments, generally cannot be levied. However, a debtor who owes money to the federal government would not have as much protection as he would if he owed a private

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

COMMISSION CREDITS

How Commission Credits Works Let's say that an agent has signed a listing agreement with a seller. The seller agrees to pay the agent a 5 percent commission. The agent then agrees to split that commission with a buyer's agent. The listing broker would get 2.5 percent, and the buyer's broker would get 2.5 percent. If a buyer's agent has decided to provide a commission credit to her client, the buyer, that credit is limited to her commission percentage. She can credit part or all of it, but she can't exceed that 2.5 percent, at least if she doesn't want to come out of pocket to make up the difference. Agents can't pay a commission to an unlicensed person. But, they can rebate a portion of their commission to a buyer, sometimes as a closing cost credit, or to pay part of the down payment if the buyer's lender will allow it. Sometimes these credits take the form of gift certificates or even "free" services provided during the purchase process, such as home inspections that the agent pays. An agent might foot the bill for moving costs. Some lenders will limit what these credits can end up paying. You might not be able to accept the money at closing or as part of the closing transaction. Commission Credits in Dual Agency Each agent normally represents a single party to the transaction. But, when a listing agent works in dual agency, representing both the seller and the buyer, that agent typically receives all the commission. Some listing agents reason that if the buyer had hired her agent, he'd "lose" half the commission anyway. So, the commission credit option might seem a little less unattractive. But many agents won't work with both sellers and buyers. It's against the law to do so in some states. Sellers Can Influence the Situation Some agents will negotiate real estate commissions with the seller in advance. A seller might agree to a variable commission rate. So, if the agent ends up by bringing in the buyer, the commission would be reduced from 5 percent to perhaps 4 percent. The agent earns 5 percent for representing the seller and the buyer in dual agency, and the seller benefits by paying a lower commission. An agent might be less willing in this case to part with some of his reduced commission by way of providing credit. Companies That Offer "Rebates" In the language of real estate, a rebate is the same thing as a commission credit, and some agencies specialize in offering them. A handful of real estate companies advertise that they'll always rebate part of their commissions to the buyer. The hope is that these rebates will attract a volume of buyers to compensate for the loss of income. But many of these discount brokers expect the buyers to do much of the legwork and to interact solely through email and by FAX. They often don't show them properties. They generally don't attend home inspections or explain paperwork when a buyer becomes confused. They typically don't even meet with the buyer until closing—if they even attend the home closing at all. Are Commission Credits Legal? Commission credits or rebates are legal in most states—40 in all—and the U.S. Department of Justice has even championed them. The DOJ has taken the position that providing these credits promotes healthy competition among agents. Nine states don't agree, and they do not permit commission credits or rebates in any shape or form as of 2018: Alabama, Alaska, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. Iowa allows these arrangements only in dual agency situations. It's not legal if two or more brokerages are involved in the transaction. What About Taxes? The Internal Revenue Service (IRS) has also gotten on board to condone commission credits. At least, it has said that these credits don't count as taxable income to the recipient. The IRS has ruled that they're an adjustment to the cost basis a buyer has in her home. Of course, this basis might contribute to capital gains taxes down the road in some circumstances when buyers ultimately sell. But, if you live in the home and meet a few other qualifying rules, you might be eligible for the home sale tax exclusion. The first $250,000 in profit you realize from an eventual sale is tax-free. It increases to $500,000 for some married taxpayers who file joint returns. The Bottom Line These credits can amount to thousands of dollars saved for homebuyers at a cash-sensitive time. Based on a sales price of $325,000, a 2.5 commission split to the buyer's agent would amount to $8,125. The buyer would receive about $4,062 in financial assistance if the agent only offered even half his

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

DISCLOSURES FLIPPERS MUST MAKE

When you sell a property, you’re required to disclose information about its condition that might negatively affect its value. If you willfully conceal such information, you could be convicted of fraud in addition to being sued. Selling the property “as is” will not exempt you from these disclosures. These rules affect anyone selling a home but are more likely to affect flippers. Property flippers are more likely to be dealing with properties in poor condition. Further, there are slight state-by-state differences in the law pertaining to disclosure information. Learn your state’s specific laws about required disclosures from your state real estate and local planning department. Knowing the types of information that should be disclosed may help you as you buy properties and may also save you from facing a lawsuit. 1. Death in the Home Some buyers may have concerns or superstitions about purchasing a home in which someone has died, so it’s important to know if your state requires sellers to disclose a previous death in the home. “Each state will have slightly different requirements for disclosure,” says Jim Olenbush, a Texas real estate broker. “In Texas, for example, deaths from natural causes, suicides, or accidents unrelated to the property do not have to be disclosed." “A seller is required to disclose deaths related to the condition of the property or violent crimes,” he says. For example, if a previous occupant’s child drowned in the swimming pool because it didn’t have the proper safety fence, the seller would need to disclose the death even after remedying the safety issue by installing a proper pool enclosure. There are, however, circumstances where sellers do not have to disclose a death on the property. “There are no states in which there is an obligation to disclose the death of a person who has deceased under natural conditions,” says attorney Matthew Reischer, CEO of LegalAdvice.com. “However, some states impose a duty on a stigmatized home or apartment in which there has been a suicide or murder. Some states even go so far as to impose an affirmative duty on a seller if they have knowledge that their real estate is being haunted by the dead.” Even when disclosure isn’t required – for example, Georgia does not require the disclosure of homicide or suicide – you may want to err on the side of giving the buyer notice of death on the property. “If a seller is concerned about liability, the best advice is to go ahead and disclose everything upfront even if it is not required by law,” Olenbush says. “Buyers will always hear about things from the neighbors, and the surprise could cause them to back out of a purchase contract or wonder what else the seller is not telling them.” 2. Neighborhood Nuisances A nuisance is a noise or odor from a source outside the property that could irritate the property’s occupants. North Carolina requires sellers to disclose noises, odors, smoke or other nuisances from commercial, industrial or military sources that affect the property. Michigan requires sellers to disclose farms, farm operations, landfills, airports, shooting ranges and other nuisances in the vicinity, but Pennsylvania leaves it up to the buyer to determine the presence of agricultural nuisances. 3. Hazards If the home is at an increased risk of damage from a natural disaster or has known or potential environmental contamination, you may be required to disclose this information to the buyer. Texas law requires sellers to disclose the presence of hazardous or toxic waste, asbestos, urea-formaldehyde insulation, radon gas, lead-based paint and previous use of the premises for the manufacture of methamphetamine. New York’s Property Condition Disclosure Act requires sellers to notify buyers about whether the property is located in a flood plain, wetland or agricultural district; whether it has ever been a landfill site; if there have ever been fuel-storage tanks above or below ground on the property; if and where the structure contains asbestos; if there is lead plumbing; whether the home has been tested for radon; and whether any fuel, oil, hazardous or toxic substance has been spilled or leaked on the property. States may also require disclosure of mine subsidence, underground pits, settlement, sliding, upheaval or other earth-stability defects. California’s Natural Hazards Disclosure Act requires sellers to disclose whether the property is in a seismic hazard zone and could, therefore, be subject to liquefaction or landslides after an earthquake. While most disclosure requirements are governed by the states, the federal government mandates one: the disclosure that lead-based paint may be present on any property constructed before 1978. 4. Homeowners' Association Information If the home is governed by a homeowners' association (HOA) you should disclose that fact. You also need to know about the HOA’s financial health and provide this information to the buyer so that he or she can make an informed purchasing decision. “A buyer I know purchased a condominium, [and] the seller mistakenly forgot to give the buyer the last 12 months of meeting notes,” says Ed Kaminsky, president, and CEO of SportStar relocation in Manhattan Beach, Calif. “Seven months later the buyer was assessed $30,000 for property improvements. The seller was subsequently sued by the buyer for not disclosing these important notes.” 5. Repairs What have you repaired and why? Buyers need to know the home’s repair history so they can have their home inspector pay extra attention to problem areas and be aware of probable future issues. Texas law, for example, requires sellers to disclose previous structural or roof repairs; landfill, settling, soil movement or fault lines; and defects or malfunctions in walls, the roof, fences, the foundation, floors, sidewalks, and any other current or previous problems affecting the home’s structural integrity. You may also need to disclose electrical or plumbing repairs and any other problems you would want to know about if you were going to buy the home and live in it. 6. Water Damage When water gets in where it shouldn’t, it can damage personal possessions, undermine the home’s structure and even create a health hazard if it encourages mold growth. Sellers should disclose past or present leaks or water damage. Michigan, for example, requires sellers to disclose evidence of water in a basement or crawl space, roof leaks, major damage from floods, the type of plumbing system (e.g., galvanized, copper, other) and any known plumbing problems. It can be difficult to know about water problems (and many other types of problems) if you’re flipping the home and only own it for a month or two. “There are many risks for flippers or others involved in a house closing where some work is needed on the property that wasn't obvious on walk-through, particularly in winter or during a dry spell,” says Bill Price, an Illinois business lawyer. “With winter, a roof that leaks or has very old shingles may not be able to be inspected by the buyer or their home inspector. Similarly, a dry spell can conceal problems with a leaking basement.” In situations such as these, check to see how much protection your state’s laws offer from disclosing information you would have had no way of knowing. 7. Missing Items Sometimes homebuyers have so much on their minds that they might not notice that a home is missing an essential component until after they move in. Some states’ disclosure laws attempt to prevent this problem. Texas and Michigan, for example, require sellers to disclose whether the property comes with a long list of items, including kitchen appliances, central air conditioning and heating, rain gutters, exhaust fans, and water heaters. 8. Other Possible Disclosures Buyers need to know if the home is in a special historic district because it will affect their ability to make repairs and alterations, and it might also increase the cost of those activities. Texas law requires sellers to disclose active termites or other wood-destroying insects, termite or wood-rot damage in need of repair, previous termite damage, and previous termite treatment. Michigan and North Carolina law also requires sellers to disclose any history of infestation. Consult your state’s laws to see if you must disclose information about any pests. You may also be required to disclose problems with drainage or grading, zoning, pending litigation, changes made without permits, boundary disputes and easement. How to Disclose Some states, such as Michigan and North Carolina, require sellers to use a specific disclosure form. If not, your state department or commission of real estate or state realtor’s association will usually have a recommended form you can use. The form may be more or less comprehensive than what state law requires. If the form isn’t comprehensive enough for your situation, supplement it with a list of the additional items you wish to disclose. The seller should make all disclosures to the buyer in writing, and both the buyer and seller should sign and date the document. Be sure you review what you need to disclose, and how it should be worded, with a real-estate attorney. The Bottom Line Even if a particular disclosure is not required in your area, if you have a piece of information about a house that might make a buyer unhappy, you might want to disclose it anyway. In addition to the moral reasons for being honest with prospective buyers – and the desire to avoid the expense and hassle of a lawsuit – you have a reputation to protect. If you have any concerns about whether you’ve disclosed the property’s condition correctly, contact a real estate attorney in your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EQUITABLE INTEREST IN REAL ESTATE

Equity is a concept of rights distinct from legal (that is, common law) rights; it is (or, at least, it originated as) "the body of principles constituting what is fair and right (natural law)".[2] It was "the system of law or body of principles originating in the English Court of Chancery and superseding the common and statute law (together called 'law' in the narrower sense) when the two conflict".[2] In equity, a judge determines what is fair and just and makes a decision as opposed to deciding what is legal. Perhaps the most common example of an equitable interest is the interest of a beneficiary under a trust. Under a trust, the trustee has a legal interest in the trust property and all of the rights and powers that follow from that legal interest (for example, rights to deal with that trust property and to invest trust property), subject to the interest of the beneficiary and the terms of the trust (deed). The beneficiaries under the trust have an equitable interest in the trust property. The precise nature of the interests and rights of the beneficiary under a trust is contested. Ben McFarlane states that there are three principal theses about the nature of equitable rights. The first one is that, equitable interest is a right against a right, rather than right against a thing or right against a person. Second, whenever a party B has a right against a right of another A, B's right is prima facie binding on anyone who acquires a right that derives from A's right. Third, B will acquire such a persistent right whenever A is under a duty to hold a specific claim-right or power, in a particular way, for B.[3] The rights and obligations of the beneficiary, trustee, third parties contracting with the trust and potentially of other parties (such as the settlor of the trust or, if the trust provides for such, a protector or enforcer of the trust) depend on the terms of the trust deed. Trust law includes both mandatory law (that is, law which cannot be excluded, such as the irreducible core, information rights and the supervisory jurisdiction of the court) and default law (that is, law which can be excluded by express provision in the trust deed). The trust deed, therefore, has a significant role to play in determining the rights and obligations of the parties in that default law (such as fiduciary obligations and rights of recourse against non-entitled third parties) may be excluded or modified by the trust deed. In DKLR Holding Co (No 2) Pty Ltd v Commissioner of Stamp Duties (NSW),[4] the High Court of Australia held that if a person has an equitable interest in property, this implies that some other person has the legal interest in that property. If one person has both the legal and equitable interest in the relevant property, he or she has no ‘equitable interest’ in that property as such. Aickin Jsaid "If one person has both the legal estate and the entire beneficial interest in the land he holds an entire and unqualified legal interest and not two separate interests, one legal and the other equitable".[4]:p 463 [7] [5] As stated by Brennan J held that "[an] equitable interest is not carved out of a legal estate but impressed upon it".[4]:p 474 [8] Latec Investments Ltd v Hotel Terrigal Pty Ltd[6] establishes that, in New South Wales, there are 3 classes of equitable interests: equitable interest, mere equity and personal equity.[6] Mere equity, for example, may arise when one party has been unjustly disadvantaged by the unconscionable behaviour of another. Importantly, however, a ‘mere equity’ will not prevail over an actual bona fide equitable interest – such as an equitable charge. Land law An enforceable contract for sale confers an equitable interest on the purchaser of the land, as per the rule established in Lysaght v Edwards[7] It was similarly held in Walsh v Lonsdale that 'equity looks on as done that which ought to be done'.[8] A contract, which does not meet the requirements of a deed, required by the Law of Property Act 1925 s.52(1), may be specifically enforced to convey the equitable interest to the new purchaser. This rule has had a significant impact because it allows interests that have not been conveyed by a deed to still be binding on future purchasers, through the doctrine of constructive notice. However, the UK Parliament has weakened the impact of this rule, with the Law of Property (Miscellaneous Provisions) Act 1989 s.2,[9] which requires all contracts for the sale of land (which could be specifically enforceable) to be in writing, to contain all the terms of the agreement and be signed by both parties. Any contracts that are not in writing and signed by both parties cannot be specifically enforced and so will not create or transfer an equitable interest in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT DOES IT MEAN TO PURCHASE A PROPERTY “SUBJECT TO”?

When interest rates rise, "buying subject to" suddenly starts to look like a very attractive financing option for home buyers. When interest rates are low, homebuyers tend to avoid subject to transactions. But interest rates aren't the only factor used to determine whether a buyer might make a purchase offer with a subject to financing. What Buying Subject to Means Buying subject to means buying a home subject to the existing mortgage. It means the seller is not paying off the existing mortgage and the buyer is taking over the payments. The unpaid balance of the existing mortgage is then calculated as part of the buyer's purchase price. If a buyer doesn't make their payments, they could lose their home along with any possible equity. However, there is no personal liability beyond the loss of their home. Reasons a Buyer May Purchase a Home Subject to a Mortgage The primary reason for buying subject to is to take over the seller's existing interest rate. If present interest rates are at 7% and a seller has a 5% fixed interest rate, that 2% variance can make a huge difference in the buyer's monthly payment. For example: A $200,000 mortgage at a 5% interest rate is amortized at a payment of $1,073.64 per month. A $200,000 mortgage at a 7% interest rate is amortized at a payment of $1,330.60 per month. The monthly savings to a buyer under these circumstances is $256.96 or $3,083.52 per year. Another reason certain buyers are interested in purchasing a home subject to a loan is they may not qualify for a traditional loan with favorable interest rates. When considering a subject to sale with a prospective buyer, the seller should pull the buyer's credit report to determine the buyer's creditworthiness. Even if the buyer has a low credit score, the seller may still opt to continue with the sale. Three Types of Subject to Options A subject to sale does not necessarily involve owner financing but it could. Whether the seller carries any type of financing depends on whether they wrap the mortgage or the amount of the down payment versus the purchase price. There are three types of subject to options: A straight subject to cash-to-loan: The most common type of subject to is when a buyer pays in cash the difference between the purchase price and the seller's existing loan balance. For example, if the seller's existing loan balance is $150,000 and the sales price is $200,000, the buyer must give the seller $50,000 in cash. A straight subject to with seller carryback: Seller carrybacks, also known as seller or owner financing, are most commonly found in the form of a second mortgage. A seller carryback could also be a land contract or a lease option sale instrument. For example, if the sales price is $200,000, the existing loan balance is $150,000 and the buyer is making a down payment of $20,000, the seller would carry the remaining balance of $30,000 at a separate interest rate and terms negotiated between the parties. The buyer would agree to make one payment to the seller's lender and a separate payment at a different interest rate to the seller. Wrap-around subject to: A wrap-around subject to gives the seller an override of interest because the seller makes money on the existing mortgage balance. For example, an existing mortgage carries an interest rate of 5%. If the sales price is $200,000 and the buyer puts down $20,000, the seller's carryback would be $180,000. At a rate of 6%, the seller makes 1% on the existing mortgage of $150,000 and 6% on the balance of $30,000. The buyer would pay 6% on $180,000. The Difference Between Subject to and a Loan Assumption In a subject to transaction, neither the seller nor the buyer tells the existing lender that the seller has sold the property and the buyer is now making the payments. The buyer did not obtain the bank's permission to take over the loan. Lenders put special verbiage into their mortgages and trust deeds that give the lender the right to accelerate the loan in the event of alienation. Not every bank will call a loan due and payable upon transfer. In certain situations, some banks are simply happy that somebody—anybody—is making the payments. But banks can exercise their right to call a loan due to the acceleration clause in the mortgage or trust deed, which is a risk for the buyer. If the buyer can't pay off the loan upon the bank's demand, the bank could initiate foreclosure. If a buyer does a loan assumption, the buyer formally assumes the loan with the bank's permission. This means the seller's name is removed from the loan, and the buyer qualifies for the loan, just like any other purchase money loan. Generally, banks charge the buyer an assumption fee to process a loan assumption, but the fee is much less than the fees to obtain a conventional loan. FHA loans allow for a loan assumption but most conventional loans do

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Flat Fee Legal Protection for Buyers and Sellers of Real Estate

http://flatfeelegalprotection.com Have a Lawyer on your team to review ALL documents BEFORE you sign! FLAT FEE LEGAL PROTECTION FOR BUYERS AND SELLERS OF REAL ESTATE Seller Protection Review/Discuss Understanding TILA-RESPA Integrated Disclosures Seller Estimated Proceeds Worksheet Agency Disclosure Kansas Agency Disclosure Missouri Exclusive Right to Sell Contract Residential Real Estate Contract Counter-Offer Addendum In Its Present Condition Addendum Lead Based Paint Disclosure Addendum Sellers Disclosure and Condition of Property Addendum Change Form Revision of Listing Agreement Cancellation and Mutual Release Agreement Resolution of Unacceptable Conditions Amendment Commercial Brokerage Disclosure Addendum Commercial Exclusive Right to Represent Seller Commercial Real Estate Contract Title Commitment Closing and Final Settlement Statement Buyer Protection Review/Discuss Understanding TILA-RESPA Integrated Disclosures Buyers Estimated Proceeds Worksheet Agency Disclosure Kansas Agency Disclosure Missouri Exclusive Buyer Agency Contract Residential Real Estate Contract Counter-Offer Addendum In Its Present Condition Addendum Lead Based Paint Disclosure Addendum Sellers Disclosure and Condition of Property Addendum Change Form Revision of Buyer Agency Agreement Cancellation and Mutual Release Agreement Resolution of Unacceptable Conditions Amendment Commercial Brokerage Disclosure Addendum Commercial Exclusive Right to Represent Buyer Commercial Real Estate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FLAT FEE LEGAL PROTECTION FOR BUYERS AND SELLERS OF REAL ESTATE

http://flatfeelegalprotection.com FLAT FEE LEGAL PROTECTION FOR YOUR HOME SALE OR PURCHASE Have an attorney review your documents before signing or if you do not have an agent, our office can draft all the necessary documents for you. For a flat fee our attorney will review and discuss the legal documents and legal implications of what you are signing. SERVICES OFFERED Prepare/Negotiate/Review - Contract Language in Purchase Sale Agreement Prepare/Negotiate/Review - Contract Language in Lead Based Paint Addendum Prepare/Negotiate/Review Contract Language in Disclosure Statement Prepare/Negotiate/Review Inspection Report Prepare/Negotiate/Review Resolution of Unacceptable Conditions Review Closing Documents Review Title Commitment Review/Negotiate with Surveyor Prepare/Negotiate/Review Mutual Cancellation Agreement Prepare/Negotiate/Review Amendments to the Purchase Sale Agreement Attend Closing Communicate with Lender Communicate with Title Company Have a lawyer on your side. Review Services $795.00 Contract Preparation/Negotiation Services $1,195.00 HTTPS://FSBOMIDWEST.COM  Share

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FINANCIAL FRAUD

The following examples of Financial Institution Fraud Investigations are written from public record documents on file in the courts within the judicial district where the cases were prosecuted. California Woman Sentenced for Mortgage Fraud and Identity Theft On September 20, 2016, in Sacramento, California, Rachel Siders, of Roseville, was sentenced to 174 months in prison for her involvement in mortgage fraud schemes that cost financial institutions over $17 million. Siders was found guilty by trial of multiple counts of bank fraud, wire fraud, mail fraud, making a false loan application, and committing aggravated identity theft. In 2008 Siders and co-defendant Theo Adams, applied for a home equity line of credit using his relative’s name on an underwater property owned by Adams. They submitted false tax returns in the relative’s name with significantly inflated income along with mortgage application documents with forged signatures. Siders, a notary public, falsely notarized the loan application documents, which were sent to Washington Mutual Bank. The bank relied upon the false documents to provide a $250,000 line of credit. Siders received $170,000 of the proceeds. After making minimal payments, the defendants defaulted on the loan. In a second scheme, from mid-2006 through early 2008, Siders and Vera Kuzmenko, and other defendants engaged in a mortgage fraud scheme involving over 30 properties in the Sacramento area. They secured more than $30 million in residential mortgage loans on more than 30 homes purchased through straw buyers. The loan applications contained materially false information as to the straw buyers’ income, employment, assets, and intent to occupy the residences. Records showed that Vera Kuzmenko received millions of dollars, and that Rachel Siders received hundreds of thousands of dollars. Six codefendants were previously sentenced recieving prison terms ranging from 2 to 19 years in prison. Real Estate Agent and Mortgage Broker Sentenced for $1.5 Million Bank Fraud Conspiracy On July 12, 2016, in Toledo, Ohio, Timothy R. Bradley, now of Cary, North Carolina, and Martha E. Ednie, of Toledo, were each sentenced to 30 months in prison. Bradley was previously found guilty of one count commit bank fraud and 11 counts of bank fraud. Ednie was previously found guilty of one count commit bank fraud and 20 counts of bank fraud. According to court documents, Bradley worked as a real estate agent for various brokerages in the Toledo area, while Ednie was a mortgage broker who operated Apex Mortgage Company. Bradley and Ednie conspired with others, beginning in 2005, to obtain fraudulent mortgage loans by concealing the true purchase price from banks making the loans. The true purchase price was represented by an “addendum” to the real estate contract, which lowered the purchase price. These addendums were signed near the time of closing and were concealed from the lenders. Unbeknownst to the lenders, they were loaning the home purchasers between 82 percent and 135 percent of each home’s value based on the adjusted addendum purchase price. Bradley and others attracted buyers to the scheme by advertising the properties as good sources of rental income and assuring cash back at closing. New Jersey Man Sentenced for Role In $13 Million Mortgage Fraud Scheme On July 7, 2016, in Camden, New Jersey, John Leadbeater, of Kearny, was sentenced to 60 months in prison and five years of supervised release. A restitution hearing has been set for a later date. Leadbeater previously pleaded guilty to conspiracy to commit wire fraud. According to court documents, Leadbeater and his co-conspirators located condominiums overbuilt by financially distressed developers then recruited “straw buyers” to purchase those properties. The straw buyers had good credit scores, but lacked the financial resources to qualify for the mortgage loans. The conspirators created false documents to induce the lenders to make the loans. Once the mortgage lenders sent the loan proceeds, Leadbeater and his conspirators took a portion of the proceeds and distributed a portion of the proceeds to the other members of the conspiracy for their respective roles. Leadbeater personally participated in fraudulent activity related to nine properties, caused mortgage lenders to fund $4,711,557 worth of mortgages based on bogus loan applications and closing documents he and his conspirators prepared. Ohio Man Sentenced for $2.5 Million Bank Fraud On June 29, 2016, in Cleveland, Ohio, Shaukat Sindhu, of Warren, was sentenced to 45 months in prison. Sindhu previously pleaded guilty to two counts of conspiracy to commit bank fraud, one count of corrupt interference with the administration of the IRS and one count of marriage fraud. According to court documents, Sindhu owned several gas stations and other commercial property, but failed to make mortgage payments on these properties. Sindhu and others defrauded banks by making false and misleading representations about ownership of the properties, used a false identity and created a fictional Middle Eastern investor to create the illusion there was an independent buyer for the properties at a significant discount. Tahir Iqbal of Crown Point, Indiana, acted as a straw buyer for Sindhu in a short sale, enriching Sindhu by reducing or eliminating the principle owned on the properties. Iqbal was sentenced to 12 months and 1 day for his role in the bank fraud conspiracy. Iqbal also served as a straw buyer for Sindhu for a home in Oak Brook, Illinois, which was forfeited as part of the plea agreement. California Man Sentenced for Money Laundering On May 26, 2016, in San Jose, California, Maxito Pean was sentenced to 27 months in prison, three years of supervised release and ordered to pay $233,200 in restitution. Pean, who is from Haiti and had been residing in Florida, pleaded guilty on Feb. 24, 2016, to engaging in monetary transactions using criminally derived property. According to the plea agreement, Pean recruited others to open two bank accounts for the purpose of receiving proceeds of criminal activity. For the first account, Pean arranged for a homeless man from Florida to open a bank account in Lauderhill in the name of "Southeastern Capital Group, Inc." For the second account, Pean arranged for a person to open an account in the name of "Meade Financial Services." Pean intended to use those accounts to receive and transfer the funds in a way he hoped would not be traceable back to him. Pean admitted an unknown person fraudulently caused a bank employee in San Francisco to transfer $233,200 from a victim’s bank account to one of the accounts controlled by Pean. The money was, in fact, the proceeds of wire fraud committed against the victim of an email takeover scam. Leader of Multi-Million Dollar Bank ‘Bustout’ Scheme that used Counterfeit Checks Sentenced On May 19, 2016, in Los Angeles, California, Jae Ho Chung was sentenced to 63 months in prison and ordered to pay nearly $2.1 million in restitution to a variety of banks. Chung pleaded guilty in October 2015 to two counts of bank fraud. According to court documents, the overall scheme involved approximately $15 million in losses, but Chung was directly involved in criminal conduct that netted him approximately $2 million. Beginning in July 2008 and continuing until October 2013, Chung conspired with Michael Yeon Cho and 13 other co-defendants to defraud banks through the bustout scheme that used counterfeit checks to inflate account balances so that withdrawals could promptly be made before the banks learned that the deposited checks were worthless. Chung created and directed others to create counterfeit checks, directed others to arrange the establishment of “shell” corporations make it appear that bank accounts were legitimate; and withdrew funds from bustout accounts and transferred the fraudulent proceeds to himself and others. Cho, who was Chung’s primary co-conspirator, previously pleaded guilty and is scheduled to be sentenced at a later date. Out of the remaining 13 defendants, the charges against 12 of them have been resolved either through pre-trial diversion or through guilty pleas. Several of those defendants have been sentenced to prison terms as long as 33 months. One remaining defendant is scheduled to go on trial. Resident of Puerto Rico Sentenced for Bank Fraud Scheme On April 4, 2016, Rosa E. Castrillón-Sánchez, of Puerto Rico, was sentenced to 159 months in prison, three years of supervised release and ordered to pay $5 million in restitution to victims of her scheme. Castrillón-Sánchez pleaded guilty Dec. 13, 2013, to conspiracy to commit bank fraud and wire fraud and aggravated identity theft. According to court documents, Castrillón-Sánchez falsely represented that she was the beneficiary to a Certificate of Deposit (“CD”) or trust for a large amount of money that was frozen at a local bank in Puerto Rico. Castrillón-Sánchez would request that an individual provide her with a sum of money or take out a personal loan to assist in the releasing of the funds – with full repayment promised as soon as the CD was unfrozen. As part of the scheme, Castrillón-Sánchez and other co-conspirators used false documents to obtain some of the loans from local banks and distributed payments to individuals. From April 2005 to March 2010, Castrillón-Sánchez and her co-conspirators fraudulently induced over 90 individuals to loan her over $5,000,000 in cash. Castrillón-Sánchez’s conspired with her mother, Rosa Sanchez Mercado, Jorge Rivera Izquierdo, and others to use proceeds from the fraudulent scheme. Izquierdo was sentenced for money laundering on April 27, 2015, to 42 months in prison and was ordered to pay restitution of $201,503. Co-defendants Carmen Sosa Barreto, Luis Roriguez Barreto, Limarie Amalbert Birriell, Amarilys Pagan Estrella, and Noemi Delgado were sentenced to probation. Sanchez Mercado is scheduled to be sentenced. Missouri Man Sentenced for Bank Fraud Related to $1.6 Million Home On March 24, 2016, in Springfield, Missouri, Michael R. Ussery, of Bois D’Arc, was sentenced to 24 months in prison and ordered to pay $1.3 million in restitution to the victim bank. On Oct. 30, 2015, Ussery was convicted at trial of 12 counts of bank fraud. According to court documents, in 2007, Ussery was building a $1.6 million home for himself in Bois D’Arc. A bank agreed to provide a $1.6 million construction loan to build the residence; $1.15 million was used to pay off the previous bank which had financed the construction of the residence up to that point, and the remaining $450,000 was supposed to have gone to completing the construction of the residence. When work was done on the house, Ussery was supposed to obtain an invoice and a lien waiver from the contractors and submit these documents to the bank, which would then make a disbursement of the amount owed to Ussery’s personal bank account. From May 29 to June 25, 2007, a dozen false invoices and lien waivers were submitted to the bank and, as a result, the bank deposited $315,417 into Ussery’s personal bank account. Ussery eventually stopped construction on the Bois D’Arc property and the bank had to foreclose on the loan. The bank took a $782,349 loss after the sale of the property with its partially finished house. The bank also paid a total of $103,257 to settle mechanic liens placed on the residence by the contractors that Ussery claimed he had paid in the false lien waivers. Ussery filed for bankruptcy relief in 2011. California Man Sentenced for Two Fraud Schemes On March 21, 2016, in San Diego, California, Karen “Kevin” Galstian, of Chatsworth, was sentenced to 100 months in prison and was ordered to pay $17 million in restitution to Verizon and more than $200,000 in restitution to Bank of America. In January 2014, Galstian pleaded guilty to bank fraud for the Bank of America scheme and in November 2015, Galstian pleaded guilty to wire fraud for the Verizon scheme. According to court documents, Galstian used his company, Toro Ride, Inc., to induce Verizon Wireless to provide the business with more than 30,000 iPhones at a substantial discount. Galstian fraudulently convinced Verizon to provide him with iPhones worth more than $19.4 million. In less than six months, Galstian generated illegal proceeds of more than $13 million by re-selling the iPhones. Toro Ride used some of the illicit proceeds derived from iPhone sales to make required monthly payments to Verizon, which enabled Galstian to continue to order thousands of additional iPhones. In the bank fraud scheme, Galstian orchestrated a conspiracy to defraud Bank of America of approximately $689,000. As part of the scheme, members of the conspiracy opened over 90 accounts at Bank of America and engaged in a series of transactions that allowed them withdraw funds before Bank of America learned that there were not sufficient funds in the target accounts to cover the withdrawals. In yet another scheme, Galstian cashed checks drawn on accounts in which fraudulently obtained tax returns had been deposited. Former Florida CEO Sentenced in Scheme to Defraud Investors On Feb. 22, 2016, in Key West, Florida, Fred Davis Clark Jr., aka Dave Clark, the former Cay Clubs Chief Executive Officer, was sentenced to 480 months in prison for his participation in a $300 million dollar vacation rental fraud scheme. In addition, forfeiture money judgments were entered against Clark that includes $303,800,000 for the bank fraud and $3,300,000 for the SEC obstruction. There is also court-ordered forfeiture of specific overseas assets of approximately $2.6 million. Clark was convicted on Dec. 11, 2015, of three counts of bank fraud and three counts of making a false statement to a financial institution. According to court records, the scheme involved sales at Cay Clubs Resorts and Marinas (Cay Clubs), to approximately 1,400 investors. Clark also was convicted of obstruction of the U.S. Securities and Exchange Commission (SEC), in connection with the SEC’s efforts to investigate his conduct related to Cay Clubs. From 2004 through 2008, Cay Clubs marketed vacation rental units for locations in Florida, Las Vegas and the Caribbean, to investors throughout the United States. Despite its promises, Cay Clubs never developed the properties but operated as a Ponzi scheme, using proceeds from sales to new investors to pay overdue obligations to earlier investors. In order to meet Cay Clubs’ financial obligations and obtain funds for himself, Clark engaged in a serious of fraudulent mortgage transactions totaling more than $20 million worth of bank loans. Clark also used proceeds from the investor sales to purchase a gold mine, a coal reclamation project and a rum distillery for his personal benefit. Clark’s co-conspirators Barry J. Graham, and Ricky Lynn Stokes, both of Ft. Myers, Florida, were both previously sentenced to 60 months in prison and ordered to pay restitution of $163,530,377 to numerous individual and financial institution victims. Pennsylvania Businessman Sentenced for Fraud Scheme   On Feb. 11, 2016, in Pittsburgh, Pennsylvania, Joseph Nocito, Jr. of Sewickley, was sentenced to 16 months in prison, two years of supervised release and ordered to pay restitution of $1,872,935 and a fine of $25,000. Nocito was previously convicted of conspiracy to commit bank fraud and filing a false tax return. According to court documents, on July 27, 2007, Nocito purchased a property in Florida with a $2,377,000 mortgage loan from a bank. In loan documents submitted to the bank, Nocito falsely represented that the purchase price of the property was $3,000,000 and that a $600,000 cash deposit had been made toward the sales price. As part of the conspiracy, $458,350 of the mortgage loan was paid to Nocito as kickbacks, without the knowledge or approval of the bank. Nocito also filed a false tax return for calendar year 2007 reporting his total adjusted gross income as $88,269 when, in fact, his correct total adjusted gross income was $529,619. Pennsylvania Man Sentenced for Fraud and Tax Charges On Feb. 2, 2016, in Philadelphia, Pennsylvania, Chaka Fattah, Jr. was sentenced to 60 months in prison and ordered to pay $1,172,157 in restitution. On Nov. 5, 2015, Fattah, Jr. was found guilty of 22 counts of fraud and tax charges in connection with a scheme to defraud banks, the IRS and the Philadelphia School District. According to court documents, in 2005, Fattah, Jr. and an associate supplied fictitious earnings to banks to obtain numerous business lines of credit which he then used primarily for personal expenses. In 2010, Fattah, Jr. provided false information to two banks, the SBA and an SBA investigator in an attempt to settle the debts for less than what was owed. Additionally, for tax years 2005, 2006 and 2008, Fattah, Jr. filed false federal income tax returns, and in 2010, failed to pay on a timely basis federal income tax of approximately $51,141 on more than $150,000 in reported income. Finally, while Fattah, Jr. was serving as the chief operating officer of Delaware Valley High School, he submitted false expense information and inflated salary figures resulting in approximately $940,000 of fraudulently obtained payments from the school district. Missouri Business Owner, Son Sentenced for $5.5 Million Fraud Scheme On Jan. 22, 2016, in Springfield, Missouri, Bruce Swisshelm, of Battlefield, and his son, Bruce Swisshelm II, of Springfield, were sentenced in separate appearances. Swisshelm was sentenced to 12 months and one day in prison and ordered to pay $5,492,853 in restitution. Swisshelm II was sentenced to four weeks in custody and five years of probation and ordered to pay $100,000 in restitution. On July 22, 2015, Swisshelm pleaded guilty to bank fraud and money laundering; Swisshelm II pleaded guilty to misprision of a felony. According to court documents, Swisshelm was the owner of Horned Frog Deli, Inc., and Swisshelm Properties, Inc. Swisshelm II was the president of Swisshelm Properties. These corporations specialized in the restaurant industry and owned and developed commercial properties. Swisshelm submitted false financial documents to a bank to receive four commercial loans, totaling $5,592,583, from February to June 25, 2011. Swisshelm submitted financial statements to the bank that claimed his businesses earned a net income of more than $780,000 in 2010. Tax documents submitted by Swisshelm to the IRS revealed those businesses had losses that exceeded $1.8 million in 2010. Swisshelm II became aware that financial statements submitted to the bank by his father were false but he failed to notify authorities. Michigan Residents  Sentenced for Mortgage Fraud Scheme On Jan. 11 and 12, 2016, in Detroit, Michigan, five individuals were sentenced to prison for their roles in a multi-year mortgage fraud conspiracy. • Jason Najor, of West Bloomfield Township - 16 months in prison, four years of supervised release and ordered to pay restitution of $705,900. • Jeffrey Najor, of Wixom - 24 months in prison, four years of supervised release and ordered to pay restitution of $1,707,200. • Suhail Hallak, of Oak Park - 15 months in prison, three years of supervised release and ordered to pay restitution of $759,804. • Joey Murad, of Old Shelby Township - 33 months in prison, four years of supervised release and ordered to pay restitution of $188,904. • Al Karana, of Old Sterling Heights - one day in prison, three years of supervised release to include one year of home confinement and ordered to pay restitution of $204,600. According to court documents, between January 2006 and December 2008, the perpetrators of the scheme purchased single-family homes in Detroit for approximately $5,000 to $40,000 each and re-sold the homes to third party individuals, referred to as “straw buyers,” that they recruited. The co-conspirators then caused fraudulent mortgage loan applications in the names of the straw buyers to be submitted to financial institutions. Mary Ann Paschal, Shawn Alexander Reed, Wasseem Shamoun and Peter Allen were previously sentenced for their roles in the mortgage scheme with sentencing ranging from 12 to 21 months and total restitution owed of $1,112,050. Property Manager Sentenced for Role in Multimillion-Dollar Mortgage Fraud On Jan. 7, 2016, in Camden, New Jersey, Paul Watterson, of Mountainside, was sentenced to 15 months in prison and three years of supervised release. Watterson, a property manager, previously pleaded guilty to wire fraud and money laundering conspiracies. According to court documents, Watterson participated in a scheme to defraud financial institutions as part of a multimillion-dollar mortgage fraud that used phony documents and “straw buyers” to make illegal profits on over-developed condominiums in the Wildwood area. Watterson and his conspirators identified homes in Wildwood and Wildwood Crest and recruited straw buyers to purchase those properties at inflated rates. Watterson created fraudulent loan applications and obtained false supporting documents for certain straw purchasers. Watterson’s conspirators took a portion of the mortgage loan proceeds then distributed portions to other members of the conspiracy. Watterson received $273,600 from five separate real estate transactions. Former Credit Union Manager Sentenced for Embezzlement On Jan. 4, 2016, in Grand Rapids, Michigan, Kathryn Sue Simmerman, of Muskegon, was sentenced to 78 months in prison, two years of supervised release and ordered to pay $1.9 million in restitution. According to court documents, for more than 15 years, Simmerman embezzled $1,945,000 from her employer, a federal credit union, by removing cash from its vault and placing it in her purse. She deposited some of the cash into credit union accounts she controlled, and took the remainder of it home to spend on her own use and enjoyment. She hid her activity by manipulating the credit union’s books and records. New York Businessman Sentenced for Making False Statements and Filing False Tax Returns On Dec. 22, 2015, in White Plains, New York, Selim Zherka was sentenced to 37 months in prison, ordered to forfeit $5.23 million, pay restitution of $1,276,386 and pay a $1.5 million fine. On Aug. 27, 2015, Zherka pleaded guilty to charges that he conspired to make false statements to a bank and file materially false tax returns. According to court documents, starting in December 2005, Zherka conspired with others to obtain $63.5 million in loans from a bank for the purchase of apartment house complexes in Tennessee. Zherka lied on bank documents about the purchase price of the real estate acquisition and the amount of the down payments he was making toward the purchases in question. In addition, Zherka repeatedly submitted fraudulent tax returns to the IRS that overstated depreciation expenses and understated his capital gains for the real estate holding companies in which he was a partner, thereby reducing their tax liabilities. Ohio Man Sentenced for Credit Union Fraud On Dec. 22, 2015, in Cleveland, Ohio, Gezim Selgjekaj, of Avon Lake, was sentenced to 300 months in prison and was ordered to pay $16 million in restitution. Previously, Selgjekaj was found guilty of one count of conspiracy, 15 counts of financial institution fraud, five counts of bribery and six counts of money laundering. According to court documents, Selgjekaj fraudulently obtained more than $10.6 million in loan proceeds from the St. Paul Croatian Federal Credit Union between 2003 and 2010. Selgjekaj obtained the loans by providing more than $200,000 in bribes to Anthony Raguz, the chief operating officer of the credit union. Selgjekaj is the latest of more than two dozen people convicted of crimes related to the collapse of St. Paul Croatian Federal Credit Union. The credit union was closed and then liquidated in 2010 after sustaining approximately $170 million in total losses, with approximately $72.5 million of those losses tied to individual criminal fraud schemes, making it the largest credit union failure in American history. Raguz is currently serving a 14 year prison sentence. California Woman Who Ran High-End Denim Jean Company Sentenced in $15 Million Bank Fraud Scheme On Dec. 7, 2015, in Los Angeles, California, Carolyn Marie Jones, of Corona, was sentenced to 79 months in prison and ordered to pay $15,124,100 in restitution to individual investors and Union Bank of California. Jones pleaded guilty in February to bank fraud and concealing assets in a bankruptcy proceeding. According to court documents, Jones was the chief executive officer of a high-end jean company, DDI (sometimes known as Diamond Decisions, Inc.), which sold jeans under the labels Privacywear and PRVCY Premium. Jones filed a fraudulent loan application which resulted in Union Bank issuing an $8.5 million line of credit (later increased to $15 million) to Jones in late 2008. However, Jones had filed a fraudulent loan application that used another person’s social security number, bogus tax returns that had never been filed with the IRS and false financial statements for DDI that grossly overstated the company’s profits. Jones defaulted on the loan and filed Chapter 11 bankruptcy. Jones lied to the bankruptcy trustee, concealed DDI assets, specifically about $120,000 that she had received from DDI customers, and spent some of the money on herself. Leader of Bank Fraud Conspiracy Sentenced On Nov. 23, 2015, in San Diego, California, Vahag Stepanyan, of Las Vegas, Nevada, was sentenced to 33 months in prison for participating in schemes to defraud a federally insured financial institution and the IRS. According to court documents, Stepanyan was a leader of a sophisticated bank fraud scheme. Stepanyan guided other co-conspirators in the creation of fictitious business entities in Nevada that were used to set up bank accounts. Stepanyan and other co-conspirators then engaged in a series of bank transactions that allowed co-conspirators to withdraw recently deposited funds from the bank accounts before the bank learned that the accounts did not have sufficient funds to cover the withdrawals. The scheme resulted in a loss of $689,000 to the bank. In a separate scheme to defraud the IRS, Stepanyan cashed checks drawn on accounts that had received fraudulent tax refunds. This scheme resulted in millions of dollars in fraudulent claims for tax refunds. Florida Man Sentenced for Fraudulent Short Sale of a 10-Acre Residential Property On Nov. 18, 2015, in Miami, Florida, Jaime Olaya Marroquin, a/k/a Jaime Olaya, was sentenced to 30 months in prison and three years of supervised release for arranging a fraudulent short sale of a 10-acre residential property. A restitution hearing is scheduled. Olaya previously pleaded guilty to bank fraud and he agreed to forfeit the property involved. According to court documents, in 2005, Olaya purchased a 10-acre residential property. In 2008, he quitclaimed half of the property to AJZ Investments (AJZ), a company he controlled. To avoid having to continue making payments on the $1.6 million mortgage debt, Olaya submitted a request to the bank for a short sale on the property, while intentionally excluding the portion of the property he quitclaimed to AJZ. Based on a series of misrepresentations by Olaya, the bank approved the short sale of the property for $430,000, canceled Olaya’s remaining $1.2 million debt and released the mortgages encumbering the entire 10 acres. As a result of the fraud, Olaya was successful in preventing the bank from obtaining the benefit of the approximately $421,000 value of the property that was quitclaimed to AJZ. Missouri Businessman Sentenced for Fraud Schemes On Oct. 14, 2015, in Springfield, Missouri, Richard Thomas Gregg, of Springfield, was sentenced to 78 months in prison and ordered to pay $3,098,896 in restitution to the victims of his fraud schemes. On April 3, 2015, Gregg pleaded guilty to bank fraud and bankruptcy fraud. Gregg was the principal shareholder and a director of Southwest Community Bank in Springfield, which failed in May 2010. According to court documents, Gregg substantially jeopardized the soundness of that financial institution and directly contributed to the failure of the bank. Southwest Community Bank lost $679,399 on Gregg’s personal line of credit and $871,125 on a commercial real estate fraud scheme perpetrated by Gregg, for a total loss of $1,550,524. Gregg also defrauded Great Southern Bank by selling the collateral securing a $2 million loan, and keeping the proceeds. As a result of Gregg’s fraud, Great Southern Bank consolidated several of his outstanding loans in order to cover the missing collateral. In the end, Great Southern Bank “charged off” $2,316,264 on this consolidated loan. However, the actual value of the FBSI shares, $1,350,400, is the loss directly attributable to the fraud. While Gregg was already under indictment for bankruptcy fraud relating to the bankruptcy petition of his corporation, 1717 Market Place, LLC, he filed a personal bankruptcy petition that contained numerous false declarations and concealed fraudulent transfers of property. Additionally, some of Gregg’s criminal conduct occurred while he was on bond and while he was incarcerated. Delaware Developer Sentenced in Bank Fraud Conspiracy Case On Oct. 6, 2015, in Wilmington, Delaware, Salvatore Leone was sentenced to 12 months and one day in prison, three years of supervised release and ordered to pay $784,568 in restitution to the Wilmington Trust Company. On Oct. 7, 2013, Leone pleaded guilty to conspiracy to commit bank fraud. According to court documents, Leone was a project manager for and partner with a prominent developer in several limited liability companies formed for the purpose of developing real estate in or around Dover, Delaware. Between Sept. 24, 2007 and Feb. 27, 2009, Leone and others submitted, or caused to be submitted, false draw requests to Wilmington Trust Company totaling approximately $483,568,000. In addition, Leone misappropriated an escalated lease payment totaling

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MONTH TO MONTH TENANCY

Benefits of Month to Month Rentals for Tenants Sometimes tenants need a place to stay but do not want a long term commitment. For these tenants, finding a landlord who is willing to sign a month to month rental agreement is ideal. The benefits for a tenant include: Flexibility to Move- The most common reason a tenant wants to sign a month to month agreement is so they have the ability to move quickly. They do not want to be bound by a lease agreement where they cannot move for a year. Short Notice to Move- Depending on state law and the terms of the rental agreement the tenant has signed with the landlord, a tenant must give the landlord written notice before moving out of the rental. The amount of notice required usually ranges from 30 days to 60 days prior to the desired move out day. No Specific End Date- Unlike lease agreements, month to month agreements do not have a specific end date. Therefore, month to month tenants will not face a penalty for breaking a lease early. To end the month to month agreement, the tenant just has to give the landlord the appropriate amount of written notice. Can Look for a Home- Month to month rentals give tenants a short term place to live when they are looking to buy a home. Once they have a closing date on the home, they can give the landlord the required notice to move out of the rental. Short Term Rent While Renovating a Home- Sometimes current homeowners have to move out of their home temporarily if they are doing extensive renovations on their home, such as an addition. These tenants are looking for a place to stay for a few weeks or a few months. Negatives of Month to Month Rental for Tenants While there are many benefits to a month to month rental agreement, there are also some negatives to this type of living arrangement. Here are the cons of month to month agreements for tenants. Higher Rent- Landlords often charge higher rent for month to month agreements than they would for a yearly lease. Month to month agreements are riskier for the landlord because the tenant often only has to give 30 days’ notice to move. The higher rent helps the landlord offset the cost of an anticipated vacancy. Landlord Can End Rental Agreement- A tenant is not the only one who can end a rental agreement. A landlord can also end the rental agreement as long as he or she gives the tenant the required amount of written notice. There is less stability in a month to month agreement and the tenant needs to understand that they might need to look for a new place to live on a moment’s notice. Benefits of Month to Month Rentals for Landlords While most landlords prefer to sign yearly lease agreements with their tenants, there are several benefits of month to month agreements that landlords should be aware of. These include: Can Get a Tenant Out Quickly- In traditional lease agreements, unless a tenant breaches the lease agreement and you file for an eviction, you will have to wait until the lease expires to get a tenant out of your rental property. In month to month agreements, you can give a tenant as little as 30 days’ notice, depending on state law, to get the tenant to move out of the rental. Charge Higher Rents- There are a limited number of landlords who are willing to sign a month to month agreement with a tenant. Due to the limited supply, you will likely be able to charge your tenant more to live in your rental. This higher rent will also help to offset vacancy costs if you are unable to quickly find a new tenant when the current tenant moves out of the rental. Can Increase Rent- Another benefit of month to month agreements is the ability to increase rent often. State laws may vary, but landlords typically only need to give the tenant 30 days’ written notice of a desired rent increase. If the tenant agrees to the rent increase, the landlord will be collecting a higher rent, if the tenant declines the rent increase and gives proper notice to move, the landlord will collect no additional rent until he or she is able to fill the vacancy. Negatives of Month to Month Rentals for Landlords Month to month agreements can be a lot of work for a landlord. Here are the negatives to consider: Learning Curve With New Tenant- When you sign a long lease with a tenant, you are dealing with a known quantity. You and the tenant have gotten used to each other and each understands the roles and responsibilities. When you place a new tenant in the property, even with proper screening procedures, there is a learning curve as each party gets used to the situation. You may deal with maintenance complaints, noise complaints, damage or nonpayment. Prepare for Vacancy- Since a tenant can move out with as little as a month’s notice, you must always be prepared for a vacancy at your rental. If you rely on this income, it can be very stressful finding a quality tenant quickly. Most prospective tenants will have to give their landlord at least 30 days’ notice to move out of their current rental, so you will have to post ads and be able to show the apartment as soon as you find out that you will have a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

LIFE ESTATE DEED

How Life Estate Deeds Work Life estate deeds work by dividing the property into two types of interests. One interest is measured based on the owner’s lifetime and is called a life estate. The interest that passes at the owner’s death is called a remainder or remainder interest. The life estate and remainder interest are then transferred to different owners. There are three categories of owners: Current Owner (Grantor) – The person creating the deed is called the grantor. New Owner (Life Tenant) – The person who owns the life estate is called the life tenant. Future Owner (Remainder Beneficiary) – The person who will acquire the property when the life tenant dies is called the remainder beneficiary or remainderman. As with other deeds, these terms refer to different types of owners, not to specific individuals. The same party may serve in multiple roles. The current owner (grantor) is usually also the life tenant. Similarly, multiple individuals may serve in the same role. For example, there may be two grantors, three joint-life tenants, and one remainder beneficiary. Example: Peter creates a life estate deed transferring his property to himself, as life tenant, with the remainder to Paul and Mary. The effect of this deed is to retain a life estate for Peter as a life tenant. At Peter’s death, the remainder interest will automatically transfer to Paul and Mary. Note: As discussed below, there are two types of life estate deeds: Traditional life estate deeds and ladybird deeds, also called enhanced life estate deeds. This article focuses primarily on traditional life estate deeds. See our discussion of ladybird deeds for more information about enhanced life estate (ladybird) deeds. How to Create a Life Estate Deed The creation of a life estate deed can be tricky. It is important to include the right language to create the life tenant relationship. If multiple parties will serve in the same role—for example, if there are multiple life tenants or multiple remainder beneficiaries—it is important to also include language that defines the relationships within that role, including the form of co-ownership for multiple remainder beneficiaries. Comparison to Other Deed Forms A life estate deed is not the only way to transfer property at death. Property will automatically transfer to the surviving owner at death if it is titled with the right of survivorship (as tenancy by the entirety, joint tenants with rights of survivorship, or community property with rights of survivorship). With these forms of co-ownership, the owners have simultaneous possessory rights. Each owner can occupy or use the property at the same time. A life estate deed is also a form of co-ownership. Both the life tenant and the remainder beneficiary have real interests in the property. But unlike other forms of co-ownership, they do not have property rights at the same time as each other. Instead, their interests are stacked in time. Only the life tenant has a right to current possession of the property. The remainder beneficiary’s interest does not begin until the life tenant’s death. Comparison of Life Estate Deeds to Lady Bird Deeds and TOD Deeds Life estate deeds avoid probate at death, but at the cost of sacrificing control during life. The transfer of an interest to the remainder beneficiaries gives the remainder beneficiaries present rights to the property. Even though the remainder beneficiaries do not have possessory rights to use the property while the life tenant is still alive, the life tenant cannot convey or mortgage the property without the consent of the remainder beneficiaries. The life tenant also owes duties to preserve the property for the benefit of the remainder beneficiaries and must take their interests into account in making decisions. Many people would prefer to avoid probate at death without sacrificing control during life. In the past few decades, an increasing number of states permit the use of other deed forms that avoid probate without loss of control. The two predominate deed forms are: TOD Deed – A TOD deed (also called a beneficiary deed or transfer-on-death deed) allows the owner to name a beneficiary on the deed, similar to naming a beneficiary on a life insurance policy or bank account. During the owner’s life, the owner can freely revoke or change the beneficiary designation without involving or even notifying the beneficiary. Unless the designation is revoked, the property passes to the surviving beneficiary at the owner’s death. Enhanced Life Estate (Lady Bird) Deed – Recognized in only a handful of states, the ladybird deed “enhances” the traditional life estate deed by giving the life tenant the power to revoke the deed or transfer the property to other owners without involving the remainder beneficiaries. Like a traditional life estate deed, both ladybird deeds and TOD deeds avoid probate on the death of the life tenant. But unlike a traditional life estate deed, the original owner reserves the right to freely deal with the property without involving the beneficiary. The owner may change the beneficiary or undo the deed, all without the beneficiary’s consent or involvement. This flexibility often makes ladybird deeds and TOD deeds popular alternatives to life estate deeds for avoiding

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

LEGAL PROTECTION PLAN FOR YOUR HOME SALE OR PURCHASE

FLAT FEE LEGAL PROTECTION PLAN FOR YOUR HOME SALE OR PURCHASE Have an attorney review your documents before signing or if you do not have an agent, our office can draft all the necessary documents for you. For a flat fee our attorney will review and discuss the legal documents and legal implications of what you are signing. SERVICES OFFERED Prepare/Negotiate/Review - Contract Language in Purchase Sale Agreement Prepare/Negotiate/Review - Contract Language in Lead Based Paint Addendum Prepare/Negotiate/Review Contract Language in Disclosure Statement Prepare/Negotiate/Review Inspection Report Prepare/Negotiate/Review Resolution of Unacceptable Conditions Review Closing Documents Review Title Commitment Review/Negotiate with Surveyor Prepare/Negotiate/Review Mutual Cancellation Agreement Prepare/Negotiate/Review Amendments to the Purchase Sale Agreement Attend Closing Communicate with Lender Communicate with Title Company Have a lawyer on your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EASEMENTS

A. WHAT IS AN EASEMENT? An easement is the legal right of a non-owner to use a specific part of another person’s land for a specific purpose. B. WHAT ARE THE PURPOSES AND BENEFITS OF EASEMENTS? Easements are used to provide non-owners with rights of ingress, egress, utilities, and drainage over a specific portion of another’s land. Ingress and egress are terms for the easement right to travel to and from a property over the lands of another – they provide pedestrian and/or vehicular access. Utilities include electric power, telephone, cable television, internet, natural gas, water, wastewater, reclaimed water, and sewer services. Purchasing easement rights can be cheaper than purchasing title or ownership to the land itself. With all of Florida being relatively low land, and having a substantial rainy season, drainage easements are also important for the control of water. In addition to the benefit of these services, holders of easements do not have to pay real estate taxes on easements. In subdivisions, easements in the subdivision’s declaration of protective covenants are what provide homeowners with the rights to use the subdivision’s common areas – parks, clubhouses, pools, playgrounds, tennis courts, walking paths, horse trails, private roads, etc. C. WHY ARE EASEMENTS NEEDED? Often, easements are created for all of the preceding purposes – ingress, egress, utilities, and drainage – but often their most important purpose is for ingress and egress. The need for ingress and egress comes when a parcel of land does not adjoin a public, government-owned roadway, i.e., there is another property owned by another party between the subject parcel and the road. Therefore, buyers of homes and other land should always condition their purchase upon the property having ingress and egress to a public road, whether by virtue of the property adjoining a public road or by virtue of an easement connecting the property to a public road. (All of the contracts created by the Florida Realtors® – the association of Florida real estate agents – and The Florida Bar – the association of Florida lawyers – have this requirement preprinted in them.) How can a buyer be assured of having such access? A buyer should always have the property being purchased surveyed prior to closing on that purchase. To have access without an easement, at least one boundary of the property has to coincide exactly, without gap or deviation, with the edge of a roadway, known as the right-of-way line. In other words, one boundary of the parcel and the right-of-way line have to lie on top of one another, at least for a part of the distances of the boundary and right-of-way lines. If a boundary line of the property being purchased and a right-of-way line do not coincide, the buyer needs to be certain that the property being purchased has an easement giving the buyer the legal right to cross over whatever property lies between the property being purchased and the public road. Otherwise, the owner of the intervening property could erect a fence to prevent the buyer from accessing the buyer’s property. Of course, if the buyer, as normal, plans to live on the property being purchased, that ingress and egress easement should also include the right to have utility lines and pipes, and perhaps drainage swales (ditches) cross over the land upon which the easement lies. Without a documented easement, land that does not have access to a public road loses a tremendous portion of its value, since being inaccessible, it is not usable. Even if a property has access to a public road, it still may be very important to have another type of access. For example, properties across the road from a private beach, which beach does not have a nearby public access way, will have much less value than properties which have an access easement across the privately-owned, beachfront property on the other side of the road. Easements can also be used to remedy encroachments, i.e., when a structure or other improvement on one property intrudes over a boundary line onto another person’s property. The owner of the property onto which a neighbor’s building, a fence, the eaves of a building, etc., encroaches may not wish to sell to his or her neighbor the portion of his or her property encroached upon, but may be willing to sell them an easement to allow them to use that portion of the property for the encroaching structure. In fact, sometimes because of zoning or building code requirements, the owner of the encroached-upon property cannot sell any portion of his or her property because it would make his or her property undersized for building purposes, so an easement is the only solution to the encroachment, other than tearing down the encroaching structure. (In this situation, a setback variance would also typically have to be obtained to rectify the encroachment.) D. WHAT ARE THE TWO MAJOR TYPES OF EASEMENTS? The two major types of easements are appurtenant easements and easements in gross. Both types of easements can be used for all of the aforementioned uses – ingress, egress, utilities and drainage. 1. Appurtenant Easements. These easements exist for the benefit of adjoining land – a perfect example of which is an ingress, egress, utilities, and drainage easement that crosses over a parcel of land that separates the property being benefitted by the easement from a public road. Appurtenant easements, unless expressly stated otherwise, are automatically conveyed with the land they benefit when the land is sold or otherwise transferred. They are said to “run with the land.” Thus, appurtenant easements do not have to be mentioned in the deed that conveys the lands they benefit, although it is a better practice to do so. The property which is benefitted by the easement, and for which the easement was created, is called the “dominant estate.” The parcel over which an easement runs is known as the “servient estate.” The sale of the servient estate does not terminate the appurtenant easement, despite the deed conveying the servient estate not mentioning the easement. 2. Easements in Gross. These easements are intended to benefit a particular person, which could be an individual or a company. A perfect example of an easement in gross is an easement given to a utility company by a county or state to run electric, telephone, or internet transmission lines. Such an easement is not intended to benefit a piece of property – the utility company may not own any nearby lands. Instead, the easement is intended to benefit the utility company. Easements in gross can be given to a particular individual whom a landowner likes or wishes to help (but the landowner does not want to benefit an unfamiliar heir of, or unknown buyer from, the particular individual). An easement in gross is used rather than an appurtenant easement because, when the individual being benefitted by the easement dies, moves away, or otherwise does not need the easement, the landowner wants the easement to terminate. Therefore, easements in gross do not run with the land, even if the person being benefitted by the easement in gross owned adjoining land to that of the landowner who gave the easement. As such, easements in gross have servient estates, i.e., the parcel over which the easement runs, but not dominant estates, since they are not for the benefit of particular properties. Similar to appurtenant easements, the sale of the servient estate does not terminate the easement in gross, despite the deed conveying the servient estate not mentioning the easement. E. HOW ARE EASEMENTS NORMALLY CREATED? Most commonly, easements are created in documents. They can be created in deeds, easement agreements, subdivision declarations, and condominium declarations, all of which are recorded in the land records (the “Public Records”), just like deeds and mortgages. The better practice is to create an easement using an agreement or declaration, rather than a deed, because easements created in deeds typically do not adequately address all of the issues pertaining to easements. Whatever document is used, it must be executed before two witnesses and a notary public. Another common mistake made when creating easements in deeds is the improper use of the term “subject to.” The same owner may own two parcels of land – one in front adjoining a public road, and another parcel behind the parcel that adjoins the road, the latter parcel therefore not adjoining the road. If the owner sells the front parcel adjoining the road, the owner should “reserve” back, in the deed to the buyer, an ingress, egress, drainage, and utilities easement for the benefit of the owner’s remaining parcel that does not adjoin the public road. Often, however, the drafter of the deed follows the “subject to” language in the survey (which is correct as to the survey) and conveys the front parcel adjoining the road “subject to” an easement for the back parcel. Florida courts have held that the term “subject to” does not create an easement. The easement needs to be created by “reserving back” the easement for the back parcel in the deed for the front parcel. This problem does not occur if the landowner by chance sells the back parcel first with a deed that describes the parcel and then states the parcel is “together with” the easement over the front parcel. If that deed for the back parcel is recorded first, the easement is created, and when the front parcel adjoining the road is sold, its legal description “subject to” the back parcel’s easement is correct. As mentioned above, when properties adjoin each other, easements are often created when the adjoining properties are sold to separate buyers as a part of the sales transactions, whether the adjoining properties be two properties or a large tract of land that is being subdivided into lots or condominimized and sold to different buyers. In all other cases, however, where an easement is sought from a landowner, the easement must typically be purchased from the owner of the parcel that is to be the servient estate, i.e., the parcel over which the easement will run. F. WHAT ARE THE DIFFERENT CHARACTERISTICS OF EASEMENTS? 1. Specific Purposes and Specific Locations. As discussed above, an easement is given for a specific purpose – rights of ingress, egress, utilities, drainage, etc. In addition, nearly all easement agreements, deeds, and declarations require those rights to be exercised only in a specific location on the servient estate – for example, “the north 50 feet” or “the south 25 feet” of the servient estate. The easement rights cannot be exercised over the entire servient estate – just in the area described within the easement. 2. Easement Holder Rights vs. the Rights of the Servient Estate Owner. Thus far, the rights of the easement holders to use, for various purposes, the easement over the servient estate, have been discussed. What about the rights of the owner of the servient estate over which the easement runs? The owner has a right to use the easement area just like any other part of the owner’s property as long as the owner does not materially interfere with the easement holder’s use of the easement. For example, as long as an ingress and egress easement does not state that the easement holder has unobstructed access or an “open way,” the owner of the servient estate may put in fences and gates over the easement area. However, the owner would likely have to install automatic openers, operable by the easement holder, so as not to materially burden, hinder, or delay the passage of the easement holder, since locked gates, even if the easement holder has keys, are often deemed by courts to overly burden and delay the easement holder’s passage. On the other hand, the easement holder cannot “increase the burden” or increase or expand the use of the easement on the servient estate beyond what was contemplated at the time the easement was created. For example, if an owner of lands used for agricultural purposes was given an ingress and egress easement by an adjoining landowner to a public road, but then the owner of that dominant estate (the benefitted agricultural lands) decided to subdivide the lands into a large subdivision, that subdividing would greatly increase the usage or burden of the ingress and egress easement upon the servient estate over which it ran, and the servient estate owner could obtain an injunction to prevent that increased usage. In addition, an easement holder cannot extend the right to other adjoining landowners to “piggy-back” on and use the easement holder’s easement. Those adjoining landowners would have to obtain, at their own cost, their own easements from the owner of the servient estate over which the easement runs. 3. Maintenance and Repair. The right to construct, maintain, and repair the easement in conjunction with the usage rights given is implied and does not have to be expressly stated in the easement agreement. Thus, an easement holder may construct and improve a driveway in the area of an ingress and egress easement and can likewise install power lines and water and sewer pipes in the area of a utility easement, unless the easement has specific restrictions or limitations in these regards. Moreover, unless the easement states otherwise, the easement holder is responsible for paying the costs of all construction, maintenance, and repair of the easement area’s improvements, even though the owner of the servient estate uses the driveway or connects into the utility lines (as long as the owner pays the utility company for the utility services used by the owner). The owner of the servient estate over which the easement runs has no duty or obligation to maintain or repair the easement’s improvements. 4. Other Characteristics. Most appurtenant easements are perpetual and continue forever. Easements in gross, however, unless they are utility easements given to companies that provide such services, typically only last as long as the individual benefited by them is alive or otherwise uses the easement. However, all easements can be limited to a certain period of time, according to their terms. Most all easements are non-exclusive, i.e., the owner of the servient estate over which they run reserves the right to give other persons easements for the same or different purposes over the same area at the same time. In other words, you can think of non-exclusive easements as “stackable” on top of each other, with different easement holders being able to use the same area at the same time for different or similar purposes. 5. Affirmative vs. Negative Easements. Thus far, all of the easements which we have discussed are affirmative easements. They give the easement holder an affirmative right – the right to travel over the easement or the right to have utilities or swales on the easement. In areas of the country with high density high rises or expensive beachfront properties, there are easements which give the easement holder view, solar, light, and air rights over and across the properties of others. In these areas, an aesthetic view overlooking a city skyline or a beach is of great intrinsic and extrinsic value, so a seller of an adjoining property in these areas may wish to protect his or her view from being obstructed by the new building that will be constructed by the buyer of the property being sold. Similarly, in the downtown areas of large metropolitan cities, skyscrapers can significantly obstruct sunlight or the free flow of air, and in this era in which solar power is increasingly desired and used, solar, sunlight, and air easements are being sought and given. View, solar, sunlight, and air easements are often referred to as “negative easements,” since they prevent the owners of the servient estates over which the easements run from constructing buildings or other structures that would obscure views, sunlight, or the movement of air. Given the location of the areas in which these easements are found, they can be extremely expensive to purchase. G. BUT WHAT IF YOU NEED, BUT DO NOT HAVE, A WRITTEN EASEMENT? If one needs an easement but does not have a documented, written easement, and one cannot afford one or the owner of the servient estate does not want to give one, there are three types of easements that may be possibly obtained. These easements are known as common law ways of necessity, statutory ways of necessity, and prescriptive easements. A person seeking any of these easements must bring a legal action in court and will have the burden of proving the requirements for establishing such an easement have been met. 1. Common Law Ways of Necessity. A common law way of necessity is an easement which arises when an owner sells a portion of his or her land and either (a) the portion sold has no practical access to a public road except over the remaining lands of the seller, or (b) the remaining lands retained by the seller have no practical access to a public road except over the land sold. It is said that the parcel which does not have access is “landlocked.” Even if there is physical access, a parcel is considered landlocked if the access is not reasonable and practicable. For example, if the access is not available during a large part of the year due to flooding, the parcel is considered to be landlocked. Either the first or any subsequent owner of a landlocked parcel can apply to a court to have the common law way of necessity recognized. Not only is this doctrine a part of “the common law” (the law that the United States adopted or inherited from Great Britain when it declared its independence), but now this doctrine is codified as Section 704.01(1) of the Florida Statutes. The common law way of necessity easement is given to the owner of the landlocked parcel always over the other parcel which has access to a public road and which previously had a common owner with the landlocked parcel. The way of necessity easement is recognized for the benefit of the landlocked parcel only if (a) the landlocked parcel’s owner owns no other reasonable and practicable way of ingress and egress, and (b) it is reasonably necessary for the beneficial use or enjoyment of the landlocked parcel. The recipient of the common law way of necessity does not have to pay for the easement. 2. Statutory Ways of Necessity. A statutory way of necessity easement exists pursuant to Florida Statutes Section 704.01(2) if a parcel is landlocked and a prior common owner of that parcel and an adjoining parcel with access to a public road cannot be found. However, a statutory way of necessity easement is recognized by a court only if the landlocked parcel is used, or is desired to be used, for one of the following purposes: (a) as a dwelling, (b) for farming, ranching, or other agricultural purposes, or (c) for timber raising or cutting. A court can give a statutory way of necessity easement over any adjoining property, as long as it is the nearest practicable route to a public road. As with a common law way of necessity easement, even if there is physical access, a parcel is considered landlocked if the access is not reasonable and practicable. Unlike a common law way of necessity easement, the owner of the servient estate over which the statutory way of necessity easement runs must be compensated for the easement encumbering his or her property. Also, unlike a common law way of necessity, statutory ways of necessity can also be for utility purposes (again, however, this right must be purchased). 3. Prescriptive Easements. Prescriptive easements are recognized by a court when a person and his or her predecessors have (a) actually, continuously used without interruption, (b) a specific area of land owned by another, (c) for 20 years, with (d) the actual knowledge of that owner, or in such an open, notorious, and visible way that the owner must have or should have known of the use, plus (e) that use has been adverse to the owner, i.e., without the owner’s permission, or at least inconsistent with the owner’s rights, and (f) the owner has taken no legal action to prevent the use. The owner of the servient estate over which the prescriptive easement is recognized is not compensated for the easement, just like an owner whose land is adversely possessed by another. H. HOW ARE EASEMENTS TYPICALLY TERMINATED? 1. By the Easement Holder. The easement holder may unilaterally terminate the easement by executing, delivering, and recording a written release of the easement or a quit claim deed conveying the easement back to the owner of the servient estate. 2. By Mutual Agreement. If both the easement holder and the owner of the servient estate agree, they may execute and record a termination of the easement, but once again, it should contain a written release of the easement or a quit claim deed by the easement holder conveying the easement back to the owner of the servient estate. 3. By the Doctrine of Merger. When one of the owners of either the dominant estate which an easement benefits or the servient estate over which the easement runs becomes the owner of both properties, then there is a “unity of the two titles,” and since an owner does not need an easement over the owner’s own property, according to Florida law, the easement merges out of existence and into the owner’s title. A subsequent sale of one of the two parcels does not revive an easement that has merged out of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A RIGHT OF FIRST REFUSAL?

Imagine being able to make an offer on a house before any other interested home shoppers can even have a look-see. If you have a right of first refusal negotiated into a lease or other housing agreement, you're first in line to get the option to buy. So how does it work? Let's take a closer look at right-of-first-refusal agreements and what they mean for buyers and sellers. What is the right of first refusal? In real estate, the right of first refusal is a provision in a lease or other agreement. It gives a potentially interested party the right to buy a property before the seller negotiates any other offers. It's typically written up before a seller puts a property on the market. This clause allows the seller to market the home at will, but before any offers can be accepted, the seller must notify the original interested buyer who has the right of first refusal. At that point, the person with the right of first refusal can decide whether or not to buy the property. If this person declines, the seller is free to negotiate with other people who are interested. When is it used? There are a few situations in which a right-of-first-refusal clause is relevant. Between a tenant and a landlord: If a tenant is interested in buying his rental property and has a right-of-first-refusal clause written into the lease, the landlord must consider his offer before negotiating with other potential buyers. Between family members: Usually, this clause is used when another family member wants to buy the home. When dealing with a homeowners association or condo board: Sometimes a homeowners association or condo board will put a right-of-first-refusal clause into its governing documents. It allows the board to vet potential buyers before a seller can accept an offer. Many communities use the clause to prevent situations like discount sales that would lower their value. In some cases, it even gives the board the option to reject an offer entirely. How the right of first refusal affects buyers A right-of-first-refusal clause in a leaseholder's contract gives the leaseholder the right to have first dibs on the home should the landlord decide to sell it. The clause is negotiated into the contract from the get-go, so the tenant potentially has a good amount of time to save for a down payment or improve his credit score in the event he decides to buy. There could be a financial incentive as well. "Depending on the specifics of the contract, the interested party may have the opportunity to suggest a sale price without worrying about immediate competition," explains Kathryn Bishop, a Keller Williams real estate agent in Studio City, CA. "There's less of a chance that the price will get driven up by a bidding war." The main disadvantage for the buyer with first refusal rights is that, since the seller could receive an offer at any time, the buyer might need to be ready on short notice to move forward with the sale. How the right of first refusal affects sellers In a buyer's market, when homes are plentiful and prices are low, right-of-first-refusal agreements can directly benefit sellers. Since this agreement is drafted before the home hits the market, a seller might be able to persuade the original interested party to pay more than the home's current value. Ultimately though, sellers tend to be wary of a right of first refusal because it hinders their ability to work with other buyers. They can't negotiate with another party until they've received a formal termination of this contingency. In the time it takes to get a response, the more secure buyers might lose interest. Should you agree to a right-of-first-refusal clause? No two right-of-first-refusal clauses are the same; although a buyer gets the first option to buy a property, the terms of each right-of-first-refusal clause can vary. Some set rules on things such as how long the contingency can last, proof the interested party must provide in order to move forward with purchasing the property, or any exceptions based on a cash offer. To determine if a right-of-first-refusal agreement is right for you, make sure all of the details suit

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

COVENANTS THAT RUN WITH REAL ESTATE

A covenant is a promise in a written contract or a deed of real property. There are different types of covenants, such as a covenant of warranty, which is a promise to guarantee the title to the property is free of any claims against it, a promise agreeing to joint use of an easement for access to real property, or a covenant not to compete for a certain period of time, which is commonly made by a seller of a business . Mutual covenants among members of a homeowners association are promises to respect the rules of conduct or restrictions on use of property, which govern peaceful use, limitations on intrusive construction, etc., and are usually part of the recorded covenants, conditions and restrictions which govern a development or condominium project. Covenants which run with the land, such as permanent easement of access or restrictions on use, are binding on future owners of the property. Covenants can be concurrent (mutual promises to be performed at the same time), dependent (one promise need be performed if the other party performs his/hers), or independent (a promise to be honored without reference to any other

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE AGENT VS. REAL ESTATE LAWYER

The Difference Between a Real Estate Agent and Lawyer If you ask a realtor whether to hire a real estate agent or a lawyer to buy a house, you can pretty expect the realtor will suggest hiring an agent. On the other hand, if you ask a lawyer which type of representation is better — lawyer vs real estate agent — the lawyer will probably say hire a lawyer. Each profession has its own advocates, but the best solution is neither of those options. It is both of those options. Now, we know what you're thinking. You're thinking if you are buying a house, you are not paying for an agent to represent you, the seller is paying that fee. So, why would you want to spend money you don't have to spend to hire a lawyer? Some buyers want the legal protections and advice only a qualified and competent real estate lawyer can provide. Hiring a Lawyer vs. an Agent to Buy a House If you talk to some lawyers, they might say you should hire a lawyer and not a real estate agent because a lawyer can provide both services. The trouble with that idea is few lawyers professionally sell real estate. It's a hat they don't often wear. Lawyers might not know the specific neighborhoods, how to prepare a comparative market analysis, draw a real estate contract, or anything about the listing agent nor the profession of real estate, much less how to spot defects, negotiate for repairs nor any of the other dozens of tasks an experienced buyer's agent performs. On the other hand, real estate agents are not licensed to provide legal advice. This means they cannot answer a legal question, even if they know the answer, without breaking the law. An agent could potentially lose her real estate license if she tried to practice law. A Real Estate Question vs a Legal Question Unfortunately, many real estate clients cannot differentiate between a legal question and a real estate question. If it pertains to real estate, many buyers don't see it as a legal question. They will say so, too, after nodding their heads that they firmly understand an agent can't give legal advice. They will say, "OK, I won't ask you a legal question but how do you think I should hold title?" Which is a legal question. Now, if a buyer wants to know how many square feet are in an acre, which is 43,560, an agent can answer that question. But if a buyer wants to know the ramifications of a shared driveway easement, that is a legal question. About now, you're probably thinking well, what good is a real estate agent then if she can't answer any legal questions about real estate? You would not be alone in that thinking. It's frustrating for a buyer. Another example is can I cancel this purchase contract and get my deposit back? Again, a legal question, not a real estate question. An experienced agent might point to the paragraph in the purchase contract pertaining to the return of earnest money deposit and she might disclose what usually happens with regards to her experiences, but she can't advise a buyer to sue the seller nor guarantee the deposit will be returned. If she knows the buyer's deposit is at risk, she might share a few situations about the way her clients handled these matters, but in the end, she will be forced to suggest a buyer obtain legal advice. The Bottom Line a Lawyer vs. Agent It is not that the buyer's agent does not want to help, it's that she can't give legal advice. Further, if she violated the law and expressed a legal opinion, a buyer could not rely on it anyway. Lawyers typically charge a few hundred dollars an hour. A brief consultation is the better way for a buyer to obtain legal advice than to try to squeeze it out of his agent, just because he doesn't want to pay a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REVERSE MORTGAGES

If you’re 62 or older – and want money to pay off your mortgage, supplement your income, or pay for healthcare expenses – you may consider a reverse mortgage. It allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills. But take your time: a reverse mortgage can be complicated and might not be right for you. A reverse mortgage can use up the equity in your home, which means fewer assets for you and your heirs. If you do decide to look for one, review the different types of reverse mortgages, and comparison shop before you decide on a particular company. How do Reverse Mortgages Work? When you have a regular mortgage, you pay the lender every month to buy your home over time. In a reverse mortgage, you get a loan in which the lender pays you. Reverse mortgages take part of the equity in your home and convert it into payments to you – a kind of advance payment on your home equity. The money you get usually is tax-free. Generally, you don’t have to pay back the money for as long as you live in your home. When you die, sell your home, or move out, you, your spouse, or your estate would repay the loan. Sometimes that means selling the home to get money to repay the loan. There are three kinds of reverse mortgages: single-purpose reverse mortgages – offered by some state and local government agencies, as well as non-profits; proprietary reverse mortgages – private loans; and federally-insured reverse mortgages, also known as Home Equity Conversion Mortgages (HECMs). If you get a reverse mortgage of any kind, you get a loan in which you borrow against the equity in your home. You keep the title to your home. Instead of paying monthly mortgage payments, though, you get an advance on part of your home equity. The money you get usually is not taxable, and it generally won’t affect your Social Security or Medicare benefits. When the last surviving borrower dies, sells the home, or no longer lives in the home as a principal residence, the loan has to be repaid. In certain situations, a non-borrowing spouse may be able to remain in the home. Here are some things to consider about reverse mortgages: There are fees and other costs. Reverse mortgage lenders generally charge an origination fee and other closing costs, as well as servicing fees over the life of the mortgage. Some also charge mortgage insurance premiums (for federally-insured HECMs). You owe more over time. As you get money through your reverse mortgage, interest is added onto the balance you owe each month. That means the amount you owe grows as the interest on your loan adds up over time. Interest rates may change over time. Most reverse mortgages have variable rates, which are tied to a financial index and change with the market. Variable-rate loans tend to give you more options on how you get your money through the reverse mortgage. Some reverse mortgages – mostly HECMs – offer fixed rates, but they tend to require you to take your loan as a lump sum at closing. Often, the total amount you can borrow is less than you could get with a variable rate loan. Interest is not tax-deductible each year. Interest on reverse mortgages is not deductible on income tax returns – until the loan is paid off, either partially or in full. You have to pay for other costs related to your home. In a reverse mortgage, you keep the title to your home. That means you are responsible for property taxes, insurance, utilities, fuel, maintenance, and other expenses. And, if you don’t pay your property taxes, keep homeowner’s insurance, or maintain your home, the lender might require you to repay your loan. A financial assessment is required when you apply for the mortgage. As a result, your lender may require a “set-aside” amount to pay your taxes and insurance during the loan. The “set-aside” reduces the amount of funds you can get in payments. You are still responsible for maintaining your home. What happens to your spouse? With HECM loans, if you signed the loan paperwork and your spouse didn’t, in certain situations, your spouse may continue to live in the home even after you die if he or she pays taxes and insurance, and continues to maintain the property. But your spouse will stop getting money from the HECM, since he or she wasn’t part of the loan agreement. What can you leave to your heirs? Reverse mortgages can use up the equity in your home, which means fewer assets for you and your heirs. Most reverse mortgages have something called a “non-recourse” clause. This means that you, or your estate, can’t owe more than the value of your home when the loan becomes due and the home is sold. With a HECM, generally, if you or your heirs want to pay off the loan and keep the home rather than sell it, you would not have to pay more than the appraised value of the home. Types of Reverse Mortgages As you consider whether a reverse mortgage is right for you, also consider which of the three types of reverse mortgage might best suit your needs. Single-purpose reverse mortgages are the least expensive option. They’re offered by some state and local government agencies, as well as non-profit organizations, but they’re not available everywhere. These loans may be used for only one purpose, which the lender specifies. For example, the lender might say the loan may be used only to pay for home repairs, improvements, or property taxes. Most homeowners with low or moderate income can qualify for these loans. Proprietary reverse mortgages are private loans that are backed by the companies that develop them. If you own a higher-valued home, you may get a bigger loan advance from a proprietary reverse mortgage. So if your home has a higher appraised value and you have a small mortgage, you might qualify for more funds. Home Equity Conversion Mortgages (HECMs) are federally-insured reverse mortgages and are backed by the U. S. Department of Housing and Urban Development (HUD). HECM loans can be used for any purpose. HECMs and proprietary reverse mortgages may be more expensive than traditional home loans, and the upfront costs can be high. That’s important to consider, especially if you plan to stay in your home for just a short time or borrow a small amount. How much you can borrow with a HECM or proprietary reverse mortgage depends on several factors: your age the type of reverse mortgage you select the appraised value of your home current interest rates, and a financial assessment of your willingness and ability to pay property taxes and homeowner’s insurance. In general, the older you are, the more equity you have in your home, and the less you owe on it, the more money you can get. Before applying for a HECM, you must meet with a counselor from an independent government-approved housing counseling agency. Some lenders offering proprietary reverse mortgages also require counseling. The counselor is required to explain the loan’s costs and financial implications. The counselor also must explain the possible alternatives to a HECM – like government and non-profit programs, or a single-purpose or proprietary reverse mortgage. The counselor also should be able to help you compare the costs of different types of reverse mortgages and tell you how different payment options, fees, and other costs affect the total cost of the loan over time. You can visit HUD for a list of counselors, or call the agency at 1-800-569-4287. Counseling agencies usually charge a fee for their services, often around $125. This fee can be paid from the loan proceeds, and you cannot be turned away if you can’t afford the fee. With a HECM, there generally is no specific income requirement. However, lenders must conduct a financial assessment when deciding whether to approve and close your loan. They’re evaluating your willingness and ability to meet your obligations and the mortgage requirements. Based on the results, the lender could require funds to be set aside from the loan proceeds to pay things like property taxes, homeowner’s insurance, and flood insurance (if applicable). If this is not required, you still could agree that your lender will pay these items. If you have a “set-aside” or you agree to have the lender make these payments, those amounts will be deducted from the amount you get in loan proceeds. You are still responsible for maintaining the property. The HECM lets you choose among several payment options: a single disbursement option – this is only available with a fixed-rate loan, and typically offers less money than other HECM options. a “term” option – fixed monthly cash advances for a specific time. a “tenure” option – fixed monthly cash advances for as long as you live in your home. a line of credit – this lets you draw down the loan proceeds at any time, in amounts you choose, until you have used up the line of credit. This option limits the amount of interest imposed on your loan because you owe interest on the credit that you are using. a combination of monthly payments and a line of credit. You may be able to change your payment option for a small fee. HECMs generally give you bigger loan advances at a lower total cost than proprietary loans do. In the HECM program, a borrower generally can live in a nursing home or other medical facility for up to 12 consecutive months before the loan must be repaid. Taxes and insurance still must be paid on the loan, and your home must be maintained. With HECMs, there is a limit on how much you can take out the first year. Your lender will calculate how much you can borrow, based on your age, the interest rate, the value of your home, and your financial assessment. This amount is called your “initial principal limit.” Generally, you can take out up to 60 percent of your initial principal limit in the first year. There are exceptions, though. Shopping for a Reverse Mortgage If you’re considering a reverse mortgage, shop around. Decide which type of reverse mortgage might be right for you. That might depend on what you want to do with the money. Compare the options, terms, and fees from various lenders. Learn as much as you can about reverse mortgages before you talk to a counselor or lender. And ask lots of questions to make sure a reverse mortgage could work for you – and that you’re getting the right kind for you. Here are some things to consider: Do you want a reverse mortgage to pay for home repairs or property taxes? If so, find out if you qualify for any low-cost single purpose loans in your area. Staff at your local Area Agency on Aging may know about the programs in your area. Find the nearest agency on aging at eldercare.gov, or call 1-800-677-1116. Ask about “loan or grant programs for home repairs or improvements,” or “property tax deferral” or “property tax postponement” programs, and how to apply. Do you live in a higher-valued home? You might be able to borrow more money with a proprietary reverse mortgage. But the more you borrow, the higher the fees you’ll pay. You also might consider a HECM loan. A HECM counselor or a lender can help you compare these types of loans side by side, to see what you’ll get – and what it costs. Compare fees and costs. This bears repeating: shop around and compare the costs of the loans available to you. While the mortgage insurance premium is usually the same from lender to lender, most loan costs – including origination fees, interest rates, closing costs, and servicing fees – vary among lenders. Understand total costs and loan repayment. Ask a counselor or lender to explain the Total Annual Loan Cost (TALC) rates: they show the projected annual average cost of a reverse mortgage, including all the itemized costs. And, no matter what type of reverse mortgage you’re considering, understand all the reasons why your loan might have to be repaid before you were planning on it. Be Wary of Sales Pitches for a Reverse Mortgage Is a reverse mortgage right for you? Only you can decide what works for your situation. A counselor from an independent government-approved housing counseling agency can help. But a salesperson isn’t likely to be the best guide for what works for you. This is especially true if he or she acts like a reverse mortgage is a solution for all your problems, pushes you to take out a loan, or has ideas on how you can spend the money from a reverse mortgage. For example, some sellers may try to sell you things like home improvement services – but then suggest a reverse mortgage as an easy way to pay for them. If you decide you need home improvements, and you think a reverse mortgage is the way to pay for them, shop around before deciding on a particular seller. Your home improvement costs include not only the price of the work being done – but also the costs and fees you’ll pay to get the reverse mortgage. Some reverse mortgage salespeople might suggest ways to invest the money from your reverse mortgage – even pressuring you to buy other financial products, like an annuity or long-term care insurance. Resist that pressure. If you buy those kinds of financial products, you could lose the money you get from your reverse mortgage. You don’t have to buy any financial products, services or investment to get a reverse mortgage. In fact, in some situations, it’s illegal to require you to buy other products to get a reverse mortgage. Some salespeople try to rush you through the process. Stop and check with a counselor or someone you trust before you sign anything. A reverse mortgage can be complicated, and isn’t something to rush into. The bottom line: If you don’t understand the cost or features of a reverse mortgage, walk away. If you feel pressure or urgency to complete the deal – walk away. Do some research and find a counselor or company you feel comfortable with. Your Right to Cancel With most reverse mortgages, you have at least three business days after closing to cancel the deal for any reason, without penalty. This is known as your right of “rescission.” To cancel, you must notify the lender in writing. Send your letter by certified mail, and ask for a return receipt. That will let you document what the lender got, and when. Keep copies of your correspondence and any enclosures. After you cancel, the lender has 20 days to return any money you’ve paid for the financing. Report Possible Fraud If you suspect a scam, or that someone involved in the transaction may be breaking the law, let the counselor, lender, or loan servicer know. Then, file a complaint with the Federal Trade Commission, your state Attorney General’s office, or your state banking regulatory agency. Whether a reverse mortgage is right for you is a big question. Consider all your options. You may qualify for less costly alternatives. The following organizations have more information: U. S. Department of Housing and Urban Development (HUD) HECM Program 1-800-CALL-FHA (1-800-225-5342) Consumer Financial Protection Bureau Considering a Reverse Mortgage? 1-855- 411-CFPB (1-855-411-2372) AARP Foundation Reverse Mortgage Education

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

GIFT TAX

The U.S. federal gift tax is imposed on cash and properties that individuals give to others. It's paid by the donor, not the beneficiary of the gift, although the Internal Revenue Service has been known to look to the beneficiary for the tax when the donor doesn't pay up. The idea behind the tax is to prevent individuals from giving their money and property away during their lifetimes so it's not subject to an estate tax when they die. The IRS will collect now, or it will collect later...but it will collect. Fortunately, there are certain exemptions and exclusions that taxpayers can use to reduce and even eliminate this tax liability. The Internal Revenue Code provides for an annual exclusion, certain specific gift exclusions, and a lifetime exemption from the gift tax. What's a Gift in Tax Terms? The IRS defines a gift as anything you give for which you don't receive "full consideration" in return. It's a gift if the beneficiary of your generosity doesn't also give you something of equal fair market value or money. Not All Gifts Are Taxable Certain gifts aren't subject to the gift tax. A U.S. citizen can give up to $152,000 in cash or property to a spouse who is not a U.S. citizen. This limit is indexed for inflation, so it can be expected to increase marginally in 2019. The unlimited marital deduction applies to all gifts made by a U.S. citizen to a spouse who is also a U.S. citizen. You can give your spouse as much as you like without paying a gift tax. You can also give unlimited funds for education or healthcare as long as you pay the institutions directly. You can't give the money to the beneficiary so she can pay the providers or school herself. And you can stretch gifts to a 529 savings plans out over five years, dividing the total amount by five, to help you qualify for the annual gift tax exclusion each year. You just can't make any other gifts to the same beneficiary of the plan during this time. You can give to qualified charitable organizations and to some political organizations without incurring the tax as well. The Annual Gift Tax Exclusion The annual gift tax exclusion is an amount you can give away per person, per year, tax-free. Gifts given as either lump-sum amounts or as a series of amounts to the same person over the course of one year aren't taxed if the total doesn't exceed $15,000 as of 2019. The annual gift tax exclusion is applied individually, based on each gift recipient. You can give $15,000 in cash to your daughter in 2019, a $15,000 car to your son in that same year, a $15,000 diamond ring to your best friend, and $15,000 worth of stock to each of your grandkids. None of these recipients received more than the exclusion, so you've given $60,000 away without incurring the tax. Likewise, you could give your daughter $15,000 in December and another $15,000 in January without incurring the tax because the gifts occurred in two separate years. And each donor is entitled to this $15,000 exclusion, so you actually have a $30,000 limit per person per year if you're married and want to give from your joint property or funds. The Lifetime Gift Tax Exemption The lifetime gift tax exemption is the total amount you can give away tax-free over the course of your entire lifetime. It's a collective cap rather than by person or by year, and it's in addition to the annual exclusion. If you gave your daughter $30,000 all at once, $15,000 of that would be tax-free under the annual exclusion and the remaining $15,000 could be covered by the lifetime exemption if you elect this option. The American Taxpayer Act of 2013 (ATRA) indexed the lifetime exemption for inflation, so it increases year by year. But it's shared with the U.S. federal estate tax, so your lifetime gifts reduce the amount of exemption you have left to later shield your estate from taxation if you choose to apply it to your lifetime gifts over the exclusion amount. The federal estate tax and the gift tax share the same lifetime exemption. The Tax Cuts and Jobs Act (TCJA) spiked the exemption up to $11.18 million in 2018—effectively doubling it from the year before. It was adjusted to $11.4 million in 2019 to keep pace with inflation. But this is only a temporary measure because the TCJA will expire at the end of 2025 unless Congress acts to renew the legislation. Otherwise, the exemption could plummet back to the $5 million range. Sharing the Exemption Between Gifts and Your Estate Let's say that you give away $10 million during your lifetime and you die in 2019. Your federal estate tax exemption would be just $1.4 million after all this giving—the balance of the exemption left over. If your estate and lifetime giving add up to more than $1.4 million, your estate will owe an estate tax on its value over that amount. But this lifetime exemption is per donor as well. You and your spouse actually have $2.8 million in exemptions to cover giving and your estate if you're married. What Happens When You Make a Taxable Gift If you gift $120,000 to your daughter in 2019, $105,000 of the gift is taxable because it exceeds the $15,000 annual exclusion by that amount. You can either pay the gift tax in that year, or you can charge it to your lifetime exemption. If you do the latter, your $105,000 taxable amount reduces your 2019 lifetime exemption from $11.4 million to $11,295,000. Taxable gifts must be reported to the IRS on Form 709, the United States Gift (and Generation-Skipping Transfer) tax return. The return is due on the same date as your personal income tax return, which is typically April 15 of the year after the year in which taxable gifts were made. This is how the IRS tracks how much of your lifetime exemption you've used up. You must file Form 709 to let the IRS know you're applying the gift to your lifetime exemption, or you can pay the gift tax at that time. If you do this, your lifetime exemption is unaffected. Generous individuals should make sure they understand how gifts they give their friends and loved ones can affect their tax liability. Consulting an accountant or an estate planning attorney can help you navigate these tricky, complicated

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CAPACITY TO SIGN A REAL ESTATE CONTRACT

When it comes to legally binding agreements, certain people are always considered to lack the legal ability (or "capacity") to contract. As a legal matter, basically they are presumed not to know what they're doing. These people--legal minors and the mentally ill, for example--are placed into a special category. If they enter into a contract, the agreement is considered "voidable" by them (as the person who lacked the capacity to enter the agreement in the first place). Voidable means that the person who lacked capacity to enter the contact can either end the contract or permit it to go ahead as agreed on. This protects the party who lacks capacity from being forced to go through with a deal that takes advantage of his or her lack of savvy. Let's look at some situations in which a person might lack the legal capacity to enter into a legally binding contract. Minors Have No Capacity to Contract Minors (those under the age of 18, in most states) lack the capacity to make a contract. So a minor who signs a contract can either honor the deal or void the contract. There are a few exceptions, however. For example, in most states, a minor cannot void a contract for necessities like food, clothing, and lodging. Also, a minor can void a contract for lack of capacity only while still under the age of majority. In most states, if a minor turns 18 and hasn't done anything to void the contract, then the contract can no longer be voided. EXAMPLE Sean, 17, a snowboarder, signs a long-term endorsement agreement for sportswear. He endorses the products and deposits his compensation for the endorsements for several years. At age 19, he decides he wants to void the agreement to take a better endorsement deal. He claims he lacked capacity when he signed the deal at 17. A court probably will not permit Sean to now void the agreement. For another example of minors entering into contracts, see Nolo's Q&A Is a 15-year-old's contract with a cell phone service valid? Mental Incapacity A person who lacks mental capacity can void, or have a guardian void, most contracts (except contracts for necessities). In most states, the standard for mental capacity is whether the party understood the meaning and effect of the words comprising the contract or transaction. This is called the "cognitive" test. Some states use what's called the "affective" test: a contract can be voided if one party is unable to act in a reasonable manner and the other party has reason to know of the condition. And some states use a third measure, called the "motivational" test. Courts in these states measure capacity by the person's ability to judge whether or not to enter into the agreement. These tests may produce varying results when applied to mental conditions such as bipolar disorder. EXAMPLE Mr. Smalley contracted to sell an invention, and then later claimed that the contract was void because he lacked capacity. Smalley had been diagnosed as manic-depressive and had been in and out of mental hospitals. His doctor stated that Mr. Smalley was not capable of evaluating business deals when he was in a "manic" state. A California Court of Appeals refused to terminate the contract and stated that Smalley, in his manic state, was capable of contracting. "The manic phase of the illness under discussion is not, however, a weakness of mind rendering a person incompetent to contract ." In other words, the Court's view of manic-depression was cognitive--that the condition may have impaired Smalley's judgment but not his understanding. Alcohol and Drugs People who are intoxicated by drugs or alcohol are usually not considered to lack the capacity to contract. Courts generally rule that those who are voluntarily intoxicated shouldn't be allowed to avoid their contractual obligations, but should instead have to take responsibility for the results of their self-induced altered state of mind. However, if a party is so far gone as to be unable to understand even the nature and consequences of the agreement, and the other (sober) party takes advantage of the person's condition, then the contract may be voidable by the inebriated party. EXAMPLE In the late 19th century, Mr. Thackrah, a Utah resident and owner of $80,000 worth of mining stock, went on a three-month bender. Mr. T's fondness for alcohol was well known, and a local bank hired Mr. Haas to contract with the inebriated Thackrah. Haas did the deal, getting Thackrah to agree to accept $1,200 for his mining stock. When he sobered up (a month later), Thackrah learned that Haas had turned over the mining shares to a local bank (apparently the real culprits in the scheme). Thackrah sued Haas. The case went all the way to the U.S. Supreme Court, which ruled that the agreement was void because the bank and Hass knew that Thackrah had no idea what he was doing when he entered the contract. The bank had to return the shares to Thackrah, less the $1,200 he had already been

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EARNEST MONEY DEPOSITS

Real estate has its fair share of horror stories. One that keeps both first-time homebuyers and seasoned pros up at night is the thought of sellers walking away with their hard-earned money, all with nothing to show for it. While these situations where a seller would get to keep your earnest money deposit are rare, they can happen. Fortunately, there are things that you can do to protect yourself during your transaction. Keep reading to learn more about what earnest money deposits are, how they work and how to keep your money safe. By the end of this article, you should be confidently able to put your money to work for you. How Earnest Money Deposits Work Once you submit an offer on a home, the agent that you’re working with will ask you to submit a check along with your paperwork. This money will be referred to as either your “earnest money deposit” (EMD) or “escrow deposit” throughout the transaction. How much your deposit is worth may be up for negotiation, but you should expect to put forth between 1-3% of the home’s purchase price. It’s important to remember that the seller will be able to keep the money if you decide to walk away from the deal without cause. This deposit acts as a reassurance to the seller that you’re serious about buying the home. All The Details Should Be In Writing Going into your transaction, you can think of your Agreement of Sale like a roadmap. It outlines all of the important details of the transaction. This includes all of the contingencies or events that need to happen in order for the deal to continue moving forward, as well as the dates by which they need to occur. Usually, these will be things like the satisfaction of any issues found during your home inspection and a satisfactory appraisal, but they can also be particular to your transaction. As you put your offer together, it’s your and your real estate agent’s responsibility to negotiate in your own best interests. Read over everything, and consider the dates and contingencies carefully before signing on the dotted line. Hold Up Your End Of The Bargain Once everything is in writing, it’s absolutely crucial that you meet any deadlines and expectations that have been laid out for you in the finalized contract. Failure to do is one of the most common reasons why sellers are ultimately able to keep earnest money deposits if the deal falls through. In this situation, organization is key. I recommend going through your Agreement of Sale after everything has been signed off on. Go over it with a fine-tooth comb and make a list of your relevant responsibilities and dates to be aware of. Put everything in a timeline, and keep it close at hand so you can refer back to it easily. When dealing with deadlines, be sure to leave yourself plenty of room. Whether it’s getting financial paperwork to your lender or scheduling inspections, be sure to leave yourself plenty of time to spare. You never know when the unexpected may pop up and a task may end up taking longer than expected. Report Roadblocks Early That said, however, we all know that things don’t always go according to plan. If a problem crops up during the course of your transaction — and it becomes clear that you’ll be unable to meet your contingencies on time — speak up ASAP. Often, when you’re still within the original time frame, these things can be renegotiated via an addendum to reflect the change in your circumstance. If there’s one thing you never want to do, though, it's missing a deadline without prior notice. While doing so isn’t an automatic assurance that the sellers will walk away with your earnest money deposit, if the deal goes south, it gives them the option to do so, even if the deal dissolves over another issue. When in doubt, your best bet is to be upfront and honest whenever possible during the course of your transaction. Because your earnest money deposit acts as a “good faith” commitment to buying the property, you will be penalized if you back out of the purchase contract for no good reason, e.g., buyer’s remorse, cold feet or a change of heart. In those cases, you will forfeit your earnest money deposit to the seller. If you decide to withdraw your offer after it has been accepted, the contingencies noted above are your only loopholes. However, as long as you perform according to the schedule outlined in the purchase agreement, your earnest money deposit should be safe and available for you should you need to walk away from the purchase. BEWARE - For a refund of the earnest money to occur, both parties to the contract must agree. For some reason, real estate agents do not explain this upfront. The safest bet overall is to insert into the purchase contract itself that the money is refundable in the event of certain conditions or circumstances or non-refundable in the event of certain conditions or circumstances, and not to rely on the good faith of the other party to the contract

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CHARACTERISTICS OF A SUCCESSFUL REAL ESTATE INVESTOR

It turns out that there are best practice guidelines that successful real estate investors follow, and you can follow them, too. People who meet their investment goals adhere to principles that guide them through the highly competitive real estate market. It is important to develop a strong knowledge of financial concepts and the markets that are likely to affect your investment. Start off by specializing in a particular type of property, surround yourself with a good support team and stay involved in every aspect of your investments to find success and achieve your investment goals. 1. Educate Yourself Becoming a successful real estate investor means that you must understand basic concepts to help you evaluate a property’s potential, establish proper operations and solve any problems that may arise. You can educate yourself by getting real estate investment information that is readily available online and in-person in the form of webinars, presentations, seminars, meetings, books, and articles. If you can find a mentor to guide you, it will shorten your learning curve and you will get the better results. Make sure to keep up with evolving real estate laws, local regulations, and changing market conditions. 2. Understand the Market A sound real estate investment decision requires comprehensive knowledge of factors that affect real estate. In-Depth knowledge of mortgage rates, unemployment statistics, and consumer spending can help you understand conditions as they currently stand. However, today’s statistics are only part of the story in real estate investment. To achieve success, you need to be aware of trends so you can make reasonable assumptions about the status of the market in the future. You should also be aware of where you currently stand in the business and real estate cycle. 3. Find your Niche When you developed your strategic action plan for your real estate investment business, you probably had a particular focus in mind. In other words, you might have decided to look for multi-family opportunities in the Core Plus residential niche, or you might be focused on medical or office buildings in the suburbs. Real estate is complicated, and it is difficult to become an expert in every area. Once you have mastered one area, you may be comfortable enough to move on to another. 4. Network with Successful Professionals Never pass up the opportunity to meet with other real estate investors face to face, and if the opportunity doesn’t present itself, pick up the phone and arrange a meeting. Technology has its place, but brief text messages and emails will not take the place of sitting down to lunch with another investor. You never know what will come up in conversation to help you achieve success. You should also have a trusted team of real estate agents, attorneys, mortgage brokers, inspectors, and appraisers to give you professional advice. 5. Stay Involved You may believe that once you buy a property and invest your money, your involvement is over and you can move on to the next deal. Not so! Even if you hire a property manager to do the renovations, provide regular maintenance and collect the rent, you need to stay in charge of your properties. Ask for reports, visit the properties and look at the financials periodically to make sure things are as you expect, even if you are not involved in the day to day management. Summary for Developing the Habits of Successful Real Estate Investors Always treat your investments as a business with clear cut, measurable objectives. That way you can focus on the big picture, even in the face of minor setbacks. It is crucial to understand your risks when you invest, which is why you need to keep up with current markets, business cycles, and legal changes. Most important of all is to guard your reputation by maintaining the highest ethical standards when dealing with others in real estate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

ROOFING AND INSURANCE

Insurance companies view roofs as one of the most important parts of a home. Roofs protect homes from the elements and can prevent home insurance claims. If you have a damaged roof, you’re likely going to have problems within your home that will lead to more claims. With that mind, many insurers are becoming more restrictive with roof coverage. Some insurers won't even cover your home if it has an older roof. Can my home be insured with an older roof? Some insurers have refused to renew existing homeowner insurance policies on houses with roofs older than 20 years without passing an inspection. Those who fail inspection will not be renewed without a roof replacement. Other insurers don’t write new policies for homes with roofs over 20 years old. They will only pay actual cash value for roof replacement for older roofs when they’re damaged. This means they don’t pay to fully replace the roof, but only reimburse for what an old roof is worth after 20-plus years. "If you have a roof that has lasted 20 years, then you've probably exceeded the roofing membrane life expectancy,” says Gerald Delaune, senior building envelope consultant at Childress Engineering Services Inc. in Richardson, Texas. “Chances are that at that point, there are issues within the roofing system that cannot be seen (such as moisture within the system), which could potentially deteriorate the deck and that it would be worth your money to replace the roof.” Expensive as it may be to replace a roof, you may have no choice if doing nothing would cost you your home insurance policy, according to Chip Merlin, president of Tampa-based Merlin Law Group, P.A. "Insurance companies are generally tightening underwriting requirements for older homes in general--and then specific homes where there has not been a replacement of roofs, plumbing or electrical. Roofs are the biggest issue," says Merlin. "Generally, in geographic areas where the demand for insurance exceeds the insurance company's appetite for risk, the greater the underwriting criteria come into play. Florida is such a state, but we are also seeing it along with all coastal areas and in areas where hail damage is most prevalent." Merlin notes that while some companies are tightening inspection requirements and requiring homeowners to cover the cost of these inspections for renewals, most insurers are simply refusing to write new policies for homes with roofs older than 20 years. (See "7 types of homes that are hard to insure.") "The trend is to require an older roof – 15 to 20 years plus – to have an inspection to get a renewal. This is probably a good policy because it promotes better maintenance and reduces needless loss," says Merlin. Do homeowners insurance policies cover roof damage and roof leaks? Home insurance policies usually cover roof damage caused by fire, vandalism, and “acts of God,” such as hurricanes and tornadoes. Whether they will pay for damage caused by wind, rain or hail is determined by your policy and the age of your roof. For instance, if your roof is less than 10 years old, your insurer will likely cover the replacement in full. An insurer may not reimburse you if you have an older roof (especially one that is more than 20 years old) or the company might only pay what it deems the roof is worth after years of wear and tear. A leaky roof may be covered, but insurance companies believe homeowners should prevent leaks and subsequent damage. It’s up to the homeowner to take the necessary precautions to maintain the property. If a leaky roof isn't fixed properly, an insurer might not cover the damage. Whether you’re reimbursed partially, fully or not at all depends on your policy, so check with your insurance company if you experience any damage. How to protect your roof Here are five tips to protect your roof: Take photos of your roof so you have them on file in case of any damage. If your roof is damaged, then take a set of “after” photos so you can document the damage and submit it to your insurance company. If your roof is more than 10 years old, you may want to hire a roof inspector who can check for any damage and areas that need repair. Replace any broken or worn shingles or tiles. A broken shingle might seem minor, but it’s not protecting your home and can result in damage. An insurance inspector may perform a check of your property from the street. Insurance companies can cancel your policy if the home is considered to be in disrepair and that can include a leaky roof and broken or displaced shingles. Cut back any trees hanging over your house and remove any dead trees. If your roof is damaged, contact your insurance company and ask them to send an inspector to review the damage. Insurance companies cover roofs differently and your state can play a big part as to whether or how much you’re reimbursed. It’s best to speak with your insurance provider if you have concerns about whether or not roof damage will be covered by insurance. Are there insurance coverage limitations on my roof? Scott DeLuise, president of Matrix Business Consulting in Broomfield, Colorado, suggests that homeowners read the existing or proposed policy carefully to see what the coverage limitations apply to roofs. "Coverage scope and exclusions are a big deal. Ask another insurance company for a policy bid at renewal if it contains a wood shake endorsement or an exclusion for roofs over 20 years old," says DeLuise. "Also, have a good quality roofer inspect your roof and get a written report so that you know the condition before any damage occurs. That way, if wind or hail strikes your house, you can show the insurance company that there was no pre-existing damage. You can also request a cost estimate for replacing the roof so that you can decide if the cost of a new roof outweighs the risk of being denied home insurance coverage." DeLuise says many insurers on the West Coast are adding new endorsements upon renewal for the area's popular wooden shingle roofs. A wood shake or shingle endorsement is a written document attached to an insurance policy that excludes or restricts coverage of wooden shingle or shake roofs. Roofs"There are different variations. Insurers are trying to limit liability for all types of roof claims for wind or hail or anything other than fire. The only way they can do that is by changing types of coverage. Here in Colorado we're seeing wooden shake endorsements, and what some companies are doing is only insuring them on an actual cash value basis, meaning that those roofs are only covered for what they're worth at the time instead of for the cost of replacement," says DeLuise. DeLuise has also seen many companies limit appraisal for wind and hail roof damage during the claims process. If the policyholder demands an appraisal, some insurance companies try to limit the appraisal’s scope to damages that they've agreed to instead of all of the damage that the insured might find. "This effectively guts the appraisal clause in the policy. For example, if you have a metal roof and file a claim for hail damage, they may come back and say that the damage wasn't caused by hail but by wear and tear due to age," says DeLuise. He also says he's seeing new cosmetic roof exclusions on many client policies, meaning that the homeowner must pay for any damage that the insurance company deems “cosmetic.” "So, for example, if you have a metal roof and it gets hail dings in it, they won't replace the roof because that's cosmetic and doesn't limit the functionality of the roof. I think that's a really bad criterion because it's so subjective," says DeLuise. Filing a roof replacement insurance claim The time frame an insurance company gives you to file a claim can depend on the type of damage and the company’s policy. It’s best to contact your insurer as soon as there is damage. Here are steps to take if you need to file a claim because of roof damage: Contact your insurance company immediately and find out what’s covered by your policy. If possible, provide “before” and “after” photos to your insurance company so they can review the damage. Schedule a time for an insurance claims examiner to review the damage. Find a qualified roofer as soon as possible. A damaged roof is not properly protecting your home so you should get it repaired quickly. Delaune says replacing a roof can cost anywhere from $9 to $15 per square foot. He suggests that homeowners visit the Roof Consultants Institute's website to find a qualified roof consultant to assess the roof or National Roofing Contractors Association (NRCA) to find a qualified roofing contractor before making this major

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A WRAP AROUND MORTGAGE?

"What is a wrap-around mortgage, and who is it good for?" A wrap-around mortgage is a loan transaction in which the lender assumes responsibility for an existing mortgage. For example, S, who has a $70,000 mortgage on his home, sells his home to B for $100,000. B pays $5,000 down and borrows $95,000 on a new mortgage. This mortgage "wraps around" the existing $70,000 mortgage because the new lender will make the payments on the old mortgage. A wrap-around is attractive to lenders because they can leverage a lower interest rate on the existing mortgage into a higher yield for themselves. For example, suppose the $70,000 mortgage in the example has a rate of 6% and the new mortgage for $95,000 has a rate of 8%. The lender earns 8% on $25,000, plus the difference between 8% and 6% on $70,000. His total return on the $25,000 is about 13.5%. To do as well with a second mortgage, he would have to charge 13.5%. The spreadsheet Yield to Lender on Wrap-Around Mortgages calculates the yield on a wrap-around. Usually, but not always, the lender is the seller. A wrap-around is one type of seller-financing. The alternative type of home-seller financing is a second mortgage. Using the alternative, B obtains a first mortgage from an institution for, say, $70,000, and a second mortgage from S for the additional $25,000 that B needs. The major difference between the two approaches is that with second mortgage financing, the old mortgage is repaid, whereas with a wrap-around it isn’t. In general, only assumable loans are wrappable. Assumable loans are those on which existing borrowers can transfer their obligations to qualified house purchasers. Today, only FHA and VA loans are assumable without the permission of the lender. Other fixed-rate loans carry "due on sale" clauses, which require that the mortgage be repaid in full if the property is sold. Due-on-sale prohibits a home purchaser from assuming a seller’s existing mortgage without the lender’s permission. If permission is given, it will always be at the current market rate. Wrapping can be used to circumvent restrictions on assuming old loans, but I don’t recommend using it for this purpose. The home seller who does this violates his contract with the lender, which he may or may not get away with. In some states, escrow companies are required by law to inform a lender whose loan is being wrapped. If a wrap-around deal on a non-assumable loan does close and the lender discovers it afterward, watch out! The lender will either call the loan or demand an immediate increase in the interest rate and probably a healthy assumption fee. When market interest rates begin to rise, interest in wrapping assumable loans will also rise. The incentive to sellers is powerful, since not only do they acquire a high-yielding investment, but they can often sell their house for a better price. But the high return carries a high risk. When S in my example sold his house with a wrap-around, he converted his equity from his house, which he no longer owns, to a mortgage loan. Previously, his equity was a $100,000 house less a $70,000 mortgage. Now, his equity consists of the $5,000 down payment plus a $95,000 mortgage that he owns less the $70,000 mortgage that he owes. The new owner has only $5,000 of equity in the property. If a small decline in market values erases that equity, the owner has no financial incentive to maintain the property. If the buyer defaults on his mortgage, S will be obliged to foreclose and sell the property to pay off his own mortgage. In some seller-provided wrap-around, the payment by the buyer goes not to the seller but to a third party for transmission to the original lender. This is an extremely risky arrangement for the seller, who remains liable for the original loan. He doesn’t know if the payment on the old mortgage was made or not -- until he receives notice from the lender that it wasn’t. I recently heard from a seller who did such a wrap-around in 1996 and has been getting the run-around ever since. Payments by the buyer have often been late, and the seller’s credit has deteriorated as a result. Or it can work out well, perhaps 9 of 10 deals do. The problem is that unless you know the buyer, you can never be sure that yours is not the 10th that doesn’t. The home seller who does a wrap-around can’t diversify his

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS GENTRIFICATION?

What is Gentrification? Gentrification is a general term for the arrival of wealthier people in an existing urban district, a related increase in rents and property values, and changes in the district's character and culture. The term is often used negatively, suggesting the displacement of poor communities by rich outsiders. But the effects of gentrification are complex and contradictory, and its real impact varies. Many aspects of the gentrification process are desirable. Who wouldn't want to see reduced crime, new investment in buildings and infrastructure, and increased economic activity in their neighborhoods? Unfortunately, the benefits of these changes are often enjoyed disproportionately by the new arrivals, while the established residents find themselves economically and socially marginalized. Gentrification has been the cause of painful conflict in many American cities, often along racial and economic fault lines. Neighborhood change is often viewed as a miscarriage of social justice, in which wealthy, usually white, newcomers are congratulated for "improving" a neighborhood whose poor, minority residents are displaced by skyrocketing rents and economic change. Although there is not a clear-cut technical definition of gentrification, it is characterized by several changes. Demographics: An increase in median income, a decline in the proportion of racial minorities, and a reduction in household size, as low-income families are replaced by young singles and couples. Real Estate Markets: Large increases in rents and home prices, increases in the number of evictions, conversion of rental units to ownership (condos) and new development of luxury housing. Land Use: A decline in industrial uses, an increase in office or multimedia uses, the development of live-work "lofts" and high-end housing, retail, and restaurants. Culture and Character: New ideas about what is desirable and attractive, including standards (either informal or legal) for architecture, landscaping, public behavior, noise, and nuisance. How does it happen? America's renewed interest in city life has put a premium on urban neighborhoods, few of which have been built since World War II. If people are flocking to new jobs in a region where housing is scarce, pressure builds on areas once considered undesirable. Gentrification tends to occur in districts with particular qualities that make them desirable and ripe for change. The convenience, diversity, and vitality of urban neighborhoods are major draws, as is the availability of cheap housing, especially if the buildings are distinctive and appealing. Old houses or industrial buildings often attract people looking for "fixer-uppers" as investment opportunities. Gentrification works by accretion -- gathering momentum like a snowball. Few people are willing to move into an unfamiliar neighborhood across class and racial lines¹. Once a few familiar faces are present, more people are willing to make the move. Word travels that an attractive neighborhood has been "discovered" and the pace of change accelerates rapidly. Consequences of Gentrification In certain respects, a neighborhood that is gentrified can become a "victim of its own success." The upward spiral of desirability and increasing rents and property values often erodes the very qualities that began attracting new people in the first place. When success comes to a neighborhood, it does not always come to its established residents, and the displacement of that community is gentrification's most troubling effect. No one is more vulnerable to the effects of gentrification than renters. When prices go up, tenants are pushed out, whether through natural turnover, rent hikes, or evictions. When buildings are sold, buyers often evict the existing tenants to move in themselves, combine several units, or bring in new tenants at a higher rate. When residents own their homes, they are less vulnerable and may opt to "cash them in" and move elsewhere. Their options may be limited if there is a regional housing shortage, however, and cash does not always compensate for less tangible losses. The economic effects of gentrification vary widely, but the arrival of new investment, new spending power, and a new tax base usually result in significant increased economic activity. Rehabilitation, housing development, new shops and restaurants, and new, higher-wage jobs are often part of the picture. Previous residents may benefit from some of this development, particularly in the form of the service sector and construction jobs, but much of it may be out of reach to all but the well-educated newcomers. Some local economic activity may also be forced out -- either by rising rents or shifting sensibilities. Industrial activities that employ local workers may be viewed as a nuisance or environmental hazard by new arrivals. Local shops may lose their leases under pressure from posh boutiques and restaurants. Physical changes also accompany gentrification. Older buildings are rehabilitated and new construction occurs. Public improvements -- to streets, parks, and infrastructure -- may accompany government revitalization efforts or occur as new residents organize to demand public services. New arrivals often push hard to improve the district aesthetically and may codify new standards through design guidelines, historic preservation legislation, and the use of blight and nuisance laws. The social, economic, and physical impacts of gentrification often result in serious political conflict, exacerbated by differences in race, class, and culture. Earlier residents may feel embattled, ignored, and excluded from their own communities. New arrivals are often mystified by accusations that their efforts to improve local conditions are perceived as hostile or even racist. Change -- in fortunes, in populations, in the physical fabric of communities -- is an abiding feature of urban life. But change nearly always involves winners and losers, and low-income people are rarely the winners. The effects of gentrification vary widely with the particular local circumstances. Residents, community development corporations, and city governments across the country are struggling to manage these inevitable changes to create a win-win situation for everyone

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TOP 6 FACTORS AFFECTING RESIDENTIAL REAL ESTATE VALUATION

Top 6 factors affecting residential real estate valuation Factors to consider when pricing a home are historic sales price, quality of the neighborhood, the market, nearby features and the size, appeal, age, and condition of the home. Trying to price a home accurately, whether you’re preparing to sell a house or you’re ready to make an offer on one, is challenging. Even if you’ve had experience in the real estate market, home prices can differ substantially from your initial evaluations. Effective home valuations make the home selling process faster and less stressful, and knowing the right value of a home can help you secure a better deal for your buying client. Your approach can be made much easier if you boil down the factors to the critical ones that demonstrate having the most powerful effect on a home’s value. 6 factors that influence a home’s value These are the most important factors you’ll need to consider when valuing a home: 1. Historical sale prices One of the first things real estate agents, appraisers, and prospective homebuyers look at is the historical sale price of the property. If the property has been sold three times in the past three years, for $150,000, $155,000 and $153,000, it seems reasonable to start at a valuation around $150,000 and make adjustments based on any new additions or changes to the property. Historical prices are also usually dependent on the other factors on this list. 2. Neighborhood The neighborhood is one of the biggest influencers of a home’s value, responsible for both qualitative and quantifiable aspects of a home’s appeal. For example, school system quality and home prices tend to be strongly correlated. Research isn’t clear whether home prices influence school system investment, or whether quality schools influence home prices, but either way, school quality significantly affects home values. Crime rates, similarly, are negatively correlated with home values in the neighborhood. 3. The market The current state of the housing market will also influence a home’s value. Home prices are shaped by supply and demand, like any other economic asset, and may fluctuate based on subtle changes in your area’s economy. For example, if there’s a shortage of available houses and plenty of people looking to move to your area, home prices will rise. If the overall national economy is doing well, home prices will also increase. 4. Size and appeal A home’s size has a major influence on its value, with some prospective homebuyers looking specifically at price per square foot to filter out this effect and determine value. Bigger houses tend to sell for higher prices, of course. You’ll also have to consider the appeal of the house; traditional, neutral layouts tend to carry more value than obscure layouts that appeal only to niche audiences. The more general the appeal of the home, the greater its value will be (especially considering resale value). 5. Age and condition In addition to size and appeal, you’ll need to think about the home’s age and condition. Newer homes will sell for more than older homes because they’ll typically require less maintenance. However, an older home that’s been well-maintained may sell for just as much as a newer home — condition matters. Things like the home’s foundation, structural integrity, electrical work, plumbing, and fixtures are all worth considering. 6. Nearby features Finally, you’ll want to think about where the property is located, in relation to other accommodations and features. For example, homes that are close to shopping locations, and ones with easy access to major highways, tend to sell for more than ones far away from everything. The more time you spend looking at, valuing and comparing homes in your specific area of expertise, the better you’ll get at making accurate projections of a home’s potential selling price. In many cases, it’s worth hiring a formal appraiser to provide a second opinion or reinforce your valuation with more

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TOP 10 THINGS AFFECTING REAL ESTATE

TOP 10 THINGS AFFECTING REAL ESTATE 1. Interest rates & The Economy The Federal Reserve’s plan is to nudge interest rates back to historically normal levels. Concurrently, the passing of The Tax Cut and Jobs Act has enacted fiscal stimulus through deficit spending. As expansionary fiscal policy collides with tightening monetary policy, some speculate increased Federal borrowing could crowd out private entities from the debt market, while those who successfully secure financing face higher interest rates. 2. Politics & Political Uncertainty Geopolitical uncertainty, The Tax Cuts, and Jobs Act, and potential trade wars are policies with the potential to affect real estate indirectly. However, some policy changes have more direct implications for real estate, particularly in the regulation of community banks. The new law relaxes some requirements of the Dodd-Frank Act, adjusts rules regulating HVCRE, and reduces HMDA data requirements. 3. Housing Affordability There has been a shortage of housing supply for nearly two decades. Simultaneously, income stagnation for all but the highest-income households has hampered access to affordable homes and rental units. Now, as Millennials and others move to cities and begin to gentrify aging neighborhoods (formerly de facto affordable housing stock), a crisis of affordability is beginning to emerge. As this issue develops over the next few years, key questions regarding solutions are “Who pays?” and “How?” 4. Generational Change & Demographics The real estate market is currently influenced by four demographic groups: millennials, baby boomers, Gen X, and Gen Z. Some companies have already started to adjust work processes, location, and space utilization in response to demographic changes; the housing market will also have to respond to evolving demands. Even though the different groups have overlapping desires, there are important differences in timing and ability to pay. 5. E-commerce & Logistics The U.S. Department of Commerce estimates that $123.7 billion of retail sales were conducted through online channels in 2018 Q1, accounting for nearly 30% of all retail commerce net of automobile and gasoline sales. As retailers cope with this changing landscape, several big-name stores have announced waves of store closures, while others open new locations. Commercial real estate will be directly impacted by these shifts in retail strategy. Longer-Term Issues 6. Infrastructure Chronic infrastructure underinvestment has elevated the risk of short- and long-term economic drag. Despite some political efforts, there have been very few serious attempts to address America’s infrastructure maintenance problems. All real estate depends on well-maintained, reliable infrastructure, such as reliable utilities, efficient roads, and transit routes. 7. Disruptive Technology The real estate industry, like the rest of the world, is poised to adopt new technologies. E-commerce has drastically changed the retail sector, while ride-sharing companies are altering the need for residential garage space. Data continues to be commoditized, offering increased transaction transparency and enhanced demographic targeting. As owners and investors move to adopt these new technologies, they must decide which tools are most appropriate for their business and not rush toward “technology for technology’s sake.” 8. Natural Disasters & Climate Change Natural disasters and climate change are expected to increasingly affect real estate over time, which in turn are pushing states and local communities to establish urban policies and regulate energy and sustainability in order to combat these environmental conditions. However, more legal measures at the state and local levels imply more hurdles for real estate developers, especially with respect to corporate relocations and expansions. 9. Immigration The RAISE Act (Reforming American Immigration for Strong Economy) restricts legal immigration, dropping the number of green cards from the present 1.1 million to 500,000 annually. As the U.S. faces a long-term labor shortage due to the aging population, stifling legal immigration will have implications for the economy at large as well as for real estate. 10. Energy & water A combination of higher energy prices and higher real estate financing costs is expected to create optimistic growth forecasts. Additionally, the population within urban centers across the U.S. is likely to increase and thus put pressure on existing real estate centers to be able to provide water and other essential

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CASHIER CHECK FRAUD

Cashier’s checks have a reputation for being safe, and that’s what makes them perfect for scams. Whether you’re selling something online or in-person, cashier’s checks deserve extra attention. Get familiar with the most common red flags, and you’ll significantly improve your chances of avoiding fraud. Safety and Cashier’s Check Fraud Why are cashier’s checks considered “safe”? When they’re legitimate, they offer guaranteed funds: Recipients don’t have to worry about a personal check bouncing, and money from the check is usually available for spending within one business day (at least the first $5,000 should be available). Unfortunately, cashier’s checks are much less safe than they used to be. If you don’t know and trust your buyer, you simply cannot assume that a cashier’s check is just as good as cash. A Typical Cashier’s Check Scam The most common cashier’s check scam goes something like this: A "buyer" wants to purchase a product and will use a cashier’s check. For whatever reason, the buyer has a check issued for an amount in excess of the purchase price. Still, the buyer wants the seller to "just go ahead" and deposit the check. Finally, the buyer requests that the seller return the excess money, typically in cash, by wire transfer, or via Western Union. The return payment might go directly back to the buyer or to a third party. Note the key elements: The buyer uses a cashier’s check or money order. They explain that this is their only option for payment. The seller or recipient gets a check for more than they asked for. The seller is supposed to send the extra money back to the buyer or to a “helper.” If you’re faced with a situation that looks anything like this, you’re almost certainly dealing with a thief. Timing is essential: Don’t send any money or merchandise until you are 100 percent certain that the paying bank has actually sent the funds. This is often referred to as the time when the check “clears,” but that term can be confusing—even for bank employees. Funds from a cashier’s check will be available to you for withdrawal within one business day, but that doesn’t mean that the funds actually exist or that they moved to your bank. That process can take several business days or longer. The less you know about your buyer, the longer you should wait. How cashier’s checks bounce: These scams work because everybody believes that cashier’s checks are safe. If the bank lets you take cash, the check must be good, right? Unfortunately, your bank assumes that the check will be good, but the responsibility for the deposit is ultimately yours. If you use that money (to send it to a “shipper,” for example), you may have to replace the funds. Once your bank finds out that the check is bogus, the deposit will be reversed—which could leave you with a negative account balance. With an empty bank account, you’ll end up bouncing checks and missing other important payments. What’s more, victims of these scams can lose hundreds or thousands of dollars. Protect Yourself Take steps to protect yourself from fraud: Never accept a check for more than you asked for. If possible, go to the bank with whoever is paying you and watch them get the cashier's check from a teller. Stand in line with them so there's no "switcharoo." Verify funds on any check or money order you receive. This isn't a foolproof tactic, but it'll weed out some of the sloppier thieves. Insist on other forms of payment that you know are more reliable (such as a wire transfer) but be careful about giving out your bank account information. Only deal with local buyers on Craigslist and similar sites, and insist on cash payments if you can’t go to the bank together. Inspect any check you receive, looking for signs that it’s a fake. Misspelled words and poor quality paper without any security features are common on fake checks. If you must take a check for more than your asking price, inform the seller that you’ll wait at least two weeks before sending any money or sending merchandise. Speak with a bank manager when you deposit suspect checks. Explain the situation and your concerns, and ask when you can be 100 percent certain that the payment is good. Better yet, don’t accept suspect checks. Step away from the situation before you accept a cashier’s check and trust your gut. With a fresh perspective, you may notice odd clues that indicate trouble. Red Flags Thieves are good at what they do, but they often give hints. Ask yourself if the situation makes sense. For example, when buyers don’t ask typical questions or know much about the item you’re selling, why are they so eager to buy? It may turn out that they have no intention of using whatever you’re selling. Why would a person you’ve never met trust you with thousands of dollars? If they can contact you, they can surely give adequate instructions to have the bank issue a cashier’s check correctly. If the excessive amount was, in fact, the buyer’s fault, wouldn’t the buyer pay the $8 (or whatever) fee to have an accurate check printed instead of giving you—a complete stranger—the opportunity to steal the cash? Finally, if they can come up with extra money, they can surely afford to pay a separate cashier’s check fee or write a different check to their “agent” or “associate” who you're supposed to forward the money to. More Examples Cashier’s checks show up in numerous scams. Keep an eye out for any of the situations below. Con artists continue to change their approach over time, but these are some of the classics. Money mule: You receive payments, and you’re supposed to deposit the payments to your account and forward the money to somebody else. Often advertised as a work-at-home check processing job, these schemes are usually problematic. In some cases, you’re laundering money for criminals. In other cases, the first few payments are fine, but eventually, you’ll get a fake check (after they’ve gained your trust) and you’ll lose money. Foreign wealth scams: Somebody you don’t know reaches out to you and asks for your help transferring a large sum of money out of a corrupt nation. In exchange, you can keep a tiny fraction of the transfer, which is more money than you make in a year. Of course, you’ll have to send money to somebody else to complete the transfer. Inheritance and lottery scams: You won! You’re about to receive a lot of money, but you’ll need to pay a small amount for taxes or legal fees to “release” the funds. It’s a small price to pay for the riches that are headed your way. Of course, they’ll never materialize. Property rental scam: Somebody is moving to your area for a new job. They’d like to pay the first and last month of rent, as well as the security deposit, with a cashier’s check. They have never actually seen the property. The day after you deposit the check, they say there was an issue with the job—they’re not coming, so they don’t need the rental. You can keep the security deposit, but they’d like for you to return some of the rent. After you send the refund, you’ll find that the check was a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CASH FOR KEYS

What's "Cash for Keys" in a Foreclosure? If you lose your home to a foreclosure sale, the new owner might offer you a lump-sum of money to voluntarily move out. This kind of transaction is called “cash for keys.” People who go through a foreclosure can do a remarkable amount of damage to a house if they think the process was unfair or that the new owner is being unreasonable. Also, the legal process to evict someone from a foreclosed property is often costly and time-consuming. So, to incentivize the former homeowners to move out peacefully and voluntarily, the new owner—usually the bank that foreclosed—sometimes offers them a lump-sum of money. This type of transaction is called a “cash-for-keys” deal. How Cash-for-Keys Deals Work A cash-for-keys arrangement often works like this: After your legal right to live in the home ends—whether that's shortly after the sale or at the end of a redemption period—you’ll receive a letter from the new owner (usually the bank), or someone acting on the new owner's behalf, offering you a lump-sum of money. Typically, the amount will be a few hundred to a few thousand dollars. In exchange for the funds, you’ll have to agree to vacate the home by a set deadline. You’ll also have to leave the property in “broom swept” or “broom clean” condition, which means you’ve cleaned up the place, didn’t vandalize anything, didn’t leave garbage behind, and didn’t strip the home of fixtures, like appliances, lights, or copper wiring. If you move out by the deadline and leave the property in satisfactory condition, then you’ll get the money. You'll likely have to agree to a final inspection where you’ll hand over the keys and get a check. The money you get is intended to pay for your relocation costs. Your Likelihood of Getting a Cash-for-Keys Deal Cash-for-keys agreements are commonly offered following foreclosures and during evictions, and sometimes as part of a deed in lieu of foreclosure agreement. You’re more likely to get this kind of offer if the bank is the buyer at the foreclosure sale and the property becomes REO. Having a cash-for-keys policy is a standard procedure with many foreclosing banks. If a third party buys the home at the foreclosure sale and doesn’t offer you a cash-for-keys deal, you should consider proposing one. You’ll have to move out eventually anyway, and you might as well try to get some money to soften the blow. Negotiating a Cash-for-Keys Deal For the new owner, providing a cash-for-keys deal is usually faster and much cheaper than pursuing an eviction and possibly having to fix up a damaged property after the disgruntled homeowner moves out. So, if the new owner offers you money to leave, but you think it’s unfairly low, you can ask for a higher amount. Though, don’t get greedy. You shouldn't ask for more than what you reasonably believe you’ll need to relocate. If you ask for too much, the bank or another new owner might withdraw the offer. Talk to an Attorney If you’re not comfortable negotiating a cash-for-keys deal on your own—or you have questions about how long you can legally live in the property—consider talking to a foreclosure lawyer. An attorney can tell you about your options before and after a foreclosure sale, inform you about foreclosure procedures in your state, and help you work out a cash-for-keys deal to help cover your relocation

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FIRST TIME HOME BUYER MISTAKES

Buying your first home comes with many big decisions, and it can be as scary as it is exciting. It’s easy to get swept up in the whirlwind of home shopping and make mistakes that could leave you with buyer’s remorse later. If this is your first rodeo as a homebuyer or it’s been many years since you last bought a home, knowledge is power. Along with knowing what issues to avoid, it’s important to glean first-time homebuyer tips from the pros so you know what to expect and what questions to ask. First-time homebuyer mistakes Here are 14 common first-time homebuyer mistakes, along with first-time homebuyer tips on how to avoid them: Looking for a home before applying for a mortgage. Talking to only one lender. Buying more house than you can afford. Moving too fast. Draining your savings. Being careless with credit. Fixating on the house over the neighborhood. Making decisions based on emotion. Assuming you need a 20 percent down payment. Waiting for the ‘unicorn.’ Overlooking FHA, VA and USDA loans. Miscalculating the hidden costs of homeownership. Not lining up gift money. Not negotiating a home buyer rebate. 1. Looking for a home before applying for a mortgage Many first-time buyers make the mistake of viewing homes before ever getting in front of a mortgage lender. In some markets, housing inventory is still tight because there’s more buyer demand than affordable homes on the market. And in a competitive market, you could lose the property if you aren’t preapproved for a mortgage, says Alfredo Arteaga, a loan officer with Movement Mortgage in Mission Viejo, California. How this affects you: You might get behind the ball if a home hits the market you love. You also might look at homes that, realistically, you can’t afford. What to do instead: “Before you fall in love with that gorgeous dream house you’ve been eyeing, be sure to get a fully underwritten preapproval,” Arteaga says. Being preapproved sends the message that you’re a serious buyer who's credit and finances pass muster to successfully get a loan. 2. Talking to only one lender This one is a biggie. First-time buyers might get a mortgage from the first (and only) lender or bank they talk to, potentially leaving thousands of dollars on the table. “A good mortgage loan officer can look at your situation and diagnose any potential roadblocks ahead to give you a clear understanding of your home-buying options,” Arteaga says. How this affects you: The more you shop around, the better basis for comparison you’ll have to ensure you’re getting a good deal and the lowest rates possible. What to do instead: Shop around with at least three different lenders, as well as a mortgage broker. Compare rates, lender fees and loan terms. Don’t discount customer service and lender responsiveness; both play key roles in making the mortgage approval process run smoothly. 3. Buying more house than you can afford It’s easy to fall in love with homes that might stretch your budget, but overextending yourself is never a good idea. And with home prices still rising, this is easier said than done. How this affects you: Buying a home that exceeds your budget can put you at higher risk of losing your home if you fall on tough financial times. You’ll also have less wiggle room in your monthly budget for other bills and expenses. What to do instead: Focus on what monthly payment you can afford rather than fixating on the maximum loan amount you qualify for. Just because you can qualify for a $300,000 loan, that doesn’t mean you can afford the monthly payments that come with it. Factor in your other obligations that don’t show on a credit report when determining how much house you can afford. 4. Moving too fast Buying a home can be complex, particularly when you get into the weeds of the mortgage process. Rushing the process can cost you later on, says Nick Bush, a Realtor with TowerHill Realty in Rockville, Maryland. “The biggest mistake that I see (first-time buyers make) is to not plan far enough ahead for their purchase,” Bush says. How this affects you: Rushing the process means you might be unable to save enough for a down payment and closing costs, address items on your credit report or make informed decisions. What to do instead: Map out your home-buying timeline at least a year in advance. Keep in mind it can take months — even years — to repair poor credit and save enough for a sizable down payment. Work on boosting your credit score, paying down debt and saving more money to put you in a stronger position to get preapproved. 5. Draining your savings Spending all or most of their savings on the down payment and closing costs is one of the biggest first-time homebuyer mistakes, says Ed Conarchy, a mortgage planner and investment adviser at Cherry Creek Mortgage in Gurnee, Illinois. “Some people scrape all their money together to make the 20 percent down payment so they don’t have to pay for mortgage insurance, but they are picking the wrong poison because they are left with no savings at all,” Conarchy says. How this affects you: Homebuyers who put 20 percent or more down don’t have to pay for mortgage insurance when getting a conventional mortgage. That’s usually translated into substantial savings on the monthly mortgage payment. But it’s not worth the risk of living on the edge, Conarchy says. What to do instead: Aim to have three to six months of living expenses in an emergency fund. Paying mortgage insurance isn’t ideal, but depleting your emergency or retirement savings to make a large down payment is riskier. 6. Being careless with credit Lenders pull credit reports at preapproval to make sure things check out and again just before closing. They want to make sure nothing has changed in your financial picture. How this affects you: Any new loans or credit card accounts on your credit report can jeopardize the closing and final loan approval. Buyers, especially first-timers, often learn this lesson the hard way. What to do instead: Keep the status quo in your finances from preapproval to closing. Don’t open new credit cards, close existing accounts, take out new loans or make large purchases on existing credit accounts in the months leading up to applying for a mortgage through closing day. Pay down your existing balances to below 30 percent of your available credit limit, and pay your bills on time and in full every month. 7. Fixating on the house over the neighborhood Sure, you want a home that checks off the items on your wishlist and meets your needs. Being nitpicky about a home’s cosmetics, however, can be short-sighted if you wind up in a neighborhood you hate, says Alison Bernstein, president and founder of Suburban Jungle, a real estate strategy firm. “Selecting the right town is critical to your life and family development,” Bernstein says. “The goal is to find you and your brood a place where the culture and values of the (area) match yours. You can always trade up or down for a new home; add a third bathroom or renovate a basement.” How this affects you: You could wind up loving your home but hating your neighborhood. What to do instead: Ask your real estate agent to help you track down neighborhood crime stats and school ratings. Measure the drive from the neighborhood to your job to gauge commuting time and proximity to public transportation. Visit the neighborhood at different times to get a sense of traffic, neighbor interactions, and the overall vibe to see if it’s an area that appeals to you. 8. Making decisions based on emotion Buying a house is a major life milestone. It’s a place where you’ll make memories, create a space that’s truly yours, and put down roots. It’s easy to get too attached and make emotional decisions, so remember that you’re also making one of the largest investments of your life, says Ralph DiBugnara, president of Home Qualified in New York City. “With this being a strong seller’s market, a lot of first-time buyers are bidding over what they are comfortable with because it is taking them longer than usual to find homes,” DiBugnara says. How this affects you: Emotional decisions could lead to overpaying for a home and stretching your budget beyond your means. What to do instead: “Have a budget and stick to it,” DiBugnara says. “Don’t become emotionally attached to a home that is not yours.” 9. Assuming you need a 20 percent down payment The long-held belief that you must put 20 percent down payment is a myth. While a 20 percent down payment does help you avoid paying private mortgage insurance, many buyers today don’t want (or can’t) put down that much money. In fact, the median down payment on a home is 13 percent, according to the National Association of Realtors. How this affects you: Delaying your home purchase to save up 20 percent could take years, and you could limit cash flow that could be put to better use maximizing your retirement savings, adding to your emergency fund or paying down high-interest debt. What to do instead: Consider other mortgage options. You can put as little as 3 percent down for a conventional mortgage (note: you’ll pay mortgage insurance). Some government-insured loans require 3.5 percent down or zero down, in some cases. Plus, check with your local or state housing programs to see if you qualify for housing assistance programs designed for first-time buyers. 10. Waiting for the ‘unicorn’ Unicorns do not exist in real estate, and finding the perfect property is like finding a needle in a haystack. Looking for perfection can narrow your choices too much, and you might pass over solid contenders in the hopes that something better will come along. But this type of thinking can sabotage your search, says James D’Astice, a real estate agent with Compass in Chicago. How this affects you: Looking for perfection might limit your real estate search or lead to you overpaying for a home. It can also take longer to find a home. What to do instead: Keep an open mind about what’s on the market and be willing to put in some sweat equity, DiBugnara says. Some loan programs let you roll the cost of repairs into your mortgage, too, he adds. 11. Overlooking FHA, VA and USDA loans First-time buyers might be cash-strapped in this environment of rising home prices. And if you have little saved for a down payment or your credit isn’t stellar, you might have a hard time qualifying for a conventional loan. How this affects you: You might assume you have no financing options and delay your home search. What to do instead: Look into one of the three government-insured loan programs backed by the Federal Housing Administration (FHA loans), U.S. Department of Veterans Affairs (VA loans) and U.S Department of Agriculture (USDA loans). Here’s a brief overview of each: FHA loans require just 3.5 percent down with a minimum 580 credit score. FHA loans can fill the gap for borrowers who don’t have top-notch credit or little money saved up. The major drawback to these loans, though, is mandatory mortgage insurance, paid both annually and upfront at closing. VA loans are backed by the VA for eligible active-duty and veteran military service members and their spouses. These loans don’t require a down payment, but some borrowers may pay a funding fee. VA loans are offered through private lenders, and come with a cap on lender fees to keep borrowing costs affordable. USDA loans help moderate- to low-income borrowers buy homes in rural areas. You must purchase a home in a USDA-eligible area and meet certain income limits to qualify. Some USDA loans do not require a down payment for eligible borrowers with low incomes. 12. Miscalculating the hidden costs of homeownership If you had sticker shock from seeing your new monthly principal and interest payment, wait until you add up the other costs of owning a home. As a new homeowner, you’ll pay for property taxes, mortgage insurance, homeowners insurance, hazard insurance, repairs, maintenance, and utilities, to name a few. How this affects you: A Bankrate.com survey found that the average homeowner pays $2,000 annually on maintenance services. Not having enough cushion in your monthly budget — or a healthy rainy day fund — can quickly put you in the red if you’re not prepared. What to do instead: Your agent or lender can help you crunch numbers on taxes, mortgage insurance, and utility bills. Shop around for insurance coverage to get comparative quotes. Finally, aim to set aside at least 1 percent to 3 percent of the home’s purchase price annually for repairs and maintenance expenses. 13. Not lining up gift money Many loan programs allow you to use a gift from a family, friend, employer or charity toward your down payment. Not sorting who will provide this money and when, though, can throw a wrench into loan approval. How this affects you: “The time to confirm that the Bank of Mom and Dad is ready, willing and able to provide you with help for your down payment is before you start home shopping,” says Dana Scanlon, a Realtor with Keller Williams Capital Properties in Bethesda, Maryland. “If a buyer ratifies a contract to purchase a home with an understanding that they will be getting gift money, and the gift money fails to materialize, they can lose their earnest money deposit.” What to do instead: Have a frank discussion with anyone who offers money as a gift toward your down payment about how much they are offering and when you’ll receive the money. Make a copy of the check or electronic transfer showing how and when the money traded hands from the gift donor to you. Lenders will verify this through bank statements and a signed gift letter. 14. Not negotiating a homebuyer rebate The concept of homebuyer rebates, also known as commission rebates, is an obscure one to most first-time buyers. This is a rebate of up to 1 percent of the home’s sales price, and it comes out of the buyer agent’s commission, says Ben Mizes, founder and CEO of Clever Real Estate based in St. Louis. How this affects you: Homebuyer rebates are available in most U.S. states, but not all. Ten states prohibit homebuyer rebates: Alaska, Alabama, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. What to do instead: If you live in a state that allows homebuyer rebates, see if your agent is willing to provide this rebate at closing. On a $300,000 home purchase, this can be a $3,000 savings for you so it’s worth

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TENANTS IN COMMON VS. JOINT TENANCY

When two or more people own a home, either as a joint tenancy or tenancy in common, each individual owns a share (or interest) of the entire property. This means that specific areas of the house are not owned by any one individual, but instead, are shared as a whole. While joint tenants are similar to tenants in common in many ways, particularly with regard to their right of possession to a given property, there are some important differences. This article covers the basic differences between joint tenants and tenants in common. Tenancy in Common While none of the owners may claim a specific area of the property, tenants in common may have different ownership interests. For instance, Tenant A and Tenant B may each own 25 percent of the home, while Tenant C owns 50 percent. Tenancies in common also may be obtained at different times; so an individual may obtain an interest in the property years after one or more other individuals have entered into a tenancy in common ownership. Joint Tenancy Joint tenants, on the other hand, must obtain equal shares of the property with the same deed, at the same time. The terms of either a joint tenancy or tenancy in common are spelled out in the deed, title, or other legally binding property ownership document. The default ownership characterization for married couples is joint tenancy in some states, and tenancy in common in others (see Top 10 Reasons for Unmarried Partners to Own Property as Joint Tenants). A joint tenancy can be broken if one of the tenants transfers or sells his or her interest to another person, thus changing the ownership arrangement to a tenancy in common for all parties. However, a tenancy in common can be broken if one or more co-tenants buy out the others; if the property is sold and the proceeds distributed amongst the owners; or if a partition action is filed, which allows an heir to sell his or her stake. At this point, former tenants in common can choose to enter into a joint tenancy via written instrument if they so desire. This type of holding title is most common between husbands and wives and among family members in general since it allows the property to pass to the survivors without going through probate (saving time and money). Right of Survivorship One of the main differences between the two types of shared ownership is what happens to the property when one of the owners dies. When a property is owned by joint tenants, the interest of a deceased owner automatically gets transferred to the remaining surviving owners. For example, if three joint tenants own a house and one of them dies, the two remaining tenants each obtain a one-half share of the property. This is called the right of survivorship. Tenants in common have no rights of survivorship. Unless the deceased individual's will or other instrument specifies that his or her interest in the property is to be divided among the surviving owners, a deceased tenant in common's interest belongs to the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

GIFT TAX

What is the gift tax? The gift tax is a tax on the transfer of money or property to another person while getting nothing (or less than full value) in return. Many people don’t get hit with the gift tax, because the IRS generally doesn’t care about what you give away to other people unless that giving exceeds some lofty amounts. And even if it does, it might mean you just have to fill out some paperwork. How much can you gift? Two things keep the IRS’ hands out of most people’s candy dish: the $15,000 annual exclusion in 2018 and 2019, and the $11.2 million lifetime exclusion (in 2018). In 2019, the lifetime exclusion rises to $11.4 million. Stay below those and you can be generous under the radar. Go above, and you’ll have to fill out a gift tax form when filing returns — but you still might avoid having to pay any gift tax. How the annual gift tax exclusion works In 2018 and 2019, you can give up to $15,000 to someone in a year and generally not have to deal with the IRS about it. If you give more than $15,000 in cash or assets (for example, stocks, land, a new car) in a year to any one person, you need to file a gift tax return. That doesn’t mean you have to pay a gift tax. It just means you need to file IRS Form 709to disclose the gift. The annual exclusion is per recipient; it isn’t the sum total of all your gifts. That means, for example, that you can give $15,000 to your cousin, another $15,000 to a friend, another $15,000 to the neighbor, and so on all in the same year without having to file a gift tax return. The annual exclusion also is per person, which means that if you’re married, you and your spouse could give away a combined $30,000 a year to whomever without having to file a gift tax return. Gifts between spouses are unlimited and generally don’t trigger a gift tax return. Gifts to nonprofits are charitable donations, not gifts. The person receiving the gift usually doesn’t need to report the gift. How the lifetime gift tax exclusion works On top of the $15,000 annual exclusion, you get an $11.2 million lifetime exclusion (in 2019, that rises to $11.4 million). And because it’s per person, married couples can exclude double that in lifetime gifts. That comes in handy when you’re giving away more than $15,000. “Think about buckets or cups,” says Christopher Picciurro, a certified public accountant and co-founder of accounting and advisory firm Integrated Financial Group in Michigan. Any excess “spills over” into the lifetime exclusion bucket. For example, if you give your brother $50,000 this year, you’ll use up your $15,000 annual exclusion. The bad news is that you’ll need to file a gift tax return, but the good news is that you probably won’t pay a gift tax. Why? Because the extra $35,000 ($50,000 – $15,000) simply counts against your $11.2 million lifetime exclusion. Next year, if you give your brother another $50,000, the same thing happens: you use up your $15,000 annual exclusion and whittle away another $35,000 of your lifetime exclusion. “What the gift tax return does is it keeps track of that lifetime exemption,” says Julie Malekhedayat, a CPA and principal at accounting and advisory firm Abbott, Stringham and Lynch in San Jose, California. “So if you don’t gift anything during your life, then you have your whole lifetime exemption to use against your estate when you die.” The IRS generally doesn’t care about what you give away to other people unless that giving exceeds some lofty amounts. And even if it does, it might mean you just have to fill out some paperwork. What is the gift tax rate? If you’re lucky enough and generous enough to use up your exclusions, you may indeed have to pay the gift tax. The rates range from 18% to 40%, and the giver generally pays the tax. There are, of course, exceptions and special rules for calculating the tax, so see the instructions to IRS Form 709for all the details. What can trigger a gift tax return? Caring is sharing, but some situations often inadvertently trigger the need to file a gift tax return, pros say. Spoiling the grandkids with college money Picciurro explains it like this. “Let’s say Grandma and Grandpa say, ‘We don’t really like your husband and we don’t really like you, but we really like our grandkids. So we’re going to give $60,000 and we’re going to put it ina 529 plan for them so their college is paid for.’ Well, Grandma and Grandpa just triggered the gift tax exclusion because it’s over [$15,000].” A special rule allows gift-givers to spread one-time gifts across five years’ worth of gift tax returns to preserve their lifetime gift exclusion. Springing for vacations, cars or other stuff If you fork out $40,000 for Junior’s wedding, or just pay for the crazy-expensive honeymoon, get ready to do some paperwork. “Those kinds of things are actually gifts that people normally wouldn’t even think about,” Malekhedayat warns. If you’re paying tuition or medical bills, paying the school or hospital directly can help avoid the gift tax return requirement (see the instructions to IRS Form 709for details). Laid-back loans Lending money to friends and family is usually a bad idea, and the IRS can make it even worse. It considers interest-free loans as gifts, Malekhedayat says. “Or if you give them a loan and later decide they don’t need to repay the loan to you, that’s also making gifts,” she warns. Elbowing in on a non-spouse bank account “Let’s say you live by Grandma, so for convenience, we’re going to put you on Grandma’s bank account. Guess what just happened?” Picciurro says. “If you’re put as a joint [owner] on a bank account with somebody and you have the right to take the money out at any time, essentially Grandma is giving you a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

BLOCKCHAIN TECHNOLOGY

What is Blockchain? If this technology is so complex, why call it “blockchain?” At its most basic level, blockchain is literally just a chain of blocks, but not in the traditional sense of those words. When we say the words “block” and “chain” in this context, we are actually talking about digital information (the “block”) stored in a public database (the “chain”). “Blocks” on the blockchain are made up of digital pieces of information. Specifically, they have three parts: Blocks store information about transactions like the date, time, and dollar amount of your most recent purchase from Amazon. (NOTE: This Amazon example is for illustrative purchases; Amazon retail does not work on a blockchain principle) Blocks store information about who is participating in transactions. A block for your splurge purchase from Amazon would record your name along with Amazon.com, Inc. Instead of using your actual name, your purchase is recorded without any identifying information using a unique “digital signature,” sort of like a username. Blocks store information that distinguishes them from other blocks. Much like you and I have names to distinguish us from one another, each block stores a unique code called a “hash” that allows us to tell it apart from every other block. Let’s say you made your splurge purchase on Amazon, but while it’s in transit, you decide you just can’t resist and need a second one. Even though the details of your new transaction would look nearly identical to your earlier purchase, we can still tell the blocks apart because of their unique codes. While the block in the example above is being used to store a single purchase from Amazon, the reality is a little different. A single block on the blockchain can actually store up to 1 MB of data. Depending on the size of the transactions, that means a single block can house a few thousand transactions under one roof. How Blockchain Works When a block stores new data it is added to the blockchain. Blockchain, as its name suggests, consists of multiple blocks strung together. In order for a block to be added to the blockchain, however, four things must happen: A transaction must occur. Let’s continue with the example of your impulsive Amazon purchase. After hastily clicking through multiple checkout prompt, you go against your better judgment and make a purchase. That transaction must be verified. After making that purchase, your transaction must be verified. With other public records of information, like the Securities Exchange Commission, Wikipedia, or your local library, there’s someone in charge of vetting new data entries. With blockchain, however, that job is left up to a network of computers. These networks often consist of thousands (or in the case of Bitcoin, about 5 million) computers spread across the globe. When you make your purchase from Amazon, that network of computers rushes to check that your transaction happened in the way you said it did. That is, they confirm the details of the purchase, including the transaction’s time, dollar amount, and participants. (More on how this happens in a second.) That transaction must be stored in a block. After your transaction has been verified as accurate, it gets the green light. The transaction’s dollar amount, your digital signature, and Amazon’s digital signature are all stored in a block. There, the transaction will likely join hundreds, or thousands, of others like it. That block must be given a hash. Not unlike an angel earning its wings, once all of a block’s transactions have been verified, it must be given a unique, identifying code called a hash. The block is also given the hash of the most recent block added to the blockchain. Once hashed, the block can be added to the blockchain. When that new block is added to the blockchain, it becomes publicly available for anyone to view — even you. If you take a look at Bitcoin’s blockchain, you will see that you have access to transaction data, along with information about when (“Time”), where (“Height”), and by who (“Relayed By”) the block was added to the blockchain. Is Blockchain Private? Anyone can view the contents of the blockchain, but users can also opt to connect their computers to the blockchain network. In doing so, their computer receives a copy of the blockchain that is updated automatically whenever a new block is added, sort of like a Facebook News Feed that gives a live update whenever a new status is posted. Each computer in the blockchain network has its own copy of the blockchain, which means that there are thousands, or in the case of Bitcoin, millions of copies of the same blockchain. Although each copy of the blockchain is identical, spreading that information across a network of computers makes the information more difficult to manipulate. With blockchain, there isn’t a single, definitive account of events that can be manipulated. Instead, a hacker would need to manipulate every copy of the blockchain on the network. Looking over the Bitcoin blockchain, however, you will notice that you do not have access to identifying information about the users making transactions. Although transactions on the blockchain are not completely anonymous, personal information about users is limited to their digital signature or username. This raises an important question: if you cannot know who is adding blocks to the blockchain, how can you trust blockchain or the network of computers upholding it? Is Blockchain Secure? Blockchain technology accounts for the issues of security and trust in several ways. First, new blocks are always stored linearly and chronologically. That is, they are always added to the “end” of the blockchain. If you take a look at Bitcoin’s blockchain, you’ll see that each block has a position on the chain, called a “height.” As of February 2019, the block’s height had topped 562,000. After a block has been added to the end of the blockchain, it is very difficult to go back and alter the contents of the block. That’s because each block contains its own hash, along with the hash of the block before it. Hash codes are created by a math function that turns digital information into a string of numbers and letters. If that information is edited in any way, the hash code changes as well. Here’s why that’s important to security. Let’s say a hacker attempts to edit your transaction from Amazon so that you actually have to pay for your purchase twice. As soon as they edit the dollar amount of your transaction, the block’s hash will change. The next block in the chain will still contain the old hash, and the hacker would need to update that block in order to cover their tracks. However, doing so would change that block’s hash. And the next, and so on. In order to change a single block, then, a hacker would need to change every single block after it on the blockchain. Recalculating all those hashes would take an enormous and improbable amount of computing power. In other words, once a block is added to the blockchain it becomes very difficult to edit and impossible to delete. To address the issue of trust, blockchain networks have implemented tests for computers that want to join and add blocks to the chain. The tests, called “consensus models,” require users to “prove” themselves before they can participate in a blockchain network. One of the most common examples employed by Bitcoin is called “proof of work.” In the proof of work system, computers must “prove” that they have done “work” by solving a complex computational math problem. If a computer solves one of these problems, they become eligible to add a block to the blockchain. But the process of adding blocks to the blockchain, what the cryptocurrency world calls “mining,” is not easy. In fact, according to the blockchain news site BlockExplorer, the odds of solving one of these problems on the Bitcoin network were about 1 in 5.8 trillion in February 2019. To solve complex math problems at those odds, computers must run programs that cost them significant amounts of power and energy (read: money). Proof of work does not make attacks by hackers impossible, but it does make them somewhat useless. If a hacker wanted to coordinate an attack on the blockchain, they would need to solve complex computational math problems at 1 in 5.8 trillion odds just like everyone else. The cost of organizing such an attack would almost certainly outweigh the benefits. Blockchain vs. Bitcoin The goal of blockchain is to allow digital information to be recorded and distributed, but not edited. That concept can be difficult to wrap our heads around without seeing the technology in action, so let’s take a look at how the earliest application of blockchain technology actually works. Blockchain technology was first outlined in 1991 by Stuart Haber and W. Scott Stornetta, two researchers who wanted to implement a system where document timestamps could not be tampered with. But it wasn’t until almost two decades later, with the launch of Bitcoin in January 2009, that blockchain had its first real-world application. The Bitcoin protocol is built on the blockchain. In a research paper introducing the digital currency, Bitcoin’s pseudonymous creator Satoshi Nakamoto referred to it as “a new electronic cash system that’s fully peer-to-peer, with no trusted third party.” Here’s how it works. You have all these people, all over the world, who have Bitcoin. According to a 2017 study by the Cambridge Centre for Alternative Finance, the number may be as many as 5.9 million. Let’s say one of those 5.9 million people wants to spend their Bitcoin on groceries. This is where the blockchain comes in. When it comes to printed money, the use of printed currency is regulated and verified by a central authority, usually a bank or government — but Bitcoin is not controlled by anyone. Instead, transactions made in Bitcoin are verified by a network of computers. When one person pays another for goods using Bitcoin, computers on the Bitcoin network race to verify the transaction. In order to do so, users run a program on their computers and try to solve a complex mathematical problem, called a “hash.” When a computer solves the problem by “hashing” a block, its algorithmic work will have also verified the block’s transactions. The completed transaction is publicly recorded and stored as a block on the blockchain, at which point it becomes unalterable. In the case of Bitcoin, and most other blockchains, computers that successfully verify blocks are rewarded for their labor with cryptocurrency. (For a more detailed explanation of verification, see: What is Bitcoin Mining?) Although transactions are publicly recorded on the blockchain, user data is not — or, at least not in full. In order to conduct transactions on the Bitcoin network, participants must run a program called a “wallet.” Each wallet consists of two unique and distinct cryptographic keys: a public key and a private key. The public key is the location where transactions are deposited to and withdrawn from. This is also the key that appears on the blockchain ledger as the user’s digital signature. Even if a user receives a payment in Bitcoins to their public key, they will not be able to withdraw them with the private counterpart. A user’s public key is a shortened version of their private key, created through a complicated mathematical algorithm. However, due to the complexity of this equation, it is almost impossible to reverse the process and generate a private key from a public key. For this reason, blockchain technology is considered confidential. Public and Private Key Basics Here’s the ELI5—“Explain it Like I’m 5”—version. You can think of a public key as a school locker and the private key as the locker combination. Teachers, students, and even your crush can insert letters and notes through the opening in your locker. However, the only person that can retrieve the contents of the mailbox is the one that has the unique key. It should be noted, however, that while school locker combinations are kept in the principal’s office, there is no central database that keeps track of a blockchain network’s private keys. If a user misplaces their private key, they will lose access to their Bitcoin wallet, as was the case with this man who made national headlines in December of 2017. A Single Public Chain In the Bitcoin network, the blockchain is not only shared and maintained by a public network of users—but it is also agreed upon. When users join the network, their connected computer receives a copy of the blockchain that is updated whenever a new block of transactions is added. But what if, through human error or the efforts of a hacker, one user’s copy of the blockchain manipulated to be different from every other copy of the blockchain? The blockchain protocol discourages the existence of multiple blockchains through a process called “consensus.” In the presence of multiple, differing copies of the blockchain, the consensus protocol will adopt the longest chain available. More users on a blockchain mean that blocks can be added to the end of the chain quicker. By that logic, the blockchain of record will always be the one that most users trust. The consensus protocol is one of blockchain technology’s greatest strengths but also allows for one of its greatest weaknesses. Theoretically, Hacker-Proof Theoretically, it is possible for a hacker to take advantage of the majority rule in what is referred to as a 51% attack. Here’s how it would happen. Let’s say that there are 5 million computers on the Bitcoin network, a gross understatement for sure but an easy enough number to divide. In order to achieve a majority on the network, a hacker would need to control at least 2.5 million and one of those computers. In doing so, an attacker or group of attackers could interfere with the process of recording new transactions. They could send a transaction — and then reverse it, making it appear as though they still had the coin they just spent. This vulnerability, known as double-spending, is the digital equivalent of a perfect counterfeit and would enable users to spend their Bitcoins twice. Such an attack is extremely difficult to execute for a blockchain of Bitcoin’s scale, as it would require an attacker to gain control of millions of computers. When Bitcoin was first founded in 2009 and its users numbered in the dozens, it would have been easier for an attacker to control a majority of computational power in the network. This defining characteristic of blockchain has been flagged as one weakness for fledgling cryptocurrencies. User fear of 51% attacks can actually limit monopolies from forming on the blockchain. In “Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money,” New York Times journalist Nathaniel Popper writes of how a group of users, called “Bitfury,” pooled thousands of high-powered computers together to gain a competitive edge on the blockchain. Their goal was to mine as many blocks as possible and earn bitcoin, which at the time were valued at approximately $700 each. Harnessing Bitfury By March 2014, however, Bitfury was positioned to exceed 50% of the blockchain network’s total computational power. Instead of continuing to increase its hold over the network, the group elected to self-regulate itself and vowed never to go above 40%. Bitfury knew that if they chose to continue increasing their control over the network, bitcoin’s value would fall as users sold off their coins in preparation for the possibility of a 51% attack. In other words, if users lose their faith in the blockchain network, the information on that network risks becoming completely worthless. Blockchain users, then, can only increase their computational power to a point before they begin to lose money. Blockchain's Practical Application Blocks on the blockchain store data about monetary transactions — we’ve got that out of the way. But it turns out that blockchain is actually a pretty reliable way of storing data about other types of transactions, as well. In fact, blockchain technology can be used to store data about property exchanges, stops in a supply chain, and even votes for a candidate. Professional services network Deloitte recently surveyed 1,000 companies across seven countries about integrating blockchain into their business operations. Their survey found that 34% already had a blockchain system in production today, while another 41% expected to deploy a blockchain application within the next 12 months. In addition, nearly 40% of the surveyed companies reported they would invest $5 million or more in blockchain in the coming year. Here are some of the most popular applications of blockchain being explored today. Bank Use Perhaps no industry stands to benefit from integrating blockchain into its business operations more than banking. Financial institutions only operate during business hours, five days a week. That means if you try to deposit a check on Friday at 6 p.m., you likely will have to wait until Monday morning to see that money hit your account. Even if you do make your deposit during business hours, the transaction can still take 1-3 days to verify due to the sheer volume of transactions that banks need to settle. Blockchain, on the other hand, never sleeps. By integrating blockchain into banks, consumers can see their transactions processed in as little as 10 minutes, basically the time it takes to add a block to the blockchain, regardless of the time or day of the week. With blockchain, banks also have the opportunity to exchange funds between institutions more quickly and securely. In the stock trading business, for example, the settlement and clearing process can take up to three days (or longer, if banks are trading internationally), meaning that the money and shares are frozen for that time. Given the size of the sums involved, even the few days that the money is in transit can carry significant costs and risks for banks. Santander, a European bank, put the potential savings at $20 billion a year. Capgemini, a French consultancy, estimates that consumers could save up to $16 billion in banking and insurance fees each year through blockchain-based applications. Use in Cryptocurrency Blockchain forms the bedrock for cryptocurrencies like Bitcoin. As we explored earlier, currencies like the U.S. dollar are regulated and verified by a central authority, usually a bank or government. Under the central authority system, a user’s data and currency are technically at the whim of their bank or government. If a user’s bank collapses or they live in a country with an unstable government, the value of their currency may be at risk. These are the worries out of which Bitcoin was borne. By spreading its operations across a network of computers, blockchain allows Bitcoin and other cryptocurrencies to operate without the need for a central authority. This not only reduces risk but also eliminates many of the processing and transaction fees. It also gives those in countries with unstable currencies a more stable currency with more applications and a wider network of individuals and institutions they can do business with, both domestically and internationally (at least, this is the goal.) Healthcare Uses Health care providers can leverage blockchain to securely store their patients’ medical records. When a medical record is generated and signed, it can be written into the blockchain, which provides patients with the proof and confidence that the record cannot be changed. These personal health records could be encoded and stored on the blockchain with a private key, so that they are only accessible by certain individuals, thereby ensuring privacy Property Records Use If you have ever spent time in your local Recorder’s Office, you will know that the process of recording property rights is both burdensome and inefficient. Today, a physical deed must be delivered to a government employee at the local recording office, where is it manually entered into the county’s central database and public index. In the case of a property dispute, claims to the property must be reconciled with the public index. This process is not just costly and time-consuming—it is also riddled with human error, where each inaccuracy makes tracking property ownership less efficient. Blockchain has the potential to eliminate the need for scanning documents and tracking down physical files in a local recording office. If property ownership is stored and verified on the blockchain, owners can trust that their deed is accurate and permanent. Use in Smart Contracts A smart contract is a computer code that can be built into the blockchain to facilitate, verify, or negotiate a contract agreement. Smart contracts operate under a set of conditions that users agree to. When those conditions are met, the terms of the agreement are automatically carried out. Say, for example, I’m renting you my apartment using a smart contract. I agree to give you the door code to the apartment as soon as you pay me your security deposit. Both of us would send our portion of the deal to the smart contract, which would hold onto and automatically exchange my door code for your security deposit on the date of the rental. If I don’t supply the door code by the rental date, the smart contract refunds your security deposit. This eliminates the fees that typically accompany using a notary or third-party mediator. Supply Chain Use Suppliers can use blockchain to record the origins of materials that they have purchased. This would allow companies to verify the authenticity of their products, along with health and ethics labels like “Organic,” “Local,” and “Fair Trade.” As reported by Forbes the food industry is moving into the use of blockchain to increasingly track the path and safety of food throughout the farm-to-user journey. Uses in Voting Voting with blockchain carries the potential to eliminate election fraud and boost voter turnout, as was tested in the November 2018 midterm elections in West Virginia. Each vote would be stored as a block on the blockchain, making them nearly impossible to tamper with. The blockchain protocol would also maintain transparency in the electoral process, reducing the personnel needed to conduct an election and provide officials with instant results. Advantages and Disadvantages of Blockchain For all its complexity, blockchain’s potential as a decentralized form of record-keeping is almost without limit. From greater user privacy and heightened security to lower processing fees and fewer errors, blockchain technology may very well see applications beyond those outlined above. Pros Improved accuracy by removing human involvement in verification Cost reductions by eliminating third-party verification Decentralization makes it harder to tamper with Transactions are secure, private and efficient Transparent technology Cons Significant technology cost associated with mining bitcoin Low transactions per second History of use in illicit activities Susceptibility to being hacked Here are the selling points of blockchain for businesses on the market today in more detail. Accuracy of the Chain Transactions on the blockchain network are approved by a network of thousands or millions of computers. This removes almost all human involvement in the verification process, resulting in less human error and a more accurate record of information. Even if a computer on the network were to make a computational mistake, the error would only be made to one copy of the blockchain. In order for that error to spread to the rest of the blockchain, it would need to be made by at least 51% of the network’s computers — a near impossibility. Cost Reductions Typically, consumers pay a bank to verify a transaction, a notary to sign a document, or a minister to perform a marriage. Blockchain eliminates the need for third-party verification and, with it, their associated costs. Business owners incur a small fee whenever they accept payments using credit cards, for example, because banks have to process those transactions. Bitcoin, on the other hand, does not have a central authority and has virtually no transaction fees. Decentralization Blockchain does not store any of its information in a central location. Instead, the blockchain is copied and spread across a network of computers. Whenever a new block is added to the blockchain, every computer on the network updates its blockchain to reflect the change. By spreading that information across a network, rather than storing it in one central database, blockchain becomes more difficult to tamper with. If a copy of the blockchain fell into the hands of a hacker, only a single copy of the information, rather than the entire network, would be compromised. Efficient Transactions Transactions placed through a central authority can take up to a few days to settle. If you attempt to deposit a check on Friday evening, for example, you may not actually see funds in your account until Monday morning. Whereas financial institutions operate during business hours, five days a week, blockchain is working 24 hours a day, seven days a week. Transactions can be completed in about ten minutes and can be considered secure after just a few hours. This is particularly useful for cross-border trades, which usually take much longer because of time-zone issues and the fact that all parties must confirm payment processing. Private Transactions Many blockchain networks operate as public databases, meaning that anyone with an internet connection can view a list of the network’s transaction history. Although users can access details about transactions, they cannot access identifying information about the users making those transactions. It is a common misperception that blockchain networks like bitcoin are anonymous, when in fact they are only confidential. That is, when a user makes public transactions, their unique code called a public key, is recorded on the blockchain, rather than their personal information. Although a person’s identity is still linked to their blockchain address, this prevents hackers from obtaining a user’s personal information, as can occur when a bank is hacked. Secure Transactions Once a transaction is recorded, its authenticity must be verified by the blockchain network. Thousands or even millions of computers on the blockchain rush to confirm that the details of the purchase are correct. After a computer has validated the transaction, it is added to the blockchain in the form of a block. Each block on the blockchain contains its own unique hash, along with the unique hash of the block before it. When the information on a block is edited in any way, that block’s hash code changes — however, the hash code on the block after it would not. This discrepancy makes it extremely difficult for information on the blockchain to be changed without notice. Transparency Even though personal information on the blockchain is kept private, the technology itself is almost always open source. That means that users on the blockchain network can modify the code as they see fit, so long as they have a majority of the network’s computational power backing them. Keeping data on the blockchain open source also makes tampering with data that much more difficult. With millions of computers on the blockchain network at any given time, for example, it is unlikely that anyone could make a change without being noticed. Disadvantages of Blockchain While there are significant upsides to the blockchain, there are also significant challenges to its adoption. The roadblocks to the application of blockchain technology today are not just technical. The real challenges are political and regulatory, for the most part, to say nothing of the thousands of hours (read: money) of custom software design and back-end programming required to integrate blockchain to current business networks. Here are some of the challenges standing in the way of widespread blockchain adoption. Technology Cost Although blockchain can save users money on transaction fees, the technology is far from free. The “proof of work” system that bitcoin uses to validate transactions, for example, consumes vast amounts of computational power. In the real world, the power from the millions of computers on the bitcoin network is close to what Denmark consumes annually. All of that energy costs money and according to a recent study from research company Elite Fixtures, the cost of mining a single bitcoin varies drastically by location, from just $531 to a staggering $26,170. Based on average utility costs in the United States, that figure is closer to $4,758. Despite the costs of mining bitcoin, users continue to drive up their electricity bills in order to validate transactions on the blockchain. That’s because when miners add a block to the bitcoin blockchain, they are rewarded with enough bitcoin to make their time and energy worthwhile. When it comes to blockchains that do not use cryptocurrency, however, miners will need to be paid or otherwise incentivized to validate transactions. Speed Inefficiency Bitcoin is a perfect case study for the possible inefficiencies of blockchain. Bitcoin’s “proof of work” system takes about ten minutes to add a new block to the blockchain. At that rate, it’s estimated that the blockchain network can only manage seven transactions per second (TPS). Although other cryptocurrencies like Ethereum (20 TPS) and Bitcoin Cash (60 TPS) perform better than bitcoin, they are still limited by blockchain. Legacy brand Visa, for context, can process 24,000 TPS. Illegal Activity While confidentiality on the blockchain network protects users from hacks and preserves privacy, it also allows for illegal trading and activity on the blockchain network. The most cited example of blockchain being used for illicit transactions is probably Silk Road, an online “dark web” marketplace operating from February 2011 until October 2013 when it was shut down by the FBI. The website allowed users to browse the website without being tracked and make illegal purchases in bitcoins. Current U.S. regulation prevents users of online exchanges, like those built on blockchain, from full anonymity. In the United States, online exchanges must obtain information about their customers when they open an account, verify the identity of each customer, and confirm that customers do not appear on any list of known or suspected terrorist organizations. Central Bank Concerns Several central banks, including the Federal Reserve, the Bank of Canada and the Bank of England, have launched investigations into digital currencies. According to a February 2015 Bank of England research report, “Further research would also be required to devise a system which could utilize distributed ledger technology without compromising a central bank’s ability to control its currency and secure the system against systemic attack.” Hack Susceptibility Newer cryptocurrencies and blockchain networks are susceptible to 51% attacks. These attacks are extremely difficult to execute due to the computational power required to gain majority control of a blockchain network, but NYU computer science researcher Joseph Bonneau said that might change. Bonneau released a report last year estimating that 51% attacks were likely to increase, as hackers can now simply rent computational power, rather than buying all of the equipment. What's Next for Blockchain? First proposed as a research project in 1991, blockchain is comfortably settling into its late twenties. Like most millennials its age, blockchain has seen its fair share of public scrutiny over the last two decades, with businesses around the world speculating about what the technology is capable of and where it’s headed in the years to come. With many practical applications for the technology already being implemented and explored, blockchain is finally making a name for itself at age twenty-seven, in no small part because of bitcoin and cryptocurrency. As a buzzword on the tongue of every investor in the nation, blockchain stands to make business and government operations more accurate, efficient, and secure. As we prepare to head into the third decade of blockchain, it’s no longer a question of "if" legacy companies will catch on to the technology — it's a question of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

9 TOP REAL ESTATE SOCIAL MEDIA PLATFORMS

Social media marketing is an important part of any real estate business. It’s crucial to share the right type of content in the right ways to generate leads and increase potential sales. At the same time, it’s not just about what you share but where you share it. Here are 9 social media platforms and how they can help you up your digital real estate marketing game. Facebook The big daddy of social media, Facebook has a massive user base as well as built-in marketing tools for targeting neighborhoods and demographics. While organic reach has been limited in order to promote its paid advertising options, Facebook is still an excellent place to run social media content. Instagram Image and video content has traditionally been a popular way to generate attention, and Instagram is the biggest and most well-known site with such a focus. Sharing on this platform is a great choice when it comes to using attractive visual elements, either as a standalone post or as part of other content such as a blog post. Make sure to hashtag appropriately! Twitter The happy medium between Facebook and Instagram, Twitter is perfect for sharing all types of content. Twitter is ideal for short posts, thanks to its character limit, is great for sharing images and videos and perfect for linking to content from an outside source. Hashtags are even more important on Twitter than they are on Instagram, so be on your game. LinkedIn If you want your real estate business to be taken seriously, it’s imperative that you have a LinkedIn account associated with your offices. This professional social media platform is ideally used for networking and job searching but is a fertile ground for posting high-quality content related to your real estate business. Doing so can help establish your realty company as a professional brand. Trulia Trulia isn’t strictly a social media platform — it’s more of an MLS listing site — but theTruliaVoices section of the website allows interaction with community members. Establishing yourself as an authority on Trulia Voices by answering questions about the home buying process will build trust within that community, thus making it more likely your real estate practice will be remembered in a positive light. That kind of social capital can be invaluable. Zillow Zillow shares many similarities with Trulia. As such, Zillow’s Discussions forum is yet another place where you can boost your brand awareness and authority by answering questions and providing support. This makes it important to maintain a presence on Zillow as well as Trulia in equal measure — you shouldn’t do one without the other. ActiveRain Like LinkedIn but specifically for real estate professionals, ActiveRain is another great networking member site that offers excellent social media opportunities. In addition, ActiveRain is a solid source for digital support structures for your real estate business, as members offer advice. A unique referral system also provides additional functionality. MeetUp Not as formal as LinkedIn and with a more local bent, theMeetUpsocial media site can help you network with colleagues and professionals. You can interact with local prospective home buyers and share content relevant to your neighborhood or chosen locale. NextDoor NextDoor is all about building solidarity in your neighborhood. Centered around street-level communities, NextDoor is great for building a positive reputation on your block where your offices are located. From sharing recipes to asking for landscaping tips, NextDoor members interact on an intimate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TITLE INSURANCE

What Is Title Insurance And Why Is It Important? The median home value in the United States has increased by $16,000 over the last 12 months, according to data released by Zillow. But home values are not the only items enjoying growth. Title insurance, a $15 billion industry, is also forecasted to continue growing through 2020. It’s clear more homeowners are electing to choose title insurance, and you too should understand the fundamentals and importance of title insurance for your home purchase. What is title insurance? Traditional insurance policies protect insureds against future losses. For example, a car insurance policy will protect the driver from future accidents, and a health insurance policy will protect an insured from future health problems. However, title insurance is different because it protects insureds against claims for past occurrences. Who does title insurance protect? Two different types of title insurance exist. A real estate owner can choose to purchase title insurance and lenders can elect to do so as well. Lenders will require title insurance by mortgagors in order to secure their security interest in the property. Furthermore, a property owner will purchase title insurance to protect their investment in their property. What type of protection does title insurance provide? Title insurance will require an extensive title search of the property. This search will minimize the potential liability to the property owners by discovering any foreseeable title issues. However, once a property owner purchases and takes possession of a property, title insurance will defend against any litigation that challenges the validity and legality of the new property owner. How much does title insurance cost? Unlike traditional insurance companies where monthly payments are required, title insurance only requires a one-time payment. This insurance will vary according to the price on your home and according to the state that you will purchase a home. On average, a title insurance policy for a homeowner costs $834 and for the lender, it will cost $544. Is this expense really necessary? The reality is that title insurance has protected a large number of insureds, but it really hasn’t proportionality paid out that many claims. An estimated 4-5% of title insureds have been paid on their policy. However, these problems protected by the claims were unlikely to be detected by an ordinary purchaser. Only title insurance would protect the homeowner purchasers. What specific claims does title insurance cover? These claims include certain errors that were made in inputting information into the public record. A title examiner will assess the title by analyzing the chain of ownership of the house. They will ensure that the property passed either by sale, through a will, or maybe even in a gift to the correct and intended person. Additionally, a title check will ensure there are no current legal claims against the house, including encumbrances such as liens, mortgages or any existence that makes the title not able to be transferred. Read more about specific title insurance claims here. The short end is that a title policy protects that small group that has a problem. Title insurance is a valuable protection for home purchasers since this group really has no way of detecting the problem before it arises. To be safe, it is worth to spend the average cost of $834 for title

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

NON DISCLOSURE AGREEMENTS

In business, there are numerous instances in which you may want to share confidential information with another party. But the key to doing so safely is making sure that the other party is bound to respect the confidential information you provide them and not use it to your detriment. One common way to protect the secrecy of confidential information given to another party is through the use of a Non-Disclosure Agreement, which is sometimes also referred to as a “Confidentiality Agreement” or “NDA.” In this article, I will explain when it makes sense to have a Non-Disclosure Agreement as well as the key terms that agreement must include. When Does a Non-Disclosure Agreement Make Sense? When does it make sense to require another party to sign a Non-Disclosure Agreement? There are probably many instances where it may be appropriate. But the principal situations are those in which you wish to convey something valuable about your business or idea, but still, want to ensure that the other side doesn’t steal the information or use it without your approval. Here are some typical situations where you may want to use a Non-Disclosure Agreement: Presenting an invention or business idea to a potential partner, investor, or distributor Sharing financial, marketing, and other information with a prospective buyer of your business Showing a new product or technology to a prospective buyer or licensee Receiving services from a company or individual who may have access to some sensitive information in providing those services Allowing employees access to confidential and proprietary information of your business during the course of their job Non-Disclosure Agreements probably don’t make sense for start-ups trying to raise funding from venture capital investors, as most venture capitalists will refuse to sign such agreements. Mutual vs. Non-Mutual NDAs Non-Disclosure Agreements come in two basic formats: a mutual agreement or a one-sided agreement. The one-sided agreement is when you are contemplating that only one side will be sharing confidential information with the other side. The mutual NDA form is for situations where each side may potentially share confidential information. Although there is always some appeal to using a mutual form of NDA, I really shy away from the mutual form if I’m not planning to receive confidential information from the other side. One way to decide this early on is to let the other side know that you don’t want to receive any of their confidential information, so you don’t see the need for a mutual form if they ask for one. Sample forms of NDAs can be found in the Forms and Agreements section of AllBusiness.com. The Key Elements of Non-Disclosure Agreements Non-Disclosure Agreements don’t have to be long and complicated. In fact, the good ones usually don’t run more than a few pages long. The key elements of Non-Disclosure Agreements: Identification of the parties Definition of what is deemed to be confidential The scope of the confidentiality obligation by the receiving party The exclusions from confidential treatment The term of the agreement The Parties to the Agreement The parties to the agreement are usually a straightforward description set forth at the beginning of the contract. If it’s an agreement where only one side is providing confidential information, then the disclosing party can be referred to as the disclosing party and the recipient of the information can simply be referred to as the recipient. The one tricky part here is to think about whether any other people or companies may also be a party to the agreement. Does the recipient expect to show confidential information to a related or affiliated company? To a partner? To an agent? If so, the NDA should also cover those third parties. What Is Deemed Confidential? This section of the NDA deals with defining what confidential information means. Is it any information? Is it information that is only marked in writing as “confidential”? Can oral information conveyed be deemed confidential? On one hand, the disclosing party wants this definition of confidential information to be as broad as possible to make sure the other side doesn’t find a loophole and start using its valuable secrets. On the other hand, if you are the recipient of the information, you have a legitimate desire to make sure that the information that you are supposed to keep secret is clearly identified so that you know what you can and can’t use. Oral information, in particular, can be tricky to deal with. Some recipients of information insist that only information conveyed in writing need to be kept confidential. And, of course, the party giving oral information may say that that is too narrow. The usual compromise is that oral information can be deemed confidential information, but the disclosing party has to confirm to the other side in writing sometime shortly after it has disclosed so that the receiving party is now on notice as to what oral statements are deemed confidential. Scope of the Confidentiality Obligation The core of the Non-Disclosure Agreement is a two-part obligation on the receiver of the information: to keep the confidential information in fact confidential and not use the confidential information itself. So the first part is that the recipient of the confidential information has to keep it secret. And this usually means that the recipient has to take reasonable steps to not let others have access to it. For example, reasonable steps could include that only a few people within the recipient’s company have access to the information and they are all informed of the nature of the confidentiality restrictions. The second part is also crucial—that recipients can’t use the information themselves. After all, the last thing you want is for them to take your great idea or mailing list and make a bizillion dollars from it. If the scope of the NDA is broad enough, then you can sue for damages or to stop the recipients if they breach either their confidentiality obligations or their non-use agreement. Exclusions from Confidentiality Treatment Every NDA has certain exclusions from the obligations of the receiving party. These exclusions are intended to address situations where it would be unfair or too burdensome for the other side to keep the information confidential. The common exclusions include information that is Already known to the recipient Already publicly known (as long as the recipient didn’t wrongfully release it to the public) Independently developed by the recipient without reference to or use of the confidential information of the disclosing party disclosed to the recipient by some other party who has no duty of the confidentiality to the disclosing party The NDA can also deal with the situation in which the recipient of the information is forced to disclose the information through a legal process. The recipient should be allowed to do that if forced by court order without breaching the NDA as long as the recipient has warned the disclosing party in advance of the legal proceeding. Term of the Agreement How long should the NDA last? Some attorneys may argue that the NDA should last forever. Why should someone have the right to use your confidential information at any time? But if you are the recipient of the confidential information, you probably want to insist on a definite term when the agreement ends. After all, most information after a certain number of years becomes useless anyway, and the cost of policing confidentiality obligations can become expensive if it’s a “forever” obligation. So if you agree to a term, what is reasonable? Well, it really depends on the industry you are in and the type of information conveyed. In some businesses, a few years may be acceptable because the technology may change so fast as to render the information pretty much worthless. Most agreements that I see (if they have a term) have a time limit of two to five years. But your NDA also needs to say that, even if the term is ended, the disclosing party isn’t giving up any other rights that it may have under copyright, patent, or other intellectual property laws. More Provisions That May Make Sense for the NDA You may also want to add some other bells and whistles to your NDA to protect your company from further issues, depending on your situation. Here are some ideas: Employee Solicitation. If the recipient has significant access to your employees, you may want to insert a clause that prevents the recipient from soliciting or hiring your employees for 12-24 months. The other side may sometimes agree to that, with some carve-outs. For example, the recipient may want the limitation to apply only to those employees that they have come into contact with during their review of information or interviews. Jurisdiction in case of a dispute. If you are the disclosing party, you want to make sure that if there is any dispute as to whether the other side has lived up to its obligations, the dispute will be handled exclusively in your city. You don’t want to have to travel far away and incur additional costs to enforce your NDA. Injunction. Make sure that you have a clause that gives you the right to injunctive relief to stop the other side from breaching the agreement. This clause simply says that you can get a court order stopping the other party from doing the breaching act (as opposed to just getting money damages after it’s too late). No rights in the receiving party. It’s sometimes helpful to have a clause that says that just because you are going to share confidential information with them, the other side doesn’t get any rights to your ideas or even a right to enter into a deal with

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

RELOCATION EXPENSE REIMBURSEMENT

Relocation expenses are sometimes paid by employers. If they are, does a departing employee (that is, one who is quitting or resigning) have to repay them? The answer is, it depends on whether there was a written employment contract or relocation agreement requiring their repayment and, if so, what the contract or agreement says. If there was no contractual agreement to repay, you would not have to reimburse the employer for the relocation costs. Only if you contractually agreed to repay these expenses would you be required to (This is a very slight oversimplification: if it can be shown that the employee never intended to work for the employer but only took the job and/or transfer as the way to get them to pay for a move, then the employee may have committed fraud and may be liable to repay, even without a written agreement. But this is a very rare circumstance, and would require compelling evidence, such as employee quitting almost right away after the move was made.) If there was a contract requiring reimbursement of relocation expense, such an agreement is valid and enforceable. They have been repeatedly upheld by courts. Like any other contract, it is governed by its plain terms; so, if an employee agreed to repay if he or she left employment before, say, one year, then if the employee does leave employment before one year, he or she will have to repay. If he or she gave notice at one year and one week, he or she would not. Whatever the contract says, goes. Some people believe that if they have a good reason for quitting—a medical issue, a family emergency, quality of life, a job that turned out other than what they thought or were told it would be, work stress (even stress to the point of causing health issues)—then they can resign early without repaying. However, that is not the case. First, under contract law, you can only terminate or get out of an agreement for fraud or if the other side breaches or violates the agreement in some material, or important, way. (Again, a slight oversimplification, but this will cover 99%+ of situations.) You cannot use your own concerns or issues to get out of an agreement since if you could, no contract would ever be binding. Anyone could get out of a contract at will by citing whatever personal, health, financial, family, etc. reasons exist that make the contract a bad idea for them. Since allowing someone to escape a contract due to their own issues or problems would make contracts unenforceable, the law does not allow this. Your own issues are your issues or concerns, not the other party’s (i.e., not your employer’s) and will not let you out of your repayment obligations. Second, under “employment at will”—which is the law of the land in regards to employment—there is no right to a job. Your employer does not have to employ you or make your job a reasonable or worthwhile one. Rather, they can treat you however they like, and the job can be excessively stressful and destructive of your quality of life, and that is perfectly legal. Since it is legal, it is not a basis or ground to get out of the relocation agreement. Therefore, the stated reasons—work stress and quality of life—have no bearing on the repayment obligation(s). If you have a relocation expenses repayment agreement, all you can do is stick it out until you can safely resign or

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

11 REAL ESTATE MISTAKES

As a real estate professional, you are constantly being challenged. You need to make decisions that ultimately affect your buyers and sellers and, of course, your business. These choices can lead you down one of two paths: success or failure. Mistakes are inevitable, as with any venture, but your response to those mistakes can mean the difference between a successful business and an early exit from the industry. 1. Understand Your Investment Personality Gaining a deep understanding of your style of investing is crucial with real estate. Some like to be adventurous and flip for profit, others like a steady cash flow. Whichever you choose, make sure it's something you see yourself doing day in and day out. Otherwise, you'll wake up in 10 years having created a job for yourself and not the dream you wanted. 2. Hire A Professional Home Inspector Spend the time and money to hire a professional home inspector. Even for smaller deals that might be all cash, an inspector can help you negotiate a better price or avoid a money pit altogether. 3. Don't Always Listen To Building Inspectors Knowing the political and local landscape with inspectors is critical as you choose where to develop property. In the process of developing our ocean properties, a building inspector advised us to move in a certain direction to save us time and money. We took his advice and are still paying for it. The inspector was fired for multiple issues; the town was not responsible for his lack of judgment 4. Trust, But Verify Relying on representation about a property's condition when investing may not always work out favorably. Having independent reviews by licensed professionals can allow you to validate any representations about a property's condition. For example, an inspection report or an appraisal before buying a property can provide an independent opinion on the potential risks that need to be addressed. 5. Don't Be In A Rush As the old saying goes, "bulls make money, bears make money, pigs get slaughtered." The real estate market is cyclical. If you have the wherewithal to hold an asset long term, you should not be in a rush to sell over market speculation. However, if you are looking to offload an asset quickly, ask yourself if it is really worth that extra percentage point or two by holding out for a specific price. 6. Keep Your Cash And Make Huge Profits I grew up learning that you pay cash for everything, including your house. Living debt-free is a great way to live. However, real estate investing is a different breed. Spend a fraction of your liquid cash to purchase 10 homes instead of one. Have the renters pay off your mortgage in 10 years, and now you have 10 homes providing cash flow instead of one. Let renters pay off loans and you profit. 7. Make Yourself Scalable Early in my real estate investing career, I tired of self-property management. But seasoned landlords told me, "No one cares about your property as much as you. Keep self-managing." I soon found that it's not worth self-managing for the last 2% of perfection. By outsourcing management, I quickly grew from eight to 20 units and freed up my time. Don't self-manage for too long. It's not scalable. 8. Stick To Your Criteria You know that sickness we all get from time to time, called "dealitis?" When you just need ONE more deal or feel excitement around a property so you loosen up your buying criteria? The side effects can be lost money, lost time, frustration, sleepless nights and general malaise. Leave yourself open for better deals. Stick to your guns; an ounce of prevention is the only cure. 9. Make Sure You Hire The Right Contractors Contractors will make or destroy a beautiful, rehabbed house and investment. They can break the bank or work with it! Find a good and reliable contractor when doing rehabs. This is the best advice that I can give from my experience. 10. Don't Hold On For The Turnaround I bought my first home at the top of the real estate market in Los Angeles in 1989. Then it crashed. I had over-improved the house. All the money I sank into it, gone in a snap. All that sweat equity? Vanished overnight. Instead of killing myself to get out from under it, if I had found a way to hold on to it, I would have made a killing instead of losing $50,000. I took the wrong way out. 11. Stop Overthinking One of the biggest mistakes I ever made was overthinking and letting the six inches in between my ears get in the way. Also, being overly optimistic on timelines and costs associated with the purchase (always prepare for the worst-case scenario) and not thinking big enough on my investment decisions — I should have gone for more units. The effort and work are the same, the rewards are just

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

RESTRAINT ON ALIENATION

A restraint on alienation, in the law of real property, is a clause used in the conveyance of real property that seeks to prohibit the recipient from selling or otherwise transferring his interest in the property. Under the common law such restraints are void as against the public policy of allowing landowners to freely dispose of their property. Perhaps the ultimate restraint on alienation was the fee tail, a form of ownership which required that property be passed down in the same family from generation to generation, which has also been widely abolished.[1] However, certain reasonable restraints will be given effect in most jurisdictions. These traditionally include: A prohibition against partition of property for a limited time. The right of first refusal – for example, if Joey sells property to Rachel, he may require that if Rachel later decides to sell the property, she must first give Joey the opportunity to buy it back. The establishment of public parks and gardens, as was the case for The Royal Parks of London in the UK. These public spaces were created under such terms by the Crown Estate; which meant that these parks were held in perpetuity for the public to use. Some specific restraints on alienation in the United States include: Disabling restraints To be effective the grantor must sue the grantee for enforcement. The effectiveness of the lawsuit could prevent the transfer from being made. In addition, if the disabling restraint is found to be unconstitutional the restraint will not be effective. Promissory restraints If the promissory note is breached by the grantee, the grantor may sue for damages. Unlike disabling restraints, the effectiveness of the lawsuit does not prevent the transfer from being made. However, the Supreme Court says promissory restraints are not permissible. The promissory note discourages the person getting ready to sell the property which is the same effect as the disabling restraint. Forfeiture restraints In the event of a breach the property returns to the grantor or the grantor's heirs. The return happens automatically, hence the argument can be made that there is no state actions. However, according to a constitutional argument the mere fact that the state recognizes the validity of an automatic transfer makes it a state action. To be effective the restraint must be reasonable and the restraint must be the same as a real covenant or equitable servitude. There are six factors to determine if a restraint on alienation is reasonable: Type of price (fixed or not fixed; courts prefer non-fixed) Purpose: Is it a legitimate purpose, or not? (courts prefer legitimate) Equal bargaining power of the parties Duration (a time limit to the restraint is preferred) Limit to the number of persons to which transfer is prohibited A restraint that increases the value of property is more reasonable. There are five basic conditions that must be met in order for there to be an effective real covenant and equitable servitude: It must be enforceable. To be enforceable it must not be too vague, it must not violate a statute or the constitution, it must not violate public policy, and it must meet the requirements under the statute of frauds. It must touch and concern the land. It must be intended to run. There must be privity between the successive occupants. There must be notice of the existence of a real covenant/equitable

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT DO REAL ESTATE LAWYERS DO?

What do Real Estate Attorneys do? So you've decided to take the big step of buying a home. It's probably the biggest purchase and most expensive investment you'll ever make. But it's not a simple process. There are a lot of laws that are specific to real estate, with which most people aren't acquainted. Just like hiring a real estate agent to deal with the sale, you may want to consider hiring a real estate lawyer to guide you through the legal process in the real estate industry. Read on to learn more about what a real estate lawyers and real estate law, all the responsibilities that come with practicing real estate law, what their qualifications are, and when you should consider hiring one. Real Estate Lawyers: An Overview Real estate attorneys are professionals who specialize in and apply their legal skills to matters related to property, from everyday transactions to disputes between parties. Although they are not required at every transaction, a homebuyer may benefit by hiring one to help make sure there are no hiccups through the process. Some states even require buyers to hire a real estate attorney, so it's best to verify with your realtor if you need one. After all, it is an added expense that you have to cover. Most realtors who specialize in real estate law charge by the hour for their services, while others get paid a flat fee based on the transaction. Keep in mind that having someone who is experienced with the law on your side may help you avoid any legal problems that can cause delays to your closing, and save you money in the long run. KEY TAKEAWAYS Real estate attorneys are professionals who specialize in and apply their legal skills to matters related to real property. A real estate lawyer prepares and reviews purchase agreements, mortgage documents, title documents, and transfer documents. Some states require buyers to have a real estate lawyer present at every transaction. Real Estate Law Real estate law oversees the purchase and sale of real property—that is, of land and anything attached to it such as buildings or other structures. It also includes anything that comes with a property such as appliances or fixtures. This type of law has nothing to do with personal property or someone's personal possessions, and only with real property. This branch of the legal system, therefore, ensures the proper procedures surrounding the acquisition of property, as well as what people can do with that property. Real estate law also factors in things like deeds, property taxes, estate planning, zoning, and titles. Real estate law varies by state, making it state law. So attorneys must be licensed to practice in their state and must be up to date on any of the changes that affect transactions that happen locally or in their state. Real estate law varies by state, so it's also considered state law. Responsibilities A real estate attorney is equipped to prepare and review documents relating to real estate such as purchase agreements, mortgage documents, title documents, and transfer documents. Real estate attorneys also often handle closings—when an individual or entity purchases a piece of real property from someone else. In most cases, the real estate attorney provides legal guidance for individuals relating to the purchase or sale of real property. He or she ensures the transfer is legal, binding, and in the best interest of his or her client. During the purchase of a property, the real estate attorney and staff often prepare all closing documents, write title insurance policies, complete title searches on the property, and handle the transfer of funds for the purchase. The attorney, or his or her team, also prepares forms such as the HUD-1 Form and related transfer of funds documentation for the buyer's lender if the purchase is being financed. In the case of a real estate dispute, such as chain of title, lot line problems, or other issues involving contracts, an attorney works to resolve the problems. He may work for either side and provide legal representation for the parties in a courtroom setting. The real estate attorney obtains facts from both sides of the dispute and tries to come to a resolution that works for everyone involved. This may mean hiring a surveyor or title company to work through some of the details. Qualifications Becoming a real estate lawyer requires a lot of education and experience. An attorney must first earn an undergraduate degree, then pass the Law School Admissions Test (LSAT) before being considered for acceptance to a law school. Prospective lawyers must earn a law degree, which typically takes three years if done full-time. During the first year, student learn the basics of the law profession. During the following years, they take electives like real estate law and do internships to gain practical experience. Once a student completes law school, he or she must pass the bar exam in order to begin practicing. Some lawyers choose to study further, perhaps working toward the successful completion of a graduate degree, professional designation, or other certificates that cater specifically to real estate law. When to Hire a Real Estate Attorney As noted above, some states require the presence of a real estate attorney during any real estate transaction. If you live in Alabama, Connecticut, Delaware, D.C., Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and West Virginia, you must hire a lawyer to oversee the deal. These states are generally called attorney states. If you don't live in any of these states, it's up to you whether you want to hire an attorney. Although it's an additional cost, it may be a good idea to hire a lawyer who specializes in real estate law. Their services can be invaluable, helping to navigate you through the murky process and resolving tough situations like a foreclosure or even a short sale. They are also helpful during the purchase of a commercial property. In short, don't discount what a real estate lawyer can do for you, even it if means paying a little

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A SERIES LLC?

What is a Series LLC? A series LLC is a unique form of limited liability company ("LLC") in which the articles of formation specifically allow for unlimited segregation of membership interests, assets, and operations into independent series. Each series operates like a separate entity with a unique name, bank account, and separate books and records. A series LLC may have different members and managers in each series. The rights and obligations of these members and managers differ from series to series. Each series may enter into contracts, sue or be sued, and hold title to real and personal property. The most important characteristic of a series LLC is the liability protection that is available to each series. Assets owned by one series are shielded from the risk of liability of other series within the same series LLC. A series LLC is similar in concept to a corporation with several subsidiaries. However, the series LLC concept is designed to segregate risk within separate entities without the cost of setting up new entities. States Permitting Series LLC The series LLC is a creation of the state. Only in certain states are series LLCs allowed to be formed. Delaware was the first state to enact legislation authorizing the creation of series LLCs. Several states have followed suit including Illinois, Iowa, Nevada, Oklahoma, Tennessee, Texas, Utah and Puerto Rico. Some states, like California, do not allow for series LLCs to be formed under state law but series LLCs formed in other states can register with the state and do business in the state. Forming a Series LLC The series LLC is formed in much the same way as a regular LLC. You will need to file articles of formation with the appropriate governmental entity in a state where series LLCs are permitted. To be distinguished from a regular LLC, most states require that the articles of formation specifically state that the LLC is authorized to form series. Next, you will need an operating agreement for the master LLC and one for each series you plan to form. A series LLC can create additional series whenever one is needed. The master LLC operating agreement generally provides rules for the overall operations of the series LLC. Likewise, operating agreements for each series provide customized rules for operations. One of the benefits of a series LLC is that you only have to file articles of formation once. After forming the initial master LLC, each additional series is formed through internal mechanisms spelled out in the operating agreements. Typically this is done by amending the master LLC operating agreement and adding an additional series. Using a Series LLC As a business entity, series LLCs are very flexible and simple to use. The series LLC can be used by real estate investors who own multiple properties. Each series isolates and protects its properties from the liabilities of the properties in other series. Companies with different profit centers can use series LLCs to segregate and shield each business operation. To maintain the liability protection of each series it is important to treat each series as a separate company. This includes having a separate bank account, maintaining separate books and records, signing contracts using the name of the series, documenting all transactions, and keeping adequate amounts of capital on hand for business purposes. Tax Issues There are some unresolved tax issues regarding series LLCs, primarily regarding whether each series is a separate entity for tax purposes. The California Franchise Tax Board has taken the position that each series in a series LLC is a separate entity and therefore must file its own tax return and pay its own LLC annual tax and fee if it is registered to do business in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SINGLE FAMILY VS. MULTI-FAMILY INVESTMENT

1. Multi-family work better with the changing U.S housing market. High rents and the need for yields have created even more competition for single family homes. This has depleted inventory and hurt affordability. Demand from retail buyers, funds, and new real estate investors has increased competition, often inciting bidding wars. For some, this is creating better opportunities in the multifamily space than among residential homes. 2. Multi-family offers management efficiency. There are many efficiencies of scale afforded to multifamily property investors. Management consolidated in one location, for more units, means lower management costs and fewer time demands. This can pay off in many ways, from maintaining occupancy to working more efficiently with contractors and improving maintenance. Every penny and labor hour saved in management means more directly added to the bottom line. As single family investors experience these pain points and learn about the advantages of multifamily, they typically choose to step up to this asset class to scale their portfolios more efficiently. 3. Multi-family allows investors to save time. It takes a lot less work and time to acquire a 46-unit apartment building than 46 single family homes—and I’m speaking from experience. Jumping into a multifamily deal may sound like a lot at first, but it is actually far faster and less time-intensive to acquire these properties. They require one set of paperwork, one set of loan docs, and one set of contractors. That leaves a lot more free time to be enjoyed or spent pursuing more deals. 4. Multi-family supports a higher ROI. Renovations and improvements are some of the most challenging parts of investing in real estate. Flipping houses can be fun and profitable. Still, it can be risky. In multifamily property investing, improvements to individual units or community space can actually lift the appeal and value of the asset, because you can generally demand higher rent. That elevates the ROI. Multifamily investors can also more easily reposition and control the value of their own properties. These buildings can be positioned to appeal to affordable tenants, affluent tech workers, and others. 5. Multi-family gives more direct control. The value is not as reliant on comps as it is on your ability to increase the value through increasing the NOI. For single family homes, the value of your property is directly tied to surrounding comparables. In contrast, multifamilies allow for the investor to have even more control over the property

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SELLING A PROPERTY WITH A TENANT

While selling a Kansas City or St. Louis house with a tenant isn’t always the ideal situation. Consider how it will affect them before making any bold decisions. If you need to sell your house with a tenant, it can be done when handled properly. Below, we share some tips on how to sell your house with a tenant in Kansas City or St. Louis. Wait Until The Lease Is Up Take a look at how much longer your tenant has on their lease. If it is a relatively short time, and you can wait a couple of months before selling, it might be in your best interest to do so. Once the lease is up, you can let them know of your plans and take it from there. If they are accommodating to the sale process, you can even let them rent month to month while the property is being shown. If you have the forethought to do so, you can make this part easier by including an early termination clause in the lease, allowing you to terminate the lease if certain conditions exist. Anticipate Their Reaction Do you think they will be willing to help you or do you think they will be upset about the impending sale? If you believe they won’t be agreeable with your listing, it might be in your best interest to wait until the lease is up or work with a direct buyer in order to sell without drawing attention to the matter. Only you know your relationship with your tenant and how they will possibly react. Make The Showings Worth Their While If you have to sell, and you decide to list and use an agent, make it worth their while to help you out. You can offer reduced rent for the inconvenience or help with their future move. If the tenants are on your side, your much more likely to find a buyer in a timely manner. A great tenant will help keep things clean and be flexible about showings. By continuing to make money while the property is listed, you’ll be able to avoid losing too much on the sale of the home. If on the other hand, they are not happy about having to move, they can end up causing hassles with showings. Disgruntled tenants may leave a messy house when people are coming to see it, quickly making people want to turn the other way. They can also potentially sabotage you by talking to potential buyers. Letting them know about all the bad things they will need to watch out for. If you feel your tenant falls into this category, you need to do better background checks, and it might be in your best interest to sell the property once the tenant has vacated. While ideally, your house will be empty when trying to sell it, if you do have a renter living there, you will want to make them happy and comfortable with the process. Be considerate and accommodating from beginning to end. Nobody wants to feel uncertainty about the place they are living in. Put yourself in their shoes before making the decision to sell while an active lease is in place. Find A Direct Buyer Selling your house to a direct buyer such as OFFER HOUSE can make the process easier on everyone. Make sure that selling in this manner doesn’t violate your lease in any way. You’ll also want to try to find a buyer who isn’t going to have a problem honoring the current lease. Many investors will love having a trustworthy tenant already in place. This ultimately saves them time and money in trying to find and screen tenants on their own. Working with a direct buyer is one of the best ways to sell your home with a tenant in Kansas City or St. Louis. Whenever possible, you will want to try to work with your tenants as best as possible. They can help you sell the house if you decide to list it. Always keep your tenant in the loop as far as when the home will be shown, how much notice you’ll provide, and what condition you expect the property to be in. Who knows, they may even be able to recommend a buyer or maybe they will want to buy the home themselves! Having open and honest communication will help you sell your home with a tenant in Kansas City or St.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

DOES A REAL ESTATE CONTRACT HAVE TO BE IN WRITING?

Does a Real Estate Contract Have to Be in Writing? The statute of frauds is a long-standing legal principle which requires certain agreements, including real estate contracts, to be in writing. Real estate contracts are generally enforced in state courts according to varying state laws. And, there are exceptions to state statutes of frauds. Therefore, each case should be independently evaluated. Writing Requirement Oral court testimony can be undependable. People may bend the truth or become confused on witness stands. The statute of frauds helps courts make more accurate determinations in real estate disputes by requiring written agreements. Basic information, such as parties' names, sales prices, and property addresses, must be embodied in writing. An agreement is usually not invalid because minor details are missing. For example, a judge may determine the location for closing if it is not stated in writing. The statute of frauds is a long-standing legal principle which requires certain agreements, including real estate contracts, to be in writing. Real estate contracts are generally enforced in state courts according to varying state laws. And, there are exceptions to state statutes of frauds. Therefore, each case should be independently evaluated. Signatures Generally, the statute of frauds only requires the party being sued to have signed a real estate contract. For example, Betty reaches a verbal agreement with Bob to sell him her condominium. She types out a short agreement and signs it. The statute of frauds typically would allow Bob to enforce the agreement against Betty because she signed it. Bob, however, generally would not be held to the agreement since his signature is missing. The statute of frauds is a long-standing legal principle which requires certain agreements, including real estate contracts, to be in writing. Real estate contracts are generally enforced in state courts according to varying state laws. And, there are exceptions to state statutes of frauds. Therefore, each case should be independently evaluated. Performance The performance of a verbal real estate contract creates an exception to the statute of frauds. For example, Mike says he will buy Bill's home. Mike moves into the property and Bill accepts monthly payments toward the sales price. A court typically would not invalidate the parties' verbal understanding because they are actively carrying out their agreed terms. Acts of performance provide courts and juries with credible evidence to rely on in lieu of written contracts. The statute of frauds is a long-standing legal principle which requires certain agreements, including real estate contracts, to be in writing. Real estate contracts are generally enforced in state courts according to varying state laws. And, there are exceptions to state statutes of frauds. Therefore, each case should be independently evaluated. Verbal Promises The statute of frauds makes exceptions for parties who rely on verbal promises. For example, Frank and Jane reach an agreement over the phone for her to buy his house. Jane relies on his promise to sell his home to her and ships her furniture and terminates her apartment lease. Generally, this is considered the promissory estoppel exception. Namely, Jane changed her position based on Frank's promise so she may be exempt from the statute of frauds' writing

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SPECIAL USE REAL ESTATE VALUATION

What Is Special Use Real Estate Valuation? Real estate is normally valued at an amount that reflects its “highest and best use” for reasons concerning the federal estate tax. In fact, the general rule is that a property’s fair market value (FMV) upon the owner’s date of death is the value that reflects its highest and best use. However, such valuation can yield results that are unfair. An example of an unjust outcome is where a family farm is situated next to commercial real estate that is considered to be more valuable. In response to these unfair results, the Internal Revenue Code allows certain real estate to be appraised at its “actual use” instead of its “highest and best use.” This type of appraisal applies specifically to the owners of farms and small businesses, provided that certain requirements are met. What Are the Requirements of Special Use Valuation? There are three requirements of special-use valuation of property: The business property’s net value must be a minimum of 50 percent of the gross estate of the decedent, and the business real estate’s net value must be a minimum of 25 percent of the adjusted gross estate of the decedent. This is the gross estate, less certain debts, expenses, claims, and losses that are deductible. The decedent must have conveyed the business to an heir or heirs who are qualified; this means that the heirs must be close family relatives. The business must have been under the ownership and operation of the decedent or a close relative of the family for five of the last eight years prior to the decedent’s demise, disability, or retirement. What Is the 10-Year Rule? The “10 year rule” is that your heirs may be unable to benefit from the special use valuation if, within 10 years of your demise, they sell or get rid of the property in some other way by transferring it to people who are not considered to be close family members. This rule also applies if your heirs start using the property for a different purpose within 10 years after you

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FORGED DEED VS FRAUDULANT DEED

Forgery may be thought of as a variety of fraud, but the law does not treat a forged deed like a fraudulent deed that is not forged. A recent case from New York illustrates the difference. Percy Gogins and Dorothy Lewis, brother and sister, inherited a house in Brooklyn from their mother; each owned a one-half interest. In May 2000, Lewis conveyed by quitclaim deed her half-interest in the property to her daughter Tonya Lewis. In February 2001, Tonya recorded a deed claiming to correct the prior deed from Lewis. The corrected deed was signed with the name of Percy Gogins and appeared on its face to transfer Gogins's half-interest in the real property to Tonya, giving Tonya a full fee interest in the property. Gogins died in March, 2001. Gogins’ daughter, Dorothy Faison, believed that her father’s signature on the corrected deed was a forgery. In 2002, she filed suit to have the forged deed declared invalid, but the suit was dismissed because Faison did not have standing to bring the suit because she was not administrator of the estate—her mother was. Her mother’s lawyer apparently assured Faison and her mother that he had obtained a judgment invalidating the deed. But nothing of the sort had happened: the lawyer, now disbarred, had lied. Tonya Lewis had fee simple title to the property, according to the property records. In 2009, Bank of America issued Lewis a mortgage loan of over $250,000, secured by a mortgage on the property In 2010, Dorothy Faison was appointed administrator of her father’s estate, and learned that nothing had ever been done about the deed to Lewis that Faison believed was forged. As administrator of the estate, Faison now had standing to sue to seek to have the forged deed declared invalid, and so she sued once again. Few rules of law are as black-and-white as the rule that a forged deed is invalid. The law treats a forged deed as if the deed never existed. The rule applies even to forged deeds to innocent purchasers who buy property at market price in arms-length transactions: courts will not allow such innocent purchasers to keep title to property under a forged deed, because the innocent purchaser never had title in the first place under the forged deed. It follows, then, that a lender who takes a mortgage to a property subject to a forged deed is in the deepest of deep trouble: the mortgagor simply doesn’t have anything to mortgage, so the lender’s mortgage is invalid as well. So, if Faison proved to the court’s satisfaction that her father’s signature on the 2001 deed was forged, the outcome for the bank would seem to be clear: their mortgage would be wiped out. Here, Bank of America had one last argument, however: that Faison (or, more precisely, her mother) was required to have brought the forgery claim within the six-year statute of limitations for fraud, and had failed to do so. To be sure, Faison and perhaps others had been aware of the alleged forgery for far longer than six years when she filed suit in 2010. But the New York Court of Appeals—New York’s highest court—rejected Bank of America’s statute of limitations argument. Unlike fraudulent documents that are not forged—which are voidable at the option of a defrauded party, and therefore valid if the defrauded parties do not choose that option—a forged deed is void from the start, and cannot ever be revived, the Court ruled.  Faison will now get a chance to prove that the deed is forged, and if she can prove it, the deed is void, and Bank of America's mortgage is void as well (although perhaps there will be another battle whether the mortgage should be effective as to Lewis's 1/2 interest she obtained from her own mother). Of course, in the real world, every courthouse likely has forged deeds on the record that have effectively conveyed interests. Where any witnesses who could prove a forgery are long gone, a forgery is safe from detection and the forged deed effectively becomes a good one. Marketable title acts also may possibly extinguish forgery claims beyond the marketable title period: the Uniform Marketable Title Act “frees the holder of marketable record title from adverse claims antedating his root of title, even if the root of title is a forgery.” And finally, there are some rare instances where the only person who can contest the forged deed had a hand in the forgery, and courts will not allow that person to contest the forged deed under doctrines of estoppel or unclean hands. So sometimes, nothing can turn into something, and a forged deed can eventually become a good

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

KANSAS TRANSFER ON DEATH DEED

Kansas Transfer on Death Deed What is a Transfer on Death Deed? A transfer-on-death (TOD) deed, also called a beneficiary deed, looks like a regular deed used to transfer real estate. But there's a crucial divide: It doesn't take effect until your death. You are free to change your mind and revoke the deed at any time during your life. For Land, Home, Certain types of oil gas and mineral rights, and Royalties thereof: A TOD is a document that can be prepared and signed at any time. It directs the transfer of your interest in property to another person at the moment of your death. It doesn’t avoid creditors or SRS Estate Recovery. It doesn’t avoid taxes (although only very large estates are taxed in Kansas now). It doesn’t transfer ownership until your death, so you don’t cause possible Medicaid Transfer of Asset penalties. You still own your property, so you can sell it at any time. Property owned in joint tenancy with right of survivorship is fully transferred to the surviving owner, upon the death of one owner. Note: You must give an exact legal description of the property, so obtaining a copy of your deed is best. For Car, Recreational or Other vehicle: Transfer on Death Form – this is a label you can have added to your car title. It is best to do with when pay your annual vehicle registration. Work with the County Treasurer or Tag office to complete the paperwork. The vehicle will be transferred to them upon the proof of death of all owners. This must be done for each vehicle owned. Making it official: A TOD for Land, home, or mineral and oil rights should be filed with the Recorder of Deeds in the county where the real estate is located. A small fee is included for recording the deed. You will need a full description of your real estate. A TOD for Vehicles can be recorded by taking the title to the County Treasurer in the owner’s county of residence and paying a fee. The grantor need not inform the recipient or get their approval to be able to record a TOD. What are the benefits of a Transfer on Death Deed? - A TOD allows you to transfer ownership of property after death by naming a recipient and bypassing the probate process. Even if you choose a beneficiary of a piece of property in your will, it will still need to be probated. A TOD however will not go through the probate system and transfers the property without the need for court and clerical fees. - TOD do not replace wills. It is still a good idea to have a valid will in place to properly give out your estate. A TOD has a place within an estate plan along with a will, but should not replace a will totally. Make sure to check out our KLS resource: Do I Need A Will? - A benefit of the TOD is that, because the recipient has no interest in the property until the owner dies, the recipient’s creditors cannot reach the property. - In contrast with the transfer of property under a revocable trust or a will, the transfer of property through a TOD deed is much less costly. In some states the cost of probate is great, and in any state a probate proceeding will cost more than the fees related to a TOD deed. What are possible drawbacks of Transfer on Death Deeds? A downside of TOD deeds is that people may use them without consulting a lawyer and may make legal mistakes. For example, an owner might name one beneficiary but neglect to arrange for the possibility that the recipient predeceases the owner. Revoking a TOD? To revoke a TOD, it must be done formally and in writing. Simply denying a TOD in a will is not enough to undo the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CAP RATE

Since prehistoric times, we humans have been in the business of evolution. Such is the scientific truth. Unless, that is, we are talking about cap rates, in which case there appears to be no evolution. It seems the same old misconceptions prevail, and the same lack of conceptual understanding remains. We seem unable to mature in this respect. I am not sure if this article will fall on deaf ears, but I am willing to take another stab at cap rates regardless. I truly hope some of you find this helpful. What Is Capitalization Rate? First, let me say this. Cap rate is NOT a metric of investment return, which is why we are careful not to lean on it as our acquisition criteria. Think of cap rate as an indicator of market sentiment. As investors, we aim to identify the rate at which we can grow our investments on a risk-adjusted basis. All of us have parameters with regard to this, but for all of us, there is a point whereby growth potential outweighs the perceived risk premium by enough of a margin to influence us to take action and to deploy capital. Well, since in the real estate market risk in large part is defined by a location’s economic fundamentals, for a lot of investors the rationale goes something like this: I know I have to pay more to be in that location, but because of the superior economic indicators in this location, I feel my money is safer there long-term. Other people think like me and pay more to be in this location, which forces me to pay more to be here. But I am willing to pay more today because I think there will be more sustained growth here in the future. I know that my rate of return may be lower, but safety is paramount to me, so I am willing to accept lower returns. Benefits of Lower Cap Rates For many years, I thoughts I was the smart one, buying in Ohio at 10 percent cap and thinking that all those people paying 5 percent cap were stupid. But the more I studied, the more I gained an appreciation for the fact that people buying at low cap rates have already made all the money they’ll ever be able to spend. They are willing to pay a premium for safety instead. And the reason they would go into a market and deploy at 5 percent cap is that they feel their money is safer there than somewhere else. Benefits of Higher Cap Rates I am not specifically discussing value-add in this article, which is an integral component but lies outside the scope for today. That said, here’s some rationale. Clearly, I cannot simply buy a value equivalent to 5 percent cap. Nothing cash flows at 5 percent cap, and I do need some cash flow in order to hold onto the asset long enough for it to do its thing. And unlike those other folks, I still need to create wealth. So, if I must buy at 5 percent cap because such is the market, what I can do is find an asset whereby having paid a price equivalent to 5 percent cap, I can then improve it to where my new income will represent a 7.5 percent cap upon my basis. Close up of businessman or accountant hand holding pen working on calculator to calculate business data, accountancy document and laptop computer at office, business concept In this case two things happen: I will cash flow well at 7.5 percent cap. I will create a lot of value, because while the re-positioned NOI represents a 7.5 percent cap upon my basis, I am still in a market that trades at 5 percent cap rate. When I go to sell or refinance the asset, this delta of 2.5 percent cap represents millions of dollars of value. This value is what I am really after, since I want to create wealth. So, in the end, I will have not just the cash flow but also wealth to go with it. Perhaps I should turn that around. In the end, I’ll have wealth and some cash flow to go with it. And I am much more likely to achieve this desired result in a low cap

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE AGENT FUNDAMENTALS

These days, more than half of buyers start their home search online, according to the 2018 Profile of Homebuyers & Sellers, released by the National Association of Realtors (NAR). However, just because a home search starts online, it doesn’t mean that buyers aren’t looking for a little help with the process. In fact, 87% of recent home buyers purchased through a real estate agent or broker. So, what does a real estate agent do? And what can you expect from working with one? Let’s take a look. What Do Real Estate Agents Do? Real estate agents go through a state-mandated process and are licensed to be involved in real estate transactions. A real estate agent can list homes for sale, help buyers navigate the process, show homes to prospective buyers, and handle the various paperwork of a real estate transaction. Additionally, real estate agents are usually expected to market the homes they list. So, if you’re selling, expect your real estate agent to include your home in a newsletter, take attractive photos, and post it online. Some real estate agents are buyer’s agents, which means that they work only on behalf of those looking to buy. That way, you know you won’t have a conflict of interest because the agent won’t be working both sides of the transaction. However, it’s important to note that agents can’t work independently. They usually work for a broker. How Can Real Estate Agents Help You? When you work with a real estate agent, there are a few things you can expect: A lender who can get you pre-approved for buying a home Help to find the right home for your situation Connecting with professionals like home inspectors and title agents Negotiating an offer on your behalf (whether you’re buying or selling) Communicating with other players during the course of the sale Helping you navigate the mortgage process Advising you on properly pricing your home as a seller Marketing the property heavily on behalf of a seller Screening potential buyers to make sure they’re qualified Attending home inspections and appraisals on behalf of sellers Real estate agents essentially represent their clients in the home buying or selling processes. Agents can’t force you to do anything you don’t want to do, however. They still have to get your approval to move forward with deals. How Do You Find (And Hire) a Real Estate Agent? There are plenty of ways to find a real estate agent. Here are some places to look for a real estate agent: Ask for recommendations: Chances are, someone you know has used a real estate agent in the past. Ask them if they can provide you with a recommendation. Search online: An online search of real estate agents in your area can provide a long list of real estate agents. Look at current listings: You can also look at local home listings, take note of the agents, and contact them. Attend an open house: It’s also possible to attend an open house and meet the real estate agent involved — and other real estate agents who might be at the open house. Check the NAR website: The National Association of Realtors offers a database of agents who are members of the NAR in your area. Members of the NAR are required to meet certain standards and agree to a code of ethics. Once you’ve identified some qualified real estate agents, meet with them. You want to find out what their experience level is, how well they know the local market, and get a feel for how well you’d work together. It’s important to find someone you’re comfortable with since you’ll be spending a lot of time together. In some cases, when you work with a real estate agent, whether to buy or to sell, you might be required to sign an agreement. This agreement gives the agent the ability to represent you, as well as also expresses your commitment to working with them. Not every agent requires an agreement, but some do, and you need to read through the agreement before moving forward. If you are listing a home with a real estate agent, however, you do need to sign a listing agreement. When an agent is selling your home, an agreement is going to be part of the issue. How Do Real Estate Agents Get Paid? First of all, it’s important to realize that real estate agents don’t work independently of brokers. Real estate brokers have received additional licensing from the state and passed a broker exam. Brokers can work as independent agents, in addition to hiring others to work under them. When it comes to transactions, it’s the broker who actually receives the commissions. Real estate professionals are usually paid when a transaction is closed, so if you don’t buy or sell the home, the real estate agent doesn’t get paid. In general, a broker receives the commission from the sale, and then splits it with agents involved. Listing agents and buyer’s agents usually receive a cut. A common commission is 6%, and that would then be split between the broker, and the agents involved, depending on the agreement. For the most part, the seller pays the commission, with the amount of the commission subtracted from the final amount received by the seller. However, a good listing agent will help a seller price a home in a way that makes up for part of the commission. So, while the buyer doesn’t officially pay for using a real estate agent, they might contribute toward the commission through the price they pay on the home. When choosing a real estate agent, find out who will pay them, and the commission they expect to receive. Final Word Whether buying or selling a home, a real estate agent can help you successfully navigate the process. When you find someone who’s qualified and ready to go to bat for you, it can be worth the commission you end up

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REIT FUNDAMENTALS

Prior to the onset of the industrial revolution, wealth and power were measured primarily in terms of the amount of land owned by an individual or family. Although the twentieth century saw the rise of securitization and the resulting increase in stock and bond ownership, real estate investing can still prove a profitable option for those who are actively engaged in an asset allocation program or just looking to diversify their current portfolio. Real estate investment trusts, or REITs, can be a convenient way for the average investor to profit without the hassle of direct property acquisition. That is why we included this comprehensive essay in our Beginner's Guide to Real Estate Investing. Prior to 1960, only wealthy individuals and corporations had the financial resources necessary to invest in significant real estate projects such as shopping malls, corporate parks, and healthcare facilities. In response, Congress passed the Real Estate Investment Trust Act of 1960. The legislation exempted these special-purpose companies from corporate income tax if certain criterion were met. It was hoped that the financial incentive would cause investors to pool their resources together to form companies with significant real estate assets, providing the same opportunities to the average American as were available to the elite. Three years later, the first REIT was formed. The original legislation had some significant drawbacks, however, in that it required the executives in charge of the business to hire third parties to provide management and property leasing services. These restrictions were lifted in the Tax Reform Act of 1986. Thirteen years later, in 1999, the REIT Modernization Act was passed. The law allows REITs to form taxable subsidiaries to provide specialized services to tenants that normally fall outside the purview of real estate investing. Although the law still has some limitations as to the types of services that can be offered, it is expected that the quality of service at REIT-managed properties will improve significantly as a result of its passage. Requirements for REIT Status According to Ralph Block in Investing in REITs: Real Estate Investment Trusts, every REIT must pass these four tests annually to retain its special tax status: “The REIT must distribute at least 90 percent of its annual taxable income, excluding capital gains, as dividends to its shareholders. The REIT must have at least 75 percent of its assets invested in real estate, mortgage loans, shares in other REITs, cash, or government securities. The REIT must derive at least 75 percent of its gross income from rents, mortgage interest, or gains from the sale of real property. And at least 95 percent must come from these sources, together with dividends, interest, and gains from securities sales. The REIT must have at least 100 shareholders and must have less than 50 percent of the outstanding shares concentrated in the hands of five or fewer shareholders.” In addition to the prevention of double-taxation, REITs offer numerous other benefits which include: Professional Management In most cases, the investor that buys a rental property is left to her own devices. REITs allow the investor the opportunity to have her properties managed by a professional real estate team that knows the industry, understands the business and can take advantage of opportunities thanks to its ability to raise funds from the capital markets. The benefits are not limited to the financial prowess of the management team. Owners of REITs aren’t going to receive phone calls at three a.m. to fix an overflowing toilet. Limitation of Personal Risk REITs can significantly limit personal risk. How? If an investor wanted to acquire real estate, it is likely he will take on debt by borrowing money from friends, family, or a bank. Often, he will be required to guarantee the funds personally. It can leave him exposed to a potentially devastating liability in the event the project is unsuccessful. The alternative is to come up with significant amounts of capital by reallocating his other assets such as stocks, bonds, mutual funds, and life insurance policies. Neither alternative is likely to be ideal. Purchasing a REIT, on the other hand, can be done with only a few hundred dollars as share prices are often as low, if not lower, than equities. An investor that wants to invest $3,000 in real estate will reap the same rewards on a pro-rated basis as those who want to invest $100,000; in the past, it simply wasn’t possible to get this kind of diversification in the real estate asset class without taking on partners or using leverage. Liquidity Unlike direct property ownership, a REIT offers liquidity and daily price quotations. Many investors mistake this for increased risk. After the average real estate investor has acquired a house, apartment building or storage unit, he becomes primarily interested in the future rental income prospects, not the potential sale value of the asset if he put it back on the market. Indeed, if the investor holds the property for twenty years, he is likely to have lived through significant boom and busts in the real estate cycle. In most cases, it is safe to assume that because of the lack of daily quoted resale value, the investor has never stopped to consider that his real estate fluctuates just as would any common stock (albeit to a much smaller degree.) In this case, the lack of quoted price is mistaken for stability. As Benjamin Graham said in his 1970’s edition of The Intelligent Investor: “There was then [during the Great Depression] a psychological advantage in owning business interests that had no quoted market. For example, people who owned first mortgages on real estate that continued to pay interest were able to tell themselves that their investments had kept their full value, there being no market quotations to indicate otherwise. On the other hand, many listed corporation bonds of even better quality and greater underlying strength suffered severe shrinkages in their market quotations, thus making their owners believe they were growing distinctly poorer. In reality the owners were better off with the listed securities, despite the low prices of these. For if they had wanted to, or were compelled to, they could at least have sold the issues – possibly to exchange them for even better bargains. Or they could just as logically have ignored the market’s action as temporary and basically meaningless. But it is self-deception to tell yourself that you have suffered no shrinkage in value merely because your securities have no quoted market at all.” In other words, despite the fact that the quoted price of the REIT may fluctuate on a daily basis, the economic reality of direct real estate investing is no different. In essence, it is as if the owner of a REIT simply didn’t pick up the paper and examine the price offered to him by Mr. Market. Taking it one step further, this perceived disadvantage is actually one of the perks of owning REITs. Unlike direct real estate holdings, they are a liquid asset that can be sold fairly quickly to raise cash or take advantage of other investment opportunities. Excellent Tools for Retirement or Income for Living Expenses A significant portion of the return attributed to investing in REITs is due to the large cash dividends. Because dividend distributions of this kind are taxed at personal income tax rates which have historically been 39.8% (thanks to the Bush tax cuts, this rate has been lowered to 35%), Uncle Sam can take a significant bite out of your profits. One way to counter this is to hold your real estate investments in your IRA or other retirement accounts. Decades of tax-free compounding can result in hundreds of thousands of dollars more in retirement savings. REITs are also especially suited to retirement portfolios because the cash dividend not only provides income upon which to live but establishes a phantom floor to the share price. In a market free fall, for example, the dividend yield will eventually become attractive enough to prevent further sell-offs (assuming the fundamental business isn’t in jeopardy.) It can result in greater stability at times of market crises. The term equity REIT refers to a corporate entity that is engaged in the acquisition, management, building, renovation, and sale of real estate. This type of real estate investment trust offers the greatest potential of reward and as such tends to be favored by professional money managers. Equity REITs often operate in a specific area of expertise. Some examples include: Residential REITs Retail REITs Office and Industrial REITs Healthcare REITs Self-storage REITs Hotels and resort REITs Residential REITs This type of REIT specializes in apartment buildings and/or other residential properties leased to individuals. The biggest danger for residential REITs is over construction within a particular geographic area during a declining economic environment. In such cases where supply is increasing as demand is decreasing, the management team is forced to reduce rents to keep occupancy rates stable. An Example of Residential REIT: Avalon Bay Communities According to Reuters, Avalon Bay Communities (AVB), known for its luxury apartment communities, “is a real estate investment trust that focuses on the development, redevelopment, acquisition, ownership, and operation of apartment communities in high barrier-to-entry markets of the United States. At February 27, 2004, the Company owned or held a direct or indirect ownership interest in 131 operating apartment communities containing 38,504 apartment homes in 10 states and the District of Columbia, of which two communities containing 1,089 apartment homes were under reconstruction. Also, at that date, AvalonBay owned or held a direct or indirect ownership interest in 11 communities under construction that are expected to contain an aggregate of 3,493 apartment homes when completed. It also owned a direct or indirect ownership interest in rights to develop an additional 40 communities that, if developed in the manner expected, will contain an estimated 10,070 apartment homes. Retail REITs There are a number of specialties in the field of retail REITs, including malls and shopping centers. The particular benefit for the former is that construction costs are significant; measured in the tens or hundreds of millions of dollars. This high barrier-of-entry cost helps keep expansion under control, making excess supply a lesser concern. An Example of Retail REIT: Regency Realty Corp. “Regency Centers Corporation is a real estate investment trust that owns and operates grocery-anchored shopping centers in the United States. As of December 31, 2003, the Company's portfolio of real estate investments included 265 shopping centers in 22 states with 30.3 million square feet of gross leasable area (GLA) and was 92.2% leased. Geographically, 19.6% of its GLA is located in Florida, 19.5% in California, 16.8% in Texas, 6.6% in Georgia, 6.3% in Ohio and 31.2% spread throughout 17 other states. Regency owns and operates its shopping centers through its operating partnership, Regency Centers, L.P. (RCLP), in which the Company owns 98% of the operating partnership units. Regency's operating, investing and financing activities are generally performed by RCLP.” – Reuter’s Business Summary Office and Industrial REITs The office sector of the real estate investment trust market has historically been the largest. The primary drawback is the fact that office rents normally have much longer lease terms meaning that in times of declining rent and lower occupancy, those tenants that do sign leases will have lower, less-profitable rates locked in for many years. It can also be a blessing, however, if a property is filled during a time of short supply and high demand. Office REITs are, as can be imagined, highly cyclical. Industrial REITs, on the other hand, tend to generate steady, predictable cash flow thanks to high lease renewal rates and low capital expenditure and maintenance requirements. An Example of Office and Industrial REIT: CenterPoint Properties Trust “CenterPoint Properties Trust is a real estate investment trust that owns and operates primarily warehouse and other industrial properties in the metropolitan Chicago, Illinois area. CenterPoint seeks to create share value through customer-driven management, investment, development, and redevelopment of warehouse, distribution, light manufacturing, airfreight and rail-related facilities. The Company also develops multi-facility industrial parks that are strategically located near highways, airports, and railroads. At December 31, 2003, the Company's investment portfolio of operating warehouse and other industrial properties consisted of 187 properties, totaling approximately 34.4 million square feet, with a diverse base of approximately 284 tenants engaged in a variety of businesses. At December 31, 2003, CenterPoint had accumulated control of a large land portfolio exceeding 3000 acres upon which 50.1 million square feet of warehouse and other industrial properties can be developed.” – Reuter’s Business Summary Health Care REITs Healthcare REITs build, acquire and lease specialty buildings such a hospitals, nursing homes, medical buildings and assisted-living facilities. This REIT sector is fairly immune to the recession, although they are largely dependent upon the financial health of the lessee which, in turn, rely on the medical reimbursements provided by the U.S. Government. Federal changing in health policy would obviously have a significant effect on healthcare REITs. An Example of Health Care REIT: Health Care REIT, Inc. “Health Care REIT, Inc. is an equity real estate investment trust (RIET) that invests in healthcare facilities, primarily skilled nursing and assisted living facilities in the United States. The Company also invests in specialty care facilities. During the year ended December 31, 2003, the Company had investments in 328 facilities located in 33 states and managed by 47 different operators. The portfolio included 219 assisted living facilities, 101 skilled nursing facilities, and eight specialty care facilities. In October 2003, the Company sold its investment in Atlantic Healthcare Finance L.P.” – Reuter’s Business Summary Self-Storage REITs The self-storage REIT sector is somewhat recession resistant. More surprisingly is the fact that corporate customers make up a significant portion of storage rentals. Barriers to entry are significantly lower than other types of REITs due to the smaller amount of capital necessary to construct a storage facility. An Example of Self Storage REIT: Sovran Self Storage, Inc. “Sovran Self Storage, Inc. is a self-administered and self-managed real estate investment trust that acquires, owns and manages self-storage properties. As of March 1, 2004, it had 265 owned and/or managed self-storage properties consisting of approximately 15.5 million net rentable square feet, situated in 21 states in the eastern and midwestern United States, Arizona, and Texas. Sovran Self Storage manages 11 of these properties for Locke Sovran I, LLC, an unconsolidated joint venture that is 45% owned by the Company. As of March 1, 2004, all but two of its properties conducted business under the trade name Uncle Bob's Self-Storage. The Company's self-storage facilities offer inexpensive, easily accessible, enclosed storage space to residential and commercial users on a month-to-month basis. All properties have a property manager on-site during business hours. Customers have access to their storage areas during business hours, and some commercial customers are provided 24-hour access.” – Reuter’s Business Summary Hotel and Resort REITs In the world of real estate investing, the hotel and resort sector is the one most closely tied to the overall economy. When times are bad, people travel less for business and pleasure, cutting right to the heart of these company’s bottom lines. As a result, investors in hotel REITs have to concern themselves not only with overbuilding but the economic outlook of both the geographic area in which the hotel or resort is located, as well as that of the entire country as well. An Example of Hotel and Resort REIT: LaSalle Hotel Properties “LaSalle Hotel Properties is a self-managed and self-administered real estate investment trust that buys, owns and leases primarily upscale and luxury full-service hotels located in convention, resort, and major urban business markets. As of December 31, 2003, the Company owned interests in 17 hotels with approximately 5,600 rooms/suites located in 10 states and the District of Columbia. Independent hotel operators manage the hotels. Substantially all of the Company's assets are held by, and all of its operations are conducted through, LaSalle Hotel Operating Partnership, L.P. The Company is the sole general partner of the operating partnership with an approximate 98.3% ownership as of the fiscal year ended October 31, 2003. The remaining 1.7% is held by other limited partners.” – Reuter’s Business

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

COMMUNITY PROPERTY

Community property is a type of joint ownership of assets between married couples. It's the law in nine states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Married couples can elect to have some or all of their property treated as community property in Alaska by stating so in a written contract, but this type of ownership is not mandatory as it is in the other states. What Does Community Property Include? The laws in community property states vary in their finer details, but community property means that all assets purchased or acquired by a couple during their marriage are owned equally by both of them. It is the case regardless of how the asset is titled. Gifts and inheritances are an exception. If someone specifically gives something to just one spouse, that property is his alone, and if a spouse inherits an asset, it's hers alone, regardless of whether they're married at the time. Earnings, income, and wages are also considered community property. John would own half of Mary's earnings and income and vice versa. Community Property Law Includes Debts Debts fall under the umbrella of community property, too. They're equally owed by both spouses regardless of which of them incurred them. If John runs up a $10,000 credit card bill in his own name then fails to make the payments, the lender can pursue Mary for the money even to the extent of garnishing her wages. A Couple's Separate Property Gifts and inheritances are referred to as a couple's separate property, as are assets that each spouse owned or acquired before the date of the marriage. If John owned a home before he married Mary, she isn't considered an equal owner of that property because its acquisition predated the marriage—unless it becomes "transmuted" into community property. It can occur if community money earned during the marriage is ever used to maintain the asset, such as to make repairs or to pay insurance premiums. Community Property and Divorce When a couple divorces in a community property state, each spouse is generally entitled to a half share of their marital or community property. Likewise, each spouse would be responsible for an equal share of all marital debts. But divorce laws can vary somewhat among the community property states, so consult with an attorney who practices in your state if you want to know the state's rules. For example, a prenuptial agreement can override community property law in California—if spouses consent to another arrangement in writing and their agreement meets all the rules for a qualified prenup, their property and debts would be divided according to the agreement, not community property law. Other states, sometimes called "equitable distribution" states, divide marital property and debts in a way that seems equitable or fair to the judge or by agreement between spouses. The division might be 60/40 or even 70/30, whereas it's typically 50/50 in community property states absent an agreement providing for some other division. Community Property and Death What happens to community property when one spouse dies? Again, it depends to some extent on the state. If the couple didn't make an estate plan, the intestacy laws of the state where they lived would govern who gets what. These laws tend to vary a great deal in community property states. For example, a surviving spouse would inherit all the community property in Texas if the couple had children together. But if the spouse who died had children from a previous marriage, those children would receive their parent's 50-percent share of the community property. The surviving spouse would receive only her own 50-percent share. A married individual living in a community property state can usually only pass his separate property to someone other than his spouse in his will or another estate plan. And, as is the case with divorce, a couple can make other provisions in a valid premarital agreement in many community property

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

8 HOME IMPROVEMENTS TO MAKE YOUR HOUSE SELL FASTER

If you’re thinking of selling your home within the next few weeks or months, preparing your home to go on the market can help you get the best price. Aside from making sure all major areas in the home are in good working condition, there are other simple home improvements that can entice buyers and get you to a sold home faster. While the following home improvements seem like minor changes, they can be the difference between multiple home offers and none at all. Give Your Kitchen A Facelift Kitchen remodels can set you back thousands of dollars, but unless your kitchen has seen better days – think broken cabinets and decor best suited to the 1970s – you can make some dramatic changes by making small tweaks. You can do simple things like replacing hardware, including drawer pulls, handles and sink faucets. Check your cabinet doors to make sure they close properly and aren’t crooked. If you have mismatched appliances, consider ordering new matching panels for them. If you’re feeling adventurous, paint your cabinets to give them a facelift or even replace cabinet doors if the rest of your cabinetry is intact. Make It Bright And Airy Homes that appear dark and dingy are a turnoff for many buyers. To help make your home as bright as possible without adding windows, swap your curtains with sheer ones, ideally in brighter colors (white is also good). Remove any outdated draperies and make sure to keep window treatments as open as possible when showing the home. Clear The Clutter Yes, it’s pretty much common sense, but it bears repeating – having a home that’s clean and free of clutter is more appealing to buyers. Paring down your possessions and having plenty of space in the home will make it easier for buyers to envision themselves living in the home. Tidy up shelves, clearing as much as you can, and store extra items in your garage or, if you need more space, in a storage unit. Possessions to remove include seasonal items, toys, and bulky and excessive furniture. While you’re clearing out clutter, consider rearranging furniture so it looks less crowded. Increase Storage Clearing out the clutter from your closets can show prospective buyers there can be plenty of storage space – a major selling point for a home. If you have small storage areas, spend some money on adding closet systems to your pantries and bedroom closets to maximize space. You can take it a step further and add in other types of storage, like a small shed in the yard or shelving systems in the garage, to showcase how much space there is for storage. You can find many of these items in home improvement stores. Paint Can Go A Long Way If you have holes, scratches or kids’ drawings on the walls, it’s probably a good idea to clean and patch those areas. Painting the walls can also really freshen up a space, make it bright and help a buyer see themselves living in the home. Painting neutral colors like white, grey and tan is best if you want to attract as many offers as possible. Painting the walls can take a weekend or less and won’t set you back a ton of cash. Don’t Forget Your Bathroom Besides kitchens, bathrooms are one of the places that buyers remember most. Like kitchens, you don’t need to spend thousands of dollars on a remodel. Making changes like switching up the hardware and light fixtures and adding in shelving for extra storage can do wonders for the space. Update Flooring Dingy and outdated carpet can turn off even the most eager of buyers. If you’re looking for a budget-friendly option, rent a carpet cleaning machine and get the flooring looking nice and new. Otherwise, it could be worth it to replace the flooring with new carpet, laminate flooring or even tile. Get Some Curb Appeal As the saying goes, you can only make one first impression – make sure it’s a good one. Aside from making sure that the outside of the house is clutter-free, work on the curb appeal. Consider some potted plants or shrubbery, a nicely mowed lawn and a freshly painted door. Even changing up the hardware, like adding new doorknobs and light fixtures, can go a long

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

4 THINGS A COMMERCIAL INVESTOR SHOULD KNOW

MISTAKE #1: DON’T OVERPAY It’s not unusual for a commercial real estate investor that is new to commercial real estate to overpay for a commercial income property. This is usually due to a misunderstanding of what the key metrics are in determining whether or not a particular property will be profitable. For example, many investors assume that CAP rate is the best method of assessing a commercial income property’s profit potential. In fact, there are numerous factors that can be assessed that impact heavily on net operating profit – even for triple net properties, which are viewed as sure-fire winners by most investors. MISTAKE #2: DO CONSIDER THE AGE OF THE PROPERTY Don’t rush to purchase old properties because of the great price. Older commercial income properties means a greater chance that major repairs will be needed, eating away at your profit. MISTAKE #3: DON’T SKIP DUE DILIGENCE It’s easy to avoid checking out a commercial property thoroughly. Between the numerous charts, historical data, and other often mind-numbing information, you might be tempted to rely on hearsay, or to stick with the small amount of information given to you by the seller. Don’t be fooled, however, by smooth-talking sellers assuring you how much money you’ll make from a commercial investment property. Make sure you investigate factors such as population demographics, unemployment rates, and other key metrics. MISTAKE # 4: DON’T GO AT IT ALONE With commercial income properties, that means putting together an experienced team that includes: an experienced real estate lawyer, contractor, property manager and commercial real estate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

BENEFITS OF USING AN LLC WITH A SELF-DIRECTED IRA

Benefits of Using an LLC with a Self-Directed IRA The process of using a Self-Directed IRA to buy non-traditional or alternative investment assets can be confusing and seem restrictive. One of the ways to simplify the process is by utilizing an LLC to make your investments. A Self-Directed IRA is just like any other type of IRA in that you need to specify if it is a Traditional, Roth, SEP, SIMPLE, Inherited IRA or even an Individual 401(k) or Health Savings Account (HSA). Many investors also do a direct rollover to their IRA from a defined contribution or defined benefit plan into their self- directed IRA. You will then need to work with an IRA Custodian, like Mainstar Trust, that will allow you to invest in non-traditional assets. Most IRA Custodians require that you invest in stocks or mutual funds. However, Self-Directed IRA Custodians allow you to invest in non-traditional investments, which include using your IRA to invest in Notes, Privately Held Businesses, Private Equity, Regulation D, Hedge, Non Traded Reit, Oil and Gas and Limited Partnership Funds as well as Real Estate. The LLC structure provides added IRA investment flexibility for many other types of options including Tax Liens, Equipment Leasing, Precious Metals, Cryptocurrency and allows the most flexibility for all varieties of real estate. You can invest in many types of real estate with your self-directed IRA LLC, residential, commercial, raw land, from single-family to multi-family homes, from building lots to vacation property, and even contracts for sale and lease options There are many types of real estate held by IRA accountholders in an LLC including residential, commercial, raw land spanning from single-family to multi-family homes, and from building lots to vacation property, and even contracts for sale and lease options. How to use your IRA to invest in an LLC? In the beginning of the process, an IRA account is opened with a Custodian. If you choose to use the LLC structure, while the setup and funding of that account is occurring, the LLC administrator like STC Inc. is creating a single member LLC that will be owned by the IRA. The LLC will be setup in the state of your choice and you will decide the name of the LLC. After the IRA account has been setup and the LLC has been formed with the state, the Custodian will fund the LLC with your IRA funds. This is viewed as your IRA buying shares of the LLC. At this point the LLC is ready to invest as a tax deferred or tax free (Roth) entity. Using Your Self-Directed IRA to purchase real estate in an LLC The LLC is especially beneficial when the IRA owner wants to purchase Real Estate within a Self-Directed IRA. When the IRA owner is ready to make an investment, a phone call is placed to the administrator to get the investment process started. The administrator will request certain documents so they can begin the review process. Based upon these documents and questions that the administrator will ask, each transaction is reviewed for IRS compliance before funding the transaction. Even though this review process is taking place, the funding of the transaction can still occur within 24 business hours as long as the client has provided the appropriate documentation. Since the IRA LLC is making the investment, the property is titled in the name of the IRA LLC and the IRA Owner can sign on its behalf. If the property is being purchased in the name of the IRA and not an LLC, then the review process is completed by the Custodian. The custodian’s review process typically does not take place in the same time frame. The Custodian is also the party that signs all closing paperwork when real estate is bought directly in the name of the IRA and not the LLC. Many times the delays created by the custodian’s review and the need for original documents to be sent back and forth, an IRA investor can miss deadlines to participate in an investment when they cannot meet quick settlement dates. Also, the settlement company may not be familiar with dealing with an IRA as the purchaser of a property. But when an IRA LLC purchases the property, it looks just like any other LLC that is purchasing a property, which is viewed as a routine transaction for settlement companies. After the real estate has been purchased by the IRA LLC, the use of the LLC is beneficial whether the property will be used as a rental property or will be rehabbed and sold. It is usually a good idea to use a property management company when your IRA purchases a rental property but if you don’t want to pay the additional fees that a management company will charge you, you can have the renter make the checks out to the LLC and send them directly to STC to credit to your account. Any expenses associated with the property must also be paid from the IRA LLC and these invoices are paid the same day that they are received by STC. The same is true for invoices that are related to the rehab of the property, vendors can be paid quickly as well as insurance or taxes. When the time comes to sell the property, the process is simplified by using the LLC just as it was when the purchase occurred. Another benefit of using the LLC structure with your Self-Directed IRA is asset protection. When most real estate investors purchase properties they do so using an LLC to protect their personal assets or other investment assets from potential lawsuits or creditors. The members of the LLC are not personally liable for any debts or court judgments incurred by the LLC. The IRA LLC offers the account owner (the IRA) the same type of protection for the assets owned by the IRA LLC. Even if you are not looking to invest your Self-Directed IRA in Real Estate, you can still benefit from the quick review when you are ready to make an investment. If you are looking to be a lender on a note or invest in a privately held company, the administrator will still review the transaction to make sure that you are not engaging in a prohibited transaction, this review will take place within 24 hours of the documentation being received. The use of an LLC is not required when creating and using a Self-Directed IRA but the advantages should definitely be considered when determining the best type of account structure for your individual

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REVOCABLE TRUST VS. BENEFICIARY DEED?

REVOCABLE TRUST VS. BENEFICIARY DEED? When a person dies owning real property in his or her name, probate may be required in order to transfer that property to the heirs of the deceased person. Because of the costs, delays and hassles associated with going through probate, many people desire to transfer, or to at least structure the future transfer of, their real property, prior to their deaths. Common methods of probate avoidance for real estate include the following: 1. Hold real property with a right of survivorship, either in joint tenancy or as community property; 2. Convey outright title to real estate by way of pre-death gift; 3. Establish a living revocable trust to own and hold real property; or 4. Use a beneficiary deed, deed upon death, or transfer on death deed (all synonyms referring to the same instrument) to make the transfer of real estate effective upon death. As with all estate planning techniques, each of the above options carries with it potential burdens and benefits. While using a joint tenancy or other titling options with rights of survivorship is sometimes to referred to as the “Poor Man’s Estate Plan” or “Home Spun Estate Planning”, this article will focus on the particulars and problems with using beneficiary deeds. A Beneficiary Deed which will effectively transfer the real property to the named beneficiary upon the death of the grantor. These deeds are revocable, so that if the grantor changes her mind she may revoke the conveyance. To be effective these Beneficiary Deeds, as they are sometimes called, must be recorded prior to the death of the grantor. While Deeds upon Death may initially appear to be less expensive than establishing and using a revocable trust, there are many downsides which ought to be considered prior to going down the Transfer on Death route. Some of these problems are as follows: 1. Transfer on death forms or deed upon death forms Forms for beneficiary deeds are readily available online but may prove unreliable. Unless a grantor uses the correct language, as required by the Deed upon Death Act, the transfer will not be effective. 2. Difficult to get title insurance Many title insurance companies are refusing to issue a title insurance policy until the new owner has owned the property for at least eighteen (18) months after the grantor’s death. If in such case, the beneficiary desires to sell the property soon after the grantor’s death, especially to a non-cash buyer, the new buyer may have problems obtaining title insurance, and, therefore, may have problems borrowing money to buy the property, seeing how most mortgage companies require title insurance before making a loan. It is possible that probate can be done to rectify this situation, but this, of course, defeats the purpose of the transfer on death deed which was to avoid probate. 3. Vulnerability to claims by grantor’s creditors Some States allow the creditors of the grantor’s probate estate to enforce their liabilities against a property transferred pursuant to a deed upon death for up to 18 months following the grantor’s death. 4. Vulnerability to claims by beneficiary’s creditors As the creditors of the grantor may have increased opportunity to attach the real estate being transferred by way of beneficiary deed, so also might the creditors of the beneficiary be able to attack the property upon the death of the grantor. For example, in the event a beneficiary is going through a divorce, bankruptcy, insolvency or has a large judgment against them, the related creditors in those actions may be able to legally attach and take the value of such real property. 5. Real Property Transfer Taxes When the deed upon death is recorded there is no real estate transfer fee at that time. However, when the grantor dies and the new owner (the beneficiary) files his “Death of Grantor Affidavit,” there will be a real property transfer tax due unless the beneficiary and the grantor are not husband and wife or parent and child. In the alternative, using a living revocable trust will help the beneficiary avoid the payment of real property transfer tax, regardless of the beneficiary’s relationship to the grantor. 6. Beneficiaries do not handle contingencies well The transfer upon death deed does not provide for solutions to contingencies in the same way a revocable trust can. For example, a trust will generally specify that upon Mom’s passing, any trust property, including real estate, will instead be distributed to Son, and if Son does not survive Mom, it is instead to be given to the children of Son. Moreover, trusts can provided that distributions to minor children, or anyone else who may be incapacitated or vulnerable, will not be made until such beneficiaries attain certain ages, levels of education, or other benchmarks denoting maturity and sensibility. Beneficiary deeds do not have these same capabilities built in and therefore, a transfer by deed upon death might be soon wasted or spent by a spendthrift child or otherwise vulnerable beneficiary. While trusts may cost a bit more in the beginning, they unusually provide greater flexibility and savings in the long-run. Because of the potential problems that a beneficiary of a Deed on Death might face, it is recommended that a person speak with a lawyer prior to drafting, signing or recording a deed upon death. Many options for transfer of real property on death exist. In the proper circumstance, a lawyer might recommend that the deed upon death is right for you. In other cases, as described above, other options might be

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SIMULTANEOUS CLOSING

What Is Simultaneous Closing? Simultaneous closing (SIMO) is a real estate financing strategy in which two simultaneous transactions occur during the closing on a single piece of property. In this type of arrangement, the seller creates a mortgage note on the property to help finance the property for the buyer. The note is then sold to an investor upon closing, at which time the investor pays the seller cash. The buyer thus makes mortgage payments to the investor holding the note, the seller receives cash from the investor for the note, and the buyer receives the title to the property. This removes the seller from future transactions, as he or she will not receive mortgage payments. In a typical simultaneous closing scenario, the buyer and seller would negotiate and agree upon most of the details of the sale, although the investor may have some input or offer some suggestions. Once the closing has been completed, all further transactions related to the property will take place between the buyer and the investor who has purchased the note. Understanding Simultaneous Closing (SIMO) Simultaneous closing (SIMO) can have some advantages for both the buyer and seller, even though it can be a bit more complex than the standard property sale transaction. The seller may be motivated to initiate a simultaneous closing if cash is needed in the short term. The buyer is more likely to receive favorable financing from the seller because of the shortened transaction period. However, there are some considerations to keep in mind. Some companies will not insure the property title during a simultaneous close due to the speed of the transaction since the parties' creditworthiness will be harder to determine in such a short time. In recent years, the real estate industry has seen a rise in predatory lending, mortgage fraud and other deceptive practices, which has made title insurance companies more cautious about any transactions that involve complex steps, or those that are processed on a timeline that is faster than the typical schedule. How Simultaneous Closing Differs From Concurrent Closing When the term simultaneous closing is used in this context, it is different from when the phrase is sometimes used by real estate agents or buyers to mean two closings in a rapid-fire succession of two properties, one right after the other. That is sometimes also called a concurrent closing, and usually involves a situation where the purchase of one property is contingent on the prospective buyer selling their existing

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

STIGMATIZED PROPERTY

Stigmatized property In real estate, stigmatized property is property that buyers or tenants may shun for reasons that are unrelated to its physical condition or features. These can include the death of an occupant, murder, suicide, and believe that a house is haunted. Controversy exists regarding the definitions of stigma and what sorts of stigma must be disclosed at sale. It is argued that the seller has a duty to disclose any such history of the property. This, in practice, falls into two categories: demonstrable (physical) and emotional. Local jurisdictions vary widely in their interpretation of these issues and occasionally contradict federal law. Types of stigma Many jurisdictions recognize several forms of stigmatized property and have passed resolutions or statutes to deal with them. One issue that separates them is disclosure. Depending on the jurisdiction of the house, the seller may not be required to disclose the full facts. Some specific types must always be disclosed, others are up to the jurisdiction, and still others up to the realtor. The types of stigma include: Criminal stigma: the property was used in the ongoing commission of a crime. For example, a house is stigmatized if it has been used as a brothel, chop shop, or drug den. In the case of drug dens, some drug addicts may inadvertently come to the address expecting to purchase illegal drugs. Most jurisdictions require full disclosure of this sort of element. Debt stigma: Debt collectors unaware that a debtor has moved out of a particular residence may continue their pursuit at the same location, resulting in harassment of innocent subsequent occupiers. This is particularly pronounced if the collection agency uses aggressive or illegal tactics. Minimal stigma is known to, or taken seriously by, only a small select group, and such a stigma is unlikely to affect the ability to sell the property; in such a case, realtors may decide to disclose this information in a case-by-case basis. Murder/suicide stigma: Some jurisdictions in the United States require property sellers to reveal if murder or suicide occurred on the premises. California state law does if the event occurred within the previous three years. To protect sellers from lawsuits, Florida state law does not require any notification. In North Carolina, sellers and agents do not have to volunteer information about the death of previous occupants, but a direct question must be answered truthfully. Phenomena stigma: Many (but not all) jurisdictions require disclosure if a house is renowned for "haunting", ghost sightings, etc. This is in a separate category from public stigma, wherein the knowledge of "haunting" is restricted to a local market. Public stigma: when the stigma is known to a wide selection of the population and any reasonable person can be expected to know of it. Examples include the Amityville Horror house and the home of the Menendez brothers. Public stigma must always be disclosed, in almost all American and European jurisdictions. Legal status At least in the United States, the principle of caveat emptor ("let the buyer beware") was held for many years to govern sales. As the idea of an implied warranty of habitability began to find purchase, however, issues like the stigma attached to a property based on acts, "haunting", or criminal activity began to make their way into legal precedents. In Stambovsky v. Ackley the New York Supreme Court, Appellate Division, affirmed a narrow interpretation of the idea of stigmatized property. The court held that since the property in question was previously marketed by the seller as a "haunted house" he was estopped from claiming the contrary. The majority opinion specifically noted that the veracity of the claims of paranormal activities were outside the purview of the opinion. Notwithstanding these conclusions, the court affirmed the dismissal of the fraudulent misrepresentation action and stated that the realtor was under no duty to disclose the haunting to potential buyers. A previous version of this article stated that serious illness (such as AIDS) is also a reason a property may become stigmatized, citing a Florida law that contradicts federal law.[2][6] However, under federal fair-housing laws, persons with AIDS are considered handicapped and members of a protected class. The fact that an occupant of a property has AIDS does not require disclosure to a prospective buyer. Several states have created specific statutes in the US adding "stigmatized property" verbiage to their legal

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WIRE FRAUD IN REAL ESTATE CLOSINGS

Imagine arriving at the settlement agent’s office for your closing. Everything went without a hitch: The buyer provided all documentation plus the Realtor®, closing attorney/title company, and lender have performed at a high level of customer service. Even the moving truck is ready to unload the buyer’s life into their dream home. Then, one of the worst things that could possibly happen, does! The buyer’s wired funds for closing have been stolen by scam artists. Typically, that means gone and usually, nothing can be done. Wire fraud is so prevalent that many attorneys, lenders, and Realtors® even include a warning about it in their email signatures. For example, a local closing attorney’s email signature everyone receives states, “We do not accept or request wiring instructions or changes to wiring instructions via email. Always call to verify.” How Mortgage Closing Wire Fraud Works Pretty much everyone knows that wired funds are considered good, usable funds right away. Actually, it would be very unusual for a bank to put a hold on a wire for a real estate closing. So, if a scam artist is going to steal funds, they are going for these funds that are usually large amounts. Plus, because they are considered ready and available funds, it makes for a prime target. The scammers pretty much follow these steps in a wire fraud scheme: Locate a prime target through phishing scams Access / intercept their email account Create a duplicate email of the target complete with email signature Edit the wiring instructions Send the falsified email to the person sending the wire Receive the wire If not caught quickly, they are long gone with the money The Setup You’ve seen the emails that sometimes get through junk or spam filters that look like they could be from your credit card company or bank. Well, that is what is how the process starts for wire fraud. These phishing schemes are looking for the perfect candidate such as a lender, attorney, or real estate agency. Next, they gain access to their email and strategically pounce on a certain transaction(s). By now, the scammers would have already intercepted the closing attorney’s wiring instructions and completed edits for the bank routing information. They are ready for someone to drop the ball during the closing process. “Our Wiring Instructions Have Been Updated” or “We Have Sent You the Wrong Wiring Instructions” The Switch Closing day is near. Now, it is time for funds to be sent to settlement by the buyer or lender. Scammers then send the email from an address that may appear similar to the settlement company’s email. The falsified email states something like “Our wiring instructions have been updated, we didn’t receive your wire, or we sent the wrong instructions.” Plus, the attached wiring instructions have the scammer’s bank routing information. Thus, someone who isn’t paying attention and doing their due diligence could then send their wired funds, meant for closing, to an off-shore account more than likely. Then, if the issue isn’t caught immediately by the bank in time, the funds are usually lost forever. How Bad It Can Be That is pretty scary stuff! Now, we have mentioned “mortgage closing wire fraud,” but, this can happen just as easily with a cash sale. It could happen to any transaction that has a wire. Imagine a closing attorney losing $200,000 they wired to another closing. $50,000 that represented a buyer’s down payment. A mortgage lender or bank losing $350,000 which was wired to the settlement to represent the loan proceeds. There’s usually not an insurance policy that is going to cover this. So, what can you do? Let’s discuss that and probably the best practice is old school phone calls. Tips to Avoid Wire Fraud at Closing Obviously, these scammers have sophisticated systems to commit these crimes. It is hard to admit it, but they are usually pretty smart. They’re just putting their smarts into the wrong side of the law. So, what can be done? First, make sure that virus, spyware, and malware software on your devices are updated at all times. Second, use common sense when opening emails and especially attachments. If you are not expecting it, don’t open it. If it is coming from your friend and it looks suspicious, call that friend to verify. Third, send any emails with borrower nonpublic information in a secure email. Actually, the Consumer Financial Protection Bureau (CFPB) requires this of lenders and attorneys. Look at the email address source. Is it different? If so, question it! Finally, what may be the least high tech but is very important – pick up the phone. Low Tech Wire Fraud Solution That’s right, these are high tech scams. So, using email is playing in their backyard. Therefore, look up the phone number for the correct intended wire recipient. That means you need to independently find the number and don’t use the one in the email. It could be the scammer’s number. While on the phone, verify the wiring instruction details. There is an even better option if you’re local. Physically go to the closing attorney’s office to obtain the wiring instructions, but if you have to send the instructions to an online or out of town bank, talk to your banker. Actually, lenders should even do the same things. Lenders are probably the easier and larger target. Constantly rushing to meet closing deadlines could cause a fraudulent email to be overlooked. Always, always, always call the closing attorney or settlement agent to verify wiring instructions and independently verify the phone number rather than using a phone number in an email. Never wire funds without double or triple checking the wiring instructions. It is a shame that we live in a world that such things happen, but it is our reality these days. Protect yourself against wire fraud during the real estate process. If you a Realtor, loan officer, mortgage closer, title company, closing attorney, paralegal, or anyone else in the real estate process, warn everyone you work with. Put it in your email signature, handouts, contracts, and disclosures. You really could save a company, buyer, or seller tens or hundreds of thousands of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

POOL OR NO POOL?

As we head into the heart of summer, thoughts naturally turn to fun in the sun while staying cool. For some, that might even mean contemplating the addition of a sparkling swimming pool. But what does it take to turn your backyard into a watery oasis? And do swimming pools add value to your property? To answer these questions and others, let's take a deep dive (pun intended) into the wonderful world of swimming pools. Humans have been building pools as communal baths and gathering places for thousands of years, but it wasn't until the post-World War II era that their popularity skyrocketed in residential use. In those early days, private pools were seen as a coveted luxury and a celebrity status symbol, but over time, in-ground pools have become more prevalent and accessible to all homeowners. Considerations Before calling your local pool installer, take a moment to consider your property's overall suitability. Large, level lots with good soil make installation cheaper and easier, while sloping yards, high water tables and sandy or rocky terrain will add to your excavation costs. When it comes to placement, you'll want to consider which parts of your yard get sun and shade throughout the day, where you're willing to sacrifice any existing landscaping and how the flow from patio to pool to the house might work best. You and your builder will also need to be aware of all municipal regulations which could include rules regarding fencing, property lines and more. Insurance is another factor to examine carefully. While your homeowners insurance policy may already cover swimming pools, check with your insurer and consider bumping up your liability coverage while you're at it. Construction Homeowners have more choices than ever when it comes to swimming pool materials. While the typical poured concrete method is still popular for in-ground pools, gunite – which uses a rebar framework spray-coated with a concrete and sand mixture – is a durable option that offers excellent flexibility and shorter installation times than plain concrete. Despite its durability, however, the porous surface of gunite pools makes them more prone to algae growth than other materials, and they may require an occasional resurfacing. Fiberglass pools arrive as a pre-made shell ready to be placed directly in the ground. This type of pool is amenable to customizations in size, shape, lighting, tanning shelves and steps, and custom edge treatments. While it's the most expensive option in terms of upfront costs, the smooth finish means lower maintenance expenditures over time. Fiberglass is also the fastest way to get to go from inspiration to pool party. In vinyl pools, a vinyl liner is applied to a structure of wood, cement, steel or polymer to create a smooth and flexible pool that is resistant to cracking and algae. Vinyl pools are customizable in terms of size, shape and color, and they are among the cheapest to install. However, even with the most meticulous care, the vinyl liner will need to be replaced every 10 years or so, and owners must be diligent about spotting any tears or leaks that could cause the pool liner to shift and bubble up. With the latest innovations in pool construction, even city dwellers can enjoy their own watery paradise thanks to plunging pools, jetted lap pools and pool-jacuzzi combos – many of which can be installed within an urban townhouse roof or basement. Water While our childhood memories may be filled with the pungent aroma of chlorine, today's swimming pools are likely to be maintained by more earth-friendly – and less smelly – means. To maintain pH levels and combat algae and bacteria, some homeowners choose the saline route, which is not, contrary to popular belief, chlorine free. So-called "saltwater pools," use a salt cell or generator to break down the sodium chloride in the water to create chlorine, but without the irritating chloramines that give it its trademark smell. Saline pools have higher upfront costs but lower operating costs. However, over time, the salt can degrade any metal components in or near your pool. Another alternative is a mineral pool system which uses magnesium chloride, sodium chloride and potassium chloride to keep things clean while cutting chlorine use in half. The water in mineral pools feels soft and silky without the corrosiveness of saline systems. Costs Costs for installing a swimming pool vary widely based on size, type, terrain and more. Home improvement website HomeAdvisor outlines several of the cost considerations involved for straightforward installations, pegging the price of a concrete or gunite pool at $35,000 to $100,000 with fiberglass and vinyl installations running closer to $20,000 to $60,000. The total bill for ongoing operating costs, including maintenance, heat and filtration, can reach $4,000 per year for concrete or gunite, $1,500 per year for fiberglass and $1,700 for vinyl. Don't forget that the construction costs above don't include special features, such as lights, slides and waterfalls. When preparing the budget, you'll also want to plan for the paving or decking surrounding the pool, and for the cover that will go on top of the pool when it's not in use. At high-end properties, the addition of a pool house or cabana would add to the ultimate indoor-outdoor living experience. And don't forget to include a bit of room in the budget for an Instagrammable inflatable swan and an ample supply of pool noodles. Impact With their water use, energy use and chemicals, there's no getting around the fact that swimming pools are an environmental concern. With that in mind, the environmental organization the Sierra Club offers a few tips for mitigating some of the impact: First, cover your pool to prevent evaporation, maintain water quality and reduce heat loss. Second, invest in an Energy Star-rated pump and lastly, consider incorporating a natural or seminatural filtration system that uses plants, rather than chemicals, to keep the water clear. Value Now that we've addressed the options and costs associated with swimming pools, we must answer the question most homeowners have top of mind: Will adding a pool increase my home's value? Well, it depends. While HouseLogic.com, the home improvement site run by the National Association of Realtors, notes that a swimming pool could boost your home's sale price by up to 7%, several factors will influence that figure. Chief among them is whether you live in a warm climate where pool use is feasible year-round and whether you live in a community where most of your neighbors have swimming pools. All in all, a nicely designed pool that is in good condition and in keeping with the overall size of your yard can help cool off your family now and heat up your listing price when it comes time to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS EMINENT DOMAIN?

What is Eminent Domain? Eminent domain is the power the United States government, states, and municipalities to take private property for public use, following the payment of just compensation. Breaking Down Eminent Domain Eminent domain is a right granted under the Fifth Amendment of the Constitution. Similar powers are found in most common law nations. It is called "compulsory purchase" in the U.K., New Zealand and Ireland, "expropriation" in Canada and "compulsory acquisition" in Australia. Private property is taken through condemnation proceedings, in which owners can challenge the legality of the seizure and settle the matter of fair market value used for compensation. The most straightforward examples of condemnation involve land and buildings seized in order to make way for a public project. It may include airspace, water or the dirt, timber, and rock appropriated from private land for the construction of roads. Eminent domain can include leases, stocks, and investment funds. In 2013, municipalities began to consider using eminent domain laws as a way to refinance underwater mortgage by seizing them from investors at their current market value and reselling them at more reasonable rates. Congress passed a law prohibiting the Federal Housing Administration from finance mortgages seized by eminent domain, in 2016. But it is still a live issue that could undermine the mortgage market. Because contract rights, patents, copyrights, and intellectual property are all subject to eminent domain, the Federal government could, theoretically, use eminent domain to seize Facebook and turn it into a public utility, to protect people's privacy and data. Eminent Domain Abuses The definition of what constitutes a public project has been expanded by the Supreme Court, from highways, trade centers, airport expansions, and other utilities, to anything that makes a city more visually attractive or revitalizes a community. Under this definition of public use, eminent domain began to encompass the interests of big business. General Motors took private land for a factory in the 1980s because it would create jobs and boost tax revenues. Seizing land for private use has led to serious abuses. Most notoriously, Pfizer seized the homes of a poor neighborhood in New London, Connecticut in 2000 to build a research facility. Americans were outraged to learn a city could condemn homes and small businesses to promote private development. While the Supreme Court upheld this ruling in 2005, a number of states passed new laws to protect property owners from abusive eminent domain takings. Long after the homes were bulldozed, Pfizer abandoned its plans, leaving behind a wasteland. Inverse Condemnation There is also legal debate about whether onerous regulations constitute a taking. Private property owners have sued the government in proceedings called inverse condemnation, where the government or private business has taken or damaged property but failed to pay compensation. This has been used to obtain damages for pollution and other environmental problems. For example, electrical utilities can be found liable for economic damages caused by a wildfire they started. And the property owners in Houston, who were deliberately flooded during Tropical Storm Harvey, when the Army Corps of Engineers released a torrent from Houston's two reservoirs, are demanding compensation under inverse

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A LEGAL GIFT?

A gift, in the law of property, is the voluntary transfer of property from one person (the donor or grantor) to another (the donee or grantee) without full valuable consideration. In order for a gift to be legally effective, three requirements must be met: Intention of donor to give the gift to the donee (donative intent) Delivery of gift to donee. Acceptance of gift by donee. Intention The donor of the gift must have a present intent to make a gift of the property to the donee. A promise to make a gift in the future is unenforceable, and legally meaningless, even if the promise is accompanied by a present transfer of the physical property in question. Suppose, for example, that a man gives a woman a ring and tells her that it is for her next birthday and to hold on to it until then. The man has not made a gift, and could legally demand the ring back at any time before the woman's birthday. In contrast, suppose a man gives a woman a deed and tells her it will be in her best interest if the deed stays in his safe-deposit box. The man has made a gift and would be unable to legally reclaim it. Delivery The gift must be delivered to the donee. If the gift is of a type that cannot be delivered in the conventional sense - a house, or a bank account - the delivery can be affected by a constructive delivery, wherein a tangible item allowing access to the gift - a deed or key to the house, a passbook for the bank account - is delivered instead. Symbolic delivery is also sometimes permissible where manual delivery is impractical, such as the delivery of a key that does not open anything but is intended to symbolize the transfer of ownership. Certain forms of property must be transferred following particular formalities described by statute law. In England, real property must be transferred by a written deed. The transfer of equitable interests must be performed in writing by the owner or their agent. A gift is assumed when property owner deeds real estate as joint tenants with rights of survivorship. Regardless of contribution to purchase price, such a deed guarantees each tenant equal shares upon sale or partition of the property. Acceptance The donee must accept the gift in order for the property transfer to take place. However, because people generally accept gifts, acceptance will be presumed, so long as the donee does not expressly reject the gift. A rejection of the gift destroys the gift so that a donee cannot revive a once-rejected gift by later accepting it. In order for such an acceptance to be effective, the donor would have to extend the offer of the gift

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SELLER DISCLOSURE REQUIREMENTS IN MISSOURI

You are thinking of moving, and want to put your Missouri home on the market. Most states have legislation that would require home sellers to give an extensive written disclosure report to potential buyers. Such reports typically identify all material defects in the property, from a broken oven in the kitchen to a leak in the basement. Ironically, the “Show Me State” doesn’t make you show very much. Relatively few portions of Missouri law involve specific disclosures that home sellers must make to potential buyers. If, however, you use the services of a real estate agent, your agent may need to make certain disclosures to the buyer based upon professional regulations and state law. And there are some good reasons for you to give the buyer a full disclosure report anyway, notwithstanding the lack of explicit legislation requiring you to do so. What sorts of disclosures does Missouri require, and what disclosures might you want to make regardless? Real Estate Regulations in Missouri Missouri has only a few statutes that specifically require a home seller to make disclosures to potential buyers. The most explicit is Missouri Rev. Stat. § 442.606. This statute requires that if the property is or was used as a site for methamphetamine production, the seller must disclose that in writing to the buyer. Methamphetamine—also known as meth, crystal or ice—is a dangerous and illegal stimulant drug sometimes manufactured in homes. You need to disclose this criminal history only if you “had knowledge of such prior methamphetamine production.” In other words, you need not examine old police records to see whether your house was ever the site of drug production “related to methamphetamine, its salts, optical isomers and salts.” In a similar vein, the Missouri statute requires you to disclose in writing whether the property was the site “[e]ndangering the welfare of a child” through “physical injury.” This requirement is unique to Missouri. Again, you must only disclose incidents about which you are aware. For example, if you knew that the prior owner of the home was convicted of abusing a minor child there, this would qualify for disclosure under Missouri Rev. Stat. § 442.606. Missouri specifically allows you to remain silent on certain matters related to "psychological impacts" on the property, including whether prior occupants of the home had HIV/AIDS or whether the home was the site of a murder, felony, or suicide. (See Missouri Rev. Stat. § 442.600.) Beyond these specific requirements, Missouri courts will typically enforce caveat emptor clauses in purchase contracts. Under the doctrine of caveat emptor (“let the buyer beware”), judges ordinarily refuse to compensate buyers for home defects found after the purchase unless the seller did something to actively prevent the buyer from inspecting the property to find all of the defects or lied to the buyer directly about the condition of the property. This equation changes if you use a licensed real estate agent to help sell your home, however. Agents are held to certain standards for honesty under Missouri Rev. Stat. § 339.730.1, which requires that your agent “disclose to any [potential buyer] all adverse material facts actually known or that should have been known by the [agent].” In other words, licensed real estate agents cannot lie for you without risking their license. For example, if you tell your agent that you want to sell your home quickly because termites are about to eat the last structural beam, this would be the sort of “adverse material fact” about which the agent would be legally obligated to inform the buyer. Still, an agent “owes no duty to conduct an independent inspection or discover any adverse material facts for the benefit of the [buyer] and owes no duty to independently verify the accuracy or completeness of any statement made by the [seller] or any independent inspector.” Thus, your agent does not need to verify his or her knowledge of your property, or perform any sort of inspection. The agent simply cannot lie for you. Value of Disclosing More Than the Law Requires to Home Buyers in Missouri Initially, you may feel fortunate to live in a state that doesn’t force you to reveal damaging defects about your property beyond particular criminal histories. However, you may be surprised to learn that there are short- and long-term benefits and protections associated with making disclosures—and that, as a result, many Missouri sellers choose to affirmatively make such disclosures. The Missouri Association of Realtors promulgates a six-page disclosure form that you can use. (Also check with your own real estate attorney or agent to see whether he or she has a preferred form for you to use). The form asks you to check “Yes” or “No” in response to a few dozen questions—divided into 19 categories—about your property. For example, you are asked how old the home is, whether it is the subject of any liens or lawsuits, and whether you are aware of any major problems with various aspects of the house (heating, cooling, electrical, plumbing, and so forth). Although the form is fairly short, the answers should give potential buyers a fairly comprehensive snapshot of any known defects with your property—at least enough information to know what they should pay particular attention to when commissioning inspections of their own. The form also gives you additional space to explain any of your responses to those questions in greater detail, and encourages you to attach pages if necessary. So, you might wonder, what is the purpose of filling out this disclosure form if Missouri doesn’t require it? First, it sets clear expectations regarding the quality and condition of the home, and may smooth negotiations while you’re in escrow. The buyer will see from the start that you are being open and honest about the condition of the house, and will have less reason to react with shock and dismay if and when the inspection report turns up defects. (Imagine, by contrast, if you were to disclose nothing, after which the buyer hires a home inspector who finds unmitigated outbreaks of mold throughout the home. The buyer would be horrified, and would likely try to renegotiate the sale price or demand repairs.) Second, the disclosure prevents the buyer from later claiming that he or she did not know about a particular defect. Imagine that there is a busted HVAC system, and you do not say anything to the potential buyer. Even if the sale does close successfully, the buyer will quickly discover the problem upon trying to turn on the heat. Any claim that you “didn’t know” about it would be, at best, difficult to believe. The buyer will be angry; not just because you were dishonest by omission, but also because the buyer will now have to face significant repair costs. This creates a risk that the buyer may sue you for breach of contract or fraud. Of course, you may have strong arguments to beat such a buyer’s lawsuits, especially if your purchase contract included a caveat emptor clause. Still, nothing prevents the buyer from suing you. The buyer may lose the legal arguments, but you will be forced to hire an attorney and engage in the stress of litigation. Making a full and forthright disclosure would ensure that the buyer’s expectations match reality. All of this will help to make sure that your home sale in Missouri goes

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CONSIDERATIONS FOR RENTING OUT YOUR HOME

A rental contract is only as good as the terms outlined in the document, so it’s important for a landlord to give serious thought to the information and rules that are included. These requirements will provide a means for clear communication of what is expected both of the tenant and the landlord to avoid any future legal entanglements. Here are five things that landlords should consider including in their contracts: 1. Tenant Names and Occupancy Term Adding a tenant’s name to the rental contract may seem obvious, but which names to include can affect how much ground a landlord has to stand on in the event that back rent needs to be collected or other action taken. Anyone who is listed on the lease is the responsible party for rent and any damages to the property. If you only list one person on the lease but their spouse or partner is also living there, or if they have roommates, you will only be able to hold responsible that one person who is listed on the lease. 2. Lease Terms Unless a rental contract is month-to-month, the lease will call for a specific time period in which the unit or home can be rented. If a time frame is given, it’s important to note whether the lease will automatically renew and under what terms. Landlords usually have the option not to renew a lease, but in municipalities that have rent control, this flexibility may not be available. In areas with rent control, a landlord is generally not allowed to evict the tenant unless there is just cause, such as failing to pay the rent or violating terms of the lease. 3. Rent, Security Deposits, and Late Fees A lease not only needs to spell out the amount of rent to be paid each month, but also where the rent is to be deposited and how. Some landlords tell tenants they want them to go to the bank and make a direct deposit, some want an electronic payment, some want a cashier’s check, and others want them to mail a check. A due date for rent should also be stipulated, as well as the amount of any applicable late fees. In addition, specify the fee that will be charged for any bounced checks. The amount of the security deposit should also be stated. The amount charged for these items may have limits based on local ordinances, so landlords should inquire with the proper city agencies. 4. Repairs and Maintenance Questions surrounding whether the tenant or the landlord will be responsible for such things as maintenance of appliances and upkeep of the yard should be addressed. Suppose, for instance, a rental has bed bugs. Who is responsible for treating them? If it is the landlord, how many times will they treat it if the tenant is not following the rules to get rid of them? It’s a good idea to check with local, county and state fair housing or rental authorities on their requirements. The lease should note that if a landlord needs to do maintenance and repairs, he or she will provide written notice to the tenant at least 24 hours before entering the premises. Some cities may require 48-hour advance notice and will issue fines if that is violated. 5. Restrictions, Restrictions, Restrictions Many restrictions are usually included in rental agreements, ranging from whether tenants are allowed to have pets, to a limit on the number of cars that can be parked on the premises. Some landlords require tenants to obtain renter’s insurance and keep it current, and this is highly encouraged. The landlord's insurance generally does not cover a tenant’s loss, and you don’t want them to try to come after you. For those landlords who don’t make renter’s insurance mandatory, the lease should clearly state that the tenant is aware that he or she is responsible for insuring items and will not hold the landlord liable for any damages to personal possessions. Following these five tips will help make leasing a property as worry-free as possible and establish a good relationship between you and your tenant from the outset. Working with a knowledgeable attorney or real estate professional is also advisable to navigate municipal and state regulations and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EQUITABLE ESTOPPEL

Equitable estoppel is a defensive doctrine preventing one party from taking unfair advantage of another when, through false language or conduct, the person to be estopped has induced another person to act in a certain way, which resulted in the other person being injured in some way. This doctrine is founded on principles of fraud. It prevents one party from taking a different position at trial than s/he did at an earlier time if the other party would be harmed by the change. Generally, the elements that need to be proved are: There must be a representation or concealment of material facts. These facts must be known at the time of the representation to the party being estopped. The party claiming the benefit of the estoppel must not know the truth concerning these facts at the time of the representation. The representation must be made with the intention or the expectation that it will be acted upon. The representation must be relied upon and acted upon. The party acting upon the representation must do so to his or her detriment. Equitable estoppel is also termed as estoppel by conduct or estoppel in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SPECIAL USE PERMITS VS. VARIANCES

A special permit is generally required when a proposed use, due to its size or external impacts, needs greater scrutiny by the Town and may require special conditions to mitigate its impact. The Board's shall not grant approval or special exceptions unless the applicant demonstrates that "no undue nuisance, hazard, or congestion will be created and that there will be no substantial harm to the established or future character of the neighborhood nor of the town". In making its special permit decision, the granting authority is limited to consideration of the criteria detailed in the ordinance. The Board may not refuse to issue a permit for reasons unrelated to the standards of the ordinance. A variance is required if you want to change your property (dimensionally, not in use) in a way that is generally prohibited by the Zoning Ordinance and therefore requires an "exception". The applicant must show a hardship imposed by the ordinance which is caused by a unique condition of the lot or structure, and the hardship is owing to circumstances relating to the soil conditions, shape, or topography of the land or structure and especially affecting the land or structures, but not affecting generally the zoning district in which it is located – see Section 120-122. Relief may be granted without substantial detriment to the public good, and without nullifying or substantially derogating from the intent or purpose of such ordinance or bylaw. The criteria for a variance is very strict. Applicants may want to consider all other options before

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

DOES A REAL ESTATE CONTRACT HAVE TO BE IN WRITING?

The statute of frauds is a long-standing legal principle which requires certain agreements, including real estate contracts, to be in writing. Real estate contracts are generally enforced in state courts according to varying state laws. And, there are exceptions to state statutes of frauds. Therefore, each case should be independently evaluated. Writing Requirement Oral court testimony can be undependable. People may bend the truth or become confused on witness stands. The statute of frauds helps courts make more accurate determinations in real estate disputes by requiring written agreements. Basic information, such as parties' names, sales prices and property addresses, must be embodied in writing. An agreement is usually not invalid because minor details are missing. For example, a judge may determine the location for closing if it is not stated in writing. The statute of frauds is a long-standing legal principle which requires certain agreements, including real estate contracts, to be in writing. Real estate contracts are generally enforced in state courts according to varying state laws. And, there are exceptions to state statutes of frauds. Therefore, each case should be independently evaluated. Signatures Generally, the statute of frauds only requires the party being sued to have signed a real estate contract. For example, Betty reaches a verbal agreement with Bob to sell him her condominium. She types out a short agreement and signs it. The statute of frauds typically would allow Bob to enforce the agreement against Betty because she signed it. Bob, however, generally would not be held to the agreement since his signature is missing. The statute of frauds is a long-standing legal principle which requires certain agreements, including real estate contracts, to be in writing. Real estate contracts are generally enforced in state courts according to varying state laws. And, there are exceptions to state statutes of frauds. Therefore, each case should be independently evaluated. Performance The performance of a verbal real estate contract creates an exception to the statute of frauds. For example, Mike says he will buy Bill's home. Mike moves into the property and Bill accepts monthly payments toward the sales price. A court typically would not invalidate the parties' verbal understanding because they are actively carrying out their agreed terms. Acts of performance provide courts and juries with credible evidence to rely on in lieu of written

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

LEGAL VS. EQUITABLE INTEREST IN REAL ESTATE

The way you purchase a property can have long-lasting impacts on your ownership of said property. It is important to completely understand the titles involved in the purchase or insurance of your home to protect your rights as the titleholder. At a glance, the differences of an equitable title vs. a legal title may seem straightforward. There are, however, critical details you must understand to make the right decisions about the real property in your possession. Take a look at the finer points of these two types of titles. Legal Title A legal title refers to the responsibilities and duties the owner has in maintaining, using, and controlling property. Legal title is the actual ownership of the property. The documented name of the property owner, as visible through the public records, typically describes the person with legal title. Legal title grants true ownership of the property, and all that this entails – the bundle of rights that comes with land ownership. These rights include: Mineral rights Easement rights Development rights Possession and control Exclusive use Conveyance rights Right of disposition You have legal title if your name appears as the grantee on a deed. Legal title is “apparent” ownership, or ownership that is documented on paper. You may assume that your ownership of a property is complete with legal title, but this is not the case. Another party may have equitable title, restricting some of the ways you can use and enjoy the property. Equitable Title While a legal title focuses on the duties of the property owner, equitable title refers to the enjoyment of the property. Equitable title is the benefits the buyer will get to use and enjoy when he or she becomes the legal owner. Equitable ownership is not “true ownership.” In other words, someone with equitable title could not argue that he or she was the legal owner or possessor of the property in a court of law. True ownership requires legal title. Equitable title does, however, grant the person more consistent control over the property. That’s right – equitable title can be more important than legal title. With words like “benefit” and “enjoy,” you may assume that having equitable title does not come with a lot of ownership rights. In fact, the opposite is true. For example, the person with equitable title is often in charge of financing the property. Equitable title gives the right to access the property, and – most importantly – the right to acquire formal legal title of the land. Keep in mind that equitable title does not actually transfer ownership of the property. It simply gives the individual or entity the right to the use and enjoyment of the property. When purchasing a piece of property, it is important to gain equitable title. This will come with the right to obtain full ownership and property interest in the future. Equitable title establishes the person’s financial interest in the property. A property investor, for example, may hold equitable title but not legal title. Equitable titleholders will benefit from the property’s appreciation in value. Upon receiving legal title, someone with equitable title can then transfer the property to someone else and keep the difference in price of the home due to appreciation. Equitable Title vs. Legal Title: Differences and Similarities The main difference between an equitable title vs. a legal title is that the latter is the only one that gives actual ownership of the property. There are many smaller, more intricate differences that can vary on a case-by-case basis. In general, equitable title gives a person the right to use the land and enjoy the benefits that come along with its ownership. Legal title does not necessarily grant these rights. Equitable title does not allow the titleholder to sell or transfer ownership. Legal title is the only title that can do this. Legal title has the advantage over equitable in that it allows the legal titleholder to demand compensation from parties that purchase or lease the property. There are similarities between the two types of titles. Look at them as two halves of the same whole. Both grant certain rights to the individual or entity whose name appears on the title deed. Both are legally binding and enforceable in a court of law. An owner needs both to have “full” ownership and use of a property. In property purchases that use traditional mortgage loans, the distinction between equitable title and legal title does not apply. Instead, the bank or lender will confer both titles to the property in question using a deed of trust. The lender will then retain financial and legal interest in the property until the buyer pays off the loan. Where Do the Two Overlap? Ownership laws mean that property deeds are not always black and white. The property owner according to a deed may not be the only legal possessor of the piece of real estate. The law allows equitable title and legal title to belong to two separate parties. Someone may want to divide legal and equitable title for a land contract, in which the seller finances the buyer using a payment or loan plan. In this case, the buyer will have equitable title while the seller retains legal title until the buyer completes payments on the property. Equitable title and legal title may often overlap when dealing with a trust. Splitting the title of a property between different people may be a good idea if the property owner has more than one beneficiary. One person may have the rights of maintaining a property while another has rights concerning the property’s benefits and use after the property owner dies or passes the property on. Legal title may go to a trustee for a specific amount of time, while equitable title will go to another beneficiary who will gain legal title after a certain date. Disputes can arise between two parties with split equitable/legal titles. One’s rights under each title can vary according to the title agreement. Someone with equitable rights typically cannot sell or transfer the property. If someone with only an equitable title does so, the transaction may not be legally binding. Title disputes can be complex and require interference from an attorney. Sometimes one party may be eligible for a damage award or similar solution. It is important to fully understand your status as a titleholder in the ownership of a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

PARTITION OF REAL ESTATE

A partition is a term used in the law of real property to describe an act, by a court order or otherwise, to divide up a concurrent estate into separate portions representing the proportionate interests of the owners of property. It is sometimes described as a forced sale. Under the common law, any owner of property who owns an undivided concurrent interest in land can seek such a division. In some cases, the parties agree to a specific division of the land; if they are unable to do so, the court will determine an appropriate division. A sole owner, or several owners, of a piece of land may partition their land by entering a deed poll (sometimes referred to as "carving out"). Why forced sales occur Forced sales generally occur because owners of property are unable to agree upon certain aspects of the ownership. The owners may disagree on how to use the property, the amount of money to invest into the property, on their right to occupy and use the whole of the property. If the parties cannot come to an agreement, the case moves to court through a petition to partition action. As the number of cohabitants increases in the United States, the petition to partition action has become more common as a remedy to divide real and personal property. Property may be owned by more than one person either as joint tenants, tenants in common, and in some states tenants by the entirety. The choice of which tenancy to enter into is made by the parties at the time of purchase. With each type of tenancy, each owner has the right to occupy the whole. That means that owners are not allowed to designate certain rooms as their own, but each element of the property is enjoyed fully by all parties. Types of partition There are three kinds of partition which can be awarded by the court: partition in kind, partition by allotment, and partition by sale. A partition in kind is a division of the property itself among the co-owners. Partition in kind is a default method of property partition. In a partition by allotment, which is not available in all jurisdictions, the court awards full ownership of the land to a single owner or subset of owners and orders them to pay the person or persons divested of ownership for the interest awarded. Partition by sale constitutes a forced sale of the land, followed by division of the profits thus realized among the tenants. Generally, the court is supposed to order a partition sale only if the land cannot be physically divided, although this determination often rests on whether the economic value of the divided pieces is less in the aggregate than the value of the parcel as a single piece. See Delfino v. Vealencis, 436 A.2d 27 (Conn. 1980). A provision in a deed completely prohibiting partition will not be given effect, but courts will enforce a provision that temporarily restricts partition, as long as the restriction is

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MISSOURI TAX SALES

How Property Tax Sales Work in Missouri Under Missouri law, when you don’t pay your property taxes, the county collector is permitted to sell your home at a tax sale to pay the overdue taxes, interest, and other charges (Mo. Ann. Stat. § § 140.150, 140.190). (Missouri law also provides an alternative procedure to enforce the payment of taxes for certain places in Missouri. This article focuses on tax sales under Chapter 140 of the Missouri Revised Statutes. To find out what specific procedures are used where you live, consult with an attorney.) When the county will sell the home. It is common practice for the county to wait until a homeowner's taxes are three years delinquent before selling the home, though state law permits an earlier sale (Mo. Ann. Stat. § 140.160). (If you are having difficulties paying your property taxes, learn about your options to avoid a tax sale.) The purchaser doesn't get title to your home right away. The purchaser at the sale does not immediately get ownership of your home, because the law contains a mandatory waiting period, called a “redemption” period (see below). Instead, the purchaser will receive a certificate of purchase (Mo. Ann. Stat. § 140.290). This certificate acts as evidence of the purchaser’s interest in the property during the redemption period. What happens if you don’t pay off the debt. If you don’t pay off the debt during the redemption period, the purchaser can use the certificate of purchase to apply for and get title to your home. Notice Before the Tax Sale Takes Place The collector must attempt to inform you about a pending tax sale by publishing a list of delinquent lands (that is, properties with unpaid taxes) and mailing you a notice of sale. Notice by publication. The tax collector must publish notice in a newspaper once a week for three consecutive weeks before the sale (Mo. Ann. Stat. § 140.170). Notice by mail. Before the publication, the collector must send you notice by: First class mail and certified mail, if the property is worth more than $1,000 (Mo. Ann. Stat. § 140.150). How to Stop a Missouri Property Tax Sale You can prevent the tax sale from taking place by paying the delinquent taxes, penalty, interest, and costs at any time before the sale (Mo. Ann. Stat. § 140.150). What Happens at the Tax Sale The tax sale consists of a public auction where the collector sells the home to the highest bidder, so long as the highest bid equals or exceeds the amount of the outstanding taxes, penalty, interest, and costs (Mo. Ann. Stat. § 140.190). What happens if no one buys the home at the sale. If no one bids the minimum amount at the sale, then the collector will hold a second sale the following year (Mo. Ann. Stat. § 140.240). (Tax sales are typically held annually.) What happens if no one buys the home at the second sale. If no one bids the amount of the outstanding taxes, penalty, interest, and costs at the second offering, then the collector will hold a third sale (Mo. Ann. Stat. § 140.250). If no one buys the property at this third sale, the collector will be authorized to try to sell it at subsequent sales. How Long the Redemption Period Lasts After a Tax Sale in Missouri If you lose your home to a tax sale in Missouri, you can reclaim it by paying a certain amount: within one year after the sale, if it was sold at a first or second offering, or within 90 days if the property was sold at a third offering (Mo. Ann. Stat. § 140.340). This is called “redeeming” the home. If you don't redeem, you'll lose the home to the purchaser from the tax sale. There is no redemption period if someone purchases the home after a fourth or subsequent sale. (Learn more in Getting Your Home Back After a Property Tax Sale in Missouri.) Missouri’s Property Tax Sale Laws To locate Missouri’s tax sale statutes, go to Title X, Chapter 140, § § 140.010 through 140.722 of the Missouri Revised

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

ALIENATION

In property law, alienation is the voluntary act of an owner of some property disposing of the property, while alienable is the capacity for a piece of property or a property right to be sold or otherwise transferred from one party to another.[1][2][3][4] Most property is alienable, but some may be subject to restraints on alienation. In England under the feudal system, land was generally transferred by subinfeudation and alienation required licence from the overlord. Some objects are incapable of being regarded as property and are inalienable, such as people and body parts.[citation needed] Aboriginal title is one example of inalienability (save to the Crown) in common law jurisdictions. A similar concept is non-transferability, such as tickets. Rights commonly described as a licence or permit are generally only personal and are not assignable. However, they are alienable in the sense that they can generally be surrendered. English common law traditionally protected freehold landowners from unsecured creditors. In 1732, the Parliament of Great Britain passed legislation entitled “The Act for the More Easy Recovery of Debts in His Majesty’s Plantations and Colonies in America”, which required all real property in British America to be treated as chattel for debt collection purposes. The legislation was reenacted by many statehouses after the American Revolution, leading to the more commodified and transferable development of American property

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

8 SIGNS IT IS TIME TO WALK AWAY FROM A REAL ESTATE PURCHASE

Sign No. 1: The inspection turns up something majorly wrong Sure, you might cringe at some of the current owner's wallpaper choices. But cosmetic issues are relatively easy to fix compared with, say, a vintage electrical system that’s one spark away from a fire. Don’t ever, ever (ever!) ignore something major on the inspection report, such as sagging floors, cracks in the wall, or roof or drainage issues, says Christopher Bourland, senior appraiser at Mid-Atlantic Valuation Group in Wayne, PA. Any type of structural issue can quickly turn your dream home into a financial house of horrors. Sign No. 2: You sense that the builder cut corners We all want a house that has “good bones”—as in, one that will last. That’s why savvy home buyers should pay special attention to little hints that the builder or remodeler might have gone the low-quality route, says Jesse Fowler, president of Tellus Design + Build in Costa Mesa, CA. If you haven't already, use the final walk-through to scrutinize every nook and cranny. One of the signs Fowler looks for is fresh paint overspray on the inside or outside of window trim and light fixtures. “This overspray might be covering up inconsistencies in the finish—wood that doesn’t look like wood, for example," he says. "But more importantly, it quite often indicates that the contractor went with the lowest-quality painter, so it’s likely they cut corners elsewhere in places that are not so obvious.” Sign No. 3: Your title company uncovers an issue Title disputes can take years and thousands of dollars in legal expenses to resolve, Bourland says. Common title issues range from missing heirs who turn up and claim the house, to an illegal deed somewhere along the chain. Fortunately, title insurance is required in most transactions to protect you from this kind of thing. But Bourland warns it's a huge red flag if a title company will not provide title insurance for your property. Sign No. 4: The house is too unusual You love an open floor plan. But maybe the previous owner went a bit too far when he knocked out most of the walls upstairs to turn four bedrooms into a massive one-bedroom space. Weird—and yet it does seem like it could be cool and lofty. You know, if you never have kids. Or guests. “Only buy a heavily customized or unique home if you plan to live there for a long time, and the customization is something you actively like,” cautions Brian Davis, a landlord and real estate investor. But what if you do love it? Perhaps that castle that looks like it's straight out of "Game of Thrones" is your thing. Or maybe you love that the living room has been converted into a "Saturday Night Fever"-era disco. But just remember that weird (OK, we'll call them "eclectic") properties can be difficult to sell, Davis says. “Proceed with caution, because finding the next perfect buyer may not be quick and easy,” he says. Sign No. 5: You suspect your home might be environmentally contaminated Just like we know that a steady diet of cigarettes, Chicken McNuggets, and Red Bull is unhealthy, we also know a lot more these days about what building materials can cause health issues. Homes constructed from the early 1940s to the 1970s might contain asbestos or lead-based paint, both of which are responsible for all kinds of serious health problems. Other environmental issues could include a faulty septic system which can contaminate drinking water, or mold issues stemming from building materials such as stucco or siding, Bourland says. Some of these problems will be hard—and costly—to deal with. It's better to walk away, and save your sanity and your money. Sign No. 6: The Neighbors. Are. The. Worst. So maybe you're not moving in next to an actual fraternity house, but that doesn’t mean your neighbors don’t party like rock stars. Or have outdoor dogs that are always barking. Or indulge in strange hobbies. Those terrible neighbors could not only make your life miserable, they could also affect resale value if and when you decide to move, says Evan Harris, co-founder and CEO of SD Equity Partners in San Diego. Suss out potential problems with neighbors by visiting the house at different days and times, Harris suggests. That way you'll know if you'll need earplugs to deal with a next-door band practice on Tuesday nights. Sign No. 7: You're not in love with the neighborhood It's easy to fall in love with a home and dismiss the concerns you have with its location. Maybe the house is near a sewage plant or waste dump. Maybe it's too close to a freeway or airport. Or maybe the neighborhood feels just a little too gritty. Or maybe the location is great now, but is in the path of future freeways, neighborhood expansions, or a new shopping mall. “What looks like a piece of paradise might be slated to become a concrete jungle,” says environmental designer Pablo Solomon. Make sure to research the zoning plans for your neighborhood, and always trust your gut if something feels off. You can fix up a home, but you can't (usually) change the location. Sign No. 8: You can’t afford it There’s been that nagging thought that the house feels like a financial stretch, but you've convinced yourself you can make the mortgage payments. Even if it means skipping Tuesday night takeout or that weekend getaway in Vegas. But then you realize that you're one transmission issue or dishwasher breakdown away from being flat broke. Of course the best time to do this financial soul researching is while you’re house hunting, but even then you might not have a clear picture of exactly what the financial picture entails. Maybe you’re assuming a best-case scenario that there will be no financial hiccups, or your lender didn’t adequately communicate the exact closing costs or the monthly payment. It can be hard to walk away—especially if you’ve sold your old house, you've already begun packing, and you know you have to kiss your earnest money goodbye, says Todd Huettner, founder of Huettner Capital in Denver. “But the cost of buying a house you shouldn’t is far higher than the cost of leaving it behind if you’re worried about the payment,” he says, citing worst-case scenarios such as foreclosure, bankruptcy, and decimated credit. And never buy a property on the assumption that you can sell it if it isn't working for you, Huettner adds. “There might not be eager buyers or a conducive market,” he says. “If something’s not right, either figure out how you can make it right or walk

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REALTOR FIDUCIARY DUTIES

Fiduciary Duties A real estate broker who becomes an agent of a seller or buyer, either intentionally through the execution of a written agreement, or unintentionally by a course of conduct, will be deemed to be a fiduciary. Fiduciary duties are the highest duties known to the law. Classic examples of fiduciaries are trustees, executors, and guardians. As a fiduciary, a real estate broker will be held under the law to owe certain specific duties to his principal, in addition to any duties or obligations set forth in a listing agreement or other contract of employment. These specific fiduciary duties include: Loyalty ▪ Confidentiality ▪ Disclosure Obedience ▪ Reasonable care and diligence ▪ Accounting Loyalty A duty of loyalty is one of the most fundamental fiduciary duties owed by an agent to his principal. This duty obligates a real estate broker to act at all times solely in the best interests of his principal to the exclusion of all other interests, including the broker’s own self-interest. A corollary of this duty of loyalty is a duty to avoid steadfastly any conflicts of interest that might compromise or dilute the broker’s undivided loyalty to his principal’s interests. Thus, a real estate broker’s duty of loyalty prohibits him from accepting employment from any person whose interests compete with, or are adverse to, his principal’s interests. A classic example of breach of this duty of loyalty by a real estate broker is a broker who purchases property listed with his firm and then immediately resells it at a profit. Such conduct ordinarily is perfectly appropriate and lawful by persons acting “at arm’s length.” But a fiduciary will be deemed to have “stolen” a profit opportunity rightfully belonging to his principal and thus to have breached his duty of loyalty. Confidentiality An agent is obligated to safeguard his principal’s confidence and secrets. A real estate broker, therefore, must keep confidential any information that might weaken his principal’s bargaining position if it were revealed. This duty of confidentiality precludes a broker representing a seller from disclosing to a buyer that the seller can, or must, sell his property below the listed price. Conversely, a broker representing a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more for a property than has been offered. CAVEAT: This duty of confidentiality plainly does not include any obligation on a broker representing a seller to withhold from a buyer known material facts concerning the condition of the seller’s property or to misrepresent the condition of the property. To do so would constitute misrepresentation and would impose liability on both the broker and the seller. Disclosure An agent is obligated to disclose to his principal all relevant and material information that the agent knows and that pertains to the scope of the agency. The duty of disclosure obligates a real estate broker representing a seller to reveal to the seller:  All offers to purchase the seller’s property.  The identity of all potential purchasers.  Any facts affecting the value of the property.  Information concerning the ability or willingness of the buyer to complete the sale or to offer a higher price.  The broker’s relationship to, or interest in, a prospective buyer.  A buyer’s intention to subdivide or resell the property for a profit.  Any other information that might affect the seller’s ability to obtain the highest price and best terms in the sale of his property. A real estate broker representing a buyer is obligated to reveal to the buyer:  The willingness of the seller to accept a lower price.  Any facts relating to the urgency of the seller’s need to dispose of the property.  The broker’s relationship to, or interest in, the seller of the property for sale.  Any facts affecting the value of the property.  The length of time the property has been on the market and any other offers or counteroffers that have been made relating to the property.  Any other information that would affect the buyer’s ability to obtain the property at the lowest price and on the most favorable terms. CAVEAT: An agent’s duty of disclosure to his principal must not be confused with a real estate broker’s duty to disclose to non-principals any known material facts concerning the value of the property. This duty to disclose known material facts is based upon a real estate broker’s duty to treat all persons honestly and fairly. This duty of honesty and fairness does not depend on the existence of an agency relationship. Obedience An agent is obligated to obey promptly and efficiently all lawful instructions of his principal. However, this duty plainly does not include an obligation to obey any unlawful instructions; for example, an instruction not to market the property to minorities or to misrepresent the condition of the property. Compliance with instructions the agent knows to be unlawful could constitute a breach of an agent’s duty of loyalty. Reasonable care and diligence An agent is obligated to use reasonable care and diligence in pursuing the principal’s affairs. The standard of care expected of a real estate broker representing a seller or buyer is that of a competent real estate professional. By reason of his license, a real estate broker is deemed to have skill and expertise in real estate matters superior to that of the average person. As an agent representing others in their real estate dealings, a broker or salesperson is under a duty to use his superior skill and knowledge while pursuing his principal’s affairs. This duty includes an obligation to affirmatively discover facts relating to his principal’s affairs that a reasonable and prudent real estate broker would be expected to investigate. Simply put, this is the same duty any professional, such as a doctor or lawyer, owes to his patient or client. Accounting An agent is obligated to account for all money or property belonging to his principal that is entrusted to him. This duty compels a real estate broker to safeguard any money, deeds, or other documents entrusted to him that relate to his client’s transactions or

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TRANSFER ON DEATH DEED

TRANSFER ON DEATH DEED (TODD) Planning for what happens to your home after your death can be difficult. Transfer on death deeds provide a simple, cheap way to make sure your home is passed on as you wish. How It Works A transfer on death deed names the person or people who will get your home after your death. During your lifetime, you keep ownership of your home and you may revoke the transfer on death deed. Upon your death, your home goes to any surviving person named in the transfer on death deed. Benefits of a Transfer on Death Deed • Allows you to plan for what happens to your house during your lifetime. • May be canceled at any time if you want to change what happens to your home. • Your heirs may avoid probate. • You keep ownership of your home, so you may still sell, mortgage, or transfer the home. • You may also keep any tax benefits for senior homeowners. • Unlike wills, there is no risk the deed is lost or destroyed Disadvantages of a Transfer on Death Deed (TODD) & Special Considerations To be eligible for a TODD, your real property deed must show that you have an ownership interest in your home. There are special considerations to take into account if you own the property as a joint tenant, as opposed to a tenant in common, with another individual. As a joint tenant, if you predecease your co-owner, the TODD will not have any effect because the property automatically would transfer upon your death to the surviving joint tenant. If you name two people as the primary beneficiaries and one predeceases you, the survivor will receive the entire property (unless you revoke the TODD). For example, if two daughters are beneficiaries, and one daughter passes away before you, her interest will not pass on to your deceased daughter’s children. Your surviving daughter will own the whole house. If you are married, but your spouse is not on the deed, and you give your home to someone other than your spouse in a TODD, then your spouse may not have a legal claim to a spousal share of the home because a TODD is not part of your Last Will & Testament. If you become incompetent, you cannot revoke a TODD, but your power of attorney with authority over real property can sell or transfer your home for your benefit in your lifetime. Creating a Transfer on Death Deed A transfer on death deed requires the following information be filed with the Office of Recorder of Deeds in a notarized form: • The names and addresses of all owners of the property. • The legal description of the property to be transferred. • The people receiving the property. You may name as many people as you wish. • A statement that the property will transfer at the owner’s death. • The signature of the owner making the transfer and the date.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

‘DEPRECIATION RECAPTURE’ AND SELLING REAL ESTATE

While the tax consequences of the sale of real estate should not drive the decision to sell or hold a property, there are important issues to consider in order to make informed decisions. One aspect relates to the applicable tax rates of a long-term capital gain resulting from the sale of real property. To recap the basics, upon the acquisition of a property the cost of the building and land are capitalized. If the building is a rental property or used in a trade or business, the cost attributable to the building is depreciated over 27.5 years (residential) or 39 years (non-residential) using the straight-line method for tax purposes. Land is non-depreciable therefore, no depreciation is permitted. In summary, the cost of the building is written off ratably over the life of the asset via annual depreciation deductions. Depreciation deductions offer the property owner the tax benefit of a deduction at their personal ordinary income tax rates. Additionally, depreciation deductions reduce the cost basis of the property which ultimately determines the gain or loss upon the sale or disposition of the property. If sold as a long-term gain, under current tax laws, long-term capital gains tax rates range between 0% – 20% depending on the taxpayer’s level of income. However, not all gains benefit from the long-term capital gain tax rates. Depreciation recapture is the portion of the gain attributable to the depreciation deductions previously allowed during the period the taxpayer owned the property. The depreciation recapture rate on this portion of the gain is 25%. The reasoning behind the depreciation recapture rules is since the taxpayer received the benefit of a depreciation deduction that offset ordinary income tax rates (a potential Federal tax savings of up to 39.6%), the government is not going to grant the most favorable capital gains rates on the portion of the gain relating to these prior depreciation deductions. The following examples illustrate the concept of depreciation recapture. Assume a property owner acquired a building for $2 million (excluding land). Assume after 10 years the owner has taken $500,000 of depreciation deductions. The owner’s basis in the building is now $1.5 million. If the owner sells the building for $5 million, they will recognize a gain of $3.5 million ($5 million less $1.5 million). It is often presumed the $3.5 million would be taxed at a capital gain rate of 20%. However, in this example, $500,000 of the gain would be taxed at the recapture rate of 25%. The remaining $3 million gain would be taxed at the 20% capital gain rate. The outcome in this example is an additional $25,000 tax cost (5% on $500,000). Larger transactions would obviously have larger implications. Depreciation recapture is limited to the lesser of the gain or, the depreciation previously taken. Using the example above, assume the owner sells the building for $1.6 million resulting in a gain of only $100,000. Since the $100,000 gain is less than the $500,000 of depreciation deductions the recapture rate of 25% would apply to the entire $100,000 gain. In the event a property is sold at a loss the depreciation recapture rules do not apply. Assume in the above example the property was sold for $1.1 million. The property owner would simply report a loss of $400,000. No depreciation recapture calculations would be required. The 25% depreciation recapture tax rate only applies to the portion of the gain attributable to real property. If a sales contract includes the sale of other assets, such as furniture and equipment, the gain relating to depreciation recapture on those assets would be taxed at the property owner’s ordinary income tax rates. As with any transaction or tax planning, it’s important to consult with your tax adviser to obtain an understanding of tax implications in order to make proper and informed

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

23 REASONS WHY IT IS BETTER TO RENT THAN TO BUY

Homeownership has long been considered the culmination of a person's adult life, a moment when they've finally achieved the American Dream. However, more and more Americans are foregoing the 30-year mortgage and opting to rent instead. Homeownership isn't for everyone, and people who want the flexibility, financial freedom, and perks that renting provides are opting out of the homeownership myth and forging their own path. After looking at the numbers, you might realize that they have the right idea. If you're sitting on the fence about whether you should rent or buy, read our list of the 23 reasons why renting is better than owning. 1. YOU CAN HAVE A BIGGER NET WORTH THAN HOMEOWNERS. Everybody knows that buying a home is an effective way to build one's net worth, but it's definitely not the only way. Some homeowners can even lose money, like in the case of the millions of homeowners who lost their homes in 2008. Some experts argue that although many homes appreciate in value over time, so do other assets like investments in the stock market or a small business. Other experts believe that investments in the stock market can increase one's net worth even more than home equity. An article in the Wall Street Journal points out that over a 30-year period, the value of an average, single-family home grew 3.6% annually, but the compound annual return on the S&P 500 for the same time period was 11.1%. In a survey from the Macarthur Foundation, 61% of respondents believe that renters can be just as successful as homeowners in achieving the American Dream, with or without their own home. Homeownership isn't the only road to wealth, but renters need to be consistent in investing money where it can grow and contribute to their net worth. 2. NO HOMEOWNERS INSURANCE OR PROPERTY TAXES. Homeownership comes with a lot of extra expenses that can catch new homeowners by surprise. Homeowner's insurance protects property from damage that's caused by fire or vandalism, for example, and the annual fee can cost anywhere from $538 (the average cost in Idaho) to $2,084 (the average cost in Florida). The Insurance Information Institute estimates that nationwide, the average homeowner's insurance premium cost around $1,034 in 2012. Homeowners also have to pay property taxes every year, and data from the Tax Foundation shows that the median cost of property taxes nationwide was $2,043 in 2010. Homeowners may have a house to their name, but they also deal with costs that renters don't have to worry about. 3. IN SOME METROPOLITAN AREAS, RENTING IS CHEAPER. An October 2014 study by real estate website Trulia showed that homeownership is cheaper in the long-term than renting in many U.S. cities. The calculations were based on a traditional 20% down payment and the assumption that the homeowner would stay at least 7 years and itemize deductions on their taxes. However, they were quick to note that for young people who don't have savings, rely on a Federal Housing Administration insured loan, don't itemize their tax deductions, and only stay in their home for 5 years, renting is cheaper than buying in 27 of the 100 largest metropolitan cities. A separate study by Deutsche Bank for the Wall Street Journal in May 2014 shows differing numbers. Cities like Sacramento, Phoenix, San Bernardino, Riverside, and Austin were among the cities where it was cheaper to buy according to the Trulia study, but they were found to be cheaper to rent just a few months earlier in the Wall Street Journal study. In short, prices can fluctuate in a matter of months. The takeaway message from both studies is that although homeownership can be beneficial for some, young renters who are short on cash and plan to move in the near future may find renting to be a cheaper option. 4. YOU DON'T LOSE MONEY IF YOUR HOME DEPRECIATES IN VALUE. A home is an investment, and like most investors, homeowners hope their investment will appreciate in value over time. Every homeowner expects that they'll be able to sell their home for more than they bought it for, but homeownership doesn't always have a happy ending. Factors like crime, traffic, unemployment, or a surplus in homes can cause a home to depreciate in value. According to Kiplinger, a business and personal finance magazine, one of the worst cities for home appreciation is Fayetteville, North Carolina, where home prices dropped 4% in the last year. They cite a surplus of new homes that were built for military families as the reason for the dramatic drop in home prices. Although renters may have their own share of problems, a depreciating investment is not something they have to worry about. 5. YOU DON'T HAVE TO SAVE FOR A 20% DOWN PAYMENT. Buying your own home isn't cheap, and even if you qualify for a loan, you'll still need to come up with the down payment on your own. A traditional down payment is 20% of the property's purchase price, so on a house that costs $275,000, your down payment would be $55,000. That's basically the cost of tuition for one year at a private university, a luxury car, or a crocodile skin Louis Vuitton handbag! In contrast, a landlord might charge you the first month's rent, the last month's rent, and a security deposit, which varies from state to state, but is typically around 1 to 2 month's rent. In a Fannie Mae survey, around half of young renters stated that the biggest obstacle to buying a home is being able to afford the down payment and closing costs. If you're a renter and can't save $1 to save your life, don't stress - you won't need to save up for a down payment if you continue to rent. And if you're a renter with money sitting in the bank but no plans to buy a home, you can spend that hard-earned cash elsewhere. 6. YOU CAN LIVE WITHIN YOUR BUDGET (EVEN IF IT CHANGES). So you don't make six figures and don't think you'll get a 150% raise anytime soon. At least if you're a renter, you don't have to save for a down payment and can adjust your living standards to what you can afford. When homeowners close on their new homes, they usually agree on a monthly mortgage payment with the assumption that their financial circumstances won't change. Unfortunately, job losses, major illnesses, and other unexpected life events can happen to anyone, and homeowners don't always have the flexibility to change their living arrangements quickly. A Trulia study shows that renters are more likely to adjust to financial hardships by moving to a smaller home, finding a roommate, or even living out of their car! A report published by the Joint Center for Housing Studies reveals that 54% of renters prefer to rent because they can stick to their budget. Nobody should have to live in their car, but at least renters are able to find creative ways to live within their budget. 7. YOU WON'T HAVE MORTGAGE DEBT. There's good debt and bad debt, and some argue that mortgage debt is the good kind. However, if you're the type of person whose blood pressure rises at the thought of taking on more than $100 in debt, then homeownership probably isn't for you. According to the Federal Reserve, the amount of outstanding mortgage debt in the U.S. is around $13.4 billion. Given that most homeowners opt for a traditional 30-year mortgage, it's no wonder that so many Americans haven't paid off their mortgage quite yet. If you buy a home at age 35 and stay there without taking out a second mortgage, for example, you can expect to be mortgage-free by the time you hit 65. The 2013 American Community Survey reveals that only 32% of owner-occupied housing units have paid off their mortgage. If you're a renter without student debt or credit card debt, then you have the privilege of living debt-free. 8. YOUR MONEY ISN'T TIED UP IN A HOUSE. Some homeowners view their house as an emergency fund, and while it's true that they can use their home equity when an emergency strikes, a house isn't a liquid asset. Between the time it takes to find a listing estate agent and stage your home for sale, it can be months until a homeowner can list their house on the market. Once it's listed, it takes the average homeowner between 26 to 34 days to sell their home, according to data compiled by the Redfin Research Center, but depending on the season or local housing market, it can sometimes take 6 months or more. Taking out a second mortgage on a home isn't an easy task either, and it comes with a lot of financial risk. Renters with money saved can use it at the drop of a hat, which is a luxury that many homeowners don't have. 9. YOU CAN BE FLEXIBLE ABOUT WHERE YOU LIVE Last year you wanted to live near the coast. This year you decided to live in the city. And next year, you might be in the mood to live closer to nature. As a renter, you can be flexible about where you live from year to year, or even month to month. With a short-term lease and no mortgage to pay, you can pick up and leave whenever the mood strikes you. In a survey conducted by mortgage loan company Freddie Mac, 68% of renters agree that renting gives them flexibility over where they can live. Another study published in the Joint Center for Housing Studies reported 41% of survey respondents believed that renting also gives them flexibility with respect to their future. Instead of their location determining their life decisions, renters can choose to move for work, love, or simply because they want to. 10. YOU CAN RELOCATE FOR YOUR DREAM JOB. Americans want the whole package — a beautiful home, a bustling social life, and a great job, but there's no use owning a home if you don't have a great job to help you pay for it. The beauty of renting is that you can easily move to the next city, the next state, or even across the country, for your dream job. Homeowners, on the other hand, are stuck where they are until they sell their home. Some experts believe that homeownership is actually a hindrance to the labor market because homeowners don't have the flexibility to move to pursue better economic opportunities. A study by economists David Blanchflower and Andrew Oswald shows that countries that experience an increase in homeownership usually see an increase in unemployment rates within 5 years, because homeowners can't relocate for work. The Pew Research Center, a nonpartisan research think tank, looked at U.S. Census data to determine moving trends in the U.S. They found that six in ten Americans have moved at least once in their life, with most citing economic opportunity as their reasons for moving. When the researchers broke down the data by income, they noted that the most affluent Americans are the more likely group to have moved at least once. In this case, renting may give people the flexibility to find bigger and better job opportunities, wherever they may be. 11. YOU CAN FOLLOW YOUR HEART. Have you ever given long distance love a try? According to statistics compiled by the Center for the Study of Long Distance Relationships, it is estimated that 14 million Americans are currently in a long distance relationship. The Internet has made long distance romances easier for couples to meet and keep in touch, but it's estimated that relationships begin to suffer after the 4.5 month mark. At some point, couples probably feel the need to bridge the physical distance in order for the relationship to last. If you're a homeowner in a long-distance relationship, selling your home and moving in the name of love might sound absurd. Renters, on the other hand, have the flexibility to move wherever their heart leads them. 12. MOST RENTALS ARE CLOSER TO METROPOLITAN AREAS. When you're young and looking for new experiences, the glamour of the big city always beckons, whether you're from the High Plains of Nebraska or the bayou of Louisiana. Bigger cities just have more to offer than the suburbs — an exciting nightlife, diverse neighborhoods, interesting people, and international cuisine. Unfortunately, big city amenities come with a price tag. When the average price of a condo in Manhattan is $1.68 million, it's easy to see why so many people choose to rent instead of own in New York City. A recent study from New York University's Furman Center found that renters make up the majority of residents in 9 of the 11 biggest cities in the U.S., which includes Miami, New York, Los Angeles, and Chicago. In a study from the Joint Center for Housing Studies, 41% of survey respondents said that they preferred renting because they could live in a convenient location. If you've ever wanted to live in the center of it all, renting is probably the most affordable option. 13. YOU CAN MEET NEW PEOPLE IF YOU HAVE A ROOMMATE. Owning a home may give you privacy, but renting can be a way for you to meet new people, gain new experiences, and maybe even make a life-long friend. Roommates are like built-in friends — you can rehash a bad date with them, share a meal, and split the cost of your cable bill. Renting with a roommate isn't just for college students either. A recent Wall Street Journal article reported that around 20% of New York City's roommate population is over 40. If you're worried about getting stuck with a nightmare roommate, apps like Zumper, Roomhunt, and Roommates help people search for roommates with similar lifestyles within their social network. 14. YOU DONT HAVE TO PAY FOR MAINTENANCE ON YOUR RENTAL. When your refrigerator stops working in your rental unit, what do you do? Call your landlord. When one of your kitchen cabinets comes off its hinges, what do you do? Call your landlord. When you discover termites under your floorboards, what do you do? Call your landlord. As a renter, you don't have to lift a finger or spend a dime to fix the maintenance problems that arise in your rental unit. If you encountered the above problems in your home as a homeowner, however, you would either be doing the repairs yourself or paying somebody else. On average, homeowners spend around 1-2% of their home's value on home maintenance each year, according to a study from the University of Illinois Extension. So for that $275,000 house, we'd have to pay at least $2,750 annually on upkeep. While most maintenance issues are relatively simple, some can be more than many homeowners bargain for. In a study conducted by real estate website Zillow, 38% of new homeowners were surprised by the costs of maintaining their new home. If you're a renter and are having maintenance issues with your rental unit, count your lucky stars that the maintenance costs are on someone else's dime, not yours. 15. YOU DON'T HAVE HOMEOWNER STRESS. With all this talk of property taxes, home depreciation, and costly maintenance, it's no wonder that many new homeowners report being stressed about their homes. The Holmes-Rahe Stress Scale is an inventory of stressful life events that psychiatrists Thomas Holmes and Richard Rahe found to contribute to physical illness. The 43 life events that make up the list include events associated with homeownership, like taking on a mortgage, major changes in living conditions, changes in residence, and taking on a loan. Around 52% of renters in the study from the Joint Center for Housing Studies believe that renting is better because they don't have to deal with the stress that comes with owning a home. 16. YOU CAN HAVE ACCESS TO EXTRA AMENITIES. Sure, homeownership might seem like a dream come true if you want privacy, but in some cases, renting can be a sweeter deal. Wouldn't it be great to have a pool? Or a gym in your basement? Or maybe a Jacuzzi to relax in after a long day at work? Or somebody to landscape your entire backyard? If you're a homeowner, you'd have to pay some serious cash to have all those things, but some rental units offer all that and more to their residents. A survey by the National Multifamily Housing Council shows that high-speed Internet, outdoor space, and a washer and dryer are the most popular amenities to renters. The website ForRent.com estimates that an in-suite washer and dryer can save renters money at the laundromat, not to mention the gas money it takes to get there. Fitness centers can also save residents money in the long run, especially if they don't use their gym membership regularly. Renting can sometimes give you access to amenities that you could never dream of having as a homeowner. 17. YOU HAVE MORE LEISURE TIME. Owning a home can sometimes take a lot of time and energy, which leaves little time for homeowners to enjoy the simple pleasures in life. Researcher Grace Wong Bucchianeri conducted a study about the effects of homeownership on women's happiness and personal life, and found that homeowners aren't any happier than renters and actually derive more pain from owning a home. They're found to be 12 pounds heavier than the average person, and spend 3% less time on leisure activities. They also report feeling less satisfaction from romantic relationships, time with friends, and social activities. The next time you feel envious of a homeowner's newly remodeled kitchen, just remember that when they're mowing their lawn on the weekends, you're reading a book or eating brunch with friends (and enjoying it!) instead. 18. YOU WON'T SUFFER FROM BUYER'S REMORSE If you think house hunting as a renter is brutal, you should try house hunting as a potential homeowner. After searching high and low for the perfect house (or at least one that's good enough), many homeowners' judgment can get clouded and cause them to jump at the first opportunity that comes their way. A survey conducted by HSH Associates, a mortgage and consumer loan website, found that 80% of new homeowners have at least one regret when it comes to their new home. Their regrets run the gamut from the size of the house to the high maintenance costs. While most can overlook the deficiencies of their new home, 37% report that they think about their regret frequently, and 22% think about it every day! Renters may sometimes find themselves wishing they had put more time into their housing search, but at least their feelings of discontent only last as long as their lease. 19. YOU CAN KEEP LOOKING FOR YOUR DREAM HOME. Even if potential homeowners do their research before committing to buy, they never really know what their home is like until they move in. What may seem like a picture-perfect home from a Thomas Kinkade painting can turn out to be a disappointment when they realize that their dining set doesn't fit in the dining room or the master bedroom leaves something to be desired. In a Zillow.com survey, 62% of homeowners with regrets stated that they wished their home were bigger or had a different layout. Renters probably have the same experience - what may have seemed like a spacious studio can end up feeling cramped after a few months. Luckily, renters have the luxury of moving until they find a place that suits them best. Homeowners have to either cough up more money for a remodel or learn to love their home the way it is. 20. YOU'RE NOT STUCK WITH BAD NEIGHBORS. Your new home may be the house of your dreams, but the surrounding neighborhood and people can make your life a breeze or a nightmare. Imagine hoping to catch some shut-eye early on a Monday night, but waking up to the booming sounds of techno from your college-student neighbors. Or maybe you hope to throw a mellow housewarming party, but your plans are thwarted by a noise complaint from another neighbor. Both the HSH survey and Zillow survey found that 25% of homeowners with regrets are displeased with their neighborhood and wish that they had researched more about their community and future neighbors. When you're renting, the solution to bad neighbors is simple - just move. Unfortunately, homeowners are in it for the long run, and it's in their best interest to keep the peace. 21. YOU CAN LIVE A MINIMALIST LIFESTYLE. Ever seen the show Hoarders? Sometimes long-time homeowners can find themselves in similar situations when they fill their living space with unnecessary things for a long period of time. A 2012 UCLA study reveals that many middle-class homeowners deal with clutter on a daily basis, and only 25% of homeowners have a functional garage because they use it for storage space. A hidden perk of renting is that moving helps you identify the possessions you really need and minimize clutter. Around 24.5% of people living in rental units in 2014 lived elsewhere in 2013, according to Geographical Mobility data from the U.S. Census, and those who moved got to do a thorough inventory of what they need and don't need. If minimalism is your thing, renting is the way to go. Even a minimalist apartment doesn't have to look boring. These tips from The Urban Realist will help you keep your space looking bright and engaging without having to spend on pricey decor. 22. YOU CAN ADJUST MORE EASILY TO FAMILY CHANGES. You didn't count on your sister losing her job and moving in with you until she gets back on her feet. You also didn't anticipate your father's illness, which meant that you had to move closer to your hometown to take care of him. And you never thought your son would decide to go to college halfway across the country instead of staying local. Family circumstances are unpredictable, and sometimes the house that seemed to fit you and your family just right can become too small (or even too big). Data about changes in homeowners' and renters' family life is limited, but a report published by the U.S. Census indicates that 12.4 million children underwent a change in their family structure in 2013, which could be anything from divorce to a new addition to the family. If you're a renter, it's easier to downgrade or upgrade to another residence to adjust to life changes. If you're a homeowner, moving to another residence may be out of the question, which means most homeowners have to find a compromise. In a study conducted by the Macarthur Foundation, 45% of current homeowners admit that they would consider renting again in the future when their home becomes too much work for them in their old age. In cases of major changes in one's family structure, renting offers more flexibility. 23. YOU CAN TRAVEL FREELY. Buying a home is a huge financial obligation, which is why many millennials are putting it off until they're absolutely ready to stay in one place. They know that once they close on a new home, they probably won't have the time, money, or flexibility to jet set to the Edinburgh Music Festival at a moment's notice or backpack through Southeast Asia for 3 months. Furthermore, some millennials are redefining what the American Dream really is, and homeownership isn't necessarily a part of it. A poll from MassMutual, the mutual life insurance company, shows that 38% of millennials consider travel a part of the American Dream. In a survey from the travel marketing firm MMGY Global, 60% of millennials state that they would rather spend their money on experiences rather than on things. If a beach in Curacao appeals to you more than a mortgage, save your money for a plane ticket rather than a down

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE FRAUD

Guide to Fighting Real Estate Deed Fraud I. The Problem As real estate owners and industry professionals, we understand the importance of regular maintenance, property insurance, and other routine tasks designed to preserve the value of what is, for many of us, our most significant asset -- our real estate. One thing that often escapes our attention, though, is a routine examination of the public records. Recent stories in Texas, Illinois, Pennsylvania, Ohio, and Florida tell us about people from every walk of life who were shocked to discover that they no longer owned real estate they thought was theirs. Whether it is a family home, a business, a vacation property, or anything else, we expect our land to stay in our control until we decide to transfer it. On the surface, it is counter-intuitive to think that a person can simply record a deed and steal our property, but similar scams are occurring with increasing regularity across the country. How can this kind of theft happen? Purchases of real estate involve dealing with numerous regulations and signing forms that require proof of identity. This process is intended to ensure valid transfers and to preserve clear chains of title. For honest purchasers, the requirements may feel like unnecessary hoops to jump through; for criminals, they provide an opportunity to cheat unwary property owners. II. Deed Basics Minimum requirements for all real estate deeds: Before examining this complex issue, let's discuss some fundamental details. All fifty states and the District of Columbia demand written documents (primarily deeds) to transfer ownership of real property. A brief statutory review shows that these documents must contain, at minimum, the following information in order to effectively convey an interest in property: A title clearly stating the nature of the document (warranty deed, grant deed, quitclaim deed, and so on) The name of the property's owner of record (the grantor) A granting clause that states the grantor's intent to convey the property to the grantee The purchaser's name (the grantee) A detailed, formal description of the property The signature and printed name of the grantor or an authorized representative An acknowledgement by a notarial officer Valid conveyances require that the executed deed be delivered to and accepted by the grantee. Because actual (hand-to-hand) delivery is not always possible, most states also allow constructive delivery, wherein an acknowledged and recorded deed presumes prima facie evidence of due delivery. The delivery requirement exists to ensure that the grantee knows about the transfer of ownership as well as the associated responsibilities such as taxes and maintenance. Recording the deed, while not expressly required by law in every state, is an important factor in securing interests in real estate. Entering ownership changes into the public record serves as constructive notice to future buyers, who should research the chain of title prior to purchasing property. III. Forgery Black's Law Dictionary defines forgery as the "act of fraudulently making a false document or altering a real one to be used as if genuine." It is a criminal offense in the US, designated as either a felony or a high-degree misdemeanor. In some states, the charges depend on the details of the crime, including the dollar amount and/or the nature of the document; forging real estate deeds generally leads to a higher-level offense. Many fraudulent deeds contain one or more forged details. The grantor or an authorized representative must sign all real property deeds, so a "false document" may be a new transfer with a non-authentic signature. A signer may pose as the property owner and sign the deed in front of a notary. Others may use a completely made-up name or identify themselves as the owner's personal representative. Seemingly legitimate deeds become another kind of false document if the forger first executes and files a deed wherein he/she signs as the actual property owner or personal representative and conveys the title to him/herself. Once the records are changed, the fraudulent grantor sells the property to an innocent third party. These transactions often involve quitclaim deeds, which offer no warranties of title. Altering an original, valid document is another kind of forgery. A criminal might gain access to a property owner's actual deed, often by intimidation, misinformation, or outright theft. Depending on the individual state's rules on correcting recorded documents, it might be possible to change some non-material details on the original deed and re-record it with the updated (but fraudulent) information. IV. Public Records Forgery brings other issues, too. When deeds containing forged or otherwise fraudulent information enter the public record, they perpetuate this junk data. This causes additional problems because numerous people and businesses access this information every day for real estate purchases, mortgages, title research, credit checks, and so forth. The role of public real estate records Among other things, public land records verify real estate holdings. They confirm the existence of ownership claims by identifying boundaries, locations, and the chain of title. They also provide evidence of liens, easements, or other claims associated with the property. The amount and type of data contained within these records has changed over the years, largely in response to concerns about identity theft. To comply with requirements designed to protect personally identifiable information such as social security numbers and dates of birth, those details can often be redacted from previously recorded documents and not included on new forms submitted for recording. Recording offices across the country face the challenge of preserving sensitive details while still allowing open access to essential data. Before the advent of modern storage techniques, deed searches required an in-person visit to the agency responsible for maintaining them; this is still a viable option. This method was automatically more secure because there was no other way to view the information. Browsing through transactions also presented a challenge -- effective searches required prior knowledge of indexing details contained within a recorded The introduction of electronic documents and e-recording, as well as digital preservation and storage, are further attempts to strike a balance between privacy and availability. Online access to recorded documents and their images varies widely. Some jurisdictions require registration or subscriptions for any remote viewing. Others only provide names and property addresses for each transaction, and some recorders choose to make the full repository searchable. Even with protections in place, public records are often the first place criminals look when they prepare falsified documents. Plus, the basic information used in deed forgery is likely to remain available: the parties' names and the property address, and often, the tax parcel ID and legal description. Accessible public records are a necessary part of our legal landscape; we depend on their security and accuracy. Because deeds and other instruments relating to transfer of real property require notarization prior to recording, it makes sense to view notaries and recorders as gatekeepers -- notaries can refuse to acknowledge a document if they believe its signature is forged or otherwise inauthentic, and recorders can refuse to accept documents without proper acknowledgement. These rejections should prevent at least some criminal acts, protect legitimate property rights, and help to maintain the overall integrity of the records. V. Risk Factors Anyone can fall victim to crimes associated with deed forgery -- even financial professionals like a Chicago city treasurer. We are all at risk, but specific factors make some kinds of property and/or groups of people more attractive to criminals. Unoccupied, abandoned, or distressed homes, lots, or businesses are easy targets for fraudsters. If you have multiple real estate holdings, make a habit of visiting each one regularly, at unpredictable times. Keep all properties in the best possible condition. Pay attention to homes owned by deceased friends or relatives. Criminals watch the death notices and can act quickly to steal the property by forging the name of the decedent on a deed, then recording the document in an attempt to secure title. Senior citizens, immigrants, and those facing foreclosure or other financial difficulties are also at risk. These groups are often perceived as vulnerable by scammers who try to bully or confuse them into signing away their rights. In particular, criminals found guilty of defrauding seniors of their homes are also frequently convicted of elder abuse, which adds additional penalties. Understand who and what faces the highest degree of risk for deed-related crimes. Reduce obvious signs of neglect and take the time to check on those who might be more likely to fall prey to scams. This increased awareness can put members of targeted groups on notice, and encourage more aggressive preventative actions. VI. Victims Advice for victims If you become a victim of deed forgery or its associated crimes, all is not lost. Take control of the situation by knowing your rights, pressing charges, and actively following up on any resulting investigation. Report the theft to local law enforcement IMMEDIATELY. Depending on the location, police might be unwilling to investigate the crime, so be prepared to call county or state officials, too. If the property is situated in a different municipality than your primary residence or place of business, contact your area's authorities as well. Remember, forgery is a criminal offense in the US, so if nothing else works, contact the FBI. Gather all relevant documents (deeds, mortgages, insurance policies, etc.) to provide a starting point. In fact, why wait for an emergency? Organize this information today and store it in one accessible location. This way, if the police need additional documentation for your case, you will be able to provide it quickly. Alert the recorder for the county where the property is located. There might be procedures in place to help you. Some counties have established real estate fraud units to focus on this problem. A Chicago-area woman's quick response saved her property when she caught the thief in the midst of changing the locks on her front door! She contacted the recorder's fraud unit, who reviewed the property's chain of title, saw the potential crime, and brought in the police. Even if the recorder's office is unable to help you directly, bringing the crime to their attention might stop the scammer from victimizing others. Contact an attorney who specializes in real estate law. If you cannot afford legal counsel, call the state or local bar association for the names of attorneys who might help you at a reduced fee. The lawyer should be able to help identify the nature of the fraud (void or voidable) and to initiate actions to protect or regain your interest in the property. VII. Scams and Secondary Victims Scams and their larger impact Deed forgery is one of many real estate scams with the potential to harm multiple victims. When defending against any of them, a quick response is the most important thing. The original owner's chance of successfully restoring title also depends on the type of criminal act and the recording statute in place for the jurisdiction. Here are some of the more common tricks involving forged deeds: House flipping is a legitimate investment plan in which distressed properties are purchased for a low price, quickly repaired, and resold. Plenty of these transactions are legal, but they make use of quick turnovers, which do not leave much time for title searches. As such, it is an attractive scheme for fraudsters. Properties used in house flipping scams may be sold at prices that are either unusually high or unusually low for the local market; criminal involvement in house flipping tends to involve fraudulent appraisals and target unused or abandoned houses. The deeds may also contain forged signatures in order to sell the property to a third party. House stealing involves many of the same characteristics of house flipping. The FBI discusses several scenarios for house stealing, all of which include deed forgery and identity theft. After identifying a likely property, (most often abandoned or unoccupied, but sometimes with residents still living inside!) the scammers, posing as the owners, sign deeds transferring ownership into their names (or their fake names). Or, the criminals may claim to be personal representatives of the estate of a deceased owner, or refer to non-existent powers of attorney. Then, at least on paper, they have rights to the property and can sell, rent, or otherwise abuse it at will. These transactions often use quitclaim deeds and may not require a mortgage, so they are unlikely to involve title insurance. In addition to deed forgery and identity theft, house flipping and house stealing can also include other crimes, including elder abuse, property theft, tax fraud, and mortgage fraud. Forged deeds can also be a component of a mortgage fraud. As with house stealing, the FBI is actively working to educate vulnerable homeowners about this type of real estate crime. They define mortgage fraud as "a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan. There are two types of Mortgage Fraud: fraud for property and fraud for profit. Fraud for Property, also known as Fraud for Housing, usually involves the borrower as the perpetrator on a single loan... Fraud for Profit involves industry professionals. There are generally multiple loan transactions with several financial institutions involved." If there is still an outstanding mortgage on the real estate, recording a transfer might trigger a "due on sale" clause if/when the lender receives notice. Alternately, the fraudulent owners could apply for a new first or second mortgage on the property, take the money, and never make a payment. In addition to forgery, mortgage fraud might include other criminal acts, such as identity theft, property theft, tax fraud, mail fraud, wire fraud, and elder abuse. In addition to the crimes perpetrated against the primary homeowners, others suffer losses from deed fraud, too. What happens to bona fide purchasers of real property that turns out to be stolen? Depending on the type of deed and the nature of the fraud, they might end up with nothing but an expensive lesson. VIII. Conclusion Deed forgery is an increasingly common problem. The methods may vary, but the net outcome is the same: loss of property. We have three primary lines of defense against it: notaries, recorders, and owners. Each of these groups plays a role in protecting our property rights, but the most important tools for everyone are diligence and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MISSOURI CERTIFICATION OF TRUST

Certification of trust. 456.10-1013. 1. Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information: (1) that the trust exists and the date the trust instrument was executed; (2) the identity of the settlor; (3) the identity and address of the currently acting trustee; (4) the powers of the trustee; (5) the revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust; (6) the authority of cotrustees to sign or otherwise authenticate and whether all or less than all are required in order to exercise powers of the trustee; (7) the trust's taxpayer identification number; and (8) the manner of taking title to trust property. 2. A certification of trust must be signed by all the trustees. A third party may require that the certification of trust be acknowledged or guaranteed. 3. A certification of trust must state that the trust has not been revoked, modified, or amended in any manner that would cause the representations contained in the certification of trust to be incorrect. 4. A certification of trust need not contain the dispositive terms of a trust. 5. A recipient of a certification of trust may require the trustee to furnish copies of those excerpts from the original trust instrument and later amendments which designate the trustee and confer upon the trustee the power to act in the pending transaction. 6. A person who acts in reliance upon a certification of trust without knowledge that the representations contained therein are incorrect is not liable to any person for so acting and may assume without inquiry the existence of the facts contained in the certification. Knowledge of the terms of the trust may not be inferred solely from the fact that a copy of all or part of the trust instrument is held by the person relying upon the certification. 7. A person who in good faith enters into a transaction in reliance upon a certification of trust may enforce the transaction against the trust property as if the representations contained in the certification were correct. 8. A person making a demand for the trust instrument in addition to a certification of trust or excerpts is liable for damages if the court determines that the person did not act in good faith in demanding the trust instrument. 9. This section does not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MISSOURI SMALL ESTATE AFFIDAVIT

How to Handle a Small Estate in Missouri If you're wrapping up the estate of a Missouri resident who died with an estate that's worth less than a certain dollar amount, you won't have to go through a formal probate court proceeding. It doesn't matter whether or not the deceased person left a will; what matters is the value of the assets left behind. If the estate's value is under the "small estates" limit in Missouri, you can take advantage of a simplified probate procedure, often called a "summary probate." Instead of having a court hearing in front of a judge, you may need only to file a simple form or two and wait for a certain amount of time before distributing the assets. In some states, it can be even easier: Inheritors can use a simple affidavit to claim assets. (An affidavit is a statement you sign in front of a notary, swearing something is true.) If you live in one of those states, you just have to wait a required period of time, then sign a simple, sworn statement that no probate proceeding is happening in your state and that you are the person entitled to inherit a particular asset--a bank account, for example. When you are trying to determine whether or not an estate's value is below the Missouri small estates limit, the first thing to do is make a list of the assets. A simple spreadsheet or list will do. Not everything a person owns counts, though. For this list, include only the things that pass to heirs and beneficiaries by will or, if there's no will, by Missouri intestacy laws, which determine who inherits if there is no will. Don't count assets that are held in joint tenancy, retirement plans, payable-on-death (POD) bank accounts, real estate transferred by a transfer-on-death deed, or transfer-on-death brokerage accounts. These assets don't count towards the small estate limit because they pass to the named beneficiaries regardless of what a will (or state intestacy law) says. If a person had a life insurance policy with a named beneficiary, the insurance proceeds won't count either. Some states also don't count the amount of money owed on a car, or a house, while others count the fair market value of an asset, even it is subject to a loan or a mortgage. For example, say Donald died in Missouri and owned the following assets: A checking account with $2,345 A savings account with $2,567 A car with a blue book value of $6,500 (and no loan) An IRA with $32,000, naming his son and daughter as beneficiaries A life insurance policy worth $15,000, naming his son and daughter as beneficiaries To figure out whether Donald is above or below Missouri's small estate limit, only the bank accounts and car would be counted, for a total of $11,412. His IRA and the life insurance proceeds aren't counted towards the limit because they will go to his beneficiaries directly. The value of the car is included because he doesn't owe money on it. That means the value of Donald's estate is under the Missouri small estates limit. His son and daughter, who inherit his assets under Missouri's intestacy laws because Donald had no will, would follow this procedure: In Missouri, there's no Affidavit procedure available for small estates. There is a summary probate procedure available for estates that are less than $40,000, not counting liens or encumbrances (like a mortgage). Mo. Rev. Stat.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EVICTION VS. UNLAWFUL DETAINER

This article gives a short overview of evictions (unlawful detainers) from a landlord’s perspective. When you, the landlord, need to evict a tenant, you may not use self-help measures to remove the tenant. For example, you may not lock out the tenant, cut off utilities or place a baseball bat strategically upside the tenant’s head. Instead you bring an unlawful detainer lawsuit against the tenant. Unlawful Detainer Process. An unlawful detainer lawsuit moves fast. It begins when the landlord files a complaint. In most cases, the tenant has only 5 days to answer the complaint. Once the tenant files an answer (or fails to answer, in which case the landlord takes a default), the court can render judgment within 20 or so days. Compare this to most litigation which takes years to finish. If the tenant files an answer and defends the case, the court holds a hearing where the parties present their cases. If the tenant wins, it may stay in the premises and perhaps recover its attorney fees from the landlord. If the landlord wins, the court will issue a writ of possession. The writ of possession orders the sheriff to remove the tenant from the premises. The tenant has 5 days from the date that the writ is served to leave voluntarily. If the tenant does not leave by the end of the 5th day, the sheriff may lock the tenant out and seize the tenant’s property in the premises. Once the sheriff has removed the tenant, the landlord may reclaim the premises. The court also may award the landlord any unpaid rent, court costs, plus attorney’s fees if the lease has an attorney’s fee clause. Cost. A landlord’s minimum costs in an unlawful detainer action are around $1,500 in attorney’s fees plus around $800 in filing fees and service of process costs. The $1,500 applies if the tenant does not file an answer. If the tenant files an answer and defends the case, or files in bankruptcy, then attorney’s fees go up. Timing. The eviction process takes a minimum of 1 ½ months to finish, from pre-complaint notice to sheriff lockout of the tenant. The minimum time applies if the tenant does not answer the complaint and you take a simple default. If the tenant raises defenses or files in bankruptcy, however, the eviction will take many more months. Be Careful. It’s easy to foul up an unlawful detainer case, including the notice period, complaint, service of process plus a host of other requirements. For example, sometimes it’s hard to keep track of the various notice periods and response periods that apply. Pre-complaint notice periods range from 3 days to 30 to 60 to 90 to something else. After you file the complaint, tenants then have various deadlines for filing a response depending on how you made service. Also factor in the separately running response time for a Prejudgment Claim of Right to Possession. In unlawful detainer cases, courts will not cut you any slack. The court will make you start over at the beginning for each mistake and you’ll lose valuable months. You need to do the job right the first time. That’s it for my short overview of evictions. This is just an introduction designed to let you see the forest for the trees. To explore all details would require a multi-volume treatise. Evictions can be tricky and there’s a lot of law out there. If you do nothing else, get a lawyer to help you. Good

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

BENEFITS OF OWNING A HOME

Homeownership is a rite of passage many of us dream of. Owning a home means putting down roots and having a space that is truly yours. It’s a significant moment of your life when you finally own a home. But owning a home can be daunting because of the responsibilities and obligations that come with it, combined with the initial process it takes to get there. When done properly, though, buying and owning a home is a process that limits your financial risk, increases your investment power, and saves you tons of money over the long term—and it can even save you money immediately. Renting has little to no ROI. Renters don’t have to worry about maintaining a residence or paying the mortgage. But if you’ve been renting long term, chances are you’re already performing home maintenance on some level and you’re at your landlord’s mercy when it comes to major repairs. And when it comes to paying the mortgage, there are many advantages over rental payments, which don’t provide any return on investment beyond securing a place to live through the end of the month or lease. How much is rent actually costing you? Consider the amount one pays over a 10-year period. A $1000/month rental payment adds up quickly to a whopping $120,000 over 10 years, when the same amount of money could have gone toward reducing 1/3 of the debt on a 30-year home mortgage by essentially making the payments to yourself instead of a landlord. Wow! Here are 9 more benefits to owning your own home: 1. Homeownership is an investment. Unlike a car and many other purchases that decrease in value, a home is a purchase that appreciates over time. While each local market has its own unique factors, the national median home price goes up each year, even in times of recession. As you pay your mortgage each month, your debt amount goes down, while the value of your home continues to rise. This creates the buying and reinvestment power better known as equity. 2. Gain equity. When it comes to homeownership, investment and equity are directly related. As you make mortgage payments each month, part of the payment goes toward the interest, while the rest pays down the principal balance. Equity can be better defined as the part of the principal balance you’ve already paid, or the percentage of your home you already own. Paying the principal is like depositing money in the bank, because that money becomes available for reinvestment in the home itself or a new home. 3. Take advantage of tax benefits. The federal government encourages homeownership (which in turn encourages economic growth) by offering tax incentives for homeowners. The biggest one is the option to deduct interest from mortgage payments on your income tax return, especially at the start of a mortgage when most of the payment is applied to the interest. Payments on private mortgage insurance (PMI) and certain home-related purchases also qualify for tax benefits. 4. Stabilize your housing costs. A fixed-rate mortgage means you’ll have the same mortgage payment for the term of the loan (usually 30 years), while monthly rental payments will continue to climb. And even adjustable-rate mortgages (ARM) have a fixed cap on them. Homeownership also stabilizes other home-related expenses like utilities and gives you more control over your ability to make investments in your property that keep those expenses down. 5. Gain control over your living space. Renting doesn’t usually come with a lot of options for modifying your living space to better suit your needs. Renters with changing needs must also deal with changing residences. Homeownership means you can make improvements to your home, and home improvements usually lead to increased home value, both financially and in daily home life. The power of equity can give homeowners the extra financing they need to reinvest in their homes when cash funds aren’t an option. 6. Increase your own sustainability. Homeownership can help you create a sustainable future in many different ways. Long-term renters lack sustainability because a high percentage of their income usually goes toward housing expenses that are constantly increasing. Locking yourself into a mortgage payment helps level out living expenses, so when income goes up it can be budgeted elsewhere. Paying off a mortgage allows homeowners a long-term plan to significantly reduce their living expenses as they move toward a retirement budget. 7. Stop moving. Homeownership increases sustainability and stability. Moving from rental to rental is a major inconvenience and a financial and emotional burden. Renting can mean that you never really know where you’ll be living next or what your expenses will be. Staying in the same home allows a financial and emotional investment in both your living space and your community. 8. Social benefits. Staying put for longer periods of time also creates social benefits that range from friendships with neighbors to community involvement and consistent educational opportunities for children. 9. Use your investment to make another investment. The equity that comes from paying a mortgage is what allows many individuals and families to make future investments in the same home, a higher-valued home, or second home. A home equity line of credit helps homeowners use the part of their home that’s already paid off to obtain financing for investments apart from the home itself, such as purchasing a boat or RV. Homeownership comes with a bevy of benefits; these are only a handful. What other benefits have you experienced with homeownership? What makes you want to own your own

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TAX INCREMENT FINANCING

Tax Increment Financing (TIF) Tax increment financing, or TIF, subsidizes companies by refunding or diverting a portion of their taxes to help finance development in an area or (less frequently) on a project site. Usually, TIF helps to pay for infrastructure improvements (streets, sewers, parking lots) in the area near a new development. In some states, TIF can also be used for acquiring land (including eminent domain), paying for planning expenses (legal fees, studies, engineering, etc.), demolishing and rehabbing buildings, cleaning up contaminated areas (“brownfields”), or funding job training programs. Some states allow TIF to directly subsidize private development expenses. How TIF Works TIF is authorized at the state level and administered by local governments. The local government designates an area it wants to target for redevelopment as a “TIF district” (sometimes also called by other names such as tax increment district, or TID). State law defines the criteria for creating a TIF district. The area may have to meet criteria for blight such as property abandonment, building code violations, or aging housing stock. Many states have expanded their criteria to allow TIF to be used in “conservation areas” at risk of becoming blighted, or in “economic development areas” in which officials hope to encourage more development, create jobs, or increase the tax base. Most states also have a “but for” clause, requiring developers to certify that the project would not go forward “but for” the TIF. As businesses locate in a TIF district and the area redevelops, the property values rise. Rather than simply collecting the increased taxes from TIF district properties, the city splits the property tax revenues into two streams. The first stream is set at the original amount of the property value before redevelopment, known as the “base rate.” This stream continues to go where it did before, typically to the school district or the city's general fund that pays for local services such as police and fire departments. The second stream contains the additional tax money generated by the higher property value, or the “tax increment.” This stream does not go to the city or schools, but is kept separate and used to pay for the redevelopment. In some states and the District of Columbia, increases in sales tax revenues can be diverted as well. The money a city invests in TIF projects is often obtained through the sale of bonds, which are then repaid over time with the annual tax increment funds. If the incremental revenue is not sufficient to pay off the bonds, the city has to make up the difference. Some cities take a more conservative “pay as you go” approach, spending TIF money only as the tax increment comes in each year. The city may spend the money on improvements itself, or may use the money to repay the developer for improvements the developer already completed. Accountability and Outcomes Many proponents of TIF argue that improvements made under the program “pay for themselves.” That is, cities and towns assume that TIF will spur new development, increase property values, and create new tax revenue that would not have existed otherwise, which will be used to pay off the costs of the development. This is a risky wager since it assumes that “but for” the TIF, no development would have occurred in the TIF district and property values would have remained unchanged. In reality, it is impossible to know whether a project will successfully generate the anticipated tax increases. It is also difficult to determine whether property value increases that do occur in TIF districts were exclusively the result of the TIF. The “but for” provision in many TIF laws has already been weakened to allow TIF to be used on almost any project. In most states, TIF was originally intended for use only in areas deemed “blighted” or “distressed” where investment would not otherwise occur. Many states have since loosened their TIF criteria to allow TIF to be used to develop non-blighted and affluent neighborhoods (see Good Jobs First's report Straying from Good Intentions on the weakening of TIF and enterprise zone requirements). Today it is not uncommon for TIF to finance development in suburbs and even rural areas. TIF increasingly funds big-box retailers and shopping centers that contribute more to sprawl than to poverty reduction. Located far from the urban core, such projects are often inaccessible to inner city residents most in need of jobs. In the end, the “but for” provisions of state TIF laws often fall by the wayside, allowing TIF to finance development that would happen anyway. This results in a loss of revenue that could have gone to pay for schools and local services. Given that the diversion of taxes continues until the TIF district expires, which is typically 7 to 30 years, the long-term fiscal impact can be quite significant. TIF can be improved by restricting the program's use to truly blighted areas, and by requiring projects to meet community needs such as affordable housing, job training, and the creation of quality jobs that provide family-supporting wages and benefits to local residents. TIF developers should be required to file annual, publicly-available reports showing their compliance with these obligations. Every TIF agreement should also contain a clawback clause requiring developers to pay back all or part of the subsidy if they fail to meet their job, wage, and other responsibilities. Researching TIF subsidies Researching TIF laws and procedures requires looking for documents at several levels of government. Look at the state level to find out if your state authorizes TIF, and what the requirements of the program are. Research at the city and/or county level is required to find out whether local governments add further requirements to TIF programs. City and county development departments typically have information about TIF districts, including the life of the district, the improvements made, and details on how improvements were funded. Property tax records are public information, and can be obtained for particular companies within the district by contacting the city or county. Sales tax records are typically not public information. For research on TIF proposals, note that state TIF laws usually require cities and towns to hold public hearings before a TIF district or project is approved. If you are researching the subsidies a company has received, keep in mind that TIF can benefit developments both directly and indirectly. Sometimes TIF districts are set up to lure a particular large company to the area. In such cases, the development agreement with that company or developer often spells out the locality's commitment of the benefits TIF will provide. In other cases, TIF districts may finance improvements that benefit an area generally; in rare cases, states and cities allow TIF funds to be used for improvements that are not within the TIF district at all. The development agreement may also contain details about how TIF improvements were financed. In some cases in which improvements directly benefit a particular company, that company may put up the money for the improvements and then be repaid over time through rebates of the tax increment portion of their property and/or sales tax (so that the TIF basically functions as a tax

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE FAIR HOUSING ACT

  Everyone who applies for housing has the right to be treated the same. The Fair Housing Act was created with the goal of advising landlords, lenders, buyers, and renters of the housing practices that could be considered discriminatory. What Is the Fair Housing Act? The Fair Housing Act is a law that was created to put an end to discriminatory practices involving any activities related to housing. The Act was created with the belief that every person has the right to rent a home, purchase a home, or get a mortgage on a home without being afraid of discrimination due to their membership in a certain class of people. When Was the Fair Housing Law Created? Attempts at fair housing in America have been around since the mid-1800s, but it was not until the Civil Rights movement of the 1960s that any real change took place. The Rumford Fair Housing Act of 1963 and the Civil Rights Act of 1964 were two of the first attempts to address discrimination. The real groundbreaking legislation, however, was the Fair Housing Act of 1968 which was established one week after the assassination of Martin Luther King Jr. What Classes Are Protected Under the Fair Housing Act?    The seven classes protected under the Federal Fair Housing Act are: 1) Color 2) Disability 3) Familial Status (i.e., having children under 18 in a household, including pregnant women) 4) National Origin 5) Race 6) Religion 7) Sex What Is the Three-Part Goal of the Fair Housing Act?    The Fair Housing Act has a three-part goal: 1. Home Renting and Selling    To end discrimination against the protected classes in any of the             following ways: Refusing to rent housing, sell housing, or negotiate for housing Making housing unavailable or lying about the availability of housing Denying housing Establishing different terms or conditions in home selling or renting Providing different housing accommodations or amenities Blockbusting Denying participation in housing-related services such as a multiple listing service  2. Mortgage Lending    To end discrimination against the protected classes in any of the             following ways: Refusing to make or purchase a mortgage loan Setting different terms or conditions on the loan, such as interest rates or fees Setting different requirements for purchasing a loan Refusing to make information about the loan available Discriminatory practices in property appraising 3. Other Illegal Activities    To end discrimination against the protected classes in either of these     ways: Make discriminatory statements or advertise your property indicating a preference for a person with a certain background or excluding a protected class. This applies to those who are otherwise exempt from the Fair Housing Act, such as owner-occupied four-unit homes. Threaten or interfere with anyone’s fair housing rights. Does Everyone Have to Follow the Fair Housing Act?   In certain cases, the following groups may be exempt from following      the Act: Single-family homes that are rented or sold without using a broker; Owner-occupied homes with no more than four units; and Members-only private clubs or organizations. Who Enforces the Fair Housing Act?    The Department of Housing and Urban Development (HUD) is                 responsible for enforcing the Fair Housing Act. HUD enforces the Act in two ways: Fair Housing Testers: HUD hires people to pose as renters or home buyers to see if discriminatory practices are being used. As a landlord, you need to be careful what you say in person, on the phone and in rental ads. Investigate Discrimination Claims: Individuals who feel their fair housing rights have been violated under the Fair Housing Act can file a discrimination claim with HUD. HUD will investigate the claim, determine if there is any merit to it, and decide if further legal action is necessary. Tips for Avoiding Accusations of Discrimination    To ensure you remain compliant with the Fair Housing Act: Assume everyone works for HUD or is trying to accuse you of discrimination. Be extremely careful with what you say in person, on the phone, and in your rental ads. You must adhere to the terms of the Fair Housing Act, but you can rule out tenants based on other criteria. You can legally deny a tenant housing based on poor credit, inability to pay rent, or other information found when you run a credit check on them. Be consistent in screening tenants, and have the same qualifying standards for every tenant. Go through the exact same practices for each prospective tenant who applies to rent your property. Require the same information, documents, referrals, and fees. Treat everyone with respect and dignity. Many states have additional protected classes, such as sexual orientation, age, and student status. Check your local and state fair housing laws to make sure you are following them in addition to the federal

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

DIFFERENT FORMS OF PROPERTY CO-OWNERSHIP

When two or more individuals own property -- whether it's a condominium, a home, or a piece of land -- the relationship between the owners is very important. The form of ownership of the property affects how property is transferred to someone else. It is important to make sure you have the right form of ownership for your property. Tenancy in common allows an owner the greatest flexibility to transfer the property as he or she wants. Each co-tenant in a tenancy in common has an interest in the property and is free to transfer this interest during life or through a will. The co-tenants can have different ownership interests; for example, three owners could own 5 percent, 35 percent and 60 percent of the property, respectively, as tenants in common. Each tenant can sever their relationship with the other tenants by conveying their interest to another party. This third party then becomes a tenant in common with the other owners. Joint tenants, on the other hand, must have equal ownership interests in the property. So, three owners would each have a one-third interest in the property. If one of the joint tenants dies, his or her interest immediately ceases to exist and the remaining joint tenants own the entire property. The advantage to joint tenancy is that it avoids having an owner's interest probated upon his death. A disadvantage to both joint tenancy and tenancy in common, however, is that creditors can attach the tenant's property to satisfy a debt. So, for example, if a co-tenant defaults on debts, his creditors can sue in a "partition proceeding" to have the property interests divided and the property sold, even over the other owners' objections. A third form of tenancy that is allowed in several states (such as Missouri), tenancy by the entirety, avoids this problem, but it is available only to married or, where applicable, civilly united couples. Tenancy by the entirety is based on the societal value of protecting the family. One tenant cannot convey her interest on her own, unlike with the other tenancies. Upon the death of one spouse, his interest automatically passes to the other spouse, as with joint tenancy, and the creditors of one spouse cannot attach the property or force its sale to recover debts unless both spouses consent. Creditors may place a lien on property held in tenancy by the entirety, but they are out of luck if the debtor dies before the other spouse, who will take ownership of the property free and clear of the debt. This is why both husband and wife are required to sign the mortgage on their property for the mortgage to be valid. Unmarried couples who buy property and subsequently marry each other should re-title the deed as tenants by the entirety to avail themselves of the greater protections this form of tenancy offers. In most states, if the form of tenancy that the tenants intended is ambiguous, the tenancy will be assumed to be a tenancy in common. Contact your attorney to find out which form of ownership is the right one for your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REALTORS UNDER SCRUTINY FOR HIDDEN COMMISSIONS

  Another potential blow has been struck against the longstanding way in which real-estate agents get paid. In April, the Department of Justice wrote to CoreLogic, a real-estate software provider. Justice demanded that the company turn over information on how it works with Multiple Listing Services, the locally owned and operated compilations of real estate data. The “civil investigative demand” concerned potential antitrust law violations, Justice said. Specifically, “practices that may unreasonably restrain competition in the provision of residential real-estate brokerages services in local markets in the United States.” It’s not the first time that Justice took an interest in how competition is stifled in the residential real estate market. The April demand joins another high-profile legal case: a lawsuit filed in March which charges that real-estate brokerages and their industry group conspire to keep agent commissions artificially high. In the American way of transacting real estate, buyers never have any reason to demand a higher level of service or a lower fee from their own broker, since the seller is essentially paying the tab for both sides. Often, when sellers try to offer fees lower than the 3% (standard across most of the country), brokers tend to steer buyer clients away from those listings even if the house was a good fit. Against that backdrop, in an industry that has resisted change and operated with an “I’ll-scratch-your-back...” ethos, an overhaul of the MLS, the information infrastructure of the industry, might be the ultimate example of a revolution underway. “I think everyone smells change in the air,” said Glenn Kelman, CEO of Redfin, a discount real estate brokerage, one of the earliest disruptors to try to take on the established way of brokering residential real estate. “Certainly everyone in the industry either acknowledges [change] or embraces it,” he said. The MLS is often referred to as a singular entity, but there are hundreds of iterations. Each aggregates information on properties available for sale in its local area. The National Association of Realtors describes it this way, playing up its benefits as a pool of listings: “The MLS is a tool to help listing brokers find cooperative brokers working with buyers to help sell their clients’ homes. Without the collaborative incentive of the existing MLS, brokers would create their own separate systems of cooperation, fragmenting rather than consolidating property information.” The Justice Department has long been interested in how the various MLS operate. As MarketWatch was one of the first publications to report, last year a decade-long consent decree against NAR was lifted. That agreement was reached in 2008 after local real estate associations and listing services spent years refusing to allow listing access to upstarts like Redfin, which can tend to undermine an agent’s role in the process and engage the consumer in the house hunt. But a decade on, things have changed, thanks in large part to technology companies like Redfin RDFN, -3.84% , Zillow ZG, -1.74% , and even Realtor.com, a venture owned and operated by News Corp., the owner of MarketWatch. As Rob Hahn, founder and managing partner of 7DS Associates, a real estate consultancy, put it, “the cartel has been broken when it comes to listings. Zillow has all the buyers. The moat today is the hidden information, the sold data, off-market data and agent commission.” Agent commission is clearly what’s of interest to Justice now. The very first item on the list of demands sent to CoreLogic CLGX, -0.05% was “all documents relating to any MLS member’s search of, or ability to search, MLS listings on any of the company’s multiple listing platforms, based on (i) the amount of compensation offered by listing brokers to buyer brokers; or (ii) the type of compensation, such as a flat fee, offered by listing brokers to buyer brokers.” The information in question is typically available on the MLS but not third-party industry sites like Zillow or Redfin. But even if such information is not displayed on the MLS, it may be searchable or downloadable, which is why Hahn thinks DoJ is focusing on “any MLS member’s search of, or ability to search, MLS listings.” In U.S. residential real estate transactions, agents representing both the buyer and the seller are paid from the proceeds of the sale. That means that technically the seller pays the commission of both his own agent and the agent representing the buyer. Of course, anyone in the industry, or anyone who’s bought and sold real estate often enough is keenly aware that’s not entirely true. “Ultimately the buyer is paying for it,” said Daren Blomquist, vice president of market economics at Auction.com. “It’s baked into the price of the property. How the gatekeeper of the transaction is paid is something a lot of folks don’t completely understand and that’s what’s at the heart of some of these legal actions.” It is important to note that while there is evidence that real-estate agents steer clients away from listings offering lower commissions and for-sale-by-owner transactions, as noted in earlier reporting, the precise impact of such actions haven’t been well-quantified. As Hahn notes, more research could determine whether those properties linger on the market longer, sell for less, some combination of those two, or something else altogether. Making it easier for consumers to understand transactions may be at the heart of the legal actions, but making it more enjoyable — or at least less painful — to do the deal is core to many of the new ideas and billions of dollars flooding into the housing market recently. “Consumers are pissed off,” Hahn said. “There’s more and more sentiment from consumers that Realtors don’t earn their pay.” Entrepreneurs, including from tech clusters like Silicon Valley where the disrupters may have little actual real estate experience, smell opportunity. “There’s money involved, is the bottom line,” Blomquist said. “Housing is really a multi-trillion dollar industry and that translates into tens of billions in commissions to the gatekeepers of those transactions. As we’ve seen some of these start-ups come out of the woodwork over the last few years, trying to disrupt the industry, that’s code for ‘we want to take a piece of the pie.’” Blomquist has spent several decades working for real estate data providers. MLS data is “a great complement” to public records data like deed transfers, and there may be privacy concerns about how much data should be made widely available, but generally, it was a “protectionist” industry trying to guard its information that makes MLS data off limits to private companies, Blomquist said. Now, industry participants like Glenn Kelman say the DoJ’s interest is a good thing. “The two sides were dug in a decade ago over who could have access to the listing data,” Kelman told MarketWatch. “In comparison I think this is a much more tractable problem to solve and I’m excited about

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REASONS TO OBTAIN TITLE INSURANCE

BUYING A HOME IS AN EXCITING AND EMOTIONAL TIME FOR MANY PEOPLE. TO HELP YOU BUY YOUR HOME WITH MORE CONFIDENCE, MAKE SURE YOU GET OWNER’S TITLE INSURANCE. HERE’S WHY IT’S SO IMPORTANT FOR YOU: (1) PROTECTS YOUR LARGEST INVESTMENT A home is probably the single largest investment you will make in your life. You insure everything else that's valuable to you - your life, car, health, etc., so why not your largest monetary investment? For a one time fee, owner's title insurance protects your property rights for as long as you or your heirs own your home. (2) REDUCES YOUR RISK If you're buying a home, there are many hidden issues that may pop up only after you purchase your home. Getting an owner's title insurance policy is the best way to protect yourself from unforeseen legal and financial title discrepancies. Don't think it will happen to you? Think again. Unexpected title claims include: - Outstanding mortgages and judgments, or a lien against the property because the seller has not paid her taxes - Pending legal action against the property that could affect you - An unknown heir of a previous owner who is claiming ownership of the property (3) YOU CAN'T BEAT THE VALUE Owner's title insurance is a one-time fee that's very low, relative to the value it provides. It typically costs around 0.5% of the home's purchase price. (4) COVERS YOUR HEIRS As long as you or your heirs own your home, owner's title insurance protects your property rights. (5) NOTHING COMPARES Homeowner's insurance and warranties protect only the structure and belongings of your home. Getting owner's title insurance ensures your family's property rights stay protected. (6) 8 IN 10 HOMEBUYERS AGREE Each year, more than 80% of America's homebuyers choose to get owner's title insurance. (7) PEACE OF MIND If you're buying a home, owner's title insurance lets you rest assured, knowing that you're protected from inheriting any existing debts or legal problems once you've closed on your new

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE PRIMARY RESIDENCE TAX EXEMPTION UNDER IRS CODE SECTION 121

The $250,000 (single) / $500,000 (married) home sale gain exclusion is a major benefit of homeownership, but the rules can be confusing if you’re not familiar with them. How do you calculate your gain in the first place? What if you owned your house before you got married? Can you exclude $500,000 of gain or only $250,000? What about if you rented out your home at some point? These questions are more are what we’re going to dig into in this article. How to Calculate Your Gain Typically, when you sell a piece of property, you have to pay taxes on your gain from the sale. Your gain is the difference between what you sold the property for (your “proceeds”) less selling expenses less your “basis” in the property. Your “basis” is what you originally paid for the property plus various closing costs plus various improvements you’ve made over the years less depreciation. However, people don’t depreciate their primary home unless it’s used for business or rental, so we’ll leave the depreciation talk out for now. So let’s say you bought a property for $100,000, paid $2,000 in capitalizable closing costs on it, and made $13,000 in capitalizable improvements on it. Your basis is $115,000. Now you go and sell the property for $200,000 and incur $10,000 of selling costs. Your gain is $75,000, and you would typically have to pay tax on this gain. How the Home Sale Gain Exclusion Works Now, there is an exception to the general rule of paying tax on your gain when it comes to your primary residence. This exception is known as the Home Sale Gain Exclusion, and it’s found in Section 121 of the Internal Revenue Code. This Home Sale Gain Exclusion lets you exclude (i.e., not pay tax on) up to $250,000 of gain on the sale of your primary residence if you are single or $500,000 of gain on the sale of your primary residence if you are married filing jointly with your spouse. You have to have owned and lived in the house for 2 out of the last 5 years ending on the date of the sale of the home (2 years being defined here as 730 days or 24 full months). Also, you can only take advantage of this exclusion once every 2 years. So if you plan on selling two primary residences in the near future, it would be wise to use the exclusion on the one that will result in the most gain. However, keep in mind that the exclusion defaults to the first residence sold, so if you want to exclude the gain on the second residence sold, you must make a specific election to be taxed on the first so you can use the exclusion on the second. Note that the ownership and use requirements need not be concurrent, so if you simply lived in the home (say on a lease) in Years 1 and 2, and then purchased it in Year 3 but moved somewhere else in Years 4 and 5 (while still keeping the home), you would still qualify. Also, this exclusion is only available on your primary residence. If you own multiple residences, the home you use for the majority of time during the year is considered your primary residence. I Bought Our House Before I Got Married. Can We Exclude $250,000 or $500,000? Oftentimes, a married couple will sell a home that one spouse purchased before marriage, and the question becomes, “Can we exclude $500,000 or only $250,000?” In order to take advantage of the $500,000 gain exclusion in a situation like this, the following requirements must be met: - One spouse needs to meet the ownership requirement, meaning that only one spouse needs to have actually owned the home for 2 out of the last 5 years. - However, both spouses must meet the use requirement, meaning that both spouses must have lived in the home for 2 out of the last 5 years. - Also, neither spouse can have used the Home Sale Gain Exclusion (on another residence) in the 2-year period ending on the date of the sale of the home. If all of these requirements are met, then the couple may exclude $500,000 of gain on the sale of the home that one spouse purchased before marriage. If these requirements are not met, then the couple may only exclude $250,000 of gain on the sale of this home insofar as one spouse meets all requirements. Obviously, if no spouse meets the requirements, then no gain may be excluded. Are There Any Exceptions to the 2-Year Rule? Believe it or not, the IRS is merciful at times, and they do allow for some (limited) exceptions to the requirement that a taxpayer live in a home for 2 out of 5 years in order to take advantage of the Home Sale Gain Exclusion. The exclusion will be reduced, but it is still possible to exclude some gain on the sale of a primary residence if you: - Changed your place of employment - Had a sudden health issue - Underwent some other unforeseen circumstance or hardship These exceptions also apply to the rule that one may only take advantage of the Home Sale Gain Exclusion once every 2 years. As qualifying for these exclusions can be tricky, it’s recommended that you speak with a tax professional about your particular situation. What If My Home Is Unique? The term “residence” is fairly broad for purposes of the Home Sale Gain Exclusion and includes such living arrangements as houseboats, trailers, and stock held in a cooperative housing corporation. However, if you live in personal property that is not considered a fixture under local law, this property will not count as a residence, and you cannot exclude your gain on it. So if you live in a mobile home, be sure to speak with a tax professional about whether or not your home qualifies as a “residence” for purposes of the Home Sale Gain Exclusion. What If My Spouse Dies? If your spouse dies, and you have not remarried as of the date you sell the home, you will be considered to have used the home as a principal residence for the same period that your deceased spouse used the home as their primary residence. So if you need to us this rule to maximize your exclusion, be sure to sell the home before you remarry! What If I Rent Out the House and Then Live In It? If you use a house first as rental property and then use it as a primary residence, then unfortunately you lose a part of your exclusion. Let’s walk through an example to show you what we mean. - January 1, 2013: you buy a house for $100,000 and begin renting it out immediately. - January 1, 2015: you kick out the tenant and begin living in the house. - January 1, 2017: you sell the house for $300,000. For example’s sake, let’s say your cost basis is that $100,000 and the $300,000 has already taken into account selling expenses, so your gain is $200,000. Well, I have some bad news for you. You can only exclude 50% of your gain, i.e., $100,000, because 50% of the years before the sale are considered “nonqualified” for the exclusion since during those years* the home was not used as a primary residence. And to top it all off, you will have to pay depreciation recapture for the depreciation you took (or were entitled to take) when the house was a rental. However, a 1031 exchange, which we discuss below, can be very useful in this situation. *Note that years before 2009 do not count for purposes of this calculation. What If I Rent Out the House and then Live in It and then Rent It Out and then Live In it Again? Some situations, of course, are more complicated. What if you first buy a house, rent it out, live in it, then rent it out, and then live in it again? Here’s another example. Let’s walk through an example to show you what we mean. - January 1, 2003: you buy a house for $600,000 and rent it out. - January 1, 2005: you move into the house and live in it. - January 1, 2007: you move out of the house and rent it out. - January 1, 2019: you move into the house and live in it. - January 1, 2021: you sell the house for $1,300,000. For example’s sake, we’ll assume that there were no renovation expenses over the years and the $1,300,000 is net of selling expenses. Let’s also assume that you took $200,000 of depreciation over the years. What Does the Tax Code Say? Oh boy, this is a doozy. Let’s look at what the tax code says. Section 121(b)(5)(A) says that you may not exclude gain allocated to periods of nonqualified use. Section 121(b)(5)(B) says that gain allocated to periods of nonqualified use is your total gain multiplied by the ratio of the period of nonqualified use divided by the total period the property was owned by the property. Section 121(b)(5)(C) says that the period of nonqualified use includes any period (not including periods before 2009) during which the property is not used as your or your spouse’s or former spouse’s principal residence. Section 121(b)(5)(C) also says that the period of nonqualified use would not include: - Any time within the 5-year window before you sold the house that is after the last date you lived in the house. This would not apply in this situation since there is no rental period after January 1, 2021 (the last date you lived in the house) since you sold it on that date. - Any time during which you or your spouse served on qualified official extended duty. Let’s assume that isn’t applicable here. - Any time of temporary absence (not to exceed 2 years) due to change of employment, health conditions, or such other unforeseen circumstances. Let’s assume that doesn’t apply here. So How Much Non-Qualified Use Do I Have? So putting it all together, given the situation above, all periods before 2009 are qualified use. But you have 10 years of non-qualified use from 2009-2018, i.e., the periods beginning in 2009 when you didn’t use the property as your primary residence. And since you owned the house for 18 years (from 2003-2020), your non-qualified use ratio is 10/18 = 55.55%. So 55.55% of your gain not attributable to depreciation recapture is ineligible for the home sale gain exclusion. Your total gain on sale not including depreciation recapture is $1,300,000 net selling price – $600,000 original cost = $700,000. So you multiply $700,000 by 55.55% = $388,850. This is your gain allocated to non-qualified use. You have to include this gain in income and may not exclude it. So How Much Do I Owe If I Move Back In for 2 Years? Because the remaining gain of $311,150 ($700,000 – $388,850) is less than the maximum gain of $500,000 (let’s assume you are married and file jointly with your spouse), this $311,150 may be excluded from income. But you still have to pay capital gains tax on the $388,850. Assuming you’re in the 20% capital gains rate, you’re looking at a $77,770 federal capital gains tax bill, assuming 2018 rates. And of course you have depreciation recapture under Section 1250 on the $200,000 of depreciation you took at 25% (assuming you’re in the top tax bracket). So you’re looking at $50,000 of depreciation recapture tax, assuming 2018 rates. So if you move back in for 2 years, your total federal tax bill is still $127,770. And this doesn’t even take into account state taxes! If you’re in California like me, you’ll be paying as much as $61,500 (depending on your tax bracket) of state taxes as well! So How Much Did I Really Save By Moving Back In? Now let’s look at your tax bill if you didn’t move in for two years. Instead of only paying capital gains tax on 55.55% of your gain not attributable to depreciation recapture, you will now pay capital gains tax on the entire $700,000. $700,000 x 20% = $140,000 capital gains tax. And the depreciation recapture tax is the same at $50,000. So if you don’t move back in, your total federal tax bill is $190,000. And you could be looking at a 6-figure state tax bill as well (up to $110,700 if you live in California like me!). So if you’re a California resident in the highest tax bracket, you’re looking at an over $300,000 combined federal and state tax bill! The same would go for other high income tax states like New York. Subtracting $127,770 from $190,000, you would save $62,230 in federal taxes by moving back in for 2 years. And of course you would also potentially save tens of thousands of dollars in state taxes. In a situation like this, it may actually be more advisable from a tax perspective to simply 1031 the property while it is a rental (see below) where you can potentially defer all taxes (including depreciation recapture) rather than taking a partial, albeit tax-free, home sale gain exclusion under Section 121. What If I Rent Out a Part of the House or Take the Home Office Deduction? Now, let’s say you rent out only a part of your home (say, a room) or take the home office deduction on part of it. Let’s call this part of your home, whether the rental portion or the home office or both the “business use portion” of your home. Whether or not you can apply the Home Sale Gain Exclusion to the business use portion of your home depends on whether or not the business use portion is within the walls of your dwelling unit (e.g., a room in the house you live in) or outside the walls of your dwelling unit (e.g., a guest house in the backyard). Business Use Portion Is Within the Walls If the business use portion of your home is within the walls, you can apply the Home Sale Gain Exclusion to the amount of gain allocated to the business use portion. So let’s say your business use portion occupies 10% of your home. You otherwise qualify for the Home Sale Gain Exclusion, and you have a $100,000 gain on your home. Congratulations! $90,000 of gain is tax-free on the sale of the personal residence portion of your home, and $10,000 of gain is tax-free on the business use portion of your home! However, any depreciation deduction you historically claimed on your business use portion is subject to recapture as unrecaptured Section 1250 gain, though this can be deferred through a 1031 exchange (we talk about this later). Business Use Portion Is Outside the Walls If the business use portion of your home is outside the walls, you cannot apply the Home Sale Gain Exclusion to the amount of gain allocated to the business use portion. So let’s say your business use portion occupies 10% of your home. You otherwise qualify for the Home Sale Gain Exclusion, and you have a $100,000 gain on your home. Well, only $90,000 of gain is tax-free on the sale of the personal residence portion of your home, but you have to recognize $10,000 of gain is tax-free on the business use portion of your home. And any depreciation deduction you historically claimed on the business use portion is subject to recapture as unrecaptured Section 1250 gain. But here’s the deal. The 1031 exchange discussed below can defer taxes on both the $10,000 gain and the unrecaptured Section 1250 gain for your depreciation recapture! Can I Use a 1031 Exchange in Conjunction with the Home Sale Gain Exclusion? The answer is yes, you can use a 1031 exchange along with the home sale gain exclusion under Rev. Proc. 2005-14. Doing so can help you avoid paying taxes this year on any gains or depreciation recapture attributable to your home office, a rental of part of your home, or the nonqualified use periods of your entire

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

10 ARCHITECTURAL HOME STYLES

Building a custom home gives you complete control over every aspect of the design. There are dozens of architectural styles to base your custom home on, from historical approaches to modern interpretations. Look around the country and you will see nearly countless options. In the northeast, Colonial and Cape Cod style homes dominate neighborhoods, whereas you are more likely to see arts and craft cottages and ranches out west, and Greek revival homes down south. The beauty of creating your own custom home is that you can pick a style that matches your tastes and needs. There are many considerations that go into what will work best for your home. Some climates are better suited for certain home designs, whether because the typical roof pitch is appropriate for a snowy winter or because the style’s quintessential courtyard offers those in sunny climates to enjoy indoor/outdoor living. You also want to consider the surrounding landscape and neighboring buildings when picking a dominant architectural style for your custom home. Work closely with your architect to find the perfect style for your custom home. A good architect can even mix and match aspects from styles that appeal to you. 1. Modern Modern architecture emerged in the first half of the 20th century and became a dominant style in the aftermath of the Second World War. New advances and experimentation in construction technology, especially the easier use of glass, steel, and reinforced concrete, pushed this architectural trend forward. Modern architecture was inspired by the historical art movement of modernism and was a rejection of the traditional neoclassical architecture that had been popular throughout the 19th century. Modern architecture is often thought of as the same as contemporary. Although they are related, contemporary architecture simply refers to architecture ‘of this time,’ that is, what is being built now. So contemporary architecture is not limited to one specific style. But it has been narrowed a bit to exclude certain historical styles, such as neoclassical, and is considered to be architecture that is innovative and forward-looking. That being said, a lot of contemporary architecture today borrows many elements from modern architecture. Characteristics of a Modern Home: Modern homes are often boxy and geometric with a flat roof and have a dramatic curbside appearance. Their material components are typically glass, steel, and concrete. And the use of solid, white walls is a very common feature of modern homes. Floor-to-ceiling windows are a common feature in many modern homes, as are unusual exterior features. On the interior, modern homes make use of an open floor plan. Modern homes focus on function over design, and clean, geometric lines are again repeated throughout the interior design. Example of a Modern Home: Ludwig Mies van der Rohe’s Farnsworth House is one of the most famous examples of a modern home. Built between 1945 and 1951 in Plano, Illinois as a country retreat, this modern home shows many typical characteristics of modern architecture. It has a simple, boxy shape with large, continuous floor-to-ceiling glass walls and doors spanning all sides of the home. It is painted in a stark white, juxtaposition the brightly colored nature which surrounds it. On the inside, the home seems to be one large open room, cleverly configured into separate zones. 2. Victorian Victorian style homes were born out of the freedom afforded by the industrial revolution, as new technologies gave way to building techniques capable of such elaborate details. This architecture emerged between 1830 and 1910 during the reign of Queen Victoria. Common sub-styles include Gothic revival, Italianate, Second Empire, Queen Anne, and Romanesque style. Characteristics of a Victorian Home: Victorian homes are elaborate homes with intricate details inside and out. Typically two stories, Victorian homes are built more for beauty than functionality. They have asymmetrical floor plans, steep roof pitches with dormers, large ornate porches, and grand towers and turrets. Stylistically, these homes often have ornate trim, bright, whimsical colors, eyebrow windows, and decorative railings. These homes often have complex floor plans with a series of rooms scattered around. The benefit is that you can arrange rooms across the 2 or 2.5 floors as you desire. Irregular room shapes offer plenty of opportunities for bay windows, cozy seating, and intimate dining areas in the home’s unique shape, caused by towers and turrets, means it has an abundance of windows. The large porches that wrap around the home allow for indoor/outdoor living and can be connected to multiple rooms. Example of a Victorian Home: This Victorian home in New Haven, Connecticut is done in classic Gothic Victorian style. Known as Chetstone, the recently restored home was originally built in. It has 4,355 square feet of living space throughout its 3 stories. Meticulous details can be found throughout, from the decorative exterior trim to the interior woodwork and built-ins. The home has grand porches and is decorated with period appropriate finishes, including marble fireplaces and gas lamps. It even has an antique wood-and-rope elevator. There is also a cozy tower room that would be perfect for a home office or reading nook 3. The Cape Cod The Cape Cod home originates in 17th century New England and has gone through periods of revival since. The style was adapted from half-timbered English houses with a hall and parlor. Settlers in the area adapted this to homes suitable for the stormy and cold northeast winters and utilized natural local materials. Characteristics of a Cape Cod Home: A classic Cape Cod style home is a smaller home with a simple symmetric design. They are generally 1.5 stories with a moderately steep pitched roof with gables and a large chimney, generally in the center of the home. Stylistically, Cape Cod homes have little ornamentation and are commonly covered in cedar shingles or clapboard. They tend to have window flanking a central front door and double hung symmetric windows with shutters. The shape of this home typically means there is a formal, center-hall floor plan, with a master suite on the ground floor and additional bedrooms upstairs. The Cape Cod style lends itself to an intimate and cozy layout and works particularly well for smaller families. The style can easily be adapted to add a garage to the side and even additions on the side or rear without interrupting the aesthetic style. Larger dormers can be designed on the upper level for more headroom and/or storage space. Example of a Cape Cod Home: This charming home in Martha’s Vineyard, Massachusetts has classic Cape Cod style architectural details. The symmetric front of the home has the quintessential central door flanked by shuttered windows and evenly placed dormers on its shingled, pitched roof. A modern addition to the traditional Cape Cod style are the matching wings that expand the first-floor square footage. One wing holds the large master suite while the other is open to the central part of the home and contains the great room. A neutral color palette is used both inside and out to keep the home feeling light and airy. 4. Greek Revival Greek Revival architecture is an international style that first appeared in the 1820s and was popularized in America during the 1830s and ’40s, right up to the start of the Civil War. American builders during this time were drawn to the Greek Revival style due to its connections to the birthplace of democracy. It expressed the young country’s triumphant sense of destiny. Greek Revival style has had periods of resurgence since its height in popularity. These temple-fronted facades can be seen on churches, banks, town halls, and homes across the country. Characteristics of a Greek Revival Home: Greek Revival homes have very prominent exterior features. Thick, often white, columns flank the front entrance and support a porch that spans the width of the home. Some Greek Revival homes have also porches that wrap around the sides of the home and/or a second-story front porch. Roofs are typically low-pitched gable or hip roof, and it is common to see cornice lines embellished with a band of trim. Windows are typically tall and symmetrically placed across the facade. Building materials are commonly stucco, wood, and occasionally stone. They are often painted white or given a faux finish to resemble stone or marble. Greek Revival homes are suitable for a range of home sizes and can be designed to fit into the suburbs just as well as they can on a large, sprawling estate. They tend to have a large footprint with grand, formal rooms, but can easily be adaptable to many different interior layouts. Multiple exits to the outside can be designed into a Greek Revival home, making it a great option for indoor/outdoor living. Examples of a Greek Revival Home: Built in the 1890’s and recently renovated, the Pillars is a three-story Greek Revival manse overlooking the hills of Hot Springs, Virginia. The home, of course, has the classic pillars and grand front porch, perfect for sipping cocktails and watching fireflies in an old fashioned rocking chair. The thoughtfully restored interior has a classic layout with a central foyer holding a grand staircase leading to the second floor, where the home’s many bedrooms line the perimeters of a long hallway. The main floor is divided into separate large and formal rooms. 5. Ranch The ranch home, sometimes called a rambler, is typically a single-story home with a long horizontal footprint. Often attributed to California architect Cliff Mays and made fashionable by Frank Lloyd Wright, the ranch home was popularized in the 1950s. This postwar style celebrated the profusion of cheap land and the sprawling suburbs. Characteristics of a Ranch Home: The original style of the ranch was no-frills and basic. Ranch homes embraced a less-formal lifestyle and encouraged open and free-flowing floor plans. Ranches are usually one-story, but there is also a ‘raised ranch’ which is a two-story adaptation with a finished basement. Standard features include a long, low roofline and simple, open layouts. As ranches became more common they increasingly incorporated with more dramatic features such as varying roof lines and cathedral ceilings, but the basic premise remains the same. Ranches are typically rectangular, L-shaped, or U-shaped. The long horizontal structure allows for easy connection to the outdoors, and most rooms have a view of both the front and the back of the home. The long layout of the ranch also allows for an easy division between living and sleeping spaces. And because of the structure of a ranch home, future additions are often fairly simple. Example of a Ranch Home: The Houl, a single story ranch house in Dalry, Castle Douglas, Scotland and designed by Simon Winstanley Architects, is a great example of the benefits and versatility of a ranch home. The contemporary single story home is recessive in the landscape. All principal rooms are situated along the open side of the home to enjoy the spectacular views; ancillary rooms are located on the back side. It has an open floor plan on one-half with a kitchen, living, and dining space set along with floor-to-ceiling windows. Private rooms are located along a corridor in the other half of the home. This award-winning home is also net ‘zero carbon.’ 6. Craftsman A craftsman home, similar to the bungalow styles, was born out of the Arts and Crafts movement and influenced by Asian design elements. This style first appeared in California during the early 20th century and slowly moved eastward. The craftsman house was at its peak of popularity between 1905 and the 1930s and is making a strong comeback today. They are known for their honest and simplistic design and are seen by some as a backlash against the elaborate homes that preceded them, such as the Victorian. One of the most prominent early practitioners of the American Craftsman home was David Owen Dryden, who was responsible for more than 50 craftsman homes in the San Diego area alone. Characteristics of an Arts & Craft Home: Craftsman styles houses place an emphasis on natural materials and tend to be symmetrical structures. They often have low-pitched roofs with gables (often hipped), overhanging eaves, and wide front porches with tapered columns or pedestals that extend to the ground level. Handcrafted stone and woodwork is also a common element. This style home lends itself to distinctive color combinations. Craftsman homes have compact but open interiors that allow for better traffic and foster family interaction. One hallmark of a craftsman home is built-in furniture, bookcases, cabinetry and even eating nooks. They tend to have large fireplaces and exposed rafters/beams. Stylistically, bungalow and craftsman style houses place an emphasis on natural materials such as wood, stone, and brick. These homes are comfortable to live in and rich in detail. 6. Cottages Cottages are generally 1-2 stories, with asymmetrical exterior features, and have cross-gabled, steeply pitched roofs. Common characteristics of English Cottages are overscaled chimneys with decorative brick or stone work, a gabled, enclosed entryway with a half-round or arched door, and decorative half-timbering. Siding can vary, but can be stone, stucco, shingle, and lapped. The interior of an English Cottage is generally cozy, irregularly-shaped rooms. Small front porches can easily be designed into a cottage style home. 8. Pueblo Revival Pueblo Revival homes are influenced by one of the oldest forms of architecture native to North America. It originates from the simple, multi-family structures used by Pueblo Indians starting around 750 AD. This style had a revival starting in New Mexico and Arizona around the turn of the 20th century, with a heavy Spanish influence. Characteristics of a Pueblo Revival Home: The exterior of a Pueblo Revival home is smooth and geometric. Blockish forms assimilate into a cohesive cluster and the homes make heavy use of earthy materials. They are sometimes built with traditional adobe (sun-dried mud), but often are built with concrete, stucco, or mortar. It is also common to incorporate wood with heavy doors, ceiling beams, and porch posts. Roofs are often flat or slightly sloped and have projecting wooden roof beams or vigas. Pueblo homes are great options for hot and dry climates. They are naturally eco-friendly in design and have thick walls to insulate against the elements. They can be designed with a sheltered courtyard or patio, and all other areas are organized around this common space. This style is easily adaptable to a variety of sizes. It can be built compact for a small suburban plot, or large and sprawling for a rural desert environment. The style is also useful for incorporating multiple living units, such as a guest house or second home for multi-generational living. 9. Spanish Spanish style architecture is an inclusive term that covers and blends several styles, including Moorish Revival, Spanish Colonial Revival, and Mission Revival. This style came about in North America from Mediterranean settlers who fused European architecture with Mexican and Native American design elements and techniques. It dates back to the end of Spanish colonization in the Americas and moved throughout the then-Spanish territories. Characteristics of a Spanish Home: Spanish style homes often have stucco, adobe or stone facades. The exterior tends to be uniform and have a smooth appearance. Roofs may be flat or with a small slope and made of tile, stone, or clay. Red tiles are a common material for roofs. The exterior tends to be painted white or light earthy tones. Arched porches are also a common exterior feature, either in the front of the home or exterior. Spanish style homes also tend to have small, open windows, used to let in a cooling breeze, while avoiding direct sunlight. These windows may have wooden shutters mounted on the inside of the home. A common feature of Spanish homes is a large, sheltered, interior courtyards, often with water features. Spanish homes are often decorated with colorful tile accents and wrought ironwork. Doorways and windows have arches, reflecting a Moorish influence, and Spanish homes typically have heavy, carved wooden doors. Inside, floors are tile, stone or cobbled. 10. Tudor Tudor style homes are original from England and were mostly built in North America in well-established and wealthy neighborhoods from 1890 to 1940. Older Tudor style homes are commonly seen in the Midwest and along the East Coast, as they are well suited for rainy and snowy climates. Tudor style homes in North America combine many elements and material choices from late Medieval and early Renaissance styles. Characteristics of a Tudor Home: Tudor style homes are known for their steeply pitched, multi-gabled roofs, and decorative half-timber framing. It is not uncommon for some eaves to plunge nearly to the ground. Exteriors are made by mixing materials: brick is contrasted with areas of stone, stucco, or wood cladding, perhaps on gables or upper stories. Standard colors are brown, cream, and white tones, which complement the traditional Tudor materials of slate, brick, concrete, and stone. These homes tend to have arched doorways and heavy wooden doors. Massive brick or stone chimneys topped with elaborate chimney pots are also common. Windows are often in groups of two, three, or four and may have panes arranged in a diamond pattern or stained glass. Tudor homes are all about indoor living, unlike styles like Spanish and Pueblo Revival that emphasize outdoor space. At least one room has a large fireplace which invites families to gather around the stone hearth. The interiors are traditionally filled with dark wood paneling, exposed timbers, and many separate rooms. This cozy environment is perfect for cold climates. Although many examples of Tudor styles home are grand mansions suitable for multi-generation living or live-in-help, Tudor homes are indeed suitable for nearly any size. More modest homes can easily be designed to fit gracefully into smaller suburbs. Regardless of the size, however, nearly all Tudor style homes are asymmetric with dominating roof lines. And this style home tends to be made of sturdy, ‘noble’ materials, and hold up well against time and the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CLOSING DATE VS. POSSESSION DATE

Here is a possible scenario: Your current home is sold and you must close on your existing home in order to close on a new one. You have to have all of your belongings out of the current home and nowhere to go but to keep them in a truck or in storage if you are moving from out of state. So what happens if the closing does NOT happen as originally planned on a Friday and now you have to wait until Monday to close. Oh boy.....you are now homeless! But you didn't have to be! What is the Difference Between Possession Date and Closing Date? Possession Date is the date that you will have permission to occupy the property at a per day annum agreed upon in the contract. Usually this date is the same as the closing date in Iowa since the buyers receive the keys and may occupy the home after the closing papers are signed and the money is turned over at the closing company. Closing Date is the day that you physically meet the agents and your lender at the closing office to sign all the paperwork for the mortgage and note for your new home. You will receive the keys once all the paperwork is signed and delivered to the lender. So, back to the scenario above where the closing does not happen as anticipated.....what can we do to try to resolve this situation? First of all, this situation is not unique. It seems to me that most transactions are interconnected. Meaning that all of the closings are dependent on the previous one closing on schedule. The only time that this is easier in some way is if it is a vacant home that someone is buying. There is a document in Iowa called the Interim Occupancy Agreement. At the time of writing the offer, the buyers may elect the possession date to be several days or a week prior to the closing. When that option is elected, there is an addendum that must be made part of the contract called the Interim Occupancy Agreement. This document gives specifics about the terms of allowing the buyer to occupy the home prior to closing for a disclosed period of time. Terms that are outlined in this agreement include but are not limited to: The date that the keys will be given to the buyers as well as the date that the buyer has permission to occupy the premises. The amount per day that the buyer will be charged and that it will be paid to the seller at the time of closing. This amount is calculated by using the purchase price and the new mortgage interest. It is still cheaper than a hotel or paying for storage! The buyer must be able to release all financial contingencies as well as provide a release of all of THEIR buyers' contingencies on their existing home. Your loan may be ready, but the buyers of your home might have an issue that will delay your closing further. All contingencies must be released by all relevant parties to this purchase. The buyer must have their homeowner's insurance on the home so that it will cover their personal belongings. The seller will still maintain the home owner's insurance until the date of the closing, but it will not cover the buyer's belongings. The utilities, snow removal or lawn care, and all other repairs are the responsibility of the buyer. Meaning if the furnace goes out between the time that they move in and the closing date, it is THEIR responsibility, not the seller's problem! The buyers will sign the final inspection release prior to having possession of the home. Meaning if the furnace goes out between the time that they move in and the closing date, it is THEIR responsibility, not the seller's problem! The buyers cannot paint, remodel or make any changes to the property until after the closing. This document is not meant to create a landlord/tenant relationship and it gives them a date the buyers must close on the property or else it will give them a date that they must vacate the property. The interim occupancy agreement and its pros and cons is a whole other blog post in itself, but this gives you an overview of the options. I will be posting on the specifics of this agreement tomorrow. So tune in! Moving twice, or moving everything in one day can be stressful. Since most of my buyers are relocating from somewhere else, they are counting on the closing date to happen when it is supposed to. That moving truck is coming from California and if you do not have the keys to let them in, it could be a lot more money and several days to pay them to wait for you to close. Clarifying this option at the time of the offer will alleviate the stress of the "what if" scenario

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

OPTIONS FOR HANDLING CEMETERIES ON PRIVATE PROPERTY

Prior to World War II, it was not uncommon, especially in rural areas, for families to bury their deceased family members in a small corner of their property. Now that some of those rural areas are not so rural anymore, a property owner may be surprised to find that their land is host to the remains of prior owners from days gone by. The owner of land that contains a family cemetery has two options with respect to the cemetery. The first is to allow the cemetery to remain in place. The other option is to obtain a court order allowing the relocation of the cemetery. In Virginia, a circuit court can order the relocation of a family cemetery if the cemetery has been abandoned and it is not historically significant. If the owner allows the cemetery to remain in place, that owner generally has no duty to maintain the cemetery, other than any duty local proffer requirements and zoning ordinances might impose. If an owner wants to relocate an abandoned family cemetery on their property to an established cemetery, there are several steps the owner must take. The owner should have a title examination performed to determine whether there is a reservation of rights to the cemetery in the chain of title. A reservation of rights to a family cemetery in a deed is generally not considered a reservation of the fee-simple ownership of the land that constitutes the cemetery. Rather, it is akin to an easement in gross that allows family members or other beneficiaries to make burials, visit, and maintain the cemetery. If the cemetery use is discontinued and the remains relocated, the reservation is extinguished, and the beneficiaries of the reservation have no further rights to the underlying land. The owner should also confirm that the cemetery is, in fact, abandoned. The Virginia Code specifically requires that to be considered abandoned, there can have been no human remains buried in the cemetery for a period of at least 25 years. In addition, the owner should confirm that the cemetery is in a state of disrepair and has not been maintained in any way for a substantial time period. Family cemeteries are generally not considered “historically significant” unless a historically significant person is buried there, there is some unique architectural aspect of the cemetery, or the cemetery is directly connected to a historically significant place or event. While not required, it is advisable to get an archeologist to perform a cemetery delineation to confirm the boundaries of the cemetery and the location of any marked and unmarked graves. It is also advisable to retain a genealogist to locate the descendants of those known to be buried in the cemetery and any other possible beneficiaries of any reservation of rights. If not all of the descendants can be located, the Virginia Code encourages the property owner to follow several guidelines, including publishing a notice for the public, and alerting local genealogical and historical societies. If the cemetery has no historical significance and has been abandoned, the landowner can petition its jurisdiction’s circuit court for an order allowing the relocation of the cemetery to an established cemetery where the graves would receive perpetual care and maintenance. The property owner is responsible for the relocation costs. Prior to filing a petition to relocate a cemetery, it may be advisable to contact the known descendants of individuals buried on the property to explain the process to them and to establish some goodwill. The owner should also ask them if they have knowledge of other descendants who might not have been identified, and ask them for consent to relocate the graves at no expense to them. The petition must name “all parties in interest,” which is not clearly defined in the Virginia Code. Therefore, it might be advisable to include “parties unknown” in the petition. The “parties unknown” must be served through publication in a local newspaper and a guardian ad litem must be appointed. It is within the discretion of a circuit court to determine whether the relocation is appropriate and, in the past, courts have ordered relocations over the objections of some descendants. Once the court has entered an order and the 30-day appeal period has run, the graves can be relocated. This is usually handled by a licensed funeral home. In many instances, it is simply not economically feasible to relocate an abandoned family cemetery. Other times, the size of the cemetery or the topography of the site make relocation an economic necessity. These are things to consider before filing a petition for relocation. As a property owner, determining the best way to address a cemetery on your land can involve numerous parties and high costs, but it can be

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REQUIRED HOME SALE DISCLOSURES

1. Death in the Home 2. Neighborhood Nuisances 3. Hazards 4. HOA Information 5. Repairs 6. Water Damage 7. Missing Items 8. Other Possible Disclosures 1. Death in the Home Some buyers may have concerns or superstitions about purchasing a home in which someone has died, so it’s important to know if your state requires sellers to disclose a previous death in the home. “A seller is required to disclose deaths related to the condition of the property or violent crimes,” he says. For example, if a previous occupant’s child drowned in the swimming pool because it didn’t have the proper safety fence, the seller would need to disclose the death even after remedying the safety issue by installing a proper pool enclosure. There are, however, circumstances where sellers do not have to disclose a death on the property. “There are no states in which there is an obligation to disclose the death of a person who has deceased under natural conditions,” says attorney Matthew Reischer, CEO of LegalAdvice.com. “However, some states impose a duty on a stigmatized home or apartment in which there has been a suicide or murder. Some states even go so far as to impose an affirmative duty on a seller if they have knowledge that their real estate is being haunted by the dead.” Even when disclosure isn’t required – for example, Georgia does not require the disclosure of homicide or suicide – you may want to err on the side of giving the buyer notice of a death on the property. “If a seller is concerned about liability, the best advice is to go ahead and disclose everything upfront even if it is not required by law,” Olenbush says. “Buyers will always hear about things from the neighbors, and the surprise could cause them to back out of a purchase contract or wonder what else the seller is not telling them.” 2. Neighborhood Nuisance A nuisance is a noise or odor from a source outside the property that could irritate the property’s occupants. North Carolina requires sellers to disclose noises, odors, smoke or other nuisances from commercial, industrial or military sources that affect the property. Michigan requires sellers to disclose farms, farm operations, landfills, airports, shooting ranges and other nuisances in the vicinity, but Pennsylvania leaves it up to the buyer to determine the presence of agricultural nuisances. 3. Hazards If the home is at an increased risk of damage from a natural disaster or has known or potential environmental contamination, you may be required to disclose this information to the buyer. Texas law requires sellers to disclose the presence of hazardous or toxic waste, asbestos, urea-formaldehyde insulation, radon gas, lead-based paint and previous use of the premises for the manufacture of methamphetamine. New York’s Property Condition Disclosure Act requires sellers to notify buyers about whether the property is located in a flood plain, wetland or agricultural district; whether it has ever been a landfill site; if there have ever been fuel-storage tanks above or below ground on the property; if and where the structure contains asbestos; if there is lead plumbing; whether the home has been tested for radon; and whether any fuel, oil, hazardous or toxic substance has been spilled or leaked on the property. States may also require disclosure of mine subsidence, underground pits, settlement, sliding, upheaval or other earth-stability defects. California’s Natural Hazards Disclosure Act requires sellers to disclose whether the property is in a seismic hazard zone and could, therefore, be subject to liquefaction or landslides after an earthquake. While most disclosure requirements are governed by the states, the federal government mandates one: the disclosure that lead-based paint may be present on any property constructed before 1978. 4. Homeowners' Association Information If the home is governed by a homeowners' association (HOA) you should disclose that fact. You also need to know about the HOA’s financial health and provide this information to the buyer so that he or she can make an informed purchasing decision. “A buyer I know purchased a condominium, [and] the seller mistakenly forgot to give the buyer the last 12 months of meeting notes,” says Ed Kaminsky, president and CEO of SportStar relocation in Manhattan Beach, Calif. “Seven months later the buyer was assessed $30,000 for property improvements. The seller was subsequently sued by the buyer for not disclosing these important notes.” 5. Repairs What have you repaired and why? Buyers need to know the home’s repair history so they can have their home inspector pay extra attention to problem areas and be aware of probable future issues. Texas law, for example, requires sellers to disclose previous structural or roof repairs; landfill, settling, soil movement or fault lines; and defects or malfunctions in walls, the roof, fences, the foundation, floors, sidewalks and any other current or previous problems affecting the home’s structural integrity. You may also need to disclose electrical or plumbing repairs and any other problems you would want to know about if you were going to buy the home and live in it. 6. Water Damage When water gets in where it shouldn’t, it can damage personal possessions, undermine the home’s structure and even create a health hazard if it encourages mold growth. Sellers should disclose past or present leaks or water damage. Michigan, for example, requires sellers to disclose evidence of water in a basement or crawl space, roof leaks, major damage from floods, the type of plumbing system (e.g., galvanized, copper, other) and any known plumbing problems. It can be difficult to know about water problems (and many other types of problems) if you’re flipping the home and only own it for a month or two. “There are many risks for flippers or others involved in a house closing where some work is needed on the property that wasn't obvious on walk-through, particularly in winter or during a dry spell,” says Bill Price, an Illinois business lawyer. “With winter, a roof that leaks or has very old shingles may not be able to be inspected by the buyer or their home inspector. Similarly, a dry spell can conceal problems with a leaking basement.” In situations such as these, check to see how much protection your state’s laws offer from disclosing information you would have had no way of knowing. 7. Missing Items Sometimes homebuyers have so much on their minds that they might not notice that a home is missing an essential component until after they move in. Some states’ disclosure laws attempt to prevent this problem. Texas and Michigan, for example, require sellers to disclose whether the property comes with a long list of items, including kitchen appliances, central air conditioning and heating, rain gutters, exhaust fans and water heaters. 8. Other Possible Disclosures Buyers need to know if the home is in a special historic district because it will affect their ability to make repairs and alterations, and it might also increase the cost of those activities. All States require sellers to disclose known active termites or other wood-destroying insects, termite or wood-rot damage in need of repair, previous termite damage and previous termite treatment. Michigan and North Carolina law also requires sellers to disclose any history of infestation. Consult your state’s laws to see if you must disclose information about any pests. You may also be required to disclose problems with drainage or grading, zoning, pending litigation, changes made without permits, boundary disputes and easement. How to Disclose Some states, such as Michigan and North Carolina, require sellers to use a specific disclosure form. If not, your state department or commission of real estate or state realtor’s association will usually have a recommended form you can use. The form may be more or less comprehensive than what state law requires. If the form isn’t comprehensive enough for your situation, supplement it with a list of the additional items you wish to disclose. The seller should make all disclosures to the buyer in writing, and both the buyer and seller should sign and date the document. Be sure you review what you need to disclose, and how it should be worded, with a real-estate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

9 COMMON NOTARY MISTAKES

1- Failing to Require Personal Appearance Personal appearance is the very foundation of notarization. Except in the few states where online or remote notarization has been legalized, personal appearance is still a requirement. This requires that the signer be physically present before the notary. Notarizing without the personal appearance of the signer is a civil infraction in most states and is even considered a felony in some states. Personal appearance allows the notary to inspect the signer’s identification, administer the oath or take the acknowledgment, and obtain the signer’s signature in the notary’s journal. 2- Failing to Properly Identify the Signer Checking identification is a basic part of a notarization. However, it is also one of the most important. Merely looking at the identification isn't enough. The information contained on the identification should match the person appearing before you. Be sure to compare facial features such as eye color and nose or chin shape, which are unlikely to change, rather than hair length or color. You should also check that the signature on the identification is reasonably similar to the signature on the document. Where allowed by law, notate the specific type of identification inspected in your notary journal. 3- Not Knowing the Difference Between an Acknowledgment and Oath Oaths and acknowledgments are the basic type of notarial acts permitted in all states, but many notaries aren’t sure what the difference is. An acknowledgment is a document signer’s way of acknowledging that he or she signed the document voluntarily. This can be accomplished by watching the signer sign in front of you, or by asking the signer to declare that they executed the document voluntarily. In taking an acknowledgment, it is not necessary that the signer actually sign in your presence. The document could have been signed days or even years prior. However, the signer must still personally appear and acknowledge his or her signature before you. An oath, on the other hand, requires that the signer verbally swear or affirm that the contents of the document are true. When notarizing an oath, the certificate used is called a “jurat,” and the notary must witness the signer sign the document after the oath is administered. 4- Failing to Perform the Verbal Ceremony Many notaries simply sign and stamp notarial certificates without performing the all-important verbal ceremony. However, without the verbal ceremony, the certificate is false. The certificate is the notary's way of certifying that the act described therein has been performed. This is especially important when it comes to administering an oath. Any document with a jurat (the words "sworn to and subscribed") must be accompanied by a verbal oath. Simply instruct the signer to raise his or her right band, and ask, "Do you solemnly swear (or affirm) that the statements contained in this document are true?" The signer should then answer in the affirmative. For an acknowledgment, you may want to ask, "Do you acknowledge that you have executed this document voluntarily?" 5- Using a Non-Compliant or Non-Sensical Notarial Certificate When completing a notarial certificate, many notaries simply look for the "blanks" and fill them in. Always read the certificate in your head to make sure that it makes sense. Also be sure to examine the certificate closely to make sure it complies with your state's laws. If a certificate doesn't make sense when read, or if it doesn't meet the requirements of your state's laws, you should correct the certificate or cross through it and attach a loose certificate, PRIOR to completing the notarization. If the certificate is a jurat, be sure to administer a verbal oath. 6- Failing to Use an Official Name and/or Signature Notaries who perform a lot of notarizations can get tired of signing. However, in most states, when a notary is signing a certificate in his or her capacity as a notary public, the signature must match the official signature on file with the office that appointed the notary. If you signed your oath of office as "John Q. Public," it would be inappropriate to start notarizing as "J. Q. Public." Signing with an un-official signature can invalidate the notarization. Even in states that don’t have specific signature requirements, a notary must use the name in which he was commissioned on his official seal. 7- Affixing a Notarial Seal Incorrectly The seal is the notary’s universal symbol of authority. It authenticates the notary’s act, and almost every state requires one. It is important to ensure that rubber stamp seals are affixed in a blank space and do not cover any text. The seal is considered to be a statement of the notary’s authority and must legibly contain the elements required by state law, which most often includes the notary’s commissioned name and the date on which the notary’s commission expires. For notaries who use embossers, the embosser should be placed in a blank space unless state law requires or allows its placement on top of the notary’s signature. For documents that have the word “SEAL” or “L.S.” preprinted, your seal should be affixed near, but not over, these words. 8- Failure to Keep Records Even where not required by law, diligent notaries should keep a continuous, sequential journal of their notarial acts. The journal is the notary's only record of the notarization. A journal should include, at a minimum, the date and time of the notarization, a description of the document or proceeding, the name, address, signature, and type of identification produced by the signer, and a notation as to any notarial fees collected. Journals may be purchased from the American Association of Notaries. 9- Conflicts of Interest A notary can never notarize a document in which he or she might have a financial or other interest. For example, a notary cannot notarize a will in which he or she is named as a beneficiary. Even in states where notaries can lawfully notarize the signatures of their relatives, this practice is not recommended. A notary cannot notarize a document in which he or she is named and certainly cannot notarize his or her own

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

12 TIPS FOR A HAPPY LIFE

1. Know yourself Something that's clearer to me every day is that there's no magic, one-size-fits-all solution for building a happy, healthy, and productive life. You have to know yourself: your temperament, your interests, your values. For instance... are you an Upholder, Questioner, Obliger, or Rebel?, are you a Lark or Owl?, are you a Marathoner or Sprinter?, are you a Simplicity-lover or Abundance-lover?, are you a Finisher or Opener?, are you an Abstainer or Moderator?, are you an Under-buyer or Over-buyer? The better we know ourselves, the more readily we can construct a life that will work for us. 2. Beware of drift. "Drift" is the decision we make by not deciding, or by making a decision that unleashes consequences for which we don’t take responsibility. You go to medical school because both your parents are doctors. You get married because all your friends are getting married. You take a job because someone offers you that job. You want the respect of the people around you, or you want to avoid a fight or a bout of insecurity, or you don't know what else to do, so you take the path of least resistance. The word “drift” has overtones of laziness or ease. Not true! Drift is often disguised by a huge amount of effort and perseverance. 3. Don't let the perfect be the enemy of the good. I cribbed this from Voltaire, and I remind myself of it often. I can't let the perfect, fantasy Gretchen crowd out the actual, real Gretchen. I remind myself that the 20-minute walk I take is better than the 3-mile run I never start; having friends over for take-out is better than never having people to an elegant dinner party. 4. Write (and re-write) your own set of personal commandments. One of the most challenging—and most helpful and fun—tasks that I did as part of my Happiness Project was to write Twelve Personal Commandments. These aren’t specific resolutions, like "make my bed," but the overarching principles by which I try to live my life. I think this is a great exercise -- to distill your core values and hopes for yourself into a succinct list, so that they're very clearly in your mind. And then you can re-visit them periodically, so you can update them as you grow older and your life changes. As an example, here are my Twelve Personal Commandments: 1. Be Gretchen., Let it go., Act the way I want to feel., Do it now., Be polite and be fair, Enjoy the process., Spend out., Identify the problem, Lighten up, Do what ought to be done, No calculation., There is only love 5. Identify the problem. This idea seems so obvious, but it has been the one of my most important insights. Now I’ve disciplined myself to ask, “What’s bugging me? Why is something not working? What’s the problem here?” A friend hated her law job so much that she was ready to quit. But when she "identified the problem," she realized she actually hated her commute. She started listening to audio-books, and her life improved dramatically. Usually there isn't such an easy, dramatic solution, but nevertheless, it astonishes me how often it works. I could never get myself to hang up my coat, and when I "identified the problem," I realized that I didn't like putting things on hangers. I added six hooks to our closet door -- and problem solved. 6. Take care of your body: exercise regularly, get enough sleep. I've done hundreds of happiness and habit interviews from successful, creative people. Almost all of them mention the importance of a regular exercise routine -- and also that they wish they had started this habit sooner. They also frequently mention the importance of getting enough sleep. Our physical experience always colors our emotional and intellectual experience. If we're feeling exhausted or sluggish, it's hard to be happy and productive. Get enough sleep, and get some exercise, and you'll find it much easier to be happier, healthier, more productive, and more creative. 7. Don't expect to be motivated by motivation. I really dislike the word “motivation.” I try never to use it. And here’s why: People use the term to describe their desire for a particular outcome (“I’m really motivated to lose weight”) as well as their reasons for actually acting in a certain way (“I go to the gym because I’m motivated to exercise”). Desire and action are mixed up in a very confusing way. People often tell me, "Yes, I'm very motivated to achieve this aim," but when I press, it turns out that while they passionately wish they could achieve an outcome, they aren’t doing anything about it. So, what does it mean when they say they’re “motivated?” No idea. In fact, people aren’t motivated by motivation. Expert advice often focuses on motivation, by telling people that they just need more motivation to follow through. This may work in a certain way, for certain people (see below), but not for everyone. The bad result of this advice is that some people spend a lot of time whipping themselves into a frenzy of thinking how much they want a certain outcome, as if desire will drive behavior. And it rarely does. Instead of thinking about motivation, I argue that we should think about aims, and then take concrete, practical, realistic steps to take us closer to our aims. Instead of thinking, “I want to lose weight so badly,” think instead about the concrete steps to take, “I’ll bring lunch from home,” “I won’t use the vending machine,” “I won’t eat fast food,” “I’ll quit sugar,” “I’ll cook dinner at home at least four nights a week,” “I’ll go to the farmer’s market on Saturdays, to load up on great produce. 8. Give time and energy to keeping relationships strong. Ancient philosophers and modern scientists agree: the most essential key to happiness is strong relationships with other people. We need enduring, intimate bonds; we need to feel like we belong; we need to be able to confide; we need to be able to get and give support. Anything that tends to deepen or broaden relationships is likely to boost happiness. Things like: attending reunions going to weddings remembering birthdays keeping up a group chat with your friends who are spread across the world starting a book club making friends with the friends of your friends (this is called "triadic closure") having a standing yearly date to get together -- for a few years out of college, my friends all got together for an Ides of March weekend. Somehow, we stopped, and I've always regretted that. Along those lines... if someone's important to you, make concrete plans to see them; remember, something that can happen at any time often happens at no time. 9. Ask yourself, "Whom do I envy?" Envy is a very unpleasant emotion, and we often don't even want to admit to ourselves that we're feeling envious. But negative emotions play a very important role in a happy life, because they warn us that something needs to change. When we envy someone, it's a sign that that person has something that we wish we had for ourselves. And that's useful to know. 10. Remember, everyone makes mistakes. Everyone makes mistakes; it's inevitable. And if you're not failing sometimes, you're not trying hard enough. 11. Know your "tell." In gambling, a tell is a change in behavior that reveals your inner state. Gamblers look for tells as clues about whether other players are holding good or bad hands. And it's common for people to have a "tell" in everyday life, too. Self-knowledge is one of the greatest challenges for happiness and good habits. Why is it hard to know that I’m feeling anxious — don’t I feel it? Why is it so hard to know myself? It seems like nothing should be easier and more obvious than to know ourselves – but it’s not. Recognizing and watching for your "tell" can help you manage yourself better. 12. Collect your own Secrets of Adulthood. For years, I’ve been collecting my “Secrets of Adulthood,” which are the scraps of wisdom I’ve managed to grasp as I’ve become an adult. It's fun -- and helpful -- to keep track of these. Outer order contributes to inner calm. Working is one of the most dangerous forms of procrastination. Over-the-counter medication is surprisingly effective. Self-regard isn't selfish. Most decisions don't require extensive research. Things often get harder before they get easier. It's easier to keep up than catch up. Soap and water remove most stains. We can't make others change, but when we change, a relationship changes. Don't let yourself fall into "empty": eat when you're hungry, put gas in the car, keep some cash on hand.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS REQUIRED TO BE DISCLOSED WHEN SELLING A HOUSE?

What Are You Required to Disclose When You Sell Your Home? When you set out to sell a house, most states require you to make certain “disclosures.” Disclosures refer to any “material defects” in the home, and in many states you will be held liable if you don’t tell the buyer about them upfront. To avoid getting in legal trouble, it’s imperative that you know what you should and need not disclose when you fill out your own disclosure statement. We’ve done all of the legwork for you and pulled sample disclosure docs for every single state. In this article, you’ll be able to read up on the disclosures in your state and take a look at a sample disclosure form in order to prepare yourself to fill out the real one. What is a seller’s disclosure statement or seller’s disclosure form? In a nutshell, the basis of most state disclosure documents is the same. You’ll be asked a series of questions about the condition of your property and if anything is broken, damaged, or does not work. This includes things like the foundation of the house, skylights, the plumbing, pool, HVAC, etc. Some states require you to disclose problems with the land; others just with the structure of the home itself. Other states have additional disclosures that you need to note. For example, in Washington, you must disclose if you live near a farm. In some states, like California, your real estate agent is not legally allowed to help you fill out the form, so you’ll need to complete it on your own. Chris Murray, a top-selling real estate agent in Hemet, California, explains how filling out his state’s disclosure form, called the “Transfer Disclosure,” works during a home sale. “So we hand [the form to the seller], they can fill it out, and then that is what we provide to the buyer to relay any of the seller’s known issues with the home. The key is, it’s known issues. They’re not going to dig into investigating anything. It’s as simple ‘Are you aware of …?’ and they say ‘yes’ or ‘no.’ If they’re not aware of it, that’s the end of it. They don’t have to investigate to get a clear answer.” If you do need help filling out a disclosure document in a state where you cannot ask your agent for help, you will need to consult a real estate lawyer. Why do disclosure documents matter when you sell your home? Imagine that you’re adopting a puppy from an animal shelter who is very afraid of cars. You adopt the pup, attach his leash to his collar, and set out to put him in your car to bring him to his cozy new home. All of a sudden he starts crying and jumps into your arms and you have no idea why. You bring him back into the shelter to ask what’s going on, and they finally disclose to you that he has a fear of cars. If the shelter had disclosed the pup’s fear of cars, you may have acted differently. You may not have adopted the pup knowing that your life revolves around driving your car to and from work, to get the kids, to run errands, or on long road trips for months at a time. Or, you would have adopted the dog knowing full well that you’d need to walk him home the first time, and that you would need to work with him to help him conquer his fear once and for all. It’s similar to a house. If you know your house has a large crack in the foundation, the roof leaks when it rains, or has any other issue, you need to disclose it to the buyer before they purchase it. If the buyer knows full well what they’re getting into with your house, it lightens your legal liability. Then, the buyer can decide if they’re willing to deal with any issues in your house or if they want to walk away completely. What do I have to disclose when I sell my house? Every state’s disclosure laws are different, even though the core of most disclosure statements are similar. That’s why you need to take an in-depth look at the disclosure document for your state. If you want to dive into the legal code for your state, you can also check out the disclosure laws for all 50 states. Some states do not have a standard disclosure document but instead, employ the “Caveat Emptor” or “Buyer Beware” rule. This rule states that it is the buyer’s responsibility to figure out if there are any issues with the home. The Caveat Emptor rule does not apply if the seller lies about anything that is important that has happened in the home or any important defects within the home. Find your state to read sample disclosure documents and to find out more on what exactly you need to disclose to the buyer when you sell your house. Alabama: “Caveat Emptor” Rule, unless the seller or real estate agent knows about something that would impact the “Health or Safety” of the buyer. Alaska: Residential Real Property Transfer Disclosure Statement Arizona: Residential Seller Disclosure Statement Arkansas: Is a Caveat Emptor state, and the real estate agent must “exert reasonable effort” to find any issues with the house. California: Transfer Disclosure Statement; real estate agents cannot help Colorado: Seller’s Property Disclosure (Residential) Connecticut: Residential Property Condition Disclosure Report Delaware: Seller’s Disclosure Of Real Property Condition Report Florida: Florida Realtors Seller’s Property Disclosure – Residential form (SPDR) Georgia: The seller should disclose known problems with the home. Hawaii: Hawaii Seller’s Disclosure Statement Idaho: Property Condition Disclosure Form Illinois: Residential Real Property Disclosure Report Indiana: Seller’s Residential Real Estate Sales Disclosure Iowa: Seller Property Condition Disclosure (covers asbestos and lead paint too) Kansas: Seller’s Disclosure And Condition of Property Addendum (Residential) Kentucky: Seller’s Disclosure Of Property Condition Louisiana: Louisiana Residential Property Disclosure Maine: Seller’s Property Disclosure Maryland: Maryland Residential Property Disclosure And Disclaimer Statement Massachusetts: Property Transfer Lead Paint Notification Michigan: Seller’s Disclosure Statement Minnesota: Seller’s Disclosure Statement Mississippi: Property Condition Disclosure Statement Missouri: Seller’s Disclosure Statement for Residential Property Sellers also needs to disclose if methamphetamines were ever made in the house and if a child welfare was ever endangered. Montana: Owner’s Property Disclosure Statement Nebraska: Nebraska Real Estate Commission Seller Property Condition Disclosure Statement Residential Real Property Nevada: Seller’s Real Property Disclosure Form New Hampshire: Property Disclosure – Residential Only New Jersey: Standard Form Of Seller’s Property Condition Disclosure Statement New Mexico: New Mexico’s disclosures care most about taxes and ask that the seller disclose known material defects. New York: Property Condition Disclosure Statement North Carolina: Residential Property And Owners’ Association Disclosure Statement; Sellers can select “no representation” for certain answers, which is a completely neutral response. North Dakota: Caveat Emptor State Ohio: Residential Property Disclosure Form Oklahoma: Residential Property Condition Disclosure Statement Oregon: Seller’s Property Disclosure Statement Pennsylvania: Seller’s Property Disclosure Statement Rhode Island: R.I. Real Estate Sales Disclosure Form South Carolina: State Of South Carolina Residential Property Condition Disclosure Statement South Dakota: Seller’s Property Condition Disclosure Statement Tennessee: Tennessee Residential Property Condition Disclosure Texas: Seller’s Disclosure Notice Utah: Seller’s Property Condition Disclosure Vermont: real estate agent to disclose “material facts” Virginia: known mining ops; Residential Property Disclosure Statement Washington: Disclose if you’re close to a farm; Seller’s Disclosures West Virginia: Caveat Emptor state; real estate agents are under the obligation to be honest with buyers. Wisconsin: Disclosures By Owners of Real Estate Wyoming: Caveat Emptor state; Real estate agents should be honest with

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

DUE ON SALE CLAUSE

Almost every single loan generated to buy a home contains a due on sale clause. This clause is important if a homeowner wants to sell the home without paying off the loan. A due on sale clause allows the existing lender to call the entire loan due and payable if the homeowner transfers title to the home without paying the loan in full. Lender Rights A due on sale clause basically prevents a homeowner from selling subject to an existing loan. It doesn't mean that people don't try to do it but it does mean the new homeowner might lose the home if the existing lender forecloses. Lenders have specific rights, and trust deeds and mortgages are written by lawyers in favor of the lenders. A due on sale clause is one of those rights inherent in the paperwork. You might have to read through 10 pages to find it, but the due on sale clause, also known as an acceleration clause, will be contained in almost all loans made after 1988. Sample verbiage found in a mortgage for a one- to a four-family dwelling is below: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. The reason you care about a due on sale clause is because you don't want the lender to suddenly demand a payoff, which the lender has the right to do. However, in the real world, lenders are not often calling loans due and payable simply because the title to the property was transferred. Especially during the market collapse between the years of 2006 and 2011 because lenders at that point were simply thrilled to be paid at all. The lenders didn't exactly care who paid them as long the mortgage was not delinquent. Fast forward to today, and lenders still have the right to accelerate the loan if they feel their security could potentially be damaged. After all, they made the loan to a borrower after fully vetting the buyer and running the file through underwriting and who is this new person they don't know making the payments. The question is will they? Generally, a due on sale clause is enforced if the lender feels its security is at risk or if the lender believes it can make more money in a climate of rising interest rates. For example, if the bank can enforce a payoff of that existing loan, which might be at a lower-than-market interest rate, and then use that money to fund a new loan at a higher rate, it is in the bank's best interest to call that loan immediately due and payable. This could leave borrowers scrambling to refinance. Back in the old days, like the hey-days of the 1970s and 1980s, banks would offer formal loan assumptions to new buyers, but we don't see much of that anymore. If buyers did not qualify, these types of buyers would often try to buy the property without informing the lender, either wrapping the existing financing into an All-inclusive Trust Deed or a Wrap-Around Land Contract. Some used lease option sales as a financing instrument to try to sidestep the due on sale

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A STEP UP TAX BASIS?

What is a Step-Up in Basis? A step-up in basis is the readjustment of the value of an appreciated asset for tax purposes upon inheritance. The higher market value of the asset at the time of inheritance is considered for tax purposes. When an asset is passed on to a beneficiary, its value is typically more than what it was when the original owner acquired it. The asset receives a step-up in basis so that the beneficiary's capital gains tax is minimized. Step-Up In Basis Understanding Step-Up in Basis A step-up in basis reflects the changed value of an inherited asset. For example, an investor purchasing shares at $2 and leaving them to an heir when the shares are $15 means the shares receive a step-up in basis, making the cost basis for the shares the current market price of $15. Any capital gains tax paid in the future will be based on the $15 cost basis, not on the original purchase price of $2. The step-up in basis rule changes tax liability for inherited assets in comparison to other assets. For example, Sarah bought a loft in 2000 for $300,000. When Paul inherited the loft after Sarah's death, the loft was worth $500,000. When Paul sold the loft, his tax basis was $500,000. He paid taxes on the difference between the selling price and his stepped-up basis of $500,000. If Paul's cost basis were $200,000, he would have paid much more in taxes when selling the loft. KEY TAKEAWAYS A step-up in basis readjusts the value of an appreciated asset over a period of time for tax purposes. It is used to calculate tax liabilities for inheritance assets. Step-Up in Basis for Community Property States Residents of community property states, such as Wisconsin, may take advantage of the double step-up in basis rule. For example, Allan and Jo Ann bought a home in 1977 for $350,000. They had a revocable living trust established and deeded the house to the trust. When Allan died in 2006, the house stayed in the trust, and Jo Ann received the step-up in basis for the home's market value of $500,000. When Jo Ann passed away in 2015, the couple's daughter Stephanie inherited the home. The home's market value of $700,000 became her cost basis. Stephanie inherited a home that stepped up in basis twice and avoided paying a large amount of taxes because of the double step-up rule. Step-Up in Basis As A Tax Loophole The step-up in basis tax provision has often been criticized as a tax loophole for the ultra-rich and wealthy. They take advantage of it to eliminate or reduce their tax burden. For example, they can escape capital gains tax on stocks by placing their holdings in a trust fund for their heirs. In a typical case, a millionaire might invest in assets, such as real estate and stocks, that are expected to appreciate and provide them with a consistent rate of return during their lifetime. The investor's heirs will enjoy the benefits of the investment after their death because they will be taxed on the stepped-up cost basis, instead of the original cost, thereby allowing them to evade taxes worth millions of dollars. The case of the Walton family, which owns Walmart and is supposed to have put a majority of its holdings into estates to avoid taxes, is well-known. Over the years, economists have proposed eliminating step-up in basis and have suggested that it could be replaced with lower capital gains taxes. Proponents of the provision argue that it is not difficult to calculate the exact value of assets that may be from several decades or, in some cases, even a century ago. Example of a Step-Up in Basis A person inheriting mutual funds receives a step-up in basis for the funds' value. The price of the shares on the day the owner dies becomes the heir's cost basis. The heir provides the mutual fund company proof of identity along with a death certificate, probate court order or other documentation. The company either transfers the shares to an account in the heir's name or sells the shares and sends the proceeds to the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

ASSIGNMENT OF CONTRACT

Assignment of contracts is the legal transfer of the obligations and benefits of a contract from one party, called the assignor, to another, called the assignee.3 What assignment of a Contract? Assignment of contract is the legal transfer of the obligations and benefits of a contract from one party, called the assignor, to another, called the assignee. The assignor must properly notify the assignee so that he or she can take over the contractual rights and obligations. This can be done using a document called an assignment agreement, which allows you to protect your legal rights while transferring the contract. An assignment agreement is appropriate for your needs if the following are true: You want to transfer your contractual rights, responsibilities, and obligations to another individual or company. You or your business are taking over a contract from another person or business. The assignment agreement includes the names of the assignor and assignee, the name of the other party to the contract in question (known as the obligor), the contract's title and expiration date, whether the obligor needs to consent to the transfer of the rights based on the original terms of the contract, when the obligor consented, when the assignment agreement takes effect, and what state will govern the transferred contract. The assignment agreement may also be called the contract assignment, assignment contract, or assignment of contract. While assignment contracts are typically only used for amounts of less than $5,000, you can assign a higher profit contract when both the buyer and seller agree. You cannot assign a contract if the original contract prohibits doing so. If you are assigning a contract, you may want to ask the obligor to sign a release or waiver agreement that releases you from contract liability. In addition to transferring rights and obligations, you can also use an assignment agreement to transfer an income stream to an assignee. However, when transferring rights to intellectual or personal property, it's best to instead use a trademark assignment, bill of sale, or assignment of a trade

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

PROPERTY BOUNDARIES

Most of us don't know where our exact property boundaries are located, and many of us don't care. Most of us don't know where our exact property boundaries are located, and many of us don't care. Unless we have the property surveyed, the only way we may be able to go outside and physically touch the limit of what is ours is when permanent markers are described in a deed, such as a tree or stone monument. And even when a permanent marker can be located, the boundary may not run in a straight line. If you or your neighbor want to fence the property or build a structure close to the line, you need to know where the boundary line actually runs. If you can't figure it out from the property descriptions in your deed or subdivision map, or you and the neighbor think it is in different places, you have several choices. Setting the Boundary With a Quitclaim Deed To establish a clear boundary, adjoining property owners can decide where they want it to be and then make it so by signing deeds that describe the boundary agreed on. If you have a mortgage on the property, consult a local attorney for help in drawing up the deeds. Whoever holds the mortgage may need to be notified and permission obtained before you transfer even a tiny piece of the land. Some mortgage companies will not be concerned or want to be involved. But others put a clause in the mortgage that allows the company to demand full and immediate payment of the entire loan if the borrower transfers any interest whatsoever in the property. Even if you have no mortgage, you might want to get an attorney to draw up the property descriptions in the deed, or just to look over your work if you draw up your own using The Deeds Book by Mary Randolph (Nolo Press). It may be worth spending the money for this small service to avoid any possibility of later confusion. What is a Quitclaim Deed? Each neighbor should sign a quitclaim deed, transferring to the other neighbor any right they have to the property that falls on the other side of the line they have agreed on. Once the deeds are recorded (put on file) in the county land records office (usually in the courthouse), there will never again be a question about the boundary. All future buyers will be able to find the deed and know what belongs to whom when they buy the property. Example: Janet and Rod, next-door neighbors, aren't sure where the boundary line is between their properties. Rod wants to enclose his yard with a fence but doesn't want to pay for an expensive survey of the property to find the exact boundary. He and Janet agree that the fence will mark the boundary. Then they each draw up a quitclaim deed. Rod signs a deed giving any rights to the property on the other side of the fence to Janet, and she signs a comparable deed. In the deed Rod signs, he describes and gives up any interest in Janet's property. Janet makes out a deed quitclaiming any interest in Rod's property. Each property is identified exactly as it is in the deed already on record, with the addition of the description of the fence. Then they both put the deeds on file (record them) at the county land records office. Is An Attorney Needed for a Quitclaim Deed? If you have no mortgage on your property, setting a new boundary this way can be a very easy procedure. You can purchase quitclaim forms in some large office supply stores and do it yourself. However, because legal intricacies in property descriptions vary from state to state, it is always wisest to let a local real estate lawyer check the deed. Setting Boundaries by Owner's Agreements When a boundary line cannot be located because deeds or maps are ambiguous, the two adjoining neighbors may simply agree where the boundary line is. Once this agreement is made and certain conditions (discussed below) are met, the line is the permanent legal boundary. It is binding not only on those neighbors but also on later buyers. The agreement does not change the ownership of land. Instead, it interprets ambiguous property descriptions in the deeds. This approach has much to recommend it if both neighbors genuinely agree. It is easy, inexpensive and fixes a certain boundary line. Done properly, it will end confusion for the neighbors and for later buyers. The purpose of this rule, according to one judge, is "to prevent strife and disputes concerning boundaries."(2) This may ring with truth for two neighbors who come to a solution, write it down and record it in the public land records. However, if the agreement isn't written down and recorded, it can wreak havoc when property changes hands or one of the neighbors dies. Requirements For an Agreed Boundary For neighbors to agree on a permanently binding boundary between their properties, four conditions must be met: There must be genuine uncertainty as to where the true boundary line runs on the ground. Both landowners must agree on the new line. The owners must then act as if the new boundary line really is the boundary (lawyers often call this "acting in reliance on the agreement"). The agreed boundary must be identifiable on the ground. Only after all these requirements are satisfied does the boundary the neighbors settled on become the legal line. Some courts can be extremely strict when looking to see if a boundary agreement meets these criteria. If one of the requirements is absent and the line is ever challenged in court, the agreement will be ruled to be void and the boundary line as uncertain as it ever was. We discuss each of these requirements below. Original Uncertainty For an agreed boundary line to become the fixed legal boundary, the two owners must not only agree but agree because they really can't locate the line. This doesn't mean that the neighbors must call in a surveyor to try to find the boundary. It is enough if they cannot reasonably locate the line from their deed descriptions, from a previous survey recorded in the land records or from markers on the ground. Usually, what happens is that someone wants to put up a fence, or maybe both neighbors want to put one up together. When they attempt to find the boundary, they discover that the property descriptions in their deeds conflict or perhaps make no sense at all. Not wanting hard feelings or lawsuits, they simply agree on a line convenient to both of them. Many are the neighbors who have done this and proceeded to live happily side by side for many years. But if someone challenges the boundary line in court — perhaps the next buyer of one of the properties, who are unhappy with or confused by the agreed boundary — and the real boundary line could have easily been found, the general rule is that the owners' agreement doesn't count. A judge may make an exception to this requirement only if the owners had relied for many years on the agreement and great harm would result by not recognizing the agreed line. Example: A recent case from California illustrates the kind of legal microscope a court will often use when determining whether or not the requirement of uncertainty has been met. The new owner of a piece of property assumed that an 80- year-old fence was the boundary and proceeded to make major changes on the land. The next-door neighbor claimed that he was trespassing and sued him. Because the fence was so old, former owners from years before were brought in to testify as to whether or not it had been an agreed boundary. They gave conflicting stories; some had assumed the fence was the boundary, others had not. As it turned out, arguments about whether or not the fence was the agreed boundary made no difference whatsoever, because there were some old boundary markers on the property that could have been found by any of the owners if anyone had searched. In short, there was never real uncertainty. The new owner's mistake and his trespass on his neighbor's land cost him dearly: He was ordered to pay the neighbor $26,000. Agreement by the Owners A neighbors' agreement about an uncertain boundary doesn't have to be in writing to be legal. But obviously, a written agreement avoids confusion and disputes later. Sometimes, if a line has been treated as the boundary by both owners for many years, an initial agreement between them will be inferred by a court that is deciding on the validity of an alleged boundary agreement. A court might make this inference when all of the other conditions of an agreed boundary have been met. If you and your neighbor can't seem to agree on where you think the boundary line should run, you may be able to get some help from a trained mediator. A mediator helps the people iron out difficulties and reach an agreement that is satisfactory to everybody involved. Mediation of disputes between neighbors is often free or very inexpensive. Acting in Reliance On a Boundary Once adjoining landowners agree that a particular line marks an uncertain boundary, for that line to become the legal boundary they must then act as if it is the boundary. They can do this by simply going about their business, treating the line as the partition between their properties for whatever time period is required by state law. The time required ranges from five years to 20 years. If you need to know what your state's required time period is, you must find a state court opinion dealing with an agreed boundary in your state. (See Chapter 13, Legal Research.) If, however, great harm would be caused were the agreed boundary not considered the legal one, the agreed boundary can become the legal one before the required time period has elapsed.(5) Courts will rule this way when one or both of the neighbors does a substantial act relying on the validity of the agreed line, such as building a house close to it. Example: Two people purchase lots in a subdivision. The boundary line between their properties is unclear, both from the subdivision map and their deed descriptions. One wants to fence his lot, and they agree on a boundary. These two fellows are friendly neighbors; one even gives the other the lumber for the fence. A lovely split rail fence is built, along with a comfortable house. Both properties are then sold. The new owner of the fenced house comes home from shopping one day and discovers a crew tearing down his fence. The other owner has had a new survey done which shows the boundary line running squarely through the shopper's bedroom. This actually happened in California, and the owner of the fence sued the other owner. When the lawsuit came before the court, the ruling was: The legal boundary line was the one agreed upon by the previous owners, even though the state had a five-year period for an agreed boundary to become fixed, and five years had not passed since the agreement. The court based its ruling on the fact that the housebuilder had relied on the agreed boundary to build a house. Making him tear the house down, the court decided, would be too severe and unfair. The man who tore down the fence was ordered to pay the neighbor not only the replacement value but also $500 in extra damages for the malicious behavior he showed in ripping down his neighbor's fence. Identifying the Agreed Boundary When two owners settle confusion by agreeing on a boundary line, the line should be physically obvious in some way. Often, a fence or a natural boundary marks the line. It could be a tree, road, creek, driveway, even the edge of a house. If not, something needs to be constructed, or stakes or some other markers put in the ground so that the owners can point to the line. The reason to have a visible line is to alert a new buyer as to where the line is, to prevent trouble in the future. Anyone who purchases property is expected to make a visual inspection of the site. If someone else's driveway is two feet from the house he's buying, he is expected to notice it. This is the time to inquire about it and to call in a surveyor if necessary — not after buying the property and settling in. Putting Boundary Agreements in Writing An informal, unwritten boundary agreement can be a ticking time bomb, ready to go off when the property is sold. To avoid an explosion, if you make an agreement about a land boundary, put it in writing. If you and your neighbor make such a written agreement, use the exact property descriptions that are in your deeds. Be sure that all owners sign the agreement. Have it notarized and make copies to keep with your deeds. Once you have a signed, notarized agreement, take it to the local property records office (often in the county courthouse) and ask the clerk to record it. When you record a document, it becomes part of a public record, so other people can find it. You will have to pay a small fee, probably just a few dollars per page of the document. The clerk may be a little surprised at your request because not a lot of boundary agreements are recorded. In a very few states — Kentucky is one — there is a procedure in the state statutes for setting an agreed boundary, putting the agreement in writing and recording it at the courthouse. If there is no standard procedure in your state, ask if you can put it on file with the land descriptions of both properties. In some states, the clerk may be able to make a note in the margin of your deed that refers to the agreement. At least get it filed under both names on the agreement, so that it will be part of the public record. Calling In a Surveyor If you are willing to spend several hundred dollars or more to find out exactly where your boundary is, call a licensed surveyor. The surveyor will survey the entire property and give you a copy of the survey, showing the boundary lines of your property. He will also place official markers on the boundary lines, which will remain to mark the boundaries. Be aware that you and the neighbor could be in for further conflict when the boundary is found. The line may run several feet away from what you expected — maybe even through one of the houses. When this happens, one neighbor may have to pay the other for property she was occupying by mistake. This can get complicated, especially if the new survey conflicts with one in the past or the descriptions in the deeds, and you may need a lawyer. How Do Surveyors Work? In a new subdivision that still has markers from a city survey, the cost of a survey can run around $500. When streets have been renovated and the surveyor has to bring lines in from far away, the cost goes up accordingly. Be prepared to spend several hundred dollars to over a thousand dollars if you live in an area where no survey has been done for a long time, or the maps are unreliable and conflicting. Sometimes, the surveyor really can't know just what will be involved until the job begins. If you and your neighbor go in together on the cost, having both properties done at the same time by the same surveyor, you should be able to save some money. When the surveyor comes out, do everybody a favor and stay out of the way. Find out what will be needed from you, such as a copy of your deed or any other records, and have everything ready. Then let the professionals do their job. You and the neighbor standing there explaining who built what and what belongs to whom is nothing but a waste of time and money. If you are in the midst of a heated dispute with your neighbor and hire a surveyor on your own, the neighbor will probably have to allow the surveyor onto his property if necessary. It is against state law in many states to interfere with a surveyor or to refuse a right of entry. Always notify the neighbor that the surveyor is coming and what time, if practicable. This is required in California. If the neighbor indicates that there will be trouble, have a lawyer write a letter outlining the law and asking for entry to the property for the survey. If necessary, the lawyer can get a court order to allow the survey. Once you have a survey done, ask if the survey company will record it in the local public land records. If not, take a copy to the courthouse and ask that it be recorded; there will be a small fee. Letting a Court Decide on the Boundary When a boundary line is not clear and the neighbors can't agree, a few states have statutory procedures allowing one neighbor to ask a state court (regular court, not small claims court) to settle the line. This will probably involve a new court-ordered survey and will be expensive. In other states, you can hire a lawyer and file a suit to "quiet title" (decide who owns what). Again, the judge may order a survey done, and the whole thing will take a lot of time and money. Permanent boundary monuments or survey markers are protected by state law. A marker may be a naturally occurring landmark, such as a tree. Or, a surveyor may place iron stakes or small brass caps in the ground to officially mark the property line. In Massachusetts, anyone removing such a marker can be jailed for six months or fined $50 or both. The penalty is stiffer in the District of Columbia, where the fine is up to $1,000 and the prison term can be a full year. The law is similar and very serious in other states. Arkansas imposes a fine of at least $500, jail for at least 30 days, or

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A REVERSE 1031 EXCHANGE?

To understand a reverse 1031 exchange, you should first make sure you know the ins and outs of a 1031 exchange. There are some key differences between a standard 1031 exchange and a reverse 1031 exchange, both of which are designed to defer taxes while investing in real estate. What is a Reverse 1031 Exchange A reverse 1031 exchange is a tax deferment strategy that allows real estate investors to purchase a second investment property before selling their relinquished investment property—and importantly, defer capital gains taxes and other taxes that you would normally need to pay at the sale of a property. Because a reverse 1031 exchange is more complicated than a standard 1031 exchange, it’s important to understand it fully before going forward. In a reverse 1031 exchange, the investor, also referred to as the taxpayer, first purchases a replacement property before selling the relinquished property (as opposed to a standard 1031 exchange where the order of operations is reversed). After purchasing the replacement property, you, the investor, have 45 days to designate up to three properties to sell. You then have 135 days from that point to get under contract and close on the relinquished property. Reverse 1031 exchanges are executed under the IRS’s safe harbor guidance of Revenue Procedure 2000-37, which states that you have a total of 180 days from the purchase of the replacement property to complete the full transaction. That may seem straightforward enough, but there are some additional hoops to jump through. You cannot hold the title of the replacement property yourself upon purchasing. The title must instead be held by an Exchange Accommodation Titleholder (EAT) to hold onto, or park, the title throughout the 1031 exchange process for tax purposes. You must also retain the services of a Qualified Intermediary. When the relinquished property is sold, only then can the Qualified Intermediary transfer the title of the relinquished property to the new buyer and the replacement property to you, the investor. Types of Reverse 1031 Exchanges There are two variations of reverse 1031 exchanges and they both have their benefits and disadvantages. Exchange Last In an exchange last reverse 1031 exchange, the EAT acquires the replacement property and holds/parks it until you sell the relinquished property. This is the most common type of reverse 1031 exchange. It’s preferred because it gives you more flexibility, but it can cause problems with your lender if they are concerned about the EAT holding the replacement property title. It’s important to speak to different lenders to find their stance on this reverse 1031 exchange structure. Exchange First In an exchange first reverse 1031 exchange, you acquire your replacement property first, your lender lends directly to you, and simultaneously you hand the title over to the EAT. While this will work for most lenders, you need to reinvest the total amount of equity in your relinquished property into your replacement property before the former sale closes; having this kind of cash on hand is rare. Benefits of a Reverse 1031 Exchange There’s no arguing that a reverse 1031 exchange is more complicated than a straightforward, standard 1031 exchange. So why would an investor choose to go this route? There are a few reasons. To secure a property. If you’re in a competitive market, you may want to secure the replacement property you have your eye on before someone else grabs it. To make sure you have a replacement property. If you have the means to purchase the replacement property first, that completely eliminates the risk of having to find a replacement property in just 45 days, as is the course of action in a 1031 exchange. To minimize tax liability risk. If you don’t sell the relinquished property within 180 days, then you shouldn’t have any tax liability, say registered investment advisors CWS Capital Partners. However, if you choose to do a standard 1031 exchange and sell the relinquished property but can’t close on a replacement property, then you would have a tax liability. 8 Steps to Perform a Reverse 1031 Exchange A reverse 1031 exchange is complicated, so while this will give you a solid overview of the process, it’s best to speak with your investment advisor and chosen Qualified Intermediary and EAT about the specifics of your situation. Find a replacement property. Make sure that your contract allows you to transfer the title to your chosen EAT, and let the title company know you’re participating in a reverse 1031 exchange. The replacement property must be equal to or greater in value than the relinquished property. Enter into a qualified exchange accommodation agreement. This is a written contract between you and your EAT laying out the terms of them holding title of your replacement property until you sell the relinquished property. The EAT acquires the title. Once you arrange financing, the EAT will acquire the title of the replacement property and park it for you. Designate the relinquished property. Once your EAT acquires the title of your replacement (now parked) property, you have 45 days to identify up to three properties to sell as the relinquished property. Optional: Lease the parked property. The EAT can lease you the parked property that they’re holding onto so you can control the property before the reverse 1031 exchange is completed. Find a buyer. Within 135 days of identifying your relinquished property, you must find a buyer and enter into contract with them for the property and close that sale. Enter into a new agreement with your Qualified Intermediary. This intermediary will transfer the title of the relinquished property to the new buyer and will gain the title to the replacement parked property. Hand over the deed to the relinquished property. The Qualified Intermediary will make sure that you give the deed of the relinquished property to the new buyer who will transfer the funds to the Qualified Intermediary. The Qualified Intermediary will use that money to acquire the parked property from your EAT. The EAT may use some of those funds to cover closing costs or other expenses. Get your deed. Finally, the EAT will hand the deed of the parked, replacement property to you. You’re done! Costs of a Reverse 1031 Exchange There are several costs to be aware of when performing a reverse 1031 exchange. The EAT must report its ownership of the replacement property to the IRS, which will incur transaction costs. These costs include transfer fees, mortgage taxes, recording fees, lender charges, escrow and title fees, and legal fees, among others. Additionally, there will be an accommodation fee you must pay, which will vary based on the provider, the size and complexity of the exchange, and any other issues involved. You can expect to pay around $3,500, but it’s best to speak with a Qualified Intermediary about your specific situation to get an exact number. Risks and Considerations of a Reverse 1031 Exchange While there are certainly benefits to a reverse 1031 exchange, there is, of course, some risk as well. You may need to have liquid assets on hand. If you have liquid assets on hand to purchase the replacement property before selling the relinquished property, then this may not be a worry for you. However, if you don’t, you will need to get a loan for the replacement property. That itself can lead to risk if… The lender doesn’t approve the loan for your replacement property. Some lenders will not participate in an exchange in which an EAT will hold the title. It’s best to find this out before you begin the process. You can’t sell the relinquished property. If your property is in a slow market or there is little interest, you may not be able to enter into contract and close the sale within 135 days from designation. If this is the case, the exchange will fail. If you need to make improvements, you need to start right away. If you already know which property you will designate as the relinquished property and that property needs physical improvements via construction, you need to start right away. There are commonly delays in construction work and if the work goes past the 180th day, the construction manager will apply the percentage complete to your tax deferral. As with any big real estate investing decision, it’s crucial to plan out every step of your reverse 1031 exchange before you start due to the many steps and considerations

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

1031 EXCHANGE

A 1031 Exchange, also called a Starker Exchange or Like-Kind Exchange is a powerful tax-deferment strategy used by some of the most financially successful investors. This is, perhaps, even more true as we head into 2018. Why? Because in many U.S. cities prices real estate has surpassed the “bubble levels” of a decade ago. Because of this, many investors think that today is the optimal time to exchange properties in expensive markets for cash flowing properties across the country. What is a 1031 Exchange? The term 1031 Exchange is defined under section 1031 of the IRS Code. (1) To put it simply, this strategy allows an investor to “defer” paying capital gains taxes on an investment property when it is sold, as long as another “like-kind property” is purchased with the profit gained by the sale of the first property. We’ll discuss like-kind property in more detail in section four. A starker exchange can allow a real estate investor to shift the focus of their investing without incurring the tax liability. For example, perhaps you are investing in properties that are low-income and thus high-maintenance. You could exchange the high-maintenance investment for a low-maintenance investment without needing to pay a significant amount of taxes. Or perhaps you want to move your investments from one location to another without the IRS knocking. 1031 makes this possible. Note: Traditionally, a 1031 exchange is where one property is literally swapped for another property of like-kind. However, the likelihood that the property you want is owned by someone who wants your property is really, really unlikely. According to Forbes, this is why “the vast majority of exchanges are delayed, three party, or “Starker” exchanges (named for the first tax case that allowed them). In a delayed exchange, you need a middleman who holds the cash after you “sell” your property and uses it to “buy” the replacement property for you. This three party exchange is treated as a swap.” When To Do a 1031 Exchange? When you sell an investment property, even if you weren’t the one who initially purchased, you end up on the hook to pay capital gains tax. If you’ve made some bad investments, or you just have bad luck, selling your investment can cost you more than you make. But, if you own a rental property that is worth significantly more today than what you (or the original owner) purchased it for, you can make a killing using this powerful strategy. The big question: how do you actually use this strategy? Continue reading the next section to learn some tips and strategies for success! How to do a 1031 Exchange To use this strategy effectively, you must exchange one property for another property of similar value. In the process, you avoid capital gains, at least for a while. An investor will eventually cash out and pay taxes, but in the meantime, an investor can trade properties without incurring a sudden tax obligation. It’s an important tool for real estate investors that has become a bulls-eye for tax reform evangelists. However, the exchange rules require that both the purchase price and the new loan amount be the same or higher on the replacement property. That means that if an investor were selling a $1 Million property in San Jose that had a $650,000 loan, they would have to buy $1 Million or more of replacement property with $650,000 or more leverage. What Are the 4 Types of Exchanges for Real Estate? There are four main types of like kind exchanges investors can choose from. The most common like-kind exchange types include the simultaneous, delayed, reverse, and construction/ improvement exchange. Simultaneous Exchange A simultaneous exchange occurs when the replacement property and relinquished property close on the same day. As the name suggests, these closings occur in a simultaneous fashion. It is important to note that the exchange must occur simultaneously; any delay, even a short delay caused by wiring money to an escrow company, can result in the disqualification of the exchange and the immediate application of full taxes. There are three basic ways that a simultaneous exchange can occur. Swap or complete a two-party trade, whereby the two parties exchange or “swap” deeds. Three-party exchange where an “accommodating party” is used to facilitate the transaction in a simultaneous fashion for the exchanger. Simultaneous exchange with a qualified intermediary who structures the entire exchange. 4 Types of 1031 Exchange Delayed Exchange The delayed like-kind exchange, which is by far the most common type of exchange chosen by investors today, occurs when the exchangor relinquishes the original property before he acquires the replacement property. In other words, the property the Exchangor owns (which is called the “relinquished” property) is transferred first and the property the Exchangor wishes to exchange it for (the “replacement” property) is acquired second. The Exchangor is responsible for marketing his property, securing a buyer, and executing a sale and purchase agreement before the delayed exchange can be initiated. Once this has occurred, the Exchangor must hire a third-party Exchange Intermediary to initiate the sale of the relinquished property and hold the proceeds from the sale in a binding trust for up to 180 days while the seller acquires a like-kind property. Using this strategy, an investor has a maximum of 45 days to identify the replacement property and 180 days to complete the sale of their property. In addition to the numerous tax benefits, this extended timeframe is one of the reasons that the delayed exchange is so popular. Reverse Exchange A reverse exchange, also known as a forward exchange, occurs when you acquire a replacement property through an exchange accommodation titleholder before you identify the replacement property. In theory, this type of exchange is very simple: you buy first and you pay later. What makes reverse exchanges tricky is that they require all cash. Additionally, many banks won’t offer loans for reverse exchanges. Taxpayers must also decide which of their investment properties are going to be acquired and which will be “parked.” A failure to close on the relinquished property during the established 180 day period that the acquired property is parked will result in a forfeit of the exchange. The reverse exchange follows many of the same rules as the delayed exchange. However, there are a few key differences to note: Taxpayers have 45 days to identify what property is going to be sold as “the relinquished property.” After the initial 45 days, taxpayers have 135 days to complete the sale of the identified property and close out the reverse 1031 exchange with the purchase of the replacement property Construction/Improvement Exchange The construction exchange allows taxpayers to make improvements on the replacement property by using the exchange equity. To put this into layman’s terms, the taxpayer can use their tax-deferred dollars to enhance the replacement property while it is placed in the hands of a qualified intermediary for the remainder of the 180 day period. It is important to note that the taxpayer must also meet three requirements if they want to defer all of the gain (from the sale of the relinquished property) and instead use it as part of the construction or improvement exchange. The entire exchange equity must be spent on completed improvements or as down payment by the 180th day. The taxpayer must receive “substantially the same property” that they identified by the 45th day. The replacement property must be equal or greater in value when it is deeded back to the taxpayer. The improvements must be in place before the taxpayer can take the title back from the qualified intermediary. 1031 exchange rules to know What Real Estate 1031 Exchange Rules Must I Follow? Rule 1: Like-Kind Property To qualify as a 1031 exchange, the property being sold and the property being acquired must be “like-kind.” Like-Kind Property Definition: Like-Kind property is a very broad term which means that both the original and replacement properties must be of “the same nature or character, even if they differ in grade or quality.” (4) In other words, you can’t exchange farming equipment for an apartment building, because they’re not the same asset. In terms of real estate, you can exchange almost any type of property, as long as it’s not personal property. For example: Exchanging an apartment building for a duplex would be allowed. Exchanging a single family rental property for a commercial office building would be allowed Exchanging a rental property or vacation rental for a restaurant space would be allowed. EXCEPTION: It’s important to note that the original and replacement property must be within the U.S. to qualify under section 1031. Rule 2: Investment or Business Property Only A 1031 exchange is only applicable for Investment or business property, not personal property. In other words, you can’t swap one primary residence for another. For example: If you moved from California to Georgia, you could not exchange your primary residence in California for another primary residence in Georgia. If you were to get married, and move into the home of your partner, you could not exchange your current primary residence for a vacation property. If you were to own a single-family rental property in Idaho, you could exchange it for a commercial rental property in Texas. Rule 3: Greater or Equal Value In order to completely avoid paying any taxes upon the sale of your property, the IRS requires the net market value and equity of the property purchased must be the same as, or greater than the property sold. Otherwise, you will not be able to defer 100% of the tax. For example, let’s say you have a property worth $2,000,000, and a mortgage of $500,000. To receive the full benefit of the 1031, the new property (or properties) you purchase need to have a net worth of at least 2 million dollars, and you’ll have to carry over at least a $500,000 mortgage. It’s important to note that the $2,000,000+ value, and $500,000 mortgage, can go towards one apartment building or three different properties with a total value of $2,000,000+. (FYI: Acquisition costs, such as inspections and broker fees also apply toward the total cost of the new property.) Rule 4: Must Not Receive “Boot” A Taxpayer Must Not Receive “Boot” in order for the exchange to be completely tax-free. Any boot received is taxable to the extent of gain realized on the exchange. In other words, you can carry out a partial 1031 exchange, in which the new property is of lesser value, but this will not be 100% tax free. The difference is called “Boot,” which is the amount you will have to pay capital gains taxes on. This option is completely okay, and often used when a seller wants to make some cash, and is willing to pay some taxes to do so. An example of this would be if your original property is sold for $2,000,000 and the property you wish to exchange under section 1031 is worth $1,500,000, you would need to pay the normal capital gains tax on the $500,000 “boot.” Rule 5: Same Tax Payer The tax return, and name appearing on the title of the property being sold, must be the same as the tax return and title holder that buys the new property. However, an exception to this rule occurs in the case of a single member limited liability company (“smllc”), which is considered a pass-through to the member. Therefore, the smllc may sell the original property, and that sole member may purchase the new property in their individual name. For example, the single member of “Sally Jones LLC” is Sally Jones. The LLC can sell the property owned by the LLC, and because Sally Jones is the sole member of the LLC, he can purchase property in his name, and be in compliance with the 1031 code. Rule 6: 45 Day Identification Window The property owner has 45 calendar days, post-closing of the first property, to identify up to three potential properties of like-kind. This can be really difficult because the deals still need to make sense from a cash perspective. This is true especially in today’s market because people tend to overprice their properties when there are low-interest rates, so finding all the properties you need can be a challenge. An exception to this is known as the 200% rule. In this situation, you can identify four or more properties as long as the value of those four combined does not exceed 200% of the value of the property sold. Rule 7: 180 Day Purchase Window It’s necessary that the replacement property be received and the exchange completed no later than 180 days after the sale of the exchanged property OR the due date of the income tax return (with extensions) for the tax year in which the relinquished property was sold, whichever is earlier. Recap As you might realize, there are many rules and qualification requirements that you must comply with in order to perform a successful exchange. To sum things up, the biggest advantage of using this strategy is that you can avoid having to pay capital gains taxes on the sale of an investment property. This can be a huge benefit for real estate investors who know which markets are primed to grow next. It can also be a huge downfall for beginning investors, or those who don’t understand the changing real estate landscape. If you don’t, you risk falling victim to one the biggest disadvantages is the reduced basis for depreciation on the replacement property. This means that if you were to sell your replacement property, even at a deficit, you would still be accountable for the capital gains on the initial property. In other words, if you want to maximize the benefits of your exchange, it’s important that you choose your replacement property (or properties) wisely, investing in a market that has good potential for growth in the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

AGENCY LAW

The law of agency is an area of commercial law dealing with a set of contractual, quasi-contractual and non-contractual fiduciary relationships that involve a person, called the agent, that is authorized to act on behalf of another (called the principal) to create legal relations with a third party. Succinctly, it may be referred to as the equal relationship between a principal and an agent whereby the principal, expressly or implicitly, authorizes the agent to work under his or her control and on his or her behalf. The agent is, thus, required to negotiate on behalf of the principal or bring him or her and third parties into a contractual relationship. This branch of law separates and regulates the relationships between: agents and principals (internal relationship), known as the principal-agent relationship; agents and the third parties with whom they deal on their principals' behalf (external relationship); and principals and the third parties when the agents deal. In India, section 182 of the Contract Act 1872 defines Agent as “a person employed to do any act for another or to represent another in dealings with third persons”. The reciprocal rights and liabilities between a principal and an agent reflect commercial and legal realities. A business owner often relies on an employee or another person to conduct business. In the case of a corporation, since a corporation can only act through Natural person agents. The principal is bound by the contract entered into by the agent, so long as the agent performs within the scope of the agency. A third party may rely in good faith on the representation by a person who identifies himself as an agent for another. It is not always cost-effective to check whether someone who is represented as having the authority to act for another actually has such authority. If it is subsequently found that the alleged agent was acting without necessary authority, the agent will generally be held liable. A brief statement of legal principles There are three broad classes of agent: Universal agents hold broad authority to act on behalf of the principal, e.g. they may hold a power of attorney (also known as a mandate in civil law jurisdictions) or have a professional relationship, say, lawyer and client. General agents hold a more limited authority to conduct a series of transactions over a continuous period of time; and Special agents are authorized to conduct either only a single transaction or a specified series of transactions over a limited period of time. Authority An agent who acts within the scope of authority conferred by his or her principal binds the principal in the obligations he or she creates against third parties. There are essentially three kinds of authority recognized in the law: actual authority (whether express or implied), apparent authority, and ratified authority (explained here). Actual authority Actual authority Actual authority can be of two kinds. Either the principal may have expressly conferred authority on the agent, or authority may be implied. Authority arises by consensual agreement, and whether it exists is a question of fact. An agent, as a general rule, is only entitled to indemnity from the principal if they have acted within the scope of their actual authority, and if they act outside of that authority they may be in breach of contract, and liable to a third party for breach of the implied warranty of authority. Express actual authority Express actual authority means an agent has been expressly told he or she may act on behalf of a principal. Implied actual authority Implied actual authority, also called "usual authority". An agent has by virtue of being reasonably necessary to carry out his express authority. As such, it can be inferred by virtue of a position held by an agent. For example, partners have authority to bind the other partners in the firm, their liability being joint and several, and in a corporation, all executives and senior employees with decision-making authority by virtue of their position have authority to bind the corporation. Other forms of implied actual authority include customary authority. This is where customs of trade imply the agent to have certain powers. In wool buying industries it is customary for traders to purchase in their own names. Also incidental authority, where an agent is supposed to have any authority to complete other tasks which are necessary and incidental to completing the express actual authority. This must be no more than necessary. Apparent authority Apparent authority and Estoppel Apparent authority (also called "ostensible authority") exists where the principal's words or conduct would lead a reasonable person in the third party's position to believe that the agent was authorized to act, even if the principal and the purported agent had never discussed such a relationship. For example, where one person appoints a person to a position which carries with it agency-like powers, those who know of the appointment are entitled to assume that there is apparent authority to do the things ordinarily entrusted to one occupying such a position. If a principal creates the impression that an agent is authorized but there is no actual authority, third parties are protected so long as they have acted reasonably. This is sometimes termed "agency by estoppel" or the "doctrine of holding out", where the principal will be estopped from denying the grant of authority if third parties have changed their positions to their detriment in reliance on the representations made. Rama Corporation Ltd v Proved Tin and General Investments Ltd [1952] 2 QB 147, Slade J, "Ostensible or apparent authority... is merely a form of estoppel, indeed, it has been termed agency by estoppel and you cannot call in aid an estoppel unless you have three ingredients: (i) a representation, (ii) reliance on the representation, and (iii) an alteration of your position resulting from such reliance." Watteau v Fenwick in the UK In the case of Watteau v Fenwick,[6] Lord Coleridge CJ on the Queen's Bench concurred with an opinion by Wills J that a third party could hold personally liable a principal who he did not know about when he sold cigars to an agent that was acting outside of its authority. Wills J held that "the principal is liable for all the acts of the agent which are within the authority usually confided to an agent of that character, notwithstanding limitations, as between the principal and the agent, put upon that authority." This decision is heavily criticized and doubted. Though not entirely overruled in the UK. It is sometimes referred to as "usual authority" (though not in the sense used by Lord Denning MR in Hely-Hutchinson, where it is synonymous with "implied actual authority"). It has been explained as a form of apparent authority, or "inherent agency power". Authority by virtue of a position held to deter fraud and other harms that may befall individuals dealing with agents, there is a concept of Inherent Agency power, which is power derived solely by virtue of the agency relation.[8] For example, partners have apparent authority to bind the other partners in the firm, their liability being joint and several (see below), and in a corporation, all executives and senior employees with decision-making authority by virtue of their declared position have apparent authority to bind the corporation. Even if the agent does act without authority, the principal may ratify the transaction and accept liability on the transactions as negotiated. This may be express or implied from the principal's behavior, e.g. if the agent has purported to act in a number of situations and the principal has knowingly acquiesced, the failure to notify all concerned of the agent's lack of authority is an implied ratification to those transactions and an implied grant of authority for future transactions of a similar nature. Liability Liability of agent to a third party If the agent has actual or apparent authority, the agent will not be liable for acts performed within the scope of such authority, as long as the relationship of the agency and the identity of the principal have been disclosed. When the agency is undisclosed or partially disclosed, however, both the agent and the principal are liable. Where the principal is not bound because the agent has no actual or apparent authority, the purported agent is liable to the third party for breach of the implied warranty of authority. Liability of agent to principal If the agent has acted without actual authority, but the principal is nevertheless bound because the agent had apparent authority, the agent is liable to indemnify the principal for any resulting loss or damage. Liability of principal to agent If the agent has acted within the scope of the actual authority given, the principal must indemnify the agent for payments made during the course of the relationship whether the expenditure was expressly authorized or merely necessary in promoting the principal's business. Duties An agent owes the principal a number of duties. These include: a duty to undertake the task or tasks specified by the terms of the agency; a duty to discharge his duties with care and due diligence; An agent must not accept any new obligations that are inconsistent with the duties owed to the principal. An agent can represent the interests of more than one principal, conflicting or potentially conflicting, only after full disclosure and consent of the principal. An agent must not usurp an opportunity from the principal by taking it for himself or passing it on to a third party. In return, the principal must make full disclosure of all information relevant to the transactions that the agent is authorized to negotiate. Termination The internal agency relationship may be dissolved by agreement. Under sections 201 to 210 of the Indian Contract Act 1872, an agency may come to an end in a variety of ways: Withdrawal by the agent – however, the principal cannot revoke an agency coupled with interest to the prejudice of such interest. An agency is coupled with interest when the agent himself has an interest in the subject-matter of the agency, e.g., where the goods are consigned by an upcountry constituent to a commission agent for sale, with poor to recoup himself from the sale proceeds, the advances made by him to the principal against the security of the goods; in such a case, the principal cannot revoke the agent’s authority till the goods are actually sold and debts satisfied, nor is the agency terminated by death or insanity (illustrations to s. 201); By the agent renouncing the business of agency; By discharge of the contractual agency obligations. Alternatively, agency may be terminated by operation of law: By the death of either party; By the insanity of either party; By the bankruptcy (insolvency) of either party; The principal also cannot revoke the agent’s authority after it has been partly exercised, so as to bind the principal (s. 204), though he can always do so before such authority has been so exercised. Further, under s. 205, if the agency is for a fixed period, the principal cannot terminate the agency before the time expired, except for sufficient cause. If he does, he is liable to compensate the agent for the loss caused to him thereby. The same rules apply where the agent, renounces an agency for a fixed period. Notice in this connection that want of skill, continuous disobedience of lawful orders, and rude or insulting behavior has been held to be sufficient cause for dismissal of an agent. Further, reasonable notice has to be given by one party to the other; otherwise, damage resulting from want of such notice will have to be paid. The revocation or renunciation of an agency may be made expressly or implicitly by conduct. The termination does not take effect as regards the agent, till it becomes known to him and as regards third party, till the termination is known to them. When an agent’s authority is terminated, it operates as a termination of a subagent. Partnerships and Companies This has become a more difficult area as states are not consistent on the nature of a partnership. Some states opt for the partnership as no more than an aggregate of the natural persons who have joined the firm. Others treat the partnership as a business entity and, like a corporation, vest the partnership with a separate legal personality. Hence, for example, in English law, a partner is the agent of the other partners whereas, in Scots law where there is a separate personality, a partner is the agent of the partnership. This form of agency is inherent in the status of a partner and does not arise out of a contract of agency with a principal. The English Partnership Act 1890 provides that a partner who acts within the scope of his actual authority (express or implied) will bind the partnership when he does anything in the ordinary course of carrying on partnership business. Even if that implied authority has been revoked or limited, the partner will have apparent authority unless the third party knows that the authority has been compromised. Hence, if the partnership wishes to limit any partner's authority, it must give express notice of the limitation to the world. However, there would be little substantive difference if English law was amended:[10] partners will bind the partnership rather than their fellow partners individually. For these purposes, the knowledge of the partner acting will be imputed to the other partners or the firm if a separate personality. The other partners or the firm are the principal and third parties are entitled to assume that the principal has been informed of all relevant information. This causes problems when one partner acts fraudulently or negligently and causes loss to clients of the firm. In most states, a distinction is drawn between knowledge of the firm's general business activities and the confidential affairs as they affect one client. Thus, there is no imputation if the partner is acting against the interests of the firm as a fraud. There is more likely to be liability in tort if the partnership benefited by receiving fee income for the work negligently performed, even if only as an aspect of the standard provisions of vicarious liability. Whether the injured party wishes to sue the partnership or the individual partners is usually a matter for the plaintiff since, in most jurisdictions, their liability is joint and several. Agency relationships Agency relationships are common in many professional areas. employment. financial advice (insurance agency, stock brokerage, accountancy) contract negotiation and promotion (business management) such as for publishing, fashion model, music, movies, theatre, show business, and sport. An agent in commercial law (also referred to as a manager) is a person who is authorized to act on behalf of another (called the principal or client) to create a legal relationship with a third party. Agency relationship in a real estate transaction Real estate transactions refer to real estate brokerage and mortgage brokerage. In real estate brokerage, the buyers or sellers are the principals themselves and the broker or his salesperson who represents each principal is his agent. Agency in English law Agency law in the United Kingdom is a component of UK commercial law, and forms a core set of rules necessary for the smooth functioning of business. Agency law is primarily governed by the Common law and to a lesser extent by statutory instruments. In 1986, the European Communities enacted Directive 86/653/EEC on self-employed commercial agents. In the UK, this was implemented into national law in the Commercial Agents Regulations 1993.[11] Thus, agent and principals in a commercial agency relationship are subject both to the Common law and the Commercial Agents Regulations. The Commercial Agents Regulations require agents to act “dutifully and in good faith” in performing their activities (Reg. 3); co-extensively, principals are required principals to act “dutifully and in good faith” in their “relations” with their commercial agents (Reg 4). Though there is no statutory definition of this obligation to act “dutifully and in good faith”, it has been suggested that it requires principals and agents to act "with honesty, openness and regard for the interests of the other party to the transaction". Two "normative precepts"[12] assist in concretizing this standard of conduct: "Firstly, expressing honesty and openness, commercial agents and principals must mutually co-operate in the performance of their agreement. Conduct in good faith requires that each party proactively take action to assist the other in the realization of their bargain, as opposed to mere abstention from obstructive behavior. However, whether a party has acted in good faith must not be determined by reference to a moral or metaphysical notion of co-operation; this assessment must be based on an objective appraisal of the actual commercial agency relationship. Accordingly, the intensity of the required co-operation will vary, depending on the terms of the contract and the pertinent commercial practices. Secondly, commercial agents and principals must not exploit asymmetries in their agency relationship in such a manner that frustrates the legitimate expectations of the other party. In this respect, whether conduct is in breach of the Obligation must be appraised holistically, considering all aspects of the relationship; material facts will include the contractual and commercial leverage of each party, their objective intentions as enshrined in the contract, and the business practices of the sector in question. Nevertheless, the starting axiom of this investigation must be that these are commercial relationships in which professionals are expected to be self-reliant and must be free to pursue their self-interest. Critically, this will not be an estimation aimed at achieving ontological fairness, a just bargain or equilibrium between the giving and receiving of commercial agents and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A LIFE ESTATE?

The phrase "life estate" often comes up in discussions of estate and Medicaid planning, but what exactly does it mean? A life estate is a form of joint ownership that allows one person to remain in a house until his or her death, when it passes to the other owner. Life estates can be used to avoid probate and to give a house to children without giving up the ability to live in it. They also can play an important role in Medicaid planning. In a life estate, two or more people each have an ownership interest in a property, but for different periods of time. The person holding the life estate -- the life tenant -- possesses the property during his or her life. The other owner -- the remainderman -- has a current ownership interest but cannot take possession until the death of the life estate holder. The life tenant has full control of the property during his or her lifetime and has the legal responsibility to maintain the property as well as the right to use it, rent it out, and make improvements to it. When the life tenant dies, the house will not go through probate, since at the life tenant's death the ownership will pass automatically to the holders of the remainder interest. Because the property is not included in the life tenant's probate estate, it can avoid Medicaid estate recovery in states that have not expanded the definition of estate recovery to include non-probate assets. Even if the state does place a lien on the property to recoup Medicaid costs, the lien will be for the value of the life estate, not the full value of the property. Although the property will not be included in the probate estate, it will be included in the taxable estate. Depending on the size of the estate and the state's estate tax threshold, the property may be subject to estate taxation. The life tenant cannot sell or mortgage the property without the agreement of the remaindermen. If the property is sold, the proceeds are divided up between the life tenant and the remaindermen. The shares are determined based on the life tenant's age at the time -- the older the life tenant, the smaller his or her share and the larger the share of the remaindermen. Be aware that transferring your property and retaining a life estate can trigger a Medicaid ineligibility period if you apply for Medicaid within five years of the transfer. Purchasing a life estate should not result in a transfer penalty if you buy a life estate in someone else's home, pay an appropriate amount for the property and live in the house for more than a year. For example, an elderly man who can no longer live in his home might sell the home and use the proceeds to buy a home for himself and his son and daughter-in-law, with the father holding a life estate and the younger couple as the remaindermen. Alternatively, the father could purchase a life estate interest in the children's existing home. Assuming the father lives in the home for more than a year and he paid a fair amount for the life estate, the purchase of the life estate should not be a disqualifying transfer for Medicaid. Just be aware that there may be some local variations on how this is applied, so check with your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE BROKERS, AGENTS, AND FORMS OF AGENCY

Generally, real estate brokers/ agents fall into four categories of representation: Seller's Agents, commonly called "listing brokers" or "listing agents," are contracted by owners to assist with marketing property for sale and/or lease. Buyer's Agents are brokers or salespersons who assist buyers by helping them purchase property. Dual Agents help both the buyer and the seller in the same transaction. To protect their license to practice, a real estate broker owes both parties fair and honest dealing and must request that both parties (seller and buyer) sign a dual agency agreement. Special laws/rules often apply to dual agents, especially in negotiating price. In dual agency situations, a conflict of interest is more likely to occur, typically resulting in the loss of advocacy for both parties .Individual state laws vary and interpret dual agency rather differently, with some no longer allowing it. In some states, Dual Agency can be practiced in situations where the same brokerage (but not agent) represent both the buyer and the seller. If one agent from the brokerage has a home listed and another agent from that brokerage has a buyer-brokerage agreement with a buyer who wishes to buy the listed property, dual agency occurs by allowing each agent to be designated as an "intra-company" agent. Only the broker himself is the Dual Agent. Transaction Brokers provide the buyer and seller with a limited form of representation but without any fiduciary obligations. Having no more than a facilitator relationship, transaction brokers assist buyers, sellers, or both during the transaction without representing the interests of either party who may then be regarded as customers. The assistance provided are the legal documents for an agreement between the buyer and seller on how a particular transfer of property will happen. A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S. this commission can generally range between 5-6% of the property's sale price for a full service broker but this percentage varies by state and even region. This commission can be divided up with other participating real estate brokers or agents. Flat-fee brokers and Fee-for-Service brokers can charge significantly less depending on the type of services offered. Licensing In the United States, real estate brokers and salespersons are licensed by each state, not by the federal government. Each state has a real estate “commission” who monitors and licenses real estate brokers and agents. For example, some states only allow for lawyers to create documentation to transfer real property. Where other states allow the licensed real estate agent. There are state laws defining the types of relationships that can exist between clients and real estate licensees, and the lawful duties of real estate licensees to represent clients and members of the public. Rules vary substantially as defined by the law from state to state, for example, on subjects that include what legal language is necessary to transfer real property, agency relationships, inspections, disclosures, continuing education, and other subjects. In most jurisdictions in the United States, a person must have a license meaning they have studied real estate laws before they may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has authority to fine people who are acting as real estate licensee, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. Specific States Representation Laws Some state Real Estate Commissions - notably Florida's after 1992 (and extended in 2003) and Colorado's after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers. As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees: "The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics). The result was that in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008. In the case of both Florid and Colorado, dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist. Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state. In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property. Written agreement It is important to have a clear written legal documentation for an agreement between the broker and the client, for the protection of both of them. If the parties only have an oral agreement, it is more likely for a dispute to arise concerning the agreement to represent clients and for how real property being sold. Legal documentation is required to define whether the broker can enforce the parties' compensation agreement, the duration of the relationship, whether the relationship is "exclusive", and other issues. Enforceability of oral agreements, what kinds of legal agreements are required to be in writing, and other important issues vary from state to state. Real estate education To become licensed, most states require that an applicant take a minimum number of classroom hours to study real estate law before taking the state licensing exam. Such education is often provided by real estate firms or by education companies, either of which is typically licensed to teach such courses within their respective states. The courses are designed to prepare the new licensee primarily for the legal aspects of the practice of transferring real estate and to pass the state licensing exam. Once licensed, the licensee in most states is initially designated a salesperson and must work under a broker's license. Some other states have recently eliminated the salesperson's license and instead, all licensees in those states automatically earn their broker's license. A real estate agent must place their license under a managing broker. Typically there may be multiple licensees holding broker's licenses within a firm but only one broker or the firm itself, is the managing or principal broker and that individual or firm is then legally responsible for all licensees held under their license. The term agent is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers. In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [9] within the transaction and with the parties. See below for a broker/licensee relationship to sellers and their relationship with buyers. In the United States, there are commonly two levels of real estate professionals licensed by the individual states but not by the federal government: The difference between salespersons and brokers Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee. Real estate salesperson (or, in some states, Real estate broker) When a person first becomes licensed to become a real estate agent, they obtain a real estate salesperson's license (some states use the term "broker") from the state in which s/he will practice. To obtain a real estate license, the candidate must take specific coursework (between 40 and 120 hours) and pass a state exam on real estate law and practice. To work, salespersons must be associated with (and act under the authority of) a real estate broker. In Delaware, for example, the licensing course requires the candidate to take 99 classroom hours in order to qualify to sit for the state and national examination. In Ohio, a license candidate must complete 120 hours of classroom education. Each successive year thereafter, the license holder must participate in continuing education in order to remain abreast of state and national changes. Many states also have reciprocal agreements with other states, allowing a licensed individual from a qualified state to take the second state's exam without completing the course requirements or, in some cases, take only a state law exam. Real estate broker (or, in some states, qualifying broker) After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of his/her own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[10] Agency relationships with clients versus non-agency relationships with customers Relationship: Conventionally, the broker provides a conventional full-service, commission-based brokerage relationship under a signed listing agreement with a seller or a "buyer representation" agreement with a buyer, thus creating under common law in most states an agency relationship with fiduciary obligations. The seller or buyer is then a client of the broker. Some states also have statutes that define and control the nature of the representation. Agency relationships in residential real estate transactions involve the legal representation by a real estate broker (on behalf of a real estate company) of the principal, whether that person(s) is a buyer or a seller. The broker and his licensed real estate salespersons (salesmen or brokers) then become the agents of the principal. Non-agency relationship: where no written agreement or fiduciary relationship exists, a real estate broker and his sales staff work with a principal who is known as the broker's customer. When a buyer who has not entered into a Buyer Agency agreement with the broker buys a property, that broker functions as the sub-agent of the seller's broker. When a seller chooses to work with a transaction broker, there is no agency relationship created. Designated agency The most recent development in the practice of real estate is "designated agency" which was created to permit individual licensees within the same firm, designated by the principal broker, to act as agents for individual buyers and sellers within the same transaction. In theory, therefore, two agents within the same firm act in strict fiduciary roles for their respective clients. Some states have adopted this practice into their state laws and others have decided this function is inherently problematic, just as was a dual agency. The practice was invented and promoted by larger firms to make it possible in theory to handle the entire transaction in the house without creating a conflict of interest within the firm Types of services that a broker can provide Real Estate Services are also called trading services [11] by some jurisdictions. Since each province's and state's laws may differ, it is generally advised that prospective sellers or buyers consult a licensed real estate professional. Some examples: Comparative Market Analysis (CMA) — an estimate of the home's value compared with others. This differs from an appraisal in that property currently for sale may be taken into consideration. (competition for the subject property) Total Market Overview — an objective method for determining a home's value, where a CMA is subjective. Broker's Price Opinion — estimate of a property's value or potential selling price Real estate appraisal — in most states, only if the broker is also licensed as an appraiser. Exposure — Marketing the real property to prospective buyers. Facilitating a Purchase — guiding a buyer through the process. Facilitating a Sale — guiding a seller through the selling process. FSBO document preparation — preparing necessary paperwork for "For Sale By Owner" sellers. Home Selling Kits — guides advising how to market and sell a property. Hourly Consulting for a fee, based on the client's needs. Leasing for a fee or percentage of the gross lease value. Property Management Exchanging property. Auctioning property. Preparing contracts and leases. (not in all states) These services are also changing as a variety of real estate trends transform the industry. Real estate brokers and sellers Services provided to seller as client Upon signing a listing contract with the seller wishing to sell the real estate, the brokerage attempts to earn a commission by finding a buyer and writing an offer, a legal document, for the sellers' property for the highest possible price on the best terms for the seller. In Canada and the United States, most laws require the real estate agent to forward all written offers to the seller for consideration or review. To help accomplish the goal of finding buyers, a real estate agency commonly does the following: Lists the property for sale to the public, often on an MLS, in addition to any other methods. Provides the seller with a real property condition disclosure (if required by law) and other necessary forms. Keeps the client abreast of the rapid changes in the real estate industry, swings in market conditions, and the availability and demand for property inventory in the area.[12] Prepares paperwork describing the property for advertising, pamphlets, open houses, etc. Places a "For Sale" sign on the property indicating how to contact the real estate office and agent. advertises the property, which may include social media and digital marketing in addition to paper advertising. Holds an open house to show the property. Serves as a contact available to answer any questions about the property and schedule showing appointments. Ensures that buyers are pre-screened and financially qualified to buy the property. (Sellers should be aware that the underwriter for any real estate mortgage loan is the final say.) Negotiates price on behalf of the sellers. Prepares legal documentation or a “purchase and sale agreement” on how the transaction will proceed. Acts as a fiduciary for the seller, which may include preparing a standard real estate purchase contract. Holds an earnest payment cheque in escrow from the buyer(s) until the closing if necessary. In many states, the closing is the meeting between the buyer and seller where the property is transferred and the title is conveyed by a deed. In other states, especially those in the West, closings take place during a defined escrow period when buyers and sellers each sign the appropriate papers transferring title, but do not meet each other. Negotiates on their client's behalf when a property inspection is complete. Often times having to get estimates for repairs. Guards the client's legal interests (along with the attorney) when facing tough negotiations or confusing contract. The listing contract Main article: Listing contract Several types of listing contracts exist between broker and seller. These may be defined as: Exclusive right to sell The broker is given the exclusive right to market the property and represents the seller exclusively. This is referred to as seller agency. However, the brokerage also offers to cooperate with other brokers and agrees to allow them to show the property to prospective buyers and offers a share of the total real estate commission. Exclusive agency Exclusive agency allows only the broker the right to sell the property, and no offer of compensation is ever made to another broker. In this case, the property will never be entered into an MLS. Naturally, this limits the exposure of the property to only one agency. Open listing The property is available for sale by any real estate professional who can advertise, show, or negotiate the sale. The broker/agent who first brings an acceptable offer would receive compensation. Real estate companies will typically require that a written agreement for an open listing be signed by the seller to ensure payment of a commission if a sale takes place. Although there can be other ways of doing business, a real estate brokerage usually earns its commission after the real estate broker and a seller enter into a listing contract and fulfill agreed-upon terms specified within that contract. The seller's real estate is then listed for sale. In most of North America, a listing agreement or contract between broker and seller must include the following: starting and ending dates of the agreement; the price at which the property will be offered for sale; the amount of compensation due to the broker; how much, if any, of the compensation will be offered to a cooperating broker who may bring a buyer (required for MLS listings). Net listings: Property listings at an agreed-upon net price that the seller wishes to receive with any excess going to the broker as commission. In many states including Georgia, New Jersey and Virginia [18 VAC §135-20-280(5)] net listings are illegal, other states such as California and Texas state authorities discourage the practice and have laws to try and avoid manipulation and unfair transactions [22 TAC §535(b)] and (c). Brokerage commissions In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. The median real estate commission charged to the seller by the listing (seller's) agent is 6% of the purchase price. Typically, this commission is split evenly between the seller's and buyer's agents, with the buyer's agent generally receiving a commission of 3% of the purchase price of the home sold. In North America, commissions on real estate transactions are negotiable and new services in real estate trends have created ways to negotiate rates. Local real estate sales activity usually dictates the amount of agreed commission. Real estate commission is typically paid by the seller at the closing of the transaction as detailed in the listing agreement. RESPA Real estate brokers who work with lenders may not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). Commercial transactions are exempt from RESPA. All lender compensation to a broker must be disclosed to all parties. A commission may also be paid during negotiation of contract base on seller and agent. Lock-box With the seller's permission, a lock-box is placed on homes that are occupied, and after arranging an appointment with the homeowner, agents can show the home to prospective buyers. When a property is vacant, a lock-box will generally be placed on the front door. The listing broker helps arrange showings of the property by various real estate agents from all companies associated with the MLS. The lock-box contains the key to the door of the property, and the box can only be opened by licensed real estate agents. Shared commissions with co-op brokers If any buyer's broker or his agents brings the buyer for the property, the buyer's broker would typically be compensated with a co-op commission coming from the total offered to the listing broker, often about half of the full commission from the seller. If an agent or salesperson working for the buyer's broker brings the buyer for the property, then the buyer's broker would commonly compensate his agent with a fraction of the co-op commission, again as determined in a separate agreement. A discount brokerage may offer a reduced commission if no other brokerage firm is involved and no co-op commission paid out. If there is no co-commission to pay to another brokerage, the listing brokerage receives the full amount of the commission minus any other types of expenses. Real estate brokers and buyers This section possibly contains original research. Please improve it by verifying the claims made and adding inline citations. Statements consisting only of original research should be removed. Services provided to buyers Buyers as clients With the increase in the practice of buyer brokerages in the United States, agents (acting under their brokers) have been able to represent buyers in the transaction with a written "Buyer Agency Agreement" not unlike the "Listing Agreement" for sellers referred to above. In this case, buyers are clients of the brokerage. Some brokerages represent buyers only and are known as exclusive buyer agents (EBAs). Consumer Reports states, "You can find a true buyer's agent only at a firm that does not accept listings." The advantages of using an Exclusive Buyer Agent is that they avoid conflicts of interest by working in the best interests of the buyer and not the seller, avoid homes and neighborhoods likely to fare poorly in the marketplace, ensure the buyer does not unknowingly overpay for a property, fully inform the buyer of adverse conditions, encourage the buyer to make offers based on true value instead of list price, and work to save the buyer money. A buyer agency firm commissioned a study that found EBA purchased homes were 17 times less likely to go into foreclosure. A real estate brokerage attempts to do the following for the buyers of real estate only when they represent the buyers with some form of written buyer-brokerage agreement: Find real estate in accordance with the buyers needs, specifications, and cost. Take buyers to and shows them properties available for sale. Pre-screen buyers to ensure they are financially qualified to buy the properties shown (or use a mortgage professional, such a bank's mortgage specialist or alternatively a Mortgage broker, to do that task). Negotiate price and terms on behalf of the buyers. Prepare standard real estate purchase contract. Act as a fiduciary for the buyer. Find real estate in accordance with the buyers' needs, specifications, and affordability. Assist the buyer in making an offer for the property. Buyers as customers In most states until the 1990s, buyers who worked with an agent of a real estate broker in finding a house were customers of the brokerage since the broker represented only sellers. Today, state laws differ. Buyers and/or sellers may be represented. Typically, a written "Buyer Brokerage" agreement is required for the buyer to have representation (regardless of which party is paying the commission), although by his/her actions, an agent can create representation. Education A person may attend a pre-license course lasting 60 hours and then be tested by the state for a real estate agent's license. Upon passing, the new licensee must place their license with an established real estate firm, managed by a broker. Requirements vary by state but after some period of time working as an agent, one may return to the classroom and test to become a broker. For example, California and Florida require you to have a minimum experience of two years as a full-time licensed agent within the prior 5 years. Where as Indiana only requires one year experience as a real estate salesperson and Arizona requires three out of the prior five years.[14][15] Brokers may manage or own firms. Each branch office of a larger real estate firm must be managed by a broker. States issue licenses for a multi year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management. Many states recognize licenses from other states and issue licenses to existing agents and firms upon request without additional education or testing however the license must be granted before real estate service is provided in the state. California does not have license reciprocity with other states. An applicant for licensure is not, however, required to be a resident of California to obtain a license. In Illinois, the salesperson license was replaced by a broker license in 2011. the new license requires 90 hours of pre-license education, 15 of which must be interactive, and 30 hours of post-license education. The pre-license education requirement includes a 75-hour topics course and a 15-hour applied real estate principles course. Organizations This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Real estate broker" – news · newspapers · books · scholar · JSTOR (January 2019) Several notable groups exist to promote the real estate industry and to assist members who are in it. The National Association of Realtors (NAR) is the largest real estate organization and one of the largest trade groups anywhere. Their membership exceeds one million. NAR also has state chapters as well as thousands of local chapters. Upon joining a local chapter, a new member is automatically enrolled into the state and national organizations. When the principals of a firm join, all licensed agents in that firm must also belong. A Realtor is a real estate broker or salesperson who is also a member of the National Association of Realtors, which is an industry trade association. The word "Realtor" is a registered trademark, protected under US and international law. The Realtor Political Action Committee (RPAC) is a separate entity, and also the lobbying arm of NAR. In 2005, they were considered the largest PAC in the United States. According to realtor.org, RPAC is the largest contributor of direct contributions to federal candidates. The National Association of Exclusive Buyer Agents is a group of agents and brokers who work in firms that represent buyers only. They assist in locating exclusive buyer agents for home buyers through the Web site www.naeba.org. The National Association of Real Estate Brokers (NAREB) was founded in 1947 as an alternative for African Americans who were excluded from the dominant NAR. Both groups allow members to join without regard to race. However, NAREB has historically been an African American-centric group with a focus on developing housing resources for intercity populations. The Real Estate Institute of Canada (REIC) was established in 1955 and is a not-for-profit membership organization offering continuing education courses and designation programs for Canadian real estate professionals across multiple sectors. Changing industry Compensation is conventionally based on a percentage of the sales price, split between the buying and selling brokers, and then between the agent(s) and his/her real estate agency. While a split based on the percentage received by the broker is generally normal, in some brokerages agents may pay a monthly "desk fee" for office costs, monthly fee, etc., and then retain 100% of the commission received. Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission motivates them to sell quickly more than it motivates them to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future. A 2008 study by other economists found that when comparing brokerage without listing services, brokerage actually significantly reduces the average sale

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHERE TREASURES HAVE BEEN FOUND IN HOUSES

Cash Hidden in the Wall You might think a treasure hunt means diving in the ocean to find sunken ships or exploring ancient ruins in faraway countries looking for hidden chambers full of gold and jewels. But fortunately, you can also become a treasure hunter in and around your own house, starting with nothing or perhaps a small investment in a metal detector. Most of us don’t believe there’s anything valuable hidden in the house, but after you hear these 10 stories, don’t be surprised if you start knocking down a wall or two… Inside the Walls It isn’t easy to look in your walls, but there can be valuable things there. For example, more than one homeowner has found movie posters that were once stuffed between walls as insulation. In a recent case a man in Canada sold 40 movie posters for $50,000 after finding them inside the walls of his house during remodeling. Keep that in mind the next time you think about expanding your bedroom. If you’re careful you might be able to peek inside some walls. Turn the power off, remove the plastic covers from switches and electrical outlets, and shine a light in wherever there is an opening that you can see through. Crawl Spaces When I was about twenty years old I buried 100 ounces of silver in a plastic container a foot deep and sixty-six inches inside the south and east walls of the crawl space under my parents’ house. I left it there for years. Today it would be worth over $2,000. The important point here is that I never told anyone about the stash at the time, and I could have died unexpectedly, in which case the silver might have stayed there for a century. Death is perhaps the biggest reason that there are thousands of hidden treasures to be found. If a crawl space can be accessed from inside (an opening in the basement in my case) it’s more likely to have been used as a hiding place because of the privacy. And it isn’t just buried items that might be there. In that same crawl space I found a chest in the corner with coins and currency from Vietnam, along with documents and other things. I knew the previous owner so I returned these finds, but if he had passed away in the meantime I might have considered them fair game. You can use a metal detector to look for buried objects or you can just look for clues, like a dip in the ground or a patch of dirt that looks different. Dig gently; there shouldn’t be wiring buried there, but water lines and drain pipes are common. Attics Stories of hidden valuables in an attic are almost cliché, but that’s because these discoveries are so common. I once demolished an old house and I found a glass piggy bank full of pennies under the insulation in the attic. If you plan to poke around under fiberglass insulation you should wear protective gear (disposable clothes, a face mask and safety glasses). Some attics will have things stored in boxes and trunks. These are especially promising if some of them were there before you moved in. Check online for help determining if your finds have value. Last year an original Vincent Van Gogh painting was found in an attic in Norway. Pablo Picasso produced more than 20,000 works of art during his life, and more than a thousand of his paintings are listed as stolen, missing or disputed. So check that attic. Behind the Washing Machine Many washing machines have water lines and drain lines that come through the wall about halfway up. Sometimes these openings are not sealed, which is why I was able to stash a pouch full of cash there in a house I owned years ago (I used to like hiding things — now I use banks). I hung it on a string anchored inside the hole so it would be down inside the wall by the floor. I’m not trying to be morbid, but I should remind you again that people sometimes die without revealing all of their hiding places. Take a peek if you have an opening into the wall for your washing machine drain line. Closets If your home was inherited or for other reasons came with things already in it, search through those closets. A few years ago Michael Rorrer found comic books worth $3 million while cleaning out a closet in the home of his deceased great aunt in Martinsville, Virginia. He found a total of 375 classic old comics, including the first issue of Batman. Even if you thought the closet shelves were empty when you moved in, sometimes there are things at the back which can’t be easily seen. And poke around for secret hiding places. I once cut a hole above the door inside a closet, stashed cash inside, and covered it with a white panel that looked just like the wall. Yes, if I had died young there would have been some treasures to find. Basements If you watch the PBS program Antiques Roadshow, you might have seen the episode with the man who discovered a 150-year-old photograph of Abraham Lincoln. He found it in his grandmother’s basement. It was signed by President Lincoln and was estimated to be worth somewhere between $75,000 and $100,000. Apart from being a natural collection point for all sorts of forgotten items, basements also have many hiding places. Look around and think about where you would put something if you wanted to hide it really well. I used to hide things on top of ducts that run along the basement ceiling. If the basement wall is made of concrete blocks and the top row is accessible, there could be things hidden inside the blocks there. Use a mirror and flashlight to take a look. Under Carpet While taking the carpet out of an old house my parents had bought, I discovered that newspapers lined the entire floor. An old-timer told me this was once a common form of cheap carpet padding. What didn’t occur to me at the time was that those newspapers were old enough to have some value to collectors. I just browsed the old headlines and threw them all away. Money is sometimes hidden under carpeting. This is most common in places where a corner can be pulled up without loosening the whole carpet. Check for unattached corners in the backs of closets and under stairs, and take a peek. Old Desks A California man had an old penny in his deceased father’s desk for 33 years before he took it to a coin shop. That’s when he discovered that it was a rare aluminum penny from the Denver mint. The discovery in the desk is estimated to worth over $200,000. Some desks have secret compartments. Look underneath to see if there is enclosed space that doesn’t seem to be accessed from the usual drawers. There are also drawers that don’t open all the way but appear to do so because of a false back. If you find coins or bills or even old postcards, you can use online resources to determine if they’re worth anything. Books As you pull apart your home in the name of treasure hunting, you might find some valuable old books. You can sell them on eBay. But don’t discard the worthless ones too quickly. My mother told me about an uncle who stashed currency in books. After he died his family discovered thousands of dollars while leafing through the pages. Apparently hiding money in books was common for those who lived through bank failures during the Great Depression. More recently a man in Massachusetts found $20,000 inside a book that he bought at a used book sale. It’s likely that someone got rid of it after a loved one passed away, and didn’t take the time to open it and leaf through the pages. Check those books! Under Floorboards When we were children we used to throw pennies into a hole in kitchen floor. We never did know why there was a quarter-sized hole through the linoleum and wood. We also never retrieved any of the coins. They might be there today, almost forty years later. Apart from accidental stashes like that, things are often purposefully hidden under floorboards. Recently, a man in England found valuable old British Rail posters stashed under the floorboards of a house he bought. They sold at auction for 18,000 pounds, or about $30,000. Unless you’re renovating you probably don’t want to tear open your floors. But you might find a loose board that can be removed, and you might find access from the floor below. In the case of our kitchen hole it would probably have been as simple as popping open a ceiling tile in the basement. That brings us to our next potential treasure location… Ceilings While remodeling, a New York couple found $15,000 in their ceiling. Actually it was their contractor who found the bag full of money, and he was honest enough to give it to them. Again, you can’t tear open a ceiling just for the small chance that there’s something valuable in there, but you can look for clues. Maybe part of the ceiling has already been removed and can be removed safely again. A drop ceiling might have tiles which are easily lifted, so you can take a look. An attic can provide access to a ceiling as well. That should be enough to get you started, and we haven’t even considered getting out of the house to the garage, shed, barn, garden and yard. Those will be covered in a future post. Meanwhile, here’s one last place to check: your furniture. If all of your hard work scouring the house for valuables doesn’t get you anything, at least you can round up the lost change in the couch and recliner for a minor treasure hunting

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REZONING, VARIANCE, OR CONDITIONAL USE PERMIT?

Rezoning, Variance, or Conditional Use Permit: Which One Can Solve Your Zoning Problem? You’re considering the purchase of a particular property, but know it doesn’t conform to the city’s zoning ordinance. As such, you’ve negotiated the purchase contract so that closing is conditional upon you first being able to bring the property, and your intended use of it, into compliance. What type of application do you make? Rezone it to a district that expressly permits the existing use or the one you desire? Seek a conditional use permit (“CUP”) under the current zoning district where your use is a permitted conditional use? Or is a variance from the ordinance’s regulations the right decision? In covering the topics below for rezoning, conditional use permits, and variances, this article will help you understand which avenue might make the most sense for you. In this article we’ll cover: How these three options differ What purpose each is intended to foster Examples of the options Common issues faced by parties making these requests Which governmental entities review your application, which one makes the final decision, and what are the procedures for each proceeding, and If the decision is appealed to the courts, how the court makes its decision It should be noted there are no universal laws, set of terms, or processes for zoning. They vary on a state-to-state and city-to-city basis. So while this article will give you an understanding of some widely used concepts and their application, you’ll have to work with a land use lawyer to determine how (or even if) your city implements these ideas. Rezoning Let’s start with rezoning, but first, a quick caveat: although there are two types of rezoning actions, (1) an amendment to the zoning ordinance’s text that impacts all properties, or (2) an amendment to the ordinance’s map to change the use district of an individual parcel, because the first action is less common, this article will consider only the second. That being said, let’s get to work. Definition of Rezoning Rezoning is the act of changing a property’s use district (e.g., commercial, residential, industrial, agricultural, and sub-districts within each) to a different district with regulations permitting the applicant’s desired use. For explanations of other zoning terms, you can check out our article on common zoning terms. Purpose of Rezoning The purpose of zoning is to regulate land uses to serve the health, safety and general welfare of the public. To achieve this purpose, zoning laws address the impacts of land uses, including such things as: Protecting all properties from potentially negative consequences of neighboring, incompatible uses Protecting the value of properties by permitting them the most appropriate land uses, and minimizing potentially negative impact of nearby uses Controlling the location and negative impacts of nuisance-like uses, and Providing adequate public services (e.g., transportation, water and sewers) Accordingly, a rezoning might be allowed where one of these objectives (or similar ones) is no longer being met by the existing use designation, and the proposed use would further one or more of these goals. Examples of Rezoning Rezoning may be appropriate in a number of different circumstances. For example, where a city wishes to replace an undesirable use with a more attractive use, it may initiate a rezoning to a district that doesn’t allow the undesirable use. This can occur, for instance, when a city replaces an intensive multi-family residential district to a less-intensive single-family district to reduce potential strains on public infrastructure, or other general welfare objectives. Similarly, a property owner can seek a rezoning to change the use district to permit a new use that has become more appropriate due to the city’s development. For example, where undeveloped ground on the edge of the city limits had been limited to agricultural uses, and the city’s growth resulted in residential uses approaching the agricultural district, a retail commercial use may be appropriate to support the shopping needs of these neighborhoods. So long as the comprehensive plan included objectives for the city’s development that address the public need being filled in a rezoning application (here, supporting residents’ shopping needs), the rezoning may comply with the plan even if it didn’t specifically project the particular growth. Requirements for Approval of a Rezoning First and foremost, the rezoning application must comply with the procedures described in the municipality’s zoning ordinance, including things like (1) meeting with neighborhoods potentially impacted by the change, (2) meeting with city staff prior to application to discuss potential issues and ensure the application is in proper form, and (3) that any application fees are paid. Secondly, the rezoning generally must comply with the comprehensive plan. As the plan is a guiding, and not binding document, the city may exercise some flexibility in finding compliance. The retail scenario above is a good example: the plan didn’t project that retail would be appropriate in the subject parcel, but it did note that retail to support residents was one of the plan’s objectives. The city will then determine if the proposed use is either a permitted use or a conditional use within the proposed district. Common Rezoning Issues Next, let’s take a look at some common zoning issues. In this section we’ll talk about regulatory takings, spot-zoning, and “Not In My Backyard”, or NIMBY opposition. Regulatory Taking As described in our practical guide to zoning, if a city-initiated rezoning, and its attendant regulations, effectively deprive a landowner of all economically reasonable use or value of their property, it can be considered a regulatory taking. A taking occurs when the government exercises its power of eminent domain to acquire ownership of private property for a public use or benefit. While a government has this right, if it does so, it must compensate the landowner for the loss of its land. In the case of a regulatory taking, although the government hasn’t taken title to the property, because its regulations rendered the land essentially worthless, the regulation is viewed as a taking, and the landowner must be compensated. Spot-Zoning As described in this article on zoning terms, spot-zoning occurs when a single parcel is zoned differently than surrounding uses for the sole benefit of the landowner. Such zoning is unlawful. Although property may lawfully be zoned differently than surrounding uses, pursuant to guiding planning documents (e.g., the comprehensive plan), policies and zoning ordinances, such varying uses are typically permitted only because they serve a public benefit or a useful purpose to the surrounding properties. A simple test to determine if a rezoning is spot-zoning is to consider whether the rezoning complies with the comprehensive plan. If it does not, then it is spot-zoning. A fix for this scenario is to amend the plan and ordinance to allow for the proposed use before the rezoning occurs. NIMBY Opposition An acronym for “Not In My Backyard,” NIMBY is an organized opposition to a rezoning based on the assertion that the new use will negatively impact the objecting parties’ properties. Such protest can occur in all three of the zoning actions considered here, but for sake of brevity, we’ll consider it as applied to rezoning requests. NIMBY participants are most often residential property owners, and object to uses they believe will negatively impact their homes, including uses like: Landfills, quarries, and industrial or manufacturing uses Roadways Halfway houses and homeless shelters Low-income housing Adult uses, and Large-scale commercial developments (e.g., office complex, shopping mall, sports complex) In considering such protest, cities will try and balance what the public as a whole needs (e.g., residents generally need shopping centers and roadways) with the desires of neighboring residential property owners. One way to balance these potentially incompatible needs is the imposition of conditions on the new use. For example, if residents oppose construction of a new sports complex on the grounds that it will create consistent and disruptive noise, the city could require the development to employ larger setbacks or construct noise-buffering structures. Variances Now that we’ve covered rezoning, let’s next move onto variances. Definition of Variance A variance is an administrative, discretionary, limited waiver or modification of a zoning requirement. It is applied in situations where the strict application of the requirement would result in a practical difficulty or unnecessary hardship for the landowner. Typically, the difficulty or hardship must be due to an unusual physical characteristic of the parcel. Types of Variances There are two types of variances: an area variance and a use variance. Not all jurisdictions permit both (jurisdictions that don’t allow for use variances generally believe the proper remedy for such situations is a conditional use permit). An area variance is an exception to the district’s applicable regulations to allow the landowner to enjoy the same use of similarly-situated owners who do not suffer the unusual physical characteristics of the subject land. A use variance permits a landowner to enjoy a land use that is otherwise prohibited in the existing district. Because use variances are more rare, we’ll just consider area variances. Purpose of Variances Firstly, jurisdictions would prefer as an equitable matter that a landowner enjoy the same privileges and burdens of similarly-situated owners, provided the applicant didn’t cause the irregularity. Secondarily, there is some risk that absent a variance option, where a strict application of the regulations would unreasonably deprive a landowner of all economically reasonable use or value of their property, it may be considered a regulatory taking. Better to allow small deviations where no substantial harm is caused than to risk having to compensate a landowner for a regulatory taking. Examples of Variances Likely the most common area variance requests relate to setbacks (the distance between a building and a street or other protected feature, e.g., river). For example, a variance reducing the setback from a roadway might be appropriate where a (1) residential parcel is shaped oddly, and (2) because of this physical irregularity the applicant could not build a home of similar size to its neighboring, regularly-shaped, residential properties, if (3) the full setbacks were required. Requirements for a Variance As with all zoning requests, a variance application must comply with the zoning ordinance (procedurally and substantively) and comprehensive plan (though, as noted above, not all jurisdictions require compliance with the plan, and not all jurisdictions require a plan). The applicant must establish that its property (1) has an unusual physical characteristic the applicant didn’t cause, and (2) if the subject regulation were strictly imposed, it would result in a significant and unnecessary hardship to the owner’s use of its property. Because the variance allows an owner to operate under less stringent regulations, a city will want to ensure the variance isn’t simply a favorable treatment of the applicant. In order to verify that this isn’t the case, cities will look to earlier, similar variance requests. If they were granted, this supports the validity of the current variance request. Common Issues with Variances Sometimes people protesting the issuance of a variance will argue that the owner purchased the property knowing its unusual physical limitation would require a variance. However, this alone will not prohibit the issuance of a variance. If a city grants a variance that appears to be essentially a favor to the applicant, or the applicant failed to show the hardship created, some may argue it is an unlawful spot-zoning. Conditional Use Permits (CUPs) Finally, let’s take a closer look at conditional use permits and see how these differ from rezoning and variances. Definition of Conditional Use Permit (CUP) Conditional use permits (often simply called CUPs) are uses permitted on a permanent basis within a district so long as the governing body’s conditions are met. Permitted conditional use permits are expressly listed for each district in the zoning ordinance. These uses require conditions because in their absence the use could negatively impact nearby properties. Conditional use permits are given at the discretion of the city. Purpose of Conditional Use Permit Similarly to the consideration of NIMBY protests, the city understands that some uses, while beneficial or necessary for the community, could cause certain negative impacts (e.g., increased traffic or noise). Imposing conditions that minimize such impacts allows the city to enjoy the needed use while also protecting the uses of nearby land. Examples of Conditional Use Permits A common conditional use permit allows for the operation of a home-based business within a residential district. Conditions designed to limit negative impacts of this business on the district could include such things as requiring traffic related to the business to park in certain areas (e.g., the home’s driveway) and limiting signage for the business. Another common conditional use is a church within a residential district, again with conditions to minimize the potentially negative impacts of the church (e.g., parking and additional traffic control improvements). Requirements for Approval of a Conditional Use Permit As with the above, a conditional use permit application must comply with the zoning ordinance and comprehensive plan. As relates to the ordinance, this primarily means the requested use is expressly permitted as conditional in the subject district. Where it does, where the applicant accepts the conditions imposed, and where all other ordinance requirements have been satisfied, the conditional use permit is granted as matter of right. If the owner ceases to comply with the conditions, it risks the revocation of the conditional use permit. Common Issues with Conditional Use Permits An applicant may argue the conditions imposed are too restrictive and unduly burden its use of his property. Alternatively, those opposing the grant of a conditional use permit may argue the regulations are insufficient to protect against the use’s negative impacts. Additionally, if the conditional use permit is not in compliance with the ordinance, as with a questionable variance, it may be considered an unlawful spot-zoning. Procedure for Approval & How Courts Examine Challenges to Zoning Decisions Now that we’ve covered rezoning, variances, and conditional use permits, let’s next examine the process for getting approvals in place. In this section we’ll also take a closer look at what happens when a zoning decision is challenged in court. Who Reviews Rezoning, Conditional Use Permit and Variance Applications Generally an application for the three requests considered here start with the city’s zoning staff. They work with the applicant, explaining regulations under the ordinance, and modifying the application where necessary to make it compliant. Though the process following staff’s review varies between jurisdictions, generally rezoning and conditional use permit applications are forwarded, along with staff’s recommendation, to the planning commission. The commission is an advisory board of residents who reviews applications with staff and counsel to determine if the request complies with the ordinance and, where required, the comprehensive plan. Following its review, the commission makes a recommendation to the city council, and the council gives the thumbs-up or thumbs-down. It should be noted, that in some jurisdictions the council may delegate its conditional use permit decision-making authority to the commission. In the case of variance requests, the staff (following its review) forwards a recommendation to the board of zoning adjustment (“BZA”). In some jurisdictions the BZA will make the final approval or denial of a variance application, and in others the BZA will act like the planning commission, only making recommendations to the council. BZA decisions may, depending on the zoning ordinance, be subject to appeal directly to the courts or to the council. Legislative vs. Administrative Review Zoning decisions come in two different flavors: legislative and administrative (also referred to as quasi-judicial). Which flavor isn’t determined by which body makes the final decision (e.g., commission, council or BZA), but rather on the characteristics of the request itself. Because the procedural rules and protections are different as between legislative and administrative decisions, an applicant can expect different rules for different types of requests. Legislative decisions apply to the community as a whole, and not only to an individual. In zoning the clearest example is the creation of, or a text amendment to, the zoning ordinance because it applies to all properties within the city. In contrast, administrative decisions impact only a single property or individual. For example, because a variance or CUP decision will only impact the individual property making the application, these decisions are generally considered administrative (however, some jurisdictions consider CUP decisions to be legislative). There is disagreement among jurisdictions as to whether the rezoning a specific parcel is legislative or administrative. Some treat it as legislative, and others, pointing to the fact that it affects only a single parcel, treat it as administrative. Where legislative, these decisions (like all legislative decisions) may only be made by the governing body, e.g., the city council, board of alderman or similar body. Administrative decisions may be made (limited by state and local laws) by non-legislative bodies, e.g., the planning commission or BZA. Legislative vs. Administrative Review Procedures Because legislative decisions are by definition those with broad application to the community, they are based on the city’s discretionary powers. They are subject to Constitutional limitations, but otherwise aren’t required to have any specific rules or standards. Of course if the zoning ordinance requires certain procedures, they must be followed. Administrative decisions, however, impact only the individual applicants, and thus provide some due process protections. These typically include the rights to: Notice of a hearing Present evidence and cross-examine witnesses Legal representation, and A written decision based on the evidence presented Method and Standard of Reviews for Appeals to the Courts If a council’s legislative decision is appealed to the courts, the court will generally look at any record of the council’s consideration, as well as making a “de novo” review. De novo is Latin for “anew” and means the court will consider evidence and arguments as if the council proceedings had never occurred. The court may even consider new evidence at trial that was not presented in the decision proceedings. Based upon this review the court will determine if the proceedings violated Constitutional protections, either “facially” (meaning the ordinance on its face was unconstitutional) or “as applied” to the applicant aggrieved by the administrative decision. The burden of proof is placed upon the applicant, who will only prevail if it can establish “by clear and convincing evidence” that it suffered substantial detriment, and that the decision provided no benefit to the health, safety and welfare of the public. Unlike the de novo review of a legislative decision, administrative appeals are based only on the record created at the proceeding. Following a review of the record a court will consider if the administrative body exceeded or abused its discretionary powers, or acted arbitrarily or capriciously regarding the applicant’s constitutional rights. If there is any evidence supporting the administrative decision, it will be upheld by the court. Conclusion So… you’re considering the purchase of property, know it doesn’t conform to the city’s zoning ordinance, but in your purchase contract you’ve negotiated a condition to closing your ability to bring the property, and your intended use of it, into compliance. Do you know now whether you should apply for a rezoning, conditional use permit, or variance? Hopefully this article gave you some idea, but in any case, because its only for informational purposes, and not to give legal advice, if you have any particular zoning issues, you should consult a licensed

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS DOWN ZONING?

Down zoning is the process by which an area of land is rezoned to a usage that is less dense and less developed than its previous usage. This is typically done to limit sprawl and overgrowth of cities, and to help concentrate areas of development into smaller sections to prevent over zoning a community. Purpose of Down Zoning In terms of urban development, down zoning is a somewhat unique concept. On its face, it tends to be going in the opposite direction of what is ordinarily considered progress. However, if the community's goal is to downsize and prevent sprawl from taking traffic away from downtown, or to prevent overbuilding the city boundaries in a way that will sprawl into surrounding suburbs, down zoning is considered a positive change to redirect life back into the city center and remove eyesores that can result from overbuilt areas. Examples of Down Zoning Down zoning may occur when an area that is built up with large apartment buildings is cleared, and the area is rebuilt with single-family homes or smaller multi-family units. Another example of down zoning is the rebuilding of a large area of shopping malls to single-building shops and restaurants, or a large industrial area rebuilt as retail shops. The Effect of Down Zoning on a Landowner Down zoning can create a problem if you happen to live or own a building in the area that is being zoned down. If this occurs, in some cases, you will be "grandfathered" in, which means you will be able to continue to use the land for the same purpose you were using as before the zoning change. While being grandfathered in won't happen in every instance, this is often the best way to protect existing interests when zoning regulations

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHEN CAN A LANDLORD CHANGE THE LOCKS?

Two Common Scenarios 1. Abandonment Your tenant has paid the rent through Sept. 30, but has moved out on Sept. 10… she and her belongings are gone. However, the tenant not only did not return your keys to you, you discovered upon going over there on Sept. 12 that she also changed the locks. Now you can’t get inside to ready the place for the next tenant. Can you change the locks in this case? Let’s assume that your lease doesn’t address this issue. What you should do: Notify your tenant that you intend to change the locks back at their expense and see if she does it on her own accord. If not, wait until Oct. 1, and change the locks back when the lease has ended. Or change the locks after she doesn’t respond to your inquiry, and notify your tenant that you have done so. Let her know that she can pick up an extra key from you if she would like to enter the unit up until Sept. 30, but if she does, she must return the key to you on or before Sept. 30. What you shouldn’t do: Change the locks between Sept. 11 and Sept. 30 and fail to notify your tenant. You can’t do that because she has paid through Sept. 30, so she has the right to have access to the property until then. Whether you choose to wait until Oct. 1 or change the locks immediately, you can probably deduct from the security deposit what it costs you to change the locks since your tenant didn’t give you an extra key. This varies by state, so check your state laws. 2. Defiant Tenant Your tenant has broken the lease by not paying rent and by destroying the property. You therefore decide to change the locks to keep out this undesirable tenant, and you put his belongings on the curb. You can’t do that! Changing the locks without going through the proper eviction procedures is considered “taking the law into your own hands,” or also known as a “self-help eviction” and it’s illegal in almost every state. In fact, this deadbeat tenant can sue you for doing that! This tenant could be awarded monetary loss, such as hotel costs and the now-spoiled food that was in the fridge. And depending on your jurisdiction, your tenant could receive even more money that the court considers penalties to you, which could amount to several months’ worth of rent! Your recourse is the eviction process. Sometimes, however, it might be cheaper and/or faster to pay a tenant to get out. Consider the cost of each. But keep in mind that even if you do offer to pay a tenant to leave, he can refuse. Then, you need to go through the eviction process anyway. *Add a Lock Policy in Your Lease Your lease can include language that prohibits a tenant from changing the locks unless you give permission and get an extra key. If your lease doesn’t state anything about locks, tenants can typically change them. In some states, such as California and New Jersey, tenants can change the locks and not give you a key unless your lease states otherwise! You should always have a key to your property. You need access in case of an emergency. You also need access to make repairs (or to let in repair people) when your tenant isn’t home (after you have alerted your tenant about this and have given the proper notice). If you allow your tenants to change the locks, it’s important to state in the lease that they need to give you a key – that way, it’s a lease violation if they don’t. Some Thoughts About Changing Locks Although you might not be required to change locks between tenants, and most landlords probably don’t, you might want to consider doing so. Even if your last tenant returned the keys to you, you have no way of knowing whether that tenant made extra keys. The only way to be sure the place is secure is to change the locks. If you don’t want to change the locks when a new tenant moves in, it’s a good idea to allow your tenants to do so if it will make them feel more comfortable. You don’t want to start off with bad mojo. If the worst happens, and a former tenant did keep an extra key so he could come back and rob or otherwise victimize your new tenant, your new tenant could sue you and would certainly want to move. You’d be far better off changing the locks or letting your tenant change them. Just insist they give you a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SHOULD YOU BUY OR SELL A HOME IN 2019?

Should You Buy A Home In 2019? Buying a home is one of the most important financial decisions a person will make. Deciding to buy a home comes down to individual circumstances. Are you starting a family? Do you have a steady job with prospects for advancement? The advice of an independent financial advisor can be helpful. A key rule of thumb is to keep your debt-to-income ratio as low as possible. To get a qualified mortgage, the Consumer Financial Protection Bureau demands a total debt-to-income ratio below 43%. Does it make more sense to rent or buy a home in 2019? The home price-to-rent ratio compares the value of a home vs. what it could rent for over a year. In San Francisco, Los Angeles, New York and Seattle, top-tier cities with few homes on the market, the price-to-rent ratio is far higher than in places like Houston or Atlanta. If you live in a pricey market but no longer want to rent, consider buying a home where they are affordable. A recent trend has been millennials moving out of city apartments to buy homes in the distant suburbs or cheaper parts of the country. Other key objectives when buying a home include having enough money for a deposit, getting preapproved for a loan and checking your credit score. Make sure that any potential home to buy is somewhere you are willing to live for the long term. If you have or plan to start a family, consider the quality of local schools. Also, hire a trusted real estate agent. Real estate agents can help you find a home to buy and negotiate the price. But remember, it's ultimately your decision. Should You Sell A Home In 2019? If your home no longer matches your lifestyle, perhaps due to family changes or employment prospects, you may be ready to sell your home in 2019. Forget about national housing market trends. If you're thinking about selling a home, you want to know if there's buying demand in your area. That'll determine how much you can reasonably expect to sell your home for. Keep in mind that you likely will have to pay a real estate commission of around 6% of the sale price. Buyers also may ask for the seller to cover their closing costs. Also, if you sell a home, you'll need a new place to live. If you're upsizing to a bigger home, make sure you have enough equity in your current property to afford the next one. Sellers should also complete any half-finished remodeling or repairs. Expert Advice For Homebuyers If you do want to buy a house in 2019, set a budget before property hunting. "It's incredibly important to make sure that you're taking on a payment that can be sustained over the long haul," MBA's Fratantoni said. But that budget shouldn't just include a down payment and money to cover mortgage payments, property taxes and expected upgrades. Make sure to have enough cash in reserve for large unexpected expenses. Examples include dealing with a broken-down furnace, a gutter that needs replacing or repairing broken-down appliances. "Have that budget in place and make that determination of what you can afford before you go shopping for a home," Fratantoni said. "The problems really come along when someone falls in love with a home and tries to figure out how they can finance it. It's a much better move to understand your budget before you go shopping." Failure to understand what you can realistically afford leads to problems down the line and can even end in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SUBORDINATION, NON-DISCLOSURE, AND ATTORNEY AGREEMENTS

Subordination, Non-Disturbance, and Attornment (SNDA) Agreements Whether you're the landlord or tenant of a commercial property, you'll want to know what a subordination, non-disturbance, and attornment agreement is and how it will affect you in the event of a foreclosure. Commercial leases often contain what is called a subordination, non-disturbance, and attornment agreement, or SNDA. SNDAs are agreements between a tenant and a landlord that lays out certain rights of the tenant, the landlord, and other third parties, such as the landlord’s lender or a purchaser of the property. There are three parts to an SNDA: the subordination clause, the non-disturbance clause, and the attornment clause. Read on to find out why a tenant or landlord would want to include an SNDA in their commercial lease. The Subordination Clause By signing off on a subordination clause in an SNDA, a tenant agrees to allow its interest in the property to become junior to the interest of a third-party lender. The landlord will want the flexibility to seek financing secured by the commercial property after entering into the lease with the tenant, and most lenders will require that any tenants occupying the property subordinate, or make junior, their leasehold interests to the lender’s mortgage interest. The purpose of a subordination clause is to give the third-party lender the option to terminate the lease in the event of commercial foreclosure. Why would a tenant agree to give a lender this right? In many cases, commercial tenants don’t have the negotiation power to refuse to sign a subordination clause. To protect its leasehold interest, the tenant should do its best to make sure the SNDA includes a non-disturbance clause, which is described below. The Non-Disturbance Clause In exchange for agreeing to subordinate its interest to a lender and recognize any new owner as the landlord (see “The Attornment Clause,” below), a tenant should ensure that there is a strong non-disturbance clause in the SNDA. A non-disturbance clause or agreement gives a tenant the right to continue occupying the leased premises as long as the tenant is not in default, even after the property is sold or foreclosed. The non-disturbance clause provides some assurance to the tenant that its rights to the premises will be preserved even if the landlord does not keep up with its mortgage payments and the property is foreclosed. This can be very important to a business tenant since moving its location can lead to unexpected expenses and great inconvenience. Whether the landlord will agree to include a non-disturbance clause in the SNDA depends on the negotiation power of the tenant. The Attornment Clause An attornment is the act by which a tenant acknowledges a new owner of the property as the new landlord. The purpose of the attornment clause in an SNDA is to obligate the tenant to recognize any new owner of the property as its landlord, whether the new owner acquires the property in a normal sale or following a foreclosure. The main goal of the clause is to ensure that the tenant continues paying rent to the new landlord throughout the remainder of the lease term, even if the property is foreclosed or sold. Legal Assistance Whether you are a commercial landlord or tenant, it is important to keep in mind that there are many legal intricacies involved with commercial leasing and it may be beneficial to employ the services of a qualified attorney to help you through the process of preparing or agreeing to a subordination, non-disturbance, and attornment

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

BROKERING REAL ESTATE WITHOUT A LICENSE

When was the alleged crime committed? Anyone who wants to sell real estate as a salesperson, real estate agent, or real estate broker must first obtain a license to do so from the state in which they live. State real estate license requirements differ slightly from state to state, but all usually require that an applicant complete a minimal amount of real estate education, submit an application to the state real estate governing organization, and pass a written examination. Only after you have received a state license can you act as a real estate salesperson or agent. If you don’t have a license and attempt to buy or sell real estate as an agent, you have committed the crime of practicing real estate without a license. Practicing Real Estate While state laws differ slightly, the definition of what it means to practice real estate hinges on whether you act on behalf of someone else in a real estate transaction. Any time you act on someone else’s behalf when buying or selling real estate in order to receive a fee, commission, or other type of compensation, you have engaged in the practice of real estate. To do this legally you must be properly licensed. If you are not licensed, you have committed a crime. Also, you cannot engage in real estate negotiations on someone else’s behalf or even attempt to conduct a real estate transaction for another person or organization unless you are properly licensed. Applications In order to obtain a real estate license, you must submit an application detailing your qualifications, criminal history, and other personal information. If you knowingly submit a false application or purposefully falsify your answers, this too can result in a practicing real estate without a license crime. For example, if you apply for a real estate license and conceal the fact that you have previously been convicted of a crime, you can be convicted of the unlawful practice of real estate even if the state denies your application, as any attempt to attain a license under false pretenses is a crime. Offenses In cases where people hold themselves out to be properly licensed real estate agents or brokers, the crime of practicing real estate without a license occurs in each separate transaction. For example, if you have a real estate license in one state, move to another and fail to apply for real estate license in the new state, you cannot act as a real estate agent. If you choose to do so, each transaction you engage in as someone else’s broker or agent is considered a separate offense. For Sale By Owner While all states require anyone acting as a real estate agent or broker to first obtain a proper license, those laws do not prevent property owners from acting on their own behalf. This means, for example, that you can sell your own property, or buy real estate, without having a real estate license. Penalties In some states, the crime of practicing real estate without a license either a misdemeanor or felony offense. In others, the law provides for enhanced penalties for repeat offenders. States penalize engaging in real estate brokering without a license for the first time as a misdemeanor offense, while any subsequent acts are charged as felonies. The states provide for various penalties when it comes to the crime of engaging in real estate without a license. A person convicted of this crime will face several potential punishments, though the severity of these will differ depending on the severity of the case. Prison or jail. The primary difference between a misdemeanor and a felony crime is the potential length of any jail or prison sentence. Any crime where the potential maximum sentence is up to one year in jail is categorized as a misdemeanor, while one where the potential for a year or more in prison is possible is considered a felony. Depending on the state, a conviction for the unauthorized practice of real estate can lead to maximum penalties ranging from up to a year in jail or four years or more in a state prison. Fines. In addition to or apart from any jail or prison sentence, courts can also impose a fine if you are convicted of the unauthorized practice of real estate. Fines differ widely, but misdemeanor fines are typically up to about $1,000, while felony fines can reach $5,000 or more. Probation. Courts may also order probation as part of a criminal sentence. When a court orders probation, it allows the convicted person to serve a sentence, typically 12 months or longer, outside of jail or prison. During that time the person on probation has his or her liberties restricted, and must comply with various court orders or conditions of probation. These conditions typically require the probationer to pay all required fines, court costs, and restitution; as well as find or maintain employment, refrain from the further practice of real estate, not engage in any other crimes, and regularly report to a probation officer. A person on probation who fails to meet all the required conditions will face additional penalties, such as higher fines, extended probation periods, or may even have his or her probation revoked and end up serving an incarceration sentence. Restitution. If, during the course of acting as a real estate agent, you charge others for your services, a court will likely make restitution a part of the sentence. When you are ordered to pay restitution you have to compensate those who were the victims of your crime for any damages you caused. You must pay restitution in addition to any applicable court costs and criminal fines, and must also do so as a condition of your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT HAPPENS WHEN YOUR HOUSE BURNS DOWN?

If your home is completely destroyed and unlivable, your homeowner’s policy has a ‘loss of use or additional living expense’ policy which allows you to maintain your standard of living while dealing with this loss. This means if you are used to living in a Mansion, your insurance will cover you renting something comparable in the interim. This policy will also cover laundry service, meals, etc. The key to getting the most out of this policy though is to keep detailed records and receipts of your expenditures. So that takes care of your immediate needs, but what happens with your mortgage? Let’s say you have a home valued at $300,000 with a mortgage of $150,000. This is covered under your dwelling coverage policy. When you first purchased homeowner’s insurance your home was valued at a certain amount, this amount is the replacement value of your home. There are a couple of caveats to this policy, but what’s important to know is that the bank gets paid first. What’s left goes to you. This is what you use to rebuild your home or to buy something new. Some policies even include covering closing costs or an allowance for a monthly stipend to cover an increase in interest rate. All of this coverage and we still haven’t gotten to how you replace all of your stuff. Personal property coverage is what will help you pay for a new couch, kitchen appliances, and shoes. You gotta have shoes. So how does personal property coverage work? It’s usually a percentage of your dwelling amount. If your home is valued at $300,000 and you have 50% personal property coverage you’ll get $150,000 to replace everything. Your policy may also be broken out into replacement cost or cash value. Replacement cost means if you bought your couch for $1,000 10 years ago you’ll still get $1,000 to replace it today. Cash value means you’ll only get 100 bucks because that’s all your 10 year old couch is worth today. Your best bet for the smoothest possible transition after a disaster is to have a comprehensive inventory of all your belongings. You can hire a company to do this for you or you can do it yourself. Either way, once documented, the information needs to be held in a safe location somewhere other than your own home. While all this is good information none of it matters if you don’t investigate your own policy. Understanding what coverage you have, and what you can expect in the event of the unthinkable, is invaluable. Take this as a nudge to call your agent today. Increasing your coverage to where you feel comfortable may cause you to spend a little more per month, but knowing you’ll be taken care of in a tough situation is probably worth it. That’s for you and your agent to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT DO REAL ESTATE AGENTS DO?

Just what do real estate agents do all day? Before you can understand what real estate agents do all day, you must first remove the word “typical” from your vocabulary. There is no typical day in real estate. Whether you’re showing property and quickly have to duck away to move a kitty litter box out of sight, or negotiating a contract with international buyers via Skype, or helping first-time buyers learn more about ways to increase their FICO scores—every day brings new challenges, new tasks, and new people. There are, however, fairly standard activities that come together to create a real estate agent’s daily schedule. Many of these activities revolve around the various roles that agents play from day to day. To help answer the question, “What do real estate agents do all day?,” we’ve organized these standard daily activities by the roles that accompany them. The sole proprietor Real estate agents, although working under the guidance of a broker, are almost always sole proprietors. They’re really running their own small business. From performing administrative tasks like making copies, filing documents, keeping up with expenses and receipts for tax purposes, to handling the day-to-day administrative duties like phone calls and emails, many of the daily tasks for real estate agents are the same as for many small business owners. The marketer Not only are real estate agents selling themselves on a daily basis, but they’re also selling their clients’ properties. As such, much of the day may be consumed with marketing activities. This could mean scheduling an open house, taking listing photos, writing a listing description, posting the property to the MLS, making flyers and postcards, and reaching out to local press. On the other hand, agents are also marketing themselves and building their personal brand. This can mean updating social media, blogging, attending a local networking event, and other activities. The knowledgeable agent To stay licensed and keep abreast of changes and trends in the marketplace, agents must take their role as “the knowledgeable agent” seriously. Doing so requires taking real estate continuing education classes, researching local market trends, viewing available properties to stay abreast of availability, attending lunches and meetings at their local board office, professional development courses, and more. While agents are not likely attending real estate classes on a daily basis, education plays a huge role in the weekly and monthly agent calendar. The buyer’s agent Agents who work with buyers have a list of specific buyer-related tasks that are tacked onto any daily or weekly calendar. The list includes helping buyers find the right mortgage lenders, researching and emailing properties that meet the client’s requirements, showing properties, negotiating contracts, attending home inspections and appraisals, and the list goes on. Working with buyers is perhaps one of the most exciting roles that an agent gets to play, yet it is filled with responsibility. These are only a handful of the tasks that may be associated with representing buyers. The seller’s agent Working with sellers also has its own set of duties and responsibilities. These include marketing and advertising the property, setting up vendors for repairs, staging and photographs, coordinating showings, creating and printing brochures and postcards, negotiating offers, attending inspections and appraisals, and more. Of course, like working with buyers, being a seller’s agent comes with a list of duties that can change from day to day. The main priority is to ensure that the home is marketed in its best light and sold for the best value. The lead generator An agent also has to fill their pipeline with up and coming buyers and sellers in order to be successful. This includes many of the marketing tasks mentioned earlier, but also includes a wealth of lead generation tasks such as building an online presence, managing lead response and follow-up, maintaining a CRM system, planning and budgeting for marketing, and an orchestrated effort to get your name out there. So, what do real estate agents do? So, what do real estate agents do all day? To put it simply, they play many different roles from day to day. An agent must learn to balance various tasks while serving as an all-in-one sole proprietor, marketer, knowledgeable agent, buyer’s rep, seller’s rep, and lead generator. Making all of these duties fit into a day—or a week—can be overwhelming. When it comes down to it, a real estate agent’s day is about organization, prioritization, and some serious to-do

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

6 ISSUES RELATED TO TITLE TO REAL ESTATE

A title is a legal document that includes the specifics about the property you are purchasing and who owns it, often in the form of a deed. One of the steps in buying a home is to have a title search completed prior to closing. Many first time buyers may not have heard much about this process. A title search is performed to ensure that the title is clear and that there are no unexpected surprises. While most home purchases are completed with very little hassle, some do involve issues with the title. Although most are minor problems and easily resolved, it is important to understand what to expect. 1. Purchasing Title Insurance Once you are under contract on a house, one of the first things you will do is buy title insurance. There are two kinds of policies: Owner’s title insurance – protects the buyer Lender’s title insurance – protects the lender An owner’s policy provides coverage equal to the amount you are paying for the property. It protects the owner if a problem is discovered after the search is completed. The insurance company provides legal assistance and pays any valid claims. Paid at closing, this type of policy provides protection for as long as you own the home. Although you will have very little involvement with the actual title search or resolution, it’s important to have title insurance. Understanding the process can give you peace of mind through the home-buying experience. 2. Prior Claim to the Title A title investigator looks for any claims to the title that may affect your purchase. The search will include public records and other land records spanning many years. You might be surprised to learn that over one-third of all title searches uncover some kind of problem. Here are a few of the most common issues: Previous owner failed to pay state or local taxes A contractor was not paid for work completed Mistakes or omissions in deeds Forgery Undisclosed owners, heirs or conflicting wills 3. Resolving Issues with the Title If it is discovered that the seller of the home you wish to purchase has ownership with another party, then any and all owners must sign the closing documents before the sale can be completed. Outstanding judgments or delinquent taxes must be paid at closing before a clear title is received. The seller has the responsibility for resolving any issues with the title. A title search also provides information about easements, restrictions and rights-of-way that could limit your use of the property. Review these documents prior to closing to ensure that you understand any potential impact. 4. What to Do with a Title Once you are the owner of your new home, place your title in a safe place, such as a safe deposit box at the bank. 5. What Happens to the Title When You Sell When you sell your property, your title ownership is transferred to the buyer. That party will receive a copy of the new title a few weeks after closing, indicating that they now own the property and you no longer have any claim to it. The title that you hold is now invalid. 6. What to Do If You Lose Your Title Loss of your title is no reason to panic. You can go to the clerk’s office at the county courthouse where the property is located and request a copy. If you have a mortgage on the property, your mortgage banker should also have a copy on file. For a first time homebuyer, a title search is often just one more new task in the unfamiliar and possibly confusing process. If any title issues arise, it can cause stress and anxiety. Stay calm. While title issues may delay closing in some cases, they typically don’t cause lasting

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

PROBATE AND REAL ESTATE

HOW DO PROBATE REAL ESTATE SALES WORK? Probate is simply the legal process that settles a deceased person’s debts and formally passes their property’s legal title to the intended heirs. That is, of course, if there is a will to properly identify the intended recipients. The parameters of a will typically dictate who the property will go to, but I digress. Not every scenario is as transparent as we would like to assume. It is all too common for homeowners to pass away without officially naming who will receive their property. iF a homeowner passes away without naming any heirs to receive the home, the state steps in to administer the sale of the home through a special probate court. Probate real estate sales that make it to probate court are a result of the vacuum in ownership that is created when someone passes away. Better yet, homes will be sold through a probate court when the deceased homeowner doesn’t bequeath their asset to anyone or never got around to making a will. Fortunately for real estate investors looking to capitalize on probate real estate sales, each scenario (whether the home was bequeathed to heirs or brought to probate court) offers an opportunity to acquire a deal at an encouraging price. If the subject property is bequeathed to an heir and/or heirs, it stands to reason that you may be able to acquire the deal if you play your cards right. If for nothing else, most heirs would rather receive cash for the property (which you can offer with the help of a private lender) than deal with a home that could have a number of undisclosed costs and issues. In fact, most heirs would jump at the opportunity to sell their inherited properties, and are motivated to do so before they turn into a headache. Therein lies the greatest benefit of probate real estate sales: motivation. More often than not, those that receive property through a will are motivated not to deal with the hassles that have become synonymous with homeownership. Their motivation, therefore, can serve as an opportunity for you to intervene an offer an “alternative solution.” If their motivation is strong enough, and your negotiation skills graceful enough, you could end up with a great deal on your hands. If, on the other hand, the property makes it to court, you’ll have to change your approach. Instead of dealing directly with the heirs of a probate court will typically market the subject property just like any other. According to Zillow, “The probate attorney or the estate representative will hire a local real estate agent, sign a listing agreement, and show the property, just as they would a traditional listing.” Not unlike a traditional sale probate real estate sales that make it to court will base their listing prices on comparables, listing agent suggestions and independent appraisals. Either way, the original offer and sale date is subject to the court’s confirmation. According to Zillow, “Once the sale date is determined, the parties now must wait a minimum of 30 to 45 days. During this time, the court requires that the property be properly advertised and marketed with the new accepted price.” It is worth noting, however, that each state has there own probate laws, so there is no 100 percent, process to abide by. This is information is more of a broad overview than a specific process. At the very least, it should be enough to get the ball rolling on your next probate real estate sale. PROBATE REAL ESTATE FAQS If you have any more questions, I urge you to look at two of the most frequently asked questions regarding probate real estate: How Long Does The Grant Of Probate Take? Of course, for the probate process to even take place, a grant of probate must be given to the individual tasked with administering the estate and handling the disposal of their assets and debts. In other words, someone needs to be granted access to do so by the Supreme Court. It is the Supreme Court that will give the proper authorities the right to distribute the deceased person’s assets accordingly. That said, the grant of probate doesn’t happen overnight. Again, each state has become synonymous with there own laws regarding the probate process, so be sure to identify the rules set in place for the state you intend to work in. Typically, however, the will executor must apply to the Probate Office of the Supreme Court to receive the grant they need to move forward. In the event their application is approved, they will be given a grant of probate to confirm the deceased has, in fact, died. What’s more, the grant of probate will make sure the will is authentic and the executor is who they say they are. Once probate is officially granted, the process moves forward much like a traditional sale, but the length of a grant of probate will vary from state to state. Just know this: probate is a lengthy process. If you are looking to buy a property in probate, expect it to take some time. It’s not uncommon for the process to take months. How To Find Probate Real Estate Listings The more familiar you are with the probate process, the easier it is to understand how to find probate real estate listings. That said, homes subject to probate court are public knowledge, meaning anyone can find the information if they just know where to look. If you are looking for probate real estate leads, look no further than your local courthouse, as it will have records of all the nearby probate properties. You could pay for a list online, but said lists come at a price and tend to be a little delayed (they don’t have the most recent information). I personally prefer pulling probate listing at the courthouse; if you know what to do, it’s the most effective and efficient way to find a probate deal in your area — and it’s free. Upon arriving at the courthouse, ask an employee to direct you to the estate sales or probate properties. That way you won’t waste time wondering around what can be a confusing labyrinth if you aren’t prepared for what’s in store. Once you arrive, tell the clerk your specify criteria (location, dates, prices, etc.), and they should be able to provide you with the appropriate documentation that has already been filed by the probate lawyers in charge of each home that is in the system. What’s more, it’s these documents that will point you in the right direction. More often than not you’ll be able to find out everything you need to know. Most importantly, get the address, the name, the status of the property; that way you have something to work with when you initiate a marketing campaign. The content of your direct mail campaign should be tailor-made for those in control of probate properties and strike a chord with a specific audience. In the event you find a motivated seller, you may find yourself with a great

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

11 QUESTIONS TO ASK IF YOU ARE THINKING FSBO

11 questions to ask yourself to help you make an educated decision. 1. Do you have access to accurate data regarding selling prices, square footage, floor plans and amenities of other homes that have sold in your surrounding area within the last 6 months? 2. Do you know how long it has been taking to sell a home in your area? 3. Will you be available to answer phone calls and show your home to prospective buyers? 4. Will you be able to screen prospects to make sure they are qualified (or worse yet, thieves)? 5. Do you have a plan to market your home so people know it’s for sale? 6. Can you handle criticism if negative comments are made about your home? 7. Are you able to negotiate the highest sales price—either on the phone or face-to-face? 8. Do you have access to purchase contracts and all state-required disclosures? 9. Do you know how to obtain title insurance, deeds and any other legal documents needed to transfer ownership? 10.Will you be available to meet appraisers, inspectors and contractors during the process? 11.Do you understand all the fees you will be charged at closing and exactly how much you will end up

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT ARE FIXTURES IN REAL ESTATE?

What Are Fixtures In Real Estate? A critical part of any real estate transaction is the actual fixtures within the home that are required to stay with the home after closing. There have been many lawsuits filed on the basis of a homebuyer seeing something in a home prior to making an offer or prior to closing and then not finding that specific item or finding a cheap knockoff after closing. Home sellers should understand what a fixture is when selling a home and be ready to disclose up front if certain fixtures will not be remaining with the home. Homebuyers as well should understand what items are considered fixtures and what items are not so that in the case something is not really considered a fixture the buyer requests that item stay as part of the sale or is aware the item may not be there after closing. FIXTURE DEFINED Simply stated a fixture is something that is physically attached to a part of the home that is supposed to stay with the home after the sale has been completed. For example a chandelier attached to the ceiling in a dining room or foyer area is considered a fixture and should stay with the home after the sale. Bookshelves that are physically attached to walls is another example of a fixture that will generally stay with the home. Everything else that is not affixed is considered personal property of the seller and generally does not stay with the home unless specifically requested in the purchase contract. When it comes to wall mounted TVs the TV itself is not considered a fixture but the actual wall mount that holds the TV to the wall is considered a fixture. Same goes for mounted speakers unless they are physically mounted into a wall, the mounts should stay whereas the speakers belong to the home seller. The brackets that hold curtain rods stay as a fixture whereas the curtains themselves would not. While that kitchen island may look like it is firmly affixed to the kitchen floor homebuyers should be sure to double check that it is in fact secured and does not move. Sometimes with time those islands have a tendency to get stuck in place but is not technically fixed to the floor and thus could be very well taken out of the home by the seller before closing. A kitchen island that is not fixed to the floor is not a fixture that would stay with the home and the home seller could reasonably take it with them when they move out. Just because something is a fixture does not mean it absolutely has to stay with the home. In fact a home seller can specifically exclude a fixture from being part of the deal by including the proper language in the purchase contract. If the purchase contract states a particular fixture will not stay the buyer should have no expectation that it will stay. The purchase contract will ultimately control what happens with a fixture. In the event the contract is silent as to the fixture then the fixture is presumed to stay with the home after the sale has been completed. HOW TO AVOID CONFUSION OVER FIXTURES Tips For Sellers One of the easiest ways home sellers can avoid confusion over fixtures issues is to take the fixture down and not have it be seen or be mounted anywhere. For example a family heirloom chandelier that has moved with the sellers to whichever home they lived in would be best dealt with by taking down the chandelier. Once taken down a new chandelier should be put into its place and any buyers would not chandelier as fixtureeven know about the heirloom chandelier. The next best way to deal with a fixture that will not stay with the home is to let all potential buyers know that a particular fixture will not stay with the home in marketing remarks and to make sure that there is language in the purchase contract to state the same. So long as the buyers are made aware that a fixture will not stay and the purchase contract also makes note of that fact there should be no issue after the fixture is removed. Often times in this situation the seller can offer to replace the fixture with something else or let the buyer replace it with something they prefer. Another area for concern with fixtures is the home seller replacing existing fixtures with cheap equivalents without making any mention of a plan for doing so in marketing remarks and in the purchase contract. There have been cases where home sellers have replaced premium sink fixtures with low price fixtures prior to a sale closing and the buyer noticing after they have moved in decides to sue. In these scenarios buyers have the right to sue and will usually prevail in the lawsuit. Home sellers should know that homebuyers do pay attention to details such as fixtures and replacing current fixtures with cheap alternatives is a quick way to end up in court since the buyer has a right to rely on what they see in the home and expect those fixtures to be the same when they move in. Tips For Buyers Buyers should have an expectation that the fixtures they see in the home now are the ones that will be there after they move in. Buyers do need to clarify whether items like kitchen islands, bookcases, fireplace inserts, water filters and more are actual fixtures and will stay with the home. It is better for a homebuyer to clarify that an item stays and make sure it is written into the purchase offer so as to avoid any confusion. If an item is not a real fixture and is not written into the purchase agreement then the chances it is not there when the buyers move in should not come as a surprise. For items that are clearly fixtures like faucets, light fixtures screwed into the walls, attached chandeliers, built in desks and more there should be an expectation those items will stay and will be same brand/make that is currently in place. There may be a situation where the seller has to replace an itemunique sink fixture due to a defect, so long as the replacement item is considered equal to what was there in the past then that should suffice. If you as the homebuyer have some doubt as to what was there in the past and now something inferior is in its place take a look at pictures, descriptions, left over manuals and more to try and determine if in fact something was changed. Prior to seeking an attorney it might be helpful to engage with the sellers by asking your real estate agent to inquire about the fixtures you believe may be missing or have been downgraded. It may be as simple as misunderstanding between the parties. If you are certain things have been changed then depending on the costs involved getting an attorney involved may or may not be worthwhile. BOTTOM LINE Fixtures are items that are attached to the home and must be transferred with the home. Sometimes the item itself while it may appear as a fixture, may in fact not be a fixture. It is always wise for homebuyers to check and clarify if something is indeed a fixture and if not will the seller leave it after the sale. If it is important to the homebuyers that an item remain then it should be written into the purchase contract to make sure it

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

5 TYPES OF PROPERTY OWNERSHIP

Forms of Property Ownership 1. Sole Ownership Sole ownership occurs when a single person owns a complete interest in a property or asset. Ownership is conveyed from one person to another through transfer documents, or by the laws of intestate succession. If the owner passes away, his or her interest in the property or the asset is included in the estate. Estate taxes and probate fees could diminish the value of that property if no other planning has taken place. One positive is that the beneficiary of the property receives a full step-up in basis value. This means there will be no capital gain to worry about if the heir sells the asset because the heir receives the property at current market value. For example, if a child inherits his or her parents’ home when the current market value is $500,000, that child’s tax basis in the property will be $500,000, even if the parents’ basis was only $250,000 (meaning that the house was bought for $250,000). In this way, the child avoids capital gains of $250,000 if he or she sells. That said, the current market value of the home is included in the value of the deceased’s estate. 2. Joint Tenancy Joint tenancy is when two or more persons share equal, undivided interests in property. Joint tenancy is not limited to spouses – anyone can share joint interests, but there is a tax benefit when this arrangement is shared only between husband and wife (qualified joint tenancy). When an asset is owned by spouses, the value of the deceased spouse’s property passes to the surviving spouse with no probate and no tax consequences. This is similar to the process of joint tenancy with rights of survivorship (JTWROS). A joint property interest cannot be passed through traditional documents, such as a trust or a will. If one owner dies, then the ownership interest passes directly to the surviving owner. However, when the owners are not married, the entire value of the property is included in the deceased’s estate. In addition, the property must go through the probate process. This can catch people off guard, and underscores why you need to learn about the different forms of ownership. It is intuitive to think that only the deceased’s share of the assets would be included in the estate, but this is not the case if the asset is held in joint tenancy. As a result, other ownership forms must be utilized to minimize taxes and avoid probate. If you are not married to the person with whom you are planning to share joint ownership of an asset, then joint tenancy is likely not the best type of ownership for the assets. 3. Joint Tenancy With Rights of Survivorship (JTWROS) Another form of co-ownership of property is joint tenancy with rights of survivorship. Joint tenants also have an undivided right to the enjoyment of the property. When a joint tenant dies, that person’s interest passes on to the remaining joint owners. However, while a joint tenant is alive, he or she can transfer interest to another person. For example, a father leaves a vacation home to his three children, Tom, Sara, and David, with the house under a JTWROS ownership status between them. Tom dies first, and the home is now owned by Sara and David completely and equally. Tom’s interest does not pass to any heirs. When Sara dies, David owns the vacation home completely. The ownership interest passes without going through probate. There a few different tax scenarios in JTWROS. Using the above example, as each person passes, other owners receive a step-up in value only on the deceased’s portion of the property. So if the owners sell the property, they will still have capital gains on their portion of the asset. This can have serious consequences in situations where the surviving owners decide to sell the asset. 4. Tenancy in Common Tenants in common own an undivided interest in property between two or more people. However, unlike other forms of joint ownership, these interests can be owned in different percentages. A tenant in common can pass his or her interest to others with traditional documents. However, the interest does not pass on to the other owners by law – meaning, if three people own a vacation home as tenants in common and one owner dies, that person’s ownership interest does not automatically pass on to the other owners. In addition, the deceased’s interests do go through probate, unlike JTWROS. This can cause problems if the other owners wish to put the property up for sale, as they will not be able to do so until the probate process is complete. Once probate is finished, taxes are handled in the following manner: The deceased’s interest in the property goes to his or her heirs, and the heirs receive that interest at a stepped-up basis, or current market value. The value of the deceased’s interest is included in his or her estate. If the property is sold, then taxes will be based on the entire value of the property, which means that even though the owners can apportion their percentage of profit/loss on their tax returns, the IRS can come after everyone if just one owner does not pay his or her portion of taxes on the gain. 5. Community Property Currently, 10 states have community property laws: Alaska, Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington, and Wisconsin. In a community property state, any assets or income obtained during a marriage are not owned solely by either spouse. It is considered part of the “community” of the marriage, and thus each spouse owns an equal share. Each spouse can choose to leave his or her share of the assets to one or more designated heirs upon death. There are no restrictions on how each spouse can give away his or her half of the community property (upon death), and there is no law requiring one person to leave his or her half to the surviving spouse. For example, in his will, a remarried man could leave his part of the community property to his ex-wife, and there is nothing his current wife can do about it. However, if he wanted to convey ownership interest to his ex-wife or anyone else while he is still alive, he would need the consent of his current wife. Or, if a man remarries in California, while he is alive he cannot transfer interest in his house or investments held jointly with his new spouse to his children mothered by his first wife. However, he can declare in his will to have his share transfer to his children when he dies. If his new wife does not want that to happen, she has little to no recourse to prevent it. Moving to a new state that is not a community property state does not nullify the community property status, nor does separation. Legally, you are still married, and so the estranged spouse still has community property on any assets acquired. Divorce is the only thing that can sever any new assets from being included as community property. Exceptions to the community property rules are property acquired prior to a new marriage (if in a community property state – this is separate property), property acquired as an individual prior to moving to a community property state, and property obtained via gift or inheritance during the marriage. For estate purposes, the deceased’s share of community property is included in probate. If a stock portfolio is valued at $500,000, then $250,000 will be included in probate for the deceased spouse, though some states (such as California) have different rules. The beneficiary of the property interest receives a stepped-up basis on that portion of the property. It is important to remember that the beneficiary can be chosen by the deceased – this is in contrast to joint tenancy (and JTWROS) under which the surviving joint tenant (or tenants) automatically inherit the interest of the deceased. As spouses, it is not necessary to write in a rights of survivorship

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS MULTIFAMILY HOUSING?

Multifamily Housing - An Overview Crowdfunding for real estate is comprised of a number of different asset classes in which one can invest. We’ve earlier discussed many different segments of commercial real estate, and in this article we’ll focus on an especially significant one – multifamily housing. The multifamily sector is considered one of the most “defensive” areas of real estate. Apartment buildings tend to be less prone to economic cycles, since everyone needs a place to live, even when a drooping economy might cause significant vacancies in other types of commercial space. Crowdfunding allows investors access to larger multifamily complexes that offer even more stability, since individual vacancies in those properties have a more limited impact on the overall rent roll than do vacancies in smaller two- to eight-unit multiplexes. Apartment buildings represent almost 25% of the total U.S. commercial real estate market. They can vary by location (urban or suburban), by the mix of units (e.g., studio, one bedroom, or two-bedroom), and by the type of structure (high-rise or garden apartments). Garden apartments (usually two-or three-story buildings with more open space) often have a more favorable building-to-land ratio for purposes of the depreciation deduction. They also sometimes exhibit more price elasticity, meaning that rent reductions or increases are more likely to affect demand; high-rise apartments tend to be more expensive at the outset, and thus pricing is often less of an issue. Like other areas of commercial real estate, apartment buildings can be classified by quality level. “Class A” structures are generally newer buildings in better market locations. Amenities may include workout facilities, deluxe lobbies, and doormen, and the rents are reflective of these features. Class B structures are usually somewhat older buildings in locations that are less upscale, with a more limited range of amenities. Class C buildings tend to be the older buildings in the market area, usually with lower- and middle-income residents. Apartment demand comes from a number of sources, including demographic trends, home ownership and household formation rates, and local employment growth. Newly married couples and young adults moving out on their own are likely to initially rent an apartment. Demand is also driven by relocations of existing households to new areas. Also, many people who could conceivably buy a home still choose to wait until they are better able to bear the financial burden of a monthly mortgage payment. Apartment leases are typically short-term -- one to two years. At first, this might seem to be a disadvantage, but in fact a shorter lease term is an attractive feature to renters not wanting to make a long-term commitment. It also means that multifamily properties can adjust quickly to market conditions, either to quickly implement rent increases in a “hot” market or, if the demand environment is not so great, to offer short-term rent incentives in order to minimize the vacancy rate. Market rents depend on local median incomes as well as the cost and availability of home or condominiums to purchase as an alternative to renting an apartment. As with other commercial properties, apartment complexes require competent property management if cash flow is to be maximized. The tasks of rent collection, tenant relations, maintenance schedules, security, bookkeeping, and showing and renting space are all jobs that need to be done successfully to assure that the expected budget will be achieved. The management function has only grown in importance in recent years; the shift of more real estate ownership to institutions that require strong reporting, and a significant increase in both litigation and regulation, all call for managers to increase their levels of documentation. Since apartment buildings share many features with single-family homes, this type of investment is often more familiar to many investors. The cash flows derived from multifamily complexes are usually relatively steady, assuming that the property is correctly managed. Crowdfunding allows investors access to larger multifamily complexes that offer even greater stability. Assuming the proper due diligence has been done in initially valuing the property, a well maintained and favorably located apartment complex represents one of the least risky forms of real estate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

4 EXPENSIVE MISTAKES THAT LANDLORDS MAKE

No matter which way you slice it, you’re in the business of turning a profit. You didn’t become a landlord as some saintly act of giving back to society. You did it because you want to put your money to work and generate income. Unfortunately, you may be making costly mistakes that are killing your profitability. 4 Expensive Mistakes Landlords Must Avoid Successful landlords aren’t cheap, but they are definitely cost-conscious. In other words, they understand that costs add up over time, so they make smart choices to maximize revenue. For example, a $100 mistake might not seem like a big deal in isolation. But if you’re making a $100 mistake every month on three different properties that you own, you’re costing yourself $300 per month—or $3,600 per year! This can create cash flow issues and prevent you from being able to accomplish your long-term goals. There’s a time and place for spending money to set yourself up for success. However, there are also ways you can limit your expenses to maximize your revenues. Here are some expensive mistakes to avoid. 1. Investing in the Wrong Properties You make your money when you buy a property. Repeat that out loud:You make your money when you buy a property. The biggest profitability problem landlords have is created by investing in the wrong properties—or overpaying for the right ones. If you make either of these mistakes, you’ll find it nearly impossible to generate a profit that’s worth your time and energy. Bad properties have slim margins and a tendency to need lots of work. While you won’tfind a perfect rental property, you should practice greater patience and seek out ones that have the opportunity for greater gains. This will provide more margin for error. 2. Poor Tenant Screening After selecting the right property and making a smart investment, nothing matters more than tenant selection. And if you don’t have the right screening processes in place, you could seriously impact your long-term profitability. A bad tenant will cost youin multiple ways, including: Late rent checks and/or missed payments Lack of care for property (frequent maintenance issues) Violation of lease agreement terms High turnover Failing to leave the property in good condition upon moving out The list could go on and on. If you aren’t carefully screening tenants, then you’re taking a major risk. Should you end up with a bad tenant who has financial issues and a lack of regard for your property, it could cost you thousands of dollars. By enhancing your tenant screening, you’ll minimize these instances and maximize profitability. Related:Tenant Screening: The Ultimate Guide 3. Overpaying for Insurance In the pursuit of efficiency, a lot of landlords make the mistake of quickly accepting whatever insurance or personal loan products they’re offered. However, in their haste to move on, they end up overspending. It’s easier than ever to shop around and compare rates. Services like GoBear allow people to analyze and compare hundreds of products from dozens of providers in a matter of minutes. Landlords who are conscientious about saving in this area will enjoy meatier profits. 4. Selecting the Wrong Finishes Be smart with the finishes you choose for yourrental property. You want designs that look good yet don’t require expensive replacements after every tenant moves out. Carpet, for example, is cheap and easy to ruin. Stains, rips, and snags often mean landlords have to replace it between each tenant. For a little more money, you could purchase vinyl plank flooring and get a better look with greater durability and longevity. Related:3 Rental Property Expenses Investors Should Always Anticipate Take Control Over Your Cash Flow In the end, there’s a very fine line that separateshighly successful landlords/real estate investors from the average ones who barely scrape by. It comes down to purposeful cash flow management and intelligent, proactive decision-making. Profitability is the name of the game. If you aren’t doing everything you can to increase revenues and limit expenses, you’re missing out on a chance to maximize your profits. Hopefully this article has given you an idea of some of the mistakes that should be avoided so that you may make smarter decisions and seize new

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE AND TAXES

All real estate investors will benefit from taking a proactive approach to taxes. The reality is there is little you can do retroactively to impact your results once the year ends. Use the guide below to develop a plan and start implementing strategies now to deliver the best results for the next tax filing season. Here are some of the most important deductions and strategies to reduce and defer taxes that investors should be aware of: Depreciation:This is one of the biggest and most important deductions for rental property investors because it reduces taxable income without impacting cash flow. Since land cannot be depreciated, the preferred strategy is to allocate as much of the property’s purchase price to the building as possible to maximize your depreciation expense. Home Office:As a rental property owner you can dedicate a room, or a portion of a room, exclusively for home office purposes to claim what is often a significant tax deduction. The presence of an official home office also allows you to deduct local transportation expenses, including auto mileage. Repairs & Maintenance:When you incur repair and maintenance or renovation expenses, you’ll want to classify as much as possible as standard repairs and maintenance to deduct them in the year incurred. 1031 Exchanges and Opportunity Funds:These offer additional methods to defer and reduce taxes. 1031 Exchanges allow you to defer both the capital gains tax and depreciation recapture from the sale of a property and invest the proceeds into another “like-kind” property, often called “trading up.” Introduced by the Tax Cuts and Jobs Act, Opportunity Funds allow you to defer and reduce the capital gains tax from the sale of any capital

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

OWNERSHIP RIGHTS IN REAL ESTATE

A variety of rights come with real estate ownership. WATER RIGHTS Land that’s adjacent to a body of water normally carries with it certain rights relative to that body of water. A real estate agent is expected to know something about what these water rights involve. Although water rights may vary according to local law in specific situations — and a buyer should always consult an attorney to be sure of what their water rights are. LITTORAL RIGHTS Littoral rights are the rights commonly granted to owners of property that border a bay, a large lake, the ocean, or a sea. Owners of property abutting such bodies of water have an unrestricted right to use the water and ownership of the land up to the average or mean high water mark. The government owns the land below that point. Littoral rights are appurtenant to the land, which means they go with the land when you sell it. RIPARIAN RIGHTS Riparian rights are the rights of property owners who own land abutting rivers and streams. The rights vary a little depending on whether the river or stream is considered navigable, or capable of supporting commercial water traffic. When a river or steam is considered navigable, owners of property abutting the river own the land up to the edge of the water or the average or mean high water mark. The state owns the body of the water and the property under the water. On the other hand, when the river or stream isn’t navigable, the rights of owners with property abutting the river or stream extend to the centerline of the river or stream. In either case, owners of property that abuts a river or stream have a right to use the water, but they don’t have any right to contaminate the water or interrupt or change the flow of the water. WATERING RIGHTS In agricultural areas, rights to water may be controlled by special agreement between property owners. In addition, where water is scarce, the doctrine of prior appropriation may apply. The doctrine of prior appropriation is state-specific and may be used in states where water resources are limited. It basically places the right to control water resources in the hands of the state rather than individual property owners. Water rights then are granted by the state to individual property owners. You may want to check whether your state operates under this doctrine and find out about some of the details of how it is implemented. OTHER RIGHTS Some of the rights associated with owning real estate have to do with what’s going on over your head and under your feet. Ownership of land includes the ownership of the land down to the center of the earth and up to infinity. Although practical and legal limitations may inhibit your ability to actually use these rights, you nevertheless still have them. AIR RIGHTS A property owner has an unlimited right of ownership of the airspace above her land up to infinity; however, these rights may not interfere with aircraft traffic. Air rights frequently are thought of in terms of selling or transferring them to someone else. Picture a 3-story building in a downtown urban area on property zoned such that its owner can build a 20-story building on it. Although the owner doesn’t want to build those additional 17 stories, someone else does. The owner of the property can sell the air rights of the property to someone else while retaining ownership of the land and the three-story building. The new owner of the air rights could then build up to 17 more stories of building space on top of the existing 3-story building. SURFACE RIGHTS The most obvious rights that you get when you own a piece of property are the surface rights, which are the rights to do whatever is legally permitted on the surface of the property. Surface rights generally include construction of structures and physical improvements of all kinds as well as things like planting crops. Development rights, or the right to build on a piece of property, are rights that can be sold separate from the land. A county can buy development rights from a farmer to preserve the property affected by those rights for environmental purposes. The farmer/property owner is able to stay and continue farming, but he can never develop the land with houses or other structures. The farmer can even sell the property, but the right to develop the land stays with the county. Surface rights also include the right to give your neighbor a driveway easement across the surface of your property. SUBSURFACE AND MINERAL RIGHTS Because you own the property down to the center of the earth, you have the right to use the property beneath the surface or to permit others to use it. An example of subsurface rights is selling the city an underground or subsurface easement to install a sewer line across your property. Subsurface rights often are associated with mineral rights. Mineral rights are the right to take minerals out of the ground. Today these rights are associated with oil and gas leases, which are agreements that landowners make with companies to take those specific resources or products out of the ground. These leases include the right to build structures necessary to extract oil and gas from the ground. In some places where valuable minerals were found many years ago, owners sold the property but retained the mineral rights. In areas where these transactions have occurred, seeing a deed that transfers ownership of the property excluding the mineral rights is not

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE DAMAGES AND REMEDIES

This outline is intended to provide a general overview of Missouri Construction Law. While the authors have described several topics below, the discussion of any particular topic is not intended to be a total analysis of the area. I. Causes of Action and Damages A. Breach of Contract 1. Substantial Compliance and Material Breach In L.L. Lewis Const., LLC v. Adrian, 142 S.W.3d 255 (Mo. App. 2004), the court held that strict compliance with the terms of a construction contract is not required, and substantial compliance must be accepted. A building is substantially complete, so as to entitle the contractor to the full contract price, when it has reached a state of its construction so that it can be put to the use for which it was intended. A party’s performance under a construction contract is substantial, as would entitle the party to payment under contract, even though comparatively minor items remain to be furnished or performed to conform to plans and specifications of completed building. If a breach of contract is not material, the non-breaching party may not cancel the contract, but must pursue other remedies. The material breach of a contract may excuse other party’s performance. Whether a breach of contract is material so as to excuse another party’s performance is a question of fact. The five factors deemed significant in deciding whether a breach of contract is material are as follows: (1) the amount of benefit lost to injured party; (2) the adequacy of compensation to injured party; (3) the amount of forfeiture by breaching party; (4) the likelihood that the breaching party will cure; and (5) the breaching party’s good faith. Likewise, in Davis v. Clearly Building Corp., 143 S.W.3d 659 (Mo. App. 2004), the court held that literal and precise performance is not demanded and slight or trivial defects, imperfections or variations will not preclude the contractor’s recovery of the contract price if the contractor has made an honest endeavor to comply and has substantially done so. A party’s performance is deemed substantial when the deviation from the contract is slight and if the other party receives substantially the same benefit it would have from literal performance. 2. Available Damages Where an owner breaches a construction contract, the contractor may choose to sue upon the contract or in quantum meruit. Statler Mfg., Inc. v Brown, 691 S.W.2d 445 (Mo. App. 1985). The measure of damages for actions upon the contract is the contract price less the cost to complete performance. In computing the cost of completing performance, the amount saved in overhead should be subtracted for the account. Juengel Constr. Co., Inc. v. Mt. Etna, Inc., 622 S.W.2d 510 (Mo. App. 1981). Where the cause of action pleaded by the contractor is quantum meruit, three elements must be proven: (1) a benefit conferred on a plaintiff by a defendant; (2) the defendant’s appreciation of the fact of the benefit; and (3) the defendant’s acceptance and retention of the benefit in circumstances that would rendcder that retention inequitable. Green Quarries, Inc. v. Raasch, 676 S.W.2d 261 (Mo. App. 1984). Where a subcontractor sues an owner under a quantum meruit theory, non-payment by the owner to the general contractor must be pleaded by the subcontractor in order to state a claim based on unjust enrichment. Id. at 265. In a quantum meruit case, the damages are the reasonable value of the services or materials provided. Such is the price usually and customarily paid for the such services or like services at the time and in the locality where the services were rendered. There must be testimony or other evidence that the rate claimed is objectively reasonable in the marketplace. Kinetic Energy Development Corp. v. Trigen Energy Corporation, 107 S.W.3d 301 (Mo. App. 2003) Generally, in contract actions, actual damages do not need to be proven in order to recover. Runny Meade Estates v. Datapage Technologies, 926 S.W.2d 167 (Mo. App. 1996). Proof of the contract and the breach supports a finding for nominal damages at a minimum, even when proof of the actual damages is not established. Evans v. Werle, 31 S.W.3d 489 (Mo. App. 2000). In Werner v. Ashcraft Bloomquist, Inc., 10 S.W.3d 575 (Mo. App. 2000) the plaintiff, a subcontractor of Ashcraft Bloomquist, Inc. was able to establish damages simply by putting its contract in evidence and subtracting the amount it has already been paid. Ashcraft Bloomquist, which had a contract to remodel a shopping center, subcontracted the scope of removing and reinstalling all store signs for $26,700. Werner removed the signs and was paid $13,260 under the subcontract; however, before Werner could reinstall the signs, the owner decided it wanted new signs. After Ashcraft Bloomquist, Inc. was issued a deductive change order eliminating reinstallation of the old store signs, it notified Werner that the remaining portion of the subcontract was terminated. Werner then sued Ashcraft Bloomquist, Inc. for breach of contract and the court awarded $13,400 for the balance of the contract. The main source of guidance regarding termination for convenience cases originates in federal court. Federal law has generally recognized the principle that “good faith and fair dealing” is implied in every contract. Therefore, a termination for convenience is justified so long as the terminator is acting in good faith, i.e., there is a valid reason for terminating the contract and no fraud has been committed. Missouri courts are likely to follow the “good faith” standard. In Danella Southwest, Inc. v. Southwestern Bell Tel. Co., 775 F.Supp. 1227 (E.D.Mo. 1991), the federal district court for the Eastern District of Missouri found that S.W. Bell could lawfully terminate an excavator’s contract after three years despite the significant start-up costs expended by the excavator which had calculated its investment would not be recovered until six years of work. The excavator could not recover its front end costs nor could it recover lost profits. However, in Forney v. Missouri Bridge and Concrete, 112 S.W.3d 471 (Mo. App. 2003), the Court of Appeals rejected a subcontractor’s attempt to rely on the Werner decision to support its contention that it was owed the balance of the price of its subcontract because the subcontractor failed to present sufficient evidence of its lost profits. Id. at 475. B. Negligence 1. Privity of Contract Generally, in the context of construction contracts a party is not liable in negligence to a third party with whom the party is not in privity. Summer Chase Second Addition Subdivision Home Owners Ass. v. Taylor-Morley, Inc., 146 S.W. 3d 411 (Mo. App. 2004). In Summer Chase, a subcontractor that constructed an allegedly defective retaining wall could not be held liable for negligent construction to the homeowners association with which it was not in privity of contract, where only damage complained of was economic costs of making repairs to the wall. However, Missouri courts will consider the policy concerns of exposing the defendant to an unlimited, indeterminate or excessive number of potential claimants and depriving parties’ control over their contracts. Presuming neither of these concerns are present, the courts will consider the extent to which the transaction was intended to affect the plaintiff, the foreseeability of harm to the plaintiff, the degree of certainty that the plaintiff suffered injury, the closeness of the connection between the defendant’s conduct and injury sustained, the moral blame attached to the defendant’s conduct, and the policy of preventing future harm. 2. Design Professionals The theory of recovery against a design professional can be expressed as either a contract claim or a tort claim because the alleged conduct can be both a breach of contractual obligations and a breach of tort duties. Generally, a design professional is required to provide plans and designs that are prepared with a reasonable degree of technical skill. A design professional also has a duty to the client to use that degree of ordinary and reasonable skill that another design professional would use in the same or similar circumstance. Rowe v. Moss, 656 S.W.2d 318 (Mo. App. 1983). A design professional may be liable to a party to which he or she is not in privity when the following factors are present: the extent to which the transaction was intended to affect the plaintiff, the foreseeability of harm to plaintiff, the degree of certainty that the plaintiff suffered injury, the closeness of the connection between the defendant's conduct and the injury suffered, the moral blame attached to defendant's conduct, and the policy of preventing future harm. Westerhold v. Carroll, 419 S.W.2d 73 (Mo. 1967). However, the Missouri Court of Appeals has indicated that any extensions of liability for one not in the privity with the claimant must be done on a “case by case basis” with “careful definition” Hardcore Concrete, LLC v. Fortner Ins. Services, Inc., 220 S.W.3d 350 (Mo. App. 2007). Recently, the Missouri Court of Appeals ruled on two issues of first impression in a construction contract case involving a school district and its design professionals. In Penzel Construction Company, Inc. v. Jackson R-2 School District, 2017 WL582663 (Mo. Ct. App., February 14, 2017), the general contractor, under a liquidating agreement with the electrical subcontractor, sued the School District based on breach of implied warranty for furnishing “defective and inadequate plans and specifications.” The School District filed a third-party claim against its architect and the company to which the architect subcontracted the electrical plans and specifications. Penzel, the general contractor, relied on the Spearin Doctrine to establish a breach of contract action against the School District. Under the Spearin Doctrine, a governmental entity impliedly warrants that if the plans and specifications are followed, the resulting product will not be defective or unsafe. If the product is defective or unsafe, the performing contractor(s) is not liable for the consequences. In this case, Penzel argued that it could use the Spearin Doctrine as a sword rather than a shield, i.e., offensively, and was entitled to an award of damages from the School District as a result of delays and additional costs incurred by the electrical subcontractor due to inadequate and defective plans and specifications. The School District argued that the Spearin Doctrine could not be used offensively to support a breach of contract action. The court ruled that the Spearin Doctrine can serve as a basis for a breach of contract against a public entity, damages resulting from delays are compensable under such a theory, and a contractor, under certain circumstances, can use the total cost method or the modified total cost method in determining its delay damages. The court held that “[e]ffectively, the Spearin Doctrine places the risk of loss stemming from defective plans and specifications on the owner who renders the plans to the contractor…The owner in a construction contract is better positioned to assess the accuracy and adequacy of the project’s plans and specifications; therefore, it is better positioned to prevent losses from ever occurring.” The court held that “[p]lacing the burden on contractors to ensure the adequacy of an owner’s plans…is incongruent with contract principles and general notions of fairness.” The Penzel case is especially significant for construction practitioners and contractors which deal with delay claims resulting from, among other things, perceived ambiguities in architectural plans and specifications requiring, among other things, an extensive RFI process. Very few published cases examine acceptable damages in the context of delay claims as many of these types of cases are determined in the federal administrative or arbitration forums. The Penzel case comprehensively examines the methodology necessary to prove delay damages and, in the context of this particular case, allows use of the total cost methodology which has traditionally been deemed inferior and dubious. The outcome of Penzel is that both owners and design professionals are likely to see an uptick in cases in the state of Missouri and other states which adopt Penzel as good law. C. Breach of Warranty 1. Breach of Implied Warranty Missouri will imply a warranty of quality and fitness to the builder-contractor in certain situations. Missouri courts have found warranties when houses were defectively built. Hershewe v. Perkins, 102 S.W.3d 73 (Mo. App. 2003). However, the warranty is defined narrowly. The implied warranty will only apply to latent structural defects. A Missouri court has interpreted this term to apply to defects in items which are an integral part of the structure or immediately supports it. Schulze v. C & H Builders, 761 S.W.2d 219 (Mo. App. 1988). However, privity between the plaintiff and the design professional is necessary to successfully maintain the warranty claim. O’Dell v. Custom Builders Corp., 560 S.W.2d 862 (Mo. 1978). Implied warranties of quality and fitness apply in the purchase of a new home by the first purchaser from a vendor-builder; this theory of recovery is a limited departure from the strict application of the doctrine of caveat emptor. Summer Chase Second Addition Subdivision Home Owners Ass. v. Taylor-Morley, Inc., 146 S.W. 3d 411 (Mo. App. 2004). With respect to alleged breach of implied warranty of fitness for particular use of house plans supplied to plaintiffs by builder, in light of the details specified therein, a reasonable construction of the contract plans was that builder, holding itself out as expert in design and providing that design, would determine necessity for modification of the design and make any changes necessary for the particular lot.,. O’Dell v. Custom Builders Corp., 560 S.W.2d 862 (Mo. 1978). D. Misrepresentation Privity of contract is not required to be liable for negligent misrepresentation. AAA Excavating, Inc. v. Francis Construction, Inc., 678 S.W.2d 889 (Mo. App. 1984). The court found that privity was not an element of the claim for negligent misrepresentation. If a party supplies false information upon which a party relies causing a pecuniary loss, they will be liable for the loss. Fraud might be alleged under similar circumstances when a party fails to provide all applicable information and conditions expected are in fact different than encountered by the contractor. To state a claim for negligent misrepresentation, a plaintiff must plead facts that establish: (1) the speaker supplied information in the course of his or her business; (2) because of a failure by the speaker to exercise reasonable care, the information was false; (3) the information was intentionally provided by the speaker for the guidance of a limited group of persons in a particular business transaction; (4) the listener justifiably relied on the information; and (5) due to the listener’s reliance on the information, the listener suffered a pecuniary loss. Summer Chase, supra. E. Fraud A party who fraudulently induces another to contract and then also refuses to perform the contract commits two separate wrongs, so that the same transaction gives rise to distinct claims that may be pursued to satisfaction consecutively. Davis v. Clearly Building Corp., 143 S.W.3d 659 (Mo. App. 2004). A victim of fraud can either return what he purchased or keep what he purchased and sue for damages measured as the difference between its value as represented and its true value as of the date of purchase. This is known as the doctrine of election of remedies. The purpose of the election of remedies doctrine is to prevent double recovery for a single injury. The doctrine of election of remedies maintains that one may not obtain both damages for fraudulent inducement to enter into a contract and a remedy prohibiting the enforcement of the contract. F. Unjust Enrichment Elements of a claim for unjust enrichment are: (1) a benefit conferred upon the defendant; (2) appreciation by the defendant of the fact of such benefit; and (3) acceptance and retention by the defendant of that benefit under circumstances in which retention without payment would be inequitable. In construction cases, a party other than one in privity of contract with the owner must plead non-payment by the owner in order to state a claim for unjust enrichment. Mays-Maune & Associates, Inc. v. Werner Brothers, Inc., 139 S.W.3d 201 (Mo. App. 2004). G. Tortious Interference with Contract Unlike many jurisdictions, Missouri law allows design professionals to be sued for tortious interference with a contract. Killian Constr. Co. v. Jack D. Ball & Assoc., 865 S.W.2d 889 (Mo. App. 1993). There does not need to be a contract; however, there must be reasonable expectations of economic advantage or commercial relations. A design professional may be able to interfere with a contract between a contractor and owner if there is justification. H. Strict Liability Claims The economic loss doctrine which prohibits liability for purely economic losses due to defects in the building also applies to strict liability claims. I. Indemnity Claims: Missouri’s Anti-Indemnity Statute Missouri legislated against “broad form indemnity” in public and private construction contracts in 1999. § 434.100, R.S.Mo. Such clauses, customarily found in agreements between the owner and the general contractor and between the general and its subcontractors, compel either the general to indemnify the owner or a subcontractor to indemnify the general for the owner’s or general’s own negligence or intentional acts or omissions. The Missouri legislature has not invalidated subrogation waivers nor does the current statute void any provisions in a construction contract which requires a party to provide liability coverage as an additional insured for another. In fact, Missouri’s anti-indemnity statute expressly allows a construction contractor to name another as an “additional insured” on its insurance coverage. The statute legislating against broad form indemnification does not apply to, among other things, “an agreement containing a party’s promise to indemnify, defend or hold harmless another person, if the agreement also requires the party to obtain specified limits of insurance to insure the indemnity obligation and the party had the opportunity to recover the cost of the required insurance in its contract price; provided, however, that in such case the party’s liability under the indemnity obligation shall be limited to the coverage and limits of the required insurance.”434.100.2(8), R.S.Mo.and A Commercial General Liability (CGL) policy provides a party to a construction contract with the greatest opportunity to avoid the broad reach of the Anti-Indemnity Statute. Terry J. Galganski, The Insurance Exceptions of the Anti-Indemnity Statute, THE JOURNAL OF THE MISSOURI BAR, February-March 2002. This opportunity is usually implemented by selecting a standard “additional insured” endorsement. Id. II. Other Damages Issues A. Statute of Repose/Statute of Limitations Any action to recover damages for personal injury, property damage or wrongful death arising out of a defective or unsafe condition of any improvement to real property must be commenced within ten (10) years of the date on which the improvement was completed. § 516.097, R.S.Mo. All actions upon contracts obligations or liabilities must be commenced within five (5) years of the breach. § 516.120, R.S.Mo. B. Economic Loss Doctrine The economic loss doctrine states that where the only damage complained of is an economic loss resulting from a defect in an item built pursuant to a contract, a negligence action does not lie. Summer Chase Second Addition Subdivision Home Owners Ass. v. Taylor-Morley, Inc., 146 S.W. 3d 411 (Mo. App. 2004). If relief is available to a plaintiff through contract for damage to an item constructed pursuant to a contract, an action for negligence is improper. Korte Const. Co. v. Deaconess Manor Assc., 9927 S.W.2d 395, 404-05 (Mo. App. 1996). In Sharp Bros. Contracting Co. v. American Hoist & Derrick Co., 703 S.W.2d 901 (Mo. banc 1986), a contracting company brought suit against a crane manufacturer for property damage which occurred when the crane’s counterweight broke and crushed the crane’s cab. The court held that a plaintiff cannot recovery on a theory in tort where the only damage is to the subject product or construction when there is no personal injury or other item of damage. Id. In Summer Chase, supra, the court reaffirmed the economic loss doctrine in Missouri. The plaintiff filed suit against several defendants alleging a defectively designed and constructed retaining wall. In one count of the petition, the plaintiff asserted negligent construction against the general contractor and its subcontractor. The defendants challenged the petition based on the economic loss doctrine and the trial court dismissed the negligence claims and stated that “under these circumstances, the nature of the injury claimed by [plaintiff] precludes liability.” Id. C. Liquidated Damages Liquidated damages provisions are generally enforceable unless the damages are considered a penalty rather than a reasonable estimation of the actual damages the owner would face as a result of a delay in the project’s completion. Taos Const. Co., Inc. v. Penzel Const. Co., Inc., 750 S.W.2d 522 (Mo. App. 1988). D. Missouri’s “Prompt Payment Act” Missouri’s Public Prompt Payment Act, codified at § 34.057, R.S.Mo., promotes timely payment of contractors, subcontractors, and suppliers on contracts with public owners for public work construction projects. Leo Journagan Const. Co. v. City Utils., 116 S.W. 3d 711, 724 (Mo. App. 2003). This law “requires public owners and contractors to make prompt payments and limits amounts withheld as retainage.” Envtl. Prot., Inspection, Consulting, Inc. v. City of Kansas City, 37 S.W.3d 360, 369 (Mo. App. 2000). “The Prompt Payment Act is considered a remedial statute and therefore requires liberal interpretation.” Leo Journagan Const. Co. v. City Utils.at 725. “The threshold requires of this act are the payment due dates, which are the events that trigger the remedies available for untimely payment.” Id The Act provides that general contractors shall be paid by the public owner 30 days after receipt of invoice. 34.057.1(1). General contractors shall pay subcontractors 15 days after receipt of payment from the public owner. 34.057.1(7). A 2014 amendment of the Act requires the public owner to also pay engineers, architects, landscape architects, and surveyors within 30 days. 34.057.5. In the 2014 amendment, the legislature also capped retainage which may be withheld from a general contractor, subcontractor, or lower tier contractor on a public works project at 5%. 34.057.1(1). A higher percentage not to exceed 10% may be withheld only on a public works contract less than $50,000. Id. The Prompt Payment Act provides that retainage shall be released to an early-performing subcontractor if the public owner, architect or engineer, and the general contractor believe that the subcontractor has completed its work and the subcontractor can be released without risk to the public owner. 34.057.1(3). The Act also allows a public owner to reduce or eliminate retainage if the owner believes work is “proceeding satisfactorily.” Id. Upon substantial completion and acceptance of the work, the public owner is now required to pay 98% of retainage to the general contractor. 34.057.1(4). If the public owner fails to accept the work as substantially complete, the owner is required to give written explanation within 14 days to the general contractor. Id. If no such written explanation is provided, 98% of the retainage must be paid within 30 days. If the public owner fails to pay the retainage or is in default under any other payment due under the contract, interest at 1.5% per month shall be paid on the amount of any such unpaid amount. 34.057.1(5). Under Missouri’s Private Prompt Payment Act, any party to a private construction contract is required to make all “scheduled payments.” 431.180, R.S.Mo. In the event the contract does not provide for a payment schedule, the Act does not apply. Where the contract does provide for scheduled payments and such payments are not made, the damaged party may bring an action and seek the principal amount along with interest at 1.5% per month and reasonable attorneys’ fees. The trial court has the discretion whether to award interest and/or attorneys’ fees. Under Missouri law, retainage on a private construction project may not exceed 10% unless additional amounts are required “to protect the owner’s interest.” Such retainage shall be held “in trust” for the benefit of the general contractor. 436.303, R.S.Mo. General contractors, subcontractors, and lower tier contractors may tender substitute security in lieu of withholding of retainage. 436.306, R.S.Mo. Substitute security may consist of a certificate of deposit, a retainage bond, or an irrevocable letter of credit. 436.312, R.S.Mo. Like the public act, an early completing subcontractor may apply for release of retainage if the work has been “satisfactorily completed” and the owner is no longer considered at risk. 436.321, R.S.Mo. E. Prejudgment Interest Prejudgment interest is permitted by statute. § 408.020, R.S.Mo. states: Creditors shall be allowed to receive interest at the rate of nine percent per annum, when no other rate is agreed upon, for all moneys after they become due and demand for payment is made… . However, § 408.030, R.S.Mo. allows parties to contract for an increased rate of interest, not to exceed ten percent per annum. Furthermore, § 408.092, R.S.Mo. allows attorney’s fees to be recovered in actions enforcing credit agreements, provided that the fees are included in the written credit agreement, do not exceed fifteen percent of the outstanding credit balance, and the attorney is licensed to practice in Missouri and a member of the Missouri bar. A liquidated claim for which prejudgment interest is authorized by statute is one which is fixed and determined or easily determined by computation or some recognized standard. Baris v. Layton, 43 S.W.3d 390 (Mo. App. 2001). The entitlement to prejudgment interest accrues only after a demand for payment is made. While the form of the demand is not required to be in any certain form, it must be definite regarding the amount and time. Id. F. Lost Profits A contractor is entitled to recover the specified amount of the contract with the owner because contract prices include profit and overhead. Dave Kolb Grading, Inc. v. Lieberman Corp., 837 S.W.2d 924 (Mo. App. 1992). Whether a subcontractor may recover its profit and overhead and the extent to which they may do so is determined by the type of claim. In a mechanic’s lien situation, even though the measure of damages is not the subcontractor’s contract price, a lien claimant subcontractor still may recover profit and overhead in addition to the reasonable value of its labor, materials, and services in a damages action. In Fuhler v. Gohman & Levine Constr. Co., 142 S.W.2d 482 (Mo. 1940) the lien claimant was a subcontractor who was permitted to recover not only reasonable compensation for his labor and material, but allowed to recover a percentage for profit and overhead. However, the subcontractor was required to show that profit and overhead were included in the value of the labor and materials and that the amount sought was reasonable. In order to recover damages for lost profits and overhead, the plaintiff must submit evidence that will provide a basis for estimating the lost profits with reasonable certainty without resort to speculation. Manor Square, Inc. v. Heartthrob of Kansas City, Inc., 854 S.W.2d 38 (Mo. App. 1993). The amount of lost profits is the same as the amount of net profits that plaintiff would have realized if the business had not been interfered with or stopped due to the actions or inactions of the defendant. Refrigeration Industries, Inc. v. Nemmers, 880 S.W.2d 912 (Mo. App. 1994). See also Gorman v. Walmart Stores, Inc., 19 S.W.3d 725 (Mo. App. 2000). G. Punitive Damages Missouri courts confine punitive damages to cases of "willful wrongdoing, or recklessness which is the legal equivalent of willfulness." Menaugh v. Resler Optometry, Inc., 799 S.W.2d 71, 75 (Mo. banc 1990). Punitive damages are imposed to punish and deter; and the remedy should be applied sparingly. Rodriguez v. Suzuki Motor Corp., 936 S.W.2d 104, 110 (Mo. banc 1996). Punitive damages may be awarded in a negligence case only if the defendant, at the time of the negligent act, "knew or had reason to know that there was a high degree of probability that the action would result in injury." Alack v. Vic Tanny Intern. of Missouri, Inc., 923 S.W.2d 330, 338 (Mo. banc 1996), quoting Hoover's Dairy, Inc. v. Mid-America Dairymen, Inc., 700 S.W.2d 426, 436 (Mo. banc 1985). The defendant must have displayed complete indifference to, or conscious disregard for, the safety of others. Id. at 339. The evidence must meet the clear and convincing standard of proof. Rodriguez, 936 S.W.2d at 111. H. Attorney’s Fees Attorney’s fees are recoverable only by statute or contract terms. Attorney’s fees are special damages which must be pled specifically in order to recover. In addition, facts showing entitlement to attorney’s fees must also be pled. Reeves v. Kessler, 921 S.W.2d 16 (Mo. App. 1996). In awarding attorney fees, the trial judge is considered to be the expert on the reasonableness of the amount of fees awarded, and the judge’s decision to award fees is rarely reviewed by the appellate courts absent finding an abuse of discretion. Evans v. Werle, 31 S.W.3d 489, 493 (Mo. App. 2000). I. Expert Fees and Costs In George v. Eaton, 789 S.W.2d 56, 61 (Mo. App. 1990), the Western District Court of Appeals determined that the then-existing language of Missouri Rule of Civil Procedure 56.01(b) (4) (b) required a "party seeking to depose an expert witness . . . to pay a reasonable fee for time spent in preparation for the deposition," depending on the trial court's consideration of certain factors. Id. at 61-62. In relevant part, the Rule stated "unless manifest injustice would result, the court shall require that the party seeking discovery pay the expert a reasonable fee for responding to discovery by deposition." Id. The Eastern District, ten years later, found the application of George to be limited because the relevant language of that Rule is more restrictive. The relevant provision of Rule 56.01(b)(4)(b) applicable now states: "unless manifest injustice would result, the court shall require that the party seeking discovery from an expert pay the expert a reasonable hourly fee for the time such expert is deposed." This language expressly limits the payment of a deposed expert witness's fees to fees for hours spent in the deposition and does not include the payment of fees for any time the expert witness spent preparing for the deposition. Fairbanks v. Weitzman, 13 S.W.3d 313 (Mo. App. 2000). J. Liquidated Damages The accepted and general rule in Missouri is that liquidated damages clauses in construction contracts are valid and enforceable. However, penalty clauses are invalid. Liquidated damages are an amount of compensation that the parties agree at the time of contracting will represent the damages incurred in the event of a breach. Penalty clauses are designed to punish a party for breaching the contract. Paragon Group, Inc. v. Ampleman, 878 S.W.2d 878 (Mo App. 1994). Missouri has adopted the Restatement of Contracts rules on liquidated damages which define the difference between liquidated damages clauses and penalty clauses. For a liquidated damages clause to be valid: 1. The amount agreed upon must be a reasonable prediction of the harm that will be caused by the breach. To be considered reasonable, a court stated that “it must not be unreasonably disproportionate to the amount of harm anticipated when the contract was made.” Burst v. R.W. Beal & Co., 771 S.W.2d 87, 90 (Mo. App. 1989). 2. The harm must be of a kind that is difficult to accurately estimate. It has been held by Missouri courts that actual damages for the breach of a construction contract are uncertain and difficult to prove. See e.g. Paragon Group, Inc. v. Ampleman, supra. 3. The party claiming liquidated damages must show some harm or damage resulting from the breach in order to trigger the liquidated damages clause. Thus, Missouri courts require the plaintiff to establish (1) that a breach occurred and (2) damages have actually accrued as a result of the breach. Strouse v. Starbuck, 987 S.W.2d 827 (Mo. App.1999) 4. A party may recover either liquidated damages or actual damages but not both as compensation for the same breach. Liquidated damages are simply a stipulated amount of actual damages as a replacement for the need to prove, with specificity, the actual amount of damages. K. Diminution in Value In recent years, Missouri appellate courts have found that the facts and circumstances of construction cases, where there is substantial but defective performance by a contractor, dictate a measure of damages different from the measure of damages in customary cases involving injury to real property. "In real property cases, courts generally utilize the 'diminution in value' test, turning only to the 'cost of repair' test when it constitutes a lower amount of recovery." Business Men's Assur. Co. of America v. Graham, 891 S.W.2d 438, 450 (Mo. App. 1994), affirmed after remand and transfer 984 S.W.2d 501 (Mo. banc 1999). "In defective construction cases, on the other hand, the 'cost of repair' test is favored, so that courts normally determine the damages by assessing the cost of correcting the defects or supplying the omissions." Id. However, a court cannot apply cost of repair damages until after it hears evidence of value. Flora v. Amega Mobile Home Sales, Inc., 958 S.W.2d 322, 324 (Mo. App. 1998). Compare White River Dev. v. Meco Systems, 806 S.W.2d 735, 741 (Mo. App. 1991) (holding that the general rule for damages in construction cases is the cost of repair, and that diminution in value is only appropriate where the cost of reconstruction would involve unreasonable economic waste) and Lawing v. Interstate Budget Motel, Inc., 655 S.W.2d 774, 778 (Mo. E.D. 1983)(holding that the general rule for damages in construction cases is the cost of repair) with Tull v. Housing Auth. of City of Columbia, 691 S.W.2d 940, 942 (Mo. App. 1985) (holding that, in non-construction situations, the general test for damages is diminution in value). III. Insurance Coverage for Construction Claims In St. Paul Fire & Marine Ins. Co. v. Building Constr. Enters., Inc., 484 F. Supp. 2d 1004 (W.D. Mo. 2007), affirmed the holding in St. Paul Fire & Marine Ins. Co. v. Building Constr. Enters., Inc., 526 F.3d 1166 (8th Cir.) that the substandard work performed by the insured contractor’s subcontractor on a governmental contract is not an “accident” and thus not an “occurrence” under the policy. Therefore, in St. Paul, there was no coverage for the insured’s cost of performing required repairs in order to satisfy its contract. In Taylor-Morley-Simon, Inc. v. Michigan Mut. Ins. Co., 645 F. Supp. 596 (E.D. Mo. 1986), aff'd, 822 F.2d 1093 (8th Cir. 1987), the settling of a slab caused by an insured homebuilder's negligence was ruled an occurrence despite allegations of breach of warranty against the insured. In Columbia Mut. Ins. Co. v. Gary Epstein, et al., 239 S.W.3d 667 (Mo. App. E.D. 2007), the purchase of defective concrete by the insured contractor was an occurrence; therefore, the loss of use of framing and the sub-floor that had to be replaced as a result of the defective concrete was covered property damage. In National Union Fire Ins. Co. of Pitts., Pa. v. Structural Sys. Tech., Inc., 964 F.2d 759 (8th Cir. 1992), the court upheld coverage for the damage to a radio tower that collapsed due to the faulty workmanship of a subcontractor under the subcontractor exception to Exclusion l, the “Your Work” Exclusion. In Amerisure Mut. Ins. Co. v. Paric Corp., 2005 WL 2708873 (E.D. Mo. Oct. 21, 2005), the faulty workmanship of a subcontractor of the insured general contractor was an “occurrence” under the general contractor's CGL policy. Furthermore, the court upheld coverage pursuant to the subcontractor exception to Exclusion l, the “Your Work” Exclusion, as to the faulty workmanship of a subcontractor that installed EIFS. Missouri courts have typically taken an insurer-friendly approach in concluding that a simple breach of contract for poor construction does not constitute an occurrence. Contrary to the position often taken by Missouri courts and liability insurance carriers in Missouri, the Missouri Supreme Court in D.R. Sherry Construction, LTD v. American Family Mutual Insurance Company, 316 S.W.3d 899 (Mo. banc 2010), seems to have taken a large step in clarifying that negligent construction (e.g., construction defect) claims are in fact occurrences and held that progressive damage which begins during the policy period is an occurrence even though the damage was not apparent until after the policy period has expired. IV. Mechanic’s Liens Mechanic’s liens did not exist under Missouri common law. Maran-Cooke, Inc. v. Purler Excavating, Inc., 585 S.W.2d 38 (Mo. banc 1979). Rather, they are solely creatures of statute. State ex rel. Springfield Underground, Inc. v. Sweeney, 102 S.W.3d 7, 9 (Mo. banc 2003). In Missouri, the construction mechanic’s lien is codified at § 429.010, R.S.Mo., et.seq.. This statute grants a lien to any person who performs any “work or labor” or who furnishes any material, fixtures, engine, boiler, machinery, tree, shrubs, bushes, other plants, or outdoor irrigation systems for any “building, erection, or improvements upon land, or for repairing the same.” The work or materials must be supplied in accordance with a contract with the owner of the property or the owner’s “agent, trustee, contractor, or subcontractor.” The theory behind most construction liens is than an unpaid contractor should be entitled to recoup the value of its work from the improvements the contractor has made to the owner’s real estate. Arthur Morgan Trucking Co. v. Shartzer, 174 S.W.2d 226, 227 (Mo. App. 1943). Therefore, actually physical improvement to the property is an essential element of a mechanic’s lien. Independent Plumbing & Heating Supply Co. v. Glennon, 287 S.W. 824 (Mo. App. 1926). In order to create an enforceable mechanic’s lien, one must first satisfy the statutory prerequisites. “Original Contractors” must put the owner of the property on notice that mechanic’s liens are possible by explicitly providing the language contained in § 429.012.1, R.S.Mo. This Notice to Owner requirement is a condition precedent to a lien by the “Original Contractor” and is considered jurisdictional. Courts have dismissed lien claims sua sponte when the Notice to Owner was not given timely. Bledsoe Plumbing & Heating, Inc. v. Brown, 66 S.W.3d 169, 171-72 (Mo. App. 2002). A subcontractor’s notice requirement is found is § 429.100, R.S.Mo. A subcontractor must serve a notice of its intent to file a mechanic’s lien on the owner at least ten days before filing the lien. Id. The notice must include the legal description of the property, the amount owed, and from whom the money is owed. Id. Service of the subcontractor’s ten-day notice on the owner may be accomplished “by any officer authorized by law to serve process in civil actions, or by any person who would be a competent witness.” § 429.100, R.S.Mo. See also Fulkerson v. W.A.M. Invs., 85 S.W.3d 745 (Mo. App. S.D. 2002) (personal service is required). A mechanic’s lien must be perfected by filing same with the Clerk of Court in the county in which the property is located within 6 months of the last date labor and/or materials were supplied to the project. 429.080, R.S.Mo. The last date does not include repair of work already completed, punch list, warranty work, or unnecessary work. The mechanic’s lien statement must include the legal description of the property, a proper description of the parties, a “just and true” account, and a verification by sworn oath. Id. A “just and true account” typically includes the costs of labor, materials, equipment, and supplies, employee benefits attributable to the project, insurance attributed to the project, and taxes together with overhead and profit. Once filed, mechanic’s liens must be enforced by the filing of a lawsuit to enforce the lien within six months after the lien was filed. 429.170-190, R.S.Mo.; H.B. Deal Constr. Co. v. Labor Disc. Ctr., Inc., 418 S.W.2d 940 (Mo. 1967). Mechanic’s liens lawsuits must also be prosecuted without delay to be enforceable. Hinchey v. Sentinel Fed. Sav. & Loan Ass’n, 584 S.W.2d 146 (Mo. App. 1979). Missouri’s mechanic’s lien statute provides unique rules for perfecting liens on new residential property (429.016, R.S.Mo.) and for the repair, remodeling, or addition to owner-occupied residential property of four units or less (429.013, R.S.Mo.). Care must be taken to comply with the unique notices and procedures which are required to properly perfect such residential liens. Missouri law also provides unique notice requirements and procedures for perfecting liens governing rental equipment. 429.010.2,

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

RADON

What Is Radon? How does radon affect your health? What are the symptoms of radon exposure? How are you exposed to radon? How can I protect myself? Radon is a radioactive gas you can't see, feel, taste, or smell. It starts out as uranium, a heavy metal found in the ground and most rocks on the planet. When uranium decays, it turns into another metal called radium. When radium breaks down, it becomes radon. Radon gas leaves the soil and becomes part of the air and water. It can be in the air around you, but it’s usually in very small amounts that aren't harmful. Large amounts of radon cause health problems. Even though it's a natural gas that comes from the earth, it can be toxic if you breathe in a lot of it over a long time. But there are some reliable ways you can keep your exposure low. How does radon affect your health? When you breathe in radon, it gets into the lining of your lungs and gives off radiation. Over a long time, that can damage the cells there and lead to lung cancer. Radon is the second biggest cause of lung cancer after cigarette smoking. If you breathe a lot of radon and smoke, your chance of getting lung cancer is very high. Some research has linked radon to other kinds of cancer, like childhood leukemia, but the evidence for that isn’t as clear. What are the symptoms of radon exposure? Unlike with other gases like carbon monoxide, you won’t have symptoms of radon poisoning right away. Instead, health problems from the exposure, such as lung cancer, show up after many years. Lung cancer may start as a nagging cough, shortness of breath, or wheezing that doesn't go away. Other symptoms include coughing up blood, having chest pain, or losing weight without trying. If you notice any of these symptoms, call your doctor. There are no routine medical tests that can tell you if you’ve breathed in too much radon. And no treatments will clear it from your body. But if you think you may have been exposed, talk to your doctor about whether you should have tests to check for signs of lung cancer. How are you exposed to radon? Buildings, like your home, school, or office, are built into the ground. If there are cracks in floors or walls, or small openings for pipes or wires that aren't fully sealed, radon can escape the soil and get indoors. Though it can get trapped in any enclosed area, radon levels are often highest in basements and crawl spaces because they're closest to the ground. Some building materials, like concrete and wallboard, are made from natural substances that give off radon. So are granite countertops. But the amount these sources give off is mostly low. They might raise the radon level in your home, though not likely to dangerous levels. Your job may put you in contact with radon, especially if you work underground, or with phosphate fertilizers. Radon is also in water that comes from lakes, rivers, and reservoirs, but most of it is released into the air before the water gets to you. If your home's water supply comes from a well or another groundwater source, it may have more radon than water from a treatment facility. How can I protect myself? You can test your home or office with a radon kit. Some will measure levels for a few days, and others can gather the data for at least 3 months. You leave a small measuring device in a room, and then send it to a lab. You can also hire a professional to test your home or workplace for you. The Environmental Protection Agency website has a list of approved contractors in each state. Radon is measured in picocuries. Anything higher than 4 picocuries, or 4 pCi/L, requires action. If you get these results, run another short- or long-term test to be sure. If the levels are still high, contact a certified professional about making repairs to your home or office. This may include sealing cracks or installing a ventilation system so radon doesn’t get trapped

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CONTRACT CONTINGENCIES

For those who aren’t familiar, a contingency is a statement (a “stipulation” it’s sometimes called) that is added to your contract that will allow you the right to back out of the deal without penalty under specific circumstances. Contingencies are often used by buyers who aren’t 100% convinced they’re ready — or able — to buy the property, and want some extra time to “get their ducks in a row.” Before I get into some of the rules for using contingencies in your contracts, I wanted to review the most common contingencies you’ll find in a real estate purchase offer: Financing Contingency: This is one of the most common types of contingency. Basically, it says that your offer is contingent on you being able to procure financing for the property. It will often be specific about the type of financing (FHA, Conventional Loan, etc), the terms (interest rate, down payment, etc), and the time period. For example, a typical financing contingency might read as follows: Buyer shall have 20 days from the date of binding agreement (“Financing Contingency Period”) to determine if buyer has the ability to obtain a loan with the following terms: * Loan Amount: 96.5% of the total purchase price of the property * Term: 30 years * Interest Rate: No Higher Than 5.25% * Loan Type: FHA This agreement shall terminate without penalty to Buyer if Buyer is unable to obtain the loan described above and notifies seller in writing of this event within the Financing Contingency Period. Any Buyer who is planning to use financing to purchase a property should include a Financing Contingency; worst case, your financing will fall through, but you’ll still have the option to back our of the deal without penalty. Appraisal Contingency: This contingency basically says either: * If you can’t get an appraisal on the property that is at least as high as the purchase price, you can back out of the deal; or * If you can’t get an appraisal on the property that is at least as high as the purchase price, you can ask the Seller to drop the price, and if he refuses, you can then back out of the deal. The appraisal contingency often goes hand-in-hand with the financing contingency, as the lender will not fund the loan above the appraised price. Inspection Contingency: Also known as a “Due Diligence Period” or a “Due Diligence Contingency,” this contingency says that the Buyer has a set amount of time (often ranging from 3-14 days), where he can do whatever he needs to do to ensure that he wants to buy the property. This might include inspections, appraisals, contractor walk-throughs, etc. If at any time within that inspection period the Buyer chooses to back out of the deal for any reason, he can. This is a common contingency for anyone who is not intimately familiar with inspecting properties and coming up with rehab cost estimates. The Buyer can use this time period to get a full property inspection and get bid from contractors to do any necessary work. If any surprises turn up, he can then either ask for a discount (or repairs) or just back out of the deal. Selling A Current Property: This one has become more prominent these days among homeowners looking to upgrade their current house. This contingency basically says that the Buyer has a right to back out of the deal if he can’t sell his current residence to someone else. Generally, the contingency will call out a time period for which the contract is in effect, thereby giving the Buyer that amount of time to sell his other property. This contingency is not generally used by investors, but is very common among homeowners going from one house to another. While there are literally thousands of other possible contingencies that you might see or use in a real estate contract, these are the most common, and many of the others are based on one of these. Some others that you might come across at some point include: Termite Letter Contingency Lead Paint Test Contingency Deed Contingency (stipulates what type of deed is expected from the seller at closing) Radon Testing Contingency Mold Inspection Contingency Sewer Inspection Contingency Private Well Inspection Contingency Home Owner Association Documents

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

LEGAL VS. EQUITABLE INTEREST IN REAL ESTATE

Legal Title A legal title refers to the responsibilities and duties the owner has in maintaining, using, and controlling a property. Legal title is the actual ownership of the property. The documented name of the property owner, as visible through the public records, typically describes the person with legal title. Legal title grants true ownership of the property, and all that this entails – the bundle of rights that comes with land ownership. These rights include: Mineral rights Easement rights Development rights Possession and control Exclusive use Conveyance rights Right of disposition You have legal title if your name appears as the grantee on a deed. Legal title is “apparent” ownership, or ownership that is documented on paper. You may assume that your ownership of a property is complete with legal title, but this is not the case. Another party may have equitable title, restricting some of the ways you can use and enjoy the property. Equitable Title While a legal title focuses on the duties of the property owner, equitable title refers to the enjoyment of the property. Equitable title is the benefits the buyer will get to use and enjoy when he or she becomes the legal owner. Equitable ownership is not “true ownership.” In other words, someone with equitable title could not argue that he or she was the legal owner or possessor of the property in a court of law. True ownership requires legal title. Equitable title does, however, grant the person more consistent control over the property. That’s right – equitable title can be more important than legal title. With words like “benefit” and “enjoy,” you may assume that having equitable title does not come with a lot of ownership rights. In fact, the opposite is true. For example, the person with equitable title is often in charge of financing the property. Equitable title gives the right to access the property, and – most importantly – the right to acquire formal legal title of the land. Keep in mind that equitable title does not actually transfer ownership of the property. It simply gives the individual or entity the right to the use and enjoyment of the property. When purchasing a piece of property, it is important to gain equitable title. This will come with the right to obtain full ownership and property interest in the future. Equitable title establishes the person’s financial interest in the property. A property investor, for example, may hold equitable title but not legal title. Equitable titleholders will benefit from the property’s appreciation in value. Upon receiving legal title, someone with equitable title can then transfer the property to someone else and keep the difference in price of the home due to appreciation. Equitable Title vs. Legal Title: Differences and Similarities The main difference between an equitable title vs. a legal title is that the latter is the only one that gives actual ownership of the property. There are many smaller, more intricate differences that can vary on a case-by-case basis. In general, equitable title gives a person the right to use the land and enjoy the benefits that come along with its ownership. Legal title does not necessarily grant these rights. Equitable title does not allow the titleholder to sell or transfer ownership. Legal title is the only title that can do this. Legal title has the advantage over equitable in that it allows the legal titleholder to demand compensation from parties that purchase or lease the property. There are similarities between the two types of titles. Look at them as two halves of the same whole. Both grant certain rights to the individual or entity whose name appears on the title deed. Both are legally binding and enforceable in a court of law. An owner needs both to have “full” ownership and use of a property. In property purchases that use traditional mortgage loans, the distinction between equitable title and legal title does not apply. Instead, the bank or lender will confer both titles to the property in question using a deed of trust. The lender will then retain financial and legal interest in the property until the buyer pays off the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CONTRACT FOR DEED

Because of recent credit tightening, some homebuyers may be less likely to qualify for mortgages than they were just a few years ago. Some financial counselors predict that borrowers with limited options may turn to alternative means of purchasing a home. One such alternative is the contract for deed. In a contract for deed, the purchase of property is financed by the seller rather than a third-party lender such as a commercial bank or credit union. The arrangement can benefit buyers and sellers by extending credit to homebuyers who would not otherwise qualify for a loan. Indeed, public and nonprofit housing advocacy organizations have used the contract for deed as a tool to help low- and moderate-income households attain homeownership. Nonetheless, this alternative financing mechanism lacks many of the protections afforded borrowers who have traditional mortgages. In addition, these contracts may contain provisions that leave room for abuse and can pose risks and uncertainties for both the buyer and seller. The following article presents basic facts and features of the contract for deed and offers suggestions for minimizing the risks associated with this mortgage substitute. Facts and features A contract for deed, also known as a "bond for deed," "land contract," or "installment land contract," is a transaction in which the seller finances the sale of his or her own property. In a contract for deed sale, the buyer agrees to pay the purchase price of the property in monthly installments. The buyer immediately takes possession of the property, often paying little or nothing down, while the seller retains the legal title to the property until the contract is fulfilled. The buyer has the right of occupancy and, in states like Minnesota, the right to claim a homestead property tax exemption. The buyer finances the purchase with assistance from the seller, who retains a security in the property. The contract for deed is a much faster and less costly transaction to execute than a traditional, purchase-money mortgage. In a typical contract for deed, there are no origination fees, formal applications, or high closing and settlement costs. Another important feature of a contract for deed is that seizure of the property in the event of a default is generally faster and less expensive than seizure in the case of a traditional mortgage. If the buyer defaults on payments in a typical contract for deed, the seller may cancel the contract, resume possession of the property, and keep previous installments paid by the buyer as liquidated damages. Under these circumstances, the seller can reclaim the property without a foreclosure sale or judicial action. However, laws governing the contract-cancellation process differ from jurisdiction to jurisdiction and the outcome may vary within any one state, depending on the contract terms and the facts of the specific case. Because the buyer in a contract for deed does not have the same safeguards as those afforded a mortgagor in a purchase-money mortgage, the contract for deed may appear to be essentially a rent-to-own arrangement. However, in a typical contract for deed, the buyer becomes responsible for the obligations of a mortgagor in possession, such as maintaining the property and paying property taxes and casualty insurance. In addition, unless prohibited by the contract, either party may sell his or her interest in the contract. Speed, simplicity appeal to buyers Home buyers may be attracted to a contract for deed purchase for several reasons. This method may be especially appealing to homebuyers who do not qualify for a mortgage, such as people who work cash jobs and are therefore unable to prove their ability to make payments. Since the contract for deed process is significantly shorter than the mortgage-approval process, it may attract buyers who face time constraints or have limited options, such as people who are losing their homes to foreclosure. First-time homebuyers who lack experience in the market or individuals who are wary of traditional financial organizations may also choose a contract for deed because of the relative simplicity of the buying process. Contracts for deed are a more popular financing alternative among minority homebuyers, most notably Hispanics. According to figures from recent American Housing Surveys, while only 5 percent of all owner-occupied households in the U.S. had contracts for deed in 2005, 9.5 percent of Hispanic owner-occupied households and 7.1 percent of black owner-occupied households across the country used them.1/ (For more figures on the use of contracts for deed, see the table below.) Though contracts for deed are sometimes referred to as the "poor man's mortgage,"2/ American Housing Survey results indicate that only 3.9 percent of U.S. households below the poverty line used them in 2005. However, it is difficult to know exactly how prevalent contracts for deed are, because the nature of these arrangements allows the buyer and seller a degree of anonymity. Despite laws in some states that require the buyers or sellers in all contracts for deed to record the sale in the office of the county recorder or registrar of titles within a specified time period, the sales often go unrecorded due to a lack of financial and legal sophistication on the part of both parties involved in the agreement. Historical objections Before the rise of subprime lending in the 1990s, many buyers who were unable to qualify for traditional financing resorted to contracts for deed. Indeed, for most of the last century, the contract for deed was frequently used as an alternative to a mortgage or deed trust. Today, routine use of contracts for deed persists in some parts of the country. For example, in west central Minnesota, anecdotal information suggests that contracts for deed are a commonly used alternative to mortgages. Still, some financial counselors and property law scholars regard the contract for deed as a "legal dinosaur"3/ or an "anomaly,"4/ and even call for its demise. They assert that the contract for deed has no place in modern property financing, offers no real benefits over the mortgage, and leaves both parties vulnerable to risk and uncertainty. One major objection to the contract for deed is that it is closely associated with a form of predatory lending that was prevalent from the late 1980s through the 1990s. During this period, some neighborhoods—including those in North Minneapolis—experienced a predatory lending scheme known as equity stripping. In an equity-stripping scheme, an investor finds a homeowner facing foreclosure and approaches him or her with an offer to buy the home. After purchasing the home, the investor pays off the debt, sells the home back to the original owner on a contract for deed, and gains the equity from the transaction. Fortunately, these equity-stripping scams have faded from the scene in recent years—largely because homeowners facing foreclosure today have little to no equity for unscrupulous investors to strip. Another objection to contracts for deed, apart from their association with nefarious equity-stripping scams, is that they have a reputation for offering little legal protection to buyers. Despite gaining home repair and maintenance responsibilities, buyers have limited ownership rights and control over their properties while they make payments to sellers. Buyers gain no rights of redemption through the transaction. Until several decades ago, U.S. courts routinely enforced the forfeiture clauses of contracts for deed in the event of the buyer's default. For example, if a homebuyer missed a single payment 15 years into a 20-year contract for deed, the seller could cancel the contract and retain the title and all the previous payments, while the buyer would suffer a substantial loss. However, such extreme cases are less common today. While a few courts enforce forfeiture provisions as written, most have become more sympathetic to complaints brought by the defaulting buyer, especially in circumstances where the buyer has already paid a significant portion of the purchase price. Courts today often view the contract for deed as analogous to the mortgage and, consequently, extend mortgagor's protections to the buyer in cases of default. The risks for buyers Despite favorable changes in the legal enforcement of forfeitures, contracts for deed pose distinct risks for buyers. One major risk stems from the short time period required to cancel the contract in the event of default. For example, in Minnesota, when a buyer falls behind on payments, the seller can file a Notice of Cancellation of Contract for Deed with the county and serve the buyer with the notice. The buyer has only 60 days from the date of the filing to address the items of default and pay the allowable attorney fees to "reinstate" the contract. This is a short time span in comparison to the six months or more afforded mortgagors who face foreclosure. As a result, a defaulting contract for deed buyer has a much narrower window of time to find a new home and is likely to have limited housing options. Another major risk for the buyer is the balloon payment. Unlike most traditional mortgages, the majority of contracts for deed are not fully amortized. Instead, the contract is most frequently structured to require monthly payments for a few years, followed by a "balloon payment" that completes payment on the house. To make this balloon payment, the buyer will almost inevitably need to obtain a traditional mortgage. If a buyer is unable to qualify for a mortgage at the time the balloon payment is due, he or she is likely to face cancellation of the contract. Some buyers enter into contracts for deed with the hope of repairing their credit. They expect to improve their credit profile during the first part of the contract period and then qualify for a loan at the time the balloon payment is due. However, according to Dan Williams of Lutheran Social Services in Duluth, Minn., a contract for deed often does not improve the credit of the buyer because individual sellers typically do not report to credit agencies. The buyer may attempt to use a letter from the seller stating that he or she makes the contract payments on time, but unfortunately, most lenders do not honor such a letter. Williams warns that unexpected home repair costs may also pose a risk to buyers in a contract for deed. While this risk also applies to buyers who purchase homes through conventional mortgages, it may be greater in the case of homes purchased through contracts for deed, because a seller can execute a contract for deed with limited disclosure about the condition of the property. Minneapolis-based attorney Larry Wertheim explains that in a third-party financed sale, the lender's stringent requirements for title examination, title insurance, and appraisal provide the collateral advantage of disclosure for the buyer. Unless the buyer in a contract for deed has legal assistance or is aware of the need for appraisal and title examination, the transaction may not include these safeguards. In addition, since many homebuyers choose a contract for deed because their weak credit precludes them from obtaining a conventional mortgage, they are unlikely to qualify for loans to finance repairs. Ultimately, defects in the property could increase the chances of the buyer defaulting on payments and losing the home. Another risk for contract for deed buyers stems from the fact that the seller retains the title to the property during the life of the contract. Since the seller retains the title, he or she may continue to encumber the property with mortgages and liens. The seller is only obligated to convey good title when the purchase price is fully paid and it is time to deliver the title. He or she does not need to have good title at the time the contract is executed nor during the life of the contract. Depending on state law and whether the contract is recorded in a timely manner, the buyer's interest may be junior in priority to these pre- and post-contract encumbrances placed on the property by the seller. In addition to the problems described above, no two contracts for deed are alike and, according to Cheryl Peterson of Twin Cities Habitat for Humanity, the terms of the agreement are often unclear. The contract for deed is typically a one- to five-page document that includes the amount of the purchase, the interest rate, the monthly payment, and some verbiage regarding cancellation. The documents often do not include a standard arrangement for beginning the cancellation process. This lack of clarity in contracts for deed creates difficulties for financial counselors who give advice to buyers facing forfeiture. According to Peterson, "You can't say, 'If you've seen ten contracts for deed, you've seen them all.' It doesn't make you an expert, because the next ten will all be different." A tool for promoting homeownership While the contract for deed may entail a litany of problems in the private market, this alternative financing device has proven to be a promising tool for the public and nonprofit sectors. Some housing funders and developers are using contracts for deed as a means of promoting homeownership for low- to moderate-income households. In particular, Minnesota Housing's Minnesota Urban and Rural Homesteading Program (MURL) has utilized contracts for deed as an effective tool to assist hundreds of Minnesotans in achieving sustainable homeownership while stabilizing declining neighborhoods.5/ MURL allocates funds to local administrators to rehabilitate deteriorating single-family housing. The rehabilitated homes are then sold to at-risk homebuyers on an interest-free contract for deed. The program defines at-risk homebuyers as those who are "homeless, receiving public assistance or otherwise lacking the ability to meet mortgage underwriting standards for traditional financing."6/ The MURL contract for deed requires homebuyers to make a monthly payment equivalent to 25 percent or more of their gross monthly income. (This is generally a good deal, considering that recipients of Section 8 federal housing assistance pay 30 percent of gross monthly income.) The goal of MURL is to allow homebuyers to eventually refinance or pay off the contract for deed and acquire fee simple title. The affordable monthly payments under the contract for deed allow the homebuyer to repair any outstanding credit issues while reducing the principal balance. Once the balance is reduced to a reasonable level, the homebuyer can refinance into a traditional mortgage. According to a 2008 Annual Report Summary from Minnesota Housing, the MURL portfolio includes 350 homes. Over the past year, the default rate was 7.7 percent and the refinance/contract payoff rate was 2.6 percent. In contrast to the 60-day cancellation period in the private market, MURL includes a generous forbearance policy, designed to help the at-risk homebuyer be successful over the long term. It allows flexibility in cases of unforeseen circumstances that limit the homebuyer's short-term ability to pay (e.g., unexpected health issue, short-term loss of employment). The Family Housing Fund—a nonprofit Twin Cities-based organization—is launching a new program that will also utilize the contract for deed as a tool to create affordable housing opportunities. The new initiative, titled The Bridge to Success Contract for Deed Program, launched in fall 2008. Through this program, the Family Housing Fund made a $500,000 loan to Dayton's Bluff Neighborhood Housing Services (DBNHS) and Greater Metropolitan Housing Corporation (GMHC). These two organizations have a lender commitment—similar to a line of credit—of up to $1 million from a private lender. DBNHS and GMHC will use the funding pools to sell properties on a contract for deed to homebuyers who may not be ready to qualify for a traditional mortgage. The funds from the Family Housing Fund will make up 20 percent of the purchase price, with a balance of 80 percent funded by lenders. This arrangement eliminates the need for private mortgage insurance. Key components of The Bridge to Success Contract for Deed Program are homeownership education and financial counseling to ensure that the buyer is mortgage-ready in three years.7/ Advice from the experts While a contract for deed may have its appeal as an alternative financing device, given the risks involved, buyers and sellers should proceed with caution when entering such an arrangement in the private market. The following advice from the Minnesota Legal Services Coalition stresses that both parties should make an effort to be fully informed. First and foremost, the seller must set forth the terms of the contract in a purchase agreement. It is important that both parties fully understand the provisions of the contract, because once the purchase agreement has been signed, the options available to both the seller and buyer are limited. The buyer should know whether he or she is responsible for property tax payments and insurance and whether the contract for deed includes a balloon payment. If it does include one, the buyer should be certain that he or she would be eligible for a mortgage to cover the payment when it comes due. The buyer should also make sure that the seller is the true owner of the house by checking with the county recorder's office to see who is listed as the registered owner. If the seller still has a mortgage encumbering the property or is responsible for paying the taxes or insurance, the buyer should contact the seller's mortgage company prior to signing the contract to determine whether the seller is current on his or her payments. Some "scam" sellers will retain a buyer's payments and not apply them to the mortgage. If the seller defaults on the mortgage in this scenario and the home is foreclosed, the buyer will lose the house and all the paid installments. The buyer should ask the seller for a Truth in Sale of Housing report to determine the condition of the house. This report is required in Minneapolis and St. Paul and some other cities. In cities where it is not required, the seller should find his or her own inspector to assess the condition of the home. Finally, according to Wertheim, once the contract for deed is executed, the buyer should record the contract immediately with the county recorder's office or the registrar of titles. While statutes requiring this registration are rarely enforced, recording the contract will help prove the buyer's possession of the property and protect him or her from post-contract encumbrances placed on the property by the seller. Ensuring a positive outcome It is important to note that despite their risks and sometimes negative associations, contracts for deed are not intrinsically bad. When used wisely, they can be a good fit for some consumers. Contracts for deed offer a swift, streamlined option for people who do not qualify for traditional mortgages or would prefer not to deal with mortgage lenders. When administered by public agencies or nonprofit housing organizations, contracts for deed can be a tool for building credit, promoting homeownership, and stabilizing neighborhoods. To protect their interests in contracts for deed, sellers and buyers must do their homework, so to speak, by making sure they learn and understand what specific provisions and risks the contracts entail. Buyers in private contracts for deed should take additional steps. These include assessing the condition of the property, confirming that the seller has clear title, and recording the signed contract at the appropriate government office. By being informed and prepared, the buyer and seller in a contract for deed can help ensure a positive outcome for both

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

5 PROBLEMS WITH SWIMMING POOLS

5 Common Swimming Pool Problems Who doesn’t like to swim in a pool? Whether we can swim or not, it’s fun being inside the pool especially with friends or family. Have you ever been in a pool party or participated in a pool game? You can agree with me if you own a pool that the fun can however be limited due to the following problems: Electrical problems: Water may stop circulating properly as a result of power not getting to the pump. This often is caused by broken circuits or blown fuses, resulting in current flow. You should call a qualified electrician to fix it for you if it is beyond your ability. Unbalanced chlorine levels: Have you ever been in a pool where you cannot stand the water due to eye irritation? You can’t even see clearly where you are swimming towards. No serious problems are caused whatsoever since the irritation stops shortly after being out of the pool. This may also cause formation of algae in your pool. Always test the chlorine level using the chemical testers to ensure the level is not too high or too low. Airline leakage: The pool filter may be clear but circulation of the pool is poor. This implies there is a leak in the air line or maybe the pump isn’t working as it is supposed to. The solution to this is patching the leaking area. Clogging: This refers to blockage or the slow passage of water. It is usually caused by anything that may have dropped in the pool accidentally for example small rocks and leaves. Clogging leads to insufficient circulation and growth of bacteria due to the water going fusty. Remove the leaves and other elements regularly using a sweep net that float on the surface of the water pool to prevent clogging. Cracks on tiles: “Tiles are not immune to cracking. When the floor tiles crack water may dribble in to your deck leading to water damage or loss of a lot of water from the pool. Silicon is a nonmetallic element that often hardens thus when applied on the cracks after hardening further water leakage is prevented,” said Barry O’Brien, owner of Creative Construction & Home Remodeling Texas. These are the common swimming pool problems experienced by pool owners and as a swimmer it is not fun or even safe to swim in a pool with such problems. You can hire someone to maintain the pool on your behalf or you can enroll in a class and learn how to maintain it. Do not rob yourself or others the fun of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT MUST BE IN A PURCHASE CONTRACT TO MAKE IT ENFORCEABLE?

Requirements for a Real Estate Purchase Contract A real estate purchase contract—also known as a contract to purchase real estate or a residential purchase agreement—is a binding, bilateral agreement between two or more parties. They must each have legal capacity to make the purchase, exchange, or other conveyance of the real property in question. The contract is based on a legal "consideration." Consideration is whatever is being exchanged for the real estate and most commonly it is money. Consideration could also be other property or a promise to perform, such as a promise to pay. The U.S. Statute of Frauds requires that real estate contracts must be in writing or they're not enforceable. They must be signed by both the buyer and the seller. Handshakes are a thing of the past. Templates and forms are available but consider consulting an experienced real estate attorney or an agent if you're handling a transaction on your own. What a Purchase Contract Includes In addition to the agreed-upon consideration, a real estate purchase contract should also include: Identification of the parties A description of the property The essential details, rights, and obligations of the contract Any contingencies or conditions that must be met before the sale can go through The condition of property What fixtures and appliances are included and what is not included The amount of the deposit Itemized closing costs and who is responsible for paying for each of them The prospective date of closing The signatures of each party Terms of possession Contingencies The list of contingencies might include that the buyer be able to obtain financing and get a mortgage. It usually includes getting an appraisal and this is often required by the mortgage company. It can also include having a professional inspection. Sometimes another sale must take place before you can close—"I must sell my home before I can afford to buy yours." Earnest Money Deposit A deposit is usually made when the buyer signs the contract. The money is then held in escrow until closing by a third party such as the seller's real estate attorney or a title company. The deposit is usually a fraction of the selling price and the amount should be specified in the contract. It's a credit towards the final negotiated purchase price. What If the Buyer Wants Out? This is a serious consideration and can result in the loss of the deposit, or worse, being sued for specific performance or completion of the contract. If you're the buyer and you feel that you must get out of the contract, it's best to do it during the time period when contingencies are being met. Contingencies are literally escape hatches and they can be legitimately be used but there's no contingency for a simple case of cold feet. The most common "out" occurs because of financing issues. If you try in good faith to get a mortgage and you're turned down, the contract is canceled and no one is at fault. Many things can go wrong in underwriting. There's no guarantee that a buyer will actually be given a loan just because she's been pre-approved by a lender. Another common "out" is the inspection contingency. If the inspection turns up defects—and they almost always all do—and if the buyer decides those deficiencies are too much to deal with, the parties can cancel the contract if they can't reach an agreement regarding repairs. No one is at fault. In some parts of the country, home inspections are completed in advance of executing a final purchase contract so an inspection might not be listed as a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SHORT TERM RENTAL CONSIDERATIONS

Is it legal to rent out your home to vacationers by using online rental services such as Airbnb or VRBO? It depends on several factors, such as where your home is located, what type of home you own, and how long you rent it out. And if you rent (don't own) your home, lease or rental agreement restrictions are also an issue. Unfortunately, legal restrictions on short-term rentals are not uniform and can be confusing. Moreover, short-term rental websites currently provide little help to prospective hosts to understand or comply with these laws. Municipal Restrictions on Short-Term Home Rentals Many cities, counties, and other municipalities have legal restrictions on short-term home rentals. These vary greatly from place to place. The restrictions in some cities are quite severe and make most short-term rentals illegal. In New York City, for example, residential property located in a multiple residential dwelling unit, such as an apartment building, must be used for “permanent resident purposes.” This means that the property must be occupied by the same person or family for 30 or more consecutive days. It's illegal to have paying guests for less than 30 days--unless, of course, the property is a licensed hotel, bed-and-breakfast, or other similar business. However, there is an important exception: It's not illegal to rent a room in New York City if you occupy your home or apartment at the same time and all parts of the dwelling are available to the paying guest. Violations of the New York law can result in fines of $1,000 to $5,000 for a first offense. In one well-publicized case, a New Yorker who earned $300 by renting his East Village apartment to a visitor from Russia for three nights, was fined $2,400 (the original ruling has since been overturned on appeal by Airbnb). New Orleans has similar restrictions on the period of short-term rental use. Its local ordinance prohibits property owners from renting their homes or apartments to anyone for less than 60 days in the French Quarter or less than 30 days elsewhere in the city. Other cities utilize their zoning laws to limit short-term rentals. For example, in San Luis Obispo County, California, a short-term rental home may not be located within 200 feet of a similar rental on the same block. Others impose occupancy limits—for example, in Isle of Palms, South Carolina there is an occupancy limit of two people per bed plus an additional two people. On the other end of the spectrum, some cities and municipalities have much more liberal rules. Some allow short-term rentals so long as the property owner registers with the city, and/or obtains a license or permit, and pays all applicable fees and taxes. This is the case, for example, in Palm Desert, California; in 2012, it adopted a ordinance allowing short-term rentals of up to 27 days provided that an annual permit is obtained and a 9% transient occupancy tax collected and paid to the city. St. Helena, California and Maui County, Hawaii have enacted similar laws. In 2015, San Francisco enacted an ordinance permitting short-term rentals of up to 90 days per year, but limited it to owners who live in their property at least 275 days per year. The legal restrictions on short-term home rentals described above are haphazardly enforced at best. Typically, due to a lack of manpower, cities and other municipalities don’t spend much time or effort on this issue. Indeed, most often they are unaware that short-term renting is going on. Usually, enforcement efforts are undertaken only when neighbors complain. Legal Restrictions on Owners of Condos, Coops, and Planned Developments If you live in a condominium, cooperative, or planned development, your use of your property is governed by deed-like restrictions commonly called covenants, conditions, and restrictions (CC&Rs) or bylaws. These may bar short-term rentals entirely, or subject them to restrictions. Unlike zoning laws or local ordinances, CC&Rs are enforced by the homeowners' association or coop board, which may impose fines on violators and place liens on the property to collect them. Lease Restrictions on Renters If you’re a renter, you need to carefully check your lease before you rent your apartment on a short-term basis. Most leases contain provisions restricting or prohibiting short-term rentals and sublets unless the landlord’s permission is obtained in advance. If you violate your lease, you could get evicted by the landlord. How to Find Your Local Laws and Other Legal Restrictions on Short-Term Rentals The Airbnb website has a summary of the legal requirements of about 50 cities, with links for more information. If your city isn't listed here, the first place to check is your local municipal or administrative code, which may be available online at your local government’s website. To find yours, check out State and Local Government on the Net or Municode. If you can't find your local law online, you may have to read it at your local library or city hall. A call to your city’s zoning board or local housing authority could also prove fruitful. You might also check out the Short Term Rental Advocacy Center, created by Airbnb, HomeAway, Trip Advisor, and FlipKey, for information on restrictions on short-term rentals. If you own a condo or coop, ask your homeowners' association or coop board about its short-term rental policies. If you’re a renter, check your lease or rental agreement and talk to your landlord before renting out your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

JUDICIAL FORECLOSURE VS. QUITE TITLE ACTION

Judicial foreclosure refers to foreclosure cases that go through the court system. Foreclosure occurs when a home is sold to pay off an unpaid debt. Many states require foreclosures to be judicial or to be processed through the state court system, but in some states foreclosures can be either non-judicial or judicial. If the court confirms that the debt is in default, an auction is held for the sale of the property in order to acquire funds to repay the lender. This differs from non-judicial foreclosures, which are processed without court intervention. Many states require judicial foreclosure to protect equity the debtor may have in the property. Judicial foreclosure also serves to prevent strategic disclosures by unscrupulous lenders. In instances where the sale of the property through the auction does not generate enough funds to repay the mortgage lender, the former homeowner will still be held liable for the remaining balance. Judicial Foreclosure Process Judicial foreclosures can last anywhere from six months to about three years depending on the state. To begin the foreclosure process, the mortgage servicer, or the company to which mortgage services are paid, must wait until the borrower is delinquent on payments for four months. At this point the servicer will notify the foreclosing party with a breach letter, letting the debtor know they are in default on their mortgage. In most cases, the debtor then has 30 days to cure the default, and if they are not able to, the servicer will move forward with foreclosure proceedings. At this point, the foreclosing party files a lawsuit in the county where the property is located and requests the court allow the home to be sold to pay the debt. As part of the lawsuit, the foreclosing party includes a petition for foreclosure that explains why a judge should issue a foreclosure judgment. In most cases, the court will enter a judgment of foreclosure unless the borrower has a defense that justifies the delinquent payments. Depending on the state, the foreclosing party may also be entitled to a deficiency judgment. A deficiency judgment allows the house to be sold at a foreclosure sale for less than the outstanding mortgage debt. The difference between the debt and the foreclosure sale price is called the deficiency. In most states, the foreclosing party can get a personal judgment against the borrower for the deficiency. Missouri Quiet Title Lawsuit A Missouri quiet title lawsuit, also called an action to quiet title or quiet title action, is most commonly used for clearing title issues, fixing defects in a title or confirming the ownership of real estate and personal property. A quiet title lawsuit is also required by most title companies after a property has been purchased at a delinquent tax sale, which is covered in part by Section 140.330 of the Missouri Revised Statutes. Clearing Title Defects The title defect, often called a "cloud on title," is generally something or someone in the title history that results in the current owner holding less than perfect title, legally referred to as fee simple title. Corrections to the chain of title or clearing a title issue could be necessary because: • A document was not recorded in the Recorder of Deeds Office, but should have been. • A document was improperly recorded. • The recorded document itself contained errors. If the only title issue is a recorded document containing an error, and that error is based on a mutual mistake, a reformation action may be the preferred lawsuit. Also, a quiet title lawsuit is not appropriate where the true and correct owners of a property do not agree on the use of the property or whether to sell the property. In that situation, a partition lawsuit is the preferred legal action. Quiet Title Attorney Section 527.150 of the Missouri Revised Statutes provides the statutory authority to file a quiet title suit. This process requires that the individual or entity filing the lawsuit file a petition with the circuit court of the county where the property is located. A lis pendens is then recorded in the recorder of deeds office to ensure that anyone looking at the chain of title knows a lawsuit has been filed concerning the title to this property. In states other than Missouri, a quiet title lawsuit may be called a try title lawsuit, trespass to try title lawsuit or ejectment

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

DEATH AND REAL ESTATE

Understanding Ownership of Property When an estate planning attorney meets with a new client, one of the first questions the attorney asks is "What do you own and how is it titled?" But what exactly does the attorney mean by this question? The most simple way to understand it is to break down how property is titled into three basic concepts: Sole ownership Joint ownership Title by Contract These are the only three ways property can be titled, and yet you may be surprised how many clients estate planning attorneys work with who don't know exactly how all of their property is titled. Here is a brief overview of each type of property ownership: Sole Ownership Sole ownership of property simply means that it is owned by one person in his or her individual name and without any transfer on death designation. Examples include bank accounts and investments accounts held in one individual's name without a "payable on death," "transfer on death," or "in trust for" designation, or real estate that is titled in one individual's name in "fee simple absolute," meaning that the individual owns 100% of the property in his or her sole name without the remainder being transferred to someone else after the individual's death. Joint Ownership Joint ownership comes in two forms, with rights of survivorship and without rights of survivorship. Joint ownership with rights of survivorship means that two or more individuals own the account or real estate together and after one owner dies, the remaining owner(s) continue to own the property. “Tenancy by the entirety" is a special type of joint ownership with rights of survivorship between married couples that is recognized in some states, while "community property" is another special type of joint ownership between married couples that is recognized in some states. Joint ownership without rights of survivorship means that two or more individuals own a specific percentage of the account or real estate, such as one individual owning 80% and a second individual owning 20%. Joint ownership of property without rights of survivorship is referred to as owning the property as "tenants in common." Title by Contract Title by contract refers to property that has a beneficiary named to receive the property after the owner dies, including bank accounts or investments accounts that have a "payable on death," "transfer on death" or "in trust for" beneficiary designated; life insurance that has a beneficiary designated; retirement accounts, including IRAs, 401(k)s and annuities that have a beneficiary designated; life estates that have a remainderman designated; transfer on death or beneficiary deeds that have a beneficiary designated; and trusts that have a beneficiary designated. Understanding Where Property Will Go After Death Once you understand the three types of property ownership, you will need to understand who will inherit each type of property after the owner dies. In this sense, a property can be viewed in two ways: probate assets vs. nonprobate assets. Probate assets are simply that - assets that will need to go through court-supervised probate after the owner dies. In other words, after the owner dies, the only way to get the asset out of the deceased owner's name and into the name of the deceased owner's beneficiaries is to take the asset through probate. Probate assets include sole ownership property and tenants in common property (or property owned jointly without rights of survivorship). Nonprobate assets are simply that - assets that will not need to go through court-supervised probate after the owner dies. In other words, after the owner dies, other owners or beneficiaries will take over control of the deceased owner's property simply because they survived the deceased owner. Nonprobate assets include property owned jointly with rights of survivorship (including tenancy by the entirety property and certain community property) and any type of asset that has a beneficiary named to inherit the asset after the owner dies. Understanding What Happens to Assets That Go Through Probate So where do probate assets go after the owner dies? This will depend on whether the owner has, or does not have, a last will and testament. If the owner has a will, then who will inherit the owner's probate assets will be determined by the will. If the owner does not have a will, then who will inherit the owner's nonprobate assets will be determined by the intestacy laws of the state where the owner lived at the time of death as well as the intestacy laws of any other state where the owner owned real estate. Putting It All Together Now that you understand the three types of property ownership and the difference between probate and nonprobate assets, you can understand why it is so important for your estate planning attorney to know exactly how all of your property is titled. Without this one important piece of information, your estate planning attorney cannot help you create an estate plan that will work the way you expect it to work. Without taking into consideration who owns what, you will be left with an estate plan that will confuse your loved ones and possibly land them in court. So do your estate planning attorney a favor and go through each and every one of your assets and write down who owns it and, if applicable, who is the designated beneficiary, because if you do not do this before meeting with your attorney, then he or she will surely send you home to do

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE SYNDICATION

Both get a share of the profits based on time and money invested. Real estate syndication is an effective way for investors to pool their financial and intellectual resources to invest in properties and projects much bigger than they could afford or manage on their own. The basics of real estate syndication aren’t all that different from two guys opening a bar together. As the manager and operator of the deal, the Sponsor invests the sweat equity, including scouting out the property, raising funds and acquiring and managing the investment property’s day-to-day operations, while the investors provide most of the financial equity. The Sponsor is usually responsible for investing anywhere from 5-20% of the total required equity capital, while investors put in between 80-95% of the total. Syndications are simple to set up and come with built-in protections for all parties. They’re usually structured as a Limited Liability Company or a Limited Partnership with the Sponsor participating as the General Partner or Manager and the investors participating as limited partners or passive members. The rights of the Sponsor and Investors, including rights to distributions, voting rights, and the Sponsor’s rights to fees for managing the investment, are set forth in the LLC Operating Agreement or LP Partnership Agreement. Real Estate Syndication Profits How, exactly, do investors make money when participating in a real estate syndication? Rental income and property appreciation. Rental income from a syndicated property is distributed to investors from the Sponsor on a monthly or quarterly basis according to preset terms. A property’s value usually appreciates over time, so investors can net higher rents and earn larger profits when the property is sold. When and how does everyone get paid? Payment depends upon the time the investment needs to mature; some types of syndications are over within 6-12 months while others can take 7-10 years. Everyone who invests receives some share of the profits. At the deal’s beginning, the Sponsor may earn an average acquisition fee of 1% (although it can be anywhere from .5 to 2% depending upon the transaction). Before a Sponsor shares in the profits for their work as manager and promoter, all investors receive what is called a ‘preferred return.’ The preferred return is a benchmark payment distributed to all investors that is usually about 5-10% annually of the initial money invested. A Quick Example Real estate syndications are structured so that the sponsor is motivated to ensure the investment performs well for everyone. Let’s look at an example of a preferred return. If you’re a passive investor who invests 50k in a deal with a 10% preferred return, you could take home 5k each year once the property earns enough money to make payouts possible. After each investor receives a preferred return, the remaining money is distributed between the Sponsor and the investors based on the syndication’s profit split structure. If, for example, the profit split structure is 70/30 — investors net 70% of the profits after receiving their preferred returns and the sponsor nets 30% after the preferred return — here’s an example: after everyone receives their preferred return in a 70/30 deal, and there is 1 million remaining, the investors would receive 700k and the Sponsor would receive 300k. Real Estate Syndication Statistics In 2012, over 47,000 investors participated in syndications. The average size of a real estate offering was 2.3 million. Passive investors came up with 80-95% of the initial capital investment Sponsors came up with 5-20% of the initial capital investment Investors received a preferred return ranging from 5-10%. The average preferred return was 8%. Sponsors netted an acquisition fee of .5 to 2%. The average acquisition fee was 1%. Sponsors netted a property management fee between 2 and 9%. Real Estate Syndication and Crowdfunding Back in the dark ages (a.k.a. pre- internet), real estate syndication required that interested investors have an established network of syndicate partners to find trustworthy, profitable deals to buy shares of. Like the two guys opening up a bar together, the guy with the bar experience had to somehow meet the guy with the money, and vice versa. Fast forward a few years and things have really changed for real estate syndications, with the help of the internet and the advent of crowdfunding. Real estate crowdfunding gives access to the financial fundamentals of a deal and makes it easy for accredited investors to purchase shares without using the old model of country-club small talk and caddy fees. Crowdfunding is a way to raise money through the internet for a big project with the help of a ‘crowd’ of investors; if a project gets enough funding, it’s a “go”, and if not, the money is returned to investors. Crowdfunded real estate syndications are more accessible, have lower investment minimums and offer a wealth of online project information available to potential

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THINGS TO CONSIDER IF BUYING A PROPERTY FOR AN AIRBNB

IT'S EASY TO SEE THE rise in popularity of Airbnb and other online vacation rental sites and think it's a good idea to buy a property dedicated to short-term housing. But that strategy may not be as simple or lucrative as it seems, experts warn. The old adage "location, location, location" is true even more in vacation rental ownership. "Certain areas are better for year-round renters," says Will Woodard, a certified financial planner in North Carolina's Outer Banks. He explains the climate in his hometown: "The weekly [vacation] rental market on the Outer Banks is very competitive and requires significantly more costs. There is a relative lack of supply in the year-round rental market so there is robust demand for rentals, especially those in the nicer neighborhoods that aren't overpopulated with weekly rental cottages." The catch is that housing is expensive and though rents are high compared to surrounding, non-resort areas, they would only reward an owner that's owned more than 15 to 20 years due to high purchase prices, Woodard says. These are the sorts of market conditions investors should know when evaluating a property to hold as a rental. But there are other considerations you should take into account. Examine the local ordinances and rules. The biggest threat to the short-term rental business is swift-changing local laws that limit their use. With affordable housing "in such a bind," most major cities are enforcing regulations on short-term rentals, forcing landlords to put their rental properties back on the markets for families as long-term rentals, says Shawn Breyer, owner of Breyer Home Buyers in Atlanta. And in Charleston, South Carolina, where Carolina One Plus real estate agent Susan Matthews says vacation rental margins are "super generous" because of year-round tourist attractions, vacation rental income isn't legal unless the operator owns and lives on the property full-time. That's in addition to city rules that require short-term rental operators not only to obtain a special license, but also pay fees and accommodations taxes. They can only host up to four adults at a time, she says. If you are buying in a foreign country, consult a lawyer to make sure you understand the local laws, and make sure the lawyer is fluent in your language, says David Johnson, founding director of Halo Financial, a London-based firm that provides foreign exchange services. Make sure the property works as a long-term rental or other use. Short-term rentals listed on Airbnb.com, HomeAway.com or VRBO.com are a great supplement to your rental income, but it is not a good long-term strategy, Breyer says. That's because the business ebbs and flows, and consumer demand could change. So when you're analyzing a property to be made into a rental, make sure it cash flows as a year-long rental too. "If your cash flow numbers don't work with a good long-term strategy, then don't buy the property," Breyer says. You could also look at adapting the property to other models, such as furnished student housing or long-term relocation housing, Matthews says. In Charleston, the College of Charleston, Medical University of South Carolina and other schools create high demand for student housing while business growth has created a need for long-term relocation housing. "These rentals also offer good margins,"Matthews says. Think about the tax rules. IRS tax code provides that rentals at less than fair market value disqualify the owner from taking into account expenses, says Morris Armstrong, an enrolled agent, investment advisor and rental property owner with Armstrong Financial Strategies in Cheshire, Connecticut. That means you can't keep it for personal use and still get the tax write-offs, and you have to be careful about where you set your rates. If you rent the home less than 15 days a year, it's exempt from income tax. Consider the expenses of a short-term rental. Vacation rental properties are more costly to operate and maintain due to furnishings, frequent cleaning and repairs, Matthews says. You also have to keep the gas, water, electric, cable and internet paid up, Armstrong adds. Discuss with a local real estate agent likely occupancy rates and competitive pricing. That's not to mention that you'll need to spring for the kind of amenities that command higher prices and enough bookings to cover your costs. The top desired vacation rental amenity is a pool, with 19 percent of VacationRenter.com survey reporting so. That's followed by pet friendliness at nearly 18 percent, and air conditioning at about 13 percent. VacationRenter.com aggregates vacation rental listings from multiple

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CODE OF CONDUCT FOR REALTORS

Code of Conduct Thanks for choosing to participate in the exchange of ideas and information in the Missouri REALTORS®online community, THE LANDING. To ensure the best possible experience for all users, we have established these Rules of Conduct (“Rules”) applicable to those who participate. Please read this document carefully as it contains important information regarding your legal rights, remedies, and obligations in the context of using THE LANDING. If you have questions about the Rules or Legal Terms or THE LANDING itself, contact THE LANDING at 800-403-0101 ext. 130 or email missourirealtors@morealtor.com. Social networking tools and sites are constantly evolving. Missouri REALTORS®, therefore, reserves the right, in its sole discretion to change, modify, add, and delete portions of these Rules at any time without further notice. Such modifications will be effective immediately upon posting. 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How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REALTOR DISPUTES – DO YOU NEED TO FIRE YOUR REALTOR?

It may be hard to believe, but I receive calls regularly from buyers and sellers that have become estranged from there realtor or feel they are being taken advantage of by the realtors involved in the sales transaction. Here are some examples: Example #1 Listing agent lists property for a seller. An offer eventually gets accepted by the seller for $150,000.00. The bank on behalf of the buyer conducted an inspection and the appraisal came out at $135,000.00. Despite the contract specifically providing for the right of either party to cancel in the event the property did not appraise for the full purchase price, the seller’s agent told her THAT SHE HAD TO SELL THE PROPERTY FOR WHAT THE PROPERTY APPRAISED FOR AND THIS WAS A VERY ESTABLISHED REALTOR!!!!! The seller felt something was wrong and called me. I reviewed the contract with her and the standard MLS Board Approved Real Estate Contract provides for cancellation in the event the property does not appraise for the full purchase price. In this case the seller did not want to sell the property for $135,000.00 and at this point was being harassed and belittled by her own agent and the seller was at her wits end. I contacted the realtor and let her know the seller was now being represented by an attorney and that the seller had made the decision to cancel the listing and that she was being given 48 hours to take her lock box off the door and pick up her sign. The realtor was mad and put up an initial fight but after realizing she was wrong on the appraisal issue. Realizing the degree to which the relationship had fallen apart with the seller, she cancelled the listing, took her lock box off the door, and picked up her sign. Example #2 Buyer agent was representing a buyer that was buying her first house. First time home buyers are by far the largest group that get taken advantage of by realtors. In this case a home was looked at and the buyer initially stated that she liked the home but did not feel like somewhere she could consider home. The realtor suggested the buyer write an offer just to put the house under contract and to give her the option to buy it should she decide to go through with a purchase. An offer was made and accepted. The buyer repeatedly called and attempted to communicate with her realtor to explain that she did not want to go through with purchasing the property. Despite the buyer’s pleas for a cancellation, the realtor kept moving forward with the sale. The buyer knew there was a problem and did not know where to turn. She contacted my office and I communicated with the realtor and explained that she was the agent, not the principle, and that she must follow the instructions of the principle – the buyer. Eventually the sale was called off and the buyer went on to find a new agent and successfully purchased a house she felt she could make home. Example #3 Seller had an agent. Seller fired the agent and a cancellation agreement was signed by all the parties. The seller then found a buyer FSBO, wrote up a contract, and took the contract to a title company and showed the agent from the title company the cancellation. The underwriter for the title company mailed a letter to the fired agent and requested a letter from the agent stating that they were not owed a commission. The agent refused to provide the requested letter, despite clearly having no right to a commission. With a closing date rapidly approaching the seller got worried and contacted me. I contacted the agent and was unable to persuade the agent that a commission was not due. Ultimately, we decided to terminate the title company and went to another title company that did not make a “no commission due” letter a condition of issuing title insurance. The sale went through perfectly, and the agent did not get paid the money she was not owed! It is important to understand that realtors only get paid if they conclude a sale. Therefore, at times realtors do and say things that are not in their client’s best interests to earn a pay check. In addition to the need to earn a paycheck I have also noticed the following characteristics tend to exist when realtor disputes arise. The common characteristics I have seen involving realtor disputes are: Age – buyer is either very young or very old. First time home buyer – typically a young couple that have never purchased a house before. Self-Dealing – Agents talk to a seller to start a listing and realize the seller is expecting to receive considerably less than the true fair market value of the property. Instead of explaining that to the seller so the seller can make more money, they themselves or through another party purchase the property for the discounted amount AND EARN A COMMISSION!! New Agent or Inexperienced Agent – The agent does not know what to do and instead of making the buyer or seller aware of that they hedge their answers or give incorrect information that eventually hurts the buyer or seller due to lack of representation Misrepresentation – The agent will hire their own inspector, their own contractor, or even their own lender, to make the transaction easier for the agent to earn a commission, not better for their client. Agents that sell properties they own – Sometimes agents will sell properties they personally own and not explain that to the buyer. Small towns – Buying or selling a property in a very small town where there are very limited options for representation and all the realtors in the town know one another. Old homes or homes that have challenges – Instead of explaining to the buyer that the home is old and therefore may have wiring problems or plumbing problems, or that the grading of the yard will create flooding into the property in cases of hard rains, they push the buyer to buy for a commission and do not fully explain these challenges to the buyer. Being a real estate agent is not easy. They only have income if a transaction completes. Real estate agents have bills to pay, just like the rest of us. Real estate agents do not have an unlimited amount of time, just like the rest of us. Real estate agents are not bad people, its just that the incentives and motivations for a commission can sometimes cause them to withhold, distort, or misrepresent important information that a buyer or seller need to make the best decision. If you are in a dispute with a realtor call our office. We will evaluate the merits of your claims and provide you alternatives. We will contact the realtor’s broker if necessary, and will take whatever other steps that will lead to creating a more favorable outcome for

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WATER DAMAGE – REPAIR VS. REMEDIATE

How much does it cost restore water damage? Water may be a necessary part of life, but it can also do a tremendous amount of damage to your property if it gets into places it shouldn’t be. Whether through flooding due to a storm, a burst pipe, moisture trapped beneath walls or floors, gaps in a tile shower, foundation cracks, a leaking toilet, water damage after a fire, or a leaking roof, too much moisture left alone inside your home can lead to much bigger problems. If water isn’t cleaned up properly, and things dried out within the first 24 to 48 hours after the initial damage has been done, additional problems can begin to set in, including mold, mildew, and wood rot. Not all water damage is equal; water from “clean” sources such as a pipe or rain is easier and less costly to clean up, while water from a backed up sewer pipe or a leak that’s only found after mold has grown is going to be more difficult and more costly to clean. The average cost of simply drying out your property from a “clean” water leak with no further damage done or restoration needed is around $2,700, while the average cost of drying out your home and repairing the damage done to areas like drywall and carpeting is around $7,500. Costs continue to go up from here depending on the source of the water, how much water, and how great the damage. Dangers of water damage A leak or burst pipe may seem only inconvenient, but water can do a lot of damage to your home if not cleaned up in a timely way. In addition to the damage that prolonged contact with water may have on things like carpeting and drywall, water may also lead to: Fire caused by contact with electrical outlets or sources. The growth of mold or mildew on both hard and soft surfaces. Softening and rotting of wood and other organic materials. Stains caused by minerals or particles in the water seeping into porous materials such as stone or wood. The spread of bacteria or disease in water from contaminated sources like sewers. Odors caused by mold, mildew, and bacteria. All of these issues are also considerably more costly to repair or remove from your home than simply the initial moisture. This is why it’s important to deal with water or leaks as soon as they are discovered, ideally within the first 24 to 48 hours to ensure that further issues don’t develop. Determining factors in cleanup costs While there are some basic costs per square foot in dealing with water or moisture issues in the home, there are several factors that can influence what your final costs will be. The first issue is the type of water. Clean water, or water that comes from a pipe or the rain, is the easiest to deal with and the least costly, with most problems costing around $3.75 per sq.ft. to dry out. Gray water, or water that has come from a dishwasher, washing machine, or other appliance that can contain chemicals, is more costly to deal with. The typical cost of gray water removal is around $4.50 per sq.ft. Black water, or water that has come from a contaminated source such as a backed up sewer pipe, is the the most costly to deal with at around $7 per sq.ft. In addition to the type of water, the amount of damage that has occurred, and the types of materials in your home that were damaged will also impact the total cost. For example, if there’s no damage beyond moisture, then drying out your home will be fast and easy to do, costing the least. However, if you have damage to drywall, this will cost more to repair as the old drywall will need to be removed. Damage to plaster walls will cost even more, as these are more time consuming to repair or replace. The size of the affected area and the location will also affect the cost of the clean. A small area of water, less than 100 square feet, in an easily reached location may cost as little as $230. However, a basement that is full of standing water or water more than an inch deep covering the entirety of the room will cost around $4,000 to clean up. Initial steps Dealing with water damage should always be left to the professionals. However, speed is of the essence if you want to help keep your total costs down. Therefore, it’s recommended that you follow these steps before they arrive to help deal with the damage: Turn off the power to the affected area to prevent electrical fires. Remove any throw rugs or moveable soft furnishings from the room. Mop up or bail out as much water as you can without using any electrical appliances. Move artwork, photographs, and decorative items to a safe place to dry. Open up cabinets and doors to help facilitate drying. Wipe down any walls or furnishings that have a small amount of moisture on them. Hang draperies out dry. Open any windows to help air out the area. Process of restoration Every situation dealing with water inside your home is going to be a little different, which may mean that the actual process of restoration may vary for your property as well. However, the general steps taken will likely resemble the following: The restoration team will make a thorough examination of your home and the potential damage to create a plan The water itself will be removed from your home using a combination of vacuums and powerful suction. Next, your property will be dried out thoroughly with the use of dehumidifiers and fans. Movable items may be removed to an offsite location for cleaning, including your furniture, drapes, throw rugs, and children’s toys. They will be thoroughly sanitized and deodorized before being returned. Finally, your home will be sanitized and deodorized using a combination of fogging equipment, air scrubbers, and antimicrobial treatments. If there was further damage done to your home such as wood rot, reconstruction will take place to restore the damaged areas. Types of restoration Beyond simply removing the water from your home, and dealing with the resulting moisture, you may need additional restoration as well. If the water has damaged your floors, walls, or other areas of the home, you may need to include these types of restoration in your estimate. Restoration Cost Replacing damaged drywall $200 for a 12x12 room or $1.40/sq.ft. Repairing damaged plaster walls $100-$300 for a 4-foot area or $6.25 - $18.75/sq.ft. Refinishing hardwood floors $3650 for 350 sq.ft. or $10.45/sq.ft. Replacing carpets $1200 to $1400 in a 16x16 room or $4.70 - $5.50/sq.ft. Repairing woodwork $70 an hour for carpentry work Mold remediation $500 for a 10x10 room or $5.00/sq.ft. How do companies charge? Most companies begin charging on a square foot basis with three categories of costs depending on the type of water: clean, gray, or black. Clean water removal and cleanup starts at $3.75 per sq.ft, gray water at $4.50 per sq.ft. and black water at $7 per sq.ft. After the initial cleaning and treating of your home, further costs are on a case by case basis, depending on the level of damage done, and the number of belongings that need to be repaired, cleaned, or replaced. It is not uncommon for further work to cost around $1,000 to $2,000 more than the initial sq.ft. estimate. Repair vs. replacement You may find depending on the level of damage done to your home that there are times when repairing something may be the recommended option, while at other times, replacement is warranted. This is largely due to the amount and level of damage or contamination, as well as how easy it is for something to be cleaned. For example, items that can be removed for cleaning are often restored as part of your total cleanup cost, such as drapes and furnishings, while things like drywall are often torn out and replaced entirely, which can add to your total costs by $200 per room. In some cases, materials such as carpeting and wood may begin to break down if left underwater for too long. Their state may require replacing if they aren’t dried out in a timely way, which can significantly increase your costs by up to $10,000 or more, which is why acting quickly is so important. Enhancement and improvement costs If the water levels have reached things like stored documents or filing cabinets, document drying may be necessary to salvage them. This is offered by some restoration companies, and costs are determined by the number of documents sent. Rates start around $50. Depending on how long the water was in your home before being detected, you may need mold remediationservices after clean up at a rate of around $500 per room. If your water damage was due to a leak, you may want to invest in a water or leak alarm for around $15, which can alert you to leaks before they have time to cause damage in the future. Additional considerations and costs Your insurance company may pay for the water damage, clean up and restoration. Check with your policy holder to be sure; in flood prone areas, additional flood insurance may be necessary to cover all contingencies. If you find mold in your home after water has infiltrated, do not disturb it in any way, and seal up the area. Mold can become airborne when touched, spreading to other areas, and potentially causing health problems. Always ask for a written, detailed estimate of the work to be performed before it’s begun so you know what will be taken care of, and can make arrangements for further restoration if necessary. Make sure that the company you hire to deal with your water damage is certified with the Institute of Inspection Cleaning and Restoration

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW TO HELP YOUR CHILDREN BUY A HOME

When responsible first-time home buyers need help buying a home, the family bank can sometimes lend a hand. Younger home buyers face a mountain of obstacles, including rising home prices and interest rates, too few homes for sale and unpaid college debt. Student debt is a major source of trouble. When the National Association of Realtors surveyed recent home buyers who had problems saving up a down payment, 53% of those in the youngest group (37 and younger) blamed student loan debt for their difficulty. Families appear to be pitching in to help, according to the results of that survey in the 2018 NAR Home Buyer and Seller Generational Trends Report. Among home buyers who made a down payment, 23% of those 37 and younger used a gift and 6% a loan from family or friends — the highest proportion for either type of assistance among all age groups. Family assistance like this works best when the kids qualify for a mortgage on their own and parents make the purchase more affordable with, for example, a bigger down payment or a lower interest rate, says Jeremy Heckman, a certified financial planner with Accredited Investors Wealth Management in Edina, Minnesota. First the ground rules To create a businesslike distance for these transactions, Heckman suggests that parents: Consider disclosing the assistance to all immediate family Consider treating all siblings equally Use contracts Document gifts Formal agreements offer important benefits, says San Francisco real estate attorney Andy Sirkin. They define obligations and minimize misunderstandings. And if parent lenders die or become incapacitated, all their heirs can view the transaction and its history. Ways to help Here are three ways parents can help make it more affordable for new home buyers to purchase a home: 1. Give money A gift of money is often best, Heckman says. Parents can write a check for any amount they choose. That’s it — no contract or ongoing commitments. Or they can pay all or part of an expense such as mortgage closing costs. Providing down payment assistance can help new borrowers avoid paying for private mortgage insurance, which helps keep their monthly payment low. HOW IT WORKS Strict rules dictate how cash gifts are used in a home purchase, and they vary by mortgage type, lender and lender offer, says Mark Case, a senior vice president at SunTrust Mortgage. Lenders like to see money gifts — easily traceable checks, bank transfers or wire transfers — in a borrower’s bank account three or four months before applying for a mortgage, Case says. Givers and recipients may need to sign letters confirming that the money isn’t a loan. When it comes to taxes, anyone can give any other person a gift up to $15,000 in value (money or, say, stocks) in 2018 without filing the gift-tax return IRS Form 709. So a parent with two children can give each of them — and even the children’s partners — up to $15,000 this year without having to complete Form 709. A tax professional can confirm how the rules apply to individuals’ specific circumstances. 2. Finance the mortgage Parents with cash to invest can become the mortgage lender, offering extra-easy terms, like no closing costs or no down payment. Heckman says they can charge a higher rate of interest on their money than it earns in a savings or money market account and still offer kids a lower-than-market mortgage rate. “I said, ‘This could be a win-win for both of us,’” says Jay Weil, an attorney in Wayne, New Jersey. He and his wife, Judy, have financed two mortgages for their son Matt and Matt’s wife, Allison. HOW IT WORKS Jay and Judy fully funded the younger couple’s first home, a Columbia, Maryland, townhouse. They decided to use a service that facilitates family loans. They worked with National Family Mortgage, which charges one-time setup fees of $725 to $2,100, depending on the loan size, and provides all necessary forms and documents to meet state, local and IRS requirements, guides families through the settlement and filing process and connects borrowers with loan servicers. Then in 2017, the Weils lent the kids money again, for a $579,900 house in Laurel, Maryland. Matt and Allison got two loans. One was a primary mortgage from SunTrust Mortgage for $259,900, at 3.875%. His parents provided a second mortgage for $260,000 at 1.98%. They used money earned from the sale of their first home to make a down payment. Family lenders must charge at least the Applicable Federal Rate, the minimum interest rate required to keep the assistance from being considered a gift. 3. Co-borrow Although riskier for parents, co-borrowing is another option. Mortgages with co-borrowers were nearly a quarter of all new-purchase mortgages in the third quarter of 2017, according to ATTOM Data Solutions, a real estate data company. Co-borrowing helps borrowers overcome a limited credit history or a too-high debt-to-income ratio, says Case, of SunTrust Mortgage. HOW IT WORKS Parents apply for the mortgage, too. They must meet the lender’s credit requirements and sign loan papers with their kids at closing. Aside from the mortgage itself, a separate family contract can define expectations and details such as who gets how much equity when the home sells and what happens in case problems arise, says Sirkin, the real estate attorney. For parents interested in being co-borrowers, there are some things to keep in mind: Not all loans allow co-borrowers, so it’s good to confirm the option when shopping for mortgages Some lenders may call this step co-signing, which may have different parameters, but the outcome is the same: Parents and children are equally responsible for the loan and any missed mortgage payments Parents’ credit could be affected, making it hard to finance another big purchase later, even if children make payments on time With all the headwinds facing first-time home buyers, family help sometimes makes all the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE APPRECIATION

One site http://(www.realestateabc.com) cites a 6.34% annual appreciate rate since 1968. But, that does account for: state, city, county, or neighborhood variations. It doesn't account for type of house (single family, townhouse, or condo/apartment). It doesn't account for urban, suburban, or rural. It doesn't account for style of home (rambler, colonial, Cape Cod, etc.). It doesn't account for boom areas or declining areas. It doesn't account for periods of recession. Get the idea? There's an old story about someone standing with one foot in boiling water and the other foot in a bucket of ice. Why? Because, on average, the water was just right for a bath. Yes, it's true, over the long term, on average, real estate will appreciate in the range you suggest. Even better, of course, is the leverage you have with real estate. If you buy a property with 10% down and it appreciates 5% in a year, then you have a 50% return on investment. Put 5% down and it appreciates 10% a year, then you have a 200% return on investment. But be careful. Lots of people were caught a year or two ago, at the top of the market, with those 100% financing programs. What's the return if you put 0% down and the property appreciates 20% a year? (Or even 2% a year?) Infinite! It sounded good until the market turned, the speculators realized they had horrible loans, and they couldn't refinance. Buy smart: Don't overpay. Know the comps. Choose something you're comfortable with. Look at the local and regional demographics--is industry moving in or out? Jobs coming in or out? (Interesting difference in perspective, for those who follow politics, during the Michigan Republican primaries. McCain said that some jobs in Michigan had been lost forever. Romney said that wasn't correct, just negative. People liked Romney's message, but take a look at Michigan real estate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE INTERNET TURNS 30 TODAY

Today, 30 years on from my original proposal for an information management system, half the world is online. It’s a moment to celebrate how far we’ve come, but also an opportunity to reflect on how far we have yet to go. The web has become a public square, a library, a doctor’s office, a shop, a school, a design studio, an office, a cinema, a bank - and so much more. Of course with every new feature, every new website, the divide between those who are online and those who are not increases, making it all the more imperative to make the web available for everyone. And while the web has created opportunity, given marginalised groups a voice, and made our daily lives easier, it has also created opportunities for scammers, given a voice to those who spread hatred, and made all kinds of crime easier to commit. Against the backdrop of news stories about how the web is misused, it’s understandable that many people feel afraid and unsure whether the web really is a force for good. But given how much the web has changed in the past 30 years, it would be defeatist and unimaginative to assume that the web as we know it can’t be changed for the better in the next 30. If we give up on building a better web now, then the web will not have failed us. We will have failed the web. To tackle any problem, we must clearly outline and understand it. I broadly see three sources of dysfunction affecting today’s web: 1. Deliberate, malicious intent, such as state-sponsored hacking and attacks, criminal behaviour, and online harassment. 2. System design that creates perverse incentives where user value is sacrificed, such as ad-based revenue models that commercially reward clickbait and the viral spread of misinformation. 3. Unintended negative consequences of benevolent design, such as the outraged and polarised tone and quality of online discourse. While the first category is impossible to eradicate completely, we can create both laws and code to minimize this behaviour, just as we have always done offline. The second category requires us to redesign systems in a way that changes incentives. And the final category calls for research to understand existing systems and model possible new ones or tweak those we already have. You can’t just blame one government, one social network or the human spirit. Simplistic narratives risk exhausting our energy as we chase the symptoms of these problems instead of focusing on their root causes. To get this right, we will need to come together as a global web community. At pivotal moments, generations before us have stepped up to work together for a better future. With the Universal Declaration of Human Rights, diverse groups of people have been able to agree on essential principles. With the Law of the Sea and the Outer Space Treaty, we have preserved new frontiers for the common good. Now too, as the web reshapes our world, we have a responsibility to make sure it is recognised as a human right and built for the public good. This is why the Web Foundation is working with governments, companies and citizens to build a new Contract for the Web. This contract was launched in Lisbon at Web Summit, bringing together a group of people who agree we need to establish clear norms, laws and standards that underpin the web. Those who support it endorse its starting principles, and together we are working out the specific commitments in each area. No one group should do this alone, and all input will be appreciated. Governments, companies and citizens are all contributing, and we aim to have a result later this year. Governments must translate laws and regulations for the digital age. They must ensure markets remain competitive, innovative and open. And they have a responsibility to protect people’s rights and freedoms online. We need open web champions within government — civil servants and elected officials who will take action when private sector interests threaten the public good and who will stand up to protect the open web. Companies must do more to ensure their pursuit of short-term profit is not at the expense of human rights, democracy, scientific fact or public safety. Platforms and products must be designed with privacy, diversity and security in mind. This year, we’ve seen a number of tech employees stand up and demand better business practices. We need to encourage that spirit. And most importantly of all, citizens must hold companies and governments accountable for the commitments they make, and demand that they respect the web as a global community with citizens at its heart. If we don’t elect politicians who defend a free and open web, if we don’t do our part to foster constructive healthy conversations online, if we continue to click consent without demanding our data rights be respected, we walk away from our responsibility to ensure these issues are a priority for our

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

STATE BY STATE CLOSING GUIDE

ALABAMA Attorneys and title companies handle closings. Conveyance is by warranty deed. Mortgages are the customary security instruments. Foreclosures are non-judicial. Foreclosure notices are published once a week for three weeks on a county-by-county basis. The foreclosure process takes a minimum of 21 days from the date of first publication. After the sale, there is a one-year redemption period. Alabamans use ALTA policies to insure titles. Buyers and sellers negotiate who is going to pay the closing costs and usually split them equally. Property taxes are due and payable annually on October 1st. ALASKA Title companies, lenders, and private escrow companies all handle real estate escrows. Conveyance is by warranty deed. Deeds of trust with private power of sale are the customary security instruments. Foreclosures take 90-120 days. Alaskans use ALTA owner’s and lender’s policies with standard endorsements. There are no documentary or transfer taxes. Buyer and seller usually split the closing costs. Property tax payment dates vary throughout the state. ARIZONA Title companies and title agents both handle closings. Conveyance is by warranty deed. Whereas deeds of trust are the security instruments most often used, mortgages and “agreements for sale” are used approximately 20% of the time. Foreclosure depends upon the security instrument. For deeds of trust, the foreclosure process takes about 91 days. Arizonans use ALTA owner’s and lender’s policies, standard or extended, with standard endorsements. The seller customarily pays for the owner’s policy, and the buyer pays for the lender’s policy. They split escrow costs otherwise. There are no documentary, transfer, or mortgage taxes. The first property tax installment is due October 1st and delinquent November 1st; the second half is due March 1st and delinquent May 1st. Arizona is a community-property state. ARKANSAS Title agents handle escrows, and attorneys conduct closings. Conveyance is by warranty deed. Mortgages are the customary security instruments. Foreclosure requires judicial proceedings, but there are no minimum time limits for completion. Arkansans use ALTA policies and endorsements and receive a 40% discount for reissuance of prior policies. Buyers and sellers pay their own escrow costs. The buyer pays for the lender’s policy; the seller pays for the owner’s. The buyer and seller split the state documentary tax. Property taxes come due three times a year as follows: the third Monday in April, the third Monday in July, and the tenth day of October. CALIFORNIA Not only do escrow procedures differ between Northern and Southern California, they also vary somewhat from county to county. Title companies handle closings through escrow in Northern California, whereas escrow companies and lenders handle them in Southern California. Conveyance is by grant deed. Deeds of trust with private power of sale are the security instruments used throughout the state. Foreclosure requires a three-month waiting period after the recording of the notice of default. After the waiting period, the notice of sale is published each week for three consecutive weeks. The borrower may reinstate the loan at any time prior to five business days before the foreclosure sale. All in all, the procedure takes about four months. Californians have both ALTA and CLTA policies available. In Southern California, sellers pay the title insurance premium and the transfer tax. Buyer and seller split the escrow costs. In the Northern California counties of Amador, Merced, Plumas, San Joaquin, and Siskiyou, buyers and sellers share title insurance and escrow costs equally. In Butte County, sellers pay 75%; buyers pay 25%. In Alameda, Calaveras, Colusa, Contra Costa, Lake, Marin, Mendocino, San Francisco, San Mateo, Solano, and Sonoma counties, buyers pay for the title insurance policy, whereas sellers pay in the other Northern California counties. Each California county has its own transfer tax; some cities have additional charges. Property taxes may be paid annually on or before December 10th, or semiannually by December 10th and April 10th. Annual taxes are set at no more than 1 percent of the property’s base value or purchase price. Each year following this, a two percent increase is permissible. (Proposition 13). A property transfer between husband and wife will not result in a new tax assessment of one percent of the fair market value. The homeowner’s exemption allows an owner to be exempt of the first $7,000 of the property’s full cash value. This exemption is allowed only for primary residences. Homeowner must obtain a form from the county tax assessor, and submit it by February 15 of the current tax year to be eligible for the exemption. Californians over the age of 55 also have the option of moving primary residences and taking their prior “old” tax base with them to the new property. This exception may be used only once in a lifetime. Referred to as the” Senior Citizen’s Replacement Dwelling Benefit”, Proposition 60 was a constitutional amendment approved by the voters in 1986. It is codified in Section 69.5 of the Revenue & Taxation Code, and allows the transfer of an existing Proposition 13 base year value from a former residence to a replacement residence, if certain conditions are met. California is a community-property state. COLORADO Title companies, brokers, and attorneys all may handle closings. Conveyance is by warranty deed. Deeds of trust are the customary security instruments. Public trustees must sell foreclosure properties within 45-60 days after the filing of a notice of election and demand for sale, but they will grant extensions up to six months following the date of the originally scheduled sale. Subdivided properties may be redeemed within 75 days after sale; agricultural properties may be redeemed within 6 months after sale. The first junior lien holder has 10 additional days to redeem, and the second and other junior lienholders have an additional 5 days each. The public trustee is normally the trustee shown on the deed of trust, a practice unique to Colorado. Foreclosures may be handled judicially. Coloradans have these title insurance policy options: ALTA owner’s, lender’s, leasehold, and construction loan; endorsements are used, too. Although they are negotiable, closing costs are generally split between buyer and seller, and seller normally pays for title insurance. Sellers pay the title insurance premium and the documentary transfer tax. Property taxes may be paid annually at the end of April or semiannually at the ends of February and July. CONNECTICUT Attorneys normally conduct closings. Most often conveyance is by warranty deed, but quitclaim deeds do appear. Mortgages are the security instruments. Judicial foreclosures are the rule, either by a suit in equity for strict foreclosure or by a court decree of sale. Court decreed sales preclude redemption, but strict foreclosures allow redemption for 3-6 months, depending upon the discretion of the court. There are lender’s and owner’s title insurance policies available with various endorsements. Buyers customarily pay for examination and title insurance, while sellers pay the documentary and conveyance taxes. Property tax payment dates vary by town. DELAWARE Attorneys handle closings. Although quitclaim and general warranty deeds are sometimes used, most conveyances are by special warranty deeds. Mortgages are the security instruments. Foreclosures are judicial and require 90-120 days to complete. ALTA policies and endorsements are prevalent. Buyers pay closing costs and the owner’s title insurance premiums. Buyers and sellers share the state transfer tax. Property taxes are on an annual basis and vary by county. DISTRICT OF COLUMBIA Attorneys, title insurance companies, or their agents may conduct closings. Conveyances are by bargain-and-sale deeds. Though mortgages are available, the deed of trust, containing private power of sale, is the security instrument of choice. Foreclosures require at least six weeks and start with a 30-day notice of sale sent by certified mail. ALTA policies and endorsements insure title. Buyers generally pay closing costs, title insurance premiums, and recording taxes. Sellers pay the transfer tax. Property taxes fall due annually or if they’re less than $100,000, semiannually, on September 15th and March 31st. FLORIDA Title companies and attorneys handle closings. Conveyance is by warranty deed. Mortgages are the customary security instruments. Foreclosures are judicial and take about 3 months. They involve service by the sheriff, a judgment of foreclosure and sale, advertising, public sale, and finally issuance of a certificate of sale and certificate of title. ALTA policies are commonplace. Buyers pay the escrow and closing costs, while county custom determines who pays for the title insurance. Sellers pay the documentary tax. Property taxes are payable annually, but the due and delinquent dates are months apart, November 1st and April 1st. Under Florida law, a widow or widower has the right to live in their deceased spouse’s house for the remainder of his or her life, even if the home is willed to someone else. A Homestead Exemption exists for an owner’s residence in Florida. Florida’s exemption is unique because it lacks any monetary cap on the homestead protection, while other states which offer a homestead exemption usually place a limit on the valuation which can be protected. GEORGIA Attorneys generally take care of closings. Conveyance is by warranty deed. Security deeds are the security instruments. Foreclosures are non-judicial and take little more than a month because there’s a power of attorney right in the security deed. Foreclosure advertising must appear for 4 consecutive weeks prior to the first Tuesday of the month; that’s when foreclosure sales take place. Georgians use ALTA title insurance policies, including owner’s and lender’s, and they use binders and endorsements. Buyers pay title insurance premiums and also closing costs usually. Sellers pay transfer taxes. Property tax payment dates vary across the state. HAWAII By law, only attorneys may prepare property transfer documents, but there are title and escrow companies available to handle escrows and escrow instructions. Conveyance of fee-simple property is by warranty deed; conveyance of leasehold property, which is common throughout the state, is by assignment of lease. Condominiums are everywhere in Hawaii and may be fee simple or leasehold. Sales of some properties, whether fee simple or leasehold, are by agreement of sale. Mortgages are the security instruments. Hawaiians use judicial foreclosures rather than powers of sale for both mortgages and agreements of sale. These foreclosures take 6-12 months and sometimes more, depending upon court schedules. Title companies issue ALTA owner’s and lender’s policies and make numerous endorsements available. Buyers and sellers split escrow fees. Sellers pay the title search costs and the conveyance tax. Buyers pay title insurance premiums for the owner’s and lender’s policies. Property taxes come due twice a year, on February 20th and again on August 20th. IDAHO Closings are handled through escrow. Conveyance is by warranty deed or corporate deed, though often there are contracts of sale involved. Either mortgages or deeds of trust may be the security instruments. Deeds of trust which include power of sale provisions are restricted to properties in incorporated areas and properties elsewhere which don’t exceed 20 acres. After the notice of default has been recorded, deed-of-trust foreclosures take at least 120 days, and there’s no redemption period. Judicial foreclosures for mortgages take about a year, depending upon court availability, and there’s a 6-12 month redemption period after that, depending on the type of property involved. Idahoans use ALTA policies and various endorsements. Buyers and sellers split escrow costs in general and negotiate who’s going to pay the title insurance premiums. There are no documentary taxes, mortgage taxes, or transfer taxes, but there are property taxes, and they’re due annually in November and delinquent on December 20th or semiannually on December 20th and June 20th. Idaho is a community-property state. ILLINOIS Title companies, lenders, and attorneys may conduct closings, but only attorneys may prepare documents. Lenders generally hire attorneys and have them prepare all the paperwork. Conveyance is by warranty deed. Recorded deeds must include a declaration of the sales price. Mortgages are the customary security instruments. Judicial foreclosure is mandatory and takes at least a year from the filing of the default notice to the expiration of the redemption period. Illinoisans use ALTA policies. Buyers usually pay the closing costs and the lender’s title insurance premiums; sellers pay the owner’s title insurance premiums and the state and county transfer taxes. Property tax payment dates vary. Larger counties typically schedule them for March 1st and September 1st, and smaller counties schedule them for June 1st and September 1st. INDIANA Title companies, lenders, real estate agents, and attorneys handle closings. Conveyance is by warranty deed. Mortgages are the customary security instruments. Judicial foreclosures are required; execution of judgments varies from 3 months after filing of the complaint in cases involving mortgages drawn up since July 1, 1975, to 6 months for those drawn up between January 1, 1958, and July 1, 1975, to 12 months for those drawn up before that. Immediately following the execution sale, the highest bidder receives a sheriff’s deed. Hoosiers use ALTA policies and certain endorsements. Buyers usually pay closing costs and the lender’s title insurance costs, while sellers pay for the owner’s policy. There are no documentary, mortgage, or transfer taxes. Property taxes fall due on May 10th and November 10th. IOWA Attorneys may conduct closings, and so may real estate agents. Conveyance is usually by warranty deed. Mortgages and deeds of trust are both authorized security instruments, but lenders prefer mortgages because deeds of trust do not circumvent judicial foreclosure proceedings anyway. Those proceedings take at least 4 -6 months. Since Iowa is the only state which does not authorize private title title insurance, Iowans who want it must go through a state administered title company or fund. Buyers and sellers share the closing costs; sellers pay the documentary taxes. Property taxes are due July 1st based upon the previous January’s assessment. KANSAS Title companies, lenders, real estate agents, attorneys, and independent escrow firms all conduct closings. Anyone who conducts a title search must be a licensed abstracter, a designation one receives after passing strict tests and meeting various requirements. Because many land titles stem from Indian origins, deeds involving Indians as parties to a transaction go before the Indian Commission for approval. Conveyance is by warranty deed. Mortgages are the customary security instruments. Judicial foreclosures, the only ones allowed, take about 6 months from filing to sale. Redemption periods vary, the longest being 12 months. Kansans use ALTA policies and endorsements. Buyers and sellers divide closing costs. Buyers pay the lender’s policy costs and the state mortgage taxes; sellers pay for the owner’s policy. Property taxes come due November 1st, but they needn’t be paid in a lump sum until December 31st. They may also be paid in two installments, the first on December 20th and the second on June 20th. KENTUCKY Attorneys conduct closings. Conveyance is by grant deed or by bargain-and-sale deed. Deeds must show the name of the preparer, the amount of the total transaction, and the recording reference by which the grantor obtained title. Mortgages are the principal security instruments because deeds of trust offer no power-of-sale advantages. Enforcement of any security instrument requires a decree in equity, a judicial foreclosure proceeding. Kentuckians use ALTA policies and endorsements. Sellers pay closing costs; buyers pay recording fees. Responsibility for payment of title insurance premiums varies according to locale. Property taxes are payable on an annual basis; due dates vary from county to county. LOUISIANA Either attorneys or corporate title agents may conduct closings, but a notary must authenticate the documentation. Conveyance is by warranty deed or by act of sale. Mortgages are the security instruments generally used in commercial transactions, while vendor’s liens and seller’s privileges are used in other purchase money situations. Foreclosures are swift (60 days) and sure (no right of redemption). Successful foreclosure sale bidders receive an adjudication from the sheriff. Louisianians use ALTA owner’s and lender’s policies and endorsements. Buyers generally pay the title insurance and closing costs. There are no mortgage or transfer taxes. Property tax payment dates vary from parish to parish (parishes are like counties). Louisiana is a community-property state. MAINE Attorneys conduct closings. Conveyance is by warranty or quitclaim deed. Mortgages are the security instruments. Foreclosures may be initiated by any of the following: an act of law for possession; entering into possession and holding the premises by written consent of the mortgagor; entering peaceably, openly, and unopposed in the presence of two witnesses and taking possession; giving public notice in a newspaper for three successive weeks and recording copies of the notice in the Registry of Deeds, and then recording the mortgage within 30 days of the last publication; or by a bill in equity (special cases). In every case, the creditor must record a notice of foreclosure within 30 days. Judicial foreclosure proceedings are also available. Redemption periods vary from 90-365 days depending on the method of foreclosure. Mainers use ALTA owner’s and lender’s policies and endorsements. Buyers pay closing costs and title insurance fees; buyers and sellers share the documentary transfer taxes. Property taxes are due annually on April 1st. MARYLAND Attorneys conduct closings, and there has to be a local attorney involved. Conveyance is by grant deed, and the deed must state the consideration involved. Although mortgages are common in some areas, deeds of trust are more prevalent as security instruments. Security instruments may include a private power of sale, so it naturally is the foreclosure method of choice. Marylanders use ALTA policies and endorsements. Buyers pay closing costs, title insurance premiums, and transfer taxes. Property taxes are due annually on July 1st. Police officers in Prince George’s County who are first-time home buyers get a break on their transfer taxes at closing under a law that took effect July 1, 2006. Officers pay 1 percent of the purchase price rather than 14%, the regular rate. County school teachers were made eligible for the same tax break in an earlier law without the first-time buyer limitation. Teachers must commit to living in the house for at least three years and maintain their teaching position with the county during that time. MASSACHUSETTS Attorneys handle closings. Conveyance is by warranty deed in the western part of the state and by quitclaim deed in the eastern part. Mortgages with private power of sale are the customary security instruments. Creditors forced to foreclose generally take advantage of the private power of sale, but they may foreclose through peaceable entry (entering unopposed in the presence of two witnesses and taking possession for 3 years) or through the rarely used judicial writ of entry. Frequently, cautious creditors will foreclose through both power of sale and peaceable entry. People in Massachusetts use ALTA owner’s and lender’s title insurance policies and endorsements. Buyers pay closing costs and title insurance fees, except in Worcester, where sellers pay. Sellers pay the documentary taxes. Property taxes are payable in two installments, November 1st and May 1st. MICHIGAN Title companies, lenders, real estate agents, and attorneys may conduct closings. Conveyance is by warranty deed which must give the full consideration involved or be accompanied by an affidavit which does. Many transactions involve land contracts. Mortgages are the security instruments. Private foreclosure is permitted; it requires advertising for 4 consecutive weeks and a sale at least 28 days following the date of first publication. The redemption period ranges from 1 to 12 months. Michiganders use ALTA policies and endorsements. Buyers generally pay closing costs and the lender’s title insurance premium, and sellers pay the state transfer tax and the owner’s title insurance premium. Those property taxes which pay for city and school expenses fall due July 1st; others (county taxes, township taxes, and some school taxes) fall due on the first of December. In many tax jurisdictions, taxpayers may opt to pay their taxes in two equal installments without penalty. MINNESOTA Title companies, lenders, real estate agents, and attorneys may conduct closings. Conveyance is by warranty deed. Although deeds of trust are authorized, mortgages are the customary security instruments. The redemption period following a foreclosure is 6 months in most cases; it is 12 months if the property is larger than 10 acres or the amount claimed to be due is less than 2/3 of the original debt. This is a strong abstract state. Typically a buyer will accept an abstract and an attorney’s opinion as evidence of title, even though the lender may require title insurance. People in the Minneapolis-St. Paul area use the Torrens system. Minnesotans use ALTA policies. Buyers pay the lender’s and owner’s title insurance premiums and the mortgage tax. Sellers usually pay the closing fees and the transfer taxes. Property taxes are due on May 15th and October 15th. MISSISSIPPI Attorneys conduct real estate closings. Conveyance is by warranty deed. Deeds of trust are the customary security instruments. Foreclosure involves a non-judicial process which takes 21-45 days. Mississippians use ALTA policies and endorsements. Buyers and sellers negotiate the payment of title insurance premiums and closing costs. There are no documentary, mortgage, or transfer taxes. Property taxes are payable on an annual basis and become delinquent February 1st. MISSOURI Title companies, lenders, real estate agents, and attorneys may conduct closings. In the St. Louis area, title company closings predominate. In the Kansas City area, an escrow company or a title company generally conducts the closing. Conveyance is by warranty deed. Deeds of trust are the customary security instruments and allow private power of sale. The trustee must be named in the deed of trust and must be a Missouri resident. Foreclosure involves publication of a sale notice for 21 days, during which time the debtor may redeem the property or file a notice of redemption. The foreclosure sale buyer receives a trustee’s deed. Missourians use ALTA policies and endorsements. Buyers and sellers generally split the closing costs. Sellers in western Missouri usually pay for the title insurance polices, while elsewhere the buyers pay. There are no documentary, mortgage, or transfer taxes. Property taxes are payable annually and become delinquent January 1st for the previous year. MONTANA Real estate closings are handled through escrow. Conveyance is by warranty deed, corporate deed, or grant deed. Mortgages, deeds of trust, and unrecorded contracts of sale are the security instruments. Mortgages require judicial foreclosure, and there’s a 6-12-month redemption period following sale. Foreclosure on deeds of trust involves filing a notice of default and then holding a trustee sale 120 days later. Montanans use ALTA policies and endorsements. Buyers and sellers split the escrow and closing costs; sellers usually pay for the title insurance policies. There are no documentary, mortgage, or transfer taxes. Montanans may pay their property taxes annually by November 30th or semi-annually by November 30th and May 31st. NEBRASKA Title companies, lenders, real estate agents, and attorneys all conduct closings. Conveyance is by warranty deed. Mortgages and deeds of trust are the security instruments. Mortgage foreclosures require judicial proceedings and take about 6 months from the date of the first notice when they’re uncontested. Deeds of trust do not require judicial proceedings and take about 90 days. Nebraskans use ALTA policies and endorsements. Buyers and sellers split escrow and closing costs; sellers pay the state’s documentary taxes. Property taxes fall due April 1st and August 1st. NEVADA Escrow similar to California’s is used for closings. Conveyance is by grant deed, bargain-and-sale deed, or quitclaim deed. Deeds of trust are the customary security instruments. Foreclosure involves recording a notice of default and mailing a copy within 10 days. Following the mailing there is a 35-day reinstatement period. After that, the beneficiary may accept partial payment or payment in full for a 3-month period. Then come advertising the property for sale for 3 consecutive weeks and finally the sale itself. All of this takes about 4 1/2 months. Nevadans use both ALTA and CLTA policies and endorsements. Buyers and sellers share escrow costs. Buyers pay the lender’s title insurance premiums; sellers pay the owner’s and the state’s transfer tax. Property taxes are payable in one, two, or four payments, the first one being due July 1st. Nevada is a community-property state. NEW HAMPSHIRE Attorneys conduct real estate closings. Conveyance is by warranty or quitclaim deed. Mortgages are the customary security instruments. Lenders may foreclosure through judicial action or through whatever power of sale was written into the mortgage originally. Entry, either by legal action or by taking possession peaceably in the presence of two witnesses, is possible under certain legally stated conditions. There is a one-year right-of-redemption period. The people of New Hampshire use ALTA owner’s and lender’s policies. Buyers pay all closing costs and title fees except for the documentary tax; that’s shared with the sellers. Property tax payment dates vary across the state. NEW JERSEY Attorneys handle closings in northern New Jersey, and title agents customarily handle them elsewhere. Conveyance is by bargain-and-sale deed with covenants against grantors’ acts (equivalent to a special warranty deed). Mortgages are the most common security instruments though deeds of trust are authorized. Foreclosures require judicial action which take 6-9 months if they’re uncontested. New Jerseyites use ALTA owner’s and lender’s policies. Both buyer and seller pay the escrow and closing costs. The buyer pays the title insurance fees, and the seller pays the transfer tax. Property taxes are payable quarterly on the first of April, July, October, and January. NEW MEXICO Real estate closings are conducted through escrows. Conveyance is by warranty or quitclaim deed. Deeds of trust and mortgages are the security instruments. Foreclosures require judicial proceedings, and there’s a 9-month redemption period after judgment. New Mexicans use ALTA owner’s policies, lender’s policies, and construction and leasehold policies; they also use endorsements. Buyers and sellers share escrow costs equally; sellers pay the title insurance premiums. There are no documentary, mortgage, or transfer taxes. Property taxes are payable November 5th and April 5th. New Mexico is a community-property state. NEW YORK All parties to a transaction appear with their attorneys for closing. Conveyance is by bargain-and-sale deed. Mortgages are the security instruments in this lien-theory state. Foreclosures require judicial action and take several months if uncontested or longer if contested. New Yorkers use policies of the New York Board of Title Underwriters almost exclusively, though some use the New York State 1946 ALTA Loan Policy. Buyers generally pay most closing costs, including all title insurance fees and mortgage taxes. Sellers pay the state and city transfer taxes. Property tax payment dates vary across the state. NORTH CAROLINA Attorneys or lenders may handle closings, and corporate agents issue title insurance. Conveyance is by warranty deed. Deeds of trust with private power of sale are the customary security instruments. Foreclosures are non-judicial, with a 10-day redemption period following the sale. The entire process takes between 45 and 60 days. North Carolinians use ALTA policies, but these require an attorneys opinion before they’re issued. Buyers and sellers negotiate the closing costs, except that buyers pay the recording costs, and sellers pay the document preparation and transfer tax costs. Property taxes fall due annually on the last day of the year. NORTH DAKOTA Lenders, together with attorneys, conduct closings. Conveyance is by warranty deed. Mortgages are the security instruments. Foreclosures require about 6 months, including the redemption period. North Dakotans base their title insurance on abstracts and attorneys’ opinions. Buyers usually pay for the closing, the attorney’s opinion, and the title insurance; sellers pay for the abstract. There are no documentary or transfer taxes. Property taxes are due March 15th and October 15th. OHIO Title companies and lenders handle closings. Conveyance is by warranty deed. Dower rights require that all documents involving a married person must be executed by both spouses. Mortgages are the security instruments. Judicial foreclosures, the only kind allowed, require about 6-12 months. People in Ohio use ALTA policies; they get a commitment at closing and a policy following the recording of documents. Buyers and sellers negotiate who’s going to pay closing costs and title insurance premiums, but sellers pay the transfer taxes. Property tax payment dates vary throughout the state. OKLAHOMA Title companies, lenders, real estate agents, and attorneys may conduct closings. Conveyance is by warranty deed. Mortgages are the usual security instruments. Foreclosures may be by judicial action or by power of sale if properly allowed for in the security instrument. Oklahomans use ALTA policies and endorsements. Buyers and sellers share the closing costs, except that the buyer pays the lender’s policy premium, the seller pays the documentary transfer tax, and the lender pays the mortgage tax. Property taxes may be paid annually on or before the last day of the year or semi-annually by December 31st and March 31st. OREGON Closings are handled through escrow. Conveyance is by warranty or bargain-and-sale deed, but land sales contracts are common. Mortgage deeds and deeds of trust are the security instruments. Oregon attorneys usually act as trustees in non-judicial trust-deed foreclosures. Such foreclosures take 5 months from the date of the sale notice; defaults may be cured as late as 5 days prior to sale. Judicial foreclosures on either mortgages or trust deeds allow for a one-year redemption period following sale. Oregonians use ALTA and Oregon Land Title Association policies. Buyers and sellers split escrow costs and transfer taxes; the buyer pays for the lender’s title insurance policy, and the seller pays for the owner’s policy. Property taxes are payable the 15th of November, February, and May; if paid in full by November 15th, owners receive a 3% reduction. PENNSYLVANIA Title companies, real estate agents, and approved attorneys may handle closings. Conveyance is by special or general warranty deed. Mortgages are the security instruments. Foreclosures take 1-6 months from filing through judgment plus another 2 months or more from judgment through sale. State law restricts aliens in owning real property with respect to acreage and income and includes special restrictions affecting farmland. Pennsylvanians use ALTA owner’s, lender’s, and leasehold policies. Buyers pay closing costs and title insurance fees; buyers and sellers split the transfer taxes. Property tax payment dates differ across the state. RHODE ISLAND Attorneys usually conduct closings, but banks and title companies may also conduct them. Conveyance is by warranty or quitclaim deed. Mortgages are the usual security instruments. Foreclosures follow the power-of-sale provisions contained in mortgage agreements and take about 45 days. Power-of-sale foreclosures offer no redemption provisions, whereas any other foreclosure method carries a 3-year right of redemption. Rhode Islanders use ALTA policies and endorsements. Buyers pay title insurance premiums and closing costs; sellers pay documentary taxes. Property taxes are payable annually, semi-annually, or quarterly with the first payment due in July. SOUTH CAROLINA Attorneys customarily handle closings. Conveyance is by warranty deed. Mortgages are most often the security instruments. Foreclosures are judicial and take 3-5 months depending on court schedules. Foreclosure sales take place on the first Monday of every month following publication of notice once a week for 3 consecutive weeks. South Carolinians use owner’s and lender’s ALTA policies and endorsements. Buyers pay closing costs, title insurance premiums, and state mortgage taxes; sellers pay the transfer taxes. Property tax payment dates vary across the state from September 15 to December 31. SOUTH DAKOTA Title companies, lenders, real estate agents, and attorneys may handle closings. Conveyance is by warranty deed. Mortgages are the usual security instruments. Foreclosures may occur through judicial proceedings or through the power-of-sale provisions contained in certain mortgage agreements. Sheriff’s sales follow publication of notice by 30 days. The redemption period allowed after sale of parcels smaller than 40 acres and encumbered by mortgages containing power of sale is 180 days; in all other cases, it’s a year. There’s a unique statute which stipulates that all land must be platted in lots or described by sectional references rather than by metes and bounds unless it involves property described in documents recorded prior to 1945. There’s another unique statute called the Affidavit of Possession Statute. Certain exceptions aside, it provides that any person having an unbroken chain of title for 22 years thereafter has a marketable title free of any defects occurring prior to that 22-year period. South Dakotans use ALTA policies and endorsements. Sellers pay the transfer taxes and split the other closing costs, fees, and premiums with the buyers. Property taxes come due May 1st and November 1st. TENNESSEE A title company attorney, a party to the contract, a lender’s representative, or an outside attorney may conduct a closing. Conveyance is by warranty or quitclaim deed. Deeds of trust are the customary security instruments. Foreclosures, which are handled according to trustee sale provisions, are swift, that is, 22 days from the first publication of the notice until the public sale, and there is normally no right of redemption after that. Tennesseans use ALTA policies and endorsements. The payment of title insurance premiums, closing costs, mortgage taxes, and transfer taxes varies according to local practice. Property taxes are payable annually on the first Monday in October. TEXAS Title companies normally handle closings. Conveyance is by warranty deed. Deeds of trust are the most common security instruments. Following the posting of foreclosure sales at the local courthouse for at least 21 days, the sales themselves take place at the courthouse on the first Tuesday of the month. Texans use only Texas standard policy forms of title insurance. Buyers and sellers negotiate closing costs. There aren’t any documentary, transfer, or mortgage taxes. Property taxes notices are send around October 1st, but are not due until the end of the year. Texas is a community-property state. UTAH Lenders handle about 60% of the escrows and title companies handle the rest. Conveyance is by warranty deed. Mortgages and deeds of trust with private power of sale are the security instruments. Mortgage foreclosures require judicial proceedings which take about a year; deed-of-trust foreclosures take advantage of private power-of-sale provisions and take about 4 months. Utahans use ALTA owner’s and lender’s policies and endorsements. Buyers and sellers split escrow fees, and sellers pay the title insurance premiums. There are no documentary, transfer, or mortgage taxes. Property taxes are payable November 30th. VERMONT Attorneys take care of closings. Conveyance is by warranty or quitclaim deed. Mortgages are the customary security instruments, but large commercial transactions often employ deeds of trust . Mortgage foreclosures require judicial proceedings for „strict foreclosure‰; after sale, there is a redemption period of one year for mortgages dated prior to April 1, 1968, and 6 months for all others. Vermonters use ALTA owner’s and lender’s policies and endorsements. Buyers pay recording fees, title insurance premiums, and transfer taxes. Property tax payment dates vary across the state. VIRGINIA Attorneys and title companies conduct real estate closings. Conveyance is by bargain-and-sale deed. Deeds of trust are the customary security instruments. Foreclosure takes about 2 months. Virginians use ALTA policies and endorsements. Buyers pay the title insurance premiums and the various taxes. Property tax payment dates vary. WASHINGTON Title companies, independent escrow companies, lenders, and attorneys may handle escrows. An attorney must prepare real estate documents, but there is a limited practice rule which lets licensed non-attorneys prepare most of the commonly used real estate documents. Conveyance is by warranty deed. Both deeds of trust with private power of sale and mortgages are used as security instruments. Mortgages require judicial foreclosure. Deeds of trust require that a notice of default be sent first and 30 days later, a notice of sale. The notice of sale must be recorded, posted, and mailed at least 90 days before the sale, and the sale cannot take place any earlier than 190 days after the actual default. Sellers generally pay the title insurance premiums and the revenue tax; buyers and sellers split everything else. Property taxes are payable April 30th and October 31st. Washington is a community-property state. WEST VIRGINIA Attorneys conduct escrow closings, although lenders and real estate agents do them occasionally. Conveyance is by warranty deed, bargain-and-sale deed, or grant deed. Deeds of trust are the customary security instruments. Foreclosures are great for lenders; when uncontested, they take only a month. West Virginians use ALTA policies and endorsements. Buyers pay the title insurance premiums and sellers pay the documentary taxes; they divide the other closing costs. Property taxes may be paid in a lump sum after July 6th or in two installments on September 1st and March 1st. WISCONSIN Lenders and title companies conduct what are called “table closings” throughout the state, except in the Milwaukee area, where attorneys conduct the closings. Conveyance is by warranty deed, but installment land contracts are used extensively, too. Mortgages are the customary security instruments. Within limits, the actual mortgage wording determines foreclosure requirements; redemption varies from 2 months for abandoned property to a full year in some cases. Lenders generally waive their right to a deficiency judgment in order to reduce the redemption period to 6 months. Wisconsinites use ALTA policies and endorsements. Buyers generally pay closing costs and the lender’s policy fees; sellers pay the owner’s policy fees and the transfer taxes. In transactions involving homesteads, conveyances may be void if not joined into by the spouse. Property taxes may be paid in full on February 28th, or they may be paid half on January 31st and half on July 31st. Wisconsin is a quasi-community-property state. WYOMING Real estate agents generally conduct closings. Conveyance is by warranty deed. Mortgages are the usual security instruments. Foreclosures may follow judicial or power-of-sale proceedings. Residential foreclosures take around 120 days; agricultural foreclosures, around 13 months. Wyomingites use ALTA owner’s and lender’s policies and endorsements. Buyer and seller negotiate who’s going to pay the various closing costs and title insurance fees. There are no documentary, mortgage, or transfer taxes. Property taxes may be paid annually December 31st or semi-annually September 1st and March

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS DISPOSABLE INCOME?

You’ve likely heard terms such as net income, gross income, adjusted gross income, take-home pay, and disposable income. But do you really know what each term means, both in definition and how it relates to your financial health? And if you don’t, how can you move forward with a realistic budget in mind? To understand what disposable income is, it also is important to understand how it differs from discretionary income and how to budget effectively. What Is Disposable Income? The money you have left over from your salary after you’ve paid federal, state, and local taxes is your disposable personal income (DPI), also referred to as your net pay. Disposable income also has economic significance. Not only is it one of the major determinants of consumer spending, but it is also one of the five determinants of demand, which represents how many goods and services are bought at various prices during a certain period of time. In short, how much disposable income someone has helps determine how much money they spend on goods and services. What Isn’t Considered Disposable Income? But don’t spend all your disposable income just yet. Disposable income is not to be confused with discretionary income, which takes it a step further. That is what is left of your disposable income after you’ve spent for necessities like rent, your mortgage payments, healthcare, transportation, and clothing. Discretionary income can be spent on eating out, investing, travel, and any other non-essential items or expenditures. It’s your fun money to spend with limited guilt on things you don’t actually need, knowing that your other expenses are taken care of. Budget Your Disposable Income It's important to budget your disposable income. While there are various different types of budgeting systems—the 50/30/20 rule, the envelope system, the 80/20 method, a traditional line-item budget, or even the "pay yourself first" method—it really comes down to personal circumstances and preferences when selecting which method to use. Be honest with yourself because there’s no point in having a budget if you aren’t going to stick to it or if it's unrealistic for your current lifestyle or situation. Some questions to consider before choosing a budget: Do you have student loans? Credit card debt? Do you like padding your savings, or would you rather invest your extra funds and only keep the bare minimum in liquid cash? Are you a spender or a saver? How often do you eat out? Do you like to travel frequently or are you more of a homebody? Do you have expensive tastes or do you like to be frugal in your purchases? Many experts say your necessities—rent or mortgage payment, food, taxes—should account for only 50 percent of your budget, while discretionary spending should account for 30 percent or less. The remaining 20 percent should be used for other financial goals, such as paying off debt, saving, or investing. Once you decide your financial priorities, then you are able to find the budget that works best for you. And when filling in your budget, don’t forget these often-overlooked budget busters, such as entertainment, gifts, or annual dues. How to Cut Disposable or Discretionary Spending If the numbers just aren’t adding up, it may be time to re-evaluate your spending habits and cut back where you can. Try a worksheet that helps prioritize what you really need and what you might be able to do without to cut back on discretionary spending. Some helpful tips to trim your budget might include combining errand trips to save money on gas, stopping or limiting eating out, paying off debts as soon as possible to save money on interest, buying groceries in bulk from a club store, or reducing cable bills by selecting a cheaper package. Some discretionary spending items you could probably cut without issue include that never-used gym membership, a biweekly manicure/pedicure or other spa treatment, magazine or live streaming subscriptions, professional societies or club dues, and even holiday

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

KANSAS CITY REAL ESTATE

Cycle-low construction at odds with tightening retail vacancy. As unemployment reached the low-3 percent range by the end of 2018, the retail environment in Kansas City remains well positioned for future advancement. Consistent job gains and steady construction have sponsored a dramatically tighter vacancy rate; it reached a cycle low as net absorption averaged 1.5 million square feet over the past eight years. Despite the strong performance, development over the coming year will reach the lowest point in over a decade, with the pipeline skewed heavily toward net-leased projects in suburban locations. The largest slated completion will be the retail portion of the Village South mixed-use project just south of the Legends Outlets and Kansas Speedway in Edwardsville. The 27-acre development will include two hotels, a 22,000-square-foot conference center and more than 60,000 square feet of retail space. The diminished pipeline will allow for a further contraction in the metro vacancy rate, with average asking rents posting a second year of a low-single-digit gain. Yield-oriented investors raise allocations to Kansas City metro as prices, cap rates remain highly attractive. Dwindling cap rates in larger metros have underpinned a transfer of capital from coastal markets to Kansas City, where first-year returns will begin in the low-7 percent range. Core assets in Overland Park and Eastern Jackson County draw the majority of dollar volume due to their high-quality demographics and property values, while many institutions remain focused on assets in Downtown Kansas City along the Streetcar line between Union Station and the Plaza. Rental rates in downtown and midtown suburbs have surged in recent quarters amid a rapidly expanding local population due to the increased density from new apartments. However, years of deferred maintenance in many locations will motivate additional investors to deploy capital in order to recognize internal rates of return well above the broader metro

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

RISE OF CREDIT CARD DEBT

Rising interest rates are providing welcome relief to savers. As previously reported, earning at least a 2% APY on your savings from an FDIC insured bank account is now much easier. However, rising rates will make borrowing more expensive for people in debt. Credit card debt is set to become particularly expensive. According to a recent report from CompareCards by LendingTree (which owns MagnifyMoney, where I work), the average annual percentage rate (APR) on credit card debt reached 15.32% in March, an 18-year high. Most credit card contracts have variable interest rates and are tied to the prime rate. More worrying is that the spread (the difference between the prime rate and the average APR) has increased to 10.5%, compared to a 6% spread in 2000. As the prime rate continues to increase, we can expect credit card interest rates to reach historic highs. In this post, I will review: The history of the average credit card average annual percentage rate. This is the rate charged on accounts that are assessed interest each period. Credit card companies use risk-based pricing, which means the better your credit score the lower your rate. For example, a standard Bank of America credit card offers an interest rate range (as of publication date) of 14.49% - 24.49%. People with the best credit scores would get closer to 14.49%, whereas people with the worst scores would get close to 24.49% (if they can get approved). Credit Card Spreads: Much Higher Than Before Most credit card contracts offer variable interest rates that are tied to the prime rate. The prime rate is highly correlated to the federal funds rate. As a result, when the Federal Reserve increases the target federal funds rate, credit card accounts experience an almost immediate increase in rates. However, the chart above shows a rapid increase in credit card interest rates in 2009 - when the federal funds rate was not increasing. These rate hikes increased the spread, which means credit cards interest rates will reach historic highs as the Fed continues to hike rates. The CARD Act, implemented in 2010, had a dramatic impact on the industry. One of the biggest changes was a restriction of a bank's ability to risk-base reprice existing customers. Prior to the act, credit card companies could regularly review customers' credit risk profiles. If the risk profile deteriorated, credit card companies would be able to increase the interest rate on the existing balance. For example, a customer could have opened a credit card account when she had a FICO of 750 and received a low interest rate. Over time, the hypothetical borrower's situation deteriorated and credit score declined. Credit card companies would have been able to reprice the existing balance, even if the borrower was making payments on time. And a missed payment with one credit card company could lead to increased pricing on all credit cards (this was frequently referred to as a universal default). Credit card companies are now limited in their ability to change the pricing in real time. This rule went into effect in 2010. To compensate, many credit card companies repriced a significant portion of their portfolio prior to the enactment of the law. The inability of credit card companies to reprice in real time means that people with excellent credit will pay higher rates than the historic average. However, people whose situation deteriorates will no longer see interest rate hikes. In addition, losses during the Great Recession came in much higher than expected. Pricing models are based upon expected loss rates and volatility. Given the higher volatility of credit card portfolios, banks had to adjust their pricing models. For consumers with credit card debt, there are still a number of options to find a lower interest rate. Here are two options to consider: Balance Transfer Offers: Despite the rising rates, banks continue to advertise potentially lucrative balance transfer offers. Search online for the best balance transfer credit cards at sites like NerdWallet or CompareCards. Or, you might only need to respond to an offer in your mailbox: credit card companies frequently send out balance transfer offers with a check. Balance transfers are typically only available to people with good or excellent credit. Personal Loans: The personal loan market has been growing exponentially, and it can be particularly useful for people with bigger balances or slightly worse credit scores. With most online lenders, you can check your rate without hurting your score. Shop online for personal loans at sites like

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

3 STEPS TO BUILDING WEALTH AFTER 50

1. Leverage All of Your Savings Options While a 401(k) (or another employer-sponsored plan) is a good first stop for retirement savings, it’s not the only way to build your nest egg. Once you’ve maxed out your employer’s retirement account, you can supplement it with an IRA. For 2016, the regular contribution limits for a 401(k) and IRA are set at $18,000 and $5,500 respectively. If you’re 50 or older, however, you get a bonus in the form of catch-up contributions. That means you can funnel an extra $6,000 into your 401(k) and another $1,000 into your IRA. In addition to these two options, you have another way to save if you have a high deductible health insurance plan. You can save up to $3,350 in a health savings account (HSA) if you have an individual plan and $6,750 if you have a family plan. Once you turn 65, you can tap this money penalty-free, although you will pay taxes on any distributions that don’t go towards qualified medical expenses. 2. Be Strategic About Paying Down Debt Carrying credit card balances, student loans or mortgage debt into retirement is a risky move, especially if you know that your income is going to go down once you’ve stopped working. In your 50s, it’s best to focus on eliminating as many of your financial obligations as possible so you can head into your golden years with a streamlined budget. That being said, there are some rules to follow when it comes to paying off debt. Before you begin making your monthly payments, it’s important to make sure you’re maxing out your retirement accounts. At this stage in life, you can’t afford to delay your savings. While you’re paying down your debts, you can tackle the ones that are costing you the most first. Then you can look for ways to make your other payments less expensive. If you have credit cards, for example, transferring them to a card with a lower rate can potentially save you some money on interest. If you’re thinking of refinancing your mortgage, it’s best to run the numbers to get an idea of what you can save. 3. Manage Risk Carefully Putting your money in a savings account may give you a sense of security but it’s not going to make you rich. Investing in stocks and mutual funds means taking a bigger gamble, but it can generate substantial returns in the long run. If you’ve been fairly aggressive about investing up to this point, you may need to rethink that strategy. Someone who’s in their 30s and has years to go before they retire is in a better position to rebound from a market decline than someone who’s in their mid-50s. That’s why it’s a good idea to take a look at your portfolio’s asset allocation to see where your money is concentrated. If you’re still investing heavily in stocks, now’s a good time to begin easing towards more conservative investments. You may see your returns reduced slightly but the trade-off is that you’ll be better insulated against market volatility. Final Word Building wealth is something just about anyone can do with enough time and the right tools. If you’re in your 50s, your retirement is probably not too far away. But it’s not too late to create a comfortable financial cushion for your 60s and beyond. If you’re not sure how to get started or you need some more guidance, consider working with a financial advisor. An advisor can help you identify your financial goals and determine the necessary steps to reach them. A matching tool like SmartAsset’s SmartAdvisor can help you find a person to work with to meet your needs. First you’ll answer a series of questions about your situation and goals. Then the program will narrow down your options from thousands of advisors to up to three registered investment advisors who suit your needs. You can then read their profiles to learn more about them, interview them on the phone or in person and choose who to work with in the future. This allows you to find a good fit while the program does much of the hard work for

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

4 SIMPLE WAYS TO INVEST IN REAL ESTATE

Buying real estate can be more than just finding a place to call home. Most people have to do a real estate transaction at some point in their lives, and some find it an intriguing opportunity for capturing and creating value. Real estate has become a common investment vehicle, and it continues to be popular despite a very rocky market correction in 2007-09. Although the real estate market has plenty of opportunities for making a profit, buying and owning real estate can be a lot more complicated than investing in stocks and bonds. In this article we’ll go beyond buying a home and introduce you to some of the basic real estate investments. The Power of Leverage in Real Estate Before we dive into types of real estate investments, it is worth looking at one of the main attractions it holds for investors. Investing in real estate gives you one tool that is not as easily available to stock market investors: leverage. If you want to buy a stock, you have to pay the full value of the stock at the time you place the buy order. Even if you are an individual investor buying on margin, the amount you can borrow is still less in total than what you can easily access for a real estate purchase. A traditional mortgage generally requires a 20% to 25% down payment. However, depending on where you live, there are many types of mortgages that require as little as 5% down. This means that you can control the whole property and the equity it holds by only paying a fraction of the total value up front. Of course, your mortgage will eventually pay the total value of the house at the time you purchased it (plus a not insignificant amount of interest), but you control the whole asset the minute the papers are signed. This is what emboldens both real estate flippers and landlords. They can take out a second mortgage on their homes and put down payments on two or three other properties. Whether they rent these out so that income from tenants pays the mortgage or wait for an opportunity to sell for a profit, they control these assets, despite having only staked a small part of the total value. 1. So You Want to Be a Landlord Ideal For: People with DIY and renovation skills and an aptitude for dealing with tenants What It Takes to Get Started: A healthy amount of capital to ensure access to financing and cover up-front maintenance costs and vacant months Pros: Rental properties can become new sources of regular income if the investment is successful. They also maximize your available capital through leverage. Moreover, many of your expenses are tax deductible, and any losses can offset gains in other investments. Cons: Rental properties tend to be hands-on investments unless you use a property management company. Rental property owners often must choose between being ready to field a tenant call at any hour and forgoing income (or taking a loss) to have someone else do it for them. Rental real estate is an investment as old as land ownership. Basically, you buy a property and rent it out to a tenant. The owner is now a landlord, responsible for paying the mortgage, taxes and costs of maintaining the property. Ideally, the landlord charges enough rent to cover all of the aforementioned costs with enough left over to produce a monthly profit right from the start. However, depending on the rental market, a landlord may have to be patient and only charge enough rent to cover expenses or even take a loss to keep a property occupied. Although this can be uncomfortable and requires a capital cushion to absorb periods of loss, landlords tend to invest for the long term. After all, once the mortgage has been paid on a rental property, the majority of the rent becomes profit. Of course, the monthly income from a property is not the only focus of a landlord. As with all real estate, the property can appreciate over the course of the mortgage, leaving the landlord with a more valuable asset. According to U.S. Census Bureau data, sales prices of new homes – which can be used as a rough indicator for real estate values – consistently increased in value from 1940 to 2006 before dipping during the financial crisis. Sales prices have since resumed their climb, surpassing pre-crisis levels. There are, of course, blemishes on the face of what seems like an ideal investment. You can end up with a bad tenant who damages the property or, worse still, end up having no tenant at all. This leaves you with a negative monthly cash flow, meaning that you might have to scramble to cover your mortgage payments. There is also the matter of finding the right property. You will want to pick an area where vacancy rates are low and choose a place that people will want to rent. Perhaps the biggest difference between a rental property and other investments is the amount of time and work you have to devote to maintaining your investment. When you buy a stock, it simply sits in your brokerage account and, one hopes, increases in value. If you invest in a rental property, you also acquire the mountain of responsibilities that come with being a landlord. When the furnace stops working in the middle of the night, it’s you who gets the phone call. If you don’t mind handyman work, this may not bother you. Otherwise, a professional property manager would be glad to take the problem off your hands – for a price, of course. 2. Real Estate Investment Groups Ideal For: People who want to hold rental real estate without the headache of running it What It Takes to Get Started: A capital cushion and access to financing Pros: This is a much more hands-off approach to real estate that still provides income and appreciation. Cons: There is also a vacancy risk with real estate investment groups, whether it is spread across the group or owner specific. In addition, management overhead can eat into returns. Real estate investment groups are similar to a small mutual fund for rental properties. If you want to own a rental property, but don’t want the hassle of being a landlord, a real estate investment group may be the solution for you. In a typical real estate investment group, a company will buy or build a set of apartment blocks or condos, then allow investors to buy them through the company, thus joining the group. A single investor can own one or multiple units of self-contained living space, but the company operating the investment group collectively manages all the units, taking care of maintenance, advertising vacant units and interviewing tenants. In exchange for this management, the company takes a percentage of the monthly rent. There are several versions of investment groups, but in the standard version the lease is in the investor’s name and all of the units pool a portion of the rent to guard against occasional vacancies, meaning that you will receive some income even if your unit is empty. As long as the vacancy rate for the pooled units doesn’t spike too high, there should be enough to cover costs. In extreme cases investors may be asked to pay back in if costs exceed income for a longer period of time. Of course, the quality of an investment group depends entirely on the company offering it. In theory it is a safe way to get into real estate investment, but real estate investment groups are vulnerable to the same fees that haunt the mutual fund industry. More important, they are sometimes private investments where unscrupulous management teams take investors for a ride and leave them with nothing but legal proceedings to look forward to. To avoid unpleasant surprises, it is critical to do your research on the company and conduct a thorough review of the details in the investment offering. 3. Real Estate Trading (Better Known as Flipping) Ideal For: People with significant experience in real estate valuation and marketing What It Takes to Get Started: Capital and the ability to do or oversee repairs as needed Pros: Real estate trading has a shorter time period during which capital and effort are tied up in a property. Depending on market conditions, there can be significant returns even on this shorter time frame. Cons: Real estate trading requires a deeper market knowledge and a bit of luck. Hot markets can cool unexpectedly, leaving short-term traders with a loss or a long-term headache. Real estate trading is the wild side of real estate investment. Like day traders, who are distinct from buy-and-hold investors, real estate traders are an entirely different breed from buy-and-rent landlords. Real estate traders buy properties with the intention of holding them for a short period of time, often no more than three to four months, after which they hope to sell them for a profit. This technique is also called flipping properties and is based on buying properties that are either significantly undervalued or in a very hot market. Pure property flippers will often forgo putting any money into a house for improvements; the investment has to have the intrinsic value to turn a profit without alteration or they won’t consider it. Flipping in this manner is a short-term cash investment. To take advantage of potentially large returns, flippers have to have cash on hand or access to other people’s money, as traditional financing doesn’t generally work for this type of transaction. If a property flipper gets caught in a situation where he or she can’t unload a property, it can be devastating because these investors generally don’t keep enough uncommitted cash to pay the mortgage on a property for the long term. This can lead to continued losses for a real estate trader who is unable to off-load the property in a bad market. A second class of property flipper also exists. These investors make their money by buying reasonably priced properties and adding value by renovating them. This can be a longer-term investment depending on the extent of the improvements. The limiting feature of this investment is that it is time intensive and often only allows investors to take on one or two properties at a time. 4. Real Estate Investment Trusts (REITs) Ideal For: Investors who want portfolio exposure to real estate without having to go through a traditional real estate transaction What It Takes to Get Started: Investment capital Pros: REITs are essentially dividend-paying stocks whose core business is commercial real estate – an area where long-term, cash flowing leases are the norm. Cons: REITs are essentially stocks, so the leverage available to traditional rental real estate investors is absent. Real estate has been around since our cave-dwelling ancestors started chasing strangers out of their space, so it’s not surprising that Wall Street has found a way to turn real estate into a publicly traded instrument. A REIT is created when a corporation (or trust) uses investors’ money to purchase and operate income properties. REITs are bought and sold on the major exchanges, just like any other stock. A corporation must pay out 90% of its taxable profits in the form of dividends to keep its status as a REIT. By doing this REITs avoid paying corporate income tax, whereas a regular company would be taxed on its profits and then have to decide whether or not to distribute its after-tax profits as dividends. Much like regular dividend-paying stocks, REITs are a solid investment for stock market investors who want regular income. In comparison to the aforementioned types of real estate investment, REITs allow investors into nonresidential investments, such as malls or office buildings, that are generally not feasible for individual investors to purchase directly. More important, REITs are highly liquid because they are exchange traded. In other words, you won’t need a realtor and a title transfer to help you cash out your investment. REITs are, in practice, a more formalized version of a real estate investment group. The number of REITs has grown from 34 in 1971 to 222 in 2017. The market capitalization of these REITs, which is mostly a reflection of the value of the underlying real estate, has similarly grown from $1.5 billion in 1971 to $1.1 trillion in 2017. When looking at REITs, it is important for an investor to distinguish between equity REITs that own buildings and mortgage REITs that provide financing for real estate and dabble in mortgage-backed securities (MBS). Both offer exposure to real estate, but the nature of the exposure is different. An equity REIT is more traditional, in that it represents ownership in real estate, whereas the mortgage REITs focus on the income from mortgage financing of real estate. Of course, Wall Street has gone far beyond REITs when it comes to financial innovation in real estate. In comparison with some of the other innovations, a REIT is a plain vanilla gambit, whether equity or mortgage. And unlike MBS, REITs have never starred as a key player in a real estate bubble and subsequent burst. In fact, the financial crisis did bring to light some differences in REIT capital structure and how too much leverage can cause REIT share prices to swing much more wildly than expected. So REIT investing isn’t entirely painless, but the research and analysis required is in line with that of any income stock. The Bottom Line We have looked at several types of real estate investment but have only scratched the surface. There are countless variations within these examples and many more types that don’t really fit the definition of simple. As with any investment, there is profit and potential within real estate whether the overall market is up or down. Of course, this does not mean that investing in real estate is an assured gain. Hopeful real estate investors need to put in the work of becoming conversant with major market indicators and investment-level metrics before diving in. We all tend to put a lot of thought and planning into a home purchase. A real estate investment requires that same diligence without promising the same emotional payoff of living in your dream home. Not that getting a nice financial payoff from being smart about real estate isn't also an emotional

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

RENTING OUT ROOMS

Renting out a room in your house is sometimes favorable to leasing the entire property. It offers more flexibility for your own private use of the other rooms, and renting multiple rooms can often be more profitable than renting the whole house under one lease. People who live in shared households are an increasing bunch. In 2012, some 22 million households had this arrangement, and of those, 9.7 million were young adults living in someone else’s house. Lots of homeowners find themselves with an extra room or two on their hands that they never use. Renting one out might be the solution to some extra cash. However, please check your state and local county laws to ensure compliance with housing, license, and fee requirements. Here are six tips you need to know before you start marketing your room. 1. Prepare the House If you’ve ever had kids, you probably know about baby proofing – painstakingly going through every room to ensure you took all the right safety measures to keep your little one from harm. You need to go through your house just as thoroughly, “renter proofing it”, before you consider even showing it to strangers to ensure the safety of your belongings. Put keyed deadbolts on each bedroom door (use SmartKey locks) Remove self-locking door knobs to prevent lockouts Put that diamond tennis bracelet in a fireproof safe.  Fix anything that needs a little TLC. If you have to hit the microwave on the side to get it to start, it’s time to buy a new microwave. You then need to decide which room or rooms you’ll rent. You can get more money if the room has its own bathroom. You might consider renting the master bedroom and taking a smaller bedroom for yourself. A basement setup with a kitchen can be even more lucrative since it provides more privacy than a shared level. 2. Figure Out What to Charge Look at the ads on Craigslist, or sign up for a service such as Roommates.com or EasyRoommate. This should give you a ballpark figure on what you can expect to get based on your ZIP code and type of room you’re offering. Any money you receive is taxable income. The good news is that you now have deductions and can claim expenses – at least for the portion of the property that is being used as a rental. For example, new carpet in the renter’s bedroom is a deductible expense, but new carpet for the entire house is not. A tax expert (or TurboTax) can help you with this. 3. Determine your Non-Negotiables Be honest with yourself. If you can’t tolerate a smoker or a party-prone college student, say so in your ad. If you want someone who can stay for at least six months, indicate that, too. You’ll save yourself a lot of time that way. Otherwise, you’ll be tempted to accept a smoker/pet/whatever, because you didn’t set clear boundaries for yourself. If you live within walking distance to restaurants, have access to a pool, live near a college, allow pets or have any other perks, list them in your ad. Don’t forget to post amazing photos. If you don’t, many people will bypass your listing. Related: The Landlord’s Guide to Marketing with Craigslist 4. Use your Intuition, but Don’t Discriminate Think about what you want to ask a potential renter in your initial conversation. We provide a screening checklist in The Landlord’s Guide to Tenant Screening, which will help you evaluate each candidate fairly. Find out what each applicant’s situation is and look for holes in their story. If the applicant says he or she works or claims to be a student, ask to see proof, such as pay stubs or proof of college enrollment. Also, make sure you not only ask for references, and contact information for previous landlords, but call them too. Above all, make sure you provide an equal housing opportunity, and avoid discrimination (and the appearance thereof). Related: Know What is Considered Illegal Discrimination 5. Verify with a Credit Check If the interview and reference checks go well, run a credit check. Cozy makes it super easy and quick to check tenant credit. It’s free for landlords too. With Cozy, you’ll get a report from Experian, and based on what the report says, you’ll be able to decide whether the candidate will make a good renter for you. The report will automatically be paid for by, and shared with the tenant, so it doesn’t cost you anything. Related: Easy Tenant Credit Checks for Landlords 6. Use a Written Rental Agreement Make a written lease instead of an oral arrangement. Everyone remembers a verbal agreement differently and it is tough to prove in court. When creating a written lease, remember to specify the following attributes, in which both you and your tenant will sign to: How much the rent will be The date the money is due Whether the renter will pay utilities, and if so, which ones or what percentage How you will handle food, fridge space, laundry, common areas Any other concerns you have (cleaning, parking, quiet time, etc.) Once you start covering a good percentage of your mortgage from having a tenant in your home, you might wonder what took you so long to start doing

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

DO YOU NEED A REAL ESTATE LAWYER?

Do You Need a Real Estate Lawyer? In certain states, you can’t buy or sell a house unless a real estate lawyer is present. So unless you live in a place like Georgia, Vermont, Kentucky or Maine, for example, you might be wondering whether you need to spend the money on legal fees to have a real estate lawyer. Having an experienced attorney within reach can keep you from unintentionally breaking a law or doing something that could delay your real estate closing. If you’re not sure what real estate lawyers do, we’ll fill you in. What Is a Real Estate Attorney? A real estate lawyer is someone whose job it is to know the rules and regulations related to real estate transactions. Real estate attorneys help their clients understand contracts and other legal documents. They deal with zoning issues and mortgage fraud, negotiate on behalf of the parties they represent, oversee the transfer of deeds and titles and verify whether a commercial or residential property has a lien, a restrictive covenant or another legal issue. Real estate attorneys can work with both individuals and corporations. Whether or not you’ll need one will ultimately depend on what you’re trying to accomplish. When You’ll Need a Real Estate Lawyer Do You Need a Real Estate Lawyer? Linking up with a real estate attorney can be a good idea when you’re facing a difficult circumstance such as a foreclosure or short sale, or when you want to purchase a property that’s owned by the bank. Your lender and your title company might want you to get an attorney in order to confirm that there’s nothing wrong with a property’s title. And having an attorney can be particularly helpful if you’re trying to buy or sell a commercial property since the rules regarding tenant relationships and a company’s tax filing status can be quite complex. If you’ve had a judgment filed against you or you’ve filed for bankruptcy, it’s in your best interest to consult a lawyer for advice. An attorney can also be a major asset to a real estate team dealing with a property that’s part of someone’s estate, one that’s located in an area vulnerable to a natural disaster or a property that has an issue with termites, lead or another environmental contaminant. In some cases, you won’t have to find an attorney to assist you in buying or selling a house. Before they can receive their licenses, real estate agents are required to have a thorough understanding of the standard documents that buyers and sellers need to file before they can close on their homes. If you selected an agent with solid credentials and experience with handling real estate matters in your state, you might not need an attorney at all. Being able to complete a real estate transaction without the help of an attorney can be a major relief, especially for individuals who can barely afford to buy a home. How much does a real estate lawyer cost? It varies, since some attorneys charge flat fees. But hourly fees for legal services can cost $400 or more. At the same time, having a real estate attorney involved can give you peace of mind. Real estate attorneys can ensure that any additions that have been made to a home don’t conflict with local building codes or permit guidelines. What’s more, they can carefully review the language in purchase agreements and other contracts to make sure buyers and sellers get exactly what they want and ensure that everything is carried out in a lawful manner. In Some States You’ll Need a Real Estate Attorney Different states address real estate settlements in different ways and some of them (such as Massachusetts, Delaware, New York and South Carolina) require homebuyers and sellers to have attorneys present to sign off on home sales. Other states place restrictions on what agents can do during a real estate closing. For example, Alabama real estate agents can approve a buyer for title insurance and process title abstracts, but only attorneys can handle deeds and other documents. If you live in a state that requires you to work with a real estate lawyer, it’s important to make sure you have enough money to cover the cost of your attorney’s fees. And before you choose someone to represent you, it’s a good idea to find out whatever you can about his or her background and areas of expertise. Bottom Line Do You Need a Real Estate Lawyer? Unless your state mandates it, you might be able to buy or sell your house without legal representation. But failing to meet with a real estate attorney could leave you susceptible to various pitfalls and lawsuits. Discussing your concerns with your real estate agent and your broker can help you decide on the best course of action for your unique

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

COMMERCIAL REAL ESTATE FORECAST

2019 U.S. Commercial Real Estate Forecast Report The Kansas City retail market experienced another successful year throughout 2018 based on strong market fundamentals that fueled retail growth. Consumer confidence remains at historically elevated levels due to a result of current unemployment rates at a 17-year low and home values that remain high. Household wage and income growth also translated into strong retail sales overall throughout 2018, not only within the online segment, but also in-store purchases, which is a noticeable shift from previous years. Several retailers have successfully adapted to shifting consumer demands by offering more compelling in-store experiences that complement their online offerings to give shoppers more reason to venture away from their screens and convenience of online shopping and back into physical stores. Based on the solid economy and market fundamentals, vacancy rates remained low throughout the Kansas City metro in 2018. By year-end, the Kansas City vacancy rate stands at 7.2% within shopping centers, and 5.5% for total retail product. Vacancy rates within shopping centers declined 10 basis points relative to this time a year ago, while total retail vacancy rate declined by 50 basis points from one year ago. Retailers continue to seek prominent sites within the metro, particularly within established infill suburban locations, which presents an issue with limited options available to satisfy the demand. Construction costs continue to rise, and retailer willingness to pay for new construction pricing remains limited, which will continue to keep demand levels high for quality product in desirable locations for the upcoming year. As a result of pent up demand, asking rents continue to push upward for quality retail spaces. Metrowide, shopping centers have only raised the average asking rent by $0.22/SF relative to last year, but several quality centers within prime retail locations have successfully raised their asking rents by much more than that in recent months. Retail Growth and Activity The majority of retail growth throughout 2018 was concentrated in performing suburban submarkets that enjoy strong demographics related to population, traffic, and income growth. JOHNSON COUNTY Retail in North Johnson County was very active throughout 2018. In Lenexa, Sonoma Plaza is currently under construction at the southeast corner of I-435 and 87th Street. Upon completion, Sonoma Plaza will feature 143,700 SF of retail and will be anchored by a 60,000 SF McKeever’s Market grocery store. The whole Lenexa City Center area continues to grow rapidly from a development standpoint. As a result, Gomer’s of Kansas relocated from their existing Lenexa location and opened a new 21,000 SF store located in the heart of the City Center in November. Orchards Corner Shopping Center located near Oak Park Mall, underwent extensive renovations in 2018. T.J.Maxx and HomeGoods leased a total of 42,000 SF within the center in the former Gordmans space and held their grand openings in October. Michaels will also join the center in the spring of 2019 upon build-out of their 22,000 SF space adjacent to HomeGoods. In Overland Park, 95Metcalf South, the former Metcalf South Shopping Center, was demolished and replaced by a 165,000 SF Lowe’s Home Improvement store that opened in August. Additional pad sites will bring future retail opportunities to the Metcalf corridor. In Downtown Overland Park, a mixed-use office/entertainment venue will begin construction in the fall of 2018. The Edison District is a $53.8 million project that calls for a 125,000 SF, five-story office building located at the southwest corner of 80th and Marty. The project will also feature a food hall, public courtyard, and a parking garage to accommodate additional parking needs in the area. The project is expected to be complete by late 2019. In Shawnee, Westbrooke Green is an infill mixed-used development located at the northeast corner of 75th and Quivira. The project calls for up to 530 multifamily units and 186,000 SF of retail. Construction is expected to begin in 2019. In Mission, the long awaited Mission Gateway project is currently under construction. The mixed-use project will incorporate a 30,000 SF food hall curated by Top Chef’s Tom Colicchio, a 90,000 SF entertainment venue, and 50,000 SF of shop retail. The development will also feature an office component, luxury apartments, and a hotel upon full build-out. The first phase is expected to be delivered by Q4 2019. In South Johnson County, two new retail projects are expected to break ground in 2019. Galleria 115, a $182 million mixed-use development located at the northwest corner of 115th and Nall, calls for 240,000 SF of retail, anchored by a grocery store and 548 apartments. Construction is expected to begin in early 2019 and will be completed in several phases. Mentum is a $271 million project located at the former Great Mall of the Great Plains site in Olathe. The project being developed by Woodbury Corporation, calls for the development of 250,000 SF of retail and entertainment, nearly 150,000 SF of office, up to 300 apartments, two hotels, and a 4,000-seat multipurpose arena. NORTH KANSAS CITY In continuing the momentum of the last couple of years, Northland retail continued to be very active in 2018. The redevelopment of Liberty Commons, which opened in late 2016, continued to add tenants and developments to the area. B&B Theaters celebrated the grand opening of their new $19.5 million luxury flagship 12-screen theater in July, while Hobby Lobby added a new 45,000 SF store in April. West of the Liberty triangle, Valley View Shoppes are under construction. The 45,000 SF retail center is located along Highway 152 just south of Shoal Creek Golf Course. TwinCreeks Center, formerly Barry Towne, upgraded and expanded their footprint throughout 2018 to accommodate for additional retailers and growth. Ross Dress for Less opened a 25,000 SF store within, while Ulta occupied 10,000 SF at the center in October. Petco will open a new 12,000 SF store at TwinCreeks in early 2019. Lukas Wine and Spirits Superstore added their third area location with the opening of a 19,000 SF space at the Shoppes at Shoal Creek in September. PetSmart opened a 19,500 SF store at Antioch Crossing in 2018 as well. COUNTRY CLUB PLAZA AREA The Country Club Plaza area will continue to evolve with the announcement of Nordstrom coming to the Plaza in 2021. The Nordstrom development will require demolition of the Capital Grille building, Bank of America branch, and a few Cinemark Palace movie auditoriums to accommodate for the new structure. The Capital Grille will relocate to the former Williams-Sonoma space on the Plaza in the summer of 2019, while True Food Kitchen will open in the spring of 2019 in the former Plaza III space. Just south of the Country Club Plaza, VanTrust delivered Brookside 51, a mixed-use project adjacent to UMKC. The project added a 45,000 SF Whole Foods and 170 apartment units which opened in May 2018. JACKSON COUNTY Lee’s Summit is also poised for significant retail growth in the coming years. Drake Development obtained city approval in December to advance the Streets of West Pryor project. The mixed-use development is located at the southwest corner of I-470 and Pryor Rd, just west of Summit Woods. The $178 million development will be anchored by a McKeever’s Market and will also include an apartment complex, senior living facility, a 105-room hotel, and additional retail space. Summit Orchards, located at the northeast corner of Chipman Road and Ward, will add up to 117,500 SF of retail space in the near future. The development will be anchored by HomeGoods, Ross Dress for Less, and Aldi, along with several pad users. ADDITIONAL RETAIL ACTIVITY The Belton Gateway development, located at I-49 and Highway Y in Belton delivered the second phase of construction in 2018. The new phase added more than 86,000 SF of retail space between Marshalls, Ross Dress for Less, Petco, Ulta, Party City, and Five Below. Additional retail activity within the Kansas City metro included the opening of a 20,000 SF HomeGoods at the Legends Outlets in Wyandotte County. Midtown added a new grocery store with the addition of a 38,000 SF Sun Fresh within the Linwood Shopping Center. In Grain Valley, a new 55,000 SF Price Chopper was also delivered. Planet Fitness opened up a 19,000 SF gym, as Best Buy decreased their footprint within their building at 9301 Quivira. Expect additional growth of fitness gyms in the coming year, as gyms look to backfill vacated space or boutique studios occupying small tenant space within centers. THE CHANGING LANDSCAPE OF RETAIL E-commerce-related activity will continue to add pressure on the retail sector throughout 2019 and beyond. Online sales, coupled with the delivery speed and convenience, will continue to be the major differentiator for successful retailers going forward. Retailers continue to shift away from traditional brick and mortar setups in favor of a more robust retail location that provides unique customer-centric experiences and convenient ways to acquire goods. The reality is that while people enjoy the convenience of online shopping, consumers still enjoy being able to see and feel what they are purchasing, so retailers are constantly adapting to their buyers. Several retailers are improving their “click and collect” strategies, and their brick and mortar stores are beginning to play a larger role in the process related to online purchasing. As online shopping continues to grow, the number of consumers who are picking up online purchases in store is increasing rapidly. The share of consumers who say they regularly use click and collect for online orders has almost doubled over the past five years. Many retailers, like Walmart, have expanded their collect from store services, even offering customers discounts for picking up their orders instead of having orders delivered. Emerging technologies related to artificial intelligence will continue to push the envelope in the coming year. Intelligence-enabled technologies and systems continue to digest massive amounts of consumer data, capable of delivering customer-centric insights, allowing retailers to better forecast and implement new strategies related to consumers. Youth sports is another industry that continues to alter the retail landscape. In 2018, youth sports is an estimated $17 billion industry. In an age where travel teams compete year round, money spent on new facilities continues to pour in, which also is a factor in nearby retail growth. Locally, two companies are a prime example of how youth sports is changing certain retail dynamics. Foutch Brothers’ $39 million redevelopments of Kemper Area, renamed Hy-Vee Arena, combines sports and retail. The former traditional arena was transformed into a multi-level sports facility that offers several retail and restaurant options contained within the facility. Olathe-based Elite Sports is currently investing more than $25 million into five Kansas City area facilities, which not only offer courts but new amenities within their buildings that cater not only to youth athletes but also to parents. The Kansas City metro has also experienced several new soccer complexes around town, which will drive future retail opportunities close to these developments as well. REAL ESTATE INVESTMENT ACTIVITY Investors continue to focus on high-quality assets in prime locations, however, a growing number are expanding into secondary and tertiary markets in search of higher yields. Although sales volume continues to be dominated by core markets, secondary markets gained traction, which is a positive sign for Kansas City. Several retail centers throughout the Kansas City metro traded in 2018. Truman’s Marketplace, a 303,250 SF center that recently underwent extensive renovations in 2016, closed in late December. RRI Acquisitions purchased the center from Legacy for $31.5 million. The center, located in Grandview, is anchored by Price Chopper, Burlington, Ross, and T.J.Maxx. In Johnson County, Pinnacle Village Shopping Center, Shawnee Parkway Plaza, Home Furnishings Center, and the Shops of Shawnee Crossing all traded throughout 2018. Pebb Enterprises took ownership of Pinnacle Village located at 119th and Metcalf by acquiring a non-performing loan for $11.25 million. The center is shadow-anchored by a Super Target and Lukas Liquor Superstore. Shawnee Parkway Plaza, located at the southeast corner of Shawnee Mission Parkway and Pflumm sold for $8.63 million. Christie Development, who redeveloped the center in 2014, sold the 77,466 SF center to Shawnee Plaza LLC. The center is anchored by Savers and Nuts & Bolts True Value. The same buyer also purchased the Home Furnishings Center, a 90,122 SF retail center located in Lenexa. Additionally, there was solid transaction volume related to smaller strip centers across the metro throughout 2018. In Kansas City, the Romanelli Center sold for $5.95 million. The 28,000 SF center, located in the Waldo area, was purchased by G. Palen Investments from Addiana A, LLC. Two Ten Center, a 15,000 SF center located near I-29 and Armour Road, was acquired for $2.8 million, along with several other strip centers that were purchased by investors in the $1.5 to $3 million range. Several single-tenant, NNN retail investments also occurred in 2018. In the Northland, a Walmart Neighborhood Market within Antioch Crossing sold for $12.61 million. Vedres Family Investment acquired the asset from Antioch Redevelopment Partners. Academy Sports, located at Liberty Commons, also traded in 2018. Roberts and Company purchased the 63,000 SF sporting goods store from Legacy Development for nearly $6.3 million. In Lenexa, Christie Development acquired the Kohl’s located near 95th and Monrovia from Tishman International. The 109,000 SF building sold for $8 million. Dave & Buster’s, located within Corbin Park, was also purchased in 2018. The 40,671 SF building that was completed last year was purchased by Agree Realty

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MISTAKES COMMERCIAL LANDLORDS MAKE

This list summarizes some of the most common errors made by commercial Landlords and their property managers when they find themselves dealing with a defaulting Tenant.  LOCKING THE DOORS WHEN THE TENANT FAILS TO PAY While locking the Tenant out of the space may seem like a desirable and reasonable response when the Tenant is failing to keep up with his/her rental obligations, doing so may open up the Landlord to liability for “constructive eviction” under state laws. Generally speaking, gaining possession of a leased space can only be achieved through court order and execution by the appropriate law enforcement authorities.  TURNING OFF UTILITIES Landlords may also be held liable for constructive eviction under state laws if they choose to cut off services to the leased premises, including turning off the water or electricity serving the space. This error commonly occurs when the Tenant is responsible under the lease agreement for certain utility bills being charged to the Landlord. Failing to provide necessary utilities to the space, rendering it uninhabitable and/or unfit for the leased purpose, can be considered akin to locking the Tenant out of the space.  NOT FOLLOWING STATUTORY NOTICE LAWS PRIOR TO FILING FOR AN EVICTION Certain States require that a written notice (often with specific statutory language and providing a certain time period) be provided to the Tenant prior to your bringing a lawsuit to evict them from the premises. Often times, failure to provide this notice can be fatal to your ability to obtain a judgment for possession of the premises after filing a lawsuit. This can be costly as you may have to refile after following the required notice provisions. Even worse, uncontested lawsuits leading to possession judgments may be able to be set aside at a later date by the Tenant for lack of following the proper steps.  NOT FOLLOWING LEASE LANGUAGE WITH REGARD TO DEFAULT NOTICE REQUIREMENTS Similar to ensuring that statutory eviction notices are properly sent, it is important that Landlords review the default language in their lease as well. Often, leases will grant expanded rights to Tenants (i.e. requiring longer default notice periods, rights to cure prior to filing suit, etc.). Not following the strict language of the lease with regard to preconditions prior to defaulting a Tenant can needlessly give Tenants defenses to your eviction case.  ACCEPTING PARTIAL RENTAL PAYMENTS AFTER FILING AN EVICTION CASE After an eviction case is filed in court, Tenants often will attempt to throw partial payments of the balance at the Landlord in hopes that it will salvage their right to possession. While it is certainly tempting for the Landlord to take any money they can get their hands on from a defaulting Tenant, it is important to understand that a Judge could interpret this as condoning the default and therefore waiving one’s right to further pursue the eviction. It is most likely best practice to refuse to accept any payments at all, however if you are willing to take the risk, the Landlord should at the very least provide a written reservation of rights to the Tenant prior to accepting the payment, stating that acceptance does not waive the right to further pursue the eviction.  RELYING ON THE POSSESSION JUDGMENT AS AUTHORITY TO DISPOSSESS WITHOUT RESORT TO EXECUTION OF THE JUDGMENT BY THE PROPER LAW ENFORCEMENT AUTHORITY Achieving a victory in your eviction case at trial and obtaining a signed order from the Judge granting you possession of the space does not automatically give you the authority to lock the Tenant out of the space or take other dispossessory actions. Only the Sheriff or other proper law enforcement authority has the power turn over possession of the space. It is important that Landlords take the next step of executing their possession judgment through the Court system, in lieu of taking matters into their own hands relying on the wording of the judgment alone. This being said, generally speaking there may be situations when a law enforcement authority does not need to get involved, including instances when the Tenant affirmatively and voluntarily turns the space over to the Landlord, including the keys therefore, and/or when the space is completely abandoned and cleaned-out with no instance of an intent to possess the space (i.e. no equipment or possessions left therein).  DISPOSING OF TENANT PROPERTY While laws differ from state to state, certain states have stricter guidelines with regard to how to dispose of Tenant property after you receive possession of the space. State law could provide that it is the Landlord’s responsibility to move and store the Tenant’s property and provide the Tenant with a reasonable opportunity to reclaim the property. Failure to follow these rules could result in liability to the Landlord for conversion of the Tenant’s property.  DISPOSING OF PROPERTY LEASED FROM THIRD PARTIES When dealing with commercial Tenants, it is not uncommon that certain equipment within the space is actually leased from/owned by a third-party company. While it is tempting for a Landlord to dispose of all items within the space to allow for replacement Tenants, the Landlord could open itself up to liability for conversion if it disposes of expensive equipment being rented by the Tenant from a third-party. In this instance, it may be best practice to search the equipment to ascertain the contact information of the owners and allow them the opportunity to take possession.  FAILING TO ACCOUNT FOR ATTORNEY’S FEES PROVISIONS IN A LEASE Landlords may be reluctant to engage in litigation with a defaulting Tenant for fear of the expense of attorney’s fees in pursuing the case. However, many commercial leases have a provision within them allowing for the Landlord to recoup its attorney’s fees from the Tenant whenever an attorney is engaged to deal with a Tenant default. This is an important tool that should not be overlooked and can lessen the cost impact of litigation, in addition to its use as a bargaining chip and leverage in negotiations with the Tenant to resolve the issues at hand.  FAILING TO DEAL PROPERLY WITH A TENANT IN BANKRUPTCY The rules can change for a Landlord when it is discovered that the Tenant has filed for bankruptcy protection. It is important that collection actions not be taken against Tenants in bankruptcy, as such actions may be interpreted as violating the automatic stay on creditors imposed by the bankruptcy code, which can lead to harsh penalties. The Landlord may have to file an appropriate motion with the bankruptcy court requesting relief from the automatic stay in order to pursue an eviction action against the Tenant to dispossess him/her from the space.   The general information contained herein is intended for informational purposes only. It is not intended to be and should not be construed as legal advice or legal opinion on any specific facts or

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHY LANDLORDS CANNOT CHANGE THE RULES

So what was wrong with the landlord’s request? Income is not a protected class and a landlord has the right to set up any approval criteria as long as it doesn’t cross over into discrimination. Why landlords cannot change the rules. Smoking, criminal history, and several other distinctions are not protected either, so why did the landlord catch so much heat for his notice? The reason the landlord got into such hot water with tenants and the landlord/tenant community at large is that he attempted to change the conditions of the tenancy during an existing lease agreement. He was trying to re-screen existing tenants and impose income levels and credit scores that were not previously established. In other words, the landlord tried to change the terms of a contract while it was still in effect. The question, can landlords change the rules in mid-lease, has a simple answer—no. Why Can’t Landlords Change The Rules? It may seem like the landlord should be able to change the rules for something because they own the property and should be able to switch things up when they want to, as long as the rule change is fair, right? Wrong. A lease agreement is a contract, which means that two parties come together on an agreed-upon exchange of benefits for both sides. Landlords and tenants sign a lease agreement and agree to do certain tasks, perform certain duties and also give up some things in the process. If a change in a rule affects the terms and conditions of the contract, that can be a problem. Any rule change that affects the tenant’s wallet or how they live in the rental property day-to-day can be considered a change in the terms and conditions of that lease agreement contract. Landlords simply cannot change that when they want. Enacting Rule Changes Properly There are ways that landlords and tenants can make changes to the lease agreement. This is known as a lease addendum and it means that the landlord and tenant both agree to amend a certain part of the contract they signed. A lease addendum gives the tenant some power in approving or negotiating the change, because it cannot take effect unless both parties agree and sign. The change only occurs if they both enter into that agreement. An example of this might be that in the original lease agreement, the landlord promises to pay for basic cable as part of the rental agreement. The tenant wants to get a satellite TV service installed but it is much more expensive. The landlord and tenant reach an agreement that the landlord will no longer provide or pay for basic cable and that the tenant can get satellite TV installed at the rental property and will assume all costs for that service. The lease addendum would outline these new terms and both parties would sign the addendum. 5 Common Changes Landlords Try to Enact Mid-Lease Inexperienced landlords often try to affect changes in mid-lease because they don’t know any better. Often it is a reaction to a current tenant problem, such as making new rules about parking, restricting access to a property amenity like a pool or clubhouse or imposing additional requirements for yard maintenance. Here are 5 common changes landlord try to enact mid-lease: 1. Raising the rent before the current lease agreement expires 2. Changing the late rent date or late fees 3. Charging tenants to use a previously free amenity, like the pool or parking space 4. Adjusting lost key or lockout policies 5. Imposing arbitrary rules based on tenant behavior that doesn’t violate the lease agreement While there are dozens of things a landlord may want to change, it’s important for both tenants and landlords to know the proper way to usher in a new policy or rule. It can be done, it just needs to be done right rather than in the middle of a current lease agreement. When Can Landlords Implement Rule Changes? Landlords can implement rule changes when a tenant’s lease agreement expires. In other words, landlords should notify the tenant of the upcoming change well before it’s time to renew the lease agreement so the tenant will know of the change before signing the new lease. If the tenant is in a month-to-month lease agreement, the landlord must provide sufficient notice to the tenant of the change—generally a 30 day notice although some states may allow for longer or shorter notification periods. Rules can also be established for new, incoming applicants that can choose to abide by them when signing the lease agreement. So the California landlord cannot make the changes he requested for his current tenants, but he can impose income and credit limits on applicants and future tenants as long as it is written in the lease agreement and is not violating any state or local laws. If a landlord wants to implement a major change, the two ways to do so are via a lease addendum or waiting until the current lease agreement expires. Can a landlord raise rent after the lease is signed? A landlord cannot raise rent immediately after the lease is signed. They must wait until that lease ends. If a tenant signs a one year lease than after 11 months a landlord typically will issue a rent renewal letter. At that moment the landlord will inform the tenant that the rent will be increasing. Once the 12-month lease is up at that point the landlord can increase the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

BUYING A HOUSE WITH A FRIEND

You already know it's going to be fun. Here's how to buy a house with a friend the smart way. Who says you have to have a romantic partner to buy a house with someone? If you find yourself single and ready to buy a place, joining forces with your best friend might feel like a no-brainer. After all, buying a home together can benefit your finances when it comes to your mortgage rate or saving for a down payment. On the other hand, it is a little different than buying a house with someone to whom you’re legally bound.  Here’s what to consider when buying a house with your best friend. Rent together first. Being able to live together in harmony is a big factor in the success of buying a home with your best friend. Renting together can provide the perfect dry run before you’re locked into a mortgage together. No matter how well you know each other, you’ll know each other differently once you live together. Is one of you neater? Does one of you come up short when it’s time to pay the bills? The only way to know if you and your housemate will sink or swim is to dive in. Be Open About Your Finances There are no financial secrets in homeownership. If you co-own a home, you co-own the mortgage. Both of your finances will be considered when applying for a mortgage, so if you’re hiding a terrible credit score, for example, it won’t stay hidden for long. Before approaching a lender, share everything about each other’s finances, including your monthly income and how you spend it. In order to protect yourself, it’s important to know for sure that your best friend can afford to make their half of the house payment each month. Discuss Shared Responsibilities A home comes with a whole host of tasks and liabilities that you will be on the hook for together. Not only will you need to discuss how a plumbing bill will be handled for the toilet only one of you uses, but you’ll also need to determine who will clean the gutters. After all, if you end up with water damage or foundation issues because of clogged gutters, both of you will take the financial hit. Get Legal Once you are on the same page about your finances and responsibilities, it’s time to consult with a lawyer. That can feel awkward, but think about it: Being married is a legal contract, too. You want to make sure you and your best friend are protected in the same way any married couple is when they buy a home together. In your legal agreement, include your plans to divide up finances and responsibilities, how you’ll share any tax benefits or profits from a sale, and how you’ll accommodate changes, including if one of you loses your job — or gets a job offer across the country and wants to move out. Discuss Your Long-Term Plans Perhaps your goal is to live with your best friend until the end of time. But more likely, if you’re young, you’ll eventually move on to the next phase in life, either on your own or with a partner. Or, a romantic partner might come along and want to become a third owner of your home. No matter what, if you’re not saying “till death do us part” with your home’s co-owner, you need a mutual understanding of each other’s long-term goals. If you plan to own a home together for five years and then sell, you’ll need to commit to those five years, no matter what else happens in life — and expect your best friend to do the same. Get Shopping Ready to buy a home with your best friend? Shopping for a home together will be the same as it is for everyone else — exciting. Sit down together and discuss your wants and must-haves, and start house hunting. Who better to go on a homeownership adventure with than your best

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MARITAL WAIVER IN MISSOURI

Marital Rights in Missouri. A title companies perspective Several areas often require delicate handling when requesting information. One of the most frequent involves requesting information on a party’s spouse, or even worse, their ex-spouse. Parties rarely understand why this type of information is necessary, so we thought we would provide some basics in regards to spousal rights in Missouri. It is easy to understand that when both spouses jointly own a property (in an arrangement known as tenants by the entirety), both spouses must sign off on paperwork to sell or mortgage the property. However, even when one spouse owns a property in his or her name alone, that person’s spouse must consent before he or she can convey (sell) or encumber (mortgage) the property. This is because, under Missouri Revised Statute 474.150, any conveyance of real estate made by a married person without the written expressed assent of his or her spouse is deemed to be in fraud of the spouse’s marital rights. When this situation arises, we typically ask that a spouse not on title execute a Marital Rights Waiver, which essentially states that a particular transaction will not be in fraud of his or her marital rights. The failure to obtain a Marital Rights Waiver, or its substantial equivalent, can become a defect on title. Therefore, essentially whenever a married person owns property in Missouri in his or her name (rather than in a corporate entity or trust), that person’s spouse must consent to transactions involving the property. So what about ex-spouses, why do title companies care about them? This can be for a variety of reasons. One typical reason is that the owner was married when he or she acquired the property, but later got divorced. While the divorce is final, it may not be fully documented for the land records- the records may show that title remains vested in husband and wife. Therefore, we usually seek documentation (a divorce decree or other court order) showing that the property was awarded to one spouse or the other in the divorce. Hopefully, the property was awarded to the current owner. Another issue may relate to child support payments. But that will be for another day…. For the “unmarrieds” out there, this link on tips for unmarried couples buying property together is

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

LEGACY PLANNING

What is Legacy Planning Legacy planning is a financial strategy that prepares a person to bequeath his or her assets to a loved one or next of kin after death. These affairs are usually planned and organized by a financial advisor. BREAKING DOWN Legacy Planning Legacy planning is important to consider before a person passes away. After a person passes away, his or her wealth and possessions are passed on to next of kin or to people or charities specified in a will. If you don't have a plan in place for your estate, its management might go against your wishes once it is passed on. Legacy planning is especially important for those with small businesses or other assets that require maintenance. Financial Advisors and Legacy Planning Just as with writing a will, it's important to start planning your legacy early so that when the time comes, your affairs are in order. A financial advisor provides advice on how best to prepare your legacy and assist with any question or special requests that might come up. First, the financial advisor guides you toward reaching a level of financial security that will both give you a comfortable life and allow you to leave wealth as a part of your legacy. Many people forget that they cannot leave a financial legacy if they weren't financially secure enough to amass that legacy in the first place. After addressing the issue of financial security, the financial advisor gives advice on how to ensure that your affairs are managed and continue to prosper after they've been passed on. The advisor usually recommends setting up a meeting with your next of kin to discuss how to manage your estate, so there are no surprises. This allows you to communicate any preferences or wishes you have in how it should be managed or what should become of it. It's always useful to have these wishes in writing, such as in a will. The financial advisor can also assist you in donating any portion of your wealth to charity. If you own a small business, for example, you might also be worried about protecting your estate from legal issues or creditors. Financial advisors can provide advice on how to take steps to ensure that your assets are protected after they've been passed

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

2019 REAL ESTATE FORECAST

There’s no doubt about it: the 2018 housing market has seen its ups and downs. The year started with sky-high home prices, historically low mortgage rates and a definitive upper hand for sellers. In recent months though, home price growth has faltered, rates have risen to their highest point in nearly eight years, and favor has started to shift from seller to buyer. Will these trends continue? Will housing experience the same wild ride in the new year? Here’s what experts predict will happen in 2019 real estate market: Mortgage rates will continue rising. “Despite steady climbing for the past two years, mortgage rates remain lower than they were during most of the recession and below average for the type of strong economic growth we’ve been experiencing. That will change in 2019, as the 30-year, fixed rate mortgage reaches 5.8% — territory not seen since the dark days of 2008 when rates were racing downward in response to the housing crisis.” — Aaron Terrazas, director of economic research for Zillow Millennials will keep buying homes — despite those rising rates. "The housing market in 2019 will be characterized by continued rising mortgage rates and surging millennial demand. Rising rates, by making housing less affordable, will likely deter certain potential homebuyers from the market. On the other hand, the largest cohort of millennials will be turning 29 next year, entering peak household formation and home-buying age, and contributing to the increase in first-time buyer demand.” — Odeta Kushi, senior economist for First American “Millennials will continue to make up the largest segment of buyers next year, accounting for 45% of mortgages, compared to 17% of Boomers, and 37% of Gen Xers. While first-time buyers will struggle next year, older Millennial move-up buyers will have more options in the mid-to upper-tier price point and will make up the majority of Millennials who close in 2019. Looking forward, 2020 is expected to be the peak Millennial home buying year with the largest cohort of millennials turning 30 years old. Millennials are also likely to make up the largest share of home buyers for the next decade as their housing needs adjust over time.”

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE SANDWICH GENERATION

With an aging population and a generation of young adults struggling to achieve financial independence, the burdens and responsibilities of middle-aged Americans are increasing. Nearly half (47%) of adults in their 40s and 50s have a parent age 65 or older and are either raising a young child or financially supporting a grown child (age 18 or older). And about one-in-seven middle-aged adults (15%) is providing financial support to both an aging parent and a child. SDT-2013-01-30-SG-00-02While the share of middle-aged adults living in the so-called sandwich generation has increased only marginally in recent years, the financial burdens associated with caring for multiple generations of family members are mounting. The increased pressure is coming primarily from grown children rather than aging parents. According to a new nationwide Pew Research Center survey, roughly half (48%) of adults ages 40 to 59 have provided some financial support to at least one grown child in the past year, with 27% providing the primary support. These shares are up significantly from 2005. By contrast, about one-in-five middle-aged adults (21%) have provided financial support to a parent age 65 or older in the past year, basically unchanged from 2005. The new survey was conducted Nov. 28-Dec. 5, 2012 among 2,511 adults nationwide. Looking just at adults in their 40s and 50s who have at least one child age 18 or older, fully 73% have provided at least some financial help in the past year to at least one such child. Many are supporting children who are still in school, but a significant share say they are doing so for other reasons. By contrast, among adults that age who have a parent age 65 or older, just 32% provided financial help to a parent in the past year. While middle-aged adults are devoting more resources to their grown children these days, the survey finds that the public places more value on support for aging parents than on support for grown children. Among all adults, 75% say adults have a responsibility to provide financial assistance to an elderly parent who is in need; only 52% say parents have a similar responsibility to support a grown child. One likely explanation for the increase in the prevalence of parents providing financial assistance to grown children is that the Great Recession and sluggish recovery have taken a disproportionate toll on young adults. In 2010, the share of young adults who were employed was the lowest it had been since the government started collecting these data in 1948. Moreover, from 2007 to 2011 those young adults who were employed full time experienced a greater drop in average weekly earnings than any other age group.1 A Profile of the Sandwich Generation Adults who are part of the sandwich generation—that is, those who have a living parent age 65 or older and are either raising a child under age 18 or supporting a grown child—are pulled in many directions.2 Not only do many provide care and financial support to their parents and their children, but nearly four-in-ten (38%) say both their grown children and their parents rely on them for emotional support. Who is the sandwich generation? Its members are mostly middle-aged: 71% of this group is ages 40 to 59. An additional 19% are younger than 40 and 10% are age 60 or older. Men and women are equally likely to be members of the sandwich generation. Hispanics are more likely than whites or blacks to be in this situation. Three-in-ten Hispanic adults (31%) have a parent age 65 or older and a dependent child. This compares with 24% of whites and 21% of blacks. SDT-2013-01-30-SG-00-03More affluent adults, those with annual household incomes of $100,000 or more, are more likely than less affluent adults to be in the sandwich generation. Among those with incomes of $100,000 or more, 43% have a living parent age 65 or older and a dependent child. This compares with 25% of those making between $30,000 and $100,000 a year and only 17% of those making less than $30,000. Married adults are more likely than unmarried adults to be sandwiched between their parents and their children: 36% of those who are married fall into the sandwich generation, compared with 13% of those who are unmarried. Age is a factor here as well, since young adults are both less likely to be married and less likely to have a parent age 65 or older. Presumably life in the sandwich generation could be a bit stressful. Having an aging parent while still raising or supporting one’s own children presents certain challenges not faced by other adults—caregiving and financial and emotional support to name just a few. However, the survey suggests that adults in the sandwich generation are just as happy with their lives overall as are other adults. Some 31% say they are very happy with their lives, and an additional 52% say they are pretty happy. Happiness rates are nearly the same among adults who are not part of the sandwich generation: 28% are very happy, and 51% are pretty happy. Sandwich-generation adults are somewhat more likely than other adults to say they are often pressed for time. Among those with a parent age 65 or older and a dependent child, 31% say they always feel rushed even to do the things they have to do. Among other adults, the share saying they are always rushed is smaller (23%). SDT-2013-01-30-SG-00-04For members of the sandwich generation who not only have an aging parent but have also provided financial assistance to a parent, the strain of supporting multiple family members can have an impact on financial well-being.3 Survey respondents were asked to describe their household’s financial situation. Among those who are providing financial support to an aging parent and supporting a child of any age, 28% say they live comfortably, 30% say they have enough to meet their basic expenses with a little left over for extras, 30% say they are just able to meet their basic expenses and 11% say they don’t have enough to meet even basic expenses. By contrast, 41% of adults who are sandwiched between children and aging parents, but not providing financial support to an aging parent, say they live comfortably. Family Responsibilities SDT-2013-01-30-SG-00-05When survey respondents were asked if adult children have a responsibility to provide financial assistance to an elderly parent in need, fully 75% say yes, they do. Only 23% say this is not an adult child’s responsibility. By contrast, only about half of all respondents (52%) say parents have a responsibility to provide financial assistance to a grown child if he or she needs it. Some 44% say parents do not have a responsibility to do this. When it comes to providing financial support to an aging parent in need, there is strong support across most major demographic groups. However, there are significant differences across age groups. Adults under age 40 are the most likely to say an adult child has a responsibility to support an elderly parent in need. Eight-in-ten in this age group (81%) say this is a responsibility, compared with 75% of middle-aged adults and 68% of those ages 60 or older. Adults who are already providing financial support to an aging parent are no more likely than those who are not currently doing this to say this is responsibility. On the question of whether parents have a responsibility to support their grown children, personal experience does seem to matter. Parents whose children are younger than 18 are less likely than those who have a child age 18 or older to say that it is a parent’s responsibility to provide financial support to a grown child who needs it (46% vs. 56%). And those parents who are providing primary financial support to a grown child are among the most likely to say this is a parent’s responsibility (64%). Financial Support for Aging Parents and Grown Children SDT-2013-01-30-SG-00-06While most adults believe there is a responsibility to provide for an elderly parent in financial need, about one-in-four adults (23%) have actually done this in the past year. Among those who have at least one living parent age 65 or older, roughly one-third (32%) say they have given their parent or parents financial support in the past year. And for most, this is more than just a short-term commitment. About seven-in-ten (72%) of those who have given financial assistance to an aging parent say the money was for ongoing expenses. Similar shares of middle-aged, younger and older adults say they have provided some financial support to their aging parents in the past year. It is worth noting that many parents age 65 or older may not be in need of financial assistance, so there is not necessarily a disconnect between the share saying adult children have a responsibility to provide for an aging parent who is in need and the share who have provided this type of support. Overall, Americans are more likely to be providing financial support to a grown child than they are to an aging parent. Among all adults, 30% say they have given some type of financial support to a grown child in the past year. Among those who have a grown child, more than six-in-ten (63%) have done this. Here the burden falls much more heavily on adults who are middle-aged than on their younger or older counterparts. Among adults ages 40 to 59 with at least one grown child, 73% say they have provided financial support in the past year. Among those ages 60 and older with a grown child, only about half (49%) say they have given that child financial support. Very few of those under age 40 have a grown child. Of those middle-aged parents who are providing financial assistance to a grown child, more than half say they are providing the primary support, while about four-in-ten (43%) say they are not providing primary support but have given some financial support in the past 12 months. Some 62% of the parents providing primary support say they are doing so because their child is enrolled in school. However, more than one third (36%) say they are doing this for some other reason. The focus in this report is on the financial flows from middle-aged adults to their aging parents and their grown children. Of course, money also flows from parents who are 65 or older to their middle-aged children. While the new Pew Research survey did not explore these financial transfers, previous surveys have found that a significant share of older adults provide financial help to their grown children. A Pew Research survey conducted in Sept. 2011 found that among adults 65 and older with at least one grown child age 25 or older, 44% said they had given financial support to a grown child in the past year.4 Beyond Finances: Providing Care and Emotional Support While some aging parents need financial support, others may also need help with day-to-day living. Among all adults with at least one parent age 65 or older, 30% say their parent or parents need help to handle their affairs or care for themselves; 69% say their parents can handle this on their own. Middle-aged adults are the most likely to have a parent age 65 or older (68% say they do). And of that group, 28% say their parent needs some help. Among those younger than 40, only 18% have a parent age 65 or older; 20% of those ages 60 and older have a parent in that age group. But for those in their 60s and beyond who do still have a living parent, the likelihood that the parent will need caregiving is relatively high. Fully half of adults age 60 or older with a living parent say the parent needs help with day-to-day living. When aging adults need assistance handling their affairs or caring for themselves, family members often help out. Among those with a parent age 65 or older who needs this type of assistance, 31% say they provide most of this help, and an additional 48% say they provide at least some of the help. In addition to helping their aging parents with day-to-day living, many adults report that their parents rely on them for emotional support. Among all adults with a living parent age 65 or older, 35% say that their parent or parents frequently rely on them for emotional support, and 33% say their parents sometimes rely on them for emotional support. One-in-five say their parents hardly ever rely on them in this way, and 10% say they never do. SDT-2013-01-30-SG-00-07Even among those who say their parents do not need help handling their affairs or caring for themselves, 61% say their parents rely on them for emotional support at least sometimes. For those whose parents do need help with daily living, fully 84% report that their parents rely on them for emotional support at least some of the time. Not surprisingly, the older the parent, the more likely he or she is to require emotional support. Among adults with a parent age 80 or older, 75% say their parents turn to them for emotional support frequently or sometimes. This compares with 64% among those who have a parent ages 65 to 79. Emotional support also flows from parents to grown children, even children who are financially independent. Overall, 33% of parents with at least one child age 18 or older say their grown child or children depend on them frequently for emotional support. An additional 42% say their grown children sometimes rely on them for emotional support. When it comes to grown children, there is a link between financial and emotional support. Among parents who say they are providing primary financial support to their grown child or children, 43% say their children frequently rely on them for emotional support and 45% say they sometimes do. By comparison, only 24% of those who say they do not provide any financial support to their grown children say their children frequently rely on them for emotional support, and 39% say their children sometimes rely on them for this type of support. Boomers Moving Out of the Sandwich Generation SDT-2013-01-30-SG-00-08Today members of the Baby Boomer generation and Generation X are represented in the “sandwich generation.” But the balance has shifted significantly. When the Pew Research Center explored this topic in 2005, Baby Boomers made up the majority of the sandwich generation. They were more than twice as likely as members of the next generation—Generation X—to have a parent age 65 or older and be supporting a child (45% vs. 20%). Since 2005, many Baby Boomers have aged out of the sandwich generation, and today adults who are part of Generation X are more likely than Baby Boomers to find themselves in this situation: 42% of Gen Xers have parent age 65 or older and a dependent child, compared with 33% of Boomers.5 This report will focus largely on adults ages 40 to 59, loosely defined as “middle aged.” While this group may not share a generational label, many of its members do have a shared set of experiences, challenges and responsibilities given the unique position they inhabit, sandwiched between their children and their aging parents. Middle-aged adults who make up the core of the sandwich generation are living out these challenges and, in the process, perhaps ushering in a new set of family dynamics. Most middle-aged parents with grown children say their relationship with their children is different from the relationship they had with their own parents at a comparable age. Half say the relationship is closer, while 12% say it’s less close and 37% say the relationship is about the same. Older adults (those ages 60 and older) are less likely than middle-aged parents to say they have a closer relationship with their grown children than they had with their own parents (44%), and they are more likely to say the relationship is about the same

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MISSOURI MECHANICS LIEN LAW

Notice provisions of Missouri’s mechanic’s lien statutes Missouri law (R.S.Mo. 429.005.1, et seq.) grants general contractors, subcontractors, suppliers, and laborers the ability to assert a mechanic’s lien for labor and materials provided to a property, provided the lien is properly filed within six months of the last date of work (excluding warranty and corrective work). In addition to addressing issues related to what work is lienable and the type of properties that may be liened, the statutes also include strict timelines with respect to notice that must be provided to the property’s owner prior to filing the lien. Providing correct and timely notice is the first step in preserving and maintaining valid mechanic’s lien rights in Missouri. This blog post focuses solely on the notice an original contractor and subcontractor must provide the owner prior to filing a mechanic’s lien and applies to privately owned commercial properties only. Original contractors An original or prime contractor is a contractor that enters into a contract to perform labor or furnish materials directly with the property’s owner. To preserve its ability to file a mechanic’s lien, an original contractor must provide the property owner with a written notice prior to payment and at one of the following junctures: when the contract is signed; when materials are first delivered; when work commences; or when the first invoice is delivered. The notice must be written in 10-point bold font, and state: NOTICE TO OWNER FAILURE OF THIS CONTRACTOR TO PAY THOSE PERSONS SUPPLYING MATERIAL OR SERVICES TO COMPLETE THIS CONTRACT CAN RESULT IN THE FILING OF A MECHANIC'S LIEN ON THE PROPERTY WHICH IS THE SUBJECT OF THIS CONTRACT PURSUANT TO CHAPTER 429, RSMO. TO AVOID THIS RESULT YOU MAY ASK THIS CONTRACTOR FOR “LIEN WAIVERS” FROM ALL PERSONS SUPPLYING MATERIAL OR SERVICES FOR THE WORK DESCRIBED IN THIS CONTRACT. FAILURE TO SECURE LIEN WAIVERS MAY RESULT IN YOUR PAYING FOR LABOR AND MATERIAL TWICE Compliance with this notice provision is a condition precedent to the creation of a valid mechanic’s lien by an original contractor. Subcontractors or suppliers A subcontractor or supplier not in privity of contract with a property’s owner must provide the owner with at least 10 days’ written notice prior to filing a lien statement. The notice must include the name of the claimant, the amount of the claim, from whom the money is due, and a description (preferably a legal description) of the property. Notice must be served upon the owner by the sheriff, a private process server or any “person who would be a competent witness.” This notice is a condition precedent to the creation of a valid lien. It is important that subcontractors and suppliers keep a careful eye on the six-month deadline within which to file the mechanic’s lien, to leave enough time to serve the 10-day pre-lien notice upon the owner. A summary of the notice timeline is below: Type of Claimant Type of Notice Time of Notice Lien Statement Suit to Enforce Original contractor or material supplier to owner Statutory notice, 10-point bold-face font Before receipt of payment and at one of the four times provided in the statute File within six months after the last day labor/materials are furnished by the lien claimant File within six months of filing lien statement Subcontractor and supplier (Other than to the owner) Pre-lien notice At least 10 days before filing the lien statement File within six months after the last day labor and materials are furnished by the lien claimant File within six months of filing lien

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHY REAL ESTATE BUILDS WEALTH

Inflation Inflation is something we all take for granted. The price of everyday goods increases on a gradual basis, and we have no choice but to pay the increased price. So we don’t focus on it much. It’s a cost that doesn’t discriminate but hits everyone, so what’s the point in complaining? Understanding how inflation affects their employees’ ability to provide for their families, many large companies offer a “cost of living increase” each year. Inflation is just a facet of the economy. While averaging 3% per year, the U.S. consumer has seen years of high inflation (12.5% in 1980) and years of low inflation (0.1% in 2008). For real estate investors, inflation can create wealth consistently and reliably. That’s because inflation is a consistent driver of home value appreciation. The monthly payment on a fixed-rate mortgage stays the same for 30 years. Taxes and insurance increase very gradually, if at all. That means that while the value of an investment property is increasing each year thanks to inflation, the cost of owning it is not. The difference is equity — you own a more valuable asset year after year thanks to inflation. Appreciation While inflation leads to a gradual increase in the value of your investment property, rapid market appreciation is a huge factor that builds wealth. The price of existing homes increased by an average of 5.4% annually from 1968 to 2009. With real estate, it’s all about location, location, location. If you’ve done your research and purchased a property where the values of homes increase rapidly, chances are your investment will increase in value year after year without any additional capital expense. This is historically how a lot of people made a lot of money in real estate. The same principle that works in stock market investing works in real estate investing: Buy low and sell high. Areas of the country, such as parts of California, have seen home values increase much, much faster than inflation. Annual Rent Increases Housing is the cost of living. Just as inflation leads to an increase in the cost of groceries and consumer goods, the cost of housing keeps pace with inflation. It’s typical to increase rents by 2.5–5% each year due to the effects of inflation. And it’s common for landlords to increase rents each time a lease is renewed. However, as an investor, your costs of owning a rental property don’t increase with inflation if your mortgage interest rate is fixed. As a landlord, your rental income increases while your costs stay the same. So your investment property delivers more profit to your bottom line year after year. Forced Equity “Equity” refers to ownership. In the case of real estate investing, your personal equity is the difference between the market value of the property and what you owe on the mortgage. For example, if your property has a value of $150,000 and you owe the bank $120,000, you have $30,000 equity. “Forced equity” refers to the wealth created when you buy a property at a discounted price and do work to make it worth more. Typically, you buy a “distressed” property selling for 25–30% less than a comparable property that is not distressed. You spend 10–15% to fix it up (carpet, paint, repairs and some replacement appliances) and bring it up to market value. Let’s say you paid 25% below market value. You then spent 10% to fix it. You just increased your equity (ownership) by 15%. Another way to force equity is to add features that increase the property’s value. Let’s say you buy a two-bedroom house in a neighborhood where the rest of the homes have three bedrooms. Adding the third bedroom would bring your property up to par with the market value of the other homes. Assuming you bought it for an appropriate discount (because it had only two bedrooms) and the cost to add another bedroom is less than the difference between your price and the new market value, you have forced equity in the house. Depreciation Depreciation is negative in most instances. It means the value of something has decreased. In real estate investing, however, we’re not talking about an actual drop in the value of the property. We’re talking about a valuable tax break the IRS allows real estate investors. Each year, you can deduct a percentage of the value of the investment property for its IRS-determined lifespan. For residential properties, the IRS has said that the useful lifespan is 27.5 years. So, for example, if your property is worth $150,000, you can deduct $5,454 from the rental income derived from the property. Say your net annual rental income is $15,000. Your taxable rental income drops down to $9,546. What makes this depreciation tax break so financially powerful is that most real estate does not lose value each year. In fact, property values tend to go up over time. That means you get a tax credit on the cost of an asset that may be going up in value, not down. What’s more, depreciation is a tax credit that is on top of property upkeep and other costs that you can subtract from the rental income you get. Depreciation can change a cash-positive rental to a loss on paper. That loss can reduce your other taxable income and lower your tax bill overall. Leverage Leverage is one of the most touted wealth creation real estate investment strategies. It is the use of borrowed capital to purchase and/or increase the potential return of an investment. As a real estate investor, leverage allows you to make money from an income-producing asset worth much more than your cash outlay. For example, let’s say you put 20% down and finance 80% of a $100,000 property. The leverage allows you to benefit from and control the income from a $100,000 property when all you invested was $20,000. Leverage allows you to “make money using other people’s money,” as real estate promoters like to say. In a nutshell, you use the bank’s money to purchase the property and the tenant’s money to pay back the bank. The spread between what you pay the bank and what the tenant pays you is your profit. If you have $100,000, you could control $500,000 worth of real estate assets rather than buying one $100,000 house with cash. Be Aware of the Risks These are the primary strategies real estate investors use to create wealth. Of course, like any investment, there’s a risk. The key is to buy smart, manage professionally, and not get over-leveraged. Real estate investing is more hands-on and time intensive than buying stocks. It also typically delivers higher gains proportionate to with the increased risk. And unlike other investment choices, real estate is a long-term investment. This is because it’s a fixed asset that can’t be quickly liquidated and transaction costs are so high. In essence, know the risks and mitigate as much as possible. You can always try out Real Estate investing with online real estate crowdfunding services, link

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

1031 EXCHANGE VS. OPPORTUNITY ZONE FUND

No Fees: Almost all 1031 exchanges involve a 3rd party intermediary who charges a fee for the 1031 Exchange. Rolling into a Qualified Opportunity Fund has no fees for the roll over and no intermediary is involved. No Principle: 1031 Exchanges require you roll into the exchange both the principle and gain incurred. With a Qualified Opportunity Fund, you only have to roll the capital gain into the fund and NOT THE PRINCIPAL. Qualified Assets: Only real estate can qualify for a 1031 Exchange. With Qualified Opportunity Funds, capital gains from sale of real estate or another investment can qualify for an Opportunity Fund. Other investments like sale of stocks, crypto currency, anything that results in a capital gain. Investment Structure: 1031's are designed for single asset swaps. Multiple properties can be supported through certain structures, but this option usually comes with high costs, fees, and general inflexibility. Whereas, with Qualified Opportunity Funds they are designed to support a pooled fund that invests in multiple assets. Capital Gains Tax Deferral: No capital gains reduction is available except through a step up in basis upon death with 1031's. When rolling from 1031 to 1031 you are delaying the tax to later date in time. The idea being, that at a future date and time the tax rate would be lower than it is at time of initial gain. However, with Qualified Opportunity Funds the Capital gains tax on the initial investment is reduced by 10% after 5 years and by another 5% after 7 years through step up in basis. In total, a 15% reduction is possible (as long as an investor invests by December 31, 2019). Capital Gains Tax on Final Sale: With regards to 1031 Exchanges, an investor owes capital gains tax on final sale of the asset. In contrast, Opportunity Fund investors can expect permanent exclusion for any gains realized on their initial qualifying investment in the Opportunity Fund if they hold the investment for at least 10 years. In other words, even if the investor realizes a sizable capital gain when they sell their Opportunity Fund investment, they would owe zero federal taxes on that capital gain. In addition, at this time there is no limit on how long an Opportunity Fund investment may be held, which means that investors may be able to build decades of appreciation from any capital gains and owe nothing in capital gains tax on the earnings of the investment when they eventually sell it 10 or more years

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO STATISTICS

For Sale By Owner (FSBO) Statistics FSBOs accounted for 7% of home sales in 2017. The typical FSBO home sold for $200,000 compared to $265,500 for agent-assisted home sales. FSBO methods used to market home: Yard sign: 22% Friends, relatives, or neighbors: 18% Online classified advertisements: 6% Open house: 10% For-sale-by-owner websites: 5% Social networking websites (e.g. Facebook, Twitter, etc.): 12% Multiple Listing Service (MLS) website: 4% Print newspaper advertisement: 2% Direct mail (flyers, postcards, etc.): 2% Video: 1% None: Did not actively market home: 49% Most difficult tasks for FSBO sellers: Getting the right price: 17% Understanding and performing paperwork: 12% Selling within the planned length of time: 5% Preparing/fixing up home for sale: 8% Having enough time to devote to all aspects of the sale: 3% Source: 2018 National Association of REALTORS® Profile of Home Buyers and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS AN UNRECRODED EASEMENT?

What is an unrecorded easement? Easements (those rights someone else has to use part of your property) are typically recorded in the public records of the County in which the property is located, and are thus easily discernable to anyone searching in the public records. An unrecorded easement, on the other hand, are those easements which for whatever reason go unrecorded. A prescriptive easement for example, whereby a neighbor had been using the property in some way for a long time and thus created an easement may never have been recorded. An unrecorded easement is not covered by the title insurer unless an extended coverage endorsement is purchased and added to the title insurance policy. Recorded easements generally show up in a title search performed by the title company, but unrecorded easements may show up only on a survey. If you do not have a survey done on your property, you can ask to look at the existing owners’ survey which may have been done when they purchased the property, to ascertain if any unrecorded easements are in place. If you discover an easement, check the wording carefully. When a document grants an easement to a particular person, the restriction may terminate when he dies or sells the property. If it is granted to someone for a term of years or to someone and his “heirs and assigns,” then it probably is in effect no matter who owns the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

PROTECTING YOUR HOUSE AFTER YOU MOVE INTO A NURSING HOME

Protecting Your House After You Move Into a Nursing Home While you generally do not have to sell your home in order to qualify for Medicaid coverage of nursing home care, it is possible the state can file a claim against your house after you die. If you get help from Medicaid to pay for the nursing home, the state must attempt to recoup from your estate whatever benefits it paid for your care. This is called "estate recovery," and given the rules for Medicaid eligibility, the only property of substantial value that a Medicaid recipient is likely to own at death is his or her home. If possible, you should consult with an attorney before entering a nursing home, or as soon as possible afterwards, in order to discuss ways to protect your home. In those states that have implemented the Deficit Reduction Act of 2005, the home is not counted as an asset for Medicaid eligibility purposes if the equity is less than $552,000 (in 2016) ($828,000 in some states). In all states, you may keep your house with no equity limit if your spouse or another dependent relative lives there. Transferring a Home In most states, transferring your house to your children (or someone else) may lead to a Medicaid penalty period, which would make you ineligible for Medicaid for a period of time. There are circumstances in which it is legal to transfer a house, however, so consult an attorney before making any transfers. You may freely transfer your home to the following individuals without incurring a transfer penalty: Your spouse A child who is under age 21 or who is blind or disabled Into a trust for the sole benefit of a disabled individual under age 65 (even if the trust is for the benefit of the Medicaid applicant, under certain circumstances) A sibling who has lived in the home during the year preceding the applicant's institutionalization and who already holds an equity interest in the home A "caretaker child," who is defined as a child of the applicant who lived in the house for at least two years prior to the applicant's institutionalization and who during that period provided care that allowed the applicant to avoid a nursing home stay. While you can sell your house for fair market value, it may make you ineligible for Medicaid and you may have to apply the proceeds of the sale to your nursing home bills. Lien on Home Except in certain circumstances, Medicaid may put a lien on your house for the amount of money spent on your care. If the property is sold while you are still living, you would have to satisfy the lien by paying back the state. The exceptions to this rule are cases where a spouse, a disabled or blind child, a child under age 21, or a sibling with an equity interest in the house is living there. Estate Recovery If your spouse, a disabled or blind child, a child under age 21, or a sibling with an equity interest in the house, lives in the house, the state cannot file a claim against the house for reimbursement of Medicaid nursing home expenses. However, once your spouse or dependent relative dies or moves out, the state can try to collect. But there are some circumstances under which the value of a house can be protected from Medicaid recovery. The state cannot recover if you and your spouse owned the home as tenants by the entireties or if the house is in your spouse's name and you have relinquished your interest. If the house is in an irrevocable trust, the state cannot recover from it. In addition, some children or relatives may be able to protect a nursing home resident's house if they qualify for an undue hardship waiver. For example, if your daughter took care of you before you entered the nursing home and has no other permanent residence, she may be able to avoid a claim against your house after you die. Consult with an attorney to find out if the undue hardship waiver may be

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

11 QUESTIONS TO ASK IF YOU ARE THINKING FSBO

11 Questions to Ask If You’re Thinking “FSBO” When the time comes that you decide you want to sell your home, the question you might ask yourself is, “Should I list my home with a Realtor or try to sell it myself?” The choice is yours. However, we wanted to give you 11 questions to ask yourself to help you make an educated decision. Do you have access to accurate data regarding selling prices, square footage, floor plans and amenities of other homes that have sold in your surrounding area within the last 6 months? Do you know how long it has been taking to sell a home in your area? Will you be available to answer phone calls and show your home to prospective buyers? Will you be able to screen prospects to make sure they are qualified (or worse yet, thieves)? Do you have a plan to market your home so people know it’s for sale? Can you handle criticism if negative comments are made about your home? Are you able to negotiate the highest sales price—either on the phone or face-to-face? Do you have access to purchase contracts and all state-required disclosures? Do you know how to obtain title insurance, deeds and any other legal documents needed to transfer ownership? Will you be available to meet appraisers, inspectors and contractors during the process? Do you understand all the fees you will be charged at closing and exactly how much you will end up

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CURRENT TRENDS IN REAL ESTATE

Okay, 2018 was quite the tease in the housing market. The year started out hot, only to taper off halfway through. But plenty of Americans still traded their For Sale signs for Sold ones, and they’ll usher in the new year from the comfort of their new homes. So will 2019 bring more of the same results? How will the housing market shake out in the current economic climate? Whether you’re selling, buying or staying put, here are the 2019 real estate trends you need to know! Real Estate Trend #1: Home Prices Are Rising Slowly . . . With Less Offers Unless you’ve been living under a rock, you’ve heard that during the course of 2017 and early 2018, home prices made a giant 10% jump. Wow! This year, however, may be a different story. Home prices are estimated to rise in 2019, but at a much slower pace, and the number of homes for sale is expected to increase by a mere 1%. What’s the reason? Well, part of the slowdown is due to increased mortgage interest rates and another part is because of overall economic uncertainty. That combination is enough to discourage many buyers who are on the fence about purchasing a home. But there are still eager buyers in the market, and many of them are looking for newly built homes. In fact, new home construction is projected to increase by 8% in 2019. That’s the good news. Here’s the bad news: There just aren’t enough new homes to go around in some areas. Plus, construction companies also don’t have the manpower to keep up with demand. What’s the bottom line? Expect the new construction that is available to go for a higher price. What Higher Prices Mean for Sellers A nice profit may be on the horizon! The number of homes sold next year is still expected to rise, even if it’s at a slow pace. That’s great news for sellers! But keep in mind that a lot of buyers are being priced out of the market, which could lead to fewer offers for your home. So what should you do about this? Be aware of your competition. With less offers to go around, you want your home to really stand out from similar ones in your area. Prepare your home for potential home buyers and work with a real estate agent to help you list your home at the right price. And be sure to wait for the right offer. Some buyers may try to gut punch you with a low number. If you aren’t in a hurry to move, wait for an offer that gives you the most profit. Remember, the less desperate person always has the upper hand when negotiating! What Higher Prices Mean for Buyers If you’re going to buy a home in this expensive market, you absolutely must find out how much house you can really afford. Crunch the numbers yourself with our free mortgage calculator and figure out a monthly payment your budget can handle. Commit to staying within that budget amount. Don’t rush into a home purchase that doesn’t make financial sense for you no matter how much pressure you feel watching competitors pluck good homes off the market. You could screw up your finances! If you can’t put down at least 10% on a 15-year fixed-rate conventional loan, then you probably can’t afford a house in this market. A down payment that’s less than 10% will strangle your budget with massive monthly mortgage payments. But if you want to get prepared to buy and you’re committed to your budget, here are some options to consider: Keep saving. If you stay patient and motivated, you can save for a five-figure down payment by this time next year. Sacrifice some wants. If you can’t afford to buy the house you want, be willing to give up some “nice-to-haves” for your “must-haves.” Find the least expensive home in the best neighborhood you can afford and you can upgrade as your income and savings increase over time. Expand your search. What if the location where you’re planning to buy is what’s busting your budget? You might be surprised at the gem you can find in a less popular neighborhood. Getting connected with a real estate agent who really knows the area is the best way find a home that fits your budget and lifestyle. Buying a home can be stressful, but our Home-Buyer’s Guide will streamline the process! It’ll help you think through all the important parts so you can rest easy when your dream home is officially yours. Real Estate Trend #2: Mortgage Interest Rates Are on the Rise Call it the seven-year itch. Mortgage interest rates are on the rise after years of being at a standstill. Interest rates are projected to increase to an average of 5% for a 30-year mortgage and 4.4% for a 15-year mortgage (the only type of mortgage we recommend).(3) Mortgage interest rates are on the rise after years of being at a standstill. Interest rates are projected to increase to an average of 5% for a 30-year mortgage and 4.4% for a 15-year mortgage. It’s been seven years since mortgage rates were this high. But despite grumblings, that doesn’t mean the economy is in trouble. It actually means the opposite! To help stabilize the strong economy and rising inflation during the past few years, the Federal Reserve increased short-term interest rates. It’s somewhat natural to see a trickle-down effect to the bank level like what we’re seeing now with mortgage interest rates. The increase basically means more people are willing to spend and borrow. Still, expect things to be a little different next year as buyers and sellers adjust to these changes. What Higher Mortgage Interest Rates Mean for Sellers In a nutshell, plan for your house to be on the market a little longer and prepare to possibly receive fewer offers. A mortgage is a big commitment, and adding higher interest rates to the mix will make many buyers pause. Partner with a real estate agent who understands the current market. They’ll help you set expectations for how much you can make, and how long you’ll have to wait for the right offer. What Higher Mortgage Interest Rates Mean for Buyers Even though mortgage interest rates are the highest they’ve been in a while, they’re still relatively low. If you’re not buying with cash, be smart and go for a conventional 15-year fixed-rate mortgage. That way, you know exactly what your payment will be over the life of the loan. Real Estate Trend #3: The Majority of Home Buyers Are Millennials Move aside, baby boomers and Gen Xers! Guess who’s taking the over the homeowner leaderboard? Yep, you better believe it. Millennials are busting out all over. They’re getting older and finding stable careers. Their household income has increased to $88,200, and they’re looking to buy their first homes in middle and upper-middle class neighborhoods.(4) This works out perfectly for them as more baby boomers are retiring and downsizing. Next year, millennials will lead the way in number of mortgages, accounting for 45% of the market. They’ll be followed by Gen Xers at 37% and baby boomers at 17%.(5) In 2019, millennials will lead the way in number of mortgages, accounting for 45% of the market. They’ll be followed by Gen Xers at 37% and baby boomers at 17%. What More Millennial Home Buyers Means for Sellers Here are three important words: Know your buyer. Millennials are internet savvy and do their research before house shopping. They look for: Easy online shopping. The home search starts online for millennials, so you need to make the best possible impression on the internet. Make sure you invest in high quality photos, and, for extra measure, consider using a drone to take aerial video footage. Quality over size. Yes, square footage matters. But millennials are more concerned about how sustainable and usable each space is. Get rid of your junk so they can visualize a bright future in your home without your stuff there. Location. A lot of millennials are looking for homes in 18-hour cities like Nashville, Tennessee, or Austin, Texas, that offer big city life at a more affordable cost of living. If your home is in a walkable area with access to public transit, expect millennials to come knocking at your door. Low-maintenance lifestyle. Millennials are used to living in the age of high-tech advances and Amazon Prime. They’re looking for energy-efficient homes with smart appliances. If you don’t have them, they’ll look elsewhere or lower their offer so they can upgrade after they buy. What More Millennial Home Buyers Means for Buyers Okay, if you’re looking for a three-bedroom, single-family home in the suburbs, expect to have a lot of competition. You may have to reprioritize what you want in a dream home. Follow these tips: Know what you want. Decide what you absolutely need in a home. If you’re married and house hunting, you and your spouse need to agree on must-haves. Compare your individual lists and combine them for your real estate agent to use as the foundation of your home search. Write a letter. Sending a personal story to your seller might be just the thing that makes you stand out from similar offers. Nashville couple Abby and John included a personal letter when they made an offer on their home. “We sent the sellers a personal letter with our offer,” Abby said. “The best thing you can do is to include in the letter things you love about their house. If they have a deck or screened-in porch, tell them how you envision using the space. We did that and the sellers accepted our offer—out of multiple offers—within 24 hours.” Hire an experienced pro. Last year, 90% of millennial home buyers used real estate agents to purchase their homes.(6) Think they’re onto something? You bet! Don’t try to buy on your own. Get the help of a pro so the home-buying process is smooth for everyone involved. What If I’m Not Buying or Selling a Home This Year? You may be thinking, All this is great, but I’m not going anywhere anytime soon. We hear you, and here’s what you should know for now: 1. Equity will likely continue to increase by 2–6% each year until 2020. With most housing markets at low risk for a downturn, the 2018 Housing and Mortgage Market Review estimates home prices will continue to rise for the next couple of years, with annual increases of 2–6%.(7) Who-hoo for sellers! If you sell your house before 2020, you’ll likely still make a great profit. Continue to monitor how much your home is worth to make sure your equity (what your home is worth minus how much you owe on it) is going up. 2. From what we can see, the real estate market is not going to crash. With such fast-rising mortgage interest rates, some folks are wondering if the housing market could collapse again. Well, it’s impossible to know for sure, but a number of factors indicate a housing crash is not in the foreseeable future and the economy is still strong. Here are some indicators: People are spending money. There’s a low unemployment rate and new career opportunities. All-cash real estate buyers (our kind of people!) are becoming more common. Fewer buyers are using interest-only home loans (aka the worst loans possible) that allow you to pay just the interest each month and not the principal. Millennials want to buy. Taxes are lower. 3. Regardless of your neighborhood, buyers are interested. Even though buyers in 2019 may be choosy, determined ones might be willing to consider neighborhoods that don’t have easy access to highways or aren’t in close proximity to a big city. If you think you live in an unpopular neighborhood or believe your home isn’t what buyers are looking for, think again. Now may be your perfect time to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

7 SIGNS YOU ARE READY TO SELL YOUR HOUSE

7 Signs You're Ready to Sell Your House Should I sell my house? If you've been asking yourself this question lately, we've got good news: It's a great market for sellers! Limited inventory continues to drive home prices up, and the latest data from the National Association of Realtors shows that nearly half of recently sold properties were on the market for less than a month. Of course, the decision to sell your house isn't based solely on market conditions. You have to take your personal situation into account—and that's where expert advice comes in handy. Here are seven signs you're ready to sell your house: 1. You've got equity on your side. For most homeowners, being financially ready to sell your house comes down to one factor: equity. During the housing meltdown of 2008–09, millions of homeowners found themselves with negative equity, which meant they owed more on their homes than they were worth. Clearly, selling your home when you have negative equity is a bad deal. That's called a short sale. Breaking even on your home sale is better, but it's still not ideal. If you're in either situation, don't sell unless you have to in order to avoid bankruptcy or foreclosure. For the last several years, home values have been on the rise—by leaps and bounds in many cases—and that means most homeowners are building equity. Their homes are now worth more than they owe on them, and that trend will persist as they pay down their mortgages and home values continue to increase. Figuring out how much equity you have may sound complicated, but the math is actually simple. Here's how it works: First, grab your latest mortgage statement and find your current mortgage balance. Next, you'll need to know your home value. While it's tempting to use figures from online valuation sites to determine how much your home is worth, they're not always accurate. Ask an experienced real estate agent to run a free comparative market analysis (CMA) for the best estimate. Once you have those two numbers in hand, simply subtract your current mortgage balance from your home's estimated market value. The difference will give you a good idea of how much equity you have to work with. So how much equity is enough? At the very least you want to have enough equity to pay off your current mortgage with enough left over to provide a 20% down payment. But if your sale can also cover your closing costs, moving expenses and an even larger down payment—that's even better. Additionally, putting 20% or more down on a home keeps private mortgage insurance (PMI) at bay. That could save you hundreds of dollars each year! 2. You're out of debt with cash in the bank. If you didn't have all your financial ducks in a row your first time around the home-buying block, you probably learned a few things the hard way. Like the fact that Murphy can smell "broke" from miles away. If it can go wrong, it will! Put those lessons to good use and be a money-smart home buyer the next go-round! Start by taking a hard look at your finances. If you've paid off all your nonmortgage debt and have three to six months of expenses in your emergency fund, that's a good sign you're financially mature enough to purchase a home again. 3. You can afford to buy a home that fits your lifestyle better. Another factor to consider is how well your home meets your everyday needs. Perhaps you could use another bedroom (or even two) to accommodate your growing family. Or maybe your kids have all moved out and you're ready to downsize. Empty nesters can really benefit from selling while rates are low. It's freeing to sell a large home, pay cash for a smaller one, and invest the rest for your retirement. Whether you're sizing up or down, make sure your mortgage fits your budget. Dave recommends keeping your monthly payment to 25% or less of your take-home pay on a 15-year fixed-rate mortgage. 4. You can cash-flow the move. Don't get so carried away by the excitement of your next home that you forget to account for the cost of leaving your current one. Hiring professional movers? Save up cash to cover the cost of packing up and hauling your stuff away. You should also invest a little to get your current place ready for prime time. Focus your home improvement dollars on paint, curb appeal, plus kitchen and bath upgrades. A little bit of fresh paint and elbow grease can go a long way into making a great impression—and getting your home sold fast! 5. You're emotionally ready to sell. If the numbers show you're financially ready to make a move, great! But don't forget—selling your home is an emotional issue, too. Before you plant the "For Sale" sign in the front yard, take a minute to answer just a few more questions: Are you ready to put in the work to get your house ready for house hunters? Are you committed to keeping it ready to show for weeks or months? Are you ready to hear the reasons why potential buyers believe your home is not perfect? Are you ready for honest—and sometimes hardball—negotiations over what buyers are willing to pay for your home? Are you really ready to move out and leave the place where your family has made memories? Don't get us wrong; we're not trying to talk you out of selling your home! We just want you to be completely ready when you do decide to move on to the next stage of your family's life. A qualified real estate agent will give you a clear picture of what it's like to sell your house, and also help you discern if now is the right time for you, both financially and emotionally. 6. You Understand the Market (a Little Bit) No one can predict how the housing market will perform. But the National Association of Realtors expects modest growth for existing homes in 2018. Despite the possibility of rising mortgage rates, home sales in 2018 are forecasted to grow around 7% percent, with the median price increasing 5%. Home Values Are Riding High With rents up and mortgage rates down, many renters are looking to buy their first home. There's just one problem: They're having trouble finding homes for sale within their price range. According to Trulia, there are 20% fewer entry-level homes on the market today than there were this time last year. A lot of investors snatched up bargains on entry-level homes when the market was down and turned them into rental properties. If you took economics in school, you learned all about supply and demand. When supply is down and demand goes up, prices trend upwards as well. That means your home might be worth more than you think. Consider the numbers: According to the National Realtors Association, U.S. homes are on the market an average of only 34 days, that's four less than last year. Recent listings of starter homes are 8% less than searches, which means there are more house hunters than homes available for sale. In other words, the market's hot for just about any home seller—but especially if you've got a starter home to sell. 7. You Have a Real Estate Agent The reasons already mentioned are essential to consider before selling your home this year. But remember, your real estate market is unique—and so is your financial situation. Consult an experienced real estate agent to find out how the 2018 housing market is shaping up in your area so you can decide if a sale makes financial sense for your family. Partner with a pro you can trust to provide honest advice so you can do what's best for you and your budget. A good agent puts service before sales—but knows how to get things done when it's time to sell. Selling your home is a big deal. A real estate agent does more than just schedule showings of your home. They bring experience and confidence to the table when they handle their many job duties, which include: Giving you advice about updates or repairs that will make your home more attractive Helping you set a price for your home Marketing your home so it receives as much exposure to potential buyers as possible Scheduling showings with potential buyers Advising you as you negotiate offers Handling all the required

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MINORS AND REAL ESTATE

There are times when a minor is in title. Maybe the deed from Mom & Dad says “Susan B. Jones, a minor.” Or, when she shows up to sign papers, the Realtor® notices the nanny who brought her in. Of course, a child can inherit property. The parents never intended for the child to own it so soon, but it happens. Are there problems with minors in title? Custodian Washington has adopted the Uniform Transfers to Minors Act. This is the most practical way for minors to “own” property. There is no document or agreement. The statute deals with the responsibility of the custodian to the child. Trust A trust can be set up for a minor, either separately or by language in a will. The trustee can also transfer property to a custodian (who can even be the trustee) if the trust permits it. Guardian A guardianship is often what happens when both parents are deceased without making provisions for how a minor child can deal with property. It’s not absolutely necessary unless real property must be sold or mortgaged, but a court must approve any real estate transaction. Most of us know there may be a problem, but what is it, exactly? Can little Suzie even be in title? Can she convey or mortgage the property? How? Well, yes a minor can be in title, and it happens all the time. That’s not the problem – if she doesn’t want (or need) to sell or mortgage the property now, she will eventually be old enough to do something with it. But until Suzie reaches the legal age of majority, she is under a type of “disability” because she lacks the capacity to enter in to binding contracts. If she signs title away when she is 17, she can disavow it when she reaches the age of majority and for some time thereafter. What if a minor needs to sell or mortgage the property? The only way for Suzie to sell or take out a mortgage is for someone to go to court, open a guardianship, appoint a guardian, get a court order authorizing the transaction, and have the guardian execute the deed or mortgage. Also, if a guardian has been appointed in another state, an ancillary court proceeding will be needed because the foreign court does not have jurisdiction. All this can be expensive and time consuming and pretty onerous if the transaction has to happen now. But, there is no alternative – the horse is already out of the barn, so to speak. The conveyance to Suzie (or her inheritance) can’t be undone. There are other more practical ways to deal with children owning real estate. One is a trust, where title is conveyed to the trustee of the trust, or the trust is set up in a probate. In that case, the title company will need to see the trust document or the will. A custodianship pursuant to RCW 11.114 is a simple alternative. In that case, title is conveyed to an adult of legal age: “John Paul Jones, as custodian for Susan "Uniform Transfers to Minors Act.” The statute provides for only one custodian per child per deed, and a trust company can be named as well, if the trust permits it. It used to be called the Uniform Gifts to Minors Act, and you might see this recital in a deed coming from another state. A deed can be accepted from a custodian in any state, which need only recite the adult custodian, the custodianship and the name of the minor. When title is vested in a custodian, title insurers do not need to call for any proof of authority or documentation. This is an advantage of a custodianship over a guardianship for all concerned. Acknowledgments for a custodian would be for the adult individual, because there is no documentation to present to the notary, while a guardian would use the representative capacity (for a fiduciary) form. Of course, during the custodianship the adult has a fiduciary responsibility to the minor, and can’t dispose of or use the assets for personal gain. The money from a sale of a house would still belong to the minor. But third parties, including title companies, don’t need to question where the money will end up. What happens when the minor reaches legal age? Once the minor reaches 18, 21 or in some cases 25 years of age (it all depends on the circumstances of the transfer), the custodian is to convey the property to the minor. But as an adult she can deal with the property in her own name. With a guardianship, the court action needs to be closed, and the property distributed to the minor. A custodianship is a convenient way for a minor to hold title, but there can be estate planning and taxation ramifications when children own real estate. An attorney should always be consulted if a minor is or will be in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

BABY BOOMERS?

Will baby boomers turn into party poopers when they unload their homes in large numbers starting in the next decade? Could they create an indigestible oversupply in the market that lowers home prices and frustrates sales? That’s a sobering scenario outlined by two new, provocative studies. One, from Fannie Mae’s Economic and Strategic Research group, warns that the “beginning of a mass exodus looms on the horizon,” where “homeownership demand from younger generations is insufficient to fill the void left by multitudes of departing older owners.” The net result: gluts in some local markets with potentially negative impacts. A second study, from the Stephen S. Fuller Institute at George Mason University, focuses on the Washington market and sees a similar problem ahead. “The significant number of older owners in relatively large homes may portend a ‘baby boomer sell-off’” in the D.C. region and elsewhere in the United States, it reports. Some longtime owners “may have difficulty attaining the price gains they witnessed in their neighborhoods during recent years,” according to author Jeannette Chapman, the Fuller Institute’s deputy director. Both studies cite demographic and housing data to make their cases. Boomers — the giant generation of Americans born between 1946 and 1964 — own 32 million homes, 2 of every 5 in the country. The generations preceding them occupy another 14 million homes. Collectively, their properties are valued at about $13.5 trillion, according to the Fannie Mae study, co-authored by Patrick Simmons of the strategic research group and Dowell Myers, a professor at the University of Southern California. All of these homeowners face key choices: Do we stay put, sell, downsize or move to a rental? At some point, the inevitable kicks in: Health issues and death will force them to dispose of their properties. Fannie’s study estimates that from 2016 to 2026, between 10.5 million and 11.9 million older owners will end their ownership status. Between 2026 and 2036, another 13.1 million to 14.6 million will do the same. This massive and unprecedented generational unloading of houses could be “negative for the home sales market,” the Fannie study warns, because the upcoming generations of buyers may not have the financial capacity — or desire — to absorb the large numbers of homes coming to market. How much of a price hit to boomers’ and potentially other owners’ properties could occur can’t be predicted at this point, Myers told me in an interview. “It’s impossible” to forecast price impacts “10 years ahead,” he said. “We do not mean to be alarmists,” he added, but hope to spur discussion of the impending challenges and the need for public and private policies that might cushion the impacts. Among the possibilities: Create financing programs that encourage millennials and others to buy their first homes so that they have the equity needed to purchase boomers’ homes 10 to 20 years from now. In the Fuller Institute study, Chapman notes that there’s already a mismatch in many Washington area neighborhoods, where empty-nest seniors own homes with far more space than they need. More than 273,000 homes are owned by individuals 50 years and older that have at least two more bedrooms than the number of people living in the house. “As these owners downsize or move elsewhere,” Chapman says, “the potential for increased supply is large enough to moderate price gains.” Chapman believes that large numbers of higher income renters and owners may be interested in trading up in the years ahead, thereby limiting the potentially negative impacts on prices and sales from the coming oversupply. Arthur C. Nelson, a professor of planning and real estate development at the University of Arizona, says some local markets with large oversupplies of boomer homes for sale could encounter significant price declines. In an email, Nelson, who has written about the coming challenges with boomers’ homes for several years, suggested that in the worst-hit areas, price declines could be as crushing as “a quarter or a third or more” — essentially the next housing crash. Not everybody agrees. Lawrence Yun, chief economist for the National Association of Realtors, says such dark forecasts ignore positive developments well underway: strong U.S. population growth, the rising importance of foreign-born buyers who will help sop up the oversupply of large houses in suburbs and the “glacial” speed at which the oversupply is likely to manifest itself. Yun is emphatic: There should be “no measurable price declines” attributable to the boomers. What does all this mean for you? At the very least, be aware of the issue. And think about devising a strategy for dealing with whatever scenario seems most realistic, whether you’re an owner or future

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REMODEL OR MOVE?

You’ve been in your house for a while and are still fond of the place. But it’s no longer exactly what you need or want. So, do you put the home up for sale and move out, or upgrade and settle in for the long haul? To answer that question, you’ll have to think about your emotional attachment to the house, whether renovating will bring a good return on your investment and whether you can afford to buy a replacement home. These and other factors will help you make your choice. Here’s what experts believe are the essential issues when deciding whether to remodel your current place and stay put, or buy a different home and move out. 1. Is your home in your heart? Your emotions will have a lot of say in whether you stay or go. “Think honestly about your relationship with your neighbors and how you feel about your location and the surrounding area,” says Fred Wilson, a principal with Morgante-Wilson Architects in Evanston, Illinois. “If you have a strong connection to the neighborhood and emotional ties to your home, renovating may be the right answer.” Wilson’s firm estimates that 70 percent of homeowners in the remodel-or-move quandary ultimately decide to stay put and make changes to their house. A residential architect may envision upgrade possibilities you may not see and help you get maximum functionality out of the home you already have. You might tap your home equity to pay for the improvements. 2. Can you budget realistically? Realistic budget planning is critical when deciding whether to make your current home work or look for another one. Budgeting accurately is essential if you do decide to renovate. “A lot of homeowners don’t know exactly what they want,” says Prashanth Pathy, an agent with Keller Williams Realty in Chicago. “Say they have $50,000 and the contractor says he can do it for that. But then their wishes change, they want different materials, it doesn’t come out as they imagined — and that’s where the budget gets blown up.” 3. More room or more rooms? Many homeowners base their decision to sell on the need for more space. However, a smarter layout that adds one more room but not more square footage can help some homeowners avoid moving, says Doug Perlson, New York City-based founder and CEO of real estate brokerage RealDirect. “A spacious three-bedroom home can often be reconfigured to four bedrooms and allow a family to have a more efficient layout without needing to leave the home they love,” he says. “We recommend laying out your floor plan with a designer and seeing if a reconfiguration could make sense. It is often much less disruptive and expensive than a move, and may solve your problems.” If you can’t find a spot for a new room? “Maybe it is time to sell,” he says. Will only a move be enough? Does your current home have what you consider to be a serious problem? It could be neighbors you can’t tolerate, a not-so-great school district or a cramped physical setting — including home and yard — that will never meet the needs of your growing family. If that’s the case, you really have just one choice: Move. But maybe the issue is that you essentially can’t afford the home you currently have, so a downward rather than upward move is necessary. This is fairly common. The 2016 REPORT from the John D. and Catherine T. MacArthur Foundation found that more than half (53 percent) of Americans struggle to make housing payments and have had to make sacrifices or trade-offs to cover those costs. How long will a renovation take? Many people overlook the fact that renovation involves “a serious, long-term commitment in time and energy,” says Pathy of Keller Williams. “They have to get their head around the process — time being the first and foremost consideration.” He’s not kidding. A kitchen remodel involving new countertops, cabinets, appliances and floors can stretch on for three to six months. If ductwork, plumbing or wiring has to be addressed, the job could take longer. A bathroom remodel can require two or three months, while a room addition can take a month or two. Pathy says you have to be ready to be very patient. “It’s very difficult to live in something that’s being renovated.” Will you earn back the upfront costs? Before opting to remodel or sell, try to determine what return on investment you’ll see on either option. So says Brian Davis, who has bought, renovated, leased, managed and sold many homes and is director of education for Spark Rental. If upgrading, “What’s the average return on investment for the renovations you’re considering?” he asks. Most home upgrades do not pay for themselves in the form of a higher eventual sale price. Some renovations manage to recover 80 to 90 percent of their costs, while others barely cover half their expenses. If you’re thinking of listing your current home and buying another one somewhere else, ask yourself whether you’ll be in the new place long enough to recoup the costs of taking out a new mortgage and moving. Davis says it has traditionally taken seven years to earn back those upfront costs. Would you be ‘over-improving’? Weighing against renovation is the risk you’ll “over-improve” your home compared with others on the block. An over-improved home won’t sell for as much in its location as it would in a neighborhood with similar houses, says Kevin Lawton, a real estate agent at Coldwell Banker Schiavone & Associates in Yardville, New Jersey. “When you are in a neighborhood that has starter homes and smaller homes, adding a large addition or doing an extensive renovation may not yield the return one would expect,” he says. With one of Lawton’s listings, sellers had added a large, handsome fifth bedroom suite to the first floor. Buyers passed on the house for smaller ones in the same development, and the house lingered unsold even after the sellers chopped $30,000 off the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TIME VALUE OF MONEY

What is the Time Value of Money? The time value of money (TVM) is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. TVM is also sometimes referred to as present discounted value. Understanding The Time Value Of Money BREAKING DOWN Time Value of Money - TVM The time value of money draws from the idea that rational investors prefer to receive money today rather than the same amount of money in the future because of money's potential to grow in value over a given period of time. For example, money deposited into a savings account earns a certain interest rate, and is therefore said to be compounding in value. Further illustrating the rational investor's preference, assume you have the option to choose between receiving $10,000 now versus $10,000 in two years. It's reasonable to assume most people would choose the first option. Despite the equal value at time of disbursement, receiving the $10,000 today has more value and utility to the beneficiary than receiving it in the future due to the opportunity costs associated with the wait. Such opportunity costs could include the potential gain on interest were that money received today and held in a savings account for two years. Basic Time Value of Money Formula Depending on the exact situation in question, the TVM formula may change slightly. For example, in the case of annuity or perpetuity payments, the generalized formula has additional or less factors. But in general, the most fundamental TVM formula takes into account the following variables: FV = Future value of money PV = Present value of money i = interest rate n = number of compounding periods per year t = number of years Based on these variables, the formula for TVM is: FV = PV x [ 1 + (i / n) ] (n x t) Time Value of Money Example Assume a sum of $10,000 is invested for one year at 10% interest. The future value of that money is: FV = $10,000 x (1 + (10% / 1) ^ (1 x 1) = $11,000 The formula can also be rearranged to find the value of the future sum in present day dollars. For example, the value of $5,000 one year from today, compounded at 7% interest, is: PV = $5,000 / (1 + (7% / 1) ^ (1 x 1) = $4,673 Effect of Compounding Periods on Future Value The number of compounding periods can have a drastic effect on the TVM calculations. Taking the $10,000 example above, if the number of compounding periods is increased to quarterly, monthly or daily, the ending future value calculations are: Quarterly Compounding: FV = $10,000 x (1 + (10% / 4) ^ (4 x 1) = $11,038 Monthly Compounding: FV = $10,000 x (1 + (10% / 12) ^ (12 x 1) = $11,047 Daily Compounding: FV = $10,000 x (1 + (10% / 365) ^ (365 x 1) = $11,052 This shows TVM depends not only on interest rate and time horizon, but also on how many times the compounding calculations are computed each year. Continuous Compounding Continuous compounding is the process of calculating interest and reinvesting it into an account's balance over a theoretically infinite number of periods. Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. Cumulative Interest Cumulative interest is the sum of all interest payments made on a loan over a certain time period. Future Value - FV Future value (FV) is the value of a current asset at a date to come based on an assumed rate of growth over time. How the Time-Weighted Rate of Return Measures Your Investment Gains The time-weighted rate of return (TWR) measures the rate of return of a portfolio by eliminating the distorting effects of changes in cash flows. Return on Market Value of Equity - ROME Return on market value of equity (ROME) is a measure used to identify companies that generate positive returns on book value and trade at low

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE AND POLITICS

REAL ESTATE AND POLITICS Whether or not the average homeowner realizes it, politics is the most important factor influencing the price of real estate, affecting the state of the economy, the level of interest rates, the nature of demographics, and a host of other variables that ultimately determine a property’s value. Politics is inextricably linked with all these issues, impacting such things as the level of employment, the cost of borrowing, the direction of immigration, and degree of consumer confidence. Given the partisan nature of the U.S. political system, and the need to produce an economic recovery since 2009, the policies that have been adopted by the Congress since then have largely been oriented toward maintaining a balance between limited resources and a rising tide of needs. For example, America’s crumbling infrastructure requires that difficult choices to be made regarding whether a bridge gets fixed at the expense of, say, additional funds for the National Flood Insurance Program - which impacts the price of owning real estate. The same is true at a state and local level. Does a state legislature authorize funds to repave an interstate or is the priority to maintain a school lunch program? Does a city legislature approve funds to improve a public community center at the expense of an expanded police force? Such examples have an impact on real estate because they effect the desirability of neighborhoods. They also serve to emphasize how little influence an individual homeowner may have on how those decisions are made - yet it is the homeowner that may pay the price for those decisions years down the road. Politicians appear to be more and more focused on getting elected, toeing the party line, and getting reelected, often resulting in gridlock and getting little or nothing done. Lost in the process is what may matter most to individual constituents - such as homeowners. With fewer funds available for ‘discretionary spending’, more often than not, public facilities aren’t getting a facelift and local streets aren’t getting repaved. The collective belt tightening that has prevailed since 2009 has prompted many buyers and sellers of real estate to take into account a host of considerations they may not have had to reflect upon prior to 2009. Some things homeowners may have been able to take for granted in the not so distant past - such as declining property taxes and mill rates - are now little more than fond memories. Today, the norm appears to be higher taxes, a lower range and quality of public services, and generally higher costs. While great progress has been made in addressing foreclosures and serious delinquencies since 2009, they remain a problem. According to CoreLogic, as of July 2014, nearly 6% of the real estate market in New Jersey consists of foreclosures, and more than 9% of homeowners are seriously delinquent in their payments in both Florida and New Jersey. The northeast leads the country in foreclosures, with Connecticut, Maine, New Jersey, and New York accounting for four of the top six states with lingering high rates of foreclosure. There remains a lot of pain out there, although we hear less about it these days. The political process has served to exacerbate that pain through a combination of inactivity, ineffectiveness, and inefficiency. As we approach the mid-term elections, many homeowners are asking whether the election of a new president will make a difference in the absence of a change in the way Congress goes about its business. And what is the likelihood that that will change any time soon? Moreover, would a new president or a change in the composition of Congress result in either a change or elimination of the recently created Consumer Financial Protection Bureau, which is the first financial regulator intended to protect consumers from abuse, fraud and misrepresentation on the part of mortgage and financial product providers? If the CFPB were kept in place, would it operate with less independence or autonomy in the future? What impact would that have on the lending landscape in the future, and would borrowers still feel secure taking out a mortgage? Regardless of who becomes President in 2016, or what the composition of Congress may be, hard choices will continue to need to be made about a whole range of issues, such as how much funding should be allocated to subsidize mortgages or support affordable housing. The outcome of the election could well impact the price of a mortgage, as it is clear that historically low interest rates cannot stay that way forever. When the wheels do come off the cart, rates could rise swiftly. The best advice in the near and medium-term for existing and prospective homeowners is not to expect too much from the politicians in Congress, the state house, or city hall. The ongoing economic recovery does not provide them with much leverage in terms of allocation of funds, nor does it appear they have much incentive to rattle their own cage. Today, and for the foreseeable future, the term ‘buyer beware’ has new resonance that will remain a challenge for us

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FORECED VS. NATURAL REAL ESTATE APPRECIATION

  FORCED VS. NATURAL REAL ESTATE APPRECIATION Real estate appreciation is far from being a new concept when it comes to real estate investing. Moreover, many real estate investors choose real estate for that very reason. The easiest way to describe the concept is by saying that it is the increase in the property value. So, in other words, that is the increase in the property price over time. However, there are two types that every real estate investor must know about: natural appreciation and forced appreciation. Even though both concepts share the same end goal (increasing the value of an investment property), they are different in other aspects. So, without any further introduction, let us get to the core of this subject. Related: Cash Flow vs. Appreciation: What Should Drive Your Real Estate Investment Decision? What is natural appreciation vs. forced appreciation in real estate investing? Natural appreciation is a very simple concept. It is simply the rise in an investment property’s future value over time. So basically, you buy a rental property and hold on to it as long as you can and then sell it for more than what you’ve purchased it for. An important thing to note is that it’s called natural appreciation. This means that you have almost no control over it. On the other hand, forced appreciation is when you take part in increasing the property’s present value. You could achieve this through many different methods. In fact, combining multiple methods sure does increase the property price. However, it is something you want to plan carefully in order to mitigate any losses. After all, your ultimate goal is making money in real estate investing and not losing it. How to achieve natural appreciation vs. forced appreciation in real estate investing I know we said before that you have no intervention with the natural appreciation process. However, there is a way you could achieve that in real estate investing. But first, let’s talk about the contributing factors that you have no say in. In most cases, the real estate market is what determines whether investment properties experience an increase or a decrease in value. The two main reasons for natural appreciation would be 1) The rental demand is high while the supply for rental properties remains as is 2) The changes in the rates of interest and inflation have a direct impact on real estate investing. So, you see why we say you have no control over it as the real estate investor. On the contrary, forced appreciation is something real estate investors can control. The increase in property price, in this case, is dependant on investors’ actions that contribute to the present value of the income property. One way to do it is by increasing the rental income. Of course, you can’t just come to your tenants and tell them “Hey, you are going to pay me $2000 instead of $1500 starting next month.” Instead, you can come up with strategies that help boost your rental income. You can add services, vending machines, have a pet policy that charges extra and so on. If you manage to do so, it will increase your net operating income. This means that it will increase your return on investment rate as well. Typically, an increase of $1 to the NOI means an increase of $8-10 to your property price. How is natural appreciation connected to forced appreciation? As we have stated before, you have no control over natural appreciation and only control forced appreciation. But, there is great news for you. Forced appreciation leads to natural appreciation but not the other way around. If you manage to increase the rental income and therefore the return on investment of your income properties, guess what? Your property’s future value automatically increases. This means that you do have a say in natural appreciation as long as you manage to successfully force the appreciation of your real estate properties. However, before you get to that, you need to go through the analysis process which is our next topic. The analysis process There is no way for you to succeed in real estate investing without the analysis process. You see, buying an investment property is when the process of making money starts. Therefore, there are two types of analysis you should pay close attention to 1) The investment property analysis and 2) The comparative market analysis. The investment property analysis is what deals with the return on investment. As the owner of real estate properties, you want to make sure that they have the potential for a high rate of return. This has a direct effect on both natural and forced appreciation as we explained earlier. The best real estate investments have higher rates of return that eventually lead to real estate appreciation in one form or another. The comparative market analysis, on the other hand, is when you perform neighborhood analysis and compare your investment property to other similar ones within the same location. So, for the sake of selling an investment property at a higher price, you want to make sure that the location you pick promises high rates of appreciation. The only way to determine that potential is by looking at similar properties that have been sold within the last 6 months in that area. This is a great indicator of appreciation rates that a real estate investor can rely on. Real estate investing strategies that complement natural and forced appreciation The most common real estate investing strategy for natural appreciation is to buy and hold. Basically, it starts with buying property, holding on to it, and then selling the property for a higher price. Of course, rental properties go under the same strategy. As long as you are holding on to the property, you can rent it out and benefit in the short-run as well. As for forced appreciation, fix-and-flip is the most common way to achieve that. Many real estate investors buy properties that are in a distressed situation for cheap. After that, they proceed with the renovation which automatically leads to forced appreciation. This increases the property value instantly and once they are done, they can sell it for more, covering the renovation cost in addition to making a profit. If you are wondering how to buy properties for below market value, foreclosures and short-sales are your best options. These are typically sold in an “as is” condition and that is why they are cheap. You could start by finding the best real estate deals on listing websites.   HTTPS://FSBOMIDWEST.COM 816-545-9708

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A REVOCABLE LIVING TRUST?

WHAT IS A REVOCABLE LIVING TRUST?WHAT IS A REVOCABLE LIVING TRUST? - A revocable living trust is a popular estate planning tool that you can use to determine who will get your property when you die. Most living trusts are “revocable” because you can change them as your circumstances or wishes change. Revocable living trusts are “living” because you make them during your lifetime. Lawyers sometimes call this “inter vivos.” Revocable Living Trusts Avoid Probate Most people use living trusts to avoid probate. Probate is the court-supervised process of wrapping up a person’s estate. Probate can be expensive, time consuming, and is often more of a burden than a help. Property left through a living trust can pass to beneficiaries without probate. The Trust Document A living trust document is a written document, signed by the trust maker and a notary public. The document must list the property in the trust, name a trustee, and name who gets the property when the trust maker dies. The trustee is the person who will take care of the property. While the trust maker is alive, the trustee is usually the trust maker and then a successor trustee takes over after the trust maker’s death. Transferring Property Into the Trust After the trust document is made, the trust maker must transfer any property he or she wants covered by the trust into the trust. For many items, this requires simply including a list of property with the trust document. However, titled property (like real estate) must be retitled in the name of the trust. This is usually not complicated or difficult, but it must be done correctly or the titled property could end up in probate. Revocable Living Trusts v. Wills With both wills and revocable living trusts you can: name beneficiaries for property leave property to young children, and revise your document as your circumstances or wishes change. With a trust, not a will, you can: avoid probate reduce the chance of a court dispute over your estate avoid a conservatorship, and keep your document private after death. With a will, not a trust, you can: name guardians for children name managers for children’s property name an executor, and instruct how debts or taxes should be

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE INVESTMENT – WHEN IS A GOOD TIME TO INVEST IN REAL ESTATE?

REAL ESTATE INVESTMENT. REAL ESTATE INVESTING - An old Hebrew proverb that still offers value in our modern-day lives. It’s that exponential self-fulfillment journey that we all must take to end up realizing that we must invest in real estate. Sooner or later, you will understand the value of real estate investing. However, real estate investing wasn’t made for everyone, just like stock market trading wasn’t made for everyone either. Is real estate a good investment for you as a youngster in 2018? To answer that question yourself, you must assess what your needs and expectations of an investment property are. All things considered, many investors in the real estate world have started young as they discovered the appreciating value of real estate. So, here are a few questions that can help you determine if real estate is the right investment path for you: Is real estate a good investment in your early twenties? Most adults, while in their early twenties, just got out of college and are entering the professional world. Subsequently, they start to experience a stable income and for the first time in their lives, they can think big. However, many fall short of expectations as most don’t know how to manage money properly and, most importantly, they don’t know the importance of investing. Most of them don’t even come close to asking themselves, “Is real estate a good investment?” For young investors, the ability to pay off a mortgage soon is a key determinant of an investment property’s success. You must assess what you can afford and act upon it. Young investors must know that an investment property is not meant to be a dream home. In the end, it all comes down to the functionality and practicality of your real estate investment. A few points to consider when real estate investing at an early age: Come up with a long-term plan A long-term plan for real estate investing is crucial. In fact, having a vision is what keeps you from straying too far from a certain path. Additionally, young real estate investors must be aware that you can’t reap the benefits of real estate investing by tomorrow. Time is your friend and it’s what paves the road to your future financial security through rental income. Educate yourself through those who’ve done it Simply put, by learning from the mistakes of expert real estate investors, you can avoid them at a fraction of the cost. By doing so, you can identify unexplored market opportunities and establish the right real estate investment strategy for you. Related: Learn from the Best Real Estate Investing Books. Save This is the same advice that your parent or grandfather kept telling you. It stays in the back of your mind, but you don’t acknowledge it. You know it’s true. Always put aside a portion of your income. What’s even better than saving? Have a rainy-day fund in case of emergencies to make sure not to resort to debt if an investment property needs it. This is crucial advice especially for those looking for how to start a real estate business. Be responsible with your credit This is a must for wanna-be real estate investors, why? Well, if you wish to take a mortgage and you have a terrible credit score, chances are you’re going to get denied that mortgage or even worse, get high interest rates that you forcefully have to accept because you simply don’t have a choice. Is real estate a good investment for you if you can’t afford what you want? There are two ways to approach this. You can either wait until you can afford what you want to buy or adjust your expectations and invest in what you can afford. The second option is always more recommended, as buying an investment property and waiting is far better than waiting to buy an investment property. Additionally, there are many fields that you can invest in with real estate without owning a property yourself. Let’s take Real Estate Investment Trusts as an example. With REITs, you can pool your cash and invest in them for a certain profit. What happens is that your base savings are getting bigger and bigger instead of sitting in a bank account meaninglessly. Another lucrative option for you is real estate wholesaling. What happens in real estate wholesaling is you, the real estate investor, contract an undervalued property, and in return, you find an interested buyer for the property, and voila! You make your money off the price difference. If you’re limited on cash and not sure where to invest, both wholesaling and REITs are considered great intros on how to make money in real estate for any beginner real estate investor, especially the young entrepreneurial type! The question remains not, “Is real estate a good investment for you?” But, “What real estate investment strategy is right for you?” Is real estate a good investment if you’re illiterate with real estate? If you consider real estate investing to be a jungle you can’t navigate through, there are multiple options for you! Partner up with someone in the field. Or even better, read about real estate. The more you read, the more you’ll know. With today’s ever-growing technology, you can find anything you need online through a simple Google search. In addition to that, inexperienced real estate investors have the option to utilize the technology used by expert investors. This plays a major role in guiding you all the way to a destination of owning income producing assets. One major player in the field is conducting a real estate market analysis through a proper investment property calculator. You might say, “I don’t need that.” However, sooner or later, you’ll resort to using it to emphasize the profitability of your investments. In any case, an investment property calculator can tell you all the real estate analytics you need to determine how lucrative of a deal you’re getting before diving head first. Additionally, you can find the real estate comps associated with your property to better understand the nature of any real estate investment in the US housing market. Mashvisor offers a top-of-the-line investment property calculator with irreplaceable qualities to get you from A-Z with your future real estate investment properties. Is real estate a good investment for you now? “The best time to buy a home is always five years ago.” – Ray Brown. Be that as it may, you should always find opportunities to invest whether in residential real estate or even commercial real estate. Always follow the footsteps of expert investors and invest in real estate. What good is it keeping a bunch of green under your mattress? Invest your hard-earned cash in an investment field that can protect your value until the last cockroach

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

ESTOPPEL

Estoppel is a common law doctrine which, when it applies, prevents a litigant from denying the truth of what was said or done. The doctrine of estoppel by deed (also known as after-acquired title) is a particular estoppel doctrine in the context of real property transfers. Under the doctrine, the grantor of a deed (generally the seller of a piece of real property) is estopped (barred) from denying the truth of the deed. The doctrine may only be invoked in a suit arising out of the deed, or involving a particular right arising out of the deed. While rooted in warranty deeds, estoppel by deed has been extended to affect quitclaim deeds if the deed represents that the grantor actually had

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EASEMENTS

An easement is a property right that gives its holder an interest in land that’s owned by someone else. It’s common for people to lack a clear understanding of easements and the numerous legal problems that can arise in their creation, interpretation, and implementation. Luckily, you’ve come to the right place. This article will provide some basic information about easements including how easements are created and transferred. In this article you can also find out about the rights and remedies provided by easements, and an overview of the legal issues consider when it comes to easements. Easements at a Glance An easement is a “nonpossessory” property interest that allows the holder of the easement to use property that he or she does not own or possess. An easement doesn’t allow the easement holder to occupy the land or to exclude others from the land, unless they interfere with the easement holder’s use. In contrast, the possessor of the land may continue to use the easement and may exclude everyone except the easement holder from the land. Land affected or “burdened” by an easement is called a “servient estate,” while the land or person benefited by the easement is known as the “dominant estate.” If the easement benefits a particular piece of land, it’s said to be “appurtenant” to the land. If the easement only benefits an individual personally, not as an owner of a particular piece of land, the easement is termed “in gross.” Most easements are affirmative, which means that they authorize use of another’s land. Less common are negative easements, which usually involve preserving a person’s access to light or view by limiting what can be done on neighboring or nearby property. Creation of an Easement Easements are usually created by conveyance in a deed, or some other written document such as a will or contract. Creating an easement requires the same formalities as the transferring or creating of other interests in land, which typically requires: a written instrument, a signature, and proper delivery of the document. In limited circumstances, a court will create an easement by implying its existence based on the circumstances. Two common easements created by implication are easements of necessity and easements implied from quasi-easements. Easements of necessity are typically implied to provide access to a landlocked piece of property. Easements implied from quasi-easements are based on a landowner’s prior utilization of part of his or her property for the benefit of another portion of his land. Other methods of establishing easements include prescriptive use (the routine, adverse use of another’s land), estoppel, custom, public trust, and condemnation. Rights and Remedies Under an Easement As a general rule, an easement holder has a right to do “whatever is reasonably convenient or necessary in order to enjoy fully the purposes for which the easement was granted,” as long as he or she does not place an unreasonable burden on the servient land. Conversely, the owner of the servient land may make any use of that land that does not unduly interfere with the easement holder’s use of the easement. What constitutes an undue burden depends upon the facts of each individual situation. The concept of reasonableness includes a consideration of changes in the surrounding area, as well as technological developments. If a court determines that a servient estate is unduly burdened by an unreasonable use of the easement, the servient estate holder has several potential legal remedies. These include court orders restricting the dominant owner to an appropriate enjoyment of the easement, monetary damages when the easement holder exceeds the scope of his or her rights and injures the servient estate, and in some cases extinguishment of the easement. Likewise, remedies exist for interference by the servient owner. Interference with an easement is a form of trespass, and courts frequently order the removal of an obstruction to an easement. If interference with an easement causes diminution in the value of the dominant estate, courts may also award compensatory damages to the easement holder. Transferability In general, an easement appurtenant is transferred with the dominant property even if this is not mentioned in the transferring document. But, the document transferring the dominant estate may expressly provide that the easement shall not pass with the land. Because easements in gross are treated as a right of personal enjoyment for the original holder, they are generally not transferable. However, several states have enacted statutes designed to facilitate the transfer of easements in gross. The transfer of easements in gross for commercial uses such as telephones, pipelines, transmission lines, and railroads is often permitted. Other Legal Issues to Consider Courts generally assume easements are created to last forever, unless otherwise indicated in the document creating the easement. Despite this, an individual granting an easement should avoid any potential legal or interpretive problem by expressly providing that the easement is permanent. Although permanent easements are the norm, they can be terminated in a number of ways. Easements of limited duration are commonly used to provide temporary access to a dominant estate pending the completion of construction work. An easement may also be terminated when an individual owning the dominant estate purchases the servient estate, or when the holder of an easement releases his or her right in the easement (in writing) to the owner of the servient estate. Abandonment of an easement can also extinguish the interest, but as a general rule just not using an easement doesn’t constitute abandonment. Under some circumstances, misuse or the sale of a servient estate may terminate an easement. Finally, condemnation of an easement by a public authority, or condemnation of the servient estate for a purpose that conflicts with the easement, terminates an existing

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A NON-PROFIT?

When you think of a "nonprofit" what do you think of? Most likely, you think of a group making a difference in your community. Maybe you are thinking of a large organization, such as Big Brothers Big Sisters or Make-a-Wish, or maybe you think about a local animal shelter or ...... Nonprofits by Type community theatre. These are groups that are tax-exempt under Internal Revenue Code Section 501(c)(3) as "public charities" because they are formed to provide "public benefit." Community foundations are also part of this group (and so are private foundations, although tax rules treat them a bit differently than public charities.) There are actually 29 types of organizations that are tax-exempt under Section 501(c), including chambers of commerce and other business leagues, exempt under 501(c)(6), and state-chartered credit unions, which are tax-exempt under Section 501(c)(14). These organizations are exempt from certain taxes because of the contributions they make in the community. However, only 501(c)(3) groups will provide donors with a tax-deduction for their contribution. Nonprofits are further classified by the National Taxonomy of Exempt Entities (NTEE), which breaks down 501(c)(3) groups into 10 major categories and a total of more than 600 different sub-categories There are many types of 501(c)(3) nonprofits Even among nonprofits recognized as tax-exempt within section 501(c)(3) there are many different types of nonprofits, focusing on diverse missions. Within section 501(c)(3) there are two primary distinctions: those organized as "private foundations" and those organized as "public charities." Private foundations are diverse too: For example, there are family foundations, private operating foundations, and also corporate foundations. Visit the Foundation Center to learn more about foundations and how they operate. Public charities (what we refer to as "charitable nonprofits," to distinguish them from private foundations) have many different missions. The National Taxonomy of Exempt Entities (NTEE) identifies 645 categories (NTEE classification codes) in eight primary groups: The majority of charitable nonprofits (35.5 percent) are classified as "human service" organizations. These include groups providing food and shelter, assistance in times of disaster, services for children and the elderly, and much more. Other NTEE classifications include arts organizations (9.9 percent), education groups (17.1 percent), nonprofits focused on health - from finding cures, to providing mental health services (13 percent), community and civil rights groups (11.6 percent), religion-related organizations (6.1 percent), environmental and animal protection groups (4.5 percent), and those focused on international development and human rights (2.1

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

RISKS AND REALITIES OF CONTRACT FOR DEEDS

Risks and realities of the contract for deed While contracts for deed offer some advantages over a traditional mortgage, such as speed and simplicity, they can entail distinct risks for buyers and sellers. This article presents basic facts and features of the contract for deed and offers suggestions for minimizing those risks. Because of recent credit tightening, some homebuyers may be less likely to qualify for mortgages than they were just a few years ago. Some financial counselors predict that borrowers with limited options may turn to alternative means of purchasing a home. One such alternative is the contract for deed. In a contract for deed, the purchase of property is financed by the seller rather than a third-party lender such as a commercial bank or credit union. The arrangement can benefit buyers and sellers by extending credit to homebuyers who would not otherwise qualify for a loan. Indeed, public and nonprofit housing advocacy organizations have used the contract for deed as a tool to help low- and moderate-income households attain homeownership. Nonetheless, this alternative financing mechanism lacks many of the protections afforded borrowers who have traditional mortgages. In addition, these contracts may contain provisions that leave room for abuse and can pose risks and uncertainties for both the buyer and seller. The following article presents basic facts and features of the contract for deed and offers suggestions for minimizing the risks associated with this mortgage substitute. Facts and features A contract for deed, also known as a "bond for deed," "land contract," or "installment land contract," is a transaction in which the seller finances the sale of his or her own property. In a contract for deed sale, the buyer agrees to pay the purchase price of the property in monthly installments. The buyer immediately takes possession of the property, often paying little or nothing down, while the seller retains the legal title to the property until the contract is fulfilled. The buyer has the right of occupancy and, in states like Minnesota, the right to claim a homestead property tax exemption. The buyer finances the purchase with assistance from the seller, who retains a security in the property. The contract for deed is a much faster and less costly transaction to execute than a traditional, purchase-money mortgage. In a typical contract for deed, there are no origination fees, formal applications, or high closing and settlement costs. Another important feature of a contract for deed is that seizure of the property in the event of a default is generally faster and less expensive than seizure in the case of a traditional mortgage. If the buyer defaults on payments in a typical contract for deed, the seller may cancel the contract, resume possession of the property, and keep previous installments paid by the buyer as liquidated damages. Under these circumstances, the seller can reclaim the property without a foreclosure sale or judicial action. However, laws governing the contract-cancellation process differ from jurisdiction to jurisdiction and the outcome may vary within any one state, depending on the contract terms and the facts of the specific case. Because the buyer in a contract for deed does not have the same safeguards as those afforded a mortgagor in a purchase-money mortgage, the contract for deed may appear to be essentially a rent-to-own arrangement. However, in a typical contract for deed, the buyer becomes responsible for the obligations of a mortgagor in possession, such as maintaining the property and paying property taxes and casualty insurance. In addition, unless prohibited by the contract, either party may sell his or her interest in the contract. Speed, simplicity appeal to buyers Homebuyers may be attracted to a contract for deed purchase for several reasons. This method may be especially appealing to homebuyers who do not qualify for a mortgage, such as people who work cash jobs and are therefore unable to prove their ability to make payments. Since the contract for deed process is significantly shorter than the mortgage-approval process, it may attract buyers who face time constraints or have limited options, such as people who are losing their homes to foreclosure. First-time homebuyers who lack experience in the market or individuals who are wary of traditional financial organizations may also choose a contract for deed because of the relative simplicity of the buying process. Contracts for deed are a more popular financing alternative among minority homebuyers, most notably Hispanics. According to figures from recent American Housing Surveys, while only 5 percent of all owner-occupied households in the U.S. had contracts for deed in 2005, 9.5 percent of Hispanic owner-occupied households and 7.1 percent of black owner-occupied households across the country used them.1/ (For more figures on the use of contracts for deed, see the table below.) Though contracts for deed are sometimes referred to as the "poor man's mortgage,"2/ American Housing Survey results indicate that only 3.9 percent of U.S. households below the poverty line used them in 2005. However, it is difficult to know exactly how prevalent contracts for deed are, because the nature of these arrangements allows the buyer and seller a degree of anonymity. Despite laws in some states that require the buyers or sellers in all contracts for deed to record the sale in the office of the county recorder or registrar of titles within a specified time period, the sales often go unrecorded due to a lack of financial and legal sophistication on the part of both parties involved in the agreement. Historical objections Before the rise of subprime lending in the 1990s, many buyers who were unable to qualify for traditional financing resorted to contracts for deed. Indeed, for most of the last century, the contract for deed was frequently used as an alternative to a mortgage or deed trust. Today, routine use of contracts for deed persists in some parts of the country. For example, in west central Minnesota, anecdotal information suggests that contracts for deed are a commonly used alternative to mortgages. Still, some financial counselors and property law scholars regard the contract for deed as a "legal dinosaur"3/ or an "anomaly,"4/ and even call for its demise. They assert that the contract for deed has no place in modern property financing, offers no real benefits over the mortgage, and leaves both parties vulnerable to risk and uncertainty. One major objection to the contract for deed is that it is closely associated with a form of predatory lending that was prevalent from the late 1980s through the 1990s. During this period, some neighborhoods—including those in North Minneapolis—experienced a predatory lending scheme known as equity stripping. In an equity-stripping scheme, an investor finds a homeowner facing foreclosure and approaches him or her with an offer to buy the home. After purchasing the home, the investor pays off the debt, sells the home back to the original owner on a contract for deed, and gains the equity from the transaction. Fortunately, these equity-stripping scams have faded from the scene in recent years—largely because homeowners facing foreclosure today have little to no equity for unscrupulous investors to strip. Another objection to contracts for deed, apart from their association with nefarious equity-stripping scams, is that they have a reputation for offering little legal protection to buyers. Despite gaining home repair and maintenance responsibilities, buyers have limited ownership rights and control over their properties while they make payments to sellers. Buyers gain no rights of redemption through the transaction. Until several decades ago, U.S. courts routinely enforced the forfeiture clauses of contracts for deed in the event of the buyer's default. For example, if a homebuyer missed a single payment 15 years into a 20-year contract for deed, the seller could cancel the contract and retain the title and all the previous payments, while the buyer would suffer a substantial loss. However, such extreme cases are less common today. While a few courts enforce forfeiture provisions as written, most have become more sympathetic to complaints brought by the defaulting buyer, especially in circumstances where the buyer has already paid a significant portion of the purchase price. Courts today often view the contract for deed as analogous to the mortgage and, consequently, extend mortgagor's protections to the buyer in cases of default. The risks for buyers Despite favorable changes in the legal enforcement of forfeitures, contracts for deed pose distinct risks for buyers. One major risk stems from the short time period required to cancel the contract in the event of default. For example, in Minnesota, when a buyer falls behind on payments, the seller can file a Notice of Cancellation of Contract for Deed with the county and serve the buyer with the notice. The buyer has only 60 days from the date of the filing to address the items of default and pay the allowable attorney fees to "reinstate" the contract. This is a short time span in comparison to the six months or more afforded mortgagors who face foreclosure. As a result, a defaulting contract for deed buyer has a much narrower window of time to find a new home and is likely to have limited housing options. Another major risk for the buyer is the balloon payment. Unlike most traditional mortgages, the majority of contracts for deed are not fully amortized. Instead, the contract is most frequently structured to require monthly payments for a few years, followed by a "balloon payment" that completes payment on the house. To make this balloon payment, the buyer will almost inevitably need to obtain a traditional mortgage. If a buyer is unable to qualify for a mortgage at the time the balloon payment is due, he or she is likely to face cancellation of the contract. Some buyers enter into contracts for deed with the hope of repairing their credit. They expect to improve their credit profile during the first part of the contract period and then qualify for a loan at the time the balloon payment is due. However, according to Dan Williams of Lutheran Social Services in Duluth, Minn., a contract for deed often does not improve the credit of the buyer because individual sellers typically do not report to credit agencies. The buyer may attempt to use a letter from the seller stating that he or she makes the contract payments on time, but unfortunately, most lenders do not honor such a letter. Williams warns that unexpected home repair costs may also pose a risk to buyers in a contract for deed. While this risk also applies to buyers who purchase homes through conventional mortgages, it may be greater in the case of homes purchased through contracts for deed, because a seller can execute a contract for deed with limited disclosure about the condition of the property. Minneapolis-based attorney Larry Wertheim explains that in a third-party financed sale, the lender's stringent requirements for title examination, title insurance, and appraisal provide the collateral advantage of disclosure for the buyer. Unless the buyer in a contract for deed has legal assistance or is aware of the need for appraisal and title examination, the transaction may not include these safeguards. In addition, since many homebuyers choose a contract for deed because their weak credit precludes them from obtaining a conventional mortgage, they are unlikely to qualify for loans to finance repairs. Ultimately, defects in the property could increase the chances of the buyer defaulting on payments and losing the home. Another risk for contract for deed buyers stems from the fact that the seller retains the title to the property during the life of the contract. Since the seller retains the title, he or she may continue to encumber the property with mortgages and liens. The seller is only obligated to convey good title when the purchase price is fully paid and it is time to deliver the title. He or she does not need to have good title at the time the contract is executed nor during the life of the contract. Depending on state law and whether the contract is recorded in a timely manner, the buyer's interest may be junior in priority to these pre- and post-contract encumbrances placed on the property by the seller. In addition to the problems described above, no two contracts for deed are alike and, according to Cheryl Peterson of Twin Cities Habitat for Humanity, the terms of the agreement are often unclear. The contract for deed is typically a one- to five-page document that includes the amount of the purchase, the interest rate, the monthly payment, and some verbiage regarding cancellation. The documents often do not include a standard arrangement for beginning the cancellation process. This lack of clarity in contracts for deed creates difficulties for financial counselors who give advice to buyers facing forfeiture. According to Peterson, "You can't say, 'If you've seen ten contracts for deed, you've seen them all.' It doesn't make you an expert, because the next ten will all be different." A tool for promoting homeownership While the contract for deed may entail a litany of problems in the private market, this alternative financing device has proven to be a promising tool for the public and nonprofit sectors. Some housing funders and developers are using contracts for deed as a means of promoting homeownership for low- to moderate-income households. In particular, Minnesota Housing's Minnesota Urban and Rural Homesteading Program (MURL) has utilized contracts for deed as an effective tool to assist hundreds of Minnesotans in achieving sustainable homeownership while stabilizing declining neighborhoods.5/ MURL allocates funds to local administrators to rehabilitate deteriorating single-family housing. The rehabilitated homes are then sold to at-risk homebuyers on an interest-free contract for deed. The program defines at-risk homebuyers as those who are "homeless, receiving public assistance or otherwise lacking the ability to meet mortgage underwriting standards for traditional financing."6/ The MURL contract for deed requires homebuyers to make a monthly payment equivalent to 25 percent or more of their gross monthly income. (This is generally a good deal, considering that recipients of Section 8 federal housing assistance pay 30 percent of gross monthly income.) The goal of MURL is to allow homebuyers to eventually refinance or pay off the contract for deed and acquire fee simple title. The affordable monthly payments under the contract for deed allow the homebuyer to repair any outstanding credit issues while reducing the principal balance. Once the balance is reduced to a reasonable level, the homebuyer can refinance into a traditional mortgage. According to a 2008 Annual Report Summary from Minnesota Housing, the MURL portfolio includes 350 homes. Over the past year, the default rate was 7.7 percent and the refinance/contract payoff rate was 2.6 percent. In contrast to the 60-day cancellation period in the private market, MURL includes a generous forbearance policy, designed to help the at-risk homebuyer be successful over the long term. It allows flexibility in cases of unforeseen circumstances that limit the homebuyer's short-term ability to pay (e.g., unexpected health issue, short-term loss of employment). The Family Housing Fund—a nonprofit Twin Cities-based organization—is launching a new program that will also utilize the contract for deed as a tool to create affordable housing opportunities. The new initiative, titled The Bridge to Success Contract for Deed Program, launched in fall 2008. Through this program, the Family Housing Fund made a $500,000 loan to Dayton's Bluff Neighborhood Housing Services (DBNHS) and Greater Metropolitan Housing Corporation (GMHC). These two organizations have a lender commitment—similar to a line of credit—of up to $1 million from a private lender. DBNHS and GMHC will use the funding pools to sell properties on a contract for deed to homebuyers who may not be ready to qualify for a traditional mortgage. The funds from the Family Housing Fund will make up 20 percent of the purchase price, with a balance of 80 percent funded by lenders. This arrangement eliminates the need for private mortgage insurance. Key components of The Bridge to Success Contract for Deed Program are homeownership education and financial counseling to ensure that the buyer is mortgage-ready in three years.7/ Advice from the experts While a contract for deed may have its appeal as an alternative financing device, given the risks involved, buyers and sellers should proceed with caution when entering such an arrangement in the private market. The following advice from the Minnesota Legal Services Coalition stresses that both parties should make an effort to be fully informed. First and foremost, the seller must set forth the terms of the contract in a purchase agreement. It is important that both parties fully understand the provisions of the contract, because once the purchase agreement has been signed, the options available to both the seller and buyer are limited. The buyer should know whether he or she is responsible for property tax payments and insurance and whether the contract for deed includes a balloon payment. If it does include one, the buyer should be certain that he or she would be eligible for a mortgage to cover the payment when it comes due. The buyer should also make sure that the seller is the true owner of the house by checking with the county recorder's office to see who is listed as the registered owner. If the seller still has a mortgage encumbering the property or is responsible for paying the taxes or insurance, the buyer should contact the seller's mortgage company prior to signing the contract to determine whether the seller is current on his or her payments. Some "scam" sellers will retain a buyer's payments and not apply them to the mortgage. If the seller defaults on the mortgage in this scenario and the home is foreclosed, the buyer will lose the house and all the paid installments. The buyer should ask the seller for a Truth in Sale of Housing report to determine the condition of the house. This report is required in Minneapolis and St. Paul and some other cities. In cities where it is not required, the seller should find his or her own inspector to assess the condition of the home. Finally, according to Wertheim, once the contract for deed is executed, the buyer should record the contract immediately with the county recorder's office or the registrar of titles. While statutes requiring this registration are rarely enforced, recording the contract will help prove the buyer's possession of the property and protect him or her from post-contract encumbrances placed on the property by the seller. Ensuring a positive outcome It is important to note that despite their risks and sometimes negative associations, contracts for deed are not intrinsically bad. When used wisely, they can be a good fit for some consumers. Contracts for deed offer a swift, streamlined option for people who do not qualify for traditional mortgages or would prefer not to deal with mortgage lenders. When administered by public agencies or nonprofit housing organizations, contracts for deed can be a tool for building credit, promoting homeownership, and stabilizing neighborhoods. To protect their interests in contracts for deed, sellers and buyers must do their homework, so to speak, by making sure they learn and understand what specific provisions and risks the contracts entail. Buyers in private contracts for deed should take additional steps. These include assessing the condition of the property, confirming that the seller has clear title, and recording the signed contract at the appropriate government office. By being informed and prepared, the buyer and seller in a contract for deed can help ensure a positive outcome for both

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CLOSING A REAL ESTATE DEAL

    Closing a property deal can be a long and stressful exercise that involves lots of steps and procedural formalities. Closing occurs when you sign the papers that make the house yours. But before that fruitful day arrives, a long list of things has to happen. This article provides important guidelines for a property buyer that must be followed during the closing process from the moment your offer is accepted to the moment you get the keys to your new home. 1. Open Escrow Account Escrow is an account held by a third party on behalf of the two principal parties involved in a transaction. Since home sale involves multiple steps which takes time that can span weeks, the best way to mitigate the risk of either the seller or the buyer getting ripped off is to have a neutral third party hold all the money and documents related to the transaction until everything has been settled. Once all procedural formalities are over, the money and documents are moved from the custody of the escrow account to the seller and buyer, thereby guaranteeing a secure transaction. 2. Do a Title Search and Obtain Title Insurance A title search and title insurance provide peace of mind and a legal safeguard so that when you buy a property, no one else can try to claim it as theirs later, be it a spurned relative who was left out of a will or a tax collecting agency which wasn't paid its dues. A title search is an examination of public records to determine and confirm a property's legal ownership, and find out what claims, if any, are on the property. If there are any claims, those may need to be resolved before the buyer gets the property. Title insurance is indemnity insurance that protects the holder from financial loss sustained from defects in a title to a property, and protects both real estate owners and lenders against loss or damage occurring from liens, encumbrances, or defects in the title or actual ownership of a property. 3. Hire an Attorney While getting legal aid is optional, it is always better to get a professional legal opinion on your closing documents. The complex jargon often mentioned in the property documents is difficult to understand even for the well-educated individuals. For an appropriate fee, opinion from an experienced real estate attorney can offer multiple benefits, including hints of any potential problems in the paperwork. 4. Get Pre-Approved for a Mortgage While getting pre-approved for a mortgage is not necessary to close a deal, it can help you close the deal quicker. In turn, being pre-approved can give you more bargaining power when negotiating as it signals to the seller that you have strong financial backing. Getting pre-approved for mortgage also allows you to know the limit up to which you can go for purchasing a property. It helps in saving time and effort while searching for the properties that fit into your budget. 5. Lock Your Interest Rate Interest rates, including those offered on mortgage, can be volatile and subject to change. A 0.25 percent rise in interest rate can significantly increase your repayment amount, repayment tenure or both. It is advisable to lock the interest rate for the loan in advance, instead of being at the mercy of the market fluctuations which can be a big risk if the rates rise before you finalize your property purchase. Pre-approved mortgage offers the facility to offer you a rate lock, which means that you can secure a favorable interest rate for the loan. Though chargeable rates are subject to multiple factors, like applicant’s credit score, geographic region, property and the type of loan applied for, attempts to lock in at favorable rates can be beneficial. 6. Negotiate Procedural Costs Right from an escrow account to real estate attorney, all involved services and entities cost money which can snowball into a big amount. Many such services take advantage of consumers' ignorance by charging high fees. Junk fees, a series of charges that a lender imposes at the closing of a mortgage and is often unexpected by the borrower and not clearly explained by the lender, are a big cost. They include items like administrative fees, application review fees, appraisal review fees, ancillary fees, processing fees and settlement fees. Even fees for legitimate closing services can be inflated. If you're willing to speak up and stand your ground, you can usually get junk fees and other charges eliminated or at least reduced. 7. Complete the Home Inspection Home inspection, a physical examination of the condition of a real estate property, is a necessary step to not only know about any problems with the property, but also get a look and feel of the surroundings. If you find a serious problem with the home during the inspection, you'll have an opportunity to back out of the deal or ask the seller to fix it or pay for you to have it fixed (as long as your purchase offer included a home-inspection contingency). 8. Complete the Pest Inspection A pest inspection is separate from the home inspection and involves a specialist making sure that your home does not have any wood-destroying insects, like termites or carpenter ants. The pest problem can be devastating for properties made primarily of wooden material, and many mortgage companies mandate that even minor pest issues be fixed before you can close the deal. Even a small infestation can spread and become very destructive and expensive to fix. Wood-destroying pests can be eliminated, but you'll want to make sure the issue can be resolved for a cost you find reasonable (or for a cost the seller is willing and able to pay) before you complete the purchase of the home. 9. Renegotiate the Offer Even when your purchase offer has already been accepted, if inspections reveal any problems, you may want to renegotiate the home's purchase price to reflect the cost of any repairs you will need to make. You could also keep the purchase price the same but try to get the seller to pay for repairs. Though you may not have much scope to demand for repairs or a price reduction in case you're purchasing the property "as is," there is no harm in asking. You can also still back out without penalty if a major problem is found that the seller can't or won't fix it. 10. Remove Contingencies If your real estate agent helped you draw up a good purchase offer, it should be contingent on several things which include: Obtaining financing at an interest rate not to exceed a certain percent that you can afford The home inspection not revealing any major problems with the home The seller fully disclosing any known problems with the home The pest inspection not revealing any major infestations or damage to the home The seller completing any agreed-upon repairs As a part of active approval, such contingencies must be removed in writing by certain dates which should also have been stated in your purchase offer. However, in some purchase agreements, contingencies are passively approved (also known as constructive approval), if you don't protest them by their specified deadlines. It therefore becomes important for buyers to understand the approval process and abide by taking necessary actions by the mentioned dates. 11. Track Time-bound Funding Requirements You most likely deposited earnest money when you signed the purchase agreement, which is a deposit made to a seller indicating the buyer's good faith, seriousness and genuine interest in the property transaction. If the buyer backs out, the earnest money goes to the seller as compensation. If the seller backs out, the money is returned to the buyer. To complete your purchase, you'll have to deposit additional funds into escrow. Since the original earnest money deposit is generally applied towards the down payment, it is important to arrange for the various payments required at different times, before the deal is closed. Failure to offer the required money in time can lead to the risk of deal getting cancelled, earnest money going to the seller, and you still being charged for the various services you availed. 12. Final Walkthrough One of the last steps before you sign your closing papers should be to walk through the property one last time. You want to make sure no damage has occurred since your last home inspection, required fixes have been applied by the seller, no new problems are found, and nothing has been removed that is included in the purchase. 13. Understand the Papers Paperwork forms the most critical steps of closing a property deal. Despite there being a heap of papers filled with complex legal terms and jargon, it is highly recommended to read it yourself. In case you don’t understand certain terms or portions, one can look up for explanation on the Internet or consult a real estate attorney. Although you may feel pressured by the people who are waiting for you to sign your papers - like the notary or the mortgage lender - read each page carefully as the fine print will have a major impact on your finances and your life for years to come. In particular, make sure the interest rate is correct and all other agreed terms, like no prepayment penalty, is clearly mentioned. More generally, compare your closing costs to the good faith estimate you were given at the beginning of the process and throw a fit about any fees that may appear off. The Bottom Line Owing to the high costs, property purchase often remains once-in-a-lifetime activity for many individuals. It may seem like the closing process is a lot of complex work, it is worth the time and effort to get things right instead of hurrying up and signing a deal that you don’t understand. Be wary of the pressure created to close the deal fast by the involved agents and entities who are there to help you for their cut, but may not be really responsible for the problems you may face in the long run from a bad

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SPEND YOUR MONEY ON EXPERIENCES NOT POSSESSIONS

Why You Should Spend Your Money On Experiences, Not Things When you work hard every single day and there’s only so much money left after your regular expenses, you have to make certain it’s well spent. Spend your limited funds on what science says will make you happy. The Paradox Of Possessions A 20-year study conducted by Dr. Thomas Gilovich, a psychology professor at Cornell University, reached a powerful and straightforward conclusion: Don’t spend your money on things. The trouble with things is that the happiness they provide fades quickly. There are three critical reasons for this: • We get used to new possessions. What once seemed novel and exciting quickly becomes the norm. • We keep raising the bar. New purchases lead to new expectations. As soon as we get used to a new possession, we look for an even better one. • The Joneses are always lurking nearby. Possessions, by their nature, foster comparisons. We buy a new car and are thrilled with it until a friend buys a better one—and there’s always someone with a better one. “One of the enemies of happiness is adaptation,” Gilovich said. “We buy things to make us happy, and we succeed. But only for a while. New things are exciting to us at first, but then we adapt to them.” The paradox of possessions is that we assume that the happiness we get from buying something will last as long as the thing itself. It seems intuitive that investing in something we can see, hear, and touch on a permanent basis delivers the best value. But it’s wrong. The Power Of Experiences Gilovich and other researchers have found that experiences—as fleeting as they may be—deliver more-lasting happiness than things. Here’s why: Experiences become a part of our identity. We are not our possessions, but we are the accumulation of everything we’ve seen, the things we’ve done, and the places we’ve been. Buying an Apple Watch isn’t going to change who you are; taking a break from work to hike the Appalachian Trail from start to finish most certainly will. “Our experiences are a bigger part of ourselves than our material goods,” said Gilovich. "You can really like your material stuff. You can even think that part of your identity is connected to those things, but nonetheless they remain separate from you. In contrast, your experiences really are part of you. We are the sum total of our experiences." Subscribe To The Forbes Careers Newsletter Sign up here to get top career advice delivered straight to your inbox every week. Comparisons matter little. We don’t compare experiences in the same way that we compare things. In a Harvard study, when people were asked if they’d rather have a high salary that was lower than that of their peers or a low salary that was higher than that of their peers, a lot of them weren’t sure. But when they were asked the same question about the length of a vacation, most people chose a longer vacation, even though it was shorter than that of their peers. It’s hard to quantify the relative value of any two experiences, which makes them that much more enjoyable. Anticipation matters. Gilovich also studied anticipation and found that anticipation of an experience causes excitement and enjoyment, while anticipation of obtaining a possession causes impatience. Experiences are enjoyable from the very first moments of planning, all the way through to the memories you cherish forever. Experiences are fleeting (which is a good thing). Have you ever bought something that wasn’t nearly as cool as you thought it would be? Once you buy it, it’s right there in your face, reminding you of your disappointment. And even if a purchase does meet your expectations, buyer’s remorse can set in: “Sure, it’s cool, but it probably wasn’t worth the money.” We don’t do that with experiences. The very fact that they last for only a short time is part of what makes us value them so much, and that value tends to increase as time passes. Bringing It All Together Gilovich and his colleagues aren’t the only ones who believe that experiences make us happier than things do. Dr. Elizabeth Dunn at the University of British Columbia has also studied the topic, and she attributes the temporary happiness achieved by buying things to what she calls “puddles of pleasure.” In other words, that kind of happiness evaporates quickly and leaves us wanting more. Things may last longer than experiences, but the memories that linger are what matter

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A PARTY WALL?

    Party Wall A partition erected on a property boundary, partly on the land of one owner and partly on the land of another, to provide common support to the structures on both sides of the boundary. Each person owns as much of a party wall as is situated on his or her land. The wall is subject to cross-easements—reciprocal rights of use over the property of another—in favor of each owner for the support of his or her building or for the maintenance of the wall. A party wall can also be owned by adjoining tenants pursuant to a Tenancy in Common, or the wall can belong entirely to one of the adjoining owners, subject to an Easement or a right in the other owner to have it maintained as a dividing wall between the two tenements. Creation A party wall is ordinarily created by a contract between the adjoining owners, by statute, or by prescription. Adjoining Landowners can enter into a contract to build a party wall. The parties can agree that the wall is to be located on land owned entirely by one of them or that it is to stand partly, usually equally, on both parcels. Under a typical arrangement, one party builds the wall and the other contributes to its construction. The parties can also agree that an existing dividing wall is to become a party wall. Statutes authorizing the construction of a party wall by one of two adjoining owners when the line between the properties is vacant embody the Common Law and have been upheld as a constitutionally valid exercise of the Police Power of a state. These statutes are subject to a Strict Construction since they permit the taking and permanent occupation of a portion of land. When a wall between adjoining buildings has been continuously and uninterruptedly used as a party wall by the respective owners for a period of time set forth by statute, a prescriptive right to use the wall arises. A party wall can also be created when the owner of buildings that stand on adjoining lots and share a common wall, which forms a part of each building, conveys the lots to different persons. Each owner acquires title to one-half the wall and an easement for its support as a party wall in the other half. This rule applies even though the deeds are silent concerning the rights of the parties in the wall. The result is the same when one of the lots is retained by the original common owner. Duration A party wall that is constructed without any reference to a time limitation implies permanency. A wall built as a result of an agreement loses its character as a party wall when the parties rescind, or cancel, the agreement. Although the title to one-half of such a party wall, which is jointly owned by adjoining landowners, cannot be waived or abandoned, a party wall easement can be extinguished when the party entitled to it renounces his interest. The easement of support of adjoining buildings by the party wall ends when the wall becomes unfit for its purpose or is so decayed as to need rebuilding from its foundation. When the buildings are accidentally destroyed, the easement ends, even though a portion of the wall, or the whole wall, remains standing. Manner of Use A party wall is for the mutual benefit and convenience of both owners. Each adjoining owner has the right to its full use as a party wall in the improvement and enjoyment of his property. Neither owner can use the wall in a manner that impairs the other's easement or interferes with his or her property rights. An adjoining owner is not entitled to extend the front wall or rear wall of his building beyond the center of the party wall. In addition, an adjoining owner cannot extend the beams of her building beyond the center of the wall. Neither party can attach window shutters, exhaust pipes, anchor rods, or other projections or fixtures over the adjoining premises, even if the projection does not actually damage, or interfere with, the rights of the adjoining owner. An easement does not give either owner a right to construct and maintain a roof or cornice that extends beyond the party wall and over the property of the adjoining owner. By common usage, a party wall has come to mean a solid wall. Unless an agreement exists between the adjoining property owners to the contrary, neither has a right to maintain windows or other openings in the wall unless they are necessary for air and light. A party wall can be used by the adjoining owners for the construction and maintenance of chimney flues and fireplaces. Both parties are entitled to use a flue built into the middle of the wall, although the lower part of it is located wholly in the other owner's half of the wall. Neither owner of a party wall has a right to maintain a sign on the other side of the wall, but either has a right to do so on his or her own side. Destruction and Rebuilding Ordinarily neither of the adjoining owners has the right to destroy or remove a party wall, but if a fire or other casualty causes the wall to become useless to either owner, it can be removed. In a number of states, even though a party wall is sufficient to support existing structures, an adjoining owner can replace it with a stronger wall to support a new structure requiring greater reinforcement. The owner must replace the wall within a reasonable time without damaging the property of the adjoining owner. Either party can replace a party wall that is dangerous to life or property or insufficient for the support of existing buildings. Neither owner has any right to have a dangerous wall bolstered by allowing it to rest upon, or be sustained by, the timbers, walls, or parts of the other's building. No obligation is imposed upon either owner to erect a new party wall to replace a wall that has been destroyed by some accidental cause, even if the foundation of the wall remains firm and sound. When the adjoining buildings are destroyed and the party wall remains standing, neither adjoining owner is obliged to reconstruct her building as it existed. Addition, Alteration, and Repair Unless restricted by a conveyance, transfer, or a party wall agreement, either owner can add to, alter, or repair the wall. In doing so, the owner must not damage the adjoining property or impair the easement to which the owner is entitled. Either party, for example, may increase the height of the wall, provided the increase does not diminish its strength. Similarly either party may underpin the wall and sink the foundation deeper or increase the thickness of the wall by adding to it on his own land. Contribution In some jurisdictions, an adjoining landowner who uses a wall built partly on his or her land by the other adjoining landowner has no duty to contribute to the cost of construction of the wall. If there is no evidence of the conditions under which the wall was built, courts presume that each person owns as much of the wall as is situated on his property and has no obligation to contribute to the other's wall. In some jurisdictions, liability might be imposed by statute. For example, a statute might authorize one of two adjoining landowners to build a wall partly on the adjoining land and require the other landowner to contribute, if and when she used the wall in the construction and support of an adjoining building; until payment would be made, the wall would be owned exclusively by the builder. The obligation to contribute can, of course, be a provision in the contract between adjoining landowners, but the agreement need not be express. It can be implied from the conduct of the parties, although a contract cannot be implied from the mere assent by one owner to the construction of a wall standing equally on the land of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

RECORDING REQUIREMENTS IN MISSOURI

Requirements for Recording Real Estate Documents The Following Documents Do Not Require A Legal Description For Recording. Death Certificates, Power of Attorneys, Wills, DD214, Certificates, and Miscellaneous Documents. The following is a list of specific documents and their requirements for recording. Deeds Deeds Are Documents Showing A Transfer Of Property From One Party To Another. The deed must contain the title and date of the document on the first page. (RSMo 59.310) The document must have the grantor(s) and grantee(s) listed and designated on the first page. (RSMo 59.310) For suggestions on grantor/grantee designations, visit the Missouri Bar Association’s website at http://www.mobar.org/member/grantor.htm. A deed transferring property to another party must have the grantee’s mailing address designated on the first page, as required by law (RSMo 59.330 & 59.310). A deed must have the legal description on the first page, as required by law (RSMo 59.330 & 59.310). A deed must contain the grantor’s signature. If a corporation is signing as the grantor, the corporate seal must be on the document if required by the corporate bylaws. If the notary clause states that the corporate seal is affixed to the document, it must also be included on the deed. The parties signing must have a notary acknowledgement clause on the deed, as required by law (RSMo 486.330 and RSMo 59.330). A notary must sign acknowledging the signatures, as required by law (RSMo 486.275). A notary seal, either a stamped or an impressed seal must be on the deed. If the notary is commissioned in the State of Missouri, the seal must be in black ink, must be at least 8 point type, and must contain the words notary public, notary seal, State of Missouri, and the notary’s name, as required by law (RSMo 486.275). The notary expiration date must be a valid date at the time the deed is signed, as required by law (RSMo 486.285). Any signature on the deed must be typed or printed below the signature, as required by law (RSMo 59.310). Any signature on the deed must be original, or a certified copy is required. At this time, a recorded page size in the State of Missouri is defined as 8 ½ x 11 (RSMo 59.005). A deed must be legible for recording and reproduction and must contain at least 8-point type, as required by law (RSMo 59.310). When the document is recorded, a recording certificate is placed in the top three inches of the first page. If there is not a three inch top margin for the recording certificate on the first page, or the document does not meet all of the standardization requirements as outlined in this website, the Recorder will add a certificate page. When a document does not meet standardization requirements it will become non-standard and a $25.00 non-standard penalty will be charged, in addition to the normal recording fees. (RSMo 59.310) Deeds of Trust Deeds of trust are documents showing an owner of property borrowing money using their real estate as collateral. The deed of trust must contain the title and date of the document on the first page. (RSMo 59.310) The document must have the grantor(s) and grantee(s) listed and designated on the first page. (RSMo 59.310) For suggestions on grantor/grantee designations, visit the Missouri Bar Association’s website at http://www.mobar.org/member/grantor.htm. The deed of trust must have the grantee’s mailing address designated on the first page, as required by law (RSMo 59.330 & 59.310). The amount borrowed is normally listed on the deed of trust as well. A deed of trust must have the legal description on the first page, as required by law (RSMo 59.330 & 59.310). A deed of trust must contain the grantor’s signature. If a corporation is signing as the grantor, the corporate seal must be on the document if required by the corporate bylaws. If the notary clause states that the corporate seal is affixed to the document, it must also be included on the deed of trust. The parties signing must have a notary acknowledgement clause on the deed of trust, as required by law (RSMo 486.330 and RSMo 59.330). A notary must sign acknowledging the signatures, as required by law (RSMo 486.275). A notary seal, either a stamped or an impressed seal must be on the deed of trust. If the notary is commissioned in the State of Missouri, the seal must be in black ink, must be at least 8 point type, and must contain the words notary public, notary seal, State of Missouri, and the notary’s name, as required by law (RSMo 486.275).). The notary expiration date must be a valid date at the time the deed of trust is signed, as required by law (RSMo 486.285). Any signature on the deed of trust must be typed or printed below the signature, as required by law (RSMo 59.310). Any signature on the deed of trust must be original, or a certified copy is required. At this time, a recorded page size in the State of Missouri is defined as 8 ½ x 11 (RSMo 59.005). A deed of trust must be legible for recording and reproduction and must contain at least 8-point type, as required by law (RSMo 59.310). When the document is recorded, a recording certificate is placed in the top three inches of the first page. If there is not a three inch top margin for the recording certificate on the first page, or the document does not meet all of the standardization requirements as outlined in this website, the Recorder will add a certificate page. When a document does not meet standardization requirements it will become non-standard and a $25.00 non-standard penalty will be charged, in addition to the normal recording fees. (RSMo 59.310) Release Deeds Release Deeds are documents showing a partial or a full payment of a deed of trust. If the original deed of trust was recorded prior to January 1, 1986, the original identified note must be presented with the release, as required by law (RSMo 443.060). If the original identified note has been lost or destroyed, an affidavit of lost note signed by the maker and beneficiary must be presented with the release, as required by law (RSMo 443.060). The release must contain the title and date of the document on the first page (RSMo 59.310). The document must have the grantor(s) and grantee(s) listed and designated on the first page. (RSMo 59.310) For suggestions on grantor/grantee designations, visit the Missouri Bar Association’s website at http://www.mobar.org/member/grantor.htm. The original deed of trust book and page must be listed on the first page (RSMo 59.310). The original date of the deed of trust must be listed on the release. A release must have the legal description on the first page, as required by law (RSMo 59.330 & 59.310). A release must contain the grantor’s signature. If a corporation is signing as the grantor, the corporate seal must be on the document if required by the corporate bylaws. If the notary clause states that the corporate seal is affixed to the document, it must also be included on the release. The parties signing must have a notary acknowledgement clause on the release, as required by law (RSMo 486.330 and RSMo 59.330). A notary must sign acknowledging the signatures, as required by law (RSMo 486.275). A notary seal, either a stamped or an impressed seal must be on the release. If the notary is commissioned in the State of Missouri, the seal must be in black ink, must be at least 8 point type, and must contain the words notary public, notary seal, State of Missouri, and the notary’s name, as required by law (RSMo 486.275).). The notary expiration date must be a valid date at the time the release is signed, as required by law (RSMo 486.285). Any signature on the release must be typed or printed below the signature, as required by law (RSMo 59.310). Any signature on the release must be original, or a certified copy is required. At this time, a recorded page size in the State of Missouri is defined as 8 ½ x 11 (RSMo 59.005). A release must be legible for recording and reproduction and must contain at least 8-point type, as required by law (RSMo 59.310). When the document is recorded, a recording certificate is placed in the top three inches of the first page. If there is not a three inch top margin for the recording certificate on the first page, or the document does not meet all of the standardization requirements as outlined in this website, the Recorder will add a certificate page. When a document does not meet standardization requirements it will become non-standard and a $25.00 non-standard penalty will be charged, in addition to the normal recording fees. (RSMo 59.310) Assignment of Deed Of Trust This document shows a lender assigning or selling their interest in a deed of trust to another party. The assignment must contain the title and date of the document on the first page (RSMo 59.310). The document must have the grantor(s) listed on the first page (RSMo 59.310). The document must have the grantor(s) and grantee(s) listed and designated on the first page. (RSMo 59.310) For suggestions on grantor/grantee designations, visit the Missouri Bar Association’s website at http://www.mobar.org/member/grantor.htm. The grantees must be designated on the first page (RSMo 59.310). An assignment of deed of trust must have the grantee’s mailing address designated on the first page, as required by law (RSMo 59.330 & 59.310). The book and page of the deed of trust being assigned should also be listed on the assignment. The assignment must have the legal description on the first page, as required by law (RSMo 59.330 & 59.310). If a corporation is signing as the grantor, the corporate seal must be on the document if required by the corporate bylaws. If the notary clause states that the corporate seal is affixed to the document, it must also be included on the assignment. The parties signing must have a notary acknowledgement clause on the assignment, as required by law (RSMo 486.330 and RSMo 59.330). A notary must sign acknowledging the signatures, as required by law (RSMo 486.275). A notary seal, either a stamped or an impressed seal must be on the assignment If the notary is commissioned in the State of Missouri, the seal must be in black ink, must be at least 8 point type, and must contain the words notary public, notary seal, State of Missouri, and the notary’s name, as required by law (RSMo 486.275).). The notary expiration date must be a valid date at the time the assignment is signed, as required by law (RSMo 486.285). Any signature on the assignment must be typed or printed below the signature, as required by law (RSMo 59.310). Any signature on the assignment must be original, or a certified copy is required. At this time, a recorded page size in the State of Missouri is defined as 8 ½ x 11 (RSMo 59.005). An assignment must be legible for recording and reproduction and must contain at least 8-point type, as required by law (RSMo 59.310). When the document is recorded, a recording certificate is placed in the top three inches of the first page. If there is not a three inch top margin for the recording certificate on the first page, or the document does not meet all of the standardization requirements as outlined in this website, the Recorder will add a certificate page. When a document does not meet standardization requirements it will become non-standard and a $25.00 non-standard penalty will be charged, in addition to the normal recording fees. (RSMo 59.310) Trustee’s Deed Under Foreclosure This document shows that the original deed of trust is being foreclosed on for default of payment. The trustee’s deed under foreclosure must contain the title and date of the document on the first page (RSMo 59.310). If the original deed of trust was recorded prior to January 1, 1986, the original identified note must be presented along with the trustee’s deed under foreclosure, as required by law (RSMo 443.390). The document must have the grantor(s) and grantee(s) listed and designated on the first page. (RSMo 59.310) For suggestions on grantor/grantee designations, visit the Missouri Bar Association’s website at http://www.mobar.org/member/grantor.htm A trustee’s deed under foreclosure must have the grantee’s mailing address designated on the first page, as required by law (RSMo 59.330 & 59.310). The trustee’s deed under foreclosure must contain the original deed of trust book and page being foreclosed on the first page (RSMo 59.310) A trustee’s deed under foreclosure must have the legal description on the first page, as required by law (RSMo 59.330 & 59.310). The trustee must sign the document. The trustee’s signature must have a notary acknowledgement clause on the trustee’s deed under foreclosure, as required by law (RSMo 486.330 and RSMo 59.330). A notary must sign acknowledging the signatures, as required by law (RSMo 486.275). A notary seal, either a stamped or an impressed seal must be on the trustee’s deed under foreclosure. If the notary is commissioned in the State of Missouri, the seal must be in black ink, must be at least 8 point type, and must contain the words notary public, notary seal, State of Missouri, and the notary’s name, as required by law (RSMo 486.275). The notary expiration date must be a valid date at the time the trustee’s deed under foreclosure is signed, as required by law (RSMo 486.285). Any signature on the trustee’s deed under foreclosure must be typed or printed below the signature, as required by law (RSMo 59.310). Any signature on the trustee’s deed under foreclosure must be original, or a certified copy is required. At this time, a recorded page size in the State of Missouri is defined as 8 ½ x 11 (RSMo 59.005). A trustee’s deed under foreclosure must be legible for recording and reproduction and must contain at least 8-point type, as required by law (RSMo 59.310). When the document is recorded, a recording certificate is placed in the top three inches of the first page. If there is not a three inch top margin for the recording certificate on the first page, or the document does not meet all of the standardization requirements as outlined in this website, the Recorder will add a certificate page. When a document does not meet standardization requirements it will become non-standard and a $25.00 non-standard penalty will be charged, in addition to the normal recording fees. (RSMo 59.310). Miscellaneous Documents Any document that does not fit into the above listed categories of documents is considered a miscellaneous document. The document must contain the title and date of the document on the first page (RSMo 59.310). The document must have the grantor(s) and grantee(s) listed and designated on the first page. (RSMo 59.310) For suggestions on grantor/grantee designations, visit the Missouri Bar Association’s website at http://www.mobar.org/member/grantor.htm A legal description may be included on a miscellaneous document. There must be parties signing the document. If a corporation is signing the document, the corporate seal must be on the document if required by the corporate bylaws. If the notary clause states that the corporate seal is affixed to the document, it must also be included on the document. The parties signing must have a notary acknowledgement clause on the document, as required by law (RSMo 486.330 and RSMo 59.330). A notary must sign acknowledging the signatures, as required by law (RSMo 486.275). A notary seal, either a stamped or an impressed seal must be on the document. If the notary is commissioned in the State of Missouri, the seal must be in black ink, must be at least 8 point type, and must contain the words notary public, notary seal, State of Missouri, and the notary’s name, as required by law (RSMo 486.275). The notary expiration date must be a valid date at the time the document is signed, as required by law (RSMo 486.285). Any signature on the document must be typed or printed below the signature, as required by law (RSMo 59.310). Any signature on the document must be original, or a certified copy is required. At this time, a recorded page size in the State of Missouri is defined as 8 ½ x 11 (RSMo 59.005). A document must be legible for recording and reproduction and must contain at least 8-point type, as required by law (RSMo 59.310). When the document is recorded, a recording certificate is placed in the top three inches of the first page. If there is not a three inch top margin for the recording certificate on the first page, or the document does not meet all of the standardization requirements as outlined in this website, the Recorder will add a certificate page. When a document does not meet standardization requirements it will become non-standard and a $25.00 non-standard penalty will be charged, in addition to the normal recording fees. (RSMo 59.310). UCC Filings in the Real Estate Records There will be no dual filing of a UCC and real estate filing in the Recorder of Deeds office after July 1, 2001. To file any fixture filing or one that covers as-extracted collateral or timber in the real estate records under provisions of Revised Article 9 after July 1, 2001, no signature is required on a new approved standard form with required addendum attached. To terminate any filing in the real estate records filed under Former Article 9 or Revised Article 9, under provisions of Revised Article 9 after July 1, 2001, no signature is required on a new approved standard form with required addendum attached. If any form is prepared and presented other than the state approved form, all statutory recording requirements of law will apply. Statutory recordings fee will apply to all real estate related filings. Overpayment of UCC filings in the Real Estate records will not be refunded. Forms and instructions may be found at the Secretary of State’s website:

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE NEW HOUSING DEMAND

Take a step back from whatever housing data you normally look at. We’ll begin big picture with how many housing units are needed to accommodate changes in the United States. By housing units, I’m including single family dwellings, apartments and condos, as well as mobile homes. This is the key to a housing forecast, after which it makes sense to think about construction by different types, home prices and rental vacancy rates. We’ll keep this analysis at the national level; you can use the same logic to look at your own state or metropolitan area. Drivers of demand growth are population, changes in household size, and pent-up demand. Population growth is the biggest factor, so let’s start there. The surprising news is how soft population growth has been in recent years. Last year’s increase of 0.7 percent was the lowest percentage gain since 1937. For the 20 years prior to the last recession, growth averaged 1.2 percent. That may seem close to 0.7, but most housing is built for new demand, not as replacement. At 0.7 percent growth, new demand is just 58 percent of what it would be at 1.2 percent population growth. That tells us that we need to forget old averages, like housing starts of 1.5 million units a year. Let’s assume that next year is like last year. Population will grow by about 2.278 million people. The second driver of housing demand is reduction of average size of households. When a couple split up and each get their own home, that increases demand for housing. (Recall that we include apartments when we use the word “housing.”) In the opposite direction, when a young adult gives up an apartment to move back home with the parents, demand for housing decreases. We can measure this by average size of a household. When average size (number of people) goes down, demand for housing is going up. Despite the meme about young adults living in their parents’ basements, the average household size is now lower than before the recession. (In 2006, average was 2.57 people per household; most recently 2.53.) If average household size levels out, we’ll have about 0.881 million new households. But if the recent downward trend continues, we’ll have 1.183 million. That’s a pretty big swing, so household size is a large driver of housing demand. The ability to live on one’s own, whether that means moving out from parents or from an ex-spouse, ties to employment and wage rates. As we noted in our article on the consumer spending forecast, job growth has been moderately slow, and wage inflation has not accelerated. I expect wage rates to improve next year, but not soon enough to change the trend in household size. So new demand for housing units will be (under these assumptions) 1.183 million units. For comparison purposes, so far this year we are on pace to build 1.287 million single family houses, apartment and condo units, and manufactured homes. Looks like we’re building too much, at least nationwide. Will pent-up demand take up some of these homes? I look at how many vacant housing units there are. Some vacancy is normal and even good. For non-rental housing (mostly single family homes, but also some condos), average vacancy is 1.4 percent. In the recession, vacancy hit 2.9 percent, but most recently was down to 1.5 percent. So supply is not tighter than normal despite talk of another housing bubble. On the rental side (mostly apartments but some single family homes included), average is 7.0 percent but we are now at 7.3 percent (down from 11.1 percent in the recession). The underlying data are not terribly precise, but we’re certainly in the ballpark of normal vacancy. This looks to me like we do not have too much or too little inventory relative to demand. (Note that some real estate analysts use the word “inventory” to describe the number of houses listed for sale with real estate agents. That is not at all a measure of inventory or supply.) A few points makes the analysis a little more difficult. These are national data. While people are mobile, most housing is not. An excess of houses in Detroit or Cleveland cannot help people moving to Utah or Florida. We also don’t count demolitions or houses left permanently vacant very well, nor do we have a solid handle on vacation homes. Nonetheless, I’m comfortable saying that we don’t need an increase in home construction, and would be just fine with a five percent reduction in housing starts next year and in 2019, which is my forecast. Given that both owned and rental vacancy rates are about normal, do we need to change the mix of single family and multifamily construction? For most of the 1990s and 2000s about 80 percent of new construction were single family units; that figure is down to around 65 percent now. With millennials entering their child-rearing ages, we should see greater demand for suburban houses and less demand for urban apartments and condos, as I argued in my Multi-Family Real Estate Forecast: 2014-2020. As for home pricing, if we’re currently building more houses than we need, then prices don’t need to firm up. I expect long-term interest rates to rise a little, which won’t help prices. Although there’s not much reason to expect a collapse, the recent six percent nationwide price increase seems a bit much given the demographics. I would think that three percent would be more realistic. This national picture may not apply to your neighborhood at all. Real estate is local, so look at your community. Begin with population data. (Household data are harder to find at the local level.) Understand your own community by looking at historic data on housing units permitted per 100 new residents. Don’t be too swayed by local gossip. Instead, begin with

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SINGLE-MEMBER VS. MULTI-MEMBER LLC

How LLC Taxes Work A husband and wife in a community property state can be treated as a single-member LLC Single-member vs. Multi-member LLCs If you're the sole owner of your LLC, the IRS will consider it a disregarded entity and you'll report all profits and losses on a Schedule C tax form ("Profit or Loss from Business"), which you'll submit with your 1040 form. If your business is providing a service or selling a product, you'll also pay self-employment taxes on any profits using Schedule SE ("Self-Employment Tax"). However, if your company is involved in a passive business (e.g., rental activity), no self-employment taxes need to be paid. Instead, you'll report profits via Schedule E ("Supplemental Income and Loss"). Note that should you decide to leave some of your business' profits in the bank at the end of the year (e.g., to cover future expenses or for growth), you'll still have to pay income tax on that money. Does your new business have two or more owners? Then the IRS will automatically classify it as a multi-member LLC, or partnership, for federal income tax purposes. As with a single-member LLC, your LLC won't pay taxes. Instead, each owner will pay a portion of the LLC's taxes on her personal income tax return. The amount of taxes each member pays is generally in proportion to her interest in the business. So if Molly owns 40 percent of the company, Maura owns 30 percent and Ella owns 30 percent, Molly gets 40 percent of the LLC's profits and is responsible for 40 percent of its losses, while the corresponding share for the other two is 30 percent. It's possible to split up the profits and losses differently; to do so, however, you'll need to request a "special allocation" from the IRS. As is the case with single-owner LLCs, you must pay taxes on your share of the profits annually, even if you leave your money in the bank. HTTPS://FSBOMIDWEST.COM 1-800-374-3718 KC 816-5445-9708 SL 314-782-8300 KANSAS

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT ARE LIENS ON REAL ESTATE?

Attorney Whether by the homeowner's choice or the actions of a disgruntled creditor or contractor, there are a number of ways that the owner's title to the property can be "clouded" by the existence of liens meant to secure payment If you are a property owner, you want to own your property “free and clear” of anyone else’s claims. That is, you do not want anyone else to be able to have a legal claim to a portion of your apartment, house, or parcel of land. After all, if others can lay claim to the property, your resale value diminishes. Not only will buyers pay you less, since you cannot sell them a property with “clean” title, but you might have trouble finding any buyers at all. After all, a buyer is unlikely to engage in an expensive real estate purchase if concerned that other claimants might come out of the woodwork. As a property owner, you need to know about the various types of real estate liens that could cloud the title to your property. A lien is a claim against property made by someone in order to secure payment of a debt. The lien essentially makes the property collateral against monies or services owed to the other person or entity. Collateral is an asset that has been pledged by the recipient of a loan as security on the value of the loan. If the recipient of the loan is unable to repay the loan, the lender will look to the collateral as a source for payment on the debt. Types of Real Estate Liens There are two main types of real estate liens: voluntary liens and involuntary liens. Voluntary liens are created by a contract between the creditor and the debtor. The most common type is a mortgage, which is essentially a bank loan that is secured by the property itself. Banks give homebuyers sums of money in exchange for a promise to pay back that sum, with additional interest and costs, over a certain period of time. The bank, of course, retains ultimate legal ownership of the property until the loan is paid off. Voluntary liens like mortgages are easily found and quantified; after all, you are most likely the person who agreed to its terms. At some point, you as the homeowner agreed to the terms of the mortgage and you (theoretically) have a plan for when you will pay it off and gain ownership of the property outright. Involuntary liens tend to be peskier, because they weren't created by the homeowner. Many of them are either tax liens or construction liens. Tax liens are imposed by the federal, state, or local government based upon back property taxes that are due and owing against a particular parcel. Not only can these seriously impact your credit report, but until they're paid off, they hamper your ability to sell the property. Construction liens are usually the result of unpaid renovations conducted on your property. As an example, imagine that you hire a contractor to re-landscape your backyard. You give the general contractor a sum of money to complete the job, which might include planting, installing a pool, and constructing a fence. The general contractor might, in turn, use some of that money to hire subcontractors to complete specific tasks (e.g., excavating the pool) or supply specific materials (e.g., stone walkway). What happens if your general contractor fails to pay one of these subcontractors or suppliers? These subcontractors and suppliers are not in contract with you as the owner, meaning that they cannot sue you for breach of contract. However, they can file a lien on your property in the office of the county clerk. Typically, this would cause a dispute between you and your general contractor, and you would try to force the contractor to pay off the lien. But meanwhile, this lien (sometimes called a “mechanic’s lien”) represents a cloud on your title. Other, less common involuntary liens include judgment liens, which are imposed to secure payment of a court judgment, and child support liens, which can be imposed based on unpaid child support. Both require court approval before they can be imposed on the homeowner. Perfected and Unperfected Liens Liens may be "perfected" or "unperfected." Perfected liens are those liens for which a creditor has established a priority right in the encumbered property with respect to third party creditors. Perfection is generally accomplished by taking steps required by law to give third party creditors notice of the lien. The fact that an item of property is in the hands of the creditor usually constitutes perfection. Where the property remains in the hands of the debtor, some further step must be taken, like recording a notice of the security interest with the appropriate office. Selling Property That's Encumbered by a Lien If you are planning on selling property that has a lien on it, it is unlikely that the sale will close unless the debt is taken care of. A buyer will expect liens to be paid to allow for a transfer of clear title. Checking for Existing Liens When Purchasing Property When purchasing real estate, it is important to make sure there is no lien on the property that will keep you from securing a clear title to the property. Generally, a bank or other mortgage lender will not provide mortgage financing until all liens on the property have been removed. A title search will usually indicate whether or not a lien exists and whether the seller is the legally recognized property owner. It should also indicate the exact legal description of the property, as well as providing details regarding a lien or other encumbrances against the title. You can conduct your own search at the county clerk's office in the property's county. Some county clerks have websites that allow for title searches on the Internet, but these may not provide complete records. Therefore, you may want to hire an attorney or an abstract company to conduct the title search for you. Transferring Property Without Removing Liens The law does not require that liens be removed before title to property can be sold or transferred. But the lien will need to be cleared up if the buyer needs financing or wants clear title. If property is transferred without the lien being paid off, it remains on the property. Thus, in transfers between relatives, the new owner may be willing to take title to property that already has liens encumbering it. Property Lien Disputes If you have a property lien dispute, contact an experienced real estate attorney to help you resolve the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CLOSING COSTS

Many homebuyers think that saving for their down payment is enough to buy the house of their dreams, but what about the closing costs that are required to obtain a mortgage? By law, a homebuyer will receive a loan estimate from their lender 3 days after submitting their loan application and they should receive a closing disclosure 3 days before the scheduled closing on their home. The closing disclosure includes final details about the loan and the closing costs https://green-touch.org/business-loans/minority-business-loan/. BUT WHAT ARE CLOSING COSTS ANYWAY? According to Trulia: “Closing costs are lender and third-party fees paid at the closing of a real estate transaction, and they can be financed as part of the deal or be paid upfront. They range from 2% to 5% of the purchase price of a home. (For those who buy a $150,000 home, for example, that would amount to between $3,000 and $7,500 in closing fees.)” Keep in mind that if you are in the market for a home above this price range, your costs could be significantly greater. As mentioned before, CLOSING COSTS ARE TYPICALLY BETWEEN 2% AND 5% OF YOUR PURCHASE PRICE. Trulia continues to give great advice, saying that: “…understanding and educating yourself about these costs before settlement day arrives might help you avoid any headaches at the end of the deal.” BOTTOM LINE Speak with your lender and your Char MacCallum Real Estate Group agent early and often to determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to. Have more questions? We can help!

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

ELEMENTS OF A REAL ESTATE CONTRACT

Once you’ve found the house that you want to buy, it’s time to make an offer. Once the seller accepts your offer (usually after some negotiations), you have created a contract for the sale of the home. Real estate agents will usually suggest the use of a standard form that contains the required information for a home sale contract. The use of standard forms helps ensure that the specific requirements for a home sale contract are met, but it can still be a good idea to have a real estate contract reviewed by an experienced attorney before signing on the dotted line. Real estate contracts are special instruments, and have unique requirements in addition to the standard rules for contract formation. This article explains some of the elements that contracts for the sale of a home must contain and offers advice on how to get the most favorable contract as a buyer. Pay particularly close attention if you are not using a real estate agent, or if you are buying directly from the owner, in order to avoid problems with the deal down the line. The Statute of Frauds The Statute of Frauds is an ancient piece of English common law that has been adopted in the United States. In essence, the Statute of Frauds requires certain types of contract to be in writing and contain specific sorts of details about the arrangement. This is to prevent a person from cheating someone else by claiming a breach of a fraudulent oral contract. Sales of real estate fall under the Statute of Frauds, and so all contracts for the sale of a home must be in writing. As mentioned above, real estate agents should know this and should always make sure that the terms of the deal are in writing. If, however, you are not using an agent, always be sure to put the purchase agreement into writing so the seller can’t back out later on the grounds that the contract violates the Statute of Frauds. Required Elements Not only does the home sale contract have to be in writing, it must also contain certain elements in order to be enforceable. Specifically, the contract must: List the parties involved in the transaction. Contain the description of the property. Usually this involves both the address of the property and its legal description. Include the purchase price for the property. Be signed by all the necessary parties to the sale. Additional Elements In addition to what is required to enforce the contract under the Statute of Frauds, there are other elements that a home sale contract should include in order to protect the buyer and seller and ensure that the transaction goes down smoothly with as few opportunities for disagreement as possible. These additional elements that should appear in the contract include: The date that for the settlement of the transaction and the date when the buyer can take possession of the property. A guarantee that the seller possesses clear title to the property. A clause that allows the buyer to make inspections of the property for damage, pest infestations, etc. The names of the escrow and closing agents. Contingency clauses that address the proper actions if certain situations arise. For example, if the buyer can’t obtain financing by a certain date, a contingency clause could allow the seller to back out of the deal. A different contingency clause could also require the seller to pay for certain types of structural damage repair or pest eradication. A clause, sometimes referred to as a “liquidated damages clause,” that requires the seller to pay the buyer a specified amount of money for each day that the buyer has to delay moving into the house. Getting the Best Contract as a Buyer Obviously the first step towards getting the best contract possible is to get the seller to agree to your preferred purchase price. Even if you’ve managed to achieve that, however, there are still other details you should include in the purchase agreement to make sure that you are protected in the deal. Decide beforehand which of these is the most important to you and be prepared to give up some of the others as concessions in order to keep the most important terms. Every home sale contract should have a clause allowing for inspections, but make sure that there is also a contingency clause that covers situations that could arise out of the inspections. Basically, the clause should state that the seller is responsible for repairing any damage or dealing with any pest infestations. You may also want to include a provision that allows you to back out of the deal if the problem is too severe. You may also want to include a contingency clause that allows you to void your offer if you can’t secure financing before a certain date. Sellers will usually be happy to include this provision; after all, if you can’t get the money to buy the house, the seller will want to keep looking for another buyer. You should also try to include a clause that makes it clear that the seller is responsible for paying utilities, fees, taxes, etc. for the property up until the transaction is settled. Along the same lines, always include the liquidated damages clause mentioned above to cover you for any expenses you may incur from a delayed move in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SHOULD YOU SELL YOUR PARENTS HOUSE AFTER THEY MOVE OUT?

If your parent owns a house, one of the decisions you need to make now is whether or not to hang on to the house or go ahead and sell it after a move to senior care. Learn more about both options and their advantages and disadvantages. Good Reasons to Keep the House After a Move to Senior Care Chances are, someone in the family has an emotional connection to your parent’s house. If letting go of it is a difficult emotional decision for any of you, then you’ll want to think through whether or not keeping it makes sense. Sentimental reasons alone aren’t always enough to go off of, but there may be other good reasons that make it worth it. It makes sense to keep as a real estate investment. Depending on where you live, selling could mean losing more money than you would gain by hanging onto the house for a while longer. If you know the real estate market where your parent lived is on an upward trajectory, then keeping the house may be a really smart financial decision. Even if someone from the family won’t be moving in, you could rent it out and make money on it while you wait until the right time to sell. Someone wants to live there. If one of the children or grandchildren wants to inherit the house, then there may be no need to sell it. It can stay in the family and continue to be used. Your parent can know the house they loved is still in loving hands (and visit it sometimes) and you can all know there’s someone there to take care of maintenance and the costs associated with ownership. You have a good use for it. Making money and making into a home for another family member are both good uses for your parent’s old house, but there may be other less obvious reasons that keeping it makes sense for your family. This was the case for my mom, Debra Hicks, and her siblings when my grandmother moved to memory care. “We kept the house because it was a great meeting place for all of us to get together,” she told me. “It’s in a central location with enough space for our large family to gather for celebrations and meals.” Even with no one living there full time, the house serves a good purpose several times a year when the children, grandchildren and now great-grandchildren of the original owners join together there. Important Factors to Consider If You Decide to Keep the House Whatever reasons have you leaning toward keeping the house, it’s not a decision you should make lightly. Make sure you’re prepared to figure out all the details that go with that decision: Covering ongoing costs. Even if the home is entirely paid off, this includes the cost of ongoing fixes and maintenance, home insurance and taxes. Deciding on financial details. This can be the tricky part for a lot of families. You have to all figure out how to pay for the expenses involved in keeping the house and how to use any profits from renting it out, if applicable. If your family is prone to disagreements, hanging onto the house may cause more trouble than it’s worth. Figuring out who will live there (if anyone). If you’ll be renting it out, you have to do the work for finding good renters, which may take some time. If someone in the family wants to move in, you just have to be sure everyone in the family is okay with the arrangement. If you’re leaving it empty, you need to make sure somebody goes by frequently to check on things and deal with the aforementioned ongoing maintenance. Keeping up with ongoing maintenance. Someone will need to take on the responsibility of making sure the house stays in good condition. That means fixing things that break, keeping the yard maintained, etc. It’s a lot of work and can especially be hard to stay on top of if someone isn’t living in the home. Good Reasons to Sell the House After a Move to Senior Care Whether you feel an emotional connection to your parent’s home or not, for some families, there will be more reasons to sell it than there will be to hang onto it: Keeping it would cost too much (and require too much work). As we discussed in the earlier section, keeping the house will mean becoming responsible for a number of associated costs – from home insurance and taxes to various repairs. This especially becomes an issue if no one is living there says Ann Cohen, “As a Realtor, I see vacant homes often fall prey to unexpected issues – frozen pipes, leaky pipes, roof leaks and so on. Homes are meant to have people living in them! Unused appliances and pipes develop compromised seals.” Nobody lives close to it. This was the case for the author Carol Amos. “When our mother moved to assisted living, my brothers and I agreed that we should sell my mother’s house. My two brothers and I lived outside of the area in different parts of the country,” she explained. Taking care of the house – either while it stands empty or as the landlord to renters – is a lot harder if you’re not there in the same city or even state. If your parent moves into a senior living community close to one of the kids, then there’s nothing keeping any of you tied to the city their home was in. Going back just to deal with house stuff will likely feel more like an annoyance than anything else. You want the money from it to pay for senior care. Staying in a senior care community can be expensive. If the value of your parent’s home is high enough, selling the house may seem like the most practical solution to getting the money you need to pay for the home. Selling now could pay off in how you’re taxed on what you make. As Sissy Lapin of Listing Door explains, “There are no capital gains taxes for a $250,000 gain if you are single and $500,000 if you are married.” As long as your parent had owned the home for at least the last two years and treated it as their primary residence, that is. In some cases, selling the house will be your smartest financial decision. If no one in your family feels up to the task of dealing with the maintenance and costs associated with keeping the house, then selling it just makes sense. Important Factors to Consider if You Decide to Sell the House If you’re leaning toward selling the home, there are a few important factors you need to think about before making a definite decision: The condition of the home. If it’s an older house and especially if your parent hasn’t been doing much work on the upkeep, then the house may not be in good condition to sell now. You’ll need to consider the fixes and upgrades that need to be made to attract a buyer, or decide if you’re willing to make less on the sale in order to forego the work. The local real estate market. Before you decide to sell, talk to a local real estate agent. You need to find out what the home is worth now and what the expectations are for what the market will do in the coming years. If you’re hoping to use the sale to pay for assisted living, then you need to understand what you can expect to make for the house before you can be sure the math will work. The work of selling. While a good real estate agent can take a lot of work off your plate, you’ll still need to clear your parent’s things out of the house, make the recommended upgrades and do paperwork. Someone in the family will need to be prepared to take those tasks on. Your parent’s readiness to sell. At the end of the day, the home still belongs to your mom or dad. According to Dr. Ann Meyerson, Realtor and Transition Counselor, “Senior parents may also need a little psychological room to give up ‘their home’ in stages and renting out the property can be a temporary solution.”If they’re not ready to give up the house yet, you should try your best to respect that. Although if you quite simply can’t afford to hang onto it after they move, you may not have a choice. Deciding whether to keep your parent’s house or sell is ultimately a personal decision that depends on your particular circumstances and feelings and those of any other family members that have a stake in the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MELLENNIALS AND REAL ESTATE

Whether you’re a real estate agent or broker, it’s hard to deny that millennials – those born in the years between 1982 and 2004 – continue become the largest group interested in purchasing real estate. According to the National Association of REALTORS® Generational Survey, millennials are the largest group of home buyers claiming 32% of the market as of 2015. Are you effectively reaching this growing audience, or are you struggling to connect with this demographic? Learn how this age group interacts with the world to increase your customer base and close more sales. Facts about Millennials In 2014, the White House’s Council of Economic Advisers (pdf) released a report identifying trends found in the millennial generation. Though findings indicated adults ages 18 – 36 were less likely to own a home at a young age, it did confirm that many millennials are living with parents in an effort to save money, complete educational goals, and begin their careers. When the time comes to purchase a home, many adults in the millennial age group are armed with improved financial and career stability in addition to an established credit history. According to a Nielsen report, millennials use digital channels to conduct financial management tasks, research investment opportunities, and conduct searches for information more than any other age group. For real estate agents, reaching millennials online is not simply a luxury – it’s a necessity. Learn how to connect with millennials online while improving your status as a thought leader in the real estate space. 3 Effective Millennial Marketing Strategies Make slight changes to your existing marketing strategy to gain more prospects born into the millennial generation. Be Available on Mobile With more millennials using mobile devices than any other generation, failing to make your real estate business available via mobile can really hurt your bottom line. Whether you choose to design a mobile-friendly website or create an app specifically for your business, making yourself available on a mobile platform is the best way to access millennials. Create Content to Back Up Your Expertise Millennials research everything from their favorite celebrities to promising stock opportunities online. Instead of reading multiple newspapers per day, millennials await digital editions of their favorite publications or simply seek information on the web. As a real estate agent, having an engaging, informative digital presence can be one of the best ways to get a millennial’s attention. Focus on What Matters Research shows that the values of millennials are very different than those of previous generations. Whereas their predecessors valued family, integrity, and duty, millennials pursue happiness, passion, and discovery. When it comes to purchasing a home or business, millennials want to know they’ll be content in the long term. The key for real estate agents and brokers is to discover what matters most to millennial clients and incorporate real estate investments into that equation. The Bottom Line The number of buyers entering the market and preparing to purchase property is steadly increasing each year. By incorporating digital marketing and a strong desire to help millennials reach their goals, you can build trust with younger buyers and expand your target

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MECHANICS LIENS IN MISSOURI

Drafting a mechanic’s lien and “notice of intent” (§429.100) involves crucial steps that can be harmful to your case if overlooked. Whether you forgot to verify the “just and true account” (§429.080) of the amount due, or are unsure of the proper county for filing your lien, you can avoid these service errors by taking the time to learn the following steps involved in filing and drafting a mechanic’s lien in Missouri. Most importantly, the lien must be filed within six months from the last date of delivery of material or performing labor. Merely performing warranty work or punchlist work may not be sufficient to qualify as the “last date of work.” Therefore, be wary of calculating the last date of work from a date after the contracted work was substantially complete. If you are not under direct contract with the project owner, then you must serve a notice of intent to file a lien on the owner of the project at least ten days prior to filing the lien. You cannot determine the owner or property description effectively without a title report. Therefore, you need to obtain a title report well in advance of the six-month deadline so that you can properly prepare the notice. My suggestion is to order an Ownership and Encumbrances report. These generally cost around $200.00 and can be obtained in less than a week from a good title company. The notice of intent must contain four things: amount owed, from whom the amount is due, a property description, and the name of the claimant (RSMo. 429.100). The notice must be served on the owner of the property. The service on the owner is a critical element of the mechanic’s lien case. Service should be accomplished by personal service and the completed affidavit of service should be included in the legal file for the case. When drafting the mechanic’s lien and notice of intent, be sure to get the name of the owner of the property correct. If your client had a direct contract with the owner, then check the name of the owner on the contract itself. If the name on the title report is different from the name on the prime contract, assess the impact of this issue on your lien filing and consider naming the property owner with a “doing business as” designation as to the name on the prime contract. Finally, review the Missouri Secretary of State website (or other state’s websites) to verify that the entities in the title report and the prime contract actually exist and are known by the names in those documents. One of the most litigated issues with Missouri mechanic’s liens is the failure to include a “just and true account” of the amount due. In the case of a subcontractor, this means including information with sufficient detail to show itemized labor costs (hours of labor performed each day and rate) plus a complete description of materials, including quantity and cost (i.e. 16 qty. ¾” x 4’ x 8’ OSB Square Edge @ 10.00 each = $160.00). Many contractors will balk at providing this information as there is a concern that competitors will use this information to compete against them in the market place. My advice is to be very conservative in drafting a lien and supply detailed labor and material pricing information. What you do not want is to spend a lot in litigating a mechanic’s lien only to find out it was defective with the filing of the lien statement. There are numerous traps for the unwary in Missouri’s Mechanic’s Lien Statutes and caselaw. Knowing these traps and being prepared are only half the battle. Assuming you have a valid mechanic’s lien, you still need to litigate your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

BEST AREAS TO INVEST FOR REAL ESTATE APPRECIATION

The question is not why, but WHERE to invest in real estate. When choosing the location of a rental property, a real estate investor puts a number of factors as criteria based on which he/she will make an investment decision. One investor might only be looking for locations that promise cash flow and an instant profit, while another might be willing to invest in a location that might not be as profitable at the moment, but will be in the long-term future. This is called investing for real estate appreciation, which means that a property’s value will increase the longer a real estate investor holds it, thus, allowing him/her to make profits when selling it in the future. If this is how you choose to invest in real estate, then you must find locations that have a high potential for appreciation over the long-term. So, without further ado, here are the top 5 cities for property investors to consider when looking for where to invest in real estate for the long-term. Note: This information is according to NeighborhoodScout data and Mashvisor’s rental property calculator analytics. Related: Why You Should Consult a Rental Property Calculator First Where to Invest in Real Estate #5: Tampa, FL Tampa is part of the larger metropolitan Tampa Bay Area. With a population of 377,165 people, it is the fourth largest metro area in the Southeastern US and the third largest community in the state of Florida. Just like it did in the previous years, the Tampa real estate market claims its spot among the 20 top locations for real estate investing in 2018 on the PWC annual study! The city enjoys a strong local economy with a focus on job growth (annual job growth of 2.1% and an unemployment rate of 3.1% – lower than the national average of 3.9%). As a result, qualified employees are moving to Tampa to score good jobs and live there for the long-term. Median Property Price: $375,416 Traditional Rental Income: $1,589 Airbnb Rental income: $2,288 These numbers are based on Mashvisor’s Rental Property Calculator’s data analytics and projections. To learn more about our product, click here. Tampa Real Estate Appreciation For the last ten years, appreciation rates for investment properties in Tampa have been well above the national average. According to NeighborhoodScout data, Tampa real estate properties have a 10-year appreciation rate of 10.55%, which equates to an annual appreciation rate of 1.01%. This rate is higher than 70% of the other cities in the state of Florida! It should be mentioned that the most common type of real estate properties in Tampa is single-family homes – which are known to appreciate higher and faster than others in the real estate business. Today, investment properties in the city continue to appreciate in value faster than most cities and towns in the U.S housing market. Related: Best Places to Buy Property in Tampa Real Estate Market 2018 To start looking for and analyzing the best investment properties in your neighborhood of choice in Tampa, click here! Where to Invest in Real Estate #4: San Diego, CA San Diego is a very large coastal city in the state of California, with a population of 1,406,630 people. Looking at the city’s median property price, San Diego real estate is among the most expensive in the nation. The city has a healthy economy and job market, leading to a high demand for rental properties – especially single-family homes – which will obviously raise property prices. Here are some figures regarding the San Diego real estate market as computed by Mashvisor’s rental property calculator: Median Property Price: $823,342 Traditional Rental Income: $2,669 Airbnb Rental income: $3,625 Related: Best Neighborhoods in San Diego 2018 for Owning Rental Properties San Diego Real Estate Appreciation In the last 10 years, San Diego has experienced an appreciation rate of 29.91%, which is an average of 2.65% annual appreciation rate. According to NeighborhoodScout data, this rate is higher than 50% of the other cities and towns in California, making San Diego a top real estate market for real estate investing in 2018. It’s important to mention that real estate experts expect the city’s real estate appreciation to grow more in the near future. Thus, if you’re thinking of buying a San Diego real estate investment property, don’t wait any longer! To start looking for the best investment properties in San Diego real estate, click here! Where to Invest in Real Estate #3: Portland, OR If you already own a rental property in the Portland real estate market, you’ll be happy to hear that the city is one of the top locations for real estate investing in 2018! Portland has an especially healthy economy that is expected to grow in the upcoming 10 years. The city’s population of 639,863 continues to grow year after year as millennials are moving there thanks to the job opportunities Portland has to offer. This migration is pushing up the demand for housing and property prices – a sign that you too should buy a Portland real estate investment property! Median Property Price: $557,248 Traditional Rental Income: $2,074 Airbnb Rental income: $2,405 Portland Real Estate Appreciation Portland investment properties have appreciated at a rate of 35.27% over the last ten years – an annual appreciation rate of 3.07%. This tells us that if you’re searching for where to invest in real estate for the long-term, you should definitely look further into the Portland real estate market this year. Did you know that we offer real estate investors an easy way to find investment properties in any city across the US housing market using a single online tool? That’s right, Mashvisor’s Property Finder Tool will allow you to find the best-performing properties in just 15 minutes with a click of a button! Do you have a free Mashvisor account? Click here to use our Property Finder and find the best properties in the Portland real estate market in a matter of minutes! Where to Invest in Real Estate #2: Bellevue, WA Prices of Bellevue investment properties are not only among the most expensive in the state of Washington, Bellevue real estate also is among the most expensive markets in all of America! In fact, it’s a great place for a real estate investor to consider if he/she is considering investing in luxury properties. The city’s population is 141,400 people, making it the fifth largest community in Washington. Moreover, Bellevue has seen a job growth by 1.7% over the last year – which is expected to further increase over the next ten years. All of these factors made the city one of the top locations for real estate investing in 2018. Median Property Price: $1,173,424 Traditional Rental Income: $2,625 Airbnb Rental income: $2,084 Bellevue Real Estate Appreciation As mentioned, Bellevue is one of the most expensive cities in the US housing market – and prices keep going up! The 10-year appreciation rate of investment properties in the city is the second highest in the nation at 44.89%! This is an average annual appreciation rate of 3.78% – higher than 80% of the other cities and towns in the state of Washington. As a result, Bellevue has a track record of being the best place to offer great long-term investments, which is great if you’re a real estate investor looking to buy a home. In fact, the city’s real estate appreciation is so strong that properties still continues to increase in value despite a nationwide downturn in the housing market! To start looking for the best investment properties in Bellevue real estate, click here! Where to Invest in Real Estate #1: Austin, TX Austin is the fourth largest city in the state of Texas with a population of 947,890 people. With this large population comes a strong job market and a thriving economy. Thus, it shouldn’t come as a surprise that it’s among the top locations for real estate investing in 2018. Austin real estate properties are more expensive than the other cities in Texas. However, they’re not the most expensive in the US housing market. Once again, single-family homes are the most popular type of properties in Austin – which, as mentioned, appreciate faster than other types of investment properties. Thus, if you’re looking for where to invest in real estate for the long-term, Austin should definitely be an option to consider! Median Property Price: $526,101 Traditional Rental Income: $1,891 Airbnb Rental income: $2,754 Related: Austin Real Estate Market 2018: The Best Neighborhoods to Invest In Austin Real Estate Appreciation For property investors looking to invest for the long-term, the Austin real estate market has always been a top choice in the US housing market. Over the last 10 years, Austin investment properties have appreciated at a rate of 65.05% – which is an average of 5.14% annual appreciation rate. This is, hands down, the highest real estate appreciation rate in the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

DISCLOSURE REQUIREMENTS IN MISSOURI

You are thinking of moving, and want to put your Missouri home on the market. Most states have legislation that would require home sellers to give an extensive written disclosure report to potential buyers. Such reports typically identify all material defects in the property, from a broken oven in the kitchen to a leak in the basement. Ironically, the “Show Me State” doesn’t make you show very much. Relatively few portions of Missouri law involve specific disclosures that home sellers must make to potential buyers. If, however, you use the services of a real estate agent, your agent may need to make certain disclosures to the buyer based upon professional regulations and state law. And there are some good reasons for you to give the buyer a full disclosure report anyway, notwithstanding the lack of explicit legislation requiring you to do so. What sorts of disclosures does Missouri require, and what disclosures might you want to make regardless? Real Estate Regulations in Missouri Missouri has only a few statutes that specifically require a home seller to make disclosures to potential buyers. The most explicit is Missouri Rev. Stat. § 442.606. This statute requires that if the property is or was used as a site for methamphetamine production, the seller must disclose that in writing to the buyer. Methamphetamine—also known as meth, crystal or ice—is a dangerous and illegal stimulant drug sometimes manufactured in homes. You need to disclose this criminal history only if you “had knowledge of such prior methamphetamine production.” In other words, you need not examine old police records to see whether your house was ever the site of drug production “related to methamphetamine, its salts, optical isomers and salts.” In a similar vein, the Missouri statute requires you to disclose in writing whether the property was the site “[e]ndangering the welfare of a child” through “physical injury.” This requirement is unique to Missouri. Again, you must only disclose incidents about which you are aware. For example, if you knew that the prior owner of the home was convicted of abusing a minor child there, this would qualify for disclosure under Missouri Rev. Stat. § 442.606. Missouri specifically allows you to remain silent on certain matters related to "psychological impacts" on the property, including whether prior occupants of the home had HIV/AIDS or whether the home was the site of a murder, felony, or suicide. (See Missouri Rev. Stat. § 442.600.) Beyond these specific requirements, Missouri courts will typically enforce caveat emptor clauses in purchase contracts. Under the doctrine of caveat emptor (“let the buyer beware”), judges ordinarily refuse to compensate buyers for home defects found after the purchase unless the seller did something to actively prevent the buyer from inspecting the property to find all of the defects or lied to the buyer directly about the condition of the property. This equation changes if you use a licensed real estate agent to help sell your home, however. Agents are held to certain standards for honesty under Missouri Rev. Stat. § 339.730.1, which requires that your agent “disclose to any [potential buyer] all adverse material facts actually known or that should have been known by the [agent].” In other words, licensed real estate agents cannot lie for you without risking their license. For example, if you tell your agent that you want to sell your home quickly because termites are about to eat the last structural beam, this would be the sort of “adverse material fact” about which the agent would be legally obligated to inform the buyer. Still, an agent “owes no duty to conduct an independent inspection or discover any adverse material facts for the benefit of the [buyer] and owes no duty to independently verify the accuracy or completeness of any statement made by the [seller] or any independent inspector.” Thus, your agent does not need to verify his or her knowledge of your property, or perform any sort of inspection. The agent simply cannot lie for you. Value of Disclosing More Than the Law Requires to Home Buyers in Missouri Initially, you may feel fortunate to live in a state that doesn’t force you to reveal damaging defects about your property beyond particular criminal histories. However, you may be surprised to learn that there are short- and long-term benefits and protections associated with making disclosures—and that, as a result, many Missouri sellers choose to affirmatively make such disclosures. The Missouri Association of Realtors promulgates a six-page disclosure form that you can use. (Also check with your own real estate attorney or agent to see whether he or she has a preferred form for you to use). The form asks you to check “Yes” or “No” in response to a few dozen questions—divided into 19 categories—about your property. For example, you are asked how old the home is, whether it is the subject of any liens or lawsuits, and whether you are aware of any major problems with various aspects of the house (heating, cooling, electrical, plumbing, and so forth). Although the form is fairly short, the answers should give potential buyers a fairly comprehensive snapshot of any known defects with your property—at least enough information to know what they should pay particular attention to when commissioning inspections of their own. The form also gives you additional space to explain any of your responses to those questions in greater detail, and encourages you to attach pages if necessary. So, you might wonder, what is the purpose of filling out this disclosure form if Missouri doesn’t require it? First, it sets clear expectations regarding the quality and condition of the home, and may smooth negotiations while you’re in escrow. The buyer will see from the start that you are being open and honest about the condition of the house, and will have less reason to react with shock and dismay if and when the inspection report turns up defects. (Imagine, by contrast, if you were to disclose nothing, after which the buyer hires a home inspector who finds unmitigated outbreaks of mold throughout the home. The buyer would be horrified, and would likely try to renegotiate the sale price or demand repairs.) Second, the disclosure prevents the buyer from later claiming that he or she did not know about a particular defect. Imagine that there is a busted HVAC system, and you do not say anything to the potential buyer. Even if the sale does close successfully, the buyer will quickly discover the problem upon trying to turn on the heat. Any claim that you “didn’t know” about it would be, at best, difficult to believe. The buyer will be angry; not just because you were dishonest by omission, but also because the buyer will now have to face significant repair costs. This creates a risk that the buyer may sue you for breach of contract or fraud. Of course, you may have strong arguments to beat such a buyer’s lawsuits, especially if your purchase contract included a caveat emptor clause. Still, nothing prevents the buyer from suing you. The buyer may lose the legal arguments, but you will be forced to hire an attorney and engage in the stress of litigation. Making a full and forthright disclosure would ensure that the buyer’s expectations match reality. All of this will help to make sure that your home sale in Missouri goes

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A QUIT CLAIM DEED?

To transfer real property, you need to use a written document known as a deed. One common type of real estate deed is the quitclaim deed. You may also see a quitclaim deed called a non-warranty deed or a quick claim deed. Quitclaim deeds are not ideal for every situation because they don’t offer much security for a homebuyer. However, they are useful in specific situations such as transferring property between family members. Below we’ll take a look at what exactly a quitclaim deed is and whether it’s worth considering one as you prepare to buy a home. General Warranty Deed Vs Quitclaim Deed To understand what a quitclaim deed is, it’s useful first to understand general warranty deeds. A general warranty deed is the most common type of deed in real estate sales transactions. It is used to warrant the good state of the title. This means it guarantees that the person transferring the title is the owner of the property and has the right to transfer the property to you. With a general warranty deed, there is no one outside of the grantor (the person selling the property to you) who can claim the property as theirs. It also guarantees that there are no debts or liens against the property except those that have already been made clear to the buyer. In other words, the deed provides the buyer with protection, or warranty, against those things. By contrast, a quitclaim deed contains no warranties. All it does is transfer whatever interest the grantor has in the property over to the other person. There is no guarantee against other owners having the ability to claim the property. And there’s no protection against debts and liens on the property. It’s even possible that the grantor does not actually own the property. Who Should Use a Quitclaim Deed quitclaim deed In general, quitclaims are useful in situations where you want to transfer ownership (or someone’s claim to a property) without exchanging any money. Because of the lack of warranty, you should usually only use a quitclaim deed with someone who you know and trust. This often applies in family matters. For example, a parent who is moving to a retirement community may quitclaim his or her house to a child. This way the child gets the rights to the property. Presumably, the child already understands the condition of the house. Other common situations for a quitclaim deed include when someone gets married or divorced. In those cases, a homeowner wants to add or remove a spouse to the title. As another example, let’s say you are buying a home and an ex-spouse of the grantor still has his or her name on the home title, even though only the grantor cares for the the home. This is a case where you might ask the ex-spouse to sign a quitclaim to remove her the title. You may also use a quitclaim deed to clear a cloud on the title. This is a simple defect like an issue with wording or a misspelling. Quitclaim Deeds and Mortgages It is important to note that a quitclaim deed has no effect on a mortgage. A quitclaim transfers a property’s title but any mortgage the grantor has will not transfer. This is particularly dangerous if the grantor’s mortgage includes a due-on-sale clause. The clause will require the grantor to pay the entire remaining balance of the mortgage once the title changes hands. (If you don’t have a due-on-sale clause, you may want to consider refinancing to save some money on payments.) Even if the grantor assumes the grantee will take over mortgage payments, the grantor has no legal recourse if the grantee stops making payments. If you need to transfer a mortgage and you feel that a quitclaim loan is the best deed option, create a legal agreement stating that the grantee will take over the payments. How to Create a Quitclaim Deed Quitclaim deeds are relatively simple documents and you can create your own easily. There are free, basic forms available online. That said, a deed is a legal document. It is best to consult with an attorney who can draft one or at least review your deed before signing. Any form you use should state that it is a quitclaim deed. Include the grantor’s name, the grantee’s name and the address of the property that the grantor is transferring. The deed must state that the grantor is quitting any interest in the property and transferring that interest to the grantee. Both parties then need to sign the deed with a notary public. Some states require a second witness. To transfer the property officially , the grantee must take the signed deed to the title company, who issues a new property title with the grantor’s name changed to the grantee’s name. Then the grantee must bring the new title to the county clerk to record the transfer. The Bottom Line quitclaim deed A quitclaim deed is a way to transfer property from one person (the grantor) to another. With a quitclaim deed, the person issuing the deed gives up their claim on the property, whatever that claim may be. However, there are no guarantees to protect the buyer in case there are liens, debts or other issues with the property title. It’s best to accept a quitclaim deed only from someone you know and trust. This often means that family members use quitclaims. A quitclaim is also a useful way to correct mistakes on a title or to change the names on a title without exchanging any money. An important note is that quitclaim deeds do not affect your mortgage payments. The grantor is still on the hook for any mortgage

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

2019 REAL ESTATE FORECAST

There’s no doubt about it: the 2018 housing market has seen its ups and downs. The year started with sky-high home prices, historically low mortgage rates and a definitive upper hand for sellers. In recent months though, home price growth has faltered, rates have risen to their highest point in nearly eight years, and favor has started to shift from seller to buyer. Will these trends continue? Will housing experience the same wild ride in the new year? Here’s what experts predict will happen in 2019 real estate market: Mortgage rates will continue rising. “Despite steady climbing for the past two years, mortgage rates remain lower than they were during most of the recession and below average for the type of strong economic growth we’ve been experiencing. That will change in 2019, as the 30-year, fixed rate mortgage reaches 5.8% — territory not seen since the dark days of 2008 when rates were racing downward in response to the housing crisis.” — Aaron Terrazas, director of economic research for Zillow Millennials will keep buying homes — despite those rising rates. "The housing market in 2019 will be characterized by continued rising mortgage rates and surging millennial demand. Rising rates, by making housing less affordable, will likely deter certain potential homebuyers from the market. On the other hand, the largest cohort of millennials will be turning 29 next year, entering peak household formation and home-buying age, and contributing to the increase in first-time buyer demand.” — Odeta Kushi, senior economist for First American “Millennials will continue to make up the largest segment of buyers next year, accounting for 45% of mortgages, compared to 17% of Boomers, and 37% of Gen Xers. While first-time buyers will struggle next year, older Millennial move-up buyers will have more options in the mid-to upper-tier price point and will make up the majority of Millennials who close in 2019. Looking forward, 2020 is expected to be the peak Millennial home buying year with the largest cohort of millennials turning 30 years old. Millennials are also likely to make up the largest share of home buyers for the next decade as their housing needs adjust over time.” — Danielle Hale, chief economist for Realtor.com Home buying power will decrease, but that could be a good thing. “Most homebuyers budget a monthly payment. As rates rise, a fixed monthly payment translates into less borrowing capacity and buying power is down about 10% since the same time last year. As there are less buyers at each price point, the appropriate market response is a slowdown in sales and an easing in price momentum.” — Tendayi Kapfidze, chief economist for LendingTree Overall home sales will drop. “As we look toward 2019, we are anticipating home sales to decline around 2%. We’re expecting it to be another slightly slower year as buyers continue to wrangle with higher mortgage rates after contending with several years of rapid price growth.” — Ruben Gonzalez, chief economist at Keller Williams Inventory troubles will ease — not too much, though. “The wave of first-time home buyer demand will be met by somewhat higher inventory levels than in 2018. However, while the days of multiple offers and bidding wars may be history in some markets where inventory is increasing, inventory will likely still remain tight nationally through 2019." — Kushi “In the majority of markets, the number of homes being put on the market or newly constructed has increased slightly, while the pace of sales has slowed slightly, which has helped stop the inventory decline. But the inventory increases or slowing price increases necessary for a more widespread sales gain are not forecasted to happen in 2019. While the situation is not getting worse for buyers, it’s also not improving notably in the majority of markets.” — Hale Home price growth will continue to slow. “Right now, for 2019, we believe home price appreciation will likely slow to near 3%. This is based on the assumption that the recent pattern of increasing inventory levels will be sustained in the upcoming year.” — Gonzalez Buyers will see less competition, but that might not help first-timers. “Buyers who are able to stay in the market will find less competition as more buyers are priced out but feel an increased sense of urgency to close before it gets even more expensive. Their largest struggle next year will be reconciling wants, needs and budget versus the heavy competition of 2018. Although the number of homes for sale is increasing, which is an improvement for buyers, the majority of new inventory is focused in the mid- to higher-end price tier, not entry-level.” — Danielle Hale, Realtor.com National rents will rise, but apartment construction could ease renters’ pains. “As higher rates limit the number of homes that potential buyers can afford, some would-be buyers will be too financially stretched to buy and will continue renting. As a result, recent (and very slight) drops in rent will reverse and turn positive again. The shift will be muted, however, by continued steady investment in apartment construction, which will prevent rent growth from shooting too far above income growth.” — Terrazas NYC rent hikes will continue — thanks to Amazon. “Overall, I think the beginning of 2019 will be relatively flat, with price increases in Q3, Q4 and into 2020. The period between the old 421A and the beginning of affordable New York was a window of time where there wasn’t a tremendous amount of rental development. During that time it was difficult to build rental developments due to the escalating land and construction costs, no tax incentives, etc., creating a shortage of new product. Today, not only have some regulations changed, but the economy is doing well, unemployment rates are down, a lot of jobs are being created here in New York – not only by Amazon but everything that comes along with Amazon and all of the corporations looking to be close proximity to their headquarters. When we see the economy doing well, we can expect rental prices to increase.” — Andrew Barrocas, CEO of MNS Individual and institutional investors will battle it out. “Well-funded institutional buyers have tremendous advertising budgets and their spend makes it impossible for the average real estate investor to compete. It takes a serious financial investment to fund a marketing campaign that accurately targets and identifies acquisition opportunities. That alone gives institutional investors an instant advantage. Additionally, interest rates are increasing, which not only impacts buyers who cannot afford to move, but also individual investors looking to borrow money to buy and hold rental properties. Their cost to borrow increases while inventory decreases and competition grows. This type of combination middle-market is one individual investors do not want to see.” — Brian Spitz, founder of Big State Home Buyers Commercial property managers will hop on the shared space bandwagon — or bring in top amenities to make up for it. “As co-working continues to be a disruptor in commercial real estate, the largest traditional landlords have opened their own flexible and co-working options to compete, such as Sage Realty's Swivel and Boston Properties' Flex. Landlords who are remaining or returning to the traditional commercial office space are facing increased demand for amenities like sleek lobbies, tech services, etc. To meet these demands and gain a competitive edge, landlords are opening up to fintech/insurtech solutions like replacing security deposits with surety bonds to make tenants lives easier.” — Julien Bonneville, CEO of The Guarantors Technology will continue to disrupt the industry. “Technology disruption of the real estate industry driven by Silicon Valley and institutional investors will reach a point where it’ll threaten the traditional real estate industry. Technological innovation is here and rapidly advancing in the real estate industry and preparing for disruption. iBuying, blockchain, artificial intelligence and machine learning are changing the ways buyers, sellers and investors interact with each other and the properties they are interested in.” — Spitz All in all, housing is set for a slow-down next year, but as Kapfidze explained, that’s not necessarily a bad thing. “The medium and long-term prospects for housing are good because demographics are going to continue to support demand,” he said. “With a slower price appreciation, incomes have an opportunity to catch up. With slower sales, inventory has an opportunity to normalize. A slowdown in 2019 creates a healthier housing market going

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

20 REASONS TO INVEST IN REAL ESTATE

20 REASONS TO INVEST IN REAL ESTATE #1: 90% of millionaires have become a millionaire as a result of owning real estate. It adds substantially to your net worth. #2: Entrepreneurs have a greater opportunity to become wealthy through real estate than other businesses they may wish to start. #3: Real estate doesn’t require a degree from college and doesn’t care what GPA you got, nor care where you went to school. #4: Real estate doesn’t discriminate based on age, race, background, etc. but laws make it so that you have to be at least 18 years of age to purchase real estate as this is the age you are legally perceived as having the ability to read and understand contracts. #5: Credit scores don’t matter in real estate as there are many other ways to purchase real estate besides bank financing. If you use bank financing then you will need a credit score. #6: You can participate in real estate without using any of your own money #7: You don’t have to be involved in real estate full time to be successful #8: You can invest in real estate even if you have a full time job #9: You can live in another state or country and still invest in real estate in a specific city other than the one in which you live in #10: Real estate can provide you with steady monthly income #11: Overtime, your tenants monthly rent payments will pay down your mortgage as well as other expenses such as maintenance, taxes, insurance, and still leave you money left over to live off of or to reinvest. #12: The IRS says that the majority of tax payer wealth is held through real estate #13: Real estate is more tax advantaged than other investments #14: One tax advantage of real estate is depreciation because the IRS knows that overtime the structure built on the land, such as a house or apartment building, will break down thus they let you deduct depreciation expenses from your income to lower your taxes. #15: The government gives you tax incentives to own real estate in order to motivate Americans to own real estate. #16: Barriers to entry such as education/knowledge of real estate investing keep many people away from ever participating because they don’t understand it and don’t feel qualified enough to try it. #17: Real estate uses the power of leverage which can allow you to own more real estate than money you put into the deal unlike stocks where you buy only how much you can afford and you have to have a lot of money before you start earning decent income from dividends. #18: You can make money in both up and down markets. By purchasing property at the right price you can protect yourself from bad times and do very well in the good times. #19: Real estate pays you based on results, not based on hourly wage or salary. Therefore, you control how much you want to earn and aren’t capped by your boss or employer #20: Real estate can provide you financial freedom and allow you to live off of the passive income, no longer needing your job. Many join real estate investing to someday make enough money to quit their

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE NIGHTMARE OF TRYING TO RESTRUCTURE A MORTGAGE

With an eviction looming, Karen Pettit, a disabled 52 year old Slidell, Louisiana woman documents her frustrating experiences and obstacles faced when trying to find promised relief and governmental assistance through federal housing programs and GMAC. https://fsbomidwest.com My Foreclosure Story By: Karen Pettit Slidell, Louisiana I have been documenting my experience as a 52 year old Slidell, Louisiana woman who is disabled and trying to acquire assistance with housing programs from our Federal Government with an eviction looming from GMAC Mortgage. My husband and I taped an interview with "Action Reporter" Bill Capo from WWL-TV Channel 4 (New Orleans). On Thursday, June 16th, 2010, this feature aired on the 10:00 p.m. news. We purchased our home in 2003. We had just gotten married in 2002 and were celebrating my promotion to a lucrative management position. And we were excited about the next step--becoming homeowners. However, shortly after we purchased our home, I became ill and it wasn't very long before I just couldn't work anymore. My condition quickly degenerated and eventually, I became permanently disabled. As a direct result of my new disabled status, our mortgage note became increasingly harder to make. And within a few years, our payment became substantially more, due to increases in taxes and then, Hurricane Katrina. The losses to the local insurance industry had many premium carriers canceling policies and no new policies were being written. This forced many homeowners to turn to government insurance programs--at a much higher premium. Our monthly note was increased a couple of hundred dollars, and we had begun to feel the pinch. During 2009, we fell behind in our payments. Coincidentally, GMAC raised our monthly payment to a totally unobtainable number for us (twice the original monthly cost). This left no money for food or utilities. And then there was the increasing cost of my medications and the copays for doctor appointments. Every month we had to scramble to keep the utilities on and food on the table. Our church assisted whenever they could, but, in this floundering economy, tithing was down and there were many families in greater need that had children, and of course, they are the priority. Still, our church helped us with groceries whenever they could. Finally, we had to borrow $10,000 from my newly widowed mother to get us through these outrageous payments. The later part of 2009, I was in hospice care last year, and during this time my husband lost his job. As I was terminal, my husband kept how bleak our financial situation was from me. When my husband notified GMAC Mortgage about our hardship, they said they were sympathetic to our plight, and we had a couple of options. They could tack the amount we were behind to the back of our mortgage, raise our premium until we caught up, or submit us for a loan modification that our government was providing for folks like us to save their homes. To this end, my husband provided GMAC with our current financial information. My husband's mistake, however, was trusting in GMAC to follow through with any of their suggestions. I became painfully aware of our housing situation when the sheriff came to our door in January of this year with a foreclosure notice from our mortgage company, GMAC. Even with that, when my husband kept calling them, GMAC was always reassuring--that they didn't want the house back, that they were still in the process of submitting us. We kept in contact with GMAC throughout the next several months and the response was always the same--that GMAC hadn't heard back from any of the available programs. Again, our regret is trusting what GMAC said they would do. We were led to believe that one of GMAC's suggested options would remedy our situation, and would keep us in our home. We also contacted our mortgage company requesting the total amount that we were behind in our payments, and advised them that our church needed this information as they were offering to throw a fundraiser on our behalf and hopefully, at least get us caught up and current while seeking a loan modification. The sale of our home was set for April 28th, 2010. On the 27th, GMAC asked us to send some additional financial information. My husband scrambled around to fulfill their request, faxed 9 pages to GMAC, and then called to confirm that GMAC had received the information. The next day, we were told that we were "denied" by everyone and we lost our home. Our foreclosure took place on April 28, 2010, right after we celebrated our 8th wedding anniversary. About a week later, we received a letter from their attorney stating how much we owed in back payments for the church benefit...after they foreclosed. What happened to our "options"? I was a little suspicious, as GMAC certainly didn't have enough time (literally overnight) to submit us anywhere and receive a response. I repeatedly asked for the documentation of who they submitted us to and why we were denied, to no avail. I knew that our government had given GMAC a lot of our tax dollars. And, on April 13, 2009, GMAC Mortgage made a commitment to our government to participate in the Home Affordable Modification (HMP) Program and offer this option to their customers suffering from the effects of our economy and falling behind in their mortgage. GMAC Mortgage sent out hundreds of thousands of "financial packages" to their customers who were struggling with their mortgage payments and could benefit from this program. They even stated in their April 15th press release that if they hadn't heard back from those customers that received this financial package within 90 days, they reached out to them and contacted them personally. We never received one of these packets although they claim they sent it. In that same press release, GMAC Mortgage states "We want customers to contact us if they are behind or having difficulty keeping up with payments. The HMP Program offers borrowers more modification options than were previously available, so it is important for customers to reach out to us. It is critical that the customer quickly return the completed financial package and affidavit of hardship to us". And how is the mortgage modification faring? No so good. Only about 1/3 of the homeowners who have successfully completed the trial period of the mortgage modification program have been offered permanent relief. Yet, GMAC Mortgage has proudly stated in another of their press releases "Our foreclosure department is the most successful division". I'll bet. One day, I placed a call to GMAC's customer service and their representative "Mary" assisted us. With me on one phone and my husband on the other and a tape recorder running, Mary informed us that we were never submitted to anyone...so there was no denial! Conveniently, she did state that they had received the paperwork that we had faxed, but it was dated the 29th--the day after the foreclosure. We knew that we provided this on the 27th and objected--Why then did we receive a denial? Still, Mary insisted that "everything is in the computer...and there were no submissions or denials". We were devastated...and stunned. This presents a real problem for us. If GMAC had no intention of working with us, they should have informed us so we could pursue programs on our own. Instead of assisting my husband in a timely manner when he called about our hardship, when we were just 2 months behind in our mortgage payment, now, due to their stalling, we were seriously delinquent. And, because of this mortgage company's deception, we were denied the opportunity and right to apply for a loan modification program and possibly save our home. And then there was the issue of the other proposed "options"--what happened to these? Why were we not getting the same assistance that every other United States citizen was entitled to in these difficult economic times? And why were we any different than the thousands of others in our same situation that were sent this mysterious "financial package"? The Obama Administration has estimated that taxpayer losses on the GMAC bailout may be at least 6.3 billion. In theory, we are paying GMAC to discriminate against me. And the law is clear on treatment of disabled citizens--housing discrimination is unlawful whether it is deliberate and intentional or has the effect of having a greater of "disparate" impact on people in a protected group. GMAC Mortgage was fully aware years ago that I had become disabled and we had lost my income. Yet, even as we had fallen behind in the past due to our economic deficit, they had raised our mortgage payment to an unobtainable amount for us to "catch up". This left no money for food and utilities, and we were constantly "tap dancing as fast as we could" just to keep the lights on and food on the table. We are eternally grateful to our families, friends, and church for "supporting" us so we could exist...but was this living? And in this process, I was dying. Mortgage servicers have been warned about resisting the urge to collect delinquent payments up front and in the process, stretching their customers too thin. And HUD is imposing greater penalties on residential mortgage servicers that fail to offer loss mitigation options for federally insured mortgages--sometimes up to 3x the claim amount of the mortgage. It is estimated that the majority of foreclosures are fraudulent--why isn't America speaking up? Class action law suits don't really penalize big business enough to hit them hard enough in the pocketbook. However, if every American experiencing a fraudulent or illegal foreclosure would file a personal lawsuit against these crooks, believe me, they'd feel the "crunch"--almost as hard as they turned the screws to us. As I looked to our government for affordable housing for the disabled, I was told at the time that in the state of Louisiana, there were no housing programs for the non-elderly disabled (the fastest and largest growing group in our homeless population). There are programs for children (and there should be) and seniors (and there should be) and the developmentally disabled (and there should be), but nothing at that time in Louisiana for the non-elderly disabled. Many housing programs were not even taking applications due to their straining waiting lists. However, I did discover one local program being offered by a non-profit organization, but first I have to become homeless and then there is a waiting list. I have a hospital room setting in my home...where will my equipment go? Not accepting the lack of housing programs as fact, and with newly acquired cynicism after being lied to by our mortgage company, I turned to the internet. And lo and behold, I found a currently open federal program being offered from HUD titled "Rental Assistance for Non-Elderly Disabled Persons". However, for some unknown reason, the State of Louisiana didn't apply for this funding. Consequently, our federal government and state government have identified each other as the culprit and seem more concerned about shifting the blame instead of assisting me and listening to my concerns, and didn't even address the fact that I was being denied access to a federal program. The funny thing is, Mr. Capo the action reporter spoke with the attorney representing our mortgage company, GMAC. She confirmed that our home had been foreclosed on and we will soon be evicted. Mr. Capo asked what will happen to our home, will it be put up for sale? Her answer shocked him--our home is becoming a HUD home! He has suggested to all parties involved that we be allowed to stay put and has now reached out to HUD about this situation. The other day, I received a call from an office that is handling the transition from GMAC Mortgage to HUD. Unfortunately, there is a law that in order for HUD to take possession of our home, it needs to be vacant...huh? Mr. Capo wants to do a follow up interview and in the interim, asked me to keep fighting to get my voice heard and document my experience. The file I have kept is two inches thick. I hope to compile a booklet for advocacy groups with all the information I have logged since our foreclosure. I have carefully recorded every single person or agency that I have spoken with since that dark day in January when the sheriff came to the door. And besides the television exposure, this email was sent to everyone in my address book, asking for my story to be forwarded to everyone they know. And it was sent to any federal, state and local government offices, and every organization that I could find that deals with advocacy, disability issues, homelessness and consumer affairs. I also contacted our local media, as well as newspapers, magazines, talk shows and news programs nationally. In addition, I have filed formal complaints with the Better Business Bureau, The FHEO, The Federal Trade Commission, House Financial Services Committee, The Department of Justice Civil Rights/Disability Rights, the ACLU, the FDIC, Department of the Treasury, our Attorney General, the Subcommittee on Housing, the Office of Financial Institutions, and HUD,--just to name a few. I am touched by the messages of support from people I've never met and numerous advocates and organizations that really care about this country's disabled citizens. I've reached out to our President, and Kareem Dale, the President's Special Assistant on Disability Policy. I have not received a response. I volunteer one day a week at a nonprofit organization working with the severely disabled. Many of them live in group homes. It's difficult to have an "pity party" after spending one hour with these amazing people who give love unconditionally and are so joyously engaged in life. If nothing else, perhaps some good will come out of all this through my tenacity. With the knowledge that I've compiled in my journey, perhaps I can assist other disabled people. And just maybe, GMAC Mortgage and others will adapt a more sensitive approach and position towards the disabled. And maybe our government will enforce their own laws. I am not someone with any "pull", but I have a voice. And there are so many disabled Americans out there just like me that are frustrated with trying to stay healthy and not stressed while facing chronic illness and/or end of life issues. And some are too tired and sick and just give up after the first 5 "No's"--I've heard 55 "No's" and I'm not going away...at least on my own volition. GMAC Mortgage fully understood my terminal status. In light of their agreement with our government to offer modification programs, the least they could do is the minimum--we didn't even rate that. And GMAC also knew they were dealing with a legally disabled person that was terminally ill and would be put in harm's way by facing homelessness. My doctor has written a letter describing my condition and how important it is for me to have safe housing and as little stress as possible. I am not looking for special privileges--with what our citizens are facing economically in our country and with so many joining the homeless population for the first time. But I want an equal shot and the same rights as other people to affordable housing. Where is the heart? Where are ethics? Has our disposable society become so desensitized that people and their lives have so little meaning? And I know if they are doing this to me, that they are doing this to others. So I did a search online and was shocked by the numerous complaints filed by consumers against GMAC Mortgage. The sheer numbers will speak volumes regarding this mortgage company's business tactics. I've even read several stories that sounded very similar to our experience with GMAC. To date, we are existing on my disability payment of $800 a month--for both of us. Yet, we have been told on several occasions that we make "too much money" to qualify for Food Stamps or Medicaid. GMAC Mortgage's position regarding the events leading to our foreclosure changes depending on who you talk to. At first, according to GMAC, our financial information was submitted a day late. Now they are claiming that we never provided our financial information at all--which is it? I want to thank GMAC Mortgage and our government for making me so mad that I'm just too angry to die. I know realistically, I may not see any results that can help me and my husband, but maybe my legacy will be a catalyst for change and this won't happen to anyone else. But I wouldn't count on it. My husband is a seminary graduate. If GMAC will lie to a minister and his terminal wife, I guess no one is safe.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

JUDICIAL FORECLOSURE VS. NON JUDICIAL FORECLOSURE IN MISSOURI

MISSOURI Judicial Foreclosure. Conveyance is by warranty deed. Deeds of trust are the customary security instruments and allow private power of sale. The trustee must be named in the deed of trust and must be a Missouri resident. Foreclosure involves publication of a sale notice for 21 days, during which time the debtor may redeem the property or file a noteice of redemption. The foreclosure sale buyer receives a trustee’s deed. - Judicial Foreclosure Available: Yes - Non-Judicial Foreclosure Available: Yes - Primary Security Instruments: Deed of Trust, Mortgage - Timeline: Typically 60 days - Right of Redemption: Yes - Deficiency Judgments Allowed: No In Missouri, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process. Judicial Foreclosure The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder. Non-Judicial Foreclosure The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines". Power of Sale Foreclosure Guidelines If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the foreclosure may proceed as follows: A notice of sale must be mailed the borrower, at his last known address, at least twenty (20) days prior to the scheduled day of sale. The notice of sale must also be published in a newspaper within the county. The sale is conducted by the trustee at public auction for cash to the highest bidder. Anyone may bid, including the lender. If the lender is the winning bidder, the borrower has one year (12 months) to redeem the property. MONTANAConveyance is by warranty deed, corporate deed, or grant deed. Mortgages, deeds of trust, and unrecorded contacts of sale are the security instruments. Mortgages require judicial foreclosure, and there is a 6-12-rnonth redemption period following sale. Foreclosure on deeds of trust involves filing a notice of default and then holding a trustee sale 120 days later. - Judicial Foreclosure Available: Yes - Non-Judicial Foreclosure Available: Yes - Primary Security Instruments: Deed of Trust, Mortgage - Timeline: Typically 150 days - Right of Redemption: No - Deficiency Judgments Allowed: Varies In Montana, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process. Judicial Foreclosure In judicial foreclosure, a court decrees the amount of the borrowers debt and gives him or her a short time to pay. If the borrower fails to pay within that time, then the court will issue a notice of sale. Non-Judicial Foreclosure The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines". Power of Sale Foreclosure Guidelines If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows: A notice of sale must be recorded in the county where the property is located and then: 1) mailed, by registered or certified mail, to the borrower at his last known address at least 120 days before the foreclosure sale; 2) published once a week for three (3) successive weeks in a newspaper of general circulation in the county where the property is located; and 3) posted on the property at least twenty (20) days before the foreclosure sale. The notice must contain the time, date and place of sale, the borrowers, lenders and trustees name, a description of both the property and the default, and the book and page where the deed is recorded. The trustee must conduct the sale between the hours of 9:00 am and 4:00 pm at the courthouse in the county where the property is located. The property must be sold at public auction to the highest bidder. The sale may be postponed for up to fifteen (15) days by posting a notice at the time and place where the sale was originally scheduled. Lenders may not obtain a deficiency judgment against the borrower and the borrower has no rights of redemption.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

ROY COHN’S INFLUENCE ON DONALD TRUMP

They came together by chance one night at Le Club, a hangout for Manhattan’s rich and famous. Trump introduced himself to Cohn, who was sitting at a nearby table, and sought advice: How should he and his father respond to Justice Department allegations that their company had systematically discriminated against black people seeking housing? “My view is tell them to go to hell,” Cohn said, “and fight the thing in court.” It was October 1973 and the start of one of the most influential relationships of Trump’s career. Cohn soon represented Trump in legal battles, counseled him about his marriage and introduced Trump to New York power brokers, money men and socialites. Cohn also showed Trump how to exploit power and instill fear through a simple formula: attack, counterattack and never apologize. Since he announced his run for the White House a year ago, Trump has used such tactics more aggressively than any other candidate in recent memory, demeaning opponents, insulting minorities and women, and whipping up anger among his supporters. Cohn gained notoriety in the 1950s as Sen. Joseph McCarthy’s chief counsel and the brains behind his hunt for communist infiltrators. By the 1970s, Cohn maintained a powerful network in New York City, using his connections in the courts and City Hall to reward friends and punish those who crossed him. He routinely pulled strings in government for clients, funneled cash to politicians and cultivated relationships with influential figures, including FBI Director J. Edgar Hoover, mafia boss Anthony “Fat Tony” Salerno and a succession of city leaders. In the 1990s, a tragic character based on Cohn had a central place in Tony Kushner’s Pulitzer prize-winning play, “Angels in America: A Gay Fantasia on National Themes.” Trump prized Cohn’s reputation for aggression. According to a New York Times profile a quarter-century ago, when frustrated by an adversary, Trump would pull out a photograph of Cohn and ask, “Would you rather deal with him?” Trump remained friends with him even after the lawyer was disbarred in New York for ethical lapses. Cohn died in 1986. This story is based on reporting for “Trump Revealed,” a broad, comprehensive examination of the life of the presumptive Republican nominee for president. The biography, written by Post reporters Michael Kranish and Marc Fisher in a collaboration with more than two dozen Post reporters, researchers and editors, is scheduled to be published by Scribner on Aug. 23. “Roy had a whole crazy deal going, but Roy was a really smart guy who liked me and did a great job for me on different things,” Trump recently told The Washington Post. “And he was a tough lawyer, and that’s what I wanted. Roy was a very tough guy.” To examine the relationship between Trump and Cohn, The Post reviewed court records, books about the men and newspaper and magazine stories from the era, along with documents about Cohn obtained from the FBI through a Freedom of Information Act request. The Post interviewed Trump and others who knew both men. When they met, Trump, 27, tall and handsome, was at the start of his career and living off money he was earning in the family business. Cohn, 46, short and off-putting, was near the peak of his power and considered by some to be among the most reviled Americans in the 20th century. Cohn could be charismatic and witty, and he hosted lavish parties that included politicians, celebrities and journalists. A wall at the Upper East Side townhouse where he lived and worked was filled with signed photographs of luminaries such as Hoover and Richard Nixon. Alan Dershowitz, a professor emeritus at Harvard Law School and a renowned constitutional scholar, said he was surprised when he finally got to know Cohn. “I expected to hate him, but I did not,” Dershowitz told The Post. “I found him charming.” There were legions of Cohn detractors. “He was a source of great evil in this society,” Victor A. Kovner, a Democratic activist in New York City and First Amendment lawyer, told The Post. “He was a vicious, Red-baiting source of sweeping wrongdoing.” In interviews with The Post, Trump maintained that Cohn was merely his attorney, stressing that he was only one of many of Cohn’s clients in New York. Trump also played down the influence of Cohn on his aggressive tactics and rhetoric, saying: “I don’t think I got that from Roy at all. I think I’ve had a natural instinct for that.” Trump said he goes on the offensive only to defend himself. “I don’t feel I insult people. I don’t feel I insult people. I try and get to the facts and I don’t feel I insult people,” he said. “Now, if I’m insulted I will counterattack, or if something is unfair I will counterattack, but I don’t feel like I insult people. I don’t want to do that. But if I’m attacked, I will counterattack.” Journalists and contemporaries of both men, including a close political ally of Trump, said there was more to the relationship than Trump now acknowledges. Cohn himself once said he was “not only Donald’s lawyer but also one of his close friends.” Roger Stone, a political operative who met Trump through Cohn, said their association was grounded in business, but he also described the lawyer as “like a cultural guide to Manhattan” for Trump into the worlds of celebrity and power. “Roy was more than his personal lawyer,” Stone told The Post. “And, of course, Trump was a trophy client for Roy.” Investigative reporter Wayne Barrett, who spent dozens of hours interviewing Cohn and Trump beginning in the 1970s, once wrote in “Trump: The Deals and the Downfall” that Cohn began to “assume a role in Donald’s life far transcending that of a lawyer. He became Donald’s mentor, his constant adviser.” Barrett now says Cohn’s stamp on Trump is obvious. “I just look at him and see Roy,” Barrett said in an interview. “Both of them are attack dogs.” Cohn and McCarthy Roy Cohn was born in New York City in 1927, into an affluent Jewish family. His father, Albert C. Cohn, was a longtime member of New York’s Democratic machine and a State Supreme Court and appellate division judge. Roy Cohn attended elite prep schools and graduated from Columbia Law School at age 20. Through his father’s connections, Cohn landed a job with the U.S. Attorney’s Office in Manhattan. In the spring of 1949, Cohn was asked to write a memo about a man named Alger Hiss, a State Department official suspected of spying for the Soviet Union. Cohn soon came to believe that the Soviets had many spies inside the U.S. government. In 1950, Cohn at age 23 was the lead prosecutor in what became known as the Atom Spy Case. A Jewish couple named Julius and Ethel Rosenberg were accused of conspiracy to commit espionage for the Soviet Union. After the two were convicted of passing atomic secrets to the Soviets, the judge left the courtroom and called Cohn from a phone booth on Park Avenue. As Cohn later wrote, the judge wanted “to ask my advice on whether he ought to give the death penalty to Ethel Rosenberg.” “The way I see it is that she’s worse than Julius,” Cohn told the judge, according to his autobiography. Both Julius and Ethel Rosenberg were executed in an electric chair. In 1953, Cohn joined Sen. Joseph McCarthy (R-Wis.) as chief counsel to the Senate’s Permanent Subcommittee on Investigations. McCarthy had exploded into public view three years earlier when he claimed that he had a list of 205 State Department employees who were members of the Communist Party. McCarthy launched a series of sensational hearings about the communist threat in the United States, calling on scores of professors, Hollywood writers, government employees and others to answer questions about their alleged ties to the party. Blacklists were created and careers ruined. Cohn and McCarthy soon faced a backlash. In early 1954, the permanent subcommittee held the Army-McCarthy hearings, in part to determine whether Cohn sought special treatment for an enlisted friend. McCarthy objected to tough questioning of Cohn and attacked the reputation of a young associate in the firm of the Army’s lawyer. That spurred the lawyer to ask the now-famous question that underscored growing doubts about McCarthy’s ethics: “Have you no sense of decency, sir?” Cohn left Washington in 1954 as McCarthy’s efforts lost momentum. He professed admiration for McCarthy to the end of his life. “I never worked for a better man or a greater cause,” he wrote in his autobiography. Settling back in New York, Cohn tapped his connections as he began building a private legal practice, documents show. Cohn often operated in the gray areas of the law. In the 1960s and early 1970s, he fought off four federal or state indictments for alleged extortion, bribery, conspiracy, perjury and banking violations. At the same time, he avoided paying state and federal income taxes and engaged in a variety of schemes to take advantage of wealthy clients, court records show. Cohn’s brazenness seemed limitless. In 1969, while facing his third federal indictment, he wrote a confidential letter to Hoover, the FBI director. Cohn included affidavits, legal motions, news articles and other material outlining his defense. “When I started fighting Communism as a young voice in the wilderness of the Justice Department, I suppose I realized that those who did not like what I was doing would be after me for a long time,” Cohn wrote on Sept. 8, 1969, according to documents obtained by The Post. “You are such a great institution up and down this nation, that I hate to see you diverted or annoyed for even a minute — thus my sense of deep regret.” Hoover wrote back eight days later: “Your generous comments regarding me are indeed gratifying.” In October 1973, when Trump and Cohn first met at Le Club, the lawyer was instantly recognizable, with piercing blue eyes, heavy eyelids and a perpetual tan. James D. Zirin, a New York lawyer who later wrote about Cohn, recalled him as “the strangest-looking man I ever met,” with a face “contorted in a perpetual ugly sneer that seemed to project an air of unbridled malevolence.” Trump, not yet a household name, knew about Cohn’s reputation as a legal knife fighter. At the time, Trump and his father, Fred, were facing Justice Department allegations that they had systematically discriminated against black people at their family-owned or -managed apartment complexes across New York City. Cohn agreed to represent the Trumps — his way. That meant hitting back hard while shaping public opinion. On Dec. 12, 1973, Donald Trump, his father and Cohn called a news conference at the New York Hilton hotel. They said they were suing the government for $100 million in damages relating to the Justice Department’s “irresponsible and baseless” allegations. Cohn went further in an affidavit, saying the government was really trying to force “subservience to the Welfare Department,” according to court records. A federal judge dismissed the countersuit. And two years later, after a string of theatrics and unfounded allegations by Cohn — including the claim that a Jewish prosecutor had used Nazi Gestapo tactics — Donald and Fred Trump settled the case without admitting guilt. They signed a consent decree prohibiting them from “discriminating against any person in the terms, conditions, or privileges of sale or rental of a dwelling.” Following Cohn’s lead, Donald Trump declared victory. Trump’s counsel Cohn began advising Trump on major real estate deals and other matters. Trump once said that Cohn represented him in two libel cases against journalists. Although Trump said the legal work cost $100,000, he said it was worth the money because “I’ve broken one writer,” according to a statement he once gave to Barrett, who was a veteran investigative reporter for the Village Voice. Trump did not name the writer. Trump told The Post he did not recall making the statement. Though he said he has not read it, he described Barrett’s book as “total fiction.” Cohn often provided counsel for free, collecting money when he needed it. That included help on Trump’s personal matters, such as his marriage to Ivana Zelnickova in 1977. She was a model in Canada who claimed to be a former member of the Czech national ski team. After they had dated for months, Trump rented a two-bedroom apartment on Fifth Avenue and began making arrangements for their wedding. Cohn urged Trump to create a prenuptial agreement. Ivana balked when she learned what Cohn included in the document. His proposal called on her to return any gifts from Trump in the event of a divorce. In response to her fury, Cohn added language that allowed her to keep her own clothing and any gifts. With Trump’s consent, he also included a “rainy day” certificate of deposit worth $100,000. She would be allowed to begin tapping that fund one month after the wedding, according to Barrett’s book. During one of the negotiating sessions, held at Cohn’s townhouse office, the lawyer wore a bathrobe. The townhouse, in a tony neighborhood on East 68th Street, was central to Cohn’s operations. It was his in every way except on paper. It was held in the name of his law firm, Saxe Bacon & Bolan. He maintained an office and personal quarters and routinely hosted caviar-and-champagne parties there. Even though he lived a lavish life, Cohn claimed he had little taxable income or assets. Over the years, he routinely vacationed with clients on the Greek island of Mykonos or in the south of France on the yacht of a British investor. He said his extravagant expenses were work-related. That included A-list parties he threw at his home. Cohn was open about his loathing of the Internal Revenue Service. “The firm pays the expenses I incur in developing and seeing through law business. My arrangement leaves enough income for me to take care of personal living expenses and current taxes,” he wrote in 1981 in “How to Stand Up for Your Rights and Win!,” adding that he bought a house in Connecticut because “I got tired of supporting our welfare and food stamp programs” in New York. As Cohn helped arrange Trump’s marital circumstances, he also helped the 30-year-old would-be tycoon gain access to Manhattan’s drug-fueled disco scene. Trump maintained a reputation as a strait-laced teetotaler, but he loved to be in the mix late at night, especially among beautiful women, according to his own accounts. In April 1977, Trump and Ivana went to the opening night of a club called Studio 54. The owners were impresarios named Steve Rubell and Ian Schrager, and their lawyer was Roy Cohn. The city had never seen anything quite like Studio 54, a freewheeling club that offered up celebrity, glitter and debauchery. It attracted city leaders, Hollywood stars and a technicolor cross section of other straight, gay and bisexual partyers. Trump was a regular at the club. “I’d go there a lot with dates and with friends, and with lots of people,” Trump said in an interview. “Roy would always make it very comfortable.” Cohn was not only the club’s lawyer but also the gatekeeper for rich and famous out-of-towners who wanted in. Sometimes he simply partied, surrounded by groups of young men. Cohn maintained a public veneer that he was heterosexual. His friends knew better. Sidney Zion, a journalist who helped Cohn write his autobiography, described him as “the Babe Ruth of the Gay World.” But when gay rights activists once asked him to represent a teacher fired for being homosexual, Cohn refused. He told the activists: “I believe homosexual teachers are a grave threat to our children, they have no business polluting the schools of America,” Cohn and Zion wrote in “The Autobiography of Roy Cohn.” Cohn also lobbied against gay rights legislation in New York City. He once called a law’s sponsor on the City Council and offered a profane warning: “You’ve got to get off this fag stuff, it’s very harmful to the city and it’s going to hurt you,” Cohn said in a phone call that Zion overheard. “These f----ing fags are no good, forget about them.” Studio 54 changed hands in 1980 after Rubell and Schrager pleaded guilty to tax evasion. They each spent 13 months in prison. Rubell died in 1989, and Schrager became a well-known entrepreneur and hotelier in New York, Miami Beach, London and elsewhere. “What went on in Studio 54 will never, ever happen again,” Trump told writer Timothy O’Brien. “First of all, you didn’t have AIDS. You didn’t have the problems you do have now. I saw things happening there that to this day I have never seen again. I would watch supermodels getting screwed, well-known supermodels getting screwed on a bench in the middle of the room. There were seven of them and each one was getting screwed by a different guy. This was in the middle of the room. Stuff that couldn’t happen today because of problems of death.” Studio 54 owners Ian Schrager, left, and Steve Rubell, right, with their attorney, Roy Cohn, at a "going away" party at the disco in 1980. The next day Schrager and Rubell would begin serving prison sentences for tax evasion. (Bettmann Archive) Connections Cohn kept company with a remarkable array of people. Stone, the political adviser for Trump and others, tells vivid stories, sometimes with varying details, about the first time he met Cohn. It was 1979, and Stone was calling on Cohn for political support and contributions on behalf of Ronald Reagan, then ramping up a presidential campaign. Stone stood for some time in the townhouse’s waiting room. When Stone was finally admitted, Cohn was sitting at a dining-room table, in a silk bathrobe, Stone told The Post. On the table were three strips of bacon and a square of cream cheese. Cohn ate the food with his fingers. Sitting at the table was a heavyset man. “Mr. Stone, I want you to meet Tony Salerno,” Cohn said. There Stone was, standing before the future boss of the Genovese crime family. “So Roy says we’re going with Reagan this time,” Salerno said. Cohn and Salerno listened to Stone’s pitch. Then Cohn recommended that Stone reach out to Trump. “You need to meet Donald and his father,” Cohn said, as Stone recalls it now. “They’d be perfect for this. Let me set you up a meeting.” After his election, Reagan wrote Cohn, a registered Democrat, a warm note of thanks for his support. The two men became close, Trump said. Cohn tapped into the Reagan administration network on Trump’s behalf a short time later, according to a New York Times account. At Trump’s request, Cohn lobbied Edwin Meese III, a senior White House aide, to secure an appointment for Trump’s sister Maryanne Barry, an experienced federal prosecutor in New Jersey, to the U.S. District Court. Trump declined to discuss the matter. “I’m proud of my sister. She’s done a great job,” Trump said in an interview. “I just don’t comment on that.” Trump marveled at Cohn’s connections and the parties he hosted, including a birthday party for himself each year. “Now Roy would have parties and, I’ll tell you what, some of the most important people in New York would go to those parties,” Trump told The Post. Over the years, the list of his friends and guests included Norman Mailer, Bianca Jagger, Barbara Walters, William F. Buckley Jr., George Steinbrenner, former New York mayor Abraham D. Beame and many others, some of them Cohn clients. “Every famous client made him famous and none more so than Donald Trump,” wrote Nicholas von Hoffman in “Citizen Cohn: The Life and Times of Roy Cohn.” “The Trump-Roy relationship was that mixture of business and social which Roy sought.” Cohn and some of his party guests always seemed to be under indictment at the time of the parties, according to Edward Kosner, former editor and publisher of New York magazine. Kosner told The Post that Borscht Belt comedian Joey Adams once elicited laughter with the quip, “If you’re indicted, you’re invited.” Dershowitz, of Harvard Law School, said Cohn was an unavoidable force. “When Roy Cohn was at the height of his power,” Dershowitz said, “nobody did anything in New York politics, in New York real estate, without going through Roy Cohn.” One of Trump’s early ambitious real estate ventures was Trump Tower, a concrete-and-glass skyscraper on Fifth Avenue. Starting in 1978, Trump began moving to acquire the site between East 56th and East 57th streets and, with Cohn’s help, strengthening his ties to the city leaders and others who would decide the project’s fate. Their efforts included a stream of campaign contributions by both men to public officials. Cohn had no scruples about such giving. He felt campaign finance restrictions were unnecessary and claimed that, in a New York hotel room, he once gave Nixon an envelope containing $5,000 cash to support a run for the White House. “I’m hardly one of those Boy Scouts who run around promoting phony ethics laws and rules regarding money and politics,” Cohn wrote in his autobiography. Trump became a generous campaign contributor himself. He eventually gave $150,000 in just one year to local candidates in New York. State officials later said Trump had “circumvented” state limits on individual and corporate contributions by spreading out payments through Trump subsidiaries, but they did not formally accuse Trump of wrongdoing. Testifying under oath about his giving, Trump said, “Well, my attorneys basically said that this was a proper way of doing it.” A state organization formed to investigate New York City’s construction industry concluded that “developers and contractors cultivate and seek favors from public officials at all levels.” The report cited Trump and his large campaign contributions. To thrive in this milieu, Trump also had to work with unions and companies known to be controlled by New York’s ruling mafia families, which had infiltrated the construction industry, according to court records, federal task force reports and newspaper accounts. Cohn represented some of the mafia figures who had sway over Trump projects. S&A Concrete, which supplied building material for the Trump Plaza on Manhattan’s East Side, was owned in part by Salerno, the Genovese family mobster and Cohn client, court records show. Mob-friendly labor leaders dominated local construction unions. At the head of Teamsters Local 282 was John Cody. A House of Representatives investigation found he “was universally acknowledged to be the most significant labor racketeer preying on the construction industry in New York.” Without Cody’s support, projects were liable to stall. Cody claimed Cohn as a friend. Cody also said he worked with Trump — with Cohn serving as intermediary. “I knew Trump quite well,” Cody told Barrett. “Donald liked to deal with me through Roy Cohn.” In 1980, the federal Organized Crime Strike Force subpoenaed Trump to discuss whether Cody had offered Trump labor peace in exchange for an apartment in Trump Tower, according to Barrett’s “Trump: The Deals and the Downfall.” Trump denied the allegation, telling The Post it was “ridiculous.” “Cody was a bad guy, and I didn’t deal with him almost at all because I knew the kind of guy he was,” Trump said. “He was a very bad cookie.” In the early 1980s, the FBI and New York authorities carried out a sweeping investigation of the five New York crime families. Investigators relied on informants, court-authorized wiretaps and eavesdropping gear. They gathered hundreds of hours of conversations proving the mob’s reach into the construction industry. Cohn’s office fell under surveillance. Trump was not implicated. In early 1985, Cohn wrote to FBI Director William H. Webster, irate at a newspaper report suggesting that investigators in the case had been surveilling his office. “Since 1950 — the year I prosecuted the Rosenberg atom-spy trial at age 23 with the magnificent investigative help of the Bureau, up to the present, 34 years later, I have had a first-rate relationship with and respect for the Bureau,” Cohn wrote on March 11, 1985, according to documents obtained by The Post. A confidential internal FBI memo the next month offered more detail: Field agents had conducted surveillance of Cohn’s office, with the aim of “installing a monitoring device to intercept the conversations of Genovese Boss Anthony Salerno,” who apparently was using Cohn’s office for his own business. The next year, Salerno and 14 others were indicted on an array of criminal charges, including conspiracy, extortion and “infiltration of ostensibly legitimate businesses involved in selling ready-mix concrete in New York City,” the federal indictment said. One of Trump’s projects was mentioned in the indictment. Salerno and others eventually went to prison on federal charges including racketeering and bid-rigging. ‘He could be a nasty guy’ Cohn was fond of saying that winning was not sufficient. People had to know about it. That included when he barely avoided disaster, which he managed to do for most of his adult life. Starting as far back as 1963, Cohn was indicted and acquitted three times of federal charges of bribery, perjury and conspiracy. He was also charged with violating banking laws in Illinois, but the charges were later dropped. Cohn also fended off repeated allegations of ethical lapses as a lawyer and was a constant target of the IRS, which eventually determined he owed the government some $7 million. Cohn turned his troubles into news. He loved the attention the tabloids and magazines gave him, and he socialized with some of their owners, including Rupert Murdoch. Cohn catered to certain reporters and gossip columnists, sharing scoops and rumors. “Roy understood the value of the tabloids,” Stone said in an interview. “He did business at this dining-room table in the dining room at his brownstone. He would call reporters and dictate their copy with you sitting there. He would just dictate it.” Esquire magazine once dubbed Cohn “the legal executioner.” Though the story presented a catalogue of nasty allegations against him, Cohn bought a bundle of the magazines to hand out to friends and clients. “All this has done me a lot of good,” Cohn said, according to writer Ken Auletta. “I’d be a liar if I denied it. It has given me a reputation for being tough, a reputation for being a winner.” Cohn had his setbacks. Zion wrote that Cohn had personally chartered a 747 for a group of male friends to travel to Europe. The group trashed the plane, and Cohn never paid the charter bill. The airline sued Cohn successfully but could not get any money from him. An executive aware of the close ties between Trump and Cohn called Trump to see whether he would pay. Trump declined. “I felt for the poor bastard because Roy just wiped out that plane,” Trump told Zion about the episode. “But what was I supposed to do? Hey, it was Roy — what’s anybody supposed to do?” Trump knew Cohn had a shady side, saying “he could be a nasty guy.” “I don’t kid myself about Roy. He was no Boy Scout,” Trump wrote in “Trump: The Art of the Deal.” “He once told me that he’d spent more than two thirds of his adult life under indictment for one charge or another. That amazed me. I said to him, ‘Roy, just tell me one thing. Did you really do all that stuff?’ He looked at me and smiled. ‘What the hell do you think?’ he said. I never really knew.” In the fall of 1984, Cohn became ill. A year later, he started treatment at the Clinical Center at the National Institutes of Health in Bethesda, Md. He maintained that he had liver cancer. But he was suffering from the effects of the HIV virus. As he struggled to stay alive, Trump pulled back from his friend for a spell. Cohn was thrown off balance by this apparent betrayal. “I can’t believe he’s doing this to me,” Cohn said, according to Barrett’s account. “Donald pisses ice water.” Cohn’s behavior as a lawyer caught up to him now. The appellate division of New York’s Supreme Court moved on long-standing charges of misconduct. “Simply stated the four charges involved alleged dishonesty, fraud, deceit and misrepresentation,” the court said. Those allegations involved a series of incidents that began years before Cohn met Trump and continued throughout the time of their relationship. In one case, a client of Cohn’s was in the hospital after suffering a debilitating stroke. Cohn visited the man, who was barely conscious. Cohn later claimed his client, during that visit, made him a trustee to his will. The man could not move. A nurse witnessed Cohn guiding his hand to complete the man’s signature on a legal document. A judge later refused to honor the document. Before the appellate division made its ruling in 1986, a host of prominent people testified to Cohn’s good character. Among them was Trump, who had resumed his visits to Cohn and that spring had invited him to his Mar-a-Lago estate in Florida. Cohn questioned the fairness and competence of those who accused him of misconduct, telling reporters the bar’s disciplinary panel was “a bunch of yo-yos . . . just out to smear me up.” On June 23, 1986, Cohn was disbarred. “For an attorney practicing for nearly 40 years in this State, such misconduct is inexcusable, notwithstanding an impressive array of character witnesses who testified in mitigation,” the court said. Trump told The Post that if Cohn had not been so weakened, he “would have been able to fight that off.” Cohn died six weeks later, on Aug. 2, 1986. He was 59. His friends held a memorial service for him. Trump stood silently in the back. Zion, the journalist, wrote that Cohn was misunderstood by his critics: “What curdled their blood with Cohn was his headline-hunting, his gunslinger style, his contempt for the niceties, his contempt for them.” One year after his death, Trump professed admiration for Cohn. “Tough as he was, Roy had a lot of friends,” Trump wrote in “The Art of the Deal,” “and I’m not embarrassed to say I was one.” Trump remains fond of Cohn today. “I actually got a kick out of him,” Trump recalled in his recent interview with The Post. “Some people didn’t like him, and some people were offended by him. I mean, they would literally leave a dinner. I had one evening where three or four people got up from a table and left the table because they couldn’t stand the mention of his name.” “But with all of that being said, he did a very good job for me as a lawyer,” Trump said. “I get a kick out of winning, and Roy would

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

IS AN ATTORNEY REQUIRED FOR A REAL ESTATE TRANSACTION?

The process of buying or selling your home is quite complex, so you’re fortunate to have a real estate professional to guide you through some of the process. However, in some states, you’re required to have an attorney complete the real estate closing transaction; in some jurisdictions, you need a lawyer to be involved with preparation and execution of the documents. And regardless of where you live, there are a variety of reasons you might want to consider retaining lawyer to represent your interests in the closing. Here’s some general information to give you some background on the process. States Where an Attorney is Required for a Real Estate Closing: Several states have laws on the books mandating the physical presence of an attorney or other types of involvement at real estate closings, including: Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and West Virginia. This list is subject to change based on newly passed legislation, so you should speak with your real estate professional for exact requirements. In addition to a lawyer, you’ll likely need to retain the services of a notary public because the transaction involves real estate. Many attorneys have notary commissions or have a notary public on staff, so check with your agent to see if you need to hire one. Involvement of Non-Attorney Consultants & Other Entities: Many states not listed above do regulate real estate closings as they pertain to the participation of non-legal professionals. One or more of the following individuals/entities may be involved in the transaction: Title Company or Agent: This entity is responsible for ensuring that the deed you receive as a buyer has no defects which might indicate that someone else has an interest in the property. The title company or agent does an examination of the chain of title as the real estate has changed hands over time. This person will uncover any mortgages, liens, judgments or unpaid taxes that may need to be corrected in order to deliver “clean” title to a buyer. Escrow Company or Agent: During the real estate closing, there may be an escrow company or agent who has the fiduciary responsibility to handle the transfer of real estate from the seller to the buyer. The agent collects all documents from each party and makes sure that all provisions are complied with by seller and buyer. In a sense, this person represents both parties to the real estate closing. Lender: In some states, it’s possible for the homeowner’s lender to handle a real estate closing. Real Estate Agent/Broker: The seller’s real estate agent may also conduct the closing in some states. Here, it’s important for both parties to note that the agent represents the seller and doesn’t act on behalf of the buyer. Notary Public: While a notary public wouldn’t necessarily handle the close, the presence of a notary service is necessary in most states to witness the execution of all documents. Reasons to Consider a Lawyer to Represent You in a Real Estate Closing: Even if not required in your state, you may want to retain an attorney to act on your behalf in a real estate closing. These professionals can prepare or review all documents and ensure that your rights in the transaction are adequately protected. If any legal issues arise during the process, your attorney can answer any questions or address any issues related to the terms and conditions of the closing documents. The requirements of a real estate closing, such as preparation, execution and notarization of documents, can be difficult to understand if you don’t have a legal or real estate background. Plus, in the handful of states where an attorney is required to complete a closing, you don’t have a choice on how to proceed. It’s smart to consult with professionals to help guide you and answer any questions you may

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

5 WAYS TO LEAVE YOUR HOUSE TO YOUR CHILDREN TAX FREE

5 Ways to Give Your Home to Your Children Tax-Free Before the days of estate taxes, children simply moved into the family home and took over the master bedroom after their parents died. Unfortunately, it’s not that easy anymore. There are several ways to give a home to your child. And a few are tax-free. But in order for the transaction to work properly, you’ve got to plan ahead. Here are five ways to transfer your home to your children while minimizing tax consequences. 1. Stay Put If you plan to live in your home until you die, and your estate is below the unified federal estate gift and estate tax exemption amount ($5.43 million for 2015), this is your best strategy. When you die, your home’s tax basis will be stepped up to fair market value. So you and your heirs will escape capital gains tax on your home’s appreciation. And, because the value of your estate is below the estate tax exemption, your heirs will owe no federal estate tax. They are free to move into the house, or sell it and keep the cash while owing little or no tax to the feds (thanks to the basis step-up rule). If they do move into the house, their tax basis for calculating the gain or loss on subsequent sales will be the home’s fair market value at the time of your death. This is a much better strategy than gifting your house to heirs while you continue living there. Why? Even if you pay a market-rate rent to your child, the IRS might argue the home’s full date-of-death value still belongs in your taxable estate. The only sure way around this problem is with a qualified personal residence trust, which is explained later in this story. (MORE: Don't Miss These 2014 Tax Breaks) 2. Give It to Your Kids If you are moving out of your home, you can give the property to your child today. However, you will probably have to dip into your unified federal gift and estate tax exemption ($5.43 million for 2015). Here’s how it works. First, offset the amount of the gift by using your $14,000 annual gift-tax exclusion. Remember it is $14,000 per donor. So if you and your spouse each make a gift to both your child and his spouse, you can offset $56,000 of the home’s value (4 x $14,000). Then, as long as the net figure is less than $5.43 million, you won’t owe any current gift tax (unless you made very substantial gifts earlier that used up part of your exemption). (MORE: What You Should Know About the Grandparents Tax) There are two drawbacks to this strategy. First, your child’s tax basis on the home will be your presumably low cost for the property, which increases the odds he or she will owe capital gains tax on a later sale. Second, you’ve whittled down your unified federal gift and estate tax exemption (the exemption is reduced dollar for dollar by gifts in excess of the $14,000 annual exclusion amount). On the plus side, you at least get any future appreciation in the home’s value out of your taxable estate. 2. Sell It to Your Kids at a Bargain Price If you sell a home to a perfect stranger for less than fair market value (FMV), you’ve simply made a bad deal. The IRS doesn’t care. When you sell to a relative, however, it’s a different story. You will be treated as making a gift equal to the difference between FMV and the sale price. For example, if your house is worth $400,000 and you sell it to your child for $250,000, you just made a gift of $150,000. Of course, you can use your $14,000 annual gift exclusion to whittle this down. The net amount of the gift then goes against your unified federal gift and estate tax exemption ($5.43 million for 2015). However, that’s OK if the property is expected to appreciate, because the sale successfully removes all future appreciation from your taxable estate. (MORE: When You Inherit Your Parent's House) For income tax purposes, you subtract your tax basis in the home from the $250,000 sale price to calculate your gain or loss. Any loss is nondeductible. If you have a gain, it’s probably eligible for the $250,000 (for singles) or $500,000 (for married couples) home sale gain exclusion. However, your child’s tax basis in the home will be only $250,000, which increases the likelihood that he will owe capital gains tax on a later sale. 3. Sell It to Your Kids at Full-Price Instead of making a bargain sale, consider making an installment sale for full market value instead. As you will see, this can still meet your primary objective of transferring the home to your child in a way he or she can afford — probably with better tax consequences. Here’s the deal. You sell the property to your son or daughter for a relatively small down payment and carry a note for the balance of the purchase price. Let’s again say the house is worth $400,000 and your child can afford to pay $40,000 down. So you take back a note for $360,000. Make sure it’s a written note. Also, it definitely helps your case if the child has the wherewithal to make the monthly payments. Speaking of payments: You should charge at least the applicable federal rate (or AFR) on the loan. That rate, which changes monthly and is almost always well below the average commercial mortgage rate, is available in monthly Internal Revenue Bulletins. You can find them on the website at www.irs.gov. Make sure to go through the legal process of securing the note with the house. That way, your child can deduct the interest payments to you as qualified mortgage interest. If you fail to take this step, the interest payments are nondeductible. You can then help ease your child’s financial burden by making gifts under the annual $14,000 gift-tax exclusion rule. Just make sure your child actually makes all the payments on the note. Then write checks for any gifts you decide to make. That keeps the sale, the note and the gifts separate. If you simply forgive some of the payments, the IRS may recast the entire arrangement as a bargain sale (with the less-desirable tax consequences explained earlier). Income-tax-wise, you are treated as making a sale for $400,000. Assuming you qualify for the $250,000/$500,000 exclusion, you will hopefully be able to dodge any federal capital gains tax. You will however owe income tax on your interest income from the note. But remember, your child will get an equal mortgage interest deduction, and the whole idea was to help the kid out. Your child’s tax basis on the property is now the full $400,000 purchase price, which reduces the chance he or she will owe any capital gains tax when the home is eventually sold again. As far as the gift tax is concerned, you are in the clear. Estate-tax-wise, the sale removes from your taxable estate any future appreciation in the value of the home. A few years after the sale, your child may be able to refinance and pay off the note. If so, your generosity comes to an end with no further tax implications. However, if there’s still a balance due when you die, your child will be treated as receiving a bequest if the note is forgiven at that point. Of course, this uses up part of your estate-tax exemption, but you already know you can’t take that with you. 4. Sell it to Your Kids and Rent it Back Unfortunately, the IRS gets cranky when you transfer your home to a relative and then continue to live there. So tread carefully if this is your intention. One strategy is to make a seller-financed full market value sale to your child, as explained above, and then rent the property back at the market rate. In a perfect world, this would remove the home’s future appreciation from your taxable estate and you could shelter all or part of your gain with the $250,000 (for singles) or $500,000 (for married couples) home sale exclusion. The rental payments to your child could, in effect, finance at least part of the cost of buying the home. The payments would be nondeductible to you and taxable income to your child. But he or she could claim rental property depreciation write-offs, opening up the possibility of noncash deductible losses each year. In fact, all these nice tax outcomes should be possible — if you sell the home for FMV and pay market-level rent afterward. If you sell for less or pay below-market rent, an obscure tax code provision could include the full date-of-death value of the home in your taxable estate. Why? Because you are considered to still own the home since you never completely gave up “possession and enjoyment” of the property. Also, paying below-market rent will preclude any deductible rental losses for your child. The bottom line: If you want to transfer ownership to your child but stay put, make sure you make a FMV sale (as opposed to any gift or bargain sale arrangement). Then be sure to pay market-level rent. You can still make $14,000 annual tax-free gifts to help your child out. However, keep these acts of generosity separate from your dealings regarding the sale or rental of the house. In other words, don’t forgive payments on your seller-financed note and don’t include gifts in your rent checks. 5. Use a Qualified Personal Residence Trust There is one way you can make an IRS-approved gift of your home while still living there. That is with a qualified personal residence trust (or QPRT). Using a QPRT potentially allows you to get the residence out of your taxable estate without moving out — even though you haven't made a full FMV sale to your child. But there are heavy risks involved. Here’s how a QPRT works. Say a retired doctor in Florida wants to give his $1 million beachfront home to his two daughters. This strategy would require the doctor to put his home into an irrevocable trust for several years, while he continues to live in it. Through a complex IRS calculation based on interest rates, the length of the trust and his age, the IRS values his right to live in the house at, say, $600,000. For the purposes of his taxable estate, that knocks the value of his house down to just $400,000 — regardless of how much the house appreciates in the meantime. (That $400,000, though, comes out of the doctor’s federal gift- and estate-tax exemptions.) When the trust is up after the stipulated number of years, if he chooses to continue living there, he can pay his daughters rent, further reducing the size of his taxable estate. Of course, if you have a poor relationship with your kids, you might find yourself out on the street. And there is a tax catch to this kind of trust: You have to outlive it. If you die before the term of the trust expires, the full date-of-death value of the house is included in your taxable estate and your heirs receive no estate tax

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

2019 COMMERCIAL REAL ESTATE FORECAST

18 Commercial Real Estate Trends To Dominate In 2019 National December 11, 2018 Champaign Williams, National Editor Want to get a jump-start on upcoming deals? Meet the major players at one of our upcoming national events! Goodbye 2018, hello 2019! As the new year approaches, Bisnow spoke with several industry execs, researchers and economists to uncover the major trends expected to dominate the commercial real estate industry in the coming year. From the rise of opportunity zones to a slowdown in industrial absorption, these are 18 trends experts forecast for 2019. Pixabay 1. Opportunity Zones Craze To Persist As investors await finalized guidance from the Department of the Treasury and the IRS regarding the Opportunity Zone program, the hunt is on for assets and investment opportunities in these designated areas that present the strongest upside potential. Investors are lining up to pour billions into Opportunity Zone Funds, with a report from Real Capital Analytics stating there is more than $6 trillion in unrealized capital gains eligible to be deployed into opportunity zones. While the program was created through the passing of the Tax Cuts and Jobs Act last year to drive economic development in underserved communities in exchange for a hefty tax break, research reveals many of the census tracts classified as opportunity zones have already attracted a substantial amount of investment prior to the launch of the new federal program. Critics of the program worry it will accelerate investment in areas already experiencing a surge in development activity, leading to a convergence of investment into burgeoning neighborhoods already in high demand, and a lack of investment in otherwise blighted communities. 2. Industrial Boom To Continue Thanks To High Demand From E-Commerce Players, Though A Few Headwinds May Surface Industrial real estate demand soared to new heights this year, and CBRE Head of Industrial Research David Egan expects more of the same in 2019. “I think the market has outperformed this year, at least from user activity. There has been a general expectation for a number of years that this can’t continue, and it turns out that hasn’t been true. We have a massive amount of demand on the market for logistics properties of all types; obviously the Class-A big-bulk warehouses are what get most of the attention, but the demand is very broad-based and extending all the way down to secondary and tertiary markets,” he said. “My expectation in 2019 is that we should see more or less of the same dynamic.” Net absorption resulting from e-commerce growth is expected to average between 75M SF and 94M SF, same as this year, according to CBRE's 2019 Outlook report, and a lack of new supply has driven vacancy levels down to 4.3%, a historic low. “Based on the demand that we're seeing from the e-commerce sector — as well as from traditional brick-and-mortar retailers that are entering or expanding in the online space — we can fully expect that e-commerce will continue to drive the market next year,” Bridge Development Partners President Anthony Pricco said. “This is especially true for infill sites proximate to the major population centers. While the rising costs of land and construction could be viewed as emerging market headwinds, the upside of industrial development is still exceptionally strong, as rents have been appreciating at an even faster pace.” Egan told Bisnow he would not be surprised if net absorption tapered off in 2019 due to new supply not keeping pace with robust demand levels. “You can only absorb what’s available,” he said. "While we expect to see supply-demand relatively in check, those growth metrics will still be positive.” 3. Federal Reserve To Gradually Boost Interest Rates Due To The Strength Of The Economy With robust jobs growth continuing to increase at a healthy clip and the unemployment rate steady at 3.7%, a 50-year low, Fed officials hint that they will likely continue their course of action in 2019 to gradually boost short-term interest rates to temper inflation and maintain a stable economy. “Inflation exists above the Fed’s target of 2% to 2.5%, with more job openings than unemployed and more homebuyers than new housing inventory. The Fed sees inflation ahead first and foremost and will continue on a hike-pause-hike-pause pattern in 2019 as long as GDP remains above 2% and unemployment below 5%,” CCIM Institute Chief Economist K.C. Conway said. The Fed boosted rates three times this year to a range of 2% to 2.25%, and many expect central bankers to bump rates again in December. Big Wall Street banks polled by Reuters expect central bankers to boost rates another three times in 2019. “Although the most recent Fed guidance has seemed less definitive on its future course, the market and most analysts anticipate another hike this month and two to four next year, as both inflation and wage growth exceed their targets,” Colliers International U.S. Chief Economist Andrew Nelson said. “This will ultimately translate into declines in consumer and business borrowing and curb spending and investing.” 4. Online Retailers Will Continue To Open Brick-And-Mortar Stores, Further Validating That Physical Retail Is Far From Dead With the retail industry stabilizing in 2018, CBRE Head Of Global Retail Research Melina Cordero expects retailers to begin reinvesting in their physical footprints to achieve the perfect omnichannel shopping experience for consumers. In addition, digitally native (or e-commerce only) retailers will increasingly shift to open physical stores to grow their business and retain more customers, Cordero said. “In terms of retail and real estate, I think the retailers have finally sort of learned what to do. There’s a lot of investment, changes and closures that had to happen to adjust to omnichannel. Over 2018 a lot of those investments finally started to pay off. “What we think is going to happen over 2019 is a real return to the store. Retailers are finally starting to realize the value of their real estate — they can’t just close a store and rely on online, they really need the store for profit margins, customer attention, customer acquisition, for lots of reasons. I think we’re going to see a lot of reinvesting in the store and a lot of reinvesting in strategies to try to get people into the store,” Cordero said. 5. Industry To Continue Reading The Tea Leaves To Predict The Next Downturn Everyone is on the lookout for signs of the next recession, as the economy nears its 10th year of expansion — its longest period of expansion ever. “In the history of U.S. business cycles, downturns have typically occurred within one or two years after the economy has reached full employment,” JPMorgan Chase Commercial Banking Head Economist Jim Glassman said. “A careful examination of this historical regularity indicates, however, that this pattern has been the result of two imbalances — a building inflation problem that requires the Fed to adopt a restrictive policy posture, or unprecedented financial imbalances. “In that regard, there are no obvious imbalances that have the potential to trigger a downturn, so the current expansion is likely to settle into a lengthy period of balanced, noninflationary growth.” Though U.S. economic growth and job gains were strong in 2018, some economists and analysts predict the economy will slow in 2019 due to continued short-term interest rate bumps by the Federal Reserve and waning fiscal stimulus from federal tax cuts. “Inevitable disruption is probably the appropriate risk strategy mode to be in for 2019. Real estate is not immune from business cycles, economic recessions or disruptive black swan events — such as a trade war, currency crisis or cyberterrorism,” Conway said. 6. Investor Demand For U.S. Assets To Keep Transaction Volume Strong “Though property markets peaked for this cycle in 2015, leasing and sales transaction activity remain robust and pricing firm,” Nelson told Bisnow. “Transaction volume through Q3 2018 [was] 11% above its level for the comparable period last year and is approaching the total closed in 2015 — the peak sales year for this cycle. “While all four core sectors have shared in this year’s gains, apartment and office — perennial investor favorites — have posted the highest sales totals and the strongest price appreciation to date. But both [will] likely slow sharply in the next two years, along with price appreciation and rent growth, as the economy slows or even turns negative.” 7. Industrywide PropTech Adoption To Accelerate Commercial real estate professionals — from owners and operators to brokers and architects — can no longer deny the impact technology is having on the industry. More real estate firms are embracing the latest innovations to streamline work tasks and create a more paperless, transparent approach to sourcing deals, managing assets, analyzing data and closing transactions. Mihir Shah, co-CEO of JLL Spark — JLL’s PropTech division that has a $100M global fund dedicated to investing in real estate tech companies — told Bisnow that PropTech companies have become increasingly valuable as their products have helped real estate firms further their initiatives. “As part of this effort, we are seeing companies that typically went through long RFPs showing interest in piloting new products to see which ones are viable. This helps them prove [return on investment] faster and helps the winners grow faster,” Shah said. “This willingness to try new things will help PropTech adoption in 2019 and beyond.” 8. Investment In Value-Add Assets To Help Assuage U.S. Workforce Housing Availability, Affordability Concerns Demand for available and affordable workforce housing options will remain a topic of interest in the multifamily sector, as expensive land and development costs make it increasingly difficult to build affordable housing from the ground up. This is particularly a pain point in urban metros, JPMorgan Chase Head of Commercial Real Estate Al Brooks told Bisnow. “The ongoing job growth we’ve been experiencing in the U.S. is having a huge impact on workforce housing affordability in major cities. This influx of talent continues to be fueled by the need to be in close proximity to work, the convenience of mass transit options, as well as the appeal of being at the center of the action in major metropolitan areas,” Brooks said. CBRE Americas Head of Multifamily Research Jeanette Rice said investment in value-add multifamily assets will help assuage these concerns. “Workforce housing will also remain appealing in 2019 due to demand outpacing available supply, thereby keeping vacancy rates low and rental growth above the overall multifamily market. “Investor interest will also remain very high in 2019. Interest is coming from all types of capital, including institutional and foreign capital as well as traditional sources like smaller private buyers. The appetite for workforce housing is very strong for the better property fundamentals and higher yields. Value-add investment will likely still dominate in 2019 and remain largely successful. Acquisitions of stabilized product will also be appealing for some investors, particularly those with longer-term hold horizons,” Rice said. Unsplash/Raphaël Biscaldi 9. Millennials To Continue Flocking To Hipsturbias And 18-Hour Suburban Cities Research and data has dispelled the long-held myth that millennials are city-flocking suburbia haters. With aging millennials now hitting their early 30s, many are turning to the suburbs with their families. More than 2.6 million Americans relocated from the city to the suburbs in the last two years, according to the U.S. Census Bureau as reported by ULI. This has renewed investor interest and confidence in select non-gateway markets, ULI reports in its 2019 Trends survey. “Hipsturbias” or “Urban-burbs” have been used to classify these suburban markets with increased walkability and access to public transit that so resemble urban metros. A U.S. bank senior researcher told ULI the following: “The first phase is millennials moving to the suburbs for larger, more affordable homes and access to schools, so adequate single-family and multifamily housing will be necessary. Retail follows rooftops, so retail development to meet the new residents’ requirements will follow. Finally, you may begin to see more emphasis on employment centers as residents decide they want to work closer to where they live.” 10. Investors To Favor Industrial, Multifamily And Retail Assets In The New Year It comes as no surprise that industrial real estate assets would be an anticipated favorite for investors in 2019, along with multifamily assets, according to ULI’s 2019 Emerging Trends report. Deep-pocketed investors like Blackstone Group continue to gobble up entire portfolios of industrial assets at a rapid pace this year, such as its purchase of industrial REIT Gramercy Property Trust for $7.6B, a portfolio of last-mile logistics assets from Harvard University for nearly $1B and a portfolio of 41 warehouses from FRP Holdings Inc. for $359M. More interesting is the fact that retail is expected to attract interest from investors in 2019, particularly those assets ripe for redevelopment and upgrades. “Many shopping center properties are just not going to come back as successful retail assets. But while few have been reduced in price to mere land value, many are well below replacement cost and have good locations for alternative uses,” ULI reports. “If a site is sufficiently large, mixed-use is a great option for close-in suburbs looking to exploit maturing millennials’ desire to enter their next life-cycle phase. There also is an opportunity to turn the tables on the e-commerce trend that fostered the obsolescence by redevelopment into distribution facilities." 11. Investors To Continue Flocking To Secondary, Tertiary Markets For Yield Commercial real estate investors on the hunt for solid risk-adjusted returns continue to bypass gateway markets to bet on assets in burgeoning secondary markets, and the trend is likely to continue in 2019. “Because of the high prices and limited opportunities in primary U.S. metros, investors are continuing to focus more on secondary markets, which are enjoying double-digit growth in investment activity and much stronger price increases than in the primary (largely coastal) metro markets,” Colliers’ Nelson said. “However, those trends are likely to reverse if/when we see the economic slowdown, and investors seek the security of larger, more liquid markets.” This behavior is typical in a late-stage cycle such as this, CBRE Chairman of Americas Research Spencer Levy said. “The downside of the coin is it's typical of late-cycle investment activity that you see a shift from primary to secondary in search of yields. What is new is we have not seen a compression of yields that would be typical in late-market activity,” he said. “What happens is cap rates in primaries and secondaries converge; we have not seen that in office and retail, but we have seen that in multifamily. The question is, is this trend durable during a recession that will occur in the next couple of years?” 12. Construction Industry To Continue Grappling With High Costs, Labor Shortage Rising construction costs were the No. 1 real estate and development concern for respondents that participated in ULI’s Emerging Trends in Real Estate 2019 survey. On a scale of one to five, five being of the greatest importance, construction costs ranked 4.59, with land costs and housing costs and availability following close behind at 4.14 and 4, ULI reports. “Rising construction costs may be the most undertold story of 2018 that should become a material story in 2019,” CCIM's Conway said. Conway identified a number of factors exacerbating cost and labor challenges in the construction industry, including a decline in immigrant construction laborers following the financial crisis, crazy superstorms as a result of climate change that has led to massive rebuilding efforts across the country, and tariffs and the trade war. “Key materials like steel, ... bathroom fixtures from China, lumber from Canada, etc., are impacted. Pay attention to the quarterly earnings reports from construction materials companies as to the kind of input cost increases being experienced. Caterpillar, for example, reported solid sales in Q3 2018, but a large rise in material inputs like steel. The result is growing pressure on margins. “That is the key takeaway regarding construction labor and material costs increases — margins are going to be squeezed, cost overruns incurred, and values under pressure unless rents and [net operating income] can be increased to cover the increasing costs of new construction,” Conway said. 13. U.S. Office Real Estate Markets To Remain Stable, Though Demand May Slow CBRE said in its 2019 U.S. Outlook report that office net absorption is expected to reach 37M SF in 2019, representing the sector’s 10th consecutive year of positive absorption. Should the country continue to experience strong office-using job growth in the new year, it could lead to strong absorption rates and renewed interest from investors. “One portion of office real estate expansion is the demand for more office space near entertainment venues and other amenities. These office buildings are relying on smaller, flexible workspaces. Coworking spaces also have become more common as professionals choose alternative working methods,” Gerken told Bisnow. That said, Colliers’ Nelson anticipates office demand will taper off in response to a slowdown in job creation and robust supply levels. “Demand for office space will moderate in response to slower job creation, just as a significant volume of projects already under construction begins to enter the market,” Nelson said. “So vacancy will trend upward and rent growth will ease as market conditions become more competitive for landlords.” 14. Retail Bankruptcies To Slow, Retailer Earnings To Stabilize “The retail real estate industry has experienced significant change in recent years, and the transformation is profound and will continue throughout 2019. The convergence of brick-and-mortar and online retail will continue to create major seismic shifts in the industry,” TD Bank Head of Commercial Real Estate Gregg Gerken told Bisnow. Though a wave of retailers filed for bankruptcy and shuttered stores this year — including Sears, Mattress Firm, Nine West and Claire’s — the circumstances surrounding most store closures next year should be vastly different, CBRE’s Cordero said. "I think the general industry sentiment is that 2017 was probably the peak year [for retail closures]. I think there will continue to be closers in 2019 — it’s hard to say whether we’ll have more or less — but I would say a lot of the closures that we’ll see in 2019 will be more about what we call portfolio rationalization or optimization than they are about retailers that are failing. “Retailers in lots of cases do need to close stores to reorient their portfolios — so I do expect closures in 2019, but I don’t really [associate] a lot of those closures as dying or failing retail, it’s more of morphing and adjusting retail,” Cordero said. 15. Multistory Warehouse Development In The U.S. To Accelerate Conditions have ripened for multistory warehouse development in the U.S., and this trend will continue into 2019. Facilities are underway or have already delivered in Seattle, San Francisco, New York, Miami and Chicago. While multistory warehouses are nothing new in Europe and Asia, the U.S. is in the beginning stages of developing these types of facilities now that building costs are no longer as cheap and there is less available land than in the past, CBRE’s Levy said. Unprecedented demand for warehouse and logistics space today has changed that dynamic. “The rents that are being achieved in these multistory industrial [facilities] could be two or three times what you’re seeing in traditional industrial. We think this particular trend is only at the beginning in the United States,” Levy said. Though the bumps in rent are substantial, CBRE Head of Industrial Research David Egan said these multistory facilities also can present operational challenges for users. “The users are going to have to change the way they operate in these buildings to make it work efficiently,” he said. “The operational issues are not small — to change the way they move inventory in and out of these buildings is not a small little tweak." 16. Grocery Chains To Move Further Online, Expand Their Online Offerings With The Help Of Tech Up to now, delivering fresh groceries to consumers’ doors has been a fairly nascent concept — and it is no easy task. Grocers already battle low profit margins due to increasingly declining food prices and new low-cost rivals like Aldi entering the market. These challenges, coupled with expensive online delivery costs, has kept online grocery delivery in its infancy. But CBRE’s Cordero sees that trend shifting in 2019. “Grocery is probably, among all the retail categories, one of the lowest for online penetration. We think due to a combination of technological advancement, investment on the part of retailers and consumer demand, that we’re going to see a pretty important shift next year in grocery going online and retailers offering more to consumers in that domain,” she said. 17. Economic Development Teams Across The Country Continue To Feel The Impact Of HQ2 Competition “An open competition like the Amazon HQ2 search is an opportunity for communities to redefine their legacy image and showcase what is different about their economy today versus 10, 20 or 30 years ago. The 238 communities that competed for the Amazon HQ2 are winning economic development as a result," CCIM's Conway said. “Amazon is using the data to site select new fulfillment centers in places like Tucson, Arizona, and Birmingham, Alabama. Other major transportation and e-commerce companies, like Norfolk Southern Railroad, have used the information to make a relocation decision (in Norfolk Southern’s case, to Atlanta, which was among the 20 finalist cities for Amazon HQ2). In other words, the Amazon HQ2 search was to economic development what the census is to demographics.” 18. U.S. Hotel Occupancy To Break Records In 2019 The hotel sector is expected to experience a record-breaking year of occupancy levels in 2019, according to a forecast from CBRE Hotels America Research. Occupancy levels are expected to surge to 66.2% next year, the 10th consecutive year of growth. This increase will be driven by a 2.1% increase in demand to offset incoming supply. That strong demand may not be felt evenly across markets, Quadrum Hospitality Group President Foiz Ahmed said. "Although the hospitality sector continues to grow, the markets in which Quadrum is active will stay relatively flat given their higher-than-national average occupancy rates. While average daily rates are rising nationally, the industry will face some challenges due to the rapid adoption of apps that provide discounted rates.” Read more at:

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW MILLENNIALS ARE CHANGING REAL ESTATE

I remember buying my first home with my wife. I will never forget the feeling of walking in together for the first time as homeowners. It was a defining moment in both our lives. Today, younger Millennials are purchasing their first homes and older ones are already moving on to buying their second. Millennials are known as the generation that will buy a $200 pair of jeans after extensive research and trying on 67 different pairs to find the exact right ones. The way they shop for homes is no different. This research-driven culture is supported by the internet where everything they could ever possibly want to know is right at their fingertips. The most surprising thing about the way Millennials buy their homes is that they actually want a realtor to help guide them through the process, but that's not the only generational shift here. Millennials Want Everything To Be Just Right Millennials consider owning their own home as an important part of living the American Dream. Unfortunately, thanks to stagnating wages and a sharp increase in student loan debt, saving for that down payment isn't going to be easy. As a result, there isn't much cash left over after closing to make any updates Millennials want, so they instead seek out homes that are fully updated and move in ready to begin with. At the top of Millennials' wish lists are updated kitchens and bathrooms, green features like solar panels, an open floor plan, a home office, a good location, and good Internet and cell service. Almost half of Millennials would rather buy a brand new house in order to avoid any maintenance issues that might occur early on. Only 11% of Millennials consider a home to be permanent anyway. Eventually, Millennials plan to sell their starter home as 68% view it as a stepping stone to the home they really want and making improvements is not part of that plan. The average homeowner keeps their home for ten years, while the average Millennial only keeps their home for six years. Some Things Remain the Same Regardless of Generation When it comes to where Millennials want to live, the suburbs still reign supreme. Half of Millennials live in the suburbs and a surprisingly low 25% live in urban areas. Research shows Millennials want to live in a place that is close to work and close to things to do, and urban areas typically provide both of those things. Four out of five adults between the ages of 18 and 25 live outside of the urban core of a city, which indicates an even stronger shift toward the suburbs. Still, they want to be close to work to save on commute times and travel expenses, and 65% choose the location of their home based on how far it is to work. Why Should Sellers Cater To Millennial Home Buyers, Anyway? Of all first-time home buyers, Millennials make up 66%, and they are 34% of home buyers overall. Over 66% plan to purchase a new home within the next 5 years. That's a huge generational shift in real estate. Millennials are better informed about their options than probably any other generation before them. In short, if you aren't catering to this generation's enormous buying potential you're probably going to be missing out on a lot of opportunities. If you are considering selling your home: Make all necessary repairs and upgrades before listing Consider updating kitchens and baths - these have always sold homes, but now they are more important than ever Do an energy efficiency audit and make upgrades anywhere you can, including solar panels Consider upgrading any old appliances Install smart home features like programmable thermostats Millennials do hours of online research just to buy a sweater, so they are naturally going to do even more research when it comes to buying a home. More than three-quarters of Millennial home buyers drove by a home because of photos and listings they found online, and over 60% did walkthroughs because of these listings. Getting the information in front of them is key, and making sure you highlight relevant features is crucial. Millennials Now Hold Massive Buying Power Millennials hold a lot of buying power in today's real estate market, but many are using their parents to close the deal. According to top performing Denver realtor, Denise Fisher, this makes for an interesting family dynamic with clients that she doesn't see with other generations: "One thing real estate agents must adapt to when working with Millennials is dealing with two sets of buyers for the same home. The millennial is usually the one that researches the home online but when it comes to the showing and buying, more and more parents are getting involved in the process. Millennials are frequently getting their down payment or the whole mortgage from their parents so when they are looking it's a family affair. While the Millennial is my main client, I will often be talking to the parents through the transaction and while showing houses I'll have 2 carloads of a family to walk through a house. They often have different tastes and ideas for the ideal home. This adds a new element to the sale for realtors." Millennials are quickly changing the face of real estate. Gone are the days of only seeing what your Realtor wants to show you. Gone are the days of the glorified fixer upper and the weekend warrior. Millennials are busy working their side hustle anyway. New homes and already fixed up homes are the ones that are going to be moving on the real estate market, an ode to the buying power of the Millennial

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW TO USE REAL ESTATE ASSIGNMENT CONTRACTS FOR INVESTING

>How to Use Real Estate Assignment Contracts for Investing BY JAMES KIMMONS Updated October 04, 2018 Visualize a real estate purchase contract with just a few extra words added to your name as the buyer. This would look something like this: "Buyer: John J. Doe, and/or assigns." That's it. Seems simple, and it is. But, it opens up many opportunities for profits in real estate investing. The "assigns" would be anyone that you want to pass your purchase rights along to. You have effectively locked up a property with a purchase contract. You can now go ahead and buy it, flip it, rehab and rent it, or any other strategy that's legal. But, you can also pass it along to someone else for profit, never buying it yourself. You're not just passing your purchase rights along. You're also passing along your obligations in the contract. This means that you are no longer involved in the transaction at all. You do not have to perform and buy the property, nor do you have any rights to make claims against the seller if there are problems with the deal moving forward. The person or company to whom you've assigned the deal to is now responsible for taking the deal through to closing. As you probably won't be getting paid your fee or profit until closing, it can make you nervous waiting for the deal to close. Profiting by Simply Referring It Along The simplest way to profit in this situation is to simply locate one or more buyers in your buyer database, show them the value in the deal, and take a referral or "bird-dog" fee for bringing the deal to them. You assign your rights to the deal, and they go forward to closing, paying you your fee after or at closing. You profit handsomely, though you only had whatever earnest money deposit to lock up the contract at risk. By knowing who your buyers are likely to be before you contract the property, that risk is very low if the value is there. You build and maintain an active investor buyer list for your customer pool. This is crucial, as you really want to be sure you have a ready buyer or two for a home before you commit earnest money. Doing a good job of building your list, you should be covered pretty well. This list will include both fix & flip and rental property investors with interests in buying depending on the condition of the property. Rental investors normally want a house ready for occupancy, or at least with only cosmetic or minor repairs necessary. Back-To-Back Closings for a Flip Sale You can also take on the purchase, immediately selling the property to another investor or a retail buyer. You would probably take this approach because your profits would be higher. After the mortgage crisis in 2007 and after, you can no longer use the funds of one deal to close on another in simultaneous closings. The lenders just won't allow it. However, you can explore resources for short-term funding, maybe a relative, your own cash, or a hard money lender. You only need the money long enough to close the purchase and then the sale. This can be hours, but never more than a day or two. Assignment Deals Are a Great Real Estate Investment Strategy What is your role here, and how are you adding value? Simply, you have perfected your techniques and can locate really great deep discount real estate deals with others, your buyers, ever know about them. There are many ways to get to a good deal early, and your value to your buyer customer is that you've got the property in your control, so they'll only get it if you pass it along. You have two tasks to hone to make this work well for you. First, have a really good buyer database, with information about what each is looking for. Second, you learn and put into play strategies to locate great property deals before their general knowledge. If you get these two things in line and operating for you, using real estate assignment contracts can be your ticket to real estate investing profits with little of your own money at

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHY YOU SHOULD SELL YOUR HOME IN 2019

Homeowners looking to sell should consider 2019 a prime opportunity to cash in. Few people are predicting that 2019 will be a record-breaking year for home prices. But relatively speaking, 2019 might be the best time for you to put your house on the market. Especially if you’re on the fence about selling this year or next, Nick Ron, CEO of House Buyers of America, recommends going with the devil you know rather than the devil you don’t. “I think it’ll be better than 2020 and 2021 – who knows what’s going to happen in those years,” Ron says. Housing Market Expectations in 2019 Home price growth slowed in the second half of 2018, with fewer buyers entering the market, at least partially due to rising interest rates issued by the Federal Reserve. In 2019, consumers shouldn’t expect homebuyers to flood the market again and drive prices through the roof, but it’s also unlikely to be a crisis for home sellers. If you bought your house in the last year or two, still love it and don’t want to part with it, go ahead and wait another five years before revisiting the thought of selling. But if you’re weighing your options to sell, considering selling this year or maybe the year after, don’t play the waiting game. Here are four reasons to sell your house in 2019. New buyers are still entering the market. As interest rates rise, some buyers will hesitate to make an offer on a home or apply for a mortgage, so be ready to see occasional drops in buyer activity. And if your house is at the higher end of the price range in your market, you should expect less buyer interest than before. Ron notes the combination of rising mortgage rates and home prices exceeding buyers' budgets are what has caused the slowing of homebuyer activity in recent months. But with available housing inventory remaining low, even with rising interest rates, buyers who are ready to make a purchase will still shop for homes. The biggest wave of new homebuyers will be among millennials, who are mostly first-time buyers. In a Harris Poll survey of 2,000 U.S. adults commissioned by real estate information company Trulia, more than one-fifth of Americans between ages 18 and 34 said they plan to buy a home within the next 12 months. Already, millennials make up the largest share of homebuyers at 36 percent, according to the National Association of Realtors, which released the number in March 2018. The bottom line: While houses may sit on the market for a few more days on average compared with 2017 when the market was white-hot, buyers remain active and it’s still possible to profit from your home sale. Interest rates are still low-ish. Mortgage interest rates are rising, reaching 4.87 percent in November for a 30-year, fixed-rate mortgage, per data from Freddie Mac. While rates are at their highest level since February 2011, they remain much lower than the historic high of more than 18 percent in 1981. It’s important to keep in mind that while mortgage rates tend to mirror the Fed’s interest rate activity, mortgage rates are based on the market in that moment, your financial status and the property you’re looking to purchase. Just because the Fed raises rates at one meeting doesn’t mean mortgage rates will follow that exact pattern. “Not every Fed increase is passing on (to) a mortgage rate,” says John Pataky, executive vice president and chief consumer and commercial banking executive at TIAA Bank. A sudden leap in mortgage interest rates is unlikely in 2019, though Pataky notes that you should be ready to see rates continue to climb. “We do expect over the next 12 months that mortgage rates will continue to drift higher,” he says. If you’re looking to get the lowest interest rate possible on your next house, try to make a deal sooner rather than later. You have high equity. Homeowners who bought during the recession or shortly after benefitted from historically low interest rates and, up until around 2015, lower home prices that were still in recovery mode. If you fall into that category, your home equity has risen with nearly every mortgage payment, each renovation you made to the house and all the other houses on the block that sold for a higher price. The higher your equity in your home, the more you net from the sale, which can easily go toward the down payment on your next house. The larger your down payment, the better you look to lenders and the lower your interest rate will be, and the less likely you'll need to increase monthly payments with private mortgage insurance. Selling in 2019 vs. 2020. If not selling your home in 2019 means putting your house on the market in 2020, the sooner option is the best one. In a survey of 100 U.S. real estate experts and economists by real estate information company Zillow, released in May, almost half expect the next recession to occur in 2020. Another 14 percent believe the recession will hold out until 2021, while 24 percent of panelists expect the recession earlier – sometime in 2019. Whether you believe the recession is imminent or a long way off, current real estate patterns indicate a sudden upswing in activity or prices is unlikely in the near future. Real estate markets tend to operate on a cycle of their own, the length of which varies by market but can be between 10 and 16 years total and flow from a seller’s market to a buyer’s market with a period of balance in between. “It doesn’t look like there’s anything on the horizon that’s going to cause a big spike in home prices or increase demand dramatically,” Ron

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

AMAZON ENTERING THE RESIDENTIAL SALES BUSINESS?

For an e-commerce giant, Amazon has sprawling roots in commercial real estate, with its massive warehouses, Whole Foods footprint and splashy cashierless and 4-Star stores. Now, Amazon (AMZN) is making its foray into residential real estate. Last week, the Alexa Fund, which invests in companies harnessing voice technology, participated in a $6.7 million round of funding to back Plant Prefab, a Southern California-based smart home builder. There’s an obvious synergy between the future of home building and Amazon’s vision for the world. The behemoth just announced a whole suite of new Alexa-enabled devices, ranging from a microwave to smart plugs. And the Alexa Fund acquired video home security device Ring for $1 billion earlier this year. Given Amazon has 62% of the voice assistant market and most of Alexa usage happens inside the home — whether cooking, listening to music or the news, the e-commerce giant is looking to get involved in the first steps of real estate development. Home builders are slowly keying into the need to innovate the processes and ways in which the next generation of home buyers want to live. The country’s largest home builder Lennar (LEN) announced in March that all new homes will include Alexa-enabled lights, smart locks, doorbells and thermostats. Disrupting the housing market Amazon has already dipped a toe into the real estate referral business. Last summer, a “Hire a Realtor” page appeared on the site, which rattled Zillow’s (Z) stock, as referrals is the site’s core product offering. While the placeholder page has since been taken down, it’s undeniable that Amazon is scheming multiple angles to target the potential homebuyer. At Yahoo Finance’s All Markets Summit last month, Zillow CEO Spencer Rascoff noted how Amazon was likely to disrupt the real estate industry — and that it’s just a matter of time. “Eventually, yes [I’ll worry about Amazon]. I will observe that it’s one of the largest parts of the economy. It’s 15% of GDP that they’re not participating in. Historically, it’s had a lot of complexity and hasn’t been something they’ve wanted to do,” he said. “But I just read last week that they’re going to sell Christmas trees. If you are the Christmas tree lot operator, you probably thought you were safe and this was the last part of commerce that Amazon would never touch, but now all of a sudden you’re probably going to have a pretty tough season this year,” he added. The overall trend of home buying turning more and more digital certainly works in Amazon’s favor as well. Eventually, the entire process from searching for to closing on the purchase of a home will happen online. According to Bank of America’s Homebuyer Insights survey, Americans would be more comfortable applying for a mortgage digitally (32%) than dating online (20%). And other big players beyond Amazon are recognizing the opportunity to meet customer needs. As digital-native millennials and eventually Gen-Zers form families and look to settle down they’ll want their abode to offer a convenient, effortless experience. SoftBank recently announced a $400 million investment into San Francisco-based OpenDoor, which buys and sells homes online across 19 different markets in the U.S. It’s no surprise that one of Amazon’s next frontiers is residential real estate, especially considering a home is the costliest big-ticket item Americans will purchase in their lifetime. Melody Hahm is a senior writer at Yahoo Finance, covering entrepreneurship, technology and real estate. Follow her on Twitter

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT THE FED’S RATE HIKE WILL MEAN FOR AMERICA’S WAVERING HOUSING MARKET

What the Fed’s rate hike will mean for America’s wavering housing market As 2018 winds to a close, the housing market has shown signs of a slowdown, and now the Federal Reserve has raised interest rates. So what does that mean for those in the market to buy a home? Throughout this year, observers have begun to speculate that the country’s housing market may have hit its peak. Meanwhile, millions of Americans continue to wait on the sidelines. Housing inventory remains incredibly tight, meaning that buying a home is a very expensive and difficult proposition for many. At the same time, expensive rents and low wages have constrained people’s ability to save up for a down payment. And 2019 appears set to bring more of the same. “I would still rather be a seller than a buyer next year,” said Danielle Hale, chief economist at real-estate website Realtor.com. Here is what forecasters predict the New Year will hold for America’s housing market: Also see: Like Alexandria Ocasio-Cortez, many Americans can’t afford an apartment when they move for work Mortgage rates will continue to rise, causing home prices and sales to drop The Federal Reserve announced Wednesday that it hiked the benchmark federal funds rate 25 basis points and indicated that it plans to raise rates again in 2019. An increase to the federal funds rate, which is the interest rate at which banks lend money to each other, can lead to an uptick in mortgage rates. Ahead of the Fed's rate hike announcement, the interest rate on a fixed-rate 30-year mortgage fell 12 basis points from the previous week to 4.63%. While that’s the lowest mortgage rates have been since September, they are still higher than a year ago. And by this time next year, experts predict rates will be even higher. ‘This is an extremely mortgage-rate sensitive housing market.’ — Daren Blomquist, Attom Data Solutions Realtor.com estimated that the rate for a 30-year mortgage will reach 5.50% by the end of 2019, while real-estate firm Zillow estimated that it could hit 5.80% in a year’s time. Mortgage liquidity provider Fannie Mae was more moderate, predicting that rates will only increase to 5% by then. Either way, homebuyers can expect to pay more in interest if they buy next year. And rising mortgage rates will cause ripple effects throughout the market, said Daren Blomquist, senior vice president at real-estate data firm Attom Data Solutions. “What’s driving the slowdown in price appreciation and the rise in inventory is not so much that inventory is being created, but that demand is decreasing,” he said. “This is an extremely mortgage-rate sensitive housing market.” Realtor.com only expects the national median home price to increase 2.2% next year and for sales to drop 2%. Zillow was a bit more upbeat, expecting home prices to rise 3.8%. (In October, the median sales price only increased 3.8% from a year earlier amid a 1.8% annual uptick in home sales, the first such increase in six months.) Added inventory won’t make it a buyer’s market In some of the nation’s priciest markets, housing inventory has improved in recent months, relieving some of the inventory-related constraints on housing markets. But that’s not good news for buyers or sellers. The increase in inventory in this case is more the result of a decrease in demand because of rising interest rates than it is a sign of new homes being built. For sellers, this shift will lead to fewer offers and bidding wars, which could in turn could cause some to feel pressure to drop their asking price. However, all of these factors won’t outweigh the price appreciation that’s occurred in recent years. “You’re still likely to walk away with a decent profit in 2019 if you sell,” Hale said. Moreover, the uptick in inventory has mostly occurred in the pricier tier of homes, meaning that the change doesn’t directly benefit buyers. Rather, it could provide some wiggle room for people looking to upgrade their home. That in turn might marginally expand the number of starter homes on the market. People will continue to move away from costly housing markets A trend that picked up pace in 2018 was the exodus from some of the nation’s priciest housing markets. Millions of people have chosen to leave California, for instance, and have headed toward Sun Belt cities like Las Vegas and Phoenix. That trend won’t stop in 2019, which is good news for people looking to sell homes in smaller cities. “Home buyers are going to look for affordability and, often times, that will mean moving from a high cost major market to a lower cost secondary market,” Hale said. Many of these cities, such as Raleigh, N.C., and Nashville, Tenn., have growing economies and healthy job markets, further sweetening the deal. Another factor that could fuel migration in the future is the new tax code signed into law by President Trump in 2017, which removed the deductions for state and local taxes. Taxpayers will only fully feel the effects of that change for the first time next spring as they receive their refund checks in the mail, said Aaron Terrazas, senior economist at Zillow ZG, -5.73% “You’ve already seen some of the backlash to the tax bill in the elections that happened in New Jersey and Orange County,” Terrazas said. “Whether or not it spurs migrations, that’s something that happens pretty slowly. People certainly get upset and vote. Actually picking up and moving is a whole other level of seriousness.” The threat of a recession remains a big question mark The economy is still strong, but it’s unclear for how long that will continue to be the case. Economists have predicted that a recession could come as soon as late 2019. Whenever it occurs, the recession is sure to shrink demand for homes and cause prices and sales to drop. The magnitude of those effects will depend on how bad the recession is. In short, the more jobs that are lost, the more hard-hit the housing market will be. And the housing market may begin to feel the recession before it even starts. With memories of the pre-2008 housing bubble still fresh in people’s minds, would-be homebuyers may be hesitant to purchase a property if they believe they’d be buying at the top of the market in doing so. “That could be more detrimental to the housing market than the actual underlying issues,” Blomquist

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

OUR OFFICE SERVES THE FOLLOWING CITIES AND COUNTIES IN THE GREATER SAINT LOUIS AREA

Franklin County MO: Berger, Gerald, New Haven, Pacific, St. Clair, Sullivan (partial), Union, Washington Jefferson County MO: Arnold, Barnhart, Byrnes Mill, Crystal City, De Soto, Festus, Herculaneum, Hillsboro, Imperial, Pevely Lincoln County MO: Elsberry, Moscow Mills, Old Monroe, Troy, Winfield St. Francois County MO: Bonne Terre, Desloge, Farmington, Leadwood, Park Hills St. Charles County MO: Cottleville, Dardenne Prairie, Defiance, Foristell, Lake St. Louis, New Melle, O'Fallon, St. Charles, St. Peters, Weldon Spring, Wentzville, West Alton St. Louis (Independent City): City of St. Louis St. Louis County MO:[17] Affton, Ballwin, Bel-Nor, Bel-Ridge, Bella Villa, Bellefontaine Neighbors, Bellerive, Berkeley, Beverly Hills, Black Jack, Breckenridge Hills, Brentwood, Bridgeton, Calverton Park, Champ, Charlack, Chesterfield, Clarkson Valley, Clayton, Cool Valley, Country Club Hills, Country Life Acres, Crestwood, Creve Coeur, Crystal Lake Park, Dellwood, Des Peres, Edmundson, Ellisville, Eureka, Fenton, Ferguson, Flordell Hills, Florissant, Frontenac, Glen Echo Park, Glendale, Grantwood Village, Green Park, Greendale, Hanley Hills, Hazelwood, Hillsdale, Huntleigh, Kinloch, Kirkwood, Jennings, Ladue, Lakeshire, Manchester, Maplewood, Marlborough, Maryland Heights, Mehlville, Moline Acres, Normandy, Northwoods, Norwood Court, Oakland, Olivette, Overland, Pacific, Pagedale, Pasadena Hills, Pasadena Park, Pine Lawn, Richmond Heights, Riverview, Rock Hill, St. Ann, St. John, Shrewsbury, Spanish Lake, Sunset Hills, Sycamore Hills, Town & Country, Twin Oaks, University City, Uplands Park, Valley Park, Velda City, Velda Village Hills, Vinita Park, Warson Woods, Webster Groves, Wellston, Westwood, Wilbur Park, Wildwood, Winchester, Woodson Terrace Warren County MO: Foristell, Marthasville, Truesdale, Warrenton, Wright

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

OUR OFFICE SERVES THE FOLLOWING MISSOURI COUNTIES IN THE KANSAS CITY AREA

Jackson County, Clay County, Platte County and Ray County and the communities of Kansas City, North Kansas City, Raytown, Grandview, Lee’s Summit, Blue Springs, Grain Valley, Independence, Richmond, Liberty, Excelsior Springs, Kearney, Smithville, Platte City, Parkville, Weston, Gladstone and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

DIFFERENT DEFINITIONS AND FORMS OF RESIDENTIAL REAL ESTATE

Different definitions and forms of residential real estate POSTED ON JANUARY 28, 2016 BY MARK Single-Family Home – The most common definition of a single-family home is: An individual, freestanding, unattached dwelling unit, typically built on a lot larger than the structure itself, resulting in an area surrounding the house, known as a yard. A derivative of this definition includes the single-family unit that has a condominium ownership structure. In this case, the land associated with whole ownership of the home comprises only that which supports the structure’s foundation. In other words, the “yard” is co-owned in common with the rest of the residents of the community. In many markets, adjacent units that share walls and other structural components are considered to be single-family homes. While these homes have separate access to the outside and do not share plumbing or heating equipment, they do not meet the strict definition of a single-family home and are considered part of the multi-family genre. Zero-Lot-Line Home – The strict definition of a zero lot line home relates to the placement of the home on the building lot. In order for a small building lot to provide usable yard space, one side of the home is placed as close to the property line as possible. This placement typically allows marginal space between two homes on adjacent lots. Therefore, there are generally no windows on the sides of the homes closest to the property line. The zero lot line method of development has also been utilized for attached homes, which are commonly known as duplexes in which case the two homes share a common wall that is aligned with the center of the two adjoining lots. Patio Home – There are many names associated with this product type including garden home, garden villa, courtyard home, club home, cottage, and more. In any case, “patio home” most commonly refers to a single-story, single-family unit sited on a building lot that is typically not much larger than the building foundation. These products generally have a condominium ownership structure and building exteriors are typically maintained by the homeowners association. While the strictest definition focuses on the single-family configuration, the term is also used to describe multi-family products that are generally built with two to four homes per building that share at least one sidewall. In this regard, the terms villa, garden home, garden villa and club home may also apply. Villa – The “villa” has a significant history. In Roman times, the villa was an upscale country house; after the fall of the Empire, the term came to define a small, fortified farming compound, gradually re-evolving back into a luxurious country home in the Middle Ages. The definition of the present day villa in a suburban community environment has many connotations, the most common of which focuses on the traditional configuration of a multi-story, single-family home. But the term appeals to people of all economic levels and therefore, the various configurations associated with the villa are largely dependent upon location and market position, i.e., pricing. At the lower end of the price spectrum, the villa mirrors the Patio Home, i.e., a single-story, single- or multi-family product with little or no surrounding land. In the resort community environment, this product type can be an elaborate, multi-story mansion replete with a private swimming pool on several acres. In development and marketing parlance, the term has essentially become hackneyed and one must be prepared for the unexpected when considering the “villa.” Cottage – The cottage has traditionally indicated a modest structure. These single-family homes may have one or two stories, but “small” is integral to the description. The lot size associated with this product type is largely dependent upon the location. In high density environments the cottage can be a zero lot line or patio product; in more rural locations, the diminutive cottage may be sited on five acres. The term is meant to evoke a sense of coziness and charm versus urban sophistication. In this regard, the cottage is found commonly in rural mountain and seaside locations. Cabin – The eco/green movement has spawned the resurgence of the cabin. This freestanding single-family product type is usually small, typically containing a second-story sleeping loft, and is more rustic in design than the cottage. Generally a second home option, the cabin can be found in a variety of rural communities and resorts throughout the country and is very prevalent in the ski resort environment. The term “cabin” has been noted in a few instances to be used for attached dwellings in buildings comprising two to four units. Attached or detached, the cabin is generally constructed of wood or logs and has a decidedly bucolic persona. Courtyard Home – This style of home is typically defined as a single-family patio home product, but can also be a multi-family (attached) product. The distinction of the Courtyard home is the private nature of the entry that is encompassed in a gated, enclosed courtyard. The larger single-family courtyard product may have an attached guest suite inherent in its design. The courtyard home is typically owned as a condominium and developed as a “maintenance-free” housing option. That said, the courtyard design has become increasingly popular at the high end of the market and can also be found under the “villa” category. Large villas with private courtyards are generally developed as single-family, wholly-owned properties. Multi-Family Housing Products – The multi-family housing category includes many configurations ranging from side-by-side townhomes and villas to high-rise buildings containing an abundance of apartment flats, and various and sundry types in between. Many of the terms used to define a particular multi-family housing product are interchangeable, making their definitions somewhat dubious. What follows represents definitions that are generally accepted by the US building industry. That said, the terms do, vary from region to region and community to community. Duplex, Triplex, Quadraplex – These multi-family housing terms simply define the number of units contained in a multi-family building. A duplex consists of two units per building; a triplex, three units per building; and a quadraplex, four units per building. While the duplex and triplex are generally built side-by-side in a row, the units in a quadraplex are generally constructed back-to-back. Townhome/Townhouse – The term townhome-or townhouse-originated in the United Kingdom and simply denoted exactly what it was – a home in town. The townhome was generally owned by a peer or member of the aristocracy, as an alternative residence to their country home, to be used when parliament was in session. The original townhouse units were attached side-by-side in a row creating the illusion of one massive building. Many have since been converted to tenements, aka rental apartments. Thanks to its urban roots, the design of the townhouse remains distinct, being relatively narrow, tall (multi-storied) and uniform. This configuration is also known as a “rowhouse.” This term is not common in the US as the perception of a rowhouse is that it is smaller and less luxurious than a townhouse. In recent years, the townhouse/townhome has evolved to represent non-uniform units in suburban areas that are designed to provide the perception of a single-family home in spite of the product’s inherent “attachment.” The units themselves have also grown in size. While the traditional townhouse apartment is defined as a two bedroom unit with the living room in the front on the lower level, the kitchen in the back, and two bedrooms on the front and back of the upper level with a single bathroom between, contemporary designs now include three and four bedrooms, an equal number of bathrooms, and floor plans of great variety. Most modern townhomes also accommodate a one or two car garage. Apartment/Apartment Flat – Apartment is a generic term that can be applied to any multi-family product, including the multi-level townhome. However, in the strictest sense, apartments are “flats”, i.e., single-level units, stacked on top of each other in multi-story buildings. This is the configuration for many condominium buildings, ergo the misperception that a “condominium” is an apartment rather than a form of ownership. Apartment flats are diverse in size and design, and include studio/efficiency units, and one, two, three, and more, bedroom floorplans. The modern apartment flat can be as large as a single-family home and can include a family room, den, home office, and/or formal dining room. Carriage Home/Coach Home – These terms are interchangeable and a hint as to their configuration lies in the moniker. This housing type traditionally had three stories; two living levels above a ground floor space used to store carriages and coaches. Today, the ground floor space contains a single-level apartment unit while the top two levels typically comprise a townhome. Some carriage/coach home buildings have just two stories, accommodating only single-level designs. While the typical carriage/coach home building will consist of four to six units – two or three single level ground floor units and two or three townhomes — in some cases there are more single-level ground floor apartments than townhomes, giving the building a unique architectural flair. Another unique aspect of this design is the ground level entry to the top level living quarters. In this regard, many carriage/coach homes include private elevators. Condo-Hotel Residences -The condominium hotel concept took root at the height of the real estate boom as a way for the hotel developer to create cost-efficient inventory of overnight accommodations. Nevertheless, the condo-hotel unit is fee-simple deeded real estate. While the initial concept appeared to favor high-rise buildings in urban locations, this product type can take many physical forms including suites, studios and multi-bedroom designs in an apartment flat configuration, as well as attached and detached villas in a variety of locations, including destination resorts in rural and seaside areas. The key component of this concept is the management aspect that appeals to the investor and second home buyer. In this regard, the unit can be put into a management program and the unit rented out by the hotel on an overnight basis. The net proceeds from the rental are typically split between the hotel and the owner of the unit. The owner of a condo-hotel unit generally has access on demand, but may be limited to a particular period of time during the course of a given year. Branded residences, i.e., those that are marketed under the hotel brand name such as Four Seasons, Ritz-Carlton and St. Regis tend to garner the highest prices. Private Resort/Hotel Residences-The private resort residence is a wholly-owned, private property located within the confines of a full-service hotel or resort. Unlike the condo-hotel residence, the private resort/hotel property is not managed by the hotel, and therefore, is not rented out on a nightly basis. These properties can take a single-family or multi-family configuration, condominium ownership generally applies providing maintenance-free ownership, and all hotel services are available to the owner including in-room dining, valet and concierge. Branded private residences-those that are developed in conjunction with a branded hotel component-are a product that can suffer a tendency toward the extreme, with prices commonly in excess of $1 million. Private Residence Club (PRC) – Contrary to the term, this product definition is not founded in club membership. The PRC is an upscale form of fractional ownership of fee-simple, deeded, vacation property. The PRC residential product is generally larger than the standard fractional ownership unit and is decidedly more luxurious, generally resulting in higher prices. The programs associated with this product typically allow for eight to 12 co-owners per unit providing four to six weeks of guaranteed access. This usage period is more limited in comparison to the lower priced fractional products, which are often sold in quarter-shares (four owners per unit) in recognition of the fact that the upscale consumer generally has more money than time. While this may appear to be a contradiction in value, this form of ownership is indeed designed to provide a sense of exclusivity. The PRC typically does not permit overnight rental to the general public and instead preserves a sense of private ownership. This perception has theoretic value, thus equating to higher prices. The typical PRC product in a luxury resort environment is a three-bedroom/three bathroom single-level apartment unit approximately 2,500 square feet in size. Owners are referred to as “members” and as such have access to all of the amenities associated with the Private Residence Club. These typically include golf, tennis, swimming and fitness facilities. Similar to condominium ownership, an annual fee is charged for maintenance and repairs. Housing Cooperative (Co-Op) – A housing cooperative is a legal entity, usually a limited liability corporation (LLC) that owns real estate consisting of a number of individual units in one or more buildings. Each shareholder in the legal entity has the right to occupy one housing unit, often subject to an occupancy agreement, which is similar to a lease. A Co-Op shareholder does not own real estate, but a share of the legal entity that does own the real estate. Cooperative housing has a long history in the US as a means of homeownership and resident control. Beginning in the early 1900s, the concept was the most prominent form of homeownership in multi-unit buildings until the advent of the condominium movement. Historically, cooperatives have been largely confined to urban locations. Abraham Kazan, (1889-1971) is considered to be the “father of US cooperative housing.” Kazan grew up an eyewitness to appalling tenement conditions in New York City. As president of the Amalgamated Clothing Workers Credit Union he formed Amalgamated Housing in the Bronx in 1927 to provide affordable housing for the middle-class workforce. New York is well known for its co-ops and more than 100,000 people live in homes today built by Kazan’s efforts. Large housing cooperatives are generally managed by a board of directors elected by and from among the shareholders. In smaller co-ops, all members sit on the board. There are essentially two methods of purchasing a housing co-operative share: Market rate and limited equity. With market rate, the share price is permitted to rise on the open market and shareholders may sell at whatever price the market will bear. The Dakota, where Beatle John Lennon made his residence, is emblematic of an upscale, market-rate co-op. With a limited equity share, the co-op governs the pricing. The motivation associated with this type of arrangement lies in maintaining the property’s affordability and income restrictions often apply to the buyers. Housing co-operatives are found all around the world, but are most prevalent in the US, Canada, India, Germany and the Nordic countries (Sweden, Finland and Norway.) Timeshare/Interval Ownership – The informal practice of joining with friends and family to own vacation property has been around for decades, but the development concept is comparatively new. This relatively novel development approach has many buyers confused as the terms tend to overlap and are often misunderstood. There is a distinct and vital difference between Timeshare/Interval Ownership and Fractional/Private Residence Club ownership and it has to do with what you actually own. The terms Interval and Fractional furnish hints. One alludes to a time period (interval) while the other is commonly used with respect to the co-ownership of tangible (real) property. In development parlance, Interval ownership generally refers to the Timeshare product while Fractional ownership relates to the Private Residence Club (PRC) product – not to be confused with a Destination Club, which is a separate an uniquely defined product altogether. The difference between Interval and Fractional ownership lies in the “product” that is co-owned. While Fractional ownership provides fee-simple ownership of real property evidenced by a deed, Timeshare is exactly as its name implies — the right to use a property for a particular period of time. In this regard, the emphasis is on “time” not real property. While a time “share” is a saleable commodity and may or may not appreciate over time, it does not constitute ownership of the actual real estate. Other differences between the two include the guaranteed usage period. In the case of Timeshare, usage is generally purchased in one-week increments. The usage period may be placed in rotation so that the timeshare “owner” has access to the property across all seasonal periods. Alternatively, some programs adjust the purchase price dependent upon a selected period of use, which is guaranteed. When units are not in use by the shareholders, they are rented out to the general public. In comparison, the guaranteed access period inherent in Fractional ownership is significantly longer, ranging from a month to as many as three months, generally sub-divided into two- to four-week periods spread across all four seasons. While Fractional units can be rented out to the public, the most upscale fractional properties are not, and are instead reserved for the exclusive use of the co-owners. Further information about timeshare is available from ARDA. Destination Clubs – Once the exclusive domain of the über rich, Destination Clubs have evolved to be more inclusive, and as more and more Baby Boomers have reached their peak earning years they have opted for this less-time-consuming alternative to maintaining a vacation home. Another appealing aspect of the concept is the variety that most Destination Club portfolios provide as the properties can be located around the globe. The definition of the Destination Club has its basis in club membership, and there are essentially two basic membership structures: Equity and Non-Equity. The first Destination Club membership offering was launched in 1998. Private Retreats, since purchased by Ultimate Resort and reorganized to become Ultimate Retreats, was a non-equity program that essentially mirrored a country club membership providing the member with a right to use the club’s assets. The assets of a Destination Club tend to be million-dollar-plus vacation homes. Members do not own an interest in the homes nor do they participate in any potential appreciation of the properties. Non-Equity Destination Club members pay an upfront membership fee (deposit) giving them the right to reserve and use the properties subject to availability and the Club’s reservation policies. Upon resignation, a non-equity member typically receives 75% to 100% of the fee paid. However, there is no assurance that the refund will be immediately available at the time of resignation. If there are several members seeking to resign and no new members to take their places, a resigning member may have to wait to exit. The industry standard for resignation is “three in/one out” meaning for every three new members, one member may resign. In the Equity model, the member’s deposit represents an interest in the club’s property portfolio and any appreciation in the membership value. When exiting the club, the refundable portion of the fee may be adjusted to reflect the appreciated value of the real estate portfolio or the increase in the membership deposit for new members. Both membership structures call for the payment of annual or monthly “dues” which are used to maintain the properties. Many Destination Club properties are located in destination resorts. In this regard, members have access to the amenities on a pay-as-you-go basis. If the home is located in a private community, access to the recreational amenities may be restricted and/or require additional membership fees to use specific amenities such as the golf course, when in residence. The typical Destination Club program calls for a member-to-unit ratio of 7 to 1, and members generally have 21 to 60 days of guaranteed usage throughout the year. The predominant Destination Club property type has traditionally been a single-family home in the 2,000 to 4,000 square foot size range, but condominiums and condo-hotel suites are increasingly becoming a part of the Destination Club portfolio. The largest Destination Club is Exclusive Resorts, which has 350 properties in 40 locations. The latest incarnation within the Destination Club model is the activity-centric club. For example, The Markers has homes in 16 locations, all of which are golf communities or destination golf resorts. One of the newest hybrids is not only activity centric, but acts more like a Timeshare in that it is “points-based.” The Presnell Sporting Collection offers members access to high-end fishing and hunting-oriented sporting travel experiences. Instead of buying properties to accommodate members, the Club buys blocks of time in hunting and fishing lodges around the world. Vacation time at each lodge is priced in “privileges” and membership fees escalate dependent upon the number of “privileges”, i.e., length of stay in a given destination. Destination Clubs have been characterized as a “rapidly accelerating luxury-access revolution” that is being fashioned to meet demand as the concept evolves. For more information on Destination Clubs, visit Sherpa Report. Land Lease – A land lease is a type of financial arrangement in which the ground under a structure is leased, rather than sold. In this regard, the land and the structure are owned separately and independently by more than one entity. This practice occurs most commonly when an investor wants to retain title to the land but does not necessarily wish to be the developer. The investor might work with a developer to build a structure and rent or sell it, with the understanding that the land is leased and does not come with the building. This type of arrangement is common with respect to farms in rural areas, while in urban areas it is often associated with cooperatives or tenant-owned residences. Land leases are also prevalent in mobile home parks where the housing is not permanently anchored to the land, and resorts, particularly that portion dedicated to the amenities, may be constructed on land leased from a third-party or a local government. In this regard, any condo-hotel units or private residences located within the resort may be subject to the terms of the lease as well. Lease terms generally range upward to 99 years. Common-Interest Developments (CIDs) – The fastest growing segment of the housing industry has been common interest developments (CIDs), more commonly known as condominium developments. (See “Condominium Ownership”) The common denominators between the terms are the form that ownership takes and the governance of the community, which can include freestanding and multi-family dwellings. In a CID, homeowners own their residence and the land upon which it is built, but co-own, “in common” the common areas, i.e., roads, sidewalks, parks, playgrounds, clubhouses, and any other amenities. This form of ownership was pioneered in the early 1960s as developers lobbied for increased density in suburban settings. A chief motivator was the Federal Housing Administration’s authorization of federal home mortgage insurance in 1963 exclusively for condominium homes in subdivisions with a qualifying homeowner association. In the 1970s, escalating land costs prompted developers to increase community density, i.e., build more homes on less land, while retaining a suburban feel, spawning the popularity of “cluster homes” surrounding open green areas, maintained by the HOA. This form of development and ownership is found in all types of master-planned PUDs including golf, retirement, and resort communities. For further information on common-interest developments, visit the Community Associations Institute. Homeowner Association (HOA) – Since 1964, homeowner associations (HOAs) have become increasingly common as residential development has become more structured and formalized. TheCommunity Associations Institute trade association estimates that HOAs governed 23 million American homes in 2006. A Homeowner Association (HOA) is an organization initially created by the developer of a master-planned community (MPC) or planned unit development (PUD) for the purpose of providing benchmarks for governance of the development, management, and sales of a residential project. Creating the governing entity allows the developer to exit the project financially and legally by transferring ownership of the association to the homeowners. This is typically accomplished after a pre-established number of properties have been sold. Most HOAs are incorporated and subject to state law governing not-for-profit corporations, but are implemented by a Board of Directors comprised of the residents (members). HOAs provide services, regulate activities, levy assessments and have the right to impose fines. Each member (resident) of a homeowners’ association pays assessments that are used to cover the expenses associated with the maintenance of the development. Common expenses include landscaping of common areas, upkeep of the community amenities, insurance, management company or on-site manager costs, security personnel, etc. There are varying degrees of conformity required in a HOA-governed development. Housing style, size and color, landscaping, fencing, etc., are typically mandated, and restrictions as to the use of the property may also be imposed including the types of vehicles that may be kept at the home, and pet restrictions. When a homeowner purchases a home governed by a HOA, he/she signs a document agreeing to the covenants, conditions and restrictions associated with the development. If the property is sold, the seller ceases to be a member of the association and the new owner becomes a member. For further information about homeowners associations, visit the American Homeowners Association website. Covenants, Conditions and Restrictions (CCRCs) – CCRCs are the governing documents that dictate how the homeowner’s association operates the community. The documents provide the policies, procedures, rules and regulations that the owner, their tenants and guests must follow. When buying a home, it is important to understand the restrictive covenants, i.e., deed restrictions that are in place for the real estate being purchased, as they dictate how one can and cannot use the property. Some common residential community deed restrictions include mobile homes and commercial uses. A more specific example would be the numbers of structures permitted on a given building lot. In some cases, a guesthouse would be permitted, while in others the building lot may be restricted to a singular unit. It is the responsibility of the elected Board of Directors to enforce the rules and regulations set forth in the CCRCs. Policies communicate, organize and focus the resources of the HOA. Procedures are set to accomplish a particular objective. For instance, each resident is a member of the homeowners’ association and as such pays assessments to cover the expenses associated with the maintenance of the community. The procedure for the collection of these assessments would be outlined in the CCRCs. Rules, regulations and restrictions are set forth within the CCRCs to define the allowable uses of the common elements of the community, the architectural guidelines for the residences, and the behavior of residents and guests. Some examples include pets, parking, noise, exterior modifications, use of the common facilities, tenant and guest activities. If a homeowner breaks a rule, penalties can include a fine, forced compliance, and even a lawsuit. The Covenants, Conditions and Restrictions serve to provide a residential development with a standardized appearance and control over the activities that take place within its boundaries. When enforced, CCRCs effectively serve to protect property values. A buyer should receive a full copy of the CCRCs prior to closing on the purchase of property. Homeowner Association (HOA) By-Laws – The HOA by-laws set forth precise guidelines with respect to how the homeowners’ association operates. Issues that are typically defined in the by-laws include the composition of the Board of Directors, the method by which the Board is elected, the terms of office including term limits, the handling of Board vacancies, when elections should take place, how the removal of Board members should be performed, and when/how often meetings should take place and the associated requirements of notification. Other issues addressed in the by-laws include voting rights and qualifications, the requirements for a quorum, ballot tallying procedures, an explanation of how funds will be handled, and by-law amendment regulations and adoption procedures. Amenities – Any tangible or intangible benefit associated with real property, particularly those that increase its attractiveness or value and contribute to its comfort or convenience, is deemed an amenity. In a residential community, tangible amenities may include golf, a swimming pool, tennis courts, dining and fitness facilities, a clubhouse, parks, dedicated walking/biking trails, a lake or fishing streams, and a manned, gated entrance. Intangible amenities may include views, nearby activities, a highly rated school, and services such as concierge, valet, and on-site program directors and instructors. Examples of amenities relative to individual homes include appliances, window treatments, specialized flooring, cabinetry and countertops, fireplaces, enclosed exterior living areas, garages, and a swimming pool or hot tub. Both community and individual home amenities add to the value of property. Wellness Amenities – Wellness and health-related activities have become increasingly popular in both residential and resort environments, particularly with the Baby Boom generation. Guided hiking and biking, fishing and kayaking, fitness facilities and programs that include classes in Yoga, Tai Chi, spinning, health and cooking, meditation, etc. are becoming common in upscale residential communities. The Spa is perhaps the most popular wellness amenity and residential communities are meeting the demand by providing Spa services if not full-service on-site Spa facilities. Family participation in wellness is being encouraged with multi-generational programs that focus on everyone from the children to the grandparents. Security – Security is a major issue with respect to today’s living conditions, and in this regard, nearly all newer subdivisions, master-planned communities, and PUDs are now gated. The term “controlled access” refers to a manned gate or an electronic gate that lifts when a qualified auto with an electronic device or sticker approaches, or upon the insertion of a dedicated key card. A manned gate is typically operated by a full-time staff, generally supported by a computer system that provides the names of all residents that have property access, and accommodates guest access by resident request. Roving security guards are often employed to maintain a sense of safety on a 24-hour basis. Security staff services are typically procured from an outside resource and become an expense to the HOA. In the alternative, community watches are often established utilizing the volunteer services of the residents. Common Area – In condominium and cooperative housing projects, common areas are those that are not owned by an individual owner of a residential unit but shared by all owners, either by a percentage interest or owned by the management organization (HOA). In multi-family projects, such as condominium apartment buildings, the common areas can include the lobby, hallways, parking garages, laundry rooms, gathering spaces, etc. In residential communities, common areas may include recreational facilities, clubhouses, community centers, parks and other outdoor open space, parking, landscaping, fences, and all other jointly used space. Management of the common areas is the responsibility of the homeowners’ association or the cooperative Board of Directors, which collects assessments from the owners that are applied to the maintenance, insurance, and reserves for replacement of improvements within the common

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW TO USE YOUR BASEMENT AS A RENTAL

Renting out part of your home can boost cash flow, but first take a look at what it takes to be a landlord. By Pat Mertz Esswein, August 2011 Homeowners feeling the pinch from the stumbling economy are tapping a source of cash close to home: their basement, attic or extra bedroom. Of course, financialhardship isn’t the only reason to rent out part of your home. This option may also appeal to you if your house feels too big or too empty (perhaps because the kids have flown the nest) or you want to supercharge your savingsor pay off your mortgage faster. How many legal hoops you’ll need to jump through depends on whether you create a separate unit in the basement or share your living space with a housemate. If you rent out a separate unit -- with a kitchen and full bath -- you’ll be subject to municipal rules that govern the conversion of a single-family dwelling into a multifamily one, as well as landlord-tenant laws. But if you share your space, you’re probably off the legal hook (although you should still check out any zoning or homeowners-association restrictions). What if you ignore the rules and rent your space under the table? A lot of landlords do, but that could have legal and financial repercussions. Advertise smart. Before you list your unit for rent, check out the amenities and rents for similar units that your competitors are advertising. The most popular spots for ads are Craigslist or www.sabbatical.com; local classifieds, list serves and bulletin boards; and the housing offices of local employers and colleges. Advertisement Most landlords include the cost of utilities in the rent or set a flat monthly fee. Often, that’s because a city may prohibit you from installing separate meters, creating a separate address for the apartment or adding a second mailbox. Fair-housing laws will govern what you can -- and can’t -- say in your rental ads and the rationale that you use for choosing one applicant over another. You can, for example, prohibit pets altogether or allow them conditionally based on breed or size. As an owner-occupant of a property with four or fewer units, you’re exempt from the requirements of the federal Fair Housing Acts, which prohibit discrimination against tenants based on race, color, religion, national origin, family status, disability or gender. However, states (notably California) and municipalities may step in with their own anti-discrimination laws. Screen tenants. Perhaps nothing could make life more miserable than a problem tenant living downstairs. You want a tenant who will pay the rent on time, take good care of your property and not create excessive noise or hassles. Ask all prospects (including co-tenants) to fill out an application so that you can verify their identity, employment, credit, rental history and references. It’s a good idea to ask them to sign a separate release that gives references permission to talk with you. To help you assess an applicant’s qualifications, hire a tenant-screening service (the cost is usually $30 to $50 per report). The service will draw and analyze data from multiple sources, including at least one of the three major credit-reporting agencies (Equifax, Experian and TransUnion) and public sources of eviction records and criminal history. Among services to consider: CoreLogic Safe-Rent Services, TransUnion SmartMove, MyScreeningReport.com, and E-Renter.com. You’ll need permission from your applicants; you can charge an application fee to cover the cost. If, based on a report, you decide not to rent to someone, you must notify him or her. One downside to using screening agencies is that public data, especially criminal history, may be neither up-to-date nor accurate.  To verify that an applicant hasn’t been evicted recently, you can ask for a current rental receipt. Portman says that nothing beats old-fashioned checking of references. One tip, though: A current landlord who wants to get rid of an undesirable tenant may offer a glowing recommendation. To get the real scoop, contact the applicant’s previous landlord. Go with a monthly lease. If you lock a renter into a year-long contract and then discover that you can’t stand your tenant, you’re stuck -- unless your tenant commits an evictable offense, such as not paying the rent. With a month-to-month lease your agreement will “self-renew” every month unless either you or your tenant calls it quits, with proper notice, for any reason that isn’t discriminatory or retaliatory. The lease form provided with Every Landlord’s Legal Guide is a master document you can amend according to your state’s law regarding such items as security deposits and your access to the apartment. You should charge a security deposit (usually limited by state law to one or two months’ rent) to cover a departing tenant’s unpaid rent or the cost to repair damage and clean beyond normal wear and tear. You may want to charge a pet-damage deposit, too. State law may require you to put the security deposit into an escrow account and pay interest on it. Call your insurance agent. With a tenant comes increased risk. Loretta Waters, of the Insurance Information Institute, which represents the insurance industry, suggests that you take these precautions: First, require tenants to show you proof of a current renters insurance policy. That will decrease the likelihood that they will sue you for the loss of their possessions after theft, flood or fire, if they could show negligence on your part. Second, notify your homeowners insurance company so that it is aware of this change in your risk profile. Eric Vaith, of USAA, says that given the access your tenant may have to your home and because theft of certain valuable items -- such as jewelry, fine art, guns and the like -- will be subject to the limits of your homeowners coverage (typically a total of $2,000 to $3,000), you should purchase a rider to cover them. Finally, consider buying a personal umbrella policy to provide liability protection beyond the limits of your homeowners policy. Don’t assume that your current liability coverage will sufficiently protect your assets. Injured renters will try to find money wherever they can, and if they sue, they may go after your future earnings, says Vaith. You can get a $1 million policy for about $150 to $200 annually; each million thereafter will run you another $60 to $100 annually. Report the income to the IRS. You generally must add rental income to your gross income for tax purposes. But you can offset it with deductible expenses related to the rental unit, such as the cost of painting the unit or buying an umbrella liability policy. You can depreciate the rental unit and the furniture and equipment you install in it, as well as deduct a prorated portion of your mortgage interest, qualified mortgage insurance premiums and real estate taxes on Schedule E of your Form 1040. For more information, see “Renting Part of Property” in IRS Publication 527, Residential Rental

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

IS SAINT LOUIS THE HOTTEST REAL ESTATE MARKET FOR 2019?

Is Saint Louis The Hottest Real Estate Market For Investors In 2019? October 4th, 2018 by Marco Santarelli St. Louis Real Estate Market Overview St. Louis is most famous for the Gateway Arch built in the 1960s. Alternately looked down on as a Rust Belt city and part of flyover country, it doesn’t generate much attention except when its crime rate or other problems hit the news. However, the St. Louis real estate market holds significant potential. Let’s look at the top reasons to come back to the St. Louis real estate market as an investor in 2019. The St. Louis housing market isn’t limited to the roughly 300,000 people who live in St. Louis, making this the second largest city in Missouri. Instead, the Saint Louis housing market includes almost three million people. That makes St. Louis the 20th largest metro area in the United States. St. Louis Real Estate Market St. Louis Real Estate Market Forecast 2019 Let us look at the real estate data for St. Louis from various sources. According to Zillow’s statistics, the median home value in Saint Louis is $118,800. Saint Louis home values have gone up 4.7% over the past year and Zillow predicts they will rise 8.8% within the next year. The median list price per square foot in Saint Louis is $123, which is lower than the St. Louis Metro average of $129. The median price of homes currently listed in Saint Louis is $149,900 while the median price of homes that sold is $138,100. The median rent price in Saint Louis is $1,000, which is lower than the St. Louis Metro median of $1,095. St. Louis Real Estate Market Forecast 2019 Graph Courtesy – Zillow.com St. Louis Real Estate Market Trends 2018 St. Louis real estate market trends show a 0% week-over-week rise in average listing price and a -1% drop in median rent per month. Trulia has 4,790 resale and new homes in Saint Louis lined up for you, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. While St. Louis real estate market remains more affordable than in many other metro areas, low inventory and strong demand are putting upward pressure on prices. St. Louis Housing Market Summary: Average Listing Price: $245,603 Homes For Sale: 4,790 Median Rent Per Month: $915 Median Household Income: $43,625 Home Owners: 60% Single Residents: 41% Median Age: 38 College Educated: 35% As per Coldwellbanker.com, the median home price in St Louis, MO is $159,900. Currently, there are 4,557 homes listed in St Louis which include 551 condos, 173 foreclosures. NeighborhoodScout’s data show that during the latest twelve months, St. Louis’s appreciation rate, at 4.33%, has been at or slightly above the national average. In the latest quarter, St. Louis’s appreciation rate has been 1.72%, which annualizes to a rate of 7.06%. With a population of 311,404, 140,116 total housing units (homes and apartments), and a median house value of $146,403, house prices in St. Louis are solidly below the national average. Real estate appreciation rates in St. Louis’s have tracked to near the national average over the last then years, with the annual appreciation rate averaging 0.31% during the period. Relative to Missouri, our data show that St. Louis’s latest annual appreciation rate is lower than 80% of the other cities and towns in Missouri. As per Redfin.com’s statistics, the St. Louis housing market is very competitive. Homes in St. Louis receive 1 offers on average and sell in around 41 days. The average sale price of a home in St. Louis was $166K last month, up 7.1% since last year. The average sale price per square foot in St. Louis is $124, up 6.0% since last year. Hot Homes can sell for about 1% above list price and go pending in around 22 days. 10 Highest Appreciating St. Louis Neighborhoods Since 2000: From NeighborhoodScout’s Data S Vandeventer Ave / Mcree Ave St Louis College of Pharmacy / S Vandeventer Ave Tower Grove Dr Martin Luther King Dr / N Garrison Ave Harris-Stowe State U / Market St Washington Ave / N Compton Ave City Center S 39th St / Lafayette Ave Market St / Saint Louis Union Station N Grand Blvd / Cass Ave 10 Best Neighborhoods To Live in St. Louis: From Movoto.com Peabody-Darst-Webbe Soulard The Hill Central West End North Hampton Ellendale Lindenwood Park Skinker-Debaliviere Lafayette Square Saint Louis Hills Saint Louis Foreclosures Statistics 2018 Foreclosures will be a factor impacting home values in the next several years. In Saint Louis 5.6 homes are foreclosed (per 10,000). This is greater than the national value of 1.6. The percent of delinquent mortgages in Saint Louis is 2.2%, which is higher than the national value of 1.6%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Saint Louis homeowners underwater on their mortgage is 15.9%, which is higher than St. Louis Metro at 12.4%. On RealtyTrac, there are currently 1,710 properties in Saint Louis, MO that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 3,777. In August, the number of properties that received a foreclosure filing in Saint Louis, MO was 17% higher than the previous month and 110% higher than the same time last year. Home sales for July 2018 were down 3% compared with the previous month, and up 81% compared with a year ago. The median sales price of a non-distressed home was $116,400. The median sales price of a foreclosure home was $0, or 0% higher than non-distressed home sales. 10 Reasons To Invest In the St. Louis Real Estate Market We’re not going to list major tourist attractions and use that to say you should buy property here, whether to live in or rent out. Instead, here are 10 reasons to invest in the St. Louis real estate market. 1. Its Overall Affordability for Investors The St. Louis real estate market has one other thing going for it: affordability. Taking into consideration both the average household income and the cost of homes in the area, St. Louis continues to be one of the most affordable markets in the country. The median home price in St. Louis is roughly $150,000, though some sources say $160,000. A general trend is a price of $105 to $120 per square foot. You can find many single family homes for sale for less than $100,000; this market is notable for the sheer number of two bedroom homes that attract empty-nesters, single parents and small families. If you take the metro area into account, the median home value is around $250,000. 2. The Affordable Upscale Market Affordable and upscale are relative terms. Some of the most desirable real estate markets in St. Louis are surprisingly affordable to outside investors. The median price of homes in the “expensive” 63103 zip code is barely under half a million dollars. The tony 63105 zip code hovers around the half million mark, too. You have to move far out to suburban zip codes like 63124 to find median listings past the $700,000 mark. Note that this is cheaper than a cheap condo in hot California or New York markets. You could buy two luxury homes in the St. Louis housing market for less than one in hot coastal markets. 3. The True Bargains Are Abundant The large number of vacant homes in the St. Louis real estate market, estimated at 20%, presents an excellent opportunity for those who want to buy, rehab and rent out properties. When you factor in the suburbs, the vacancy rate is still around 6%. St. Louis also has a larger than average number of distressed and underwater homes. In the U.S., roughly 1.5% of mortgages are delinquent. In St. Louis, the rate is 2.2%. Around 10% of homes have negative equity, while that rate exceeds 15% in St. Louis. You’ll be able to find vacant homes, distressed sellers and foreclosures at bargain basement prices here that you can renovate and rent out or sell throughout the St. Louis real estate market. 4. The Market’s Price Stability The St. Louis real estate market has seen strong appreciation over the past three years, finally bringing them out of the low prices they’ve suffered through the Great Recession that really only ended two years ago. In fact, St. Louis properties appreciated on average 26% over the past three years. Yet the market isn’t “hot”. Instead, it is considered balanced, favoring neither buyers or sellers. This suggests that those who buy in this relatively cheap market could enjoy reasonable price increases over time without worrying if they’re buying before a bubble bursts or if their investment will go down in value. 5. The Massive Renter’s Market Around a third of the U.S. population rents. In the downtown St. Louis real estate market, nearly 60% of residents rent, and the rate is around a fifth when you include those in the suburbs. This is a huge rental market that you can take advantage of. Unlike college towns, your ability to find renters doesn’t depend on the popularity of the local college, nor will the value of the property depend on proximity to a particular school. 6. It Is Relatively Landlord Friendly Missouri is more landlord friendly than other states in the area, notably Illinois. For example, it is much easier to evict someone who doesn’t pay their rent than surrounding states. In Missouri, you can file to evict if they’re just a few days late with the rent. There are protections for tenants, especially regarding security deposits. All of this is aside from the fact that the St. Louis real estate market has far more multifamily housing stock than other Midwestern markets. 7. The Strong ROI Depending on the source, median rents range from $900-1000 a month in St. Louis and $1100 a month in the surrounding suburbs. Imagine buying a rental property for $50,000 and renting it out for $500-$1000 a month. You can rent out a studio apartment for $500 a month and a two bedroom for $800. The rare four bedroom apartment or house commands more than $1200 a month. It is hard to beat that ROI without risking your money buying liens and hoping you can secure a property. Because of the city’s age, you can find many older apartment buildings and apartment complexes at a reasonable price and rent them out at a decent rate. 8. The Student Market College towns have a large proportion of renters, but you’re fighting with other investors to find properties to rent out to students. St. Louis’ student market is fairly scattered due to the sheer number of universities. Yet it is large enough to present an opportunity for those who want to rent to students. Traditional universities in and around St. Louis include Blackburn College, Greenville University, Missouri Baptist University, St. Louis University, University of Missouri – St. Louis campus, Washington University in St. Louis and the Southern Illinois University Edwardsville campus. On top of this are various technical schools, seminaries, Bible colleges and junior colleges. 9. The Known Redevelopment Opportunities in St. Louis One of the benefits of master-planned redevelopment is that you know where real estate prices are going to go up due to renewed interest. The Garment District is slated for redevelopment, replacing the empty industrial buildings with homes and workspaces for creative types and new technology companies. The “New Northside” project wants to redevelop the entire north side of St. Louis. That project includes 1500 acres that borders downtown St. Louis. Chippewa Park in south St. Louis is also targeted for redevelopment, too. That renovation includes apartment homes and industrial space. 10. Redevelopment Opportunities in St. Louis’ Suburbs St. Louis is old enough to have aging inner-ring suburbs. You can find redevelopment opportunities in suburbs like University City, home to Washington University in St. Louis. About 800 acres are slated for redevelopment in University City. Wellston is receiving funds from HUD specifically for redevelopment. Investing In the St. Louis Real Estate Market In 2019: The Conclusion St. Louis Real Estate Market If you are a beginner in real estate investment business, it very important to read good books on real estate. You must also learn from successful real estate investors who have retired early on in their lives by investing in some of the best real estate markets like St. Louis, MO. The St. Louis housing market is red hot! Homes are selling fast because inventory is low, creating a banner selling season for homeowners looking to move. If you’re looking for an amazing opportunity, the St. Louis real estate market can’t be beat. There are many opportunities in the St. Louis real estate market to investors regardless of who you want to target for renting or selling a newly renovated home. Similarly, don’t let the country-western touristy image dissuade you from investing in Nashville, TN. There are a number of points in favor of the Nashville real estate market if you are looking for a solid opportunity. One of the best features of the Nashville real estate market is the median property price in the city, which is considered more affordable than most of the other top markets for investing in real estate in the U.S. Although the Nashville real estate market is expected to move a little more slowly in 2018, which would make things better for buyers, the inventory will remain limited, which means that Nashville will remain among the fastest-moving housing markets in the U.S. Also, as the mortgage rates in Nashville remain at record lows, it makes buying a property more affordable now than it was in the previous years. Another housing market in Texas to go for diversifying your investments is the Austin housing market. The Austin housing market may be one of the more expensive ones in the state of Texas, but it stands out for its large rental market and high rental rates. It is an excellent place to invest in real estate in the Lone Star State. Homes in Austin are 23% cheaper than the national average. It may be the second most expensive housing market in the state with a median home price of around $350,000, but it is still far cheaper than California or New York. Buy up condos or townhomes, and you’ll be able to see a sizable return on the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THIS IS WHY INVESTORS SHOULD INVEST IN REAL ESTATE IN KANSAS CITY

THIS IS WHY INVESTORS SHOULD INVEST IN REAL ESTATE IN KANSAS CITY POSTED ON OCTOBER 30, 2018 BY MARK Kansas City Real Estate Kansas City is the largest city in the U.S. state of Missouri, famous for its distinct barbeque cuisine and jazz heritage. Also nicknamed the City of Fountains, the Kansas City is now emerging as a growing market for real estate investments. Overall, the city sees a 1% weekly rise in average listing price. Also, the median rent in the Kansas City Real Estate Market is increasing at the rate of 5% per month. The Kansas City housing market is strong and stable, and in many ways the envy of housing pundits on both coasts. Home sales were up about 7 percent and prices were up about 6 percent throughout the region in the previous year. In 2017, a WalletHub survey for real estate market growth in United States listed the “Kansas City Real Estate Market” at number 18 out of 300 of the fastest growing cities in the US. The city has seen an average rise of 7.5% in its real estate Median Sales Price in the year 2017. The average number of days a home is on the market in the Kansas City market about 15 days. Kansas City Real Estate Kansas City Real Estate – Market Trend & Forecast 2018 According to Zillow.com, the median home value in Kansas City is $136,200. Kansas City home values have gone up 10.5% over the past year and Zillow predicts they will rise 3.4% within the next year. The median list price per square foot in Kansas City is $127, which is lower than the Kansas City Metro average of $136. The median price of homes currently listed in Kansas City is $195,000. The median rent price in Kansas City is $995, which is lower than the Kansas City Metro median of $1,150. The percent of delinquent mortgages in Kansas City is 1.4%, which is lower than the national value of 1.6%. Currently, Zillow has 3135 homes for sale and 2690 homes for rent in Kansas City Real Estate Market. The Zillow Home Value Index for April, 2018 was $136,200. Zillow’s prediction of the Zillow Home Value Index for April, 2019 is $140,000, which means a growth rate of 3.4% in 1 year. As per Zillow, the homes in Kansas City metro gained $10.2B in value in 2017. In 2017, more than 1,000 homes have sold in the 66062 ZIP code, making it one of the Kansas City area’s top selling ZIP codes. Kansas City Real Estate Market Forecast 2018 As per Trulia.com, the Trends in Kansas City Real Estate Market show a -3% week-over-week drop in average listing price and a 3% rise in median rent per month. Currently the median rent per month is $1000 and the average listing price is $129,101. Top 10 Reasons To Invest In Kansas City Real Estate Market In 2018 The following are the top 10 reasons to invest in Kansas City Real Estate Market in 2018. Real Estate Market Overview of Kansas City In the metropolitan area, the population is estimated at 2.1 million with the median household income of $57,000. The unemployment rate is 4.4%, while the average home price is $86,000. Median rent is $993, with an estimated $667 monthly cash flow. It’s no wonder that the Kansas City real estate market is a great place to invest. Kansas City is the largest city in Missouri and is the sixth largest in the Midwest. It hosts the Kansas City Chiefs as well as the Kansas City Royals. It’s home to some of the Best Ribs in America. The city has over 200 water fountains, making it only second to Rome, Italy, hence the nickname “City of Fountains.” It is also important to remember that only Paris, France has more Boulevards. Employment Kansas City has seen a continuous rise in employment prospects over the last 2 years, a trend that directly impacts the Kansas City real estate market. From 2017 to 2018, the city registered a remarkable 1.9% in terms of overall employment. This could b further broken down to 3.8% in professional and business services, 3% in terms of government-sponsored employment opportunities and 1.9% in the trading, transport and utilities sectors. Constant Real Estate Friendly Renovation Projects Kansas City has started to do some major revitalization downtown. More than $6 million has been spent giving the downtown area a facelift and new makeover, including, apartments, offices, condominiums. These facelifts have also been done both indoor and outdoor malls, restaurants and places for concerts, plays and other forms of entertainment. Kansas City Real Estate – Trends and Statistics in 2018 Three bedroom homes were listed around $141,000 in January 2017, making it lower than the national average by 25%. RWN Development-Group, LLC members’ neighborhoods were less than $86,000 median price in January 2017. All these serve towards making Kansas City properties attractively affordable and appealing to investors who are looking for gains in cash flow. In the same month, the rent on a three bedroom was $1,224, making it 0.87% of the cost of buying a house listed at $141,000. Tourists & Art Destination Kansas City is a great attraction for tourists, especially art-lovers. Housed by several museums and art destinations, the city is famous for its Jazz Museum as well as the Nelson-Atkins Museum of Art that boast over 40,000 works of art, vintage antiques and contemporary works. The influx of tourists into the city has a direct relationship with the growth of the city’s real estate market. The Growth in Kansas City The national average of growth in cities is 4.45%. In Kansas City, in 2010, it was higher than 4.5%. It’s growing with the national rate and is expected to grow even faster in the next few years. Between the years 2013-2015 the annual growth was 15,000 then raised to 20,000 between 2015-2016. Kansas City is home to some of the biggest companies, such as H&R Block, Sprint, Hallmark and BNSF, to help to fuel the attraction of the Kansas City real estate market. Rich and Stable Neighborhoods The city is surrounded by neighborhoods like River Market District as well as the 18th & Vine District and the Country Club Plaza on its north, east & south sides respectively. These vicinities, in combination with the city’s vibrant real estate market, comprise of all amenities residents and non-residents alike can take advantage of and put their investments in. Some of the best neighborhoods of Kansas City are as follows: The Johnson County of Kansas City: It is high on the list of home buyers as an ideal place to raise a family. It has highly accredited school districts within the county, which include Shawnee Mission, Gardner Edgerton, Spring Hill, Blue Valley, Olathe and De Soto. Most subdivisions see steady property valuation increases year after year. The Prairie Village, Kansas City: It is another good neighborhood with low crime rates, mature trees, plenty of quiet neighborhood parks and accessible community pools. Leawood, Kansas City: It is a low crime rate area and it’s safer than 79 percent of U.S. cities. The residents have a median household income of $133,702, so they are quite well off. The region is home to the biggest Methodist church in the nation – United Methodist Church of the Resurrection. Lenexa, Kansas City: This neighborhood has the median listing price of $394,000. Fifty-four percent report some school education, contrasted with the national average of 22 percent for all cities and towns. Favorable Weather The weather in Kansas City is beautiful, and usually clear and sunny. You can almost always count on the 4th of July to be a great day to BBQ and shoot off fireworks and watch your neighbors shoot theirs, creating a competition. We’ve witnessed the fireworks while being laid over in nearby Independence, Mo. The neighborhood fireworks shows have always been as big as the city’s, only they last half the night. During the shows, everyone in the neighborhood waters the top of their houses for a week straight to avoid catching fire. Where else in America can you find that? Even better, the people are friendly and the weather is inviting. There are nearby lakes for boating, fishing, swimming, and camping. The weather is almost always enjoyable. They get most of their rain in the spring of April and summer month of June. City’s Rich Culture The city is known for its distinct barbeque cuisine and uniquely crafted breweries, which makes it a preferred destination for foodies. The ancient heritage of Jazz music makes it suitable for immigrants who are passionate about music. The city lies on the shores of Missouri & Kansas River with a landscape full of fountains. The overall ambience and accommodating culture is sure to attract more and more residents into the city, which will prove to be a boon for investments in Kansas City Real Estate Market. Cost of Living Another great factor that is seen as a boon to the Kansas City real estate market is the cost of living. The cost of living in Kansas City is reasonable and affordable. With the cost of rent and the price you might pay for a house already discussed, there’s the cost of day to day expenses to consider. A basic lunch around the business district is around $12, unless you go to a fast food restaurant and order a combo meal, then you’re looking at $7. Milk is around $3.50 a gallon, a 2 lt. A bottle of Coca- Cola is $1.82. These prices are about the same as the national average at –1%. Housing is at 8% below. Kansas City is 15% below Oklahoma and 8% below Indiana. In fact, New York City is 129% above compared to Kansas City, while 14% below Miami, Fl and 23% below Chicago. Should You Invest In Kansas City Real Estate: The Verdict In closing, the Kansas City real estate market is expected to see an incredible amount of growth in 2018 with a year over year growth of 6.16% in the median household income. Low median sales prices, which in return, drives a solid rent is another reason to look into the Kansas City housing market. Add to that the weather, the many activities at your disposal and the famous “Kansas City BBQ.” There isn’t much left to desire when making an investment in the real estate market. Take a look around, make some calls and talk to some of the people around Kansas City before you decide. We recommend 8 other hottest US real estate markets for investors looking to build their portfolio of single family rental homes. Following the housing market decline in 2007, single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT TO DO IF YOU THINK AN HEIR MAY MISUSE AN INHERITANCE

Steps for when you fear your heirs will misuse inheritance On behalf of Attorney Ted Disabato of TdD Attorneys at Law LLC on Monday, November 26, 2018. You may have a substantial amount of money and assets to leave behind to your children. However, a conundrum many people find themselves in is that they want to provide for their children, but one or more of their kids are untrustworthy. A child may suffer from a substance abuse problem, and leaving such a person with a large amount of money with no strings attached could exacerbate the addiction. There are numerous estate planning tools you can utilize. In the above scenario, the best one to pursue may be a trust. This allows the trustee to disperse the inheritance in various payments and place conditions on how and when the beneficiary receives the payments. This allows you to provide for loved ones without causing any harm. Select a reliable trustee Instead of leaving behind a single installment of money to beneficiaries, you can instead select a trustee who decides when and how beneficiaries receive money. When an adult child has a substance abuse problem, the trustee can keep an eye on the child and only provide funds once the child has hit certain milestones. For example, after the child has remained in AA for a certain number of months, he or she receives a certain amount of the inheritance. To avoid creating ill will, you should select a trustee who is not another beneficiary. A close family friend or a financial institution would serve as a great trustee. Set up the trust with certain considerations in mind To avoid any confrontations after death, it is a good idea to consult with loved ones about what your trust will include. This can serve as an opportunity to speak with the heir with substance abuse problems to address your concerns about his or her lifestyle. Knowing he or she may not get money from an inheritance could serve as a driving force in that person seeking help.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MORE PEOPLE ARE RENTING IN THE U.S THAN AT ANYTIME IN THE PAST 50 YEARS

A decade after the housing bust upended the lives of millions of Americans, more U.S. households are headed by renters than at any point since at least 1965, according to a Pew Research Center analysis of Census Bureau housing data. The total number of households in the United States grew by 7.6 million between 2006 and 2016. But over the same period, the number of households headed by owners remained relatively flat, in part because of the lingering effects of the housing crisis. Meanwhile, the number of households renting their home increased significantly during that span, as did the share, which rose from 31.2% of households in 2006 to 36.6% in 2016. The current renting level exceeds the recent high of 36.2% set in 1986 and 1988 and approaches the rate of 37.0% in 1965. Certain demographic groups ­– such as young adults, nonwhites and the lesser educated – have historically been more likely to rent than others, and rental rates have increased among these groups over the past decade. However, rental rates have also increased among some groups that have traditionally been less likely to rent, including whites and middle-aged adults. Young adults – those younger than 35 – continue to be the most likely of all age groups to rent. In 2016, 65% of households headed by people younger than 35 were renting, up from 57% in 2006. Rental rates have also risen notably among those ages 35 to 44. In 2016, about four-in-ten (41%) households headed by someone in this age range were renting, up from 31% in 2006. Rental rates also went up among households headed by someone ages 45 to 64, rising from 22% of households in 2006 to 28% in 2016. But among the oldest Americans – those 65 or older – the rental rate remained steady at around 20%. Black and Hispanic households continue to be about twice as likely as white households to rent their homes. In 2016, 58% of black household heads and 54% of Hispanic household heads were renting their homes, compared with 28% of whites. But all major racial and ethnic groups were more likely to rent in 2016 than a decade earlier. The movement toward renting has also occurred across all levels of educational attainment. From 2006 to 2016, rental rates increased among households headed by someone with less than a high school degree, as well as among those headed by a college graduate. Even so, college graduates are the least likely group to be renters. In 2016, 29% of college-educated household heads were renters, compared with 38% of household heads with a high school degree only or some college experience and 52% of household heads who did not finish high school. The increase in U.S. renters over the past decade does not necessarily mean that homeownership is undesirable to today’s renters. Indeed, in a 2016 Pew Research Center survey, 72% of renters said they would like to buy a house at some point. About two-thirds of renters in the same survey (65%) said they currently rent as a result of circumstances, compared with 32% who said they rent as a matter of choice. When asked about the specific reasons why they rent, a majority of renters, especially nonwhites, cited financial

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

LLC VS LLC WITH S CORP ELECTION – BEST OF BOTH WORLDS

LLC Electing S Corp Status: The Best of Both Worlds It isn't either/or when choosing an LLC or S corporation. You can have the best of both worlds. Structuring your business as an LLC and then electing S corporation status has long-term planning advantages and can have an immediate payoff in avoiding the new Medicare taxes that started in 2013. So you are ready to start a small business. You have a wonderful vision for a unique new service or special product. Your business plan is a work of art. You are ready to cast off from the safety and security of your cubicle at the office and blaze a new trail of entrepreneurship. Congratulations! Now, as you start, run and grow your new business, how do you intend to structure it so that it becomes an efficiently operating, thriving enterprise? Two of the most popular organizational forms today are the limited liability company (LLC) and the S corporation. But what if I told you that you could have the best of both worlds, so to speak, by establishing an LLC and then electing to be treated like an S corporation for tax purposes? Well, it can be done. Business owners--and even attorneys and accountants--can get twisted up in the debate over which is best, the LLC or the S corporation. But it's not necessarily an either/or proposition. Rather, you can set up an LLC and, after setting it up, you can elect to have the LLC treated as an S corporation. If your LLC operates an active trade or business, and payroll taxes (SECA taxes) on the owner or owners are high, you may find that an S corporation election is the best choice. Both organizational forms share the characteristic of "passing-through" their income to the owner(s). Both also provide their owner(s) limited liability protection. But each has some distinguishing features, too. You, as a new business owner, will want to consider the differences as you choose the form for your enterprise: An LLC beats an S corporation for ease of operation and administration. An LLC beats an S corporation for flexibility in allocating percentage of profits or losses among the owners. An S corporation beats a typical LLC for flexibility in paying its earnings to owners as either earned income in the form of salaries and wages or as distributions. An S corporation beats an LLC for various tax planning purposes. Before choosing one of these options--or a combination of the two--determine the features that are most important to you and your business. LLC Offers Limited Liability and Flexibility An LLC is a business structure authorized by state statutes. It is a structure designed to provide the limited liability features of a corporation along with the tax efficiencies and operational flexibility of a sole-proprietorship or a general partnership. As a pass-through entity (unless it chooses tax treatment as a corporation), all of an LLC's profits and losses pass through the LLC to its owner(s), known as member(s). As with a proprietorship or partnership, each individual member reports the profits and losses on his or her federal tax return. This avoids the double taxation to which a regular corporation and its owners are subjected. However, the LLC still provides a limit on the personal liability of its member(s) in much the same way a corporation does. Typically, a member's personal liability is limited to his or her investment in the LLC. This feature distinguishes the LLC from a sole proprietorship or general partnership, in which each owner is subject to liability for all of the debts of the business. The features of an LLC may make it an excellent choice of structure for your new business enterprise. The following summarizes the most significant features of the LLC: Limited liability for owners Pass-through of income to owners, avoiding double taxation (unless corporate treatment is elected) Ease of operation - fewer filings, fewer forms, fewer start-up costs, fewer formal meetings and record keeping requirements Fewer profit-sharing restrictions - earnings distributed as members see fit; not based on percentage of capital contributions Entire net earnings of LLC passes through to owners in the form of self-employment income subject to 15.3 percent SECA tax (self-employment tax for Social Security and Medicare) The IRS does not recognize the LLC as a taxpayer classification for federal tax purposes Tip Federal tax treatment is separate and distinct from the limited liability provided to members under state law. Whether an LLC is treated for federal tax purposes as a sole proprietorship, a partnership or a corporation, the members are still shielded from liability. For tax purposes, by default, an LLC with one member is treated as a sole proprietorship. By default, LLCs with more than one member are treated as partnerships. However, an LLC can elect to be treated as an association taxable as a corporation by filing Form 8832, Entity Classification Election. And, once it has elected to be taxed as a corporation, an LLC can file a Form 2553, Election by a Small Business Corporation, to elect tax treatment as an S corporation. S Corporations Provide Planning and Compensation Options An S Corporation is a corporation formed by complying with state incorporation statutes that then elects (by submitting Form 2553 to the IRS) to pass corporate income, losses, deductions and credits through to its owners (shareholders) for federal tax purposes. S corporation owners report the income and losses on their personal tax returns and are assessed tax at their individual income tax rates. Thus, S corporations avoid double taxation on the corporate income. Certain limitations are placed on a corporation that seeks treatment as an S corporation. But if these limits don't interfere with your business plans, the S corporation may be a good choice for you. Following are the main S corporation limitations: It must be a U.S. corporation It must have no more than 100 shareholders. However, all members of a family are counted as a single shareholder. Spouses are also counted as a single shareholder Its shareholders can only be individuals, certain trusts, and estates; they may not be partnerships, corporations or non-resident aliens It can have only one class of stock. But, it can have voting and non-voting stock within that single class of stock Certain financial institutions, insurance companies, and domestic international sales corporations are ineligible A key feature of the S corporation is its ability to minimize overall tax liability for you and your business. Because of its nature as a corporation, only the wages paid to its owner/employees are earned income subject to FICA tax for Social Security and Medicare. Other net earnings that pass-through to the owners are considered dividend income. This means those payments not subject to SECA tax and—provided the shareholder material participates in the business—they are not considered passive income.Thus, an S corporation can do some tax planning that can not be accomplished in a typical LLC. Work Smart The ability to split income between compensation and dividends has become more important as of 2013. Since 2013, two new Medicare taxes are imposed on higher-income taxpayers. One is a 0.9 percent surtax on all compensation over $200,000 ($250,000 for married filing jointly). The other is a new 3.8 percent tax on investment (passive) income if the taxpayer's modified adjusted gross income exceeds $200,000 ($250,000 for married filing jointly). Thus, the ability to split income can aid in reducing exposure to these new taxes. Of course, the compensation that you pay yourself must be reasonable--not too low or too high--if you want the arrangement to stand up to IRS scrutiny. Reasonable compensation turns on many factors, but can be summed up by a "yes" answer to the question: "Is the compensation what would be expected for an individual with the background and qualifications in other company's of this size in this industry. You can read more about reasonable compensation in our article, "Understanding the Tax Consequences of Compensation." The most important features of the S corporation include the following: Limited liability for owners Pass-through of income to owners, avoiding double taxation The business exists independent and separate from the owner/shareholders Complex administrative operation--more forms and filings required, more formal meetings and record keeping requirements imposed (bylaws, meeting minutes, written resolutions, etc.) Profit-sharing restrictions--earnings distributed proportionate to capital contributions of shareholders Flexibility in distributing earnings of the corporation by paying wages and salaries to owner/employees and passing-through other net earnings as passive income to owners Combining the Benefits of the LLC and the S Corporation If you think you can benefit from the combined features of an LLC and an S corporation, the surprising possibility exists to establish your business as an LLC, but then make the election to have it treated as an S corporation by the IRS for tax purposes. You'll have to make the special election with the IRS using Form 2553. It's no more difficult that setting up a corporation and then electing S corporation status. But it may have some added benefits. Let's take a look. From a legal standpoint, your enterprise will be an LLC rather than a corporation. Therefore, you will have the benefit of ease of administration-fewer filings, fewer forms, fewer start-up costs, fewer formal meetings and record keeping requirements. I can hear your sigh of relief! From a tax perspective, your enterprise will be treated as an S corporation. You'll still have the pass-through of income, avoiding double taxation, same as if your LLC was treated as a proprietorship or partnership. Without the administrative hassles of actually being a corporation, you will still benefit from the IRS treating your business as one. To the IRS, your business will exist separate and independent from you--its owner. Therefore, the business entity can pay wages and salaries to you or to other owners. This amount will be subject to FICA tax and other withholding requirements. But then, it can distribute the remaining net earnings to you and the other owners as passive dividend income, not subject to SECA tax. Being treated as an S corporation may provide opportunities for tax planning to minimize the overall tax liability for your business and you. It may allow your business to take advantage of better tax treatment for certain fringe benefits, too. Obviously, you need to carefully consider the pros and cons of different forms of business organization. Be sure to consider how all the aspects-legal, tax and operational--of each organizational form will impact your unique business enterprise. Seeking professional advice from a CPA or tax attorney is always a wise practice when making choices like this that can affect your business for many years to come. But setting up an LLC and then electing treatment as an S corporation may just give you the best of both worlds--the ease of administration of the LLC and the tax planning opportunities of the S corporation. Talk to your professional advisor

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

12 WAYS TO BE CAPITAL GAINS TAX IN THE AGE OF TRUMP

12 Ways To Beat Capital Gains Tax In The Age Of Trump Got capital gains? Don’t fret. Under the Trump tax overhaul, effective as of tax year 2018, most of the old tricks to avoid or reduce the capital gains tax bite on sales of appreciated assets still work, albeit with tweaks. “The zero-percent capital gains rate is a terrible thing to waste,” says Timothy Wyman, a certified financial planner in Southfield, Michigan. But what’s really got wealth advisors and their rich clients excited is a powerful new triple-tax-efficient play, investing in low-income neighborhoods designated as opportunity zones. “It’s a big one,” says Jayson Morgan, a tax partner at Marcum in Irvine, California. Here are 12 planning ideas. We’re talking about long-term capital gains, that is net profits on investments held more than a year. Short-term gains are taxed at ordinary income tax rates. If you’ve got gains, you’ll likely want to choose more than one strategy. Opportunity Zones.Investors in “opportunity zones” (via a fund that directs investments in real estate or companies located there) get temporary deferral of accumulated capital gains, up to a 15% basis step-up on capital gains invested, and here’s the kicker—a capital gains bill of zero on new gains for investments held 10 years. The IRS just announced the final round of Opportunity Zones and has published FAQ. The goal is to get capital to struggling low-income census tracts, but the Brookings Institution explainsherehow already gentrifying neighborhoods qualify. The Economic Innovation Group has amap here. Manage Tax Brackets And Harvest Gains.The planning for most taxpayers lies in capturing the zero-percent rate. The capital gains tax rates are the same under the new tax law, just now they have their own brackets. For 2018, a couple can have up to $77,200 in taxable income (add on the $24,000 standard deduction, and it’s over $100,000) to snag the zero-percent capital gains rate. Next, there’s a 15% rate and at over $479,000 for a couple, there’s a top 20% capital gains tax rate, but watch out because an additional 3.8% net investment income tax kicks in for couples with $250,000 of income. So, in practical terms, there’s also an 18.8% rate, and the top rate is really 23.8%. Don’t forget state capital gains taxes in your calculations. In California with its top 13.3% rate, you can get a 37.1% total capital gains tax bite. “It’s a significant number,” says Morgan. Even worse, the new tax law limits the state and local tax deduction, so the state bite becomes more taxing. What does this mean in practice? Steve Bigge, a CPA in Green Bay, Wisconsin, has a recent retiree client, with a concentrated position of stock he wants to get out of because he’s getting bearish. In an abnormally low-income tax bracket because his pension and deferred compensation haven’t started kicking in, he’s selling $350,000 of stock with $120,000 of built-in gain, recognizing $40,000 of gain a year. He’ll owe zero percent on half of that and 15% on half, for an effective rate of 7.5%. “We try to use as much of the zero-percent bracket as we can,” Bigge says. You can sell winning investments to use up the 0% and/or 15% capital gains brackets and rebuy the same stock to reset the basis. Just watch out that you’re not bumping up against the 3.8% NIIT, warns Bigge. Harvest Losses.Consider selling losers in your portfolio to offset any gains. If your losses are greater than your gains, you can deduct up to $3,000 a year against your ordinary income, and carry over any excess to future years. Family Gifts.You can make annual exclusion gifts of up to $15,000 per individual each year. If you give highly appreciated stock to your child or parent, she takes your low basis, but when she sells it—if she’s in a lower bracket—her capital gains rate is 0%. That could mean the family saves a 23.8% tax bill. Wyman has grandparents using this technique to help their granddaughter through medical school. A 70-something couple use it to leverage gifts to their 50-something kids. “It’s just a way to make your dollars go longer,” he says. Watch out: If the child is under 24, the new tax law applies trusts tax rates to “kiddies” (seeThe Kiddie Tax Grows Up). Gifts To Charity.Under the tax overhaul, 61% fewer taxpayers will claim itemized deductions, including the charitable deduction. But giving appreciated stock to charity still works to avoid capital gains tax. One solution to get both breaks is to put a multiple of your typical annual gifts into a donor-advised fund (that counts as a charitable gift, but you grant out the money later). Wyman just helped a soon-to-be-retired client who used to give $5,000 a year to charity, but wouldn’t get the income tax deduction for a $5,000 gift in 2018. So instead, he transferred $50,000 of appreciated securities into a donor-advised fund. He’ll get the income tax deduction for the fair market value of the stock and have no capital gains tax hit. (For more charity strategies, seeCharity In The Age Of Trump: How To Maximize Impact And Minimize Taxes.) Buy And Hold.Die with appreciated stock and your heirs get an automatic step-up in basis to its current market value at the date of your death, so you escape capital gains tax. 1031 Exchange.The tax overhaul limits this capital gains deferral strategy to real estate assets only. You roll all the capital gains from the property you’re selling into a new property, which takes on the old property’s low basis, keeping money working for you that would have gone to pay taxes. Invest In Your Primary Residence.The House version of the tax overhaul limited this big break, but it ended up intact in the final version of the law. Individuals can exclude up to $250,000 of gain in their primary residence. Married couples get a $500,000 exclusion.Keep receipts of capital improvementslike a new roof or soaking tub that add to your home’s cost basis. Go Roth.Stuff aftertax money into a Roth IRA or Roth 401(k), and all future growth and distributions are tax-free (i.e., no capital gains tax). Save For College With A 529.The money you stash in a 529 college savings plan grows tax-free and withdrawals for education expenses are tax-free (i.e., no capital gains). The tax overhaul expanded these plans to cover K-12 expenses, but check if your state follows federal tax treatment for K-12 withdrawals, or you could be hit with a state capital gains tax bill. Max Out An HSA.A health savings account saves you money even if you pull funds out to pay for healthcare expenses right after making contributions. Even better: Use the investment option to save for future healthcare expenses in retirement. The money goes in pretax, grows tax-free, and comes out tax-free.Check out the 10 supersaverswith $200,000-plus health savings accounts at HealthEquity. Move To A Tax-Friendly State.If you might move soon to a state without an income tax, such as Florida or Nevada, consider holding off on a sale that would otherwise trigger state capital gains

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

12 WAYS TO BEAT CAPITAL GAINS IN THE AGE OF TRUMP

12 Ways To Beat Capital Gains Tax In The Age Of Trump Got capital gains? Don’t fret. Under the Trump tax overhaul, effective as of tax year 2018, most of the old tricks to avoid or reduce the capital gains tax bite on sales of appreciated assets still work, albeit with tweaks. “The zero-percent capital gains rate is a terrible thing to waste,” says Timothy Wyman, a certified financial planner in Southfield, Michigan. But what’s really got wealth advisors and their rich clients excited is a powerful new triple-tax-efficient play, investing in low-income neighborhoods designated as opportunity zones. “It’s a big one,” says Jayson Morgan, a tax partner at Marcum in Irvine, California. Here are 12 planning ideas. We’re talking about long-term capital gains, that is net profits on investments held more than a year. Short-term gains are taxed at ordinary income tax rates. If you’ve got gains, you’ll likely want to choose more than one strategy. Opportunity Zones.Investors in “opportunity zones” (via a fund that directs investments in real estate or companies located there) get temporary deferral of accumulated capital gains, up to a 15% basis step-up on capital gains invested, and here’s the kicker—a capital gains bill of zero on new gains for investments held 10 years. The IRS just announced the final round of Opportunity

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

3 TYPES OF COMMERCIAL LEASES

3 Different Types of Commercial Real Estate Leases There are three basic types of commercial real estate leases. These leases are organized around two rent calculation methods: "net" and "gross." The gross lease typically means a tenant pays one lump sum for rent, from which the landlord pays his expenses. The net lease has a smaller base rent, with other expenses paid for by the tenant. The modified gross lease is a happy marriage between the two. While terms vary widely building by building, this basic overview will help businesses shop for the best deal possible. Gross Lease or Full Service Lease In a gross lease, the rent is all-inclusive. The landlord pays all or most expenses associated with the property, including taxes, insurance, and maintenance out of the rents received from tenants. Utilities and janitorial services are included within one easy, tenant-friendly rent payment. When negotiating a gross lease, the tenant should ask which janitorial services are provided, and how often they are offered. Excess utility consumption beyond building standards is sometimes charged back to tenant; so if the tenant is a big consumer of electricity, this point should be clarified in the lease as well. The tenant pays his own property insurance and taxes. A benefit of this type of lease is that it is supremely easy for the tenant, which can forecast expenses without worrying about an unexpected lobby maintenance charge, for example. The landlord assumes all responsibility for the building, while tenants concentrate on growing their businesses. Net Lease In a net lease, the landlord charges a lower base rent for the commercial space, plus some or all of "usual costs," which are expenses associated with operations, maintenance, and use that the landlord pays. These can include real estate taxes; property insurance; and common area maintenance items (CAMS), which include janitorial services, property management fees, sewer, water, trash collection, landscaping, parking lots, fire sprinklers, and any commonly shared area or service. There are several types of net leases: Single Net Lease (N Lease) In this lease, the tenant pays base rent plus a pro-rata share of the building's property tax (meaning a portion of the total bill based on the proportion of total building space leased by the tenant); the landlord covers all other building expenses. The tenant also pays utilities and janitorial services. Double Net Lease (NN Lease) The tenant is responsible for base rent plus a pro-rata share of property taxes and property insurance. The landlord covers expenses for structural repairs and common area maintenance. The tenant once again is responsible for their own janitorial and utility expenses. Triple Net Lease (NNN Lease) This is the most popular type of net lease for commercial freestanding buildings and retail space. It is known as the net net net lease, or NNN lease, where the tenant pays all or part of the three "nets"--property taxes, insurance, and CAMS--on top of a base monthly rent. Common area utilities and operating expenses are usually lumped in as well; for example, the cost for staffing a lobby attendant would be part of the NNN fees. Of course, tenants also pay the costs of their own occupancy, including janitorial services, utilities, and their own insurance and taxes. Landlords typically estimate expenses and charge tenants a portion of these expenses based on their proportionate, or pro-rata share. A tenant who leases 1,000 square feet of a 10,000 square foot building would be expected to pay 10% of the building's taxes, insurance, and CAMS, for example. Triple net leases tend to be more landlord-friendly, and tenants should carefully review NNN fees and negotiate caps on the amounts they can be raised annually. An NNN lease can also fluctuate from month to month and year to year as operating expenses increase or decrease, making the company's expense forecasting tricky and sometimes frustrating. There are tenant benefits in the NNN leases, however. Transparency is an excellent perk, since tenants can see business operating expenses in relation to what they are charged. Cost savings in operating expenses are passed on to the tenant rather to the landlord. In addition, the monthly rent in a NNN lease is potentially lower than in a gross lease, as tenants have a higher level of responsibility for the building. Absolute Triple Net Lease This is a less common option that is more rigid and binding than the NNN lease, where tenants carry every imaginable real estate risk, for example, being responsible for construction expenses to rebuild after a catastrophe, or for continuing to pay rent even after the building has been condemned. Aptly called the "hell-or-high-water lease," tenants have ultimate responsibility for the building no matter what. Modified Gross Lease As the gross lease is more tenant-friendly, and the net lease tends to be more landlord-friendly, there exists a compromise lease for the convenience of both parties. The modified gross lease (sometimes called the modified net lease) is similar to a gross lease in that the rent is requested in one lump sum, which can include any or all of the "nets"--property taxes, insurance, and CAMS. Utilities and janitorial services are typically excluded from the rent, and covered by the tenant. Tenants and landlords negotiate which "nets" are included in the base rental rate. The modified gross lease is more popular with tenants, because its flexibility translates into an easier agreement between tenant and landlord. Unlike the NNN lease, if insurance, taxes or CAM charges increase, the lease rate would not change. Of course, if those expenses decrease, the cost savings is passed on to the landlord. As janitorial service and electricity are not covered, tenants can better control how much they spend compared to a gross lease. Summary of NNN Lease, Modified gross, or Full Service Commercial Leases When evaluating options for office space lease, it is important to compare the different lease options with an eye toward all expenses, and not just the base rental rates. NNN base rental rates tend to be much lower, with additional expenses added for the real monthly rate. Market forces will tend to even out rental rates for comparable properties, regardless of type of lease. Tenants should expect to pay roughly the same amount with an NNN, modified gross, or full service lease for similar quality office spaces in the same area. The most important rule of commercial leases is for tenants to read their leases carefully, and clarify exactly what expenses they have responsibility for. Circumstances under which additional charges will occur should be identified and caps negotiated.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW TO TRANSFER YOUR HOME TO YOUR CHILD TAX FREE

Before the days of income and estate taxes, adult children often just moved into the family home after their parents died. Unfortunately, it’s not that simple anymore. There are several ways to give a home to your child. And a few are tax-free. But to get the best tax results, you’ve got to plan ahead. Here is a rundown of your options. Stay put If you plan to live in your home until you die, and your estate is below the unified federal estate gift and estate tax exemption amount ($5.49 million for 2017 under the current rules), this is your best strategy. When you die, your home’s tax basis will be stepped up to fair market value as of the date of death. So you and your heirs will escape capital gains tax on all the appreciation that occurs up to that date. And, because the value of your estate is below the estate tax exemption, your heirs will owe no federal estate tax. They are free to move into the house, or sell it and keep the cash while owing little or no tax to the Feds (thanks to the basis step-up rule). If they do move into the house, their tax basis for calculating the gain or loss on subsequent sales will be the home’s fair market value at the time of your death. This is a much better strategy than gifting your house to heirs while you continue living there. Why? Even if you pay a market-rate rent to your child, the IRS might argue the home’s full date-of-death value still belongs in your taxable estate. The only sure way around this problem is with a qualified personal residence trust, which is explained later in this story. X See Also How GOP Can Get Tax Overhaul Back on Track Note: One of President Trump’s tax proposals would abolish the federal estate tax. Until that happens, please keep reading. Outright gift If you are moving out of your home, you can give the property to your child today. However, you will probably have to dip into your unified federal gift and estate tax exemption ($5.49 million for 2017 under the current rules). Here’s how it works. First, offset the amount of the gift by using your $14,000 annual gift-tax exclusion. Remember it is $14,000 per donor. So if you and your spouse each make a gift to both your child and his spouse, you can offset $56,000 of the home’s value (4 x $14,000). Then, as long as the net figure is less than $5.49 million, you won’t owe any current gift tax (unless you made very substantial gifts earlier that used up part of your exemption). There are two drawbacks to this strategy. First, your child’s tax basis on the home will be your presumably low cost for the property, which increases the odds he or she will owe capital gains tax on a later sale. Second, you’ve whittled down your unified federal gift and estate tax exemption (the exemption is reduced dollar for dollar by gifts in excess of the $14,000 annual exclusion amount). On the plus side, you at least get any future appreciation in the home’s value out of your taxable estate. Sale for a bargain price If you sell a home to a perfect stranger for less than fair market value (FMV), you’ve simply made a bad deal. The IRS doesn’t care. When you sell to a relative, however, it’s a different story. You will be treated as making a gift equal to the difference between FMV and the sale price. For example, if your house is worth $400,000 and you sell it to your child for $250,000, you just made a gift of $150,000. Of course, you can use your $14,000 annual gift exclusion to whittle this down. The net amount of the gift then goes against your unified federal gift and estate tax exemption ($5.49 million for 2017 under the current rules). However, that’s OK if the property is expected to appreciate, because the sale successfully removes all future appreciation from your taxable estate. For income tax purposes, you subtract your tax basis in the home from the $250,000 sale price to calculate your gain or loss. Any loss is nondeductible. If you have a gain, it’s probably eligible for the $250,000 (for singles) or $500,000 (for married couples) home sale gain exclusion. However, your child’s tax basis in the home will be only $250,000, which increases the likelihood that he will owe capital gains tax on a later sale. Full-price sale with seller financing Instead of making a bargain sale, consider making an installment sale for full market value instead. As you will see, this can still meet your primary objective of transferring the home to your child in a way he or she can afford -- probably with better tax consequences. Here’s the deal. You sell the property to your son or daughter for a relatively small down payment and carry a note for the balance of the purchase price. Let’s again say the house is worth $400,000 and your child can afford to pay $40,000 down. So you take back a note for $360,000. Make sure it’s a written note. Also, it definitely helps your case if the child has the wherewithal to make the monthly payments. Speaking of payments. You should charge at least the applicable federal rate (or AFR) on the loan. That rate, which changes monthly and is almost always well below the average commercial mortgage rate, is available in monthly Internal Revenue Bulletins. You can find them on the website at www.irs.gov. Make sure to go through the legal process of securing the note with the house. That way, your child can deduct the interest payments make to you as qualified mortgage interest. If you fail to take this step, your child won’t be able to deduct the interest payments. If you wish, you can then ease your child’s financial burden by making gifts under the annual $14,000 gift-tax exclusion rule. Just make sure your child actually makes all the payments on the note. Then write checks for any gifts you decide to make. That keeps the sale, the note and the gifts separate. If you simply forgive some of the payments, the IRS may recast the entire arrangement as a bargain sale (with the less-desirable tax consequences explained earlier). Income-tax-wise, you are treated as making a sale for $400,000. Assuming you qualify for the $250,000/$500,000 exclusion, you will hopefully be able to dodge any federal capital gains tax. You will however owe income tax on your interest income from the note. But remember, your child will get an equal mortgage interest deduction, and the whole idea was to help the kid out. Your child’s tax basis on the property is now the full $400,000 purchase price, which reduces the chance he or she will owe any capital gains tax when the home is eventually sold again. As far as the gift tax is concerned, you are in the clear. Estate-tax-wise, the sale removes from your taxable estate any future appreciation in the value of the home. A few years after the sale, your child may be able to refinance and pay off the note. If so, your generosity comes to an end with no further tax implications. However, if there’s still a balance due when you die, your child will be treated as receiving a bequest if the note is forgiven at that point. Of course, this uses up part of your estate-tax exemption, but that’s OK because of the other tax benefits. What if you want to live in your home? Unfortunately, the IRS gets cranky when you transfer your home to a relative and then continue to live there. So tread carefully if this is your intention. One strategy is to make a seller-financed full market value sale to your child, as explained above, and then rent the property back at the market rate. In a perfect world, this would remove the home’s future appreciation from your taxable estate and you could shelter all or part of your gain with the $250,000 (for singles) or $500,000 (for married couples) home sale exclusion. The rental payments to your child could, in effect, finance at least part of the cost of buying the home. The payments would be nondeductible to you and taxable income to your child. But he or she could claim rental property depreciation write-offs, opening up the possibility of noncash deductible losses each year. In fact, all these nice tax outcomes should be possible — if you sell the home for FMV and pay market-level rent afterwards. If you sell for less or pay below-market rent, an obscure tax code provision could include the full date-of-death value of the home in your taxable estate. Why? Because you are considered to still own the home since you never completely gave up “possession and enjoyment” of the property. Also, paying below-market rent will preclude any deductible rental losses for your child. The bottom line: If you want to transfer ownership to your child but stay put, make sure you make a FMV sale (as opposed to any gift or bargain sale arrangement). Then be sure to pay market-level rent to your child. You can still make $14,000 annual tax-free gifts to help your child out. However, keep these acts of generosity separate from your dealings regarding the sale or rental of the house. In other words, don’t forgive payments on your seller-financed note and don’t include gifts in your rent checks. Qualified personal residence trusts There is one way you can make an IRS-approved gift of your home while still living there. That is with a qualified personal residence trust (or QPRT). Using a QPRT potentially allows you to get the residence out of your taxable estate without moving out — even though you have not made a full FMV sale to your child. But there are heavy risks involved. Here’s how a QPRT works. Say a retired doctor in Florida wants to give his $1 million beachfront home to his two daughters. This strategy would require the doctor to put his home into an irrevocable trust for several years, while he continues to live in it. Through a complex IRS calculation based on interest rates, the length of the trust and his age, the IRS values his right to live in the house at, say, $600,000. For the purposes of his taxable estate, that knocks the value of his house down to just $400,000 — regardless of how much the house appreciates in the meantime. (That $400,000, though, comes out of the doctor’s unified federal gift and estate tax exemption.) When the trust is up after the stipulated number of years, if he chooses to continue living there, he can pay his daughters rent, further reducing the size of his taxable estate. Of course, if you have a poor relationship with your kids, you might find yourself out on the street. And there is a tax catch to this kind of trust: You have to outlive it. If you die before the term of the trust expires, the full date-of-death value of the house is included in your taxable estate and your heirs receive no estate tax

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

IS LOCATION REALLY EVERYTHING?

Ask just about any real estate agent to list the three most important things a property should have, and you’ll likely hear: “location, location, location.” That phrase has been in use at least since 1926, according to The New York Times Opens a New Window. , and is just as relevant now as it was then. But why does location matter so much? For starters, you can’t move a home — at least not easily or inexpensively. When you buy a home in a good location, it’s usually a solid long-term investment. Real estate agents often advise their clients to buy the worst house — a property that could use some TLC — on the best block. Why? Because fixing up a home in a great neighborhood will give you the best return on your investment. Quite simply, it will be easier to sell later on. Conversely, you can buy a beautiful home that doesn’t need any work. But if the block is sketchy or just plain bad, you could have a hard time selling the property at a decent price. So if “location, location, location” is so important, what makes a location good? Here are five characteristics to look for when buying a home. If you can get all five, chances are the home’s a great investment. 1. A safe neighborhood People want to live where there’s little or no crime. Naturally, they want to feel safe in their homes and will pay extra for it. A safe neighborhood means people will feel free to walk around, be outdoors and interact with their neighbors. Communities still exist today where people don’t lock their doors, and they know their neighbors are there for them in a pinch. 2. Good schools Being in a good school district Opens a New Window. is important, even if you don’t have school-age kids and never plan to have any. Fact is, young families always will be buying their first or second homes. They will do their home search based on location in general and good school districts in particular. The better the school district, the higher the values of the surrounding homes can be. Found a home you love but the school district is subpar? Be aware of that issue for resale down the road. Bottom line: When you buy a home, you should always think like a future seller. 3. Convenient access to popular places, shops and restaurants Everyone wants to be near the best commercial districts. The closer to the hubbub of a particular town or the best parts of a city, the better the location — and the more someone is willing to pay for a home. In beach communities, the closer to the beach, the more valuable the property. 4. Water access and views No matter which town or city, someone will always pay for a great view or to be on or near the water. Put a home right on a waterway or on a hill with panoramic views and you’ve got a great location. 5. Access to public transit and/or freeways In major cities, the farther you live from the bus, subway or other types of mass transit, the less valuable the home. A good location means being very close, and having easy access, to public transportation. Being near a train or bus can get you anywhere in a short amount of time. In some towns, where a commute by car is inevitable, easy access to the freeway makes for a good location. Adding 20 minutes to a commute just to get to the freeway never helps a location. What makes a bad location? There are some common characteristics that make a location “bad,” no matter where you are. Ever see a home with a backyard that faces the freeway? Whether the home is in Denver, Dallas or Dubuque, such a location is likely always going to be considered undesirable. Is the home on a busy intersection or a four-lane road? Again, it’s probably considered a bad location, no matter which town it’s in or what the nearby neighborhood is like. Other factors that can make for a “bad” location: very close proximity to a fire station (good if your house is on fire, not so good if you’re trying to sleep); a hospital (frequent ambulance sirens); an airport (sounds of jet engines 18 hours per day) or a school (traffic from buses or parents dropping off children or kids yelling and playing). Some “good” and “bad” qualities simply vary by community. If you know your local community, you know which parts of town are less or more desirable. It’s always smart to rent in a new community before committing to a home purchase. Renting allows you time to become familiar with the location. All these things matter when you’re considering the location of a home for sale. But never lose sight of what matters most to you about the location. If you’re crazy about baseball, for instance, you might love owning a condo near your city’s professional baseball team ballpark. Someone who doesn’t like baseball, on the other hand, would probably not want to live near all the commotion. Location, location, location really does matter — a lot. But as always, the most important thing is to buy the right home for you, at the right

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

6 THINGS HOME SLLERS ARE LEGALLY REQUIRED TO DISCLOSE

Denise Supplee and her husband, Jerry, had been in their new home in Horsham, PA, for just three months when they started to notice something strange in their bathroom. “You could see mold starting to seep through the paint,” says Denise, a co-founder and director of operations of SparkRental.com. “We had a contractor come in and he told us we were lucky,” she says. “It seemed to be an issue kept to the bathroom and occurred most likely because there was no exhaust fan.” The problem: The seller had blatantly painted over existing mold without ever disclosing it to the Supplees. Although the seller made good and paid for the mold removal — a $1,500 cost — the Supplees could have taken them to court for not disclosing the problem before the sale. 6-things-home-sellers-are-legally-required-to-disclose-hero It’s a question that plagues many residential sales: As a seller, what do you — and don’t you — need to tell the buyer about your home? “My rule of thumb is this: If you’re not sure if you should disclose something, you probably should,” says Sam Pawlitzki, a real estate agent with Beach Cities Real Estate in Los Angeles, CA. “Think of seller disclosures like a Carfax report.” Plus, the harm in not disclosing something can result in some serious legal and financial woes. Here’s a list of what you legally need to include in your sellers’ disclosure to keep yourself out of hot water. 1. Lead paint One item is a must when it comes to being upfront with potential buyers: the use of lead-based paint in your home. “If the home was built before 1978, each party in a transaction needs to sign a lead paint disclosure,” says Pawlitzki. “This is a federal law and applies to every state. No matter if you think the lead paint has been removed or not, it still needs to be disclosed.” However, David Reiss, a professor at Brooklyn Law School in Brooklyn, NY, explains, “If you are not aware of a lead-based paint issue in the house, you are not required by the act to investigate whether there is any.” 2. Paranormal activity Ghosts haunting your house? Fess up to the potential buyer ASAP. “When you think of paranormal activity, you don’t think of home disclosures, but you should,” warns Pawlitzki. “If you think your house is haunted, or if you’ve had an exorcism done, you should disclose the info to the buyer side.” Although rules vary from state to state on this topic, in some states, like Arizona, sellers are obligated to disclose “all known material facts” about a home, which could potentially include hauntings and paranormal activity. “There truly is no disclosure too big or too small or too silly,” says Pawlitzki. YOU MAY ALSO LIKE 3. Emotional defects Depending on your location, you may be required to disclose what some call “emotional defects” about a home — specifically, if a murder, suicide, or violent crime occurred there. In California, for example, Civil Code 1710.2 details that any death on a property does not need to be disclosed if it occurred more than three years prior to the sale of the home. But read the fine print: If a buyer asks, this same statute requires the seller to disclose any death on the property more than 3 years old. 4. Pests Whether it’s snakes, mice, or bats, in most states, sellers are required by law to disclose any sort of pest infestation or issue. “My team recently sold an apartment where the actual apartment was fine, but the residences directly above and below had small bedbug infestations,” says Tracie Hamersley, a broker with Douglas Elliman in New York, NY. “While not legally required to disclose this fact, as the place for sale did not actually have any bedbugs, we thought it a smart move to tell any serious would-be buyers, as it was better they hear it from us, the seller, rather than their attorney finding it out and it looking like we had tried to be sneaky or hide this material information.” 5. Property drainage issues So the basement floods, huh? Gotta disclose it. “I had a client who had changed listing agents but finally got her home sold with another real estate agent,” explains Frances Dawson, an agent with RE/MAX Executive at The Lake in Cornelius, NC. “After a bit of time, the new owner started to have drainage issues and standing water in the backyard. Through legal depositions, the seller disclosed that when construction on a new development had commenced behind the home, she began to have drainage issues. The developer changed some of his grading and added drain systems to her yard, and she thought the issue was resolved. But because she never disclosed this prior issue, the new owner prevailed in his lawsuit against both the seller and her listing agent. I use this example as a warning to my listing clients: It is always best to disclose major or unusual issues even if you believe the issue has been resolved!” 6. Neighbor disputes or boundary issues It might not seem like a big deal that your fence is 1 foot inside your neighbor’s property line, but it can affect a new owner down the road. What may seem like a small neighborly dispute could actually become a major one when homes change hands, so it’s wise to disclose it

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

KANSAS CITY REAL ESTATE MARKET TREND AND FORECAST 2018

Kansas City Real Estate – Market Trend & Forecast 2018 According to Zillow.com, the median home value in Kansas City is $136,200. Kansas City home values have gone up 10.5% over the past year and Zillow predicts they will rise 3.4% within the next year. The median list price per square foot in Kansas City is $127, which is lower than the Kansas City Metro average of $136. The median price of homes currently listed in Kansas City is $195,000. The median rent price in Kansas City is $995, which is lower than the Kansas City Metro median of $1,150. The percent of delinquent mortgages in Kansas City is 1.4%, which is lower than the national value of 1.6%. Currently, Zillow has 3135 homes for sale and 2690 homes for rent in Kansas City Real Estate Market. The Zillow Home Value Index for April, 2018 was $136,200. Zillow’s prediction of the Zillow Home Value Index for April, 2019 is $140,000, which means a growth rate of 3.4% in 1 year. As per Zillow, the homes in Kansas City metro gained $10.2B in value in 2017. In 2017, more than 1,000 homes have sold in the 66062 ZIP code, making it one of the Kansas City area’s top selling ZIP codes. As per Trulia.com, the Trends in Kansas City Real Estate Market show a -3% week-over-week drop in average listing price and a 3% rise in median rent per month. Currently the median rent per month is $1000 and the average listing price is $129,101. Top 10 Reasons To Invest In Kansas City Real Estate Market In 2018 The following are the top 10 reasons to invest in Kansas City Real Estate Market in 2018. Real Estate Market Overview of Kansas City In the metropolitan area, the population is estimated at 2.1 million with the median household income of $57,000. The unemployment rate is 4.4%, while the average home price is $86,000. Median rent is $993, with an estimated $667 monthly cash flow. It’s no wonder that the Kansas City real estate market is a great place to invest. Kansas City is the largest city in Missouri and is the sixth largest in the Midwest. It hosts the Kansas City Chiefs as well as the Kansas City Royals. It’s home to some of the Best Ribs in America. The city has over 200 water fountains, making it only second to Rome, Italy, hence the nickname “City of Fountains.” It is also important to remember that only Paris, France has more Boulevards. Employment Kansas City has seen a continuous rise in employment prospects over the last 2 years, a trend that directly impacts the Kansas City real estate market. From 2017 to 2018, the city registered a remarkable 1.9% in terms of overall employment. This could b further broken down to 3.8% in professional and business services, 3% in terms of government-sponsored employment opportunities and 1.9% in the trading, transport and utilities sectors. Constant Real Estate Friendly Renovation Projects Kansas City has started to do some major revitalization downtown. More than $6 million has been spent giving the downtown area a facelift and new makeover, including, apartments, offices, condominiums. These facelifts have also been done both indoor and outdoor malls, restaurants and places for concerts, plays and other forms of entertainment. Kansas City Real Estate – Trends and Statistics in 2018 Three bedroom homes were listed around $141,000 in January 2017, making it lower than the national average by 25%. RWN Development-Group, LLC members’ neighborhoods were less than $86,000 median price in January 2017. All these serve towards making Kansas City properties attractively affordable and appealing to investors who are looking for gains in cash flow. In the same month, the rent on a three bedroom was $1,224, making it 0.87% of the cost of buying a house listed at $141,000. Tourists & Art Destination Kansas City is a great attraction for tourists, especially art-lovers. Housed by several museums and art destinations, the city is famous for its Jazz Museum as well as the Nelson-Atkins Museum of Art that boast over 40,000 works of art, vintage antiques and contemporary works. The influx of tourists into the city has a direct relationship with the growth of the city’s real estate market. The Growth in Kansas City The national average of growth in cities is 4.45%. In Kansas City, in 2010, it was higher than 4.5%. It’s growing with the national rate and is expected to grow even faster in the next few years. Between the years 2013-2015 the annual growth was 15,000 then raised to 20,000 between 2015-2016. Kansas City is home to some of the biggest companies, such as H&R Block, Sprint, Hallmark and BNSF, to help to fuel the attraction of the Kansas City real estate market. Rich and Stable Neighborhoods The city is surrounded by neighborhoods like River Market District as well as the 18th & Vine District and the Country Club Plaza on its north, east & south sides respectively. These vicinities, in combination with the city’s vibrant real estate market, comprise of all amenities residents and non-residents alike can take advantage of and put their investments in. Some of the best neighborhoods of Kansas City are as follows: The Johnson County of Kansas City: It is high on the list of home buyers as an ideal place to raise a family. It has highly accredited school districts within the county, which include Shawnee Mission, Gardner Edgerton, Spring Hill, Blue Valley, Olathe and De Soto. Most subdivisions see steady property valuation increases year after year. The Prairie Village, Kansas City: It is another good neighborhood with low crime rates, mature trees, plenty of quiet neighborhood parks and accessible community pools. Leawood, Kansas City: It is a low crime rate area and it’s safer than 79 percent of U.S. cities. The residents have a median household income of $133,702, so they are quite well off. The region is home to the biggest Methodist church in the nation – United Methodist Church of the Resurrection. Lenexa, Kansas City: This neighborhood has the median listing price of $394,000. Fifty-four percent report some school education, contrasted with the national average of 22 percent for all cities and towns. Favorable Weather The weather in Kansas City is beautiful, and usually clear and sunny. You can almost always count on the 4th of July to be a great day to BBQ and shoot off fireworks and watch your neighbors shoot theirs, creating a competition. We’ve witnessed the fireworks while being laid over in nearby Independence, Mo. The neighborhood fireworks shows have always been as big as the city’s, only they last half the night. During the shows, everyone in the neighborhood waters the top of their houses for a week straight to avoid catching fire. Where else in America can you find that? Even better, the people are friendly and the weather is inviting. There are nearby lakes for boating, fishing, swimming, and camping. The weather is almost always enjoyable. They get most of their rain in the spring of April and summer month of June. City’s Rich Culture The city is known for its distinct barbeque cuisine and uniquely crafted breweries, which makes it a preferred destination for foodies. The ancient heritage of Jazz music makes it suitable for immigrants who are passionate about music. The city lies on the shores of Missouri & Kansas River with a landscape full of fountains. The overall ambience and accommodating culture is sure to attract more and more residents into the city, which will prove to be a boon for investments in Kansas City Real Estate Market. Cost of Living Another great factor that is seen as a boon to the Kansas City real estate market is the cost of living. The cost of living in Kansas City is reasonable and affordable. With the cost of rent and the price you might pay for a house already discussed, there’s the cost of day to day expenses to consider. A basic lunch around the business district is around $12, unless you go to a fast food restaurant and order a combo meal, then you’re looking at $7. Milk is around $3.50 a gallon, a 2 lt. A bottle of Coca- Cola is $1.82. These prices are about the same as the national average at –1%. Housing is at 8% below. Kansas City is 15% below Oklahoma and 8% below Indiana. In fact, New York City is 129% above compared to Kansas City, while 14% below Miami, Fl and 23% below Chicago. Should You Invest In Kansas City Real Estate: The Verdict In closing, the Kansas City real estate market is expected to see an incredible amount of growth in 2018 with a year over year growth of 6.16% in the median household income. Low median sales prices, which in return, drives a solid rent is another reason to look into the Kansas City housing market. Add to that the weather, the many activities at your disposal and the famous “Kansas City BBQ.” There isn’t much left to desire when making an investment in the real estate market. Take a look around, make some calls and talk to some of the people around Kansas City before you decide. We recommend 8 other hottest US real estate markets for investors looking to build their portfolio of single family rental homes. Following the housing market decline in 2007, single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TAX CHANGES FOR SELF EMPLOYED REAL ESTATE AGENTS

The Tax Cuts and Jobs Act (TCJA) has created a lot of uncertainty as well as a lot of opportunity in the tax world. This is especially true in the real estate industry. Let’s take a look at the major provisions that will affect tax liabilities for real estate agents, property managers and real estate investors. Real Estate Agents And The Qualified Business Income Deduction (QBID) Section 199A coined the term "Specified Service Trade or Business" (SSTB) and provides that individuals, estates and trusts that have income derived from an SSTB will not qualify for the deduction if the individual, estate or trust has taxable income exceeding $207,500 (or $415,000 with respect to a married couple filing jointly), and there is a ratable phase-out of the deduction where the income is from an SSTB and the taxpayer has income between $157,500 and $207,500 if filing single, or $315,000 and $415,000 if married filing jointly. Fortunately for real estate professionals such as brokers, agents, developers and property managers, they are not included in the SSTB definition. However, there are still some pitfalls that could reduce the deduction. For one, if property is leased by an SSTB and is 50% or more owned by the same SSTB owners and the landlord, then the rental activity and the SSTB are aggregated and both are ineligible for the deduction subject to the limitation. This eliminates the opportunity to increase the QBID for SSTBs by shifting income to a related party not subject to the limitation. On the other hand, if a real estate professional has significant consulting or financial income subject to the SSTB limits, shifting those SSTB operations to a separate entity could potentially reduce their overall tax liability by reducing income subject to the QBID limitations. QBID Property Factor For those taxpayers subject to the QBID limitation, there is a key provision that helps real estate investors keep more of their deduction. When subject to the limitation, the QBID is the larger of 50% of the W-2 wages paid by the business or 25% of W-2 wages plus 2.5% of the qualified business property. Section 199A references section 167 for the definition of qualified business property, which saves compliance time with any special calculations. Accelerated Depreciation And Class Changes Businesses may take 100% bonus depreciation on qualified property both acquired and placed in service after Sept. 27, 2017, and before Jan. 1, 2023. Under the new law, qualified property is defined as tangible personal property with a recovery period of 20 years or less. The new law eliminates the requirement that the original use of the qualified property begin with the taxpayer, as long as the taxpayer had not previously used the acquired property and the property was not acquired from a related party. The inclusion of used property is a significant and favorable change from previous bonus depreciation rules. Keeping with the bonus depreciation theme, TCJA increases the maximum amount a taxpayer can expense under section 179 to $1 million and increases the investment limit, or phase-out threshold amount, to $2.5 million. The $1 million limitation is reduced by the cost of qualifying property placed in service during the taxable year that exceeds $2.5 million. TCJA also expands the definition of section 179 property to include certain depreciable tangible personal property used predominantly to furnish lodging or in connection with furnishing lodging. The definition of qualified real property for section 179 purposes was also expanded to include any of the following improvements made to nonresidential real property: roofs; heating, ventilation and air-conditioning property; fire protection and alarm systems and security systems as long as the improvements are placed in service after the date the building was first placed in service. Qualified Improvement Property (QIP) Another major change to depreciation for the real estate industry involves Qualified Improvement Property (QIP). QIP is now defined as any improvement to an interior portion of a building that is nonresidential real property if such improvement is placed in service after the date such building was first placed in service. QIP does not include any improvement for which the expenditure is attributable to the enlargement of the building, any elevator or escalator, or the internal structural framework of the building. Additionally, the separate definitions of qualified leasehold improvement, qualified restaurant and qualified retail improvement property were consolidated into QIP with supposedly a 15-year recovery period. Unfortunately, QIP was not included in the list of 15-year depreciation period property and is not currently eligible for bonus depreciation. The government released proposed bonus depreciation in August and QIP still only qualifies for bonus depreciation if acquired and placed in service between September 27, 2017 and December 31, 2017. This first set of proposed regs leaves 2018 forward QIP ineligible for bonus depreciation — a significant issue for companies with real estate holdings since nonresidential interior renovations generally qualify as QIP. In the meantime, the industry is hopeful for a technical correction to relieve this error. Like-Kind Exchanges Like-kind exchanges, which allow taxpayers to swap an asset for a similar one without triggering a tax obligation, have existed in the tax code for many years. Most commonly used on assets such as real estate, machinery and equipment, like-kind exchanges allow taxpayers to continue to reinvest in similar types of property and not have to pay taxes until cashing in on the property. Under the old law, no gain or loss is recognized to the extent the property held for the productive use in a taxpayer’s trade or business (or held for investment purposes) is exchanged for property of a like kind that is also held for productive use in a trade or business (or for investment). The new law, effective for exchanges completed after Dec.31, 2017, limits like-kind exchanges to only real property held for the productive use in a trade or business (or for investment). Where Do We Go From Here? While tax reform has created many advantages for the real estate industry, the haste in passing such broad legislation has brought about just as much confusion. QBID offers great incentives to small rental operations and service providers, and the changes to bonus depreciation and class life will ultimately provide more avenues to accelerate expenses once further clarifications are

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MARRIAGE AND REAL ESTATE

Family law issue Married couples usually own most, if not all, of their valuable property together. If you want to leave everything to your spouse, as many people do, you don't need to worry about what belongs to you and what belongs to your spouse. If you'd rather divide your property among several beneficiaries, you'll need to know just what's yours to leave. Common Law States Most states, except those listed as community property states, below, use the "common law" system of property ownership. In these states, it's usually easy to tell which spouse owns what. If only your name is on the deed, registration document, or other title paper, it's yours. You are free to leave your property to whomever you choose, subject to your spouse's right to claim a certain share after your death. (For more information, see Inheritance Rights.) If you and your spouse both have your name on the title, you each own a half-interest in the property. Your freedom to give away or leave that half-interest depends on how you and your spouse share ownership. If you own the property in "joint tenancy with right of survivorship" or "tenancy by the entirety," the property automatically belongs to the surviving spouse when one spouse dies -- no matter what the deceased spouse's will says. But if you instead own the property in "tenancy in common" (less likely), then you can leave your half-interest to someone other than your spouse if you wish. If an item doesn't have a title document, generally you own it if you paid for it or received it as a gift. Community Property States If you live in a community property state, the rules are more complicated. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. States Where You Can Opt In In Alaska, South Dakota, and Tennessee, spouses can opt in to the community property system and/or designate specific assets as community property. In Alaska, spouses can opt in by creating a community property agreement that states all (or some) property and/or income acquired by the spouses during the marriage is considered community property. Spouses can also establish a community property trust which covers specific assets—all property transferred to that trust will be treated as community property. In South Dakota, spouses may create a "South Dakota special spousal trust," which must include a written declaration that the property is "community property." Any property the spouses transfer to this trust will be treated as community property. In Tennessee, spouses can create community property rights to property or assets that they transfer to a valid community property trust, but the requirements are more specific. The trust must: include a written statement that the trust is a "Tennessee community property trust" have at least one qualified trustee, whose powers include maintaining records for the trust and preparing or arranging for the preparation of any income tax returns that must be filed by the trust—both or either spouse may be a trustee be signed by both spouses, and contain the following language in capital letters: THE CONSEQUENCES OF THIS TRUST MAY BE VERY EXTENSIVE, INCLUDING, BUT NOT LIMITED TO, YOUR RIGHTS WITH YOUR SPOUSE BOTH DURING THE COURSE OF YOUR MARRIAGE AND AT THE TIME OF A DIVORCE. ACCORDINGLY, THIS AGREEMENT SHOULD ONLY BE SIGNED AFTER CAREFUL CONSIDERATION. IF YOU HAVE ANY QUESTIONS ABOUT THIS AGREEMENT, YOU SHOULD SEEK COMPETENT ADVICE. Community Property Laws Generally, in community property states, money earned by either spouse during marriage and all property bought with those earnings are considered community property that is owned equally by husband and wife. Likewise, debts incurred during marriage are generally debts of the couple. At the death of one spouse, his or her half of the community property goes to the surviving spouse unless there is a valid will that directs otherwise. Married people can still own separate property. For example, property inherited by just one spouse belongs to that spouse alone. A spouse can leave separate property to anyone—it doesn't have to go to the surviving spouse. Community Property Separate Property Money either spouse earns during marriage Property owned by one spouse before marriage Things bought with money either spouse earns during marriage Property given as a gift to just one spouse Separate property that has become so mixed with community property that it can't be identified and separate property that has been transmuted or transferred to the community Property inherited by just one spouse Generally, these rules apply no matter whose name is on the title document to a particular piece of property. For example, a married woman in a community property state may own a car in only her name—but legally, her husband may own a half-interest. Here are some other examples: Property Classification Why A computer your spouse inherited during marriage Your spouse's separate property Property inherited by one spouse alone is separate property A car you owned before marriage Your separate property Property owned by one spouse before marriage is separate property A boat, owned and registered in your name, which you bought during your marriage with your income Community property It was bought with community property income (income earned during the marriage) A family home, which the deed states that you and your wife own as "husband and wife" and which was bought with your marital earnings Community property It was bought with community property income (income earned during the marriage) and is owned as "husband and wife" A camera you received as a gift Your separate property Gifts made to one spouse are that spouse's separate property A checking account owned by you and your spouse, into which you put a $5,000 inheritance 20 years ago Community property (probably) The $5,000 (which was your separate property) has become so mixed with community property funds that it has become community property (but you may be able to prove the $5000 is your separate property with property documentation and evidence) Changing the rules with a written agreement. Married couples don't have to accept the rules about what is community property and what isn't. They can sign a prenup, postnup, or other written agreement that makes some or all community property the separate property of one spouse, or vice

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE SYNDICATION

Real Estate Syndication Real estate syndication is “crowdfunding for real estate” before crowdfunding for real estate ever existed. In its most simple form, both syndication and crowdfunding involve pooling capital with other individuals for a common purpose or a common goal. In real estate, that common purpose is the purchase of a real property, a physical building you can see and touch. WHY DO PEOPLE ENGAGE IN REAL ESTATE SYNDICATION? The biggest reason investors participate in real estate syndication or crowdfunding for real estate is access to deal flow. Not every investor has the time to search and underwrite hundreds of properties to find a gem to acquire. But there are thousands of real estate companies all over the United States who do this for a living. By getting involved through real estate syndication, investors have access to this deal flow and the ability to invest in real estate without the hassles of property management. WHO IS INVOLVED WITH A REAL ESTATE SYNDICATION? The first ingredient for a real estate syndication is a“syndicator” or “sponsor”. This individual or company is in charge of finding, acquiring and managing the real estate. They have a history of real estate experience and the ability to underwrite and do due diligence on the real estate. The other party is the investors. These are the individuals who invest with the syndicator and own a percentage of the real estate as a result. They get all the benefits of property ownership, but they are not involved with acquiring the property, arranging financing (if there is a loan on the property) and doing day-to-day management. In many transactions, there is a third party, the Joint Venture (“JV”)/Equity partner. This JV partner typically has access to a large number of investors and serves as a conduit between the syndicator and the investors. In addition to help with financing, they may help the syndicator with reporting, communications and even tax

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

COST OF BUILDING A HOUSE

Cost of Building a House Many things, including building materials, could affect the price of your new home. Two of the more prominent factors are regulatory costs and level of amenities. Regulatory Costs The issue of regulatory fees, environmental or otherwise, has been a heated topic of debate for all involved in the home building industry for some time. The reason is that environmental and/or state and local regulations in some cases significantly impact the cost of new construction in certain areas of the country. In the Builders Survey of Construction Costs used in the evaluation at lower right, Wetland Preservation and Impact Fees were included in the cost of the Finished Lot. The Builders Survey concluded that 6.5% of the total cost of the lot, or roughly 1.8% of the total cost of the home, could be attributed to the price of these fees. However, in certain areas of the country, builders have claimed to attribute anywhere from 8-16% of the total cost of a home to regulatory costs. That means that for a $120,000 home, as much as $19,200 could be attributed to regulatory costs! Regulations vary on the state and local levels, but federal regulations affect everyone. Some of the most common federal regulations that impact new construction include: the Clean Water Act, the Endangered Species Act and Occupational Safety and Health Administration regulations. Many local and state regulations also impact the construction of new homes, such as growth controls, restrictive zoning and impact fees. Depending on where you live, regulations may have a very significant or insignificant effect on the price of your home. If you are interested in knowing the effect of regulatory fees in your area, contact your local builder or local municipal offices for more information. Amenities The building materials that go into the price of a new home comprise a large percentage of its cost. Since both builders and buyers affect the kind of building materials that go into a home (lumber, floor coverings, paint, etc.), it is important to be especially aware of how building materials elements can affect its price. When figuring out how much a new home will cost, the common practice has been to price the home out on a cost per square foot basis. As a result, buyers often take a home plan, either one from a plan book or one they’d already purchased, to various builders for bids. In recent years, with the variety, type and quality of amenities rapidly increasing, many builders have found the cost per square foot analysis to be inadequate in successfully giving buyers what they are really looking for. The problem with pricing a home on such a basis is that the different bids given by builders may not be apples to apples comparisons. For example, one builder may offer better quality or higher allowances for appliances, lighting fixtures, etc. in their bid than another. Also, many features that builders consider their standard amenities often vary greatly. One builder may make it his practice to provide energy-efficient heating and cooling systems in all of his homes, which will cost more money. Another builder may make it his practice to exceed local code requirements in all areas of the home. Similarly, the specific brand and quality of features and building materials you choose to put in your home will also dramatically affect the price. It is estimated that lighting fixtures will cost the average home buyer around three percent of the total cost of their home. But if a buyer decides that he or she must have a $5,000 chandelier in their entryway, the cost of their lighting fixtures and the total cost of their home will be significantly impacted. The same goes for any appliance, doors, cabinetry, flooring materials, and other building materials, etc. that are chosen for a home. That’s why two homes with the same square footage can have such dramatic cost differences. So what’s the best thing to do as a home buyer to ensure a fair price on a new home? Make sure the bids you receive are apples to apples comparisons. Find out as much as you can about each builder’s product. Tour other homes they’ve built. Find out as much specific information as you can about standard allowances, finishes, grades of carpet and lighting fixtures, paint, brick, plumbing and heating systems, and other building materials. Consider how long a builder has been in business and the quality of the building materials used in his homes. Compare one builder’s standard building materials to another’s. Being aware of where your money is going can be a comforting factor as a new home buyer. Taking into consideration building materials along with the level of amenities and regulations that might affect its price will help you prepare for a successful building process. Can I Afford It? For many of us as home buyers, the price of building a new home enters our minds in two contexts: Can I afford to buy it? Do I want to pay that price for this house? Unless we are licensed appraisers, most of us rarely think about what makes up the cost of the new home. And if we really knew, we might be surprised to find out where the money we are spending is actually going. The information below breaks down the cost of a detached, single-family home based on national averages from a recent Builders Survey of Construction Costs a survey of 50 nationwide builders in 37 metro areas, conducted by the National Association of Home Builders, and averages from the Marshall Valuation Service – a manual used by licensed appraisers. Construction Costs (Materials & Labor) 55-60% Finished Lost Costs 25-30% Financing Costs 2-5% Overhead & General Expenses 5-7% Marketing Costs 2-5% Sales Commission 3-6% Profit

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOUSING MARKET COOL DOWN?

They were fed up with Seattle’s home bidding wars. They were only in their late 20s but had already lost two battles and were ready to renew with their landlord. Then, in May, their agent called. Suddenly, Redfin’s Shoshana Godwin told the couple, sellers were getting jumpy, even here in the hottest of markets. Homes that should have vanished in days were sitting on the market for weeks. There was a three-bedroom fixer-upper just north of the city going for $550,000, down from more than $600,000. They made the leap in early June and had closed by the end of the month, for list price. The U.S. housing market -- particularly in cutthroat areas like Seattle, Silicon Valley and Austin, Texas -- appears to be headed for the broadest slowdown in years. Buyers are getting squeezed by rising mortgage rates and by prices climbing about twice as fast as incomes, and there’s only so far they can stretch. “This could be the very beginning of a turning point,” said Robert Shiller, a Nobel Prize-winning economist who is famed for warning of the dot-com and housing bubbles, in an interview. He stressed that he isn’t ready to make that call yet. The Data A slew of figures released this week gives ample evidence of at least a cooling. Existing-home sales dropped in June for a third straight month. Purchases of new homes are at their slowest pace in eight months. Inventory, which plunged for years, has begun to grow again as buyers move to the sidelines, sapping the fuel for surging home values. Prices for existing homes climbed 6.4 percent in May, the smallest year-over-year gain since early 2017, and have gained the least over three months since 2012, according to the Federal Housing Finance Agency. Shares of PulteGroup Inc. fell as much as 4.9 percent Thursday morning after the national homebuilder reported that orders had declined 1 percent from a year earlier, blaming rising mortgage rates. “Home prices are plateauing,” said Ed Stansfield, chief property economist at Capital Economics Ltd. in London. “People are saying: Let’s just bide our time, there’s no great rush. If we wait six or nine months we’re not going to lose out on getting a foot on the ladder.” That means “we’re now looking at a period in which prices move more or less sideways, or increase no more quickly than growth in incomes, over the next few years.” Stansfield projects a 5 percent gain this year and a 3 percent increase in 2019. That compares with 10.7 percent in 2005, shortly before the crash. Supply Lines Some of the most expensive markets, where sales are falling under the weight of prices, are now seeing substantial increases in supply, according to Redfin Corp. In San Jose, California, inventory was up 12 percent in June from a year earlier. It rose 24 percent in Seattle and 32 percent in Portland, Oregon. Those big jumps are from low numbers, so the housing crunch is still a serious problem. “Inventory has increased quite a bit,” Godwin, the Seattle agent, said. “We’re seeing less competition.” Dustin Miller, an agent with Windermere Realty Trust in Portland, said he’s trying to manage sellers’ expectations, something he hasn’t had to do since the end of the last housing boom. One customer, a baby boomer moving to a new home across the state, expected to have buyers fighting over her house. She got one bid, below her asking price. “Buyers want to shop and take some time, as opposed to having to rush and throw offers in,” Miller said. “It’s the market correcting itself. At some point, you hit a peak of momentum, and then things level off.” This new wariness was noticeable in the latest consumer-sentiment data from the University of Michigan. In its preliminary July survey, 65 percent of Americans said it’s a good time to buy a home, the lowest since 2008, when the economy was still in recession. Still, market watchers note that the housing sector has strong support from a healthy labor market and steady economic growth, which indicates a stabilizing trend for home prices rather than anything close to the experience of the crisis, when property values plunged. And shares of D.R. Horton Inc., which builds a lot of starter homes, rose as high as 8.7 percent Thursday morning after the company reported a 12 percent jump in orders. “The rate of home sales, new and existing, has probably peaked,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics. “But it’s not going to roll over. It will gently decline.” The homeownership rate in the second quarter was 64.3 percent, up from 63.7 percent a year earlier, according to U.S. Census Bureau data released Thursday. “While there appears to be a slowdown in the growth rate of home sales and prices, it has not slowed rising homeownership,” Freddie Mac Chief Economist Sam Khater said in a statement -- though he added that the rate is a full percentage point below the 50-year average, reflecting “the long-lasting scars from the Great Recession and the lopsided nature of this recovery.” New Record S&P CoreLogic Case-Shiller data hint at the softening. The 20-city index of property values rose 6.6 percent in the 12 months ending in April. After seasonal adjustments, the gauge posted its smallest monthly increase in 10 months, with New York, San Francisco and Washington reporting declines. “Affordability is becoming a major headache for homebuyers,” said Lawrence Yun, the association’s chief economist. “You are seeing home sales rising in Alabama, where things are affordable. But in places like California, people aren’t buying.” In addition, “no one knows how far and how fast” borrowing costs may rise as the Federal Reserve raises interest rates, Stansfield said. Lenders and borrowers alike are less likely to let credit spiral out of control than in 2005 and 2006. And with financing tighter and wage gains in check, “there’s not much scope for prices to continue to increase sustainably” at recent rates, he said. The cooling, in turn, could curb housing starts, “because builders tend to only build what they think they can confidently sell,” Stansfield said. At the same time, he said, “it will decrease the risk of a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THINGS YOU MUST KNOW ABOUT INVESTING IN REAL ESTATE AND IRA’S

Seven Things You MUST Know About Investing in Real Estate IRAs Your IRA Cannot Purchase Property Owned by You or a Disqualified Person. One of the most common questions about real estate IRAs is: “Can my IRA purchase a property that I currently own?” The answer is always no. IRS regulations don't allow transactions that are considered "self-dealing," and they don't allow your self-directed IRA to buy property from or sell property to any disqualified person, including yourself. You Cannot Have “Indirect Benefits” from Property Owned by Your Self-Directed IRA. Can your self-directed IRA purchase a vacation home for you to occasionally use? Can you rent office space for yourself in a building that your self-directed IRA owns? No. The purpose of the IRA is to provide for your retirement at some future date. It's not intended to benefit you (or any other disqualified person) today. If your IRA engages in a transaction that, in some way, benefits you or a disqualified person, this is considered an "indirect benefit". IRA Investments Are Uniquely Titled. You and your IRA are two separate entities. As such the investment needs to be titled in the name of your IRA—not to you personally. All documents related to the investment must be titled correctly to avoid delays. The correct title for most real estate IRA investments is: "Equity Trust Company Custodian FBO (for benefit of) [Your Name] IRA" Real Estate in an IRA Can be Purchased without 100% Funding from Your IRA. You can purchase property in more ways than just an outright purchase of the full amount from your account. These other options include using undivided interest and partnering with others. You can also finance an investment with your IRA, but it must be structured properly. IRA Investments that Use Financing Must Pay UBIT. Your self-directed IRA can purchase real estate using financing as long as the loan is non- recourse. If you do use financing, unrelated business income tax (UBIT) applies. Expenses Must Be Paid from Your IRA. All expenses related to property owned by your self-directed IRA (maintenance, improvements, property taxes, condo association fees, general bills, etc.) must be paid from your IRA. Real Estate IRA Income Must Return to Your IRA. All income generated by property owned by your self-directed IRA must be paid into your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS THE DIFFERENCE BETWEEN YOUR HOMES ASSESSED VALUE VS. MARKET VALUE?

What's the Difference Between Your Home's Market and Assessed Value? Understanding your home’s value is an important part of knowing your net worth, what you’ll likely receive if you sell the property and how the local real estate market is faring. Home value is also an integral part of determining how much property tax you’re required to pay the local and state government annually. But depending on where you look, the value may appear as wildly different numbers. Different valuations can mean different things and are often used for different reasons. The two types you’ll most likely encounter are market value and assessed value. Market value is the estimated amount active buyers would currently be willing to pay for your home. Your home’s market value is determined by an appraiser, who is typically hired when your lender is deciding how much money to provide in a loan or you are setting the list price when putting your home on the market. Assessed value, on the other hand, takes the market value and puts it in the context of your property taxes. In many counties throughout the U.S., assessed value is a portion of the market value, calculated as a percentage of the market value of the property. As a result, the assessed value of a property is typically lower than appraised market value. Market Value Danielle Hale, chief economist for real estate information company realtor.com, explains that market value is based on the expectation that the property would sell during the period the value is calculated. “When people think about home values, they often mean, ‘This is the price that I could sell it for if I were to sell it today,’ or ‘This is the way a bank would value it if I were to go talk to the bank about getting a home equity loan or maybe refinancing my mortgage,’” she says. The grayest area of a market value is determining whether the value you assign to your home is based on what current market conditions say a person would pay for your house or what you think a person should pay for it. For this reason, basing market value on recent sales of similar properties is key to ensuring the number is as accurate as possible. Professional appraisers are an instrumental part of being able to examine a property, nearby recent sales and the factors that may add to or detract from interest in a property, and then assigning a value to the house based on the information. Appraisers are often hired by a lender, and it's best if they are are local to the area so they understand nuances that may not be obvious to an out-of-towner, though sometimes an algorithm will be used to determine values on a larger scale or more quickly. A lender can have a property valuated to issue a mortgage for a home purchase, for refinancing or to issue a home equity loan. Individual homeowners can also order their own appraisal to get a better understanding of their home’s current value if they’re considering selling but don’t know what the asking price should be, or simply to get a better grasp on their net worth. An appraisal typically costs between $300 and $400, according to Angie's List, and is paid by the homeowner for personal use and the buyer for a lender-required appraisal. An appraisal looks at the sale information of nearby homes with a similar square footage, age, number of bedrooms and other features of your property that have sold recently – most often in the last six months. Appraisers will also factor in major differences that may make your home’s valuation different. Because the market determines the value, it's easier to pinpoint a more accurate value for homes that are similar to many in the neighborhood than for houses that are unique. A three-bedroom house in a neighborhood of matching three-bedroom houses is relatively easy to appraise, but a Victorian home on a busy street surrounded by condos and apartment buildings will be more difficult to valuate. Home value estimates can also be found for free online with tools like Zillow's Zestimate, realtor.com's My Home tool or the Federal Housing Finance Agency's House Price Calculator, but these are unlikely to be as accurate as an appraiser. Hale says online tools serve as a great jumping-off point, but they fail to take into account current and local events that may play a more immediate factor into buyer interest and the ultimate value. “Market conditions can affect that valuation,” Hale says. Assessed Value Market value even becomes part of the calculation of your home’s assessed value. But because assessed value is used for the sake of calculating how much you owe in property taxes, the assessed value is also based on laws of your state, county and even city, explains Margie Cusack, research manager for the International Association of Assessing Officers. “The assessed value will be defined by the legal framework of that jurisdiction,” she says. “A lot of states have value limitations in law, so they might have a market value for the property. But then they have a per law allowable assessed value that they work off of, so it becomes very localized.” Advertisement: 0:13 Because of the specificity of assessed value to your exact location, Cusack recommends all homeowners – as well as homebuyers who don’t yet pay property taxes – become well-versed in the statutes that apply to the area, how the assessment is calculated and where your property taxes go. “You really need to read your assessment notice,” she says. “Usually that will define what assessed value means for that property.” The exact steps to assessing a property also vary by jurisdiction. Some assessor’s offices will use a predictive algorithm to help determine assessed values for more properties quickly, while others will address assessments on an individual, in-person basis, Cusack says. Many assessors’ offices keep online databases open to the public that allow you to access information on the history of your property – including the deed from previous sales – and information that factors into the assessment of your property. What if You Disagree With Your Home’s Value? At times, homeowners will disagree with the appraised or assessed value assigned to their property. In both scenarios, there are options for contesting the valuation. For market value, a homeowner or buyer may be able to request a property be appraised a second time with new information the appraiser may not have been aware of before – a finished basement, for instance, can change the value of a home if it can be counted in the square footage. An appraiser may be willing to take a second look at the property without extra charge if something was missed, but you may also need to pay for another complete appraisal to have your house fully reevaluated. When it’s a lender issuing the appraisal and considering the value, however, there’s not much chance you’ll be able to convince the lender to change his or her mind on issuing a loan or refinance. For assessed value, many assessor’s offices have contact information listed and occasionally host public forums to discuss individual issues with property value information. Like the calculation of assessed value itself, the process for petitioning a reassessment varies widely between states and counties, so it’s best to explore your local assessor’s office website for information on discussing the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE FUTURE OF REAL ESTATE WITH FEWER AGENTS

The Future of Real Estate – With Fewer Agents? Here's a look at potential changes to how consumers shop for a home and close a deal. The Future of Real Estate – With Fewer Agents? A photo of happy expecting couple using digital tablet on sofa. Loving young partners surfing internet at home. Both are wearing casuals in brightly lit room. Homebuyers today have a vast amount of information at their fingertips. (Getty Images) The real estate industry is facing disruption, and not just on one front. New real estate brokerages are offering an alternative to the way agents do business, tech startups are providing more information and ease of access to consumers and professionals, and companies are helping consumers bypass the need for a real estate agent altogether. But with all these new opportunities to improve the way people buy, sell and manage properties, which will stick? Some argue that real estate agents will become obsolete, while others believe the way real estate transactions are closed will evolve. It’s hard to tell which disruptions will succeed and which will fall by the wayside, but Patrick van den Bossche, president of Realty Executives, an international brokerage franchise based in Phoenix, believes consumers will never give up the information and transparency they now have at their fingertips. “Data is king, but knowledgeable data rules,” he says. Data and Service Data continues to take on a more important role for consumers, who are looking for transparency in the market and for hard numbers to help ensure their decision to buy or sell a home is the right one. Following the housing bubble burst in 2008, it was apparent how little consumers knew about the major financial decisions they were making when it came to buying a home and getting a mortgage. Since then, transparency and the availability of information has become vital to the homebuying process, evidenced by the rise of popular real estate information sites like Zillow and Trulia, which offer consumers free access to information about houses on the market, potential home values and recent sales. Historically, a major role of real estate agents has been to provide information that wasn’t available to individual buyers and sellers, such as median sale price, the number of homes for sale and details about individual properties. But with so much information now available to consumers online, the real estate agent’s role must change, explains Clelia Warburg Peters, president of Warburg Realty in New York City. “That shift from being guardians of information to really being professional service providers … [the industry has] been very, very slow to recognize and adapt to,” she says. At Realty Executives, preparing for the future of real estate has been focused on remaining in step with the newest technological advances, including maintaining a website that's dynamic for users – including interactive maps, easy-to-access analytics and user-friendly listing details – and keeping up with blockchain technology and the use of cryptocurrencies. “We decided to build our technology from the ground up,” van den Bossche says. “We believe very firmly that we need to be native in technology.” Transactions It’s not just the way people pay for a house that may change – it's the basics of the transaction itself. Van den Bossche says future methods of payment like cryptocurrency and the potential for new financing options will require greater specialization on the part of real estate professionals. Agents will need to step up their knowledge in these areas and be able to walk buyers and sellers through each process. “The management of real estate transactions will change dramatically,” van den Bossche says. That means agents must be able to make clients feel comfortable and confident in their decisions during the closing process, whether the deal uses a traditional or nontraditional process, he says. Consumers will also need to understand new buying and selling options offered by iBuyers – companies such as Opendoor, OfferPad and Zillow Instant Offers that are able to purchase properties with cash on a large scale and flip them for a profit. That means homeowners will likely receive an offer for less than they could get if they listed their property with an agent, made improvements to the home and marketed the home to the public. The flip side is that they will have a quick sale, no need to make updates to the house and receive a cash payment without having to pay commission. “What they’re offering is very compelling to consumers,” Warburg Peters says. Many homeowners would be more than happy to forgo some profit in exchange for time and money saved by not having to list their house with an agent. Agents If agents aren’t needed in the same way or for as many transactions, what does the profession’s future look like? The industry is already seeing change, as companies with nontraditional platforms like Redfin have real estate agents that show and list homes, but there are specialized roles for open houses, marketing and the closing process. Many nontraditional brokerages pay agents and other employees a salary, making the commission less of a sticking point, and as a result, sellers pay less in closing costs. Van den Bossche says he expects a "course correction industry wide,” to adopt similar practices to better meet the evolving expectations of consumers. As within other industries, emerging technologies will likely lead to a streamlining of real estate services. Warburg Peters expects the full-service real estate brokerage model will cater more to high-end clients, while midlevel and entry-level consumers will be able to save by opting to do more research themselves and hire and professionals for only certain parts of the closing process. “Brokerage is going to become more and more like a luxury service,” Warburg Peters says. As a result, the number of agents in the industry will likely decrease. “I would expect that the number of real estate agents in the United States 10 years from now will be significantly reduced,” Warburg Peters says. There does appear to be room for real estate agents to specialize. According to the National Association of Realtors’ 2018 Member Profile, based on the responses of more than 12,000 of the organization's 1.3 million members, 72 percent of Realtors report real estate as their sole occupation, which leaves 28 percent who earn money by other means or may work part time as an agent. The median gross income for Realtors nationwide in 2017 was $39,800, down from $42,500 in 2016, according to the report. If the role of the traditional real estate agent decreases outside of the luxury market, agents not representing high-end clients have a lot of room to specialize in individual parts of the real estate transaction, from guidance in shopping for a mortgage to marketing fixer-upper properties or facilitating the closing process. They could also work to help aggregate the best data for consumers, or they could simply enter a different career field. However the real estate industry evolves and modernizes, the goal for individual homebuyers and sellers remains the same: to make a purchase or sale that leaves them satisfied. Here are four things to keep in mind as you navigate a real estate deal in a changing industry. Seek the platform that works best for you. You may want to assemble a team of real estate agents, attorneys and accountants to help you move forward with a real estate deal, or you may prefer to get a sale done as quickly as possible so you have cash in hand. Both options are available to you, and both can be beneficial, depending on your situation. Research all your options, and go with the one that will leave you happiest with the transaction. You’ll still be able to find an agent. The real estate agent profession is not dead and probably never will be, though it’s likely to evolve. There are still agents available, and you can find them through a search online for professionals in your area, by clicking on a property for sale on a listing site or by grabbing a name from the “for sale” sign on the house down the street. You don’t have to worry about not having an agent to help you, Warburg Peters says, as she expects to “continue to see the existing brokerage model, but fewer highly skilled brokers.” Consult a professional. A real estate agent isn’t necessary for everyone, but you’ll likely need the assistance of a real estate attorney, housing counselor or marketing professional, depending on the deal you’re trying to complete. Ultimately, there will always be some nuances you don’t understand, and it’s best to get assistance where needed. Don’t rely on others to give you the info. It’s the age of data, and there’s no excuse to not conduct your own research on the local housing market, including where you can afford property and how much your current house may be worth. A simple search to get you started should yield multiple sources – from Zillow to the U.S. Department of Housing and Urban Development – to help you make a more confident

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOUSING: THEN, NOW, AND FUTURE

Housing: Then, Now, and Future by Moya K. Mason Houses have changed a lot over the last three hundred years. Availability of construction materials, development of indoor plumbing and heating systems, advances in architecture, governmental incentives, technology, family size, and a general rise in living standards are a few of the factors that have played a role in the evolution of our homes. These changes have, in turn, changed and shaped family and social relationships. More personal privacy and space have become a reality. The first North American homes were very small, one room, one-storey structures that were based on European building techniques, and adapted to the building materials, climatic conditions, and topography of the New World. The majority of these structures had less than 450 square feet of space, but were eventually remodelled and enlarged over time. Through the middle years of the 18th century, older houses everywhere were added to and vigorously remodelled, with room heights rising a foot or more. Parlours were added to the homes of well-off farmers and other gentry. Some large homes did exist in the 1800s. Ranging between 2200 and 2800 square feet, or about the size of a good-sized suburban home today. 19th Century In cities, small row houses went up in great numbers in the first half of the century. Virtually all of them had parlours. The average urban row house was narrow, usually only 15-20 feet across, and extending back for 30-40 feet. With mounting pressure for effective land utilization, row houses became more narrow and deeper over time. For example, two 25 foot lots were divided into three. During the 19th century, different functions of the house were compartmentalized into separate areas. Public and private rooms were kept apart. As with most other rooms, the bedroom was largely an invention of the late 18th and early 19th centuries. Until then, all but the most privileged colonists lived in one or two rooms, and beds stood throughout their homes when not in use. Twentieth Century Lot sizes began to grow after the turn of the century. Early 20th century bungalows were one-storey or storey and a half dwellings of between 600 and 800 square feet. In most new houses of the early twentieth century, square footage was drastically reduced to compensate for the increased expenses of plumbing, heating, and other new technological improvements. Housing studies also attribute the reduced square footage to a decline in domestic production of goods. There was no longer any reason to have storage places for things such as home-canned fruit and vegetables, dowry linens, and supplies for making the family's clothes and bedding. People were no longer producers, but consumers. Bungalows in the 1940s had lots measuring 60 by 100 feet. Electricity and central heating were the domestic amenities that altered floor plans and furniture placement (Volz).These improvements had important effects on domestic social relations, and, in particular, access to personal space and privacy. Older heating and lighting technologies restricted the use of space in the home, drawing household members into each other's company in the process. The physical size of homes continued to grow, as household size was shrinking. The rise of suburbia came about because of high rents, high crime rates, and urban core decay in cities; an abundance of cheap land in the country; a proliferation of cars; and government incentives. All made home-ownership very popular. Houses were also getting bigger. The small house was on the decline throughout most of the century, while the number of people living in a household decreased by 50% in the years between 1881-1991 (Ward). Room space + less people = more privacy. We've gone from having no bedrooms to having many. The middle-class bedroom has become an ever more private place, with its own television, bathroom, and telephone. The master suite has become a self-contained apartment; some even have small fridges and coffee machines. Many middle-class parents have established an unprecedented barrier that keeps their children separate from them. Similarly, the kids have done the same, and also have their own personal pads. Since the 1960s, the number of larger homes has increased, while the average number of household residents has shrunk quite dramatically. One result is that children commonly have a bedroom each. Most regard this reality an entitlement, not a privilege. The rooms themselves offer a separate place for schoolwork, and often include radios, televisions, computers, and telephones, which historically have only been available centrally within homes. The novelty of our age is that how we use the space in our homes is continually evolving. And, as we transform these spaces, they transform us. These transformations are the result of demographic, economic, lifestyle, environmental, and technological changes and pressures. Home offices and media rooms are new spaces, while old spaces like living rooms are now being used as computer rooms. Video entertainment, games, computers, and the Internet serve to isolate, and also demand more personal space, separating us from the people we live with. Homes are divided into a series of private zones for individual use, and as family members, we share fewer activities. The average new house has expanded in size from about 1500 square feet in the mid-70s to over 2000 (Friedman and Krawitz). People want more space. Family homes have grown by 1/3 in size over the last twenty years. Sizes of average lots are decreasing, as sizes of homes are increasing. The median size for a new single family home in 2003 was about 2300 square feet (National Association of Home Builders). Family size has decreased almost 25% over 30 years, while the size of new houses has increased about 50%. It comes as no surprise that houses have grown in size and cost over the years. At the beginning of the last century, the average home was 700 to 1200 square feet. In 1950, the average home was 1000 square feet, growing to an average size of 2000 square feet in 2000. Costs in 1900 were about $5000; $11000 in 1950; and $200,000 last year. An interesting fact revealed in a National Association of Home Builders (NAHB) report is that although homes have grown in size, lot sizes have begun to significantly decrease in size. In 1990, the average lot size was 14,680 square feet. Just eight years later, the average lot size was 12,870. In its profile of a typical new home in 2010, the report suggests that the average lot size will shrink by another 1000 square feet while house size will increase to 2200 or more square feet. The new home profile also anticipates more mixed-use communities, neo-traditional designs, and neighbourhoods with smaller lots and narrower streets. New communities will also offer more diverse architectural designs. 21st century neighbourhoods will be more diverse, while maintaining high-quality design standards. They will integrate live/work houses, commercial centers, and be close in proximity to amenities and services. Larger homes on smaller lots will be one of many design challenges affecting new home construction in the years and decades to come. When height restrictions are not too strict, the solution is to go up and down. Homeowners could carve out more livable space, which has previously been delegated to storage in basements and attics. The Future Buyers seem to share one thing in common: most want more living space. The median size of the respondents' current homes was 1,770 square feet. How much space did they really want? The median response was 2,071 square feet. How much land do you need for bigger homes? Less than you might think. In 1976, the median lot size of new homes was 10,125 square feet. Last year, that median size had slipped to 8,750 square feet. While lot size is on the decline, the desire for bigger homes is rising. Homebuyers want one-story homes, but builders have been responding to the demand for more living space by building more two-story homes. More stories means expansion of interior space without increasing a home's footprint and the amount of land it uses. This has become more important as land becomes less available and more costly in many metro areas. To know what will happen to housing in the next 300 years is difficult because we just don't know how technology, culture, environmental changes, and social relationships will evolve and change how we use our homes. One thing is certain: land will be at a premium and expensive. The other certainty is that the population will continue to skyrocket and there just won't be space for everyone to have large lot sizes for their homes. The other big unknown is energy sources and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE TRUTH ABOUT HOME PRICES

The Truth About Real Estate Prices By Lisa Smith October 25, 2017 — 6:24 AM EDT The layman's theory of real estate goes something like this: The Pilgrims arrived. They started using the land. More Europeans came. The demand for land was so high that Native Americans were pushed out to make room for the newly arriving settlers. More land can't be built, so demand and prices will always rise, making real estate a great investment. Unfortunately, the formula isn't quite that simple. Here we take a look at real estate prices and the long-held theory that they will rise indefinitely. Historical Real Estate Prices, Bubbles and Beyond Prior to the well-publicized burst of the housing bubble and the resulting real estate crash that began in earnest in 2007, historical housing price data from the National Association of Realtors (NAR) seemed to support the theory of endlessly rising prices. The chart below tracks median home prices from 1968 to 2004 and shows an average yearly increase of 6.4%, without a single decline during the 36-year period. What the Data Doesn't Show Unfortunately for homeowners, 2004 was the last year of healthy growth numbers before the market flattened. By 2006, NAR data showed just a 1% increase. After that, the markets experienced an unprecedented decline. Nationally, prices fell in 2007. They fell again in 2008 and yet again in 2009. By mid-2010, housing prices had fallen back to 2004 levels in a stagnant market. What had for decades seemed like a one-way ticket to growing profits had fallen by more than 30% in just a few years, according to Standard & Poor's data. Even before the numbers began to go the wrong way, the sales price trends data provided an incomplete picture. The National Association of Home Builders reports that the average home size in America was 983 square feet in 1950, 1,500 square feet in 1970, and 2,349 square feet in 2004. This trend continued in the first half of the 2000s, after which it began to decline somewhat. With the size of homes getting bigger and inflation adding to the cost of building materials, it is only logical that home prices would rise. But what happens if inflation is factored out of the picture? The result is something completely unexpected. Even before the real estate crash of the late 2000s, home prices fell frequently and significantly. In fact, World War I, the Great Depression, World War II, the 1970s and the 1980s, all saw periods of significant price decline. Lesser declines have occurred on a regular basis at other points as well. National Numbers, Regional Trends and Your Neighborhood Even the national trend numbers tell only part of the picture. Housing price trends can vary widely from geographic region to geographic region. A boom in California can mask a bust in Detroit. Even within the same city, numbers can vary widely. Areas that are experiencing new growth or gentrification can show significant price appreciation while areas across town can be in decline. When looking at the national and regional statistics, be sure to account for the reality of the market in your local area. Rising prices at the national level may not help you if your city, state or neighborhood is in decline. Reality Another important point to consider when looking at real estate as an investment is that your "investment" won't ever pay off unless you sell it. So even if your primary residence has doubled in value since you bought it, from a practical standpoint, it probably just means that your real estate taxes have gone up. All of the gains that you have experienced is merely a gain on paper until you sell the property. If you chose to sell and hope to purchase another home in the same area, remember that the prices of other homes have risen too. To truly book a gain from your sale, you will likely need to move to smaller home in the same area or move out of the area and find a less expensive place to live. While it is possible to tap the equity in your home by taking out a loan against it, using your house as an ATM has proven to be a foolish strategy in the past. Not only does the interest you pay eat into your profit, but the loan payment takes away from your financial stability. If real estate prices decline, you could find yourself in the unenviable position of owing more on the loan than the house is worth. So, Is Real Estate a Bad Investment? By now you may be thinking that there is no value in purchasing a home in the hope that it will gain in value over time. While it is true that you are unlikely to see any profits that you can spend if you plan to live in the same house all of your life, if you go into the purchase with an exit strategy, there is a much better chance of seeing a cash profit. First, consider the reason you're a buying a home. If the answer is "to live in it" then you should stop thinking about profits and losses. If the answer is "to make money" then you need to enter the transaction with an exit strategy. Keeping in mind the purchase price of the property, you should have a sell price in mind. When your price point is reached, you would sell the property just as you would a stock that has appreciated. This may not be a practical approach for your primary residence, depending on your lifestyle, but it is exactly what many real estate investors do when they purchase properties, renovate them and sell them. Just remember that prices don't always move up. In 2010, some parts of the market were down 40% from their peaks. In the past, Japan has seen housing prices fall even more. That doesn't mean that those prices won't bounce back into profitable territory, but keep in mind that in some cases it could take a very long time. The Bottom Line With history as a guide, most would-be homeowners would do well to buy a place they actually hope to inhabit, pay off the mortgage quickly, live there until retirement and then downsize and move to a less expensive home. It's not a sure bet, but this strategy does increase the likelihood of making a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THINGS TO CONSIDER IF YOU ARE A FOREIGNER AND YOU ARE BUYING OR SELLING REAL ESTATE IN THE UNITED STATES

Foreigner Selling Property in USA If there is ever a market that is always soaring and nothing dissuades it except a natural or human catastrophe, then it is the ever consistent real estate market in the USA. A wise and a smart person with money to invest will always aim to buy a property there and if they already have one, then their next order of business will be to sell it at a profit. But that only happens when they are doing everything right and are aware of the legal requirements of the action. If you are a foreigner selling property in USA, the rest of this article is going to help you loads. As a matter of fact, just read it and by the end, you’ll be a pro foreigner selling property in USA. How the U.S. Real Estate Market Works: Before treading on a path, you must first find out where that path leads. Similarly, if you invested in real estate properties in one of the states of America and now wish to sell it to earn your keep, you must navigate through the U.S real estate market and find out how things are done there. Don’t expect the same system that is established in your home country to be in USA as well. Here is what you need to know as a foreigner selling property in USA: The virtual world is highly developed and when dealing with properties, all you need to do is put up your property on sale and the buyers will automatically find about it through conducting internet searches. Assistance from real estate agents is no longer a necessary part of house selling. In case you did hire an estate agent, your buyers will come to you in numbers, providing you with a number of options. It is simply because unlike elsewhere in the world where both parties pay a commission to the estate agent, in the USA, the seller alone will have to pay the commission. Another way in which the United States real estate market stands out is the way in which real estate agents operate there. The law requires legal licensing by the agents before they are allowed to start practicing which not only saves everyone’s time, but also makes the process of dealing with properties a straightforward one. Each state has different procedures and details yet each involves special requirements and specializations for the agent before they get the certificate. A foreigner selling property in USA will also have to be mindful about the currency exchange rates. The foreigners will have to be careful about the fact that they are not dealing in the same currency so that they don’t face losses. They also need to arrange for cash dealings with the help of banking systems and take care of other financial issues, such as taxations and wire transfers. Common Pitfalls That Should Be Avoided By the Foreigners Selling Property in USA: Some of the states and countries in the USA are major hot spots for real estate market and eventually, they become so prominent that all the investors, foreign or otherwise, begin to high-tail it there. One such example is Florida. The excellent weather conditions, easy-go living, and other conveniences has made it a major real estate market where properties sell like cake. Unfortunately, many sellers and buyers fall victim to carelessness and end up succumbing to pitfalls. Let’s have a look at what the pitfalls are that a foreigner selling property in USA should steer clear of: · Title of the Property: It is one of the most confusing matters of concern for the foreigners when buying and selling properties. It is perplexing to decide who should be named as the owner of the property. The solution might seem like a no-brainer because, obviously, the property should bear the title in the name of the buyer himself, which in this case, would be the foreigner. However, in reality, things are hardly ever this simple. On one hand, naming the property in the name of the foreign owner is a good thing so that he/she will be able to sell it at a good price, and the tax on the capital gains will only be 15% on the condition that the foreigner selling property in USA has waited for at least a year before doing so. But on the off-putting side, if the foreigner selling property in USA dies while the property is still in his/her name, then according to the laws and regulations of the USA, the value of the property will be subject to nearly 45% tax deduction, maybe even more, upon his/her death. However, permanent citizens and green card holders will not be subject to the same law. They can even pass on their property to their next of kin upon their death without bearing the grunt of high rates of taxes. · Tax Identification Number (TIN): A foreigner selling property in USA must apply for a TIN number. Acquiring a TIN number in the USA is pretty easy. For this, a W-7 or W-7SP form will have to be filled by the property owner to begin the process. Upon selling the property, the buyer or an estate agent will demand a TIN number. Incase the foreigner selling property in USA fails to produce it, this will eventually result in the loss of interest of the interested parties. · Fake Non-Foreign Certificate: There are instances when the Non-foreign certificate produced by the seller can be false. As a result, everyone involved in the transaction will be held for criminal penalties. So, make sure you verify that the seller is genuine or not. Different Types of Real Estate Properties Foreigners can Buy for Selling: Foreigners selling property in USA can deal from among a wide selection of real estate properties present in USA. Selling properties in the USA can help sellers gain good profits if they have invested their money in the right property. It might seem like single houses and apartments are their only option but in truth, there are a number of real estate properties which foreigners selling property in USA can invest in. The following are these properties: Plain lands in a prime area with no bricks laid and no construction on them is also considered a property, and a very profitable one at that! Properties like these are always in demand by the constructors and since their rates are always rising, it ends up being a good investment. Another type of real estate property is referred to as a duplex, triplex and quads. They are actually several units in one property and can be sold to not one but several families at once. Hence, there is more profit generated by selling such a property. Foreigners selling property in USA can even occupy one of the units in the duplexes for their own use. People who want to be foreigners selling property in USA must start low to understand the procedures and to practice in the investment business. Fortunately for them, mobile homes are one of the best opportunities for rookies. Investing in mobile homes will help them get the lay of the land and understand capital gains, cash flows, payments, and FIRPTA without risking investing a bigger amount. If we have to choose a real estate property that makes the best profit for foreigners and natives both, it has to be a commercial property. The rates of commercial properties increase the most, even more so if business in and around the commercial property is prospering. Industrial properties are other kinds of properties which foreign investors can buy and earn a good keep on selling it. These properties attract buyers who are willing to run a manufacturing business there, and they usually pay good prices for them. If all the good looking properties are off the market, there is always RV parks, farming lands, and motels to buy. They are very much needed by people, and foreigners selling property in USA can gain a good profit from selling them. As profitable as all these properties are, foreigners selling property in USA must make sure to do everything legally. They must pay capital gains tax, income taxes, and apply for FIRPTA; only then will their profit will be worth it and will also open many more doors of opportunities for them. Frequently Asked Questions by Foreigners Selling Property in USA A foreigner might be dealing with properties in the USA but that doesn’t mean that they are well-versed in everything related to it. There are some questions that most foreigners end up asking when they are considering selling their property. Here are some of the most frequently asked questions (FAQs) asked by foreigner selling property in USA: · Can A Foreigner Buy Property In The US? One would have to buy a property first in order to sell it. So, those who are stepping in this direction for the first time always find themselves asking whether they are even eligible to be a buyer and seller of a property in the USA. The answer is quite obviously yes. Buoying is easy too. As long as the foreigner goes through all the necessary requirements and abides by the needs of the government, they can buy whatever they want and wherever they want. Admittedly, it is much easier for foreigners to buy a condominium and sell it as compared to other forms of properties. In fact, aiming to buy a corporate property might be a tad bit difficult as it is solely based on the seller’s decision to sell to a foreigner or not. They can be rejected without any reason. · When Selling A Property In New York City, What Taxes Does A Foreigner Need To Pay? We might be talking about all the states of America, but New York has some of the most hottest locations and an even better real estate market. This means that most foreigners selling property in USA show interest in buying a property in New York, which leads us to this question. Since New York is one of the prime locations in the USA, people naturally believe that the taxes there will be high. However, the taxation system here is more or less the same as anywhere else in the USA. A foreigner selling property in USA will have to pay their share in gains tax and FIRPTA withholding tax. The federal gain tax rate is 15% of the total capital gain, whereas non-residents will have to pay an additional tax of 8.82% as New York State charges. · What is FIRPTA? Not many foreigners understand what FIRPTA is, which leads us to answer this question. FIRPTA (Foreign Investment in Real Property Tax Act) refers to the US’ policy of charging foreigners selling property in USA to pay a withholding tax. When foreigners selling property in USA earn profit upon selling their property, they become liable to pay taxes at the rate of 10% which is charged on the gross sale price of the property. The IRS is the recipient of the withholding tax and should be paid within 20 days after the closing date of the sale. A special consideration is given to the sellers who have made timely payments of all of his/her taxes, like capital gains and income taxes. These foreigners are given a refund of 10% of the withheld amount from their sales. The point of holding this specific percentage of fund is to ensure that the foreigner selling property in USA paid all the taxes that were due. Once it has been confirmed that they have indeed paid all their liabilities to the government, they can apply for a refund through any of the following procedures: In case they rented their property before selling, foreigners selling property in USA can file all the tax returns of each rental year. After filing all the incomes and taxes, they can report it and wait for their refund. This can take up to 18 months Another method of claiming your refund is by filling form 8288-B. This method is one of the most preferable and common ones in which the foreigner selling property in USA requests to get exempted from the withholding tax entirely by presenting all the documents that prove that the seller has indeed paid all their taxes and their tax returns. In this scenario, the specified percentage of withholding tax remains in the custody of the closing agent and when the IRS approves of the funds paid, the withheld amount is returned to the foreigner selling property in USA within 90 days of the closing date. For following the above procedures, a foreigner selling property in USA must attach the following listed documents with their forms to apply for the refund. Prior year’s tax returns Receipts of repairs and upgrades Receipts and invoices of furniture Settlement statements from purchase of property proofs of income received and expenses incurred US tax identification number (TIN) Passport pictures What A Foreigner Needs To Do When Selling Property In The USA: A buyer will never make deal with a foreigner selling property in USA if they do not have complete documents and other legal credentials when selling. Therefore, the foreigner selling property in USA must contain the following: · Tax Identification Number (TIN): We have already established the importance of a TIN for every tax payer, whether foreigners or natives. Now, we’ll discuss how to acquire them. The population of the USA is large and then, there are foreigners who are investing in properties. Therefore, to make the process simpler, the IRS has established a straightforward method of assigning a TIN number, which is similar to the Social Security Number (SSN) that every US resident owns. These identification numbers are then used to track the tax history of every individual. To apply for a TIN number, the foreigner selling property in USA must fill the W-7 form that can be downloaded from the official webpage of the IRS and can be submitted to them. Foreigners can find a US consular office in their own country and submit the form to them as well. US tax Filing due Dates and Obligations: A foreign buyer and seller of a property in the USA is hard to track down by the IRS since he/she is not residing in the States themselves. But since it is compulsory for them to pay all their taxes on their earnings they have made on US soil, FIRPTA and the IRS has to make sure that they haven’t been short-handed by the foreigners selling property in USA. As a result, they have made it obligatory for the sellers purchasing from a foreigner selling property in USA to file IRS form 8288 within days of the closing date of the sale transaction. In addition to this, a foreigner selling property in USA too will have to file all their documents that we mentioned

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CAN NON US CITIZENS OWN REAL ESTATE IN THE UNITED STATES?

Can Non-citizens Own Land or Property? Regulation of land ownership rights for non-U.S. citizens is generally reserved to the states. But generally speaking, aliens and non-nationals are allowed to purchase, convey, devise and own real property. While the specific details of transactions may vary by state, most purchase of real estate by non-citizens is done through cash rather than loans. What are the Requirements for Non-Citizens to Buy Land or Property? As mentioned, there are very few restrictions on the ownership of property for non-nationals. However, there are usually some requirements that need to be met if the non-citizen is attempting to secure the home through a loan or mortgage. Most mortgage companies require: A permanent resident card (i.e. “green card) along with social security number; OR Temporary resident status, plus work permit and valid social security number These types of documents will help ensure the lender that the borrower has sufficient income to maintain the loan payments. In addition, some lenders may require that the non-citizen has resided in the U.S. continuously for the past 2 years prior to the application, has a good credit history, and has a steady employment arrangement. In fact, the mortgage lender may be required to research this information according to laws like the Patriot Act. What if There is a Dispute Over the Non-Citizen’s Property Ownership? Normally, disputes over property owned by a non-citizen won’t be a problem for either party. Non-citizens, especially permanent residents, are entitled to many consumer rights in home purchases. Thus, for non-residents who are validly in the U.S., disputes over property shouldn’t produce any extra legal hassles. However, if the alien is in the country illegally, a dispute over property may lead to a disclosure of their illegal status. For example, the property dispute may lead to an investigation regarding the person’s background, and the alien may then face consequences such as removal (deportation), or being prohibited from entering the country if they leave.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CAN A NON US CITIZEN GET A MORTGAGE IN THE UNITED STATES?

Can a non-U.S. citizen get a mortgage in the U.S.? The short answer is yes. "You do not have to be a citizen of the United States to purchase real estate here," says Ines Hegedus-Garcia, a real estate agent in Miami, FL. However, the kind of loan you are eligible for—and the documentation required to get that loan—will depend on your immigration status. Here are three different situations, and how people in those situations can qualify for loans. Permanent residents with a green card If you are a permanent resident with a green card, you can qualify for the same standard Fannie Mae or FHA loan that U.S. citizens are eligible for. Your loan application process should be exactly the same as the one for any naturalized citizen, except that the lender will probably require more documentation to prove your residency. However, you still must qualify for the loan, which usually requires at least two months of bank statements, two years of credit history, and two to three years of tax returns or other proof of income continuity. New residents might find that they do not have enough proof that they pay U.S. taxes and earn income in the United States. "Some people have to spend a few years establishing themselves here before they can qualify for a conventional loan," says Erika Borrero, a licensed mortgage adviser with Angel Oak Home Loans in Orlando, FL. Every lender has different requirements, however, so if one lender disqualifies your application, reach out to other lenders or mortgage brokers. Temporary residents with a work visa People working legally in the United States, even on a temporary work visa, are eligible for the same kinds of loans as permanent residents and citizens, including FHA loans and down payment assistance. The application process for temporary residents should be similar to that for citizens or permanent residents. If your work visa is expiring in less than a year, lenders may require a letter from your employer stating that it will be renewed. Like new permanent residents, new temporary residents may have difficulty qualifying for a mortgage because they lack two years of U.S. tax returns and credit history. However, every lender has different requirements. Some lenders may be willing to consider non-U.S. income history, especially if it is for the same employer. Some lenders may accept credit history from other countries like Canada, if they have credit-reporting systems comparable to the systems in the United States. Look for a lender or mortgage broker who specializes in helping non-citizens get loans to guide you through the process. Foreign nationals without the legal status to work in the U.S. If you do not have a U.S. work visa or permanent resident status (sometimes called a green card), you are not eligible for conventional or government-backed loans in the United States. You do, however, qualify for a different kind of loan called a foreign national loan. "To qualify for a foreign loan, you have to prove that you’re living in another country," says Borrero. You also have to prove that your income is coming from your home country and that you live there. The big difference with foreign national loans is that they must be used for an investment property, not a permanent residence, so these are not great options for people looking to put down roots in the United States. Foreign national loans also have higher interest rates and require borrowers to put at least 25%

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

IS THE HOUSING MARKET STARTING TO GO THE WRONG WAY

If you're a real estate agent, odds are you haven't been closing as many deals lately. A slowdown in new construction and a short supply of existing homes for sale have pushed housing prices so high that would-be buyers are either finding themselves in bidding wars or sitting on the sidelines. "We're hearing things from our real estate agents that we haven't heard in three years about homebuyers stepping back from high prices," said Redfin CEO Glenn Kelman on the real estate firm's second quarter earnings call this month. What's eating the housing market, in the midst of what otherwise looks like upbeat growth? In part, it's a victim of the economy's success: The Federal Reserve is seeking to keep inflation in check by raising interest rates, making mortgages more expensive. Related: How Washington could actually make housing more affordable Meanwhile, a crackdown on immigration as well as tariffs on imported lumber have made it more difficult and expensive for builders to obtain the labor and materials they need to construct homes. That's especially true in hot urban markets, where land is expensive and zoning can be restrictive, according to the National Association of Home Builders. Freddie Mac forecast on Monday that the housing market will stay slow for the rest of the year. But it doesn't see any real trouble on the horizon. "The healthy economy and robust labor market should support homebuyer demand," the mortgage giant wrote. Here's what's happening in the housing market now. 1. New home construction New home construction surged following the recession, but has moderated in recent months. That has left many markets with a persistent lack of supply. That's not just true in the for-sale market — the rental vacancy rate is also nearly as low as it's been since the early 1990s. 2. Housing prices The slow growth of new housing stock has driven up home prices quickly, especially in hot markets like San Francisco and Miami. (Other markets, like Detroit, still haven't regained the value lost during the Great Recession, according to data collected by the Federal Housing Finance Agency.) Although the closely-watched Case-Shiller Index showed on Tuesday that home price growth slowed slightly in June, the 20-city composite measure topped its pre-recession high at the beginning of 2018. 3. Existing home sales Low inventory and high prices have slowed down the entire housing market, which is mostly made up of previously owned homes. Existing-home sales fell for the fourth straight month in July to their lowest level in over two years, the National Association of Realtors reported last week. "Additional inventory will help contain rapid home price growth and open up the market to prospective homebuyers who are consequently — and increasingly — being priced out," National Association of Realtors Chief Economist Lawrence Yun wrote on Monday. That creates a drag on the job market as well, since it makes it more difficult to pick up and move to a new city for better employment opportunities. Americans are already relocating far less than they used to. 4. Foreclosures Foreclosures plagued the housing market during the financial crisis as borrowers struggled with loans they couldn't afford and homes prices plunged. These days, borrowers are in much better shape, but there are signs that foreclosures are on the rise again. The housing analytics firm Attom Data Solutions found that foreclosure starts are increasing again for the first time since 2015. The trend is particularly visible in hurricane-hit cities like Houston, but also increasingly expensive places like Los Angeles. "We're seeing enough in these bellwether markets that I think it's an inflection point," says Daren Blomquist, senior vice president for communications at Attom. Related: How America's foreclosure capital came back from the dead But as with the rest of the housing market, that turn in the numbers likely isn't a sign of impending collapse. The loans having the most trouble are those that the Federal Housing Administration insured in 2014, when the agency was backing off on the very tight standards it had imposed during the great recession. "In '14, what you begin to see is a loosening of the underwriting, but not an irresponsible loosening," says David Dworkin, a former Treasury Department and Fannie Mae official, who is now president of the National Housing Conference. "I think we're seeing a return to a more normal

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EVERYTHING YOU NEED TO KNOW ABOUT THE FSBO PROCESS

FSBO means “for sale by owner” When you sell a home, one of your first decisions is whether to FSBO (for sale by owner, pronounced “fizz-bo”) or hire an agent. But there are other options as well, offering less-than-full service and still saving you money. Learn about your options, from full-service Realtor to going it alone, and all the hybrid programs available today. Verify your new rate (Nov 13th, 2018) FSBO is a thing — more than ever If you read a report from the National Association of Realtors, you’d believe that no one is selling on their own anymore — a mere 8 percent of sellers, according the the NAR’s 2016 report. But they glossed over one important fact, says Forbes Magazine — that many, many sellers are doing at least part of the work themselves and paying less to sell their properties. percent of fsbo for sale by owner For instance, one of the most cost-effective things you can do to market your home is get it listed on the local multiple listing service, or MLS. You might pay a few hundred dollars to a real estate brokerage for the placement. And the NAR will count that as a Realtor-assisted sale, even if it was pretty much a FSBO. Buyer survey: online and mobile tools on the rise in real estate Another 2016 study conducted by Redfin found differently. Redfin concluded that 25 percent of sellers in the last year pulled it off without the help of a full-service agent. About 15 percent of sellers used a limited service agent, and about 10 percent listed without an agent’s help. So if you decide to go it alone, you’re not really going it alone. Should you sell your home yourself? Only if you pass this test Even in the hottest markets, DIY home selling involves more than just putting a sign in your yard. Before making money-losing errors, make sure you know the answers to these five questions. 1. What’s my property worth right now? Everyone wants to buy low and sell high, and home sellers often overestimate the desirability of their homes. So act like an appraiser and research local sales and trends online. It’s important to look at actual sales prices, not just “wishful thinking” listings. overpriced homes You may want to pay for an appraisal from a licensed appraiser. In addition to the home appraisal, there are three more sources of home value. They are, from least to most accurate: Automated Valuation Model (AVM) Comparative Market Analysis (CMA) Broker Price Opinion (BPO) The AVM is what you get with most online valuation tools. It works when you haven’t done much improving your home, if it’s in a tract of identical houses, and you’re willing to be off by 10 – 30 percent. How to determine your property value? If you’re considering listing with a real estate agent, part of the marketing presentation usually involves a CMA. However, it’s part of a sales pitch. And agents’ main business is not evaluating — they might overstate your value to get your listing. Brokers with BPOR certification from the National Association of Realtors have special training and only they are allowed to perform BPOs. Lenders often commission BPOs to determine the value of repossesssed property before a foreclosure sale. The broker examines three recent sales of comparable property to yours, and three currently-listed houses. He or she performs what amounts to a mini-appraisal and offers a value estimate. A typical BPO costs between $50 and $250. considerably less than an appraisal. 2. Am I willing to deal with buyers’ real estate agents? While you may decide not to use an agent, many buyers still choose to work with one. And that person expects to get a commission, usually from the seller. It’s traditionally how real estate sales work. Selling a home: Meet Gen X and Gen Y, your new buyers Expect to pay 2.5 to 3 percent of the sales price if an agent brings you a buyer. While you can refuse to pay the commission, it will probably shrink your pool of potential purchasers. 3. How much do I like sales and marketing? Some FSBO sellers are surprised by the amount of time and effort selling a home can take. Part of doing it yourself includes: Taking good pictures and writing nice descriptions of your property’s best features Putting up your “for sale” signage with your contact information Listing the property online Creating fliers with lots of good pictures and copy 4. Can I stand people stomping through my house and saying rude things? No one likes to hear their beloved house trashed by an outsider. But buyers may put down your home as part of a strategy to get a better price. Can you stand to hear about your house’s shortcomings? fsbo tour How much will you resent potential buyers interrupting your meals, your business, or your fun time? There is a reason most professional agents have their sellers leave when buyers come in. For one, buyers are more likely to express their opinion of the house’s features, faults and price. This is valuable information. How to sell your home in the fall for more money The other reason is that most people find criticism distressing, and that can make them too emotional to negotiate properly. Finally, selling yourself can be a challenge if you have pets. Most agents recommend that pets not be present when buyers are viewing the property. And definitely extinguish all pet odors before putting your house on the market or allowing people inside. 5. Am I willing to screen my own buyers? With an agent, someone else supervises home showings and makes sure your personal effects don’t walk out the door. And they don’t let people who can’t get financing waste your time. You should check potential buyers’ identification when they enter your home, and note their names and addresses. This should make them think twice about damaging or stealing anything. If your floors are delicate, be prepared to offer a place for shoes and socks or slippers to visitors. Make the place inviting by turning on lights, setting the temperature to a comfortable level, and keeping things neat and clutter-free. Mortgage prequalification vs pre-approval (pre-approval is better) Your first line of defense is requiring potential buyers to provide a mortgage pre-approval letter. Or at least a pre-qualification letter. That shows that they are serious enough to have gone through the process with a mortgage lender. A pre-approved borrower is better than a pre-qualified one. A pre-approved or “credit approved” buyer is almost as good as a cash buyer. As long as your property appraises for at least the purchase price and meets the lender’s standards, you should be able to close fairly quickly. Benefits of FSBO The biggest reason to consider some form of FSBO is the money you may save. If your house sells for $300,000, a traditional real estate commission of 6 percent would cost you nearly $20,000. You can keep that money or drop your price to sell faster. fsbo savings While real estate writers often claim that professional agents are better negotiators than “civilians,” research does not necessarily support this. Economists Stephen Dubner and Steven Levitt wrote in Freakonomics that agents who sell their own houses get better deals for themselves than they negotiate for their clients. Harvard research: the future of home prices in 2017 and 2018 That’s because they have more incentive to move a property fast than to squeeze a few thousand more from a buyer. Negotiating $25,000 more for you gets them, after splitting commissions with the selling agent and their broker, about $375. Not worth the extra time and effort for them, but probably worth the effort from you when you sell yourself. The other benefit is that you control the process. You decide if you want an open house. You decide how to advertise, if you want to have an open house, when to show your home to prospective buyers, and how you want to negotiate with them. If you like being in the driver’s seat, you may prefer to DIY your home sale. Full-service, DIY, or…… Today’s homebuyers can check out homes without spending hours in the back seat of an agent’s car. They can and do tour for-sale homes anytime they want. But how do you get your house out there in front of buyers? You could build your house its own Web page. Or you could pay a national real estate firm 6 percent to take lots of pictures, print brochures and advertise your house on their site. Real estate representation: buying agents vs listing agents Or, you can choose another level of service and price for a custom experience. This so-called “hybrid” model blends traditional and DIY real estate sales, letting you save money by doing things you don’t mind doing, and save time by paying someone to do things you don’t like. The hybrid model: all things to all people? Traditional agents usually split a 6 percent commission between the listing agent, the selling agent, and their respective brokers. Each party may grab a 1.5 percent share of your sales price. Making a sight-unseen offer on a home FSBO sellers do not have to pay the standard commission, but may have to pay a selling agent and broker 3 percent in order to make the deal work. And FSBO selling can be a lot of work and aggravation for some. FSBO sellers may miss out on buyers who have buyer’s agents. Their agents may prefer to avoid FSBOs, even those who will pay a 3 percent commission. They expect that they will be stuck with most of the work. A hybrid model can prevent this. Pay only for what you need Online self-help platforms offer different ranges of service, letting sellers decide how much service they want and what they want to pay. how much can you save with fsbo Paying for a listing in your local MLS is the minimum you should do, according to the American Economic Review. Researchers claim that, “the probability of a quick sale is higher for houses initially listed on the MLS.” Many hybrid model platforms offer free trials and low-priced options. 10 reasons your home sale didn’t go through The highest-end packages offer signage, online or phone support, state-specific real estate forms and national and local MLS exposure. It may be well worth the investment if you save a ton and avoid the worst of selling stress by getting some professional help. When it comes time to sell, think realistically about how much you’re willing to do. If you are confident, willing to put in the hard work, and perhaps have some real estate or marketing experience, FSBO may work well for you. How to sell your home FSBO Regardless of how much or little help you get from an agent or service, you’ll have to complete these steps. Preparing your home for sale You may have learned to live with your home’s “quirks,” but buyers will quickly notice deferred maintenance like peeling paint or sticky doors. And they will wonder what other problems are not in plain sight. Walk through your home as though you’re seeing it for the first time. Enlist the help of a more objective family member or friend and ask them to be completely honest about any turn-offs. (Make sure you can handle the truth before asking for it.) Staged homes sell 73 percent faster Take care of obvious ugliness and health and safety issues, but don’t over-improve the place for someone else, or price yourself out of the neighborhood with too much fancy stuff. Staged homes fetch higher prices. It’s a fact. If you don’t want to hire a pro, at least rent some storage space and stash a minimum of half of your belongings out of sight. You may need to get rid of pet hair and odors, and even board your furry family members elsewhere until you close on the sale. Be your own marketing department Plan to spend some money for advertizing. Researchers claim that nine of ten buyers search for houses online. They need to be able to find you and yours. Homeowner survey: more preparing to sell It pays to spend what it takes to get your house listed on the local MLS. While the MLS is not available to consumers listing homes, there are brokerages or platforms that offer the service for a flat fee. Make yourself available for showings and be as flexible as possible, You will probably have to put your life on hold while selling your own house. Commissions, open houses, and other stuff If you offer a commission to selling agents, make sure they know it. Your MLS listing should state this, as should your signage and advertising. Plan on putting a lockbox on the house, so selling agents can tour the home with their clients, and you won’t have to be there. Make them earn their 3 percent! Should you hold an open house? Many believe that they are primarily used by agents to market themselves to your neighbors. If your house is on the MLS and you provide good pictures and / or virtual tours, you probably don’t need to hold an open house. And you avoid looky-loos and snoops prowling through your home. open houses snoops looky loos If you do open your home, it will be easier if you have some help — someone to sign in visitors and check IDs, someone to keep an eye on various rooms as people walk through, and someone to answer questions from potential buyers and agents. Hire a good photographer to shoot a virtual tour. Most pros can also offer drone photography. Advertise the virtual tour link in your brochures and fliers. How to evaluate and counter offers Decide what’s most important to you. For example, an all-cash offer with a fast closing date may be better for you than a higher sales price contingent on buyers selling their current home. Understand your market — you’ll negotiate differently in a seller’s market than in a buyer’s market. The buyers or their agents normally draft the sales agreement. If there are multiple offers, you’ll be responsible for communicating with potential buyers / agents. You’ll evaluate the strength of each offer and perhaps counter them, eventually arriving at an agreement. How long does it take to buy a house? Learn in advance how to write a counter offer. You don’t have to accept the buyer’s offer, but you should always counter and give them the chance to do better. Many just automatically see what they can get away with on the first go-round. Remember that price is just one factor. You may be able to make the deal more attractive to a buyer by paying closing costs or throwing in a snow blower. Incentives to buyers’ agents may also get the deal done while still saving you money. Protect yourself Make sure your buyer is prequalified by a lender to purchase your home. Require an earnest money deposit that the buyer will forfeit if he or she does not adhere to your contract and close as agreed. Understand that contingent offers let the buyer out of the deal under some circumstances. For instance, most standard contracts allow the buyer to exit if a mortgage lender declines their loan application, or the home fails to appraise for the sales price. How to avoid contingent offers on a home If a buyer makes a contingent offer, make sure you can accept a better offer or force the buyer to remove the contingency. This is called “right of first refusal.” The home inspection There are two schools of thought about home inspections. On one hand, by getting one before putting your home on the market, you find out if anything needs to be fixed upfront. This can eliminate ugly surprises deep in the process. Home inspection: What do they do and why should I get one? On the other hand, most (if not all) states require you to disclose any defects you know about. So anything that turns up would have to be fixed or disclosed, and you may not want to do that. Providing a copy of your own inspection may help put buyers at ease, and they may even waive their right to order their own. That’s not smart on their part, but an unrepresented buyer might not know any better. Repairs Your sales agreement should set a limit on the amount of repairs you’re required to complete. For instance, you might agree to pay for repairs up to $2,000 without renegotiating the contract. Are home warranties worth it? But if the inspector comes up with $20,000 of repairs, you may not want to be forced to do that to close your deal. You may prefer to just kill the deal or negotiate a lower sales price based on the inspector’s findings. FSBO home disclosures Federal and state law mandates certain disclosures and material facts. You must give the buyer a copy of all required disclosures. Have your buyer sign a receipt indicating that you provided these things. In many parts of the country, buyers ask for pest (termite) reports from the seller. The cost is negotiable, but many areas have traditions that dictate what people expect to pay for, and what they expect you to pay for. If you live in a community, co-op or condo with a homeowners association (HOA), your buyers and their mortgage lenders will want copies of the covenants, conditions and restrictions (CC&Rs). That’s a set of rules homeowners must abide by. What happens at your real estate closing Know if your community is FHA, Fannie Mae, Freddie Mac, VA or USDA-approved. You can then advertise this fact to potential buyers. The buyer will likely obtain title insurance, which again is a negotiable expense between the parties. You should order a preliminary title report before selling, so you’ll know if there are issues you need to address. For instance, things like tax liens that might be on your title by mistake. Smart sellers often offer to provide a home warranty. That costs a few hundred dollars for a year of coverage. And the buyer won’t be blaming you for every little thing that goes wrong after the sale, or call wanting you to fix anything. Ordinarily, buyers get some amount of time to review these disclosures. Once that deadline passes, they don’t have the right to kill the deal because of anything on the forms. If your contract is set up correctly, you should be able to keep their earnest money if they back out at that point. Should you offer seller financing? If you have a significant amount of home equity, and don’t need to receive the entire proceeds of the sale at closing, consider seller financing. Lending some or all of the purchase price to buyers offers a couple of advantages: you reach a larger market and create monthly income. How does seller financing work? There are three ways to structure your sale. Your choice depends on your objective and how much you owe (if anything) on your home. Mortgage or deed of trust When you create a mortgage (or deed of trust, depending on your location), you become a mortgage lender. You and your buyers have to execute mortgage documents dictating the loan’s terms. You record a lien against the home with your county. Mortgages and home sales are public, and must be recorded to be enforceable. Owner carryback In this case, most of the financing is taken care of by a professional mortgage lender. You just finance part of the buyer’s down payment. This is called an owner carry or “piggy-back” mortgage. Lease options: the good, the bad and the ugly One common structure is the 80/10/10, in which the buyer puts ten percent down, gets a ten percent carryback from the owner and an 80 percent loan from a mortgage lender. An 85/15/5 requires just 5 percent from the buyer and 15 percent from you. Understand that the mortgage lender is in first position. This means if the buyer defaults and the lender forecloses, it gets paid first from the foreclosure sale. You get paid only if there is enough left over to cover what’s owed to you. Wraparound A “wraparound” loan creates a new mortgage between you and the buyer. However, you continue paying your existing loan. Not all lenders allow this. In fact, many have an acceleration or due-on-sale clause that requires you to pay off your mortgage when you sell your home. But assuming you can do a wraparound, they work like this: If you owe $100,000 and sell for $150,000, you might accept $15,000 down, grant a $135,000 mortgage, and record the sale with your county. You receive monthly payments from your buyer, make monthly payments to your lender, and pocket the difference. Pros of seller financing There are several advantages when you finance a sale yourself. Not only do you receive your profit from the sale; you can take what a lender would get in interest and loan fees. Higher price Buyers who can’t purchase a home with traditional financing have less bargaining power than prime buyers. You’re more likely to get a better price. Tax breaks If you’re not able to legally exclude all capital gains on your property sale, you can minimize or defer tax liability by carrying a mortgage. The IRS calls it an installment sale, and only a small part of each payment is considered a taxable gain. Depending on your bracket, the savings can be substantial. Income Financing a sale creates income streams. First, just like a traditional lender, you can charge closing costs for originating the mortgage. One percent of the loan amount is typical. The second income stream is the return of principal, including the gain on your property sale. The third stream is your interest income. Before setting an interest rate, know what mortgage lenders are charging someone with your buyer’s credit, down payment and income. Lower costs In many areas, it’s customary for property sellers to pay at least half of closing costs. Plus real estate commissions. As a financing seller, you might be able to skip expensive title insurance in addition to the services of a real estate agent. Cons of seller financing There are also disadvantages and risks when you provide financing. It’s up to you to decide if the extra money is worth it. Legal fees Unless you’re very experienced at selling and financing property, hire a real estate lawyer to set up the loan. An attorney should also draw the sales contract if there’s no agent involved. Lawyers don’t work for free, but not using a pro can be very expensive in the long run. Default If the buyer fails to repay as agreed (either you or a mortgage lender in first position), you will be dealing with the foreclosure process. The legal fees, aggravation and potential property damage are major issues. It’s critical to remember that a mortgage lender’s lien takes priority, and your carryback is a second mortgage or junior lien. This means the lender gets repaid first after the foreclosure sale. You get paid (maybe) from what’s left over. Acceleration Almost all mortgages have “due on sale” or “acceleration” clauses, which means your lender can choose to call in the loan once the property changes hands. It doesn’t happen often, but it’s possible. Your lender might okay the wraparound after the fact, but increase your interest rate. If you create a wraparound mortgage, consider all contingencies and have an out, just in case. Avoiding problems with seller financing Unless you’re an experienced private lender, get professional help. Have a real estate attorney help you set the terms of your sale and loan. Do not rely on forms from your office supply store. Hire a note servicer to collect monthly payments. It should also collect and pay property taxes and homeowners insurance premiums. It’s not expensive, and much of the time, the buyer pays it anyway. What to expect after your home closing Act like a lender, because you are one. Have your buyer complete a Fannie Mae Form 1003 (mortgage application). Pull the buyer’s credit, verify income, and set your down payment requirement based on the strength of the borrower. If your buyer needs you to carry the loan because his credit report looks like a rap sheet, don’t make yourself the next victim. Experienced “hard money” lenders set upfront fees and down payments very high. So high that they won’t lose money if the buyer defaults early on. You should look after yourself like the pros do. FSBO mistakes to avoid face palm frustration fsbo There is a reason that states don’t just hand out real estate licenses to anyone. Agents must complete a certain amount of training and pass at least one exam to get their licenses. And they must pass continuing education classes every year. You probably don’t have that training. So here’s a crash course in what not to do when you FSBO. Just throwing a sign out there Whether you are selling on your own or with an agent, in order to attract buyers, clean your house, get rid of clutter, and maximize your curb appeal. However, beware of spending too much and over-improving your property for its neighborhood. Put your money where it will do the most good — on inexpensive improvements like fresh paint, a weed-free yard, an inviting front door, and clean baseboards and walls. Overpricing Sellers who FSBO must do their own research on what similar houses in their area are fetching Look at the most recent sales you can find, and also check out the listing prices of competing properties in your area. 5 steps to take before making an offer on a home Remember, your house will sit on the market longer, costing you time and money, if you overprice it. All you’ll be doing is helping other people sell their homes, because they will look better in comparison. In fact, agents often show overpriced houses first, then show their own listings to their clients. Your bad decision helps everyone but you. “Forgetting” to get a home inspection Savvy buyers will require an inspection. They are likely to find some (hopefully minor) repairs needed. Sellers who have a home inspection before putting their home on the market can prepare to pass a buyer’s inspection. Or you could just hope a silly buyer shows up and buys “as is.” Getting eaten alive by a buyer’s agent Selling your home without an agent won’t save you the entire 6 percent unless your buyers are also unrepresented. If you want to attract the attention of buyers who are working with a real estate agent, you’ll have to offer a commission in the traditional range of 2.5 to 3 percent, and maybe more to compensate the agent for the extra work your FSBO deal implies. Seller concessions: paying the buyer’s closing costs On the other hand, don’t just let the buyer’s agent control the whole process, or push you to accept less than you should. If you can’t negotiate comfortably, get your own representation. Putting too few (or just bad) pictures online Since nearly all buyers start their home search online, they are used to checking out photos before touring houses in person. Make sure you have multiple photos with your listing. And be smart about what you showcase: if you say you have a great view, show the view. How emotions affect the home buying process Incredibly, even professionals sometimes make this mistake. They put up 20 pictures of the bathrooms and none of the outside. Highlight your home’s great points. Make sure the rooms are clean, clutter-free, and well lit. No blurry, dark or ugly pictures, please. This is one area in which professional staging and photography may offer a lot of bang for your buck — especially if you’re selling an upscale property. Not using your local MLS (multiple listing service) It’s easy to find FSBO services that can put your home on the local real estate listing service for a flat fee. It’s just a few hundred dollars (almost nothing compared to the value of your home). You can market your property to thousands of buyers, probably the most cost-effective help you can buy. Being hard to reach or meet Selling your home is a pain, plain and simple, and it’s even worse when you have to do all the work yourself. If you can’t be available to show potential buyers on their schedule, hire someone who can. Unless your house is so desirable or well-priced that you can make everyone come at 6 am on Sunday, you’ll either have to put up a lock box and pay a 3 percent commission or take a lot of time off work to show your house. Blowing off potential buyers Respond to emails and phone calls immediately, because any of them could be from a potential buyer. Remember that serious buyers want to narrow down their list quickly, view those homes and complete the process ASAP. If you wait a few days to make contact, they may already be under contract elsewhere. Dealing with unqualified purchasers Don’t take your home off the market until you get proof that the buyer can follow through. This means a mortgage pre-approval letter or bank statement showing the buyer has the cash to close. Don’t rely on mere pre-qualification. In most cases, pre-qualification does not involve underwriting, proof of income or even necessarily a credit report. You could lose a lot of time and money if your sale fails at the 11th hour. The bottom line There is money to be saved by selling your home yourself. In some cases, big money. However, don’t be surprised if you save less than expected, and have to work a bit harder for

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

ELDERLY AND REAL ESTATE FRAUD

As the economy continues to flail, many people – including caregivers and the elderly – are looking for ways to get ahead on finances – or in many cases, just to stay afloat. The sale of real estate might be a good strategy for a fast cash infusion (unless of course, you are upside-down in equity). Elders are often looking to sell their home to move to Assisted Living and working with a licensed real estate agent can pay off. But many elders weren't even thinking of selling – until a fraudster showed up their door. The scammer sweet-talks vulnerable elders with "a sure-fire way to sell their home and make a great profit." "Current real estate market conditions have opened the doors for financial elder abuse by obtaining property through undue influence or fraud," says Elizabeth Ernster, an attorney with Ernster Law Offices, P.C., in Pasadena, California (www.ernsterlaw.com). "The unfortunate reality is that many seniors are being swindled by real estate agents who have convinced them into selling their home for less than its market value, and then making a large profit off the sale." Ernster has extensive experience representing seniors and their families in real estate fraud. Of the scammers, she says, "These people are smart. They know what they are doing. They throw around industry lingo that confuses the elder. They require the elder to make pressured, fast decisions." Oftentimes, it takes an elder a little longer to comprehend what is being said, process the information and decide whether the offer sounds reasonable. Fast-talking thieves take advantage of this weakness. Ernster says elders and their caregivers should look for these red flags: Unsolicited offer to sell The person who contacts you calls themselves a real estate agent or a broker in the real estate industry. They claim they already have a pre-existing buyer set up. The buyer is interested in buying the home right away. The "agent" has a contract. All the elder needs to do is sign the contract. Out-of-town purchaser A real estate agent contacts the elder and says they have an out-of-town purchaser who wants to get a contract signed before they leave. If elders fall for this, they have no way of tracing that person; no way of knowing if they actually exist. This scam usually involved a spur-of-moment decision. He or she may say something like, "My out-of-town buyer is getting on plane in 30 minutes. If I don't tell them before they leave, the deal is off." Ambiguity An "agent" who doesn't answer questions directly may be a scammer. Being vague about the buyer, what real estate company they represent, or why the buyer doesn't want to look at the inside of home are all red flags and means the deal is very likely a scam. Pressured decision making The "agent" has a valid-looking contract in hand – all it requires is the elder's signature, right away. The reason for an immediate decision is typically tied to the other red flag – the out-of-town buyer is ready to leave. To protect the elderly from real estate fraud, Ernster recommends two strategies: Put assets in a trust The best way to prevent elders from any type of scam is to ask them to put their assets in a trust, Ernster says. That way, the elders are no longer personal owners of that asset. As an example, an 85-year-old might sign a contract as an individual to sell his home under duress. However, if the property is in trust, the trustee must be the party to sign the contract for sale in order for it to be valid and binding. Keep open dialogue If a caregiver or family member has regular, open communication with the elder, frauds can be prevented. Ask your elder to never sign anything or give any personal information, such as a social security number or credit card numbers, without calling a family member first. "I see cases where the elder did not tell kids because they were embarrassed," Ernster says. "This could have been prevented if the elder knew to call a trusted advisor

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TOP 10 ISSUES EFFECTING REAL ESTATE

1. Interest Rates & The Economy For years the market has anticipated rising interest rates. With the Federal Reserve now nudging rates upward, flattening of the yield curve is underway. Historically, this has been a powerful signal of market expectations of an economic down cycle. The Tax Cut and Jobs Act passed into law in December, 2017 enacted fiscal stimulus by cutting individual and corporate tax rates, and pumping money into the economy via the Omnibus Spending Bill passed in March, 2018. That bill is projected to increase spending by $1.3 trillion but the consequence is a large required increase in Federal borrowing to fund a growing deficit. Some see the effects as a “crowding out” of private borrowers from the debt markets, and such borrowers may face higher interest rates; an economic slowdown could result. For real estate, the issues that must be faced include: Is it time for investors to focus on playing defense at the end of this long cycle? Will it become more difficult or more expensive for commercial real estate participants to finance deals, and will this further slow transaction volume which has already dropped 13% since 2015? Will residential mortgage rates rise in tandem with the increase in Fed Funds? As consumer rates pegged to Treasuries increase, will this slow retail purchases, placing additional stress on the already beleaguered retail sector? Cap rates have remained decidedly flat, despite the fact that risk-free benchmarks like the 10-year Treasury rate have broken the 3% mark. When will cap rates begin rising, and what will that mean for asset valuation? Will that mean less financing availability for tertiary markets, as investors pull back into standard gateway markets perceived to provide more liquidity in case of the need to exit? Back to Top 2. Politics & Political Uncertainty The most pertinent near-term issues about U.S. politics driving real estate right now can be divided into two topics: Policy changes with indirect effects on real estate: The Tax Cuts and Jobs Act – whether it benefits corporations more than individuals and whether or not it will result in a boost in GDP growth in 2018, but then revert to recent averages closer to 2%. Corporate benefits appear to be resulting in increased investment and business spending, not just stock buybacks. Trade wars with China, Canada, Mexico, and the European Union, and geopolitical fears about how the North Korea and Iran situations are being managed. Policy changes with direct effects on real estate: S.2155, recently signed into law, likely has the most effect on real estate. Broadly speaking, the bill frees smaller lenders from the toughest requirements of the Dodd-Frank Act, such as the Volcker Rule. It also provides banks with less than $250 billion in assets a pathway to shed the ‘too-big-to-fail’ stigma as well as certain enhanced prudential standards. The bill increased the asset threshold for automatic designations of banks to $100 billion – subject to a discretionary review by the regulators. In effect, this gives the Fed the ability to apply the stricter standard on a case-by-case basis to a bank with $100 billion to $250 billion in assets to promote its safety or mitigate risks to the financial system. HVCRE: This provision would exempt income-producing property, allow banks to continue to use the 15% borrower contributed capital exemption, allow borrower distributions if the minimum-required capital is maintained, allow current appraised value of real property to be counted in equity contributions, and grandfather loans closed prior to January 1, 2015. The legislation does leave regulators leeway about applying these rules, including the risk weight that should be applied to higher-risk construction lending. HMDA: This provision reduces the number of data fields collected by insured depository institutions (but not non-depository institutions) which have originated, in each of the two preceding calendar years, fewer than 500 closed-end mortgage loans and fewer than 500 open-end lines of credit. Overall, S.2155 is broadly viewed as a modest tweak of existing regulation – more targeted toward community banks than larger regional and systemically important institutions. 3. Housing Affordability The crisis of affordability squeezes from both sides of the supply/demand equation. The U.S. has had general underproduction of housing for almost two decades, even accounting for the boom that accompanied the subprime housing bubble. However, since 1999, the net underproduction of housing has been nearly 2 million units. But there has also been a demand side weakness. Income stagnation for all but the highest income households has hampered access to affordable homes and rental units. A 2017 study by the Hamilton Project at the Brookings Institution calculates that since 1979, real wages for the top income quintile have risen more than 24%, while the bottom quintile has seen a decline in real wages. The next lowest quintile, the lower-middle class, has had less than a 1% gain in real wages over more than 35 years, and the middle quintile (the heart of the middle class) has gained less than 3.5% over that span. Within this context, there is also pressure growing in cities, and now in select suburbs, as gentrification by Millennials and others directs demand toward neighborhoods and older housing stock that has been serving as the de facto affordable housing in older but growing metropolitan areas. As this issue plays out in the next year or two, key questions in order to find solutions are “Who pays?” and “How?” 4. Generational/Demographic Change One could argue that historically real estate markets have primarily been driven by key demographic groups, 25 – 34, 35 – 54, etc. But real estate now is seeing and reacting to the influence of FOUR groups: the Millennial generation, aging baby boomers, Gen X (those born between the mid-1960s and the early-1980s, which exhibit characteristics of the two large groups on either side of the age spectrum), and Gen Z (born between 1995 and 2010). The direct real estate impact is already being seen in the changes in work processes, space utilization, and where companies choose to locate. The housing market must adjust to changing demands as these groups age. This will impact student housing, single family, and multifamily housing markets. There are similarities between the wants and needs of the generations, but ultimately the differences in timing (Millennials forming households later) and differences in desires (move to walkability) will offer risks and opportunities. 5. E-commerce & Logistics The U.S. Department of Commerce estimates there were $123.7 billion in retail sales through online channels in the first quarter of 2018. That represents 9.5% of total retail sales, up from less than 1% in 1999, when the Commerce Department began tracking the data. The growth in online sales has also outstripped the growth in total retail sales during that entire – almost twenty year-period. For example, in the first quarter of 2018, online sales grew by 16.4%, while total retail sales only grew by 4.5%. Adjusting total retail sales, and deducting numbers from automobile and gasoline sales (which typically are not sold through online channels), e-commerce or online sales as a proportion of total retail sales rises to near 30%. Media articles have largely focused on “the death of the U.S. mall” and coverage of store closures. But as some businesses close, others open. As Toys “R” Us closed stores, Ulta, The Gap, Target, and others continue to open stores. Employment in restaurants and other service-related retail establishments has consistently been positive. Amazon is known for its dominance of online channels – but when Amazon buys a brick and mortar chain like Whole Foods, it indicates it is not about “online versus brick and mortar” – but rather an ongoing quest for firms to dominate every available business channel. Retail real estate is directly impacted by these evolving channels, with discount retailers and high-end luxury stores surviving the onslaught best. And e-commerce has been a major boon for warehouse/distribution properties, in response to the need for storage space for that “last mile,” ensuring the fulfillment of one- or two-day delivery promises. Longer-Term Issues 1. Infrastructure Infrastructure tops the 2018-2019 longer-term impacts list (and has been included on several past year lists) as there has been little serious effort to address America’s needs despite political efforts to do so. Long-term underinvestment has elevated the level of risk – both in the short- and long-term – of economic drag due to inattention to physical infrastructure (roads, bridges, dams, levees, transit – all of which are rated “D” or lower by the American Society of Civil Engineers) and human capital infrastructure (education, health) directly affecting economic productivity. Real estate – both existing properties and needed new development – depends upon reliable, well-maintained infrastructure. Consider housing without access to utilities, roads, bridges; offices with poor transit routes; warehousing and shipping of goods with poor-condition roads; hotel properties if guests have difficulty getting there over poor roads, inadequate airports, risky bridges, as examples. 2. Disruptive Technology The real estate industry, like the rest of the world, is poised to adopt new technologies – blockchain, artificial intelligence, autonomous vehicles, cryptocurrencies, transaction platforms that disintermediate human agents – all of which will qualify as “this changes everything” interventions in the real estate industry or real estate markets. E-commerce has drastically changed the retail property sector and has linked online sales to stores, with online retailers buying store groups or opening new store models (Amazon Go stores). Ride-sharing companies such as Uber and Lyft are altering transportation, and likely will alter the need for garages in future housing and multi-family development. Data has been, in general, commoditized, from transaction transparency to enhanced demographic targeting to nearly unlimited interconnectivity to sophisticated cybersecurity and privacy controls. Homes, offices, warehouses, hotels, multi-family properties, and every facet of real estate – from business and property management to architectural design – is enhanced by adopting ever-improving technology. Real estate practitioners, owners and investors can embrace new technological tools, but ultimately must carefully choose which is most appropriate for the business, property, service, or problem/solution – not be pressured to rush toward “technology for technology’s sake.” 3. Natural Disasters & Climate Change The impact of climate change and natural disasters on real estate is perceived to be increasing over time. Insurance analysts at Munich Re, a major reinsurer, forecast that rising sea levels and increasing storm frequency could raise average annual losses by 170% in the coming decades. Since 2006, a significant share of overall loss has come as a result of climatological events such as extreme temperature, drought, and forest fire. During 2017, Seattle set a record of 55 consecutive days without rainfall. During that time, and afterwards, haze from wildfires in the Cascades and as far away as British Columbia degraded air quality in the Puget Sound region. While the percentage of total U.S. area under drought conditions has fallen from 38% to 26% as of late August, 2017, the fraction under the most severe category of drought has risen. Communities are responding with initiatives that are intended to mitigate the effects of disasters, such as Miami/Dade County, which has embarked on efforts to limit the impact of rising seas on its water and sewer systems, while seeking more compact developments limiting urban sprawl and tackling automobile dependence. Municipalities and real estate developers must navigate a myriad of state and local energy and sustainability regulations; there are no overarching Federal policies. This continues to make it difficult for companies to work with state and local officials in multiple locations regarding corporate relocation, or to expand operations while satisfying green building and operations demands. Companies with multiple locations (or brands with multiple outlets, branches, or restaurants, etc.) may even avoid some locales to avoid the maze of regulations. 4. Immigration The RAISE Act (Reforming American Immigration for Strong Economy) affects undocumented workers by restricting legal immigration, thus dropping the number of green cards from the present 1.1 million annual number to 500,000. The arguments in favor of the bill emphasize the putative impact of low-cost immigrant labor on wages for lower-skilled U.S.-born workers. The bill seeks to recast immigration policy to apply a “merit-based” points system favoring highly educated, English-speaking, and often already affluent candidates. Alex Nowrasteh, a senior immigration policy analyst at the Cato Institute’s Center for Global Liberty and Prosperity, has published an analysis which disproves such a system results in a positive wage effect, noting that the current system is actually quite effective in matching immigrant skills to U.S. economic needs. The National Immigration Law Center stated that the RAISE bill “inaccurately suggests less legal immigration means more jobs for American workers.” Importantly, the technology industry – which has long coveted larger immigration volumes from the STEM (science, technology, engineering, and mathematics) skill set – maintains that RAISE “would severely harm the economy and actually depress wages for Americans.” There are economic impacts on real estate, which start with the fundamental growth dilemma facing the U.S. for the coming decade: the labor supply shortage driven by age demographics. The policies of the Immigration and Naturalization Act of 1965 – which the RAISE bill explicitly seeks to undo – enabled the United States to supplement demographic “natural increase” (the surplus of births over deaths) to a degree unmatched by our major global competitors, where immigration exclusions were more severe. Immigration was therefore able to bolster the U.S. agriculture sector, as an example. Decreasing immigration could also hamper one of industrial real estate’s principal sources of demand – ecommerce. Amazon’s August 2, 2017 job fairs around the nation sought to hire 50,000 employees for picking, packing, and shipping jobs at its fulfillment centers. 5. Energy & Water Municipalities are increasingly enacting policies that require real estate owners to invest in storm water management systems and devices, and also create new green space. The impact for real estate is the ability to create value, such as through increased development yields, providing tangible amenities for residents and tenants, reduced operating costs, and improved preparedness for flooding and drought. “Smart” buildings are becoming more common because of new technology, which impacts building operations, and provides both efficiencies and connectivity which is increasingly being sought by tenants. The challenge is in ensuring cybersecurity, to avoid service impacts and prevent intrusions by hackers. While the majority of buildings do not depend on oil, but rather natural gas, and other energy sources (including solar and wind), it is noteworthy that trends in energy production and prices have taken a turn lately, with oil and gasoline prices increasing as a response to OPEC moves. Gasoline prices rose 3% month-over-month, pushing headline inflation to a 14-month high in April, 2018 at 2.5%. There is a chance that higher energy prices, combined with higher financing costs due to increasing interest rates and mortgage rates, may act as headwinds to the most optimistic growth forecasts for 2018. Recent studies suggest that only 1.2% of the U.S. suffers from disastrous levels of water shortage, but some states (California, for example) are more severely affected by water shortages and drought. While the percentage of total U.S. area under drought conditions has fallen from 38% to 26% over the past year (as of late August 2017), the fraction under the most severe category of drought has risen. In a developed country like the U.S., where 80% of the population live in urban centers or highly urbanized suburbs, the demand for water is likely to remain concentrated, and rise, putting pressure on these centers of real estate to both protect resources, and provide for the population. Other impacts on real estate include increased risk of widespread wildfires, poor growing conditions in some sections of the U.S., water-rationing days, and poor air quality days which all can affect location choice for residents, investors, and companies seeking to mitigate risk and experience better quality of life. Some communities and states could experience significant population loss as homeowners, renters, companies, and corporate employees settle elsewhere. On the Watch List Construction Costs Tax Cuts Urbanization/Suburbanization Societal Leadership Construction Costs Rising construction costs are impacting the timing and overall costs of commercial development, redevelopment and tenant improvements. In addition, rising costs are contributing to higher residential housing prices. To a developer, rising costs make it more difficult to get new projects to “pencil out” economically, especially in an environment where construction lenders are being more conservative. But on the other side of the issue, more subdued levels of new supply have allowed fundamentals to improve despite the slower rates of growth in the current economic cycle. Engineering News-Record’s construction cost index has risen 3% in the past year, with labor costs up 2.9% over the same term. But components such as lumber are up 9.8%, concrete block 4.5%, and asphalt paving 4.4%. The tariffs announced on steel and aluminum are poised to put upward pressure on these building materials. In all likelihood, inflation in construction costs will be sharply higher than the Consumer Price Index itself. If construction costs continue to rise, companies and practitioners may react with changes as to how space is utilized, moves to lower-cost markets, and introduction of technology to reduce costs. Tax Cuts The Tax Cuts and Jobs Act of 2017 has prompted expectations that changes in the deductibility of state and local taxes (SALT) will advantage states with low SALT levels, and disadvantage states with a relatively high SALT burden. Consider, however, these benchmarks: The most recent twelve-month job change data for the 10 highest and 10 lowest tax burden states show that in the past year, the low-burden states (led by Texas, Nevada, and Tennessee) have added 462,100 jobs, for a 2% growth rate (above the U.S. average of 1.6%). But high-tax states (such as California, New York, and Oregon) have generated more jobs (657,600). However, because of their larger economies, there was a slower growth rate (1.3% versus the U.S. 1.6%). It is possible that in coming years, the cumulative result of the recent tax cuts may have the putative effect of accelerating growth overall and thereby widening the gap between low-tax and high-tax locations. Note also the impact on productivity. The ten low-tax states have a total Gross State Product (GSP) of $2.9 trillion (15.5% of GDP), or an average of $124,039 per worker. The high-tax states contribute an aggregate GSP of $7.3 trillion (38.0% of GDP), or $146,478 per worker. Productivity in the high-tax states is 18.1% higher than in the low-tax states. Government incentives which redirect economic activity to low-tax states carries risk of diluting output per worker on a national basis. It is relatively easy to make a simple business case for seeking lower-tax locations, but productivity gains demand investment in physical and human capital – such as infrastructure and education. Low-tax states historically have not committed as much public spending to such investments as high-tax states have done. That is a significant part of the reason that taxes are low in the low-burden states. For real estate, the direction of job movement and of capital flows could be affected, especially if the argument that low costs, especially low taxes, is a primary motivating factor turns out to be persuasive. However, strength in output per worker and the ensuing top line benefit could trump the low-cost argument and point to a reason why the high-rent, high-value cities maintain strong occupancies when compared with many of the Sunbelt markets that are competing on the basis of cost. Urbanization/Suburbanization Recent comments on “the plight of suburbs” or whether or not Millennials will continue to pursue urban living into their late 30s and early 40s present the Urban/Suburban divide as unnecessarily binary. Similarly, when the Tax Cuts and Jobs Act specified restrictions on the ability of homeowners to deduct mortgage interest, as well as state and local taxes, from their tax bill – numerous articles were written ranking “high-tax states” and estimating how much home prices would fall, with speculation about how people would relocate to lower-tax geographies. But these examine only parts of the overall equation. Individuals and institutions with the ability to move decide where to locate based on their preferred package of goods, services, and benefits conveyed. Urban areas offered diversity, entertainment, job opportunities and other such benefits. But in the 1980s, the costs (and negatives) associated with city living – crime, congestion, poor quality schools – prompted a larger proportion of the population to move to the suburbs. That trend began reversing in the mid-1990s as cities became safer, and a larger share of the population began preferring to commute less and enjoy city benefits – even if it meant smaller, more expensive living spaces. This does not mean that suburbs are not evolving. Real estate developers who wish to capitalize on the theory that older Millennials will want larger suburban space with urban-like amenities have begun producing mixed-use developments a stop or an exit away from the nearest urban enclave. High-tax areas do not necessarily lose population: homeowners move into high-tax locations knowing they will be paying relatively higher bills – and higher home prices – because there are benefits such as good schools and a safe community. Local government competition has become formalized and professional, with most cities and suburban areas staffed with economic development officials – often offering tax abatements and other enticements for firms and individuals to locate in their area. For example, Amazon’s quest for their “HQ2” demonstrates an example of location consulting, which is now a standard offering of accounting and consulting firms. As cities and suburbs evolve, what’s valuable in real estate is also changing (mixed-use residential/office/retail, for example) and not so valuable (regional malls). Societal Leadership How can the real estate industry be a leader in providing environments in which people live, work, play and interact safely, securely, sustainably, and productively? The Millennial generation, as a whole, looks beyond the bottom line and shows a broader desire to be involved in more social and environmental improvement. In response, many companies are changing approaches to their real estate footprint and how these companies can facilitate improvement through their business model. It now appears that this generation, and even those in their teens and early 20s, may be unwilling to accept the status quo – something unseen since the 1960s. This type of activism has potential to move beyond the issues of sexual harassment and gun control, to issues such as homelessness and housing affordability. Another issue to consider is whether growing political polarization makes it more difficult to own real estate – and whether differences of political views can influence variables such as tenant mix – and whether property owners must develop and have in place action plans to manage an incident should it occur at a property. Perhaps the greatest shift over the past two years has been in the surge in women to the forefront of issues discussions. As of April 30,2018, 527 female candidates were in races for seats in the U.S. Senate or House of Representatives. An additional 40 women filed to run for governor in various states this year. The #MeToo movement is having impact in politics and in private business. In real estate – especially in the commercial property business and in the previously male stronghold of construction/development – women are rising to senior positions, and are holding a greater proportion of jobs preparing for the top

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HAPPY VETERANS DAY

The United States Congress adopted a resolution on June 4, 1926, requesting that President Calvin Coolidge issue annual proclamations calling for the observance of November 11 with appropriate ceremonies.[2] A Congressional Act (52 Stat. 351; 5 U.S. Code, Sec. 87a) approved May 13, 1938, made November 11 in each year a legal holiday: "a day to be dedicated to the cause of world peace and to be thereafter celebrated and known as 'Armistice Day'."[3] Veterans Day parade in Baltimore, Maryland, 2016 In 1945, World War II veteran Raymond Weeks from Birmingham, Alabama, had the idea to expand Armistice Day to celebrate all veterans, not just those who died in World War I. Weeks led a delegation to Gen. Dwight Eisenhower, who supported the idea of National Veterans Day. Weeks led the first national celebration in 1947 in Alabama and annually until his death in 1985. President Reagan honored Weeks at the White House with the Presidential Citizenship Medal in 1982 as the driving force for the national holiday. Elizabeth Dole, who prepared the briefing for President Reagan, determined Weeks as the "Father of Veterans Day."[4] U.S. Representative Ed Rees from Emporia, Kansas, presented a bill establishing the holiday through Congress. President Dwight D. Eisenhower, also from Kansas, signed the bill into law on May 26, 1954. It had been eight and a half years since Weeks held his first Armistice Day celebration for all veterans.[5] Congress amended the bill on June 1, 1954, replacing "Armistice" with "Veterans," and it has been known as Veterans Day since.[6][7] The National Veterans Award was also created in 1954. Congressman Rees of Kansas received the first National Veterans Award in Birmingham, Alabama, for his support offering legislation to make Veterans Day a federal holiday.[citation needed] Although originally scheduled for celebration on November 11 of every year, starting in 1971 in accordance with the Uniform Monday Holiday Act, Veterans Day was moved to the fourth Monday of October (October 25, 1971; October 23, 1972; October 22, 1973; October 28, 1974; October 27, 1975; October 25, 1976, and October 24, 1977). In 1978, it was moved back to its original celebration on November 11. While the legal holiday remains on November 11, if that date happens to be on a Saturday or Sunday, then organizations that formally observe the holiday will normally be closed on the adjacent Friday or Monday, respectively.[citation needed] Observance Poster for Veterans Day 2018, the 100th anniversary of the end of World War I Because it is a federal holiday, some American workers and many students have Veterans Day off from work or school. When Veterans Day falls on a Saturday then either Saturday or the preceding Friday may be designated as the holiday, whereas if it falls on a Sunday it is typically observed on the following Monday. When it falls on weekend many private companies offer it as a floating holiday where employee can choose some other day. A Society for Human Resource Management poll in 2010 found that 21 percent of employers planned to observe the holiday in 2011.[8] Non-essential federal government offices are closed. No mail is delivered. All federal workers are paid for the holiday; those who are required to work on the holiday sometimes receive holiday pay for that day in addition to their wages. In his Armistice Day address to Congress, Wilson was sensitive to the psychological toll of the lean War years: "Hunger does not breed reform; it breeds madness," he remarked.[9] As Veterans Day and the birthday of the United States Marine Corps (November 10, 1775) are only one day apart, that branch of the Armed Forces customarily observes both occasions as a 96-hour liberty period. Election Day is a regular working day, while Veterans Day, which typically falls the following week, is a federal holiday. The National Commission on Federal Election Reform called for the holidays to be merged, so citizens can have a day off to vote. They state this as a way to honor voting by exercising democratic

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FREQUENTLY ASKED QUESTIONS ABOUT REAL ESTATE CLOSINGS

If you’ve entered into a contract to purchase a home, your transaction won’t be final until closing. Most buyers have many questions about the process, including: What is closing? Closing (also called settlement) is the legal transfer of property ownership. Usually, but not always, possession is transferred at closing. Sometimes the seller may ask to close the sale but retain possession, and pay rent to the buyer until vacating the property at a later date. Who attends closing? Face-to-face closing are common in most states, although a few states do not require them. Your buyer’s representative can provide details for your situation. The participants usually include: - You, the buyer - The seller - The real estate agents representing the buyer(s) and seller(s) - Attorneys for the buyer(s) and seller(s) - The closing agent, the title insurance representative, and the escrow agent. Often one person fulfills all three roles, coordinating and recording the exchange of the documents and money, disbursing funds, and handling various closing details Where is closing held? Closings are usually held at a title company’s office. Their job is to confirm the current legal owner of the property, reveal any mortgages, liens, judgments or unpaid taxes on the property, and identify any restrictions that may affect the sale of the property. Any problems need to be corrected before a buyer can receive "good title." What do I need to bring? Your buyer’s rep can advise you on what you’ll need to bring to closing, but typically buyers must provide: - Payment of closing costs - Proof of insurance - Approval of inspections of the property What happens at closing? You’ll sign many documents. Rely on your buyer’s rep and your attorney to review these documents and answer any questions you may have. Frequently-used documents include: Closing Disclosure statement - details all funds changing hands between the buyer and seller Truth in Lending statement - a final summary of the terms of your loan Mortgage note - a legal obligation to repay the lender according to stated terms Deed of trust - the legal transfer of ownership; gives the lender a claim against your home if you fail to meet the terms of the mortgage note Affidavits - any binding statements by the buyer or seller Riders - any contract amendments that impact your rights Any additional documents required in your state Once all documents are signed and all monies have been paid, possession is transferred and you receive the keys to your new home. Be sure to keep your closing documents in a safe place for future reference. Some of the expenses associated with your home purchase are tax-deductible. FIND A BUYER'S REP Buying a home is a major endeavor and enjoying a successful real estate transaction requires knowledge and experience. Our Accredited Buyer’s Representatives understand your perspective and are committed to helping you achieve your goals. Get started today! FREE HOME BUYER'S TOOLKIT To assist you and other homebuyers, we created a comprehensive home buying guide that walks you through each step in the buying process, with personalized guidelines and worksheets that will help you find a home well-suited to your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

KANSAS VS. MISSOURI FORECLOSURE LAW

Missouri The first thing to understand about mortgages in Missouri is that Missouri uses “deeds of trust” to record property ownership. A deed of trust is a document (filed in the county where the property is located) that secures the title of the property. Missouri is considered a “title theory” state in that title is considered to stay in trust with a trustee until the mortgage loan is paid in full. Missouri law permits foreclosures to happen either through the courts or in a non-judicial manner through a trustee’s sale. Almost all deeds of trust these days have provisions in them (called “power of sale” provisions) that permit the lender to foreclose without filing an action in court, since this way is much faster and less expensive for the lender. Thus, almost all Missouri foreclosures take place by trustee sales, not by court action. What does all this mean for the average person? It means this: foreclosures in Missouri move along much more quickly than a foreclosure in Kansas (which requires it to be done through the courts). Things move fast in Missouri! You need to be alert to what is going on. For residential properties, our experience has been that properties are moved along the foreclosure fast-track once the homeowner has fallen behind a few payments. With commercial properties, we have seen properties moved to foreclosure when the owner has only missed one single payment. There is no “hard and fast” rule here except that commercial properties seem to be moved faster than personal residences. But there still are notice provisions that a lender must comply with. The basic notice requirements are found in the Missouri Revised Statutes Section 443.320. In a city of 50,000 people or more, the foreclosure sale notice must be published at least twenty times and continued to the sale date. Within twenty days of the sale date, the trustee is supposed to send the homeowner a letter by registered or certified mail notifying him or her about the time and date of the sale. The actual mechanics of how sales take place are described in Missouri Revised Statutes Section 443.327. The whole process does not take very long. Missouri does have a “right of redemption” with regard to homesteads, but it is nothing like Kansas’s. It is found in Revised Missouri Statutes Section 443.420. Basically the property owner would have to come up with the entire balance of the loan plus costs within a year after the sale. But to exercise this right, a person has to provide notice in writing within 20 days after the sale date, and has to post a bond for all costs and fees. In practice, the redemption right provision offers no benefit at all for the average homeowner. Kansas The foreclosure process in the state of Kansas is very different from that of Missouri. In Kansas, foreclosures are done judicially (unlike in Missouri). That means that to foreclose in Kansas, an actual civil court case is filed in the county where the property is located, and a copy of the civil action is served on anyone who has an interest in the property. Once a foreclosure action is filed, the homeowner is served with a copy and has the opportunity to file a response; if no response is filed, the lienholder wins by default and can proceed to the next phase of the foreclosure process. If a response is filed, the court will set the matter for further hearings until a final disposition is reached. If a judgment is entered in favor of the lienholder, the next phase is for the lienholder to set the property for an actual foreclosure sale date. Certain notice requirements must be met. The sale must be advertised at least once a week for three consecutive weeks. The last advertisement must be between fourteen and seven days before the sale. Notice of the sale must be sent to the borrower at least five days after the first advertisement. We have found that the foreclosure process in Kansas takes substantially more time than the process in Missouri. This is primarily because foreclosures in Kansas are all done judicially; that is, they have to be done within the court system. This process takes time. Commercial mortgages take substantially less time, since lienholders often write provisions into the commercial security agreements that give them the right to move things along faster. There are redemption rights for homesteads in Kansas. The general time period in which to redeem the property (i.e., buy it back) is 12 months from the date of the foreclosure sale (see K.S.A. 60-2414). However, this period is shortened to 90 days if the homeowner defaults on the mortgage before paying off at least 1/3 of the total loan balance. A court can increase this period to six months if the homeowner loses his or her job during the 90 day period (K.S.A. 60-2414(m)). Also, if the mortgage(s) on the property constitute less than 1/3 of the market value of the property, the redemption period will be 12 months. The homeowner gets to retain possession of the home during the redemption period, unless he or she has sold or conveyed the redemption rights. Redemption rights are not often exercised. The reality is that distressed homeowners normally do not have access to large lump sums of money to redeem the properties within the time periods permitted by statute. But they are still rights that a homeowner has, and they can provide certain big benefits in certain

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE AND SCAMMERS

Scams targeting real estate transactions are on the rise, according to the FBI. Experts say there are many simple ways that consumers and real estate professionals can protect themselves and each other. Cyber crimes (crimes carried out by digital means) have become so common, the FBI has created an Internet Crime Complaint Center (IC3) to address them. According to its website, “From calendar year 2015 to calendar year 2017, there was over an 1,100% rise in the number of BEC/EAC [business email compromise/ email account compromise] victims reporting the real estate transaction angle and an almost 2,200% rise in the reported monetary loss.” The IC3 reports there were 9,645 victims of real estate fraud in 2017 alone. Most commonly, a scammer will hack into a buyer's email and monitor it. When the scammer sees emails between the buyer and their real estate agent, they wait until the transaction is imminent and at the last minute, they send the buyer a fake email made to look like it is coming from the agent asking the buyer to have the money for the purchase wired to a different account. Scammers can also hack into a real estate professional's email, if their security is lax. And there’s a lot more than just your money at stake, said Dale Dabbs, CEO and president of EZShield, a firm that specializes in identity protection. “These transactions involve a lot of money and a lot of personally identifiable information exchanged,” Dabbs said. “And that's worth a lot of money to a scammer. People shouldn’t use email to conduct these transactions because it’s not secure. At the very least they should use password-protected email.” The FBI said business email compromise scams like these are a $12 billion industry, and it’s growing Dabbs, who recently bought a home, said he and his wife double-checked every number throughout the process, personally verified the wire transfer information before the transaction and called to confirm receipt immediately after. He said consumers should do the same. “Consumers should ask all of the people they’re working with how their personal information will be protected,” Dabbs said. “Shred all papers materials after the transaction. Make sure your check is covered by fraud protection services. Send it certified mail.” The FBI’s IC3 website said some consumers were scammed over the phone. They recommend consumers establish a codeword with people they deal with over the phone, to ensure the person on the other end is who they say they are. Dabbs said real estate agents, mortgage professionals and attorneys should all invest in having their clients’ data professionally protected. He said his company and others like it can also help consumers and professionals deal with the after-effects of a breach, like monitoring victims’ credit to ensure scammers don’t open new lines of credit using victims’ stolen data. “You can take the precautions now, but you never let your guard down,” Dabbs said. “Once your personally identifiable information is out there, it’s out there.” Both Dabbs and the FBI say the first thing you should do if you think you’ve been the victim of a scam is contact the bank immediately. There’s a chance it can retrieve the money. The next thing to do is report the incident to the FBI. Many of these scams happen on Friday afternoons—especially the Friday before a long weekend. By the time victims figure out they’ve been scammed, three or four days might have passed and that kind of head start can mean your money is gone for good. Every second counts. Scammers typically immediately wire the stolen money to series of different (often unwitting) accomplices making the trail harder for law enforcement to follow. And if the money leaves the country, it is very hard to get it back. That's why it's important to contact the bank at the first hint of trouble. "By the time you’re contacting the FBI, your chance of getting your money back are almost nil," Dabbs

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE AND MONEY LAUNDERING

If Michael Wolff’s reporting is to be believed, Stephen K. Bannon’s assessment of the most dangerous threat posed by special counsel Robert S. Mueller III’s investigation is not the one you might have assumed. “You realize where this is going,” Bannon reportedly told Wolff. “This is all about money laundering. Mueller chose Weissmann first and he is a money-laundering guy. Their path to f—ing Trump goes right through Paul Manafort, Don Jr and Jared Kushner. … It goes through Deutsche Bank and all the Kushner s—-.” Two quick explanations. Weissmann refers to Andrew Weissmann. He was one of Mueller’s early hires, although not the first, and does have a lot of experience prosecuting financial crimes. Deutsche Bank is a German financial institution that has been an apparent focus of federal prosecutors, although not necessarily by Mueller’s team, because of a loan of more than a quarter-billion dollars issued to Kushner’s firm a month before the 2016 election. Bannon’s argument is that Mueller’s team is focused not on Russian meddling but on unearthing money laundering by Manafort, Donald Trump Jr. and Kushner that can then be used as leverage against Trump. Manafort already faces money-laundering charges from Mueller. Those charges may involve property purchased by Manafort in New York and Virginia through shell companies based in Cyprus. Real estate, it seems, is central to the charge Bannon made, given the involvement of Kushner and Trump Jr. in the industry. In light of that, we contacted Chris Quick, a retired FBI special agent who specialized in financial crimes and now runs a private investigative firm in South Carolina. He walked us through how money laundering works in the real-estate industry and how others may be implicated in that criminal activity. “With any money laundering, you’re trying to make the illegally gotten money look legitimate,” Quick said. “So in the simplest terms, if you have real estate, you’re going to buy a piece of property with the illegal funds, hang on to it — or have rental income from it, so that rental income is legitimate — and eventually when you sell the real estate, you get your proceeds out of it and by all accounts it appears to be a legitimate transaction.” According to U.S. law, any financial transaction of more than $10,000 involving illegal funds counts as money laundering. How do you buy the property in the first place without raising eyebrows? One way is to move the money for those properties into shell companies, Quick said. “What they’re hoping is that an investigator or someone who’s digging around doesn’t investigate or dig around into where that money came from for that” company, he said. Most real estate agents have a limited ability to look into the legitimacy of a corporate entity, which makes it easier for the person hoping to launder the money to get away with it. Even investigators can have a difficult time tracing money when it comes from countries such as Switzerland (where there are strict bank secrecy laws) or the Cayman Islands. Money coming in from a foreign corporate entity, though, also can serve as a red flag to investigators. Another is someone who buys a property and then quickly sells it. Others are how the company is formed — Delaware corporations add a level of opacity, too — or who is listed as being involved in the business. Manafort, Mueller’s team alleges, was involved in laundering money directly. But others who knowingly facilitate money laundering could also be held criminally liable. “If the bank knew or suspected that something was awry or suspicious with the individual or the company” seeking to make a real-estate transaction, Quick said, “they could be held culpable.” That failure by the bank, he explained, could include “looking the other way or not scrutinizing the paperwork” that was offered for the transaction. (It’s worth noting that in January 2017, Deutsche Bank settled with U.S. regulators after having helped Russian investors move $10 billion out of Russia.) The charges faced by a bank involved in a deal to launder money through real estate would be related to conspiracy. Same holds for a real-estate agent who knew that a deal was being made with illegal funds. Someone who knowingly sold a property to someone who planned to use the property to launder those funds could be indicted as a conspirator. That’s the Bannon theory, it seems. Trump Jr. and Kushner could be implicated by Mueller in money laundering either directly or as complicit agents and then leveraged against Trump in some way. This is not necessarily outside the purview of Mueller’s Russia investigation. In July, Trump was asked by Maggie Haberman of the New York Times whether investigations into his personal finances were a “breach” of Mueller’s mandate to investigate Russian meddling in the 2016 election. “I would say yes,” Trump replied. “By the way, I would say, I don’t — I don’t — I mean, it’s possible there’s a condo or something, so, you know, I sell a lot of condo units, and somebody from Russia buys a condo, who knows?” That was a more modest description of his business’s overlap with Russian partners than Trump Jr. had offered in 2008. “In terms of high-end product influx into the U.S., Russians make up a pretty disproportionate cross-section of a lot of our assets, say in Dubai, and certainly with our project in SoHo and anywhere in New York,” he said of the Trump Organization’s real estate ventures. “We see a lot of money pouring in from

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MEDICARE AND REAL ESTATE

June 2015 A person can apply for Medicaid to pay for nursing home care or care in the home when the countable, available resources have been reduced to $2,000 plus an allowance for the community spouse which is called the CSRA or Community Spouse Resource Allowance. The reader needs to understand the fundamental concept that a transfer of any interest in property for less than fair market consideration, if made within the five years prior to applying for Medicaid, will trigger a disqualification period known as a transfer penalty unless the property was the primary residence and it was transferred to one of a limited category of transferees. The result of this disqualification is that Medicaid will not pay for the care regardless of poverty or medical necessity. THE HOUSE AS A COUNTABLE OR EXEMPT RESOURCE UNDER THE MEDICAID PROGRAM As a general rule, all available real property is counted as a resource when applying for Medicaid, to the extent of the individual's ownership. However, generally it is excluded as a resource if it is occupied by the community spouse, a sibling with an equity interest, a disabled family member or a minor child at the time of the Medicaid application. If the house is not occupied by such a person, it is excluded from consideration temporarily, usually for six months. After that, if the individual cannot return home and continues to require Medicaid benefits, the property must be listed for sale. When the home is occupied by non-owner family members other than the spouse, the county practices vary as to whether the property must be listed for sale. When the property is occupied by co-owner family member(s), typically there is no requirement that the property be immediately listed for sale. In the case of the community-based Medicaid programs for people living in their houses,of course, the house may be retained. If the elder is not applying for Medicaid, the family may choose to sell the property or keep it and rent it out. The fact that the property may be exempt under certain circumstances – such as when there is a spouse living in the home – does not mean that the home can be transferred by the elder to someone else without incurring a transfer penalty. MEDICAID TRANSFER PENALTIES Transferring your home may affect your Medicaid benefits. Since possession of the real property creates the risk that it will have to be sold to pay for care, elders may want to transfer that property in order to protect it for their heirs or co-owners. Transfer of the complete interest in real property as a gift within the five years preceding a Medicaid application generally causes a lengthy transfer penalty period, If partial interests are transferred, pro rata values are assigned. In a transfer with a retained life estate, actuarial tables published by Social Security dictate the value of the transfer. The issue is, if the elder transfers the house by gift, and is grievously injured shortly afterwards and needs round-the-clock care or nursing home care, will the elder have enough liquid assets to pay for his care privately through the transfer penalty period until he can apply for Medicaid? Currently, nursing home level care costs between $8,000 and $10,000 per month, whether in a facility or in one's own home. Children who have been given their parents' house are never very pleased to discover that they need to undo that real estate transfer because the parent didn't have enough funds to pay for the nursing home care that was needed sooner than had been expected. SOME TRANSFERS CAUSE NO PENALTIES There are some exceptions to the transfer rules with respect to gifts of the primary residence. The primary residence can be transferred to the following categories of recipients without incurring any transfer penalty at all: the spouse, a child under age 21, a child of any age who is blind or permanently disabled, a sibling who has resided in the home for one year or more and already has had an equity interest in the home, and a care-giver child (not grandchild or other relation) who has resided in the home and provided extensive care-giving for two years or more prior to the move to a nursing home. Transfers of any real property to trusts for the "sole benefit of" the spouse, a disabled individual under age 65, or a disabled child can also qualify as exempt transfers, as long as all of the criteria of the regulations are satisfied. CAREGIVER CHILD Timing can be very important. Transfer of the property to a care-giver child at the time of placement in a nursing home is an exempt transfer; transfer of that property at a time which is unrelated to an application for Medicaid will likely cause a period of disqualification. Thus, if there is a care-giver child living in the home, the elder may be seeking to transfer the house prematurely, and could be incurring a transfer penalty which could be avoided if the transfer doesn't take place until "the last minute." MEDICAID LIENS If the Medicaid recipient still owns property at time of death, the property will be subject to a Medicaid lien following the death of the Medicaid recipient-owner of the property, to the extent of that interest, if there is no surviving spouse and none of the other limited exceptions apply. An outright transfer eliminates the risk of a lien, but a retained interest – although solving other problems – means that there is an asset against which there will be a lien to the extent of the interest held by the Medicaid recipient at the time of his or her death. The lien law applies regardless of whether the property was excludable during the lifetime of the Medicaid recipient. Also, the lien law applies regardless of the fact that the property might have been transferred as an exempt transfer during the Medicaid recipient's

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

COMMERCIAL REAL ESTATE DEVELOPERS IN THE 19TH CENTURY

Commercial Real Estate Developers in the 19th Century Most New York schoolchildren learn that the island of Manhattan was bought by Peter Minuit of the Dutch West India Company from a tribe of Native Americans in 1626. He paid with beads and wampum whose equivalent value today was less than $30. To characterize the deal in later terms, it's probably the first New World evidence that a sale of real estate takes place only when a buyer and seller disagree on the true value of the property being conveyed. Natives undervalued the island, viewing it as a forest from which most game had been hunted out and whose subsurface bedrock made it unsuitable for farming. The Dutch saw it as one of the greatest natural ports on the globe, a find base from which to conquer the New World… but made sure not to show their true evaluation of property value by using the classic tactic of refusing to overpay. One of the first real estate development transactions in American history was crude and unsophisticated - a far cry from the expertise, financial acumen, and vision developers and commercial contractors exhibit today. The Origins of the Commercial Real Estate Developer - the 1800s A typical American real estate developer in the 1800s would not have considered himself to be a developer or a commercial contractor, and many did not own "construction companies." Real estate tycoons like John Jacob Astor III saw themselves as businessmen who used real estate to meet their investment and business goals: they bought land, constructed office buildings and hotels, and developed apartment buildings… all were means to an investment and a business end. In most cases their projects supported their core businesses; they weren't intended to be stand-alone development projects. Today's real estate developer, while more specialized than his counterpart in the 1800s, is a direct descendent of the early developers, commercial contractors, and construction companies who built, as an example, New York City. Unlike in Europe, in the United States the processes of settling the countryside and founding cities often took place simultaneously. At other times towns and cities were founded in areas that were not settled at all, and settlement of the surrounding countryside followed. Some U.S. cities and towns were founded as a strategic act by government to open up or gain control of a particular region. Pittsburgh, at the confluence of the Allegheny and Susquehanna Rivers, is a prime example. In many cases the government worked hand in hand with businessmen and developers to create new cities, and as a result new economic opportunities for citizens in search of a new life. Many more cities and commercial districts were founded as speculative ventures. Land was acquired, subdivided, and sold by speculators and real estate developers as a commercial undertaking. The growth of U.S. business and the massive population explosion created the need and the opportunity for real estate developers. Construction companies and commercial contractors also quickly moved to fill the tremendous demand created by the rapid growth of industrial cities. The growth of U.S. business and massive population explosion created the need and the opportunity for real estate developers. By the end of the 1800s hundreds of thousands of immigrants poured into the country, many arriving in New York. The U.S. rate of natural population increase in the early nineteenth century was also one of the highest in history. The explosive population growth, along with the rapidly increasing economy, fueled the need for developers of factories, warehouses, and housing… and the construction companies to implement those projects. . In 1800 the U.S. population was overwhelmingly located east of the Alleghenies and, in New England, east of the Green Mountains. The nation's few cities, which were really the size of small or medium-sized towns by modern standards, were trading and commercial centers located on the coast. They served to connect the outlying areas of the United States with the rest of the world. New York had been founded at the best natural harbor on the east coast. Boston was likewise founded at the best harbor in its region. Baltimore was founded where the Patapsco River empties into the Chesapeake Bay; Philadelphia was founded near the Schuylkill and Delaware rivers, which flow to the Atlantic. In 1800 the population of the United States was about 5 million and the urbanized population - defined as people living in places with a population of 2,500 or more - was about 5 percent of the total population. New York City had a population of about 60,000 and Philadelphia was second with about 41,000. Baltimore and Boston, the third and fourth largest cities - had populations in the mid 20,000s. By 1900 the population of the nation had increased by a factor of 15 to about 75 million. Its urban population, however, had increased by a factor of 100 to about 30 million. New York City's population had increased more than fifty times to 3.4 million. Philadelphia's population had grown to about 1.3 million. Chicago, which literally did not exist as a settled place in 1800, had a population of about 1.7 million. Just like today, when real estate developers and major commercial contractors fill the demand for construction in rapidly-growing cities like Las Vegas and Phoenix, developers and construction companies rode the population booms throughout the nineteenth century. The Nature of Commercial Real Estate Development in the 1800s Over the century a variety of forces combined to increase the percentage of Americans who lived in cities, to cause many cities to grow at enormous rates, and to develop in a very compact and extraordinarily dense form. One force behind urban growth, beyond that of overall population growth, was the increasing efficiency of agriculture. At the beginning of the nineteenth century about 90 percent of the U.S. labor force worked in agriculture. The average farm family fed both itself and a small fraction of one non-farm family. By 1880 as many people were employed off the land as on the land. A large portion of the population was now available to lead an urban life. To the push provided by increasing efficiency in agriculture was added the pull of growing manufacturing and trade - and as a result the growth in real estate development and construction. The growth of manufacturing provided masses of industrial employment in urban centers. Unlike today's automated factories, the factory of the nineteenth century provided large amounts of employment in machine tending and materials handling that could be done by a relatively uneducated workforce. Industrial employment tended to be concentrated in cities, often in their centers, largely because of the particular properties of nineteenth-century transportation. Overland transportation by horse and wagon was extremely expensive. A team of horses and a man could produce only a few ton/miles per day. The two low-cost modes of transportation at the beginning of the nineteenth century were the oceangoing vessel and the canal boat or riverboat. The first several decades of the century saw a spate of canal building in the United States, generally promoted by local business interests precisely because of the enormous transportation cost advantages that canals provided. (In fact, commercial contracting and construction as we know it today largely didn't exist - most businesspersons served as their own "contractor" and hired labor to add to their warehouse and commercial holdings.) The best known transportation project was the Erie Canal, completed in the 1820s. It was a private venture by a group of New York City businessmen and civic leaders designed to give the city a commercial reach into the Midwest by linking the Hudson River to Lake Erie. It was in its time an enormously successful project, and is one of the reasons New York City rapidly outgrew its two main commercial rivals, Boston and Philadelphia. The coming of railroad technology in the 1830s provided another and superior low-cost mode of transportation, and the canal-building era came to a quick end. Being on a railroad line gave a city a great commercial advantage, and the canal-building business cycle was repeated, this time with rails. Many railroads were built with municipal bonds or with private bonds guaranteed by municipalities. In other cases, private industries financed railroad construction in order to service the transportation needs of their businesses. Acquiring land and rights-of-way for a railroad line required a great deal of negotiation and management skill on the part of the railroad developers, similar to the same skills and expertise needed by today's real estate developers who assemble land for major construction projects like office buildings or industrial complexes. The transportation technology of the nineteenth century gave a site that could be served by water and by rail an enormous cost advantage. That generally meant an urban site since that was where the docks and the rail terminals were. Industrial and commercial real estate development focused heavily on areas convenient to transportation centers in the same way that many factories and industries today locate their facilities near major interstate highways. The principles remain the same, although the modes of transportation continue to change. The perfect industrial location for a firm in the 1800s involved in international trade was a place like lower Manhattan. By the mid nineteenth century, tracks running a few blocks east of the Hudson shoreline linked the area to the Midwest along roughly the same water level route through the Mohawk Valley as did the Erie Canal. Piers on the Hudson side of Manhattan and wrapping around the lower tip of Manhattan to the East River side of the island accommodated ships from all over the world. Goods could move between, say, London and Chicago and make all but a few hundred yards of the trip by low-cost mode. Today the tracks are gone, and the Manhattan waterfront now handles no freight. The most visible remains of this era are the still numerous manufacturing loft buildings in lower Manhattan - developers have re-purposed those buildings for use as residences, artists' studios, and for a wide variety of commercial purposes. In an age before the automobile and the truck, large amounts of commercial activity clustered around the waterfront. The pull of factory employment to the cities was abetted by some of the offshoots of manufacturing. For example, without the great output of factory production the department store could not exist. It was also a source of mass employment at a single point on the map. So too, was the corporate headquarters that came into being because of the existence of the large manufacturing firm. As manufacturing grew, the volume of goods to be transported grew and so, too, did goods handling employment like carting and long-shoring. Developers were quick to construct supporting facilities for factories: office buildings, warehouses, and apartment buildings. An industrialist in the 1800s may have thought of himself a factory owner, but in fact he was the precursor of today's diversified real estate developer: first he built a factory, then office buildings and warehouses to support that factory, and then housing for his workers. By extension a major industrialist of the 1800s became a real estate developer simply in order to maintain his business - specialization in real estate development didn't become widespread until the late 1800s and early 1900s. All these forces pulled large numbers of people into cities. The particular character of nineteenth-century transportation and manufacturing technology also produced great crowding. In Manhattan's Lower East Side, population densities in a few wards (a political district for the election of council-men) reached as high as 500,000 people per square mile, a figure comparable to the present-day population of the entire city of Cleveland. In the nineteenth century the preferred structure for a large manufacturing operation was a multi-story building. The reason was that power for machinery was generally provided by a steam engine and transmitted through the building by a system of shafts, pulleys, and leather belts. Thus power could not be transmitted very far. The structural shape that put the most amount of manufacturing floor space within a practical distance of the power source was the multistory building. Where waterpower ran machinery, the same situation prevailed - it made sense to mass the operation as close to the source of power as possible. Commercial contractors specialized in building multi-story manufacturing facilities, and many real estate developers quickly moved to build warehouse space adjacent to those factories. Throughout most of the nineteenth century most employees traveled to work on foot. That meant that masses of housing needed to be built near to central employment sites. Beginning in the mid nineteenth century horse-drawn trolley systems were built in some cities, but they were not much faster than walking. Two nineteenth-century architectural inventions spurred by the needs of developers for added convenience for their clients also contributed to very high employment densities. These were the invention of steel frame construction and the invention of the elevator. The steel frame made the skyscraper architecturally possible. The elevator made the skyscraper commercially feasible. As office employment grew, these two inventions made it possible to place huge numbers of jobs in a very small land area, conveniently located near factories, housing, and transportation centers. A key point of differentiation for construction companies was the ability to provide elevator services - elevators not only made it easy to move large numbers of people, but they also created a perception advantage for real estate developers who could offer elevator construction and installation as part of their normal suite of services. New Cities Grow . . . But Commercial Real Estate Developers Remain Localized Throughout the nineteenth century new towns and cities appeared in the United States with great frequency. Unlike the pattern of growth in Europe, the town was started first and the countryside around settled afterwards. Many towns started as speculative ventures. For example, in parts of the Midwest entrepreneurs obtained large blocks of land under the terms of the Northwest Ordinance of 1785, (often at less than $1 per acre), laid out towns, subdivided the land, and then sold building lots to private citizens and developers. Shortly before the Civil War the federal government began to make grants of land to railroads. Ultimately, approximately 160 million acres, roughly one quarter of a million square miles of land, was given by the federal government either directly or through the states to railroad companies. That made the railroads landowners on a spectacular scale. From about 1860 on, railroads focused on land development by creating towns along the right of way of the railroad line. The building of the railroad boosted land values and the development of the town provided the railroad with a guaranteed supply of customers. Many railroads formed partnerships with real local real state developers and contractors to mutual advantage - very few developers from eastern cities attempted to operate in the Midwest, allowing small Midwestern developers and construction companies to grow rapidly and expand their own operations. The new cities grew with unprecedented speed. The most extraordinary case is Chicago. The city grew slowly at first, reaching a population of less than 5,000 by 1840. But population jumped to about 109,000 by 1860, approximately half a million in 1880 and almost 1.7 million by 1900. The population explosion created tremendous demand for construction companies, commercial contractors, and real estate developers to meet the demands for office space, housing, and industrial buildings. No city in human history had ever grown from nothing to a population of 1.7 million in 70 years. What made Chicago's growth possible? The rapid population growth of the Mississippi Valley provided an agricultural basis to sustain the economy of the city. Chicago was the biggest link between the agriculture and natural resources of the Midwest and the manufacturing economy of Europe and the eastern United States. In time, the city also became a manufacturing power in its own right. Because the Mississippi Valley had not long been settled, other than by the Native American population, there was no well-developed network of smaller cities with which it had to compete. Steamboat and railroad technology gave the city a huge reach that it could not have gained with earlier transportation technologies. Finally, the expertise gained by Midwestern real estate developers and commercial contractors from developing smaller towns along the railroad lines gave them a basis of skill and background to apply to the construction and development of a major city. Just like in Chicago, the old adage of "location, location, location" applied to the growth and development of most major American cities in the 1800s. Commercial traders established operations where transportation advantages existed. Commercial ventures created population growth as jobs were created, and real estate developers and commercial contractors moved quickly to fill the demand for warehouses, factories, and housing. In most new cities in the 1800s the second largest industry was construction companies - the growth of manufacturing and commerce provided the capital for developers and commercial contractors. While few real estate development "companies" existed in the 1800s, the nature of their business is similar to today: identify a need, partner with governmental and corporate entities, and develop an effective and efficient solution to a manufacturing, warehouse, office space, and even entertainment or recreation need. Today's real estate developer and commercial contractor would feel at home in the 1800s construction environment. The landscape may be different, but the principles are the same: provide outstanding solutions for business and personal needs.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

USA HOMES VALUES 1940-1960

If you want to buy a house this year, you may well be paying around $199,200, the median price for a home in the U.S., according to Zillow. That number might be lower if you if live somewhere like Ohio or Michigan, but if you happen to reside in a large coastal city such as New York or San Francisco, that number will be a lot higher. In fact, it could cost you well over $1 million to purchase a home. Houses weren't always this expensive. In 1940, the median home value in the U.S. was just $2,938. In 1980, it was $47,200, and by 2000, it had risen to $119,600. Even adjusted for inflation, the median home price in 1940 would only have been $30,600 in 2000 dollars, according to data from the U.S. Census. These states have the highest cost of living in the US These states have the highest cost of living in the US Here's how much the median home value in the U.S. has changed between 1940 and 2000: 1940: $2,938 1950: $7,354 1960: $11,900 1970: $17,000 1980: $47,200 1990: $79,100 2000: $119,600 Here are those values again, adjusted for 2000 dollars: 1940: $30,600 1950: $44,600 1960: $58,600 1970: $65,600 1980: $93,400 1990: $101,100 2000: $119,600 It's natural for prices to rise over time. But the issue here is that home values are outpacing inflation, making it nearly impossible for new and young buyers to enter the market. Dramatically higher prices are partly why the typical homebuyer is now 44, whereas in 1981, the typical homebuyer was 25-34. In 2016, home prices rose twice as fast as inflation. And in nearly two-thirds of the country, housing price growth exceeded wage growth. While homes in some towns remained affordable, in places like Manhattan and San Francisco buyers would need to fork over between 95 and 120 percent of their average paycheck to afford a mortgage payment. However, if you can swing it, many experts still agree that buying a house is a good investment. Self-made millionaire David Bach says that not prioritizing homeownership is "the single biggest mistake millennials are making." Buying a home is "an escalator to wealth," he tells CNBC. In his New York Times bestselling-book "The Automatic Millionaire," Bach writes, "As a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end wind up just where you started — owning nothing. Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning your own home free and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EVERYTHING YOU NEED TO KNOW ABOUT FSBO

EVERYTHING YOU NEED TO KNOW ABOUT FSBO The 2016 Profile of Home Buyers and Sellers by the National Association of Realtors® (NAR) found that for sale by owner (FSBO) sales are at an all-time low, at only eight percent, versus the all-time high set back in 1981 at 21 percent. Considering it’s easier and less expensive to market a home today versus the pre-web era, how is it possible that FSBO sales have been declining since the advent of the internet? This runs contrary to trends experienced in other vertical markets, such as investing, travel and tax preparation, which have all experienced significant do-it-yourself growth bolstered by web services. How is it possible the real estate market has defied such trends? A deeper look at the data in NAR’s report reveals that while there has been a decline in true FSBO, self-directed real estate has actually increased over the past 15 years — it’s just a matter of semantics that need to be analyzed to see this trend. If a home seller uses any realtor service, even something as minimal as just having an agent upload their listing to the MLS to advertise their home sale, NAR actually includes them in a comprehensive pool of sellers (89 percent) engaged in “agent-assisted” sales. This oversimplification of the “agent-assisted” category blurs the lines and doesn’t accurately represent the volume of sellers moving away from traditional real estate brokerages and their higher commission rates. Another recent survey (conducted by Redfin in August 2016) tells a different story. It found that 25 percent of people who sold a home in the past year did so without the help of a full-service agent, with 15 percent of sellers using a limited service agent and about 10 percent listing without an agent’s help, slightly higher than NAR’s findings of eight percent. Those who would have formerly been inclined to conduct a FSBO transaction have traded up to the better option available today and are paying a nominal fee to advertise their properties on the MLS. So, if you sum up the percentage of FSBO and quasi-FSBO (aka “limited service”), the self-directed segment has actually increased almost 20 percent since the ’80s. This makes sense when you consider the growth of more self-directed behavior in other industries due to the efficiency and options that online services offer. Due to important antitrust legislation surrounding NAR and the MLS, which has brought about the rise of web-based real estate service models, self-directed sellers have more options today than they did in the early ’80s. During the mid-2000s, the Department of Justice ruled that NAR must make the MLS and all of its data accessible to any brokerage service and its customers. Subsequently, self-directed consumers inclined to FSBO-type behavior started flocking to alternative internet-based “minimal” and “limited” service brokerage models and their more attractive selling options. These sellers still self-manage their sale and consider themselves conducting a FSBO-type transaction. Future sellers should carefully consider the experience of the growing share of sellers today using self-directed methods. There is major opportunity for today’s savvy seller to retain much of their profit through tech-enabled innovation in the real estate industry, and it’s important to understand the evolution of FSBO and what has changed. Here are a few considerations for home sellers looking to take control of their home sale. Analyzing savings: The bulk of savings for FSBO-oriented sellers will come from savings on seller’s agent commissions. According to the U.S. Census Bureau, the average home in 2015 was valued at over $350,000. Sellers choosing to handle most of the process on their own — and therefore paying just a buyer’s agent fee to get their home listed on the MLS — have the potential to save up to 2.5 to three percent on commissions. Based on the above value this would amount to $8,750 to $10,500, usually less a transaction fee. Some online brokerages offer a full-service package in which the seller works with a professional agent but pays a lower seller’s agent commission than the traditional model. In that case, the seller will net less overall savings, but this option might be worth it for first-time sellers or those too time-constrained to manage the process on their own. Determining the list price: There are a lot of variables that come into play when determining the list price of a home including local inventory, interest rates, average market price for comparable homes, appraisal value and the sellers’ personal and financial objectives. Many online real estate services will offer valuation tools and allow sellers to research comps to determine the right asking price. Considering sweat equity: Managing a home sale requires a time commitment. Depending on what parts of the process sellers want to take on, they should expect to spend time on the front end determining the list price, preparing the home for showing and hosting open houses and on the back end negotiating the sale and seeing the financial transaction through to completion. Many online real estate services offer solutions to assist with some or all of these steps.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SIMPLE WAYS TO START REAL ESTATE INVESTING

Buying real estate is about more than just finding a place to call home. Investing in real estate has become increasingly popular over the last 50 years and has become a common investment vehicle. Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds. In this article, we'll go beyond buying a home and introduce you to real estate as an investment. (For more, see our Real Estate Investing Guide.) Basic Rental Properties This is an investment as old as the practice of land ownership. A person will buy a property and rent it out to a tenant. The owner, the landlord, is responsible for paying the mortgage, taxes and costs of maintaining the property. Ideally, the landlord charges enough rent to cover all of the aforementioned costs. A landlord may also charge more in order to produce a monthly profit, but the most common strategy is to be patient and only charge enough rent to cover expenses until the mortgage has been paid, at which time the majority of the rent becomes profit. Furthermore, the property may also have appreciated in value over the course of the mortgage, leaving the landlord with a more valuable asset. According to the U.S. Census Bureau, real estate has consistently increased in value from 1940 to 2006, then proceeded to dip and rebound from 2008 to 2010 and has been increasing overall. There are, of course, blemishes on the face of what seems like an ideal investment. You can end up with a bad tenant who damages the property or, worse still, end up having no tenant at all. This leaves you with a negative monthly cash flow, meaning that you might have to scramble to cover your mortgage payments. There is also the matter of finding the right property. You will want to pick an area where vacancy rates are low and choose a place that people will want to rent. Perhaps the biggest difference between a rental property and other investments is the amount of time and work you have to devote to maintaining your investment. When you buy a stock, it simply sits in your brokerage account and, hopefully, increases in value. If you invest in a rental property, there are many responsibilities that come along with being a landlord. When the furnace stops working in the middle of the night, it's you who gets the phone call. If you don't mind handyman work, this may not bother you; otherwise, a professional property manager would be glad to take the problem off your hands, for a price, of course. Real Estate Investment Groups Real estate investment groups are sort of like small mutual funds for rental properties. If you want to own a rental property, but don't want the hassle of being a landlord, a real estate investment group may be the solution for you. A company will buy or build a set of apartment blocks or condos and then allow investors to buy them through the company, thus joining the group. A single investor can own one or multiple units of self-contained living space, but the company operating the investment group collectively manages all the units, taking care of maintenance, advertising vacant units and interviewing tenants. In exchange for this management, the company takes a percentage of the monthly rent. There are several versions of investment groups, but in the standard version, the lease is in the investor's name and all of the units pool a portion of the rent to guard against occasional vacancies, meaning that you will receive enough to pay the mortgage even if your unit is empty. The quality of an investment group depends entirely on the company offering it. In theory, it is a safe way to get into real estate investment, but groups are vulnerable to the same fees that haunt the mutual fund industry. Once again, research is the key. Real Estate Trading This is the wild side of real estate investment. Like the day traders who are leagues away from a buy-and-hold investor, the real estate traders are an entirely different breed from the buy-and-rent landlords. Real estate traders buy properties with the intention of holding them for a short period of time, often no more than three to four months, whereupon they hope to sell them for a profit. This technique is also called flipping properties and is based on buying properties that are either significantly undervalued or are in a very hot market. Pure property flippers will not put any money into a house for improvements; the investment has to have the intrinsic value to turn a profit without alteration or they won't consider it. Flipping in this manner is a short-term cash investment. If a property flipper gets caught in a situation where he or she can't unload a property, it can be devastating because these investors generally don't keep enough ready cash to pay the mortgage on a property for the long term. This can lead to continued losses for a real estate trader who is unable to offload the property in a bad market. A second class of property flipper also exists. These investors make their money by buying reasonably priced properties and adding value by renovating them. This can be a longer-term investment depending on the extent of the improvements. The limiting feature of this investment is that it is time intensive and often only allows investors to take on one property at a time. REITs Real estate has been arou nd since our cave-dwelling ancestors started chasing strangers out of their space, so it's not surprising that Wall Street has found a way to turn real estate into a publicly-traded instrument. A real estate investment trust (REIT) is created when a corporation (or trust) uses investors' money to purchase and operate income properties. REITs are bought and sold on the major exchanges, just like any other stock. A corporation must pay out 90% of its taxable profits in the form of dividends, to keep its status as a REIT. By doing this, REITs avoid paying corporate income tax, whereas a regular company would be taxed its profits and then have to decide whether or not to distribute its after-tax profits as dividends. Much like regular dividend-paying stocks, REITs are a solid investment for stock market investors that want regular income. In comparison to the aforementioned types of real estate investment, REITs allow investors into non-residential investments such as malls or office buildings and are highly liquid. In other words, you won't need a realtor to help you cash out your investment. Leverage With the exception of REITs, investing in real estate gives an investor one tool that is not available to stock market investors: leverage. If you want to buy a stock, you have to pay the full value of the stock at the time you place the buy order. Even if you are buying on margin, the amount you can borrow is still much less than with real estate. Most "conventional" mortgages require 25% down, however, depending on where you live, there are many types of mortgages that require as little as 5%. This means that you can control the whole property and the equity it holds by only paying a fraction of the total value. Of course, your mortgage will eventually pay the total value of the house at the time you purchased it, but you control it the minute the papers are signed. This is what emboldens real estate flippers and landlords alike. They can take out a second mortgage on their homes and put down payments on two or three other properties. Whether they rent these out so that tenants pay the mortgage or they wait for an opportunity to sell for a profit, they control these assets, despite having only paid for a small part of the total value. The Bottom Line We have looked at several types of real estate investment. However, we have only scratched the surface. Within these examples there are countless variations of real estate investments. As with any investment, there is much potential with real estate, but this does not mean that it is an assured gain. Make careful choices and weigh out the costs and benefits of your actions before diving

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

5 REASONS TO OWN REAL ESTATE

Real estate is a great investment for many reasons. You can enjoy an excellent rate of returns, amazing tax advantages and leverage real estate to build your wealth. Here are the top five reasons why real estate is a great investment. Real estate provides better returns than the stock market without as much volatility. Historically in real estate, your risk of loss is minimized by the length of time you hold on to your property. When the market improves, so does the value of your home, and as a result, you build equity. The risk never changes in the stock market and there are numerous factors beyond your control that can negatively impact your investment. Real estate gives you more control of your investment because your property is a tangible asset that you can leverage to capitalize on numerous revenue streams, while enjoying capital appreciation. Real estate has a high tangible asset value. There will always be value in your land, and value in your home. Other investments can leave you with little to no tangible asset value such as a stock which can dip to zero, or a new car which decreases in value over time. Home owners insurance will protect your investment in real estate, so be sure to get the best policy available so your asset is protected in the worst-case scenario. Real estate values will always increase over time. History continues to prove that the longer you hold onto your real estate, the more money you will make. The housing market has always recovered from past bubbles that caused home appreciation to slip, and for those who held on to their investments during those uncertain times, prices have returned to normal, and appreciation is back on track. Now, real estate investors in the top performing markets are enjoying a windfall. In fact, this past year, every state in the nation had a positive appreciation, and some of my clients in the Los Angeles market have made millions of dollars in less than a year from flipping. An investment in real estate can also diversify your portfolio. If you've ever spoken to a financial planner about investing, then you are very aware of the importance of diversification. When you diversify your portfolio, you spread out the risk. Real estate will always serve as a safe tangible asset to mitigate the risk in your portfolio. Many have amassed wealth by solely investing in real estate. Last but not least, real estate investing comes with numerous tax benefits. You can get tax deductions on mortgage interest, cash flow from investment properties, operating expenses and costs, property taxes, insurance and depreciation (even if the property gains value) and other benefits. The end of the year is a very busy time for real estate because people want to take advantage of the numerous tax benefits before the end of the year! An investment in real estate is not only a safe financial investment, it is also an investment that can provide years of fun, happiness and priceless memories that will last a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE IMPORTANCE OF WINDOWS

No house can be complete without any windows. Windows facilitate the entry of natural light indoors. They enable the occupants of a house to enjoy the views of the neighbourhood or locality. In addition, they serve to keep the house cross-ventilated. As such, houses with ample windows will seldom look gloomy or feel stuffy. On reading this, you might feel that windows are nothing more than traditional requirements that each house must have. But, this is not true. Increasingly, homeowners are realising the immense value of their windows. In particular, they are becoming aware of how their windows exert a significant influence in the overall look of their homes. Contrary to what many people might think, doors and windows play an essential role in houses. They: Offer Convenience: The windows in your kitchens permit the escape of hot air. In bathrooms, they facilitate the escape of steam. In other areas of the house, windows enable you to pass messages to people outside the house, without having to venture outdoors. While simple, these things are important in any house. Provide Efficiency: Made to measure windows can eliminate the occurrence of draughts. Homeowners are increasingly looking for ways to make their homes energy efficient. Windows accomplish this by keeping the cold air out and keeping warm air indoors. In certain situations, overheating could be a problem. To nullify this, builders add security ventilation brackets that facilitate the entry of air indoors, while keeping the window secure. Provide Safety and Security: Jemmying windows that shake or rattle in their frames is easy. By opting for made to measure windows, homeowners can boost the security of their homes. Enhance the Visual Appeal of the House: Windows can easily boost the aesthetic appeal of a house. In their own quiet manner, they can complement the other elements of the house perfectly. Increase the Resale Value of the House: Many homeowners upgrade their properties to make a profit when they sell it. Many products come with long-lasting guarantees that make this possible. By installing high-quality and exquisite windows, you can ensure that your house commands a higher price than others in the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOME PRICES HAVE RECOVERED BUT DEMAND HASN’T

U.S.home prices have rebounded from the 2008 housing market crash, but demand is still low due to changes in living and buying habits of millennials, real estate mogul Sam Zell told CNBC on Wednesday. "It's interesting that all the statistics recently on housing suggest that demand is down but prices aren't down. That doesn't necessarily make sense," the founder and chairman of the property specialist firm Equity Group Investments said on "Squawk Box." "We're dealing with a changed housing market." Homeownership dropped from an all-time high of nearly 70 percent in 2005 to 63 percent in 2016, according to recent data, and the decline has been significant among people younger than 30 compared with other generations. Those numbers, Zell contended, are a reflection of affordability, location and timing. "We're dealing with a housing market that is much less dependent on starter housing than historically has been the case." The change in habits can be attributed to the millennial generation, particularly those in their upper 20s and 30s, who are more likely to delay getting married, having children, and saving money. Zell doesn't think millennials, who are more likely to have kids in their 30s rather their 20s, are a "new breed or new DNA. But he sees the change in habits as new opportunities in the market. "That means that we have a huge group of people with enormous disposable income that we need to address and deal with as customers," he said. "I, eventually, think that they'll buy houses and have children, but I think with a much more connected-to-the-center-of-the-city approach." The billionaire investor also points to other factors, such as savings, as for why demand for homes is low. Statistics show that the savings rate is also down to historic lows, which affects the economy, he said. "If you don't have savings, you don't make down payments," Zell said. "Therefore, the housing market is affected quite

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TINY HOUSES

As a rule, people in New York wish for smaller places to live about as often as people on airplanes wish for smaller seats. I used to dream sometimes that I had found rooms in my apartment that I didn’t know were there, and, as I explored them, I felt a serenity that I did not feel in my waking life. I never had a dream where my apartment was smaller, and I don’t think I would feel very good if I did. When I was a child, I wanted a house so big that to go from one end to the other I’d have to ride a motorcycle. For someone who lives in New York, one of the more enigmatic modern micro-trends is the decision to live in the smallest space possible, in a structure known as a “tiny house.” The occupants of tiny houses tend to be committed, and slightly self-regarding, citizens, who cook on little stoves and have refrigerators like wall safes. They shed years of possessions and keepsakes to get by with two shirts and two pairs of pants and two mugs and two forks, in order to occupy what amounts to a monk’s cell, for the sake of simplicity, frugality, or upright environmental living. They often embody the zeal of religious converts. Tiny houses are built on trailer platforms. Typically, they are between a hundred and a hundred and thirty square feet, roughly the size of a covered wagon. They aren’t toys or playhouses or aesthetic gestures—a copy of Monticello as a sandbox in a field in East Hampton, say—and they aren’t shacks or cottages, either. Shacks don’t have kitchens and bathrooms, and a cottage is larger than a tiny house. There are between several hundred and a thousand tiny houses in the United States. Kent Griswold, who, four years ago, began Tiny House Blog, told me that initially he “really had to scrounge to find material. Now I can’t keep up. People send me stuff constantly. It’s all across the country.” The number is difficult to know, because tiny houses usually violate building codes by being so small, and thus occupying one is often illegal. Their owners tend to keep them secret and move them around. A man who sold a tiny house on terms went to repossess it, and it was gone. People who live in tiny houses, or aspire to, appear to fall into one of three overlapping categories. The first consists of young people who see a tiny house as a means of owning a place while avoiding property taxes and maybe rent, since they can often find places to park their house free. The second group includes older men and women who have either sold or walked away from a house they couldn’t afford. A subset of this group is retired couples whose children are gone, and who want to live more simply. Both of these groups include transients; that is, people for whom a tiny house is temporary. Among these is a woman named Elaine Walker, who recently listed her house on eBay, although she didn’t find a buyer. She had built the tiny house, in New Hampshire, to live in while selling a house. She had planned to build another normal house, then decided instead to move to California. She found a man who would tow the tiny house there for her. Before he delivered it, he took the house to a car wash. The third group is composed of people determined to live environmentally responsible lives––to live “lightly,” as they put it. According to Greg Johnson, the publisher of a tiny-house Web site called ResourcesForLife.com, to inhabit a tiny house “you have to remodel your sense of what success is and how important it is to you to convey to the outside world ‘Hey, I have a big house and big car and I’m successful.’ If you have a piece of inner tranquillity, you don’t have to prove anything to anybody.” A tiny-house builder describes this group as including people who “want to live off the grid. A lot of vegans. The younger people are idealists. They’re big into off-the-map and sharing their experience.” Human beings have always lived in small houses—not to make a statement but because small houses were practical and cheap. “Nomadic people, indigenous people traditionally have small houses,” Witold Rybczynski, the architecture critic, says. “In the Middle Ages, people slept many people to a bed and many beds in a room.” A Pilgrim house was about a hundred and sixty-five square feet. In “Walden,” Thoreau describes one-room houses owned by laborers who kept their front doors open for light. In winter, the places were perpetually cold. In 1987, an architect named Lester Walker published a book of photographs and drawings called “Tiny Houses,” which influenced a number of people who build such houses now. Walker’s book includes the dune shacks in Provincetown; the two-hundred-square-foot houses built in Texas in the late nineteenth century by German farmers to use on the weekends when they came to town; and the hundred-and-forty-square-foot houses that San Francisco built in 1906 for survivors of the earthquake. Walker told me that he was especially drawn to fishermen’s shanties in Vermont and Minnesota. “These guys take a lot of care in their workshops in the summer to decorate the outsides of the shacks,” he said. “On the inside, there are two seats, and they drink beer and eat potato chips, and sleep there. They don’t wash, and they can’t open the window because of the cold, and they have a kerosene stove giving off fumes, and they keep fish in there. But on the outside they’re very ornate.” The rhetoric of modern tiny-house living begins with the assertion that big houses, aside from being wasteful and environmentally noxious, are debtors’ prisons. Their owners work in order to afford them, and when they actually occupy them they’re anxious. Tiny houses are luxurious, because they are easier to take care of and allow their (presumably debt-free) owners to spend more money on pleasures. The owner of a tiny house, while living intimately indoors, has a larger life outside, and a lighter conscience. Banks won’t finance tiny houses––any house smaller than four hundred square feet is difficult to mortgage––and, in addition to being tricky to occupy legally, the houses are excluded from many R.V. parks because they’re too tall. Having corners instead of rounded edges, a tiny house is expensive to tow; it is not a practical substitute for a mobile h Owners of tiny houses often believe that there is a conspiracy among home builders and banks to make houses that are bigger than what people need or can pay for. The Times recently published a piece noting that larger houses have become difficult to sell, because more people want smaller houses, closer to where they work. “We might be at the edge of an epochal, cyclical change,” Rybczynski says, because house builders have run short of money and building has almost stopped. “When we start again, will houses be the same size as before, or will people think that small is better?” Jay Shafer is the brainy misfit behind the tiny-house trend and the builder of the most stately tiny houses. He built his first tiny house in Iowa, in 1999, and lived in it for five years. It was a hundred and ten square feet, with a steep gabled roof and a porch. It looked like a Gothic cottage from a children’s story. Designing the footprint of a tiny house is simple, since it follows the contour of the trailer. The complicated part is preserving space. What makes Shafer’s houses different from others is the classical elements of form and proportion and the graceful compression of his design. More than tiny, his houses feel sleek. Shafer calls himself a “claustrophile.” He is forty-seven, tall and thin, with a high forehead and reddish-brown hair. He has an upright carriage, and he sits with a straight back, like a dancer. His voice is slightly nasal. His hands often seek a settled position around his face as he talks—balled into fists on which he rests his chin, or spread beneath his jaw, so that he appears to be posing but is really just paying attention. He is the species of fierce and stubborn person who conceals his nature behind a mild façade. He makes lists of errands on small pieces of paper, because the small size makes the lists look more manageable. Once, I saw him writing on the wrapper of a drinking straw. Shafer has lived in three tiny houses—the one in Iowa, and two in California—but four years ago, in a yoga class, he met his wife, a veterinarian named Marty. “I didn’t really get it that he lived in a tiny house,” Marty told me. She is small and slim with brown hair, and her manner is intent. “The yoga class had a small changing room, and one day he said, ‘My house is about the size of this room.’ I listened and didn’t really hear. Our first date, I went to pick him up, and there was a regular-sized house, and his house next to it, and I looked at them and was, like, ‘Can’t be.’ ” The Shafers have been married for three years, and after they had a son they moved to a five-hundred-square-foot house, in Graton, California, north of San Francisco. Shafer’s tiny house sits behind a picket fence in his yard, and he uses it as an office, where he draws plans for other tiny houses. The house is eight by twelve (a porch makes it fourteen feet long), with a sheet-metal roof above cedar walls. In the main room, which Shafer calls the great room, there are two chairs, a closet, a desk, bookshelves, and a stainless-steel propane heater built for a boat. A hallway with more shelves leads to a kitchen, a bathroom with a shower, and, above them, a sleeping loft that has a lancet window large enough for Shafer to climb through if the downstairs ever caught fire while he was asleep. Shafer owns a design-and-build company called Tumbleweed Tiny House Company, and he has built sixteen tiny houses. He sold his first house to a filmmaker in New Hampshire nine years ago, for thirty thousand dollars. His second house was built for Greg Johnson, who saw Shafer’s house in Iowa and commissioned one for himself. Shafer sold one tiny house to a couple from Berkeley, who put it on a property they owned in Telluride. In 2009, Shafer built a house in northern California and towed it to the parking lot of a hotel at the end of Atlantic Avenue in Brooklyn, where he gave a workshop on how to build a tiny house. When no one in New York bought the house, he parked it in the driveway of his in-laws’ house, in Connecticut. Eight months later, he displayed it on a Harley-Davidson lot in Ohio, where it was sold. On the second Saturday of each month, Shafer opens his tiny house for a few hours, to attract clients. About twenty people showed up for a recent tour, including Steve Weissman, Shafer’s partner in Tumbleweed, who told everyone, “Jay sleeps over there,” pointing to Shafer’s house, “but he spends all his waking hours here,” pointing at the tiny house. Shafer sat on his porch, welcoming people, then admonishing them not to touch his stuff. “It’s a visual tour, not a tactile one,” he said. He asked them to take off their shoes before they entered, which they did with a certain obeisance, as if they were paying homage to a deity. Shafer adopts an affable persona while discussing his houses, but he is an introvert, and the tours are an ordeal for him. In the intervals when no one had a question, he sat on the porch with his head on his forearm. He looked like a child who has been forced to take part in an adult activity. A young couple from Michigan told him that they were moving to Palo Alto and wanted to live in a tiny house to save money. A stout woman whose face was framed with long graying hair that she had braided beneath her chin, like a bell pull, asked, “Can you get a piano in there?” Shafer nodded. “Put the piano in before you finish the house,” he told her. A guy and his son who were dressed like lumberjacks circled the house with a measuring tape and made notes on a clipboard until Shafer told them to knock it off. Now and then, he stepped inside to demonstrate how a plastic pocket door closes off the bathroom. Several people asked to have their photographs taken with Shafer, and he obliged. A lanky young man whose head was shaved, so that he looked like a standing lamp, said, “I’m surprised there aren’t more military people interested in this. It seems like a good idea for a few years.” Another tall man banged his head on the doorframe, then said he should have known better. “I used to live on a submarine,” he said. A few people got down on their knees and pointed their phones under the trailer platform and took photographs. They stood on Shafer’s lawn in groups of two and three, and, when a light rain began, they opened umbrellas. Tumbleweed Tiny House Company offers plans for seven tiny houses. In the past year, it has sold a thousand plans, but Shafer doesn’t know how many houses have been built from them. The majority of the plans cost less than a hundred dollars, but a few, for the larger of the tiny houses, cost nearly a thousand. Shafer has sold about a hundred of those, and assumes that many of the people who bought them were serious about building. The tiniest house that Tumbleweed Tiny House Company sells is the XS-House, which is sixty-five square feet, and costs sixteen thousand dollars to build yourself, or thirty-nine thousand dollars if Tumbleweed or someone else builds it for you. Tumbleweed’s most expensive house, the Fencl, is a hundred and thirty square feet; it costs twenty-three thousand dollars to build yourself and fifty-four thousand dollars to have built. Conventional houses cost about a hundred dollars a square foot (ones built by national builders can cost as little as fifty dollars a square foot, according to Rybczynski). Shafer says that his house cost three hundred dollars a square foot, because it is essentially handmade; it is probably the cheapest house in Sonoma County by volume, he says, but the most expensive proportionally. Tumbleweed also sells plans for small houses on foundations, but the bulk of its business involves tiny houses. It builds about one house a month, then tows it to the owners. It makes most of its money from selling plans and from Shafer’s self-published book, “The Small House Book,” which costs about five dollars to print in China and sells for thirty dollars. Over the past year, Tumbleweed has sold ten thousand copies through its Web site. Shafer knows that his occupation is the result of some daffy ideas’ having found a toehold. He is one of those fortunate people whose obsession has led them to a territory they more or less have to themselves. In the pattern of his life, themes and impressions recur prominently, like repeats in wallpaper. To begin with, Shafer is a pragmatic subversive. “I guess you could say I’m very angry, and I’m trying to find creative ways to use it,” he said. He believes that suburban neighborhoods of wide streets and big houses with false gables are cold and unsympathetic, even immoral, and his design philosophies are derived substantially in reaction to his upbringing among such lavish ideals. Shafer was born in Iowa, but he was brought up in Orange County, California. His father was an airline pilot. While other kids played baseball, he and a friend built shrines to Athena out of bricks in the back yard and burned flowers as offerings. When he was fourteen, his parents decided to move back to Iowa, “to protect us from the corruption of California,” he said. In Iowa, “we lived in a four-thousand-square-foot house, which they saw as a trophy house, a prestige thing. My sister and I did all the cleaning. I spent at least a full day a week vacuuming and taking out the trash.” Before long, his parents sold the house and bought one that they hoped to flip. The new house was so small that Shafer didn’t have a bedroom. His parents told him he could sleep on the floor in the den, but he often spent the night in the cab of his father’s pickup. His grandparents, who lived most of the time in Florida, spent four months a year in Iowa occupying an Airstream trailer. Shafer went to the University of Iowa, where he lived briefly in a room with twelve other students, “trying to make this tiny space work.” In 1989, he moved to New York to go to graduate school in art at City College. He expected to become a painter. “I figured the New York experience would be an education of its own,” he said, “and I was pretty much terrified the whole time. My first month, I had a gun pointed at me. A month after that, a guy with a bullet in his head died on the sidewalk in front of our building, and the next month my roommate saved a guy on the subway who’d been stabbed, and he came home covered in blood. I was riding my bike once and a car backfired, and I dove behind a dumpster. Everyone was laughing, but I thought I was being shot at.” He got his degree in 1992, and moved back to Iowa City, where he worked in the grocery department of a natural-foods co-op and taught painting and drawing as an adjunct at the university. At the co-op, he carved delicate archetypal forms into the skins of bananas and put the bananas out for sale. For an art show in Cedar Rapids, he wrote sayings from philosophers in soy ink on crackers like Communion wafers, and stacked them so that they made little towers. In a friend’s garage, he built a small dome out of pine, just large enough for one person to fit into while crouching. It was covered with spiritual sayings and was an attempt to describe a religion for one person. He had meant the dome to be burned “from the moment it was created,” he said, “but I couldn’t find a place to do it, and I got impatient and took it to the dump and watched a tractor run over it. I was moving, and I didn’t want to store it.” As a painter, Shafer began to care less about subject matter and more about form and proportion. Finally, he gave up painting and decided to try to live artfully. He surreptitiously made a copy of his building key, gave up his apartment, and moved into the basement. He slept on a mattress, under a piece of plastic that he hid during daylight. Marty Shafer described this behavior, along with her husband’s habit of sleeping in cars, as his “esoteric sleeping arrangements.” Shafer said, “I thought you should just be able to fall asleep wherever you felt tired.” Shafer eventually bought a 1964 Airstream, which had a lime-green Formica counter and an orange shag rug. “It was made to be renovated,” Shafer said. He did it over in wood, with spare aluminum highlights, then moved it to a trailer park, “and the day two weeks later when a neighboring trailer got a bullet hole in the side was the day I thought I should leave,” he said. He moved it to a friend’s organic hayfield. “I have a severe grass allergy,” he said, “and I would get welts on my legs when I went out in shorts.” In the winter, ice formed on the walls. “That’s how I began to figure out what I needed,” he said. “I definitely needed insulation.” Shafer designs by subtraction. He began drawing imaginary houses, and they grew smaller as he started “to figure out what I could get rid of—mostly square footage, because a lot of space wasn’t used that efficiently,” he said. “If there’s elbow room for the activities you need, it’s good, but anything beyond that is not good.” His galvanizing imperative came when he learned, around 1999, that the houses he was drawing and not showing to anyone would violate building codes, which tend to be adapted from recommendations made by the International Code Council, a domestic trade group. The codes usually specify that a house must have at least one room of a hundred and twenty square feet, and that no habitable room be smaller than seventy square feet. The smallest a house can be and still conform to the codes is about two hundred and sixty-one square feet. Until then, Shafer hadn’t really thought of building a tiny house. Designing houses was a diversion, a pastime. “Once I found out it was illegal to live in a small house, though, I had to do it,” he said. “It couldn’t be a trailer, either. It had to be very houselike.” From the Airstream he had the example of a structure on wheels, and he realized that if he built a house on a trailer bed it wouldn’t be a house; it would be a trailer load and housing codes wouldn’t apply. Michael Janzen, who writes the Tiny House Design Blog, describes this insight as one in which Shafer “thumbed his nose at the rules and took the concept of the trailer house and a stick-built house and mashed them together and made a solution that’s compelling and technically illegal, which appeals to a lot of people.” Shafer’s first house was fourteen feet long and eight feet wide, with a porch in front. A novice carpenter, he built it in a contractor’s back yard. “He’d come out every three days and tell me what I was doing wrong, and I’d tear it apart,” he said. The design was based on sacred and church architecture, which his interest in form and proportion had led him to. “I had the heater right on the central axis,” he said. “You walked in the door and saw it, like an altar. I was also into an open plan, so you could see everything from the entrance—kitchen, bathroom, and living room.” Iowa City law allows someone to have an accessory building that is smaller than a hundred and forty-four square feet, and while the law doesn’t say what the building must be used for, it doesn’t prohibit his sleeping in the place now and then. Shafer bought land with a house already on it, told the city he was living in the house, then rented the house, and bent the law for five years by living in the back yard in his tiny house. Then he decided to move to northern California. Through an ad on the Internet, he sold his tiny house to the filmmaker in New Hampshire. He built another one, which was seven feet by ten feet—small enough to parallel park if he had to live on the street. To protect it on the road, he wrapped it in plastic. Jay King had never heard of Shafer, but he is building a tiny house in a garage in Danbury, Connecticut. Until recently, King had been using the garage to build a sports car called a K-1 Attack from components manufactured in the Czech Republic. King is small and lean, with the focussed manner of the Army sergeant he has been. He had got divorced, and had lost his house in the mortgage crisis. “I was looking for apartments, and I have a dog and a son, and it was such a pain to get an apartment for a dog,” he said. “I saw a little ad for a little house. I’m a carpenter, and I thought, I’m going to do this on my own and be able to move this wherever I want to. After having a five-hundred-thousand-dollar house and being dumped by this economy to where they doubled my payments, that inspired me. I didn’t need all the fancy stuff anymore. Simplicity is what I wanted.” King had been working on the house for six months and was about half done. The shell was complete, but it didn’t have siding yet. The house had a pitched roof, and he had built a bedroom on a track so that it extended out from one side of the house like an alcove, and could be drawn inside the house when he moved. On the front, he planned to build a deck that he could lower like a drawbridge or raise so that it would cover the front door, making the house more or less impenetrable. The house was bolted together in the middle and came apart in five pieces. “It’s a modular type,” he said, pointing out the bolt holding the walls together. “Within twenty minutes, I can take it apart.” King showed me where he planned to put the kitchen, beneath his son’s loft bed, and said that he was going to make the kitchen black. “I’m very much into being different from everybody else,” he said. We stepped over to the living room, where there was a big leather armchair facing a propane fireplace that looked like a small TV. “My goal is to have a 3-D Yankee Stadium wall, an eight-by-twelve mural, which will make the room much bigger-looking,” he said. “A guy gets divorced, and he loses everything, and this is all he needs.” The house had so far cost about three thousand dollars. “You know what this is about?” he asked. “It’s about the passion you feel about what you think you can do,” he said. I asked if he thought it would be difficult to find women to go out with, living in a tiny house. “If you’re going to date me, you’re going to be off the deep end anyway,” he said. Farther up I-95, in New Haven, there is a tiny house that was built by a young woman named Elizabeth Turnbull, a graduate student at Yale who is interested in sustainable architecture. In 2008**,** she took a seminar with Jay Shafer in Manhattan, and then went to a two-week home-design-and-build class at the Yestermorrow Design/Build School, in Vermont. Turnbull, who is tall and long-limbed, with light-brown hair and blue eyes, told me that the course taught her “all the basic problems you would encounter—here’s how to frame a wall, here’s how to frame a window, here’s why diagonal bracing is important.” She looked at layouts of Airstreams and houseboats to learn how to manage small spaces. When she was accepted in the environmental-management program at Yale, she decided that she didn’t want to live in an apartment or a dormitory, and she used the money she would have spent on rent to build a tiny house. Drawing plans, Turnbull said, “I couldn’t picture what it would look like. I just had faith that the drawings would finally become something I liked.” Turnbull’s house is a hundred and forty-four square feet, with a pitched roof and a sleeping loft, a living room and a kitchen—no bathroom. It is parked in the back yard of a house belonging to someone affiliated with Yale, a couple of miles from the campus. In her living room, we drank tea and ate strawberries and pistachios from bowls arranged on a little table like a still-life. I asked what sorts of concerns she had in mind as she designed her house, and she said, “People like us have a few numbers that constrain us. One is eight and a half feet wide. Wider than that, you need a police escort and a wide-load permit. Eighteen and half feet long is the maximum length and ten thousand pounds is the weight limit. Before I was finished, I towed the house to a sand-and-gravel pit where people were loading gravel, and took my place in line and had it weighed. I was just under ten thousand. That’s why my ceiling is made from canvas sails, which were given to me by a woman who makes handbags from them. Wood would have been too heavy. The fourth number that’s sort of a holy number is thirteen feet six inches. You start to kiss bridges if you’re much taller than that. I’m thirteen-two.” Turnbull graduated in May, and isn’t sure what she will do with the house. “It’s such a part of my identity that it’s difficult to think about living elsewhere,” she said. “There’s something very satisfying about using your body to build a house. You’re channelling into something very human. It’s the same sort of ancient pleasure as growing food.” She looked around, then said, a little mournfully, “It feels really big, but when someone else is here it feels very small.” One evening, I was having an early dinner with the Shafers and their infant son, Emerson, in a restaurant not far from their house. Outside, it poured rain and people arrived in the restaurant stamping their feet and leaving little trails of water as they made their way to their seats. There were plates on our table from the salads we’d ordered and glasses for water and wine, and when the waitress arrived with our entrées there was no room for her to set them down. Shafer, who had been leaning over Emerson’s high chair to entertain him, sat suddenly upright and began briskly combining plates and moving glasses, as if solving a puzzle. “I’ll make this work,” he told the waitress earnestly. “This is what I do.”

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SAINT LOUIS REAL ESTATE TRENDS AND FORECAST

Saint Louis Real Estate Investing 2018 – Trends and Forecast As Saint Louis expands and invests in urban renewal projects, the city is becoming more and more of an attraction to home buyers and real estate investors alike. If you are a real estate investor in the Saint Louis area or want to expand to a different real estate market, now is the time to do it. As an real estate investment coach with more than 30 years of experience, Laura Alamery knows the Saint Louis real estate market and its trends. Here, we outline the overarching trends and forecasts of which real estate investors should be aware as they decide to invest in Saint Louis. Home Value One of the most attractive parts of the Saint Louis real estate market is that the median listing price for homes hovers around $145,000, which is significantly below the $212,000 national median home price. Real estate investors can and should capitalize on Saint Louis’s period of profound growth combined with affordable property values. Zillow predicts that the median listing price for homes will rise by about 6 percent in the next year, which makes now a smarter time for real estate investment. Delinquent Mortgages Another notable statistic when it comes to Saint Louis real estate involves the percentage of homes that are delinquent on mortgage. Compared to the 1.6 percent country average, Saint Louis has around 2.2 percent of homes that meet this criteria. This means that real estate investors will have a unique opportunity to capitalize on foreclosure properties. In our “10 Best Ways To Find Distressed Properties for Free” blog, we expand on the opportunity that delinquent status presents for real estate investors. Rental rates For those real estate investors who want to buy and lease a residential property, Saint Louis’s rent index has also risen nicely in the last few years. The average rent listing price in 2018 is $975, whereas average rent prices were around $820 just a few years ago. If you are considering real estate investment in Saint Louis, owning a rental property should have great return-on-investment. To learn more about real estate investment strategies, consider an online webinar or real estate investment course from an expert. This way, you will be equipped with the real estate investment strategies to make you successful from day one. Neighborhoods In terms of neighborhood dynamics, Saint Louis has seen its fair share of gentrification in the last five years. This has revitalized the economic and real estate scene, and has expanded the types of neighborhoods where you might want to invest. Consider Compton Heights, Central West End, and Shaw for neighborhoods with the highest median value. For neighborhoods that are still nice but a bit more affordable, look into Botanical Heights, the Gate District, and Forest Park

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THIS IS WHY INVESTORS SHOULD INVEST IN REAL ESTATE IN KANSAS CITY

Kansas City Real Estate Kansas City is the largest city in the U.S. state of Missouri, famous for its distinct barbeque cuisine and jazz heritage. Also nicknamed the City of Fountains, the Kansas City is now emerging as a growing market for real estate investments. Overall, the city sees a 1% weekly rise in average listing price. Also, the median rent in the Kansas City Real Estate Market is increasing at the rate of 5% per month. The Kansas City housing market is strong and stable, and in many ways the envy of housing pundits on both coasts. Home sales were up about 7 percent and prices were up about 6 percent throughout the region in the previous year. In 2017, a WalletHub survey for real estate market growth in United States listed the “Kansas City Real Estate Market” at number 18 out of 300 of the fastest growing cities in the US. The city has seen an average rise of 7.5% in its real estate Median Sales Price in the year 2017. The average number of days a home is on the market in the Kansas City market about 15 days. Kansas City Real Estate Kansas City Real Estate – Market Trend & Forecast 2018 According to Zillow.com, the median home value in Kansas City is $136,200. Kansas City home values have gone up 10.5% over the past year and Zillow predicts they will rise 3.4% within the next year. The median list price per square foot in Kansas City is $127, which is lower than the Kansas City Metro average of $136. The median price of homes currently listed in Kansas City is $195,000. The median rent price in Kansas City is $995, which is lower than the Kansas City Metro median of $1,150. The percent of delinquent mortgages in Kansas City is 1.4%, which is lower than the national value of 1.6%. Currently, Zillow has 3135 homes for sale and 2690 homes for rent in Kansas City Real Estate Market. The Zillow Home Value Index for April, 2018 was $136,200. Zillow’s prediction of the Zillow Home Value Index for April, 2019 is $140,000, which means a growth rate of 3.4% in 1 year. As per Zillow, the homes in Kansas City metro gained $10.2B in value in 2017. In 2017, more than 1,000 homes have sold in the 66062 ZIP code, making it one of the Kansas City area’s top selling ZIP codes. Kansas City Real Estate Market Forecast 2018 As per Trulia.com, the Trends in Kansas City Real Estate Market show a -3% week-over-week drop in average listing price and a 3% rise in median rent per month. Currently the median rent per month is $1000 and the average listing price is $129,101. Top 10 Reasons To Invest In Kansas City Real Estate Market In 2018 The following are the top 10 reasons to invest in Kansas City Real Estate Market in 2018. Real Estate Market Overview of Kansas City In the metropolitan area, the population is estimated at 2.1 million with the median household income of $57,000. The unemployment rate is 4.4%, while the average home price is $86,000. Median rent is $993, with an estimated $667 monthly cash flow. It’s no wonder that the Kansas City real estate market is a great place to invest. Kansas City is the largest city in Missouri and is the sixth largest in the Midwest. It hosts the Kansas City Chiefs as well as the Kansas City Royals. It’s home to some of the Best Ribs in America. The city has over 200 water fountains, making it only second to Rome, Italy, hence the nickname “City of Fountains.” It is also important to remember that only Paris, France has more Boulevards. Employment Kansas City has seen a continuous rise in employment prospects over the last 2 years, a trend that directly impacts the Kansas City real estate market. From 2017 to 2018, the city registered a remarkable 1.9% in terms of overall employment. This could b further broken down to 3.8% in professional and business services, 3% in terms of government-sponsored employment opportunities and 1.9% in the trading, transport and utilities sectors. Constant Real Estate Friendly Renovation Projects Kansas City has started to do some major revitalization downtown. More than $6 million has been spent giving the downtown area a facelift and new makeover, including, apartments, offices, condominiums. These facelifts have also been done both indoor and outdoor malls, restaurants and places for concerts, plays and other forms of entertainment. Kansas City Real Estate – Trends and Statistics in 2018 Three bedroom homes were listed around $141,000 in January 2017, making it lower than the national average by 25%. RWN Development-Group, LLC members’ neighborhoods were less than $86,000 median price in January 2017. All these serve towards making Kansas City properties attractively affordable and appealing to investors who are looking for gains in cash flow. In the same month, the rent on a three bedroom was $1,224, making it 0.87% of the cost of buying a house listed at $141,000. Tourists & Art Destination Kansas City is a great attraction for tourists, especially art-lovers. Housed by several museums and art destinations, the city is famous for its Jazz Museum as well as the Nelson-Atkins Museum of Art that boast over 40,000 works of art, vintage antiques and contemporary works. The influx of tourists into the city has a direct relationship with the growth of the city’s real estate market. The Growth in Kansas City The national average of growth in cities is 4.45%. In Kansas City, in 2010, it was higher than 4.5%. It’s growing with the national rate and is expected to grow even faster in the next few years. Between the years 2013-2015 the annual growth was 15,000 then raised to 20,000 between 2015-2016. Kansas City is home to some of the biggest companies, such as H&R Block, Sprint, Hallmark and BNSF, to help to fuel the attraction of the Kansas City real estate market. Rich and Stable Neighborhoods The city is surrounded by neighborhoods like River Market District as well as the 18th & Vine District and the Country Club Plaza on its north, east & south sides respectively. These vicinities, in combination with the city’s vibrant real estate market, comprise of all amenities residents and non-residents alike can take advantage of and put their investments in. Some of the best neighborhoods of Kansas City are as follows: The Johnson County of Kansas City: It is high on the list of home buyers as an ideal place to raise a family. It has highly accredited school districts within the county, which include Shawnee Mission, Gardner Edgerton, Spring Hill, Blue Valley, Olathe and De Soto. Most subdivisions see steady property valuation increases year after year. The Prairie Village, Kansas City: It is another good neighborhood with low crime rates, mature trees, plenty of quiet neighborhood parks and accessible community pools. Leawood, Kansas City: It is a low crime rate area and it’s safer than 79 percent of U.S. cities. The residents have a median household income of $133,702, so they are quite well off. The region is home to the biggest Methodist church in the nation – United Methodist Church of the Resurrection. Lenexa, Kansas City: This neighborhood has the median listing price of $394,000. Fifty-four percent report some school education, contrasted with the national average of 22 percent for all cities and towns. Favorable Weather The weather in Kansas City is beautiful, and usually clear and sunny. You can almost always count on the 4th of July to be a great day to BBQ and shoot off fireworks and watch your neighbors shoot theirs, creating a competition. We’ve witnessed the fireworks while being laid over in nearby Independence, Mo. The neighborhood fireworks shows have always been as big as the city’s, only they last half the night. During the shows, everyone in the neighborhood waters the top of their houses for a week straight to avoid catching fire. Where else in America can you find that? Even better, the people are friendly and the weather is inviting. There are nearby lakes for boating, fishing, swimming, and camping. The weather is almost always enjoyable. They get most of their rain in the spring of April and summer month of June. City’s Rich Culture The city is known for its distinct barbeque cuisine and uniquely crafted breweries, which makes it a preferred destination for foodies. The ancient heritage of Jazz music makes it suitable for immigrants who are passionate about music. The city lies on the shores of Missouri & Kansas River with a landscape full of fountains. The overall ambience and accommodating culture is sure to attract more and more residents into the city, which will prove to be a boon for investments in Kansas City Real Estate Market. Cost of Living Another great factor that is seen as a boon to the Kansas City real estate market is the cost of living. The cost of living in Kansas City is reasonable and affordable. With the cost of rent and the price you might pay for a house already discussed, there’s the cost of day to day expenses to consider. A basic lunch around the business district is around $12, unless you go to a fast food restaurant and order a combo meal, then you’re looking at $7. Milk is around $3.50 a gallon, a 2 lt. A bottle of Coca- Cola is $1.82. These prices are about the same as the national average at –1%. Housing is at 8% below. Kansas City is 15% below Oklahoma and 8% below Indiana. In fact, New York City is 129% above compared to Kansas City, while 14% below Miami, Fl and 23% below Chicago. Should You Invest In Kansas City Real Estate: The Verdict In closing, the Kansas City real estate market is expected to see an incredible amount of growth in 2018 with a year over year growth of 6.16% in the median household income. Low median sales prices, which in return, drives a solid rent is another reason to look into the Kansas City housing market. Add to that the weather, the many activities at your disposal and the famous “Kansas City BBQ.” There isn’t much left to desire when making an investment in the real estate market. Take a look around, make some calls and talk to some of the people around Kansas City before you decide. We recommend 8 other hottest US real estate markets for investors looking to build their portfolio of single family rental homes. Following the housing market decline in 2007, single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EVERYTHING YOU NEED TO KNOW ABOUT ROOFING

ROOF SYSTEM COMPONENTS All steep-slope roof systems (i.e., roofs with slopes of 25 percent or more) have five basic components: Roof covering: shingles, tile, slate or metal and underlayment that protect the sheathing from weather. Sheathing: boards or sheet material that are fastened to roof rafters to cover a house or building. Roof structure: rafters and trusses constructed to support the sheathing. Flashing: sheet metal or other material installed into a roof system's various joints and valleys to prevent water seepage. Drainage: a roof system's design features, such as shape, slope and layout that affect its ability to shed water. There are a number of things to consider when selecting a new roof system. Of course, cost and durability head the list, but aesthetics and architectural style are important, too. The right roof system for your home or building is one that balances these five considerations. The following roofing products commonly are used for steep-slope structures. Asphalt shingles possess an overwhelming share of the U.S. steep-slope roofing market and can be reinforced with organic or fiberglass materials. Although asphalt shingles reinforced with organic felts have been around much longer, fiberglass-reinforced products now dominate the market. Organic shingles consist of a cellulose-fiber (i.e., wood) base that is saturated with asphalt and coated with colored mineral granules. Fiberglass shingles consist of a fiberglass mat, top-and-bottom layers of asphalt, and mineral granules. Asphalt shingles' fire resistances, like most other roofing materials, are categorized by Class A, B or C. Class A signifies the most fire-resistant; Classes B and C denote less fire resistance. Generally, most fiberglass shingles have Class A fire ratings, and most organic shingles have Class C ratings. A shingle's reinforcement has little effect on its appearance. Organic and fiberglass products are available in laminated (architectural) grades that offer a textured appearance. Zinc or copper-coated ceramic granules also can be applied to organic or fiberglass products to protect against algae attack, a common problem in warm, humid parts of the United States. Both types of shingles also are available in a variety of colors. Regardless of their reinforcing type and appearance, asphalt shingles' physical characteristics vary significantly. When installing asphalt shingles, NRCA recommends use of shingles that comply with American Society for Testing and Materials (ASTM) standards-ASTM D 225 for organic shingles and ASTM D 3462 for fiberglass shingles. These standards govern the composition and physical properties of asphalt shingles; not all asphalt shingles on the market comply with these standards. If a shingle product complies with one of these standards, it is typically noted in the manufacturer's product literature and on the package wrapper. Wood shingles and shakes are made from cedar, redwood, southern pine and other woods; their natural look is popular in California, the Northwest and parts of the Midwest. Wood shingles are machinesawn; shakes are handmade and rougher looking. A point to consider: Some local building codes limit the use of wood shingles and shakes because of concerns about fire resistance. Many wood shingles and shakes only have Class C fire ratings or no ratings at all. However, Class A fire ratings are available for certain wood shingle products that incorporate a factory-applied, fire-resistant treatment. Tile—clay or concrete—is a durable roofing material. Mission and Spanish-style round-topped tiles are used widely in the Southwest and Florida, and flat styles also are available to create French and English looks. Tile is available in a variety of colors and finishes. Tile is heavy. If you are replacing another type of roof system with tile, you will need to verify that the structure can support the load. Slate is quarried in the United States in Vermont, New York, Pennsylvania and Virginia. It is available in different colors and grades, depending on its origin. Considered virtually indestructible, it is, however, more expensive than other roofing materials. In addition, its application requires special skill and experience. Many old homes, especially in the Northeast, still are protected by this long-lasting roofing material. Metal, primarily thought of as a low-slope roofing material, has been found to be a roofing alternative for home and building owners with steep-slope roofs. There are two types of metal roofing products: panels and shingles. Numerous metal panel shapes and configurations exist. Metal shingles typically are intended to simulate traditional roof coverings, such as wood shakes, shingles and tile. Apart from metal roofing's longevity, metal shingles are relatively lightweight, have a greater resistance to adverse weather and can be aesthetically pleasing. Some have Class A fire ratings. Synthetic roofing products simulate various traditional roof coverings, such as slate and wood shingles and shakes. However, they do not necessarily have the same properties. Before making a buying decision, NRCA recommends that you look at full-size samples of a proposed product, as well as manufacturers' brochures. It also is a good idea to visit a building that is roofed with a particular product. VENTILATION AND INSULATION ARE KEY One of the most critical factors in roof system durability is proper ventilation. Without it, heat and moisture build up in an attic area and combine to cause rafters and sheathing to rot, shingles to buckle, and insulation to lose its effectiveness. Therefore, it is important never to block off sources of roof ventilation, such as louvers, ridge vents or soffit vents, even in winter. Proper attic ventilation will help prevent structural damage caused by moisture, increase roofing material life, reduce energy consumption and enhance the comfort level of the rooms below the attic. In addition to the free flow of air, insulation plays a key role in proper attic ventilation. An ideal attic has: A gap-free layer of insulation on the attic floor to protect the house below from heat gain or loss. A vapor retarder under the insulation and next to the ceiling to stop moisture from rising into the attic. Enough open, vented spaces to allow air to pass in and out freely. A minimum of 1 inch between the insulation and roof sheathing. The requirements for proper attic ventilation may vary greatly, depending on the part of the United States in which a home or building is located, as well as the structure's conditions, such as exposure to the sun, shade and atmospheric humidity. Nevertheless, the general ventilation formula is based on the length and width of the attic. NRCA recommends a minimum of 1 square foot of free vent area for each 150 square feet of attic floor—with vents placed proportionately at the eaves (e.g., soffits) and at or near the ridge. EVEN ROOFS HAVE ENEMIES A roof system's performance is affected by numerous factors. Knowing about the following will help you make informed roof system buying decisions: Sun: Heat and ultraviolet rays cause roofing materials to deteriorate over time. Deterioration can occur faster on the sides facing west or south. Rain: When water gets underneath shingles, shakes or other roofing materials, it can work its way to the roof deck and cause the roof structure to rot. Extra moisture encourages mildew and rot elsewhere in a house, including walls, ceilings, insulation and electrical systems. Wind: High winds can lift shingles' edges (or other roofing materials) and force water and debris underneath them. Extremely high winds can cause extensive damage. Snow and ice: Melting snow often refreezes at a roof's overhang where the surface is cooler, forming an ice dam. This blocks proper drainage into the gutter. Water backs up under the shingles (or other roofing materials) and seeps into the interior. During the early melt stages, gutters and downspouts can be the first to fill with ice and be damaged beyond repair or even torn off a house or building. Condensation: Condensation can result from the buildup of relatively warm, moisture-laden air. Moisture in a poorly ventilated attic promotes decay of wood sheathing and rafters, possibly destroying a roof structure. Sufficient attic ventilation can be achieved by installing larger or additional vents and will help alleviate problems because the attic air temperature will be closer to the outside air temperature. Moss and algae: Moss can grow on moist wood shingles and shakes. Once it grows, moss holds even more moisture to a roof system's surface, causing rot. In addition, moss roots also can work their way into a wood deck and structure. Algae also grows in damp, shaded areas on wood or asphalt shingle roof systems. Besides creating a black-green stain, algae can retain moisture, causing rot and deterioration. Trees and bushes should be trimmed away from homes and buildings to eliminate damp, shaded areas, and gutters should be kept clean to ensure good drainage. Trees and leaves: Tree branches touching a roof will scratch and gouge roofing materials when the branches are blown by the wind. Falling branches from overhanging trees can damage, or even puncture, shingles and other roofing materials. Leaves on a roof system's surface retain moisture and cause rot, and leaves in the gutters block drainage. Missing or torn shingles: The key to a roof system's effectiveness is complete protection. When shingles are missing or torn off, a roof structure and home or building interior are vulnerable to water damage and rot. The problem is likely to spread-nearby shingles also are ripped easily or blown away. Missing or torn shingles should be replaced as soon as possible. Shingle deterioration: When shingles are old and worn out, they curl, split and lose their waterproofing effectiveness. Weakened shingles easily are blown off, torn or lifted by wind gusts. The end result is structural rot and interior damage. A deteriorated roof system only gets worse with time-it should be replaced as soon as possible. Flashing deterioration: Many apparent roof leaks really are flashing leaks. Without good, tight flashings around chimneys, vents, skylights and wall/roof junctions, water can enter a home or building and cause damage to walls, ceilings, insulation and electrical systems. Flashings should be checked as part of a biannual roof inspection and gutter cleaning. TERMS YOU SHOULD KNOW Deck/sheathing: The surface, usually plywood or oriented strand board (OSB), to which roofing materials are applied. Dormer: A small structure projecting from a sloped roof, usually with a window. Drip edge: An L-shaped strip (usually metal) installed along roof edges to allow water run off to drip clear of the deck, eaves and siding. Eave: The horizontal lower edge of a sloped roof. Fascia: A flat board, band or face located at a cornice's outer edge. Felt/underlayment: A sheet of asphalt-saturated material (often called tar paper) used as a secondary layer of protection for the roof deck. Fire rating: System for classifying the fire resistances of various materials. Roofing materials are rated Class A, B or C, with Class A materials having the highest resistance to fire originating outside the structure. Flashing: Pieces of metal used to prevent the seepage of water around any intersection or projection in a roof system, such as vent pipes, chimneys, valleys and joints at vertical walls. Louvers: Slatted devices installed in a gable or soffit (the underside of eaves) to ventilate the space below a roof deck and equalize air temperature and moisture. Oriented strand board (OSB): Roof deck panels (4 by 8 feet) made of narrow bits of wood, installed lengthwise and crosswise in layers, and held together with a resin glue. OSB often is used as a substitute for plywood sheets. Penetrations: Vents, pipes, stacks, chimneys-anything that penetrates a roof deck. Rafters: The supporting framing to which a roof deck is attached. Rake: The inclined edge of a roof over a wall. Ridge: The top edge of two intersecting sloping roof surfaces. Sheathing: The boards or sheet materials that are fastened to rafters to cover a house or building. Slope: Measured by rise in inches for each 12 inches of horizontal run: A roof with a 4-in-12 slope rises 4 inches for every foot of horizontal distance. Square: The common measurement for roof area. One square is 100 square feet (10 by 10 feet). Truss: Engineered components that supplement rafters in many newer homes and buildings. Trusses are designed for specific applications and cannot be cut or altered. Valley: The angle formed at the intersection of two sloping roof surfaces. Vapor retarder: A material designed to restrict the passage of water vapor through a roof system or

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

5 REASONS TO CONDUCT REGULAR INSPECTIONS OF YOUR RENTAL PROPERTIES

5 Reasons to Conduct Regular Inspections of Your Rental Properties 1. Ensure Your Tenants Are Complying With the Terms of the Lease: Do you know if your tenant has a pet in the unit? Are there additional roommates that were not included on the application? Is there an illegal business? Have there been unapproved alterations to the property? Conducting regular inspections of your rental property will ensure that the terms of the lease are being followed by your tenants. 2. Tenant Retention: Just as an inspection can verify that the tenants are abiding by the lease, an inspection can also ensure that you as the landlord are abiding by the terms of lease as well. Was there anything promised at move in that you forgot to follow up on? Is there anything on the property that you are responsible for that needs to be addressed? A regular inspection can make sure that you are upholding your end of the deal, and your tenants will appreciate it too. 3. Confirm no Illegal Activity is taking place: You may have heard of rental properties turning into drug houses or other illegal businesses being run out of a rental property. Make sure that this is not the case for your rental property by scheduling regular inspections. 4. Identify Needed Maintenance and Repairs: Without an inspection, minor repairs can become major repairs over time. Small leaks can become big ones, and what could cost a few dollars could easily end up costing hundreds or more. Regular inspections help identify needed maintenance and repairs. This also helps to keep your tenants happy by making sure that all of the necessary systems including plumbing, ac, and electrical are working well. 5. Preserve the Value of Your Property We’ve all heard of the rental property nightmares when landlords go in to do the final inspection after a tenant has moved out only to find that the unit has been trashed, that there have been unapproved alterations, and that there will need to be major repairs in order to get the property rent ready again. Preserve the value of your property by conducting regular

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS REAL ESTATE DEPRECIATION?

One reason you might be thinking about investing in rental properties is because you think you’ll save money on federal income taxes. While this may be true, you really need to fully understand how rental properties and taxes work in order to determine whether you will in fact save money from your rental property ownership. If you’re already an investment property owner or are thinking about becoming a landlord, here’s a refresher on how the depreciation expense could help you maximize your tax savings. The basics In doing your annual 1040 federal income tax return, you’ll record your rent and all expenses on a Schedule E form. The net amount of gain or (loss) is then recorded on your 1040 form and can shield your income from taxes if you had a loss. One of the bigger expenses on most rental property owners’ Schedule E is something called depreciation. Here’s how it works. When you own property, each year you write off costs for money you expend where the cost is a one-year expense, such as gardening, general maintenance, repairs, HOA fees, etc. But what if the cost is for an improvement such as a new kitchen or new sidewalks? Because those costs have a useful life beyond one year, you must “capitalize” and depreciate those costs. That means you divide the total cost by the useful life of the improvement, and write off 1/nth of the cost per year. For example, you do $15,000 worth of driveway and sidewalks, with a 15-year useful life, so you can write off $1,000 per year ($15,000 divided by 15 years). The biggest capital asset of any property is the actual purchase of the house. When you buy a rental property and will own it for longer than one year, you can depreciate the structure. First you must divide the purchase price of the property between the land and the building. You can use your tax assessor’s estimate of the cost of each of those components, an appraisal or an insurance agent’s estimate of the cost of the building. Either way, you can only depreciate the building, as theoretically the land portion of your purchase price is not “used” up and cannot be depreciated. Crunching the numbers Here’s an example: Let’s say you buy a single-family home for $200,000. The tax assessor’s estimate of the land value is $75,000, and the building value estimate is $125,000. Your depreciation expense that you take each year against rental income would be $125,000 divided by the IRS allowed 27.5 years of useful life (residential real estate) for a depreciation expense each year of $4,545. So thanks to that depreciation expense, you are saving (assuming you can use passive activity losses) $4,545 multiplied by your marginal tax rate (which is a topic for another day). This could be tax savings from $1,000 to $2,000 per year, just for the depreciation amount. The calculation and write-off are pretty straightforward, but the actual tax savings amount gets a little more complicated. Many people flub this calculation from the start, so it’s best to find a licensed tax professional and start saving yourself some money going

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE AND MARRIAGE

Most states, except those listed as community property states, below, use the "common law" system of property ownership. In these states, it's usually easy to tell which spouse owns what. If only your name is on the deed, registration document, or other title paper, it's yours. You are free to leave your property to whomever you choose, subject to your spouse's right to claim a certain share after your death. (For more information, see Inheritance Rights.) If you and your spouse both have your name on the title, you each own a half-interest in the property. Your freedom to give away or leave that half-interest depends on how you and your spouse share ownership. If you own the property in "joint tenancy with right of survivorship" or "tenancy by the entirety," the property automatically belongs to the surviving spouse when one spouse dies -- no matter what the deceased spouse's will says. But if you instead own the property in "tenancy in common" (less likely), then you can leave your half-interest to someone other than your spouse if you wish. If an item doesn't have a title document, generally you own it if you paid for it or received it as a gift. Community Property States If you live in a community property state, the rules are more complicated. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. States Where You Can Opt In In Alaska, South Dakota, and Tennessee, spouses can opt in to the community property system and/or designate specific assets as community property. In Alaska, spouses can opt in by creating a community property agreement that states all (or some) property and/or income acquired by the spouses during the marriage is considered community property. Spouses can also establish a community property trust which covers specific assets—all property transferred to that trust will be treated as community property. In South Dakota, spouses may create a "South Dakota special spousal trust," which must include a written declaration that the property is "community property." Any property the spouses transfer to this trust will be treated as community property. In Tennessee, spouses can create community property rights to property or assets that they transfer to a valid community property trust, but the requirements are more specific. The trust must: include a written statement that the trust is a "Tennessee community property trust" have at least one qualified trustee, whose powers include maintaining records for the trust and preparing or arranging for the preparation of any income tax returns that must be filed by the trust—both or either spouse may be a trustee be signed by both spouses, and contain the following language in capital letters: THE CONSEQUENCES OF THIS TRUST MAY BE VERY EXTENSIVE, INCLUDING, BUT NOT LIMITED TO, YOUR RIGHTS WITH YOUR SPOUSE BOTH DURING THE COURSE OF YOUR MARRIAGE AND AT THE TIME OF A DIVORCE. ACCORDINGLY, THIS AGREEMENT SHOULD ONLY BE SIGNED AFTER CAREFUL CONSIDERATION. IF YOU HAVE ANY QUESTIONS ABOUT THIS AGREEMENT, YOU SHOULD SEEK COMPETENT ADVICE. Community Property Laws Generally, in community property states, money earned by either spouse during marriage and all property bought with those earnings are considered community property that is owned equally by husband and wife. Likewise, debts incurred during marriage are generally debts of the couple. At the death of one spouse, his or her half of the community property goes to the surviving spouse unless there is a valid will that directs otherwise. Married people can still own separate property. For example, property inherited by just one spouse belongs to that spouse alone. A spouse can leave separate property to anyone—it doesn't have to go to the surviving spouse. Community Property Separate Property Money either spouse earns during marriage Property owned by one spouse before marriage Things bought with money either spouse earns during marriage Property given as a gift to just one spouse Separate property that has become so mixed with community property that it can't be identified and separate property that has been transmuted or transferred to the community Property inherited by just one spouse Generally, these rules apply no matter whose name is on the title document to a particular piece of property. For example, a married woman in a community property state may own a car in only her name—but legally, her husband may own a half-interest. Here are some other examples: Property Classification A computer your spouse inherited during marriage Your spouse's separate property Property inherited by one spouse alone is separate property A car you owned before marriage Your separate property Property owned by one spouse before marriage is separate property A boat, owned and registered in your name, which you bought during your marriage with your income Community property It was bought with community property income (income earned during the marriage) A family home, which the deed states that you and your wife own as "husband and wife" and which was bought with your marital earnings Community property It was bought with community property income (income earned during the marriage) and is owned as "husband and wife" A camera you received as a gift Your separate property Gifts made to one spouse are that spouse's separate property A checking account owned by you and your spouse, into which you put a $5,000 inheritance 20 years ago Community property (probably) The $5,000 (which was your separate property) has become so mixed with community property funds that it has become community property (but you may be able to prove the $5000 is your separate property with property documentation and evidence) Changing the rules with a written agreement. Married couples don't have to accept the rules about what is community property and what isn't. They can sign a prenup, postnup, or other written agreement that makes some or all community property the separate property of one spouse, or vice versa. Some community property can avoid probate. Several community property states offer an advantageous way of holding title to community property that avoids probate at the death of the first spouse. It's called "community property with right of survivorship." If a couple holds title to property -- a house, for example -- in this way, when one spouse dies the property will automatically belong to the survivor, without any probate court

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

8 WAYS TO KNOW IF ITS A GREAT REAL ESTATE INVESTMENT

1. Check For Zoning Issues And Liens Generally speaking, one way to tell is when a property has a characteristic or complication that leads to an automatic "no" for the majority of investors. Zoning issues and liens on smaller non-institutional grade property are a sweet spot. These properties are too expensive for retail DIYs but not enough meat for institutions. - Colin Bogar, Property Passbook 2. Follow The 1% Rule There are many ways to evaluate investment returns when purchasing an income property. As a general rule of thumb, I always advise my clients to use the 1% rule as an investment strategy. The 1% rule states that the income property should rent for at least 1% of the purchase price to yield positive cash flow. The due diligence would be analyzing the fair market rental rates in the area. - Alex Chieng, A & L Real Estate Team YOU MAY ALSO LIKE Whittier Trust BRANDVOICE Beware Of The Embedded Fee: Hidden Fees Hide True Account Costs Civic Nation BRANDVOICE There Is One Secret Thing Every American Agrees On UNICEF USA BRANDVOICE 5 Ways Handwashing Saves Lives And Makes Children Smarter 3. Let Go Of The HGTV Hype In order to score a great deal on a property, buyers need to forget the HGTV hype and let go of lofty expectations. Buy the "worst" place on the block and slowly renovate as your budget allows. Formica and old appliances won't kill you, and the there is a lot to be said for the value of location over the perceived value of something as easily replaceable as countertops. - Elizabeth Ann Stribling-Kivlan, Stribling.com 4. Check The Cap Rate Cap rate (i.e., the price/earnings ratio) vs. the neighborhood is one such signal, although sometimes there are legitimate reasons for some sellers to be more motivated than others. We’ve also found price per square foot or price per door vs. neighborhood comps to be important metrics, when used properly. Successive price drops can also signal a good buying opportunity. - Larry Solomon, TheGuarantors 5. Look At The Roofline Look at the roofline. This is a trick taught to me by a well-known home inspector, Dylan Chalk, author of The Confident House Hunter: A Home Inspector's Tips for Finding Your Perfect House. Dylan has done structural inspections on about 5,000 homes. It's the first thing he looks at. It can tell you if the house looks sturdy, complicated, simple, elegant, vulnerable or weak. Is it original or has it been added to? Will it drain properly? Rooflines reveal. - Kevin Hawkins, WAV Group, Inc. 6. Get A Sense Of Condition And Presentation The condition of the property along with how it has been presented will usually dictate if the property can be purchased at a discount. So if the property doesn't have online photos then it likely has zero curb appeal. It also means that a significant discount can be requested on the purchase price and that the listing agent doesn’t have much to work with and could just be after a quick sale. - Engelo Rumora, List'n Sell Realty 7. Assess Purchase Price Vs. County Appraisal Value I can immediately determine if a property is a good deal just with an address and the county appraisal district website. Plug in the address and if the selling price is way below the county's value assessment, you have a 90% chance you will profit from this property. Why? Because fair market value is determined by the county's appraisal value plus 10-20% over their assessment. This is always the first step. - Angela Yaun, Day Realty Group 8. Determine If Price Is Less Than 100 Times Monthly Rent If you can buy an investment property for $900,000 and rent it out for $9,000 per month (or more), then it's likely a good deal. While it greatly simplifies all the factors in real estate investing, looking at the price as a factor of 100 times the monthly rent is a quick and easy baseline to getting a great price on a real estate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE PSYCHOLOGY OR REAL ESTATE

If you've ever house-hunted, you've probably got a sense that real estate purchases don't represent consumers at their most rational. Did you like a house or apartment more, or less, depending on whether it was sunny the day you saw it? Chances are, you did. Buying a house isn't the same as buying a stock, an air conditioner or even a car. It's not just a product with pluses and minuses—good school system versus small kitchen, new roof versus longer commute. A house represents the kind of life you want to live. And given its cost, a house and the value it gains or loses represent in a very concrete way the life you will be able to live. Thus, it's both unsurprising and disturbing to realize our judgment about real estate is susceptible to many of the foolish forces that affect so many other consumer decisions—and in some ways, it may even be more affected. Research by Michael Seiler, a professor at Old Dominion University, has found that both men and women (though particularly men) are susceptible to the attractiveness of a female real estate agent. The more attractive the agent, the more the buyer is willing to pay. What's more, superficial things like a room painted an ugly color can make people less likely to buy a house—even though fixing such a problem is as cheap as a couple cans of paint. What's more troublesome, though, is how attached our minds get to the perceived values of our houses. In one study, economists David Genesove and Christopher Mayer looked at the spectacular bust in condominium prices in Boston in the early 1990s. When a market goes south—as the national housing market did recently—standard economics tells us that sellers should recalibrate their expectations and behavior, knowing they'll have to sell for less. Of course, this isn't how our brains work. Instead, we're susceptible to loss aversion—the mental quirk by which we feel losses much more sharply than we feel equivalent gains. So we set the price of our property not by what the market will bear, but by what we paid and what we feel we "have to" get out. People who bought at or near the peak of the Boston condo boom listed their properties for around 35 percent more than those who had bought lower. Consequently, those overpriced properties sat on the market; fewer than 30 percent had sold after 180 days. Another wrinkle: Owners who also lived in the units exhibited about twice as much loss aversion as people who had bought them as investment properties. A home, it seems, makes us more irrational than a house. It doesn't take a boom or bust to trigger this phenomenon: A more recent paper finds that homeowners consistently overestimate the value of their homes by 5 to 10 percent. The only cure for this seems to be buying one's home during a slump; in fact, these buyers may underestimate their home's value. Buyers getting in now, then, may be at a cognitive advantage for years to come. Boom buyers, meanwhile, have to come to terms not just with economic losses, but with psychological losses and regret. Home Is Where the Head Is Research shows that consumers struggle to stay rational when buying or selling homes. Some examples: The New Curb Appeal: It's not just the paint job—the more attractive the real-estate agent showing a house, the more the buyer is willing to pay. Refusing to Lose: People who buy homes near the peak of a boom tend to list them at high prices, even if that means they don't sell. Blame it on "loss aversion," which makes us acutely feel and fear losses. Mine's Better: Homeowners consistently overestimate the value of their homes by 5 to 10 percent. The only group that's an exception: those who bought during a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHY CLEANING AND INSULATING YOUR ATTIC IS SO IMPORTANT

Most people don’t think twice about cleaning and insulating their attics. At least, not until strange smells, rodent infestations, or other annoying issues appear and force them to take a peek into their attic. With basic attic cleaning, inspection, and repairs, families in Everett, WA can avoid dealing with the side effects of a poorly insulated attic and can reap great benefits instead. attic-cleanup-attic-cleaning Attic Cleaning To discover why cleaning and insulating your attic is important, we need to take a look at what attic restoration looks like practically. A thorough attic cleaning by a professional attic cleaning and insulation service in Everett, WA gives you the perfect opportunity to analyze the condition of your attic. Here are a few of the things you might find in your attic. Rodent Infestation Following the cold winter months, one might discover the presence or remains of a family of rodents that made a comfortable home in your attic. Attic cleaning will serve to remove any droppings, junk, dead rodents or urine traces from your attic to protect your home and family against infectious viruses. Read more about how to deal with rodents here. Dust and Dirt As the contents of your attic sit untouched for months on end, a substantial amount of dust and dirt can begin to form on top of your stored belongings. The stack effect of air transfer means that if you have a dirty attic, you’ve got dirty air in your home. A thorough attic cleaning can help to keep your stored items clean and protect your air quality. Holes and Cracks Over time, wood exposure and general wear can create holes or cracks in the walls and corners of your attic. These small spaces allow outside air to circulate into your attic and wreck havoc on your energy bills. During the summer, families want to keep their homes cool and comfortable. But with the circulation of air between their attics and living areas, the hot air that finds its way into the attic is then forced down into the home and the cool air is allowed to escape. When cleaning out your attic, a skilled attic insulator would be able to identify where air circulation is occurring and the best methods of sealing those areas. Mold Water and moisture can also find its way into your attic through holes and cracks. If left alone, the accumulated moisture will condense and become an ideal breeding ground for mold and wood rot. Not only will a moldy attic affect the structural integrity of your home, but these colonies release mold spores and unpleasant odors into the air that is then circulated down into your living spaces. Families can protect their health by cleaning out and insulating their attics before too much damage is done. Here at Clean Crawls, attic cleanliness and integrity is one of our top priorities. We specialize in cleaning, insulating, and restoring attics throughout Everett so that families can enjoy the comfort of their homes. Our team works to analyze the condition of your attic during the cleaning process so as to provide you with the solutions that match your attic’s needs. attic-insulation-everett-wa Attic Insulation: Following a thorough cleaning, proper air sealing and attic insulation should be performed to protect your attic from any future threat. Proper attic insulation and restoration will seal the gaps or cracks that might permit moisture, heat, or pests to enter your attic. In addition, attic insulation can help to reduce energy expenses during the summer months by locking in the cool temperatures inside and resisting the heat transfer from warm air outside. Families have been able to reduce energy expenses by about 25% or more, simply by cleaning out and insulating their attics. There are several types of attic insulations available, each with their own list of benefits and drawbacks. Blown-In Insulation (Fiberglass or Cellulose) Blown-in insulation starts out as large blocks of recycled paper materials or fiberglass insulation that is then chewed up by a machine into small pieces and sprayed out into your attic. This thick layer of insulation creates a seamless coat of insulation that covers the floor of your attic and gets into corners and crevices that are harder to reach. One of the drawbacks to using blown-in insulation in your attic is that it is not water resistant. This spongy materials is quick to soak up any water that might appear in your attic and does not dry out. If this occurs, you attic will then become an ideal breeding ground for mold and mildew. Roll or Batt Insulation (Fiberglass or Rockwool) Batt insulation is commonly seen in large rolls or laid out in large blankets. These materials can be installed along the walls of your attic to block transfer of heat through the walls and are a great way to cover large sections of space. Similar to blown-in insulation however, this type of insulation is very water absorbent. In addition, batts that are installed inappropriately can leave gaps and holes between the blankets. These gaps can still allow energy to transfer and reduce your home’s energy efficiency. Spray Foam Spray foam is one of the top methods of attic insulation available today. This unique insulation is created by the chemical reaction of two composite materials combining and expanding. This expansive insulation naturally seals up any cracks, holes, or crevices that blown-in or batt insulations could not have insulated. In addition, spray foam insulation is rodent and water resistant, giving your attic additional protection against infestations and water

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A LEASE OPTION? WHY WOULD YOU USE A LEASE OPTION?

commercial real estate. In a lease-option, a property owner and tenant agree that, at the end of a specified rental period for a given property, the renter has the option of purchasing the property. A lease option is different from a lease purchase contract, in that a lease purchase binds both parties to the sale, whereas in a lease-option the buyer has the option but the seller does not. Contents 1 Residential example 2 Reasons for using a lease option 3 See also 4 External links Residential example The example below describes a typical lease-option for residential properties; commercial lease-options are typically more complicated. The contract is typically between two parties: the tenant (also called the lessee or tenant-buyer), and the landlord (lessor), who owns or has the right to lease or dispose of the property. In order to have a valid option the tenant-buyer must in most cases provide "valuable consideration" (a fee) for the option. Generally, sellers will ask for as much as possible--often around 3%-5% of the purchase price. The tenant-buyer usually will want to provide as little as possible--even a token amount of $100 represents "consideration." The option gives the tenant the right (but not the obligation) to purchase the property at a later date. The lease option only binds the seller to sell, it does not bind the buyer to buy. That makes it a "unilateral" or one-way agreement. In contrast, a lease-purchase is a bilateral, or two-way, agreement. The basic elements of a lease-option are: 1. Buyer purchases the option. The parties agree to what the cost of the option is. As noted above, it can range from a token amount to 5% (or more) of the value of the property. The option fee usually is non-refundable. That is, if the tenant-buyer fails to exercise the option, the money remains with the seller. It is not refunded. The reason: The option fee is not a deposit. The option fee has been used to purchase something of value: the option. 2. The parties agree to a purchase price. It can be decided that the price will be the appraised value at the time the option is exercised. Generally, however, the purchase price is agreed upon at the inception of the option. 3. The length in residential real estate is typically 1-3 years. However, it is often unwise for the tenant-buyer to agree to a short period of time (often 2 years or less). The tenant-buyer often is expecting that the property will appreciate in value, particularly if the agreed-upon purchase price is equal to or higher than the fair market value at the time of the inception of the option. Perhaps even more important, often the tenant-buyer has credit or other financial issues preventing him/her from immediately purchasing. The option period is used to strengthen the tenant-buyer's credit, amass rent credits, and position him/herself to purchase. That often can take several years. 4. How much the monthly lease payment is, whether any of the lease payment is to be credited towards the purchase price reducing the purchase amount. Often, the monthly lease payment is equal to or slightly above the fair market rent of the property. And while it's fully negotiable, a credit in the range of 15%-25% is often offered. So, for example, if fair market rent for that unit would be $1,000, the seller might charge $1,100 with $200 of that being credited toward the purchase price. 5. Whether the tenant-buyer will occupy the property or whether the tenant/buyer has the right to sub lease or the right to sell the option. In most cases, the tenant-buyer occupies the property. Sellers will generally seek to make that one of the terms of the agreement. 6. An investor may acquire a distressed property with a lease option and make improvements to the property. Then the investor can sell the option to a buyer that is willing to pay the new market value for a profit. It is a common financing technique with investors. However, it is riskier than other methods the investor could use for controlling the property. The risks include the seller's inability to transfer clear title when the investor seeks to exercise the option. In that case, the investor will have made improvements (sometimes substantial) to a property he/she doesn't own and may not be able to acquire. If the investor is considering anything more than cosmetic enhancements, he/she might consider another method of control such as a land trust or acquiring the property using what's called a "subject to" (or Sub 2) transaction. 6.a An example: Seller has a property that needs considerable amount of work. Retail buyers typically cannot get financing or have too much to choose from to bother with physically distressed properties. Investor enters into a lease option agreement for let’s say $100,000, rehabs the property with about $20,000 and now the market value is approximately $135,000 the investor can sell the right to purchase for $35,000 and the new buyer would close with the original seller for $100,000 6.b Another example: A buyer buys the same property and uses his/her own money to rehab and may use rehab money towards the down payment. This allows the buyer to NOT have to come with a large down payment and rehab money. Everything functions like a lease except there is a schedule when the buyer can decide to purchase the property. The terms of the lease have to be negotiated also. These include items typically found in leases: maintenance, utilities, taxes, pets, how many occupants, insurance, ability to make modifications to the property, and so on. One note: Maintenance terms in a lease-option often differ from those in a standard lease. In a typical lease, often the owner is responsible for all repairs, except--sometimes--for a $50-$100 per incident deductible. Basically, the owner is responsible for virtually all repairs. In a lease-option, often a greater burden for repairs is shifted to the tenant-buyer. During the term of the lease option, the tenant makes lease payments to the landlord for the use of the property with the terms mutually agreed. At the end of the contract, the tenant has the option to purchase the property outright. The tenant does so by going out and getting a mortgage. Excess credit may also be applied towards the eventual purchase of the property, or towards the down payment for a mortgage (CAUTION, the buyer and seller can agree to whatever they want, but when the buyer goes to get permanent financing the bank has guidelines to what can be applied towards the down payment or the purchase. Typically banks only allow an amount that is above and beyond market rent to be considered for a down payment.) In that case, the lease-option works as an automatic savings plan for the tenant. This down payment is applied as part of the "option consideration fee"; in the arena of lease option purchasing this is a fee charged for the right to purchase the property. Reasons for using a lease option Buyers 1. Buyer is relocating and may need to sell a property in another area before the buyer can qualify to purchase the new home. 2. Buyer may have had some credit issues that can be resolved during the option period. 3. Buyer may have started a new business and otherwise qualifies and can afford the payments. 4. Buyer may not have enough funds for a downpayment. 5. Buyer is relocating and is unfamiliar with the new area. He/she wants to "get a feel" for the area--safety, school quality, convenience, etc. 6. Buyer is seeking a VA loan and the property does not meet VA appraisal guidelines. Buyer agrees to make the needed repairs during the lease term to allow the property to meet these specifications. In the event of non-payment, it may be possible for the seller to remove the tenants through eviction, which is likely to be cheaper than foreclosure on a mortgaged property. The lease-option may also require less money up front, while a mortgage might require a substantial down payment from the tenant. If the tenant does not exercise the option to purchase the property by the end of the lease, then generally any up front option money along with any monies that the tenant paid in addition to the market rental rate for this option may be retained by the owner depending on the agreement. This might occur if the tenant no longer wishes to purchase the property, or if the tenant wishes to purchase the property but is unable to obtain the financing required to do so. Seller A lease-option allows the seller to sell a property that they may not have otherwise been able to sell. In many cases a seller can net more money when offering terms to a buyer. Sellers can often avoid paying a Realtor fee by using a lease-option agreement (as they have already found the buyer themselves). There is an expression, “Price or terms, pick one;” sellers may be able to sell for a better price (or sell the property period) by offering attractive terms to the buyer(s). For the buyer to get a favorable price the terms usually have to favor the seller. If the buyer defaults and the contracts are drafted properly then there is an automatic tenant landlord relationship. All valuable considerations are typically surrendered and then it would be an eviction. Some forms of lease-option agreements have been criticized as predatory. For example, sometimes lease-options are offered to tenants who cannot realistically expect to ever exercise the option to purchase. Sometimes the lease-option period is for such a brief amount of time (6 months, for example) that the tenant-buyer has little chance to repair his/her credit, save money for a down payment, or address whatever other problems

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

BENEFITS OF FSBO

The biggest reason to consider some form of FSBO is the money you may save. If your house sells for $300,000, a traditional real estate commission of 6 percent would cost you nearly $20,000. You can keep that money or drop your price to sell faster. fsbo savings While real estate writers often claim that professional agents are better negotiators than “civilians,” research does not necessarily support this. Economists Stephen Dubner and Steven Levitt wrote in Freakonomics that agents who sell their own houses get better deals for themselves than they negotiate for their clients. Harvard research: the future of home prices in 2017 and 2018 That’s because they have more incentive to move a property fast than to squeeze a few thousand more from a buyer. Negotiating $25,000 more for you gets them, after splitting commissions with the selling agent and their broker, about $375. Not worth the extra time and effort for them, but probably worth the effort from you when you sell yourself. The other benefit is that you control the process. You decide if you want an open house. You decide how to advertise, if you want to have an open house, when to show your home to prospective buyers, and how you want to negotiate with them. If you like being in the driver’s seat, you may prefer to DIY your home sale. Full-service, DIY, or…… Today’s homebuyers can check out homes without spending hours in the back seat of an agent’s car. They can and do tour for-sale homes anytime they want. But how do you get your house out there in front of buyers? You could build your house its own Web page. Or you could pay a national real estate firm 6 percent to take lots of pictures, print brochures and advertise your house on their site. Real estate representation: buying agents vs listing agents Or, you can choose another level of service and price for a custom experience. This so-called “hybrid” model blends traditional and DIY real estate sales, letting you save money by doing things you don’t mind doing, and save time by paying someone to do things you don’t like. The hybrid model: all things to all people? Traditional agents usually split a 6 percent commission between the listing agent, the selling agent, and their respective brokers. Each party may grab a 1.5 percent share of your sales price. Making a sight-unseen offer on a home FSBO sellers do not have to pay the standard commission, but may have to pay a selling agent and broker 3 percent in order to make the deal work. And FSBO selling can be a lot of work and aggravation for some. FSBO sellers may miss out on buyers who have buyer’s agents. Their agents may prefer to avoid FSBOs, even those who will pay a 3 percent commission. They expect that they will be stuck with most of the work. A hybrid model can prevent this. Pay only for what you need Online self-help platforms offer different ranges of service, letting sellers decide how much service they want and what they want to pay. how much can you save with fsbo Paying for a listing in your local MLS is the minimum you should do, according to the American Economic Review. Researchers claim that, “the probability of a quick sale is higher for houses initially listed on the MLS.” Many hybrid model platforms offer free trials and low-priced options. 10 reasons your home sale didn’t go through The highest-end packages offer signage, online or phone support, state-specific real estate forms and national and local MLS exposure. It may be well worth the investment if you save a ton and avoid the worst of selling stress by getting some professional help. When it comes time to sell, think realistically about how much you’re willing to do. If you are confident, willing to put in the hard work, and perhaps have some real estate or marketing experience, FSBO may work well for you. How to sell your home FSBO Regardless of how much or little help you get from an agent or service, you’ll have to complete these steps. Preparing your home for sale You may have learned to live with your home’s “quirks,” but buyers will quickly notice deferred maintenance like peeling paint or sticky doors. And they will wonder what other problems are not in plain sight. Walk through your home as though you’re seeing it for the first time. Enlist the help of a more objective family member or friend and ask them to be completely honest about any turn-offs. (Make sure you can handle the truth before asking for it.) Staged homes sell 73 percent faster Take care of obvious ugliness and health and safety issues, but don’t over-improve the place for someone else, or price yourself out of the neighborhood with too much fancy stuff. Staged homes fetch higher prices. It’s a fact. If you don’t want to hire a pro, at least rent some storage space and stash a minimum of half of your belongings out of sight. You may need to get rid of pet hair and odors, and even board your furry family members elsewhere until you close on the sale. Be your own marketing department Plan to spend some money for advertizing. Researchers claim that nine of ten buyers search for houses online. They need to be able to find you and yours. Homeowner survey: more preparing to sell It pays to spend what it takes to get your house listed on the local MLS. While the MLS is not available to consumers listing homes, there are brokerages or platforms that offer the service for a flat fee. Make yourself available for showings and be as flexible as possible, You will probably have to put your life on hold while selling your own house. Commissions, open houses, and other stuff If you offer a commission to selling agents, make sure they know it. Your MLS listing should state this, as should your signage and advertising. Plan on putting a lockbox on the house, so selling agents can tour the home with their clients, and you won’t have to be there. Make them earn their 3 percent! Should you hold an open house? Many believe that they are primarily used by agents to market themselves to your neighbors. If your house is on the MLS and you provide good pictures and / or virtual tours, you probably don’t need to hold an open house. And you avoid looky-loos and snoops prowling through your home. open houses snoops looky loos If you do open your home, it will be easier if you have some help — someone to sign in visitors and check IDs, someone to keep an eye on various rooms as people walk through, and someone to answer questions from potential buyers and agents. Hire a good photographer to shoot a virtual tour. Most pros can also offer drone photography. Advertise the virtual tour link in your brochures and fliers. How to evaluate and counter offers Decide what’s most important to you. For example, an all-cash offer with a fast closing date may be better for you than a higher sales price contingent on buyers selling their current home. Understand your market — you’ll negotiate differently in a seller’s market than in a buyer’s market. The buyers or their agents normally draft the sales agreement. If there are multiple offers, you’ll be responsible for communicating with potential buyers / agents. You’ll evaluate the strength of each offer and perhaps counter them, eventually arriving at an agreement. How long does it take to buy a house? Learn in advance how to write a counter offer. You don’t have to accept the buyer’s offer, but you should always counter and give them the chance to do better. Many just automatically see what they can get away with on the first go-round. Remember that price is just one factor. You may be able to make the deal more attractive to a buyer by paying closing costs or throwing in a snow blower. Incentives to buyers’ agents may also get the deal done while still saving you money. Protect yourself Make sure your buyer is prequalified by a lender to purchase your home. Require an earnest money deposit that the buyer will forfeit if he or she does not adhere to your contract and close as agreed. Understand that contingent offers let the buyer out of the deal under some circumstances. For instance, most standard contracts allow the buyer to exit if a mortgage lender declines their loan application, or the home fails to appraise for the sales price. How to avoid contingent offers on a home If a buyer makes a contingent offer, make sure you can accept a better offer or force the buyer to remove the contingency. This is called “right of first refusal.” The home inspection There are two schools of thought about home inspections. On one hand, by getting one before putting your home on the market, you find out if anything needs to be fixed upfront. This can eliminate ugly surprises deep in the process. Home inspection: What do they do and why should I get one? On the other hand, most (if not all) states require you to disclose any defects you know about. So anything that turns up would have to be fixed or disclosed, and you may not want to do that. Providing a copy of your own inspection may help put buyers at ease, and they may even waive their right to order their own. That’s not smart on their part, but an unrepresented buyer might not know any better. Repairs Your sales agreement should set a limit on the amount of repairs you’re required to complete. For instance, you might agree to pay for repairs up to $2,000 without renegotiating the contract. Are home warranties worth it? But if the inspector comes up with $20,000 of repairs, you may not want to be forced to do that to close your deal. You may prefer to just kill the deal or negotiate a lower sales price based on the inspector’s findings. FSBO home disclosures Federal and state law mandates certain disclosures and material facts. You must give the buyer a copy of all required disclosures. Have your buyer sign a receipt indicating that you provided these things. In many parts of the country, buyers ask for pest (termite) reports from the seller. The cost is negotiable, but many areas have traditions that dictate what people expect to pay for, and what they expect you to pay for. If you live in a community, co-op or condo with a homeowners association (HOA), your buyers and their mortgage lenders will want copies of the covenants, conditions and restrictions (CC&Rs). That’s a set of rules homeowners must abide by. What happens at your real estate closing Know if your community is FHA, Fannie Mae, Freddie Mac, VA or USDA-approved. You can then advertise this fact to potential buyers. The buyer will likely obtain title insurance, which again is a negotiable expense between the parties. You should order a preliminary title report before selling, so you’ll know if there are issues you need to address. For instance, things like tax liens that might be on your title by mistake. Smart sellers often offer to provide a home warranty. That costs a few hundred dollars for a year of coverage. And the buyer won’t be blaming you for every little thing that goes wrong after the sale, or call wanting you to fix anything. Ordinarily, buyers get some amount of time to review these disclosures. Once that deadline passes, they don’t have the right to kill the deal because of anything on the forms. If your contract is set up correctly, you should be able to keep their earnest money if they back out at that point. Should you offer seller financing? If you have a significant amount of home equity, and don’t need to receive the entire proceeds of the sale at closing, consider seller financing. Lending some or all of the purchase price to buyers offers a couple of advantages: you reach a larger market and create monthly income. How does seller financing work? There are three ways to structure your sale. Your choice depends on your objective and how much you owe (if anything) on your home. Mortgage or deed of trust When you create a mortgage (or deed of trust, depending on your location), you become a mortgage lender. You and your buyers have to execute mortgage documents dictating the loan’s terms. You record a lien against the home with your county. Mortgages and home sales are public, and must be recorded to be enforceable. Owner carryback In this case, most of the financing is taken care of by a professional mortgage lender. You just finance part of the buyer’s down payment. This is called an owner carry or “piggy-back” mortgage. Lease options: the good, the bad and the ugly One common structure is the 80/10/10, in which the buyer puts ten percent down, gets a ten percent carryback from the owner and an 80 percent loan from a mortgage lender. An 85/15/5 requires just 5 percent from the buyer and 15 percent from you. Understand that the mortgage lender is in first position. This means if the buyer defaults and the lender forecloses, it gets paid first from the foreclosure sale. You get paid only if there is enough left over to cover what’s owed to you. Wraparound A “wraparound” loan creates a new mortgage between you and the buyer. However, you continue paying your existing loan. Not all lenders allow this. In fact, many have an acceleration or due-on-sale clause that requires you to pay off your mortgage when you sell your home. But assuming you can do a wraparound, they work like this: If you owe $100,000 and sell for $150,000, you might accept $15,000 down, grant a $135,000 mortgage, and record the sale with your county. You receive monthly payments from your buyer, make monthly payments to your lender, and pocket the difference. Pros of seller financing There are several advantages when you finance a sale yourself. Not only do you receive your profit from the sale; you can take what a lender would get in interest and loan fees. Higher price Buyers who can’t purchase a home with traditional financing have less bargaining power than prime buyers. You’re more likely to get a better price. Tax breaks If you’re not able to legally exclude all capital gains on your property sale, you can minimize or defer tax liability by carrying a mortgage. The IRS calls it an installment sale, and only a small part of each payment is considered a taxable gain. Depending on your bracket, the savings can be substantial. Income Financing a sale creates income streams. First, just like a traditional lender, you can charge closing costs for originating the mortgage. One percent of the loan amount is typical. The second income stream is the return of principal, including the gain on your property sale. The third stream is your interest income. Before setting an interest rate, know what mortgage lenders are charging someone with your buyer’s credit, down payment and income. Lower costs In many areas, it’s customary for property sellers to pay at least half of closing costs. Plus real estate commissions. As a financing seller, you might be able to skip expensive title insurance in addition to the services of a real estate agent. Cons of seller financing There are also disadvantages and risks when you provide financing. It’s up to you to decide if the extra money is worth it. Legal fees Unless you’re very experienced at selling and financing property, hire a real estate lawyer to set up the loan. An attorney should also draw the sales contract if there’s no agent involved. Lawyers don’t work for free, but not using a pro can be very expensive in the long run. Default If the buyer fails to repay as agreed (either you or a mortgage lender in first position), you will be dealing with the foreclosure process. The legal fees, aggravation and potential property damage are major issues. It’s critical to remember that a mortgage lender’s lien takes priority, and your carryback is a second mortgage or junior lien. This means the lender gets repaid first after the foreclosure sale. You get paid (maybe) from what’s left over. Acceleration Almost all mortgages have “due on sale” or “acceleration” clauses, which means your lender can choose to call in the loan once the property changes hands. It doesn’t happen often, but it’s possible. Your lender might okay the wraparound after the fact, but increase your interest rate. If you create a wraparound mortgage, consider all contingencies and have an out, just in case. Avoiding problems with seller financing Unless you’re an experienced private lender, get professional help. Have a real estate attorney help you set the terms of your sale and loan. Do not rely on forms from your office supply store. Hire a note servicer to collect monthly payments. It should also collect and pay property taxes and homeowners insurance premiums. It’s not expensive, and much of the time, the buyer pays it anyway. What to expect after your home closing Act like a lender, because you are one. Have your buyer complete a Fannie Mae Form 1003 (mortgage application). Pull the buyer’s credit, verify income, and set your down payment requirement based on the strength of the borrower. If your buyer needs you to carry the loan because his credit report looks like a rap sheet, don’t make yourself the next victim. Experienced “hard money” lenders set upfront fees and down payments very high. So high that they won’t lose money if the buyer defaults early on. You should look after yourself like the pros do. FSBO mistakes to avoid face palm frustration fsbo There is a reason that states don’t just hand out real estate licenses to anyone. Agents must complete a certain amount of training and pass at least one exam to get their licenses. And they must pass continuing education classes every year. You probably don’t have that training. So here’s a crash course in what not to do when you FSBO. Just throwing a sign out there Whether you are selling on your own or with an agent, in order to attract buyers, clean your house, get rid of clutter, and maximize your curb appeal. However, beware of spending too much and over-improving your property for its neighborhood. Put your money where it will do the most good — on inexpensive improvements like fresh paint, a weed-free yard, an inviting front door, and clean baseboards and walls. Overpricing Sellers who FSBO must do their own research on what similar houses in their area are fetching Look at the most recent sales you can find, and also check out the listing prices of competing properties in your area. 5 steps to take before making an offer on a home Remember, your house will sit on the market longer, costing you time and money, if you overprice it. All you’ll be doing is helping other people sell their homes, because they will look better in comparison. In fact, agents often show overpriced houses first, then show their own listings to their clients. Your bad decision helps everyone but you. “Forgetting” to get a home inspection Savvy buyers will require an inspection. They are likely to find some (hopefully minor) repairs needed. Sellers who have a home inspection before putting their home on the market can prepare to pass a buyer’s inspection. Or you could just hope a silly buyer shows up and buys “as is.” Getting eaten alive by a buyer’s agent Selling your home without an agent won’t save you the entire 6 percent unless your buyers are also unrepresented. If you want to attract the attention of buyers who are working with a real estate agent, you’ll have to offer a commission in the traditional range of 2.5 to 3 percent, and maybe more to compensate the agent for the extra work your FSBO deal implies. Seller concessions: paying the buyer’s closing costs On the other hand, don’t just let the buyer’s agent control the whole process, or push you to accept less than you should. If you can’t negotiate comfortably, get your own representation. Putting too few (or just bad) pictures online Since nearly all buyers start their home search online, they are used to checking out photos before touring houses in person. Make sure you have multiple photos with your listing. And be smart about what you showcase: if you say you have a great view, show the view. How emotions affect the home buying process Incredibly, even professionals sometimes make this mistake. They put up 20 pictures of the bathrooms and none of the outside. Highlight your home’s great points. Make sure the rooms are clean, clutter-free, and well lit. No blurry, dark or ugly pictures, please. This is one area in which professional staging and photography may offer a lot of bang for your buck — especially if you’re selling an upscale property. Not using your local MLS (multiple listing service) It’s easy to find FSBO services that can put your home on the local real estate listing service for a flat fee. It’s just a few hundred dollars (almost nothing compared to the value of your home). You can market your property to thousands of buyers, probably the most cost-effective help you can buy. Being hard to reach or meet Selling your home is a pain, plain and simple, and it’s even worse when you have to do all the work yourself. If you can’t be available to show potential buyers on their schedule, hire someone who can. Unless your house is so desirable or well-priced that you can make everyone come at 6 am on Sunday, you’ll either have to put up a lock box and pay a 3 percent commission or take a lot of time off work to show your house. Blowing off potential buyers Respond to emails and phone calls immediately, because any of them could be from a potential buyer. Remember that serious buyers want to narrow down their list quickly, view those homes and complete the process ASAP. If you wait a few days to make contact, they may already be under contract elsewhere. Dealing with unqualified purchasers Don’t take your home off the market until you get proof that the buyer can follow through. This means a mortgage pre-approval letter or bank statement showing the buyer has the cash to close. Don’t rely on mere pre-qualification. In most cases, pre-qualification does not involve underwriting, proof of income or even necessarily a credit report. You could lose a lot of time and money if your sale fails at the 11th hour. The bottom line There is money to be saved by selling your home yourself. In some cases, big money. However, don’t be surprised if you save less than expected, and have to work a bit harder for it. Show Me Today's Rates (Oct 12th,

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW SHOULD YOU TAKE TITLE TO REAL ESTATE?

One of the last things most home buyers think about is how to take title to their new house. It's best to consult a real estate attorney before deciding but, unfortunately, most homeowners don't do that. To help with the decision, here are the pros and cons of the five most common ways to hold title to your home: 1. Sole ownership If you are single, one way to hold title to your home is in your name alone. This method is also called ownership in severalty. When a married person takes title to real property in his or her name alone in sole ownership, the spouse is usually asked to sign a quitclaim deed giving up any ownership interest in the property. This might be done, for example, when a husband invests in properties but his wife is not involved with the realty investments. There are no special tax or other advantages of holding title in sole ownership. When the sole owner dies, any property held this way is subject to probate court costs and delays. 2. Tenants in common When two or more co-owners take title to real estate, especially if they are not married to each other, they often become tenants in common. For example, two realty investors might select this method. Each tenant in common owns a specified interest in the property. It need not be equal. For example, one owner might own a 50% interest, another could own a 10% interest and a third tenant in common could own a 40% share. The percentage ownership is specified on the deed. A major advantage is that each tenant in common can sell or pass his interest by his will to whomever he or she wishes. For this reason, tenancy in common is especially popular in second marriages, so each spouse can will his or her share to the children from a first marriage. Tenancy in common property is subject to probate court costs and delays. A disadvantage is that the remaining tenant in common could wind up co-owning property with a stranger. Another disadvantage (also true for joint tenancy) is that a tenant in common can bring a partition lawsuit to force a property sale if the other co-owners are unwilling to sell. The court can then order the property sold, with the proceeds split among the co-owners according to their ownership shares. 3. Joint tenancy with right of survivorship When title is held in joint tenancy with right of survivorship, all co-owners must take title at the same time; they own equal shares and the surviving co-owner winds up owning the entire property. In some states, when husband and wife use this method, it is called tenancy by the entireties. After a joint tenant dies, the surviving joint tenant(s) receives the deceased's share. The deceased's will has no effect on joint tenancy property. A major advantage is that probate costs and delays are avoided when a joint tenant dies. The surviving joint tenant(s) usually needs only record an affidavit of survivorship and a certified copy of the death certificate to clear the title. However, except for tenancy by the entireties, a major disadvantage is that a joint tenant can sell or give his property interest to a new owner without permission of the other joint tenant(s). If there are only two joint tenants, the joint tenancy is ended by such a conveyance, creating a tenancy in common. 4. Community property Husbands and wives who acquire realty in the community property states of California, Nevada, Louisiana, Wisconsin, Texas, Arizona, Washington, Idaho and New Mexico can take title as community property. Each spouse then owns half the property, which can be passed by the spouse's will either to the surviving spouse or someone else. A special advantage is that community property assets willed to a surviving spouse receive a new stepped-up basis at market value on the date of death. In 1987, the IRS extended this community property stepped-up basis advantage to husbands and wives holding joint tenancy titles in community property states. To qualify, IRS Revenue Ruling 87-98 requires spouses to acknowledge in writing to each other that their joint tenancy property is also community property. 5. Living trust Probably the best way to hold title to homes and other real property is in a revocable living trust. There are many advantages, such as avoidance of probate costs and delays. Other than the modest cost of creating a living trust (usually less than $1,000) and deeding real property into the living trust, there are no disadvantages. Until the death or disability of the trust creator, the home and other real estate in the living trust are treated normally. Stocks, bonds, bank accounts, automobiles and other major assets can also be held in a living trust. Since the living trust is revocable, these assets can be bought, sold and financed normally. If the trustor becomes incompetent, the named alternate trustor (such as a spouse or adult child) takes over management of the trust assets. When the trustor dies, the assets are distributed according to the trust's terms. Privacy is a major advantage. Unlike a will, which becomes part of the public probate file, the living trust terms remain private. For example, late Bing Crosby held virtually all his assets in a living trust and its terms never became public. Still another advantage is that court challenges of living trusts are virtually impossible, whereas will challenges by disappointed relatives occur frequently. Summary The five most popular methods of holding residence titles all have their pros and cons. Overall, the best method for most homeowners is the living trust, because of all its advantages. * *

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FOUNDATION REPAIR

Foundation repair options vary greatly depending on the geographic area and site conditions for the repair. Until the late 1970s, the main repair method simply used concrete. Below is a list of some popular methods used to repair foundations today. 1. Steel piers The introduction of steel piers revolutionized the foundation repair process. The steel piers take less time and disturb less landscape than traditional concrete piers. Steel piers have progressed and have become more technical and data-driven to install. 2. Helical piers Helical piers work well for exterior foundation repair and interior slab repairs. Helical piers are useful for both new construction and as a repair method. Light-loaded areas, such as porch columns or structures with vinyl siding, are great matches for helical piers. Helical piers are the most versatile and underused pier in the market. 3. Concrete pier foundation repair Foundation companies typically use poured-in-place concrete piers in the preconstruction phase of structures. However, they can also adapt for use in repairs. This was the preferred method of repair prior to invention of the hydraulic driven steel pier. Concrete piers offer a very permanent way to repair a foundation, but there are some drawbacks. The cost and difficulty of getting drilling rigs into residential yards are less than ideal, and foundation repair contractors must dig a lot of dirt from the holes for the piers, making cleanup very difficult. Due to these factors, concrete piers are the most expensive mode of foundation repair. 4. High-density polyurethane foam Slab repair is simplified with high-density polyurethane foam. Foundation repair technicians inject the foam in a checkerboard grid that’s approximately 6 foot on center in the affected area. High-density polyurethane has become a real marketplace-driven product because of the price and speed of repair it offers. However, consumers must remain cautious if HVAC ducts run through the floor since the foam could infiltrate and clog them. It’s also necessary to perform plumbing tests prior to the foam injection to ensure there are no leaks in the supply or drain lines. 5. Segmented piers This is a relatively new product in the industry. Segmented piers are a price-driven foundation repair product, and their sole merit is a low price. 6. Spot piers Spot piers are shallow, hand-dug piers that are filled with concrete. They provide a great option for repairing foundations in light-loaded areas, such as

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FINAL WALK-THROUGH BEFORE CLOSING

Final walk-throughs are not home inspections, even though it might seem that way. It is not a time to begin negotiations with the seller to do repairs, nor is it a contingency of sale. A final walk-through is an inspection performed anywhere from a few hours to a few days before settlement. Its primary purpose is to make certain that the property is in the condition you agreed to buy -- that agreed-upon repairs, if any, were made, and nothing has gone wrong with the home since you last looked at it. Buyers are often pressed for time as the day draws near for closing, which means buyers can be tempted to pass on the final walk-through. It is never a good idea to blow off the final walk-through. Vacant Home Can Develop Issues Before the Final Walkthrough Sellers often move out before closing. Ever watch HGTV's House Hunters and try to guess which home the buyers will choose? Well, I'll let you in on a secret. It's the vacant house! Trust me, nine times out of 10, it's the vacant one. That's because they tend to film the show backwards, starting with the house the buyer purchased, just before it closes escrow. At least that's been my personal experience when I appeared on the show. Now, in situations where the seller has already moved out, it is even more imperative that buyers conduct a final walk-through. Problems arise when homes sit vacant for any period of time. For example, when termite companies test showers, they plug the shower drain with paper and let the water run. Guess what happens if the termite inspector forgets to remove all the paper over the drain and doesn't completely turn off the shower handle? A small drip, drip, drip can turn into a flooded bathroom. You don't want to find out your home is flooded after you buy it. Another thing that can cause floods is disconnecting refrigerators connected to water and moving out washing machines. Old plumbing the has not been used for a long time can spring leaks. Case Example of a Final Walkthrough Gone Wrong Let's call these clients Angie and Carl. They were a few days away from closing on an adorable California bungalow. This house was owned by a local sportswriter who had been transferred to Phoenix, and the owner left shortly after putting the home on the market. The home inspection went smoothly, and the home inspector did not note any items that required immediate attention. In fact, there was nothing about this situation that was cause for alarm. The day Angie and Carl arrived for the final walk-through, they were advised to turn on all the lights, run water and make sure the stove worked, all those sorts of logical precautions, but these buyers were engrossed in other spur-of-the-moment distractions and "new home" excitement. Instead of listening to their agent's advice, they were discussing their sofa placement and which window treatments they should buy for the living room. Although it is not within my scope to perform a final walk-through for clients, it was apparent that the buyers had no interest and would likely, if given the chance, have waived the final walk-through. I could hear them in the back yard talking about how far the present decking could extend before striking the fence as I wandered around the house turning on water features, and then I hit the handle on the toilet. Flush! All of a sudden Angie screamed. I dashed into the back yard in time to witness a geyser -- water gushing from the ground! And it smelled. If I hadn't depressed the flushing mechanism on the toilet, we would never have had subsequently discovered that the sewer line had tree roots growing in it. The following day we received an estimate of $5,000 to fix it. Since we were a few days away from closing, we had time to withhold that money from the seller's proceeds and order the work completed. Here is a List of Items to Check During the Final Walkthrough Turn on and off every light fixture Run water and check for leaks under sinks Test all appliances Check garage door openers Open and close all doors Flush toilets Inspect ceilings, wall and floors Run garbage disposal and exhaust fans Test heating and air conditioning Open and close windows Make sure all debris is removed from the home When the Home is Occupied During the Final Walkthrough Sometimes sellers don't move out until the day the transaction closes or even a few days after closing. In those situations, I recommend that buyers do a final walk-through in the presence of the seller. Why? Because the seller knows all the little quirks about the home and can answer questions the buyers may have. A good question to ask a seller is: What is the one improvement you've always wanted but never got around to implementing? This is also a good time to ask the seller for a forwarding address so the buyers can send mail. It's smart to stay on good terms with the seller and, in some parts of the country, like California, buyers almost never meet the sellers. Moreover, because you never know when you might need to get in touch with the former owners, the final walk-through is an excellent opportunity, as strange as this may sound, for the parties to say

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A JUDGEMENT LIEN?

What Is a Judgment Lien? A judgment lien is created when someone wins a lawsuit against you and records the judgment against your property. What is your total debt? A judgment lien is a type of nonconsensual lien (a lien that attaches to your property without your agreement). It’s created when someone wins a lawsuit against you and then records the judgment against your property. How Is a Judgment Lien Created? A judgment lien can be imposed on your property only after somebody sues you and wins a money judgment against you. In most states, the judgment creditor (the person or company who won) must then record the judgment by filing it with the county or state. In a few states, a judgment entered against you automatically creates a lien on the real estate you own in that county—that is, the judgment creditor doesn’t have to record the judgment to get the lien. Most holders of unsecured debt—such as credit card balances, medical bills, and personal loans—must get a judgment before they can use more aggressive collection tactics. For instance, a creditor with a money judgment can garnish your wages and drain (levy) your bank account. These practices are often used before the creditor resorts to using the lien to recover property. Types of Property a Judgment Lien Can Attach To Almost all of your property is up for grabs. However, you might be able to protect some of it using an exemption. Judgment liens on real estate. A judgment lien affects real estate you own in the county where the creditor records the lien, or where the court enters the judgment. Selling real estate can be an expensive process, and a creditor won’t pursue this avenue unless you have significant equity in the property. The creditor will only receive the amount remaining after paying off mortgages (and other earlier-in-time liens) and sales costs. Judgment liens on personal property. In many states, a judgment lien also applies to your personal property (property other than real estate). However, judgment liens on personal property are generally ineffective, because most personal property can be protected with an exemption (the owner gets to keep it) or isn’t worth enough to justify the costs of obtaining it. Also, many personal property liens aren’t recorded (although some get recorded with the Secretary of State), so it’s relatively easy to sell it to a third party who has no idea that the lien existed. Judgment liens on vehicles. A judgment creditor can also file a judgment with your state motor vehicles department to get a judgment lien on any car, truck, motorcycle, or another motor vehicle you own. Judgment Liens Can Attach to Later Acquired Property Typically, judgment liens recorded in your county will attach to property that you acquire later. For example, a judgment could be recorded in your county land records office even if you don’t own any real estate. If you buy some real estate a few years later, you’ll discover that it is now burdened by that pesky old lien that was just sitting there, waiting for you to make a move. Most real estate liens expire after a certain number of years (seven to ten in most states), though they can typically be renewed indefinitely. Avoiding Judgment Liens in Bankruptcy You can get rid of some judgment liens in Chapter 7 bankruptcy.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

2018 FALL REAL ESTATE MARKET – MARKET TRENDS

Fall real estate market trends have started to take shape, and now is as good of a time as any to start deciphering them. What’s more, those investors that can get ahead of the correct fall real estate market trends will find themselves in a better position than ever before. It’s true what they say: the housing market really is cyclical. History has taught us that there are typically four cycles the real estate industry adheres to: Recovery, expansion, hyper supply and recession. While there are certainly exceptions, it’s this four stage cycle that we have grown accustomed to. It’s worth noting, however, that not all cycles are created equal. It’s entirely possible for smaller cycles to take place within each cycle. Whereas the order of operations I discussed above could take as long as a decade to complete, there are annual cycles that warrant your consideration as well. Namely, annual cycles can be broken down into the four seasons: Summer, winter, spring and fall. With the page about to turn to fall, it’s time we took a closer look at the summer real estate trends and which ones we expect to continue into the fall. If for nothing else, it’s those investors that can anticipate which fall real estate market trends to expect that will stand the best chance of realizing success in the coming months. It stands to reason that if you have an idea of which way the market is heading that you will have a distinct advantage over those who are otherwise oblivious to this year’s fall real estate market trends. So do yourself a favor and listen to what the market is saying; it just might be the best thing you do in the latter part of the year. Those with an idea of what will transpire in the remaining months of 2017 will notice how easily the scales tip in their favor, which begs the question: Which fall real estate market trends can investors expect to carry over from the summer? FALL REAL ESTATE MARKET TRENDS YOU CAN’T IGNORE Buying a home in fall The summer real estate market saw inventory levels fail to get back to adequate levels, or at least those that could keep up with demand. As a result, it’s safe to assume we won’t see inventory where we want it as early as this fall. Inventory levels, or lack thereof, have persisted to be the real estate market’s bane of existence for the better part of the current recovery. While nearly every fundamental indicator is better off than it was a few short years ago, it’s the amount of available inventory that continues to hold back the U.S. housing market from realizing its true potential. That said, it doesn’t look as if we will see the inventory burden ease before the end of this year. New construction is in the works, but it shouldn’t be ready in time for the fall real estate market. For now, available inventory sits somewhere in the neighborhood of 4.2 months, according to the National Association of Realtors (NAR). As recently as August, national housing inventory would be depleted in as little as 4.2 months if homes continue to be sold at their current pace. What’s more, August’s numbers represent a 0.3 month decline from the same time last year. To put things into perspective, a healthy, balanced market will typically boast six months of available inventory, so we are currently missing about 1.8 months of inventory. There is no doubt about it: inventory hasn’t gotten any better, nor should we expect it to in a matter of months. But what does that mean for investors? For starters, those that have already acquired their next project (or are currently working on one) could see the competition over their impending sale increase dramatically. If for nothing else, a lack of options should place prospective buyers in a position to pay more if they hope to land a house, which is great news for sellers. In fact, it’s entirely possible for this year’s fall real estate market trends to induce more bidding wars than we have seen in recent history; great news for those that already have a deal under their belt. It’s worth noting, however, that there are plenty of investors that will look to buy a home in today’s competitive market as well. And while a lack of inventory will do its best to prevent them from acquiring a house, it’s far from impossible. That said, buying a home amidst expected fall real estate market trends will require a new perspective. For starters, investors looking to buy will have to adjust their criteria. Now is not the time to be picky. Don’t let emotions get in the way of a deal, and let the numbers do the talking. In the event you are presented with a deal in which the numbers will net you a worthwhile profit, you could have a potential candidate. Just know one thing: the same competition that helps sellers will hurt your chances of landing a good deal, but I digress. Increased completion is far from an insurmountable obstacle; it’s simply a minor inconvenience for those that are prepared. I maintain that real estate investing can be incredibly lucrative in any market, even with the fall real estate market trends I expect. While there will be more be competition over fewer house, savvy investors will know how to navigate the waters. More importantly, they will know what to do when the moment comes. If you are heading into the fall real estate market hoping to acquire a home, but are otherwise skeptical of whether or not you will be able to get one at a price you like, don’t worry, there are plenty of strategies you can implement. For starters, recognize that cash is king. Cash payments will almost always be favored by sellers, as they are less likely to fall through and suggest the buyer is serious on following through with their offer — two things that are invaluable to sellers. More often than not, cash offers will beat out loans that need to go through a third-party banks or lending institutions. In addition to cash, I recommend uncovering the seller’s true motivation; for it’s only when you can identify what the seller really wants that you are able to give them it. You would be surprised to find out how many sellers covet things other than money. For instance, a seller could have placed their home on the market because they needed to move yesterday and time is of the essence. If you were able to uncover such a motivation, you would understand how important a timely sale is for the owner in question. What’s more, if you can give them the timeline they desire, you stand a better chance at landing the deal, even with competition as tight as it may be. Don’t let the lack of today’s inventory scare you away from participating in the fall real estate market. Instead, adjust your strategy to keep up with fall real estate market trends. It’s the only way, at least that I am aware of, to keep the odds in your favor. As I already alluded to, a distinct lack of inventory could potentially increase prices. What’s more, fall real estate market trends suggest demand will not take a hit as a result. In fact, we could see demand increase as the year draws closer to an end. Not only is the economy better off than it has been in years past and a larger portion of the Millennial generation prepared to make their first purchase, but changes to some of today’s most prominent economic policies could drive demand up even further. Most notably, propositions have hinted at dismantling the Dodd Frank Act, which could make receiving loan approval much easier for many would-be homebuyers. An additional proposal also hinted at the idea of doubling the standard tax deduction for owning a home. Proposed policies such as these could simultaneously drive up demand and home values, especially with inventory remaining low. But again, what do higher prices mean for today’s investors? Of particular importance, however, is the emphasis I would place on decisiveness. Industry pundits and real estate professionals are of the belief that prices will rise in conjunction with fall real estate market trends. That said, now is not the time to wait for a deal to come along. With prices expected to rise, there’s a good chance the deal you are currently looking at will cost more in one month’s time. Instead of trying to time the market for a better deal, I recommend moving on the deals with prices you are already comfortable with. The longer you wait, the more you are likely to pay. One more thing: the fall real estate market tends to represent a transition from summer to winter. In other words, just as the weather will cool down, so too will activity in the housing market. It’s safe to assume fall real estate market trends will dictate a slower pace, but that doesn’t mean you need to exercise the same tempered expectations. In fact, I recommend ramping up activity to get ahead of your competition. While everyone is taking time off for the holidays, the fall may present an opportunity to get ahead. Increase marketing efforts, establish more relationships, maintain those you already have and do anything you can to usher in 2018 on a high note. Fall real estate market trends will most likely echo their summer counterparts with slightly tempered expectations. That said, those investors that can predict what to expect this fall should find themselves with a significant advantage as the year comes to an end. If you want to stay ahead of the curve, listen to what the market is currently telling us, and you could be in for a great finish to the year. Key Takeaways Fall real estate market trends will most likely echo their summer counterparts with slightly tempered expectations. Those investors with a keen idea of what to expect from the real estate market this fall will have a significant advantage over those that don’t. In accurately predicting the trends that will carry over from summer, investors could find themselves one step ahead of the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE ROLE OF MEDIATION

Real Estate Disputes come in all shapes and sizes. For instance, imagine a dispute where the seller disclosed the basement leaked a half an inch and the realty is the basement fills to 4 feet in the winter. Or the homeowner did not disclose that the septic system is on the neighbors property. The landlord and tenant are fighting over the security deposit. The neighbor thought they were doing their a neighbor a favor, after a winter storm and cut down the 60 foot Ponderosa Pine Tree while the neighbor was absent. The business partners who run a 7 million dollar business and do not have a partnership agreement. The homeowner who does not disclose to the buyer that the sewer backs up 3-4 times per year. The real estate agent orders a well to be dug for a buyer, while the property is in escrow and falls through. The buyer who places a deposit of $50,000 dollars into escrow, and cancels the purchase after waiving all contigencies. The realty is that most real estate transactions are completed with satisfied buyers and sellers. When a dispute (such as those listed above) arises, there are options. In California there is a set of forms from the California Association of Realtors (C.A.R.) that the local real estate community uses. Within those forms there is a provision for dispute resolution called Alternative Dispute Resolution ( ADR). These forms break the dispute down into two components. Mediation and Arbitration. In recent years, our society has seen a dramatic increase in litigation. Turning to the courts to resolve disputes seems to be an almost instinctive reaction these days. However, the sobering reality is that lawsuits can be financially and emotionally draining for the participants, and can even impact our economy over the long-run. While buyers and sellers of real estate usually are able to negotiate away the little disputes that arise in the course of their transactions, sadly those disputes do sometimes end up in lawsuits. Fortunately, there are alternatives to litigation for resolving disputes. Mediation is one such alternative that is growing rapidly in popularity--one that can dramatically reduce the time and cost (both emotional and financial) of resolving disputes. In fact, many real estate contracts, including those published by C.A.R., now require the parties to mediate many disputes that might arise between them. Mediation is the first phase between the parties. Arbitration is an opt-in or opt-out, where the parties agree, approve, or deny. Mediation is the term used to describe a relatively informal form of dispute resolution that occurs outside of the court system. In mediation, the parties to the dispute are assisted by a neutral third person called a mediator. The mediator is not empowered to impose a decision on the parties; instead the mediator facilitates discussions and negotiation between the parties with the goal of assisting them in reaching a mutually acceptable settlement of their dispute. How is mediation different from other dispute resolution processes? To understand how mediation is different from other dispute resolution processes, it is helpful to compare it against the various characteristics of the most common dispute resolution processes in use today: negotiation, litigation, and arbitration. Negotiation is simply the process whereby parties meet to discuss a settlement of their dispute. This can be done face-to-face or through authorized representatives, such as attorneys. Negotiation is usually done outside of the court system and does not have to follow or conform to any formal rules or procedures. Litigation is an adversarial process whereby the parties submit evidence to a judge or jury and then rely on the judge or jury to make and impose a binding decision regarding the dispute. Litigation is governed by formal rules and procedures of court and generally is time consuming and expensive. Since it is adversarial, litigation is in effect a contest in which a winner and loser are selected. Arbitration is similar to litigation in that it is an adversarial process whereby the parties submit evidence to a neutral third person (the arbitrator) who then renders a decision regarding the dispute. However, arbitration is usually private and not conducted in the surroundings, or under the formal rules and procedures, of courts. In order to compel another party to arbitrate a dispute, in most cases the parties must have previously entered into an agreement to arbitrate their disputes. Mediation is different from litigation and arbitration in many respects. Perhaps the most significant difference is that mediation is a non-adversarial process. That is, the parties do not argue their positions and give decision-making power to a third party. Instead, the mediator's role is to assist the parties in achieving a mutually agreeable resolution of their dispute. There is an exemption that is valuable to the local consumer, starting January 1, 2012. The individual parties can turn to their local California Superior Court, Small Claims Division as long as the dispute does not exceed $10,000. Previously this amount was limited to $7,500. This Small Claims process is quick, cost effective, and timely. In addition many small claims courts may have a panel of mediators available to act as a mediator or neutral. As an example the Tuolumne County Superior Court has a active mediation panel for Alternative Dispute Resolution and has a settlement rate close to 90% of cases resolved in mediation. Its best to review the individual programs available with your individual local court. This can be done with a quick phone call to the local County Clerk or checking the website of the individual Superior Court under ADR. How much does mediation cost and who pays for it? The cost of mediation depends on a variety of factors. For example, many government agencies sponsor mediation programs for the public, which are available for free or at a nominal cost. However, there are numerous private mediators and mediation services that provide mediation to the public as well. The cost of private mediation can vary but typically includes an initial filing or processing fee plus an hourly fee for the mediator's services, both of which can vary depending on the mediator or mediation service. Parties contemplating mediation should compare mediation providers and their costs prior to selecting a mediation service. Usually the parties agree to divide mediation costs equally between them. This is the case if a California Association form is used. As to the above example, of a Real Deposit Dispute of $50,000, a mediation can be cheaper than litigation or arbitration. I have settled many disputes where each disputant paid less than $600 each to settle a complex case. Where do I locate mediators and mediation services? Mediators and mediation services can be located by looking in the local telephone directory (e.g., under "Mediation," "Arbitration," or "Dispute Resolution"), by contacting government agencies such as the California Department of Consumer Affairs, or by asking an attorney or a local bar association (association for attorneys) for referrals. In addition, many mediation providers maintain Internet websites. http://www.Mediate.com/ http://www.ADRTimes.com Another way is to do a Google or Yahoo Search under Real Estate Mediation or Real Estate Mediator. What if mediation does not resolve my dispute? While mediation is highly successful, in the event mediation does not resolve a dispute, the parties are free to pursue any other system of dispute resolution available to them. For example, if the parties entered into an arbitration agreement, they could pursue arbitration. In the absence of an arbitration agreement, the parties would likely have to resort to litigation. It should be noted that even if mediation does not resolve the dispute, it is still an effective way of narrowing areas of dispute, allowing the parties to express their feelings, and enabling future proceedings to be more efficient and focused. Why Litigate when you can Mediate? Today the consumer has other alternatives in a real estate dispute to avoid the cost and stress of litigation. Biography Jim W Hildreth is both a private and court appointed mediator, who's specialty is "Real Estate' Disputes. He has over 40 years of experience and is licensed as a Broker in both

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO STATISTICS

The popularity of FSBO seems to be increasing, with Zillow reporting a doubling of FSBO listings between 2012 and 2014 (up to 4%), ForSaleByOwner.com seeing 24% growth in 2013, and StreetEasy reporting NYC FSBO listings increasing by nearly 30% in that same period.[6] According to a 2016 report by the National Association of Realtors (NAR) regarding home buyer and seller trends, Home Buyer and Seller Generational Trends Report 2016, 8% of surveyed real estate transactions between July 2014 and June 2015 were FSBO.[7] The record percentage of 20% of US real estate transactions (since tracking started in 1981) took place in 1987. Some critics of the National Association of Realtors' report believe those statistics may be misleading and suggest that the true size of the U.S. FSBO market is higher than these numbers lead you to believe because flat-fee MLS now makes up 10% of transactions.[8] They argue that flat-fee MLS sellers are in substance FSBO

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT BANKS ARE LOOKING FOR TO GET A HOME LOAN

Are you ready to buy a house, or in the planning stages of a home purchase? Either way, it helps to know what banks look for when they evaluate your loan application. Banks need to make sure you’re likely to repay a home loan according to the terms of your mortgage agreement. In making this assessment, they consider a variety of factors related to your past and present financial situation. What specific financial information will the banks look at? Here are a few items virtually all lenders consider before approving a home loan: 1. Credit Score Also known as your FICO score, this number between 300 and 850 helps banks get a handle on your past credit history. The higher the number, the better. A low credit score tells banks you’re a risky borrower, and it could be harder to receive a loan. How is your credit score calculated? By using a variety of metrics such as: – Payment history. Do you pay off your credit cards every month or carry a balance? Payment history influences your credit score more than any other factor. A history of timely payments will help your score stay high. – Credit utilization. This is the amount of credit you use versus the credit you have available. Let’s say your credit card has a $9,000 limit. A balance of $1,800 indicates 20% utilization while a balance of $8,100 indicates 90% utilization. The former is better for your credit score as 90% utilization suggests you’re too overextended to pay bills on time. – Length of credit history. The longer your history of paying balances and paying back loans, the higher your score is likely to be. Factors such as the number and types of new credit accounts opened also impact your score, albeit to a lesser degree. Check out FICO’s rundown of credit score metrics for more on how your score is calculated. 2. Income As far as banks are concerned, how much money you make isn’t nearly as important as your monthly income with respect to total monthly housing costs. You don’t necessarily need a high income to qualify for a home loan, but your income will influence the loan amount for which you’re approved. To ensure you have sufficient income to cover monthly mortgage payments, lenders will consider your total monthly income from all sources. This total will include salary and bonuses as well as income from dividends and interest. A good rule of thumb is not to purchase property when the monthly mortgage payment, insurance, and property taxes add up to more than one third of your monthly income. Banks are more likely to approve home loans if the monthly payment falls at or below that range. 3. Current Loans Do you have long-term, ongoing debts for things like car payments and student loans? Lenders will look at whether such payments could affect your ability to pay back a mortgage. Having these loans isn’t necessarily a bad thing—especially if you demonstrate a history of timely payments—but banks do want to get a handle on the extent to which the expense already eats into your income. If you don’t have much left over after making those payments each month, it could affect your loan eligibility. 4. Down Payment Percentage Homebuyers ready to put down 20% stand a better chance of receiving a loan. And if you can come up with more than that—even better! Gone are the days of easy, tiny down payments. Banks want you to have significant equity from the get-go, and 20% is generally the standard for proving you’re a serious, capable buyer. You should also learn what escrow is and how it impacts your down payment. Remember: The 2008 financial crisis showed how damaging it can be for banks to extend home loans to borrowers whose ability to repay is suspect. That’s not to say you won’t receive a loan if you can’t put down 20%—you might still be approved—but keep in mind that banks are much more risk averse than they used to be. If you aren’t ready to pay a 20% down payment, there are government insured programs that allow you to pay less up-front. Borrowers can get a Federal Housing Administration (FHA) loan for as little as 3.5% down. FHA loans require the borrower to pay for mortgage insurance, which gives the lender confidence should the borrower default. Getting the Approval Approaching a bank for a home loan means being prepared. An attractive credit history, sufficient income to cover monthly payments, and a sizeable down payment will all count in your favor when it comes to getting an approval. Ultimately, banks want to minimize the risk they take on with each new borrower. Having your finances under control removes a lot of risk from the equation—not just for the banks, but for you as

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A DEED IN LIEU OF FORECLOSURE?

A deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings. The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principal advantage to the borrower is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he/she would in a formal foreclosure. Another benefit to the borrower is that it hurts his/her credit less than a foreclosure does. Advantages to a lender include a reduction in the time and cost of a repossession, lower risk of borrower revenge (metal theft and vandalism of the property before sheriff eviction), and additional advantages if the borrower subsequently files for bankruptcy. If there are any junior liens a deed in lieu is a less attractive option for the lender. The lender will likely not want to assume the liability of the junior liens from the property owner, and accordingly, the lender will prefer to foreclose in order to clean the title. In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction voluntarily and in good faith. The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Sometimes, the lender will not proceed with a deed in lieu of foreclosure if the outstanding indebtedness of the borrower exceeds the current fair value of the property. Other times, lenders will agree since they will end up with the property anyway and the foreclosure process is costly to the lender. Because of the requirement that the instrument be voluntary, lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of such a conveyance from the borrower that specifically states that the offer to enter into negotiations is being made voluntarily. This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement. Both sides may then proceed with settlement negotiation. The Home Equity Theft Prevention Act in New York has created some confusion regarding this frequently-used method of settlement.[citation needed] It is unclear whether HETPA applies to deeds in lieu of foreclosure since there is no clear exclusion as there is for a referee's deed, for example. The 2-year right of rescission is not a risk that banks or title insurers are comfortable with, especially given the complexities of compliance, so many banks and title insurers in New York are not willing to work with deeds in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

3 REASONS WHY IT IS IMPORTANT TO PRICE YOUR HOME TO SELL

3 Reasons Why It’s Important to Price Your Home to Sell The “right” price is one that’s in tune with what similar homes are selling for in your market. It’s a figure that you and the buyer agree accurately reflects the home’s value. If you’re working with a real estate agent, the agent can help you evaluate the market and resist the temptation to overprice your home — or give in to your fears and underprice it. You should listen to what your agent says: You’re better off getting the price right the first time around. Here are three reasons to price your home correctly from the start — and strategies for coming up with the ideal dollar amount, whether you’re doing this on your own or with a seller’s agent: You can attract more buyers Some sellers may be tempted to ask for more than market value — even if they’re willing to accept a lower offer — just to see if there are any takers at the larger number. But this strategy can backfire if sellers price their home out of range of potential buyers. Say your home’s worth $299,000 according to your market research, and you’re willing to sell for that amount. But you list at $315,000 to see if anyone makes an offer at the higher price. A serious buyer may have a budget of $299,000 and so search online listings only for homes priced through $300,000. That buyer may not even see your home unless you lower your asking price. It’s better to price your property right from the start to maximize the number of qualified buyers. You will sell your home faster, for a higher price In a hot market with many buyers, a fairly priced home could receive multiple offers because people recognize it’s a good deal. It may even spark a bidding war that drives the final offer above your asking price. But an overpriced home could scare away some of those buyers, who may think that they’re dealing with an unreasonable seller. You may be willing to sell your house for less, but a buyer may not even bother to make an offer if the home’s overpriced from the start. It’s even worse in a cooler market, one that has few buyers. The home will remain for sale with no takers until the price moves low enough to attract a buyer. And that means the seller is wasting time by offering a home at an artificially high price. If a home doesn’t sell within 30 days, it’s a good indication that it’s not priced right, according to the National Association of Realtors. In addition, research suggests the longer a house stays on the market, the lower its final selling price will be. Sellers may end up making less money than if they’d priced the house correctly when it first listed. Buyers will have more confidence in your property You don’t want to price a home too high, but you don’t want to go too low, either. Then, a potential buyer may wonder if something is secretly wrong with your property. If you offer your home for a fair price, one that’s similar to comparable sales in your neighborhood, a buyer may feel better about the transaction. The buyer may reason that if you’ve done your homework on pricing, you’ve also done your homework on making sure the home is in good

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MISSOURI HOMES VALUES 2016 TO 2017

Missouri home values 2016 to 2017 Metropolitan area Q2 2016($000s) Q2 2017($000s) Change Cape Girardeau, MO-IL 148.8 146.5 -1.5% Columbia, MO 174.6 183 4.8% Kansas City, MO-KS 188.6 201.7 6.9% St. Louis, MO-IL 170.3 174 2.2% Springfield, MO 133.2 137

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

VERY GOOD TIPS FOR FIRST TIME HOME BUYERS

Buying a home can be nerve-racking, especially if you’re a first-time home buyer. These tips will help you navigate the process, save money and avoid common mistakes. We organized them into four categories: Mortgage down payment tips. Mortgage application tips. House shopping tips. First-time home buyer mistakes to avoid. Mortgage down payment tips 1. Start saving for a down payment early It’s common to put 20% down, but many lenders now permit much less, and first-time home buyer programs allow as little as 3% down. But putting down less than 20% may mean higher costs and paying for private mortgage insurance, and even a small down payment can still be hefty. For example, a 5% down payment on a $200,000 home is $10,000. Play around with this down payment calculator to help you land on a goal amount. Some tips for saving for a down payment include setting aside tax refunds and work bonuses, setting up an automatic savings plan and using an app to track your progress. 2. Explore your down payment and mortgage options There are lots of mortgage options out there, each with their own combination of pros and cons. If you’re struggling to come up with a down payment, check out: Conventional mortgages that conform to standards set by the government-sponsored entities Fannie Mae and Freddie Mac, and require as little as 3% down. Federal Housing Administration loans, which permit down payments as low as 3.5%. Veterans Affairs loans, which sometimes require no down payment at all. The amount you put down also affects your monthly mortgage payment and interest rate. If you want the smallest mortgage payment possible, opt for a 30-year fixed mortgage. But if you can afford larger monthly payments, you can get a lower interest rate with a 20-year or 15-year fixed loan. Use our calculator to determine whether a 15-year or 30-year fixed mortgage is a better fit for you. Or you may prefer an adjustable-rate mortgage, which is riskier but guarantees a low interest rate for the first few years of your mortgage. 3. Research state and local assistance programs In addition to federal programs, many states offer assistance programs for first-time home buyers with perks such as down payment assistance, closing cost assistance, tax credits and discounted interest rates. Your county or municipality may also have first-time home buyer programs. Mortgage application tips 4. Determine how much home you can afford Before you start looking for your dream home, you need to know what’s actually within your price range. Use this home affordability calculator to determine how much you can safely afford to spend. 5. Check your credit and pause any new activity When applying for a mortgage loan, your credit will be one of the key factors in whether you’re approved, and it will help determine your interest rate and possibly the loan terms. So check your credit before you begin the homebuying process. Dispute any errors that could be dragging down your credit score and look for opportunities to improve your credit, such as making a dent in any outstanding debts. To keep your score from dipping after you apply for a mortgage, avoid opening any new credit accounts, like a credit card or auto loan, until your home loan closes. 6. Compare mortgage rates Many home buyers get a rate quote from only one lender, but this often leaves money on the table. Comparing mortgage rates from at least three lenders can save you more than $3,500 over the first five years of your loan, according to the Consumer Financial Protection Bureau. Get at least three quotes and compare both rates and fees. As you’re comparing quotes, ask whether any of the lenders would allow you to buy discount points, which means you’d prepay interest up front to secure a lower interest rate on your loan. How long you plan to stay in the home and whether you have money on-hand to purchase the points are two key factors in determining whether buying points makes sense. You can use this calculator to decide whether it makes sense to buy points. 7. Get a preapproval letter You can get pre-qualified for a mortgage, which simply gives you an estimate of how much a lender may be willing to lend based on your income and debts. But as you get closer to buying a home, it’s smart to get a preapproval, where the lender thoroughly examines your finances and confirms in writing how much it’s willing to lend you, and under what terms. Having a preapproval letter in hand makes you look much more serious to a seller and can give you an upper hand over buyers who haven’t taken this step. House shopping tips 8. Hire the right buyer’s agent You’ll be working closely with your real estate agent, so it’s essential that you find someone you get along with well. The right buyer’s agent should be highly skilled, motivated and knowledgeable about the area. » MORE: How to find a good buyer’s agent 9. Pick the right type of house and neighborhood You may assume you’ll buy a single-family home, and that could be ideal if you want a big yard or a lot of room. But if you’re willing to sacrifice space for less maintenance and extra amenities, and you don’t mind paying a homeowners association fee, a condo or townhouse could be a better fit. But even if the home is right, the neighborhood could be all wrong. So be sure to: Research nearby schools, even if you don’t have kids, since they affect home value. Look at local safety and crime statistics. Map the nearest hospital, pharmacy, grocery store and other amenities you’ll use. Drive through the neighborhood on various days and at different times to check out traffic, noise and activity levels. 10. Stick to your budget Look at properties that cost less than the amount you were approved for. Although you can technically afford your preapproval amount, it’s the ceiling — and it doesn’t account for other monthly expenses or problems like a broken dishwasher that arise during homeownership, especially right after you buy. Shopping with a firm budget in mind will also help when it comes time to make an offer. In a competitive real estate market with limited inventory, it’s likely you’ll bid on houses that get multiple offers. When you find a home you love, it’s tempting to make a high-priced offer that’s sure to win. But don’t let your emotions take over. Shopping below your preapproval amount creates some wiggle room for bidding. Stick to your budget to avoid a mortgage payment you can’t afford. » MORE: How to make an offer on a house 11. Make the most of open houses When you’re touring homes during open houses, pay close attention to the home’s overall condition, and be aware of any smells, stains or items in disrepair. Ask a lot of questions about the home, such as when it was built, when items were last replaced and how old key systems like the air conditioning and the heating are. If other potential buyers are viewing the home at the same time as you, don’t hesitate to schedule a second or third visit to get a closer look and ask questions privately. First-time home buyer mistakes to avoid With so much to think about, it’s unsurprising that some first-time home buyers make mistakes they later regret. Here are a few of the most common pitfalls, along with tips to help you avoid a similar fate. 12. Not budgeting for closing costs In addition to saving for a down payment, you’ll need to budget for the money required to close your mortgage, which can be significant. Closing costs generally run between 2% and 5% of your loan amount. You can shop around and compare prices for certain closing expenses, such as homeowners insurance, home inspections and title searches. You can also defray costs by asking the seller to pay for a portion of your closing costs or negotiating your real estate agent’s commission. Calculate your expected closing costs to help you set your budget. 13. Not saving enough for after move-in expenses Once you’ve saved for your down payment and budgeted for closing costs, you should also set aside a buffer to pay for what will go inside the house. This includes furnishings, appliances, rugs, updated fixtures, new paint and any improvements you may want to make after moving in. 14. Buying a home for today instead of tomorrow It’s easy to look at properties that meet your current needs. But if you plan to start or expand your family, it may be preferable to buy a larger home now that you can grow into. Consider your future needs and wants and whether the home you’re considering will suit them. 15. Passing up the chance to negotiate A lot can be up for negotiation in the homebuying process, which can result in major savings. Are there any major repairs you can get the seller to cover, either by fully handling them or by giving you a credit adjustment at closing? Is the seller willing to pay for any of the closing costs? If you’re in a buyer’s market, you may find the seller will bargain with you to get the house off the market. 16. Not knowing the limits of a home inspection After your offer is accepted, you’ll pay for a home inspection to examine the property’s condition inside and out, but the results will only tell you so much. Not all inspections test for things like radon, mold or pests, so be sure you know what’s included. Make sure the inspector can access every part of the home, such as the roof and any crawl spaces. Attend the inspection and pay close attention. Don’t be afraid to ask your inspector to take a look — or a closer look — at something. And ask questions. No inspector will answer the question, “Should I buy this house?” so you’ll have to make this decision after reviewing the reports and seeing what the seller is willing to fix. 17. Not buying adequate homeowners insurance Before you close on your new house, your lender will require you to buy homeowners insurance. Shop around and compare insurance rates to find the best price. Look closely at what’s covered in the policies; going with a less-expensive policy usually means fewer protections and more out-of-pocket expenses if you file a claim. Also, flood damage isn’t covered by homeowners insurance, so if your new home is in a flood-prone area, you may need to buy separate flood

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

INTERSPOUSAL DEEDS VS QUIT CLAIM DEEDS

Interspousal Transfers Versus Quit Claim Deeds There are many ways to accomplish a property transfer, but two of the most common ways to transfer property in a divorce are through an interspousal transfer deed or quit claim deed. Marital status A deed is a written document that legally transfers property from one person or entity to another. Through a deed, one spouse can give his or her own property to the other, and the property becomes the receiving spouse’s separate property. There are many ways to accomplish a property transfer, but two of the most common ways to transfer property in a divorce are through an interspousal transfer deed or quit claim deed. What is an Interspousal Transfer Deed? An "interspousal transfer deed" transfers title (ownership) between a married couple. A gift given by one spouse to the other during the marriage is considered "separate" (owned separately), not "marital" (mutually-owned) property. This is important because through a deed, marital property can become separate property or vice versa, which is an important distinction in a divorce. An interspousal transfer deed can be useful when one spouse has poor credit, and the couple wants to refinance their home. To receive a better mortgage interest rate, the couple may decide to use an interspousal transfer deed to transfer title to their home to the spouse with better credit. Some other examples of circumstances where a couple might use an interspousal transfer deed include the following: one spouse wants to add the other spouse to title of separate property the couple wants to transfer title to property as a result of divorce settlement, and where one spouse must be removed from title for financial or legal reasons. What is a Quit Claim Deed? A "quit claim deed" transfers whatever interest one spouse has in property to the other spouse. An important difference between an interspousal transfer deed and a quit claim deed is that a quit claim comes with no guarantees or promises about property ownership. Some examples of circumstances where a couple might use a quit claim deed include: to transfer title to property as a result of divorce settlement, and where one spouse wants to give up interest in property. When to Use an Interspousal Transfer Deed vs. Quit Claim Deed Interspousal transfer deeds can be used to avoid tax liability when transferring property. When title to property is transferred, the county may impose a transfer tax and may reassess the value of the property which could result in higher property taxes. However, an interspousal transfer deed is a special kind of transfer that is exempt from transfer taxes and ultimately a cost-effective method of transferring property between spouses. Quit claim deeds are very simple and use a form that is easy to find online or at office supply stores. However, with a quit claim deed one spouse may give up rights to certain property but not necessarily liability for any mortgage or lien on the property. A problem could arise if one spouse is awarded the marital home in a divorce and the other spouse uses a quit claim rather than interspousal transfer deed to transfer his or her interest. The spouse that gives up his or her interest to the house may still be responsible for one-half of the mortgage debt because their liability can’t be transferred through a Quit Claim Deed. Preparing a Deed Whichever deed you decide to use, it’s important to make sure that the deed is completed and recorded correctly to be valid. The deed should be completed and must: be in writing list the spouses involved in the transfer identify the property being transferred by address and/or legal description be signed before a notary public, and be recorded in the county where the property is

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

11 QUESTIONS TO ASK IF YOU ARE THINKING FSBO

When the time comes that you decide you want to sell your home, the question you might ask yourself is, “Should I list my home with a Realtor or try to sell it myself?” The choice is yours. However, we wanted to give you 11 questions to ask yourself to help you make an educated decision. Do you have access to accurate data regarding selling prices, square footage, floor plans and amenities of other homes that have sold in your surrounding area within the last 6 months? Do you know how long it has been taking to sell a home in your area? Will you be available to answer phone calls and show your home to prospective buyers? Will you be able to screen prospects to make sure they are qualified (or worse yet, thieves)? Do you have a plan to market your home so people know it’s for sale? Can you handle criticism if negative comments are made about your home? Are you able to negotiate the highest sales price—either on the phone or face-to-face? Do you have access to purchase contracts and all state-required disclosures? Do you know how to obtain title insurance, deeds and any other legal documents needed to transfer ownership? Will you be available to meet appraisers, inspectors and contractors during the process? Do you understand all the fees you will be charged at closing and exactly how much you will end up with?

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

EVERYTHING YOU NEED TO KNOW ABOUT MISSOURI TAX SALES PROCESS

Missouri Tax Sale Process Getting Started Will I need special equipment or software? No. To participate in the auction from your own home or office, you need only have a computer with a supported Web browser installed and Internet access. If you do not have access to a computer or the internet, the County Collector’s office will provide internet. How do I participate in the auction? You must complete two separate registration steps, one with the County Collector and the other with CivicSource, and have both approved prior to the scheduled auction date. Once you have completed registration with CivicSource, have complied with all steps to register with the County Collector and been approved, and added a valid bank account in your CivicSource user account, you will be eligible to participate in the Missouri County’s auction. Is there a fee to register to bid in the auction? No. Registration is free. When can I register for the auction? You can register any time prior to the opening day of the auction, however it is strongly recommended that you complete all required registration efforts with CivicSource and the County Collector by Friday of the week prior to the auction. How do I register for the auction? Once you have finished creating a CivicSource user account, you should next complete registration with the Collector’s Office of the County in whose auction you wish to participate. The recommended steps to properly register are listed below. Additional information if needed is available at Missouri.CivicSource.com. Register on CivicSource.com. On the home page, click “SIGN UP FREE”, which can be found in the top banner of the page. Follow the prompts on the registration page and complete all required steps to set up your CivicSource user account. Continue to the Personal Information page and do the same there. Once you agree to the CivicSource terms, click “COMPLETE.” Register with the County. There are several ways to do this. One is to navigate to the website of the Collector for the County in whose auction you wish to participate. You must register for each County separately. For 2017, CivicSource is hosting the Clay County tax sale. To complete the Clay County bidder registration process, navigate to www.claycountymo.tax/taxsale and under the heading “Register Online,” click the green box labeled “tax sale registration affidavit.” Complete all fields in the affidavit. If you are a Missouri resident or owner of a registered Missouri business, fill out and submit the Missouri resident affidavit pursuant to RSMo. 140.190. If you are not a Missouri resident or registered Missouri business, you will need to appoint a resident of the County in which auction you wish to participate as your agent and complete the affidavit for a non-Missouri agent. Please be advised, these documents are to be completed as if under oath, and is a legally binding statement that must be completely true. As you approach the bottom of the form, you will be given an opportunity to click a link to the 2017 tax sale guidelines. You MUST click and read the guidelines before completing your affidavit. You will be legally responsible for the content of the guidelines, and they will govern the conduct of the sale, and the procedures to obtain a deed. They are based on RSMo. 140.190.2, which you should consider to be fully incorporated therein. Click “Submit” at the bottom of the form. Your application to bid will be automatically submitted to the County Collector’s office for approval. Confirm Your Bidder Application. On CivicSource.com, click on “AUCTIONS” at the top of the screen, then select “All Auctions” from the drop-down menu provided. Next, select “Missouri” under the Location filter on the left-hand side of the screen. Now click on any property listed, regardless of if you have specific interest in that particular property. You will be taken to a details page for the property you clicked. At the top of the property details page, select “Apply Now”. If you have completed all the steps listed, attest to the requirements and terms of the auction, and click “Apply for Approval.” When and how do I find out if my registration application has been approved by the County? Within a relatively short period of time after completing all the above registration steps, you will be notified by the Collector and/or CivicSource as to approval or denial of your application. Is registration help available? Yes, for assistance, you may contact us by toll-free phone call or by email, or contact the Collector’s Office of the County in whose auction you wish to participate. Tax Sale Process When are Missouri tax sales held? For all but a few large counties called “charter counties”, Missouri law mandates that the annual County tax sale be held on the fourth Monday in the month of August, and commence at 10:00 A.M., and continue until all properties are offered or sold, pursuant to RSMo. 140.170.3 and RSMo. 140.190.1. When and where will I be able to view the list of properties that will be offered at the upcoming tax sale? Starting approximately one month before the auction date, the properties offered will be available to view on CivicSource.com. Typically, the list is also available on the website of the County Collector by can be obtained by contacting the Collector’s Office. What am I purchasing at a Missouri tax sale – a "tax lien", "tax certificate" or “tax deed”? In all but one specific exception, what is sold at a Missouri tax sale is most similar to a “tax lien” and is called a “Certificate of Purchase.” At a Missouri tax sale, you are bidding on the right to pay the delinquent taxes on a particular parcel of real estate and obtain the rights to be repaid with interest and with the future right to convert your interest to a deed if the amount you paid at the sale, plus accrued interest and applicable costs is not paid or “redeemed” within the applicable redemption period (see more detail below). The exception to this answer is if you have purchased a “Post-Third” or “Fourth Offering” property, which is actually a deed (“Collector’s Deed”) to the property in accordance with Missouri law. What paperwork is needed to purchase property at the auction? No paperwork is needed to purchase property offered at the auction. However, dual registration with the County Collector and CivicSource as noted above is required to participate. How do I buy a property at tax sale? By placing the highest bid on the property at the conclusion of the auction. Who gets notified about the tax sale? Prior to the tax sale and any publication advertising the tax sale, the County Collector sends notice to the publicly recorded owner of record, first by first class mail, and second by certified mail, although only if the assessed value of the property is greater than $1,000. Section 140.150.2 RSMo. 2013. Typically, these two notices are sent on the same day. If the certified mail notice is returned unsigned, the collector will send out a third notice before the tax sale by first class mail to both the owner of record and the occupant of the property. Section 140.150.2 RSMo. 2010. Many Missouri Collectors also conduct a title search and send first class and/or certified notice to all identified lienholders prior to the tax sale. Does the tax sale get advertised? Yes, prior to the sale, the collector publishes a list of delinquent lands and lots in a newspaper of general circulation within the county. Lists are published once a week for three consecutive weeks prior to the sale with the last insertion at least fifteen days prior to the tax sale date. Section 140.170.1 RSMo. 2008. Can a property be sold at tax sale if the owner is in bankruptcy? No, an active bankruptcy action will “stay” the collection of delinquent taxes. If the debtor is discharged, the delinquent taxes are also discharged and the Collector cannot collect them. If for some reason the bankruptcy action is dismissed, or if the taxes the Collector wished to sell at tax sale became due after the bankruptcy filing date, the Collector can attempt to collect the delinquent taxes. In this instance, a bankruptcy stay would also stop the running of the statute of limitations. Can I purchase more than one property? Yes, you can purchase (become the winning bidder on) as many properties in the sale as you wish. Do I become the owner of the property immediately or is there a waiting period? For “Post-Third” or “Fourth Offering” properties, you become the owner as soon as the Collector issues the Collector’s Deed, the time for which varies from County to County, but happens relatively quickly. For “1st, 2nd or 3rd Offerings”, there is a waiting period called the redemption period before you can take title to the property during which time anyone with an interest in the property has the absolute right to terminate your interest in the property by paying the delinquent taxes sold in the tax sale, subsequent taxes you may have paid, statutory interest and applicable costs. For “1st and 2nd Offering” properties, the redemption period is one year from the date of the tax sale; and for a “3rd Offering”, the redemption period is a minimum of 90 days after mailing the required post-sale interested party notices, but in no event longer than 135 days from the date of the tax sale. See: RSMo. 140.405, RSMo. 140.420, Sneil, LLC v. TYBE Learning Center 370 S.W.3d 562 (2012). How much do I get paid if the tax sale is timely redeemed? The redemption amount will include the starting bid amount for that property at the tax sale (less any post-sale due diligence costs), accrued interest thereon at the rate of 10% per annum (no interest accrues on any overbid or pre-paid, post-sale costs), any subsequent taxes paid by the tax sale purchaser along with interest at the rate of 8% per annum. In addition to these sums, for 1st and 2nd Offerings, all reasonable and customary post-auction due diligence costs incurred after March 1st of the year following the tax sale, and for 3rd Offerings, immediately after the tax sale shall be included in the redemption sum. This redemption sum will be paid to you by the Collector in exchange for a cancelation of your certificate of purchase. See: RSMo. 140.340 and RSMO 140.110.1. How and when will I be notified if a timely redemption is made on a property I purchased at tax sale? Upon deposit of the amount necessary to redeem the property, the collector must mail a notice of deposit for redemption to the purchaser at the last known post office address, or if that is not known, to the address shown for the purchaser on the record of the certificate of purchase. Such notice stops any further interest or penalty payment due the purchaser. Section 140.340.2 and 3 RSMo. Supp. 2008. Why is a property I previously saw as scheduled for the tax sale on CivicSource.com no longer showing up? The County Collector continues to make every effort to collect the delinquent tax from the tax payor up until the time of the auction. If the delinquent taxes are paid, the property is removed from the tax sale. There are other legal reasons the County may no longer be able to sell the property such as when the tax payor files bankruptcy. If you need specific information on a removed property, contact the County Collector’s Office. Can a property be removed from the auction after the auction has started? Yes. The County Collector reserves the right to withdraw from the auction any property listed at any time prior to the closing of the auction. Additionally, properties receiving last minute payments before the auction begins may take a little while before it gets removed from the auction. When this occurs, it will be indicated as such on its full property description and details page. Additionally, if you have marked a property as a "Favorite" or placed a bid on property that is withdrawn from the auction, you will be notified by email. What happens if a property is not sold during the auction? If the property is being offered for the first time (“First Offering”), but fails to sell, it will be reoffered a second time in the following year’s tax sale (“Second Offering”). If the property fails to sell in the second sale, it will be re-offered a third time in the following year’s tax sale (“Third Offering”). If the property fails to sell at the Third Offering sale, it may be offered again as “Post-Third” or “Fourth Offering” sale, which allows the Collector to issue a Collector’s Deed for any amount, regardless of the delinquent taxes. See: RSMo. 140.240, RSMo. 140.250.1, and RSMo. 140.250.3. Bidding Process When: You may bid on all properties only during auction hours. By law, all Missouri tax sale (excluding a handful of large “Charter Counties”) will take place on the fourth Monday in August of each year. The auction must begin at 10:00 A.M. and end once all properties have been offered. Of course, for an online auction, all properties are offered simultaneously at the start of the auction, so a specific end time of the auction is established and advertised. However, auction ending times on CivicSource.com are subject to Sliding Competitive Bidding close times. To emulate a live auction environment and to allow all bidders to have sufficient time to place a competing bid in response to a ‘last minute’ high bid, all CivicSource auctions utilize a “sliding close” end time. This means that if any bids are received in the last FIVE (5) minutes of the scheduled auction ending time, the close of bidding on that one particular property will be extended by FIVE (5) minutes. This process will continue indefinitely until there is a five minute period with no bids. How: All properties in the tax sale are offered for sale and become open for bidding simultaneously upon the start of the auction. Bidding on properties is accomplished via the full property description and details page. To be eligible to participate in the auction, bidders must have completed the registration process with the County Collector and with CivicSource and been approved as a bidder by both and have registered a valid bank account on CivicSource.com prior. Type: This is an open bidding process. Participants will submit bids with knowledge of the amounts of the competing bids. Additionally, if you placed a bid on a property and are outbid, you will be notified by email. Overview: The starting bid at a Missouri tax sale will be the combined amount of the delinquent tax owed on the property, accrued interest, legal penalties, all allowed pre-auction costs, and, if elected by the County Collector, the reasonable and customary costs for required post-auction due diligence performed on the winning bidder’s behalf by the County Collector. If more than one person bids on the property, there is no maximum amount which can be bid, and the property ultimately will be sold to the highest bidder as of the conclusion of the auction. If you are the successful bidder on any property, you must pay the amount of your winning bid immediately after the completion of the sale by ACH transaction from your registered bank account with CivicSource. If you wish to pay by bank wire, contact a CivicSource support representative for further instructions. Winning: The highest bid wins! Winners will only be determined at the conclusion of the auction or extended bidding time for each individual property, if applicable. Questions by Investors Before Purchasing How do I know which properties have been sold? The easiest way is to search on CivicSource.com for the properties in the County and filter your search by “past” auction and “sold” status, then sort the results by most recent first. Are there any hidden costs? No. There are no hidden costs. All components of the tax sale purchase price are itemized on each property details page. Is the price listed correct? Yes. The price listed is on CivicSource.com is correct. Property data on CivicSource.com is synced and updated nightly with the County Collector. How can I view a particular property or selection of properties? Properties can be viewed from the home page or from the property's full description and details page. Questions by Investors After Purchasing When do I need to pay for my purchases? All payments, including wire transfer confirmation, must be made or received immediately upon close of the auction for each property won. See: RSMo. 140.280. What payment methods are accepted? Payment must be made via ACH using a registered bank account or by bank wire. Please call us to arrange a wire transfer. A processing fee will apply per additional wire, if not paying in one installment. See: RSMo. 140.280. Does payment have to be in full or in one installment? Yes. Payment is made by one installment within 1 business day of the close of the auction. Wire transfers may be made in more than one installment, but a fee will apply for each additional installment. What is the refund policy? There are no refunds. All sales are final. When is the sale final? The sale is final upon conclusion of the auction. Do I have to pay for all purchases? What happens if I do not pay for all purchases? Yes. User account will be disabled and you will not be allowed to participate in any future sales. Additionally, if you fail to immediately submit payment in full for your winning bids, your bid may be canceled and offered to the runner-up bidder, or offered again at a future sale. If there is no runner-up bidder, or if the runner-up bidder(s) refuse to accept the bid, the original winning, defaulted bidder is charged a penalty of 25% of his bid to be paid to the school fund by Missouri law. The prosecuting attorney is required to collect the penalty in the name of the collector. Section 140.280 RSMo. Supp. 2008. What happens to the amount of money that was bid over the starting bid price? For properties that sold for a price higher than the starting bid, that amount in excess of the starting bid is considered “surplus funds” and is placed in the county treasury. If the funds are not claimed by the publicly recorded owner or owners, or their legal representatives (persons entitled to such moneys), within three years following the tax sale, the surplus becomes the property of the school fund. The public owners are the ones who owned the property prior to the sale. No interest is paid on surplus receipts. While it is not specified, presumably the three-year period begins to run from the sale date. Section 140.230 RSMo. 2013 and 140.280 RSMo. Supp. 2008, 2010. Do I have to notify the owner or other interested parties that I purchased the property at tax sale? This depends. Missouri law requires a title search and adequate due diligence to determine the interested parties to a property sold at tax sale DURING THE REDEMPTION PERIOD. Depending upon the County in which you are bidding, the Collector may, at his/her discretion, conduct this due diligence on your behalf, although in this event, you must still pay the costs. In Counties where the Collector has NOT opted to conduct the post-sale due diligence on your behalf, you are required to do so in accordance with Missouri law. You are permitted and it is usually strongly recommended to hire professionals experienced with this type of work to conduct these mandatory tasks for you. Despite the foregoing general information, you should obtain legal advice as to your rights and obligations as a tax sale purchaser. Is proof required of the post-sale due diligence work? Yes. Regardless of whether the post-sale due diligence is performed by the Collector, you or any other third-party, an affidavit of compliance detailing all efforts and results of all post-sale due diligence work performed must be filled out, notarized and signed by the third-party agency that conducted the work and the tax sale purchaser. A copy of the title search and copies of the mailings/first class envelopes, must be attached to the affidavit. Section 140.405.5 RSMo. Supp. 2010. Am I responsible for paying the property taxes during the redemptive period? Before being entitled to a Collector's deed, the purchaser must pay all taxes due on the property. See: RSMo. 140.440. You should obtain legal advice as to your rights and obligations as a tax sale purchaser. Do I receive interest upon any post-tax sale statutory impositions paid on the tax sale property, including upon the payment of annual property taxes, if the property is redeemed by the original property owner? Yes. 8% interest accrues on taxes you pay subsequent to the tax sale and during the redemption period. Will I be fully reimbursed for all annual tax property payments and statutory imposition payments made upon the tax sale property if the property is redeemed? The person redeeming the property shall pay the costs incured by the purchaser, including the costs of notice, title search, postage, recording the certificate and the release and all costs of the sale. See: RSMo. 140.340. Can I take physical possession of the property? No. However, not until after the expiration of the applicable redemption period where redemption did not occur. The purchaser has the right to immediate possession one year after the sale date. Section 140.310.1 RSMo. 2000. You should obtain legal advice before taking physical possession of a property purchased at a tax sale. Will I be able to get reimbursed from the tax payor if I made repairs to or paid for any costs of maintenance for the property during the redemption period? No. Improvements made by the purchaser prior to one year after the sale date are not compensable. Section 140.360 RSMo. Supp. 2008. You should obtain legal advice before making repairs and improvements to any property purchased at a tax sale. Do I have to do anything after the redemption period expires? Yes. Pursuant to Section 140.410, RSMo.2015 you must satisfy the requirements to cause a deed to be executed and placed on record in the proper county within eighteen months from the date of said sale. Failure to do so results in the purchaser’s lien for the amount due such purchaser being extinguished. Additionally, while not required by law, if a tax sale purchaser wishes to quiet title, the actions must be commenced within three years from the time the tax deed was recorded, except in cases where the person claiming to own the land is an infant or incapacitated. In those instances, action can be brought anytime within two years after the disability is removed. Section 140.590 RSMo. 2000. You should obtain legal advice as to your rights and obligations as a tax sale purchaser. Will I be reimbursed for improvements made to the property if the previous owner redeems the property? Only in certain instances. See: Can I make repairs and improvements to the property? and Do I have to make repairs to the property? You should obtain legal advice as to your rights and obligations as a tax sale purchaser. When do I get a deed to the property? If the property is not redeemed within the applicable redemption period, upon the production of a valid certificate of purchase, a notarized affidavit of compliance as described above, payment of all subsequent taxes and any remaining tax sale or post-sale due diligence costs or the costs of issuing a deed, the collector shall execute a deed to the purchaser which shall vest the grantee with an absolute estate in fee simple. Subject, however, to all claims for unpaid taxes except such unpaid taxes existing at the time of the purchase of the lands and the lien for which taxes was inferior to the lien for taxes for which said tract or lot of land was sold. Sections 140.250 and 140.420 RSMo. Supp. 2008 (wipes out inferior tax claims). Questions by Owners Before the Sale How do I find out if my property is being offered in a tax sale? A number of ways. You can search for your property on CivicSource.com (you do not need to create a user account or be registered to bid to do this), you can search any lists available on the County Collector’s website, you may contact us or the Collector’s office. Why is my property being sold in the tax sale? Your property is being sold because the County Collector has determined there are past due taxes and/or liens associated with the property. Missouri law permits the Collector to offer the unpaid delinquency for sale to be paid by others so that it can receive those funds and disburse them to the County for annual revenue needed to run the County government. What can I do to keep my property from being sold? You can only prevent your property from being sold at a tax sale if you (1) are a member of the United States military on active duty and notify the collector of your active military status, pursuant to 50 U.S.C. § 561; (2) pay the overdue taxes and/or liens no later than the day before the opening of the tax sale; or (3) file for bankruptcy. Questions by Owners After the Sale How do I find out if my property was sold at tax sale or adjudicated to the City after the tax sale? Please refer to CivicSource.com and enter your property address or tax bill number. What do I need to do to redeem my property if it has been sold at tax sale? To redeem the property, you must pay the amount of the delinquent taxes, interest and costs of the starting bid at the tax sale, interest at the rate of 10% per annum on that amount (no interest accumulates on any pre-paid, post-sale costs or any surplus bidding amount), the amount of any subsequent taxes paid on your behalf along with interest on that amount at the rate of 8%, and post-sale due diligence costs incurred immediately after the auction for “Third Offerings” sales and on or after March 1st of the year immediately following the tax sale for “1st or 2nd Offerings.” How long do I have to redeem my property? You should contact the County Collector’s Office immediately when you find out or if you think your property was sold at tax sale. Depending upon whether the delinquent taxes owed on the property has been offered at a prior year’s tax sale, you may have up to one year, but may have as few as 90 days to complete a redemption and prevent ownership of the property from being taken from you permanently. See: RSMo. 140.115, RSMo. 140.340, RSMo. 140.250.1, and RSMo. 140.250.4 Where do I go to redeem my property if it was sold? You may redeem the property at the office of the tax collector. Do not wait until the last day of the redemptive period to begin the redemption process. Definitions Ad valorem tax (Latin for "according to value") means a tax based on the value of real estate or personal property. Bid means, for the purposes of tax sale, an offer of percent ownership interest to acquire tax sale title to property. Bidder means, for the purposes of tax sale, a person or entity participating in the tax sale auction. Certified funds means a form of payment that is guaranteed to clear or settle by the company certifying the funds. Cookie means, in computing, a small piece of text stored on a user's computer by a web browser. Delinquency means, all real estate upon which the taxes remain unpaid on the first day of January, annually, and which the County Collector is allowed by law to enforce the lien of the State thereon, as required by Section 140 RSMo. Full ownership means possessing clear title to property. Legal advice means the giving of a formal opinion regarding the substance or procedure of the law by an officer of the court, such as an attorney. Open bidding means, for the purpose of tax sale, the ability for competing bidders to see the prevailing winning bid amount. Notice means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form. Redeem means completing a Redemption. Redemption means a statutorily-guaranteed process in which anyone with an interest in the property has the absolute right during the applicable Redemption Period to terminate the interest acquired by the Tax Sale Purchaser in the Tax Sale Property by paying the Total Delinquent Amount Due, plus interest accrued thereon at the rate of 10%, any subsequent taxes paid by the Tax Sale Purchaser, plus interest accrued thereon at the rate of 8%, plus any tax sale costs incurred by the Collector pre-sale, and any allowable post-sale due diligence costs incurred by the Collector and/or the Tax Sale Purchaser, subsequent taxes you may have paid, statutory interest and applicable costs. Redemption period means for properties sold at tax sale as a First and Second Offering, one year beginning the first calendar day after the tax sale, and for properties sold at tax sale as a Third Offering, 90 days from the date the post-sale notices are mailed, but not more than 135 days. Send means either of the following: (a) To deposit in the U.S. Postal Service mail or deliver for transmission by any other commercially reasonable means of communication with postage or cost of transmission provided for, and properly addressed to any address reasonable under the circumstances. (b) In any other way to cause to be received any written notice within the time it would have arrived if properly sent. Tax debtor means, as of the date of determination, the responsible party for payment of the taxes owed on the property. Tax notice party means the tax notice party, the owner of property, including the owner of record at the time of a tax sale, as shown in the conveyance records of the appropriate parish, and any other person holding an interest, such as a mortgage, privilege, or other encumbrance on the property, including a tax sale purchaser, as shown in the official public records of the County in which the property is situated. Tax sale means the annual sale of delinquent taxes owed on real property in a County at public auction with a starting price equal to the Total Delinquent Amount Due and ultimately sold to the highest bidder. Tax sale party means the tax notice party, the owner of property, including the owner of record at the time of a tax sale, as shown in the conveyance records of the appropriate parish, and any other person holding an interest, such as a mortgage, privilege, or other encumbrance on the property, including a tax sale purchaser, as shown in the official public records of the County in which the property is situated. Tax sale property means the real property on which the delinquency being offered in the tax sale is due. Tax sale purchase price means, for the purpose of tax sale, amount of the Winning Bid. Tax sale purchaser means the purchaser of the Total Delinquent Amount Due on a given property at the tax sale. Total delinquent amount due means, for the purpose of tax sale, the total tax, interest, penalties, pre-sale costs and statutory impositions due by the property owner to the political subdivision causing the tax sale title to the property to be offered at sale. Winning bid means, for the purpose of tax sale, the highest bid submitted to pay for the Total Delinquent Amount Due as of the close of the auction for a particular

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHEN TO HIRE A REAL ESTATE LAWYER IN AN FSBO SALE TRANSACTION

Every seller pays for a real estate attorney or title company whether they sell a house with an agent or FSBO. Hire a lawyer to protect your home sale and a title company to coordinate the paperwork. What a Good Lawyer Does for FSBO Sellers There are many, many variables in the real estate sale and purchase process that require you to make decisions: How much should I list my home for? Should I sell my home now, or wait another month? Should I paint my walls white, or buff? You get a break with this one: Don’t just think about hiring a real estate attorney, hire one as soon as you move into the closing phase. There is just too much at stake to risk letting some sort of legal snafu torpedo your sale. Your state might require you to hire an attorney, but even if that’s not the case, don’t skimp on this worthwhile expenditure. An attorney will guide you through the paperwork, ensuring that you are complying with state law every step of the way. Your real estate attorney will also work closely with the title or settlement company and the buyer’s attorney to make sure that the transaction proceeds smoothly. A local real estate attorney is likely to have worked with the title company and opposing attorney on past transactions, making it even more likely that your deal will move forward without complications. The last place you want to be is at the closing table with a professional closer and your buyer’s attorney staring at you and expecting you to respond to a legal question that you are not prepared to answer. You need an experienced advocate on your side to be certain that your interests are always represented. How to Choose a Title Insurance Company Once you’ve hired an attorney, ask her for a recommendation of a title company or settlement agent to hire for your closing. Don’t hire that company before doing research about its costs vs. competitors and reputation in the marketplace. With a real estate attorney recommendation you’ll have a good starting point. Also, title insurance industry practices vary due to differences in state law and local real estate custom. Find out from your attorney what the local practices and customs are in the title business in your local market. In most states, home sellers pay for the owner’s title insurance policy, in effect paying to assure the buyer that the home is really theirs to sell. The fee that the seller pays includes the property search done by the title company and the policy for the new owner. (The buyer typically pays for the policy that protects their mortgage lender). Because the seller is bearing the upfront title search cost, the seller has the right to choose the title

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CAN YOU SUE A SELLER IN MISSOURI FOR FAILURE TO DISCLOSE KNOWN ADVERSE MATERIAL FACTS?

When you bought your home in Missouri, you assumed that it was in perfect condition. But after moving in, you soon realized that the situation was not so perfect. Perhaps when you tried to take a shower, you discovered that there was no hot water on the second floor. Or when you attempted to open the window in the living room, you noticed a massive break in the glass pane, previously unseen behind a decorative screen. Needless to say, the seller never mentioned these issues prior to the sale. Missouri’s nickname is the “Show Me State”—but what exactly did the law require the seller to show, or tell, you? Was the seller obligated to inform you of these obvious problems, and if so, might you be able to recover any of the repair costs from him or her? Real Estate Disclosure Requirements in Missouri Missouri’s legislature has placed certain disclosure obligations on sellers of residential real estate. However, the requirements are somewhat limited. Most states have legislation requiring home sellers to give an extensive written disclosure report to potential buyers. Such reports typically identify all material defects in the property, from a broken oven in the kitchen to a leak in the basement. While your Missouri seller did have to provide you with some information prior to the sale, the seller did not necessarily have to tell you about every single defect in the home—even if the defects were, by other states' standards, "material" or significant. Missouri Rev. Stat. § 442.606 requires that if the property is or was used as a site for methamphetamine production, the seller must disclose that in writing to the buyer. Methamphetamine is a dangerous and illegal stimulant drug sometimes manufactured in homes, often in basements or bathrooms, leading to major toxicity. Sellers would need to disclose this criminal history only if they “had knowledge of such prior methamphetamine production.” Similarly, the Missouri statute requires the home seller to disclose in writing whether the property was the site “[e]ndangering the welfare of a child” through “physical injury.” Again, the seller must only disclose incidents about which he or she is aware. These are highly specific disclosure requirements, but theoretically aim to prevent you from purchasing a home with a sordid criminal history. Beyond these specific requirements, Missouri courts will typically enforce caveat emptor clauses in purchase contracts. Under the doctrine of caveat emptor (“let the buyer beware”), judges ordinarily refuse to compensate buyers for home defects found after the purchase. This situation changes a bit, however, if the seller used a licensed real estate agent to help sell the home. Agents are held to certain standards of honesty under Missouri Rev. Stat. § 339.730.1, which requires that an agent “disclose to any [potential buyer] all adverse material facts actually known or that should have been known by the [agent].” In other words, licensed real estate agents cannot lie to buyers without risking their license. Whether the seller instructed the agent to lie to you about the condition of the home, or whether the agent decided to lie so as to expedite the sale, this conduct is prohibited. For example, imagine that the seller tells the agent that he needs to sell the home quickly because termites are quickly eating through the porch. Obviously, this would be the sort of “adverse material fact” about which the agent would be legally obligated to inform the buyer. Or let's say the agent, through his or her own experience, notices that the window frames show sign of moisture damage. Again, the agent should have spoken up. Even though the agent cannot explicitly lie, the agent still “owes no duty to conduct an independent inspection or discover any adverse material facts for the benefit of the [buyer] and owes no duty to independently verify the accuracy or completeness of any statement made by the [seller] or any independent inspector.” Thus, the seller’s agent does not need to verify his or her observation or knowledge of the property, or perform any sort of inspection. The agent simply cannot lie outright. Potential Remedies Against a Missouri Seller for Failure to Disclose Home Defects You may be thinking that Missouri’s requirements for disclosure sound fairly minimal, and you would be right. The seller is not required by statute to give you an extensive disclosure report outlining every known defect in the home. The agent is only required not to lie to you, and to tell you about any serious defects that he or she actually knows of—even though the agent has no obligation to conduct any sort of inspection to discover such defects. Nevertheless, Missouri law does provide you with some potential causes of action against a seller or agent who failed to inform you about costly defects. First, if you believe that the seller’s agent failed to reveal a defect about which he or she actually knew, you could report that individual to the Missouri Real Estate Commission (MREC). MREC is the state agency charged with licensing and overseeing agents. Even the threat that you might get MREC involved could cause the agent, or the larger real estate agency for which that specific agent works, to come to some sort of agreement with you before you make a formal complaint. Note, however, that it can be very difficult to prove that a real estate agent actually knew about a defect and purposely never told you; the defect would have to be very obvious (in which case questions would no doubt arise as to why you didn't notice it yourself), or you would need to have some evidence that the seller told the agent to lie. You may also have causes of action directly against the seller for fraud or breach of contract. Fraud is a cause of action under Missouri law that arises where one party made a knowingly false statement in order to induce another party to take an action. Imagine that the seller told you that termites in the home had already been exterminated. You buy the home on the basis of that representation. However, you soon discover that it was a lie; there are still termites, and the seller had made no efforts to eradicate them. This is fraud. Similarly, you may have a breach of contract cause of action against the seller if the language of your purchase contract made certain guarantees. For example, your purchase contract might specifically state that the cracked windows would be replaced before the closing. If the seller failed to do this, then the seller has breached the contract. By definition, you did not get what you paid for when you bought the property. You would be entitled to monetary damages to cover the costs of upgrading the windows, which is precisely what you had bargained for. In short, Missouri offers only limited protections to buyers of residential real estate. However, if you believe that you have found some nasty undisclosed defects, you should consider meeting with a Missouri real estate attorney who can advise you on an effective strategy to recover your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MILLENIALS ARE GIVING UP ON PURCHASING A HOME

Redfin CEO Glenn Kelman has been known for making some strong statements about the housing market, and last week he issued his latest proclamation, warning of a slowdown that is beginning to develop across the country, even more so in expensive markets like Seattle and San Francisco. Kelman, on the company’s quarterly earnings call with investors, said he expects sales to decline in August and September over figures from a year ago. Not only is a consistently low supply of homes for sale to blame, but frustrated buyers tired of getting beaten out on offer after offer are deciding to sit out. What’s striking about this change is that it seems to have been driven by dissident demand from homebuyers, not just a low supply of homes for sale. Nationwide, there were still 5 percent fewer homes for sale in July 2018 than in July 2017. But in Seattle, Portland and San Jose where prices have increased the most, the percentage of homes selling in the first two weeks on the market declined in June from 61 percent to 52 percent. And the percentage of listings that dropped their prices increased from 31% to 33%. June sales were down in these markets by double-digits and inventory was up also by double-digits. The trend is continuing in July and reports are now coming in from Washington D.C., Boston, Virginia and parts of Chicago as well, that homes there are getting harder to sell. As U.S. home prices have increased faster than wages for 70 straight months, buyers in markets like these have finally had enough, at least for now. There are still plenty of markets where homebuyer demand is strong. But for the first time in years, we are getting reports from managers of some markets that homebuyer demand is waning, especially in some of Redfin’s largest markets. Kelman added that in July the percentage of homes nationwide that sold above list price declined on an annual basis for the first time since March 2015. In addition to the slowing home market, Kelman took the wind out of investors sails, lowering the company’s targets for revenue and profits in the next quarter. Redfin’s stock then went into free fall, dropping 25 percent by end of day Friday to the lowest price since its 2017 IPO with slight up and down movements Monday morning. The slowing real estate market comes as the company is doubling down on its direct home sales business, Redfin Now. Kelman said that the company is making Redfin Now a permanent part of its long-term strategy. As Redfin Now expands to more markets the company is being “very beady-eyed about which homes Redfin Now buys,” with the potential of a slowdown looming. Redfin is in a unique position to see the trends on the horizon in the housing market, with a huge network of agents in a variety of markets and lots of sales data. Kelman noted that this trend has only taken hold recently, with sales in three out of the last four weeks slowing dramatically, though still rising over a year ago. But what’s different is that if your real estate agents saying, I put a home on that normally would have sold in a week, and it’s still on the market a month later. I expected to get eight competing offers, I got one and it was below the asking price. And then when you look at the data to see if that supports the anecdote, it does, and this is a nuance point. But days on market isn’t changing that much that how long sold homes take to sell. But the percentage of listings to sell within two weeks is decreasing. What that means is that for the homes that sell, they’re still selling reasonably fast, but more and more there are homes that we thought would sell that don’t. And I would say that’s concentrated in some of our larger markets. One of the things that we’re sensitive to is whether this is a decline in the overall sales volume in the United States or a shift. So for example, if Seattle or San Francisco has just gotten too expensive and now everybody’s buying in Phoenix and Denver, that doesn’t really affect U.S. sales volume. And we think some of that is happening, a place like Pittsburgh still has strong sales growth. But we also think that there is probably going to be a slowdown in U.S. sales growth, if not a reversal in August or September. And there’s a case to be made that the whole market will get better there’s a case to be made that it won’t. I’m not presenting this as a fact, but if you want to know what we think is the most likely outcome that’s our view of it. Local reports bear out Kelman’s observations. The Northwest Multiple Listing Service reported earlier this month that the “days of multiple offers are days of the past.” Inventory was up in July, while pending and closed sales are down on annual basis. NWMLS doesn’t mention frustrated buyers sitting out, but the numbers show that might be the case in Seattle. Should these buyers see the news of a slowdown and decide to jump back into the market, this trend could be but a blip as inventory still remains 38 percent below historical averages across the U.S. Kelman said. As the clock continues to tick forward, millennial buyers will make up an even greater share of the market. The struggles faced by the generation, in addition to the challenging housing situation suggests a need for major changes to the market. “The postwar explosion in new construction and transit infrastructure to accommodate baby boomers hasn’t happened for millennials, who are coming of home-buying age with lower wage growth, higher credit, more congested roads and more student debt than previous generations,” Kelman said. “This younger generation of would-be homebuyers is bewildered, many are living in their parents basement. Until the market becomes more balanced, it will take longer and be harder for these folks to find a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

ZILLOW SHARES FALL 9% ON NEWS THAT IT PLANS TO START SELLING ITS OWN HOMES OFF OF THE PLATFORM

Zillow shares plunged 9 percent on Friday after the online real estate database company announced it will begin buying and selling homes, a capital-intensive endeavor. With Zillow's new program,announced on Thursday, home sellers in the test markets of Phoenix and Las Vegas will be able to use Zillow's platform to compare offers from potential buyers — and Zillow. When Zillow purchases a home, it will aim to quickly flip the home, making updates and repairs and listing it as soon as possible. An agent will represent Zillow in each transaction. "We're entering that market and think we have huge advantages because we have access to the huge audience of sellers and buyers," Zillow CEO Spencer Rascoff said on CNBC's“Squawk Alley.”"After testing for a year in a marketplace model, we're ready to be an investor in our own marketplace." But investors are less enthusiastic. Flipping homes, a model that's being utilized by start-up Opendoor, is very different than operating an internet marketplace. It carries additional risk associated with buying and selling homes and requires a hefty investment in operations. And it also potentially puts Zillow in direct competition with the realtors on its platform. Zillow sank $5, or 9.3 percent, to $48.77 as of mid-day on Friday, knocking more than $900 million off its stock market value. "This is a business model that to date has been all advertising revenue driven, which is high gross margin," said Mark Mahaney, an analyst at RBC Capital Markets who has a "buy" rating on Zillow. "And now there's this pivot into this other category which has balance sheet risk and it has much lower margins and is in an uncertain housing environment," Mahaney said on CNBC's“Squawk on the Street.” Zillow house flipping pivot makes a lot of sense, says analysts. In May 2017, Zillow announced the launch of Instant Offers, which enables home sellers in the Las Vegas and Orlando test markets to get cash offers from potential investors on Zillow's platform. The company said homeowners prefer the process, and that most of them who requested an Instant Offer ended up selling their home with an agent. "Home sellers welcome a hassle-free experience selling your home without decluttering your garage or taking the kids out of the house," Rascoff said. Rascoff said the company will take on collateralized debt to purchase the homes, and hopes to have between 300 and 1,000 homes held for sale by year's end. He called the move "industry friendly," benefiting buyers, investors and agents. He also said it could help stimulate the real estate market and open up new inventory for prospective buyers. `Unstick people' “There are people that are basically stuck in their home that would love to go buy another home, but can't sell," Rascoff said. "This could provide the ability to unstick people from their homes.” Mahaney said that it will help Zillow test how much the real estate market is turning. “This is an interesting experiment on the company's part," Mahaney said. "They've reached the point of scale with both real estate agents and with consumers. There are data points in the market that suggest this way of buying and selling homes is really starting to gain traction.” The program will start this year in Phoenix and Las Vegas. Zillow didn't say when it will expand into other

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO STATISTICS

For Sale By Owner (FSBO) Statistics FSBOs accounted for 8% of home sales in 2016. The typical FSBO home sold for $190,000 compared to $249,000 for agent-assisted home sales. FSBO methods used to market home: Yard sign: 35% Friends, relatives, or neighbors: 24% Online classified advertisements: 11% Open house: 15% For-sale-by-owner websites: 8% Social networking websites (e.g. Facebook, Twitter, etc.): 13% Multiple Listing Service (MLS) website: 26% Print newspaper advertisement: 5% Direct mail (flyers, postcards, etc.): 4% Video: 2% None: Did not actively market home: 28% Most difficult tasks for FSBO sellers: Getting the right price: 15% Understanding and performing paperwork: 12% Selling within the planned length of time: 13% Preparing/fixing up home for sale: 9% Having enough time to devote to all aspects of the sale:

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE STATISTICS

Overview of the Real Estate Market 5.51 million existing homes were sold in 2017, according to data from the National Association of REALTORS®. 612,000 newly constructed homes were sold in 2017, according to the U.S. Census Bureau The Association of Real Estate License Law Officials (ARELLO)(link is external)estimates that there are about 2 million active real estate licensees in the United States. According to the 2012 Economic Census, there are 86,004 real estate brokerage firms operating in the United States. Preliminary results from the U.S. Energy Information Administration’s Commercial Buildings Energy Consumption Survey show that there were 5.6 million commercial buildings in the United States in 2012, comprising 87.4 billion square feet of floorspace. There are approximately 115 million occupied housing units in the United States, according to the 2013 American Housing Survey. The typical owner-occupied home was built in 1976; the typical renter-occupied home was built in 1973. The typical home size is 1,500 square feet. The typical homeowner is 55 years old, and has lived in the current home for 14 years. In 2016, 63.7 % of families owned their primary residence, according to the Federal Reserve’s Survey of Consumer Finances. NAR Membership Statistics Members to date:1,334,668 as of July 2018 Number of local associations:1,165 as of January 2018 REALTOR® Demographics 65% percent of REALTORS® are licensed as sales agents, 21% hold broker licenses, and 15% hold broker associate licenses. The typical REALTOR® is a 54 year old white female who attended college and is a homeowner. 63% of all REALTORS® are female, and the median age of all REALTORS® is 54. Real estate experience of all REALTORS® (median): 10 years Median tenure at present firm (all REALTORS®): 4 years Most REALTORS® worked 40 hours per week in 2017. The median gross income of REALTORS® was $39,800 in 2017, a decrease from $42,500 in 2016. Formal education of REALTORS®: Some college: 30% Bachelor's degree: 30% Graduate degree and above: 13% Associate degree: 13% Some graduate school: 6% High school graduate: 8% REALTOR® affiliation with firms: Independent contractor: 86% Employee: 5% Other: 9% Source:2018 National Association of REALTORS® Member Profile Statistics on REALTORS® and Technology 27% of agents and 21% of brokers spent between $501 - $2,000 on technology in the last 12 months. The top three tools that respondents plan on purchasing or replacing in the next year are: iPad (16%); Smartphone (15%); and digital camera (12%). The most frequently used operating system is Windows 7 (38%). The most popular smartphones are iPhone (52%), Android OS (45%), Blackberry (3%). 91% of REALTORS® use social media to some extent. The top places where REALTORS® place their listings arerealtor.com®, Zillow and Trulia. Source:2013-2014 REALTOR® Technology Survey Home Buyer Statistics First-Time vs. Repeat Buyers: First-time buyers: 34% Median age of first-time buyers: 32 Median age of repeat buyers: 54 Median household income of first-time buyers: $75,000 Median household income of repeat buyers: $97,000 The typical home purchased was 1,870 square feet in size, was built in 1991, and had three bedrooms and two bathrooms. Among those who financed their home purchase, buyers typically financed 90% of the home price. 87% of buyers purchased their home through a real estate agent or broker—a share that has steadily increased from 69 percent in 2001. Buyers who would use their agent again or recommend their agent to others: 89% Where buyers found the home they purchased: Internet: 51% Real estate agent: 30% Yard sign/open house sign: 7% Friend, relative or neighbor: 6% Home builder or their agent: 5% Directly from sellers/Knew the sellers: 2% Print newspaper advertisement: Less than 1% Source: 2017 National Association of REALTORS® Profile of Home Buyers and Sellers 78% of home buyers surveyed in NAR’s2013 Community Preference Surveyresponded that neighborhood quality is more important than the size of the home. 57% would forego a home with a larger yard in favor of a shorter commute. NAR’s 2013 Profile of Buyers’ Home Feature Preferences found that the feature that had the highest dollar value buyers were willing to pay more for was a waterfront property. 53% of home buyers undertook a home improvement project within 3 months of buying, typically spending $4,550 in improvement projects. Home Seller Statistics The typical home seller in 2016 was 55 years of age, had a median household income of $103,300, and lived in their home for 10 years. 89% of sellers were assisted by a real estate agent when selling their home. Recent sellers typically sold their homes for 99% of the listing price, and 22% reported reducing the asking price at least once. The typical home sold was on the market for 3 weeks. 41% of sellers who used a real estate agent found their agents through a referral by friends or family, and 23% used the agent they previously worked with to buy or sell a home. Sellers who definitely would use same agent again: 67% Source:2017 National Association of REALTORS® Profile of Home Buyers and Sellers For Sale By Owner (FSBO) Statistics FSBOs accounted for 8% of home sales in 2016. The typical FSBO home sold for $190,000 compared to $249,000 for agent-assisted home sales. FSBO methods used to market home: Yard sign: 35% Friends, relatives, or neighbors: 24% Online classified advertisements: 11% Open house: 15% For-sale-by-owner websites: 8% Social networking websites (e.g. Facebook, Twitter, etc.): 13% Multiple Listing Service (MLS) website: 26% Print newspaper advertisement: 5% Direct mail (flyers, postcards, etc.): 4% Video: 2% None: Did not actively market home: 28% Most difficult tasks for FSBO sellers: Getting the right price: 15% Understanding and performing paperwork: 12% Selling within the planned length of time: 13% Preparing/fixing up home for sale: 9% Having enough time to devote to all aspects of the sale:

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – PROBLEMS TO LOOK OUT FOR

How to Sell Your House Without a Realtor You’re ready to put your house on the market, and you’ve decided to go it alone. Are you really saving money? By far, the most common reason for someone to try to sell a house without aRealtoris to save money by avoiding a commission fee. “This is a very valid reason,” saysDeb Agliano — Re/Max Andrew Realtyin Medford, Massachusetts. “The problem is, buyers know the seller isn’t paying a commission, so they take that into consideration and make a lower offer.” Like any other real estate transaction, the final sale price, and who pays for any commission, a home warranty and closing costs are all negotiable. Sellers without an agent need to be savvy in order to come out on top. According to the National Association of Realtors, in 2014 the average For Sale By Owner home sold for $210,000 versus $249,000 for a home sold by a real estate agent. “In most cases, people think they won’t pay any commission at all,” says Jason Bowman ofThe Jason Bowman Team at Re/Max Elitein Mason, Ohio. “But if the buyer has an agent, you’ll have to pay their 3 percent commission. And the fundamental problem is, the buyer’s agent represents the best interest of the buyer — and you wouldn’t know the difference because you’re not entrenched in the business every day.” In the hunt for a new house, K. Lee Tumlinson Jr., of Peyton, Colorado, wanted to buy a FSBO property. He says he’s thankful his real estate agent, Ami Quass, was willing to tackle the extra paperwork produced by a seller who was unsure of the process. “The Realtor ends up having to represent both parties, once both parties agree to start working a deal,” he says. “Which means the Realtor ends up having to be not only the buyer’s Realtor, but also has to accomplish work that normally a seller’s Realtor would do. The seller agreed to pay commission.” Selling your house yourself requires meticulous attention to details in order to obtain the optimum price and avoid litigation after the sale. Do you really have the time? It’s after dinner — you’re curled up on the couch watching TV, and there’s a knock at the door from a potential buyer (or maybe just a nosey neighbor?). Is it safe? Is it legitimate? How would you know? “Does a potential seller really want to answer calls or a knock on their front door from complete strangers and invite them into their home for a look?” asks RealtorDeborah Colmanin Folsom, California. “An experienced agent will meet with and pre-screen a potential buyer prior to showing homes. The agent will also ensure that buyer is preapproved for the price range in which they’re looking.” Safety and privacy are also points to consider when you’re selling a house without a real estate agent. “Realtors have sophisticated tracking devices when monitoring your home during a sale process,” saysJonathan D. Reed of Fairfax Realtyin Fairfax, Virginia, noting that any agent showing a home must seek permission, schedule an appointment and obtain a unique security code to access the house. “A Realtor can screen visitors to your home, and follow-up with clients who have toured the home.” Do you pay attention to details? “The list for potential mistakes is huge,” says Realtor Erick Monzo ofKeller Williams — The Monzo Groupin St. Clair Shores, Michigan. “Unless you know how to read closing documents, fill out purchase agreements, and calculate the true value of a property. Every state has different laws and regulations in regard to real estate transactions. I believe the scariest mistake is not crossing your T’s and dotting your I’s — you leave yourself open to future litigation.” Diament agrees, and says the biggest mistake For Sale By Owners make is underestimating the complexity involved during the entire process. “I’ve heard lots of stories of deals falling apart after the buyer and seller have agreed on the terms, but then financing collapses,” she says, noting that a Realtor’s job is to pay attention to the details at every step along the way. “The general public isn’t aware of all that is involved to get a home ready to sell,” Colman says. “They don’t see all that’s involved in shepherding a transaction to a successful conclusion, including the many deadlines, dozens of mandatory documents, hundreds of emails and phone calls. It’s a full-time job.” How to Hire a Good Realtor Dear Angie: How can I select a good Realtor? What questions should I ask to get one that is reliable and honest? – Frank K., Arlington, Texas Can you spot a scam? Or perhaps, are you cognizant enough in real estate to recognize if someone is taking advantage of you? “Buyers feel they may be able to leverage a better price and or incentives for the home because the seller often lacks the skills and knowledge to negotiate,” Reed says. “Most buyers employ an agent to represent them and would have the agent’s experience on their side.” Monzo says For Sale By Owner properties also tend to attract the seasoned investor looking for a great deal. “That FSBO sign in your front yard screams ‘I’m desperate and gullible,’” he says. “The advantage of looking for FSBO’s is to take advantage of them.” After spending several weeks searching for a new home in Las Vegas, TaChelle Lawson stumbled across a property listed For Sale By Owner on Craig’s List. Working with real estate agent Dina Cochran — Realty One, Lawson says she got the house for a steal. “Simply put, the seller really had no idea about selling a home,” she says. “I was able to buy it for less because I don’t think the seller understood what the home was worth, and was also very anxious to sell. I personally would never list a home without a Realtor. There’s a lot I just don’t know and they do.” Will you end up hiring a Realtor anyway? According to NAR, For Sale By Owner properties accounted for 8 percent of home sales in 2014. Oftentimes, homeowners unsuccessful at selling their homes will seek out the professional services offered by a real estate agent. “I’ve been approached by several individuals after they tried themselves for months to sell their home,” says agentMichael Winslow - Blue Picket Realtyin Colorado Springs, Colorado. “They were tired of entertaining strangers knocking on their door and calling at all hours of the day and night, and weary of not being able to encourage those potential buyers to prove their financial ability. Not to mention trying to navigate the necessary disclosures, contracts and closings.” Hiring a Realtor with a history of proven success can offer you peace of mind that any real estate transaction will be handled with the utmost professionalism. “Selling a home is a complex process with many pitfalls, which can mean either receiving less money or potential legal liability or both,” Agliano says. “Working with a good real estate agent helps you overcome these issues so you net more money and won’t worry about problems coming back to you after the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT ARE THE SERVICES OF A REAL ESTATE BROKER?

Types of services that a broker can provide Real Estate Services are also called trading services by some jurisdictions. Since each province's and state's laws may differ, it is generally advised that prospective sellers or buyers consult a licensed real estate professional. Some examples: Comparative Market Analysis (CMA) — an estimate of the home's value compared with others. This differs from an appraisal in that property currently for sale may be taken into consideration. (competition for the subject property) Total Market Overview — an objective method for determining a home's value, where a CMA is subjective. Broker's Price Opinion — estimate of a property's value or potential selling price Real estate appraisal — in most states, only if the broker is also licensed as an appraiser. Exposure — Marketing the real property to prospective buyers. Facilitating a Purchase — guiding a buyer through the process. Facilitating a Sale — guiding a seller through the selling process. FSBO document preparation — preparing necessary paperwork for "For Sale By Owner" sellers. Home Selling Kits — guides advising how to market and sell a property. Hourly Consulting for a fee, based on the client's needs. Leasing for a fee or percentage of the gross lease value. Property Management Exchanging property. Auctioning property. Preparing contracts and leases. (not in all states) These services are also changing as a variety ofreal estate trendstransform the industry. Real estate brokers and sellers Services provided to seller as client Upon signing a listing contract with the seller wishing to sell the real estate, the brokerage attempts to earn a commission by finding a buyer for the sellers' property for the highest possible price on the best terms for the seller. In Canada, most provinces' laws require the real estate agent to forward all written offers to the seller for consideration or review. To help accomplish the goal of finding buyers, a real estate agency commonly does the following: Lists the property for sale to the public, often on an MLS, in addition to any other methods. Provides the seller with a real property condition disclosure (if required by law) and other necessary forms. Keeps the client abreast of the rapid changes in the real estate industry, swings in market conditions, and the availability and demand for property inventory in the area. Prepares necessary papers describing the property for advertising, pamphlets, open houses, etc. Places a "For Sale" sign on the property indicating how to contact the real estate office and agent. Advertises the property, which may include social media and digital marketing in addition to paper advertising. Holds an open house to show the property. Serves as a contact available to answer any questions about the property and schedule showing appointments. Ensures that buyers are pre-screened and financially qualified to buy the property. (Sellers should be aware that the underwriter for any real estate mortgage loan is the final say.) Negotiates price on behalf of the sellers. Acts as a fiduciary for the seller, which may include preparing a standard real estate purchase contract. Holds an earnest payment cheque in escrow from the buyer until the closing if necessary. In many states, the closing is the meeting between the buyer and seller where the property is transferred and the title is conveyed by a deed. In other states, especially those in the West, closings take place during a defined escrow period when buyers and sellers each sign the appropriate papers transferring title, but do not meet each other. Guards the client's legal interests (along with the attorney) when facing tough negotiations or confusing contracts. The listing contract Several types of listing contracts exist between broker and seller. These may be defined as: Exclusive right to sell The broker is given the exclusive right to market the property and represents the seller exclusively. This is referred to asseller agency. However, the brokerage also offers to cooperate with other brokers and agrees to allow them to show the property to prospective buyers and offers a share of the total real estate commission. Exclusive agency Exclusive agency allows only the broker the right to sell the property, and no offer of compensation is ever made to another broker. In this case, the property will never be entered into an MLS. Naturally, this limits the exposure of the property to only one agency. Open listing The property is available for sale by any real estate professional who can advertise, show, or negotiate the sale. The broker/agent who first brings an acceptable offer would receive compensation. Real estate companies will typically require that a written agreement for an open listing be signed by the seller to ensure payment of a commission if a sale takes place. Although there can be other ways of doing business, a real estate brokerage usually earns its commission after the real estate broker and a seller enter into alisting contractand fulfill agreed-upon terms specified within that contract. The seller's real estate is then listed for sale. In most of North America, a listing agreement or contract between broker and seller must include the following: starting and ending dates of the agreement; the price at which the property will be offered for sale; the amount of compensation due to the broker; how much, if any, of the compensation will be offered to a cooperating broker who may bring a buyer (required for MLS listings). Net listings: Property listings at an agreed-upon net price that the seller wishes to receive with any excess going to the broker as commission. In many states including Georgia, New Jersey and Virginia net listings are illegal, other states such as California and Texas state authorities discourage the practice and have laws to try and avoid manipulation and unfair transactions. Brokerage commissions In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving acommissionfor the services the brokerage has provided. Usually the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. The median real estate commission charged to the seller by the listing (seller's) agent is 6% of the purchase price. Typically, this commission is split evenly between the seller's and buyer's agents, with the buyer's agent generally receiving a commission of 3% of the purchase price of the home sold. In North America, commissions on real estate transactions are negotiable and new services in real estate trend shave created ways to negotiate rates. Local real estate sales activity usually dictates the amount of agreed commission. Real estate commission is typically paid by the seller at the closing of the transaction as detailed in the listing agreement. RESPA Real estate brokers who work with lenders may not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as theReal Estate Settlement Procedures Act(RESPA). Commercial transactions are exempt from RESPA. All lender compensation to a broker must be disclosed to all parties. A commission may also be paid during negotiation of contract base on seller and agent. Lock-box With the seller's permission, alock-boxis placed on homes that are occupied, and after arranging an appointment with the homeowner, agents can show the home to prospective buyers. When a property is vacant, a lock-box will generally be placed on the front door. The listing broker helps arrange showings of the property by various real estate agents from all companies associated with the MLS. The lock-box contains the key to the door of the property, and the box can only be opened by licensed real estate agents. Shared commissions with co-op brokers If any buyer's broker or his agents brings the buyer for the property, the buyer's broker would typically be compensated with a co-op commission coming from the total offered to the listing broker, often about half of the full commission from the seller. If an agent or salesperson working for the buyer's broker brings the buyer for the property, then the buyer's broker would commonly compensate his agent with a fraction of the co-op commission, again as determined in a separate agreement. A discount brokerage may offer a reduced commission if no other brokerage firm is involved and no co-op commission paid out. If there is no co-commission to pay to another brokerage, the listing brokerage receives the full amount of the commission minus any other types of expenses. Real estate brokers and buyers This section possibly contains original research. Please improve it by verifying the claims made and adding inline citations. Statements consisting only of original research should be removed. This section does not cite any sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. Services provided to buyers Buyers as clients With the increase in the practice ofbuyer brokeragesin the United States, agents (acting under their brokers) have been able to represent buyers in the transaction with a written "Buyer Agency Agreement" not unlike the "Listing Agreement" for sellers referred to above. In this case, buyers are clients of the brokerage. Some brokerages represent buyers only and are known as exclusive buyer agents(EBAs).Consumer Reports states, "You can find a true buyer's agent only at a firm that does not accept listings."[11]The advantages of using an Exclusive Buyer Agent is that they avoid conflicts of interest by working in the best interests of the buyer and not the seller, avoid homes and neighborhoods likely to fare poorly in the marketplace, ensure the buyer does not unknowingly overpay for a property, fully inform the buyer of adverse conditions, encourage the buyer to make offers based on true value instead of list price, and work to save the buyer money. A buyer agency firm commissioned a study that found EBA purchased homes were 17 times less likely to go into foreclosure. A real estate brokerage attempts to do the following for the buyers of real estate only when they represent the buyers with some form of written buyer-brokerage agreement: Find real estate in accordance with the buyers needs, specifications, and cost. Take buyers to and shows them properties available for sale. Pre-screen buyers to ensure they are financially qualified to buy the properties shown (or use a mortgage professional, such a bank's mortgage specialist or alternatively a Mortgage broker, to do that task). Negotiate price and terms on behalf of the buyers. Prepare standard real estate purchase contract. Act as a fiduciary for the buyer. Find real estate in accordance with the buyers' needs, specifications, and affordability. When deemed appropriate, prescreen buyers to ensure they are financially qualified to buy the properties shown. Assist the buyer in making an offer for the property. Due to the importance of the role of representing buyers' interests, many brokers who seek to play the role of client advocate are now seeking out the services of Certified Mortgage Planners, industry experts that work in concert with Certified Financial Planners to align consumers' home finance positions with their larger financial portfolio(s). Buyers as customers In most states until the 1990s, buyers who worked with an agent of a real estate broker in finding a house were customers of the brokerage since the broker represented only sellers. Today, state laws differ. Buyers and/or sellers may be represented. Typically, a written "Buyer Brokerage" agreement is required for the buyer to have representation (regardless of which party is paying the commission), although by his/her actions, an agent can create

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE AGENCY RELATIONSHIPS

Agency relationships with clients versus non-agency relationships with customers Relationship: Conventionally, the broker provides a conventional full-service, commission-based brokerage relationship under a signed listing agreement with a seller or a "buyer representation" agreement with a buyer, thus creating under common law in most states an agency relationship with fiduciary obligations. The seller or buyer is then a client of the broker. Some states also have statutes that define and control the nature of the representation. Agency relationships in residential real estate transactions involve the legal representation by a real estate broker (on behalf of a real estate company) of the principal, whether that person(s) is a buyer or a seller. The broker and his licensed real estate salespersons (salesmen or brokers) then become the agents of the principal. Non-agency relationship: where no written agreement or fiduciary relationship exists, a real estate broker and his sales staff work with a principal who is known as the broker's customer. When a buyer who has not entered into a Buyer Agency agreement with the broker buys a property, that broker functions as the sub-agent of the seller's broker. When a seller chooses to work with a transaction broker, there is no agency relationship created. Transaction brokers Some state Real Estate Commissions - notably Florida's after 1992 (and extended in 2003) and Colorado's after 1994 (with changes in 2003) - created the option of having no agency or fiduciary relationship between brokers and sellers or buyers. Having no more than a facilitator relationship, transaction brokers assist buyers, sellers, or both during the transaction without representing the interests of either party who may then be regarded as customers. As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees: "The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and assists with the closing of details. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics). The result was that in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer" and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008. In the case of both Florida and Colorado, dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist. Designated agency[edit] The most recent development in the practice of real estate is "designated agency" which was created to permit individual licensees within the same firm, designated by the principal broker, to act as agents for individual buyers and sellers within the same transaction. In theory, therefore, two agents within the same firm act in strict fiduciary roles for their respective clients. Some states have adopted this practice into their state laws and others have decided this function is inherently problematic, just as was a dual agency. The practice was invented and promoted by larger firms to make it possible in theory to handle the entire transaction in the house without creating a conflict of interest within the firm. Dual or limited agency Dual agency occurs when the same brokerage represents both the seller and the buyer under written agreements. Individual state laws vary and interpret dual agency rather differently. Many states no longer allow dual agency. Instead, "transaction brokerage" provides the buyer and seller with a limited form of representation butwithout any fiduciary obligations(see Florida law). Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws ofagency, and many states require written Disclosures to be signed by all parties outlining the duties and obligations. If state law allows for the same agent to represent both the buyer and the seller in a single transaction, the brokerage/agent is typically considered to be a Dual Agent. Special laws/rules often apply to dual agents, especially in negotiating price. In some states, Dual Agency can be practiced in situations where the same brokerage (but not agent) represent both the buyer and the seller. If one agent from the brokerage has a home listed and another agent from that brokerage has a buyer-brokerage agreement with a buyer who wishes to buy the listed property, Dual Agency occurs by allowing each agent to be designated as an "intra-company" agent. Only the broker himself is the Dual Agent. Some states do allow a broker and one agent to represent both sides of the transaction as dual agents. In those situations, conflict of interest is more likely to occur, typically resulting in the loss of advocacy for both

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW TO KEEP YOUR HOUSE AND FAMILY SAFE WHEN SELLING FSBO

In the real estate world, FSBO means ‘For Sale by Owner’ which means the sellers are not using the services of a real estate agent to sell their property. While the National Association of Realtors (NAR) suggests that FSBO sales only account for 8% of the market, recent statistics show that selling a home without an agent is more popular than they think. A Redfin study discovered that 25%of people who sold a home did so without the aid of a full-service agent. So what’s the FSBO attraction? With FSBO, you can sell your house safely, without paying a real estate agent’s commission, which can be as high as 6% – 7%. If you sell your property for $400,000, an agency’s commission is a whopping $24,000! When you sell your house with Get Listed Realty’s Flat Fee MLS Listings, you guarantee to save at least half that amount or all of it! However, in your rush to save money, some homeowners are guilty of ignoring a few inconvenient facts about FSBO sales. When people come around to your home for a showing and you leave valuable data and possessions on display, you could be asking for trouble if you are not careful. In this comprehensive guide, we clearly outline the steps you need to take to protect your family and home whenselling a house for sale by owner. When you allow strangers into your property, there are always risks attached. There have been cases of real estate professionals being attacked during showings, let alone homeowners and there is even the potential of a robbery. Let’s take a look at the security precautions you should take to help prevent theft. Valuables Leaving your possessions on display during a home showing transforms your home into a candy store for prospective thieves. Imagine how easy it would be for an experienced criminal/burglar to snatch a necklace or a pair of expensive earrings without you noticing. Alternatively, there could be thieves masquerading as interested buyers who case your property. If they see valuables in the open, they’re likely to return in the dead of night and pilfer the lot. Invest in a personal home safe to lock up valuables or even store them at a trusted friends or families home in order to keep them out of any sketchy home buyers hands. Personal Information There is a practical reason for removing all touches of personality from your home. Photos of you and the family could serve to distract prospective buyers and decrease the possibility of them making a purchase. Although it is common for people to share photos of the family with complete strangers on social media, don’t make a habit of it when showing your property. During the FSBO process, there could be dozens of people coming to your house and there’s no guarantee that all of them are interested in making a purchase. Leaving pictures of your family out for all to see is bad enough but allowing your bills and financial information to be seen is downright negligent. According to the 2017 Identity Fraud Study, over $16 billion was stolen from 15.4 million Americans in 2016 and ID thieves have stolen a total of $107 billion over the last six years! Did you know that fraudsters can do serious damage just by knowing your name, address and date of birth? Add in bank account details, credit card information, and your Social Security Number and all hell could break loose for you! If you leave your personal information lying out there waiting to be seen, you could give a thief the opportunity to assume your identity, or at least make purchases under your name. Protect the home, and yourself, by ensuring there isn’t a shred of personal information in the home while you show it. Weapons This tipshould be a no-brainer but we’ll include it in the list of security precautions anyway. Whether you own a gun or another dangerous weapon, either store it away from the home or lock in it a gun safe where only you know the access code. Leaving weapons in the open is like Christmas for would-be thieves because it becomes incredibly easy for them to pick it up and carry out their intended robbery there and then. Prescription Medication Unfortunately, medication in the United States can be exceedingly expensive and prescription drug theft is becoming commonplace. Given the prevalence of substance abuse, it is no surprise to learn that people steal from hospitals, pharmacies and distributors to feed their addiction. For some addicts, a house showing is a golden opportunity to raid your medicine cabinet. Stop this crime of opportunity by ensuring your medication is taken away or at the very least, locked in your cabinet. Computer Access Instances of cybercrime are increasing at a disturbingly rapid rate. So one of the most important security precautions you can take is to either remove your computer from the property or at the very least password protect it. A savvy cyber-criminal only needs a few minutes alone with your machine to destroy your life. Think about it, if these criminals can breach the security of companies such as Equifax, Anthem, and Premera Blue Cross, how long do you think it will take them to get into your system while sitting at your computer? You won’t be surprised to learn that the two largest states, California and Texas, have the highest number of cybercrime victims with over 39,000 and 21,000 per annum respectively! Maintaining House Safety During Showings Most people take home safety when selling for granted and make mistakes that leave them open to physical harm; not to mention enabling thieves to waltz in and out of the property with their prized possessions. The murder of Arkansas real estate agent, Beverly Carter, should serve as a warning to ensure you have adequate security precautions in place when selling your home by owner. Verify Buyer’s Agents Most people interested in your home will be represented by a buyer’s agent, especially when you take the recommended approach oflisting your house in the MLS which will get you more money. It offers them an element of protection as the agent knows what you have to disclose and how to verify this information. You must protect your home when selling by ensuring the buyer’s agent is licensed. It is crucial to remember that there are different licensing requirements in all states. Sadly, there are many cases of agents representing a buyer in a jurisdiction where they don’t have a license. It’s a good idea to check their website, assuming they have one, and determine the amount of real estate experience this person has. You can complete your verification by looking up their license atThe Association of Real Estate License Law Officials(ARELLO). Find out the agent’s license number or go to your state’s licensing division to get verification and you’ll not only determine if the agent is legitimate, but you’ll also verify their identity as well. What About Unrepresented Buyers? Although most real estate experts will advise buyers that it is foolish to try and purchase an FSBO property without representation, a number of people try this approach and will go it alone. It is a good situation for you as a FSBO seller, because you don’t have to pay a buyers agents commission. It is imperative that you protect your home against solo buyers because they can use all sorts of dirty tricks to jeopardize your home and families safety. Here are some basic, common sense tips: 1 – Verify ID Before Showings First and foremost, DO NOT allow anyone who doesn’t have an appointment to come in. While it is normal for people to see a ‘For Sale’ sign and wander in off the street, you are placing you and your home’s safety at risk by doing so. Make sure they book their appointment ahead of time and ask for their name, address, and phone number. You could even go as far as to ask for their license plate and driver’s license numbers. Ask them to show a valid form of ID when they show up before allowing them to set foot in your home. Finally, before they proceed with their viewing, call someone and pass along the information you’ve gathered. Do this within earshot so the prospective buyer knows you’re taking security measures 2 – NEVER Be Alone with Them in the House There is safety in numbers so make sure a friend or family member is with you when showing the house. If being alone is unavoidable, consider one of the following options: Open your house for viewings by appointment only. Let a friend, family member, or spouse know when you have appointments. Arrange to call or text one of them at the beginning and end of the appointment. Ensure there is a pre-arranged time for someone to call you if you haven’t phoned back. Arrange a ‘safety phrase’ which you can text to someone if you’re feeling uncomfortable with the stranger. This acts as a signal for a friend to come over and assist you. 3 – Make Sure There is Daylight Only make appointments during daylight hours and before allowing anyone in, open all curtains, blinds, and shades, and switch on the lights if necessary. This is important because criminals are less brazen in the daylight hours. 4 – Take Note of Lingering Viewers Although viewers may feel suffocated if you follow them around, it is good protocol to protect your home when selling. Professional thieves have a habit of lingering in rooms looking for items to steal and also to locate security devices. It is suspicious if a couple decides to split up and one remains with you to serve as a distraction. The golden rule of in-house safety is to enter each room behind the viewer so you can’t be blindsided by an attack. 5 – Ensure All Exits Are Open When Showing the House Make sure front and back doors remain unlocked for the duration of the showing and always trust your instincts. If you have suspicions about the person, find a way to end the viewing as soon as possible. In this scenario, it’s a clever idea to casually mention that you’re expecting someone to arrive soon; this information should serve as a deterrent. 6 – NEVER Let a Potential Buyer Know When You’re Away When it comes to home safety when selling, there are few worse mistakes than saying the following to a prospective purchaser: “I won’t be able to show the home at 2 pm because I’ll be at work.” Talk about an open invitation to commit a crime! FSBOs need to realize that the person on the other end of the phone is not necessarily a legitimate buyer. 7 – Ensure the Buyer is Pre-Approved One way to separate legitimate and dubious would-be buyers is to ask for a copy of their pre-approval letter before they visit the property. This document shows that a lender has pulled the person’s credit and verified their income. It is a sure sign of a motivated buyer. If they claim to be a cash buyer, ask for Proof of Funds, which could be a bank account screenshot. If they make excuses not to show this information, you might want to reconsider allowing them to see your home. Things to Check After a Showing Once a viewer has left the vicinity without incident, you probably think you have done a good job of protecting the home but don’t be so sure. Experienced criminals know how to steal while making it seem as if everything is hunky dory. After they are gone, perform the following checks to ensure all is as it seems. Make Sure Homes & Windows Are Locked After Showings Even if you think you’ve had the person in your sights for the entire time, it is a mistake to assume anything. We have heard numerous tales of people unlocking windows or other entrances at home viewings so they could return and break in later. Be sure to check basement entrances as well. Check for Missing Property Hopefully, you’ve put away your valuables but in the event you haven’t, quickly scan the home for missing items. If you see something missing, contact the police ASAP before the perpetrator has the chance to flee or pawn your valuables. Real Estate Key Lockboxes An essential way to protect your home while selling is to invest in akey lock box. It is a safe way to protect your house keys and allows more flexibility when it comes to scheduling appointments. Boxes from the 1970s were opened by a key and held your house keys but they are a little more advanced these days. Here are two of the most common types of lockboxes. Combination Lockboxes:The combination lockbox has been one of the nation’s most trusted lockboxes for over four decades and is still commonly used today. Although it is difficult to break into one of these lockboxes, their electronic equivalent has several advantages. Electronic Lockboxes:These boxes are an essential security precaution because many of them operate on Infrared systems so there is no need for keys. The release mechanism is released by pointing an electronic ‘key’ at its sensor or by a temporary code you can pass along to buyers or agents. The lockbox then records the user’s entry and opens the box. The system also sends you an email when it is opened and you can program the box to only open at certain times. Video Home Security Another tip to ensure home safety when selling is to invest in security tools such as cameras. There are dozens of reputable providers selling top-quality cameras for less than $100. They are easy to install and their relative inexpensiveness means you can place one in almost every room in the home. There are even systems that allow you to view a live Internet recording of your house. When selling your property, a security camera can pick up the activities of professional criminals who come back after a viewing to break into your home. Please note that you must disclose the existence of the security cameras to any prospective buyers that walk through. Of course, you don’t have to tell themwherethe cameras are located. Home Security Monitoring If you don’t have a home security system, we strongly urge you to invest in one because you can use it to monitor your property 24/7, even if you’re not selling the house. The safety features of these systems prevent theft as they monitor the opening and closing of doors and windows. When someone tries to break in, an alarm will sound and both you, and the security firm, will receive instant notification. Vacant Houses It is a lot easier, and safer, to sell a vacant home. It is safer because you’ve automatically removed all traces of personal information, and easier because prospective buyers can visualize what they want in their new property; it’s tough to do that when there’s a lot of clutter around. However, there are some instances where selling a vacant home becomes a royal pain. For example, you may have to ‘stage’ the home which means adding furniture etc. to rooms because buyers are turned off by viewing nothing but room after room consisting of four walls and a ceiling. Then there is the increased likelihood of vandalism which will force you to pay for repairs. We recommend investing in insurance to ease the financial burden and help sell the house safely. Insurance Also known as unoccupied home insurance, it is a way to keep you financially safe if your home is likely to be vacant when you try and sell it. According to the National Association of Insurance Commissioners, a home is deemed ‘vacant’ if left unattended for 60+ days. If your home remains vacant beyond this timeframe, it’s possible that you’ll void your homeowner’s insurance coverage. By purchasing this coverage, you will protect your vacant home when selling and eliminate one more potential headache. Open Houses We are 100% against open houses while trying to sell a property. First of all, there is no benefit to the process as only 6% of homes are sold in this manner. All you’re doing is inviting chaos by enabling multiple people to parade through your home simultaneously. Common sense dictates that it is far easier for criminal minds to prosper when your attention is diverted elsewhere. Imagine this scenario: You have an open house and 30 people arrive in the space of a few minutes. How do you account for them all? It will be almost impossible to get everyone to sign their name and include their phone number and address. If something goes missing, it will be impossible to determine the culprit unless you either catch them red-handed or see them on security cameras. Even in the latter case, you will have little recourse unless they were foolish enough to give their real name and address. We heard of one case where a seller had an agent in charge of an open house. Over the two-hour window, up to 40 couples came and went and while the agent tried her best to watch everyone, her scrutiny didn’t prevent a $5,000 painting getting snatched off the wall. In reality, open houses are only good for agents as it allows them the opportunity to gain buyer leads. By avoiding open houses, you protect your home while selling and lose nothing because the chances of it leading to a sale are minimal at

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

12 PHOTOGRAPHY MISTAKES IN REAL ESTATE LISTINGS

Aside from getting the address right, listing photographs are the most important part of the home sale listing. A study conducted by Michael Seiler of Old Dominion University stated that buyers spend 60 percent of their time reviewing a listing looking at the photos. A Redfin survey found that homes with professionally taken photographs get an average of 61 percent more page views and have a 47 percent higher asking price per square foot. Despite the countless articles and advice abound detailing what you need to do to set up and take great listing photos, photo listing fails continue to plague MLSs nationwide. So, once again, here’s a top 12 list of the most common causes of photographic listing failures for your education and amusement. 1. Putting the cart before the horse Listing photographs should tell a story. Cover shots should show a pretty house with a well-maintained front yard, and maybe the second shot is of the very traditional open and welcoming front door with a bit of the entryway showing. Perhaps the third shot is the great room, or sitting room, or whatever you would see next. A jumbled photo display can confuse browsers. Going from kitchen to basement to master bedroom disorients the viewer and breaks up the flow between rooms. Also, if you have multiple homes or a guest apartment on the property, caption them accordingly and group the photos together for each separate home. Most agents and buyers first look through pictures pretty quickly to rule out the duds, and only when they see something they like do they slow down and really check out the shots. Also, nearly all MLS systems allow for personalized captions where you can point out the best parts of a room. A picture of a $100,000 salt water pool and seriously landscaped area with the standard caption of “exterior” is just boring. Use the spot for your verbiage to sell the home, not just show it. 2. Show me your toilets, trash cans and tampons I get it, bathrooms aren’t easy to photograph. Most of them are small, narrow and require a few shots to get everything shown. What I don’t understand is the photo of just the toilet. Seriously? There is no reason to have a shot of just the King’s Crapper unless it’s a full-sized replica of the iron throne monstrosity onGame of Thrones. While on the topic, if you have to put in the toilet shot because you feel it’s an exceptionally awesome toilet, make sure it’s clean and the toilet seat is down. If the seat is up and I can guess how long it has been since the commode was last cleaned, and that’s just nasty — no one wants to see that. Also, remove the fuzzy toilet covers, around-the-toilet shaped rugs, and any other coordinating carpeted items. Bathroom shots should be crisp, clean and clear and not leave you wondering if a hazmat crew needs to come and clean the shower. Also, please clear the counters of personal products. I don’t need to know what brand of tampons you use or that you pay $300 a bottle for night cream. While on the topic, make sure trash cans are empty, and if possible, put them under sinks or just remove them temporarily for the photos. I’m sure you have a trash can somewhere, but I don’t need to know where from the photos. Leave me some surprises for when I check the home out in person. Lastly, I know your stager told you to replace the moldy shower curtain, but if you have awesome tile in the shower, let us see it! Great bathrooms are a huge selling point, so don’t cover up masterful tile work with a shower curtain. 3. What does clean really mean? An often discussed problem is what to do if a home is tenant occupied, and the tenant is less than cooperative about tidying up. If the property is so filthy you worry you are going to take the plague home with you after a showing, then it may be best, if possible, to wait to market this home until the tenant is out an the home can be cleaned and readied for photos and showings. If it’s just not as tidy as you would like, then the seller needs to have a detailed chat with their tenant. Remember, “clean” is a very subjective term. My “clean” and your “clean” may be very different. My mother’s “everyday clean” was darn near the standards of a sterile surgical theater, but I’m thrilled if I’ve found and cleaned up all the cat vomit from overnight and the house has been vacuumed in the past week. However, on picture day, you can bet I have a floor you could dine from and beds so tightly made you could bounce a quarter off of them. There is always something that will need a tweak here and there on picture day — maybe removing an overlooked pet’s bed or tidying up a playroom just a bit more. As a listing agent, I am always there for the photos so I can lend a hand if Jimmy’s bed isn’t made quite right or if the couch cushions need a fluff. Some clients will require more help with this than others, but setting a clear expectation of what needs to be done before photos is always helpful. 4. Devil dolls and Hummels, my favorite! I once saw pictures of a guest bedroom that had been turned into what looked almost like a Halloween haunted doll museum. There were at least 70 of those creepy old-fashioned glass-eyed dolls in the room, on shelves, in boxes, posed in chairs having “tea” on the floor, you name it. I can’t tell you anything else about that house except I was convinced at least half of those dolls come to life at night and terrorized the neighborhood.I love a good haunted house, but these glassy-eyed demon children were too much for me. The most memorable thing about a home’s photos should not be how many Hummel figurines can comfortably cohabitate in a listing photo. The photos should be clear enough of “collections,” aka clutter that buyers can focus on the house. Some buyers may take offense if you mention their collections should be boxed up prior to photos and certainly be gone for showings, so tread carefully. Mentioning that you worry something may get broken, which is always a possibility, or that the collection is so “amazing” that you are afraid it will “outshine” the room may help. Just be very careful that you sound sincere and not sarcastic as you say this. 5. Christmas in July? Sometimes a house takes forever to sell. We won’t get into that topic here, but trust me, if the season has changed, so should your outdoor photos. Nothing screams “Why hasn’t this sold?” more than a primary picture of a home with a foot of snow on the ground and is now the middle of July. I know it sucks to have to pay for the photographer to come out again, but seasonally inaccurate photos are a giant red flag to viewers. When most buyers see a seasonally specific picture and you aren’t currently in the same season, the very next thing they will check is when this house went on the market. We all know the next question after a long DOM (days on market) is “What is wrong with it?” Now, if during the winter you had a lovely picture taken with the snow, some people will put that at the end of the photo listing to show “House during the holidays” or some other tagline. That’s fine — just don’t let that be the leading photo. 6. Through the eyes of a carp I was showing a house one time, and I was positive that I had somehow screwed up as I could have sworn there was an oversized refrigerator in the listing photos. When I pulled it up on my cell phone, I did a side-by-side comparison of photo to reality, and I saw the photo had some serious distortion. Wide lens and fish-eye distortion is very common in even professionally-taken photographs. What gets buyers angry is when they see a picture of an enormous master bedroom that, in reality, is not much larger than a closet. Again, I get it. We all want to show off a home to its best advantage. But if there is distortion in your picture that may be misleading, at least put in the room size measurements so potential buyers can determine if their king size bed will fit before wasting everyone’s time seeing a home that simply won’t work for their needs. 7. Look out for little Katie and Sir Poops-a-lot My all-time favorite listing picture fail was of a picture of a gorgeous bay window overlooking a beautiful back yard. OK, so far so good, until you look a little closer and see the owner’s Great Pyrenees taking a colossal dump and has now been caught for photographic posterity in glorious mid-poo. What made me nearly hyperventilate laughing was the horrified look on the dog’s face, almost as if he knew this was his soon to be claim to fame. I love pets. When I meet people out walking with their dogs, I greet the dog first. But unless the pets convey with the home, keep them out of the photos Lots of people are afraid of animals, worry the house may smell like litter box or unwashed dog and decide to not see a home based simply on the fact that Fluffy was sleeping on the bed while the master bedroom pictures were being taken. Now, in cases of farm properties, no one expects you to move a herd of cattle off property for shots of the pastures or cares if the horses are all in their stalls because it’s 104 degrees outside. In these cases, photos showing happy and healthy animals in the setting almost acts like a form of staging implying a useful and usable flow to the workspace. Having people in photos is never a good thing, either. Buyers need to be able to see themselves and their belongings in a property, but having little Katie’s pictures or even little Katie herself in the photo is not helpful. Also, when selling a home, for security reasons, anything with the children’s names and photos should be removed. Unfortunately, there are criminals out there that can use this information against you and can put your family at risk. I know it sounds exceptionally paranoid, but it happens. 8. Grainy is a term only good for condiments In this day and age, there is no excuse for poor quality pictures. Blurry, grainy, watery, dark and fuzzy should only be used to describe a long-forgotten bottle of mustard you just found in the back of your refrigerator. This is where I highly recommend hiring a professional home photographer. I may be able to take a decent selfie on my iPhone, but I am not a professional photographer by any stretch of the imagination. Most of us also don’t have the tools to correctly fix odd tints, strange shadows and other photographic anomalies that routinely occur even for the professional. I had photos once that were taken on a rainy day, and my photographer was able to swap out the dark clouds for a clear blue sky with no one except us the wiser. It’s amazing what new technology can do. There are a lot of agents, and even more than a few owners, who determine that they want to do their photos themselves. If you sincerely have the skills and the technology, by all means, go for it. But you are not helping your sellers or your own career, by producing listings that look like they were shot with a 30-year-old Polaroid. There are also those low-dollar listings, short sales, foreclosures and tear down listings barely worth the land they are located upon that are tempting to make you save the money on a pro. If you can’t resist the temptation to save a few bucks, and you want to give it a try, take the pictures. Then compare them to a similar listing that clearly was shot by a professional lens jockey. If you and a friend can’t say you can honestly tell the difference between amateur and professional, go for it. If it’s a night and day difference, pick up the phone, and call someone who does this full time 9. The ‘buried-in-a-box’ house I once listed a house that was done in what I coined as “gothic chic” motif. It was dark. Really dark. Most rooms had black curtains, the bathrooms were painted a very dark blue, and by choice, most of the lamps didn’t have all of their light bulbs as the owners liked a dimly lit home. To me, it felt claustrophobic, like being buried alive, but they loved it that way. I tried to explain to them that we needed to make some changes before putting their house on the market as few buyers were going to find this style to suit their taste, but my sellers were stubborn and refused every suggestion. When it came time for pictures, I came with a case of light bulbs and a ladder and got there before the photographer. I opened all the curtains and did my best to lighten and brighten. Was it ideal? No, but it was better. Sometimes you just do the best you can and call it a day. realtor.com 10. At least get out of the car Last month, I saw a picture that was taken frominside a car. I could see the passenger’s side view mirror, and the house was even a little blurry because I’m not sure the agent taking the picture was even fully stopped. I don’t care if you are getting paid $50 for commission, at least stop the car, put it in park, and get out to snap the picture. Long & Foster Real Estate 11. What are you trying to hide? In my research for this article, I saw a milli on dollar listing that had seven photos taken. Seven. It was a 6,000-square-foot house on 11 acres, and you could only find seven things you thought a buyer may want to see? This leads me to the questions, how long has this been on the market (267 days) and then: what is wrong with it? In this case, I went to preview the home, and to my happy surprise, it was lovely. If it was my listing, I would have glorious professional photos showcasing the gorgeous kitchen, the views from the huge back porch and the lovely main floor master bedroom. Instead, these sellers got pictures that looked like they came from a toy camera handled by a six-year-old child. Sometimes you do get a client that doesn’t want to have interior photos done for security reasons. In these cases, explain that a lack of photos is going to make it really hard for them to get a buyer based on the aforementioned research. 12. Prevent Photoshop failures For the love of Pete, please resist the urge to photoshop anything out of a picture unless you really have to — and you know how to do it. Most MLS systems do not allow a main photo that has a brokerage sign in the front yard. In these cases, to prevent a possible fine, these should be removed by someone very well-versed in doctoring photos. Having a main photo with a ghostly odd blurry section is not going to make the best first impression. Also, please resist the temptation to make a picture look better by removing things like high-voltage power lines and cell phone towers. If these items are unfortunately part of the landscape, they need to stay in the pictures, or you are misrepresenting the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

20 QUESTIONS HOME BUYERS SHOULD ASK WHEN CONSIDERING A HOME PURCHASE

Here are 20 questions any home buyer should ask when considering a home purchase - 1. What year was the house built? If you're not sure, you can look at your county's tax rolls or deeds registry, or look at the paperwork you were given when you bought the house. 2. How old is the roof?If it hasn't been re-roofed since you bought it, you can generally find this information on the closing paperwork from your purchase. 3. How old is the heating and air conditioning system?Again, this information should be available on the closing paperwork you had when you bought the house if you haven't replaced the system yourself. 4. How long has the property been on the market?If it's been on the market much longer than similar properties, you may want to couch your answer with a brief explanation: "We listed six months ago, but have not had the chance to really market it until just recently." 5. What comes with the property (sheds, shelving, appliances, window dressings, etc.)?If they know, it's easier for them to imagine their things in the house. 6. What school district is the house zoned for? 7. Is the mortgage assumable?If you don't know, it probably isn't. 8. What type of wiring system does the house have?If your house still has an older 2-wire system, be prepared for questions on whether you've had problems with your computer or other appliances. 9. What are average utility costs?If you don't save utility stubs, your electric and gas providers should have this information. 10. Has the house had foundation problems? If so, and you've had them fixed, you may want to explain what was done and perhaps even show them a receipt from when the project was completed. 11. Are there any easements or deed restrictions?If there are, they'll want to know if you've experienced any problems with third parties over these. 12. How much did you pay for the house?This may be a touchy subject, but be honest. They can find out from public records. 13. How many offers have you had?Again it's a touchy subject. Rather than saying "two," you may want to say "more than one" so they won't think they have all the time in the world to make an offer. 14. Is there insulation in the walls and the attic? They may want to know how long ago it was put in because some types of insulation settle and become less effective. 15. Are there any fees, such as Home Owner Association fees?This is not something a home buyer wants to be surprised with on moving day. 16. How much are property taxes?If you don't remember, your property assessor's office will know. 17. Has the property been altered, and did you get the proper permits before altering it? Potential buyers don't want to be left with an addition that wasn't made with the proper permits. Having copies of such permits is a good idea. 18. Is it noisy because of the highway / train tracks / retail areas nearby?Again, honesty is the best policy, though you should inform them of special mitigating factors, like train track quiet zones that are sometimes implemented in areas where crossing accident rates are low enough. 19. Are there any development plans for the area such as new roads, shopping, etc.? If you don't know, you can ask your local planning commission or refer the buyer to them. 20. What is the crime rate like in this neighborhood ?Be honest. Potential buyers may ask the local police department, and some crime data is readily available using online

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO LUXURY HOME SALE – HOW TO SELL A LUXURY HOME FSBO

How To Sell A Luxury Home For Sale By Owner (FSBO) When it comes toselling a home for sale by owner (FSBO)there is a large amount of work for the homeowner to get right in order to have a successful sale. Add on top of that the fact a homeowner is trying to sell a luxury home on their own the amount of work then is much greater as well since luxury home buyers are expecting more than what is normally done for a non-luxury home. If a homeowner were to miss some of the critical steps/procedures required to sell their home FSBO or do something that would not normally be done with a luxury home (like hold an open house), the homeowner runs the risk of not only not selling their home but having to drop the price dramatically in order to attract buyer attention. With that in mind here are some tips on how best to sell a luxury home FSBO. PRICING A LUXURY HOME Pricing a luxury home is one of the most important aspects of the process. Price a luxury home too high and buyers will ignore your home since better values can be had elsewhere. Price a luxury home too low and while a quick sale will result, the homeowner will be walking away from money they could have instead put into their pockets. Sources like Zillow and their Zestimates are generally not that accurate when it comes for pricing a luxury home for sale. Zestimates are good for giving an estimated price of a home that takes into account other homes sold within the same area, but a Zestimate does not take into account items like quality of the luxury home, cost of the luxury home upgrades specific to a house, house condition, and more. A better way to price a luxury home is to compare recent sales to the home being put up for sale. Recent sales should be no more than 6 months old and the homes should be compared to see if similar features, room sizes and counts match the home to be sold. Where the previous houses sold are not similar then using those to establish pricing may not produce an accurate price. Using home sales no older than 6 months may not always possible depending on where the home to be sold is located. If the luxury home is located in an area where not many homes in that price range are sold then the time frame looked at may have to be more than 6 months or the geographic area looked at may need to be expanded. Real estate is about location. A $700,000 dollar home in one area may be considered luxury but in another area that price may fetch an average sized home that is not considered to be luxury. Therefore when looking at recent home sales to determine a price one may also need to analyze the areas where other luxury home sales are being compared. Luxury home sales in a downtown area usually are not a good comparison for luxury home sales in a suburban area. LUXURY HOME MARKETING Luxury Home Video and Photography The marketing of a luxury home is the chance to wow buyers and draw them in and want to see more or cause them to think they should move on to the next home on the list. Luxury homes must use high definition pictures and video in order to show the best quality of the home to luxury home buyers. High definition cameras for both video and photos should be made with cameras utilizing wide angle lenses. The lenses should not too wide though that there is fish-eye distortion to images or too wide that it makes rooms look bigger than they really are. Cell phone cameras and point and shoot cameras will not cut it when it comes to taking high definition video and photos. The services of a professional videographer or photographer may be in order if the necessary equipment are not readily available. For purposes of video recording of a home a video slide show of still pictures already taken is not enough. While those slide show videos may be fine as a starting point to get coverage on YouTube, a luxury home should receive full motion video treatment to highlight the unique and quality features of the home. With over 90% of home buyers starting their home search online if a luxury home is not delivering the best in quality video and pictures buyers may think the home is not worth coming to see in person. Luxury Home Aerial Photography Using an unmanned aerial vehicle (UAV or drone) to take aerial photos and videos might make sense for luxury home marketing purposes. Not every home needs aerial shots and sometimes those aerial images will instead distract home buyers rather than enhance the marketing. If a luxury home has a large beautiful backyard, water views or other features that can be really appreciated from the air then it makes sense to hire a UAV operator to take aerial footing to use in the luxury home’s marketing. Luxury homeowners should make sure the UAV operator they hire is properly licensed to commercially operate their UAV under FAA regulations, that they maintain insurance for their business and that their UAV will be capturing high definition footage. Some cheaper UAVs use very low quality cameras and combing low quality images or video with a high definition video of the inside and outside of your home will confuse buyers and leave them less likely to want to see your home. Any UAV video footage obtained should be incorporated into the main marketing video for your home so that luxury home buyers can see everything at one time and in one location. Advertising Your Luxury Home For Sale While Zillow is a good place to list your luxury home for sale it should not be the only place. The Multiple Listing Service (MLS) in your area is where a majority of homes are bought and sold. Through the MLS your home not only gets listed for sale on local real estate portals it also gets pushed to national sites like Realtor.com and more. Depending on your location there should be some limited service real estate brokers who for a flat fee will list your home for sale on the MLS. The fees can range from $500 and up depending on what add on services you request in addition to the MLS listing. Some limited service brokers will offer you the option to pay buyer’s agent a commission or a fee if they bring a buyer and that is recommended since more than 80% of home sales involve at least one real estate agent representing either a buyer, a seller or both. Some additional sources for advertising your home for sale include local newspapers, local luxury home magazines, Facebook marketplace groups, Craigslist, Google and Facebook paid ads and more. When selling a home you want the maximum amount of advertising coverage available so that your home is being presented to as many potential buyers as possible in hopes of finding that right buyer. The longer it takes any home to sell the faster and steeper the price will need to be cut in order to attract buyers. SHOULD YOU HOST AN OPEN HOUSE FOR YOUR LUXURY HOME FOR SALE BY OWNER? During an open house you are letting any member of the general public in to tour your home in the hopes that someone finds the home desirable enough that they will make an offer. Home sales during an open house only account for less than 5% of total sales so as a result the additional exposure gained by hosting an open house is not worth the risk for any luxury home seller. Especially with a luxury home people coming to view the home will more likely be coming out of curiosity as to how someone in a luxury home lives and will want to see what exactly makes a luxury home luxurious. Not only that an open house in a luxury home invites those who may use the chance to steal something from the home during the open house or to check out where the good stuff is so that way when they come back they know how to move in quick get what they want and get out with little trouble. While the risk is high withan open house the reward that a sale may occur is very low so an open house for a luxury home should be avoided. SCREENING POTENTIAL BUYERS If a buyer comes through with a real estate agent chances are those buyers will be pre-qualified or verified to have cash on hand to make a cash purchase of a home. After all not many real estate agents want to work as a free tour guide showing homes for no compensation. When dealing with unrepresented buyers it is wise to ask buyers to show proof of funds or to show a mortgage pre-approval. Proof of funds or a mortgage pre-approval shows that the buyers are indeed serious about buying a luxury home and can afford to buy the home. Anything less and you run the risk of inviting in people who are just viewing houses for fun or worse someone sizing up your home and valuables for theft later on. If luxury home buyers will be buying a home with the use of a mortgagethen you will need to be prepared for the extra time involved. Jumbo mortgages used to purchase luxury homes usually have more stringent requirements for appraisals, buyer financials, and more. As a result the typical time to close on a home which will be purchased with a mortgage is longer than a home that does not need a jumbo mortgage to purchase a home. PROFESSIONAL REPRESENTATION WHEN SELLING A LUXURY HOME While you may not have a real estate agent involved for whatever reason when selling a luxury home it is advisable to have a real estate attorney reviewing offers and the purchase contract to make sure your interests are protected. Since larger sums of money are involved with selling a luxury home the chances for a lawsuit to pop up are also greater. A good idea would be to hire an attorney who either owns or works in a law firm that owns a title company. That way the real estate attorney can handle all legal aspects of the luxury house sale and the title company can handle the actual closing when it comes time to do so all under one roof. BOTTOM LINE Whatever the reason may be for selling a luxury home for sale by owner one must realize it is a process that requires a lot of preparation and planning for proper execution. Miss certain critical steps or sign a purchase offer without full understanding of what is written in the document could lead to costly litigation. The tips and suggestion in this article are just a small amount of what is involved in selling a luxury

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A BONA FIDE PURCHASER?

A bonafide purchaser(BFP) – referred to more completely as a bonafide purchaser for value without notice – is a term used predominantly in common law jurisdictions in the law of real property and personal property to refer to an innocent party who purchases property without notice of any other party's claim to the title of that property. A BFP must purchase for value, meaning that he or she must pay for the property rather than simply be the beneficiary of a gift. Even when a party fraudulently conveys property to a BFP (for example, by selling to the BFP property that has already been conveyed to someone else), that BFP will, depending on the laws of the relevant jurisdiction, take good (valid)title to the property despite the competing claims of the other party. As such, an owner publicly recording their own interests (which in some types of property must be on a court-recognised Register) protects themself from losing those to an indirect buyer, such as a qualifying buyer from a thief, who qualifies as a BFP. Moreover, so-called "race-notice" jurisdictions require the BFP himself or herself to record (depending on the type of property by public notice or applying for registration) to enforce his or her rights. In any case, parties with a claim to ownership in the property will retain a cause of action (a right to sue) against the party who made the fraudulent conveyance. In England and Wales and in other jurisdictions following the 20th century oft-repeatedprecedent, the BFP will not be bound by equitable interests of which he/she does not have actual, constructive or imputed notice, as long as he/she has made "such inspections as ought reasonably to have been made".[1] BFPs are also sometimes referred to as "equity's darling". However, juristHackneyexplains the portrayal is inaccurate; in cases where legal title is passed to abona fidepurchaser for value without notice, it is not so much that equity has any great affection for the purchaser – it is simply that equity refuses to intervene to preserve any rights held by the former beneficial owner of the property.[2]The relationship between thecourts of equityand the BFP is at root characterised as, geared toward the BFP, with benign neglect of the old owner(s).[2]However, equity allows a proven BFP to claim for a full legal conveyance from former legal owner, failing which the court itself will convey title. In the United States, the patent law codifies the bonafide purchaser rule,35 U.S.C. § 261. Unlike the common law, the statute cuts off both equitable and legal claims to the title.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

21.3% OF THE U.S.POPULATION PARTICIPATES IN GOVERNMENT ASSISTANCE PROGRAMS

Approximately 52.2 million (or 21.3 percent) people in the U.S. participated in major means-tested government assistance programs each month in 2012, according to a U.S. Census Bureau report released today. Participation rates were highest for Medicaid (15.3 percent) and the Supplemental Nutrition Assistance Program, formerly known as the food stamp program (13.4 percent). The average monthly participation rate in major means-tested programs increased from 18.6 percent in 2009 to 20.9 percent in 2011. However, from 2011 to 2012, there was no statistically significant change in the percentage of people who participated. From 2009 to 2012, the average monthly participation rates for Medicaid, Supplemental Security Income and SNAP increased, while the rate decreased for Temporary Assistance for Needy Families/General Assistance. “Participation in government programs is dynamic,” said Shelley Irving, an analyst with the Census Bureau’s Social, Economic and Housing Statistics Division. “The Survey of Income and Program Participation shows how individuals move in and out of government programs and how long they participate in them.” The largest share of participants (43.0 percent) in any of the public assistance programs stayed in the programs between 37 and 48 months. Additionally, 31.2 percent of people participated between one and 12 months between January 2009 and December 2012. The report, Dynamics of Economic Well-Being: Participation in Government Programs 2009–2012: Who Gets Assistance?, follows a sample of U.S. residents through the Survey of Income and Program Participation. Statistics are presented for the major means-tested programs by various demographic and socio-economic characteristics, and statistical comparisons are made to data collected from 2009 to 2012. A means test is a determination of whether an individual or family is eligible for government assistance, based on whether the individual or family has income and/or assets that fall below specified

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

STATES WHERE AN ATTORNEY IS REQUIRED FOR A REAL ESTATE CLOSING

The process of buying or selling your home is quite complex, so you’re fortunate to have a real estate professional to guide you through some of the process. However, in some states, you’re required to have an attorney complete the real estate closing transaction; in some jurisdictions, you need a lawyer to be involved with preparation and execution of the documents. And regardless of where you live, there are a variety of reasons you might want to consider retaining lawyer to represent your interests in the closing. Here’s some general information to give you some background on the process. States Where an Attorney is Required for a Real Estate Closing: Several states have laws on the books mandating the physical presence of an attorney or other types of involvement at real estate closings, including: Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and West Virginia. This list is subject to change based on newly passed legislation, so you should speak with your real estate professional for exact requirements. In addition to a lawyer, you’ll likely need to retain the services of a notary public because the transaction involves real estate. Many attorneys have notary commissions or have a notary public on staff, so check with your agent to see if you need to hire one. Involvement of Non-Attorney Consultants & Other Entities: Many states not listed above do regulate real estate closings as they pertain to the participation of non-legal professionals. One or more of the following individuals/entities may be involved in the transaction: Title Company or Agent: This entity is responsible for ensuring that the deed you receive as a buyer has no defects which might indicate that someone else has an interest in the property. The title company or agent does an examination of the chain of title as the real estate has changed hands over time. This person will uncover any mortgages, liens, judgments or unpaid taxes that may need to be corrected in order to deliver “clean” title to a buyer. Escrow Company or Agent: During the real estate closing, there may be an escrow company or agent who has the fiduciary responsibility to handle the transfer of real estate from the seller to the buyer. The agent collects all documents from each party and makes sure that all provisions are complied with by seller and buyer. In a sense, this person represents both parties to the real estate closing. Lender: In some states, it’s possible for the homeowner’s lender to handle a real estate closing. Real Estate Agent/Broker: The seller’s real estate agent may also conduct the closing in some states. Here, it’s important for both parties to note that the agent represents the seller and doesn’t act on behalf of the buyer. Notary Public: While a notary public wouldn’t necessarily handle the close, the presence of a notary service is necessary in most states to witness the execution of all documents. Reasons to Consider a Lawyer to Represent You in a Real Estate Closing: Even if not required in your state, you may want to retain an attorney to act on your behalf in a real estate closing. These professionals can prepare or review all documents and ensure that your rights in the transaction are adequately protected. If any legal issues arise during the process, your attorney can answer any questions or address any issues related to the terms and conditions of the closing documents. The requirements of a real estate closing, such as preparation, execution and notarization of documents, can be difficult to understand if you don’t have a legal or real estate background. Plus, in the handful of states where an attorney is required to complete a closing, you don’t have a choice on how to proceed. It’s smart to consult with professionals to help guide you and answer any questions you may

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CONTRACT CONTINGENCIES

For those who aren’t familiar, a contingency is a statement (a “stipulation” it’s sometimes called) that is added to your contract that will allow you the right to back out of the deal without penalty under specific circumstances. Contingencies are often used by buyers who aren’t 100% convinced they’re ready — or able — to buy the property, and want some extra time to “get their ducks in a row.” Before I get into some of the rules for using contingencies in your contracts, I wanted to review the most common contingencies you’ll find in a real estate purchase offer: Financing Contingency: This is one of the most common types of contingency. Basically, it says that your offer is contingent on you being able to procure financing for the property. It will often be specific about the type of financing (FHA, Conventional Loan, etc), the terms (interest rate, down payment, etc), and the time period. For example, a typical financing contingency might read as follows: Buyer shall have 20 days from the date of binding agreement (“Financing Contingency Period”) to determine if buyer has the ability to obtain a loan with the following terms: * Loan Amount: 96.5% of the total purchase price of the property * Term: 30 years * Interest Rate: No Higher Than 5.25% * Loan Type: FHA This agreement shall terminate without penalty to Buyer if Buyer is unable to obtain the loan described above and notifies seller in writing of this event within the Financing Contingency Period. Any Buyer who is planning to use financing to purchase a property should include a Financing Contingency; worst case, your financing will fall through, but you’ll still have the option to back our of the deal without penalty. Appraisal Contingency: This contingency basically says either: * If you can’t get an appraisal on the property that is at least as high as the purchase price, you can back out of the deal; or * If you can’t get an appraisal on the property that is at least as high as the purchase price, you can ask the Seller to drop the price, and if he refuses, you can then back out of the deal. The appraisal contingency often goes hand-in-hand with the financing contingency, as the lender will not fund the loan above the appraised price. Inspection Contingency: Also known as a “Due Diligence Period” or a “Due Diligence Contingency,” this contingency says that the Buyer has a set amount of time (often ranging from 3-14 days), where he can do whatever he needs to do to ensure that he wants to buy the property. This might include inspections, appraisals, contractor walk-throughs, etc. If at any time within that inspection period the Buyer chooses to back out of the deal for any reason, he can. This is a common contingency for anyone who is not intimately familiar with inspecting properties and coming up with rehab cost estimates. The Buyer can use this time period to get a full property inspection and get bid from contractors to do any necessary work. If any surprises turn up, he can then either ask for a discount (or repairs) or just back out of the deal. Selling A Current Property: This one has become more prominent these days among homeowners looking to upgrade their current house. This contingency basically says that the Buyer has a right to back out of the deal if he can’t sell his current residence to someone else. Generally, the contingency will call out a time period for which the contract is in effect, thereby giving the Buyer that amount of time to sell his other property. This contingency is not generally used by investors, but is very common among homeowners going from one house to another. While there are literally thousands of other possible contingencies that you might see or use in a real estate contract, these are the most common, and many of the others are based on one of these. Some others that you might come across at some point include: Termite Letter Contingency Lead Paint Test Contingency Deed Contingency (stipulates what type of deed is expected from the seller at closing) Radon Testing Contingency Mold Inspection Contingency Sewer Inspection Contingency Private Well Inspection Contingency Home Owner Association Documents Contingency Insurance Now that you hopefully have a good idea of what contract contingencies are, in the second half of this post, I want to discuss the 4 rules for using contingencies (or not) to improve your investing success… First, let me start with the the first and most important rule of using contingencies when making offers: How I Bought, Rehabbed, Rented, Refinanced, and Repeated for 14 Rental Properties This is the dream right? Going from zero to 10+ rental properties, providing stable cash flow and long-term wealth for you and your family, and building a scalable business model to boot! Learn how this investor did just that, in this exclusive story featured on BiggerPockets! Rule #1: The fewer contingencies used in your offer, the more attractive your offer will be to the Seller. Perhaps this is obvious; perhaps not. Let’s look at it from the perspective of the Seller: He wants to sell his property as quickly and as efficiently as possible, and any contingencies you put in your offer is an opportunity for you to back out of the deal before it closes. So, as a Buyer, you want to limit your contingencies to only those that are absolutely necessary. I’m certainly not saying to never use a contingency — sometimes they’re very important — but don’t use more than necessary to protect your interests. And, if you have the ability to use no contingencies in your offer, that’s makes your offer much stronger than any competing offers. Of course, unless you have had the property inspected (or have done it yourself) and are absolutely sure that you want to move forward, you take a risk by not have a contingency in your offer. So what I recommend for most people is: Rule #2: If possible, limit your offer to a single contingency. While it may be more reassuring to you to have lots of contingencies in your offer — it means you have more leeway to change your mind, right! — the truth is, that a single contingency often provides all the protection you need. In fact, for 80% of the offers I make, the only contingency I use is the Inspection Contingency (the other 20% of the offers I have no contingencies at all). The inspection contingency will give me a fixed period of time — generally 5-10 days, depending on how much I think I need — to get everything in order to ensure that I want to — and can — buy the property. During that inspection period, I will get my property inspection completed, I will ensure that I have my financing lined up, I will create my Scope of Work, I will have my contractors come out to the property to give me bids, I’ll contact my insurance agent to get quotes, etc. By the time I’ve used up that inspection period, I’m pretty sure of whether I’m ready to move forward on this property or not. If I’ve come across anything concerning (structural issues, mold, missed repair costs, etc), I might go back to the seller to request a lower price, and worst case, I might back out of the deal. Which brings me to Rule #3: Rule #3: Only execute a contingency if absolutely necessary. I know plenty of investors who will make lots and lots of offers, each with contingencies. They won’t even bother looking at the properties unless they get their contract accepted. While this is a perfectly reasonable way to make lots of offers in a short period of time, it also increases the probability that you’ll end up having to back out of one or more of those offers using your contingency. Perhaps you find that there is more repair work than you needed. Or maybe you find that there is structural issue that will be costly to fix. Or maybe you determine the layout of the property will make it difficult to sell. Regardless, if you’re not careful, you’ll find yourself backing out of deals. And if you back out of too many deals, you run the risk of getting a bad reputation. If you work with the same listing agents over and over (for example, if you buy REO properties), and you have a reputation for backing out of deals using your contingencies, you’ll find that you start getting many fewer offers accepted. Remember, Sellers are interested in getting rid of their property as quickly and efficiently as possible, and if they think you’re just going to waste their time by backing out of the deal, they won’t even bother to accept your offers. If you intend to use your contingency, consider alternative uses: Rule #4: Contingencies can be negotiating tools. Just because you find that the deal isn’t working out for you, doesn’t mean that you need to use your contingency to back out. You can use that contingency to reopen negotiations with the seller instead. For example, let’s say that during your inspection you find that there are some major plumbing issues in the property that will require an extra $3000 in plumbing work that you hadn’t factored in. Instead of using your contingency to back out of the deal, use it as an opportunity to ask the Seller to drop his price by $3000. Not only do you keep the deal alive, but the Seller would likely face the same issue with the next buyer, so one way or the other, he’s going to end up eating that $3000 cost. Or, let’s say your financing falls through — instead of using the contingency to back out of the deal, perhaps you can use it to reopen negotiations around seller financing, especially if the Seller is a bank. The key is that even when you use a contingency, you don’t have to use it to back out of the deal; you can instead use it to revisit the original deal and try to come to a reasonable compromise that resolves the issue(s) and makes both parties

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TRANSACTION COSTS IN BUYING/SELLING REAL ESTATE?

Earnest money deposit Earnest money (which is held in escrow) is how sellers know you’re serious. Keep in mind that how much money you hand over upfront depends on a lot of factors, like your state, your market, and the contract you’ve agreed to. Whether or not you get this money back if the deal falls through will also be specified in the purchase agreement. Cost: typically 1-3% of the purchase price Appraisal Generally, your mortgage lender would require an appraisal so they don’t end up lending you more money than the property is worth. But if you’re going it alone and concerned about overpaying, having your own appraisal done is a smart move. Cost: $300-400 Property inspection Much like an appraisal, a property inspection won’t be required of you. However, it’s definitely in your best interest to get one on your own. An inspection will find any problems with the house, giving you room to negotiate or even to walk away if the renovations required are too involved. Cost: $200-800, depending on the size and location of the property. Survey fee If you’re buying a large plot of land (especially undeveloped land) you might feel the need to verify the property lines. This won’t be required of you, but those in special circumstances, it might be worth it. Keep in mind, it’s pricey, though. Cost: $600-900 Title insurance Title insurance is yet another thing you don’t need, but might opt for anyway. It’s a one-time cost that protects you from title issues for as long as you own the property. Typically, a lender requires you to buy insurance to cover their stake in your property, but without one, the choice is yours. Cost: around $1,000, but it will depend on the value of your home. Title search fee Whether or not you choose to get insurance, most states still require you to do a title search before the transfer of a property. This establishes the line of ownership and payment going back decades, ensuring that you are actually able to purchase the house. Cost: $100-250 Escrow fees Escrow companies exist to act as a neutral third party in the transfer and payment of money during the homebuying process. But they don’t work for free. Keep in mind that buyers and sellers tend to split this fee 50/50. Cost: varies by company and property. You’ll want to shop around for the best price. Notary fees In order to properly close, you’ll need to notary to witness the signing of documents. Depending on where you sign the final closing documents, this fee may be waived. Cost: around $100 Attorney fees Some states require a buyer’s and a seller’s attorney to oversee the sales contract and closing. The cost can vary dramatically, depending on how the attorney you hire bills this kind of service. You will, however, be able to negotiate and shop around for this service. Cost:$400-1,500 Who pays closing costs in a cash sale? Okay, so now we know what needs to get paid, it’s time to talk about who’s doing the paying. This is where things get interesting, as there are few hard and fast rules about who pays what. Paying for home in cash means there’s no lender to refuse financing at the last minute. It means the buyer can have a low credit score or lose their job and still follow through with the purchase just fine. It means there’s no external reason why the deal won’t go through. In all but the hottest markets, that’s a seller’s dream come true. And it puts you in a position to negotiate on more than just sale price. While most of the fees we’ve discussed typically fall to the buyer in one way or another, many of them can also be paid by the seller if the right agreements are reached. It all depends on your specific situation and how much you’re willing to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CONDOMINIUM AND PUD OWNERSHIP

Condominium and PUD Ownership Builders, in an effort to combat the dual problem of an increasing population and a declining availability of prime land, are increasingly turning to common interest developments (CIDs) as a means to maximize land use and offer homebuyers convenient, affordable housing. The two most common forms of common interest developments in many states are Condominiums and Planned Unit Developments, often referred to as PUDs. The essential characteristics shared by these two forms of ownership are: Common ownership of private residential property Mandatory membership of all owners in an association which controls use of the common property Governing documents which establish the procedures for governing the association, the rules which the owners must follow in the use of their individual lots or units as well as the common properties A means by which owners are assessed to finance the operation of the association and maintenance of the common properties Before continuing further, it may be helpful to clarify a common misconception about Condominiums and PUDs. The terms Condominium and PUD refer to types of interests in land, not to physical styles of dwellings. Therefore, when homebuyers say that they are buying a townhouse, it is not the same as saying that they are buying a condominium. When homebuyers say that they are buying a unit in a PUD, they are not necessarily buying a single-family detached home. A townhouse might legally be a condominium, a unit or lot in a Planned Unit Development, or a single-family detached residence. The terms Condominium or PUD will say a great deal about the ownership rights the buyer will receive in the unit and the interest they will acquire in the common properties or common areas of the development. Common interest developments offer many advantages to homebuyers, such as low maintenance and access to attractive amenities. However, there are restrictions and duties which come with ownership of a Condominium or PUD that buyers should be aware of prior to purchase. To acquaint you with various aspects of ownership in common interest developments, the Land Title Association has answered some of the questions most commonly asked about Condominiums and PUDs. What are the basic differences between ownership of a Condominium and ownership of a PUD? The owner(s) of a unit within a typical Condominium project owns 100% of the unit, as defined by a recorded Condominium Plan. As well, they will own a fractional or percentage interest in all common areas of the Condominium project. The owner(s) of a lot within a PUD owns the lot which has been conveyed to them-as shown in the recorded Tract Map or Parcel Map-and the structure and improvements thereon. In addition, they receive rights and easements to use in common areas owned by another-frequently a Homeowner’s association-of which the individual lot owners are members. The above are basic descriptions and should not be considered legal definitions. Besides ownership of my unit, what other amenities (common areas) will I be acquiring use of and how will I own them? Common interest areas may span the spectrum from the ordinary-buildings, roadways, walkways and utility rooms-to the extravagant-equestrian trails and golf courses-with more usual amenities including community swimming pools and clubhouse facilities. Your ownership rights in common areas will be spelled out in your project’s Declaration of Covenants, Conditions and Restrictions (CC and R’s). The subject of CC and R’s will be expanded upon later in this brochure. As we stated in the answer to the previous question, Condominium owners own a fractional or percentage interest in common with all other owners in the Condominium project, in all common areas. PUD owners receive rights and easements to use of common areas through their membership in a Homeowner’s association, which typically owns and controls the common areas. Some PUD projects, however, provide that the individual homeowners will own a fractional interest in the common areas. Again, in this case, a Homeowner’s association will have the right to regulate the use of the common areas and to assess for purposes of maintaining the common areas. Check your CC and R’s and association Bylaws (basically, rules governing the management of the development) to insure that you understand your rights to use of your unit and common areas. What services will my Homeowner’s assessments help to finance? Your Homeowner’s assessments support not only the easily recognizable-building and swimming pool upkeep, landscape maintenance-but also the unseen-association management and legal fees and association insurance. As well, reserves must be factored into your assessments, including reserves for replacement of such items as roadways and walkways. In the case of condominiums, where ownership is usually limited to airspace within the walls, floors and ceiling of the unit, reserves will frequently fund replacement of such items as roofs and plumbing. Each member of the Homeowner’s association, upon purchasing their unit, must receive a pro forma operating budget from the association. Basically, this will be a financial statement of the income and obligations of the association, which must include an estimate of the life of the obligations covered under the assessments and how their replacement is being funded. What happens if I fail to pay my Homeowner’s assessments? Delinquency fees will be added onto the unpaid assessments. Should your delinquency continue, the association has the right to place a lien upon your property. The lien may lead to a foreclosure if the delinquency is not paid. Of what importance are CC and R’s and Bylaws? CC and R’s and Bylaws are the rules and regulations of the community, meant to guide the use of individual properties and common areas. Buyers should be aware that CC and R’s and Bylaws may be written so as to restrict not only property use, but also to restrict owners’ lifestyles, for instance, spelling out hours during which entertainment, such as parties, may be hosted. CC and R’s and Bylaws are highly important and should be thoroughly examined and understood prior to purchase. They bind all owners and their successors to the rules and regulations of the community. Failure to follow those rules and regulations can be considered a breach of contract. Legal action may be taken against the homeowner for any such breach. At what point in the real estate transaction will I be allowed to review a copy of my CC and R’s and Bylaws? Legally, it is the responsibility of the owner to provide the prospective purchaser with the governing documents of the development (CC and R’s and Bylaws), the most recent financial statement of the Homeowner’s association and notice of any dues delinquent on the unit. The law states that these items should be delivered as soon as practicable; however, the prospective buyer should request to see them as early as possible. If you do not fully understand what is stated in these documents, consult a real property attorney. Should I object to items included in the CC and R’s and/or Bylaws, will I have the opportunity to terminate those items prior to taking ownership? No. The process required to terminate these restrictions is often complex and costly. Termination of restrictions will require, at least, a majority vote by members of the Homeowner’s association, and may require litigation. What if I have further questions regarding Condominium and PUD ownership? Ask any questions you may have before you buy! Don’t wait to take ownership to find out about restrictions and regulations affecting your Homeownership

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MOLD

MOLD BASICS Why is mold growing in my home? Molds are part of the natural environment. Outdoors, molds play a part in nature by breaking down dead organic matter such as fallen leaves and dead trees, but indoors, mold growth should be avoided. Molds reproduce by means of tiny spores; the spores are invisible to the naked eye and float through outdoor and indoor air. Mold may begin growing indoors when mold spores land on surfaces that are wet. There are many types of mold, and none of them will grow without water or moisture. Can mold cause health problems? Molds are usually not a problem indoors, unless mold spores land on a wet or damp spot and begin growing. Molds have the potential to cause health problems. Molds produce allergens (substances that can cause allergic reactions), irritants, and in some cases, potentially toxic substances (mycotoxins). Inhaling or touching mold or mold spores may cause allergic reactions in sensitive individuals. Allergic responses include hay fever-type symptoms, such as sneezing, runny nose, red eyes, and skin rash (dermatitis). Allergic reactions to mold are common. They can be immediate or delayed. Molds can also cause asthma attacks in people with asthma who are allergic to mold. In addition, mold exposure can irritate the eyes, skin, nose, throat, and lungs of both mold2 ■ The key to mold control is moisture control. ■ If mold is a problem in your home, you should clean up the mold promptly and fix the water problem. ■ It is important to dry water-damaged areas and items within 24-48 hours to prevent mold growth. Mold growing outdoors on firewood. Molds come in many colors; both white and black molds are shown here. 3 allergic and non-allergic people. Symptoms other than the allergic and irritant types are not commonly reported as a result of inhaling mold. Research on mold and health effects is ongoing. This brochure provides a brief overview; it does not describe all potential health effects related to mold exposure. For more detailed information consult a health professional. You may also wish to consult your state or local health department. How do I get rid of mold? It is impossible to get rid of all mold and mold spores indoors; some mold spores will be found floating through the air and in house dust. The mold spores will not grow if moisture is not present. Indoor mold growth can and should be prevented or controlled by controlling moisture indoors. If there is mold growth in your home, you must clean up the mold and fix the water problem. If you clean up the mold, but don’t fix the water problem, then, most likely, the mold problem will come back. Magnified mold spores. Molds can gradually destroy the things they grow on. You can prevent damage to your home and furnishings, save money, and avoid potential health problems by controlling moisture and eliminating mold growth. 4 Who should do the cleanup? Who should do the cleanup depends on a number of factors. One consideration is the size of the mold problem. If the moldy area is less than about 10 square feet (less than roughly a 3 ft. by 3 ft. patch), in most cases, you can handle the job yourself, following the guidelines below. However: ■ If there has been a lot of water damage, and/or mold growth covers more than 10 square feet, consult the U.S. Environmental Protection Agency (EPA) guide: Mold Remediation in Schools and Commercial Buildings. Although focused on schools and commercial CLEANUP If you already have a mold problem – ACT QUICKLY. Mold damages what it grows on. The longer it grows, the more damage it can cause. Leaky window – mold is beginning to rot the wooden frame and windowsill. MOLD 5 buildings, this document is applicable to other building types. It is available free by calling the EPA Indoor Air Quality Information Clearinghouse at (800) 438-4318, or on the Internet at: www.epa.gov/iaq/molds/mold_remediation.html. ■ If you choose to hire a contractor (or other professional service provider) to do the cleanup, make sure the contractor has experience cleaning up mold. Check references and ask the contractor to follow the recommendations in EPA’s Mold Remediation in Schools and Commercial Buildings, the guidelines of the American Conference of Governmental Industrial Hygenists (ACGIH), or other guidelines from professional or government organizations. ■ If you suspect that the heating/ventilation/air conditioning (HVAC) system may be contaminated with mold (it is part of an identified moisture problem, for instance, or there is mold near the intake to the system), consult EPA’s guide Should You Have the Air Ducts in Your Home Cleaned? before taking further action. Do not run the HVAC system if you know or suspect that it is contaminated with mold - it could spread mold throughout the building. Visit www.epa.gov/iaq/pubs/ airduct.html, or call (800) 438-4318 for a free copy. ■ If the water and/or mold damage was caused by sewage or other contaminated water, then call in a professional who has experience cleaning and fixing buildings damaged by contaminated water. ■ If you have health concerns, consult a health professional before starting cleanup. 6 Tips and techniques The tips and techniques presented in this section will help you clean up your mold problem. Professional cleaners or remediators may use methods not covered in this publication. Please note that mold may cause staining and cosmetic damage. It may not be possible to clean an item so that its original appearance is restored. ■ Fix plumbing leaks and other water problems as soon as possible. Dry all items completely. ■ Scrub mold off hard surfaces with detergent and water, and dry completely. Places that are often or always damp can be hard to maintain completely free of mold. If there’s some mold in the shower or elsewhere in the bathroom that seems to reappear, increasing the ventilation (running a fan or opening a window) and cleaning more frequently will usually prevent mold from recurring, or at least keep the mold to a minimum. Bathroom Tip MOLD CLEANUP GUIDELINES Mold growing on the underside of a plastic lawn chair in an area where rainwater drips through and deposits organic material. ■ Absorbent or porous materials, such as ceiling tiles and carpet, may have to be thrown away if they become moldy. Mold can grow on or fill in the empty spaces and crevices of porous materials, so the mold may be difficult or impossible to remove completely. ■ Avoid exposing yourself or others to mold (see discussions: What to Wear When Cleaning Moldy Areas and Hidden Mold.) ■ Do not paint or caulk moldy surfaces. Clean up the mold and dry the surfaces before painting. Paint applied over moldy surfaces is likely to peel. ■ If you are unsure about how to clean an item, or if the item is expensive or of sentimental value, you may wish to consult a specialist. Specialists in furniture repair, restoration, painting, art restoration and conservation, carpet and rug cleaning, water damage, and fire or water restoration are commonly listed in phone books. Be sure to ask for and check references. Look for specialists who are affiliated with professional organizations 8 ■ Avoid breathing in mold or mold spores. In order to limit your exposure to airborne mold, you may want to wear an N-95 respirator, available at many hardware stores and from companies that advertise on the Internet. (They cost about $12 to $25.) Some N-95 respirators resemble a paper dust mask with a nozzle on the front, others are made primarily of plastic or rubber and have removable cartridges that trap most of the mold spores from entering. In order to be effective, the respirator or mask must fit properly, so carefully follow the instructions supplied with the respirator. Please note that the Occupational Safety and Health Administration (OSHA) requires that respirators fit properly (fit testing) when used in an occupational setting; consult OSHA for more information (800-321-OSHA or osha.gov/). WHAT TO WEAR WHEN CLEANING MOLDY AREAS Mold growing on a suitcase stored in a humid basement. It is important to take precautions to LIMIT YOUR EXPOSURE to mold and mold spores. 9 How do I know when the remediation or cleanup is finished? You must have completely fixed the water or moisture problem before the cleanup or remediation can be considered finished. ■ You should have completed mold removal. Visible mold and moldy odors should not be present. Please note that mold may cause staining and cosmetic damage. ■ You should have revisited the site(s) shortly after cleanup and it should show no signs of water damage or mold growth. ■ People should have been able to occupy or re-occupy the area without health complaints or physical symptoms. ■ Ultimately, this is a judgment call; there is no easy answer. If you have concerns or questions call the EPA Indoor Air Quality Information Clearinghouse at (800) 438-4318. ■ Wear gloves. Long gloves that extend to the middle of the forearm are recommended. When working with water and a mild detergent, ordinary household rubber gloves may be used. If you are using a disinfectant, a biocide such as chlorine bleach, or a strong cleaning solution, you should select gloves made from natural rubber, neoprene, nitrile, polyurethane, or PVC (see Cleanup and Biocides). Avoid touching mold or moldy items with your bare hands. ■ Wear goggles. Goggles that do not have ventilation holes are recommended. Avoid getting mold or mold spores in your eyesWhen water leaks or spills occur indoors - ACT QUICKLY. If wet or damp materials or areas are dried 24-48 hours after a leak or spill happens, in most cases mold will not grow. ■ Clean and repair roof gutters regularly. ■ Make sure the ground slopes away from the building foundation, so that water does not enter or collect around the foundation. ■ Keep air conditioning drip pans clean and the drain lines unobstructed and flowing properly. MOISTURE AND MOLD PREVENTIONAND CONTROL TIPS Moisture Control is the Key to Mold Control Mold growing on the surface of a unit ventilator. 11 ■ Keep indoor humidity low. If possible, keep indoor humidity below 60 percent (ideally between 30 and 50 percent) relative humidity. Relative humidity can be measured with a moisture or humidity meter, a small, inexpensive ($10-$50) instrument available at many hardware stores. ■ If you see condensation or moisture collecting on windows, walls or pipes - ACT QUICKLY to dry the wet surface and reduce the moisture/water source. Condensation can be a sign of high humidity. Actions that will help to reduce humidity: Vent appliances that produce moisture, such as clothes dryers, stoves, and kerosene heaters to the outside where possible. (Combustion appliances such as stoves and kerosene heaters produce water vapor and will increase the humidity unless vented to the outside.) Use air conditioners and/or de-humidifiers when needed. Run the bathroom fan or open the window when showering. Use exhaust fans or open windows whenever cooking, running the dishwasher or dishwashing, etc. Condensation on the inside of a windowpane. 12 Actions that will help prevent condensation: Reduce the humidity (see preceeding page). Increase ventilation or air movement by opening doors and/or windows, when practical. Use fans as needed. Cover cold surfaces, such as cold water pipes, with insulation. Increase air temperature. Mold growing on a wooden headboard in a room with high humidity. Renters: Report all plumbing leaks and moisture problems immediately to your building owner, manager, or superintendent. In cases where persistent water problems are not addressed, you may want to contact local, state, or federal health or housing authorities. 13 Testing or sampling for mold Is sampling for mold needed? In most cases, if visible mold growth is present, sampling is unnecessary. Since no EPA or other federal limits have been set for mold or mold spores, sampling cannot be used to check a building’s compliance with federal mold standards. Surface sampling may be useful to determine if an area has been adequately cleaned or remediated. Sampling for mold should be conducted by professionals who have specific experience in designing mold sampling protocols, sampling methods, and interpreting results. Sample analysis should follow analytical methods recommended by the American Industrial Hygiene Association (AIHA), the American Conference of Governmental Industrial Hygienists (ACGIH), or other professional organizations. Rust is an indicator that condensation occurs on this drainpipe. The pipe should be insulated to prevent condensation. 14 Suspicion of hidden mold You may suspect hidden mold if a building smells moldy, but you cannot see the source, or if you know there has been water damage and residents are reporting health problems. Mold may be hidden in places such as the back side of dry wall, wallpaper, or paneling, the top side of ceiling tiles, the underside of carpets and pads, etc. Other possible locations of hidden mold include areas inside walls around pipes (with leaking or condensing pipes), the surface of walls behind furniture (where condensation forms), inside ductwork, and in roof materials above ceiling tiles (due to roof leaks or insufficient insulation). Investigating hidden mold problems Investigating hidden mold problems may be difficult and will require caution when the investigation involves disturbing potential sites of mold growth. For example, removal of wallpaper can lead to a massive release of spores if there is mold growing on the underside of the paper. If you believe that you may have a hidden mold problem, consider hiring an experienced professional. Cleanup and Biocides Biocides are substances that can destroy living organisms. The use of a chemical or biocide that kills organisms such as mold (chlorine bleach, for example) is not recommended as a routine practice during mold cleanup. There may be instances, however, when professional judgment may indicate its use (for example, when immune-compromised individuals are present). In most cases, it is not possible or desirable to sterilize an area; a background level of mold spores will remain - these spores will not grow if the moisture problem has been resolved. If you choose to use disinfectants or biocides, always ventilate the area and exhaust the air to the outdoors. Never mix chlorine bleach solution with other cleaning solutions or detergents that contain ammonia because toxic fumes could be produced. Please note: Dead mold may still cause allergic reactions in some people, so it is not enough to simply kill the mold, it must also be removed. 15 Water stain on a basement wall — locate and fix the source of the water promptly. For more information on mold related issues including mold cleanup and moisture control/condensation/humidity issues, you can call the EPA Indoor Air Quality Information Clearinghouse at (800) 438-4318. Or visit:

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

LAND PATENTS

A land patent is an exclusive land grant made by a sovereign entity with respect to a particular tract of land. To make such a grant "patent", a sovereign (proprietary landowner) must document the land grant, securely sign and seal the document (patent), and openly publish the documents for the public to see. An official land patent is the highest evidence of right, title, and interest to a defined area. It is usually granted by a central, federal, or state government to an individual or to a private company. Besides patent, other terms for the certificate that grants such rights include first-title deed and final certificate. In the United States, all claims of land ownership can be traced back to a land patent, first-title deed, or similar document regarding land originally owned by France, Spain, the United Kingdom, Mexico, Russia, or Native Americans. A land patent is known in law as "letters patent", and usually issues to the original grantee and to their heirs and assigns forever. The patent stands as supreme title to the land because it attests that all evidence of title existent before its issue date was reviewed by the sovereign authority under which it was sealed and was so sealed as irrefutable; thus, at law the land patent itself so becomes the title to the land defined within its four corners. History of land patents in the United States of America Land in the United States of America was acquired by annexation, purchase, treaty or war from France, Great Britain, the Kingdom of Hawaii, Mexico, Russia, Spain and the Native American peoples. As England, later to become Great Britain, began to colonize America, the Crown made large grants of territory to individuals and companies. In turn, those companies and colonial governors later made smaller grants of land based on actual surveys of the land. Thus, in colonial America on the Atlantic seaboard, a connection was made between the surveying of a land tract and its "patenting" as private property. Many original colonies' land patents came from the corresponding country of control (e.g., Great Britain). Most such patents were permanently granted. Those patents are still in force; the United States government honors those patents by treaty law, and, as with all such land patents, they cannot be changed. After the American Revolution and the ratification of the Constitution of the United States, the United States Treasury Department was placed in charge of managing all public lands. In 1812, the General Land Office was created to assume that duty. In accord with specific Acts of Congress, and under the hand and seal of the President of the United States of America, the General Land Office issued more than 2 million land grants made patent (land patents), passing the title of specific parcels of public land from the nation to private parties (individuals or private companies). Some of the land so granted had survey or other costs associated with it. Some patentees paid those fees for their land in cash, others homesteaded a claim, and still others came into ownership via one of the many donation acts that Congress passed to transfer public lands to private ownership. Whatever the method, the General Land Office followed a two-step procedure in granting a patent. First, the private claimant went to the land office in the land district where the public land was located. The claimant filled out entry papers to select the public land, and the land office register (clerk) checked the local registrar records to make sure the claimed land was still available. The receiver (bursar) took the claimant's payment, because even homesteaders had to pay administrative fees. Next, the district land office register and receiver sent the paperwork to the General Land Office in Washington. That office double-checked the accuracy of the claim, its availability and the form of payment. Finally, the General Land Office issued a land patent for the claimed public land and sent it on to the President for his signature. The first United States land patent was issued on March 4, 1788, to John Martin.[1] That patent reserves to the United States one third of all gold, silver, lead and copper within the claimed land. A land patent for a 39.44-acre (15.96 ha) land parcel in present-day Monroe County, Ohio and within the Seven Ranges land tract. The parcel was sold by the Marietta Land Office in Marietta, Ohio in 1834. Usage restrictions (e.g., oil and mineral rights, roadways, ditches and canals) placed on the land are spelled out in the patent. Such private property rights can also be thereafter negotiated in accord with the terms of private contracts. The rights inherent in patented land are carried from heir to heir, heir to assignee, or assignee to assignee, and cannot be changed except by private contract (warranty deed, quitclaim deed, etc.). In most cases, the law of a particular piece of patented land will be governed by the Congressional Act or treaty under which it was acquired, or by terms spelled out in the patent. For example, in the United States the laws governing the land may involve the Homestead Act or reservations placed on the face of the patent, or the Treaty of Guadalupe Hidalgo, which governs certain jurisdictional dicta relating to large amounts of land in California and adjoining territories. Because most people become familiar with land rights only when they acquire real estate either by inheritance or through the process of a purchase contract, they never learn the difference between land and the property appurtenant to it. Accordingly, their familiarity with land law remains virtually non-existent; and, they only become accustomed to State statutory regulations relative to the property appurtenant to the land, that is to say: property taxing, zoning and building codes, etc. Former U.S. territories When a territory agreed to enter the Union of the United States of America, an Enabling Act was agreed to as a condition precedent of statehood. The Enabling Act requires that all unappropriated (not yet privately owned) lands be forever disclaimed by the territory and the people of the territory, and the title ceded to the United States for its disposition.[2] For example, the enabling act of the Washington Territory declares, in part: ... that the people inhabiting said proposed States do agree and declare that they forever disclaim all right and title to the unappropriated public lands lying within the boundaries thereof, and to all lands lying within said limits owned or held by any Indian or Indian tribes; and that until the title thereto shall have been extinguished by the United States, the same shall be and remain subject to the disposition of the United States. .. After the right and title to land was disclaimed by the people of the territory, it was held in trust by the United States until someone proved a claim to it, typically by improving the homestead parcel for a certain period of time. Once a proper claim has been filed, the General Land Office (now the Bureau of Land Management) certifies that the claimant has paid for a survey, as well as depositing another sum of money. Then, pursuant to the various land acts of Congress, the land is granted to the private owner by letters patent under the signature and seal of the President of the United States of America. Miscellaneous Legal entities other than natural persons (such as trusts and corporations) cannot obtain land patents except by express act of the United States Congress. An example of Congress granting land through patents to corprate entities is the railroad grants made to compensate the railroad companies for building railroads across America.[citation needed] A land patent is permanent and cannot be changed by the government after its issuance except in case of fraud, clerical error, or failure to pay the initial administrative fees.[citation needed] A statute of limitations

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHOLESALING

How To Use The Wholesale Real Estate Forms... The Wholesale Purchase Agreements are used to put a property under contract with the seller. Typically a wholesaler will assign the contract using one of the Wholesale Assignment Contracts for a specified assignment fee. Most investors are very aware that wholesalers make money assigning these real estate contracts and don't have a problem paying the assignment fee as long as they're buying at a price that they like. If you feel your investor or buyer will take issue with the assignment fee amount you'll want to arrange a double closing with your title company. Make sure you're using a "wholesaler friendly" title company that is familiar with double closings. ​If you're unsure if you'll be able to successfully sell a property because of price, condition, location or any other reason we suggest you use the Wholesale Real Estate Option to Purchase Contract. We use this agreement often and very successfully when we have doubts about a property. After we have viewed the property and we want to use the option agreement we'll usually say "The property doesn't meet our buying criteria but we often sell properties to other investors that purchase properties just like yours. If you like I can send the pictures and property information to them" (They have always said yes) "Great, tell me what's the lowest you'll take for the property as it sits if you can close within a couple weeks and the investor pays all your closing costs" Just fill out the option to purchase, have them sign it and start marketing the property to your buyers list! Finally, sometimes you might have a property in an area you don't have buyers, or buyers looking in an area you don't have any properties and you'll want to team up with another wholesaler, for that reason we've also provided a Wholesale JV Agreement above. Once you agree on the assignment split with the other wholesaler fill out the agreement, both of you sign it and personally send it to the title company handling the closing so there is no confusion and everyone gets

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A SHORT SALE?

What is a 'ShortSale?' A Short Sale takes place when homes are sold for less than the bank payoff, and the home seller does not have the funds to make up the difference. Contrary to the ideas of some, when any home with a mortgage is sold, the note that secures the deed of trust must be released by the bank. This is an industry way of saying, THE BANK HAS TO GET THEIR MONEY. If the sale is for less than the loan payoff, and the seller can't bring enough money to closing to pay the loan off, then a short sale must take place. The Good, The Bad, and the Ugly Good things about short sales, is that since 2007, banks have worked to simplify the process and allow for more short sales to take place. Also, in some cases, banks have taken a more liberal definition of what constitutes a 'hardship' than they once did. Also, as a result of legislation and the National Mortgage Settlement, some banks are required to allow for more short sales. Bad things about short sales from a buyer perspective is the time it takes to complete a sale, many Realtors don't know how to handle them, and the fact that negotiations usually don't take place. Short sales are unpredictable and lengthy, contrary to the normal 'home buying cycle'. The time it takes to get a bank response varies with each deal, and each bank. There is no "normal" length of time because all banks have their own way of handling things. Short sales are best handled when EVERY professional involved knows how to handle short sales. If the buyer's agent has experience, but the seller's agent doesn't, the process can be rocky and vice-versa. Buyer's like to negotiate. They like to make lower offers and see what they can get the seller to accept. Short sales don't usually allow for that. Offers are made, usually accepted by the seller, then sent off to the bank whether or not they will be ultimately accepted. The ugly part of buying short sales is the uncertainty and lack of consistency. Once a seller has accepted an offer and sent it to the bank, it could take one or more months for the banks to accept the offer, and several variables exist to complicate the process. The bank may accept the offer IF the seller is willing to contribute additional funds, which could end up killing the deal. Some times, buyers wait for several months, only to find out that they can't buy and the home is foreclosed on. Even if the offer is only slightly off, sometimes it is simply rejected by the bank, only to be sold for the same or close to the same price later. Sometimes there is no 'rhyme or reason' to how short sale negotiations take place.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

ESCALATION CLAUSE

During a buyer's market, home buyer's are agressive in their offers; making offers substantially below asking price with many seller concessions. As the market has shifted, buyer's have had to direct heir agressive tactics to fighting off other buyers instead of beating up on home seller's. While several things can help a buyer make moves quickly and win their desired home, one effective technique is known as an escalation clause. When making an offer on a home, having a Realtor add an escalation clause to the contract can effectively add additional money in specific increments to an offer price up to a maximum price if their is concern that another higher offer may be made. This can help a buyer make an offer that is fair, without offering more than asking price unless it becomes necessary. Usually an escalation clause will require evidence that a higher offer was received by the seller. This evidence "triggers" the escalation clause. What's especially nice is that many times, buyer's plan to negotiate upwards with a seller, so the escalation clause can help with that if warranted at the point of the initial offer. If not included, the initial offer can quickly be bypassed for another, higher offer.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE MYTH OF LIMITED SERVICE AGREEMENTS

The Myth of the 'Discount Listing' There are all kinds of business models that have been created in recent years to give home buyer's and seller's a choice in how they handle their real estate needs. During the height of the last seller's market, one business model that really took off was that of the limited service agent. Limited service agents took advantage of the quandry some home sellers found themselves in, when they wanted to sell 'by owner' without representation, but found that not having their home advertised in thelocal MLS, they missed out on buyer traffic. Limited service agents offer a payment up front, and places the listing on the MLS. The Myth Worst case scenario, is that the home seller is led to believe that they are getting the same services that aFULL SERVICE listing agent would give, but at a reduced rate. Nothing could be further from the truth! Often times, low rates are advertised that don't tell the whole picture about what will be charged. The impression that a home seller will save 6% is given, when in actuality, the fees are only about 2.5% less, but the overall seller net typically is reduced 4-8% when using limited service agents, and additional problems can occur, such as contracts being terminated at a higher rate, and longer listing periods (more carrying costs). And unlikeFULL SERVICE agents, fees are paid up front and are not refundable if the home doesn't sell. Most full service agents only charge a fee once the sale has closed, which is translated as a reward for a job well done! When homes are listed on the MLS, they advertise to buyer's agents what commission that is paid out to the buyer's agent. Usually limited service agents promote themselves by advertising extremely low rates, but don't include the amount the home seller would have to pay tobuyer's agents, which is normally around 3%. Limited service agents may be the right option for certain home seller's, but when its all over with, adding up the expenses incurred and time that it takes, the savings don't amount to as much as hoped for. Most home seller's don't consider the number of services they are missing out on by not working with afull service listing agent. Analysis on the success of limited service agents also tends to indicate a longer time on market and a lower selling price.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS THE MLS?

Realtor Tools: the MLS The modern day MLS (Multiple Listing Service) is the method that information on real estate for sale and sold properties are disseminated throughout the real estate community; from brokers to other brokers and to appraisers. The MLS is the evolution of what began ascooperative brokerage agreementsbetween real estate brokers allowing fellow brokers and agents to sell each other's inventory of unsold homes. These agreements were started between individual brokers consenting to split the commission paid to the listing agent in return for 'bringing a buyer' to the deal. Once it was established that homes sold much more quickly using these agreements, their use spread throughout the real estate profession. A system for organizing the amount of real estate listings was needed. Initially listings were published in newsletters, with Realtors having to keep track of other brokers newsletters. The first Multiple Listing Services were formed to allow a central publisher to publish all the available listings within an area. This made the process of advertising homes to other brokers much simpler with listings being available by subscription to the service. As computers began to be used, the process became more and more digitized. Today, virtually all real estate brokers and agents use their local MLS to advertise listings and to find listings for prospective home buyers. MLS systems have been fully computerized in the St Louis area by Mid America Regional Information Systems (MARIS) since 1997. This allows for up to the minute collection of new listings, changes and showing information so that agents can better focus on doing their job instead of laboring to gather information. The MLS has powerful search features that give Realtors a definate advantage in being able to search either very broadly or very limited criteria to fit the search to the situation. Buyer's only wanting to see a small number (narrow range) of properties can do that, while buyer's that want to sift through hundreds of listings (or more) can do that with the right criteria being used by their Realtor. What this means for the buyer getting more information in less work. The past 6 years has seen the advent of a new tool for prospective home buyers: IDX. IDX (Internet Data Exchange) was established to provide an abbreviated MLS service to home buyers directly from real estate brokers or other direct marketing sites. IDX is not only a benefit to home buyers in their increased access to real estate listings they seek, but also is a benefit to Realtors, in that home buyers are able start the home search process prior to contacting their Realtor. IDX, while very useful, is not as up to date, relevant, or as specific as the actual MLS. This gives buyer's looking for the ideal search an incentive to begin working with a Realtor after preliminary searches on IDX sites become to limited or incomplete. One example of this limit, is that the MLS shows in real time when a listing goes "under contract", whereas the IDX search would display the unavailable 'pending' sale property until it closes without any indication that it has already been sold.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

LAND SURVEYS

Land Survey: Defining a Property Often times when showing properties, a client asks me, "Where is the property lines?" As a purveyor of properties, it would make sense that we have an answer, but that is the purpose of the land survey. Common indicators of boundaries such as where the grass is cut, location of fences and landscaping and even etched lines on the curb are not always reliable. Two types of surveys exist in St Louis real estate transactions: Spot Survey Stake Survey They can be called by other names too, and basically are differences in the level of detail. The Stake Survey, otherwise known as a full survey, looks at the boundary of the property and its relationship to the improvements within. It is the best survey to purchase, and is recommended by Premier Realty Exclusive in all circumstances. It costs more, but in with home ownership, a full survey allows for the owner to be certain about what space they are in control of and plan for any future improvements to the property such as fences, sidewalks and more. The Spot survey is simply an abbreviated form of reporting, where the boundaries of the property are shown, and a rough estimate of where the home sits within the boundaries is placed on the survey. Improvements such as sidewalks, driveways and fences are often times not included in this report. Sometimes this report is the minimum requirement of the lender. Surveys are usually acceptable by the title company if they are less than 10 years old and no other improvements have been added to the property, so often times buyers may ask the seller if they have a copy of a survey to give to the buyer. The danger of this can be that the seller only purchased a spot survey, which can't be relied upon for practical uses.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

SELLING A HOUSE IN KANSAS

Here’s an overview of the basics, including seller disclosure requirements. Most listing agents will want you to sign an exclusive right to sell listing, which obligates you to pay a commission to the agent regardless of who brings in the buyer. Working With a Real Estate Agent Most people selling their home in Kansas work with a licensed real estate broker or agent. A good real estate agent will help price your house, based on acomparative market analysis(or comps), accurately assessing the current values of similar homes in your area; effectively market your house to prospective buyers; and handle other tasks, such as reviewing buyer offers and negotiating with buyers. Before signing a listing agreement (discussed below) with any agent, get references from other home sellers and check customer reviews on sites such asZillowandTrulia. You can find licensed Kansas real estate agents at theKansas Real Estate Commission’s License Verification. Home sales in Kansas were up 7.5% in 2015, compared to 2014. Source: Kansas Housing Market Stats , December 2015, Kansas Association of Realtors Signing a Listing Agreement in Kansas Once you find a real estate agent you want to work with, you’ll sign a “listing agreement” giving the agent the right to market and handle the sale of your house. Most real estate agents use standard forms created by their state or local Realtor association, such as theKansas Association of Realtors. Listing agreements typically cover the following terms. The real estate agent commission that you (the seller) will pay.This typically ranges from 5-6% of the house sales price, and is split between your real estate agent and the buyer’s agent. The type of listing.Most listing agents will want you to sign anexclusive right to sell listing,which obligates you to pay a commission to the agent regardless of who brings in the buyer. (See the sampleKansas Real Estate Commission's Exclusive Right to Sell Contract.) Other arrangements are possible, however, such as anopen listing, in which you agree to pay a commission to whichever agent brings in a buyer, or anexclusive agency listing,in which you agree that your agent is the only agent authorized to sell your house, but that you will pay a commission only if the agent brings in the buyer (not, for example, if you do). Duration of listing.In all cases, the listing agreement will cover a set amount of time, such as 60 or 90 days. Listing price.Your agent will recommend the appropriate selling price by comparing prices of similar homes (“comps”) that have been listed in your immediate area, based on his or her experience and data found in a Multiple Listing Service (MLS). To educate yourself as to whether the agent is recommending an appropriate price, theNational Association of Realtors’ websiteis a good source of information on prices of houses currently on the market, and websites such asZillowandTruliaprovide data on actual sales prices. See the Nolo article,Listing Your House: What List Price Should You Set?For more details. Items included or not included in the sale.For example, you may plan to leave behind a built-in dishwasher (which is therefore part of the property that the agent is contracted to sell), but exclude a refrigerator that you plan to move to your new home. Duties and obligations of seller and real estate agent. Your agreement will spell out how the real estate agent will list or market your house, what type of insurance you must maintain on the property, and what disclosures you must make. Making Real Estate Disclosures in Kansas Unlike many other states, there are very few specific seller disclosure requirements in Kansas. The main statutes addressing disclosure are found under the Brokerage Relationships in Real Estate Transactions Act (Kansas Statutes Section 58-30,106). When sellers are using a broker, the statute reads in relevant part: (d)(1) A seller's or landlord's agent owes no duty or obligation to a customer, except that a licensee shall disclose to any customer all adverse material facts actually known by the licensee, including, but not limited to: (A) Any environmental hazards affecting the property which are required by law to be disclosed; (B) the physical condition of the property; (C) any material defects in the property; (D) any material defects in the title to the property; or (E) any material limitation on the client's ability to perform under the terms of the contract. And, if the seller/broker makes disclosures that are false, incorrect, or omit material facts, it can be a violation ofKansas Statutes Section 50-626(“Deceptive acts and practices” under the Kansas Consumer Protection Act). Also, there are requirements that Kansas sellers must include the following specific disclosures in sales contracts: brokerage relationship disclosure language (Kansas Statutes Section 58-30,110(c).) any special assessments (Kansas Statutes Section 12-6a20.) a radon gas notice (Kansas Statutes Section 58-3078a.), and disclosure of potential proximity of registered offenders to the property (Kansas Statutes Section 58-3078.) Your real estate agent should be able to provide specific details on Kansas seller disclosure requirements and practices and relevant forms (for a sample, see theKansas City Regional Association of Realtors’Seller’s Disclosure and Condition of Property Addendum form). What Goes Into Kansas Offers, Counteroffers, and Purchase Agreements A buyer who wants to purchase a particular Kansas home will make the seller a written offer, specifying the price, proposed down payment, and any contingencies, such as a satisfactory inspection report. (See the Nolo articleContingencies to Include in Your House Purchase Contractfor details). Other common contingencies include the buyers’ arranging financing or selling their current house. You may reject an offer outright, accept it as, or (more typically) respond to a buyer’s offer, with a counteroffer. A counteroffer accepts some or most of the offer terms, but suggests changes to others, such as a higher price or a closing date that’s sooner than the buyer proposed. A legally binding contract, typically called a purchase agreement, is formed when you accept a final offer (agreeing to any changes from the original offer), and notify the buyer of its acceptance. Your agreement will contain key terms of the sale, such as the agreed-upon price, contingencies, financing terms, dispute resolution, and closing date. Once a purchase agreement is signed by both buyer and seller, the transaction will go into what’s called “escrow.” What Is Escrow? Escrow is the time period between signing the purchase agreement and closing on the house. You will choose an escrow or title agent, a neutral third party, to serve as intermediary and supervise the process (preparing title reports, processing loans, removing buyer contingencies, and so on). The buyer typically has a lot more to do during this time period than the seller. By the close of escrow, the buyer will need to finalize financing, remove all contingencies, have the house appraised (typically required by mortgage lenders), and gettitle insurance—usually under set deadlines. Issues often come up that require negotiating, such as who will pay for repair problems identified in an inspection report. The buyer may insist that you pay to remedy a defect or lower the purchase price. If you cannot reach an acceptable agreement, the buyer may have the right to back out of the deal. What Happens at the Closing of Your Kansas Home By the close of escrow (known as the closing or settlement), you and the buyer should have fulfilled all the terms of your purchase agreement. At the closing itself (sometimes a meeting of the parties, other times conducted in separate locations), all final documents and funds will be exchanged between buyer and seller. The buyer pays you the purchase price, and you give the buyer a deed and other transfer documents and clear title to the house or condo. You pay off any outstanding loans on your property and pay commissions to the real estate agents (per your listing agreement). The closing normally takes place on one day, though it’s possible to go over several days. Sellers do not usually need to be present at a Kansas closing so long as all costs are paid and documents are signed.Typically, the buyers will sign the final documents at the office of their title company or escrow agent and pick up the keys. Then the buyers will record the new deed their name at a local government office, and the home is officially theirs. For more details, seeEscrow and Closing in Buying or Selling a Home. You’ll also find useful information onSandy Gadow’s website, Buying, Selling, and Closing Simplified, which includes astate-by-state guide to closing practices. Working With a Lawyer Unlike some states, Kansas does not require that sellers involve a lawyer in the house-selling transaction. Even if it’s not required, you may decide to engage a lawyer at some point in the process—for example, to review the final contract or to assist with closing details. Or, you may want a lawyer’s help drafting a lease agreement if you plan to rent the home back for an extended period of time after the house closing, or if problems show up on the title report. And if you are selling your home without a real estate agent (a “for sale by owner” or FSBO), it may be useful to hire an attorney to help with the legal

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

4 EASY STEPS TO A GREAT WHOLESALE DEAL

The real estate market is roaring back! And today’s market can be good news forwholesalerswho learn to capitalize on these opportunities. The real estate market is roaring back! One of the primary reasons prices are escalating fast is because of the reduced bottom-feeder inventory of cheap houses, as a result of the drastically declining inventory of foreclosures. The very best foreclosure deals are routinely receiving a bidding war and only the highest bidder gets to buy the house. A myth about wholesaling real estate is that it only works on single-family “junker” houses. Wholesaling works with all asset classes of real estate including single family, duplex, multi-family, mobile homes, commercial, land, etc. Here’s a case study of an actual wholesale real estate deal I completed on an apartment complex. Step 1: Find a Motivated Seller I like to use a team of bird dogs to help me find deals. The up-front marketing expense with bird dogs does not cost a penny. One of my bird dogs, named Tameka, contacted me with information on a motivated seller. She told me the seller has two duplexes, a multi-family property, and a single family home to sell. I spoke to the seller over the phone,screened his desire to sell, and knew he had non-performing assets (property sitting vacant with deferred maintenance). I met the seller, Wayne, at his towing business. We discussed his situation and why he was selling. The multi-family property was his biggest point of pain as it was 32 units and had just 6 tenants occupying units. It also had plenty of deferred maintenance, which is why he could not rent all the units. Step 2: Control Without Ownership We began negotiating on his 32-unit apartment complex. Wayne wanted no less then $545,000. After a lot of back and forth discussions, we settled at a price of $500,000. We then signed an option contract that would allow me to control the real estate, gain equitable interest, and allow me to wholesale the apartment complex. The consideration deposit to ratify the contract was $50, and we arranged to gain access to the vacant apartments using my lock box. Step 3: Find a Buyer I packaged the property with photos and relevant information on comps, repairs, etc. and began to market the opportunity tomy buyers listcommunity. I decided to sell the apartment complex for $575,000, which would allow me to enjoya $75,000 gross profit. Within a few days, I had two buyers who wanted to see the apartment complex. I met them both, but my buyer John was absolutely ready to buy his second apartment complex, and this one was the perfect opportunity for John. So I signed a contract with him to sell him the apartment complex for full price of $575,000, “as is” and without contingencies. Step 4: Collect your cash I took my option contract with my motivated seller (Wayne) and my sales contract with my buyer (John) and opened escrow at my local title company. The transaction: Buying the apartment complex from Wayne for: $500,000 Selling the apartment complex to John for : $575,000 I instructed my title company to do this transaction as a “simultaneous closing.” As a simultaneous closing, I would not be required to bring any of my own funds to closing. The funds from my buyer John would be used for the entire transaction, and I walk away from closing with the difference between my buy contract and my sell contract which totaled approximately $72,000. I paid my bird dog, Tameka, $500 for finding this deal, and she made an additional $1,500 when I wholesaled the other three properties from the same motivated seller. This is a wholesale deal case study with a lot of teaching points, including finding motivated sellers, controlling real estate, building your buyers list, and structuring simultaneous closings that allow you to profitwithout cash or creditto invest. This is a great market to build a real estate wholesaling business. The days of lazy investors buying directly off the MLS are coming to a close. It’s becoming hard to find great deals again, andthat is great news for wholesalerswho can structure deals directly withmotivated

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

10 HABITS OF SUCCESSFUL REAL ESTATE INVESTORS

Joint ventures, wholesaling and property management are just a few of the ways investors can profit from real estate, but it takes a little savvy to become successful in this competitive arena. While certain universities offer coursework and programs that specifically benefit real estate investors, a degree is not necessarily a prerequisite to profitable real estate investing. Whether an investor has a degree or not, there are certain characteristics that top real estate investors commonly possess. Here are the 10 habits that highly effective real estate investors share. 1. Make a Plan Real estate investors must approach their real estate activities as a business in order to establish and achieve short- and long-term goals. A business plan also allows investors to visualize the big picture, which helps maintain focus on the goals rather than on any minor setbacks. Real estate investing can be complicated and demanding, and a solid plan can keep investors organized and on task. 2. Know the Market Effective real estate investors acquire an in-depth knowledge of their selected market(s). Keeping abreast of current trends – including any changes in consumer spending habits, mortgage rates and the unemployment rate, to name a few – lets real estate investors acknowledge current conditions and plan for the future. This enables them to predict when trends may change, creating potential opportunities for the prepared investor. 3. Be Honest Real estate investors are usually not obligated to uphold a particular degree of ethics. Although it would be easy to take advantage of this situation, most successful real estate investors maintain high ethical standards. Since real estate investing involves people, an investor's reputation is likely to be far reaching. Effective real estate investors know it is better to be fair, rather than to see what they can get away with. 4. Develop a Niche It is important for investors to develop a focus in order to gain the depth of knowledge essential to becoming successful. Taking the time to build this level of understanding of a specific area is integral to long-term success. Once a particular market is mastered, the investor can move on to additional areas using the same in-depth approach. 5. Encourage Referrals Referrals generate a sizable portion of a real estate investor's business, so it is critical that investors treat others with respect. This includes business partners, associates, clients, renters and anyone with whom the investor has a business relationship. Effective real estate investors pay attention to detail, listen and respond to complaints and concerns, and represent their business in a positive and professional manner. This builds the kind of reputation that makes others interested in working with those investors. 6. Stay Educated As with any business, it is imperative to stay up to date with the laws, regulations, terminology and trends that form the basis of the real estate investor's business. Investors who fall behind risk not only losing momentum in their businesses, but also legal ramifications if laws are ignored or broken. Successful real estate investors stay educated and adapt to any regulatory changes or economic trends. 7. Understand the Risks Stock or futures market investors are inundated with warnings regarding the inherent risks involved in investing. Real estate investors, however, are more likely to see advertisements claiming just the opposite: that it is easy to make money in real estate. Prudent real estate investors understand the risks – not only in terms of real estate deals, but also the legal implications involved – and adjust their businesses to reduce those risks. 8. Invest in an Accountant Taxes comprise a significant portion of a real estate investor's yearly expenses. Understanding current tax laws can be complicated and take time away from the business at hand. Sharp real estate investors retain the services of a qualified, reputable accountant to handle the business's books. The costs associated with the accountant can be negligible when compared to the savings a professional can bring to the business. 9. Find Help Learning the real estate investing business is challenging to someone attempting to do things on their own. Effective real estate investors often attribute part of their success to others – whether a mentor, lawyer or supportive friend. Rather than risk time and money tackling a difficult problem alone, successful real estate investors know it is worth the additional costs (in terms of money and ego) to embrace other people's expertise. 10. Build a Network A network can provide important support and create opportunities for both new and experienced real estate investors. This type of group – comprised of a well-chosen mentor, business partners, clients or members of a non-profit organization – allows investors to challenge and support one another. Because much of real estate investing relies on experiential learning, savvy real estate investors understand the importance of building a network. The Bottom Line Despite abundant advertisements claiming that real estate investing is an easy way to wealth, it is in fact a challenging business requiring expertise, planning and focus. In addition, because the business revolves around people, investors benefit in the long run by operating with integrity and by showing respect to associates and clients. Though it may be relatively simple to earn short-lived profits, developing a long-term real estate investing business requires skill, effort and these 10 important

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO WHEN TO HIRE A REAL ESTATE ATTORNEY

Every seller pays for a real estate attorney or title company whether they sell a house with an agent or FSBO. Hire a lawyer to protect your home sale and a title company to coordinate the paperwork. What a Good Lawyer Does for FSBO Sellers There are many, many variables in the real estate sale and purchase process that require you to make decisions:How much should I list my home for? Should I sell my home now, or wait another month? Should I paint my walls white, or buff?You get a break with this one: Don’t just think about hiring a real estate attorney, hire one as soon as you move into the closing phase. There is just too much at stake to risk letting some sort of legal snafu torpedo your sale. Your state might require you to hire an attorney, but even if that’s not the case, don’t skimp on this worthwhile expenditure (likely less than $500). An attorney will guide you through the paperwork, ensuring that you are complying with state law every step of the way. Your real estate attorney will also work closely with the title or settlement company and the buyer’s attorney to make sure that the transaction proceeds smoothly. A local real estate attorney is likely to have worked with the title company and opposing attorney on past transactions, making it even more likely that your deal will move forward without complications. The last place you want to be is at the closing table with a professional closer and your buyer’s attorney staring at you and expecting you to respond to a legal question that you are not prepared to answer. You need an experienced advocate on your side to be certain that your interests are always represented. How to Choose a Title Insurance Company Once you’ve hired an attorney, ask her for a recommendation of a title company or settlement agent to hire for your closing. Don’t hire that company before doing research about its costs vs. competitors and reputation in the marketplace. With a real estate attorney recommendation you’ll have a good starting point. Also, title insurance industry practices vary due to differences in state law and local real estate custom. Find out from your attorney what the local practices and customs are in the title business in your local market. In most states, home sellers pay for the owner’s title insurance policy, in effect paying to assure the buyer that the home is really theirs to sell. The fee that the seller pays includes the property search done by the title company and the policy for the new owner. (The buyer typically pays for the policy that protects their mortgage lender). Because the seller is bearing the upfront title search cost, the seller has the right to choose the title

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO 11 BEST FSBO WEBSITES

11 Best For Sale by Owner Sites 2018 By Allison Bethell on April 22, 2018 | Real Estate Investing | Comments (4) A for sale by owner (FSBO) is a property sold by the owner without the assistance of a Realtor. Generally, homeowners save as much as 5 percent to 6 percent in real estate commissions and sometimes pass some savings onto the buyer. Buyers can find these listings on FSBO-specific sites as well as more traditional sites like Zillow. There are numerous options available as contenders for the best for sale by owner sites. Top 11 Best For Sale by Owner Sites FSBO Site Best For For Sale by Owner FSBO-specific listings on a leading FSBO website FSBO.com FSBO buyers and sellers looking for a FSBO-specific site similar to For Sale by Owner Fizber Smaller FSBO-specific site with a free basic listing package Owners.com FSBO-specific listings on a FSBO site comparable to Fizber Zillow & Trulia Best overall non-FSBO-specific website that also offers specific FSBO listings Redfin Those looking for a general real estate listing site similar to Zillow for their FSBO HomeFinder.com Another non-FSBO-specific listing site with a section for residential FSBO buyers and sellers eBay Best overall auction website that allows for the buying and selling of FSBOs Craigslist FSBO buyers and sellers who are looking for a stripped-down listing site with a large reach LoopNet Another general listing site option that allows for FSBO listings Facebook Those looking to list their FSBO on a large social network with a marketplace and advertising How We Determined the Best FSBO Sites To determine the best for sale by owner sites, we looked at a variety of factors including how much it costs to list your property on the site as well as what features the site has, such as easy search functionality and interior and exterior photos. We also looked at the general traffic on each site. Although you may think that Zillow would be the top place to list and look for FSBOs since it has the widest network, we recommend that buyers and sellers first use an FSBO-specific site and then expand their reach to all other applicable sites, including Zillow. The rationale behind this is that investors who buy FSBOs often visit FSBO-specific sites since there’s less competition and they feel like they can get a better deal by negotiating directly with the homeowner. On the contrary, Zillow attracts more owner-occupant buyers who are working with their own Realtors. We researched the best for sale by owner sites and determined the top ones by using the following criteria: Cost to use the site Site features Traffic on the site Types of properties the site lists Areas the sites serve (we only included nationwide or mostly nationwide sites) After compiling a list of the best for sale by owner sites, we recommend listing your property on all of them to gain the most market exposure. Since you’re saving money on real estate commissions, you might as well spend the money to list your property on every site including non-FSBO sites like Zillow. Some of the sites are free and some offer listing packages that range from $99 to more than $495, which is significantly cheaper than a 5 to 6 percent real estate commission. By the same token, buyers of FSBOs should also leverage all available sites. The reason for this is that if sellers are trying to leverage the widest network by listing on multiple sites, you can increase your chances of finding the right FSBO for your situation. Therefore, both buyers and sellers should use an FSBO-specific site if money or time is an issue and all of the sites if not. For more information on how to find, finance and purchase FSBOs check out our in-depth FSBO guide. Top FSBO Sites Out of the 11 sites on our list, four sites are exclusively for FSBO properties, like FSBO.com. The remaining sites on our list are used for FSBOs as well as properties listed with a Realtor, rentals, auction items and foreclosures. For example, Zillow is one of the top real estate sites that list Realtor’s listings, rentals and FSBOs. The 11 best for sale by owner sites are: For Sale By Owner-Best For Sale by Owner Sites-Tips from Pro For Sale By Owner Price per Listing: $99 per month or $349 or $499 one-time fee (free 14-day trial) Types of Properties: Residential including condos, townhomes and single-family properties Monthly Site Traffic: 1,780,000 For Sale By Owner claims that it is the leading FSBO site in the United States. It has been around since 1999 and is backed by the Tribune Publishing Company. According to the site, it saved sellers more than $70 million in real estate commissions in 2013 alone. The site is easy to use, and you can create a free account, starting the free 14-day trial once you upload your house details and photos. After the trial ends, or if you chose to forego the trial, you can choose from one of their listing packages, which are $99 per month or one-time fees of $349 or $499. Packages include unlimited photos, yard signs and customized brochures. The $499 package also includes listing your property on the Multiple Listing Service (MLS) and on Redfin. For Sale by Owner is right for you if you want to list or buy a property on a site exclusively for FSBOs. You can get a feel of the site with the free 14-day trial and then pick the best package that suits your budget and needs. It’s recommended to use this site as well as others on the best for sale by owner sites list. FSBO.com-Best For Sale by Owner Sites-Tips from Pro FSBO.com Price per Listing: $99.95 for 12 months or $399.95 for six months Types of Properties: Residential including single-family homes, condos and townhomes Monthly Site Traffic: 63,420 FSBO.com is a global site and has been in business for more than 20 years. Its main goal is to connect buyers and sellers of FSBOs in a cost-effective manner. There are two packages from which sellers can choose. The first is an FSBO package which is $99.95 for 12 months and includes unlimited photos, a video and listing on the site as well as a Redfin listing. The second package is an MLS package, which lists the FSBO on the MLS, Zillow, Redfin and Realtor.com for six months for $399.95. While this is an FSBO site, the six-month package does come with a Realtor’s commission, which is set up front and is usually an additional 2 to 3 percent of the sales price, which is still less than the normal 5 to 6 percent. Yard signs are included as well. FSBO.com is right for sellers who want to sell their FSBO on one of the most well-known dedicated FSBO sites. It’s a good idea to use this site in conjunction with the other best FSBO sites mentioned on our list and also helpful if you want them to list your property on multiple sites so you don’t have to. Fizber-Best For Sale by Owner Sites-Tips from Pro Fizber Price per Listing: Free for a basic listing and $99 to $439 for listing packages Types of Properties: Residential including single-family homes, condos and townhomes Monthly Site Traffic: 210,430 Fizber isn’t as well-known as some of the other FSBO-specific sites but it offers customizable listing options to homeowners who want to sell their FSBOs. The site claims to save the average seller $15,000 in commissions. It also has a proprietary drive score for each property and a property tax estimator tool. Alongside its FSBO listings, Fizber also shows properties that are listed with Realtors. You can list your property for free on Fizber once you create a free account or you can select from one of their paid packages. The packages range from $99 to $349 and are generally one-time fees that include extra photos and listings on Zillow and Redfin in addition to the Fizber listing. Some packages also include listings on the MLS and Realtor.com along with a video tour, printable brochures and an open house organizer. Fizber is right for sellers who want a free FSBO site to list on with no trial period and who may want to upgrade their listing to a paid FSBO. It’s recommended that you use the site along with the others FSBO sites mentioned on our list. Owners.com-Best For Sale by Owner Sites-Tips from Pro Owners.com Price per Listing: $79 to $495-plus for six- to 12-month packages (21-day free trial) Types of Properties: Residential properties including single-family homes and condos Monthly Site Traffic: 384,210 Owners.com started in 1996 as an online directory for FSBOs. In 2001, it started letting sellers post their own properties directly on the site. It offers owners the options of signing up for a free account and creating a listing with a description and photos that is free for the first 21 days. However, this listing won’t appear on any other sites besides Owners.com. If you choose a premium listing package, your FSBO will also appear on Realtor.com. They also offer packages that include six- and 12-month listings with more photos and videos. Some of these packages will be featured on other sites and the MLS and include state-specific real estate contracts, which are helpful for buyers and sellers who aren’t familiar with a real estate purchase contract or don’t know where to get one. It all just depends on how much you want to spend. Owners.com is good for FSBO sellers who want to list their property on a site that’s specifically for FSBOs. It’s a versatile site so is good for you if you want the option of a flat-fee MLS or a specialty listing package. It should be used in combination with the other FSBO sites on the list for additional exposure. Zillow - best for sale by owner sites Zillow & Trulia Price per Listing: Free for all FSBO listings Types of Properties: Residential with separate sections for new construction and foreclosures Monthly Site Traffic: 165,550,000 Zillow was founded in 2004 in Seattle and is among the nation’s leading real estate sites and recently acquired Trulia. However, it’s not an FSBO-specific site but you can list FSBOs on it. It offers a very detailed map so you can click on the area you’re in to locate properties, which makes it easy to use for both buyers and sellers. To specifically search for an FSBO to buy, click on “Buy” and then click on the “For Sale by Owner” section. You do need to create an account to list your FSBO but it’s free and can be done in a few minutes. Once you create an account, you sign in and begin uploading photos and putting in the description details, such as the number of bedrooms, number of bathrooms and amenities. The final listing looks highly presentable compared to some of the FSBO sites and the photos really stand out. Zillow also gives you a Zestimate for your property, which is an estimated market value using their proprietary formula. Zillow is right for anyone who wants to sell their FSBO. Since it’s one of the most well-known real estate sites and is free, it should be used in addition to the other sites on this list. Redfin-Best For Sale by Owner Sites-Tips from Pro Redfin Price per Listing: Starts at 1 percent of sales price, and it offers buyers an average $2,000 refund Types of Properties: Residential properties including single-family homes and condos Monthly Site Traffic: 31,970,000 Redfin was started in 2002 and is an online real estate marketplace and a brokerage for buying and selling property. This means that it has its own agents so it’s not a typical FSBO site. However, the commissions are usually much lower than what typical real estate brokerages charge. You work with a local agent to get your listing sold with commissions starting at 1 percent of the listing price, compared to average 6 percent commissions at most other brokerages. You can enter your property address and request a free consultation and then decide if you want to list with them. Generally, no fees are due upfront and the Realtor will put your property on the MLS. They also update their site every 10 minutes so the listings are always fresh. Redfin is right for you if you don’t want to pay the standard Realtor’s commission but still want the assistance of an agent. If you choose to use Redfin, you don’t need to use any other paid sites since the agent will market the house for you. HomeFinder.com-Best For Sale by Owner Sites-Tips from Pro HomeFinder.com Price per Listing: $39 per month per FSBO listing Types of Properties: Residential properties with a separate section for auctions Monthly Site Traffic: 952,840 HomeFinder.com is a marketplace connecting nationwide buyers, sellers and real estate professionals. It also has an auction section and links to preferred mortgage lenders. It has been in business for 15 years but some users have noted a lack of inventory in different areas. You do need to create an account and the cost to list your property is $39 per month, which includes one listing with a description and property photos. The listings are aesthetically pleasing and look like what you may find in a real estate magazine. Homefinder.com is right for property owners who want an affordable and easy-to-use site to list their property on. However, it’s not as well known as some of the other sites on our list, so we recommend using this site in addition to other best for sale by owner sites, if at all. Ebay-Best For Sale by Owner Sites-Tips from Pro eBay Price per Listing: $150-plus for 30 days, $300-plus for 90 days, plus fees for listing upgrades Types of Properties: Residential, commercial and timeshares Monthly Site Traffic: 1,260,000,000 eBay was founded in 1995 and became a success during the dot-com era. Today, it has more than 160 million shoppers but the majority of them aren’t looking for real estate deals. It’s mostly used by worldwide buyers and sellers as an auction site for everything ranging from household items to electronics to cars and furniture. However, there’s quite a large real estate marketplace with more than 1,200 listings. Listings can be auction, fixed price or classified ad style. You need to create an account in order to sell on eBay, and you must own the real estate yourself in order to sell it on this site. Once you create and verify your account, it’s simple to set up your listing using their template, which includes things like location, number of bedrooms, property features and photos. eBay is right for you if you want to auction off your property and want access to buyers from all around the world. Don’t worry as you can set a reserve price for your property so it won’t be sold for less than you agree to. It’s most effective when combining this site with others on the list. Craigslis-Best For Sale by Owner Sites-Tips from Pro Craigslist Price per Listing: Free for all non-real estate agents and brokers Types of Properties: Residential and commercial Monthly Site Traffic: 775,310,000 Craigslist was started in 1995 and today is the ninth-most-visited site in the entire U.S. It’s not known for being the most reputable site since there aren’t many guidelines in place to verify buyer’s and seller’s identities and if they actually own the property they’re listing. However, it’s a very popular option for property owners who want to sell their home as an FSBO. The site sells condos, commercial properties, multifamily properties, single-family homes and even the occasional apartment building. The length of the listing is 45 days and then it needs to be renewed. Craigslist is right for you if you want to stick to a budget and list your property for free. It should also be included even if you have a larger budget since it’s a high traffic site. You will need to vet the callers yourself and the site has some tips to avoid scams, such as dealing locally. Loopnet-Best For Sale by Owner Sites-Tips from Pro LoopNet Price per Listing: Free for a basic listing; call for premium listing Types of Properties: Commercial Monthly Site Traffic: 5,940,000 LoopNet is the largest online marketplace for commercial real estate and was founded in 1995. It receives more than 5 million visitors per month and has more than 500,000 listings. They will also list your FSBO on CoStar, which is used by more than 93 percent of the top commercial brokerages. You can upload your commercial property listing online easily by creating a free account. Then, you add the property description, location information and upload photos. If you want a premium listing, you need to contact the client service team and they will explain the pricing and benefits to you. This site is right for you if you’re the owner of a commercial property and want to sell it yourself. Since the site is solely for commercial real estate, its visitors are specifically looking for commercial properties. This is unlike most of the other sites where visitors may be primarily interested in residential properties. Facebook -Best For Sale by Owner Sites-Tips from Pro Facebook Price per Listing: Free to share your property to Facebook Marketplace Types of Properties: All property types but mostly residential properties Monthly Site Traffic: 27,750,000,000 Facebook isn’t usually what comes to mind when you think of sites to list your for sale by owner property on but it’s the third-most-visited site in the world with more than 2 billion users per month. Of course, most of those users aren’t there to buy or sell real estate but some of them just might be there for that purpose. You can list your FSBO on Facebook in a few different ways. First, you can upload a photo and a description and share it with your friends. This is the most popular way but doesn’t get as much traffic as the other options. Secondly, you can add your property to Facebook Marketplace, which is like a digital store similar to Craigslist, connecting you with other Facebook users interested in your property. Lastly, and potentially the most effective way, is to purchase Facebook ads. You can advertise based on demographics, location and household income, and you can spend as little as $20 or in the tens of thousands of dollars. Since you do need a listing for this to work, you should use this strategy in conjunction with an existing listing or Facebook Marketplace. Facebook is best for you if you want to run Facebook ads in conjunction with other listings. Facebook Marketplace is similar to Craigslist in this manner. Frequently Asked Questions (FAQs) Can I List My Property on the MLS Without Using a Realtor? You can’t list your house yourself on the MLS. However, you can either hire a Realtor or a company that charges a fee to list your property on the MLS for you. Some of these companies refer to themselves as “flat-fee brokerages.” Can You List Your Property for Sale on Trulia Without Using a Realtor? Yes, you can and you will be directed to Zillow’s site since Zillow acquired Trulia. Then, you should go to the “For Sale by Owner” section, which is free for buyers and sellers. What is the Best Website to Sell Your House? If you’re not using a Realtor, it’s best to list your house on as many of the best for sale by owner sites as your budget and time allow. I recommend listing on each of the sites on our list. Even by paying to list your home on multiple sites, you’re still saving money since you’re not paying a Realtor’s commission. Generally, the more exposure your property gets, the more likely it is that you will receive an offer. Bottom Line Selling your house as an FSBO can be a long, time-consuming process but, if accomplished, can save you thousands of dollars in real estate commissions. We recommend listing your property on as many FSBO sites as your time and budget allows. If you’re buying an investment property, we recommend checking out the properties on the best for sale by owner sites like FSBO.com first since you can usually negotiate more with an FSBO than with a property listed with a Realtor. About the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO SELLERS IN A DOWN MARKET

Tough times can motivate, frustrate agent-less sellers Four years ago, when Judy Cruz decided to try to sell her house on her own, it couldn’t have been easier. She struck up a conversation with a neighbor who said he’d love to buy it from her. Deal done. But when she decided to sell her Chicago condo this year, it was a different story. “I tried advertising it online for four months,” said Cruz, who explained that posting free classifieds on Craigslist were the sum of her efforts. “The only calls I got — and I think there were just five — were from people who wanted to know if I would consider rent-to-own.” That wasn’t an option, so right after Memorial Day she gave up and listed the unit with an agent. Her for-sale-by-owner experiences are a familiar story line in housing’s then-vs.-now saga, where time and effort have acquired new, sometimes painful meaning. But “bottom line” has new meaning, too, considering home values have declined and the notion of milking every dime from a transaction has inspired many sellers to dig in their heels and go it alone to pocket the money they might otherwise have paid an agent. So, even in a daunting down market such as this one — or perhaps because of it — the FSBOs are out there, amounting to perhaps 20 percent of all homes on the market today, by some estimates. Money motivates “In 2003, I could have sold this house in a heartbeat,” said John Kerkam, who in May began advertising online for a buyer for his mountain cabin in Loudon County, Va., outside Washington, D.C. After one week, his ads had generated two calls, which he viewed as a good start. He says his eyes are wide open to housing’s changed picture. Although over the years the former contractor built and fairly easily sold three homes on his own, he expects the sale of his own residence could be a prolonged affair. “In the fall, I’ll probably pack it in for the winter if it hasn’t sold,” he said. “And then I may turn it over to a friend who’s a real estate agent.” Or maybe not, once he runs the numbers. Saving the cost of an agent’s commission motivates him because he needs to maximize his retirement savings, he said. “That’s their concept, trying to save the commission,” said Palos Hills, Ill., agent Kathy Toscas, who said in her experience FSBOs lose money by spinning their wheels. Pitfalls of flying solo She recently has taken on listings of failed former FSBOs. She said where those homeowners tended to trip up — when they did attract potential buyers — was in the vetting process. “The average FSBO is attracting people who aren’t qualified buyers, or if they are qualified, they still have a property to sell — and today, if a buyer has to sell their own property to sell first, forget it,” Toscas said. “Or, they attract bargain hunters” who try to wheedle down the price too far. So, in addition to asking hard questions about the qualifications of potential buyers, she says would-be FSBOs have to work hard to put the word out on the street, creating fliers and working the phones — calling everybody they can think of to say, “My house is for sale — do you know anybody who might be interested?” “It’s hard work,” she says. “You have to promote the daylights out of it on a daily basis.” Other agents also say FSBOs have to be wary of running afoul of property disclosure and fair-housing laws and of contract wording. Firm data on for-sale-by-owner properties is by its very nature difficult to collect and subject to many qualifications. The National Association of Realtors and companies that assist for-sale-by-owner properties long have sparred over it. Crunching FSBO numbers NAR data show that FSBO sales vary widely by region, from 10 to 26 percent of all sales last year. Overall, they accounted for 13 percent of sales, up from 12 percent in 2007 and 2008, which he said were record lows. However, many such transactions are complicated to classify, as they aren’t technically on the open market because they were between friends or relatives, according to NAR spokesman Walter Molony. True open-market FSBOs accounted for 7 percent of transactions in 2008, which he characterized as a downtrend from 10 percent in 2004. Eric Mangan, a spokesman for ForSaleByOwner.com, which offers online marketing services and information for sellers, contends that FSBO properties sell more quickly than agent-assisted homes. He said NAR’s own research showed that in 2008, sellers in the open market sold their homes in a median six weeks vs. 10 weeks for agent-assisted sales. He also said FSBO properties sold for more money, proportionately, than agent listings. Citing the Realtors’ 2008 report, “Profile of Home Buyers and Sellers,” he said the median agent listing sold for 96 percent of its asking price vs. 97 percent for FSBOs in the open market. The NAR report, however, also said that agent-assisted sales netted a $204,900 median vs. $153,000 for all FSBOs. Mangan contends that FSBOs are plentiful today. “We rely on data from RealTrends (an industry research and information company) and we think 20 percent of the market today is FSBO listings,” he said. “But not all FSBOs are equal,” meaning that the aggressiveness of their marketing will make all the difference. Do-it-yourself marketing “Somebody just putting a for-sale sign in the yard or just a Craigslist ad — they probably won’t be successful,” he said. “Ninety percent of buyers use the Internet to search for a home, so online has to be the centerpiece of their marketing strategy, and it has to be everywhere — we tell people to advertise on Craigslist and we syndicate our listings to Yahoo, Google and CribFinder, the real estate application on Facebook. “Then they have to go word-of-mouth, telling everyone at the PTA meeting and their neighbors. They do have to have yard signs, and those yard signs have to have a flier box,” Mangan said. But, Mangan agrees, the current market is a challenge that may turn out to be a learning experience to any FSBO seller who had an easy time of it a few years ago. “This is one thing we’re telling sellers: The biggest thing in a slow market is to be patient,” he said. “That, and not to make it an emotional event — to treat it like a business transaction.” Ryan Pilkington said he took that to heart when he posted his Lincoln, Neb., home at ForSaleByOwner.com in mid-February, paying the online company what he estimates at $200 to $300 for the online ad and various services. “I didn’t really know a lot about selling for-sale-by-owner until we decided to do it,” he said. “I downloaded some of the information on the site, and there’s a tutorial on the site on how to sell your house.” At first, he said, there wasn’t much activity. Then he and his wife, Jennifer, dug in. HGTV, fliers and a price drop “I watched a lot of HGTV,” he said, laughing. He took their shows’ tips to heart, rearranging furniture and repainting the house’s front door for more appeal. He said they got a lot of phone inquiries and distributed “a ton” of fliers. Their open houses — in all, about a dozen, he estimates — got old, but the couple decided they were necessary. They got one offer that fell through because of financing issues. “I didn’t think to ask, ‘Are you preapproved?’ ” he said. “We were going off his word that he was good to go.” Undaunted, they kept going on their own; they dropped the asking price from $139,900 to $138,000. In mid-May they got a solid contract for $136,000 from someone who had found the home online. “Yeah, ideally, it would have been easier if we had had a real estate agent who could have done it for us,” he said. “But the whole process wasn’t bad, and eventually we got our objective. “I’d do it

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOUSING TRENDS SINCE 1950: THE DIFFERENCE WILL SHOCK YOU

Housing Trends Since 1950: The Difference Will Shock You For the last few years, home buyers have done battle with some challenging housing trends: fewer homes to choose from, rising prices, and increasing competition with buyers willing to go to great lengths to close the deal on the homes they want. That’s a huge change from the conditions buyers and owners faced just a few years ago. For several years beginning in 2007, home values dropped nationwide and millions of homeowners suddenly owed more on their homes than they could sell them for—if they could sell them at all. Over the last four years, home values and the market have slowly recovered. The latest reports from the National Association of Realtors (NAR) show that home prices now exceed levels set at the housing market’s previous peak in 2006. Are we looking at another housing bubble? There’s no way to know for sure until the bubble bursts. Either way, it’s worth understanding the decades-long house price trends that led up to the housing meltdown—and refresh our memories about the lessons we learned during those tough times. A Quick History of House Price Trends Let’s start by looking at the U.S. Census Bureau figures for housing prices over the decades. In 1950, the median home price was just $7,354. Wow! Fast-forward 50 years, and the median home price was $119,600. The median existing home price reported by the NAR has surpassed the record of $230,400 set in 2006 to $236,400 today. Adjusting those numbers for inflation gives us some perspective. The median price for a home in 1950 in inflation-adjusted dollars was $44,600, according to the Census Bureau. Compared to the current median price, that’s an increase of almost $192,000 in 67 years! One driver of home prices is size. In 1950, the average home size was less than 1,000 square feet with two bedrooms and one bath, according to the NAR. By the early 1970s, the average home had increased to 1,500 square feet. Today, the median new home size is nearly 2,500 square feet, with most homes featuring at least four bedrooms and three or more baths, the Census Bureau reports.And all this is in spite of the fact that family size decreased from 3.37 members in 1950 to 2.5 members in 2016. Easy Money! So how were we able to buy these bigger (and bigger) homes? For the most part, changes in the mortgage industry allowed home buyers to borrow more and spread their payments out over a longer period of time. In the 1930s, mortgages had variable interest rates, required high down payments, and only had five- to 10-year terms. The maximum amount a home buyer could borrow was 50% of a home’s value. A series of changes brought about by the Great Depression and World War II resulted in the long-term, fixed-rate mortgage we’re familiar with today. By the mid-1950s, the maximum mortgage term was 30 years and buyers could finance up to 95% of their home’s value. Over time, mortgage lending standards loosened even more. In the years leading up to the housing bubble in 2007, home buyers could borrow more than their home’s value with a low or no down payment. The adjustable-rate mortgage came back into popularity with buyers who didn’t qualify for fixed-rate loans. What Did We Learn from These Housing Trends? And this is where we learn our lesson: Just because you can do something doesn’t mean you should. Lenders and home builders are in the housing industry to make money. They changed their practices and products to give us what we said we wanted. We fell victim to our own stuffitis and bought homes that cost too much, and we borrowed too much money to do it. When you’re ready to buy a new home, remember that a bigger house doesn’t mean you’ll be happier. You’ll get the most satisfaction out of living within your means. Whether that means 1,000 square feet or 5,000, only you can decide. Keep your stuffitis in check, and you’ll make the right call. How to Buy on a Budget Shopping for a home with a budget in mind can be tricky. How do you know where to look or whether you’re getting the most value for your money? An experienced real estate agent is the key to finding the right home for your family. Work with an agent who is an expert in your market and knows where to find the best deals. And keep in mind that housing trends aren’t the only things that have changed since the 1950s. The whole home-buying process is more complicated, so you’ll benefit by working with a professional who knows the ropes and can help you keep costs down.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE POST INDUSTRIAL ERA IS OVER

The Post-Industrial Era Is Over ByLESTER C. THUROW The sun is about to set on the post-industrial era. No one should mourn its passing. In the post-industrial era, service jobs were supposed to replace the manufacturing jobs lost to foreign competition, much as manufacturing employment once replaced the farm jobs lost to higher agricultural productivity. To theorists of the 1950's, this meant a transition from an economy based on dirty heavy industry to one based on clean, well-lit offices. No more Pittsburghs. This scenario always had problems. While services have created most new jobs - 88 percent of all new jobs in the past 10 years - average service wages have been well below average manufacturing wages and productivity has suffered mightily. In the decade ahead, however, demand for services will slow down. Wages will rise and, as a result, productivity in the service sector will grow more rapidly while many fewer service jobs will be created. There are several reasons for this. Most of the growth in service employment (91 percent) in the past 10 years is traceable to three rapidly growing industries: health care (17 percent), retail trade (29 percent) and producers services (45 percent). If output in these industries were to grow more slowly or productivity were to start rising, the rapid expansion of the service sector would come to a halt. Both are about to happen. The demand for health care has risen because of the interactions between an aging population, the development of expensive new technologies to treat the ailments of old age and expanding health insurance coverage for the elderly. These factors will continue but the rising expenditure trends cannot. Moves are now under way to limit spending on health care. When these efforts are successful, and ultimately they must be successful, health care employment will stop rising. The rapid expansion of the retail sector is the product primarily of the explosive growth in the numbers of working women. The result is fewer meals eaten at home and the new convenience of shopping 24 hours a day, seven days a week. In both cases, there are natural limits to expansion that we are not far from reaching. The growth in financial services (a major component of producers services) is easily explained by the telecommunication-computer revolution and the abolition of Government capital controls. Together they produced a world capital market with a wide array of new financial instruments. But the expansion in financial services is essentially a one-shot adjustment to these changes. When that adjustment is completed, and most of it is now behind us, employment growth automatically will slow down. Lacking strong and e Lacking strong and effective unions, U.S. service workers have never been paid as well as their foreign counterparts. Private service workers in the U.S. earn only 67 percent as much as those in manufacturing. In Japan. they earn 93 percent as much and in West Germany 85 percent as much. Low service wages have had two effects. First, they have allowed an enormous expansion of jobs, as people did the work in the U.S. that was being done by machines abroad. Parking lot attendants are unknown in Sweden, where they have been replaced by plastic cards. With automatic ticket-selling machines, automatic ticket checking and unattended lift loadings, Swiss ski resorts use few workers. Unattended machines sell gasoline at night in Europe. Second, low service wages dragged down productivity growth rates, creating a productivity crisis that is still the focus of public policy debate. grown at the rate of West Germany's, the U.S. would have added only 3.5 million service jobs between 1972 and 1983, compared with the 14.2 million jobs that were actually created. The reason productivity growth lagged was that U.S. companies invested relatively little capital per worker compared with other advanced nations. In Japan or West Germany, for example, capital investment per worker in the service sector is much higher and growing twice as fast. If service wages were to rise, American companies would be forced to use those same higher productivity technologies. And service wages are about to rise. The reason? The U.S will one day have to balance its trade deficit. To achieve a trade balance, America must either export more manufactured goods or replace imports with domestically made alternatives. There is no other way. The green revolution has eliminated most American agricultural export markets and the amount of services that can be exported is limited; most services simply have to be produced where they are used. To produce the goods needed to balance the trade accounts, American manufacturers will need to hire 4 million to 5 million new workers. With the baby boom generation fully employed and the subsequent ''baby bust'' generation reaching working age, the labor pool will be shrinking. Thus, most of these workers will have to be attracted from the service sector. This will lead to a shortage of workers, rising service wages and, as a result, greater investment in labor-saving technologies. Productivity will rise sharply and many fewer people will be needed. The combination of slowing demand and accelerating productivity growth in services should spell the end of the post-industrial era. What is replacing it is old-fashioned manufacturing with a modern, robotics face. The only question is whether the manufacturing will be done by American companies or

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW THE INTERNET CHANGED REAL ESTATE

How the Internet Changed Real Estate For many years, real estate agents were the single most important gatekeepers of information regarding local real estate. If you wanted to know which homes were available, which prices were fair and comparable, and when all the local open houses were raging, you had to either take a walk or drive around town, check your local classifieds, or check with your local realtor. Fast forward to 2015: now, all the information about your potential dream home is at your fingertips, complete with a virtual tour, homeowner history, and Google Earth images of the local neighborhood! Research done by the National Association of Realtors shows that 90% of consumers now start their real estate journey on the Internet. Technology has completely changed the way we buy, sell, and tour homes for sale. Here’s a quick highlight reel of the events that changed real estate for good. Timeline: 1980s: Automated Listings For the first time, classifieds weren’t the preferred method of choice for listing and searching for real estate. Instead, realtors could go on their computers to search through various databases information regarding local listings. 1994: Public Real Estate Listings The internet soon changed everything...listings weren’t only able to be easily accessed by realtors, but by the public! Property listings begin to become publicly available on the internet. The realtor was no longer the sole holder of listing information. Third-party sites began to pop up everywhere, creating a real estate information free-for-all. 1995:Realtor.com The real estate industry banded together to beat third party sites to the punch...Realtor.com became the largest, most preferred site to find listings, tax information, etc. 2010-Present: The Mobile Era Not only did the Internet revolutionize the way we view and search for real estate...now we can do it on our mobile devices. In the last 6 years, real estate apps have begun to come on the scene as the preferred, easiest way to find potential homes. Real Estate Sites Over the years, a flood of real estate websites have competed for the top spot...but there can only be a few true winners. According to eBizMBA’s recently released list of the top 15 most popular real estate websites (which take into account global and US internet traffic reports), these sites have anywhere from 1.7 Million (HotPads.com) to 36 Million (Zillow.com) unique monthly visitors! Here are the top ten sites: 1.Zillow 2.Trulia 3.Yahoo! Homes 4.Realtor 5.RedFin 6.Homes 7.Apartment Guide 8.Curbed 9.ReMax 10.HotPads Social Media A discussion of technology, the internet, and real estate would not be close to complete without mentioning the impact of social media. Besides websites specifically devoted to real estate, seemingly unrelated sites like Facebook, Youtube, and Twitter have come on the scene as major contributors to today’s ever-evolving real estate market! According to the National Association of Realtors, some 91% of REALTORS® use social media to some extent. The social media revolution has made marketing and advertising easier and more personal...many users trust companies their friends have used or “liked” on Facebook. If you can collect a large fan base on Twitter, you’ll be able to communicate listings to a large audience in a very short amount of time...with just a few clicks! Youtube is commonly used to host virtual video tours; LinkedIn allows REALTOR®s to connect with other professionals and possible clients; and Pinterest can help you expose someone the right buyer to their new dream home! Obviously, while nothing beats an actual walk-through of a home, buyers are now able to better preview and discover potential homes through social media. Mobile Devices: In the early 2000s, it didn’t seem like accessing information could be any easier or faster. However, enter the widespread use of mobile devices (especially smartphones and tablets) in the later part of the decade, and suddenly information wasn’t just easily accessible...it became easily accessible anywhere and everywhere. In a survey of home buyers by the California Association of Realtors, 85% of buyers used a mobile device to help the buying process. But mobile apps aren’t only for buyers and sellers looking for information on a home! Agents have found several apps to be incredibly helpful while navigating the selling/buying process. Forbes recently put out a list of the top 10 most helpful apps for agents and brokers, including Zillow, Google Maps, Mortgage Calculator, Sitegeist, PDF Escape, and more. These sites can help make the administrative and/or negotiating process easier and more effective. With the extreme increase in available information on the web, you might think that the role of the real estate agent has been downgraded in recent years. However, just the opposite has occurred. Because buyers and sellers these days are now being flooded with an overwhelming amount of information, REALTOR®s have become more essential than ever to navigating the process. You will find a professional vastly helpful in processing, organizing, and prioritizing the various areas of interest. The main change has simply come in the role real estate agents play in the process. Instead of being mainly researchers and bearers of unavailable information, your REALTOR® is able to focus on what he or she does best: facilitating the real estate transaction. Instead of sifting through piles and piles of listings, he or she can help you filter all the pre-existing research through a lens of local expertise and professional knowledge of the industry. It doesn’t hurt that your San Antonio Keller Williams REALTOR has access to real estate information at least two days before you do...this is vital when buying or selling in a competitive market! Conclusion As you can see, the Internet has changed the way real estate is bought, sold, advertised, and more. While all this information can seem overwhelming, there are plenty of tools, professionals, and sites out there to help make the real estate market a user-friendly place. And, though it’s easy to get lost in all the websites, apps, and information, remember that at the end of the day, the buyer and seller are still interacting with a real, physical home! Though the way the real estate market operates is constantly changing, the ultimate goal is still the same: helping people find the right

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW TO FILE A MECHANICS LIEN IN KANSAS

Make Sure Your Kansas Mechanics Lien Has the Required Information It is crucial to make sure your Kansas mechanics lien contains all of the information specifically required by Kansas’ lien laws. Mechanics liens are creatures of statute, and as such, require strict compliance with the statutory requirements. The failure to provide certain specific information on the lien claim isn’t just a simple oversight – it can invalidate the entire lien. Clearly, then, great care should be taken to make sure the proper information is obtained and included on the lien document. Kansas mechanics liens are required to be a verified statement containing the following information: 1) The name of the owner; 2) The name and address sufficient for service of process of the claimant; 3) A description of the real property to be charged with the lien; 4) A reasonably itemized statement and the amount of the claim, (Note, however, if the amount of the claim is evidenced by a written instrument, or promissory note, a copy of the written document may be attached to the claim instead of the itemized statement; and 5) A signature verifying the lien by affidavit. Download Project Information Sheet Template SPECIAL NOTE REGARDING TIMING OF KANSAS MECHANICS LIENS Kansas generally requires that mechanics lien be filed within 4 months of the date of last furnishing labor or materials (for a direct contractor) and within 3 months of last furnishing labor or materials (for everybody else). However, for non-residential projects, this deadline may be extended to 5 months (for all parties), if the claimant files a notice of extension within their original lien deadline, and sends the notice by certified and regular mail to the general contractor or construction manager and by regular mail to the property owner. How To File a Kansas Mechanics Lien Now it’s time to get your Kansas mechanics lien filed with the clerk of the district court of the county in which property is located. Prepare lien form, taking care to include the necessary information as set forth above, and sign the document with the verification statement. While the lien needs to be verified – not necessarily notarized – it makes for a smoother recording process if the document is notarized. Send the original notarized copy to the office of the clerk of the district court of the county in which property is located. – The lien may be delivered to the proper county recorder via mail or FedEx, or personally “walked in” to be recorded (either by you or a courier). – Make sure to include the proper recording fees with the lien. Lien are often rejected for improper fees (and this can be true even if you provide too much money). Any delay caused by needing to resubmit the lien for recording takes time – and since liens are time sensitive documents, it can possibly result in a missed deadline. Recording fees vary from county to county and can be determined by calling the county clerk of court, checking on the clerk’s website, or asking in person if you physically bring the lien for filing. The fees are often set at one amount for the first page with an additional, smaller, amount for each additional page. – Note that your lien document must also comply with any specific margin requirements that particular county may have, as well as potentially requiring a county-specific cover page – these can also be determined by calling the clerk’s office. Note that if you mailed your lien to the county for recording, or sent it via a courier, along with the proper fees for recording with the document, you will must include a self-addressed stamped envelope with return instructions to receive a copy of the recorded lien for your records. Serve a copy of the mechanics lien – see more below. How To Serve a Kansas Mechanics Lien The process to obtain a valid Kansas mechanics lien is not completed by filing the document with the clerk of court – a copy of the lien must be served on the interested parties. The requirements for how a Kansas mechanics lien must be served are complex, and vary by claimant role. An original contractor must serve a copy of the lien on the property owner by both certified and regular mail. Note – Parties that did not contract directly with the property owner have different service requirements. Parties other than direct contractors, must deliver the lien to the property owner and any party obligated to pay the lien by one of the following methods: (1) served personally in the manner provided by K.S.A. 60-304, and amendments thereto, for the service of summons within the state, or by K.S.A. 60-308, and amendments thereto, for service outside of the state; (2) mailed by restricted mail; or (3) posted in a conspicuous place on the premises, if the address of any one owner or such party is unknown and cannot be ascertained with reasonable diligence. The easiest way to accomplish the required service, then, is to send a copy of the lien to the all parties “up-the-chain” via restricted mail. Congratulations! Once the lien document has been filed and served – your Kansas mechanics lien is ready to get you paid what you’ve earned. While this is a powerful tool to get you paid, this may not be the end of the road – it is still possible for the lien to be challenged, or even determined invalid. Or, the fact the lien was filed may not be enough to prompt payment by itself, and you may be forced to enforce your lien claim through a foreclosure action. Remember that just because a lien is recorded doesn’t necessarily make it valid, and likewise, just because a property owner (or their attorney) may make a claim that it is improper and needs to be removed doesn’t make it invalid. Finally, a Kansas mechanics lien stays effective for 1 year from the date the lien was

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TOP TIPS FOR FILING A MECHANICS LIEN IN MISSOURI

Drafting a mechanic’s lien and “notice of intent” (§429.100) involves crucial steps that can be harmful to your case if overlooked. Whether you forgot to verify the “just and true account” (§429.080) of the amount due, or are unsure of the proper county for filing your lien, you can avoid these service errors by taking the time to learn the following steps involved in filing and drafting a mechanic’s lien in Missouri. Most importantly, the lien must be filed within six months from the last date of delivery of material or performing labor. Merely performing warranty work or punchlist work may not be sufficient to qualify as the “last date of work.” Therefore, be wary of calculating the last date of work from a date after the contracted work was substantially complete. If you are not under direct contract with the project owner, then you must serve a notice of intent to file a lien on the owner of the project at least ten days prior to filing the lien. You cannot determine the owner or property description effectively without a title report. Therefore, you need to obtain a title report well in advance of the six-month deadline so that you can properly prepare the notice. My suggestion is to order an Ownership and Encumbrances report. These generally cost around $200.00 and can be obtained in less than a week from a good title company. The notice of intent must contain four things: amount owed, from whom the amount is due, a property description, and the name of the claimant (RSMo. 429.100). The notice must be served on the owner of the property. The service on the owner is a critical element of the mechanic’s lien case. Service should be accomplished by personal service and the completed affidavit of service should be included in the legal file for the case. When drafting the mechanic’s lien and notice of intent, be sure to get the name of the owner of the property correct. If your client had a direct contract with the owner, then check the name of the owner on the contract itself. If the name on the title report is different from the name on the prime contract, assess the impact of this issue on your lien filing and consider naming the property owner with a “doing business as” designation as to the name on the prime contract. Finally, review the Missouri Secretary of State website (or other state’s websites) to verify that the entities in the title report and the prime contract actually exist and are known by the names in those documents. One of the most litigated issues with Missouri mechanic’s liens is the failure to include a “just and true account” of the amount due. In the case of a subcontractor, this means including information with sufficient detail to show itemized labor costs (hours of labor performed each day and rate) plus a complete description of materials, including quantity and cost (i.e. 16 qty. ¾” x 4’ x 8’ OSB Square Edge @ 10.00 each = $160.00). Many contractors will balk at providing this information as there is a concern that competitors will use this information to compete against them in the market place. My advice is to be very conservative in drafting a lien and supply detailed labor and material pricing information. What you do not want is to spend a lot in litigating a mechanic’s lien only to find out it was defective with the filing of the lien

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CHARACTERISTICS OF BUYERS AND SELLERS OF REAL ESTATE IN 2017

Buying a primary residence for home buyers is a financial decision but also an emotional decision that involves many lifestyle factors. For most home buyers, the purchase of am primary residence is one of the largest financial transactions they will make. Buyers purchase a home not only for the desire to own a home of their own, but also because of changes in jobs, family situations, and the need for a smaller or larger living area. In 2017, the share of first-time home buyers was 34 percent, a decrease from 35 percent last year. This figure gravitates away from the historical norm at 40 percent of the market. The median household income increased again this year, likely due to a nationwide increase in home prices caused by a lack of housing inventory pushing out lower income buyers. Married and unmarried couples have double the buying power of single home buyers in the market and may be better able to meet the price increases of this housing market. Repeat buyers are also returning to the market. Tightened inventory is affecting the home search process of buyers. Due to suppressed inventory levels in many areas of the country, buyers are typically purchasing more expensive homes as prices increase. The number of weeks a buyer is searching for a home remained at 10 weeks. Buyers continue to report the most difficult task for them in the home buying process is just finding the right home to purchase. Increased prices are also impacting sellers. Tenure in the home has maintained a peak of 10 years again this year. Historically, tenure in the home has been six to seven years. Sellers may now have the equity and buyer demand to sell their home after stalling or delaying their home sale. Buyers need the help of a real estate professional to help them find the right home for them, negotiate terms of sale, and help with price negotiations. Sellers, as well, turn to professionals to help market their home to potential buyers, sell within a specific timeframe, and price their home competitively. For-sale-by-owner sales have dropped to the lowest level recorded in this data set at eight percent of sales again this year, while the use of the agent to sell the home stays at historic highs. Likewise, the buyer use of the agent is at historic highs as the number of buyers purchasing directly from a previous owner or through a builder falls. Characteristics of Home Buyers First-time buyers made up 34 percent of all home buyers, a decrease from last year’s 35 percent. The typical buyer was 45 years old this year, and the median household income for 2016 rose again this year to $88,800. Sixty-five percent of recent buyers were married couples, 18 percent were single females, seven percent were single males, and eight percent were unmarried couples. Thirteen percent of home buyers purchased a multigenerational home, to take care of aging parents, for cost savings, and because of children over the age of 18 moving back home. Eighty-nine percent of recent home buyers identified as heterosexual, three percent as gay or lesbian, one percent as bisexual, and seven percent preferred not to answer. Eighteen percent of recent home buyers are veterans and three percent are active-duty service members. At 30 percent, the primary reason for purchasing a home was the desire to own a home of their own. Characteristics of Homes Purchased Buyers of new homes made up 15 percent and buyers of previously owned homes made up 85 percent. Most recent buyers who purchased new homes were looking to avoid renovations and problems with plumbing or electricity at 36 percent. Buyers who purchased previously-owned homes were most often considering a better price at 32 percent. Detached single-family homes continue to be the most common home type for recent buyers at 83 percent, followed by seven percent of buyers choosing townhomes or row houses. Senior-related housing stayed the same this year at 13 percent, with 16 percent of buyers typically purchasing condos and six percent purchasing a townhouse or row house. There was a median of only 15 miles between the homes that recent buyers purchased and the homes that they moved from. Home prices increased slightly this year to a median of $235,000 among all buyers. Buyers typically purchased their homes for 98 percent of the asking price. The typical home that was recently purchased was 1,870 square feet, had three bedrooms and two bathrooms, and was built in 1991. Heating and cooling costs were the most importantenvironmental features for recent home buyers, with 85 percent finding these features at least somewhat important. Overall, buyers expect to live in their homes for a median of 15 years, while 18 percent say that they are never moving. The Home Search Process For 42 percent of recent buyers, the first step that they took in the home buying process was to look online at properties for sale, while 17 percent of buyers first contacted a real estate agent. Seventy-nine percent of recent buyers found their real estate agent to be a very useful information source. Online websites were seen as the most useful information source at 88 percent. Buyers typically searched for 10 weeks and looked at a median of 10 homes. The typical buyer who did not use the internet during their home search spent only four weeks searching and visited four homes, compared to those who did use the internet and searched for 10 weeks and visited 10 homes. Among buyers who used the internet during their home search, 89 percent of buyers found photos and 84 percent found detailed information about properties for sale very useful. Sixty-one percent of recent buyers were very satisfied with their recent home buying process. Home Buying and Real Estate Professionals Eighty-seven percent of buyers recently purchased their home through a real estate agent or broker, and seven percent purchased directly from a builder or builder’s agent. Having an agent to help them find the right home was what buyers wanted most when choosing an agent at 52 percent. Forty-two percent of buyers used an agent that was referred to them by a friend, neighbor, or relative and 12 percent used an agent that they had worked with in the past to buy or sell a home. Seven in 10 buyers interviewed only one real estate agent during their home search. Eighty-nine percent of buyers would use their agent again or recommend their agent to others. Financing the Home Purchase Eighty-eight percent of recent buyers financed their home purchase. Those who financed their home purchase typically financed 90 percent. First-time buyers who financed their home typically financed 95 percent of their home compared to repeat buyers at 86 percent. For 59 percent of buyers, the source of the down payment came from their savings. Thirty-eight percent of buyers cited using the proceeds from the sale of a primary residence, which was the next most commonly reported way of securing a downpayment. Forty-three percent of buyers saved for their down payment for six months or less. For 13 percent of buyers, the most difficult step in the home buying process was saving for a downpayment. Of buyers who said saving for a downpayment was difficult, 49 percent of buyers reported that student loans made saving for a downpayment difficult. Forty-two percent cited credit card debt, and 37 percent cited car loans as also making saving for a downpayment hard. Buyers continue to see purchasing a home as a good financial investment. Eighty-three percent reported they view a home purchase as a good investment. Home Sellers and Their Selling Experience The typical home seller was 55 years old, with a median household income of $103,300. For all sellers, the most commonly cited reason for selling their home was that it was too small (16 percent), followedby the desire to move closer to friends and family (14 percent), and a job relocation (11 percent). Sellers typically lived in their home for 10 years before selling, the same as last year. n Eighty-nine percent of home sellers worked with a real estate agent to sell their home. For recently sold homes, the final sales price was a median of 99 percent of the final listing price. Recently sold homes were on the market for a median of three weeks, down from four weeks last year. Thirty-seven percent of all sellers offered incentives to attract buyers. This year, home sellers cited that they sold their homes for a median of $47,500 more than they purchased it. Sixty-two percent of sellers were very satisfied with the selling process. Home Selling and Real Estate Professionals Sixty-four percent of sellers found their agent through a referral from a friend, neighbor, or relative or used an agent they had worked with before to buy or sell a home. Seventy-four percent of recent sellers contacted only one agent before finding the right agent they worked with to sell their home. Ninety percent of sellers listed their homes on the Multiple Listing Service (MLS), which is the number one source for sellers to list their home. Seventy-six percent of sellers reported that they provided the agent’s compensation. The typical seller has recommended their agent twice since selling their home. Thirty-three percent of sellers recommended their agent three or more times since selling their home. Eighty-five percent said that they would definitely (67 percent) or probably (18 percent) recommend their agent for future services. For-Sale-by-Owner (FSBO) Sellers Only eight percent of recent home sales were FSBO sales again this year. For the third year, this is the lowest share recorded since this report started in 1981. The median age for FSBO sellers is 55 years. Seventy-four percent of FSBO sales were by married couples that have a median household income of $103,100. FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $190,000 last year (up from $185,000 the year prior), and significantly lower than the median of agent-assisted homes at $250,000. FSBO homes sold more quickly on the market than agent assisted homes. Fifty-eight percent of FSBO homes sold in less than two weeks—often because homes are sold to someone the seller knows. Sixty-eight percent of successful FSBO sellers who knew the buyer were very satisfied with the process of selling their home.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE ASSIGNMENT CONTRACTS

Visualize a real estate purchase contract with just a few extra words added to your name as the buyer. This would look something like this: "Buyer: John J. Doe, and/or assigns." That's it. Seems simple, and it is. But, it opens up many opportunities for profits in real estate investing. The "assigns" would be anyone that you want to pass your purchase rights along to. You have effectively locked up a property with a purchase contract. You can now go ahead and buy it, flip it, rehab and rent it, or any other strategy that's legal. But, you can also pass it along to someone else for profit, never buying it yourself. You're not just passing your purchase rights along. You're also passing along your obligations in the contract. This means that you are no longer involved in the transaction at all. You do not have to perform and buy the property, nor do you have any rights to make claims against the seller if there are problems with the deal moving forward. The person or company to whom you've assigned the deal is now responsible for taking the deal through to closing. As you probably won't be getting paid your fee or profit until closing, it can make you nervous waiting for the deal to close. Profiting by Simply Referring It Along The simplest way to profit in this situation is to simply locate one or more buyers in your buyer database, show them the value in the deal, and take a referral or "bird-dog" fee for bringing the deal to them. You assign your rights to the deal, and they go forward to closing, paying you your fee after or at closing. You profit handsomely, though you only had whatever earnest money deposit to lock up the contract at risk. By knowing who your buyers are likely to be before you contract the property, that risk is very low if the value is there. You build and maintain an active investor buyer list for your customer pool. This is crucial, as you really want to be pretty sure you have a ready buyer or two for a home before you commit earnest money. Doing a good job of building your list, you should be covered pretty well. This list will include both fix & flip and rental property investors with interests in buying depending on the condition of the property. Rental investors normally want a house ready for occupancy, or at least with only cosmetic or minor repairs necessary. Back-To-Back Closings for a Flip Sale You can also take on the purchase, immediately selling the property to another investor or a retail buyer. You would probably take this approach because your profits would be higher. After the mortgage crisis in 2007 and after, you can no longer use the funds of one deal to close on another in simultaneous closings. The lenders just won't allow it. However, you can explore resources for short-term funding, maybe a relative, your own cash, or a hard money lender. You only need the money long enough to close the purchase and then the sale. This can be hours, but never more than a day or two. Assignment Deals Are a Great Real Estate Investment Strategy What is your role here, and how are you adding value? Simply, you have perfected your techniques and can locate really great deep discount real estate deals with others, your buyers, ever know about them. There are many ways to get to a good deal early, and your value to your buyer customer is that you've got the property in your control, so they'll only get it if you pass it along. You have two tasks to hone to make this work well for you. First, have a really good buyer database, with information about what each is looking for. Second, you learn and put into play strategies to locate great property deals before their general knowledge. If you get these two things in line and operating for you, using real estate assignment contracts can be your ticket to real estate investing profits with little of your own money at

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE BASICS OF WHOLESALING REAL ESTATE

I'm not here to puff up real estate investing, nor to convince people that they can get rich quick in the business. However, there are people getting pretty nicely compensated in real estate investment, as there are many ways to approach the business. One way to enter and even succeed long term is to become a real estate wholesaler. There are some really major advantages in wholesaling real estate over wholesaling to retailers. You don't need to buy inventory in huge quantities from manufacturers. You don't need to buy or rent warehouse space to store all of that inventory until you parcel it out to retailers. You don't need trucks to cart your inventory around. You don't need employees to count, secure and transport your inventory. You don't need insurance and employer taxes to cover all of this major investment. Your inventory is permanent in location, doesn't need to be transported anywhere, and you don't need employees or even insurance to secure your investment. Real estate wholesaling mostly requires a thorough education in property valuation, as well as marketing and negotiation skills. All of these are things you can learn. So, just what is real estate wholesaling? You become the middle person who matches up a distressed or undervalued property with a happy buyer. Who is the buyer? In the vast majority of cases, it will either be a fix & flip investor or a long term rental investor. What value do you deliver, as that's required if you're going to profit in this business? You bring your time and skills in locating undervalued properties, controlling or buying them, and selling them to your buyers who wouldn't have known about them otherwise. Since you're selling to investors, the first critical factor in a successful real estate wholesaling business is that you understand that they want to buy properties below their current market value. The savvy investor understands that a successful real estate investment begins with a purchase below real current value. In other words, some profit exists the moment you leave the closing table. With that in mind, your job is to find and control/purchase properties that are far enough below current market value that you can meet your buyers' needs and still have room for profit in the middle. If you're selling to a fix & flip investor, you'll need to know enough about the costs of renovation and repair to be able to know that it can be rehabilitated and that the ARV, After Repair Value, will still be high enough for you and your buyer to make money. If you're selling to a long term rental investor, you'll have to understand your local real estate market, population demographics, and rental prospects and rents. You'll need to be able to calculate what your buyer can get for rent, their costs for the property, if they're buying cash or using a mortgage, and what they would consider adequate cash flow. I'll go into detail in other articles, but the thing that makes real estate wholesaling so enticing is that you can do all of this with very little or no money out of pocket. Using assignment contracts, you can control a property through closing with your buyer with only a small earnest money deposit. Profit can be increased if you actually contract to buy the property and do a "double-close." This requires using transactional funding. These transactional lenders provide the funds to close the purchase with you as buyer, and they get paid back hours or a day or so later when you sell to your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CONTINGENCY CLAUSES IN HOME PURCHASE CONTRACTS

A contingency clause defines a condition or action that must be met for a real estate contract to become binding. A contingency becomes part of a binding sales contract when both parties (i.e., the seller and the buyer) agree to the terms and sign the contract. Accordingly, it is important to understand what you’re getting into if a contingency clause is included in your real estate contract. Here, we introduce widely used contingency clauses in home purchase contracts and how they can benefit both buyers and sellers. Real Estate Contracts A real estate transaction typically begins with an offer: a buyer presents an offer to purchase to a seller who can either accept or reject the proposal. Frequently, the seller counters the offer and negotiations go back and forth until both parties reach an agreement. If either party does not agree to the terms, the offer becomes void, and the buyer and seller go their separate ways with no further obligation. If both parties agree to the terms of the offer, however, the buyer makes an earnest money deposit – a sum paid as evidence of good faith, typically amounting to 1% of the sale price. The funds are held by an escrow company while the closing process begins. Sometimes a contingency clause is attached to an offer to purchase real estate and included in the real estate contract. Essentially, a contingency clause gives parties the right to back out of the contract under certain circumstances that must be negotiated between the buyer and seller. Contingencies can include details such as the timeframe (e.g. “The buyer has 14 days to inspect the property") and specific terms (e.g. “The buyer has 21 days to secure a 30-year conventional loan for 80% of the purchase price at an interest rate no higher than 4.5%"). Any contingency clause should be clearly stated so that all parties understand the terms. If the conditions of the contingency clause are not met, the contract becomes null and void, and one party (most often the buyer) can back out without legal consequences. Conversely, if the conditions are met, the contract is legally enforceable, and a party would be in breach of contract if he or she decided to back out. Consequences vary, from forfeiture of earnest money to lawsuits. For example, if a buyer backs out and the seller is unable to find another buyer, the seller can sue for specific performance, forcing the buyer to purchase the home. Types of Contingency Clauses Contingency clauses can be written for nearly any need or concern. Here are the most common contingencies included in today’s home purchase contracts: Appraised Contingency An appraisal contingency protects the buyer, used to ensure a property is valued at a minimum, specified amount. If the property does not appraise for at least the specified amount, the contract can be terminated and the earnest money, in many cases, is refunded to the buyer. An appraisal contingency may include terms that permit the buyer to proceed with the purchase even if the appraisal is below the specified amount, typically within a specified number of days after the buyer receives the notice of appraisal value. The seller might have the opportunity to lower the price to the appraisal amount. The contingency specifies a release date, on or before which the buyer must notify the seller of any issues with the appraisal; otherwise, the contingency will be deemed satisfied, and the buyer will not be able to back out of the transaction. Financing Contingency A financing contingency (also called a “mortgage contingency”) gives the buyer time to apply for and obtain financing for the purchase of the property. This provides important protection for the buyer, who can back out of the contract and reclaim his or her earnest money in the event he or she is unable to secure financing from a bank, mortgage broker or another type of private lending. A financial contingency will state a specified number of days that the buyer has to obtain financing. The buyer has until this date to terminate the contract (or request an extension that must be agreed to in writing by the seller); otherwise, the buyer automatically waives the contingency and becomes obligated to purchase the property – even if a loan is not secured. House Sale Contingency Although in most cases it is easier to sell before buying another property, the timing and financing don’t always work out that way. A house sale contingency gives buyers a specified amount of time to sell and settle their existing homes in order to finance the new one. This type of contingency protects buyers because, if an existing home doesn’t sell for at least the asking price, the buyer can back out of the contract without legal consequences. House sale contingencies can be difficult on the seller, who may be forced to pass up another offer while waiting for the outcome of the contingency. The seller retains the right to cancel the contract if the buyer’s home is not sold within the specified number of days. Inspection Contingency An inspection contingency (also called a “due diligence contingency”) gives the buyer the right to have the home inspected within a specified time period, such as 5-7 days. It protects the buyer, who can cancel the contract or negotiate repairs based on the findings of a professional home inspector. An inspector examines the property’s interior and exterior, including the condition of electrical, finish, plumbing, structural and ventilation elements. The inspector furnishes a report to the buyer detailing any issues discovered during the inspection. Depending on the exact terms of the inspection contingency, the buyer can: Approve the report, and the deal moves forward Disapprove the report and back out of the deal (and have earnest money returned) Request time for further inspections if something needs a second look Request repairs or concession (if the seller agrees, the deal moves forward; if the seller refuses, the buyer can back out of the deal and have his or her earnest money returned) A cost of repair contingency is sometimes included in addition to the inspection contingency. This specifies a maximum dollar amount for necessary repairs. If the inspection indicates that repairs will cost more than this dollar amount, the buyer can elect to terminate the contract. In many cases, the cost of repair contingency is based on a certain percentage of the sales price, such as 1-2%. Kick-Out Clause The kick-out clause is a contingency added by sellers to provide a measure of protection against a house sale contingency. While the seller agrees to a house sale contingency, he or she can add a kick-out clause stating that the seller can continue to market the property. If another qualified buyer steps up, the seller gives the current buyer a specified amount of time (such as 72 hours) to remove the house sale contingency and keep the contract alive; otherwise, the seller can back out of the contract and sell to the new buyer. The Bottom Line A real estate contract is a legally enforceable agreement that defines the roles and obligations of each party in a real estate transaction, and contingencies are attached to and made part of contracts. It is important to read and understand your contract, paying attention to all specified dates and deadlines. Because time is of the essence, one day (and one missed deadline) can have a negative —and costly effect on your real estate transaction. In certain states, real estate professionals are allowed to prepare contracts and any modifications, including contingency clauses. In other states, however, these documents must be drawn up by licensed attorneys. It is important to follow the laws and regulations of your state. In general, if you are working with a qualified real estate professional, he or she will be able to guide you through the process and make sure that documents are correctly prepared (by an attorney if necessary). If you are not working with an agent or broker, check with an attorney if you have any questions about real estate contracts and contingency clauses.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

LONG TERM REAL ESTATE APPRECIATION RATE IN THE U.S.

Long-term real estate appreciation rate in the U.S. Before we talk actual real estate appreciation rates, let's talk about why you'd want to know what they are in the first place. by Michael Bluejay Last update: August 2009 Appreciation matters because it can make the difference between whether it's better to buy a home or continue renting. And even small changes in the appreciation rate can change the long-term value of buying considerably. A $235k home becomes worth $485k at 3% appreciation after 30 years, but it becomes worth a whopping $649k at 4% appreciation. One percentage point makes quite a difference! Another reason to know the rate is that you might not want to be tied to your home for 30 years. You might want the option to move after a few years. If the appreciation rate is high enough, the extra value of the house in a few years will offset the upfront costs of buying. If the appreciation rate is too low then it won't. Finally, if the appreciation rate is high enough, you actually live for free! The increase in value of your home can be greater than what you pay out in taxes, insurance, maintenance and interest. You can cash in that value when you sell, or when you're old enough to qualify for a reverse mortgage. And is there anything sweeter than living for free? But you live for free only if the appreciation rate is high enough, usually about 1.75 percentage points higher than the general rate of inflation. Your home is an investment! Some bloggers are trying to use my article to claim that buying a house isn't an investment. That is absolutely not a valid conclusion. Saying that a home isn't an investment just because it doesn't appreciate faster than inflation, is like saying a bicycle isn't transportation just because it doesn't fly. A bicycle doesn't have to fly to be transportation, and a house doesn't have to appreciate faster than inflation to be an investment. I have a separate article explaining why buying a home is indeed an investment. For these reasons, it behooves us to get the appreciation rate right. Unfortunately, that's easier said than done. Here's why. Trying to predict future appreciation rates is like trying to predict anything. Nobody can see the future. The best we can do is to see what happened in the past, but that's no guarantee that we'll see those kinds of returns in the future. Homes are getting bigger. So when we see the median price of homes go up each year, what's hidden in those numbers is that part of the increase is because the homes being sold themselves are getting larger. Not all of the increase is due to appreciation. Some figures show average prices, not median prices. The median price is the middle price, and it's generally more meaningful when doing this kind of analysis. For example, let's say we have five workers, who make $15k, $20k, $30k, $40k, and $600k respectively. The average income is $141k, but that's not really very representative of how much people actually make, is it? The first four people don't make anywhere close to that, and the last person makes considerably more. But the median income is $30k, which is much more meaningful. Average home prices are higher than median home prices because the mansions of the ultra-rich pull the average figure higher. So we use the median figure, which is more helpful. Here's a chart showing how the average price is higher than the median price. So we need to make sure we're looking at median prices, not average prices. Local rates are different from national rates. In this article I look at national averages, because I can't easily cover each of hundreds of different areas throughout the U.S. But in reality, local rates can differ greatly from the national average. (For example, in 2010 Austin Texas had an average yearly appreciation rate of 8.92% over 20 years (5.1% annualized). Local and national rates can even move in opposite directions, with a local rate going up while the national rate goes down, or vice-versa. Once we figure an average historical appreciation rate, even ignoring the flaws that went into finding it, it can bear little resemblance to the next few years. That's because short-term real estate rates fluctuate wildly. We might come up with a long-term appreciation rate of 4.3%, but next year prices could go up by 14% (like in 1979) or down by 15% (like in 2009). With all those caveats, you might be tempted to give up! But I think it's better to have some idea of what's happened in the past, even if we know it might not be accurate for our area in the near future. So with that in mind, let's get to work. Theory When you think about it, it seems that long-term appreciation rates would have to be pretty close to the general rate of inflation. Because if appreciation were much higher than inflation, then it wouldn't be too long before no one could afford to buy a house! If workers make 3% more per year on average, but the price of homes goes up by 6% per year, then pretty soon homes become widely unaffordable. I'll be keeping this in mind as we go through the appreciation data below. U.S. Census data The price of new homes increased by 5.4% annually from 1963 to 2008, on average. (U.S. Census, PDF) New homes aren't the best yardstick -- we'd really prefer to see sales of existing homes. But if new homes are all the U.S. Census gives us, then that's all we have to go on. First, let's account for the fact that the average new home size exploded from 983 s.f. to 2349 s.f. from 1950-2004, or about 1.6% per year on average. (NPR) So a big chunk of the increase isn't inflation, it's that bigger homes cost more money. Once we factor that in, the price of new homes per square foot went up by only 4.2% annually from 1963 to 2008. And now let's compare that rate to the general rate of inflation, which was 4.4% for the same period. (CPI, BLS) As predicted earlier, the rate of real estate inflation and the general rate of inflation are almost identical. National Association of Realtors The price of existing homes increased by 5.4% annually from 1968 to 2009, on average. (Natl. Assoc. of Realtors, p.1, p.2) Notice that this is the same figure as new homes by the Census Bureau for a similar period. Once we adjust for the fact that homes get bigger over time, the annual rate is 3.7%. The general rate of inflation during this time was 4.5%. So here again, homes didn't appreciate faster than inflation. Case-Schiller Index The price of existing homes increased by 3.4% annually from 1987 to 2009, on average. (Wikipedia) We don't adjust for houses getting bigger, because the Case-Schiller Index tracks repeat sales of the same homes. (They might get a little bigger from remodeling, but so few of them will get bigger, and by such a small amount, that we can safely ignore that.) The general rate of inflation during this time was 2.9%. So again, the appreciation rate for homes was very similar to the general inflation rate. Conclusion I find the often-quoted idea that homes generally appreciate faster than inflation to be a load of B.S. Sure, local appreciation can be higher, especially in the short-term, but the average appreciation for the whole country over the long-term is very much tied to the general rate of inflation, as the figures from three different sources above readily show. This would have to be the case, because if homes got more expensive faster than earnings went up, pretty soon nobody would be able to afford to buy a home. Of course, you could get lucky. I once enjoyed an average 16% appreciation rate each year for five years in Austin, Texas, and as of 2010 Austin actually averaged 8.9% yearly appreciation over 20 years (5.1% annualized). But by the same token, homes can actually depreciate while general inflation is going up, as happened all over the U.S. in the late 2000's. So when you're using a rent-vs.-buy calculator, I strongly suggest you set the rate of appreciation to be the same as the inflation

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – INSPECTIONS

Real estate inspection. The three little words can cause palpitations in even the sturdiest souls. For potential homebuyers, a real estate inspection means the house they have recently fallen in love with and are in the process of purchasing could be revealed to harbor conditions — expensive conditions. For home sellers, an inspection might mean finding problem areas that result in a price reduction or a laundry list of items to be negotiated or repaired before a closing can take place. “It’s always ‘the dreaded’ home inspection,” says Larry Willette, an inspector for 20 years and founder of Home Quality Headquarters Inc., a general home inspection company based in Tolland. But for both buyers and sellers, it doesn’t have to be. “There’s a large misconception out there that home inspectors are here to kill a deal or ruin a sale, but that’s not what we’re about,” says Rick Hall, field manager for U.S. Inspect, a national home inspection com-pany with agents throughout the state. “Our job is to help a sale go through so everyone understands what they’re getting. The buyer is our client so obviously we’re there to help them, but we’re not the enemy.” Another misunderstanding is that a home inspection offers a sort of warranty on the house; it does not. Good inspectors make a concerted effort to work with all parties involved in an inspection. “It’s a very tough time for both the seller and the buyer,” Hall says. “The more you embrace everyone in this transac-tion, the easier it will go.” It helps if both the buyer and the seller know what to expect. ‘Home 101’ For Buyers For the buyer, a home inspection is designed to, “let people know what they’re getting into,” says Bill Stanley, a second-generation inspector and the owner of Stanco Inc. in Cheshire. “It’s their basic Home 101 course.” A complete home inspection is a detailed analysis of the condition of a house and each of its operating systems. The list includes structural elements — foundation, walls, support beams, chimney, roof — and sys-tems including heat, plumbing, electrical and air-conditioning. “The point of the inspection is to help the buyer make an informed decision and determine whether there are any major conditions they weren’t aware of,” says Willette. “They also learn about the different systems in their house, and they learn what to expect based on the age and condition of things.” But there are some limitations. “It is a visual inspection,” says Stanley. “We’re not technicians. We can’t go inside the boiler or tear it apart.” Nor is a home inspection the same as a code inspection. “We’re evaluating based on what was required when that house was built 100 years ago, unless upgrades were done,” Hall says. “We tell [buyers] it’s probably a good idea to put a railing on the stairs, but was it required when the home was built? Probably not.” Standards for a Connecticut home inspection are set out by the Department of Consumer Protection, but most inspectors go above and beyond. “What you’re required to do is pretty thin,” Stanley says. “We throw in a lot of education,” says Hall. “How systems function, how a hot water boiler functions, the difference between a hot water heater and a furnace.” Good inspectors also give buyers an idea of the life expectancy on the systems in the house — “components like heating, hot water heaters, roof shingles — and how much life they have left on them,” he says. An average home inspection should last about three hours. “If you’re getting less than two hours, in my opinion, you’re not getting your money’s worth,” Hall says. Prices start around $350, average $500, and sometimes range higher, depending on the size and age of the home. Inspectors almost always encourage clients to follow them during the inspection process, learning as they go. “Follow the inspector,” Stanley says. “Ask questions.” But not all buyers make use of the opportunity. “Some lose interest,” says Willette. “They wander off. They haven’t been in the house much since they bid on it, and they might be taking the opportunity to measure rooms or plan paint colors, but if I find some-thing and you’re somewhere else, I’ll come and get you. Whatever I find, you’re going to know about it, and if it’s significant, I’m going to show you.” “Significant” findings can vary from inspection to inspection. “Every inspection report will be different,” Willette says. But most qualified home inspectors hopefully will discover the same major things, Stanley says. “Significant” are items that pertain to safety and major capital expense. Willette labels “significant” anything that will cost more than $500 to fix or upgrade along with any posing major capital expenses down the line. Buyers should not expect their reports to cover more superficial conditions, the types that can be fixed with a can of paint. “We’re not there to deal with cosmetic issues,” Stanley says. “If there’s a scratch in the countertop or a ding in the paint, from my perspective, that’s not going to change whether or not you buy the house.” Inspectors bring an array of equipment to the job. Flashlights, screwdrivers, moisture meters, voltage gauges and radon testing gear are all standard. Newer to the field and not part of every inspector’s arsenal are ultrasound devices for determining weak areas in an oil tank, and thermal imaging equipment to detect heat loss. These tests involve costly apparatus and extra fees. The presentation of inspection reports — and the timeframe in which they are delivered — varies considerably. Buyers should ask in advance about what they’re getting to be certain it meets their needs and any desired closing deadline. The most basic reports are handwritten checklists issued at the time of the inspec-tion. Other inspectors complete a checklist — “the kind with boxes for good, fair, poor,” Stanley says. Stanley, Willette and inspectors at U.S. Inspect all produce narrative or commentary reports. Gayle Deneen, area marketing representative for U.S. Inspect, says, “It stands to reason that a com-mentary format — a running dialogue as to the condition of the home — is not ambiguous to the buyer when ‘good,’ ‘fair,’ ‘poor’ can leave a lot of questions.” U.S. Inspect can also offer laptop-generated reports, on site if necessary in time-crunch situations. Getting Ready For homeowners, who tend to be a proud breed, an inspection produces different anxieties — starting with the discomfort of allowing strangers into the house to poke around and, potentially, find faults. To allay concerns, some inspectors recommend a pre-listing inspection — having the house fully inspected to identify and possibly fix any existing problems before putting the house on the market. “If you’re a person who doesn’t like surprises, why not do it ahead of time?” asks Stanley. “If you do find things … it’s much cheaper to fix something when it’s under your own terms,” Willette says. “When you’ve got your back against the wall and everyone’s panicking, it tends to cost more.” But Willette and others caution that a pre-inspection can produce problems. If the homeowner decides not to address any problems found, he or she is legally obliged to disclose them. There are other things homeowners can do to help an inspection go smoothly. “Make things easy for the inspector,” Stanley says. “Don’t have 40,000 things piled in front of the elec-trical panel. If you have a full closet leading to the attic, empty it out, or I have to.” He also suggests having “the heating and air conditioning systems serviced, and be able to show the paid receipts,” he says. “It tells the buyer you’re keeping up with things. If the buyer finds you haven’t had the systems serviced, they might not be as confident. They might wonder what else hasn’t been taken care of. Take care of it so I don’t have to find

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – 6 REASONS TO HIRE A LOCAL REAL ESTATE ATTORNEY

Buying or selling a home is best done with some assistance. Real estate brokers have access to the Multiple Listing Service in their geographical area and have obtained the educational knowledge to assist you in the process. However, for their assistance, real estate brokers take a healthy commission – generally six percent (6%) of the sales price, split between the Listing Broker and the Buyer’s Broker. Another option exists that allows you the benefits of the For Sale By Owner (“FSBO”) model without the lack of knowledge associated with lay people handling their own transaction. That option is to work with a seasoned real estate lawyer, who can draft the documents for the transaction and advise you throughout the sales process. There are many advantages to going this route: 1. Cost. Attorneys do not take a commission for this type of work. They earn their fees by the hour. As such, depending upon how much involvement you want a lawyer to have in the negotiation of the agreement, the drafting and review of documents, and the closing process, the fees generally run $1,000 – $3,000; this is substantially less than a 6% commission on the sales price; 2. Expertise. Whereas, by law, real estate brokers can only fill in the blanks on the MLS form Purchase and Sale Agreements, real estate lawyers are able to customize the language in your Purchase and Sale Agreement, if it is warranted. Real estate attorneys who litigate, as I do, have also dealt with many of the problems that arise in a sales transaction, beginning with the language used in a Purchase and Sale Agreement. As such, we can draft language that avoids the pitfalls others have fallen victim to, and guide you through a process that can be problematic for the unrepresented; 3. Your Interest is the Sole Priority. While there are many very qualified real estate brokers who represent buyers and sellers in real estate transactions, they all have an additional goal beyond making you happy. They need to get the transaction closed to get paid. Given that their commission is based on the sale closing, advising you to walk away from the deal or take more time and contemplate what is best for you over time always comes at a cost to themselves. Attorneys earn their fees based on the time we spend counseling you and working on your transaction. There is no extra money earned whether the transaction takes additional time to close or doesn’t close at all; 4. The Savings of 3% – 6% Can Be Used to Lower the Sales Price. If the commission is taken out of the equation in the transaction, the Seller does not have to charge as much for the home and the Buyer does not have to pay as much to cover that commission; 5. Review by a Lawyer is Recommended. Even if you decide you want to use the services of a real estate broker, having an attorney review the documentation and guide you, separate from the guidance of the real estate agent, with only your interest in mind is a recommended sounding board that takes the interests of the brokers out of the equation; 6. Low-Cost Listing Services for Sellers. If you are a Seller, there are brokerage services that charge a low flat fee for listing your home on the MLS. Using these services in conjunction with a real estate attorney allows you to have the marketing power of a real estate broker, with the flexibility, cost, and expertise of a real estate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – TOP 11 FSBO MARKETING WEBSITES

The top 11 FSBO Marketing Wesites To determine the best for sale by owner sites, we looked at a variety of factors including how much it costs to list your property on the site as well as what features the site has, such as easy search functionality and interior and exterior photos. We also looked at the general traffic on each site. Although you may think that Zillow would be the top place to list and look for FSBOs since it has the widest network, we recommend that buyers and sellers first use an FSBO-specific site and then expand their reach to all other applicable sites, includingZillow. The rationale behind this is that investors who buy FSBOs often visit FSBO-specific sites since there’s less competition and they feel like they can get a better deal by negotiating directly with the homeowner. On the contrary, Zillow attracts more owner-occupant buyers who are working with their own Realtors. We researched the best for sale by owner sites and determined the top ones by using the following criteria: Cost to use the site Site features Traffic on the site Types of properties the site lists Areas the sites serve (we only included nationwide or mostly nationwide sites) After compiling a list of the best for sale by owner sites, we recommend listing your property on all of them to gain the most market exposure. Since you’re saving money on real estate commissions, you might as well spend the money to list your property on every site including non-FSBO sites likeZillow. Some of the sites are free and some offer listing packages that range from $99 to more than $495, which is significantly cheaper than a 5 to 6 percent real estate commission. By the same token, buyers of FSBOs should also leverage all available sites. The reason for this is that if sellers are trying to leverage the widest network by listing on multiple sites, you can increase your chances of finding the right FSBO for your situation. Therefore, both buyers and sellers should use an FSBO-specific site if money or time is an issue and all of the sites if not. Top FSBO Sites Out of the 11 sites on our list, four sites are exclusively for FSBO properties, like FSBO.com. The remaining sites on our list are used for FSBOs as well as properties listed with a Realtor, rentals, auction items and foreclosures. For example, Zillow is one of the top real estate sites that list Realtor’s listings, rentals and FSBOs. The 11 best for sale by owner sites are: For Sale By Owner Price per Listing:$99 per month or $349 or $499 one-time fee (free 14-day trial) Types of Properties:Residential including condos, townhomes and single-family properties Monthly Site Traffic:1,780,000 For Sale By Ownerclaims that it is the leading FSBO site in the United States. It has been around since 1999 and is backed by the Tribune Publishing Company. According to the site, it saved sellers more than $70 million in real estate commissions in 2013 alone. The site is easy to use, and you can create a free account, starting the free 14-day trial once you upload your house details and photos. After the trial ends, or if you chose to forego the trial, you can choose from one of their listing packages, which are $99 per month or one-time fees of $349 or $499. Packages include unlimited photos, yard signs and customized brochures. The $499 package also includes listing your property on the Multiple Listing Service (MLS) and on Redfin. For Sale by Owner is right for you if you want to list or buy a property on a site exclusively for FSBOs. You can get a feel of the site with the free 14-day trial and then pick the best package that suits your budget and needs. It’s recommended to use this site as well as others on the best for sale by owner sites list. FSBO.com Price per Listing:$99.95 for 12 months or $399.95 for six months Types of Properties:Residential including single-family homes, condos and townhomes Monthly Site Traffic:63,420 FSBO.comis a global site and has been in business for more than 20 years. Its main goal is to connect buyers and sellers of FSBOs in a cost-effective manner. There are two packages from which sellers can choose. The first is an FSBO package which is $99.95 for 12 months and includes unlimited photos, a video and listing on the site as well as a Redfin listing. The second package is an MLS package, which lists the FSBO on the MLS, Zillow, Redfin and Realtor.com for six months for $399.95. While this is an FSBO site, the six-month package does come with a Realtor’s commission, which is set up front and is usually an additional 2 to 3 percent of the sales price, which is still less than the normal 5 to 6 percent. Yard signs are included as well. FSBO.com is right for sellers who want to sell their FSBO on one of the most well-known dedicated FSBO sites. It’s a good idea to use this site in conjunction with the other best FSBO sites mentioned on our list and also helpful if you want them to list your property on multiple sites so you don’t have to. Fizber Price per Listing:Free for a basic listing and $99 to $439 for listing packages Types of Properties:Residential including single-family homes, condos and townhomes Monthly Site Traffic:210,430 Fizber isn’t as well-known as some of the other FSBO-specific sites but it offers customizable listing options to homeowners who want to sell their FSBOs. The site claims to save the average seller $15,000 in commissions. It also has a proprietary drive score for each property and a property tax estimator tool. Alongside its FSBO listings, Fizber also shows properties that are listed with Realtors. You can list your property for free on Fizber once you create a free account or you can select from one of their paid packages. The packages range from $99 to $349 and are generally one-time fees that include extra photos and listings on Zillow and Redfin in addition to the Fizber listing. Some packages also include listings on the MLS and Realtor.com along with a video tour, printable brochures and an open house organizer. Fizber is right for sellers who want a free FSBO site to list on with no trial period and who may want to upgrade their listing to a paid FSBO. It’s recommended that you use the site along with the others FSBO sites mentioned on our list. Owners.com Price per Listing:$79 to $495-plus for six- to 12-month packages (21-day free trial) Types of Properties:Residential properties including single-family homes and condos Monthly Site Traffic:384,210 Owners.com started in 1996 as an online directory for FSBOs. In 2001, it started letting sellers post their own properties directly on the site. It offers owners the options of signing up for a free account and creating a listing with a description and photos that is free for the first 21 days. However, this listing won’t appear on any other sites besides Owners.com. If you choose a premium listing package, your FSBO will also appear on Realtor.com. They also offer packages that include six- and 12-month listings with more photos and videos. Some of these packages will be featured on other sites and the MLS and include state-specific real estate contracts, which are helpful for buyers and sellers who aren’t familiar with a real estate purchase contract or don’t know where to get one. It all just depends on how much you want to spend. Owners.com is good for FSBO sellers who want to list their property on a site that’s specifically for FSBOs. It’s a versatile site so is good for you if you want the option of a flat-fee MLS or a specialty listing package. It should be used in combination with the other FSBO sites on the list for additional exposure. Zillow & Trulia Price per Listing:Free for all FSBO listings Types of Properties:Residential with separate sections for new construction and foreclosures Monthly Site Traffic:165,550,000 Zillow was founded in 2004 in Seattle and is among the nation’s leading real estate sites and recently acquired Trulia. However, it’s not an FSBO-specific site but you can list FSBOs on it. It offers a very detailed map so you can click on the area you’re in to locate properties, which makes it easy to use for both buyers and sellers. To specifically search for an FSBO to buy, click on “Buy” and then click on the “For Sale by Owner” section. You do need to create an account to list your FSBO but it’s free and can be done in a few minutes. Once you create an account, you sign in and begin uploading photos and putting in the description details, such as the number of bedrooms, number of bathrooms and amenities. The final listing looks highly presentable compared to some of the FSBO sites and the photos really stand out. Zillow also gives you a Zestimate for your property, which is an estimated market value using their proprietary formula. Zillow is right for anyone who wants to sell their FSBO. Since it’s one of the most well-known real estate sites and is free, it should be used in addition to the other sites on this list. Redfin Price per Listing:Starts at 1 percent of sales price, and it offers buyers an average $2,000 refund Types of Properties:Residential properties including single-family homes and condos Monthly Site Traffic:31,970,000 Redfin was started in 2002 and is an online real estate marketplace and a brokerage for buying and selling property. This means that it has its own agents so it’s not a typical FSBO site. However, the commissions are usually much lower than what typical real estate brokerages charge. You work with a local agent to get your listing sold with commissions starting at 1 percent of the listing price, compared to average 6 percent commissions at most other brokerages. You can enter your property address and request a free consultation and then decide if you want to list with them. Generally, no fees are due upfront and the Realtor will put your property on the MLS. They also update their site every 10 minutes so the listings are always fresh. Redfin is right for you if you don’t want to pay the standard Realtor’s commission but still want the assistance of an agent. If you choose to use Redfin, you don’t need to use any other paid sites since the agent will market the house for you. HomeFinder.com Price per Listing:$39 per month per FSBO listing Types of Properties:Residential properties with a separate section for auctions Monthly Site Traffic:952,840 HomeFinder.com is a marketplace connecting nationwide buyers, sellers and real estate professionals. It also has an auction section and links to preferred mortgage lenders. It has been in business for 15 years but some users have noted a lack of inventory in different areas. You do need to create an account and the cost to list your property is $39 per month, which includes one listing with a description and property photos. The listings are aesthetically pleasing and look like what you may find in a real estate magazine. Homefinder.com is right for property owners who want an affordable and easy-to-use site to list their property on. However, it’s not as well known as some of the other sites on our list, so we recommend using this site in addition to other best for sale by owner sites, if at all. eBay Price per Listing:$150-plus for 30 days, $300-plus for 90 days, plus fees for listing upgrades Types of Properties:Residential, commercial and timeshares Monthly Site Traffic:1,260,000,000 eBay was founded in 1995 and became a success during the dot-com era. Today, it has more than 160 million shoppers but the majority of them aren’t looking for real estate deals. It’s mostly used by worldwide buyers and sellers as an auction site for everything ranging from household items to electronics to cars and furniture. However, there’s quite a large real estate marketplace with more than 1,200 listings. Listings can be auction, fixed price or classified ad style. You need to create an account in order to sell on eBay, and you must own the real estate yourself in order to sell it on this site. Once you create and verify your account, it’s simple to set up your listing using their template, which includes things like location, number of bedrooms, property features and photos. eBay is right for you if you want to auction off your property and want access to buyers from all around the world. Don’t worry as you can set a reserve price for your property so it won’t be sold for less than you agree to. It’s most effective when combining this site with others on the list. Craigslist Price per Listing:Free for all non-real estate agents and brokers Types of Properties:Residential and commercial Monthly Site Traffic:775,310,000 Craigslist was started in 1995 and today is the ninth-most-visited site in the entire U.S. It’s not known for being the most reputable site since there aren’t many guidelines in place to verify buyer’s and seller’s identities and if they actually own the property they’re listing. However, it’s a very popular option for property owners who want to sell their home as an FSBO. The site sells condos, commercial properties, multifamily properties, single-family homes and even the occasional apartment building. The length of the listing is 45 days and then it needs to be renewed. Craigslist is right for you if you want to stick to a budget and list your property for free. It should also be included even if you have a larger budget since it’s a high traffic site. You will need to vet the callers yourself and the site has some tips to avoid scams, such as dealing locally. LoopNet Price per Listing:Free for a basic listing; call for premium listing Types of Properties:Commercial Monthly Site Traffic:5,940,000 LoopNet is the largest online marketplace for commercial real estate and was founded in 1995. It receives more than 5 million visitors per month and has more than 500,000 listings. They will also list your FSBO onCoStar, which is used by more than 93 percent of the top commercial brokerages. You can upload your commercial property listing online easily by creating a free account. Then, you add the property description, location information and upload photos. If you want a premium listing, you need to contact the client service team and they will explain the pricing and benefits to you. This site is right for you if you’re the owner of a commercial property and want to sell it yourself. Since the site is solely for commercial real estate, its visitors are specifically looking for commercial properties. This is unlike most of the other sites where visitors may be primarily interested in residential properties. Facebook Price per Listing:Free to share your property to Facebook Marketplace Types of Properties:All property types but mostly residential properties Monthly Site Traffic:27,750,000,000 Facebook isn’t usually what comes to mind when you think of sites to list your for sale by owner property on but it’s the third-most-visited site in the world with more than 2 billion users per month. Of course, most of those users aren’t there to buy or sell real estate but some of them just might be there for that purpose. You can list your FSBO on Facebook in a few different ways. First, you can upload a photo and a description and share it with your friends. This is the most popular way but doesn’t get as much traffic as the other options. Secondly, you can add your property to Facebook Marketplace, which is like a digital store similar to Craigslist, connecting you with other Facebook users interested in your property. Lastly, and potentially the most effective way, is topurchase Facebook ads. You can advertise based on demographics, location and household income, and you can spend as little as $20 or in the tens of thousands of dollars. Since you do need a listing for this to work, you should use this strategy in conjunction with an existing listing or Facebook Marketplace. Facebook is best for you if you want to run Facebook ads in conjunction with other listings. Facebook Marketplace is similar to Craigslist in this manner. Frequently Asked Questions (FAQs) Can I List My Property on the MLS Without Using a Realtor? You can’t list your house yourself on theMLS. However, you can either hire a Realtor or a company that charges a fee to list your property on the MLS for you. Some of these companies refer to themselves as “flat-fee brokerages.” Can You List Your Property for Sale on Trulia Without Using a Realtor? Yes, you can and you will be directed to Zillow’s site since Zillow acquired Trulia. Then, you should go to the “For Sale by Owner” section, which is free for buyers and sellers. What is the Best Website to Sell Your House? If you’re not using a Realtor, it’s best to list your house on as many of the best for sale by owner sites as your budget and time allow. I recommend listing on each of the sites on our list. Even by paying to list your home on multiple sites, you’re still saving money since you’re not paying a Realtor’s commission. Generally, the more exposure your property gets, the more likely it is that you will receive an offer. Bottom Line Selling your house as an FSBO can be a long, time-consuming process but, if accomplished, can save you thousands of dollars in real estate commissions. We recommend listing your property on as many FSBO sites as your time and budget allows. If you’re buying an investment property, we recommend checking out the properties on the best for sale by owner sites like FSBO.com first since you can usually negotiate more with an FSBO than with a property listed with a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – THE IMPORTANCE OF TITLE INSURANCE

Title Insurance What is a Title? A title is the evidence or right a person has to the ownership and possession of land. A defect in the title can be any legal right held by someone other than the owner to claim property or make demands on the owner of that property. What is Title Insurance? When purchasing a home, instead of purchasing the actual building or land, you actually are purchasing the title to the property. After you buy a home, you are given a title to the property which gives you full legal ownership. However, there can sometimes be a defect in title or a hidden mistake in a prior deed, will, mortgage, etc., that may give someone else a valid legal claim against your property. In short, title insurance is protection against loss if a covered defect is found in your title. Why do I need Title Insurance? It protects all the parties involved in the real estate transaction against previous mistakes and defects. Examples include forgeries on deeds, typographical errors, pending legal actions against the property, claims by previous undisclosed relative of a former owner, outstanding judgments or liens, easements, etc. Title insurance can save you money, time, trouble, and can even save you from losing your home! How it works: There are two types of title insurance policies. The first, a ‘Loan Policy’ or ‘Lender’s Policy,’ protects the Lender and covers the outstanding balance on the mortgage, but it does not protect you as the homeowner. The second type, an ‘Owner’s Policy,’ covers you as the buyer and insures the title to the property is free from defects (liens and encumbrances), except those which are listed as exceptions in the policy. It will give you peace of mind and maximum protection in the event there is a claim against your home. What types of risks are covered? Depending on your policy, coverage typically protects against certain hidden risks like these: 1) Errors – Incorrect information in deeds, wills, trusts, mortgages, public records, or forgeries. 2) Liens or judgments against the property – Claims against the property or the seller that become the new owner’s responsibility after the sale, including unpaid mortgages, taxes, sewer and water assessments, bills owed to contractors or other creditors, etc. 3) Claims to ownership – A claim to marital interest by the spouse or child of a former owner who was not mentioned in the previous owner’s will. 4 ) Invalid Deeds – A transfer by a previous seller who did not actually own the property or by a previous owner who was not mentally competent. 5) Lack of Access – For example, if you would have to cross a private road to get to your property and the owner of the road won’t allow you to do so. Exceptions: These may not be covered by your title insurance policy. Standard Exclusions/Exceptions – Often appear as part of the printed form. For example: limitations on land use, such as laws against farm animals and mechanic’s liens, such as unpaid construction or repair bills. Special Exceptions: May be written into your policy based on defects found in the title search. For example: easements, rights of way, and other legal obligations noted in the deed or public records, “Restrictive covenants,” agreements limiting certain types of use for your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – HERE ARE THE SECRETS

Selling your home means making dozens (if not hundreds) of decisions, starting with whether to work with a real estate agent. While the vast majority of homeowners hire a listing agent, others brave the world of FSBO – For sale by owner. According toZillow research, 36 percent of sellers attempt to sell their homes themselves, but challenges along the way lead many of them to eventually hire an agent. In the end, only 11 percent of sellers end up selling their home without a real estate agent. Consider these FSBO statistics: In addition to the 57 percent of sellers who believe that selling FSBO will save them money, 36 percent believe it will save them time, and 27 percent don’t hire an agent because they feel they know their home better than any agent could. Homeowners that attempt FSBO transactions are more likely to be Millennials, city dwellers, and minorities. If you’re trying to decide whether you’re better off taking on the ultimate DIY project or enlisting the help of a local real estate professional, read on for benefits of both types of transactions. What does for sale by owner mean? For sale by owner, often abbreviated as FSBO, is when a homeowner lists their home without the assistance of a professional real estate agent. When selling on your own, you’re responsible for the process from start to finish, including pricing, staging, listing, negotiating, drawing up paperwork, and closing. Why sell FSBO? Most sellers decide to go it alone in order to avoid paying the standard 6 percent commission fee to the real estate agents involved in the sale. While most FSBO sellers are trying to keep more of their profit in their pocket, it’s important to note that a local real estate agent likely has more expertise in pricing strategy, so it’s possible that the net profit you earn from a FSBO could end up being lower than if you had listed with an agent. Benefits of for sale by owner Homeowners who choose to sell their house without a listing agent maintain control of showings and open houses. Photo from Stocksy. 1. You’ll avoid paying listing agent commission:The most common reason to FSBO is to avoid paying commissions, which are fees paid to agents based on the final selling price of the home. Commissions average between 4-6 percent of the home’s purchase price and are usually paid by the seller from the proceeds of the sale. Typically, the buyer and seller have their own agents, with the commission split between the two. 2. You’ll have complete control of the listing price:Without an agent, you’re the sole decision maker when it comes to your list price. You’ll need to make sure you put your emotional connection to your home aside. Look at your home as an asset and do your research to see how your property stacks up against other similar homes nearby. For $300-$500, you can hire an appraiser to give you a real market value. 3. You can manage the schedule of showings and open houses:Fleeing your house for last-minute showings and all-day weekend open houses is a lot of work—not to mention having to keep your home pristine around the clock. When you’re running the show, you get to decide when you want to show your home. And, you won’t have to wait for your agent to be available to do a showing for you. 4. You’re motivated to sell for top dollar:Because it’s your finances on the line, you’ll invest the time and energy to advertise your home in the best light. FSBO sellers can advertise online (where79 percent of buyers say they search), including on Zillow and on sites dedicated just to real estate sold by owners (here’s where you canpost your FSBO on Zillow). There are also some online services that can get your home listed on the MLS, usually for a flat fee under $1,000. Don’t forget about professional photos, signage, and print ads. 5. You’re the neighborhood expert:You can speak to potential buyers about not just the home itself, but what it’s like to live in the community. After all, you know your neighborhood best. Sharing that knowledge can be a huge selling point with buyers. Be aware: When listing FSBO, it can be challenging to set aside your attachment to your home and focus on the process of selling. With dealing with real estate sold by owners, objectivity and acceptance of feedback from potential buyers are incredibly important. To help move your negotiations forward in a productive manner, make sure you know ahead of time what your bottom-line price is and what concessions you’re open to making. This can help make negotiations more logical and less emotional. Benefits of hiring a real estate agent 1. They understand fair market value and pricing strategy:When you work with an experienced, local agent, they should have a great handle on just what your home is worth in your area, and what kind of pricing will get buyers through the door. They can help you walk the tightrope of getting you as much money out of your house as possible, while still appealing to a wide range of buyers. 2. They’re objective listing experts:Good real estate agents have a deep understanding of their local market and want to show your home in the best light. They also have relationships with photographers and home stagers, who can all work as a team to highlight the amenities that local buyers want. 3. They have access to extensive market exposure:With access to the local MLS and online listing portals, social media presence, professional networks, connections with other agents, and name recognition, your real estate agent can get a lot of eyes on your listing and plenty of potential buyers in the front door. 4. Buyer’s agents are more likely to show your listing to clients:Real estate agents are paid on commission, so some agents may not take the time to show your FSBO listing to their clients, since there’s no guaranteed commission. Be aware:As a FSBO seller, you can decide to offer a standard 3 percent commission to the buyer’s agent (still saving the 3 percent you would have spent on your own agent). This can help alleviate the bias some buyer’s agents have toward for sale by owner properties. 5. They’ll negotiate professionally:Experienced agents can spot serious buyers and guide you toward the strongest offers, which eliminates the burden of calls and negotiations with less motivated shoppers. Agents are extremely familiar with both the selling process and your local market, so they can recommend appropriate counter offers. Bottom line—they’ll help you get as much money as possible. No wonder 82 percent of sellers surveyed by Zillow said they value their agent’s ability to lead contract negotiations. 6. They know the paperwork:There’s a lot of documentation involved when you sell a home, and without an agent, the burden of making sure it’s complete and accurate falls on the seller (or an attorney you’ve hired to help). Seasoned real estate professionals are experts at the purchase and sale process, and all the legalese that comes with it. Be aware: If youhire a real estate agent, you likely won’t be their only client. Be sure to hire an agent who understands both your motivations for selling and your timeline. Be clear about your communication preferences and let them know how involved you want them to be. You’ll be paying them a commission out of your profits, so it’s important that you’re satisfied with the level of service. An alternative to FSBO or listing with an agent What is Zillow Offers? Zillow Offersis a new way to sell your home. Avoid the time and effort required to list your home on the open market, and instead sell to Zillow directly. It’s a fresh alternative to the FSBO vs. real estate agent debate. No need to list or price your home:Just answer a few questions about your home. No expensive home improvements:Save money, stress and time by selling your home as-is. Skip the staging and professional photography:Zillow doesn’t need to see a picture-perfect home to make an offer. We’ll look at your home facts and local data and send a cash offer within a few days. Get help when you need it:Zillow’s Seller Support Specialists are available to provide more information about the process and answer any questions you might have along the way.Contact one now. There’s no commitment:If you’re tired of selling your house on your own or want the certainty of a cash sale, Zillow Offers can be a great option. There’s no obligation — you can accept the offer and choose your closing date, decline the offer, or consult with an agent. Request a comparative market analysis from an agent: To see how your Zillow Offer compares to what your home might sell for on the open market, you can also have a trusted, top local real estate agent create a comparative market analysis for you, for free. If you don’t like the offer, you always have the option of going with the local

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – THE RIGHT WAY

For those hoping to maximize profits on a home sale, posting a “for sale by owner” sign in the yard is an appealing option. Real estate brokers typically take 5 to 6 percent of the sale price, which could mean as much $12,000 is lost to commissions in the sale of $200,000 house. However, saving money isn't the only reason people decide to sell on their own. “Selling your home can be a very time-consuming process, especially when you have a broker representing the sale,” says Allen Shayanfekr, CEO of real estate investing platform Sharestates. While a broker will do much of the work, Shayanfekr says owners will find they have to coordinate schedules with their agent and work on their timeline, which some people might find inconvenient and frustrating. Regardless of whether you want tosell your own hometo walk away with more money or retain more control over the sales process, you need to do it the right way. That may involve spending a little extra money upfront to maximize the sale price and minimize any headaches. Have your property appraised.“In a low-inventory market like we're seeing today, pricing your home correctly is crucial,” says Emile L'Eplattenier, real estate analyst for FitSmallBusiness.com. Normally, areal estate agentprovides a comparative market analysis to price your home appropriately. This analysis will look at the features and condition of your house and compare it to other recent sales in the area to determine the appropriate asking price. ADVERTISING If you don’t have an agent, you could do your own market analysis using free online resources such as Zillow and HouseCanary or by scouring local tax records for recent sales data. Some homeowners ask local agents to provide a free comparative market analysis even though they have no intention of listing their home with that broker, but paying for an appraisal may be the best way to get an accurate value while bypassing the ethical questions associated with this strategy. When to Fire Your Real Estate Agent If your agent isn't returning calls or lacks knowledge, consider moving on. Get serious about your listing.Once you know theright price for your home, it’s time to create a listing. Homeowners have options that run the gamut from posting free ads on Facebook sales groups and Craigslist to setting up a dedicated website to market the property. For a flat fee of around $400 to $500, you can have your property listed in the multiple listing service, known as MLS. This will post your home where real estate agents can easily find it. Paying for MLS inclusion can expand your potential customer base, but be aware you’ll likely need to pay a 2 to 3 percent commission to the buyer’s agent if they have one. However, even an MLS listing may not get much attention if the photos are dark and the rooms cluttered. Clearing out the excess and improving lighting can go a long way towardmaking your home attractive to buyers. Other options would be to pay for a professional photographer or use a service like roOomy, which allows people to virtually stage their house by uploading photos of rooms, erasing old or unsightly furniture and replacing it with images of more stylish décor. Remove emotion from the process.Homeowners undoubtedly have their favorite property features. There may be aspects of the home they love and naturally would like to emphasize. However, buyers may have other priorities, and focusing only on the things you love could be off-putting. “The right buyer might be someone who is looking to completely redesign the property and while meeting, they might make comments that would, in a different setting, offend your taste,” Shayanfekr says. For the sales process, you need to shift your perception from selling your home to selling a house. Approach your house sale like a professional.Removing emotion is only the first step toward selling your house like a pro. You also need to be ready to put in the time to show the house, respond to emails and calls promptly and provide thorough information. People also need to be strategic about their marketing and take care not to share too much about defects upfront. “The ‘warts and all’ approach can and will backfire on you if your home is not priced carefully,” L’Eplattenier says. “Skilled salespeople downplay negative aspects of the home until they get their clients physically [inside] to talk them through their options.” RELATED CONTENT Go On a Relaxing Vacation While Selling Your Home The stresses of selling a house will never completely go away, but these steps will help you enjoy your time away even with a home on the market. Hire a real estate attorney.Between the documentation needed for the mortgage, title transfer and other legal requirements, the paperwork for home sales is extensive. “There are two common hurdles we see related to the [for sale by owner] process,” says Craig Evans, an executive with Ally Home Mortgage. “The first is the accuracy of the purchase agreement. The second is related to aligning expectations on both sides of the purchase transaction.” Evans says both problems can be addressed by having a real estate attorney review paperwork. A handful of states, such as New York and Georgia, have laws requiring all sales, even those in which the buyer and seller have agents, be overseen by a real estate attorney. Zillow estimates the cost for one to be between $500 and $1,500. Don’t rule out an agent.L’Eplattenier saysselling a house isn’t for everyone. Not only does it require a significant investment of time and energy, it may result in a lower sale price. In 2016, the median price of a home sold with an agent or broker was $245,000, while the median price of properties sold by the owner was $185,000, according to the National Association of Realtors. There is no hard data on whether “for sale by owner” properties are sold below market value, but L’Eplattenier says the homes that do sell this way tend to go quickly, which is an indication that they are underpriced. For those who want to use an agent but can’t stomach paying thefull commission, a discount real estate broker may be a good choice. Redfin is one example of a company promising full service but charging only a 1.5 percent fee. However, keep in mind you’ll still need to pay the customary 2 to 3 percent to the buyer’s agent. Going the “for sale by owner” route can result in more cash in your pocket, but you need to be smart about how you approach the sale. Spending time and money on your listing and an attorney can help ensure you get the best price possible and that the transaction goes

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – 5 REASONS YOU SHOULD FSBO

5 Reasons You Should For Sale by Owner (FSBO) More and more homeowners are taking advantage of the technology-based tools available to help them list, market and sell their own homes without enlisting a realtor. Why? That six percent commission is a big chunk of money to hand over to someone to do something that you can actually do yourself. Don’t be fooled by the naysayers – they’re the real estate professionals who want the commission in their pocket, not yours. You actually can do it yourself, FSBO style. Think about it – if you’re selling your home for $300,000, your will get a six percent commission from the sale price of your home. That’s $18,000 that you’ll never see—it may be the equivalent of your home’s equity or even more. And for a majority of homesellers, we think there are several reasons it would be a bad idea to hand over thousands of dollars to an agent who has access to the same technology available to home sellers today. Who says you can’t FSBO? Keeping Current Matters (KCM), a real estate education firm in Ronkonkoma, New York, claims FSBO sellers shouldn’t try to go it alone for a number of reasons. For one thing, KCM believes that “there are too many people to negotiate with” for ordinary people to even attempt selling without an agent – because ordinary people don’t go through life negotiating with others, I suppose. Apparently negotiating, in the cloistered world of the American real estate industry, is not something homeowners are capable of managing on their own. But when you eliminate the middleman (the real estate agent), you have only two people to deal with! In a blog written by “The KCM Crew”—apparently the firm’s ghost name for its blogger(s), homeowners should just forget about attempting a FSBO sale, hire an agent and the universe will continue to spin on its axis. In their blog titled “5 Reasons You Shouldn’t FSBO,” the KCM Crew tells home sellers how it is in the real world of real estate, a world where ordinary people dare not tread. We’re supposed to believe this is rocket science. It’s not rocket science, it’’s not even Biology 101. Anyone can sell their own home. The KCM Crew kicks off their blog with a warning for all the naïve FSBO home sellers who simply don’t know what they are getting themselves into. Next comes the Crew’s foreboding list of five reasons sellers should abandon the impending disaster that’s sure to come to anyone who attempts to go it alone. Remember, the KCM Crew’s actual words are bolded here to distinguish their deep, immortal wisdom on the subject. The first one is my favorite, and bears repeating: 1. KCM Crew claim: There Are Too Many People to Negotiate With FSBO Facts: Yes, folks, the KCM Crew warns readers of just some of the people with whom ordinary home sellers must be prepared to negotiate if they attempt to sell their own home without the guidance of an agent. This is not for the faint of heart: The buyer who wants the best deal possible.Naturally, such an extraordinary expectation would probably be too much for the FSBO seller’s delicate sensibilities. Who would even see that coming? The buyer’s agent who solely represents the best interest of the buyer. The KCM Crew’s assumption here is that the FSBO seller will be entirely out of their league negotiating with the buyer’s agent. It can only be assumed that the buyer’s agent is the all-powerful Wizard of Oz. Try not to show weakness or fear. The buyer’s attorney (in some parts of the country). I love it that the KCM Crew sneaked “in some parts of the country” in there parenthetically, hoping no one would recognize a disclaimer when they see one. Anyway, negotiating with a buyer’s attorney shouldn’t be intimidating. Generally, if the buyer’s attorney is negotiating with the seller, it’s to iron out some legal issues he or she anticipates. The seller can always hire an attorney as well if he or she feels at a disadvantage, usually for a nominal flat fee of between $200 and $400. The home inspection companies, which work for the buyer, will almost always find some problems with the house. Well, if I didn’t know any better I’d think the KCM Crew is suggesting that most home inspection companies are on the take, on behalf of buyers. If a home inspector finds a problem with the house that the seller was unaware of, the seller can get their own home inspector in for a second opinion if he or she believes the home inspector is a nefarious character trying to benefit from an invented problem. Most likely, if the buyer’s inspector found something wrong, it’s legit. Once the homeowner is made aware of the problem, he or she is required by law to disclose that information to other potential home buyers. Of course, the seller may simply opt to fix the problem and call it a day, or work with the buyer to incorporate the cost of the fix into the home’s sale price. Home inspectors, generally, are just doing their jobs. The appraiser, if there is a question of value.– Oh, come on, KCM Crew! Appraisers are working for the bank that’s lending the buyer the mortgage! The appraiser isn’t going to negotiate with the home seller if it means he or she would be appraising a home inaccurately, which for the record, would mean defrauding the lender—you know, the appraiser’s employer. Appraisers, like home inspectors, have a job to do. That job does not include waffling on a home’s market value. FSBO sellers have the same tools available to them as any real estate agent to establish their home’s fair market value, and most FSBO sellers have done enough homework to understand how it works. Those are the same tools the appraiser uses too. Level playing field. If the home seller has an emotional attachment to the house that leads them to believe their house is worth more than its market value, the appraiser has no choice but to offer a reality check. He or she can’t–and won’t–negotiate market value. Your bank, in the case of a short sale. OK, granted, short sales can be a miserable experience for home sellers, but paying a real estate agent to negotiate on a home you’re selling at a loss to begin with is just absurd. If you’re in over your head, a real estate lawyer with an affordable flat fee can be a great ally. Unfortunately, with short sales, both the bank and the seller are going to take a financial hit. Contrary to what the KCM Crew says, though, to avoid negotiating the short sale with the lender is never in the seller’s best interest. Suck it up and do what you can. Negotiating with your lender over a short sale simply isn’t a good reason to run out and snap up an agent. It’s time to cut your losses, not pile more on. The KCM Crew’s blog continues with more reasons not to FSBO, and here they just make word salad to confuse the reader by attempting to make their argument sound like a real thing: 2. KCM Crew Claim: Exposure to Prospective Purchasers. Recent studies have shown that 92 percent of buyers search online for a home. That is in comparison to only 28 percent looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you? FSBO Fact: First of all, rule number one of any type of journalism is “cite your sources.” It’s all about credibility. However, I do agree that 92 percent of buyers search for homes online, and 100 percent of sellers are searching online to see what 92 percent of sellers are looking at. FSBO sellers are using the same sophisticated technology to list and market their homes as the buyers use to find homes. In fact, FSBO sites like ListingDoor.com offer sellers all the savvy internet tools they need to market their homes like a pro. I think the KCM Crew is insinuating that FSBO sellers still think print newspaper ads are the way to go. Hey, KCM Crew, stop besmirching the intelligence of home sellers! They’re smart enough to keep your commission in their own pocket, after all. And their internet marketing strategies are awesome—and usually more awesome than a Realtor’s®. 3. KCM Crew Claim:Results Come from the Internet. Where do buyers find the home they actually purchased? 43 perent on the internet 9 percent from a yard sign 1 percent from newspapers The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial. FSBO Fact: Again with the condescending (and unverified) assumptions, KCM Crew? FSBO sellers have adopted dynamic internet strategies! Have you seen Zillow? Trulia? ListingDoor.com? FSBO sellers are not depending on newspaper ads and lawn signs as you claim. Instead, they’re listing their properties online, and they are leaving you in their high-tech, internet strategy dust! 4. KCM Crew Claim: FSBO’ing has only become MORE difficult. The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19 percent to 9 percent over the last 20+ years. FSBO Fact: Your figures are patently false, KCM Crew. FSBO sales have been steadily on the rise over the past 10 years. Your figures come from a National Association of Realtors (NAR) report that was swiftly and effortlessly proven to contain doctored numbers and omit chunks of pertinent facts so that the report reflected what the NAR wanted people to believe. Now, aren’t you ashamed of yourself for quoting inaccurate figures from a distorted report, custom crafted by the NAR? I’m embarrassed for you. As for the paperwork, which isnot too overwhelming for the ordinary home seller to handle, if the home seller would like help with it an attorney can handle the paperwork for about $300. Get over yourselves. 5. KCM Crew Claim: You net more money when using an Agent. Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real commission. The seller and buyer can’t both save the commission. Studies have shown that the typical house sold by the homeowner sells for $184,000 while the typical house sold by an agent sells for $230,000. This doesn’t mean that an agent can get $46,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense. FSBO Fact: KCM Crew, what would you say if I told you the entire content of your point #5 is preposterous? First of all, your claim that people are more likely to FSBO in markets with lower price points is just plain false. Homes in the FSBO market come in all markets and price points, including those priced at more than $1 million! Imagine the commission savings those sellers enjoy! In addition, it makes no sense that a Realtor®—any Realtor®—could really out-profit FSBO sellers to the degree you “professionals” claim, especially when you claim that’s including commission. In fact, Economist John Wake wrote a fascinating blog that exposes the NAR’s manipulation of facts and figures to try and convince their fast-shrinking client pool that realtors do it much better, when in fact, they don’t. Here’s a link to Mr. Wake’s revealing exposé inReal Estate Decodedof the NAR’s sleight-of-hand shell game with facts and figures. Bottom Line FSBO home sellers are standing up to the NAR, who have spent decades brainwashing homeowners into believing they’re not capable of selling their own home. Anyone can sell a home, whether you’ve done it before or not. Online tools and strategies, and sites like ListingDoor.com provide all the tools a home seller needs to be successful. Search engines are packed with carefully crafted press releases and blogs just like this one from the KCM Crew – a NAR-fueled marketing strategy to saturate all media with their anti-FSBO scare tactics. The truth is, no one needs to hand over thousands, even tens of thousands of dollars to an agent when the tools are available to them to sell their own homes. If you’re juggling work, a family and constant travel, or if you need to move next week and you just found out last week, then sure, a Realtor® might be what you need. But if you have the time and the focus to learn how to do it yourself, and the commitment to save thousands of dollars on an agent’s commission, skip the agent and enjoy the adventure.ListingDoor.comwill help you every step of the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – WORDS THAT MAKE A DIFFERENCE – WORDS MATTER

The common saying “location, location, location” is often but not always true. Though location does affect a property’s value, this value can also shift up and down depending on how the property is described. Especially when it comes to real estate listings, word choice can mean the difference between tens of thousands of dollars. Research conducted by economist Paul Anglin at the University of Guelph shows how. Anglin and his colleagues surveyed over 20,000 real estate ads to determine which words and phrases had the greatest effect on time until sale, effect on listing price, and effect on selling price. They found that word choice in a real estate listing could increase the selling price by more than 6% and negatively impact the selling price by as much as 10%. That means that the selling price of a house listed as $250,000 could fluctuate by more than $35,000—selling for $275,000 if described as “landscaped” and $225,000 if described as a “starter home.” A summary of Anglin’s most impactful real estate words and phrases. (Source) The point is that words do matter. In this article, we’ll show you how to use the best words to attract the three most important buyer segments: the luxury buyer, the middle-class buyer, and the buyer in lower socioeconomic brackets. We’ll walk you through which words to use for each buyer segment and explain how they will cut down on your selling time and boost your selling price. Words that cater to the luxury buyer The luxury buyer, someone earning above $418,000 (as defined bynational tax law) comes in many shapes and sizes. They might be anyone from a business owner looking to retire in a country estate to a youngish tech employee interested in a modern, sleek New York City apartment. Though this diversity means that the luxury buyer might have vastly different interests and priorities, research has illuminated one important trend: Luxury buyers are interested inluxe amenities. These luxe amenities are features that serve the sole purpose of entertaining the owner. Tennis courts, movie theaters, and arcade rooms are all great examples of the kinds of luxuries that attract the wealthiest buyers. Research conducted byZillow, an online real estate marketplace, found this to be true with the following key real estate phrases: 1) Movie Theater By simply using the word “movie theater” in the listing, you canimprove the value per-square foot of your home by over 70%. Wealthier home buyers are particularly interested in amenities like movie theaters. (Source) This is a clear indicator that luxe buyers are looking for homes with features that middle- and lower-class buyers just can’t afford—personal home theaters. 2) Heated floors Including the phrase “heated floors” in an ad can increase the closing price by as much as4.3%. This phrase can also expedite the time it takes to sell a property by up to28 days sooner than expected. Like the term “basketball,” the popularity of a phrase like “heated floors” is indicative of the wealthy buyer’s interest in amenities designed to enhance their lives—amenities that buyers in lower-income brackets might consider gratuitous. Heated floors are particularly attractive amenities to luxe home buyers. (Source) Trulia, another online real estate marketplace, recently conducted research to determine words and phrases most commonly associated with the priciest housing listings. Though not unanimously, many of these words also echo features that simply aren’t available in middle-class housing—formal gardens, a parlor, powder rooms, just to name a few. Words and phrases most commonly associated with high ticket real estate. (Source) Whether a property has a motor court or not, however, is beside the point. What matters is the general trend—that the wealthiest buyers are looking for amenities in their homes that aren’t common anywhere else—at least not for the average home buyer. Case Study 1: Buyers in the highest income brackets are not only attentive to these amenities, but are attentive to how the amenities are described. One word, in particular, seems resoundingly successful in getting the luxurious buyer’s attention: 3) Luxurious The word “luxurious” can increase the selling price of a home by over8.2%. That means a property like the one below, with an asking price of 2.8 million, might, in fact, sell for over 3 million—all because of the inclusion of the word “luxury.” A luxury home listing can boost the property’s selling price by over 8% simply by including the word “luxury.” (Source) That increase, compounded with words like “basketball” and “heated floors” —or any other words that accentuate the home’s luxe amenities, might bring the selling price well over 10% the listing price. That’s a welcome increase—one you can also achieve in knowing what attracts the middle-class buyer. Words that cater to middle-class buyers Like the luxury buyer, the middle-class buyer makes up an extremely diverse group of people. They can be single, married, with and without kids. This means, again—like the wealthiest buyers—the middle-class buyer is going to have varying interests and priorities. Ads for these buyers, who we’re defining as those earning between$91,000 and $191,000(according to national income brackets), also show one key trend: an interest in amenities. What (perhaps intuitively) differentiates these amenities from those of the luxe buyer, however, is that these amenities are less pricey. These kinds of features are simply add-ons to what would already exist in most houses: things like cabinets, sinks, and tiles. Listings show that middle-class buyers like these features when they are designed with high-end materials including granite and marble. Below are a few of the most successful words used in boosting the selling price and minimizing the time to sell: 1) Shaker Cabinet Originating during the 1970s, Shaker cabinets have become popular for their “simple and functional aesthetic.” With few embellishments, they offer a sleek, “no-frills” wooden design. Shaker cabinets are one of the most popular amenities attracting middle-class home buyers. (Source) If included in a listing, they can increase the value of a home by more than9.6%. Better yet, listings with these two magic words sold45 days faster than anticipated. 2) Farmhouse Sink Farmhouse sinks are similarly popular.Modeled after British apron sinks during the late 17th century, these sinks started out as buckets that homeowners used to carry back and forth between their kitchens and wells outside. Though this was a less-than-luxurious activity, it created an aesthetic that now attracts many modern homeowners. Farmhouse sinks can increase a property’s selling price by nearly 8%. (Source) In fact, the farmhouse sink can increase the closing price by up to7.9% and decrease the selling time by more than 58 days. That’s a great deal for the real estate broker, considering that the average farmhouse sink costs anywhere between$400 and $800. It also reveals how middle-class buyers are willing to pay big bucks for nice, updated, attractive amenities. 3) Subway Tile Subway tile is another one of the middle-class buyer’s most sought-after amenities. As might seem obvious, the tiles got theirname from tiles originally installed in the New York City subway during the 1900s. Since their installation in the New York City public transit system, these tiles have become domesticated and are now commonly found in home kitchens and bathrooms. Subway tile is commonly used in kitchens and bathrooms. (Source) Like the farmhouse sink, subway tiles also offer the real estate broker a great deal. With a maximum cost of around$13 and minimum cost of around $6 per-square-foot, they can increase the closing price by as much as6.9%. They can also encourage middle-class buyers to close the deal63 days faster than they otherwise would. Case Study 2: Like luxury buyers, middle-class buyers are attracted to nice amenities. The house below was recently sold for the second time for$267,435. The house features subway tiles in the kitchen. (Source) Particularly notable is that this house sold for $47K more the second time than it did the first. Its listing, which described the tiled kitchen, could have accounted for a significant portion of that price increase, offering yet another salient example of how best to market towards middle-class buyers: feature words that focus on the home’s finest amenities and fixtures. Words that cater to buyers in the lower socioeconomic brackets You can also maximize ads for properties with the lowest selling points. An important trend appears in the listing for these buyers, those who earn between$37,000 and $91,000. Because homes that areparticularly low-priced are often older than newer homes, these buyers are attracted to listings that have been “updated” or “upgraded” in some way. These words are, in part, so popular because they indicate to the buyer that they aren’t going to need to invest a ton of money into a property they’re already buying. The numbers are also pretty telling: 1) Updated By simply adding in the word “updated,” a listing can increase a property’s closing price by 0.8%. Though this might not appear as significant an increase than others we’ve mentioned, it can help the seller pocket several hundred more dollars than they otherwise would—putting $520 more into the pocket of someone selling a $65,000 house, for example. 2) Upgraded “Upgraded” also increases the closing price, oddly enough by a bit more than “updated.” The inclusion of this word can reign in about 1.8% for a listing than if it were left out. Research done byTruliaoffers insight into just why words like “updated” and “upgraded” might be so attractive to buyers in lower-income brackets. As the table below shows, common phrases associated with cheaper homes—phrases like “city inspection, septic repairs, and repair plumbing system”–are nearly all related to some kind of repair or damage. Words and phrases most commonly associated with less expensive real estate. (Source) Because these repairs and damage are going to make the price of a property go down, buyers are particularly attracted to cheap homes that will remove the work and money needed to fix up their newly purchased property. Case Study 3: The property below offers one example of the value of a word like “upgraded” in a listing. Listed originally for $179,000, this ranch home could potentially sell for over $3000 more than it otherwise would have. Words like “upgraded” and “updated” make homes in lower price ranges particularly attractive. (Source) It offers yet again another important example of what strategy to use when attracting buyers with lower incomes: use words that focus on improvement, rather than on repair or damage. Words do matter Words do matter. Though it’s important to keep in mind that they aren’t everything—and won’t necessarily make or break an ad—they can save you a ton of time and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – WIN FOR CONSUMERS AND ATTORNEYS

FSBO: Win-Win for Consumers and Attorneys There is value in a diverse new client funnel. Fundamental changes in technology have created new opportunities for lawyers. There may be no better example than real estate. It starts with FSBO – For Sale by Owner. In Seattle today,it’s a great time to sell a home. A home – any home, in any condition – can elicitan “insane” bidding war. In some neighborhoods, it seems writing “For Sale” in chalk on the front door could attract a few fair-market offers. So why do sellers still routinely pay 6% to sell a home? In this historic seller’s market, surely sellers can save a point or two –or way moreon real estate broker commissions. Thosecommissions average about $40,000in Seattle. That’s an opportunity for massive savings. A year of college, anyone? Homeowners can market the home themselves Real estate brokers provide two types of professional services to home sellers: marketing services to attract buyers andlegal servicesto negotiate a contract. Since buyers far outnumber sellers these days, any reasonably sophisticated home-owning adult can handle the marketing. Because of the transaction’s nature and magnitude, though, the legal services are a different matter. Legal counsel is prudent Selling real property is a uniquely legal transaction. The obligations and potential liability of the seller are rooted in hundreds of years of common law. They also flow from statute. The vastmajority of sellersmust disclose the knowncondition of the homein detail. Furthermore, the stakes are high. The typical home in Seattle sells for $735,000. For most, it is the largest financial transaction of their lives so far. It’s a big deal that requires incurring legal fees – whether paid to an attorney or a real estate broker. A lawyer provides huge value SinceCultum v. Heritage House Realtors, 103 Wn.2d 623 (1985), brokers have been able to engage in the limited practice of law (by filling in blanks on preprinted forms drafted by lawyers). Back in the ‘80s, the court noted, brokers could much more efficiently provide the needed legal services. Today, the internet allows sellers to effectively market the home themselves. Meanwhile, increased competition in the legal field, combined withhousing values that have far outstripped inflation, mean lawyers are no longer the expensive option. They are, in fact, much less expensive than real estate agents. Needless to say, they also provide superior legal services. By hiring a lawyer, a seller will have a full and complete understanding of the risks and potential liabilities associated with selling real estate. Those risks can be addressed and reduced by inserting unique terms into the contract (which is beyond an agent’s authority to practice law). Buyers make great clients All of the same logic applies, of course, to home buyers. These days,more buyers use the internet than an agentto find their home; so buyers don’t need assistance on the “shopping” end of the real estate broker service spectrum either. Buyers do, however, need legal services. And they, too, will benefit from having legal counsel to provide the legal services (e.g., only an attorney is qualified to interpret a title report). Tools are available Expanding a law practice to include residential real estate transactions is easy. Every broker is a member of the Northwest Multiple Listing Service (NWMLS). So the service’s forms are the de facto and near-universal standard. When representing sellers, an attorney is more than qualified to counsel a client about an offer on NWMLS forms. And those may be the only forms you ever see. Theforms are for sale to attorneys. A lawyer can easily draft an offer on behalf of a buyer that will be received like any other. Important in this market. The best part? Knocking 3% (the unpaid commission to the buyer’s agent) off the price. Everyone wins When an attorney provides legal services to home sellers and buyers, they give consumers an alternative– a chance to save an enormous amount of money and superior service in the process. And the attorney gets a new stream of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CONSIDERATIONS TO MAKE BEFORE INSTALLING A POOL

As summer approaches, perhaps you're daydreaming about putting in a swimming pool or buying a property with a backyard pool. That way you can take a dip and cool off in your own pool whenever the mood strikes, never mind piling the kids in the car on a hot summer day or jockeying for space at a community pool. But before you dive in (pun intended), consider these financial implications of a swimming pool. Upfront cost. If you're planning to install a pool, be prepared to open your wallet. PK Data reports that the average cost of a residential in-ground swimming pool was $39,084 last year. Don't expect to recoup all of that money when you sell your house in the future, cautions Sabine H. Schoenberg, a home improvement expert and founder of SabinesHome.com. "It's not something that's value-enhancing to a lot of people," she says. "Just as there are people with positive feelings towards pools, there are those with negative feelings. I would never put a pool in as a speculative builder." If you decide to move forward with a pool installation, Schoenberg suggests thinking carefully about the placement of the pool in your yard. "If it's in one faraway corner, people aren't going to use the pool," she says. "You need to look at the natural daylight as it travels around the house. I don't think it's a good idea to put a pool into a dark, shadowy place." She also suggests finding an installer who offers a five-year warranty, not just a one-year warranty. Also investigate your town or municipality's regulations around pools. "Each town will have its own definition of a 'pool,' often based on its size and water depth," says Loretta Worters, spokeswoman for the Insurance Information Institute, an industry organization that provides insurance information to the public. "If the pool you are planning to buy meets the definition, then you must comply with local safety standards and building codes. This may include installing a fence of a certain size, locks, decks and pool safety equipment." Ongoing maintenance. Before you buy a home with a pool, try to get the pool inspected. "The best way, I find, is to get a pool company to come and look at the pool closely," Schoenberg says. "Sometimes that's a challenge if it's the winter, and the pool is partially drained down, so you may not be able to do a full inspection." Also, find out if the previous homeowner had a pool company servicing the pool so you can find out if it's been serviced regularly and what that company charges. Peter Haskew, owner of Crystal Clean Pools of New York, says the quality of a pool's construction matters more than its age. "You might have above-ground pools where you've got ladders pulling on the side and ripping the vinyl," he says. "Some people cut costs, and there's thicker vinyl or better grade vinyl available." In-ground pools can also get cracks, he adds. Some of Haskew's customers just pay a few hundred dollars for his company to open the pool at the beginning of the summer (including removing the cover, cleaning out debris and getting the motor running again), and close it at the end of the season, while others also pay for weekly or biweekly cleanings. When homeowners don't pay for regular cleanings or clean it themselves, that can trigger costlier maintenance calls. "We've opened pools, and [they] didn't take care of it, and the next thing you know you've got a gunked up filter or a motor that might have issues," Haskew says. One customer even had a snake stuck in the pump! The cost of replacing motors, pumps and covers (which can get moldy if they're rolled up while wet) varies depending on the size and model used. Adding chemicals to balance the pool's pH level is another cost. "If your pool gets used a lot, you might need more chemicals," Haskew says. "I'll see that the kids are out of school, and they have friends over. The more use they get out of it, the more demand to get chemicals in it." Insurance costs. Insurance companies do not like insuring homes with swimming pools, according to Worters. "All pools – from a simple above-ground kiddy pool to an in-ground pool – can be dangerous and need to be properly insured and comply with local safety standards," she says. A pool increases the homeowner's liability risk, so you may want to increase your liability coverage. "Liability limits generally start at about $100,000," Worters says. "However, experts recommend that you purchase at least $300,000 worth of protection. Pool owners should consider purchasing an umbrella liability policy. In today’s litigious society, $1 million of liability is nothing, especially if someone dies in your pool and the family sues." Pools are meant to be fun, so getting a handle on the expected costs can help alleviate potential stress. "They should be part of your fun outdoor entertainment," Schoenberg says. "You want to have predictability in terms of cost, and you don't want to suddenly find out you have some huge

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – HOW TO PREPARE YOUR HOUSE BEFORE PUTTING ON THE MARKET

How to Prepare Your House for Sale The little things can make a big difference Every seller wants her home to sell fast and bring top dollar, but it takes more than luck to make this happen. It involves careful planning and knowing how to professionally spruce up your home so that you'll convince homebuyers to scurry for their checkbooks. Disassociate Yourself With Your Home Letting go can be difficult. You've lived here, possibly for years, and it's your home. It's become a part of you. But you have to make that emotional break. Tell yourself, "This is not my home. It is a house. It is a product to be sold just like a box of cereal on the grocery store shelf." Make the mental decision to let go of your emotions and focus on the fact that soon this house will no longer be yours. Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners. Say goodbye to every room. Stand in each doorway and talk out loud about your memories if that's what it takes. Don't look backward. Look to the future. Depersonalize the Space Pack up those personal photographs and family heirlooms. You'll have to do it eventually anyway when you move, and buyers tend to have a hard time seeing past personal effects. You don't want your potential buyers to be distracted. You want them to be able to imagine their own photos on the walls, and they can't do that if yours are there. This goes for furniture items, too, painful as that might be. Not everyone will share your taste, so if you have your bright red sofa screams, "I'm unique!" you might want to remove it for the time being. Try to stick with your more understated pieces. Depersonalizing Includes Decluttering People tend to collect an amazing quantity of junk. If you haven't used a certain item in over a year, you probably don't need it. If you don't need it, why not donate it or throw it away? Do you really want to go to the trouble of packing it up and carrying it to your next home? Remove books from bookcases and pack up those knickknacks. Clean everything off your kitchen counters. Essential items that you use daily can be tucked away in small boxes that you can place in a closet when they're not in use. Think of this process as a head start on the packing you'll eventually have to do anyway. Rearrange Bedroom Closets and Storage Cabinets Buyers love to snoop and yes, they will open closets and cabinet doors. Maybe they're curious or maybe they legitimately want to see how much space is inside. Think of the message it sends if items fall out. When a buyer sees everything organized, it says that you probably take good care of the rest of the house as well. This means alphabetizing spice jars and neatly stacking dishes. It means turning the coffee cup handles so they're all facing the same way. Hang shirts together, buttoned and facing the same direction. Line up shoes. Consider Renting a Storage Unit Almost every home shows better with less furniture. Remove pieces that block or hamper paths and walkways and put them in storage, along with that garish sofa that only you like. Your bookcases are now empty, so store them, too. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture to showcase the room's purpose with plenty of room for buyers to move around. Remove or Replace Favorite Items If you want to take certain window coverings, built-in appliances, or fixtures with you, now's the time to remove them. If the chandelier in the dining room once belonged to your great-grandmother, take it down. If a buyer never sees it, she won't want it and they'll be no dispute later. When you tell a buyer she can't have an item, she'll covet it, which could blow your deal. Make Minor Repairs In some seller's markets, you can sell a home in lived-in condition without much complaint. But in normal markets or a buyer's market, repairs can make or break your sale. Replace cracked floor or counter tiles and patch any holes in the walls. Fix leaky faucets and doors that don't close properly, as well as kitchen drawers that jam. Consider painting your walls neutral colors, especially if they're currently hot pink or purple. Don't give buyers any reason to remember your home as "the one with the orange bathroom." Replace burned-out lightbulbs and consider replacing those that have been in service for a while as well. Avoid the potential of having them give up the ghost and blink out at an inopportune time, like when you flip the light switch to show someone the room. It's not the end of the world, but it's all about psychology. And you do want light, as much of it as possible. Throw open the curtains and blinds and turn those lightbulbs on. Houses show better when each room is bright. Which leads us to the next issue...you don't want all that illumination to reveal dust bunnies congregating in the corner or under the sofa. Make the House Sparkle! Cleaning your home should go beyond the usual weekly or day-to-day cleaning jobs, even if you have to hire someone to do it. It could take all day to complete this job, so you might want to pay for assistance. Wash the windows inside and out. Rent a pressure washer and spray down sidewalks and the exterior. Recaulk tubs, showers, and sinks. Polish chrome faucets and mirrors. Yes, you're still living there so it's not going to be absolutely spotless 24/7. But make it a habit to clean up after yourself daily—maybe more than you would normally bother with until the weekend. Vacuum daily instead of weekly. Wax floors, dust furniture, and clean ceiling fan blades and light fixtures. Bleach dingy grout and replace any worn rugs. Pay special attention to the bathrooms and the kitchen. Hang up fresh towels. Bathroom towels look great when they're fastened with ribbon and bows. Make it a habit to keep the toilet lid closed when it's not in use. Kitchens are a big selling point for many buyers, so you'll want yours to be as spotless and uncluttered as possible. Don't forget those snoopers—make sure the interior of the fridge is clean and orderly, too. Above all, clean and air out any musty areas. Odors are a no-no. This might also include not cooking anything particularly odorous the evening before you know the house is going to be shown...or, if you really want to be on the safe side, until you have a purchase offer in hand. Skip the cabbage for a while. And if you have pets, keep on top of those litter boxes and other potentially smelly areas. Of course, odors work both ways. Consider making a small investment in some pleasantly scented candles. Scrutinize Curb Appeal A potential sale is toast if a buyer won't even get out of his agent's car because the exterior of your home turns him off. So open your front door and step outside. Look up at your abode. Does it make you want to enter? Does the house welcome you? If not, start with the front door. Make it urge people to turn the handle and come inside. Paint it and consider adding a seasonal wreath or other minor decoration. Just make sure it's not anything too overpowering. You don't want to intimidate your buyers and create the psychological equivalent of warning them off. The decoration should not proclaim, "Welcome to the Smith home!" unless the buyers happen to be named Smith. Remember, you want them to envision the home as their own. Clear the sidewalks and mow the lawn. Paint faded window trim and plant some yellow flowers if the season allows. Yellow evokes a buying emotion and marigolds are inexpensive. And it goes without saying that you'll want to shovel and salt down those walkways in winter. Trim your bushes. Make sure visitors can clearly read your house number. The Final Step Now go back inside and do the same thing. Linger in the doorway of each room and imagine how your house will look to a buyer. Examine how the furniture is arranged and move pieces around until you achieve visual appeal. Make sure window coverings hang

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – WHO WRITES THE SALE CONTRACT WHEN YOU ARE UNREPRESENTED?

The seller's agent is typically the person who draws up a purchase agreement, but what happens if the home is for sale by owner (FSBO) and the seller isn't represented by a real estate agent at all? A FSBO situation can occur in a seller's market or when homeowners want to maximize their profits by not having to pay a commission to a real estate agent. So if the sellers accept your offer and the sale is set to move forward, who will be tasked with drawing up the purchase agreement, or the document outlining the terms and conditions? Experts say to turn to your own representation. "Typically, if the seller does not have a Realtor®, the buyer's agent ends up doing most of the work," explains Ryan Hardy, a broker with Gold Coast Realty in Chicago. Who drafts the purchase agreement? If you're going to buy a home, a purchase agreement is one of the first steps to securing the deal. "In laymen's terms, a purchase agreement is simply the written agreement between the buyer and seller outlining the terms of the sale," Hardy explains. Most purchase agreements will include details such as the sales price, closing date, and any contingencies the sale hinges on—such as the home passing inspection or appraising at a value that your lender agrees is high enough to warrant a mortgage. These can be drawn up by a real estate attorney or agent. If the seller doesn't have an agent lined up to draft the purchase agreement, your own real estate agent can take care of the transaction paperwork as a transactional agent, also known as a dual agent, says Joanne Bernardini, a Realtor® with Coldwell Banker-Casa Bella Realtors in Linwood, NJ. Keep in mind that certain states do not allow dual agency, and some see it as an ethical dilemma. If you do decide to use a transactional agent, think of them as "one person who neither represents the seller nor the buyer but facilitates the documents necessary for the sale," says Joyce Mitchell of Mitchell & Associates, in Bigfork, MT. Who pays the fees to draw up a purchase agreement? The cost of drawing up a purchase agreement is typically included in the seller's commission fee. However, if a seller doesn't have a real estate agent and your agent is doing the work, that doesn't mean you'll need to foot the bill. You just need to be prepared to ask the seller to pay that portion of the commission, says Kaera Mims, a Realtor with Liz Moore and Associates in Newport News, VA. "If you have a real estate agent in mind, I would discuss the scenario with them, and they can contact the seller on your behalf to schedule the showing and ask about compensation," Mims says. "I find that some sellers will pay the agent's commission if I bring them a ready and willing buyer. We just have to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

UNIFORM RESIDENTIAL LANDLORD AND TENANT ACT OF 1972

The Truth about the Uniform Residential Landlord and Tenant Act (URLTA) of 1972 Written on November 4, 2013 byLucas Hall, updated on December 14, 2015 The Uniform Residential Landlord Tenant Act (URLTA) was created to clarify, standardize, and modernize the rights and responsibilities of tenants and landlords in the United States. Though it’s a step in the right direction, the truth is that in 40 years, there are still plenty of states that have not adopted this Act. Despite the best efforts of theNational Conference of Commissioners on Uniform State Laws (NCCUSL), I believe that the US will never have uniform Landlord-Tenant laws unless Congress makes it mandatory. Even then, Texas might disagree :) Background The Act was assembled by theNCCUSL, and ratified the in 1972, with small changes made in 1974. URLTA consists of six topical articles and several subsections. The URLTA is the closest document that we have to “Federal” Landlord Tenant Laws. However, state participation is encouraged but not mandatory, and therefore not all states have adopted this legislation. Most states have adopted parts,if not all, of the URLTA. As of 2008, significant influence of this act can be found in the state statutes of Alabama, Alaska, Arizona, Connecticut, Florida, Hawaii, Iowa, Kansas, Kentucky, Michigan, Mississippi, Montana, Nebraska, New Mexico, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Virginia, and Washington. Landlord Duties, URLTA Section 2.104(a): Source: NCSL State Adoptions of URLTA Landlord Duties Comply with the requirements of applicable building and housing codes materially affecting health and safety; Make all repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition; Keep all common areas of the premises in a clean and safe condition; Maintain in good and safe working order and condition all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances, including elevators, supplied or required to be supplied by him; Provide and maintain appropriate receptacles and conveniences for the removal of ashes, garbage, rubbish, and other waste incidental to the occupancy of the dwelling unit and arrange for their removal; and Supply running water and reasonable amounts of hot water at all times and reasonable heat [between [October 1] and [May 1]] except where the building that includes the dwelling unit is not required by law to be equipped for that purpose, or the dwelling unit is so constructed that heat or hot water is generated by an installation within the exclusive control of the tenant and supplied by a direct public utility connection. Tenant Duties, URLTA Section 3.104: Source: NCSL State Chart of Adoptions of URLTA Tenant Duties Comply with all obligations primarily imposed upon tenants by applicable provisions of building and housing codes materially affecting health and safety; Keep that part of the premises that he occupies and uses as clean and safe as the condition of the premises permit; Dispose from his dwelling unit all ashes, garbage, rubbish, and other waste in a clean and safe manner; Keep all plumbing fixtures in the dwelling unit or used by the tenant as clean as their condition permits; Use in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances including elevators in the premises; Not deliberately or negligently destroy, deface, damage, impair, or remove any part of the premises or knowingly permit any person to do so; and Conduct himself and require other persons on the premises with his consent to conduct themselves in a manner that will not disturb his neighbors’ peaceful enjoyment of the premises. URLTA Outline and Topics Each article discusses an important aspect of the landlord and tenant relationship. Article I: General Provisions and Definitions Part I: Short Title, Construction, Application And Subject Matter Of The Act Part II: Scope And Jurisdiction Part III: General Definitions And Principles Of Interpretation: Notice Part IV: General Provisions Article II: Landlord Obligations Article III: Tenant Obligations Article IV: Remedies Part I: Tenant Remedies Part II: Landlord Remedies Part III: Periodic Tenancy; Holdover; Abuse Of Access Article V: Retaliatory Conduct Article VI: Effective Date And Repealer Revisions The National Conference of Commissioners is currently revising the URLTA in order to account for changes to the industry over the last 40 years. There are 13 articles in thedraft revised URLTA (2013), but a final version has yet to be published. The Uniform Law Commission hopes that with an updated version of the URLTA, more states will voluntarily adopt these regulations – and thereby creating a more uniform landlord-tenant system in the United States. So What? The URLTA is the foundation for many of the Landlord-Tenant laws in the United States. Many states have added more specific clauses into their own legislation – addressing their unique requirements. By understanding the URLTA, theoretically you will have a grasp on the basic landlord-tenants laws in this country. The URLTA will provide you with the framework and background to understand the state or local municipality regulations that govern your rental property. References Documentation Summary: URLTA (1972) Download: Uniform Residential Landlord and Tenant Act (1972) (PDF) Online Version: Uniform Residential Landlord and Tenant Act State Adoptions of Various Provisions(PDF) Comparison of State Adoption of URLTA Written Comparison of of URLTA (1972) and Revised URLTA (201X) (PDF) Comparison Chart of URLTA (1972) and Revised URLTA (201X) (PDF) Draft Revised URLTA (2013)(PDF) Memo regarding changes to Revised URLTA(PDF) The National Conference of Commissioners on Uniform State Laws Summary from the National Center for Healthy Housing

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW TO CLOSE A MORTGAGE LOAN IN 15 DAYS

Lollygagging around a real estate transaction can end up killing the deal. Sometimes when you find that perfect house for the perfect price, you need to strike quickly to get it. If time is of the essence, you need a lender that can close a loan quickly. Much of the responsibility, however, still falls to you. To close a mortgage loan in 15 days, you need to be complete and thorough from the very beginning. Just understand that to turn around a loan that quickly everything must go perfectly. Even then, there is no 100 percent guarantee. Application The first step toward a quick mortgage closing is to complete the application completely and accurately. To save time, apply online or in person. If you go to the bank, speak to a mortgage representative and express your desire to close in 15 days. He can’t make promises, but he can give you an estimate on your chances. If you apply online, follow up by phone to make sure your application has been received and is being processed. Again, make sure to emphasize that you need to close in 15 days. Make sure to carefully read all sections of the application and complete the document in its entirety. If the bank has to track you down to ask for information it has already requested, it will delay the process. Supporting Documentation The bank needs documentation from you to approve the loan. Make sure to submit all requested documentation at the time of application. The data required will vary by bank, but expect to give copies of two years of W-2 Forms or 1099 Forms to document your income, along with federal tax returns, one month of pay stubs and three months of bank statements. The bank will use this information to verify that you can afford the loan and that you have enough for the down payment in the case of a purchase. Like an incomplete application, if the bank has to chase you for this information, the process will not move as quickly. Coordination Many moving parts are involved with a mortgage closing. This can include the bank, your lawyer, the title company, the seller, the seller’s lawyer and real estate agents. If you want to close the mortgage within 15 days, keep everyone in the loop. You won’t be able to schedule a closing until you get an approval, but everyone should know that once the bank gives you the go, settlement will happen quickly. If you get approved but can’t put all the pieces together, the quick turnaround won’t mean anything. With sufficient notice, the parties can make arrangements to pre-sign documents or send other representatives if one or more can’t attend closing personally. Other Considerations If you get the bank everything it needs and manage to coordinate with all parties, you’re on the right track, but there are a few odds and ends to consider. First, make sure you have no blemishes on your credit history. You can request a free report from the three major credit bureaus at the government-sponsored website,annualcreditreport.com. If you see items that show a balance even though they’ve been closed or if you find questionable entries, such as judgments or liens, contact the credit agency immediately and prepare an explanation for the bank. Make sure all negotiations with the seller have been completed as even the most insignificant squabble can hold up a closing. Sign all disclosures and the commitment letter upon receipt. Make sure you read the commitment thoroughly and understand everything that is required to close the loan. Finally, set your appointment as soon as possible after you’ve been approved so that a scheduling conflict doesn’t ruin everything you’ve worked

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

BUY HOUSE WITHOUT A REALTOR, USE A LAWYER INSTEAD

Want to save money? People have known for a long time that you don’t have to use a real estate agent to buy a home. The 3% commission that the seller pays to the buyer’s agent? It’s real estate’s dirty little secret. In this internet age, when everyone knows what’s for sale, savvy buyers know how to leverage that 3% to their advantage. Which means they pay less. Crazy, but true: a lawyer is way less expensive than a Realtor. If you go this route you’ll also get – bonus! – superior representation. Here’s how it works. A real estate agent provides two types of services: Real estate brokerage services. These services include tours of homes and opinions of value. Legal services. The sale of a home is a legal transaction. Brokers are allowed to engage in the limited practice of law needed to create a contract, such as drafting an offer. But they aren’t lawyers. Pre-internet, only brokers knew which houses were for sale. But today, with listings available online, everyone knows whats on the market. Throw in the latest robust pricing tools that use Big Data, and many buyers don’t need real estate brokerage services. That is so 20th Century! But they still need legal services. And when those services are provided by a lawyer, instead of a real estate agent, the consumer wins. Because the fact is, buyers benefit from legal services that go beyond writing up a contract (which is pretty much all a real estate agent is allowed to do). For example, only an attorney should help you with: The Preliminary Title Report – An attorney will interpret this report and explain what is shows about title to the property. If there is a problem, an attorney will see that it is resolved to your satisfaction. buy house without realtor is a tough path, but rewarding Insider’s Tip: Don’t rely on the title company‘s review. As an insurance company, its interests overlap with yours, but there are some things important to you that it might not notice. For example, maybe you have to share your driveway with a neighbor. That’s something you want pointed out to you before you buy. Your Closing Documents – Curious to know what you’re being asked to sign? Wondering what it means to you? With an attorney, you’ll get those answers. These documents generally aren’t negotiable, except for the deed. But there’s value in understanding the process. Seattle Tip: The Warranty Deed by which a buyer takes title is drafted by the Closing Agent. If drafted incorrectly – which sometimes happens – it can undermine the legal protections to which a buyer is entitled. An attorney will catch and correct this error. Your Due Diligence – A lawyer brings a useful eye to this process. If there are landlord/tenant issues (like an existing tenant, or a requested seller lease-back) or land use concerns (because you’re planning on changing the property), an attorney can be invaluable. At the end of the day, buying a home is a legal process. It just makes sense that an attorney would be able to help when you buy a house without a Realtor involved. How you can save 3% of the Purchase Price When you find the house and then hire an attorney to help you buy it, you can use the seller-paid commission to get a better price. Here’s how. First, for this to work, you have to be looking to buy a home on the MLS (which is almost always the case). That’s because, for a seller to list on the MLS, she must offer a commission to a buyer’s agent (as well as pay her own listing agent). That commission is – strangely enough – almost always a uniform 3%. If your attorney drafts the offer and you don’t have a buyer’s agent, then there is no “selling agent” and no “selling office commission” to be paid. So an offer at 97% of list price is, to the seller, a full 100%. In other words, an offer of $485k on a $500k house, using a lawyer and without an agent, is a “full list price” offer to the seller. At less than list, the savings are harder to measure, but clearly they remain significant. To put yourself into a position where you can capture these savings (plus get the benefits of an attorney), you need to do some serious work. It’s Not for Everyone – and It’s Not Easy Best for One Buyer: As an initial matter, this process works best when you are the only possible buyer. For a home new on the market, where there is low inventory (like much of the country, including Seattle) it’s tough to compete with other buyers when you’re using a lawyer and not a broker. Tough, but not impossible. Access to the Home: Still on board? Your next challenge is getting inside the home you might want to buy. You can find a possible winning home for sale online, and you may even be able to “tour” it via an ever-more-common “virtual tour.” But who’s kidding who. Before you can buy a house, you have to get inside it. It turns out you do need minimal brokerage services after all (but doggone it, you’re not going to pay 3%!) For tours, you have three options, all of which have their drawbacks: Open Houses The listing agent Other brokers Open houses as a general rule aren’t often enough. The listing agent may or may not be too happy to help. And with any other broker, you should confirm that the the only service you need – and presumably are willing to pay for – is access. You may be able to find a real estate broker who can assist with this sort of “a la carte” or “unbundled” real estate brokerage service. Ask around. Bad Karma? Finally, you will have to step on some toes. Specifically, the toes of the listing agent. Here’s why: The seller has signed a contract with the listing agent. The seller has agreed to pay 6%. If there is a buyer’s agent, then the listing is obligated to share it. But if there is no buyer’s agent, then per the terms of the contract, it belongs to the listing agent. You will of course be buying the house without using an agent. But you are also putting your nose into someone else’s business, and asking them to take a pay cut. Expect at least a tiny of ill will. That’s from the listing broker’s perspective of course. FWIW….. Are you willing to tackle all of these challenges? OK, you’re on your way to significant savings and superior protection – welcome aboard! It’s gonna be a great

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO – AGENTS BEWARE

By Dennis Rodkin, Crain’s Chicago Business, Aug. 28, 2014 Condominiums have been selling quickly and at good prices in Lakeview this year, so Matt Sulkowski recently decided to see what he could get for his two-bedroom unit on Sheffield Avenue. Figuring the place would pretty much sell itself, he decided to go without an agent and listed the property on a couple of for-sale-by-owner websites. “I can get it in front of a number of eyes myself,” Mr. Sulkowski said. “An agent wouldn’t get too many more.” Mr. Sulkowski’s no-agent strategy has been gaining popularity this year. In the second quarter, 42 percent more Chicago-area homes were listed on forsalebyowner.com than during the same period in 2013, according to the site’s managers. By comparison, conventional multiple-listing service listings in the nine-county area during the second quarter were up just under 12 percent from a year before, according to reports from Midwest Real Estate Data LLC. More sellers are going it alone amid a recovering residential market. Some neighborhoods, including Mr. Sulkowski’s, have been experiencing a runaway sales pace, making it appear that merely dangling a property in front of buyers is enough to get it sold. At the same time, price declines after the bust have left many homeowners with less equity, and some sellers may be trying to maximize their proceeds by eliminating some of the commission they have to pay out at closing time. ‘THEY EXPECT IT TO SELL’ Whether they believe they don’t need an agent or can’t afford one, homeowners find that the strategy of marketing a home themselves may “feel like the reasonable path to try,” said Igal Hendel, a Northwestern University economics professor who has written about FSBO sellers. “They expect it to sell,” he said, and if they can maximize their proceeds by paying less in commissions, “that is what they will try first.” Another factor in the increased use of an FSBO site may be consumers’ comfort with the Internet’s growing role in all aspects of the real estate transaction, Mr. Hendel said. Many home sellers “realize that a lot of the tools that used to be exclusive to agents are now available to anybody if they’re willing to spend a little time doing research,” said Eddie Tyner, general manager of forsalebyowner.com. That was the case for Mr. Sulkowski, who works in commercial real estate. Several condos have sold in his and similar buildings recently, so establishing an asking price via comparable sales wasn’t daunting, thanks to sale records widely available online, he said. “It’s easy to see whether you’re overpricing or underpricing it,” he said. STILL UNSOLD Yet Mr. Sulkowski is still waiting for a buyer. He has yet to receive an offer for his condo, which he listed in June for $484,900. He has reduced the price twice, cutting it Aug. 25 to $449,900. Indeed, though FSBO listings are up, the real question is whether the homes sell. Sales through forsalebyowner.com rose 16 percent nationwide in the second quarter from the year earlier, Mr. Tyner said. Nationwide home sales of all types, both using agents and not, were down about 1 percent in the same timeframe, according to the National Association of Realtors, or NAR. Forsalebyowner.com — not to be confused with a competitor, FSBO.com — is a Tribune Publishing Co.-owned venture that is the largest of the Internet sites for sellers without agents. Forsalebyowner.com would not provide its number of listings, only percentage increases. NAR estimates that FSBO sales accounted for 9 percent of U.S. home sales in 2013. The association declined to provide historical figures. Selling without an agent may save sellers money, but it costs them time. The seller has to prepare the listing information, disclosures and photography, host showings and open houses and scrutinize offers when they come in. A real estate lawyer and other professionals can help with some of those tasks, although the seller still has to manage them, in place of a listing agent. FOURTH HOME Maureen and Len Gaudio of Elmhurst sold their first home without an agent, a Chicago condo, way back in 1994. They are now trying to sell their fourth, a house on Church Street in Elmhurst that they have listed on owners.com for $725,000. “It’s commissions,” said Ms. Gaudio, a marketing consultant. “We don’t feel they’re justified. We can do most of the work to sell it.” Sellers in Illinois can pay as much 3 percent to a listing agent and 3 percent to a buyer’s agent, but many agents work for less. If a buyer is using an agent, the Gaudios will still pay the agent a commission. In that situation, they would save about $21,000, assuming the house sells at full price. They could save twice that amount if the buyer is unrepresented. Yet listing a home online isn’t free. Each of the FSBO sites has a menu of prices, depending on the level of exposure and other factors. At forsalebyowner.com, prices range from a basic listing for about $80 to $699 for one that includes placements on the big real estate portals including trulia.com and realtor.com. At that level, “you’re getting as many people seeing it as your agent could get,” Mr. Tyner said. His firm estimates that its site saved users a combined $70 million in commissions on approximately 9,000 sales in 2013. Justin Zintak quickly found out how much exposure FSBO listings get when he listed a Huron Street condo in River North, which he co-owns with his mother, for $1.4 million on forsalebyowner.com. Within 12 hours he received five or six calls from real estate agents warning that he won’t get the property sold without an agent. “I’m pretty sure there’s a convention where they all get the same notes on how to solicit people who are trying the for-sale-by-owner” option, he

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MORE U.S. HOUSEHOLDS ARE RENTING THAN AT ANY POINT IN THE LAST 50 YEARS

More U.S. households are renting than at any point in 50 years BY ANTHONY CILLUFFO, ABIGAIL GEIGER AND RICHARD FRY A decade after the housing bust upended the lives of millions of Americans, more U.S. households are headed by renters than at any point since at least 1965, according to a Pew Research Center analysis of Census Bureau housing data. The total number of households in the United States grew by 7.6 million between 2006 and 2016. But over the same period, the number of households headed by owners remained relatively flat, in part because of the lingering effects of the housing crisis. Meanwhile, the number of households renting their home increased significantly during that span, as did the share, which rose from 31.2% of households in 2006 to 36.6% in 2016. The current renting level exceeds the recent high of 36.2% set in 1986 and 1988 and approaches the rate of 37.0% in 1965. Certain demographic groups ­– such as young adults, nonwhites and the lesser educated – have historically been more likely to rent than others, and rental rates have increased among these groups over the past decade. However, rental rates have also increased among some groups that have traditionally been less likely to rent, including whites and middle-aged adults. Young adults – those younger than 35 – continue to be the most likely of all age groups to rent. In 2016, 65% of households headed by people younger than 35 were renting, up from 57% in 2006. Rental rates have also risen notably among those ages 35 to 44. In 2016, about four-in-ten (41%) households headed by someone in this age range were renting, up from 31% in 2006. Rental rates also went up among households headed by someone ages 45 to 64, rising from 22% of households in 2006 to 28% in 2016. But among the oldest Americans – those 65 or older – the rental rate remained steady at around 20%. Black and Hispanic households continue to be about twice as likely as white households to rent their homes. In 2016, 58% of black household heads and 54% of Hispanic household heads were renting their homes, compared with 28% of whites. But all major racial and ethnic groups were more likely to rent in 2016 than a decade earlier. The movement toward renting has also occurred across all levels of educational attainment. From 2006 to 2016, rental rates increased among households headed by someone with less than a high school degree, as well as among those headed by a college graduate. Even so, college graduates are the least likely group to be renters. In 2016, 29% of college-educated household heads were renters, compared with 38% of household heads with a high school degree only or some college experience and 52% of household heads who did not finish high school. The increase in U.S. renters over the past decade does not necessarily mean that homeownership is undesirable to today’s renters. Indeed, in a 2016 Pew Research Center survey, 72% of renters said they would like to buy a house at some point. About two-thirds of renters in the same survey (65%) said they currently rent as a result of circumstances, compared with 32% who said they rent as a matter of choice. When asked about the specific reasons why they rent, a majority of renters, especially nonwhites, cited financial reasons. TOPICS: EDUCATION, LIFESTYLE, RACE AND ETHNICITY, GENERATIONS AND AGE, HOUSEHOLD AND FAMILY

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO SALES ARE DOWN? REALLY?

FSBO is “down,” but is it really? The 2016 Profile of Home Buyers and Sellers by the National Association of Realtors® (NAR) found that for sale by owner (FSBO) sales are at an all-time low, at only eight percent, versus the all-time high set back in 1981 at 21 percent. Considering it’s easier and less expensive to market a home today versus the pre-web era, how is it possible that FSBO sales have been declining since the advent of the internet? This runs contrary to trends experienced in other vertical markets, such as investing, travel and tax preparation, which have all experienced significant do-it-yourself growth bolstered by web services. How is it possible the real estate market has defied such trends? A deeper look at the data in NAR’s report reveals that while there has been a decline in true FSBO, self-directed real estate has actually increased over the past 15 years — it’s just a matter of semantics that need to be analyzed to see this trend. If a home seller uses any realtor service, even something as minimal as just having an agent upload their listing to the MLS to advertise their home sale, NAR actually includes them in a comprehensive pool of sellers (89 percent) engaged in “agent-assisted” sales. This oversimplification of the “agent-assisted” category blurs the lines and doesn’t accurately represent the volume of sellers moving away from traditional real estate brokerages and their higher commission rates. Another recent survey (conducted by Redfin in August 2016) tells a different story. It found that 25 percent of people who sold a home in the past year did so without the help of a full-service agent, with 15 percent of sellers using a limited service agent and about 10 percent listing without an agent’s help, slightly higher than NAR’s findings of eight percent. Those who would have formerly been inclined to conduct a FSBO transaction have traded up to the better option available today and are paying a nominal fee to advertise their properties on the MLS. So, if you sum up the percentage of FSBO and quasi-FSBO (aka “limited service”), the self-directed segment has actually increased almost 20 percent since the ’80s. This makes sense when you consider the growth of more self-directed behavior in other industries due to the efficiency and options that online services offer. Due to important antitrust legislation surrounding NAR and the MLS, which has brought about the rise of web-based real estate service models, self-directed sellers have more options today than they did in the early ’80s. During the mid-2000s, the Department of Justice ruled that NAR must make the MLS and all of its data accessible to any brokerage service and its customers. Subsequently, self-directed consumers inclined to FSBO-type behavior started flocking to alternative internet-based “minimal” and “limited” service brokerage models and their more attractive selling options. These sellers still self-manage their sale and consider themselves conducting a FSBO-type transaction. Future sellers should carefully consider the experience of the growing share of sellers today using self-directed methods. There is major opportunity for today’s savvy seller to retain much of their profit through tech-enabled innovation in the real estate industry, and it’s important to understand the evolution of FSBO and what has changed. Here are a few considerations for home sellers looking to take control of their home sale. Analyzing savings: The bulk of savings for FSBO-oriented sellers will come from savings on seller’s agent commissions. According to the U.S. Census Bureau, the average home in 2015 was valued at over $350,000. Sellers choosing to handle most of the process on their own — and therefore paying just a buyer’s agent fee to get their home listed on the MLS — have the potential to save up to 2.5 to three percent on commissions. Based on the above value this would amount to $8,750 to $10,500, usually less a transaction fee. Some online brokerages offer a full-service package in which the seller works with a professional agent but pays a lower seller’s agent commission than the traditional model. In that case, the seller will net less overall savings, but this option might be worth it for first-time sellers or those too time-constrained to manage the process on their own. Determining the list price: There are a lot of variables that come into play when determining the list price of a home including local inventory, interest rates, average market price for comparable homes, appraisal value and the sellers’ personal and financial objectives. Many online real estate services will offer valuation tools and allow sellers to research comps to determine the right asking price. Considering sweat equity: Managing a home sale requires a time commitment. Depending on what parts of the process sellers want to take on, they should expect to spend time on the front end determining the list price, preparing the home for showing and hosting open houses and on the back end negotiating the sale and seeing the financial transaction through to completion. Many online real estate services offer solutions to assist with some or all of these steps. Here’s the takeaway. The first FSBO platforms were meant to simply eliminate the middleman — and some home sellers struggled as a result because they didn’t have access to an agent network to market their listings or professional support when needed. Today, the FSBO model has evolved and will continue to do so, further disrupting the industry to the benefit of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW TO TALK TO PARENTS ABOUT SELLING RESIDENCE AND MOVING INTO ASSISTED LIVING

How to Talk to Your Parents About Assisted Living Share: One of the most asked questions regarding senior care involves "the conversation"...or how to talk with your parents about assisted living. Many caregivers dread having this discussion and with good reason. How will mom or dad respond? Are they going to think you are trying to take away their independence? How can you communicate your concerns to them without making them defensive or angry? While the majority of older Americans are attracted to the idea of “aging in place,” the reality is that a full seventy percent of seniors aged 65 and over will need some form of long-term care in their lifetimes, according to the U.S. Department of Health and Human Services. Not only that, but with every year that passes, a senior’s chance of requiring care increases. More likely than not, you, your aging loved one, and the other members of the caregiving team will be faced with some difficult conversations about care in the not-so-distant future. Read on for five important points to keep in mind aimed at helping you work together toward agreeable, positive outcomes for all. So, how do you have this conversation? It’s human nature to avoid talking about things that make us uncomfortable. For many caregivers and their aging loved ones, this means that important topics often go undiscussed. Unfortunately, this can lead to frustrating misunderstandings -- particularly when it comes to seniors and fear of aging. Here are some of our thoughts which may help: Do Laugh - This sounds like an out of context piece of advice, but it is one that is desperately needed during this time. If you don’t laugh, you’ll cry; find humor even in the most bizarre circumstances and let it RELAX you. It’s okay to laugh. The last thing you want to do is approach your parents with pent up emotions, expecting the worst and feeling ready for combat. Instead, lighten up! Follow your loved one's lead and calmly let it guide the conversation. Do Keep Communication Lines Open - One of the best ways to ensure you have the information you need as a caregiving team is to start the conversation early. Some tips for making the topic easier? Initiative the conversation by leading with your own long-term care wishes, or share an article or story about someone faced with a long-term care decision. Doing so can help seniors and caregivers alike feel more comfortable venturing into this tricky territory. The truth is that there is a rampant lack of planning in this country pertaining to long-term care, and experts predict that it may lead to dire consequences. In fact, according to the results of a poll from The Associated Press-NORC Center for Public Affairs Research as reported by PBS, shockingly few American families are having conversations about long-term care. Associated Press Polling Director Jennifer Agiesta explains, “Very few people have arranged to pay for or even to think about their own needs. Most haven’t even taken the basic step of talking to family members about their preferences.” The good news? Once you do start talking, it will only get easier. Not only that, but caregivers and aging loved ones alike will enjoy the peace of mind of knowing they’re on the same page when it comes to plans for long-term care. Don’t Judge - Don’t use the fact that you and your parent(s) may not have gotten along in your youth to force the idea of alternative care upon them. Think about how you would want to be treated if you were in their position (some day you will be!). Leave your judgment at the door and go in with an open mind. Be prepared to accept your loved one's choices. Support them in the decisions they make. Seniors have spent their lives not only attending to their own daily needs, but also managing the daily needs of others. Giving up cooking and handing over the car keys isn’t just about their inability to do these things for themselves, but also about the larger and delicate issue of losing independence. As we age, we don’t lose the desire to do things for ourselves; In fact, this desire can actually grow stronger when it's threatened. Caregivers can support their loved ones’ ongoing independence by seeking out ways to help them adjust to age-related changes without sacrificing their way of life. This can mean anything from teaching them about adaptive devices which can help with daily tasks to exploring resources for older adults, such as meals on wheels and transportation alternatives. Do Have Empathy – The only way you’re going to know exactly how your parents are feeling is if you could crawl into their brain and sense their emotions. The next best way is to actively listen to their fears and concerns, not speaking but focusing on their message; putting your emotions aside. Also, consider that your parents may already be receptive to this change and merely want to use this forum to be heard. We frequently talk about senior fears in terms of loss of independence. But there’s a related fear which often goes unaddressed: loss of control. Because so many seniors have spent their lives being the ones in charge, this perceived role reversal may feel like a threat or loss. Caregivers can avoid prompting this feeling of powerlessness through one surprisingly simple tactic: Inviting them into the conversation. Getting older does not strip away your wants, needs, likes, concerns and fears. In some cases, in fact, it amplifies them. Listening -- truly listening -- to your aging loved one can ensure that his/her wishes are ultimately met while simultaneously engaging and empowering him/her to feel like a participant as opposed to a pawn. In some cases, members of the caregiving team will have different beliefs about the level of care needed. In other cases, caregivers may feel resentment or guilt towards themselves or another person in the caregiving team throughout the decisionmaking process. It’s important to remember that caregiving is not “one size fits all,” and different people have different contributions to make due to factors ranging from geographic distance to personality differences to the demands of juggling work and caregiving. And that’s alright! Regardless of their level of daily involvement, each family member’s opinions should be welcomed and heard during your family discussion on senior care. Come to a point where no one is agreeing and therefore no decisions are being made? Your aging loved ones healthcare team may be able to provide useful insights into the most appropriate type of care for your aging family member. Still can’t come to terms during family disputes over care? Family and elder mediation services can help divided families overcome their differences toward workable outcomes. Don’t Go into the Talk Unprepared – If for all of life’s challenging moments you had access to a script that could magically smooth away the bumps in the road, then moments like these would be predictable and the outcomes pleasant. But you don’t. The closest thing to a script is preparation. Be ready to offer information on: Assisted living communities in your neighborhood and the maintenance-free lifestyle that is offered How the senior care services can make life easier for both of you and meet your loved one's changing needs What assisted living is and is not (it’s not a nursing home!) How you will continue to be involved and support them The peace of mind you both can enjoy No one likes to appear weak -- especially parents who are resisting the transition from caregiver to care recipient. In many cases, this can lead seniors to hide or deny lapses in cognitive or physical abilities. While this is fine to some degree, it must be dealt with if these changes become a threat to your aging loved one’s health and well being. One effective way to broach the subject? Tell your loved one how the situation is impacting you. Many aging parents are much more likely to accept help when they realize that doing so will actually lighten -- as opposed to add to -- your load. Additionally, don’t automatically assume your loved one needs you to take over in a challenging situation. Offering to do it together can help him/her maintain a sense of control. Last, but not least have a professional guide you through the process if at some point it becomes too overwhelming, even with siblings by your side. Remember, you never had a dress-rehearsal for this role, so be easy on yourself and root for the best outcome! Do Discuss Options for Care - In order to make the most informed decisions during your family discussion on senior care, all members of the caregiving team must first understand the full range of options. From nursing homes and assisted living to senior living and in-home care, there are many different choices for seniors in need of varying degrees of care. A great place to start when it comes to amassing the information you need to understand is reading the spectrum of resources available to seniors and caregivers today. Use resources that contain a breadth and depth of information aimed at supporting the important work of caregivers. Do Consider Location - Families today are more geographically dispersed than ever. So while we often think about long-term care in terms of the “when,” the “where” is an equally important consideration. Deciding on a location and choosing the right community in that location can depend on a number of factors, including cost, proximity to medical facilities, proximity to loved ones, and finding a senior living option that best meets an older adult’s unique needs. Again, talking to your aging loved one is a vital part of deciding on a location. Once you have narrowed your options down to a shortlist, be sure to visit prospective care facilities in order to get a better sense of their offerings. Because each community has its own “vibe,” the only way to know for sure whether one feels right for your aging loved one is to visit; talk to administrators and staffs; and learn more about programs, services and activities for

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHY CREATE A FOUNDATION?

OVERVIEW As charitable entities, private foundations have proven to be incredibly successful engines of positive change. In the 20th century, private foundations helped bring about everything from Sesame Street to the white lines on the highways and the 911 emergency system, and their transformative work continues, powering solutions to environmental challenges, poverty, and other persistent problems. Although the funds and activities of private foundations serve the public, these charitable vehicles do offer significant benefits for donors as well, enabling them to: LEAVE A PERSONAL AND FAMILY LEGACY The majority of foundations are set up to exist in perpetuity. This means that control over the foundation and its assets can be passed to countless generations of family, perpetuating your values, continuing your charitable work, and burnishing your name far beyond your lifetime. Today, Carnegie and Rockefeller are better remembered for their philanthropic legacies than for their accomplishments in the steel and oil industries. And because gifts are made from an endowment that generates investment revenue, the total gifts made by the foundation over time can far surpass the initial funding. ENGAGING FAMILY IN PHILANTHROPY A private foundation provides ample opportunities for teaching children and young adults about giving back while making philanthropy a family affair. Here are five of the most important benefits of a private foundation for families: They help instill values and traditions: Involving the next generation in your philanthropy is one way to ensure that your family’s charitable legacy endures. The process of working together as a family can instill philanthropic values that last a lifetime. Moreover, because private foundations are often established to exist in perpetuity, handed down from one generation to the next, your foundation can produce generation upon generation of individuals who are committed to making a difference. Maintain family ties: In our increasingly geographically dispersed society, the family foundation can be the glue that maintains connections as family members move to pursue college and start careers and families across the country or even the globe. Foundation meetings and regular opportunities for collaboration provide a “non-Thanksgiving” reason for the family to get together, talk, and share how they might make a difference. Deepen social consciousness: The rapid pace of modern life offers few opportunities for families to work together on significant issues that are meaningful to them. Competing priorities—work, kids’ activities, social obligations, exercise, entertainment and travel—make it difficult for families to find time to talk about things that matter, let alone take action on those issues. For many families, the private foundation becomes the “hearth” around which multiple generations gather to discuss problems they would like to see resolved. In the process, family members get to know each other on a whole new level—moving conversations beyond “what did you do today?” to discussing issues truly important to the family. Increase personal fulfillment: Giving can make us happier. In a classic exercise, psychologist and researcher Martin Seligman asked his students to engage in one pleasurable activity and one philanthropic activity and then write about both. According to the students’ accounts, the perceived aftereffects of the fun activity (watching a film, eating ice cream) paled in comparison to the altruistic venture (volunteering in a soup kitchen). Why was this? The research indicated that the process of giving took the students outside themselves. The total engagement and loss of self-consciousness they experienced when helping others had a stronger and more lasting impact than the short-lived stimulation of the “fun” activity. Develop “real-world” skills: Involving the younger generation in the foundation can build practical competencies such as leadership, teamwork, investment management, negotiation, and social awareness. While the family foundation can provide young adults with significant opportunities for career development, even school-age children can benefit from the opportunity to apply their developing skills. So what is the right age to start exposing your children to philanthropy? Some clients feel it’s a good idea to start as early as possible, opining that life’s lessons are taught early across the dinner table. That way, by the time children are old enough to join the foundation, philanthropy has already been an integral part of their lives. Other clients feel it’s better to wait because a heavy-handed approach can backfire and lead to resentment or rebellion. They believe that delaying until a young person is ready to take on the responsibility of foundation involvement fosters a genuine desire that comes from a place of maturity. In our view, there is no right choice—each family must make its own decision. Whichever path you choose, engaging the next generation should be an ongoing process that is constantly reinforced, not a one-time event. For more information, read “How to Engage Your Children” To see how our clients involve the next generation in their foundations, see the results of our client survey Giving through a private foundation offers tremendous advantages over giving as an individual. Not only can you magnify your philanthropic impact, establish your personal legacy, and help bring your family together, but they offer these financial benefits as well: Tax Savings for You and Your Estate Giving to a private foundation may make it possible for you to: Reduce your income tax for each year in which you make a contribution Avoid capital gains taxes depending on the characteristics of property contributed Reduce or eliminate potential estate taxes Grow your charitable funds in a tax-advantaged environment, and pass control of them to future generations to continue your philanthropy. Income Tax Savings One of the more immediate tax benefits is that a donor will receive an income tax deduction for any amount he or she contributes to a private foundation up to 30% of the donor’s adjusted gross income (AGI). Although you get the tax deduction up front, you can make your charitable deductions over time, enabling you to give thoughtfully. Capital Gains Tax Savings In addition to a deduction for income taxes on gifts to a private foundation, donors may also be able to avoid paying capital gains taxes by donating highly appreciated assets to a private foundation. For example, if a donor were to give appreciated stock to a foundation, he or she would be entitled to receive an income tax deduction for the full, fair-market value of the stock. When the foundation decides to sell the stock in the future, it will pay only the nominal excise tax of 1% or 2% on the net capital gains. Estate Tax Savings When assets are contributed to a private foundation, they are excluded from the donor’s estate and, as a result, are not subject to either federal or state estate taxes. For high-net-worth individuals who have a strong charitable interest, private foundations offer an opportunity to avoid paying estate taxes while simultaneously creating a lasting philanthropic legacy. Tax-Advantaged Growth Because assets you contribute to a private foundation will be able to grow in a tax-advantaged environment, over the years, the foundation’s value will likely exceed the total amount of your contributions—despite making regular charitable grants. The result will be a significant charitable legacy that your heirs may continue to control and pass down to future generations in perpetuity. TAX BENEFITS OF CREATING A PRIVATE FOUNDATION - FOR DONORS In addition to the many philanthropic and charitable reasons a donor might have for establishing and funding a private foundation, there are also short-term and long-term tax benefits to consider. Pay Expenses and Hire Staff Private foundations have latitude denied to other types of charitable vehicles. For example, they can pay charitable expenses and hire staff—even family members. PAY EXPENSES When you have a private foundation, all legitimate and reasonable expenses incurred in carrying out your philanthropy count toward your foundation’s minimum distribution requirement (the IRS requires that private foundations distribute at least 5% of average investment assets annually). Travel expenses for site visits, board meetings, conferences, office supplies, and even our fees at Foundation Source qualify. HIRE STAFF Federal tax law permits foundations to pay “reasonable compensation” to qualified staff—even if the foundation is staffed by your family. Foundation Source’s optional Compensational Benchmarking Program is available to clients who want to ensure that compliance with IRS

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A LIVING TRUST?

What is a 'Living Trust' A living trust is a type of trust created during a person's lifetime. It's designed to allow for the easy transfer of the trust creator or settlor's assets, while bypassing the often complex and expensive legal process of probate. Living trust agreements designate a trustee who holds legal possession of assets and property that flow into the trust. BREAKING DOWN 'Living Trust' Living trusts are managed by a trustee who typically has a fiduciary duty to manage the trust prudently in the best interests of the trust's beneficiary or beneficiaries designated by the trust settlor, also called a grantor. Upon death of the settlor, these assets flow to the beneficiaries according to the grantor's wishes as outlined in the trust agreement. Unlike a will, however, a living trust is in effect while the settlor is alive and the trust does not have to clear the courts to reach its intended beneficiaries when the settlor dies or becomes incapacitated. Types of Living Trusts Living trusts can be irrevocable or revocable. With a living revocable trust, the trust settlor can designate himself or herself as the trustee and take control of assets within the trust. However, this stipulation means the assets in the trust remain a part of the trust settlor's estate, meaning the individual may still be liable for estate taxes should the estate be valued beyond the estate tax exemption at the time of death. The trust settlor also has the power to change and amend trust rules at any time. This means the trust settlor is free to change beneficiaries or undo the trust all together. With an irrevocable living trust, the settlor relinquishes certain rights to control over the trust. The trustee effectively becomes legal owner, but the individual would also reduce his or her taxable estate. Once the trust agreement for an irrevocable living trust is made, the named beneficiaries are set and the settlor can do little to amend that agreement. A living trust itself can be named the beneficiary of certain assets which would otherwise flow directly to the named beneficiary regardless of what is stated in a will. These include employer-sponsored retirement accounts such as 401(K)s, individual retirement accounts (IRAs), life insurance policies and certain bank accounts such as Payable on Death (POD) accounts. Living trusts can include accounts held in trust, which are created during the settlor's lifetime and are not established upon death as designated in a last will and testament.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS PROBATE?

What is a 'Probate' A probate is a legal process in which a will is reviewed to determine whether it is valid and authentic. Probate also refers to the general administering of a deceased person's will or the estate of a deceased person without a will. The court appoints either an executor named in the will (or an administrator if there is no will) to administer the process of collecting the assets of the deceased person, paying any liabilities remaining on the person's estate, and finally distributing the assets of the estate to beneficiaries named in the will or determined as such by the executor. BREAKING DOWN 'Probate' A probate is the first step taken in administering the estate of a deceased person and distributing assets to the beneficiaries. When a property owner dies, his assets are divided among the beneficiaries listed in his will. In some case, the testator or deceased does not leave a will which should contain instructions on how his or her assets should be distributed after death. Whether there is a will for guidance or not, the assets of a decedent's estate may be required to go through probate. Probate with a Will When a testator dies, the custodian of the will must take the will to the probate court or to the executor named in the will within 30 days of the death of the testator. The probate process is a court-supervised procedure in which the authenticity of the will left behind is proven to be valid and accepted as the true last testament of the deceased. The court officially appoints the executor named in the will, which, in turn, gives the executor the legal power to act on behalf of the deceased. The legal personal representative or executor approved by the court is responsible for locating and overseeing all the assets of the deceased. The executor has to estimate the value of the estate by using either the date of death value or the alternate valuation date, as specified in the Internal Revenue Code (IRC). Most assets that are subject to probate administration come under the supervision of the probate court in the place where the decedent lived at death. The exception is real estate. You must probate real estate in the county in which it is located. The executor also has to pay off any taxes and debt owed by the deceased from the estate. Creditors usually have a limited amount of time from the date they were notified of the testator’s death to make any claims against the estate for money owed to them. Claims that are rejected by the executor can be taken to court where a probate judge will have the final say on whether or not the claim is legal. The executor is also responsible for filing the final personal income tax returns on behalf of the deceased. Any estate taxes that are pending will come due within nine months of the date of death. After the inventory of the estate has been taken, the value of assets calculated, and taxes and debt paid off, the executor will then seek authorization from the court to distribute whatever is left of the estate to the beneficiaries. Probate without a Will When a person dies without a will, he is said to have died intestate. An intestate estate is also one where the will presented to the court was deemed to be invalid. The probate process for an intestate estate includes distributing the decedent’s assets according to state laws. The probate courts begin the process by appointing an administrator to oversee the estate of the deceased. The administrator functions as an executor, receiving all legal claims against the estate and paying off the outstanding debts, such as unpaid bills. The administrator is tasked with locating the legal heirs of the deceased, including surviving spouses, children, and parents. The probate court will assess what assets need to be distributed among the legal heirs and how to distribute them. The probate laws in most states divide property among the surviving spouse and children of the deceased. For example, a resident of Arizona, New Mexico, California, Texas, Idaho, Nevada, and Washington who dies without a valid will have his estate divided according to community property laws in the state. Community property laws recognize both spouses as joint property owners. In effect, the distribution hierarchy starts with the surviving spouse. If unmarried or widowed at the time of death, assets will be divided among any surviving children, before any other relatives are considered. If no next of kin can be located, the assets in the estate will become the property of the state. Close friends of the deceased will not normally be added to the list of beneficiaries under a state’s probate laws for intestate estates. However, If the deceased had a joint account with right of survivorship or owned property jointly with another, the joint asset will automatically be owned by the surviving partner. Is probate always required? It is important to know whether a probate is required following the death of an individual. The probate process can take a long time to finalize. The more complex or contested the estate is, the more time it will take to settle and distribute the assets. The longer the duration, the higher the cost. Probating an estate without a will is typically costlier than probating one with a valid will, however the time and cost required of each are still high. Also, since the proceedings of a probate court are publicly recorded, avoiding probate would ensure that all settlements are done privately. Different states have different laws concerning probate and whether probate is required after the death of a testator. Probate is not required if the value of the decedent’s estate falls below a certain amount; an amount that varies from state to state. For example, probate laws in Texas hold that if the value of the estate is less than $50,000 then probate may be skipped. If an estate is small enough to bypass the probate process, then the estate’s asset may be claimed using an affidavit signed under oath by a beneficiary. Some assets can bypass probate, meaning that probate is not required for the transfer of these assets to beneficiaries. Pension plans, life insurance proceeds, 401k plans, health or medical savings accounts, and individual retirement accounts (IRA) that have designated beneficiaries will not need to be probated. Likewise, assets jointly owned with a right of survivorship and property held in a trust are likely to bypass the probate process. Because of the costs of court involvement in the probate process and the potential for involvement of lawyers who collect fees from the estate of the deceased, many people try to minimize costs associated with the probate process. There are tremendous legal and tax complexities in the probate process, so it is advisable to have a will and speak with a lawyer and financial professional in order to ensure that your loved ones are not left with the complicated and often messy task of distributing the assets of your estate upon your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW TO HANDLE TENANTS ABANDONED PROPERTY IN KANSAS

Here are some answers to common questions about handling a tenant’s abandoned property in Kansas. If a tenant leaves property behind, can I dispose of it as I see fit or are there rules I must follow? What exactly should the notice say? What are the rules about storing a tenant’s abandoned property? I had to pay to store the tenant’s property. Will I be reimbursed for that? If I legally sell the tenant’s property, do I get to keep the proceeds? If a tenant owes me money, can I take and sell the tenant’s property to cover the amount due? When should I get a lawyer’s help? Learn More. If a tenant leaves property behind, can I dispose of it as I see fit or are there rules I must follow? In Kansas, you may not sell, give away, or throw out abandoned belongings until at least 30 days from the date you reclaim possession of your rental property. You must also provide two kinds of notice stating that you will be disposing of the abandoned property: At least 15 days before disposing of the property, you must publish a notice in a local newspaper with general circulation. Within seven days of the newspaper publication, you must send a copy of the published notice to the tenant at the tenant’s last known address. (See Kansas Statutes § 58-2565(d).) Be certain the lease agreement is legally complete before you start the clock on the waiting period and give notice. If you need information on the right steps to take to legally end a tenancy, see Evicting a Tenant or Ending a Lease on Nolo.com, read Kansas’s landlord statutes (see below), or consult a qualified lawyer. What exactly should the notice say? Featured Landlord and Tenant Law Law Firms In Independence, MO CHANGE LOCATION Law Office of Brian D. Webb, LLCLaw Office of Brian D. Webb, LLC 4.2/5.0 100% 816-760-2112 CONTACT The Patel Law Firm, LLCThe Patel Law Firm, LLC n/a 816-892-0201 CONTACT VIEW ALL › Kansas law requires the published notice to include: the tenant’s name a brief description of the abandoned property, and the approximate date on which you plan to sell or otherwise dispose of the property. The published notice alerts the tenant of the pending disposal, but it also serves as a notice to others who may have an interest in the abandoned property. Note that you are not required to turn over property to anyone other than the tenant or a secured creditor who has a legal interest in a particular item -- such as an expensive piece of furniture purchased under a rent-to-own agreement. (See Kansas Statutes § 58-2565(d).) What are the rules about storing a tenant’s abandoned property? You should store the property in a safe place and take reasonably good care of it. That said, you probably won’t be liable for damage to the property unless you damage it on purpose or handle it negligently -- for example, by leaving a good sofa out in the rain. To avoid problems, be careful when moving and storing the tenant’s belongings until the tenant reclaims them or you dispose of them. I had to pay to store the tenant’s property. Will I be reimbursed for that? The tenant may reclaim the property during the 30-day period or at any time before you get rid of it -- but only if they pay you for the costs of storing the property, preparing the property for sale, and any other outstanding debts, including back rent. (See Kansas Statutes § 58-2565(d).) If I legally sell the tenant’s property, do I get to keep the proceeds? Yes. You must first use the proceeds of the sale to cover: RELATED ADS the costs of storing and selling the property, and any amount the tenant still owes you. If there’s money left over after that, you may keep it. (See Kansas Statutes § 58-2565(e).) If a tenant owes me money, can I take and sell the tenant’s property to cover the amount due? As discussed just above, you may sell a tenant’s abandoned property after the legal notice period expires and you may keep the proceeds of the sale. If the tenant’s property has not been abandoned, Kansas law forbids you from seizing it to cover back rent or other debts a tenant owes you. (See Kansas Statutes § 58-2567.) When should I get a lawyer’s help? If you think the abandoned property is very valuable or if you have any reason to believe the tenant may cause problems later, talk to a lawyer before you do anything other than carefully store the tenant’s possessions. It’s particularly important to get a lawyer’s advice if you have any questions about whether a tenancy has been properly terminated or whether a tenant’s property is truly abandoned. A good lawyer can help you protect yourself from claims that you have stolen or illegally destroyed a tenant’s property. You can search for an experienced landlord-tenant attorney in Kansas using Nolo’s Lawyer Directory. Learn more To read Kansas’s landlord laws, see Chapter 58, Article 25 of the Kansas

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EVERYTHING YOU NEED TO KNOW ABOUT JOHNSON COUNTY KANSAS EVICTION PROCEEDURE

EVICTION PROCESS STEPS IN THE EVICTION PROCESS In All cases an attorney should be consulted for additional information. 1. NOTICE TO VACATE – Written three (3) day notice to vacate, given to the tenant from the landlord notifying the tenant to leave the premises. Notice must be given at least three days prior to initiation of the lawsuit for rent and possession. KSA (Kansas Statues Annotated) 61-3803 and 58-2540 2. FORCIBLE DETAINER – This is an official court document consisting of a Summons and Petition. The petition outlines the particulars or facts of the action filed by the landlord (plaintiff) against the tenant (defendant) and will list what the plaintiff is asking the court to do (judgment). This document is filed with the Clerk of the District Court. The Clerk of the District Court will assign a case number and court date. KSA 61-3804 and 61-3805 3. Trial – The judgment will depend upon what was listed in the Petition. Usually this will be for any back rent (money) and possession of the specific premises. The defendant has seven (7) days after judgment is entered to file an appeal. KSA 61-3902. In order to stay the proceedings, a supersedeas bond must be posted with the appeal. KSA 61- 3905. 4. Writ of Restitution – This is an official court document that directs and orders the Sheriff’s Office to immediately remove the occupants of the specific premises, inventory the property located therein and turn possession of the property to the Plaintiff*. Entry may be by whatever means necessary to affect the court order including the use of a locksmith. Cost for entry will be paid by the plaintiff. All property on the premises will be inventory by court order. The Sheriff’s Office will also video tape the property. Note: Johnson County District Court does not use the state form. This form is unique to Johnson County. Copies of this form can be obtained from the courts.jocogov.org website. a. The Sheriff’s Office has fourteen (14) calendar days from the date the Writ of Restitution is received to complete the eviction. b. Prior to the Sheriff executing the Writ of Restitution a notice is generally delivered to the defendant or posted to the premises stating that the Sheriff’s Office has a court order to evict the defendant. The notice states a specific date that the Sheriff’s Office will affect the Court Order. This is a courtesy only as a notice is not required by law. This notice is given to allow the defendant one last chance to move on their own. c. The Eviction or Writ of Restitution can only be canceled by the Courts, the plaintiff or the plaintiff’s attorney. The defendant cannot cancel the action. THE PLAINTIFF LANDLORD MUST THEN STORE THE TENANTS ITEMS In Kansas, you may not sell, give away, or throw out abandoned belongings until at least 30 days from the date you reclaim possession of your rental property. You must also provide two kinds of notice stating that you will be disposing of the abandoned property: At least 15 days before disposing of the property, you must publish a notice in a local newspaper with general circulation. Within seven days of the newspaper publication, you must send a copy of the published notice to the tenant at the tenant’s last known address. Eviction Laws are in Kansas Statues Annotated Chapter 61 Article 38. Landlord and Tenant Laws are in Kansas Statues Annotated Chapter 58 Article

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TOP 10 REASONS TO HAVE YOUR PROPERTY SURVEYED

So, you think you know everything there is to know about the legal description of your property. If you had to, you could dig up that old plat and calculate precisely where your property begins and ends. And you know exactly who has a right to come onto your property and why. If that's true, you're one step ahead of most property owners. Most people seek out the expertise of a professional surveyor to settle common property description issues before they become problems. And in addition to a professional survey, many people seek other specific certifications such as an environmental certification, a zoning opinion letter, or a flood plain classification from the U.S. Department of Housing and Urban Development. Following are some common reasons property owners hire a surveyor. 1. Boundary Lines One of the most common reasons a landowner seeks the assistance of a surveyor, the location of boundary lines and other lines of occupancy or possession is a critical piece of information to have before you build a fence, add a sun-room or pave your driveway. All too often the survey shows that you and your neighbors were operating under the wrong assumption about the placement of the boundary line between your properties. Before you have that fence erected, you want to make sure it will be built on your property, not your neighbor's. The boundary line certification will also tell you whether the legal description of your property is accurate. 2. Gores, Overlaps, and Gaps Part of the boundary line certification, most surveys include a statement that unless the surveys says otherwise, there are no discrepancies between the boundary lines of your property and the adjoining property. This is especially pertinent if your property is continuous with alleys, roads, highways, or streets. 3. Rights-of-Way, Easements, And Abandoned Roads A survey will show all the conditions imposed by law that are reflected in your property's title report and other agreements. If your property blocks your neighbor's access to the road, for example, there may be an old agreement (called an "easement") that gives your neighbor the right to walk across your yard to the street. 4. Ponds, Rivers, Creeks, Streams, Wells, and Lakes The typical survey reports visible or surface waters only. Underground waters and wetlands are topics that are better covered by other professional inspections. 5. Joint Driveways, Party Walls, Rights-of-Support, Encroachments, Overhangs, or Projections Unbeknownst to you or your next-door neighbor, you may have an obligation by law to support your neighbor's driveway by maintaining your own. 6. Existing Improvements The surveyor will usually certify that the buildings and other improvements, alterations, and repairs to your property that exist at the time of the survey are not in violation of laws or other restrictions such as those regarding height, bulk, dimension, frontage, building lines, set-backs, and parking. Of course, the surveyor will also tell you if your latest improvement is in violation of a local ordinance or other law, which will put you on notice that a change is in order. 7. Water, Electric, Gas, Telephone and Telegraph Pipes, Drains, Wires, Cables, Vaults, Manhole Covers, Catchbasins, Lines, and Poles Poles and above-ground wires are obvious, but the surveyor can usually report on the existence of underground cables and drains, as well, if the information is provided to him or her by your utility companies and municipality. Such information is important for two reasons. A utility company may have the right to use a portion of your property for upkeep of utility lines, and may have a say in how tall you let your trees grow, for instance. Also, knowing the exact location of underground utilities is critical before any excavation or construction begins. 8. Cemeteries It is unlikely that unbeknownst to you there is an old family burial ground in your back yard. The survey will show the exact location of any old cemeteries on your plat. 9. Access, Ingress and Egress Your survey should state, at a minimum, whether there is physical vehicular ingress and egress to an open public street. It may also specify the adequacy of access for a particular purpose, such as delivery trucks, emergency vehicles such as fire trucks, and driveways for tenants. 10. Zoning Classification You probably know whether your property is zoned for residential or light industrial use. But you may be surprised to discover that your zoning classification puts specific restrictions on how you use your property. This part of the survey simply reports your zoning jurisdiction and classification. Once you have your completed and certified survey, you may want to consult an attorney about whether you are using your property in conformance with zoning ordinances or for other advice about the legal ramifications of your property survey. Help Me Find a Do-It-Yourself Solution Real Estate Forms Landlord Tenant Forms Popular Directory Searches Foreclosure Lawyers Landlord-Tenant Lawyers Housing & Construction Defect Attorneys Neighbors Neighbor Disputes Neighbors and Trees Property

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CONSTRUCTIVE EVICTION

Simply stated, "constructive eviction" is a landlord’s act or failure to act that substantially interferes with or permanently deprives a tenant from using its leased premises. Constructive eviction relieves tenants from their obligation to pay rent, although in most jurisdictions they also must abandon the premises within a reasonable period of time. Varying Interpretations The specific acts or omissions that constitute constructive eviction are not always easy to identify and recent cases highlight the courts’ varying interpretations of the doctrine. In the 1998 case Nicholson Air Services v. Board of County Commissioners of Allegany County, the Maryland Court of Special Appeals listed several acts or omissions that might constitute constructive eviction, including the failure to furnish heat, elevator service, electricity, and sanitary restrooms, if done with the intent to deprive the tenant of its use of the leased premises. In this case, however, no acts of this nature were alleged. Instead, the tenant argued that a landlord’s notice to vacate constituted constructive eviction. The court disagreed, finding that merely sending the tenant a notice to quit — even though it also threatened criminal prosecution for trespass — did not constitute constructive eviction. In a 1997 New York case, West Broadway Glass Company v. I.T.M. Bar Inc., a landlord leased commercial property knowing that it was unusable due to severe water and sewer problems. Assured that the landlord would fix the problems, the tenant did not abandon the premises. The Appellate Division of the New York Supreme Court found that because the tenant did not leave, there was no constructive eviction (although it did hold that the landlord breached the lease). However, in a 1998 case, Johnson v. Cabrera, another Appellate Division of the New York Supreme Court held that a landlord’s failure to fix frozen pipes, which left the tenant without heat or water for two winter months, constituted a constructive eviction that suspended the tenant’s obligation to pay rent. A landlord’s right to relocate a tenant may not shield it from a constructive eviction claim. For example, in the 1998 Louisiana case of Kite v. Gus Kaplan, Inc., the landlord moved a tenant’s fine-jewelry department, located in a central, high-traffic area that was outfitted especially for the department, including custom-made jewelry display cases, to another less desirable space in the store. In reversing the lower court, the court held that the landlord’s forced relocation of the tenant’s operations "for all practical purposes, unlawfully evicted [the tenant] from the lease." However, loss of business will not necessarily sway a court. In the 1997 case, St. Louis North Joint Venture v. P&L Enterprises Inc., the U.S. Court of Appeals for the 7th Circuit found that no "rational trier of fact" could conclude that the sporadic closing of one of five mall entrances or the six-month closing of one mall parking lot near the tenant’s store rendered the leased premises useless. The Right to Renovate Renovations often give rise to constructive eviction claims. As noted in St. Louis North, minor inconvenience to a tenant will not support a claim for constructive eviction. In fact, even more extensive and intrusive renovations generally will not support such a claim. In Stinson, Lyons, Gerlin & Bustamante, P.A. v. Brickell Building 1 Holding Company Inc., the U.S. Court of Appeals for the 11th Circuit highlighted the inherent conflict between a tenant’s "right to quiet enjoyment" and a landlord’s right to renovate its building and maximize its economic returns. When the tenant and landlord originally negotiated the lease, the building provided first-class amenities. Eighteen years later, however, the building had deteriorated and lacked amenities that newer first-class buildings offered. After occupancy fell to 20 percent, the landlord decided to undertake extensive renovations, many of which could have had a significant impact on the tenant: fire sprinkler installation, asbestos removal, curtain wall replacement, air-conditioning cooling tower and chiller replacement, and new duct installation. To minimize disruption to the tenant, the landlord agreed to forgo some of the work on the tenant’s floor and arranged to have the most disruptive work performed over two weekends. In addition, the landlord offered to relocate the tenant to another floor or another building (and pay the difference in any higher rent) or terminate the lease and pay the tenant $350,000. However, the tenant rejected all of the offers, moved into a new building on its own, and sued the landlord for constructive eviction. In affirming the lower court’s finding that there was no constructive eviction, the Court of Appeals recognized the inconsistency between the landlord’s right to conduct renovations under the terms of the lease and the implied covenant of quiet enjoyment in favor of the tenant. The lower court, in rejecting the tenant’s argument that allowing the landlord to renovate would render the tenant’s right to quiet enjoyment meaningless, ruled that the landlord had a right to renovate. Because the landlord had acted "reasonably and responsibly," the Court of Appeals specifically found that the landlord had committed no wrongful act, a necessary element of a claim for construction eviction. The court concluded that it was "left with the impression" that the tenant was trying to take advantage of the landlord’s need to renovate to get a "better deal" and made it clear that commercial tenants, who frequently are confronted with a landlord’s need to renovate, cannot expect to "hold hostage contractually authorized renovations." Making a Case As demonstrated by case law, landlords’ acts or omissions can enable tenants to terminate leases on the grounds of constructive eviction. However, these actions must be egregious, violate a landlord’s duty or obligation, and have a significant effect on a tenant’s ability to use and enjoy its premises. Without these elements, a tenant will not be able to avoid its lease obligations. Samuel H. Weissbard, JD, and Camellia K. Schuk, JD Samuel H. Weissbard, JD, is senior counsel and Camellia K. Schuk, JD, is an associate in the Irvine, Calif., office of Cox, Castle, & Nicholson, LLP. Contact them at (949) 260-4600 or sweissbard@ccnlaw.com and cschuk@ccnlaw.com.The discussion of legal issues in this column is for informational purposes only. Results may vary depending on state laws and individual

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MAKE RENT PAYMENTS ONLINE

PAY RENT ONLINE: LIST OF ONLINE RENT PAYMENT TOOLS Simplify your rent collection. Instead of waiting for those checks to come in the mail or going and collecting the rent, why not use an online rent payment tool? These rent payment sites connect you with your tenants, and typically allow payments to be transferred directly to your bank account via ACH. As an alternative to giving your tenants access to your private banking information, these sites act as a third party between you and your tenant. While they do charge fees for their service, many of them allow you to decide who pays for the monthly fee – you, your tenant, or both. Keep in mind, before you collect rent, you’ll need to know how to rent your house and will want to be sure to do a thorough job of tenant screening. When you’re ready, the following online rent payment services may meet your needs: Online Rent Payment Tools ClearNow ClearNow automatically withdraws rent from your tenant’s bank account, and deposits the funds into your account three business days later. Tenants can build a credit history by having ClearNow furnish their rent payment history to Experian RentBureau. ClearNow does not process partial payments, so if 100% of the payment isn’t in the tenant’s account, nothing is collected. You can choose to pay the fee yourself, charge it to the tenant, or split it with them. ClickPay ClickPay is a complete platform for property managers and landlords to bill and collect payments online. We accept credit cards, e-check (ACH) and paper check payments. Cozy.co Cozy is the first complete modern service for independent landlords and renters. Renting has always been fragmented, unsecure, and unnecessarily complex – even though it affects nearly everyone at some point in their lives. We want to change the way renting works. Our mission is to make the process simple, secure, and intuitive. eRentPayment For Property Manager and Landlord Tools – Offer time-saving online applications, tenant screening, online rent payments, maintenance requests, reminders, and credit reporting to your tenants to help distinguish your property and enhance your operations. PayClix.com PayClix accepts Visa, MasterCard, Discover and eChecks. The tenant signs on and makes a payment, the you are notified and have the option of either accepting or denying the payment. Tenant is notified via email, and accepted payments are deposited into your account. Payments may also be made over the phone. You can choose to pay the entire fee, have the tenant pay the entire fee, or split it between you. PayLease.com PayLease allows you to collect rent or HOA dues online. Your tenant sets up an account and can make individual payments each month or set up an automatic payment schedule. Your tenant can pay with cash at Wal-Marts and local grocery stores. They can also use a credit card or an eCheck. There is a 3-day processing time. PayYourRent.com PayYourRent currently offers eCheck and credit card payments, with cash payments coming soon. Tenants can log on to make individual payments, or schedule recurring payments. Payments can also be made over the phone. Fees can be paid by either tenant or landlord. PayYourRent offers rent payment history reporting to both TransUnion and Experian RentBureau, to help tenants improve their credit history. Email confirmations of payment are sent to both parties. RAMSRent RAMSRent allows you to process tenant applications and collect rent. Tenants can pay by check or credit card. Late fees can automatically be added to the payment schedule as well. You decide what fees to charge your tenants for this service. Rent is deposited into your account within 3 business days. Rentalutions Rentalutions allows you to set up each individual tenant, enter their monthly rent and due date, and add a separate late fee if rent is paid after a certain date. Rentalutions also allows you to schedule security deposit payments and due dates, as well. Tenants have the option of logging in to make a payment every month, or to set up recurring payments so rent is never late. Automatic reminder emails are sent 5 days before rent is due, and again on the date it is due. Tenant payments are deposited within 3 business days. Rentec Direct gives landlords and property managers the ability to automatically receive ACH payments from their tenants. Landlords can enter the transactions directly, or tenants can login to their own portal and initiate one-time or recurring payments. Tenants can pay by either ACH or credit card. Both credit card and ACH payments forward to the landlord’s bank account the next day. Rentific Rentific’s basic service is free for both landlords and tenants. Tenant makes the rent payment, and you receive it within 7-10 business days. A faster, 4-day service is available for a small transaction fee after one month’s rent has been collected. Rentific allows tenants to pay by eCheck, credit card or SMS payment. If they opt for payment by SMS, Rentific messages a reminder of their rent due, they reply Pay Now, and the payment is processed. Rentigo Rentigo accepts eChecks and credit cards, and allows tenants to schedule recurring payments. Funds appear within 48 hours of processing. Rentler FREE online payment tool is the smarter way to collect rent. Rentler allows you to split roommate payments, automatically report rent payments to build a tenant’s credit, and send digital rent reminders/late fee notices. Rent is deposited into your account within three business days and tenants can pay with a debit card, credit card, or directly through ACH. RentMerchant RentMerchant allows tenants to pay by credit card, check and Paypal. Funds appear 2-3 days after payment. RentPaidOnline RentPaidOnline allows your tenants to set up a one-time payment, or schedule recurring payments. Payments can be made by eCheck, credit card, cash or prepaid debit cards. Tenants can also submit maintenance requests online. Funds appear 2-4 days after payment, depending on type of transaction. Simplify’Em Pay Rent Simplify’Em Pay Rent offers tenant screening as well as online rent payments. Tenants schedule payments to be withdrawn from their account, and deposited into yours. TrueRent Offers Free Online ACH/EFT Rent Collection and Low cost Credit Card Rent Payments. Discounted tenant screening includes Experian Credit, national criminal and nation eviction all in one report. Full Service Property Management Software. TurboTenant makes collecting rent simple! No more tenant excuses or checking the mail. TurboPay is totally free for landlords and property managers, and with TurboPay, tenants can easily and quickly pay with an E-Check (ACH). Funds are deposited straight into your bank account within 2 business days. Start collecting rent online today! VerticalRent an easy-to-use online tenant screening and rent collection software for landlords. Free for landlords, your renters can pay rent by credit card or ACH (eCheck) via our tenant portal. They can also submit maintenance requests and securely message with you. Rent is deposited electronically into your checking account within 2 business days. Sign up today with a trusted platform, since

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

10 REASONS TO RENT AND NOT BUY

We all know the potential problems with renting — rent hikes, strict pet policies and less control over fixtures and paint color choices, to name a few. But beyond the negatives, there is a silver lining to renting. From greater flexibility to surprising financial savings, here are 10 reasons to be glad if you are not a homeowner. 1. No worries about yardwork. If you rent, your yard might be a maintenance-free patio or, if there is a grassy yard, the landscaping might be maintained by the landlord. If you have a green thumb, of course you can make the most of your space with a potted garden or raised veggie beds — but the choice is yours. 2. Live in a more walkable area. When buying a home in a densely populated urban area is financially challenging, renting in the same area can sometimes be within reach. Renting can let you take advantage of the conveniences and rich culture of city life. 3. Get repaid for home improvements. While some landlords are quite strict about making any changes to the space, others are open to positive changes that will appeal to other renters in the future, such as refinished floors, fresh neutral paint and new light fixtures or faucets, and might even reimburse you for materials and labor. You won’t know unless you ask … just make sure you do ask before making a change, or you could lose your deposit when you move out! 4. Enjoy more free time. Along with owning a home comes the responsibility for home maintenance — and all of that lawn mowing, gutter cleaning, deck staining and painting takes time. Renting means you can devote more time to doing the things you really love to do. 5. Excuse yourself from costly updates. When you own a home, pouring money into remodeling projects is tempting, even though you are not likely to recoup that money when you sell. As a renter, there is freedom in knowing you can’t remodel even if you wanted to — and the unspent money can become savings for retirement, travel or a special piece of furniture that you can take along if you move. 8 Remodeling Costs That Might Surprise You 6. Upsize more easily when your family grows. Buying a small starter home may seem like a good idea … until a child (or two or more) comes along, and you realize you really need more space. If you rent, moving to a bigger place is a relatively simple endeavor. If you own your home and want to sell your old house and buy a new one at the same time, things get more complicated (and more expensive), especially if you end up carrying two mortgages at once. 7. Invest on your own terms. Whether you would like to start a business or invest more in your retirement accounts, choosing to not buy a home opens up other possibilities for saving and investing. Buying a home can be a smart investment, but it’s not the only option. 8. Keep options open. Got an amazing new job opportunity in a far-flung locale? If you own your home, you’d have to contend with selling or renting it out if you wanted to move, but if you rent, the process is more straightforward. Renting in different neighborhoods is also a great way to get a feel for a new city — keep exploring until you find your ideal spot. 9. Something broke? You don’t have to fix it! Being able to call the landlord when something needs fixing has to be one of the biggest perks of renting. From leaky faucets to appliances that go kaput, it’s nice to know you will never need to cover surprise repair costs. 10. Enjoy being mortgage-free. While some folks are able to purchase their home outright, for many, being a homeowner means signing up for a boatload of debt. And while it sounds as if you’d be saving more by paying off a mortgage (and a home can indeed be a wonderful long-term investment), it’s not all sunshine and roses — there are the closing costs, agent fees, interest payments and property taxes to take into account (to name a few added expenses). A savvy renter can sock away as much (or more) savings as a homeowner, without the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

AVAILABLE INSPECTIONS FOR HOME BUYERS

A general home inspection is a necessary and common step in the home-buying process. However, there are other potentially important inspections that could affect your home purchase. Usually suggested by your inspector or real estate agent, they typically surface from issues found during the general inspection or that have been provided in the sellers’ disclosure. Focused on one area or system, these inspections dig deep into the health of the home to expose potential issues — saving you a huge headache (and the repair bill to go along with it). Sewer inspection The time to find out if your dream home has a faulty sewer system or requires any repair is before the closing, not after you’ve signed on the dotted line. This inspection is especially important for houses that are 20 years older or more. Not only can the pipes erode and break down, but tree roots also can wreak havoc, leaving you with an expensive repair bill (and a temporarily unlivable house, in some cases). Using a camera attached to the end of a plumbing snake, your sewer professional will be able to view the interior of the plumbing lines and any issues they may contain. When you’re armed with the results, inform the seller of any issues and negotiate necessary repairs or replacement during the inspection period. Lead-based-paint test It’s widely accepted that if you are buying a home that was built prior to 1978, lead is probably present in the original exterior or interior paint. If the home has been given a thorough paint job and the old paint is covered with new, it’s probably safely contained below the layers of the new paint. However, testing the old paint and knowing definitively is always a good practice, especially if you’re planning on renovating after you purchase the home. Lead in the old paint is damaging in the form of dust, especially to children. Lead literature is abundant; if your home does indeed have lead present, follow the best-practices guidelines when dealing with any original paint. Oil tank inspection The presence of an oil tank on a property is usually noted by the seller in the disclosure statement or by the home inspector during the visual inspection of the property grounds. While oil tank laws vary widely between states, it’s common practice to have an inspection and check for leakage and/or contaminated soil. In some areas, unused tanks must be issued a decommissioned certification before the sale can proceed. A licensed oil tank inspector can advise you of local laws and ensure the oil tank on your new property won’t prevent you from closing on the sale. Central air/heating inspection If during the general inspection the heating or air-conditioning unit is not performing as it should, your inspector may suggest calling in a professional to pinpoint the issue. Perhaps the air ducts are blocked or the unit itself is not working or hasn’t been maintained properly — any of those could be cause for concern. A heating/cooling inspector will clean and maintain the system as well as advise any repairs or replacements. Consider the cost of this service money well spent to avoid issues down the road. Roof inspection A roof is one of the most costly components of a home to repair and replace. A thorough report from a roof inspector provides an accurate assessment of the current condition of the roof as well as its proposed longevity. The inspector will check for movement and condition of roof materials, functionality of gutters and drains, plus flashing. After any necessary repairs are completed, the roofing company will estimate the remaining years of the roof’s life and certify its inspection. Radon test Radon is an invisible, odorless gas that occurs naturally — but it’s also the number two cause of lung cancer. (Smoking is still number one.) Since there are no obvious indicators of its presence, it’s a smart choice to test for radon as a matter of practice. The test is inexpensive and can take from two days up to a week from deployment to results. The presence of high levels of radon doesn’t usually derail a home purchase, however, as mitigation is typically a reasonable expense. Pool inspection In markets like Las Vegas, NV, a pool is a selling point, but in other areas it’s practically a liability. Regardless, if your potential new home has a pool, it’s always a good idea to have a separate pool inspection. For best results, the pool must be open and functional. If it’s the middle of a Midwest winter and the pool is buried under two feet of snow — buyer beware. You could encounter a huge repair bill come spring. Even if the seller advertised the pool in “as-is” condition, have the inspector do an in-depth inspection. It’s always a good idea to know what’s in store. Foundation inspection Foundation issues can be some of the most costly to repair. If your general inspector notices cracks in the foundation, they’ll typically suggest having a separate inspection done. A foundation expert will be able to distinguish minor cracks, which can be common in older homes, from major foundational problems. Word to the wise: If your general inspection report lists a foundational crack, it’s common for your lender to require another inspection with an all-clear certification before they will lend on the property. Pest/termite inspection A general rule of thumb is, the higher the humidity, the more issues homeowners have with pests and termites. Calling in a professional will not cost you a lot of money, but it could save you big bucks in the long run. Termites eat wood from the inside out; there may be no obvious signs of their presence until your front porch starts leaning to the left. An inspector will search for the presence of these tiny pests, evaluate the damage, and take steps to eliminate them. It’s advisable to have a pest and termite inspection every year or two depending on where your home is located. Also, an inspection company will usually warranty its past inspections for a period in case the pests show up

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TITLE AGENCY E&O INSURANCE

Being an abstractor, title agent, escrow/closing agent, notary public, or title examiner is a complex responsibility with customers expecting superior performance and error-free results. For example, a loan closer performed a closing for a refinance. Unfortunately, he calculated the payoff amount of the existing mortgage himself instead of obtaining it from the lender. He was incorrect, the existing mortgage was not satisfied, and his E&O insurer settled for a total loss of $35,600. Without errors and omissions insurance, he would have been liable for that amount himself. Errors & Omissions Insurance Protects Your Title Agency Almost any firm or individual who improperly performs services can cause a client to suffer an economic loss. Mounting a defense of your actions is expensive. The impact of even a baseless claim can be devastating. Would your company have the resources and expertise to defend against such a claim? Your company’s survival and your personal financial security depend on protecting yourself against the impact of a lawsuit. Title Agency E&O Covers This professional liability insurance covers legal defense costs and any resulting judgments against you, including court costs, up to the coverage limits of your policy. Often a claim or lawsuit may not involve a clear error or omission on the part of the title agent, abstractor, or escrow agent. There could be a title hazard on a property, but the title insurer may not respond to the claim because it isn’t covered. Any suit by the policyholder against the insurer will likely name the title agent. E&O Is Different Than General Liability Errors and Omissions insurance coverage is not provided by a Commercial General Liability policy. Commercial General Liability does not provide coverage for errors, contract performance disputes, or any other liability issues. Appraisers who have General Liability without Professional Liability (Errors & Omissions) coverage are taking a serious

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

10 TIPS FOR RENTERS

Communication Considering that nearly 35% of Americans currently reside in approximately 40 million rental units throughout the country it is surprising that so few of us really understand how to communicate effectively with our landlords. Almost every one of these landlord/tenant relationships last a minimum of one year and some last many years, even decades. The relationship that you enjoy with your landlord can directly impact your lifestyle, comfort, image, and financial standing. Establishing a positive and healthy relationship with your landlord can go a long way in helping you live in the best conditions possible, getting you the fastest responses to maintenance requests, and keeping your rental rates reasonable. The following are some quick tips which can go a long way in helping to maintain and improve landlord/tenant relations: During your rental search 1) Know what your expectations are before searching for a property. If your requirements aren’t offered at a particular property, then move on. Don’t expect a landlord to add an unreasonable amount of amenities or upgrades to an existing rental. There are often other units available that will meet all of your needs. 2) Submit completely accurate rental applications regardless of your shortcomings. Do not overstate your income or lie about credit problems. Landlords are increasingly open to working with challenged credit. Providing a clear explanation as to why your credit has suffered and expressing your desire to improve the situation will go a long way to sway a decision. We always recommend a pre-written letter with this information be sent with the rental application as it shows some planning and thought went into your process. Lying on an application is almost always grounds for denial or later termination of a lease. 3) Ask the right questions. Those questions are the ones most important to you. In most cases landlords/agents are not required to disclose some information that may be important to you. Do not be shy when searching for a home. Ask as many questions as necessary to make sure that you are comfortable with the decision you are making. 4) Get it in writing. If a landlord has promised a repair, new carpet, new appliances, or anything else will be done as a condition of your lease then be absolutely sure to get it in writing, preferably on the lease document. Anything less opens up the chance for miscommunication and leaves an opening for problems. I can’t remember how many times I’ve spoken to tenants who were “promised new carpeting” at some point during their tenancy and did not get it. Promises don’t get things done. Written agreements do. 5) Read your lease completely. This is an important process. You are making legally binding guarantees regarding payments, upkeep, repairs, etc. Read it thoroughly before you sign it. If possible ask for a copy the day before signing the lease so that you have enough time to read and think about any potential questions. Move-in time 6) Complete or request a walk-through to assess any existing wear or damage. This will alleviate many disputes at the time of move out. Make sure this is done thoroughly and ask for a copy for your records. 7) Make sure that you know all of the pertinent property information (utility info, garbage day, mailbox #, instructions for alarms, entry systems, sprinkler systems, HOA rules, etc.). By collecting all of this information up front you can eliminate several calls to your landlord over the first weeks of tenancy. When landlords receive a flood of calls from a new tenant they instantly start to think of that tenant as high maintenance. This puts an instant strain on the relationship and can set up future problems. An effective landlord should provide this information for the same reason but many do not. By collecting all of this at the time of move-in you can avoid that unnecessary contact. 8)Make sure that you know the exact process for contacting your landlord in case of any questions or repair issues. Every landlord is different and each has their own process for dealing with tenant inquiries. You are best served to ask exactly how the landlord would like to be contacted. Don’t assume that texting them or calling them on their cell phone is the preferred or most effective option. By following the landlord’s preferred process you instantly become “easier to work with” than the tenant who contacts them by some other means. Landlords are also likely to respond more quickly to those who operate the way that they prefer to. During your tenancy 9) Pay your rent on time. Easy enough when everything is going well but what about when things are not? Your best option is to contact the landlord as soon as you see a problem arise and work out an agreement to get on track. Very few landlords will want to evict a tenant who they believe honestly wants to pay but is having a short-term problem. The worst option is silence. A non-paying, non-communicating tenant will and should be dealt with harshly. 10) Be reasonable with your requests. Most landlord/tenant issues that don’t involve money center around tenant maintenance requests that they feel are not handled adequately by their landlords. There are many cases where the tenants are absolutely in the right and landlords have neglected their duty to provide clean, safe housing. However, in many other instances the requests made by tenants are completely unreasonable and by utilizing a bit of patience and thought these issues can be resolved reasonably. Handle very minor issues on your own. Almost any tenant can replace a light bulb, furnace filter, or smoke detector battery. They can tighten a door knob or put a closet door back on its track. However, these types of tiny issues constitute a huge number of service calls and maintenance costs for landlords. If you have small issues and can’t handle them on your own then wait until a larger problem arises that truly requires service and ask if those smaller items can be addressed as well saving multiple service trips. If you have a non-emergency issue, don’t require that it be handled on an emergency time frame. There are many factors out of the landlord’s control that go into how quickly an issue can be resolved including vendor schedules, time of day/week, weather, travel time, etc. Tenants need to take these factors into account and try to understand that your landlord wants to resolve your issues and wants you to be a happy tenant as it is in their best interest. Above all else, it’s important to remember that you are ultimately dealing with another human being. If you are speaking with a property manager or maintenance tech you are dealing with someone who can choose to help you or ultimately push your concerns aside. Your goal should be to get your questions answered and problems resolved, not to make as much noise as possible. By portraying yourself as an honest tenant, preparing yourself for your tenancy up front, educating yourself on your lease terms and rules, and making reasonable requests using the proper channels it is very likely that you will have a happier and more successful relationship with your landlord and a more pleasant stay in your rental

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

COMPARING COMMERCIAL AND RESIDENTIAL REAL ESTATE

Comparing commercial real estate to residential real estate is like comparing apples to oranges. Both are from the same genre, but that is where the similarities end. The following are general descriptions of the two types of real estate: Commercial real estate is business-focused. It involves property that is sold, leased, or used to achieve a predetermined business objective. It’s used as an investment to achieve an anticipated rate of return on the funds invested. Residential real estate revolves around the wants and needs of a homeowner and his family. It involves property purchased for individual use, most often to provide housing for families. The selling process for commercial real estate hinges on numbers and return-on-investment calculations. Residential real estate is nowhere near so cut-and-dried because it’s more of an emotional purchase. Many buyers make decisions based on the fact that the house just feels right to them. The key factor is the return on investment. WHAT IS RESIDENTIAL REAL ESTATE? Residential real estate is focused on personal use. For the most part, residential agent’s represent the buyers or sellers of single family, primary homes. Within the residential real estate arena, agents also engage in the following specialties: Selling secondary homes to people seeking a “home-away-from-home” to get away from it all. The second home market is one of the fastest-growing segments of the residential real estate arena. More than 21 percent of the sales in 2004 were second home purchases for use by the purchaser or for investment purposes. Working exclusively for a builder of new homes, usually by serving as the on-site salesperson for a new home community. In this role, the agent sells only the builder’s homes. If buyers need to sell an existing home outside of that community, usually another agent handles that sale. Representing residential real estate investors who are looking to increase wealth through the ownership of homes, duplexes, triplexes, and fourplexes. Small-scale multiplexes are handled by residential rather than commercial agents for the following two reasons: • Often the purchaser lives in one segment of the multiplex, creating a residence as well as an investment property. • Usually a purchaser can buy up to a fourplex with a conventional mortgage. Residential agents rarely represent buyers or sellers of multiplexes with more than four dwelling units. Purchasers of larger complexes must qualify for and secure commercial real estate loans — which involve a more restrictive set of conditions, including higher interest rates, shorter amortization schedules, and considerably higher initial equity positions or down payments. WHAT IS COMMERCIAL REAL ESTATE? Commercial real estate centers on business or investment use of real estate. In commercial real estate, you can buy, sell, lease as a lessor (the person who owns the property for lease), lease as a lessee (the person who’s trying to lease the property for their use), syndicate, joint venture, develop, option, and invest in a wide range of commercial real estate categories, including retail, office, industrial, apartments, investments, and raw-land leasing. Commercial real estate agents are usually familiar with many of the commercial real estate areas, but they generally specialize in one of the following areas or disciplines: Representing tenants or lessees by finding, selecting, and negotiating new space for client businesses. Representing building owners or lessors by working to lease out building space for the highest possible price and with the most favorable terms. Frequently a commercial agent represents one owner or even one building exclusively in order to ensure the building is leased to capacity. Representing investors who want to buy and sell commercial property by finding opportunities that offer the lowest risk to the client, the best return on investment, and the best capitalization rate, which is the net operating income of the property divided by the sales price or value of the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE PSYCHOLOGY OF REAL ESTATE

If you've ever house-hunted, you've probably got a sense that real estate purchases don't represent consumers at their most rational. Did you like a house or apartment more, or less, depending on whether it was sunny the day you saw it? Chances are, you did. Buying a house isn't the same as buying a stock, an air conditioner or even a car. It's not just a product with pluses and minuses—good school system versus small kitchen, new roof versus longer commute. A house represents the kind of life you want to live. And given its cost, a house and the value it gains or loses represent in a very concrete way the life you will be able to live. Thus, it's both unsurprising and disturbing to realize our judgment about real estate is susceptible to many of the foolish forces that affect so many other consumer decisions—and in some ways, it may even be more affected. Research by Michael Seiler, a professor at Old Dominion University, has found that both men and women (though particularly men) are susceptible to the attractiveness of a female real estate agent. The more attractive the agent, the more the buyer is willing to pay. What's more, superficial things like a room painted an ugly color can make people less likely to buy a house—even though fixing such a problem is as cheap as a couple cans of paint. What's more troublesome, though, is how attached our minds get to the perceived values of our houses. In one study, economists David Genesove and Christopher Mayer looked at the spectacular bust in condominium prices in Boston in the early 1990s. When a market goes south—as the national housing market did recently—standard economics tells us that sellers should recalibrate their expectations and behavior, knowing they'll have to sell for less. Of course, this isn't how our brains work. Instead, we're susceptible to loss aversion—the mental quirk by which we feel losses much more sharply than we feel equivalent gains. So we set the price of our property not by what the market will bear, but by what we paid and what we feel we "have to" get out. People who bought at or near the peak of the Boston condo boom listed their properties for around 35 percent more than those who had bought lower. Consequently, those overpriced properties sat on the market; fewer than 30 percent had sold after 180 days. Another wrinkle: Owners who also lived in the units exhibited about twice as much loss aversion as people who had bought them as investment properties. A home, it seems, makes us more irrational than a house. It doesn't take a boom or bust to trigger this phenomenon: A more recent paper finds that homeowners consistently overestimate the value of their homes by 5 to 10 percent. The only cure for this seems to be buying one's home during a slump; in fact, these buyers may underestimate their home's value. Buyers getting in now, then, may be at a cognitive advantage for years to come. Boom buyers, meanwhile, have to come to terms not just with economic losses, but with psychological losses and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

A REAL ESTATE AGENTS VIEW OF FSBO TRANSACTIONS

PRICE Homeowners believe they will save the real estate commission by selling on their own, and while that may be true, studies have also show that homeowners net more money when using a trusted real estate agent to sell their home. According to NAR, the typical FSBO home sold for $190,000 compared to $249,000 for agent-assisted home sales in 2016. Agents are fully equipped with real estate knowledge, experience, and tools that allow them to get their clients more money through the art of negotiation, effective marketing tools, access to a larger marketplace and qualified buyers. MARKETING Like previously mentioned, FSBOs typically sell for less. But why? One reason is it does not have the exposure of being marketed on the Multiple Listing Service (MLS), a database of houses and properties available for sale. Only licensed agents have access to the multi-listing service or you could pay the flat rate of listing your home, which ranges between $500-$1000. Eighty-nine percent of home buyers bought with an agent in 2017. Pre-qualified buyers are searching for homes with their agents online – they aren’t out driving around looking for ‘FOR SALE’ signs in yards. TIME Most people don’t understand the amount of time and effort that goes into selling a home and to try to do that in addition to your regular full-time job, can be exhausting and stressful. It can be difficult to properly stage your home, set up an inspection, manage phone calls to schedule showings that accommodate the potential buyers’ schedules as well as yours. Typically, the average FSBO should expect to spend at least 10+ hours showing and marketing their home per week. If you can’t commit at least 10 hours a week, FSBO is not your best option. If you are in a time crunch, then FSBO is definitely not for you either. Agents have the tools and programs that will quickly get your home listed and in front of as many eyes as possible. Agents also have access to qualified buyers – which can save A LOT of time. The FSBO seller is on their own for requesting financial statements and verifying credibility for potential buyers. NEGOTIATION There are tactics and negotiation points that an experienced agent will use in negotiating besides just price. Repairs to the house, lawn maintenance, and even additions can be negotiated almost entirely outside the price discussion. For every negotiating point, there is a tactic to handle it and a real estate agent will be able to navigate negotiating much better than a non-experienced FSBO seller. LEGAL When you go to sell your home, you aren’t likely thinking about the legalities and potential liability issues that need to be carefully handled when working with a potential buyer. For example, if the home sells while something requires work or repairs and the responsibility is not clearly stated in the contract, you may quickly find out that you are on the hook for the cost to fix the issue. Realtors have their clients best interest in mind and look for irregularities or loopholes in the contracts that a typical FSBO seller might not catch. Final Thoughts. Choosing to do FSBO or go with the knowledge and experience of a trusted real estate agent depends on how motivated you are to take on the process yourself. It’s a lot to take on and can be done, but a real estate agent would provide a level of experience and expertise that will make it a much more stress-free process, all while having your best interest in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE DISCLOSURE STATEMENT AND LIABILITY-UNDISCLOSED DEFECTS

You recently moved into your new home. Prior to closing, you had an inspection performed and reviewed the Seller Disclosure. However, after the first rain storm you realize there are numerous leaks in the windows in the living room causing water to pour into the walls and the carpet. You hire someone to make the repairs and he discovers the damage is more extensive than you imagined. Moreover, the contractor informs you that there is evidence that someone tried to hide these issues using make-shift repairs. Over the next week, while talking with your neighbors you learn that the previous home owner told your neighbor about the issues around six months ago. At this point you are mad. You feel the previous owner lied to you and maybe blame your real estate agent, the inspector or others. You don’t know for sure who is responsible but you feel someone should pay for these repairs to the home. If we are going to talk about liability for undisclosed defects, there is no better place to start than with the homeowner. After all it is the homeowner that should have the best understanding of the issues with the home. Moreover, it is the homeowner that completes the Seller Disclosure form that is intended to inform the buyer of potential issues with the home. As such, you would think it would be clear the Seller is liable for omissions from the Seller Disclosure, right? Unfortunately, as will be discussed below, the answer is not quite that simple. Knowledge of Omissions from the Seller Disclosure When attempting to establish liability for a homeowner for issues not disclosed in the Seller Disclosure, the first step is to show that the seller had knowledge of the undisclosed issues. Although there are different versions of the Seller Disclosure form, almost all forms begin by stating that it is a disclosure of all issues known by the seller at the time they completed the form.(1) Because the form is only a statement of issues the seller is aware of, they can not be held liable for issues for which they had no knowledge. Therefore, this is the first thing to look at when determining if a homeowner may be liable. There are many facts that can be used to establish that the seller had previous knowledge. For example, did the seller previously hire someone to investigate or repair issues related to the undisclosed defect? What about conversations with a third party, such as a neighbor, regarding the issues? Did the homeowner personally remodel or build the section of the home where the issues were present? The most egregious example might be from the Kansas Supreme Court case of Jason Osterhaus v. Jean Betty Toth that will be discussed more in the next section.(2) In that case, the seller was previously under contract to sell the home to another buyer. That sale fell through when the buyer discovered issues related to a leaky basement. However, the seller did not disclose the existence of the issues or previous contract to the new buyer. Duty to Inspect the Property A major issue in the Osterhaus v. Toth case mentioned above was whether the seller can be held liable when the sales contract states that the buyer is responsible for inspecting the property. Osterhaus, a first-time home buyer, discovered water seeping into the carpet in a finished portion of the basement in the house. As the leakage issues were not included in the Seller Disclosure, Osterhaus brought suit against Toth for intentional misrepresentation and fraud under the Kansas Consumer Protection Act. The seller, Toth, denied liability by pointing to the terms in the seller disclosure that stated that Toth had a duty to verify all information contained in the disclosure. After reviewing a series of previous cases in the issue, the Court found that Osterhaus did have a duty to inspect the property and that the seller is not responsible for issues that should have been discovered during a reasonable inspection. However, the Court further found that the seller does remain liable for any undisclosed defects that could not have been found during a reasonable inspection. Although this case was in Kansas, Missouri courts have reached similar decisions absolving homeowner’s from liability for latent defects that could have been discovered through a reasonable inspection.(4) Determining if a reasonable inspection would have disclosed an issue can be a complicated determination. In reaching that determination, the courts will look at factors such as if the seller attempted to conceal the issue or if the defect was hidden by walls or other immovable objects. The testimony of a reputable home inspector will often be necessary to establish that the defects would not have been discovered during a reasonable inspection. This decision creates an interesting dichotomy wherein there can usually only be liability against either the seller of the home or the home inspector. If the inspection of the home was reasonable, the seller may be responsible for not disclosing the issues. On the flip side, if the inspection was not reasonable and a reasonable inspection would have uncovered the issues, the inspector may be liable. However, the seller will not be liable. The potential liability of home inspectors will be discussed in more detail in a later blog post, but this interesting contrasting liability was worthy of a mention in this discussion. Timing Considerations The last important element to discuss when analyzing seller liability for undisclosed issues is the time frame in which you have to bring your claims against the seller. In Kansas, a seller has only two years to bring an action for fraudulent concealment against another party.(5) However, there are factors that may extend this deadline. The most common of these is the date of discovery. If you do not discover the issue for three years, you can not be expected to have brought your claim within two years as you did not know about it. Therefore, Kansas Courts generally allow for the “tolling” or extension of beginning of any time limits until such time as the issue has been discovered. However, there are limitations on this. If it is determined that the defect was “reasonable ascertainable” at a prior time, the court may find that the time limit began when the defect was reasonably ascertainable not when you discovered it.(6) Moreover, there is an absolute deadline of ten years, regardless of when it was discovered.(7) Conclusion Claims against the seller for omissions on the Seller Disclosure can be successful. However, it is important to understand all of the factors that must be proved at trial. This includes proving that the seller was aware of the issues and that the defects could not have been discovered through a reasonable inspection. An experienced real estate attorney should be able to discuss these factors in more detail with you and provide guidance of your likelihood of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HIGHER RATE OF HISTORICAL RETURN – REAL ESTATE VS. STOCK MARKET

For the majority of U.S. history - or at least as far back as reliable information goes - housing prices have increased only slightly more than the level of inflation in the economy. Only during the period between 1990 and 2006, known as theGreat Moderation, did housing returns rival those of thestock market. The stock market has consistently produced moreboomsandbuststhan the housing market, but it has also had better overall returns as well. Any results derived from comparing the relative performance of stocks and real estate prices depends on the time period examined. Examining the returns from just the 21st century looks very different than returns that include most or all of the 20th century. Historical Evidence Reliable data on the value of real estate in the U.S. is murky before the 1920s. Oneinflation-adjustedvalue index between 1928 and 2012 placed the annual rate of appreciation for real estate prices at just 0.2%. The peak for real estate growth occurred between 2001 and 2005. The inflation-adjusted appreciation on theDow Jones Industrial Average(DJIA) over the same 84-year period was 1.6% per year. Compounded over time, that difference resulted in a fivefold greater performance for the stock market. There aren't many investors with an 84-yearinvestment horizon, though. Take a different time period: the 38 years between 1975 and 2013. A $100 investment in the average home in 1975 - as tracked by the House Price Index from theFederal Housing Finance Agency(FHFA) - would have grown to about $500 by 2013. A similar $100 investment in the S&P 500 over that time frame would have grown to approximately $1,600. Apples and Oranges While stock prices and housing prices both reflect themarket valueof an asset, one should not compare houses and stocks for market returns only. Stocks represent an ownership interest in apublicly-traded company. They are not tangible, physical assets and serve no utility other than astore of valueand aliquidsecurity instrument. While there is some reason to believe that the overall stock market would gain in real (as opposed to nominal) value over time, there is little reason to believe that a single stock should grow in perpetuity. Real estate is not like stocks. Some people speculate with real estate prices, but commercial and residential real estate serve tangible functions. People live in houses andcondominiums. Businesses operate out ofcommercial property. Physical property has value in and of itself. This introduces two conflicting phenomena. On the one hand, existing real estate structures should naturally lose value over time through wear, tear anddepreciation. An unmodified home has no reason to grow in value over time; all of the floors, ceilings, appliances and insulation age and becomes less valuable. On the other hand, the average homes built in 2018 are unquestionably superior to the average homes built in 1915. While existing structures shouldn't gain value, new structures should be more valuable on the basis of their structural and functional

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FILE AFFIDAVIT AFTER DEATH OF GRANTOR OF A BENEFICIARY DEED

Missouri Affidavit as to Death of Grantor The Nonprobate Transfers Law of Missouri, Sections 461.003 to 461.081 RSMo (2012) has been in effect since 1989. While the law is specific on requirements for the beneficiary deed, it is less clear on the process for accepting the real property rights conveyed. Section 461.062, however, offers some guidance. Under the Nonprobate Transfers Law of Missouri, grantee beneficiaries who survive the deceased owner by at least 120 hours gain ownership of property designated as "transfer on death" by function of law, upon the death of the owner (461.042). There are two primary reasons to formalize this transfer of ownership, even though it is supposed to happen automatically. First, it is always a good idea to record changes to the named owner of real estate, providing notice to the public that the former beneficiary now holds title to the land and keeping the ownership history up to date. This ownership history is called the chain of title. A clear chain of title (with no gaps or interruptions) makes property easier to sell by reducing the chances of unexpected claims from others trying to assert their ownership rights. Then, by recording an affidavit asserting the new claim on the title, the beneficiary lets the local assessor or taxing agency know that, as the record owner of the unique parcel of land, he/she is now responsible for the property taxes. Land owners must remain current on property taxes or risk penalties such as fines, liens, and possibly losing the real estate in a tax sale, so it is essential that the tax statements arrive at the correct location. The question arises, then, of exactly how to let the relevant transferring entities know about the owner's death. There is no statutory form or action required to effect the change, but 461.062 provides some guidance for written requests to formalize these transfers. For the most part, it involves recording an affidavit that includes the grantor owner and grantee beneficiary's information, recording details about the beneficiary deed, and specifics regarding shared ownership of the property. To support the affidavit, the claiming beneficiary must also include a copy of the recorded beneficiary deed and a death certificate for the owner as well as any deceased beneficiaries. When presenting the affidavit and supporting documents for recording, be sure that they will update the tax records as well. If not, send a copy of the death certificate and the recorded beneficiary deed to the county assessor, too. In short, by setting aside some time in the days following the death of the owner (preferably within the first six months) to complete and record a Missouri affidavit as to the death of grantor, the beneficiary protects his/her interest in the newly-acquired real estate, while limiting the likelihood of future problems with taxes or title. IMPORTANT TERMS as defined in 461.005 A grantee beneficiary, also called simply a beneficiary is a person or persons designated or entitled to receive property pursuant to a nonprobate transfer on surviving one or more persons. The death of the owner in the case of joint owners, means death of the last surviving owner. The owner is a person or persons having a right, exercisable alone or with others, regardless of the terminology used to refer to the owner in any written beneficiary designation, to designate the beneficiary of a nonprobate transfer, and includes joint owners. The provisions of this subdivision shall apply to all beneficiary deeds executed and filed at any time, including, but not limited to, those executed and filed on or before August 28, 2005. A transferring entity is a person who owes a debt or is obligated to pay money or benefits, render contract performance, deliver or convey property, or change the record of ownership of property on the books, records and accounts of an enterprise or on a certificate or document of title that evidences property rights, and includes any governmental agency, business entity or transfer agent that issues certificates of ownership or title to property and a person acting as a custodial agent for an owner's

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS A TRANSACTIONAL REAL ESTATE ATTORNEY?

Transactional Real Estate Law January 17, 2013, By Guest Blogger By Troy A. Rule, Associate Professor of Law Almost every successful company needs physical space in which to operate. Consequently, businesses of all kinds are routinely engaged in buying, selling, developing, or leasing real property. Whether the space involved is a small warehouse or a towering office building, such transactions typically require the involvement of attorneys. In the largest real estate transactions, literally dozens of attorneys may have a role to play in ensuring that the interests of each party to the deal are adequately represented. A typical commercial real estate purchase and sale transaction involves several different parties, each of which often has independent legal representation. Attorneys for the buyer of the property help to negotiate the Purchase and Sale Agreement, which will generally govern the transaction itself. Attorneys for the buyer also often help to negotiate documentation for the large loan that the buyer will use to fund its purchase of the property. In some cases, the buyer’s legal counsel even conducts a detailed “due diligence” review of the property to verify that the property will sufficiently serve the buyer’s needs. Of course, the buyer is just one of many parties to the transaction. Sellers of commercial real estate also rely on attorneys to help negotiate the terms of the Purchase and Sale Agreement and the many other documents that are required to close the sale. Banks commonly use legal counsel to help negotiate and draft documents associated with the buyer’s purchase loan. Title insurance and property insurance companies are often involved in real estate transactions as well, and they may use attorneys to represent their interests in some cases. Even local governments often engage attorneys to assist in negotiations or in the project approval process for large private development projects. Transactional real estate law can be an extremely rewarding practice area, affording opportunities to play crucial roles in transactions that can create significant value for all of the parties involved. Often, after the closing of a large real estate transaction, the parties on all sides of the deal hold a party or exchange congratulatory e-mails to celebrate the success of the deal. In many instances, transactional real estate attorneys are able to practice for several years without ever having to set foot in a courtroom, take a single deposition, or draft a single complaint or brief. Law students interested in pursuing careers in transactional real estate law should consider joining the law school’s Real Estate Law Society, where they can meet other students with similar interests and get information about law school events and employment opportunities in this area. Although the basic Contracts and Property courses in the first year curriculum expose students to some of the issues that arise in the context of a real estate transaction, the law school offers numerous other courses that explore these topics in much more detail and can better prepare students for this area of practice. In particular, upper-level courses such as Real Estate Transactions, Real Estate Finance, Land Use Controls, Natural Resources Law, Secured Transactions, and Commercial Real Estate Leasing cover topics relating to this substantive area. Students should also feel free to contact Professor Wilson Freyermuth or me anytime with questions about career opportunities in transactional real estate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

AN AGENTS VIEW OF FSBO

In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their homes on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers. Here are the top five reasons: 1. Exposure to Prospective Buyers Recent studies have shown that 94% of buyers search online for a home. That is in comparison to only 16% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you? 2. Results Come from the Internet Where did buyers find the homes they actually purchased? 51% on the internet 34% from a Real Estate Agent 8% from a yard sign 1% from newspapers The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial. 3. There Are Too Many People to Negotiate With Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale by Owner: The buyer who wants the best deal possible The buyer’s agent who solely represents the best interest of the buyer The buyer’s attorney (in some parts of the country) The home inspection companies, which work for the buyer and will almost always find some problems with the house The appraiser if there is a question of value 4. FSBOing Has Become More And More Difficult The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years. The 8% share represents the lowest recorded figure since NAR began collecting data in 1981. 5. You Net More Money When Using an Agent Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission. Studies have shown that the typical house sold by the homeowner sells for $185,000, while the typical house sold by an agent sells for $245,000. This doesn’t mean that an agent can get $60,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense. Bottom Line Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO VS AGENT?

Have you seen the claim that “research shows” that real estate agents sell homes for 13% higher prices than people who sell their homes themselves? Does that seem right to you? I wouldn’t be surprised if real estate agents sold homes for prices that are a few percentage points higher than homes sold directly by homeowners but 13% more didn’t seem plausible to me. So being a trained economist, in addition to being a real estate agent the last 12 years, I decided to track down the origin of this beloved real estate agent data point. Note: A home the owner is selling directly to buyers without using a real estate agent is called a “For Sale By Owner” or “FSBO” by real estate agents. Can a real estate agent really sell your house for 13% more than you can? If you’re FSBO-curious and looking into your options for selling your house, this is a hugely important question for you. If a real estate agent could actually sell your house for 13% more than you could yourself, then your decision is made. People would never sell their houses themselves, they’d always hire a real estate agent and get, on average, 13% more. But if, on the other hand, that 13% number is an exaggeration, you’d want to know that when you’re deciding whether to sell your house yourself or to hire an agent. You need accurate information to make good choices. Unfortunately, if you’re researching your options online, you’ll run into a lot of disinformation about selling your house yourself. Clearly, for some people, selling their homes themselves is a good option. Around 500,000 houses a year in the United States are, in fact, sold directly from seller to buyer. My goal here is to give you accurate information to help you make the best decision possible for you and your family. Eureka! That didn’t take long! I quickly found the origin of our real estate agent myth. The National Association of REALTORS® loves this paragraph, they highlighted it in a recent report (2014 Profile of Home Buyers and Sellers, National Association of REALTORS®); “FSBOS TYPICALLY HAVE A LOWER MEDIAN SELLING PRICE: $208,700 COMPARED TO $235,000. THUS THE TYPICAL AGENT-ASSISTED HOME SALE TYPICALLY HAS A 13 PERCENT HIGHER SALES PRICE THAN THE TYPICAL FSBO SALE.” Did you, by any chance, happen to get the idea from that quote that if you hire a real estate agent to sell your house, you can expect it to sell for 13% more than if you sold it yourself? If you did think that, you’re certainly not alone. Here’s an advice column on Realtor.com. “However, statistics show that selling your home with the assistance of a professional real estate agent will garner you a higher profit, enough to cover the commission as well as put more money in your pocket.” And here are some too typical quotes from four different real estate agent websites. “Did you know that home sellers that use a real estate professional on average get 16% more in the sale of their home?” “Even after commissions, statistics show that listing your home with a professional versus trying to sell by owner (FSBO) results in not only a faster sale but more money for the seller.” “Plus, sellers who use an agent usually make more on their home sale, even after paying an agent’s commission.” “I know, you might hesitate to use a realtor to avoid those commissions but did you know studies show most FSBO’s get less for their property than if they used a realtor (even after accounting for commissions)?” And check out this detail of an infographic that appears on many real estate agent websites. Don’t miss the disclaimer in the small print at the bottom. The disclaimer tells me they know they’re being misleading. Misleading Claim It’s clear the National Association of REALTORS® (NAR) is misleading many people into believing that NAR studies prove real estate agents can sell homes for 13% more than homeowners. (Non-NAR members can buy the full NAR report for $250.) The National Association of REALTORS® gives us a clue to one weird trick behind the highlighted “13%” number with this quote, “FSBO sales are more likely than agent-assisted sales to be a mobile or manufactured home. Nine percent of all FSBO sales are mobile homes compared to only three percent of agent-assisted sales.” (The accompanying table, however, shows agent-assisted sales to only be 2%.) Unnecessarily including mobile and manufactured homes into the mix really skews their results against FSBOs. When my imagination runs away with itself, I interpret that to mean, “We could have published a comparison using single-family detached homes only (no mobile homes) but the difference between agents and FSBO’s wasn’t as big so we didn’t publish that.” Cheap FSBOs vs. Luxury FSBOs By the way, you might think because of all the money to be saved that FSBOs would be a lot more popular with luxury home sellers, but they’re not. FSBO’s tend to be more common with less expensive homes. When a home is priced less than a used Range Rover, it’s more likely to be sold like a used car too. Or like my friend Dean says it in a comment below, “Who is more likely to sell a car on their own, the Ford Escort owner or the Bentley owner?” And if you have a $10,000 mobile home, good luck trying to find a real estate agent to help you sell it. The Whole Geeky Truth The whole geeky truth isn’t that real estate agents can sell homes for more money, it’s that FSBOs tend to be more popular with inexpensive homes (mobile homes, manufactured homes and condos) and in inexpensive areas (rural areas, small towns and the Midwest). It’s as if one real estate agent told another; “I’M A BETTER AGENT THAN YOU BECAUSE I SELL HOMES FOR HIGHER PRICES THAN YOU.” And the other agent said; “YOU ONLY SELL SINGLE FAMILY HOMES AND I SELL SINGLE FAMILY HOMES AND CONDOS SO, OF COURSE, MY AVERAGE SALE PRICE WILL BE LOWER THAN YOURS. THAT DOESN’T MEAN YOU’RE BETTER THAN ME AT SELLING HOMES.” If the National Association of REALTORS® wanted to better prove their members could sell homes for more than FSBOs, they could easily publish a comparison of the median sale prices of homes sold with and without agent assistance – and here’s the important part – for single-family detached homes (only) in one region or state (only). I bet in such a single-family-homes-only study that more than half that 13% difference would disappear. NAR no doubt has that data, they just don’t publish it. (I wonder if total mayhem would break out in the NAR lunchroom, if NAR economists tried to publish a number that was less than the magic 6%.) But even a study like that wouldn’t remove all anti-FSBO bias. For example, within the Midwest, FSBOs will likely to be more popular in rural/small towns where home prices tend to be cheaper. The Ideal Study The ideal study, I think, would be to compare the sale prices of similar units within condo complexes. I’ve never seen such a study but here’s a study that in some ways is even better. “The Relative Performance of Real Estate Marketing Platforms: MLS Versus FSBOMadison.com,” Hendel, Nivo and Ortalo-Magne (2007) Why this study is so good; It looked at single family homes only – it didn’t confuse things by adding in mobile and manufactured homes and condos and townhouses. It looked at only one area, Madison Wisconsin – it didn’t confuse things by combining different regions that have different home prices and different levels of FSBO popularity. It corrected for neighborhoods and house characteristics like square footage and number of bedrooms, which essentially means it compared the prices of FSBO and non-FSBO sales of similar homes in similar neighborhoods. Nice! It had tons of data, 15,606 home sales were in its dataset. NAR Study vs. Madison, Wisconsin Study I was surprised by the results of the Madison study. I figured that since FSBOs were saving around 6% on real estate agent commissions that FSBOs would sell for a bit less than homes sold by real estate agents. But that’s not what the Madison, Wisconsin study showed. They found 0% difference in home sold prices between agents and FSBOs. (You can find the full economic study here.) There’s no conflict between the two studies The NAR study simply says cheaper homes are more likely to be sold as FSBOs. The Madison, Wisconsin study simply says real estate agents in Madison, Wisconsin didn’t sell their clients’ homes for more than FSBOs sold theirs. NAR’s Response I’d characterize NAR’s response to the Madison, Wisconsin study as “What happens in Madison, stays in Madison,” meaning the Madison, Wisconsin real estate market is unique and the facts on the ground there don’t reflect reality in other cities or in the United States as a whole. There’s some truth to that argument. I’d point out that Madison had an unusually popular FSBO website, FSBOMadison.com, and a relatively large FSBO market share, 14% of all homes sold were sold as FSBOs. Areas with smaller, less developed FSBO markets might fare differently. NAR doesn’t mention this but the State of Wisconsin publishes a free real estate sales contract form that both agents and FSBOs use. That simplifies the paperwork a bit for Wisconsin FSBOs. Nevertheless, until I see equally precise economic studies from other cities or states that show a different result, for me, the “research shows” that, on average, real estate agents don’t sell homes for more than FSBOs. 1 Pinocchio So I concluded that this favorite talking point of Team Real Estate Agent is – I’ll be polite here – misleading. Anyone who tells you that real estate agents sell homes for 13% more than FSBOs is selling you. But let’s not get carried away here. Even though the internet is filled with disinformation about FSBOs that doesn’t mean selling FSBO is a good choice for most people. In fact, I personally believe that hiring a real estate agent to sell your house is still the best option for a large majority of people. I also believe, on the other hand, that as more people get accurate information about FSBOs, that more people will go FSBO and more people will be successful selling their homes FSBO. FSBOs are only 9% of U.S. home sales. Even if they grow, they’ll still be small. FSBOs aren’t a threat to the other 91% of the market. Takeaway Hiring a real estate agent doesn’t make you money, it saves you a lot of work and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MARRIAGE AND REAL ESTATE

Did you know that it matters whether or not a person is married when they are buying or selling a house? In Missouri, married people have marital rights to any property owned by their spouses. What does this mean for you as a buyer or seller or for your clients if you’re an agent? A married buyer can purchase property without their spouse. A married seller cannot sell property without their spouse because: Both spouses have a share of ownership in the property, so Both spouses must sign the warranty deed regardless of who took title. For example, Sam and Alex are married. Sam bought the property alone and Alex’s name is not on the warranty deed. However, because they are married, Alex still has an interest in the property and both Sam and Alex will have to sign the warranty deed to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

6 TYPES OF HOME LOANS

If you're shopping for a home, odds are you should be shopping for a home loan as well—and these days, it's by no means a one-mortgage-fits-all model. Where you live, how long you plan to stay put, and other variables can make certain home loans better suited to your circumstances, and choosing wisely could save you a bundle on your down payment, fees, and interest. Fixed-rate loan The most common type of loan, a fixed-rate loan prescribes a single interest rate—and monthly payment—for the life of the loan, which is typically 15 or 30 years. Right for: Homeowners who crave predictability and aren't going anywhere soon. You pay X amount for Y years—and that's the end. The rise and fall of interest rates (like the nationwide increase that followed the Fed's action in December) won't change the terms of your loan, so you'll always know what to expect. That said, they're best for people who plan to stay in their home for at least a good chunk of the life of their loan; if you think you'll move fairly soon, you may want to consider the next option. Adjustable-rate mortgage ARM loans offer interest rates typically lower than you'd get with a fixed-rate loan for a period of time—such as five or 10 years. But after that, your interest rates (and payments) will adjust, typically once a year, roughly corresponding to current interest rates. So if interest rates shoot up, so do your monthly payments; if they plummet, you'll pay less. Right for: Home buyers with lower credit scores. Since people with poor credit typically can't get good rates on fixed-rate loans, an ARM can nudge those interest rates down enough to put homeownership within easier reach. These loans are also great for people who plan to move and sell their home before their fixed-rate period is up and their rates start vacillating. FHA loan While typical loans require a down payment of 20% of the purchase price of your home, with a Federal Housing Administration loan, you can put down as little as 3.5%. Right for: Home buyers with meager savings for a down payment. These loans come with several caveats. First, most loans are limited to $417,000 and don't provide much flexibility: Rates are typically fixed, with either 15- or 30-year terms. Buyers are also required to pay mortgage insurance—either upfront or over the life of the loan—which hovers around 1% of the cost of your loan. VA loan If you've served in the United States military, a Veterans Affairs loan can be an excellent alternative to a traditional mortgage. If you qualify, you can score a sweet home with no money down and no mortgage insurance requirements. Right for: Veterans who've served 90 days consecutively during wartime, 180 during peacetime, or six years in the reserves. That said, the VA has strict requirements on the type of home you can purchase: It must be your primary residence, and it must meet “minimum property requirements" (that is, no fixer-uppers allowed). USDA loan USDA Rural Development loans are designed for families in rural areas. The government finances 100% of the home price—in other words, no down payment necessary—and offers discounted interest rates to boot. Right for: Families in rural areas who are struggling financially. These loans are designed to put homeownership in their grasp. The catch? Your debt load cannot exceed your income by more than 41%, and, like the FHA loan, you will be required to purchase mortgage insurance. Bridge loan Also known as a gap loan or “repeat financing," a bridge loan is an excellent option if you're purchasing a home before selling your previous residence. Lenders will wrap your current and new mortgage into one payment; once your home is sold, you pay off that mortgage and refinance. Right for: Homeowners with excellent credit and a low debt-to-income ratio, and who don't need to finance more than 80% of the two homes' combined value. Meet those requirements, and this can be a simple way of transitioning between two houses without having a meltdown—financially or emotionally—in the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOUSING TRENDS SINCE 1950: THE DIFFERENCE WILL SHOCK YOU

Housing Trends Since 1950: The Difference Will Shock You For the last few years, home buyers have done battle with some challenging housing trends: fewer homes to choose from, rising prices, and increasing competition with buyers willing to go to great lengths to close the deal on the homes they want. That’s a huge change from the conditions buyers and owners faced just a few years ago. For several years beginning in 2007, home values dropped nationwide and millions of homeowners suddenly owed more on their homes than they could sell them for—if they could sell them at all. Over the last four years, home values and the market have slowly recovered. The latest reports from the National Association of Realtors (NAR) show that home prices now exceed levels set at the housing market’s previous peak in 2006. Are we looking at another housing bubble? There’s no way to know for sure until the bubble bursts. Either way, it’s worth understanding the decades-long house price trends that led up to the housing meltdown—and refresh our memories about the lessons we learned during those tough times. A Quick History of House Price Trends Let’s start by looking at the U.S. Census Bureau figures for housing prices over the decades. In 1950, the median home price was just $7,354. Wow! Fast-forward 50 years, and the median home price was $119,600. The median existing home price reported by the NAR has surpassed the record of $230,400 set in 2006 to $236,400 today. Adjusting those numbers for inflation gives us some perspective. The median price for a home in 1950 in inflation-adjusted dollars was $44,600, according to the Census Bureau. Compared to the current median price, that’s an increase of almost $192,000 in 67 years! One driver of home prices is size. In 1950, the average home size was less than 1,000 square feet with two bedrooms and one bath, according to the NAR. By the early 1970s, the average home had increased to 1,500 square feet. Today, the median new home size is nearly 2,500 square feet, with most homes featuring at least four bedrooms and three or more baths, the Census Bureau reports. And all this is in spite of the fact that family size decreased from 3.37 members in 1950 to 2.5 members in 2016. Easy Money! So how were we able to buy these bigger (and bigger) homes? For the most part, changes in the mortgage industry allowed home buyers to borrow more and spread their payments out over a longer period of time. In the 1930s, mortgages had variable interest rates, required high down payments, and only had five- to 10-year terms. The maximum amount a home buyer could borrow was 50% of a home’s value. A series of changes brought about by the Great Depression and World War II resulted in the long-term, fixed-rate mortgage we’re familiar with today. By the mid-1950s, the maximum mortgage term was 30 years and buyers could finance up to 95% of their home’s value. Over time, mortgage lending standards loosened even more. In the years leading up to the housing bubble in 2007, home buyers could borrow more than their home’s value with a low or no down payment. The adjustable-rate mortgage came back into popularity with buyers who didn’t qualify for fixed-rate loans. What Did We Learn from These Housing Trends? And this is where we learn our lesson: Just because you can do something doesn’t mean you should. Lenders and home builders are in the housing industry to make money. They changed their practices and products to give us what we said we wanted. We fell victim to our own stuffitis and bought homes that cost too much, and we borrowed too much money to do it. When you’re ready to buy a new home, remember that a bigger house doesn’t mean you’ll be happier. You’ll get the most satisfaction out of living within your means. Whether that means 1,000 square feet or 5,000, only you can decide. Keep your stuffitis in check, and you’ll make the right

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TOP TIPS FOR FILING A MECHANICS LIEN IN MISSOURI

Drafting a mechanic’s lien and “notice of intent” (§429.100) involves crucial steps that can be harmful to your case if overlooked. Whether you forgot to verify the “just and true account” (§429.080) of the amount due, or are unsure of the proper county for filing your lien, you can avoid these service errors by taking the time to learn the following steps involved in filing and drafting a mechanic’s lien in Missouri. Most importantly, the lien must be filed within six months from the last date of delivery of material or performing labor. Merely performing warranty work or punchlist work may not be sufficient to qualify as the “last date of work.” Therefore, be wary of calculating the last date of work from a date after the contracted work was substantially complete. If you are not under direct contract with the project owner, then you must serve a notice of intent to file a lien on the owner of the project at least ten days prior to filing the lien. You cannot determine the owner or property description effectively without a title report. Therefore, you need to obtain a title report well in advance of the six-month deadline so that you can properly prepare the notice. My suggestion is to order an Ownership and Encumbrances report. These generally cost around $200.00 and can be obtained in less than a week from a good title company. The notice of intent must contain four things: amount owed, from whom the amount is due, a property description, and the name of the claimant (RSMo. 429.100). The notice must be served on the owner of the property. The service on the owner is a critical element of the mechanic’s lien case. Service should be accomplished by personal service and the completed affidavit of service should be included in the legal file for the case. When drafting the mechanic’s lien and notice of intent, be sure to get the name of the owner of the property correct. If your client had a direct contract with the owner, then check the name of the owner on the contract itself. If the name on the title report is different from the name on the prime contract, assess the impact of this issue on your lien filing and consider naming the property owner with a “doing business as” designation as to the name on the prime contract. Finally, review the Missouri Secretary of State website (or other state’s websites) to verify that the entities in the title report and the prime contract actually exist and are known by the names in those documents. One of the most litigated issues with Missouri mechanic’s liens is the failure to include a “just and true account” of the amount due. In the case of a subcontractor, this means including information with sufficient detail to show itemized labor costs (hours of labor performed each day and rate) plus a complete description of materials, including quantity and cost (i.e. 16 qty. ¾” x 4’ x 8’ OSB Square Edge @ 10.00 each = $160.00). Many contractors will balk at providing this information as there is a concern that competitors will use this information to compete against them in the market place. My advice is to be very conservative in drafting a lien and supply detailed labor and material pricing information. What you do not want is to spend a lot in litigating a mechanic’s lien only to find out it was defective with the filing of the lien statement. There are numerous traps for the unwary in Missouri’s Mechanic’s Lien Statutes and caselaw. Knowing these traps and being prepared are only half the battle. Assuming you have a valid mechanic’s lien, you still need to litigate your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

5 TRICKS TO SAVE CASH ON REALTOR COMMISSIONS

The average 6 percent sales commission that most real estate agents get is a high price to pay, especially if you believe economists who say that realtors don’t sell homes for significantly more than the asking price. If you’re not getting much more money when using a real estate broker to sell your house, why use them? Expediency may be the best answer, since agents often sell homes faster than homeowners could on their own, according to a paper by Stanford University economists. The Stanford researchers also found that without the Multiple Listing Service, or MLS, that is available to real estate brokers, using a broker reduces the selling price of a typical home by 5.9 to 7.7 percent. A real estate company’s costs aren’t worth paying for, they found, when the MLS assistance is taken out of the realtor’s hands. But if you’re going to sell a home and want to pay for an agent’s expertise, there are ways to lower the fee. Here are some places to start: Go for half. The typical commission is 6 percent, which is split by the agent for the buyer and the agent for a seller—3 percent each. But it’s only paid by the home seller. If you’re selling your home and buying another with the same agent, they’ll collect that 3 percent twice. Tell your potential agent that you’ll give a 3 percent total commission for selling your house that the agents from each side can split, and your agent can work whatever deal he or she wants when they help you buy another home. For a $300,000 sale, it’s still a $9,000 commission for selling your house, but the realtors from each side will have to split it in half. Without cutting the commission in half, each realtor would get $9,000 twice—for selling and buying a $300,000 home. Yes, much of that would go to the agency, but it’s a hefty fee for a few weeks of work. Shop around. Interviewing three or more agents is a good way to find out if you get along with an agent and learn how they’ll sell your home. But Robert Papes, a North Carolina-based business consultant, took it a step further and had several companies bid for the chance to sell his home. He first asked them how many homes they sold in his price range in his area; how they would market his home; how much residential real estate their top seller sold; and the price they recommended putting his house on the market for to sell it in three months. Papes explained that each agent was competing with others. The lowest commission came from an agency that wasn’t his first choice. He went back to his first choice and asked if they would meet the competitor’s bid, which they did, and he sold his home in three months at a 5 percent commission rate. Ask what you’re getting for your money. Like Papes, who searched for a realtor who had experience selling homes in his area and could sell his home within three months, asking an agent what services they offer is a way to find out if a commission is worth it. Ask how the agent justifies a higher commission and what they do that other, less expensive agents don’t do. Why should you pay more for their services? For luxury home sales, it can cost more to advertise in publications and websites for the wealthy, or the agent may have more contacts than a cheaper agent does. Hold out for a higher selling price. This tactic may not help you negotiate a lower sales commission with your agent, but it will help you at least pay for their services without subtracting their fee from your asking price. If a buyer offers close to the asking price on your home within the first week, the impulse is to take the offer. But as the experts at Freakonomics have so famously pointed out, the real estate agent has more to gain by selling your home quickly than by waiting an extra week for an offer $10,000 higher that meets your asking price. In this clip from the 2010 Freakonomics film, the extra $10,000 only gets the agent $300 more in commission—with half of the $300 going to the real estate agency. Earning an extra $150 isn’t much of an incentive, they point out. But if you, as the home seller, hold out for another week or so and get the higher price, the extra $10,000 is well worth your time. One real estate broker has an alternative that he says would help: Offering a 20 percent incentive for selling the house for more than the asking price, or 20 percent less in commission for getting less than the asking price. Find alternatives. Companies such as HelpUSell and ZipRealty offer alternatives to traditional real estate agents by selling services individually or for a flat fee to get your home on the MLS. Some agents, however, have been known to go out of their way to avoid showing those houses. Or sell the home yourself and hire a lawyer to do the paperwork. If you find a buyer who will still meet your asking price, you’ll both save thousands of dollars by not paying

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HAS THE INTERNET KILLED REAL ESTATE AGENTS YET?

Has the Internet killed real estate agents yet? Back in 2002 when I was first interested in buying a house, I went on the Internet and found lots of houses for sale, directly from the sellers. I bought the house I own right now directly from the seller. At the time, I was convinced that the days of real estate agents were counted. I remember telling a friend who wanted to go into real estate that the Internet would soon kill this industry. It made sense. Idiots like myself could buy houses from other idiots, that is people without any training in real estate, without any other intermediary than the Internet. How long could the real estate agents last? Real estate agents don’t inspect houses, they do not have power of attorney, they do not provide deeds, they do not provide the financing, they do not provide the insurance. Real estate agents may take the pictures and post them on the Internet, but iPhones take decent pictures. A home inspection (not covered by the agent’s fees) might cost you $300. A lawyer will charge you a flat fee to represent you in the transaction (maybe $1000, not covered by the agent’s fees). The bulk of the transaction costs are taken up by the real estate agent. Yet real estate agents are still with us, charging 5% in commission. That’s a sweet deal: sell a single home and you can charge half of what many people make in half a year. It hurts my ego to admit that I was badly wrong: the Internet has not affected real estate agents in the least. You’d think people would be eager to keep the commission fee for themselves (it is tens of thousands of dollars!). The Washington Post tell us that nothing of the sort is happening: And over the past decade, the Internet has disrupted almost every aspect of a transaction that sits at the core of the American Dream. Everyone now has free access to information that used to be impossible to find or required an agent’s help. But as a new home-buying season kicks off, one thing remains mostly unchanged: the traditional 5-to-6-percent commission paid to real estate agents when a home sells. While the Internet has pummeled the middlemen in many industries — decimating travel agents, stomping stock-trading fees, cracking open the heavily regulated taxi industry — the average commission paid to real estate agents has gone up slightly since 2005, according to Real Trends. In 2016, it stood at 5.12 percent. “There’s not a shred of evidence that the Internet is having an impact,” Murray said, sounding like he almost can’t believe it himself. The article argues that the sale of a home is a complicated transaction. Oh! Come on! That’s a pathetic explanation: planning a trip abroad is complicated and, yet, we have no qualm doing away with travel agents and using the Internet instead. Of course, the transaction cost is higher which makes it worthwhile to pay someone to help. But 5% of the transaction is lot. In Canada, that’s about $25,000 to sell a single house (5% of $500,000): the price of a brand new car. And selling and buying houses is really not that complicated. It is not $25,000-complicated. Recall that real estate agents do not provide home inspection, insurance, financing, legal titles… all of these things are separate expenses provided by separate people. Whether real estate agents have expenses, and how much of the 5% they pocket is irrelevant. The fact is that this 5% has remained the same for decades. This means that, in real dollars, real estate agents cost the same today as they did decades ago. To put it another way, the productivity of real estate agents has, if anything, decreased in recent decades despite all the technological progress. In comparison, all industries confounded, productivity grows by about 1% a year. That’s why Americans, on average, are much richer than they were decades ago. On average, workers are at least 20% more productive today than they were 20 years ago. But not real estate agents. Another way to describe a stagnation or decline in productivity is to say that real estate agents, despite all their new tools, are not getting any better over time, and are probably getting slightly worse since their cost is rising. They have cheap mobile phones, the Internet, databases, fancy software… all of that has not, in the least, made them more productive. How well do the real estate agents serve the interest of their clients? Maybe not so well: Those selling without an estate agent were more satisfied and the gap between sales price and asking price was smaller than for those selling through a real estate broker. (Stamsø, 2015) Our central finding is that, when listings are not tied to brokerage services, a seller’s use of a broker reduces the selling price of the typical home by 5.9% to 7.7%, which indicates that agency costs exceed the advantages of brokers’ knowledge and expertise by a wide margin. (Bernheim and Meer, 2012) Many real estate agent recommend that sellers lower their prices (thus making their job much easier) on the belief that buyers are going to bid on the house. Yet this is a terrible strategy for their clients: While the (…) recommendations of real estate agents (…) favor underpricing, alluding to a potential herding effect, our market data do not provide any support for this strategy. (Bucchianeri and Minson, 2013) Can you do better with a cheap, flat-fee broker? It seems you can: Brokers with a flat-fee structure who charge an up-front fee (which is substantially lower than the average fee of traditional brokers) and leave the viewings to the seller sell faster and at – on average – 2.7 percent higher prices. (Gautier et al. 2017) So knowing all this… why hasn’t the Internet at least forced the real estate agents to lower their commission fees? If Uber was able to break the cab driver’s back, why can’t we come up with the equivalent for real estate? I have nothing against real estate agents, I am just curious. And please, don’t tell me it is the “human element”. People don’t go around hugging their real estate agents, not any more than they hugged their travel agents. Update: A comment by Panos Ipeirotis suggests that travel booking sites also charge a large percentage (15%-20%) on hotel reservations while AirBnB charges 6% to 12%. This would mean that real estate agents might not be such outliers. I went looking for signs that travel agents had disappeared and it seems that there are still many of them, though their work was transformed over time. This makes me question the belief that “the Internet has pummeled the middlemen in many industries” as stated in the Washington

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TENANTS IN COMMON VS. JOINT TENANTS

What's the Difference Between Joint Tenancy and Tenancy in Common? When two or more people own a home, either as a joint tenancy or tenancy in common, each individual owns a share (or interest) of the entire property. This means that specific areas of the house are not owned by any one individual, but instead, are shared as a whole. While joint tenants are similar to tenants in common in many ways, particularly with regard to their right of possession to a given property, there are some important differences. Tenancy in Common While none of the owners may claim a specific area of the property, tenants in common may have different ownership interests. For instance, Tenant A and Tenant B may each own 25 percent of the home, while Tenant C owns 50 percent. Tenancies in common also may be obtained at different times; so an individual may obtain an interest in the property years after one or more other individuals have entered into a tenancy in common ownership. Joint Tenancy Joint tenants, on the other hand, must obtain equal shares of the property with the same deed, at the same time. The terms of either a joint tenancy or tenancy in common are spelled out in the deed, title, or other legally binding property ownership document. The default ownership characterization for married couples is joint tenancy in some states, and tenancy in common. A joint tenancy can be broken if one of the tenants transfers or sells his or her interest to another person, thus changing the ownership arrangement to a tenancy in common for all parties. However, a tenancy in common can be broken if one or more co-tenants buy out the others; if the property is sold and the proceeds distributed amongst the owners; or if a partition action is filed, which allows an heir to sell his or her stake. At this point, former tenants in common can choose to enter into a joint tenancy via written instrument if they so desire. This type of holding title is most common between husbands and wives and among family members in general, since it allows the property to pass to the survivors without going through probate (saving time and money). Right of Survivorship One of the main differences between the two types of shared ownership is what happens to the property when one of the owners dies. When a property is owned by joint tenants, the interest of a deceased owner automatically gets transferred to the remaining surviving owners. For example, if three joint tenants own a house and one of them dies, the two remaining tenants each obtain a one-half share of the property. This is called the right of survivorship. Tenants in common have no rights of survivorship. Unless the deceased individual's will or other instrument specifies that his or her interest in the property is to be divided among the surviving owners, a deceased tenant in common's interest belongs to the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE AMERICAN DREAM

In 2007, the U.S. economy entered a mortgage crisis that caused panic and financial turmoil around the world. The financial markets became especially volatile, and the effects lasted for several years (or longer). The subprime mortgage crisis was a result of too much borrowing and flawed financial modeling, largely based on the assumption that home prices only go up. Greed and fraud also played important parts. The American Dream Owning a home is part of the “American Dream.” It allows people to take pride in a property and engage with a community for the long term. However, homes are expensive (at hundreds of thousands of dollars — or more), and most people need to borrow money to buy a home. In the early 2000s, that dream came into reach for a record number of people. Mortgage interest rates were low, allowing consumers to get relatively large loans with a lower monthly payment (see howpayments are calculated to see how low rates affect payments). In addition, home prices increased dramatically, so buying a home seemed like a sure bet. Lenders believed that homes made good collateral, so they were willing to lend against real estate and earn revenue while things were good. Cashing Out Things were good forfirst-time home buyers, but existing homeowners also benefited from easy money and low rates. With home prices skyrocketing, homeowners found enormous wealth in their homes. They had plenty of equity, so why let it sit in the house? Homeowners refinanced and took second mortgages to get cash out of their homes' equity. Some of this money was spent wisely (on improvements to the property securing the loan). However, some homeowners used the money for living expenses and other needs, keeping a comfortable standard of living while wages stayed stagnant. Easy Money Before the Mortgage Crisis Banks offered easy access to money before the mortgage crisis emerged. Borrowers got into high-risk mortgages such as option-ARMs, and they qualified for mortgages with little or no documentation. Even people withbad credit could qualify as subprime borrowers. Risky borrowers:Borrowers were able to borrow more than ever before, and individuals with low credit scores increasingly qualified assubprimeborrowers. Lenders approved “no documentation” and “low documentation” loans, which did not requireverificationof a borrower’s income and assets (or verification standards were relaxed). Risky products:In addition to easier approval, borrowers had access to loans that promised short-term benefits (with long-term risks). Option-ARM loans allowed borrowers to makesmall paymentson their debt, but the loan amount might actually increase if the payments were not sufficient tocover interest costs. Interest rates were relatively low (although not at historic lows), so traditionalfixed-rate mortgagesmight have been a reasonable option. Fraud:Lenders were eager to fund purchases, but some home buyers and mortgage brokers added fuel to the fire by providing inaccurate information on loan applications. As long as the party never ended, everything was fine. Once home prices fell and borrowers were unable to afford loans, the truth came out. Sloshing Liquidity Where did all of the money for loans come from? There was a glut of liquidity sloshing around the world — which quickly dried up at the height of the mortgage crisis. People, businesses, and governments had money to invest, and they developed an appetite for mortgage-linked investments as a way to earn more in a low-interest rate environment. Secondary markets:Banks used to keep mortgages on their books. If you borrowed money from Bank A, you’d make repayments to Bank A, and they’d lose money if you defaulted. However, banks now sell your loan, and it may be further divided and sold to numerous investors. These investments are extremely complex, so many investors just rely onrating agencies to tell them how safe the investments are (without really understanding them). Because the banks and mortgage brokers did not have any skin in the game (they could just sell the loans before they went bad), loan quality deteriorated. There was no accountability or incentive to ensure borrowers could afford to repay loans. Early Stages of Crisis Unfortunately, the chickens came home to roost and the mortgage crisis began to intensify in 2007. Home prices stopped going up at a breakneck speed, and prices started falling in 2006. Borrowers who bought more home than they could afford eventually stopped making mortgage payments. To make matters worse, monthly payments increased onadjustable rate mortgages as interest rates rose. Homeowners with unaffordable homes were left with few choices. They could wait for the bank toforeclose, they could renegotiate their loan in aworkout program, or they could just walk away from the home anddefault. Of course, many also tried to increase their income and cut expenses. Some were able to bridge the gap, but others were already too far behind and facing mortgage payments that simply weren’t sustainable. Traditionally, banks could recover the amount they loaned at foreclosure. However, home valuesfell to such an extent that banks increasingly took hefty losses on defaulted loans. State laws and the type of loan determined whether or not lenders could try tocollect any deficiencyfrom borrowers. The Plot Thickens Once people started defaulting on loans in record numbers (and once the word got around that things were bad), the mortgage crisis really heated up. Banks and investors began losing money. Financial institutions decided to reduce their exposure to risk very quickly, and banks hesitated to lend to each other because they didn’t know if they’d ever get paid back. Of course, banks and businesses need money to flow to operate smoothly, so the economy came to a grinding halt. Bank weakness (and fear) caused bank failures. The FDIC ramped up staff in preparation for hundreds of bank failures caused by the mortgage crisis, and some mainstays of the banking world went under. The general public saw these high-profile institutions failing and panic increased. In a historic event, we were reminded thatmoney market funds can “break the buck.” Other factors contributed to the severity of the mortgage crisis. The US economy softened, and higher commodity prices hurt consumers and businesses. Other complex financial products started to unravel as well. Lingering Effects Lawmakers, consumers, bankers, and businesspeople scurried to reduce the effects of the mortgage crisis. It set off a dramatic chain of events and will continue to unfold for years to come. The public got to see “how the sausage is made” and was shocked to learn how leveraged the world is. The lasting effect for most consumers is that it’s more difficult to qualify for a mortgage than it was in the early-to-mid 2000s. Lenders are required to verify that borrowers have the ability to repay a loan — you generally need to showproof of your incomeand assets. The home loan process is now more cumbersome, but hopefully, the financial system is healthier than

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

IS ANOTHER HOUSING BUBBLE ABOUT TO BURST?

When an average $1 million home goes on the market in Santa Clara, Calif., it can reel in 20 offers. Quickly, and without batting an eye. “As long as high-tech companies keep bringing people here from all over the world and paying them, high prices will continue,” says Brett Burns, a broker with San Jose-based Climb Real Estate. “If Google uprooted and set up shop in Texas, maybe that would make a big splash, but I don’t see a plateau as long as demand keeps getting fed.” Median home prices across the nation have been increasing with gusto, though perhaps not at levels as staggering as San Jose’s median price tag of $1,183,400. In the second quarter of 2017, prices jumped by 6.2 percent compared with the same period in 2016 to an average cost of $258,300, according to the National Association of Realtors. While trends diverge profoundly from place to place — for all sorts of economic, geographical and lifestyle reasons — a good many of the nation’s metropolitan locales have experienced record appreciation. Coupled with inventory that is 9 percent lower than it was in 2016 and income that has not kept up with prices, the natural post-recession question arises. One decade after the biggest housing collapse in America’s history led to a global recession, could we be facing another crisis? “Not happening,” says Burns, adding that the 2007 housing crash “was based on lending practices which have since been cleaned up.” Many industry experts agree. The subprime mortgages that targeted borrowers with less-than-perfect credit and led to financial turmoil 10 years ago do not play a role in today’s real estate market. “When you talk about a bubble, you think of people being really exhilarated and excited and prices going way up. We don’t see that now,” says Annie Cion Gruenberger, who has been a New York City broker with Warburg Reality for 28 years. “We have a very positive market, but a targeted market of smart buyers.” So what do high price tags and low supply mean, if not economic catastrophe?” The 2007 collapse spooked home builders so much, they didn’t want to build anything but high-end properties. That drove up house prices and made it harder for people to buy starter homes. Meanwhile, the market was split into two halves: places such as Las Vegas, where development was overstretched and unsustainable, and which is still struggling to bounce back; and places such as Portland, Ore., and Silicon Valley, where NIMBY regulations limit how much construction can happen, meaning fewer homes available to buy. As a result, there’s a real lack of housing where the jobs are. While cities such as Seattle, Denver, San Francisco and Austin show double-digit spikes in house prices, cities such as South Bend, Ind., Baton Rouge, La., and Atlantic City report dwindling numbers. On average, 87 percent of the 150 housing markets tracked by NAR experienced rising prices in 2016, up from an average of 75 percent in 2014. In areas that were hard hit by the housing bubble, current market trends vary, and not all of the data is rosy. In Tampa, Fla., thousands of homes have been lost to foreclosure during the past decade. Today, the city appears to be recovering. It has the fourth-highest population growth in the country, adding 61,000 residents last year, according to the US Census. Tampa’s July unemployment rate was 4.1, reports the Bureau of Labor Statistics, and the median house price is $244,500, which is just about the national average. In the extreme case, there is Vegas, which suffered the highest foreclosure rate in the country following the housing crash. Though sales and prices have been edging back, thousands of people are still reeling. Those who borrowed against their homes or bought at the height of the market may not see a return on their initial investment. Some still owe more than their homes are worth, 15 to 20 percent by some estimates. Add to the mix a 6.4 percent unemployment rate and low-selling homes owned by investors, and a full recovery seems a tall order. In the middle, there are towns such as Westport, Conn., which has 31 more houses on the market today than it did last year and a median sale price that’s been fairly flat for the past two. “There is a wild price discrepancy here. If a $23 million home sells, it throws off all the numbers,” says Amy Swanson, agent with William Raveis Real Estate Estate in Westport. “But the forecast is for a .66 percent decrease in median price within 12 months.” The New York City market is brisk and definitely selling, according to Gruenberger, but buyers aren’t overpaying as they might be elsewhere around the country. “The $2 million-and-under market is very strong, but we are seeing a pushback of overinflated prices. Foreign buyers are not investing in the high-end condos, and people see these prices dropping. There is a trickle-down effect.” But the void left by foreign buyers no longer propping up the high-end market may not be filled by domestic buyers rushing to fill it. This gap could spell trouble down the road. In total, about 64 percent of Americans own their own homes, compared with 68 percent a decade ago. “I feel very fortunate to be able to afford our house,” says first-time buyer Greg Johnson, 30, of the property he and his wife, Molly Blank, 28, recently purchased in Seattle, where he works at a nonprofit bioscience research organization and she works at the University of Washington, Seattle. “We both really enjoy where we work and would rather not have to change our employers and work for a big company, or live in a different city, to be able to afford a house.” One problem prospective buyers face is that there aren’t enough houses out there for everyone who wants one. (Among these home seekers are the so-called “Boomerang Buyers” who are getting back into the market after post-recession trepidation.) This low housing stock drives prices up. In some cities, prices, even at the low end of a market where inventory is most scarce, are unaffordable for first-time buyers. (In the higher end of the market, there are houses to sell.) Thirty-two percent of home sales today are going to maiden purchasers, compared to 40 percent historically, says the NAR. Typically, this buyer is 32, earns $72,000 and pays $182,500 for a home. A two-income couple pays $208,500, on average. In certain areas, potential young homeowners, even with such salaries, have to forgo equity and continue to rent. But in places such as San Jose, first-time buyers have enough money to buy even overvalued property in the lower swath. “The job market is now good for millennials,” says Ken Fears, NAR’s director of regional economics and housing finance. “Competing with investors for homes at a low price point is easier. Some millennials have access to credit and to inventory, and mortgage rates are low. It’s improved, but not great.” Seattle, like San Jose and numerous other Northern California cities, draws this age group to its high-paying high-tech jobs. “They want to live close to downtown where their offices are, and first-time buyers can do that. They can afford $700,000 to $1 million on a starter home,” says Heather Dolin, broker with Seattle-based Windermere Real Estate. But competition for these homes is fierce, with just under a month’s supply of inventory available in the metro area. “Three to six months is considered a balanced market,” says Dolin. It would seem that the way to stability, then, simply requires more homes for people to buy. But houses are not a typical commodity. New ones can’t be produced from scratch, quickly and inexpensively, on an assembly line. Old ones can’t be made available when the market wants them to be. There are many reasons why inventory is low, most of which can’t be changed. NAR’s Fears points to a number of trends: First, homeowners are staying in place longer, limiting the number of existing homes for sale. Low unemployment rates are keeping them from leaving town in search of work. High home prices are inspiring them to remodel rather than relocate within their communities, if they want a different kind of house. First-time buyers who can afford it might buy a home that can accommodate two kids instead of one, precluding a move a couple years after their purchase. Grandparents are staying put to live near their kids, rather than flying off to retirement far away. Second, new construction is still springing back from the 2008 recession. Home builders have had a hard time keeping up with population growth since then, in most cities. “There was a high cost for dealing with regulation, a high lumber tax on Canadian framing lumber, a decline in the labor pool,” says Fears. But the construction industry has shown signs of life. In July, according to US Census Bureau and Department of Housing and Urban Development data, housing completions were 8.2 percent higher than they were one year ago, though 6.2 percent lower than they were in June. Even when they do build, developers are restricted by urban planning and geography, in certain states more than others. In Portland, Ore., cities are required by state law to form an urban growth boundary around its perimeter, controlling expansion onto farm and forest lands. “Since about 2009, a lot of areas inside the boundary have been dormant,” says Victor Bulbes, broker with Keller Williams. “Builders have been reluctant to get back in the game.” The Portland metro area, like other Western cities, is popular, with a record low 4 percent unemployment rate and stable population growth. Since 2010, the city has grown 8.3 percent, according to US Census data. Lifestyle preference also drives the market. In Denver, where the number of available houses has plummeted in the last seven years from 12,000 to 2,000 and median prices grow by around 9 percent annually, most people want to live in the urban core, says David Schlichter, Denver-based broker with Keller Williams’ The Schlichter Team. “There is definitely plenty of land here, at the base of the mountains, next to the foothills. There is some development in the outskirts, but where people want to be, in the city, there is only finite space.” From 2012 to 2015, with the exception of 2014, Denver experienced double-digit price appreciation. “It will taper off,” says Schlichter. “You can’t have that in perpetuity because at some point, another city becomes more attractive. Now, there are way more people moving here than leaving. Each week, I get a call from someone from the Bay Area who is fed up. Here, houses are half the price. To them, this is paradise.” Still, lingering fears from the past housing bubble and a present-day crisis in London, where astronomical prices mean young buyers are entirely locked out of the property ladder, are stoking concerns that market growth in the US could one day become unsustainable. In March, William Poole, a senior fellow at the Cato Institute, wrote a column for cnn.com, pointing to concerns about the country’s two biggest mortgage lenders, Fannie Mae and Freddie Mac. “In Freddie’s 2016 Annual Report, the agency says 36 percent of its obligations are ‘credit enhanced,’ meaning they carry mortgage insurance of one sort or another, which is typically used for weaker mortgages,” Poole wrote. “If these weak subprime mortgages begin to fail in large numbers, so also will the insuring companies.” Jonathan Miller, a real estate analyst at Miller Samuel, is unmoved by such arguments. He says the average buyer today has an average credit score “well above 700. They are some of the highest average credit scores in history.” He added that any subprime failures would be offset by the quality of most American borrowers being “unusually high.” For now, Schlichter in Seattle agrees. “Barring some calamitous event, I don’t feel that our local economy is threatened to the point that a bubble is about to burst,” he says, then added: “But we have a highly unpredictable president, and everything could change with a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW SOCIAL MEDIA IS BEING USED TO SELL REAL ESTATE

It’s crucial for home sellers and agents to remain active on social media Millennials now make up 66 percent of the market for first-time homebuyers, and 99 percent of those looking for homes use the internet to research properties. Still, these 30-something-and-under buyers are doing more than Googling a few keywords to find their dream homes. House hunters are now including property-related hashtags and social media feeds in their searches, and that’s only the tip of the iceberg. The second-largest search engine in the world, YouTube, is also being used to explore houses and communities. 86 percent of home shoppers say they would use video to learn more about a specific community they are considering. In this technology-driven age, it’s crucial for home sellers and agents to remain active on social media in order to nurture interest in newly listed properties. Real estate voyeurism will only continue to expand its channels across the web. How does a home seller use social media platforms like Instagram or Snapchat to move real estate? Facebook Imagine being able to show detailed listing information to every newlywed couple in their 30s within a 20-mile radius. While this would be impossible to execute in person, Facebook’s ability to target posts and ads to your core demographics are invaluable. 69 percent of real estate agents use Facebook because it works. Even when Facebook doesn’t deliver results, it still has top-of-the-line analytics that will help you understand what went wrong. Try writing posts about what sold you on the home initially. Share photos of your weekly grocery haul or your dog playing in the yard. Use the bandwidth Facebook gives you to paint a picture of what living in that home is really like. Chances are, it may resonate with a buyer. YouTube Among content types, 52 percent of marketing professionals claim that video content has the best return on investment. Uploading a neighborhood guide or home tour of your own could attract views from the curious (which will boost your online brand and reputation), in addition to making the listing easier for buyers to discover when they research the area. Most major markets now have qualified videography companies specializing in interior, exterior and drone footage of staged homes, helping sellers engage potential buyers before they commit to a walk-through. When 300 hours of video are uploaded to YouTube every minute, it’s essential to create content that differentiates you from the rest of the real estate crowd. Instagram What sets Instagram apart from other social media networks? It’s the ability to receive instant feedback on property and neighborhood photos. This is great for experimenting with different hashtags, captions or photography styles. You’ll know right away whether or not that Mayfair-filtered kitchen backsplash picture is resonating with your audience. Currently, Instagram is considered the fastest-growing social media platform, with 800 million monthly users. Make sure to max out your hashtags (you can have up to 30) to tap into that ever-expanding community. And invite people to join in a conversation by including questions in the photo captions—it’s great for staying relevant in a community saturated with content. Snapchat Snapchat may not offer much in the analytics department, but with 178 million daily users and counting, it can still have a big impact when it comes to selling your home. Each video and picture you send with the application disappears, meaning that there’s only a small window to create content that captures the homebuyer’s eye. Taking short day-in-the-life videos inside the home is a great place to start. It will help house hunters visualize what living in the space is like, while showing off the property’s amenities. As you start crafting social media posts about a listing, remember to follow the golden rule: Create content that you would want to read. Enthusiasm is contagious, even if it’s coming from a photo caption on Instagram. You never know when a potential homebuyer may be scrolling through your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS AN IMPLIED-IN-FACT CONTRACT?

An implied-in-fact contract is a form of an implied contract formed by non-verbal conduct, rather than by explicit words. The United States Supreme Court has defined it as "an agreement 'implied in fact'" as "founded upon a meeting of minds, which, although not embodied in an express contract, is inferred, as a fact, from conduct of the parties showing, in the light of the surrounding circumstances, their tacit understanding."[1] Although the parties may not have exchanged words of agreement, their conduct may indicate that an agreement existed. For example, if a patient goes to a doctor's appointment, his actions indicate he intends to receive treatment in exchange for paying reasonable/fair doctor's fees. Likewise, by seeing the patient, the doctor's actions indicate he intends to treat the patient in exchange for payment of the bill. Therefore, it seems that a contract actually existed between the doctor and the patient, even though nobody spoke any words of agreement. (They both agreed to the same essential terms, and acted in accordance with that agreement. There was mutuality of consideration.) In such a case, the court will probably find that (as a matter of fact) the parties had an implied contract. If the patient refuses to pay after being examined, he will have breached the implied contract. Another example of an implied contract is the payment method known as a letter of credit. Generally, an implied contract has the same legal force as an express contract. However, it may be more difficult to prove the existence and terms of an implied contract should a dispute arise. In some jurisdictions, contracts involving real estate may not be created on an implied-in-fact basis, requiring the transaction to be in writing. Unilateral contracts are often the subject matter of these types of contracts where acceptance is being made by beginning a specified

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REMEDIES FOR BREACH OF CONTRACT

What are the Remedies for Breach of Contract? There are several remedies for breach of contract, such as award of damages, specific performance, rescission, andrestitution. In courts of limited jurisdiction, the main remedy is an award of damages. Because specific performance and rescission are equitable remedies that do not fall within the jurisdiction of the magistrate courts. What Damages Can Be Awarded? There are two general categories of damages that may be awarded if a breach of contract claim is proved. They are: 1. Compensatory Damages. Compensatory damages (also called “actual damages”) cover the loss the nonbreaching party incurred as a result of the breach of contract. The amount awarded is intended to make good or replace the loss caused by the breach. There are two kinds of compensatory damages that the nonbreaching party may be entitled to recover: A. General Damages. General damages cover the loss directly and necessarily incurred by the breach of contract. General damages are the most common type of damages awarded for breaches of contract. Example: Company A delivered the wrong kind of furniture to Company B. After discovering the mistake later in the day, Company B insisted that Company A pick up the wrong furniture and deliver the right furniture. Company A refused to pick up the furniture and said that it could not supply the right furniture because it was not in stock. Company B successfully sued for breach of contract. The general damages for this breach could include: • refund of any amount Company B had prepaid for the furniture; plus • reimbursement of any expense Company B incurred in sending the furniture back to Company A; plus • payment for any increase in the cost Company B incurred in buying the right furniture, or its nearest equivalent, from another seller. B. Special Damages. Special damages (also called “consequential damages”) cover any loss incurred by the breach of contract because of special circumstances or conditions that are not ordinarily predictable. These are actual losses caused by the breach, but not in a direct and immediate way. To obtain damages for this type of loss, the nonbreaching party must prove that the breaching party knew of the special circumstances or requirements at the time the contract was made. Example: In the scenario above, if Company A knew that Company B needed the new furniture on a particular day because its old furniture was going to be carted away the night before, the damages for breach of contract could include all of the damages awarded in the scenario above, plus: • payment for Company B’s expense in renting furniture until the right furniture arrived. 2. Punitive Damages. Punitive damages (also called “exemplary damages”) are awarded to punish or make an example of a wrongdoer who has acted willfully, maliciously or fraudulently. Unlike compensatory damages that are intended to cover actual loss, punitive damages are intended to punish the wrongdoer for egregious behavior and to deter others from acting in a similar manner. Punitive damages are awarded in addition to compensatory damages. Punitive damages are rarely awarded for breach of contract. They arise more often in tort cases, to punish deliberate or reckless misconduct that results in personal harm. How are Compensatory Damages Calculated? The calculation of compensatory damages depends on the type of contract that was breached and the type of loss that was incurred. Some general guidelines are: Standard Measure. The standard measure of damages is an amount that would allow the nonbreaching party to buy a substitute for the benefit that would have been received if the contract had been performed. In cases where the cost of the substitute is speculative, the nonbreaching party may recover damages in the amount of the cost incurred in performing that party’s obligations under the contract. Contracts for the Sale of Goods. The damages are measured by the difference between the contract price and the market price when the seller provides the goods, or when the buyer learns of the breach. Are There Any Limitations on the Award of Compensatory Damages? An important limitation on the award of damages is the duty to mitigate. The nonbreaching party is obligated to mitigate, or minimize, the amount of damages to the extent reasonable. Damages cannot be recovered for losses that could have been reasonably avoided or substantially ameliorated after the breach occurred. The nonbreaching party’s failure to use reasonable diligence in mitigating the damages means that any award of damages will be reduced by the amount that could have been reasonably

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE 4 CORNERS RULE FOR CONTRACT DISPUTES

One thing to keep in mind when it comes to contract disputes is that judges will typically reduce the dispute to the lowest common denominator, that is, they’ll narrow the issues to be as simple as possible. Judges do this by finding any excuse to limit the issues to what the written contract actually has in it. This is known as “The Four Corners Rule.” This doctrine states that a court will not look outside of the four corners of the contract document itself to determine what the parties’ duties are under the contract. As explained in Krauss v. Utah State Dept. of Transp., 852 P.2d 1014 (Utah App. 1993) “Courts first look to the four corners of the agreement to determine the intentions of the parties.” Court will deviate from the four corners of the document only if the contractual language is found to be ambiguous. The Krauss court explained that “Language is ambiguous if the words used to express the intent of the parties are insufficient so that the contract may be understood to reach two or more plausible meanings. Upon finding a document ambiguous, a court may utilize extrinsic evidence to clarify the contractual intent of the parties. Where extrinsic evidence is insufficient to show the parties’ intent, courts, as a last resort, construe ambiguous terms against the drafter.” Courts do not go out of their way to find ambiguity in contracts because it muddies the waters. Instead, courts look to the plain language of the contract and if it makes sense the court will apply it as is. Parties to a contract dispute would be wise to narrow the issues down themselves to expedite the case and the trial. At Salcido Law Firm our attorneys do exactly that. Utah courts appreciate it when parties and their lawyers focus on the relevant issues. Give us a call at 801.413.1753 for a free consultation regarding your contract

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

12 WAYS TO FOUL UP A REAL ESTATE TRANSACTION

12 Ways to Foul Up a Real Estate Transaction By Evan L. Loeffler One would think that the transfer of ownership of real estate from one party to another should not be much more difficult than buying golf clubs at a garage sale. The seller puts a price tag on the goods to be sold, the buyer identifies the goods to be purchased, the parties dicker over price and, eventually, agree on a price. Money changes hands and both parties walk away happy. Unfortunately, it is not that simple when dealing with real estate. Each jurisdiction has special rules, regulations, taxes, forms, and procedures that must be followed not only to effectuate a sale, but to protect the parties involved from litigation later. Further, most sales of real estate involve a mortgage, which requires an additional raft of paperwork in order to effect the sale. There are a number of publications and periodicals dedicated to educating the reader how to successfully close a real estate transaction. Since it is not possible to summarize all those publications into a small article, it seemed that it would be of more utility to identify for the reader the more common mistakes made in real estate transactions. The following, admittedly incomplete, list discusses a few situations that one would think obvious, but still occur with startling frequency. #1. The seller does not have authority to sell the property. Most lawyers will recall learning in Contracts that one cannot sell what one does not own. A simple enough concept, but it is not uncommon that an owner transfers ownership of the family home into a trust, a limited liability company (that may or may not still exist), or pursuant to a community property agreement. Possibly the seller has authority to sell the home pursuant to an expired power of attorney. The parties are then unpleasantly surprised to learn that the seller who negotiated and entered into a real estate purchase and sale agreement in his personal capacity did not have the authority, or sole authority, to do so. It is usually a matter of an Internet search or a phone call to a title company to determine the legal owner of the property. It would be wise to make that call early on. #2. The purchase and sale agreement contains an incomplete or inadequate legal description. The property to be sold must be adequately described in the purchase and sale agreement. The mailing address is not an adequate description of the property. The purpose of a legal description is to describe a particular parcel of land in a unique and unambiguous manner that will survive forever. In the United States, this is done by reference to lots and blocks in a subdivision map, by metes and bounds, by aliquot (using the nomenclature of the U.S. Public Land Survey System, or by a combination of the above. Thus, it is necessary to include or attach the entire lengthy and convoluted legal description on the purchase and sale agreement for it to be enforceable. #3. Zoning is Inconsistent with Intended Use One might think this is strictly a “let the buyer beware” issue, but it is not uncommon that a party purchases property with the stated intent of building a duplex only to discover that the property has been zoned only for single family use. Or a party purchases an existing restaurant only to learn that the liquor license was “grandfathered” to the former owner and will not transfer. Sellers should know the zoned status of the property to be sold and disclose this information to prospective buyers. Buyers (and their attorneys) should perform a due diligence inquiry regardless of what the seller says long before closing. #4. Failure to pay earnest money or follow earnest money provisions Earnest money is money the buyer gives the seller to show good faith when making an offer to purchase the property. Sometimes, however, while there is a contractual provision that the earnest money must be paid by a certain date, it is not paid, not paid on time, or paid by a check that is dishonored. Buyers must understand that it is a breach of the real estate contract to fail to pay the earnest money. Sellers who do not insist on the strict performance of the buyer in this regard may be damaging their position if they turn down completing offers to purchase the property due to the mistaken belief that they already have a buyer. #5. No meeting of the minds in the purchase and sale agreement The failure to recognize whether or not there has been a true acceptance of the real estate contract is another issue that bogs down or fouls up a real estate transaction. If one party makes a written offer to enter into a purchase and sale agreement, and the other party makes changes to that offer there is no contract unless the first party expressly accepts and initializes those changes. What has occurred instead is that the second party rejected the offer and made a counteroffer. It is therefore important for a party reviewing a purchase and sale agreement to be sure that any handwritten changes that may appear in the purchase and sale agreement have been agreed to. #6. Balance of the loan will be paid off with promissory note and deed of trust and then the note and deed of the trust are not attached Unless the buyer intends to show up for the closing ceremony with a wheelbarrow of money, the purchase and sale agreement will be financed by a promissory note and secured with a deed of trust. The terms of these documents, including principal, payment terms and interests, should be made a part of the purchase and sale agreement. There is potentially no contract if all the terms of the agreement are not attached, and this is a classic method of voiding a sale. The basic form can be attached as an exhibit or an addendum and referenced using language such as, “payment for the property will be made pursuant to the terms of a promissory note and deed of trust the terms of which will be substantially similar to the forms attached hereto as exhibit A.” #7. Everything must be in writing Communicate everything in writing pending a closing. This should go without saying in any transaction. For example, if the seller agrees to make repairs prior to closing, put down the substance of the repairs to be made in an addendum to the purchase and sale agreement and have all parties sign it. Do not telephone the seller and indicate the repairs are OK (or that they are not OK), write it down. Include an integration clause in the lease, that the purchase and sale agreement is the entire agreement and any changes must be in writing and signed by both parties. #8. Confirm that seller disclosure form is filled out correctly It is a legal requirement in most jurisdictions that the seller of real estate certify that any existing defects in the property have been disclosed and any prior defects have been properly repaired. This includes cracks in the foundation, leaks in the ceiling, electrical defects and plumbing problems. In Washington State, for example, there is a statute that requires a particular checklist to be filled out and provided to the buyer. Frequently, sellers massage the facts, or indicate that they “don’t know” if there have ever been any defects. Generally, the test is whether a seller knew or should have known of defect in the ordinary course of events. If the seller’s answers on a disclosure appear to be vague or unresponsive, it is a good idea to wonder why. #9. Allowing seller to stay in possession after closing without an airtight possession agreement The inclusion of a “possession due on sale” clause is highly advisable. Sometimes the seller is willing to sell the house but not willing to move out in a timely manner. If the buyer is willing to allow the seller to remain in possession for a short period of time after the sale closes, it is necessary to execute an occupancy agreement that clearly spells out the dates of occupancy, the consequences of failed to abide by the dates, and any remuneration or consideration for the buyer allowing the seller to remain in occupancy after closing. Further, the buyer should seriously consider liability and insurance issues relating to the seller’s occupancy. If the seller is injured moving out due to a faulty step, can the seller sue the buyer? If the house burns down during the seller’s post-closing occupancy, whose insurance will cover the loss? #10. Failure to clearly indicate what the seller takes with her Much time and money has been spent in litigation over whether the seller was entitled to take her chandelier, washer, dryer, range, oven, or refrigerator with her when she moved. The parties should execute a written addendum to the purchase and sale agreement clearly indicating what fixtures stay and go. #11. Buyers fail to get an environmental audit if property is commercial or if the property has ever had an underground oil tank Few things upset a buyer more than learning the home he just bought is contaminated. If the home has an oil furnace—or has ever had an oil furnace—there is almost certainly a tank somewhere leaking oil. The sellers should provide an environmental audit indicating the property is clean, that the tank is in good working order, not leaking, has been removed, or has been filled. #12. The parties neglect to include a merger clause in the purchase and sale agreement Post-closing obligations may not survive closing unless there is language in the purchase and sale agreement indicating they will. If the sellers agree to be responsible for removing the pile of trash after they vacate the premises, there had best be language that establishes their continuing obligation to do so.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

MCDONALD’S IS A REAL ESTATE COMPANY

The success of McDonald’s can be attributed in part to the taste of the iconic fast food chain’s shakes and burgers. But the real secret sauce has everything to do with how the company has quietly become more a real estate company than a restaurant chain. About 85% of the company in 2016 was represented by franchisee-run locations—people who agree to operate individual McDonald’s restaurants with a licensed privilege to the branding. But rather than collect a lot in royalties or sell its franchisees cooking equipment, McDonald’s makes much of its revenue by buying the physical properties and then leasing them to franchisees, often at large mark-ups. The company keeps about 82% of the revenue generated by franchisees, compared with only about 16% of the revenue from its company-operated locations, which is reduced by the expenses of running those operations, according to the investment blog Wall Street Survivor. In a 2015 analysis of McDonald’s franchising, Businessweek cited estimates by Janney Capital Markets. The total sales for an average location clocked in at $2.7 million per store each year, with $1.7 million in gross profits after accounting for food and paper costs. But then there are also other expenses: rent, payroll, advertising, promotions, operating supplies, insurance, and more. Average operating income after accounting for all those expenses rounded out to a take-home of just $154,000 per year for a single franchisee. The average rent per store amounts to about 22% of average gross profits each year for franchisees. The company has more than 36,000 locations across more than 100 countries, so that adds up quickly. Better put, McDonald’s has more than $30 billion in real estate assets, and annual profits that float around $4.5 billion, according to company financial disclosures. The number of franchisee McDonald’s locations has been steadily growing, as the company-owned number has dropped slightly in the last decade. The emphasis on real estate may also pay off for the company at tax time. The US tax code includes several provisions favorable to real estate investors and landlords (which US president Donald Trump also appears to have benefited from). Consider depreciation. Some types of property—such as cars—lose value over time, so it makes sense to offer tax breaks for their lost value. Real estate, on the other hand, often increases in value over time, and yet the IRS allows owners to deduct depreciation from taxable rent. This is something that McDonald’s can very easily take advantage of, says Xian Sun, a professor of corporate finance at Johns Hopkins University. McDonald’s reported $1.39 billion in depreciation in 2016, but it’s unclear what portion of that was depreciation of real estate rented to franchisees. The company did not immediately respond to a request for comment. Additionally, Sun pointed out, in the last two decades real estate values have increased, which means the overall collateral value of the company’s property has increased, too. So when McDonald’s wants to borrow money to make new investments, it can do so at relatively cheap rates. The value of all that real estate also provides a lot of insulation when the company needs to weather fluctuations in the larger burger business, as consumer habits and larger economic headwinds shift. McDonald’s CEO, Steve Easterbrook, is being paid handsomely—more than $15 million a year—to navigate the company through what’s becoming a rough patch, in which sales have shrunk in the face of a more competitive market for three years in a row. McDonald’s has been making all sorts of changes in the last year to try and keep up with fast casual brands such as Chipotle, Panera Bread Company, and others. It’s about to roll out a mobile ordering platform; it began offering all-day breakfast (to much celebration and success); and it recently announced it will be using fresh beef patties across the US for some of its burgers. But even if those big ideas fizzle, the corporate bigwigs at McDonald’s can still collect their

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE AND MARRIAGE

Real Estate and Marriage Married couples usually own most, if not all, of their valuable property together. If you want to leave everything to your spouse, as many people do, you don't need to worry about what belongs to you and what belongs to your spouse. If you'd rather divide your property among several beneficiaries, you'll need to know just what's yours to leave. Common Law States Most states, except those listed as community property states, below, use the "common law" system of property ownership. In these states, it's usually easy to tell which spouse owns what. If only your name is on the deed, registration document, or other title paper, it's yours. You are free to leave your property to whomever you choose, subject to your spouse's right to claim a certain share after your death. (For more information, see Inheritance Rights.) If you and your spouse both have your name on the title, you each own a half-interest in the property. Your freedom to give away or leave that half-interest depends on how you and your spouse share ownership. If you own the property in "joint tenancy with right of survivorship" or "tenancy by the entirety," the property automatically belongs to the surviving spouse when one spouse dies -- no matter what the deceased spouse's will says. But if you instead own the property in "tenancy in common" (less likely), then you can leave your half-interest to someone other than your spouse if you wish. If an item doesn't have a title document, generally you own it if you paid for it or received it as a gift. Community Property States If you live in a community property state, the rules are more complicated. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In Alaska, South Dakota, and Tennessee, spouses can opt in to the community property system and/or designate specific assets as community property. In Alaska, spouses can opt in by creating a community property agreement that states all (or some) property and/or income acquired by the spouses during the marriage is considered community property. Spouses can also establish a community property trust which covers specific assets—all property transferred to that trust will be treated as community property. In South Dakota, spouses may create a "South Dakota special spousal trust," which must include a written declaration that the property is "community property." Any property the spouses transfer to this trust will be treated as community property. In Tennessee, spouses can create community property rights to property or assets that they transfer to a valid community property trust, but the requirements are more specific. The trust must: include a written statement that the trust is a "Tennessee community property trust" have at least one qualified trustee, whose powers include maintaining records for the trust and preparing or arranging for the preparation of any income tax returns that must be filed by the trust—both or either spouse may be a trustee be signed by both spouses, and contain the following language in capital letters: THE CONSEQUENCES OF THIS TRUST MAY BE VERY EXTENSIVE, INCLUDING, BUT NOT LIMITED TO, YOUR RIGHTS WITH YOUR SPOUSE BOTH DURING THE COURSE OF YOUR MARRIAGE AND AT THE TIME OF A DIVORCE. ACCORDINGLY, THIS AGREEMENT SHOULD ONLY BE SIGNED AFTER CAREFUL CONSIDERATION. IF YOU HAVE ANY QUESTIONS ABOUT THIS AGREEMENT, YOU SHOULD SEEK COMPETENT ADVICE. Community Property Laws Generally, in community property states, money earned by either spouse during marriage and all property bought with those earnings are considered community property that is owned equally by husband and wife. Likewise, debts incurred during marriage are generally debts of the couple. At the death of one spouse, his or her half of the community property goes to the surviving spouse unless there is a valid will that directs otherwise. Married people can still own separate property. For example, property inherited by just one spouse belongs to that spouse alone. A spouse can leave separate property to anyone—it doesn't have to go to the surviving

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WORLD WAR II – WOW HOW THINGS HAVE CHANGED IN REAL ESTATE !!!

The most deadly and widespread war in modern history acted as a devilish bellows on the fire of the American economy. Developments in industry, aviation, medicine, electronics and atomic energy were accelerated; what would have taken years to evolve took months during the war. The national economy prospered as a result. The GNP before the war in 1940 was just over $100 billion; by 1955 it had tripled to $310 billion. Average Americans, with the horrors of war behind them, were enjoying unparalleled economic security. Following the surreal images of World War II, the country desperately desired a return to safety and living the American dream - get a job, buy a house, marry and raise a family. The black-and-white decade of the 1950s - the "gee-whiz" decade - put in this context was certainly understandable. Entering 1950, real estate markets in general - retail, office, industrial and hotel - were all entering a period of sustained growth kindled by the pent-up demand and the surging economy. The years following the War saw two pronounced trends. One was the movement of much of the population to newly formed suburbs fed by the expanding network of thruways - suburbanization. The other conspicuous real estate story of this decade was housing, or, more accurately, the absence of housing and the real estate industry's slow response to the shortage. First mass exodus to the 'burbs Decades earlier, America made the transition from a rural based society to one based in urban areas. As cities expanded, high land prices and crowds persuaded people and commerce alike to search for cheaper and more accommodating real estate alternatives. Following World War II, the inner cities were busting at the seams. After many years urban growth spilled over into the suburbs. Widespread car ownership and the increased development of the freeway system, intensified by the Federal Highway Act of 1956, catalyzed the move. In a trend that has continued to this day, cities were increasingly losing population to the more open, cleaner rings of land just outside the city. During the 1950s, land values in the suburbs increased rapidly - in some prime suburban neighborhoods as much as 3,000% - while population swelled by 45%. Nearly two-thirds of all industrial construction during the 1950s was taking place outside cities; residential construction in the suburbs accounted for an astonishing 75% of total construction. The housing shortage By the end of the war in the mid-1940s, it was clear that there was a severe shortage of housing. The federal government was aware of the situation, and passed the Housing Act of 1949, which, in part stated as its goal, "...a decent home and suitable living environment for every American family." There were some substantial hurdles to clear. With the real estate industry dedicating all attention to wartime efforts, there had been very little private development activity. Residential development had been concentrated in areas surrounding defense-related plants and factories. The lack of new construction was combined with a massive influx of veterans returning to civilian life. Beginning in the mid-1940s through the early 1950s, almost 11 million men and women were released from the armed services. Empowered with government insured loans that had low down payment requirements and thirty-year terms, veterans were ready and able to buy housing. Civilians were also well positioned to buy. Family incomes were at their highest levels in history, most households had saved their money during the war, and billions of federal dollars had been allocated for Fannie Mae and FHA programs. It became clear, however, that the housing industry was not even close to being able to react to the incredible demand. The housing industry was fragmented and horribly inefficient. Instead of a steady surge in construction directly after the war, Americans endured steeply rising home and apartment prices. Fortune magazine dubbed the housing industry "the industry that capitalism forgot." A new housing-industry model The Levitt brothers were the country's single most powerful weapons against the housing shortage. Their methods and approach to building homes, when duplicated across the country, put the American dream within the grasp of countless middle class families. The product produced by the Levitts did not please everyone. One critic said, "The little Levitt house is American suburbia reduced to its logical absurdity...it can be excused only by a shortage that should never have existed and the inability of an entire industry to reform itself." The "little Levitt house" had a powerful effect on the industry though. The eventual emergence of well-capitalized, large-scale homebuilders modeled on the Levitts resulted in a residential construction boom that housed a generation. By the end of the 1950s, no less than 15 million units were under construction nationwide. The Levitt brothers were not newcomers to real estate. They had been developing residential property since the late 1920s. The father, Abraham Levitt, wasa lawyer that had to foreclose on many mortgages during the Great Depression. One particular piece of property was not selling after foreclosure, so the father and his two sons, William and Alfred, built a house on it. The trio's efforts snowballed from there after the two young sons left college before graduating. William stated at the time that he "wanted to make a lot of money," and Alfred simply informed the dean that the school had nothing else to teach him. Levitt and Sons built and sold 600 luxury homes in relatively short order, and by America's entrance into World War II had built 2,000 more. Like most industries during wartime, Levitt and Sons went to work for the United States, building close to 2,400 units for the Navy in Virginia. Unlike the luxury homes that the Levitts built in the private sector, these units demanded a slightly different approach if they were to make a profit. The low-cost mass building techniques that were employed to restructure an entire industry were being formed. Following the War the Levitts applied what they had learned building for the Navy. Between 1946 and the early-1960s, they built three residential communities totaling more than 17,000 homes. At peak production 30 houses were finished in a day. The level of production barely kept up with demand; at the peak of demand, 1,400 contracts were signed for Levitt homes in a single day. This level of production was made possible by transferring assembly line methods first used at the turn of the century. The brothers became known as the Henry Fords of the housing business. The spartan homes were a far cry from the luxury home they built in the earlier days, but the simplicity enabled them to break the process down to just twenty-six steps. Trucks stopped at each site to drop identical, neatly bundled supplies: lumber, pipes, nails, shingles. Earthmovers appeared, dug for plumbing, and were followed by crews that performed a single phase of the construction. When they were finished, they moved on to the next house. Instead of the product moving down an assembly line, the assembly line moved along to the next product. Most of the assembly line consisted of subcontractors. Instead of going through a bid process, all crews were hired after negotiation. The Levitts also used non-union labor, which was practically unheard of in that time. Of labor unions, William Levitt said, "I am not against unions, I just think we can build houses faster without them." The Levitts went to impressive lengths to control costs. To cap lumber costs, they bought timberland and built a mill on the West Coast. Over the years, it is estimated they saved up to 40% on lumber. Despite their frugality, few could point to shoddy work in their communities. Instead of using cheap materials, they came up with unconventional methods for the pricier phases of homebuilding. Levitt homes did not have cellars; they were built on concrete slabs with radiant heat. Walls were constructed with rockboard instead of plaster. Floors were of plaster rather than expensive hardwood. Despite the Levitt's appreciable efforts in providing housing, not everyone was impressed. The communities drew criticism from all directions, including architects, sociologists, the upper class - even the man on the street. Their sameness and simplicity led some to call them the "slums of the future." Sociologists even got their whacks in, pointing to the sameness, aesthetically, as well as economically and socially. In the early years this was partially true. The community was made up mostly of middle class veterans or professional families, and everyone was white. By the end of the 1950s, however, the first Levittown community had its first black family. After a period of angry mobs, a burning cross, and countless threats, a second black family moved in. Soon after,, the outward signs of racism subsided and the perfect little community returned to suburban tranquility. As families moved out and new families cycled in, the homogenous nature of the town shifted to reflect a more balanced population. The communities were referred to as "sorority houses with kids," "a lay version of Army-life," "Russia with money," and "a womb with a view." Even the supporters conceded they were not things of beauty, and that residents, after having a few too many cocktails, did indeed stagger in the wrong door from time to time. But, lost in the sociological studies and poo-pooing of the upper class, the fact remained that people liked their Levitt homes. These people, many of which were veterans, were happy to be homeowners out of the grime and crowds of the city. The American Dream provided by the two brothers from Long Island. Following housing to the suburbs Housing was not the only property type to thrive outside of the cities. Real estate organizations that had prospered in the cities now looked to export their knowledge to the newly formed communities along the expanding highway systems. Retail had followed the piecemeal development of the earlier suburban communities from as far back as the 1920s. But it was in the 1950s that regional shopping centers, which were not directly tied to a developed community, began popping up. Northgate Mall just outside of Seattle was considered a groundbreaker for its design as well as its location. Storefronts were rebelliously aimed toward the center of a central, open-air pedestrian mall away from the massive parking lot. In 1954 Northland Mall was built as the largest mall of this new design, and opened in a suburb of Detroit. By 1956 the same architect responsible for the design of the Northland produced the first enclosed, climate-controlled mall in Edina, Minn., a suburb of Minneapolis. What the new malls lacked in creativity with respect to names, they made up for in fresh approaches to culling money from consumers. One-anchor malls gave way to two-anchor malls. The seeds of what would become an American trademark had been planted. Heavy industry and manufacturing also crept out along the new highways to the suburbs from the high priced land of cities. Trucking had largely replaced freight trains as the preferred transportation for industry, and industrial and R&D parks proliferated in the newly formed transportation hubs of suburbia. Trammell Crow Co. in Dallas and the investment firm of Cabot, Cabot & Forbes in Boston became industry leaders in the development of warehouses and industrial properties, first in their respective regions, and then nationwide. Also stepping to the suburbs beginning in the 1950s were hotels and motels. Up to this point, the presence of lodging outside of urban areas was sparse. Most hotels were located either in resort areas or in the middle of cities. There were "roadside inns" outside city limits that had been hatched in the 1920s to provide lodging for those traveling by the new-fangled automobile, but these were almost always small scale, mom and pop outfits. The term "seedy motel" was coined in the 1950s. In 1952 Holiday Inn "hotel courts" cleaned up the suburban roadsides with a family-friendly, cleaner, modestly priced alternative to the roadside motels. Holiday Inn was not alone in providing consumers with more respectable lodgings outside the city ring. Soon, larger hotel companies that had focused on the city for years followed the trend. Ramada, Howard Johnson and Travelodge also followed America's expanded roadways and by the mid-1950s, the supply of motel rooms had surpassed the entire stock of hotel rooms. As highly respected and well-known operators entered the market, investment in this asset class became more prominent setting the groundwork for the sophisticated investment market we have

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE PROBATE PROCESS

The Probate Process The process unofficially “begins” when a person dies. The person who passed away, known as the decedent, may or may not have left a will (or may have even left one or more one will or codicils to a will!). If the decedent left a will the law requires that all originals wills be filed with the Clerk of the Court in the county where the testator (the person who made the will) last resided. If there is no will, the estate is known as an intestate estate and the law of “intestate succession” will govern the disposition of estate assets. A person wanting to pursue a probate case will file a petition with the court to open a probate estate. The law, in the case of an intestate estate, requires prior notice to certain other heirs in advance of the initial hearing. In those cases where a will exists, notice is generally sent to both heirs and legatees after the will is admitted to probate and the executor is empowered to represent the estate. Next, barring a will contest or formal proof of will, the named executor in a will or some interested party in the case of intestacy will be declared the personal representative of the estate by the probate court. The representative’s duties, in essence, are quite simple and basically consist of collecting and preserving the assets of the estate, paying the debts and taxes and distributing the remaining assets as directed by the intestacy statute or by the last will. As simple as this sounds, the task may be daunting regardless of the size of the estate. A personal representative must keep track of the records of all transactions involving the estate as an accounting and inventory must be prepared to present either to the heirs or to the court, depending on the manner of administration. Once the estate is open, the court will issue “Letters of Office” to the personal representative which, with a death certificate, will allow the representative to act on behalf of the estate. In addition to certain notices to heirs or legatees, the law requires that notice of the opening of the estate be given to the public through publication in a newspaper so that the decedent’s creditors, if any, may make their claims on the estate. The Probate Code also requires that the personal representative directly notify any of the estate’s creditors who are “known or who may be reasonably ascertained.” The estate representative has a to exercise due diligence by checking through the paperwork and effects of a deceased person to determine who is or who might be a creditor and to notify those creditors or potential creditors of the probate proceedings. Notified creditors then have a time window within which to file their claims known as the “claims period”. If a claim is not filed within the claims period, it will be barred. A simple estate will be open for a minimum of six months from the date the executor is appointed and notice is served on creditors. This term is mandated by statute and is instituted to allow creditors of the decedent an opportunity to file claims against the estate. In those cases where there are no claims filed or where the claims are simple or small, provided all of the other administration can be completed in time, the estate can be closed shortly after the expiration of the statutory claims period. In the case of estates handled outside of probate, such as when there is a trust or an unprobated will, the claim period is two years. There are two “death tax” returns that might need to be filed during the administration of the estate. The first, commonly known as the “706” is the U.S. Estate Tax Return filed with the federal government. The second is the Illinois Estate Tax Return. These “death tax” returns must be filed if the entire estate, not just the probate estate, has assets in excess of a statutory amount. These days, the Federal and State taxes kick in at different dollar amounts. Both returns, if required, are due and the taxes must be paid within nine months from the date of death. In addition to estate taxes, an estate must usually file a final income tax return for the final year of the decedent’s life. This return is usually due on April 15 just like any other income tax return. Finally, the personal representative may have to file an income tax return on behalf of the estate itself, known as a Form 1041, for the income generated by the probate assets during the time the probate estate is open. After all claims are paid and the inventory and accounting are completed and approved, the personal representative can distribute the estate assets as per the will or intestate succession law, collect receipts from estate recipients, and close the probate estate. The entire process can take anywhere from seven months to many years depending on the size and complexity of the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

LAWYERS ROLE IN A RESIDENTIAL REAL ESTATE TRANSACTION

The purchase of a home is often the largest transaction a person will undertake in a lifetime. As a result, a prospective home buyer should take all precautions possible to make sure that the deal concludes smoothly and correctly. The buyer’s attorney will routinely review the various terms of a contract to determine that the contract does not take advantage of the buyer. The attorney typically focuses on the purchase price and personal property included in the sale, the mortgage contingency clause, the inspection clause, and the clause that governs penalties for default. In addition, the lawyer will make sure that the various prorations (taxes, rents, association dues, etc.) are fair to the buyer, and that the seller has provided the required disclosures (as to the condition of the property, radon hazards, and in some cases as to the status of lead paint in the home) and warranties. The real estate purchasing process begins simply enough. A Buyer spends what may seem like a thousand weekends searching for the right home to buy. Once the buyer finds that property, the selling real estate agent usually helps the buyer prepare and execute a contract which is sent to the seller, usually accompanied by an earnest money check. At this point, the signed contract is known as an “offer”. No offer should be submitted without careful consideration of the attorney’s role in the transaction. Just about all “standard” real estate contracts contain “attorney approval” or “attorney modification” clauses. Significant differences exist among the approval and modification clauses in the many “standard” form real estate contracts. Some allow a buyer to easily “escape” a deal, while others can make the process much more difficult. Each buyer’s contract will govern the ability of the buyer to terminate the contract. While an attorney would prefer to examine a contract prior to the submission of the offer, no offer should be submitted unless the contract at least contains an attorney approval or modification provision and the buyer understands the terms, rights, and limitations of such a clause. The selling broker will usually point out that the contract has an attorney modification clause and changes can be made later. The broker is only half right! In most cases, the buyer’s attorney can iron out many problems in a contract during the contractual period provided for attorney review, however careful review and modification before the offer is submitted can ease the transaction for the buyer. Modification clauses do the job most of the time, however, some court decisions indicate that a “modification letter” actually constitutes a counter offer and thus, a party could back out of a contract when presented with such a letter. For example, on Monday, “Buyer One” offers $100000 to Seller who accepts. The contract is forwarded to Buyer One’s attorney who reviews it and makes various minor changes and sends a modification letter to Seller. On Tuesday, “Buyer Two” offers $125000 for the same property. Seller then receives the modification letter from the attorney for “Buyer One”. His lawyer, tells Seller that he may cancel the original contract with “Buyer One” and enter into a contract with “Buyer Two.” Legal?? Yes! How can buyer’s avoid this problem? Allow your attorney to look at the contract before it is signed and handle all modifications at the time the offer is made. Normally, a contract will contain an inspection provision providing the buyer with the right to obtain a professional inspector to check the property for defects. Inspection clause provisions vary from contract to contract. Some allow the buyer to request repairs be made to the property, some require that repairs exceeds a certain dollar amount and others merely allow the buyer to cancel the deal because the condition of the property is found to be unsatisfactory. The buyer’s attorney will assist the buyer in negotiating with the seller’s attorney regarding repairs. Keep in mind that the inspection and attorney review periods usually last for a short and limited period of time. The terms of the contract will dictate this time. Once the periods expire, no additional changes may be made. It is important for a buyer to get a copy of the signed offer or accepted contract to his or her attorney as soon as possible. Once the modification and inspection periods are passed, the buyer’s attorney will help the buyer manage the mortgage contincy. Most contracts contain a “mortgage contingency” clause, a provision which allows the buyer to lawfully cancel a transaction if the buyer cannot obtain a loan that satisfies the terms of the mortgage called for by the contract. The attorney will make sure that the lender’s loan commitment complies, within commercially reasonable limits, with the contract terms and that the proper notices as to whether or not the loan is approved are forwarded to the Seller. The final tasks of a buyer’s attorney before the closing are to make sure that any problems that arise during the final inspection are dealt with by the buyer and to work with the lender, title company and the buyer to be sure that all items needed to close are brought to the closing. At the closing, the lender will deliver a “package” of documents to the title company. This package is comprised of many documents, including the note and mortgage and maybe as many as thirty to sixty pages of documents disclosures and agreements. It is the buyer’s attorney’s job to walk the buyer through these documents, pointing out important terms and protecting the buyer’s rights against the bank. The Seller will also come to the closing with a package of documents, including, most importantly, the deed to the property. The buyer’s attorney will scrutinize these documents to make sure that the buyer is purchasing and the seller is conveying the correct property, that all taxes and liens are paid, and that title is cleared and insured by the title company. This usually involves a review of the documents and a survey provided by the Seller. If a mistake is made in the process, someone else may end up owning legal title to the home just purchased by the buyer. The services of a real estate attorney greatly reduce the likelihood of problems, provide an experienced guide to this very long and complex process and provide peace of mind to the buyers. Services and Fees We provide full service to real estate buyers for residential real property closings. Among those services are contract Review (pre or post contract execution); the negotiation of Inspection contingency issues, if any; the negotion of attorney modification issues, if any; the tracking of the buyer’s contingencies (appraisal, mortgage, home sale, if any); attendance at the closing to review the Seller’s closing documents and explain the voluminous mortgage and seller documents in clear, easy to understand terms, and ensure that the deed is proper and the title is issued. Fees vary depending on the transaction. We provide services in FSBO (for sale by owner) purchases, existing residential real estate closings, new construction or developer conversion and rehab transactions, short sales, and REO (real estate owned) or foreclosure

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FIXER RATE VS ADJUSTABLE RATE? 15 YEARS VS 30 YEARS

Fixed-Rate vs. Adjustable-Rate Mortgage (ARM) Most every type of home loan program will offer the option of a fixed-rate or an adjustable-rate mortgage. A fixed-rate mortgage will have the same interest rate for the life of the loan. An adjustable rate loan, also called an ARM. Will have an initial low interest rate, usually for 5 years. Then the rate will increase annually. 30 Year Fixed-Rate – The 30 year fixed-rate mortgage is the most common term home owners select. It will have the lowest monthly payment and your rate will never increase. 15 Year Fixed-Rate – A 15 year rate will have a higher monthly payment but more of your payment will go towards the principle balance. You will pay off your loan in half the time and save a ton in interest. 15 year mortgages also have a lower rate than 30 year loans, your mortgage rate could be as much as 1% lower with a 15 yr mortgage. 5/1 ARM – An adjustable-rate mortgage will have a very low initial rate for the first 5 years of the loan. After the 5 year period the rate will increase on an annual basis. An ARM mortgage is best suited for buyers who plan on staying in the home for less than 5 years, or who plan on paying off the loan in 5 years or less. Government Home Loans During the Great Depression, in 1934, The Federal Housing Administration was created to make getting approved for a home loan easier. The Government does not offer the loans directly. They insure the loan in the event the borrower defaults on the loan. This makes the mortgage loan less risky for lenders allowing them to lower their loan requirements. FHA Loans FHA home loans are one of the most popular types of home loans used by first-time homebuyers. They have the lowest credit score requirements of any mortgage type. If you have a 500 FICO score you can qualify for an FHA mortgage with a 10% down payment. Borrowers with a 580 or higher FICO score may qualify for an FHA loan with just 3.5% down. Because of the low credit and down payment requirements they are loved by first time home buyers. First-time buyers have lower credit scores and less savings on average so FHA is the best type of home loan. Another great benefit of FHA home loans is that the down payment can be a gift from a family member or friend. There are also first-time homebuyer down payment assistance and grants you may be eligible for. You can check the HUD website to see programs in your state. One of the only downsides of FHA loans is the mortgage insurance premium (MIP). The FHA MIP fee typically 0.85% of the loan amount annually. Check out our FHA MIP Chart. Speak to FHA Lenders and See if You Qualify VA Loans If you’re a Veteran then you may qualify for a VA home loan. Click here to get your certificate of eligibility. VA loans offer a wealth of benefits to those who qualify, including zero down payment. On top of getting 100% financing, VA loans don’t require mortgage insurance. No PMI means huge savings, the average home owner saves about $2,000 per year on mortgage insurance. USDA Loans The U.S. Department of Agriculture doesn’t just offer food and nutrition services. They now offer mortgages in rural areas of the country. USDA / RHS loans offer a no down payment mortgage and have low mortgage insurance fees. When you think of the word rural, farms and ranches are probably one of the first things that come to mind. However, the USDA eligibility map shows that over 95% of the U.S. is eligible. USDA home loans require a 640 credit score or higher to qualify. FHA 203k Rehab Loans FHA 203(k) loans are a type of home renovation loan. They will fund the purchase of a home and pay for repairs or renovations on the property. FHA loans require the property to be in livable condition, not in need of repairs. With a 203k loan you can buy “fixer upper” home in need of repairs and get the cash to make those repairs. 203k home loans have the same loan requirements as the FHA does. They require a 3.5% down payment. However, the credit requirements for 203k loans are higher than FHA. Most lenders want you to have at least a 640 credit score. Conforming Home Loans Conventional Loans Conventional loans are known as conforming loans because they meet the guidelines of Fannie Mae and Freddie Mac. They are offered by private lenders and are not insured by the Federal Government. They still require mortgage insurance (PMI. However, the PMI fee is usually lower than FHA loans, around 0.50% in most cases. Conventional loan requirements are more stringent than Government loans. They require a 620-640 credit score and down payment between 5% and 20%. One of the benefits of conventional loans is that mortgage insurance is not required if at least 20% is put down. PMI cancels once the LTV reaches 78%. Real estate investors will need to get a conventional mortgage because Government backed loans are for homeowners who intend to occupy the property as their primary residence only. Conventional 97 Mortgage A conventional 97 loan is similar to a regular conventional loan. However, it requires just a 3% down payment, hence the 97, standing for 97% loan-to-value. The 3% down payment is even lower than FHA loans which require 3.5% down. You can speak to your lender to see if they offer this program. See if You Qualify for a Conventional Loan Non-Conforming Home Loans A non-conforming loan is a loan that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. The conforming loan limit is $424,100 in most areas of the U.S. and goes up to $635,050 in certain high cost areas of the country. Jumbo Loans If you need a loan that exceeds the conventional loan limit in your area you will need to get a jumbo loan. Jumbo loans are more difficult to qualify for than conventional loans because of the higher loan amount. Most lenders will want you to have at least a 680-700 credit score. Jumbo loans also require a higher down payment, usually between 15%-20% is the minimum down payment required. Super Jumbo Loans Jumbo loans offer loan amounts up to around 1 million dollars. If you’re buying a home and need a loan for over 1 million you will most likely need what’s called a “super jumbo loan”. A super jumbo loan can provide up to 3 million dollars to purchase your home. These mortgages are even more difficult to qualify for a require excellent credit. Home Refinance Loans Rate and Term Refinance This is a traditional refinance of a conventional loan, or an FHA loan into a conventional. This type of refinance loan will lower your interest rate and monthly payment. Many people who have an FHA loan will choose to refinance into a conventional loan in order to drop mortgage insurance. Home Affordable Refinance Program (HARP) The Obama Administration created the HARP program to help home owners whose property values plummeted because of the housing market crash. With HARP you can refinance your home loan into a lower rate even if you’re underwater on your mortgage. You’ll have to hurry because the HARP program is set to expire in September of 2017. Home Equity Loans and HELOC Home equity loan and HELOC loans use the built up equity in your home as collateral for a loan. These are also known as a second mortgage, because you will have two separate payments. A home equity loan provides you will a lump sum of cash up to 80% of the market value of your home. A HELOC works like a credit card, giving you a line of credit you can borrow from as you need it. You only pay interest on the amount borrowed. Cash-Out Refinance A cash-out refinance is where you refinance your mortgage and get cash out using the equity in your home. You will have just one monthly mortgage payment and the rates are lower than they typically are with a home equity loan. As with a HELOC, you can cash out up to 80% of the value of your home with a cash out refi. Streamline Refinance Government home loans such as FHA, VA, and USDA also offer a refinance program. FHA streamline refinance is a quick and easy way to refinance your FHA loan into a new lower rate. The great thing about streamline refinances is that they do not require a credit check or income verification. The process is “streamlined” and requires much less paperwork than a traditional refinance. RATE SEARCH: Get Current Refinance Rates Conclusion.. With so many types of home loans available, choosing the one that’s right for you can be overwhelming. It’s a good idea to speak to an experienced loan officer who can go over all of your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

UTILITY EASEMENTS

Don't be startled to discover that you must “share” part of your land. In certain types of real estate transactions, it’s not until the middle of the deal that home buyers realize the land they’re purchasing with their home is not 100 percent theirs. They are startled to discover that they must allow their neighbors to “share” part of their land, or that the local utility company has a right to access a pipe buried in their back yard. How can this be? In both examples, the properties have what’s known as an “easement,” otherwise known as a “right-of-way.” This easement grants other designated people the right to specific types of access. Easements can be granted to another person, such as a neighbor, or to an entity, such as an electric and gas utility. A property easement is generally written and recorded with the local assessor’s office. The documented easement will show up when a title search is conducted and it stays there indefinitely, unless both parties agree to remove it. Without getting too deep into legal details, here are the types of easements worth knowing about. 1. Right-of-way through your property As a homeowner, you would probably assume that you’re purchasing the land around your home, front yard, back yard and driveway. But that’s not always the case. Often, when you review the preliminary title report, you may discover that someone actually has a right-of-way through your property. This is common in the case of a long driveway or a home that may be set back from the street. It could have been that in order for a neighboring home to have been built, that property’s owner negotiated with a previous owner to gain a right-of-way through the front of the parcel or driveway for the home you are buying. In this scenario, you own the land, but the owner of the neighboring property has been granted right to pass through your property. In some instances, the previous owner might have been compensated for granting this access. The important thing to know is that easement carries over when a new owner assumes the property. 2. Right-of-way grant If you’re the homeowner who needs access to a neighboring property, or you discover that the driveway or walkway to your home is actually not 100 percent yours, there’s usually nothing you need to do. It’s just important to be aware of these conditions, and that this is not entirely your land. Depending on the size of the easement and the type of land it covers, there may be some issues regarding maintenance. For example, it may be your responsibility to keep up the land: Mowing the lawn, shoveling the pathway or maintaining a fence. If there’s a maintenance ambiguity, check with the current seller to understand how she and the other owner worked this out in the past. Many times an easement like this, known as a “Right-of-Way Grant,” has been on title through the course of three or four owners, making the original intentions or understandings not explicit. Understanding how the easement has worked in most recent practice is your best course of action. 3. Other types of easements Anyone who lives in a condominium or some type of planned development likely spends many hours working on property they don’t own outright but have access to. Most likely, the condo or planned development’s homeowners association (HOA) actually owns those areas, but each resident or owner has a right to pass through, which is one obvious type of easement. But some easements aren’t so obvious and take buyers and homeowners by surprise. A classic example is one in which a utility company, such as an electric and power company or a telephone company, has an easement through your land for the purpose of maintaining the utility. There was a situation near San Jose, CA, in which the electric and gas utility had an easement through someone’s backyard. It had been on title for many years, but the existing owners didn’t know about it. One day, the electric company showed up with digging machines and materials and made a mess of the yard digging to fix a faulty line. Though the owners were shocked, there was nothing they could do. Situations like these show why it pays to be cautious if an easement shows up in a property title search. Ask the title company, attorney or your real estate agent to retain all documents pertaining to the original easement in order to review the details. That way, you will know the exact location of the easement, its size and scope and how it’s to be utilized. Often, there’s not a problem with easements, but it’s still important to check. Any potential red flags might wind up affecting the value of your home. In the case of the house in San Jose, for instance, what if the utility company had done permanent damage? What would be the homeowner’s recourse, if any? It’s best to vet these things before closing, rather than facing a serious real estate dilemma down the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE PLATS SURVEYS

Plats and Surveys. What do these words mean? If you’ve recently purchased or acquired a tract of land and plan on dividing it, adding to it, or otherwise developing it, you will come across the phrase “property plat.” A “plat” is a plan or a map of a plot of land, especially used in construction site mapping. A plat map includes a description of the land and everything on it, including roads, boundaries, and real property. Learning about property plats can help you understand your rights as a landowner, and begin the development process within the legal boundaries of your county code. Understanding Property Plats Property plats are necessary during the land development process – particularly with the subdivision of a tract of land. Platting is a complex process that many lawyers, real estate developers, and even government officials still struggle with. The problem lies in the origin of platting laws. Plats are based in public law, not contract law. Subdivision platting laws are based on governmental legal concepts of “police power,” or the right of the government to make laws necessary to protect the safety, welfare, and health of the public. While the average person will likely not have to deal directly with platting, it’s important for anyone who wishes to purchase, sell, or develop a lot to understand this concept. Plats are important because they give an accurate description of a section of land as well as the people, things, and access ways on the tract. Plats ensure property owners don’t trespass on another’s property, land for public use remains public, lots comply with zoning rules and restrictions, and all property owners have access to utilities. Plats also control the growth of cities. Local governments require plats to keep track of all residential and commercial properties, their subdivisions, and the development of tracts of land. Without the platting system, there would be no legal documentation of the development of a property – nor would there be laws holding property owners liable for what they do to their land and that of adjacent tracts. Plats may seem like tedious red tape, but they are necessary to preserve the law and order of lands. When Do You Need a Land Survey Plat? Any time you plan to subdivide a property outside the limits of a municipality into two or more parts, you must submit a subdivision plat to the correct city or county official, unless you meet an exception in your local subdivision ordinance. This applies whether you plan to divide the land into building lots, a subdivision, or an addition. A tract of land is only subject to platting requirements if the division is also to lay out parks, squares, alleys, streets, or other parts intended to be dedicated to public use or the use of other owners adjacent to the land. Texas has strict platting laws enforced on every development or division of land. Your county may require a filed plat for new plumbing or HVAC installation, as well as structural modifications. In Texas, platting requirements fall under local government code 212.004. This code states that a “division of a tract” includes those made using a metes and bounds description in a deed of conveyance, a contract for a deed or a contract of sale, or any other method. Exceptions include a division of land into parts greater than five acres, where each portion has access and no public improvement, as well as local county and city exceptions. Platting requirements will change depending on your city. For example, Dallas has particularly specific platting rules. Dallas requires a property plat for the following actions: Subdividing land Combining tracts of land Creating a building site Developing a planned district Adding vacant or abandoned property to a building site Amending or correcting errors in a previous plat Establishing a shared access development You do not need a plat if you are dividing property for transfer or ownership – as long as the property is described using metes and bounds. However, this exception only lasts until someone requests a building permit for the property. Reach out to your county clerk’s office for an exact list of platting requirements and exemptions in your area. What Must a Property Plat Include? When you file a property plat with your city or county, you must follow certain rules for it to be properly recorded. First, you must describe the subdivision by metes and bounds. This is a system for describing land and real properties that uses physical features of the land’s geography, as well as distances and directions, to describe the boundaries of a piece of land. Metes refer to a boundary defined by the measurement of a straight run. One specifies a mete by a distance between terminal points, as well as a direction or orientation. Bounds are a more general boundary description. For example, describing a body of water, a stone wall, or an adjoining road are all bounds. A lawyer can write the metes and bounds description of your land if necessary. The plat must also locate the subdivision with respect to a corner of the original survey, and state the dimensions of the subdivision and of each part of the tract intended for public use. This may include parks, alleys, or streets. The owner of the tract, or the owner’s agent, must acknowledge the plat; a process much like that of the acknowledgement of deeds. You must file and record the plat with the county clerk in the county where the tract of land is located. How to Obtain a Property Plat Plat maps must be as accurate as possible. To create a plat map, one invests in a plat survey. A plat surveyor will study the land in question and describe it in prose, using plain words to recreate the area. Plat surveys are especially useful when describing large tracts of land, where an accurate estimate of boundaries would be too difficult to achieve. Landowners can hire a surveyor to complete the plat survey, compare measurements to the original property deed, and calculate the actual bounds of the property. After a plat survey, the owner of the land may find that the tract is actually larger or smaller than it is listed in other legal documents. Your property may already have a plat map on file in your county. Conduct an online public records search for plats, and discover the actual boundaries of your piece of property. Plats can open your eyes to parts of your property you didn’t realize you owned, and help you comply with county codes during subdivision or construction projects. Plats and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO vs REAL ESTATE AGENT? ADVANTAGES AND DISADVANTAGES

Selling your home on your own is doable and maybe you don’t need a professional to get the job done but there are some things to consider before committing to the ‘For Sale By Owner’ (FSBO) route when selling your home. PRICE Homeowners believe they will save the real estate commission by selling on their own, and while that may be true, studies have also show that homeowners net more money when using a trusted real estate agent to sell their home. According to NAR, the typical FSBO home sold for $190,000 compared to $249,000 for agent-assisted home sales in 2018. Agents are fully equipped with real estate knowledge, experience, and tools that allow them to get their clients more money through the art of negotiation, effective marketing tools, access to a larger marketplace and qualified buyers. MARKETING Like previously mentioned, FSBOs typically sell for less. But why? One reason is it does not have the exposure of being marketed on the Multiple Listing Service (MLS), a database of houses and properties available for sale. Only licensed agents have access to the multi-listing service or you could pay the flat rate of listing your home, which ranges between $500-$1000. Eighty-nine percent of home buyers bought with an agent in 2017. Pre-qualified buyers are searching for homes with their agents online – they aren’t out driving around looking for ‘FOR SALE’ signs in yards. TIME Most people don’t understand the amount of time and effort that goes into selling a home and to try to do that in addition to your regular full-time job, can be exhausting and stressful. It can be difficult to properly stage your home, set up an inspection, manage phone calls to schedule showings that accommodate the potential buyers’ schedules as well as yours. Typically, the average FSBO should expect to spend at least 10+ hours showing and marketing their home per week. If you can’t commit at least 10 hours a week, FSBO is not your best option. If you are in a time crunch, then FSBO is definitely not for you either. Agents have the tools and programs that will quickly get your home listed and in front of as many eyes as possible. Agents also have access to qualified buyers – which can save A LOT of time. The FSBO seller is on their own for requesting financial statements and verifying credibility for potential buyers. NEGOTIATION There are tactics and negotiation points that an experienced agent will use in negotiating besides just price. Repairs to the house, lawn maintenance, and even additions can be negotiated almost entirely outside the price discussion. For every negotiating point, there is a tactic to handle it and a real estate agent will be able to navigate negotiating much better than a non-experienced FSBO seller. LEGAL When you go to sell your home, you aren’t likely thinking about the legalities and potential liability issues that need to be carefully handled when working with a potential buyer. For example, if the home sells while something requires work or repairs and the responsibility is not clearly stated in the contract, you may quickly find out that you are on the hook for the cost to fix the issue. Realtors have their clients best interest in mind and look for irregularities or loopholes in the contracts that a typical FSBO seller might not catch. Final Thoughts. Choosing to do FSBO or go with the knowledge and experience of a trusted real estate agent depends on how motivated you are to take on the process yourself. It’s a lot to take on and can be done, but a real estate agent would provide a level of experience and expertise that will make it a much more stress-free process, all while having your best interest in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

RESIDENTIAL VS. COMMERCIAL INVESTMENT? ADVANTAGES AND DISADVANTAGES

What’s better - single family rentals or multifamily properties Even in times like these, as commercial real estate is heating up and it’s more difficult to find good deals, investors who have SFH rentals are making killer returns, with cash on cash returns of 20% and more. This is true even in hot markets like San Francisco or Washington, DC. That’s because you can acquire townhouses or single family houses for a relatively good price, but rent them out such that, after all expenses, you can net $400 – $600 per month. They’re more affordable. Buying SFHs is much more affordable than buying apartment buildings. Many people have the cash themselves to slowly accumulate SFH properties over time. They’re great for slow but steady growth. This makes SFH investments perfect for the individual who wants to use his own financial resources to buy, say, one house per year, every year. If you can buy one rental per year for 10 years, it could set you up very nicely for an early retirement. Cons They’re difficult to scale quickly. Let’s say your goal is to acquire 20 rentals in a year. To achieve that goal, you’d have to find and buy 20 houses. Regardless of how good you are, that’s going to take a ton of work. Therefore, the SFH rental strategy becomes highly transactional: for each “unit” you want to add to your portfolio, you’ll have to buy one house. They’re harder and more expensive to manage. A professional property management company will usually charge around 10% of the collected rent to manage a single family rental. Compare that with 4% – 7% for apartment buildings. Because of the increased expense, many landlords manage their own rentals, at least until they reach a certain size. If you don’t want to manage your own houses, then SFH investing may not be for you. They’re more difficult to sell. Compared to selling 50 apartment building units all under one roof, selling a similar portfolio of SFH rentals is much more difficult for two reasons: (1) It takes a certain buyer to buy a portfolio of SFHs, which means the buyer pool is going to be smaller and (2) it is likely going to be more difficult to find financing for such a portfolio. Alternatively, you’d have to sell off each property separately, which will take time. Their values are market-dependent. The values of SFH rentals are driven by other residential sales comparables. The income normally doesn’t factor into the price of SFH rentals. This means that the value of your portfolio is tied to the residential real estate market in general, which could be good or bad. But either way, it’s very difficult for you to influence the value of your SFH rentals because the market, not its income, will dictate its value. Their vacancy equates to a 100% economic loss. If one of your rental houses is vacant, then you have a total economic loss during the time of the vacancy. Unless you can offset the loss from other income, this can become a real problem. Multifamily Apartment Building Properties Pros They allow you to scale more quickly. Back to our original example with SFHs: Let’s say you want to acquire 20 units in the next 12 months. With SFH rentals you’d have to find and buy 20 individual houses — 20 separate transactions. With multifamily investments, you could get 20 units just by buying one building, in just one transaction. Multifamilies give you the opportunity to scale more quickly which gives you economies of scale. They’re easier and cheaper to manage. The nice thing about multifamily apartment buildings is that “normally” the cost of a professional management company is built into the business model. Professional managers will generally do a better job than you can. And it allows you to be more hands-off, so that you can spend your time finding other deals or doing whatever it is you want to do. If you’re looking for a more passive kind of investment, professionally-managed commercial property is the way to go. You have more control over value. Commercial real estate is as not as dependent on comparable sales as SFH rentals. That’s because it’s normally valued as a multiple of income. The higher the income, the higher the value. It’s therefore possible for you to pay “fair market value” for a mis-managed property, make renovations, increase the rents and decrease the expenses. Within 2-5 years, you’ve increased the overall income and with that, the value of the property. Frequently, even a $50 per month per unit increase in operating income can increase the value of the building by several hundred thousand dollars. This means you have much more control over the value of your real estate. There’s more upside. Because you’re acquiring more units quicker than with a SFH strategy and you can create so much additional value by optimizing the performance of your property, the upside of apartment buildings can be significantly higher than with SFHs. Cons They’re more expensive to buy. Unless you’re buying smaller properties, apartment buildings normally will cost more because, well, they’re bigger and more expensive to buy than a single family house. This seemingly puts apartment buildings out of reach of most investors. I say “seemingly” because some investors are of the impression that they can only use their own money or credit to invest with. However, the solution to this problem is to raise money from other people. Even if it takes you a whole year to raise $500,000 to buy your first apartment building, it will still accelerate your real estate investing career. It’s harder to find good deals right now. It’s true: it’s darn hard to find good apartment building deals right now — all across the country. A lot of commercial real estate investors are being patient with their buying. Some have changed their strategy to SFH rentals because of these challenges. Conclusion SFH rentals are a good strategy because they’re easier to find and self-fund. But if you want to scale up and are looking for a more leveraged use of your time, then raising money to buy multifamily apartment buildings is the way to go. Is it harder? Sure. But is it more worth while in the long run?

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CAPITAL GAINS ON PRIMARY RESIDENCE

Homeowners already know the many tax breaks that Uncle Sam offers, most notably mortgage interest and property tax deductions. Well, he also has good tax news for home sellers: Most of them won’t owe the Internal Revenue Service a single dime. When you sell your primary residence, you can make up to $250,000 in profit if you’re a single owner, twice that if you’re married, and not owe any capital gains taxes. “Most people are not going to have a tax obligation unless their gain is huge,” says Robert Trinz, senior analyst with Thomson Reuters Checkpoint. What is capital gains tax? Capital gains tax, or CGT, is a tax imposed on the profit (capital gains) resulting from the sale of an investment. For example, capital gains are commonly realized after the sale of stocks and property. To calculate capital gain, subtract the purchase price from the sales price. Sale price – purchase price = capital gain Some sellers are surprised by this break, especially if they’ve been in their homes for a while. That’s because before May 7, 1997, the only way you could avoid paying taxes on your home-sale profit was to use the money to buy another, more-expensive house within two years. Sellers age 55 or older had one other option. They could take a once-in-a-lifetime tax exemption of up to $125,000 in profits. And in all instances, there was Form 2119 to fill out to show that you followed the rules. But when the Taxpayer Relief Act of 1997 became law, the home-sale tax burden eased for millions of residential taxpayers. The rollover or once-in-a-lifetime options were replaced with the current per-sale exclusion amounts. “There is some logic to this law change because most people under the prior rules didn’t recognize a taxable gain, because they rolled it over into another residence,” says Trinz. “The change essentially makes it easier to dispose of your residence.” Still some requirements to meet If you used pre-1997 rules for residential sales, don’t worry. That doesn’t disqualify you from claiming the exclusion on any residential sales now. The law change applies to all sales since it took effect. Another bonus to the changed rules? You don’t have to buy another home with your sale proceeds. You can squander the money any way you like. Even better, there’s no limit on the number of times you can use the home-sale exemption. In most cases, you can make tax-free profits of $250,000, or $500,000 depending on your filing status, every time you sell a home. There are a few rules to follow, of course. First, the property you’re selling must be your principal residence. That means you live in it. This tax break doesn’t apply to a house or other property that you have solely for investment purposes. In those cases, the usual capital gains rules apply. You also must live in that principal residence for two of the five years before you sell it. This is known as the use test. It also means, practically speaking, each sale must be at least two years apart. That still leaves you room to make some money on several properties. You can sell your residence this year, pocket any gain within the tax limits and buy a new residence. Then two years later, you can do the same thing, again and again, every two years. And you no longer have to worry about that pesky prior-law reporting requirement. When your gain doesn’t exceed the limit, you don’t have to file anything with the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS WHOLESALING REAL ESTATE

Real estate wholesaling occurs when a party (the "wholeseller") contracts with a home seller, markets the home to potential buyers, and then assigns the contract to one of them. The wholesaler makes a profit, which is the difference between the contracted price with the seller and the amount paid by the buyer. The goal in real estate wholesaling is to sell the home before the contract with the original homeowner closes. A typical wholesaling scenario looks like this: The wholesaler has a house under contract for $90,000 that he estimates needs $20,000 in repairs but will sell for $150,000 once the repairs are made. Using his network of investors, he finds an eager buyer at $100,000. He assigns the contract to this investor, who then has a profitable fixer-upper project. The wholesaler makes a $10,000 profit without ever owning the home. The key to wholesaling is to add a contingency to the purchase contract that allows the wholesaler to back out of the deal if he is unable to find a buyer before the expected closing date. This limits the wholesaler's risk. It is similar to flipping, except that the time frame is much shorter and no repairs are made to the home. As the wholesaler never actually purchases a home, real estate wholesaling is much less risky than flipping, which can involve renovation costs and carrying costs. Real estate wholesaling also involves much less capital than flipping. Generally earnest money payments on a few properties is sufficient. Success depends on the wholesaler's knowledge of the market and connection to investors for quick

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

START REAL ESTATE INVESTING AS EARLY AS POSSIBLE

There’s this old saying that says the best time to plant a tree was twenty years ago. The second best time is now. That especially applies to investing. It’s never too late to begin investing and planning for the future, but the sooner the better. This is true in real estate, as buying a house, an apartment or whatever other type of property you’re looking for can pay off big time if you invest wisely in your 20s. Owning a house rather than renting is often a good way to save money and set yourself up with a valuable asset in the future. However, renting it out can be even better as it’s a guaranteed source of income that can pay off your mortgage while also earning you some extra money on top. Getting an Early Start Many extremely successful people saw the value of investing in real estate at a young age and are now enjoying the fruits of their labor. One of my favorite stories is the 24-year-old college dropout who bought a 5-bedroom condo for $60,000. By renting out four rooms to friends for $300, he was able to live for free while working. Mike Henkel scraped together enough money to buy two more properties in the town. Now, after 42 units, Henkel’s properties are worth $4 million. His story is an extreme one, as he was maxing out his credit cards for each “leap of faith,” as he called. The stress and pressure was enormous, yet it paid off. You don’t have to be nearly as ambitious as Henkel was in order to successfully invest in real estate. For some, such as Rob Mericle, it was commercial real estate that paid off. For others, such as Henkel, it was purely residential real estate that helped solidify their financial future. The Loan Whether you’re looking for that dream home to live in or a good property to rent out, you’ll likely have to work with a bank to get a mortgage unless you’re blessed with heaps of cash. Regardless of which type of loan you want, the bank will take a look at your credit history, which probably isn’t the strongest when you’re only in your 20s. Your score will impact the interest rate of your loan. Fortunately, interest rates have been low for the past few years, with 30-year fixed loans typically at around 4 percent. Low interest rates make buying an even sounder investment, as it means you’ll be able to spend more on the principal of the loan rather than the added interest. An obstacle to all potential property buyers is the down payment. This is typically 20 percent of a home that needs to be paid upfront. A smaller down payment is possible, but this likely means higher interest rates or paying private mortgage insurance. However, as a younger person, you may qualify for first-time home buyer loans. Other loans allow you to put as little as 5 percent down if you plan to live in the home, which is a great way to make money on a property. Renting Out Your Property To make money off your real estate, which you want to do when you consider it an investment, you’ll likely be renting out your properties. Here are a few things to keep in mind as a young property owner: You can do without a property manager, which requires you to pay them, if you live close by and can handle any issues that may come up with the property yourself. This is a nice cost savings. That being said, you should protect your investment property by having a real estate attorney you can trust. They can assist at any stage in the transaction, including negotiating lease terms, drafting documents, handling closing, etc. Make sure to include legal fees in your budget when underwriting your investment. Make sure to add up your cash flow correctly. You need to account for things that aren’t immediately obvious, such as downtime between rentals and upkeep on the property. Vet your renters carefully. You want responsible people who will pay their bills and won’t require any effort from you to oversee. Making the Right Financial Moves Buying makes financial sense. In addition to making money, you’re also learning fiscal responsibility at a young age. You’ll be far ahead of your peers, who probably don’t know an accelerated amortization from an all-in-one mortgage. But most of all, investing in real estate while you are young gives you an education. The money is great, of course. Yet real estate investment teaches you to think in new ways. It requires problem solving and grit and determination to wait for the best deals. You will learn to assess things differently and understand money isn’t always the most important factor in an investment. Sometimes good investments require time, too. Investing in real estate while you’re young will carry benefits that can last a lifetime. Do your homework, be aggressive and open your eyes. This will be a fun and rewarding path.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

6 REAL ESTATE TRENDS TO LOOK FOR IN 2018

In 2017 Americans learned to expect the unexpected, whether it be politics, weather or housing. Driven by record low inventory, little about the housing market went as forecast last year. “We thought there would be some things to take the pressure off,” reflects Skylar Olsen, senior economist at home search site Zillow. Interest rates would rise. Construction would pick up. Price growth would moderate. “That did not happen at any impactful level.” Instead the market got hotter: inventory tightened, prices rose, mortgage rates barely budged and, though new home construction picked up at the end of the year, it was not at the starter price points where new inventory is needed most. Like the soaring stock market, the housing market often seemed disconnected from the tumult in Washington and natural disasters elsewhere. Observes Javier Vivas, director of economic research for Realtor.com: “We saw the economic growth and the economic momentum function as an override for a lot of external forces.” With few clear signs of supply relief and the impact of the new tax law still being digested, reading the housing tea leaves is particularly challenging this year, but here are six things experts expect to happen: 1. The pace of sales will slow early in the year—but not for long. Several provisions in the tax bill signed into law by President Trump last month will directly impact housing. These include changes to the mortgage interest deduction and to property tax deductions. Other changes will impact how much money people have, requiring decisions on how to spend it. Experts anticipate households will take some time to do the math on how the tax plan impacts them and the value of their home before making any big moves. Nevertheless underlying demand should remain strong after the best year for wage growth since the recession. Pent up demand from renters who have been unable to find suitable homes to buy also means the lid won’t stay on for long. Read more on how the new tax law could impact housing here. 2. Inventory will continue to be a drag. A crippling lack of inventory remained the defining trait of the housing market in 2017. At the start experts believed the crunch that characterized 2016 would bottom out; instead it grew worse. According to Zillow, housing inventory declined 10.5% in the 12 months ending in November. Data from brokerage Redfin shows that in November 2017 there were 653,347 homes for sale across the country. In November 2010 there were 967,604. Low inventory, says Olsen, “drove all the dynamics that we saw, from bidding war in the hottest U.S. housing markets, to the incredibly fast home value appreciation” across the country. Looking to 2018, the general consensus is that inventory will pick up slightly. The biggest reason for this modest optimism is that the current situation is unsustainable. Prices cannot rise faster than wages forever. Plus, life events will eventually force reluctant sellers off the sidelines. Home search site Trulia found that 31% of Americans believe 2018 will be a better year then 2017 to sell a home, far more than the 14% who this it will be worse. (Though only 6% of homeowners say they plan to sell.) Another positive signal? New construction has started to swing away from apartments, typically built to rent, to single-family homes, which are built to own. However, it has become clear that the typical assumption that demand and strong prices will entice construction are not holding true this cycle. There are structural reasons builders aren’t building: the high cost of land, skilled labor and building material, lack of buildable space and local regulations against density. Recently, however, builder sentiment has been brighter than consumer sentiment. For a sign of how bad things have gotten, Nela Richardson, chief economist at Redfin, points to the aftermath of hurricanes and wildfires that wreaked havoc last year. Following those tragedies construction resources went to the places where it was needed most. This was necessary, but it “flat lined growth” elsewhere, says Richardson. Meanwhile, in the debate about the tax plan lawmakers indicated inventory woes are not top of mind, suggesting no policy relief on the horizon. 3. Price growth will slow—but not stop. National home prices have climbed for 23 consecutive months. From January through October 2017 the Case-Shiller U.S. National Home Price Index increased 5.92%, on track for the biggest gains since 2013 when the market was finally recovering from the bust. The hottest markets last year were western cities like Seattle and Las Vegas where closing prices rose 12.7% and 10.2% respectively. Experts say prices will continue their march higher in 2018, but the rate of increases will slow. “Underlying the rising prices for both new and existing homes are low interest rates, low unemployment and continuing economic growth. Some of these favorable factors may shift in 2018,” noted David Blitzer, head of the Index Committee at S&P in the most recent release of the monthly reading. 4. The rent versus buy equation could tilt toward renting in costly markets. Thanks to the new tax law, it just got more expensive to own a home in high tax and high price places. For some people the changes, combined with rising prices, may mean renting makes more financial sense than buying. “Since home prices are rising faster than wages, salaries, and inflation, some areas could see potential home buyers compelled to look at renting” particularly in expensive West Coast cities, noted Blitzer. “We begin 2018 with a frigid cloud of uncertainty surrounding the impact of the new tax bill that restricts State and Local tax deductions, both very high in states such as New York, New Jersey, Connecticut, California and Illinois,” noted Leonard Steinberg, president of brokerage Compass, in an e-mail with his quarterly report on the New York’s luxury market. “Will uncertainty lead the consumer to become a society of renters with diminished incentives to buy?” He thinks not. Nevertheless, high rents and student debt loads have also made it difficult for young households to save up a down payment even if they can afford the monthly mortgage. Moreover, with prices rising so fast even a small increase in mortgage rates can put people over the edge on affordability. (Also read: Millennials Get A New Way To Clear The Down Payment Hurdle To Homeownership) 5. Mortgage rates will hover around 4%. In December the Federal Reserve bumped short term interest rates 25 basis points to between 1.25% and 1.50%. Historically, movement from the Fed has had a corresponding effect on mortgage rates, but three hikes in 2017 and two in 2016 only moved the cost of a home loan slightly higher, casting doubt on just how much of a difference the three hikes Fed policy makers have projected for 2018 will have on housing. Experts tend to agree mortgage rates will finish the year between 4% and 4.5%. That’s a touch higher than the rates for most of 2017 but still historically low. What they disagree on is how we’ll get there. Ralph McLaughlin, chief economist at Trulia, for example, expects a slow and steady rise. Greg McBride, chief financial analyst at Bankrate.com, anticipates volatility with rates “dipping below 4% at least once, spiking above 4.5% and closing the year around 4.5%.” 6. Millennial demand for housing will keep climbing. After a decade of decline the homeownership rate finally ticked up in 2017. By the third quarter, 63.9% of households were occupied by owners--up from a low of 62.9% in the second quarter of 2016. McLaughlin says 2017 will be remembered as “the year the bleeding stopped and the healing started.” As Millennials age this trend is expected to continue. The generation of adults born after 1980 were slow to enter the housing market, but as a growing share of them get married and have kids they are buying homes at rates equal to their parents. In fact, single millennials are more likely to own a home than prior generations of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

NEW TRENDS EMERGING IN REAL ESTATE – 2018

As the real estate market continues to evolve, new trends are emerging for 2018. Buyers will be more in control as the housing supply will finally catch up with buyer demand, according to a report by Realtor.com. Additionally, more millennials will be looking to get out of their parents’ basement and purchase a home of their own. Real estate agents have the challenging task of changing with the market and being responsive to their clients’ needs. Whether it is a buyer looking to purchase a new house or a seller looking to get the best price for their home sale, real estate agents will need to stay up on the trends of 2018 and be ready to respond to a growing demand for real estate. 1. Coliving And Community-Driven Spaces Coliving and community-driven residential will increasingly have a larger impact on the multifamily industry as it changes to reflect a new wave of renter demands and wants. Just as amenities have defined the last decade of commercial real estate development, the need for unique experiences and services will heighten competition. 2. Short-Term Rentals The rise of the short-term rental market has created a boom in opportunity for large property owners or the single family owner. Priorities range from renting a room occasionally for extra cash to renting entire vacation homes at three to five times the local and regional market since you now can access a global community. 3. Fractional Investing As peer-to-peer lending and crowdfunding catch mainstream attention, folks looking for greater diversification and passive investment opportunities will engage in factional investing. The last few years have seen some extremely credible startups innovate in this space, and next year could lead to individuals moving away from sole ownership to fractional ownership via crowdfunding. 4. Smaller Living Tiny apartments and mobile living will be a solution to increasing housing density in overpopulated areas. This will become more of a norm in big cities and will drive up operating income on existing apartment stock. This likely won't have a huge effect on 2018, but it will over the next decade. 5. New Appraisal Legislation The new tax bill may further restrict new home-buyers from entering the market. Implementation of appraisal management company regulations in 2018 will increase costs and have the greatest impact on our business. It will increase the cost to do business, which will ultimately increase the cost to the consumer. 6. The Rise Of The Real Estate Investor The stigma around the average real estate investor seems to have faded with the recession but also, the rise of the corporate/national real estate investor is happening as well. I see that niche becoming more competitive, recognizable and digitized in 2018. Many home owners won't think twice about entertaining an investor offer alongside considering selling with agents. 7. On-Demand Access For Renters We often hear from renters that they are too busy to sweat the small stuff. They want immediate tour confirmations, like booking a restaurant on OpenTable, and near-immediate confirmation that they have leased, like booking a hotel. This real-time service expectation from a new generation of renters is exactly what we plan to cater to in 2018. 8. Growth Of Private And Alternative Real Estate Investments We expect consumers will continue to invest more capital into private and alternative real estate assets, as public markets remain at record highs across all major asset classes, and comparable yield risk remains favorable to private real estate vs. higher risk bonds and equivalents. 9. The Rise Of Micro Units Rental rates have been increasing across urban areas for the last several years, and the most impacted cities have seen a rise in micro units. These well-designed rooms, as small as 200 square feet, maximize every square inch available. Places like The Panoramic in San Francisco and Yotel in New York have been the first to embrace the model, and we see this trend expanding over the next year. 10. Millennial Buyers I believe that the new buyers are millennials and we, as agents, need to become more proactive in the community to become that millennial choice. This generation has many different options for home ownership including tiny homes, investment homes and coliving situations with friends or family. It's going to be a huge learning curve and a fun adventure all

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE AND DIVORCE

When you’re divorcing, one of the questions curious friends and family eventually ask is, “So . . . are you going to keep the house?” While a simple answer would make for easy conversation, the reality is that where real estate is concerned, simple answers are often difficult to come by. Should either you or your husband keep your primary residence, or should it be sold so the profits can be divided according to an agreed-upon formula? Even once that is settled, what should happen to the vacation homes? Negotiating a divorce property settlement depends on a fair, impartial and accurate assessment of the value of the property to be divided. But, who should determine how much the real estate is worth? It isn’t something a mediator or a judge can decide. For an accurate evaluation, you’ll need the expertise of a professional real estate appraiser. Here are a few factors to keep top-of-mind when you’re dealing with real estate appraisals. Most real estate appraisals are based on comparable sales. To determine fair market value, an appraiser will look at the property in question, making special note of any unique features. Then, comparable properties that have recently sold in the same market (“comps”) will be identified. The more recent sales there are to compare to, the more confident you can be that these sale prices reflect actual market conditions. (If there’s one particularly low or high price, it’s an outlier that’s not representative of a typical sale for the area.) The comparable sales, in conjunction with any special features of the subject property, are used to determine a number that represents the appraiser’s best assessment of fair market value for your property. Also, remember this: The property’s value as assessed by municipal authorities for tax purposes is also researched as part of the appraisal process, but it isn’t directly related to fair market value. Your property appraisal may come in much higher or lower than the assessed value used to calculate your property tax bill. Unique features may be evaluated differently by different appraisers. For many residential properties, an appraisal is fairly easy to substantiate or defend. But what if your property is unique? Maybe you have the only property in the area with a deep water dock, a greenhouse, a stable or a four-car garage? In cases like these, appraisers’ conclusions may vary, sometimes considerably. When there is a substantial difference between each side’s appraisal of a property, a judge may require that a third independent appraisal be conducted. One woman’s peaceful Zen garden may be another woman’s backyard eyesore. Part of the real estate appraiser’s expertise is in knowing how different real estate amenities contribute (or not) to market value –that’s why it’s essential your property is appraised by a dispassionate professional. Homeowners are often disappointed to find that the costly improvements they’re quite proud of are actually much less valuable to potential buyers than they’d expected. Some features, such as swimming pools, can add less to the market value of a property than what it cost to install them! The appraiser’s report will be rendered without bias or emotional attachment to the window treatments or cabana lighting. Make sure you use an appraiser who’s knowledgeable in the local market. If your financial portfolio includes real estate in different markets, it is very important to engage appraisers who are familiar with those markets. Fair market value for a condo in Aspen, Colorado isn’t best evaluated by an expert on the real estate market in Westchester County, New York. Similarly, fair market values in locations with a large proportion of second homes, be it Nantucket or Naples, Palm Beach or Palm Springs, are most accurately assessed by professionals who work in those markets. Make sure you hire an appraiser who has expert knowledge of the market in which you’ll be selling. Real estate values change over time. You may also need to call on a real estate appraiser if you need to determine what a property was worth at some time in the past. This is called an historical, or “retrospective” appraisal. For example, if you married your husband and moved into a home he already owned, there was likely no appraisal of its value at that time. However, as part of your divorce settlement process –and dependent on the division of property regulations in your state –you might want to show that the property has gained value over your marriage, perhaps due to improvements you made to it with marital funds. You’ll need good estimates of its fair market value then and now. On the other side of that coin, a retrospective appraisal is also worth having if you sell a property at a loss and need to determine how much of that loss was incurred during the marriage. Fair market value is only part of the story. Once you have determined the fair market value, you’ll need to subtract the existing mortgages to find out what your current equity is in the property. Your equity in the property is not the same as money in the bank! If you can sell your property for more than you paid, you may owe both Federal and state capital gains tax after your $250,000 exclusion as a single woman. (Two important notes: 1) This $250K exclusion is applicable only to your primary residence, not your vacation or investment real estate, 2) Federal capital gains taxes were just raised and can now range from 15 to 23.8 percent.) Here’s a simple example to illustrate my point. Let’s say the appraised fair market value of your house is $1,000,000. You have a $400,000 mortgage and you originally paid $200,000 for the house. Your selling costs are 6 percent or $60,000. The $1,000,000 sales price minus $60,000 selling costs = $940,000. Since your original purchase price was $200,000, $940,000 - $200,000 = $740,000 profit. $740,000 profit - $250,000 exclusion on primary residence = $490,000 capital gains. For simplicity, let's assume your total capital gains tax rate is 20 percent. $490,000 capital gains X 20 percent = $98,000 capital gains tax due. So . . . What do you end up with after the sale? $940,000 after selling costs minus outstanding $400,000 mortgage minus $98,000 capital gains tax = $442,000 That $442,000 is now somewhat comparable to $442,000 in the bank. Why do I say only “somewhat comparable?” Because until you sell it, your real estate has carrying costs that money in the bank doesn't have – real estate taxes, mortgage payments, water and sewerage bills, landscaping, fuel, repairs and maintenance, etc. According to a recent article in The Wall Street Journal, appraisals required for divorce proceedings represent an increasing proportion of real estate appraisers’ business, and due to their potentially litigious context, a divorce appraisal may cost several times as much as a simple appraisal for a real estate transaction or refinance. Negotiating a fair divorce property settlement is complicated . . . and it can be difficult. You want your settlement to be determined based on true, accurate and complete information, and as always, the best possible outcome depends on having experts on your team who can anticipate the subtleties of the settlement process. Whether you and your spouse own one primary residence or many properties spread far and wide, a qualified real estate appraiser has a critical role to play in this

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

RENTING VS. BUYING?

At what cost, percentage wise, is it better to rent than buy, if you plan on staying at a given location forever? Buying a home is likely the most expensive purchase you will ever make. And it's not always the right decision. Many factors come into play when deciding whether it makes sense to buy, including: your current cash flow, the local markets, how long you plan to stay, interest rates and potential tax deductions, just to name a few. But it's not just about finances: It's also important to consider the lifestyle ramifications that come with owning a home. Here's what people should take into account when deciding whether to take the leap into homeownership: Your monthly budget The first step when deciding your housing future is to figure out just how much you can afford to spend. First calculate how much money you bring in every month. Next, consider what you spend on essentials like food and transportation. A good rule of thumb is to keep total housing costs — whether renting or owning — at around 28%-30% of your gross monthly income. "You don't want to bite off more than you can chew,". To help make a buy vs rent comparison, Fidelity recommended running a simple price-to-rent ratio: divide a home price by the annual rent of a comparable rental unit. If the ratio is less than 20%, buying is probably a better bet. And it's not just home prices. Interest rates will also play a big role. "When mortgage rates are very low, your buying power is much higher, with rates now that picking up again the dynamic has changing a little bit, said Cheryl Young, senior economist at Trulia. But other factors should be considered as well when making the buy vs rent decision. For instance, how long do you plan to stay in the area? Typically, the longer you stay in a home, the more financial sense it makes to buy. Some online calculators can tell you how long you'd need to live in a city to make buying the more affordable option. Look for calculators that include things like insurance, maintenance, home price appreciation and selling costs. While the figures will be assumptions, they can help paint a more accurate financial picture. In many cities the favor tips to buyers in as little as two years, while in more expensive cities it can take closer to 10 years. But buying a home is also investment and can be a key component of building wealth. Every mortgage payment means you own more of your home, which you will get back when you sell it (hopefully at a higher price than you paid for it, but that's not always the case). "Part of the mortgage payment s is defacto investing into something that appreciates over the long term, and that is a big deal," said Skylar Olsen, senior economist at Zillow. The opportunity costs Buying a home comes with more upfront costs, including a down payment, closing costs and other legal fees. For renters, the upfront cost is typically a month or two of rent for a security deposit. Homeowners also have more reoccurring costs like property taxes, home insurance and maintenance costs. Renting means you could save all that money for a down payment and closing costs and invest in the stock market instead. The return on that investment could potentially be worth be more than a home's price appreciation. "You are sinking a lot of money into a home, which means you aren't investing in stock market," said Joe Kirchner, senior economist for Realtor.com. Tax benefits Homeowners can also take advantage of tax deductions, which can lessen the cost of owning a home. But keep in mind, the newly-passed tax reform dampened some of the deductions. Buyers are now only able to deduct interest on the first $750,000 of mortgage debt on a home. Plus, homeowners can now only deduct up to $10,000 in state and local taxes, including property taxes — a deduction which used to be unlimited. While the changes mostly affect buyers in high-cost markets, the deductions have become less valuable because of the near doubling of the standard deduction, which means fewer homeowners will itemize and take advantage of them. Becoming a homeowner means committing to fixing the leaky roof, backed up toilet or heat pump that stops working on the coldest night of the year. Some people just don't want the responsibility. Renters can pick up the phone and call the landlord. Landlords also tend to pick up the tab for utilities, trash pick up and landscaping Also, consider the source of your income. If your paychecks aren't steady or your job security is uncertain, it might make sense to hold off on buying a home. Renters can always pick up and move to cut back or follow a new

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HAVE A REAL ESTATE LAWYER REVIEW YOUR DOCUMENTS !!!

Almost all real estate transactions begin with the signing of a real estate contract. This document is the most important document in the entire transaction. The contract sets forth the rights and obligations of the buyer and the seller. The contract sets forth what I call the essential terms of the contract, as well as the other terms. The essential terms are the identity of the buyer and seller, as well as the purchase price, closing date, the type of deed the seller must provide and what appliances and fixtures are included in the sale. The other terms include the rights of the buyer to perform inspections, the seller's obligation to make repairs, the quality of title the seller must provide, as well as the many other terms that define how the transaction must proceed. If is for this reason it is important for each party to have an attorney to review the contract to make sure that the party's legal rights are protected and to advise them of their duties and obligations. Once the contract is finalized, the buyer and seller are bound by its terms and may later regret if they did not understand all of the terms or if the terms are not what they intended. The general rule is real estate contracts are to be drafted in plain language. However, there are concepts in real estate transactions which come to us from English common law and practices dating back many centuries. The average lay person may be hard pressed to understand some of those concepts. On the other hand, attorneys are trained in this area and they are better able to advise their clients as to the subtle nuances of real estate law. It is important that each party have an attorney review the contracts to make sure the legal rights of the party are protected and that the party understands the terms of the contract. Realtors are not legally allowed to give legal advice to the parties and cannot represent the legal rights of the parties. The fact that the Realtor-prepared contract is a "standard" contract is misleading. There is no "standard" contract form and each Realtor may have their own form with terms that differ from other Realtors. For example, some forms of contract allow the buyer to cancel the contract if the buyer is not satisfied with the home inspections, while other forms allow the seller the option to cure the defective items before the buyer may cancel the contract. The reader is cautioned that not all real estate contracts contain an attorney review clause. It only applies to residential contracts prepared by Realtors. If the contract contains an attorney review clause, it must be stated at the top of the first page of the contract in bold face. If the contract does not contain an attorney review clause, the buyer and seller should not sign the contract until it is first reviewed by their attorney. Once a contract is signed it is binding upon the party. If the contract does not contain the protection which they want, they will still be bound by what the contract states. In all cases, a buyer and seller will be best served by retaining an attorney to represent each of their interests in reviewing and signing a real estate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

CAN A DRIVEWAY EASEMENT BE TERMINATED?

If you've been sharing a driveway with your neighbor for years courtesy of an easement on your property, there could come a time when the arrangement no longer works for you. Maybe you've acquired more vehicles or it could be that it's become problematic for the neighbor to use the driveway. Whatever your reason for reconsidering an easement, it might be possible to legally terminate it. The legitimate reasons are limited, but the terms of the original agreement may be helpful. Review your copy of the recorded easement. The terms that were set down when the agreement was made could play in your favor. For instance, if the agreement states that your neighbor must share in maintaining the driveway and he has failed to do so, you could be within your rights to provide a written notice to your neighbor of your intent to cancel the agreement, citing failure to abide by the easement's terms. Rather than acting as your own legal counsel, it's best to have an attorney take a look at the agreement, too. A real estate lawyer would know the laws in your state and would be able to apply them to the easement agreement to tell you the best way to go about terminating it. If you buy your neighbor's property, the easement essentially dissolves. That type of termination is also known as termination by merger. Abandonment is also grounds for terminating an easement, and is determined by the easement remaining unused by the neighbor for at least five years and he indicates that he no longer wishes to use it. The amount of time required to show abandonment can differ from state to state, so ask your lawyer what length of time applies in your state. Abandonment can overlap with another reason to terminate: when the easement is no longer being used for its original purpose, such as if the neighbor constructs a driveway on his own property and no longer requires the use of the easement. If your neighbor decides to release his interest in the easement, whether out of the goodness of his heart or for other reasons, terminating the agreement can be done by filing a simple quitclaim deed. The deed must list you as the grantee to which the easement is quitclaimed, and it has to be recorded with the county in order to eliminate the easement from the legal records. As the owner of the servient land, or the ground upon which the easement exists, a claim of financial hardship cannot be used to terminate the easement. If you and your neighbor share a dirt or gravel driveway that he would like paved and you cannot afford to share in that expense, the easement still has to remain intact -- and the driveway likely has to remain unpaved. This is another reason to be familiar with the terms of the easement agreement. The agreement may only call for the two of you to share in maintaining the driveway without requiring either of you to be responsible for improvements, but even if it does require that the driveway be paved, your lack of finances to do so will not be grounds to terminate the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

IS POSSESSION REALLY 9/10THS OF THE LAW?

Possession is nine-tenths of the law is an expression meaning that ownership is easier to maintain if one has possession of something, or difficult to enforce if one does not. The expression is also stated as "possession is nine points of the law", which is credited as derived from the Scottish expression "possession is eleven points in the law, and they say there are but twelve." Although the principle is an oversimplification, it can be restated as: "In a property dispute (whether real or personal), in the absence of clear and compelling testimony or documentation to the contrary, the person in actual, custodial possession of the property is presumed to be the rightful owner. The rightful owner shall have their possession returned to them; if taken or used. The shirt or blouse you are currently wearing is presumed to be yours, unless someone can prove that it is not." The adage is not literally true, that by law the person in possession is presumed to have a nine times stronger claim than anyone else, but that "it places in a strong light the legal truth that every claimant must succeed by the strength of his own title, and not by the weakness of his antagonist's."[ The principle bears some similarity to uti possidetis ("as you possess, so may you continue to possess"), which currently refers to the doctrine that colonial administrative boundaries become international boundaries when a political subdivision or colony achieves independence. Under Roman law, it was an interdictum ordering the parties to maintain possession of property until it was determined who owned the property. In the Hatfield-McCoy feud, with testimony evenly divided, the doctrine that possession is nine-tenths of the law caused Floyd Hatfield to retain possession of the pig that the McCoys claimed was their property. It has been argued that in some situations, possession is ten-tenths of the law. While the concept is older, the phrase "Possession is nine-tenths of the law" is often claimed to date from the 16th century. In some countries, possession is not nine-tenths of the law, but rather the onus is on the possessor to substantiate his ownership. This concept has been applied to both tangible and intangible products. In particular, "knowledge management" presents problems with regard to this principle. Google's possession of a large amount of content has been the cause of some wariness due to this principle. It has been said that there was a time in which the attitude towards rights over genetic resources was that possession is nine tenths of the law, and for the other tenth reliance could be made on the principle that biological resources were the heritage of mankind. Aboriginal people frequently encounter this principle. There is some question as to whether the principle applies to Native American land claims. It has been said that “squatter's rights” and “possession is 9/10ths of the law” were largely responsible for how the American west was really won. Walter Block has stated, "Suppose that 100 slaves worked on the plantation, but only one heir of any of them, B, can now be found. Does B get the entire value of the landed estate (apart from the house), or only one percent of it. The answer is the latter. For possession is 9/10ths of the law. He who is the present land holder (W in our case) is always deemed to be the proper owner, unless evidence to the contrary can be adduced. But the claim of B, stemming from the work of his grandfather, B, can at most encompass what he, B, that is, contributed to the enhancement of the value of the property. The other ninety-nine percent of the value of this land will remain with W, until and unless other grandchildren of slaves come forth with proof of parentage." Murray Rothbard noted that libertarians "conclude that even though the property was originally stolen, that if the victim or his heirs cannot be found, and if the current possessor was not the actual criminal who stole the property, then title to that property belongs properly, justly, and ethically to its current

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

IS IT OK TO BREAK UP WITH YOUR REAL ESTATE AGENT? IF SO HOW?

Buying or selling a home rarely happens overnight, and it’s not uncommon for buyers or sellers to interface or even work with multiple agents. Best-case scenario, the right agent shows their face early, and the relationship (and transaction) is a huge success. But it’s possible though that, along the way, you may find that your relationship with your real estate agent just isn’t working anymore. Maybe the agent is moving faster than you’d like. Or they’re not as available as you need them to be. Maybe they just don’t get you. So what do you do? Is it OK to break up with your real estate agent? And if so, how can you gracefully end it? The answer depends on whether you’re working with an agent as a buyer or a seller. Advice for buyers Real estate agents earn their commissions from sellers, and the money is split between the sellers’ and buyers’ agents. As a general rule, as a buyer, you won’t be asked to enter into a contractual or financial agreement with a real estate agent. Instead, a buyer makes a (sometimes non-verbal) handshake agreement with the real estate agent. You’re basically agreeing to exclusively rely upon that agent. And that’s fair. Agents often work hard and spend a lot of time engaging with buyers, watching the market, writing contracts, showing properties, reviewing disclosures, and so on. Imagine how they’d feel after spending months working with a client, only to be informed that another agent found them the home they want? Before you shake hands, do your homework. Ask friends for references, and check out online agent reviews. Going to open houses is a good way to meet and interview agents who work where you want to buy. Don’t jump in with the first agent you meet. Like any relationship, start slow and feel it out. It’s harder to break up with your agent if you have too deeply engaged. If you’re not quite ready to be tied down, it’s better not to engage an agent until you are ready. Early on, a good real estate agent should read your situation well and provide the appropriate amount of attention as needed. They’ll act as a resource, and be available when you need them. Once the search kicks into high gear, agents and buyers will spend lots of time together and communicate 24×7. If you do find that a relationship is not working, be honest and upfront before more time passes. Offer the agent constructive feedback about why it’s not working for you. Advice for sellers Since the seller pays the real estate agent’s commission, the brokerage requires the seller to sign a listing agreement upfront. During the listing period, you’re contractually obligated to work exclusively with the agent and brokerage firm, specifically on the sale of your home. In fact, even if you find a buyer on your own (such as a friend), the listing agent/brokerage firm is still due their commission. Just as a buyer must do his homework, it’s even more important for a seller to do her research, given the commitment. Most listing agreements state that if the listing agent brings an offer at the listing price and the seller doesn’t accept it, the agent is still due a commission. This scenario happens sometimes when the listing agent and seller aren’t getting along. In most situations, if the listing agent isn’t doing a good job but there’s still time left on the agreement, you should simply tell the agent it’s not working out. A good, fair and honest agent will apologize for not meeting your expectations and will agree to release you from the agreement ahead of schedule. But that’s not always the case, and sellers typically respond by no longer agreeing to open houses or considering offers from the agent. Sometimes, an agent wants to break up with the seller. Maybe the seller insists on keeping the price of the home too high or isn’t cooperating to accommodate showings. The agent simply feels she can’t be successful with the seller, no matter how much time she puts into the job. If you’re a seller whose agent wants out of the agreement because you aren’t taking the necessary steps to sell your home, it’s best to let them go — and to give serious consideration as to whether you’re really ready to sell or

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TENANTS IN COMMON OR JOINT TENANCY?

In Missouri, as is the case in other states, both real and personal property may be titled in many different ways. An individual may hold title to property. A corporation may hold title to property. A trust may even hold title to property. Finally, property may be jointly titled when two or more people share ownership of the property. If you share ownership of property with another person it is imperative that you understand the different types of joint ownership in Missouri. Titling property as tenants-in-common, for example has significantly different legal consequences than titling property as joint tenants with rights of survivorship. In Missouri, property may be titled as tenants in common or as joint tenancy. Within the category of joint tenancy there are some additional variations; however, understanding the difference between property that is titled as tenants in common and as joint tenants is an important starting point. Tenancy in common can be created by any two or more co-owners of property. Property owned as tenants in common creates a distinct and separate ownership right for each of the owners. Upon the death of one owner, the property does not pass to the other owners. Instead, the deceased owner’s interest in the property becomes part of the decedent’s estate. As such the decedent’s interest is passed down to beneficiaries or heirs of the estate. Joint tenancy with right of survivorship, on the other hand essentially creates a situation where each owner owns the whole property. Upon the death of one owner, his or her interest in the property passes directly to the other co-owners. In Missouri, almost any type of property-real or personal-may be held as joint tenancy. It is imperative, however, that the owners include the proper language in the deed, or other ownership documents, to create a joint tenancy. In the case of real property, if the owners are not husband-and-wife, the deed must expressly state an intention to create a joint tenancy with rights of survivorship if the owners intend to create a joint tenancy. Failing to include the proper language will create a tenancy and common because the law presumes that real property owned by two or more people who are not husband-and-wife is owned as tenants in common absent language to the contrary. Personal property may also be held as joint tenants with rights of survivorship. A bank account, for example, stocks, and vehicles, may all be titled as joint tenancy with the proper language on the ownership documents. While there are many advantages to titling property as a joint tenancy it is also important to remember that one should do this it may be very difficult to sell, or otherwise dispose of, your interest in that property in the future absent agreement by the other co-owner. Consult with your estate planning attorney if you have additional

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

GIFT TAXES

A gift occurs when a voluntary transfer for less than full consideration or compensation occurs from a donor to a donee. A valid gift must satisfy the following criteria, to wit: The donor intends to make the voluntary transfer. He or she is competent to do so. The donee is able to receive the gift and has to take delivery. The donor cedes all control over the property given. Types of gifts include: Direct: the donor transfers cash or property directly to the donee. Indirect: the donor makes a transfer for the donee's benefit. Troy pays his girlfriend's credit card balance, as an example. Complete: in making a transfer to the donee, the donor gives up all right and dominion over the property. Incomplete: in making a transfer to the donee, the donor fails to give up all control over the property. If Helmut places money into a revocable trust, then he has made an incomplete gift as he retains the right to control the ultimate disposition of what is in the trust. By contrast, should the trust become irrevocable, then its contents constitute a completed gift. Reversionary Interest: gifts that the donor transfers to the donee which revert back to the donor. Their worth to the donee is their present value rather than fair market value. An example would be when a donor places money in a trust for a specific time period for the donee's benefit. At the end of the term, the money or property reverts back to the donor. The value of the gift is less than the value of the property in this instance. Net Gift: whereas in most instances the donor is responsible for any gift tax, in the case of a net gift, the donee would be. Gift Valuation For gift tax purposes, the value of the gift is its fair market value on the date of its transfer to the donee. Real estate and collectibles would require an appraisal. A bond would be valued as the present value of its future payments. The value of publicly traded shares would be the average of the high and low share price for the day on which they are gifted. An opinion of a qualified valuation specialist would be required for privately held shares (e.g., private equity), taking into consideration potential restrictions on marketability, control and liquidity. For certain property types, the United States Treasury has issued guidelines. Gifting appreciated assets would make more sense to the donor as he or she would remove a larger sum from his or her estate. One needs to consider the totality of one's tax planning needs and consult a professional. When Does the Gift Tax Apply? Once one has determined a transfer to be a gift, the next step is to determine at what point the gift tax will apply to that transfer. Types of Exemptive Relief The Annual Exclusion Gifts up to a certain value per donee per year are subject to an annual exclusion. For 2012, the amount is $13,000. Spouses may split gifts. This means that each may give the $13,000 amount or $26,000. For it to be available, the gift must be of a present, rather than future interest. This means that the recipient is not subject to any restrictions on the right to use the property immediately. Gifts of a future interest, which allow the recipient unfettered access only at a later date, are not eligible for the annual exclusion and are fully taxable. Exceptions would be UTMA/UGMA accounts where money is held in trust for minors who are the beneficial owners of the account and the trustee who is the nominal owner may distribute proceeds for the minor's benefit; a Crummey provision giving a trustee powers of appointment to withdraw money at a future date and gifts to minors in trust ((2503(b) or 2503(c)). The Applicable Unified Credit Amount There is a lifetime of unified gift and estate tax credit amounts which may be used to shelter up to $5.12 million in taxable transfers from the gift tax in 2012. This is the gift tax exemption. Transfers not Subject to Gift Tax Certain types of gifts are exempt from gift tax. Qualified Transfers: Payments made directly to a qualified academic institution or medical care provider on behalf of the donee escape any gift tax. Payments for Support: Legal obligations for children or other dependents may be exempt from gift tax. An example would be payments for higher education and room and board. Payments Pursuant to a Divorce Settlement: Alimony is not a gift, but rather taxable income to the recipient (payee) and a tax deductible contribution to the payor. Property transfers within a year of a marriage's termination and related to that termination is deemed pursuant to a divorce decree and not a gift. Transfers to Political Organizations: Exempt, too, from gift tax are gifts made to political organizations. These are broadly defined as those advocating the selection, nomination or appointment of any individual to federal, state or local public office. Business Transfers: Transfers in a business setting are typically deemed compensation. De minimis gifts such as those to reward years of service or commemorate one's retirement are not subject to the gift tax. Spousal Gifts: Transfers between husband and wife are exempt from gift tax so long as the donee spouse is a U.S. citizen. Should he or she be a non-citizen, there is a limit on the tax-exempt transfer. Charitable Gifts: Gift tax charitable deductions are unlimited so long as the recipient is a federal, state or local government for public use, a 501(c)(3) corporation for educational, religious, charitable or scientific purposes; or a 501(c) fraternal or veteran organization. The Bottom Line One must file a gift tax return ((IRS Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return)) if one gives gifts that exceed the annual exclusion, are of a future interest or exceed the unified credit amount. When determining whether or not one owes gift tax, one needs to determine what gifts he or she gave for the year, whether or not they are exempt from gift tax or within the annual exclusion amount and to what extent they may be offset by the unified credit amount for the year in question. Above all, one should consult a tax professional when undertaking any tax planning

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW MEDICAID RECOVERS THE COST OF LONG-TERM CARE FROM YOUR ESTATE AFTER YOU DIE

If Medicaid pays for nursing home care, the state can try to collect reimbursement for these costs from the person's assets after he or she dies. Medicaid will often pay for nursing home care even for those who have assets that could be used to pay for care. This is possible because Medicaid does't count assets such as a house or car (these are called noncountable assets). But after the person's death, the state Medicaid program can try to collect medical costs from the deceased person's estate. This is called "estate recovery." The federal government has an established policy requiring that all states must try to recover the costs paid on behalf of those who received certain types of Medicaid coverage during their lifetime. All states attempt to recover long-term care costs, including home health services and hospitalizations while in long-term care, and some try to recover regular Medicaid costs as well (though they can generally only recover costs paid for those who were 55 or older or institutionalized when they received Medicaid benefits). When an individual becomes eligible for Medicaid, federal law requires that the state send the individual a written notice describing the rights of the state to recover Medicaid-paid medical costs following the individual’s death. Ways States Recover Costs While individual state laws on estate recovery vary, they all boil down to two different ways to recover costs paid: recovering from the deceased person's estate and putting liens on the person's property. Recovering From the Estate The first method states use is to seek repayment from the estate of a deceased Medicaid beneficiary. Each state defines the term “estate” -- meaning what type of property Medicaid will go after -- differently. Some states are fairly conservative about what they will try to take -- they have the right to recover costs from real estate, personal property, and other assets only if they are included within the deceased person's "probate estate." A probate estate includes only assets that were owned solely by the individual at the time of death, where there is no beneficiary or joint owner designated. Joint accounts, payable on death accounts, and contracts that have designated a beneficiary are not included in the probate estate. Other states use a broader definition of the term estate that includes any assets an individual had legal title to or interest in at the time of death, including property that bypasses probate. In these states, the estate includes assets that the individual attempted to convey to a survivor, heir, or assign through an arrangement such as a joint tenancy, tenancy in common, survivorship, life estate, or living trust. To recover expenses paid under the probate definition of estate, the state files a claim in the probate estate of the decedent just as would any creditor. Under the more expansive definition of estate, the state must enforce its rights by notifying heirs of its rights under state law. Lien on Real Estate The second method for recovering Medicaid costs paid is to place a lien on any real property owned by the person who received Medicaid coverage. During the person's lifetime, the state places a lien on the person's property. When the property is sold, either before or after the person's death, the state can collect repayment from its share of the sale proceeds, as would any other lienholder. When States Can't Recover Costs Even though the states must recover for costs paid when appropriate, there are certain prohibitions that states must follow. States cannot recover Medicaid-paid costs in the following situations. Surviving spouse. The deceased person's spouse is still living, regardless of where that spouse lives. Minor, blind, or disabled child. There is a surviving child under the age of 21, blind, or disabled, regardless of where that child lives. In addition, states cannot recover costs from the former home of the deceased person in the following situations. Sibling caregiver. There is a sibling who resided in the home for at least one year prior to the institutionalization of the deceased and who continues to reside in the home and has an equity interest in that home. Child caregiver. There is a child who resided in the home for at least two years prior to the institutionalization of the deceased, who continues to reside in the home, and can demonstrate that the care they provided delayed the institutionalization of the deceased. When States Can Forego Cost Recovery One situation where a state may "waive recovery" (decide not to try to collect repayment) is when the deceased person's heirs can prove that recovery of Medicaid costs will impose an "undue hardship." Most states consider undue hardship to be when when the deceased person's inheritors have limited income and the estate is their sole income-producing asset (for example, a family farm or other family business that produces a limited amount of income). The state must notify the deceased person's inheritors of its recovery rights and allow them an opportunity to claim an exemption from estate recovery (such as undue hardship or being a sibling caregiver). A state can also waive estate recovery when it is determined that it would be too expensive to try to collect repayment from the estate. Each state is allowed to establish its own rules on what is not cost-effective. Limit on Amount That Can Be Recovered There is a limit on how much can be recovered by the state. States cannot recover more than the total amount spent by Medicaid on the individual’s behalf at or after age 55. Also, states may not recover more than the amount remaining in the estate after claims of other creditors are fully satisfied. The order of payment by which creditors are paid is set forth in state

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

10 RESIDENTIAL REAL ESTATE SCAMS

1. Hackers Stealing Your Down Payment "A hacker could fool you into thinking he's your agent and trick you into sending him money, which you'll never get back. It's so bad the FTC even sent an alert warning consumers that real estate agents email accounts are getting hacked.", says Siciliano. "Let's say your realtor's name is Bill Baker. Bill Baker's e-mail account gets hacked. The hacker observes Baker's correspondences with his clients—including you. Ahhh, the hacker sees you have an upcoming closing. The hacker, posing as Bill Baker, sends you an e-mail, complete with instructions on where to wire your closing funds. You follow these instructions. But there's one last step: kissing your money goodbye, as it will disappear into an untraceable abyss overseas. This scam can also target your escrow agent." "It's obvious that one way to prevent this is to arrange a home purchase deal where there are zero closing costs", says Siciliano. "The scam is prevalent, perhaps having occurred thousands of times. It was just a matter of time until scammers recognized the opportunity to target real estate agents and their clients. The lax security defences of the real estate industry haven't helped. Unlike the entire financial industry who have encrypted communications, the real estate industry is a hodgepodge of free e-mail accounts and unprotected communications." In addition, Robert points out: "Realtors, who are so often on the go and in a hurry, frequently use public Wi-Fi like at coffee houses. Anyone involved in a real estate transaction can be hacked, such as lawyers". When it comes to preventing this particular scam, here are a few points: - Eliminate e-mail as a correspondence conduit—at least as far as information on closings and other sensitive information. - On the other hand, you may value having "everything in writing," and e-mail provides a permanent record. In that case, use encrypted email or some setup that requires additional login credentials to gain access to the communication. - For money-wiring instructions, request a phone call. And make this request over the phone so that the hacker doesn't try to pose as your Realtor over the phone. - Any e-mailed money instructions should be confirmed by phone—with the Realtor and the bank to send the money to. - Get verification of the transfer ASAP. If you suspect a scam, have the receiving bank freeze any withdrawal attempt of the newly deposited funds—if you've reached the bank in time, that is. 2. Real Estate Agents Assigning The Sales To Themselves "I know a victim of a realtor who is scamming his buyers by taking advantage of sudden traumatic life events", says Mariko Baerg from Bridgewell Group. A buyer had purchased a house. Between the time it was a firm deal and the title transfer date he got in a severe car accident and could no longer work for the short term. The realtor that was representing him had coerced the buyer into assigning the sale to the realtor himself for a discounted price because he fearfully convinced the buyer that he would have difficulties keeping his financing from the lender. Assigning to yourself is a clear conflict of interest, the realtor did not try to market the assignment to anyone else, and the sale amount was $100,000 less than market value! He also forged the seller's signature to convince the buyer that it was OK to assign the property. The issue could be avoided by making sure you have a power of attorney lined up in the case that you have an accident, making your realtor show you comparables to confirm what market value is before transferring. Also, if you have a feeling there may be a conflict of interest always obtain legal counsel or receive a second opinion to determine what your options are. 3. Arc Fault Breaker Swap Out Scam This next fraudulent practice is exposed by Jeff Miller, co-founder of AE Home Group: "Arc fault breaker swap outs are a common scam I've seen in the flipping industry. Modern building code requires that electrical boxes contain arc fault breakers as opposed to traditional breakers in order to further prevent electrical fires. While safer, these arc fault breakers can add upwards of $800 to the cost of the renovation. Following the issuance of a use and occupancy permit, some flippers will return to the home and replace these expensive arc fault breakers with the cheaper traditional breakers, adding profit to their bottom line.", says Miller. 4. Real Estate News: Bait and Switch Scheme Another fraudulent real estate practice is the "bait and switch" scheme, explained here by Lucas Machado, President of House Heroes: "The scam occurs when a prospective buyer offers an "above market value" price to a home seller. The seller – blown away by the high offer – excitedly signs on the dotted line. Sadly, the unscrupulous buyer has no intention to purchase the property at this price. Once the seller signs the contract, the seller may only sell to that buyer for a specified time (weeks to even months) for the buyer's purported due diligence. When that time ends, the fraudster asks to extend the contract a few weeks to work out closing details. Sounding reasonable, the seller agrees to the extension blinded by the high offer. "There are two impacts on the seller. The seller keeps paying taxes, maintenance, utilities, insurance and develops an emotional commitment to sell. Here's what happens in the bait and switch: the buyer comes back to the seller with an excuse as to why this price no longer works, requests a reduction to below market value, and threatens to cancel if their demand is not met. Stressed by passage of time and on-going costs, the frustrated seller agrees to the reduction." A concrete example: "Our company had a scenario where we offered $185,000. The seller accepted a $220,000 offer. The "buyer" asked for extension after extension, for 12 months, and then the tired seller agreed to sale price $180,000. The victimized seller had on-going costs around $10,000 and lost approximately $20,000 by not accepting our offer a year ago." How can you avoid the bait and switch scheme? a. Confirm proof of funds at time of executing the contract. b. Do not grant unreasonable extensions or reductions. c. Set expectations early on. d. If extension or reduction is based on condition, request an inspector or general contractor report verifying claims. 5. Duplicated Listings "We often see companies copy our legitimate rental listings and post on Craigslist for a much cheaper price. Unfortunately, many people fall for these fake listings and wire or overnight money to the owners of these fake listings and then cannot get access and eventually locate us and all we can do is refer them to the police. When searching for a rental, do your research and make sure you are working with a reputable company or a licensed agent/broker. If a landlord says they are not local and cannot give you access to the property, that is an immediate red flag. 6. Real Estate Lawyers: Fake Profiles David Reiss from Brooklyn Law School warns about a new type of scam: impersonating real estate lawyers. "In this case, the scammer takes control of the proceeds of a real estate closing by impersonating one of the parties to the closing and redirecting proceeds to an account controlled by him/her. The criminal might impersonate the seller's lawyer and instruct that the proceeds from the sale be redirected to a new account.", says Reiss. "All such changes should be confirmed by a phone call (to a number that you know to be valid!) to confirm that they are from the real seller." 7. Fake Escrow Service Request Nina Furseth, Engagement and Corporate Communications Analyst at RentHop shares her advice: "Real estate scams are likely to occur when the rental market begins to tighten around May when students and graduates begin work or school. Regarding online rental scams, there are several big red flags to look out for such as if: 1. Western Union, Money Gram, or an "escrow service" is involved. 2. Poster is asking you to wire money before you see the apartment. 3. Price is too good to be true. Scammers are constantly evolving and with everything nowadays being so public, they can easily get their hands on official looking documentation such as license numbers from real estate agents, deeds, applications, and so on. Be careful when looking for an apartment. Be smart and realistic, and if anything seems too good to be true, it probably is. 8. Unlicensed Realtor Scam "In this scam, a so-called realtor sells property to a buyer. However, once a check is written for escrow, an unlicensed realtor deposits the money into their own account and not into the escrow account. Do yourself a favor and vet anyone you're going to be working with, both your realtor and the one on the other end of the sale. A LinkedIn account doesn't mean someone is trustworthy or a valid realtor, so do the homework. A person could have been a licensed realtor previously, but may now have an expired license. 9. Title Fraud This scam steals more than a deposit or fee, it involves identity theft. The scammers will fabricate documents to make it look like they are the property owner. Using these materials, the scammer will take out a new mortgage on the property. With a secured loan, the false owner can take the cash and then leave the real owner with remaining payments. Prevent this by getting title insurance and safeguarding personal information. Purchasing title insurance offers financial protection from false impersonation and improperly recorded legal documents that a scammer may attempt to forge." 10. Fake Realtor Sending You For A Viewing One last real estate scam is brought to you by fraud prevention expert Sorin Mihailovici, producer of the Travel by Dart TV show: "Let's say you find a property you really like. You phone the realtor who arranges to meet you there. On your way to the apartment, he calls and mentions he had a small accident and won't be able to make it anymore. However, you shouldn't worry much because he says the landlord will be there to show you around. To make it up to you, the realtor promises to negotiate a lower price than what the landlord will give you. "Call me when you leave the house, don't sign a lease right away," he says. When you arrive at the house you find many other people interested in renting the same place. The landlord gives you a price, but you want to negotiate a better deal. You call the realtor and work out a deal you're happy with. Then you wait for him to confirm with the landlord. He phones you back shortly after and says the new price is okay. All you have to do is wire him the money for the first two months and you're all set. On moving day, you show up only to find someone else moving in. The realtor wasn't a realtor at all; he just found the property online and reposted it with his own contact information. That's how you called him in the first place. He sends several people at a time to generate a sense of urgency for the potential renters. Be careful when dealing in real estate transactions

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

WHAT IS THE DIFFERENCE BETWEEN A MORTGAGE AND DEED OF TRUST?

Promissory Notes To fully understand the difference between a mortgage and a deed of trust, you must first understand promissory notes. Homebuyers usually think of the mortgage or deed of trust as the contract they are signing with the lender to borrow money to purchase a house. But that's actually not the case. It's the promissory note that contains the promise to repay the amount borrowed. (Learn more about promissory notes.) While a promissory note is basically an IOU that contains the promise to repay the loan, the mortgage or deed of trust is the document that pledges the property as security for the loan. It is the mortgage or deed of trust that permits a lender to foreclose if you fail to make the monthly payments or breach the loan contract in some other way. Mortgages Often, people refer to a home loan as a “mortgage,” but a mortgage is not actually a loan. The mortgage is a document that you give to the lender that creates a lien on the property. Certain states use mortgages, while others use deeds of trust. (Find out which states typically use mortgages.) Mortgage Terminology There are two parties to a mortgage: the mortgagor (the borrower) and the mortgagee (the lender). Mortgage Transfers Mortgage transfers between banks are common. When a mortgage is transferred from one party to another, it should be documented and typically is recorded in the county records. The document used to transfer a mortgage from one mortgagee to another is called an assignment of mortgage. (To learn more about assignments, see What's the difference between a mortgage assignment and an endorsement (transfer) of the note?) Mortgage Foreclosures The mortgage gives the mortgagee the right to sell the secured property through the foreclosure process if the mortgagor does not make the payments (or breaches the mortgage in another way). Judicial foreclosures (where the foreclosure must go through the state court system) are typical in states that have mortgages as the security instrument. Deeds of Trust A deed of trust, like a mortgage, pledges real property to secure a loan. It is used instead of a mortgage in certain states. (Find out which states typically use deeds of trust.) Deed of Trust Terminology A deed of trust involves three parties: the trustor (the borrower) the lender (sometimes called a "beneficiary"), and the trustee. (The trustee is an independent third party that holds “bare” or “legal” title to the property. The main function of a trustee is to sell the property at public auction if the trustor defaults on payments. Learn more about the duties of a foreclosure trustee.) Deed of Trust Transfers Like mortgages, when a deed of trust is transferred from one party to another, it should be documented and typically is recorded in the county records. The document used to transfer a deed of trust from one beneficiary to another is called an assignment of deed of trust. (Transfers of mortgages and deeds of trust are both commonly referred to simply as “assignments.”) Deed of Trust Foreclosures A nonjudicial foreclosure process is typically used in states that use deeds of trust. In a nonjudicial foreclosure, the lender can foreclose without going to court so long as the deed of trust contains a power of sale clause. State law lays out the requirements for nonjudicial foreclosures. Nonjudicial foreclosures tend to be much quicker than judicial foreclosures. (To learn more, see our articles Timeline for a Nonjudicial Foreclosure and Timeline for a Judicial Foreclosure.) How to Determine if You Have a Mortgage or a Deed of Trust The differences between a mortgage and a deed of trust affect homeowners only when foreclosure is an issue. To find out whether a mortgage or deed of trust was used to secure your home loan, you can: look at the documents you received when you closed escrow on your house contact your mortgage servicer (the company to whom you make your payments), or go to your local land records office and pull up the recorded document. (Sometimes these records are available

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

ADVANTAGES AND DISADVANTAGES TO OWNING A HOME

Owning a home is the fulfillment of the American dream. For others, it is their worst nightmare. Purchasing a home is one of the biggest financial decisions you will make in your life. So, before you decide to buy, carefully consider the pros and cons of home ownership. When you think about buying a home, many questions will come to mind. Do I really need to buy a home? Is my income going to grow? Will I stay in a home long enough to benefit from the purchase? Have I got enough money saved? Am I ready for the responsibility? Buying a home is a major financial move, so you’re wise to look carefully at the positive and negative aspects. Information in this chapter will help you examine the pros and cons of owning a home, based on your personal desires, future plans, and general financial position. Advantages and Disadvantages of Owning a Home Before buying a home, it’s important to consider how such a purchase will affect your finances and your lifestyle. It makes sense to review all of the advantages and disadvantages of becoming a homeowner before making this big commitment. What Are The Advantages Of Owning A Home? Greater privacy. Homes typically increase in value, build equity and provide a nest egg for the future. Your costs are predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage. The interest and property tax portion of your mortgage payment is a tax deduction. There’s pride in homeownership, which also closely ties you to your community. What Are The Disadvantages of Owning a Home? Home ownership is a long-term financial commitment. You’re responsible for all maintenance on your home. This can include inexpensive repairs like fixing a broken toilet to complex and costly repairs like replacing a furnace. Owning a home ties you to your community, making it more difficult to suddenly pick up and leave a location. Although mortgage payments are usually fixed, they’re generally higher than rent payments. Buying a home requires a down payment, closing costs and moving expenses. The value of your house may not increase – especially during the first few years. Borrowing against your home equity, to help you with a debt consolidation, for example, can leave you ‘house poor’ Advantages and Disadvantages of Renting a Home Depending on your financial situation and preferred style of living, there are many advantages to renting: Renting a home can be cheaper than buying a home. Your payments tend to be lower than a comparable house payment. Also, your rent may cover utility costs (additional savings). You have more flexibility when you rent. Most leases are for 12 months. So, if your job requires you to move frequently, renting can be a desirable alternative to owning. Your landlord, not you, is responsible for performing nearly all maintenance and repair work on the property. Financial Disadvantages of Renting There is no tax break for renting. You won’t be able to claim any deduction for mortgage interest and property taxes when you file your tax returns. Your housing costs aren’t fixed like they are with a fixed-rate mortgage. Your rent will most likely grow from year to year. Here are the factors to consider when comparing buying to renting a home: Home ownership is not for everyone. Home ownership requires you to have a stable or growing income. Financial benefits of home ownership are long term. You should have a budget and savings plan in place before buying a home. Owning a home is a big responsibility. Your credit score will impact how much you can borrow and at what terms. If you have substantial credit card debt, you may want to seek the help of a credit counseling agency and debt management program and pay your debt down, before applying for

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

ADVANTAGES OF AUCTIONING YOUR PROPERTY

An auction is a highly efficient and expeditious way to sell any type of real estate. The terms are straightforward and competitive bidding generates market value. Below are some key benefits our sellers enjoy when they choose a land, commercial or home auction process. Benefits To The Auction Seller: Speed: The sale cycle is compressed and buyers are motivated to act quickly. No longer does a home linger on the market for months. A typical auction results in a sale in 30 days or less. Date-specific: Plan your sale when it makes the most sense for you. You set a date for the auction, and you gain a market-value return on your investment on that date. True Value: There is no risk of overpricing or underpricing the property. In an ordinary listing you’re forced to pick an asking price based on recent sales and gut feeling. But sell too quickly, and your property may have been underpriced. If it lingers on the market, it was probably overvalued. A real estate auction returns your home’s true market value through competitive bidding. Urgency: Auction heightens buyer interest and attracts attention in a crowded market. Buyers no longer have the luxury of waiting for a price reduction or submitting multiple low offers on a variety of properties. They understand that your property will be sold on the published date and they act accordingly. Saturation Marketing: All properties benefit from a professional, customized advertising campaign. Because the sale date is pre-determined and the marketing period is compressed, a complete marketing plan can be built with daily and weekly activities. Multiple channels can be hit simultaneously and repetitively. Attractive Buyers: Buyers come qualified and prepared to buy. An ordinary contract allows buyers multiple “outs” with little or no recourse. Auction buyers come ready to put down a sizable non-refundable deposit. And they are willing to buy the property without the contingencies that so often lead to failed closings and extended listings. No Extra Work: There is no requirement to do work on the property; it sells as-is. Many real estate agents will recommend a laundry list of improvements before even listing. Traditional buyers often produce numerous demands for work they want done. Auction avoids both situations. Reduced Carry Costs: Quick disposal reduces long-term carrying costs such as mortgage, taxes, insurance & maintenance. This ultimately saves you money, in addition to the extra value you capture through sale in a competitive auction environment. Certainty: Protracted and unknown time on the market is not a factor. The seller knows exactly when the property will sell and can plan accordingly. Maximum Exposure: “Saturation Marketing” generates the greatest possible exposure for the property. The key to maximizing your return is capturing as many prospective buyers as possible. Reduced Showings Hassle: The headache of ongoing showings is reduced. Since the property only needs to be marketed for a limited time prior to the auction, all showings must take place in that prescribed period. No Negotiation: The stress of negotiating is eliminated because auction terms are fixed for all bidders. Your buyer has already agreed to purchase the property “as is” and without any contingencies. There’s simply nothing to negotiate. No Contingencies: Contingencies (for inspections, financing, appraisals, etc.) are not allowed. Additionally, the high bidder pays a non-refundable deposit as commitment to complete the closing process as contracted. Why To Choose Auction: Results in a sale in 30 days or less. Returns your home’s true market value. Auction buyers come ready to put down a sizable non-refundable deposit. Reduces long-term carrying costs. Negotiating is

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

YOUR REALTOR NOT REPRESENTING YOUR INTERESTS?

It may be hard to believe, but I receive calls regularly from buyers and sellers that have become estranged from there realtor or feel they are being taken advantage of by the realtors involved in the sales transaction. Here are some examples: Example #1 Listing agent lists property for a seller. An offer eventually gets accepted by the seller for $150,000.00. The bank on behalf of the buyer conducted an inspection and the appraisal came out at $135,000.00. Despite the contract specifically providing for the right of either party to cancel in the event the property did not appraise for the full purchase price, the seller’s agent told her THAT SHE HAD TO SELL THE PROPERTY FOR WHAT THE PROPERTY APPRAISED FOR AND THIS WAS A VERY ESTABLISHED REALTOR!!!!! The seller felt something was wrong and called me. I reviewed the contract with her and the standard MLS Board Approved Real Estate Contract provides for cancellation in the event the property does not appraise for the full purchase price. In this case the seller did not want to sell the property for $135,000.00 and at this point was being harassed and belittled by her own agent and the seller was at her wits end. I contacted the realtor and let her know the seller was now being represented by an attorney and that the seller had made the decision to cancel the listing and that she was being given 48 hours to take her lock box off the door and pick up her sign. The realtor was mad and put up an initial fight but after realizing she was wrong on the appraisal issue. Realizing the degree to which the relationship had fallen apart with the seller, she cancelled the listing, took her lock box off the door, and picked up her sign. Example #2 Buyer agent was representing a buyer that was buying her first house. First time home buyers are by far the largest group that get taken advantage of by realtors. In this case a home was looked at and the buyer initially stated that she liked the home but did not feel like somewhere she could consider home. The realtor suggested the buyer write an offer just to put the house under contract and to give her the option to buy it should she decide to go through with a purchase. An offer was made and accepted. The buyer repeatedly called and attempted to communicate with her realtor to explain that she did not want to go through with purchasing the property. Despite the buyer’s pleas for a cancellation, the realtor kept moving forward with the sale. The buyer knew there was a problem and did not know where to turn. She contacted my office and I communicated with the realtor and explained that she was the agent, not the principle, and that she must follow the instructions of the principle – the buyer. Eventually the sale was called off and the buyer went on to find a new agent and successfully purchased a house she felt she could make home. Example #3 Seller had an agent. Seller fired the agent and a cancellation agreement was signed by all the parties. The seller then found a buyer FSBO, wrote up a contract, and took the contract to a title company and showed the agent from the title company the cancellation. The underwriter for the title company mailed a letter to the fired agent and requested a letter from the agent stating that they were not owed a commission. The agent refused to provide the requested letter, despite clearly having no right to a commission. With a closing date rapidly approaching the seller got worried and contacted me. I contacted the agent and was unable to persuade the agent that a commission was not due. Ultimately, we decided to terminate the title company and went to another title company that did not make a “no commission due” letter a condition of issuing title insurance. The sale went through perfectly, and the agent did not get paid the money she was not owed! It is important to understand that realtors only get paid if they conclude a sale. Therefore, at times realtors do and say things that are not in their client’s best interests to earn a pay check. In addition to the need to earn a paycheck I have also noticed the following characteristics tend to exist when realtor disputes arise. The common characteristics I have seen involving realtor disputes are: Age – buyer is either very young or very old. First time home buyer – typically a young couple that have never purchased a house before. Self-Dealing – Agents talk to a seller to start a listing and realize the seller is expecting to receive considerably less than the true fair market value of the property. Instead of explaining that to the seller so the seller can make more money, they themselves or through another party purchase the property for the discounted amount AND EARN A COMMISSION!! New Agent or Inexperienced Agent – The agent does not know what to do and instead of making the buyer or seller aware of that they hedge their answers or give incorrect information that eventually hurts the buyer or seller due to lack of representation Misrepresentation – The agent will hire their own inspector, their own contractor, or even their own lender, to make the transaction easier for the agent to earn a commission, not better for their client. Agents that sell properties they own – Sometimes agents will sell properties they personally own and not explain that to the buyer. Small towns – Buying or selling a property in a very small town where there are very limited options for representation and all the realtors in the town know one another. Old homes or homes that have challenges – Instead of explaining to the buyer that the home is old and therefore may have wiring problems or plumbing problems, or that the grading of the yard will create flooding into the property in cases of hard rains, they push the buyer to buy for a commission and do not fully explain these challenges to the buyer. Being a real estate agent is not easy. They only have income if a transaction completes. Real estate agents have bills to pay, just like the rest of us. Real estate agents do not have an unlimited amount of time, just like the rest of us. Real estate agents are not bad people, its just that the incentives and motivations for a commission can sometimes cause them to withhold, distort, or misrepresent important information that a buyer or seller need to make the best decision. If you are in a dispute with a realtor call our office. We will evaluate the merits of your claims and provide you alternatives. We will contact the realtor’s broker if necessary, and will take whatever other steps that will lead to creating a more favorable outcome for

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

FSBO TRENDS IN THE MARKETPLACE

FSBO TRENDS IN THE MARKETPLACE The traditional way of selling real estate continues to change exponentially because of 1) a general dislike of real estate agents, 2) the desire to not pay a 6% commissions 3) the desire for more transparency in the sale transaction 4) the desire for more control in the real estate transaction 5) many of the functions the real estate agent traditionally performed in the marketing of properties can now be performed without the necessity of a real estate agent 6) lack of housing inventory has created a situation where the demand for properties far exceeds the supply of properties making it much easier for sellers to find a buyer. In a FOR SALE BY OWNER transaction a seller has found a buyer without the assistance of a real estate agent, or a buyer has found a seller without the assistance of a real estate agent. Trulia, Zillow, Realtor.com, and other real estate websites now enable individuals to market their property for sale without the necessity of hiring a real estate agent. This is a fairly new approach to real estate sales that was simply not possible in the past. In the past the only way to market a property was a sign in the yard, conduct an open house, and hire a real estate agent to enter the property into the Multiple Listing Service which is a paid website designed for real estate agents and real estate brokerages. Today an unrepresented seller or buyer has access to practically 100% of the same information that a real estate agent and brokerage does. This has created a trend in the industry of sellers testing the market first before hiring a realtor through internet real estate sites that are specifically designed to serve that function. Often non-represented sellers successfully find a buyer but do not know what to do next, or an unrepresented buyer has found a seller and does not know what to do next. Traditional Realtors are paid a commission when a sales transaction occurs. Traditional brokerages charge 3% on the listing side and 3% on the buyer broker side. They do not fill out forms for FSBO clients because they are SALES AGENTS and because their brokers will not allow them to act in that capacity. Also, because they are not attorneys they are required to have agency agreements executed (in order to avoid acting in the capacity of an attorney) and other forms which do not envision an FSBO transaction. Its just not what realtors do. Buyers and sellers recognize the value of avoiding 6% commissions and believe they can perform many of the same functions of a realtor. While it would be impossible for non-licensees to perform all acts of a realtor, the seller can do just enough to attract a ready and willing buyer, and a buyer can do just enough to attract a willing and able seller and reach agreement on basic terms. It is at this point that our services can be very beneficial to the FSBO process. We draft the real estate contract and take the sale all the way through closing, paying attention to the wants and needs of the buyer and seller. Agreements are reached on sale price, earnest money, inspections, appraisals, repairs, closing date, and title company to use. We have one title company we use in Kansas and one title company we use in Missouri. Our ongoing relationship with the title companies means your not just another person with the title company and every effort therefore is made to ensure a smooth and successful sale transaction. Title companies are weary of unrepresented FSBO clients because they know that many of the usual checks and balances may not have occurred increasing liability and work. When they know our firm is representing the parties to the sales transaction they have the assurance that the necessary checks and balances have occurred and that they have one point of communication on all matters relating to the sales transaction. Also, because of our continuing relationship they know what to expect from the beginning which reduces or eliminates uncertainty through the process. The advent of these real estate marketing websites had been very disruptive to the traditional real estate model of hiring a real estate agent and paying the commissions associated with a real estate broker to broker sale transaction. In the traditional real estate sales model there is a listing agent and a buyer agent. The commission is typically 3% of the sale price to the listing agent and 3% to the buyer agent for a total of 6% of the sale price. Sometimes the listing agent acts in both the capacity of a listing agent and a buyer agent in the case of a listed property and a buyer that is unrepresented. If you are a buyer - It is critical to understand that in cases where there is a listing agent but the buyer is unrepresented the listing agent collects the entire 6% commission! If you are a buyer and buying a property that has a listing agent make sure to hire a buyer agent to represent you as a buyer because you are paying the 3% buyer broker commission to the listing agent even if you do not have an agent representing you! As a real estate brokerage we can represent you as a buyer for a discounted amount and return the difference in savings to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

How do 20 somethings pay there rent? What is the effect of parental support of 20 somethings?

Almost half of people in their early 20s have a secret, one they don’t usually share even with friends: Their parents help them pay the rent. Moving into adulthood has never been easy, but America’s rapidly changing labor market is making it harder to find economic security at a young age. Skilled work is increasingly concentrated in high-rent metropolitan areas, so more young people are tapping into their parents’ bank accounts. According to surveys that track young people through their first decade of adulthood, about 40 percent of 22-, 23- and 24-year-olds receive some financial assistance from their parents for living expenses. Among those who get help, the average amount is about $3,000 a year. It’s a stark reminder that social and economic mobility continues past grade school, high school and even college. Economic advantages continue well into the opening chapters of adulthood, a time when young people are making big personal investments that typically lead to higher incomes but can be hard to pay for. The amount of help that parents provide varies by career and geography. Among young people who aspire to have a career in art and design, 53 percent get rent money from their parents. Young people who live in urban centers are more likely to have their parents help pay the rent. The average amount of parental help for the 20-somethings — roughly $250 a month — covers 29 percent of the median monthly housing costs in America’s metro areas. The choice of career path matters. Those in the art and design fields get the most help, an average of $3,600 a year. People who work in farming, construction, retail and personal services get the least. Patrick Wightman, an assistant professor at the University of Arizona who helped The Upshot analyze the data from a nationally representative cohort of more than 2,000 young people from 2007 to 2013, says this division has to do with the higher barriers of entry into fields like art, education, health and law. Some jobs in science, technology, engineering, management and law have clearer and more substantial payoffs after years of internships and postgraduate training. But pay in art, design and education is low in the early years, and for some people, it remains low. Young people are also taking longer to graduate from college or technical school, if they graduate at all. Although two-thirds of high school students go to college, only half end up graduating. “Someone who wants to go into graphic design or marketing requires a fair amount of time to get up to the point where you’re independent,” Mr. Wightman said. “Someone contemplating that kind of career isn’t going to take that first step unless they know they’re going to have that support to take an unpaid internship. If you don’t have other sources of support, that’s not even an option.” There are also significant differences for young people who live in bigger cities. Young people in metro areas with a million or more people are 30 percent more likely to receive rent money from their parents than those in smaller cities. After controlling for other factors, the big-city residents receive twice as much support. This helps explain the country’s decline in internal mobility over the past few decades. In the 1980s, 5.1 percent of those 18 to 24 moved across state lines. By the 2000s, that figure had fallen to 3 percent. When the barriers to moving to metro areas with high-paying jobs are too high, it undermines the long-held belief that people can simply uproot themselves for better job opportunities. That may have been true in the past, when low-skilled work paid better and rents were lower, but the survey data suggests that it’s harder to do without a little help. Financial dependence among 20-somethings has steadily grown in the past few decades. In the 1980s, Mr. Wightman found, fewer than half of this age group received any parental support. But by 2010 nearly 70 percent of them did. Living expenses account for only 20 percent of the help that parents give their children. According to the survey, the bulk of the support comes in the form of lump-sum gifts for things like a down payment on a house or capital to start a business. Mr. Wightman said that parental help, “just by being there, influences the decisions that you make, in the major you pick, where you go to college and the type of work that you want to go

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Airbnb is facing an Existential Expansion problem

Airbnb Is Facing an Existential Expansion Problem Tom Slee JULY 11, 2016 Surprisingly, the new Airbnb ad campaign exhorts you not to be a tourist: “Don’t go to Paris, don’t tour Paris, and please don’t do Paris.” But then the punchline: “Live in Paris…even if it’s just for a night.” Airbnb executive Jonathan Mildenhall told Adweek that the campaign reflects a growing “demand for experiences that are not like the typical tourist experiences, that actually more reflect what it’s like to live in local places.” But how many travelers can “live there” before Airbnb accepts that it has become a vehicle for mass tourism, and that its users are tourists, no more and no less? Like other parts of the tourist industry, Airbnb has become a double-edged sword. Visitors get new experiences and bring in money, but as their numbers grow, they erode the very atmosphere in which they bask and threaten the livability of the city for residents. Two years ago, there were 20,000 Airbnb listings in Paris. A year later the number had climbed to 40,000 and a housing inspector told The Wall Street Journal, “The center of our city is becoming deserted. More and more, it’s just tourists.” Since then, yet another 20,000 listings have appeared, so it’s no surprise that the company with the tagline “Belong Anywhere” has experienced a frosty welcome from city governments around the world struggling to deal with this explosion of tourist accommodations. Airbnb continues to present its business as low-impact, made up of everyday hosts occasionally renting out their own home. A recent Airbnb report on its business in Lisbon shows that “many listings on Airbnb in Lisbon are local residents’ homes,” reassuring readers that “72 percent of hosts in Airbnb in Lisbon have only one listing.” But this is being economical with the truth: My independently collected data set shows that the 28% of hosts with more than one listing (who can be considered “commercial” hosts) account for two-thirds of the company’s business in Lisbon. And while Airbnb claims that “70 percent of Airbnb guests in Lisbon stay outside the typical tourist hotspots,” my data shows that the majority of visits take place inside the two central districts of Misericórdia and Santa Maria Maior, an area of only about six square kilometers. With the number of listings in this small city of half a million people growing from 5,500 in May 2015 to over 10,000 today, a significant impact is inevitable. João Seixas, a geography professor at the New University of Lisbon, and his colleagues are “very much concerned with what is rapidly happening to the historical center of our beautiful city. Our estimate is that in the last three years, around one-quarter or even one-third of the housing stock has changed function, mainly toward financial investments and short rentals.” What is the endgame for cities where Airbnb continues to expand? Some cities say they don’t want to be “the next Venice,” turning into a theme park for tourists, with locals pushed out. It’s not an unreasonable concern. Kristen V. Brown of Fusion visited Reykjavik (yes, as a tourist). It’s a small city, with a population of only 120,000 people and a flood of tourists. Drawing on data I supplied, Brown wrote, “The city’s only apartment rental website, leigulistinn.is, listed just nine apartments for rent in downtown Reykjavik. There were 22 in the entire city….In Reykjavik there are roughly 50,000 apartments; 2,551 of them, or 5 percent, are Airbnb units.” Even smaller communities are experiencing problems of scale when it comes to Airbnb. Joshua Tree is a tiny town of 7,000 people on the edge of the Joshua Tree National Park in California. It has over 200 available Airbnb rentals. Resident Christine Pfranger observes that “locals are having difficulty finding homes to rent, and are being pushed out of their homes to make way for more vacation rentals.” Another resident adds, “Airbnb and vacation rentals are changing our community….House prices are going up because people now buy houses to rent out as vacation rentals, making it close to impossible for people working in the area to buy a house.” Airbnb professes to be open to partnering with cities, but it has shown little interest in these problems; the company forcefully opposes any measures that would limit the scale of its business. Airbnb’s rocky relationship with its hometown of San Francisco recently took a turn for the worse. In February 2015 a new rule required Airbnb hosts to register with the city, but over a year later only about a fifth have done so. Now the city is holding Airbnb responsible for its hosts and will impose a fine on the company of $1,000 per day for each unregistered listing that the city can discover. It’s a new level of seriousness, following similar actions in New York state and Chicago. Airbnb’s response is to take San Francisco to federal court, arguing that the city is violating three laws. Section 230 of the 1996 Communications Decency Act (CDA) provides that website owners are not responsible for (by virtue of not being the publishers of) content provided by users on their sites. It’s a law that protects bloggers, newspapers, and social media sites like Craigslist, Yelp, and YouTube. The 1986 Stored Communications Act (SCA) says that governments must have a specific subpoena before they are entitled to information about users of a web service. And finally, Airbnb is claiming protection under the First Amendment, arguing that the new rule is a “content-based restriction.” Airbnb presents its business as a matter of speech. Much as it promotes the idea of “living like a local” in the cities where it makes its money, the company says it ultimately has no responsibility for what happens on the ground, just like a website with comments. If Airbnb is successful, and some experts believe it has a good chance, the CDA will free the company of responsibility for the impact of its business, and the SCA will prevent cities from finding hosts, and thus Airbnb, responsible. City governments throughout the U.S. would be helpless to curb the number of Airbnb listings or the intensity of the tourist business that they bring. It’s a potent mix of bad incentives. But all would not be smooth sailing for Airbnb. The majority of its business is now in Europe, where Berlin, Barcelona, and, to a lesser extent, Paris are finding a new assertiveness in dealing with the explosion of vacation rentals. Meanwhile, the mayors of 10 major markets around the globe are starting a task force to construct a common response to the problems that Airbnb brings. Such developments are timely. Without them, authentic tourist experiences may be bought at the price of those who matter most: actual

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Ackowledgement vs Jurat – 2 forms of notarial acts

Acknowledgement and jurat certificates are the two most common notarial acts, yet there is confusion about the difference between these forms for many signers. Some notaries even find it difficult to remember which procedures apply to which certificate. Jurats A jurat is used when the signer is swearing to the content of the document. The notary must administer an oath or affirmation to the signer in order to complete the jurat. A jurat also requires that the signer signs in the presence of the notary. It is possible to glean this information from the jurat certificate its self. The wording states “Subscribed and sworn to before me…” – subscribed meaning “signed” and sworn meaning that an oral oath or affirmation was given. “Before me” means that both were done in the presence of the notary public. Acknowledgements An acknowledgement is used to verify the identity of the signer and to confirm that they signed the document. They are not swearing to the truthfulness or validity of the document, they are simply acknowledging that they signed the document. For an acknowledgement in the state of California, a signer is not required to sign the document in the presence of the notary public, but they are required to personally appear in front of the notary to confirm their signature. While it is important for a notary to understand the difference between the two, California notaries public are not allowed to determine which type of certificate a signer uses. To do so would be considered practicing law without a license. A Notary can only ask the signer which form they prefer; if they don't know, the notary will refer them to the originator of the document for an

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Technology – Society and Laws cannot keep up with pace of changes

Employers can get into legal trouble if they ask interviewees about their religion, sexual preference, or political affiliation. Yet they can use social media to filter out job applicants based on their beliefs, looks, and habits. Laws forbid lenders from discriminating on the basis of race, gender, and sexuality. Yet they can refuse to give a loan to people whose Facebook friends have bad payment histories, if their work histories on LinkedIn don’t match their bios on Facebook, or if a computer algorithm judges them to be socially undesirable. These regulatory gaps exist because laws have not kept up with advances in technology. The gaps are getting wider as technology advances ever more rapidly. And it’s not just in employment and lending—the same is happening in every domain that technology touches. “That is how it must be, because law is, at its best and most legitimate—in the words of Gandhi—‘codified ethics,’ ” says Preeta Bansal, a former general counsel in the White House. She explains that effective laws and standards of ethics are guidelines accepted by members of a society, and that these require the development of a social consensus. Take the development of copyright laws, which followed the creation of the printing press. When first introduced in the 1400s, the printing press was disruptive to political and religious elites because it allowed knowledge to spread and experiments to be shared. It helped spur the decline of the Holy Roman Empire, through the spread of Protestant writings; the rise of nationalism and nation-states, due to rising cultural self-awareness; and eventually the Renaissance. Debates about the ownership of ideas raged for about 300 years before the first statutes were enacted by Great Britain. Similarly, the steam engine, the mass production of steel, and the building of railroads in the 18th and 19th centuries led to the development of intangible property rights and contract law. These were based on cases involving property over track, tort liability for damage to cattle and employees, and eminent domain (the power of the state to forcibly acquire land for public utility). Our laws and ethical practices have evolved over centuries. Today, technology is on an exponential curve and is touching practically everyone—everywhere. Changes of a magnitude that once took centuries now happen in decades, sometimes in years. Not long ago, Facebook was a dorm-room dating site, mobile phones were for the ultra-rich, drones were multimillion-dollar war machines, and supercomputers were for secret government research. Today, hobbyists can build drones and poor villagers in India access Facebook accounts on smartphones that have more computing power than the Cray 2—a supercomputer that in 1985 cost $17.5 million and weighed 2,500 kilograms. A full human genome sequence, which cost $100 million in 2002, today can be done for $1,000—and might cost less than a cup of coffee by 2020. We haven’t come to grips with what is ethical, let alone with what the laws should be, in relation to technologies such as social media. Consider the question of privacy. Our laws date back to the late 19th century, when newspapers first started publishing personal information and Boston lawyer Samuel Warren objected to social gossip published about his family. This led his law partner, future U.S. Supreme Court Justice Louis Brandeis, to write the law review article “The Right of Privacy.” Their idea that there exists a right to be left alone, as there is a right to private property, became, arguably, the most famous law review article ever and laid the foundation of American privacy law. The gaps in privacy laws have grown exponentially since then. There is a public outcry today—as there should be—about NSA surveillance, but the breadth of that surveillance pales in comparison to the data that Google, Apple, Facebook, and legions of app developers are collecting. Our smartphones track our movements and habits. Our Web searches reveal our thoughts. With the wearable devices and medical sensors that are being connected to our smartphones, information about our physiology and health is also coming into the public domain. Where do we draw the line on what is legal—and ethical? Gutenberg etching Disruptive technology: A 1568 printing press. The technology brought social upheaval. Then there is our DNA. Genome testing will soon become as common as blood tests, and it won’t be easy to protect our genomic data. The company 23andMe ran afoul of regulators because it was telling people what diseases they might be predisposed to. The issue was the accuracy of the analysis and what people might do with this information. The bigger question, however, is what businesses do with genomic data. Genetic-testing companies have included contractual clauses that let them use and sell their clients’ genetic information to third parties. The Genetic Information Nondiscrimination Act of 2008 prohibits the use of genetic information in health insurance and employment. But it provides no protection from discrimination in long-term-care, disability, and life insurance. And it places few limits on commercial use. There are no laws to stop companies from using aggregated genomic data in the same way that lending companies and employers use social-media data, or to prevent marketers from targeting ads at people with genetic defects. Today, technology can read-out your genome from a few stray cells in less than a day. But we have yet to come to a social consensus on how private medical data can be collected and shared. For the most part, we don’t even know who owns an individual’s DNA information. In the U.S., some states have begun passing laws to say that your DNA data is your property. We will have similar debates about self-driving cars, drones, and robots. These too will record everything we do and will raise new legal and ethical issues. What happens when a self-driving car has a software failure and hits a pedestrian, or a drone’s camera happens to catch someone skinny-dipping in a pool or taking a shower, or a robot kills a human in self-defense? Thomas Jefferson said in 1816, “Laws and institutions must go hand in hand with the progress of the human mind. As that becomes more developed, more enlightened, as new discoveries are made, new truths disclosed, and manners and opinions change with the change of circumstances, institutions must advance also, and keep pace with the times.” The problem is that the human mind itself can’t keep pace with the advances that computers are enabling. Vivek Wadhwa is a fellow at Arthur & Toni Rembe Rock Center for Corporate Governance, Stanford University, and holds appointments with Singularity University and Duke’s Pratt School of

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

The importance of a lawyer in a residential real estate transaction

A Lawyers’ involvement in residential house sales began dwindling in the 1980s with the advent of HUD regulations requiring title insurance for mortgages, secured by residential properties, which were being bundled and sold on the secondary market. Lawyers lost most of the title examination business to title insurance companies and consequently began to lose contact with consumers. In 2005, lawyers are rarely involved in residential transactions. (The usual statutory definition of residential real estate is property occupied by one to four families as their residence.) Over that same time period, residential transactions have become increasingly complicated, to the point where most lawyers do not know how to represent residential clients. Never have so many disclosures been required. We have abdicated our involvement to real estate agents and title companies, neither of which is able to give legal advice to buyer or seller. Your client can buy or sell a house without your representation, but is it advisable? The title company may be willing to accept the risk of loss, but is your client? Lawyers skilled in residential representation believe that lawyers should be involved in everytransaction, in order to prevent unnecessary expense, to guide the clientthrough a complicated legal situation and to keep the client out of a future, expensive, lawsuit. This step-by-step guide is intended to help lawyers get back to serving the needs of residential buyers and sellers. I. WHY A LAWYER’S INVOLVEMENT IS NECESSARY IN RESIDENTIAL TRANSACTIONS A. Large amount of money. For most people, a house is the most expensive item they will buy. B. High degree of complexity in the sales contract. C. Four separate contracts. Most transactions will involve a listing contract, between client and real estate broker, a purchase agreement, between client and buyer/seller, a mortgage, between client and lender, and title insurance between client and title insurer. D. Conflicting interests (broker, lender, title company). Client does not have the knowledge or experience to represent his or her own interests . . . only the lawyer can fill that role. E. Emotionally draining. Lists of stressful events always have buying or selling a house near the top. Parties represented by a competent lawyer will enjoy more peace-of-mind and avoid improvident spur of the moment decisions. II. THE LAWYER MUST PROVIDE COMPETENT REPRESENTATION A. Myth: Filling in blanks on a preprinted form does not require legal decisions. Reality: There is no “simple” residential transaction. Many federal and state real property consumer protection statutes pertain only to residential property and transactions. Manymunicipalities impose additional requirements. Dual agency is rarely an issue withcommercial sales of property, but very often is with residential. B. Competency required by ethics code. “A lawyer shall provide competent representation to a client. Competent representation requires the legal knowledge, skill, thoroughness and preparation reasonably necessary for representation." Industry practices, unchallenged due to the absence of lawyers, have developed which operate to the detriment of the client. The naïve and unlearned lawyer will be no match for the market forces operating in the residential real estate industry. You must know what you are doing! III. HOW TO JUSTIFY ATTORNEY FEE'S A. Myth: I cannot afford a lawyer. Reality: Buyer and seller can hardly afford to not have alawyer. The purchase agreement require decisions on issues of buyer’s and seller’s respective responsibilities, liabilities, financial obligations and timing. Frequently other transactions, such as a purchase by seller or a sale by buyer, will be affected by the particular purchase agreement. The caution on the document to seek legal advice or to consult a lawyer is good advice. B. Lawyer’s services often save the client money. 1. Elimination of unwarranted costs. a. A lawyer can save money for a client starting with the listing agreement. The lawyer advises the client regarding an appropriate commission to be charged for the level of service to be required or to be provided by the real estate agent, and the anticipated difficulty of the listing and selling services. Some homes are as good as sold the instant they hit the market. Some homes are in fact sold before they hit the market. Most home sellers are not knowledgeable enough to understand and negotiate these matters. b. A properly negotiated purchase agreement will appropriately and fairly allocate responsibility for real estate taxes, special assessments, deferred taxes, abstracting and costs of closing. c. Myth: Since the settlement statement is a government form, the expenses shown on it are accurate. Reality: Closing expenses on the HUD-1 settlement statement are frequently subject to error in either the amount of the expense properly chargeable or the allocation of an expense. 2. Avoidance of future litigation. a. The lawyer can provide invaluable counsel for seller or buyer regarding the traps that can arise from the disclosure requirements in residential real estate transactions. The lawyer can advise regarding what can realistically be expected from the disclosure, as well as when disclosure should not be made. Real estate agents may require unnecessary representations to enhance the marketability of the property. Such representations could lead to future claims against the seller, only, due to the common practice of requiring the seller to indemnify the listing agent and broker. b. The lawyer can assist seller or buyer in enforcing the purchase agreement or canceling the purchase agreement. c. Title insurance is nearly universal in the current mortgage financing universe. The average residential buyer or seller is not sophisticated enough and informed enough to understand the title insurance policy and what is given and what is taken away and what are the policy’s limitations and benefits. In a typical transaction, the buyer does not see the title policy until after its issuance, if then. BUYERS AND SELLERS - HIRE A LAWYER !!!

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Disclosures in Real Estate Transactions

Why Is "Full Disclosure" Important? In business transactions, especially real estate deals, the contract often contains a full disclosure requirement. Full disclosure means being truthful and forthcoming about anything the other party should know regarding any material issues involving the transaction, especially if it may mean the difference between the other party entering or not entering the deal. Even if the contract does not contain a full disclosure requirement, most states require that real estate brokers and agents to sign a full disclosure form listing everything material about the deal, under the penalty of perjury. This means that if a real estate agent or broker falsifies or fails to disclose important information, he or she could be charged with perjury. Additionally, the form might contain other penalties agreed upon between the parties if one party fails to disclosure material information. What Kinds of Information Must a Real Estate Agent or Broker Disclose? In real estate transactions, full disclosure typically means that the seller must disclose any property defects and any other important information that could have an effect on a party's decision to enter into the deal. However, many transactions are mediated by a?@real estate broker or his or her agent. The real estate broker and the agent has the same duty as the seller to make a full disclosure. If the real estate agent is representing a buyer in a property transaction, he or she has a duty to disclose information such as: Whether the seller is willing to accept a lower offer. Facts or data describing the urgency of the seller’s need to complete the sale. Whether the broker has any interest in the property being sold or any personal relationship to the seller. Figures and estimates of the value of the property. How long the property has been on the market. Updates on any current offers and counteroffers that have been placed on the property. Any other important information that would allow the buyer to finalize the sale at the lowest price and at terms that are most favorable to the?@buyer. Similarly, if the agent or broker is representing the seller in the transaction, he or she has a duty to fully disclose such information as: Whether or not the buyer would be willing to pay more for the property than what the buyer offered. Facts or data related to the buyer’s urgency in obtaining the property. Whether the broker had any previous or existing personal relationships to the buyer. Data related to the buyer’s financial ability to complete the purchase. Any other figures or estimates that would affect the seller’s power to complete the sale at the highest price and at terms that are most favorable to the seller. As a real estate broker may be interacting with both the buyer and seller in a transaction, it is possible for a broker to be held liable to both buyer and seller in the event of a violation. In this case it may still be necessary for the buyer and seller to be represented by different lawyers, especially if there are conflicts of interest between the various parties. What If My Real Estate Broker or Agent Has Failed to Fully Disclose? Real estate brokers and their agents are responsible for ensuring that their client enters into a transaction fully informed. Whether they are representing the buyer or seller, both parties should know all the facts relating to the sale or purchase of the property. If your real estate broker or agent has violated his or her full disclosure requirements, you may be entitled to contract damages. For example, a seller may be able to recover any projected profits that were lost due to the broker’s failure to disclose pertinent information. This is usually calculated according to fair market values and the rates that are applied to the particular neighborhood where the property is located. Additionally, if your broker violated his duty to fully disclose because of malicious or criminal intent, it may be possible to recover other types of damages, such as punitive damages. If you suspect that you have incurred losses or lost opportunities due to your real estate agent’s actions, you should keep all records and documents relating to your dealings with the agent. Be sure to gather important data such as any prices that were presented to you, dates of offers, acceptances of offers, and any written reports that have suspicious or questionable figures. Do I Need a Lawyer? When working with a real estate broker or agent, you should double check the information that they provide to you. You may wish to hire a property appraiser for a second opinion, or speak with a real estate lawyer regarding your rights as a buyer or as a seller. A real estate lawyer can help protect your interests by confirming that all information has been properly disclosed to you. Also, if you need a draft of a full disclosure agreement, an attorney can create one that is specific to your

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Is being a landlord it worth it? Six big challenges.

Real estate! It's the way to make money … or so some people claim. On the surface, it seems likes like a surefire bet; in reality, it's usually more headache than it's worth. The challenges start early, and they almost always involve time and money. Let's take a look at six of the big ones. Challenge 1: Finding a Property Entire books have been written about finding a good rental property. So much text has been dedicated to the topic because of its critical importance. Buy the wrong property and you'll never make money. Keep in mind that buying a fixer upper requires that you have the skills, time, tools and cash to make the necessary repairs. If you're in no hurry, this may be a way to get a bargain on your investment. If you already have a full-time job and a family, time is money, and every minute spent repairing the rental is a minute not spent on a more profitable or enjoyable activity. (To find out what factors you should weigh when searching for income-producing real estate, read Top 10 Features Of A Profitable Rental Property.) Challenge 2: Preparing the Unit Getting the unit into rental condition often requires, at a bare minimum, carpet and paint. Both items require time and money. Window screens, deck stain and lawn maintenance are other common needs. Every time a tenant departs, these issues need to be revisited, after all, fresh paint and new carpet go a long way toward making a rental property look great. Challenge 3: Finding Tenants The internet provides a fast and inexpensive way to find prospective tenants. Of course, you often get what you pay for. Running an ad in a reputable publication often generates a better class of respondents. Instead of college kids looking to save a buck, you increase your odds of getting families and responsible older adults. Running an ad for a month will take a small bite out of your wallet. Properly screening your tenants by running a credit check and background check will take another bite. The investment is well worth the time and money, as proper screening increases your odds of getting responsible tenants. Responsible tenants pay their bills on time, take care of your property and don't require you to engage in the costly and time-consuming eviction process. Challenge 4: Hassles Even great tenants and perfect rental properties come with a host of hassles. Broken pipes, stuffed drains, broken garage door springs, pets and roommates are just a few of the challenges that arise. Even good tenants want your full attention when sewage is backing up into their home or the cable company accidentally cuts the telephone lines. Bad tenants are an even bigger challenge. Daily calls and late or unpaid rent can add up to the hassles. Move-out day is another challenging time. Damage to walls, floors, carpets and other components of the home can lead to disputes and costly repairs. Since every moment wasted arguing is a moment the house sits vacant, you are often better off biting the bullet and paying for the repairs yourself. Challenge 5: Maintenance Maintenance of major components is a big ticket item. New appliances cost hundreds of dollars; a new roof or driveway can cost thousands of dollars. If the rent is $500 per month and the roof is $5,000, you can find yourself losing money fast. Add in carpet, paint and a new stove, and tenants that don't stay long - and the property could lose money for years. Challenge 6: Interest Rates What do interest rates have to do with anything? Plenty! When rates fall, it's often cheaper to buy than to rent! Lowering the rent to remain competitive can put a real cramp in your ability to make a buck. (To learn more, read To Rent or Buy? There's More To It Than Money.) How Money is Made With all the challenges that must be overcome, can the little guy make a buck? Yes, but it requires a plan. Four profitable approaches are highlighted below: 1. Duplex Sharing the space by purchasing a duplex is often a profitable undertaking. By living in half of the property and renting half, at the very least you can use the tenants rent to pay some (or all) of the mortgage. Since you are on site and plan to take care of the property anyway, the extra cash is a bonus. Of course, all of the challenges still apply, and living on site means that you are always available and will be in close contact with the tenants. Plan appropriately and screen carefully. 2. Go Basic Renting out a ratty apartment that has no nice amenities, doing as little maintenance as possible and not keeping up appearances leads to profits. If you don't believe it, look at off-campus housing in any college town in the country. It doesn't sound very nice, but a clean, basic, stripped down property (no ceiling fans, air-conditioning etc) keeps the process simple. Four walls and a floor provide a minimum of maintenance requirements and few things that can break or be damaged. Attracting tenants through government subsidized programs, such as Section 8 housing, provides guaranteed income. The challenge here tends to be that, in exchange for a few bucks in the hand, you often get a rough class of tenants and a property that gets worn hard. 3. Long-Term Holdings Many real estate investors will tell you that they basically break even on the rent and expenses. Their approach is to buy a bargain-priced property, let the tenants pay off the mortgage, and then sell in 30 years and take the cash. While it's a reasonable approach, the profits are likely to be small. After writing off depreciation on the property while it is in use, the capital gains tax on the sale price can be hefty. It can be profitable, but still requires time and effort that might have been better spent elsewhere. (For another take, check out Top 5 Must-Haves For Flipping Houses.) 4. Hard Core Serious landlords take a serious approach. They incorporate, buy 10 units, and do a significant portion of the work themselves. It's a lifestyle decision that requires spurts of serious time and energy, and a strategy for buying and selling to maximize tax-loss write offs and minimize income. (For more, see Should You Incorporate Your Business?) Conclusion: An Approach for You? Is becoming a landlord worth the effort? Only you can decide. Just be sure to look before you leap and go into your new endeavor with realistic expectations and a solid game plan. By knowing what you are getting yourself into before you do it, you'll be better prepared for what you encounter and more likely to enjoy the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Missouri Constructive Eviction Law for Tenants to use as Affirmative Defense

TENANT’S DEFENSES The most common complaints made by tenants deal with the condition of the property. Major problems that affect the habitability of the premises are covered by therelated doctrines of constructive eviction and warranty of habitability. The “repair anddeduct” statute addresses minor problems. In extreme cases, a court can appoint a receiver to take charge of the property. Constructive Eviction / Warranty of Habitability The principles of constructive eviction can be found in Detling v. Edelbrock, 671 S.W.2d 265 (Mo. banc, 1984), King v. Moorehead, 495 S.W.2d 65 (Mo. App. 1973) and Yaffe v. American Fixture, 345 S.W.2d 195 (Mo. 1961). “Constructive eviction” occurs when the lessor interferes with lessee’s beneficial possession or enjoyment of the property. Shop ‘N Save Warehouse Foods v. Soffer, 918 S.W.2d 851 (Mo. App. E.D. 1996). Ridley v. Newsome, 754 S.W.2d 912, 915 (Mo. App., 1988) defines constructive eviction as occurring “when the lessor, by wrongful conduct or by the omission of a duty placed upon him in the lease, substantially interferes with the lessee’s beneficial enjoyment of the demised premises.” 754 S.W. 2d at 915. To maintain the defense of constructive eviction, the tenant must give the landlord notice of any defect not known to the landlord and must allow reasonable time for repair. Proffer v. Randall, 755 S.W.2d 655 (Mo. App. 1988). The elements of a defense or a cause of action for breach of warranty of habitability are (1) entry into a lease, (2) the subsequent development of dangerous or unsanitary conditions on the premises materially affecting the life, health and safety of the tenant, (3) reasonable notice of the defects to the landlord, and (4) the landlord’s subsequent failure to restore habitability. Moser v. Cline, 214 S.W. 3d 390 (Mo. App., 2007), Detling v. Edelbrock, 671 S.W.2d 265 (Mo. banc, 1984), Loven v. Davis, 783 S.W.2d 152 (Mo. App., 1990). A tenant who wishes to assert breach of implied warranty of habitability while maintaining possession of the premises must pay the rent, as it becomes due in custodia legis, i.e. paid into the court. King v. Moorehead, 495 S.W.2d 65 (Mo. App., 1973). A defendant cannot rely on constructive eviction if he has not left the premises. “A tenant’s liability for rent is suspended if a constructive eviction by the landlord causes an abandonment of the premises.” O’Bar v. Nickels, 698 S.W.2d 950 (Mo. App., 1985) states that a wrongful act, neglect, or default by landlord which renders the premises “unsafe, unfit, or unsuitable for occupancy and a tenant is thereby deprived of the beneficial enjoyment of the premises, amounts to a constructive eviction if the tenant abandons the premises within a reasonable time.” There is nothing in Missouri law that gives the tenant free rent in the event of the landlord’s breach. If a breach of warranty of habitability is proven, the tenant is entitled to pursue traditional contract remedies.King v. Moorehead, 495 S.W.2d at 75-76. Traditional contract remedies would provide recovery for actual damages that are proved; they would not allow the tenant to occupy the premises indefinitely without paying rent. The landlord’s failure to perform maintenance would not constitute a defense unless the lack of maintenance reaches the point of constructive eviction or breach of warranty of habitability, as previously discussed. The implied warranty of habitability does not require that the landlord provide a “perfect, aesthetically pleasing condition.” Detling v. Edelbrock, supra.Wetherbee, Ltd. v. Allred, 969 S.W. 2d 756 (Mo. App. 1998) held that the tenant may enforce lease provisions and require the landlord to maintain the premises even if the conditions are not so bad as to constitute constructive eviction. In this case, the landlord failed to repair the roof as required by the lease. The court allowed the tenant, while still residing on the premises, to bring suit against the landlord to require him to perform the maintenance. “Constructive eviction” occurs when the lessor, through act or omission, interferes with the tenant’s possession or enjoyment of the property. “Commercial frustration” occurs when the happening of an event, not foreseen by the parties and not caused by or under control of either party, has destroyed or nearly destroyed the value of the performance or purpose of the contract. Shop ‘N Save Warehouse Foods v. Soffer, supra. REPAIR & DEDUCT If the landlord fails to perform minor repairs, the tenant may have a remedy under §441.234, RSMo. which gives the tenant the right, under limited conditions, to make repairs and deduct the cost of repair from the rent. Several conditions must be met, and several step taken, before the tenant may make any deductions from the rent. (1) The tenant must have legally resided on the premises and paid all rent and charges for six consecutive months before he is eligible to use this procedure. (2) The problem in question must be a code violation which affects the “habitability, sanitation, or security” of the premises. Of course, the code violation must not have been caused by the tenant, his family, or guests. (3) The reasonable cost of repair is less than $300.00 or half a month’s rent; whichever is greater, but not more than one month’s rent. (4) The tenant must give the landlord written notice of the problem. The landlord then has fourteen days to respond. (5) The landlord may request written certification of the code violation from the local government. The landlord then must repair the problem within fourteen days after receiving such written certification. (6) If the landlord still fails to make the repairs, the tenant may do so and deduct the amounts “as documented by receipts” which are submitted to the landlord. (7) The tenant may not deduct more than one month’s rent in any one

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

real estate wholesaling. Limitation of risk and capital

Real estate wholesaling is similar to flipping except that the time frame is much shorter and no repairs are made to the home before the wholesaler sells it. A real estate wholesaler contracts with a home seller, markets the home to his potential buyers, and then assigns the contract to the buyer. The wholesaler makes a profit, which is the difference between the contracted price with the seller and the amount paid by the buyer. The goal in real estate wholesaling is to sell the home before the contract with the original seller closes. A typical wholesaling scenario looks like this: The wholesaler has a house under contract for $90,000 that he estimates needs $20,000 in repairs but will sell for $150,000 once the repairs are made. Using his network of investors, he finds an eager buyer at $100,000. He assigns the contract to his investor, who then has a profitable fixer-upper project, and the wholesaler made a $10,000 profit without ever owning the home. The key to wholesaling is to add a contingency to the purchase contract that allows the wholesaler to back out if he is unable to find a buyer before the expected closing date. This limits the wholesaler's risk. As the wholesaler never actually purchases a home, real estate wholesaling is much less risky than flipping, which cannot only involve renovation costs but also carrying costs. Real estate wholesaling also involves much less capital than flipping. Generally, only enough to make earnest money payments on a few properties is sufficient for wholesaling. Success depends on the wholesaler's knowledge of the market and connection to investors for quick

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Renting Out Part of Your Home What to Expect for Income and Repairs

You want extra income and you just happen to have extra space in your house. What could be more logical than turning a portion of your home into a small apartment and renting it out? For owners, wasted space gets used, work is minimal, and income is steady. For renters, conditions are friendlier than living in a massive apartment complex, and housing choices are expanded. To be clear, this is not simply a bedroom for rent. Instead, a portion of your home is transformed into a fully functioning, independent area with a bedroom, bathroom, sitting room, and kitchenette. But before you log onto Craigslist to write up a listing, understand all of the implications. Benefits and Drawbacks Benefits: Extra Money: Income that requires less work on your end than many other businesses. Oversight: Living close to your rental property means that you can keep an eye on it. In addition, you have easy access to the property if repairs are needed. Tax Benefits: Certain expenses that you would ordinarily bear individually can be shared with the rental apartment. Occupied Property: If you frequently travel or are worried about safety as a single person living alone, having other occupants on the property can provide a measure of security. Drawbacks Business Costs: Starting costs associated with turning a raw space into a fully-fledged legal apartment can be more significant than many people realize. Legalities: Lulled by the notion that they are simply renting out a part of their home, many people forget that they are subject to a host of legalities, just like any other landlord. Taxed Income: While many people may think of the rental income as “extra cash in the pocket,” this extra income is taxable, just like any other small business revenue. Damage Affects Your Living Situation: Damage caused by the renter such as an overflowing bathtub or washer will affect your own living area. Rental Property Income Calculator - Renting Out a Part of Your HomeEmbed Image How Much Can You Make by Renting Out Part of Your Home? For many homeowners, rental revenue sufficient to break even on the mortgage is good enough. Others want this, and they want to turn a profit, too. Building Out the Space Few homeowners wishing to rent out part of their home already have a space that is rental-ready. In most cases, you will need to make alterations to your property. Defined Space: You must have the raw space to begin with – a basement, mother-in-law quarters, garage, etc. Creating the raw space only for the purposes of renting it out may not be cost-effective. Full Quarters: It is preferable to provide a full complement of living quarters: a bedroom, bathroom, kitchenette, and living room. Adding a washer and dryer is a good selling point, too. Besides making the apartment more attractive to potential renters, a full quarters apartment will give you more privacy. Contractor: The more independent you want the apartment to be, the greater your need for a contractor is. Few homeowners can take on such a project individually. Contractors may charge 15 percent to 25 percent of the project price, so be sure to figure that into your business start-up cost. Access: The renter should have separate access so that he/she does not have to pass through your living quarters. Services (Electric, Gas, Water, Sewer): Either services are either shared by you and the tenant or you create separate lines to the rental. Separate lines have the benefit of separate metering (called sub-meters), but they can be costly to create. For example, to install a separate meter for your rental, the gas company may require you to bring in a second line from the street – a costly prospect. The great benefit of using a contractor is that he or she can advise you on these matters.1 Sound: Create soundproofed separation between the apartment and your living area. Doubling up on the drywall is one classic and quick way to limit sound. Egress: The rental apartment must have emergency access to the exterior in case of fire. Make Your Income Property Stand Out - Renting Out a Part of Your HomeEmbed Image Taxes: Costs and Benefits Nearly every owner of a traditional small business is aware of the need to pay taxes. Every small business – a coffee shop, eBay store, tour business, or restaurant – must report income and pay taxes on it. Many homeowners who rent out a part of their home lose sight of the fact that they, too, are running a small business; the only difference is that the business is located in their own home. This is not under-the-table income; this is above-board income that is subject to a straight marginal tax rate. For example, if you are in the 20 percent tax bracket and earn $1,000 per month from your rental, you must pay $2,400 per year in taxes.2 But tax benefits can be enticing. One unexpected benefit of renting out a portion of your home is tax deductions. The U.S. Internal Revenue Service (IRS) allows expenses related to the rental portion of your property to be deducted on your annual taxes.3 Another way to look at it is that extra space in your home that ordinarily would be vacant is not only producing extra income but can share your tax burden. Expenses that can be shared include the following: Home mortgage interest Qualified mortgage insurance premiums Real estate taxes Some personal expenses that would normally be nondeductible, such as electricity and painting the home’s exterior. Expenses that apply only to the rental portion are wholly deductible, such as a dedicated phone line, repairs, decorations, window unit ACs, permanent furniture, etc. As long as it applies only to the rental area, it is 100 percent tax deductible.4 Legalities Are You Allowed to Rent? Condo owners may have restrictive covenants. As an owner of a single-family residence, you have no covenants unless a housing association controls your area. Because of Airbnb, city governments are taking sharper notice of home rentals, even partial home rentals. Some cities have rental registration systems that include occasional inspections. Other cities, in an attempt to limit boarding or rooming houses, have restrictions on the number of “unrelated” people who may live in the same residence. Begin with a visit to your city’s housing department to discuss restrictions on partial home rentals. Fair Housing and Tenants’ Rights You are bound by fair housing laws, just like any other landlord, meaning that you can specify requirements like no pets or no smoking, but you cannot discriminate on the basis of race or gender. You will stay in good legal standing if you treat the landlord-renter relationship with the same objectivity and distance as you would if you were renting an off-premises apartment. For example, if your tenant shows up at your door unannounced to discuss a matter, this is a matter of inconvenience for you that should be defined in the rental contract. But if you were to attempt to improperly enter the apartment, this becomes a legal issue that impinges on the tenant’s rights.5 Taking Care of Repairs: Your Responsibilities Repairs can be divided into two areas: those you need to do immediately by law and those you need to do within a reasonable amount of time. In both areas, notice of at least 24 hours must be given, and you can only enter during “normal business hours,” such as Monday-Friday from 9:00am to 5:00pm. Repairs within 24-48 Hours By law, you are required to keep the apartment in “habitable condition,” a loose definition that generally means: Keeping the building structurally sound Providing running hot and cold water Providing a safe heat source for climate control Keeping the property free of pests and vermin Maintaining smoke detectors Because these are repairs that touch on matters of health and safety, you need to get on these repairs within a day or two. Repairs within 30 Days Torn window screens, leaky faucets, unpainted rooms, or constantly running toilets are more nuisances than life-threatening disasters. The “reasonable amount of time” standard for these is usually 30 days. However, because the apartment is intertwined with your own living space, it is highly recommended that you apply the stricter standard – 24 to 48 hours. After all, water from the slowly draining bathtub in the rental apartment may work its way into your own living quarters. Common Repairs For Landlords - Renting Out a Part of Your HomeEmbed Image Are You Up to It? 3 Ways to Make It Work for You Many homeowners, starry-eyed and tempted by the prospect of “passive income,” find that renting out a part of their home takes an emotional toll that they did not expect. Because renting out part of your home is an unusual take on the typical landlord-renter arrangement, here are three potential problems you may not have considered – with suggested solutions. 1. Protect Your Own Privacy: What are your “business hours”? Can your tenant knock on your door at 2:00am to discuss the next month’s rent? Specify your privacy arrangements in the rental contract. 2. Manage (or Limit) Common Areas: Because running separate power, water, and sewer lines is prohibitively expensive, most would-be landlords share these services with the renters. Some even share more personal areas, such as the kitchen and laundry room. While you will save money by sharing these services, realize that the trade-off is a loosening of boundaries.6 3. Realize That Passive Income May Require Some Work: If you expect your work to end the moment you sign the rental contract, you will be sorely disappointed. Renting out part of your home does require some work. Conditioning your mind to this prospect is vital to making this arrangement a happy and prosperous one for you. Renting out a part of your home is a great way to make extra income. By keeping in mind start-up costs as well as monthly expenses, you can ensure that you not only cover your monthly mortgage but turn a profit, too. WRITTEN BY LEE

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Transfer of Death Deed or Beneficiary Deed – Missouri

REAL ESTATE LAW Transfer-on-Death Deeds By Susan N. Gary A transfer-on-death (TOD) deed, or beneficiary deed, allows an owner of real property to execute a deed that names a beneficiary who will obtain title to the property at the owner’s death without going through probate. This article examines the advantages and disadvantages of using TOD deeds and details how these deeds work. It provides several typical estate planning scenarios that highlight when the use of a TOD deed may be appropriate and when a different method should be used to transfer real property. The execution of a TOD deed has no tax consequences. Pros and cons of TOD deeds. A TOD deed solves many of the drawbacks associated with the other mechanisms available for transferring real property at death. Making a TOD deed an option will help property owners in a variety of circumstances. In contrast with using joint tenancy or a legal remainder interest, a TOD deed creates no present interest in the named beneficiary. This provides several benefits: The owner does not make a completed gift for gift tax purposes; if the owner changes his mind about the beneficiary, the owner can change the designation at any time before death; and because the beneficiary has no interest in the property until the owner dies, the beneficiary’s creditors cannot reach the property. In contrast with the transfer of property under a revocable trust or a will, the transfer of property through a TOD deed is much less expensive. In some states the cost of probate is substantial, and in any state a probate proceeding will cost more than the fees associated with a TOD deed. The TOD option also may protect owners from unscrupulous relatives. Mary Pat Toups, a California lawyer who has worked with older clients throughout her 30-year legal career, says that older people “often are persuaded to transfer their homes to their children, who then threaten to evict them so they can sell the property.” In her view, a statute authorizing TOD deeds would curb this sort of elder abuse. A disadvantage of TOD deeds is that people may use them without consulting a lawyer and may make legal mistakes. For example, an owner might name one beneficiary but neglect to provide for the possibility that the beneficiary predeceases the owner. Despite the risk of mistakes on the part of users, these mistakes may be less troubling than the mistakes that occur in connection with the use of joint tenancy as a will substitute. The loss of one’s house during life to the beneficiary or the beneficiary’s creditor is at least as problematic as the risk that the death of a beneficiary prior to the owner will disrupt the owner’s estate plan. Another concern involves challenges that may occur after the owner’s death. If someone challenges the effectiveness of a deed, perhaps based on an argument that the owner lacked capacity when the owner executed the deed, a court proceeding may be needed to resolve the issue. However, the need for court involvement, or at least the involvement of lawyers, is present in any challenge to a transfer at death, thus the concern is not unique to TOD deeds. A title company also may be reluctant to issue title insurance if a contradiction or ambiguity exists with respect to the transfer of the property. For example, the deed might direct that the property be transferred to the owner’s son, John, while the owner’s will bequeaths the same property to the owner’s daughter, Johanna. Although the owner may be confused about whether a will can revoke a TOD deed, the law is clear: The TOD deed, if validly recorded and unrevoked by a subsequent deed, controls, and the owner’s will has no effect on the deed. The same result is true with respect to deeds held in joint tenancy, so presumably once the newness of TOD deeds wears off, title companies will not be concerned with this issue. A reason for some people not to use a TOD deed is that selling the property may not be possible until four months after the owner’s death because in some states anyone with a claim against the property has four months to record the claim. This is a disadvantage as compared with either transferring property through probate or transferring property using joint tenancy with right of survivorship. Depending on the circumstances, a TOD deed will not be the best choice if the beneficiary needs to sell the property soon after the owner’s death. Missouri has had a TOD deed statute since 1989, significantly longer than any other state, and provides the most useful record of experience. Use of the deed is now wisespread and routine, and although estate planning lawyers typically use the deed for smaller estates, they also use the deed in larger estates, often for property held outside a revocable trust. Title companies in Missouri issue title insurance routinely, despite their initial concerns. Little litigation has occurred over TOD deeds, and no abuses have been reported. Specifics of a transfer-on-death deed statute. This section explains the basic structure of a statute providing for TOD deeds and identifies questions that legislators should consider in the legislative process. During the owner’s lifetime, the owner retains full power and control over the property. The property owner who wants to use a TOD deed to transfer property at his death must execute and record the deed before death. All statutes provide that the deed must be recorded to have effect. The owner of property can revoke a TOD deed at any time by executing a subsequent TOD deed or an instrument of revocation. The subsequent deed or instrument of revocation must be recorded for the revocation to be effective. Existing TOD deed statutes do not indicate the level of capacity required to execute a beneficiary deed. The level presumably should be the same as the level of capacity required to execute a will because a TOD deed, like a will, has effect only at death. The execution of a TOD deed has no tax consequences. The designation of a beneficiary is not a com-pleted gift because the designation remains revocable. Thus, the designation is not a taxable event for gift tax purposes. The beneficiary has no interest in the property until the owner’s death, and the beneficiary cannot affect or challenge the owner’s use of the property or the owner’s decision to encumber or sell the property. Delivery of the deed by the owner and acceptance of the deed by the beneficiary are not required, and the owner need not notify the beneficiary when the owner creates or revokes the deed. TOD deed statutes permit the owner to name multiple beneficiaries. Some TOD deed statutes require a beneficiary to survive the owner to take the property, and some are silent on whether survival is required. A TOD deed can contain a series of contingent successor beneficiaries to provide for the possibility that several of the named beneficiaries may not survive the owner. When a property owner executes a TOD deed, the owner should consider whether to name one or more contingent successor beneficiaries. The owner should exercise particular care to provide for successor beneficiaries in situations in which the death of a named beneficiary may cause a disruption in the estate plan. Title vests in the beneficiary at the owner’s death. The beneficiary takes the property subject to all interests affecting the title to which the owner was subject, as well as any interest in the property of which the beneficiary has actual or constructive

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Common reasons why foundations fail

NONPOROUS BACKFILL. Soils loaded with clay or organic matter hold water like a sponge, increasing the risk of foundation cracks when the soil freezes and expands. RUSHING THE CURE. Concrete must cure slowly to reach proper strength (usually 3,000 psi). Keep it damp for at least three days by wrapping it in plastic, misting with water, and other techniques. INSUFFICIENT COMPACTING. If the slab is poured over crushed stone that hasn't been firmly tamped, it will likely settle or crack. INTERRUPTING THE POUR. A concrete form should be filled in one go. If you stop and come back the next day to finish the work, there will be a "cold joint" between the fresh concrete and yesterday's work, which is

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Tips on Rental Real Estate Income, Deductions and Recordkeeping

Tips on Rental Real Estate Income, Deductions and Recordkeeping If you own rental real estate, you should be aware of your federal tax responsibilities. All rental income must be reported on your tax return, and in general the associated expenses can be deducted from your rental income. If you are a cash basis taxpayer, you report rental income on your return for the year you receive it, regardless of when it was earned. As a cash basis taxpayer you generally deduct your rental expenses in the year you pay them. If you use an accrual method, you generally report income when you earn it, rather than when you receive it and you deduct your expenses when you incur them, rather than when you pay them. Most individuals use the cash method of accounting. Below are some tips about tax reporting, recordkeeping requirements and information about deductions for rental property to help you avoid mistakes. What is Considered Rental Income? You generally must include in your gross income all amounts you receive as rent. Rental income is any payment you receive for the use or occupation of property. You must report rental income for all your properties. In addition to amounts you receive as normal rent payments, there are other amounts that may be rental income and must be reported on your tax return. Advance rent is any amount you receive before the period that it covers. Include advance rent in your rental income in the year you receive it regardless of the period covered or the method of accounting you use. For example, you sign a 10-year lease to rent your property. In the first year, you receive $5,000 for the first year's rent and $5,000 as rent for the last year of the lease. You must include $10,000 in your income in the first year. Security deposits used as a final payment of rent are considered advance rent. Include it in your income when you receive it. Do not include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. But if you keep part or all of the security deposit during any year because your tenant does not live up to the terms of the lease, include the amount you keep in your income in that year. Payment for canceling a lease occurs if your tenant pays you to cancel a lease. The amount you receive is rent. Include the payment in your income in the year you receive it regardless of your method of accounting. Expenses paid by tenant occur if your tenant pays any of your expenses. You must include them in your rental income. You can deduct the expenses if they are deductible rental expenses. For example, your tenant pays the water and sewage bill for your rental property and deducts it from the normal rent payment. Under the terms of the lease, your tenant does not have to pay this bill. Include the utility bill paid by the tenant and any amount received as a rent payment in your rental income. Property or services received, instead of money, as rent, must be included as the fair market value of the property or services in your rental income. For example, your tenant is a painter and offers to paint your rental property instead of paying rent for two months. If you accept the offer, include in your rental income the amount the tenant would have paid for two months worth of rent. Lease with option to buy occurs if the rental agreement gives your tenant the rights to buy your rental property. The payments you receive under the agreement are generally rental income. If you own a part interest in rental property, you must report your part of the rental income from the property. What Deductions Can I Take as an Owner of Rental Property? If you receive rental income from the rental of a dwelling unit, there are certain rental expenses you may deduct on your tax return. These expenses may include mortgage interest, property tax, operating expenses, depreciation, and repairs. You can deduct the ordinary and necessary expenses for managing, conserving and maintaining your rental property. Ordinary expenses are those that are common and generally accepted in the business. Necessary expenses are those that are deemed appropriate, such as interest, taxes, advertising, maintenance, utilities and insurance. You can deduct the cost of repairs that you make to your rental property. A repair keeps your property in good operating condition and does not materially add value to the property. Examples are painting, fixing leaks and replacing broken doors or other parts of the rental property. You can deduct the expenses paid by the tenant if they are deductible rental expenses. When you include the fair market value of the property or services in your rental income, you can deduct that same amount as a rental expense. You may not deduct the cost of improvements. An improvement adds to the value of your property, prolongs its useful life, or adapts it to new uses. Examples are adding a deck, a new fence or roof. The cost of improvements is recovered through depreciation. You can recover some or all of your improvements by using Form 4562 to report depreciation beginning in the year your rental property is first placed in service, and beginning in any year you make an improvement or add furnishings. These expenses must be depreciated over the useful life of the property. Only a percentage of these expenses are deductible in the year they are incurred. Please also see Deducting Business Expenses for more information. How Do I Report Rental Income and Expenses? If you rent buildings, rooms or apartments, and provide only heat and light, and trash collection, you normally report your rental income and expenses on Form 1040, Schedule E, Part I. List your total income, expenses, and depreciation for each rental property. Be sure to answer the question on line 2. If you have more than three rental properties, complete and attach as many Schedules E as are needed to list the properties. Complete lines 1 and 2 for each property, including the street address for each property. However, fill in the “Totals” column on only one Schedule E. The figures in the “Totals” column on that Schedule E should be the combined totals of all Schedules E. Sum up your receipts and canceled checks for your repairs. All of these costs are deductible in the year they were incurred. Fill out Schedule E and Form 4562. List the total of your expenses for repairs on Schedule E, line 16. Carry over your depreciation deduction from Form 4562 and list it on line 20. Complete Schedule E and deduct the total of all of your rental expenses from your rental income. If your rental expenses exceed rental income you may report a loss up to $25,000 on your tax return, limited for adjusted gross incomes above $100,000. What Records Should I Keep? Good records will help you monitor the progress of your rental property, prepare your financial statements, identify the source of receipts, keep track of deductible expenses, prepare your tax returns and support items reported on tax returns. Maintain good records relating to your rental activities, including the rent and the rental repairs. You must be able to document this information if your return is selected for audit. Keep track of any travel expenses you incur for rental property repairs. Separate receipts for minor repairs like plumbing, fixing a broken door or minor repainting from receipts for capital improvements like adding a new roof, remodeling a kitchen or installing insulation. You must be able to substantiate certain elements of expenses to deduct them. You generally must have documentary evidence, such as receipts, canceled checks or bills, to support your expenses. If you are audited and cannot provide evidence to support items reported on your tax returns, you may be subject to additional taxes and penalties. For example, if you cannot substantiate the rental real estate expenses of replacing the door locks, with appropriate records, the IRS may disallow that expense which may mean that you incur additional taxes and penalties. You need good records to prepare your tax returns. These records must support the income and expenses you report. Generally, these are the same records you use to monitor your real estate activity and prepare your financial

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

By Michele Lerner December 5, 2013 If you’ve toured a newly built model home recently, you may have noticed a few things missing: a formal living room or the once-popular two-story family room. Today’s new homes are a bit more practical and reflect the way people live: in their “family center” — an oversized, open great room with a center island kitchen, a casual dining area and a family room. Washington area residents prefer traditional homes, but local builders and architects say that even though exteriors remain mostly traditional, buyers increasingly are looking for more contemporary interiors with open floor plans. Now that new home sales are making a comeback along with the rest of the housing market, builders are incorporating these new ideas into their home designs. “Builders scaled back home sizes and features right after the housing crisis in order to be at a particular price point, but now they’re bringing back larger homes in order to meet buyer demand,” says Debbie Rosenstein, vice president of the Christopher Companies, a local builder based in Oakton, Va. “But buyers are a little different now. They’re looking at values more carefully.” Kim Ambrose, vice president of marketing for Miller & Smith in McLean, says builders now use every possible square foot as efficiently as possible, without any two-story spaces but with an open feeling from 9- and 10-foot high ceilings that are standard in many new homes. The most notable trend in new home designs is the contemporary style open floor plan, ideally with an unobstructed view from the front of the house to the back. The best option would include view of a porch or sunroom since people want to see outdoor space if they can, says Michael Kingsley, principal of KTGY, an architecture and planning firm in Tysons Corner. “One way to bring the outdoors inside is to build a covered outdoor corner room within the footprint of the home and accessible through glass doors to the family room or kitchen,” says Kingsley. “It’s an efficient way to create an outdoor living area without adding an appendage to the house.” Linda Ellington, vice president of sales and marketing for Mitchell & Best Homebuilders in Rockville, says the company offers an integrated outdoor living space as an option on some of their models with glass openings to the space from the family room since that’s where most people entertain and spend time with their families. Even if the lot configuration doesn’t allow for an outdoor room, most new home designs focus on creating an open primary living space rather than on formal rooms. “Buyers want an open kitchen with space to spread out and entertain,” says Lauri Chastain, vice president of marketing for Stanley Martin Homes in Reston. “Even if we don’t have space for an enormous kitchen, we design one that’s well laid-out with an ample island and a walk-in pantry if possible.” A living room is a rare find in all but the largest new homes, but some still offer a separate dining room for buyers who want a more formal space for entertaining. In addition to open, contemporary floor plans, some of the other trends in new home designs include: ● Flexible rooms. “There’s usually a flexible space set aside in single-family homes on the first floor for a library, a parlor or a home office,” Kingsley says. “In smaller homes people like to have a little office space near the family room instead of a separate home office. People don’t really need a big office anymore, so this is more natural.” At One Loudoun, Miller & Smith offers an optional studio space above the rear attached garage that has both an interior and an exterior entrance. “The studio has a bedroom, a full bath and a little kitchenette,” says Ambrose. “We were surprised that about 25 percent to 30 percent of our buyers are choosing it, but some people want it for boomerang adult kids and for extended family visits.” Mitchell & Best offers a second level loft that can be wired for a homework center, used as a traditional sitting area/library or closed off for a formal office. Miller & Smith offers a loft with its three-bedroom designs and has also introduced floor plans with four bedrooms and a loft that can be used as a study space or recreation room for children. ● First floor bedrooms. Most builders offer an optional first-floor bedroom with a full bath, but few offer a first-floor master suite because of space requirements. “More people are asking for a first-floor bedroom, but they don’t want to lose the great room space, so that’s one reason it’s nice to have the flexibility of a den that can be converted to a bedroom,” says Rosenstein. ● Family entrances. One of the more practical changes in new floor plans is an emphasis on efficient use of space, particularly the family entrance from the garage. Instead of a mudroom, this space often has multiple options for customization for sports equipment, a charging station for cellphones and tablets, and backpacks, Rosenstein says. Ellington says they offer personalized family entrances for every floor plan, including things like a computer station and sometimes a second powder room. ● Efficient designs. “We try to make sure there’s no wasted space at all, so we design homes without two-story spaces and with the main stairs moved out of the foyer,” says Chastain. “This gives us the opportunity to add more space for smarter living like more ample space in the mudroom and to meet our goal to have a walk-in closet in every bedroom.” ● Extra customization. “Most small builders, including the Christopher Companies, offer more flexibility to move things around [such as] non-load bearing walls,” Rosenstein says. “It’s much more prevalent now than it used to be to ask for customization. People want to be able to say they’re not in a cookie-cutter home and to express their individuality.” ● Smaller but more luxurious master baths. “Consumers prefer more space in the master bedroom closet instead of one of those huge ‘dance hall’ bathrooms where you could host a party,” says Chastain. Kingsley says “gallery-style” baths that are elongated and have more windows rather than square master baths have become more popular because they offer more efficient use of space. “We’re also designing more spa baths with a shower and separate tub cordoned off with glass wall,” says Kingsley. Ambrose says more buyers want an oversized shower in the master bath instead of separate tub and shower, particularly among younger families buying in their Loudoun County communities. ● Deemphasized garages. On single-family homes, it’s becoming more popular to recess the garage so that it’s less of a feature, Rosenstein says. At Maple Lawn in Howard County and Poplar Run in Silver Spring, Miller & Smith is building single-family homes with rear entry garages. Ambrose says their research shows that people prefer attached garages rather than detached, even when they are behind the house. ● New materials and designs for exteriors. “The D.C. area still isn’t a contemporary market, especially for exteriors, but we’re seeing a little innovation with arts-and-crafts style exteriors,” says Rosenstein. “We still have a lot of brick, but we’re seeing more stone and Hardiplank cement siding in more price ranges.” Ambrose and Ellington both say they offer a variety of brick, stone and siding combinations so that the homes look different and the streetscapes are interesting. “We’ve seen a nice change in the past few years with people being more willing to embrace new ideas and move away from the focus on traditional design,” says Kingsley. “These more open floor plans make a home feel better, even when it’s smaller; especially when you have nice sight lines and high ceilings.” While the majority of D.C. residents may not be ready for ultra contemporary homes, the trend toward lighter and more open homes with smart, efficient design elements seems to be a growing preference in this area. Michele Lerner is a freelance writer. 0

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Here’s a closer look at the trends that will have the greatest impact on the housing market in 2016.

1. We’ll return to normal (Anyone remember normal?) The year ahead will see healthy growth in home sales and prices, but at a slower pace than in 2015. This slowdown is not an indication of a problem—it’s just a return to normalcy. We’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of more normal conditions. Distress sales will no longer be playing an outsized role, new construction is returning to more traditional levels, and prices rise at more normal rates consistent with a more balanced market. 2. Generational shuffle will make 2016 the best year to sell in the near future Millennials emerged as a dominant force in 2015, representing almost 2 million sales, which is more than one-third of the total. This pattern will continue in 2016 as their large numbers combined with improving personal financial conditions will enable enough buyers between ages 25 and 34 to move the market—again. The majority of those buyers will be first-timers, but that will require other generations to also play larger roles. Two other generations will also affect the market in 2016: financially recovering Gen Xers and older boomers thinking about or entering retirement. Since most of these people are already homeowners, they’ll play a double role, boosting the market as both sellers and buyers. Gen Xers are in their prime earning years and thus able to relocate to better neighborhoods for their families. Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living. Together, these two generations will provide much of the suburban inventory that millennials desire to start their own families. Assuming that most of these households will both sell and buy, it is important to recognize that 2016 is shaping up to be the best year in recent memory to sell. Supply remains very tight, so inventory is moving faster. Given the forecast that price appreciation will slow in 2016 to a more normal rate of growth, delaying will not produce substantially higher values, and will also see higher mortgage rates on any new purchase. 3. Builders will focus on more affordable price points One aspect of housing that has not recovered yet has been single-family construction. Facing higher land costs, limited labor, and worries about depth of demand in the entry-level market, builders have shifted to producing more higher-priced housing units for a reliable pool of customers. That focus caused new-home prices to rise much faster than existing-home prices. Builders were able to be profitable and grow by following this move-up and luxury strategy, but their growth potential was limited by avoiding the entry level. That should begin to change in 2016. We are already seeing a decline in new-home prices for new contracts signed this fall. In addition, credit access is improving enough to make the first-time buyer segment more attractive to builders. We’re looking for the strong growth in new-home sales and single-family construction as builders offer more affordable product in the year ahead. Consumers of all types should consider new homes, but availability will be highly dependent on location. 4. Higher mortgage rates will affect high-cost markets the most We told you mortgage rates would go up in 2015, and they did—but they also went back down. We expect similar volatility in 2016, but the move by the Federal Reserve to guide interest rates higher should result in a more reliable upward trend in mortgage rates. Thirty-year fixed rates will likely end 2016 about 60 basis points higher than they are today. That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase. However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher. Markets with the highest prices will see that higher rates will result in fewer sales; however, across the U.S., the effect will be minimal as the move to higher rates will spur more existing homeowners to sell and buy before rates go even higher. 5. Already unaffordable rents will go up more than home prices The housing crisis that politicians are ignoring is that the cost of rental housing has become crushing in most of the country. More than 85% of U.S. markets have rents that exceed 30% of the income of renting households. Furthermore, rents are accelerating at a more rapid pace than home prices, which are moderating. We’ve been seeing asking rents on vacant units increase at a double-digit pace in the second half of this year. Because of this, it is more affordable to buy in more than three-quarters of the U.S. However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings, and lack of documentable stable income of the kind necessary to qualify for a mortgage today. This trend does not bode well for the health of the housing market in the future. It will only improve if we see more construction of affordable rental housing as well as more of a pathway for renters to become

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

TERMS THAT SHOULD BE IN EVERY LEASE AGREEMENT

1. Severability Though a legal precaution, this is perhaps one of the most important clauses in a lease. This clause states that if one aspect of the lease is found to be illegal, the rest of the agreement will still be legally binding. SEVERABILITY. If any provision of this Agreement or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law. Without this clause, a judge who has found one small clause to be illegal, even if accidentally so, might consider the entire lease to be void. No matter how rock-solid your lease is, you should include this clause in your lease. 2. Late Fees and Allocations If you don’t specify a late fee in your lease, it will be nearly impossible to charge a late fee after-the-fact. Regardless, this clause should specify the exact amount of the fee, the time at which it will be assigned, and if there are any additional, daily late fees for nonpayment. LATE FEE AND ALLOCATION OF PAYMENTS. In the event that any rent payment required to be paid by Tenant(s) hereunder is not paid IN FULL by the start of the SECOND (2nd) DAY OF EACH MONTH, Tenant(s) shall pay to Landlord, in addition to such payment or other charges due hereunder, an initial late fee as additional rent in the amount of 5% OF THE MONTHLY RENT AMOUNT. Further, a subsequent late fee ofTWENTY DOLLARS ($20.00) PER DAY will be incurred by the Tenant(s) for every day payment is delayed after the 2nd day of the month. All future payments will be allocated first to any outstanding balances other than rent. Any remaining monies will be allocated lastly to any rent balance. The last sentence in this clauses ensures that all fees are paid first with whatever money the tenants choose to give me. The reason I allocate payments first to fees is because it’s much easier to sue a tenant for “unpaid rent” than it is for an “unpaid late fee.” 3. Subleasing If you don’t outlaw subleasing, your tenants will do it when you’re not looking. Worse, you can’t penalize them for it. You might be able to terminate the lease, but that’s not always preferable because then you have to find new tenants. I always prefer to allow subleasing, for a price. I give my tenants the option to sublease, but they have to pay a one-time fee. Further, the sublessee has to submit an application and is subject to my normal screening process and subsequent approval, only to eventually sign a subleasing agreement. ASSIGNMENT AND SUBLEASING. Tenant(s) shall not assign this Agreement, or sublet or grant any license to use the Premises or any part thereof without the prior written consent of Landlord. Consent by Landlord to one such assignment, subletting or license shall not be deemed to be a consent to any subsequent assignment, subletting or license. An assignment, subletting or license without the prior written consent of Landlord or an assignment or subletting by operation of law shall be absolutely null and void and shall, at Landlord’s option, terminate this Agreement and start the eviction process of all Tenant(s) and occupants. If subletting is approved by the Landlord, a one-time fee of THREE HUNDRED DOLLARS ($300.00) PER SUBLET, is assigned to the lease. All subletting individuals are required to submit an application to the Landlord for evaluation and screening. Landlord reserves the right to reject any sublessee that does qualify. If any sublets are initiated by Tenant(s) without the prior written consent of the Landlord, for each individual sublet, Tenant(s) will be assigned and responsible for the subletting fee, for each sublet, spanning the entire term of this Agreement. Subleasing is common with my group houses. Many times, three of the five tenants will travel home for the summer and ask to sublet their room. The answer is always “yes” and then almost instantly, my wallet feels $900 heavier. To help with the subleasing fee, many of the tenants increase the cost of their room, thereby offsetting the fee (which I’m fine with). 4. Joint and Several Liability In respect to a residential lease, joint and several liability means that each tenant is jointly AND individually responsible for the entire rent amount and for any damages. It allows you to consider all tenants as a single entity, for the purposes of giving notice, serving court documents, collecting rent or suing for damages. MULTIPLE TENANTS OR OCCUPANTS. Each Tenant(s) is jointly and individually liable for all Lease Agreement obligations, including but not limited to rent monies. If any Tenant(s), guests, or occupant violates the Lease Agreement, all Tenant(s) are considered to have violated the Lease Agreement. Landlord’s requests and notices to any one Tenant(s) constitute notice to all Tenant(s) and occupants. Notices and requests from any one Tenant(s) or occupant (including repair requests and entry permissions) constitute notice from all Tenant(s). In eviction suits, each Tenant(s) is considered the agent of all other Tenants in the Premise for service of process.   5. Default Many states have a set list of landlord and tenant obligations, in which either party can terminate the agreement if the other doesn’t fulfill his or her duties – with proper notice. I go a step further and actually list the triggers for default in the lease, so that the tenant is aware of them. The logic is that if I ever have to terminate the lease for a violation, the lease should back me up. DEFAULT AND COMPILING OF RENT. If Tenant(s) fails to comply with any of the financial or material provisions of this Agreement, or of any present rules and regulations or any that may be hereafter prescribed by Landlord, or materially fails to comply with any duties imposed on Tenant(s) by statute, within five (5) days after delivery of written notice by Landlord specifying the non-compliance and indicating the intention of Landlord to terminate the Agreement by reason thereof, Landlord may terminate this Agreement. If Tenant(s) fails to pay rent when due and the default continues for five (5) days thereafter, Landlord may, at Landlord’s option, declare the entire balance (compiling all months applicable to this Agreement) of rent payable hereunder to be immediately due and payable and may exercise any and all rights and remedies available to Landlord at law or in equity and may immediately terminate this Agreement. Tenant(s) will be in default if: (a) Tenant(s) does not pay rent or other amounts that are owed; (b) Tenant(s), guests, or occupants violate this Agreement, rules, or fire, safety, health, or criminal laws, regardless of whether arrest or conviction occurs; (c) Tenant(s) abandons the Premises; (d) Tenant(s) gives incorrect or false information in the rental application; (e) Tenant(s), or any occupant is arrested, convicted, or given deferred adjudication for a criminal offense involving actual or potential physical harm to a person, or involving possession, manufacture, or delivery of a controlled substance, marijuana, or drug paraphernalia under state statute; (f) any illegal drugs or paraphernalia are found in the Premises or on the person of Tenants(s), guests, or occupants while on the Premises and/or; (g) as otherwise allowed by law. As you may have noticed, upon default, I force the compiling of rent for the remainder of the lease term. Meaning, if my tenants start selling drugs from my rental in month three of a 12-month lease, I can still hold them responsible for the other nine months of rent (or until I find a replacement if I’m forced to mitigate damages).   6. Renewal Lease renewal is a tricky thing. Some landlords prefer an automatic renewal approach, however, I prefer not to be tied down like that. All of my fixed-term leases don’t automatically renew, however I still require a tenant to give me 60 days notice of their intent to move out at the end of the lease. Meaning, the assumption is that they will be renewing (assuming the rent doesn’t go up too much), even though the lease doesn’t automatically renew. It just means that we need to sign a new lease if they want to stay. The reason for this clause is that it guarantees that I have 60 days notice to try to find a new tenant. If they fail to provide 60 days notice of non-renewal, they are still held responsible for 60 days of rent, unless I can find a replacement sooner. I usually set a Google calendar reminder, and I try to notify my tenants of their responsibility at 70-75 days from the end of the lease – so that they can start thinking about their options. RENEWAL. This lease agreement is not constructed to be automatically renewed at the end of the term for which drawn, however the intent to renew this agreement by the Tenant(s) will be assumed. All parties will need to sign a new agreement in order to activate a renewal term. If Tenant(s) intends to vacate the Premises at the end of the lease term, Tenant(s) must give at least sixty (60) days written notice prior to the end of this lease. If sixty (60) days’ notice of non-renewal is not given prior to lease term, Tenant(s) are responsible for the equivalent rent amount due for the sixty (60) days after notice is given, even though this lease does not automatically renew. 7. Use of Premises Though I can’t discriminate based on familial status, I can restrict the number of people based on the number of people in the initial group of tenants. Meaning, if a family of four moves in, the lease should restrict usage to only those four people. This clause keeps existing tenants from moving in unapproved “family” (yeah right), and keeps unemployed boyfriends or girlfriends from becoming rogue tenants. USE OF PREMISES. The Premises shall be used and occupied by Tenant(s), for no more than FOUR (4) persons exclusively, as a private individual dwelling, and no part of the Premises shall be used at any time during the term of this Agreement by Tenant(s) for the purpose of carrying on any business, profession, or trade of any kind, or for any purpose other than private dwelling. Tenant(s) shall not allow any other person, other than Tenant’s immediate family or transient relatives and friends who are guests of Tenant(s), to use or occupy the Premises without first obtaining Landlord’s written consent to such use. Any guest staying in the property more than 2 weeks in any 6 month period will be considered a tenant, rather than a guest, and must be added to the lease agreement. Landlord may also increase the rent at any such time that a new tenant is added to the lease premise. Tenant(s) and guest(s) shall comply with any and all laws, ordinances, rules and orders of any and all governmental or quasi-governmental authorities affecting the cleanliness, use, occupancy and preservation of the Premises. BONUS: Surrender of Premises Last but not least, this clause saves the day every time I have a tenant moving out. A few weeks before they plan to move out, I simply remind them of this lease clause and send them the “move-out cleaning instructions,” which details my expectations and suggestions to ensure they get their full deposit back. SURRENDER OF PREMISES. Tenant(s) have surrendered the Premises when (a) the move-out date has passed and no one is living in the Premise within Landlord’s reasonable judgment; or (b) all Premise keys and access devices have been turned in to Landlord – whichever comes first. Upon the expiration of the term hereof, Tenant(s) shall surrender the Premise in better or equal condition as it were at the commencement of this Agreement, reasonable use, wear and tear thereof, and damages by the elements excepted. Tenants are responsible for hiring, coordinating, and paying for a professional cleaning of all carpets prior to lease

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Very Important if you are considering buying a rental property

From the first decision to invest in real estate to actually buying your first rental property, there is a lot of work to be done. This task may be daunting for the first-time investor. Owning property is a tough business and the field is peppered with land mines that can obliterate your returns. Here we'll take a look at the top 10 things you should consider when shopping for an income property. Starting Your Search Although you may want a real estate agent to help you complete the purchase of a rental property, you should start searching for your investment on your own. Having an agent can bring unnecessary pressure to buy before you have found a property that suits you. The most important thing is to take an unbiased approach to all the properties and neighborhoods within your investing range. Your investing range will be limited by whether you intend to actively manage the property (be a landlord) or hire someone else to manage it. If you intend to actively manage, you should not get a property that's too far away from where you live. If you are going to get a property management company to look after it for you, your proximity to the property will be less of an issue. Let's take a look at the top 10 things you should consider when searching for the right rental property. Neighborhood: The quality of the neighborhood in which you buy will influence both the types of tenants  you attract and how often you face vacancies. For example, if you buy in a neighborhood near a university, the chances are that your pool of potential tenants will be mainly made up of students and that you will face vacancies on a fairly regular basis (during summer, when students tend to return back home). Property Taxes: Property taxes are not standard across the board and, as an investor planning to make money from rent, you want to be aware of how much you will be losing to taxes. High property taxes may not always be a bad thing if the neighborhood is an excellent place for long-term tenants, but the two do not necessarily go hand in hand. The town's assessment office will have all the tax information on file or you can talk to homeowners within the community. Schools: Your tenants may have or be planning to have children, so they will need a place near a decent school. When you have found a good property near a school, you will want to check the quality of the school as this can affect the value of your investment. If the school has a poor reputation, prices will reflect your property's value poorly. Although you will be mostly concerned about the monthly cash flow, the overall value of your property comes in to play when you eventually sell it. Crime: No one wants to live next door to a hot spot for criminal activity. Go to the police or the public library for accurate crime statistics for various neighborhoods, rather than asking the homeowner who is hoping to sell the house to you. Items to look for are vandalism rates, serious crimes, petty crimes and recent activity (growth or slow down). You might also want to ask about the frequency of police presence in your neighborhood. Job Market: Locations with growing employment opportunities tend to attract more people – meaning more tenants. To find out how a particular area rates, go directly to your local library. If you notice an announcement for a new major company moving to the area, you can rest assured that workers will flock to the area. However, this may cause house prices to react (either negatively or positively) depending on the corporation moving in. The fallback point here is that if you would like the new corporation in your backyard, your renters probably will too. Amenities: Check the potential neighborhood for current or projected parks, malls, gyms, movie theaters, public transport hubs and all the other perks that attract renters. Cities, and sometimes even particular areas of a city, have loads of promotional literature that will give you an idea of where the best blend of public amenities and private property can be found. Building Permits and Future Development: The municipal planning department will have information on all the new development that is coming or has been zoned into the area. If there are many new condos, business parks or malls going up in your area, it is probably a good growth area. However, watch out for new developments that could hurt the price of surrounding properties by, for example, causing the loss of an activity-friendly green space. The additional condos and/or new housing could also provide competition for your renters, so be aware of that possibility. Number of Listings and Vacancies: If there is an unusually high number of listings for one particular neighborhood, this can either signal a seasonal cycle or a neighborhood that has "gone bad." Make sure you figure out which it is before you buy in. You should also determine whether you can cover for any seasonal fluctuations in vacancies. Similar to listings, the vacancy rates will give you an idea of how successful you will be at attracting tenants. High vacancy rates force landlords to lower rents in order to snap up tenants. Low vacancy rates allow landlords to raise rental rates. Rents: Rental income will be the bread and butter of your rental property, so you need to know what the average rent in the area is. If charging the average rent is not going to be enough to cover your mortgage payment, taxes and other expenses, then you have to keep looking. Be sure to research the area well enough to gauge where the area will be headed in the next five years. If you can afford the area now, but major improvements are in store and property taxes are expected to increase, then what could be affordable now may mean bankruptcy later. Natural Disasters: Insurance is another expense that you will have to subtract from your returns, so it is good to know just how much you will need to carry. If an area is prone to earthquakes or flooding, paying for the extra insurance can eat away at your rental income. Getting Information Talk to renters as well as homeowners in the neighborhood. Renters will be far more honest about the negative aspects of the area because they have no investment in it. If you are set on a particular neighborhood, try to visit it at different times on different days of the week to see your future neighbors in action. The Physical Property In general, the best investment property for beginners is a residential, single-family dwelling or a cob. Condos are low maintenance because the condo association is there to help with many of the external repairs, leaving you to worry about the interior. Because condos are not truly independent living units, however, they tend to garner lower rents and appreciate more slowly than single-family homes. Single-family homes tend to attract longer-term renters in the form of families and couples. The reason families, or two adults in a relationship, are generally better tenants than one person is because they are more likely to be financially stable and pay the rent regularly. This owes to the simple fact that two can live almost as cheaply as one (as far as food, rent and utilities go) while still enjoying dual income. As a landlord, you want to find a property and a neighborhood that is going to attract that type of demographic. When you have the neighborhood narrowed down, look for a property that has appreciation potential and a good projected cash flow. Check out properties that are more expensive than you can afford as well as those within your reach – real estate can often sell below its listing price. Watch the listing prices of other properties and ask buyers about the final selling price to get an idea of what the market value really is in the neighborhood. For appreciation potential, you are looking for a property that, with a few cosmetic changes and some renovations, will attract tenants who are willing to pay out higher rents. This will also serve you well by raising the value of the house if you choose to sell it after a few years. As far as cash flow, you are going to have to make an informed guess. Take the average rent for the neighborhood and subtract your expected monthly mortgage payment, property taxes (divided by 12 months), insurance costs (also divided by 12) and a generous allowance for maintenance and repairs. Don't lie to yourself and underestimate the cost of maintenance and repairs or you will pay for it once the deal is done. If all these figures come out even or, better yet, with a little left over, you can now get your real estate agent to submit an offer and, if everything goes well, order business cards with Landlord emblazoned across the top. Read more: Top 10 Features Of A Profitable Rental Property | Investopedia http://www.investopedia.com/articles/mortgages-real-estate/08/buy-rental-property.asp#ixzz4Bla2OTGK Follow us: Investopedia on

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

What to do if you are upside down on your home.

Written By: Miranda Marquit Right now, I am in the process of a cross-country move. As part of this move, my husband and I have decided to sell our home. We are fortunate right now in that we are under contract for a price that (barely) exceeds what we owe. A few weeks ago, though, we were concerned that we wouldn’t be able to sell our home for what we owe; we thought we would come up short. It’s what happens when you buy at the top of the market and then try to sell before the market is completely recovered in your area. I began considering our options. “If you can’t sell your home for what you owe, you can continue to live in it, rent it, or short sale it,” says Annie Bjerkestrand of RMG Real Estate in Anchorage, Alaska. What can you do with your home? The first question you have to ask yourself is what you will do to fit your needs. Since my husband is starting a new job on the other side of the country, living in our home isn’t really an option. We want to move as a family, and splitting us up while I try to get more for the house doesn’t fit our goals or lifestyle. Another option is to rent it out. If you think that you could be a landlord, it might make sense to let someone else live in the home and pay the mortgage. That way, you build equity in the home without the need to make mortgage payments. However, it’s important to understand what being a landlord entails before you take this step, especially if you move across the country. You will be responsible for maintenance costs and repairs. You might not be able to directly manage the property, so hiring someone to do it for you could become an option. The biggest downside, though, is that if you don’t carefully vet your tenants, you could end up with people who don’t pay on time, or who damage your property, reducing its value. “It is a gut-wrenching process,” says Bjerkestrand. “Renting or continuing to live in the property are options that won’t affect your credit, though.” The last option on Bjerkestrand’s list is to short sale the home. In this process, you work with the lender to sell the home for less than you owe. The lender accepts less, and forgives you the difference. “A short sale should be avoided at all costs,” says Bjerkestrand. “This is a solution only if you must get rid of your property and you can’t sell for what you owe.” A short sale will impact your credit, bringing it lower. Additionally, you might end up with tax consequences for a short sale. The forgiven amount is considered income by the IRS is some cases (although the IRS does allow for some leeway in certain cases). Consult with a tax professional so that you understand the potential tax implications of going through with a short sale. Interestingly, Bjerkestrand does have one more recommendation, added almost as an after-thought. “You can also get a line of credit so that you are able to bridge the gap between the sales prices and what you owe.” Basically, if you want out of the house quickly, and you don’t want to accept the consequences of a short sale, you can pay the difference yourself. This is the route that my husband and I would likely take if we needed to. You can get another loan (if you have the available credit and a good enough credit rating) and pay off the difference in price, plus the closing costs and other expenses that come with selling a house. If you have a large enough emergency fund and don’t mind depleting it, you could also use some of the assets you have on hand to get the deal done without impacting your credit rating. My husband’s new job pays substantially more than his current job. We expected this whole process to take a lot longer, so we figured we’d have a couple months to save up for closing costs (which the seller usually pays) and any difference between what we could get for the house and what we owe. However, things are moving quickly, and if this sale falls through, or if something changes, we have discussed the possibility of either a loan, or draining the emergency fund, since we could take care of the situation a couple of months after moving. Since we have the resources to get rid of the home without damaging our credit, that’s the route we are going to take — no matter what happens. But not everyone is as lucky as we are. Voluntary foreclosure: going to extremes to get rid of your home Bjerkestrand’s suggestions aren’t the only possibilities, however. David Reischer, an attorney with LegalAdvice.com, points out that it’s also possible to take extreme measures if you don’t have other options. “A person may decide to simply walk from the property and allow the lender to foreclosure,” Reischer says. Voluntary foreclosure is subtly different from a “regular” foreclosure. In a more “traditional” proceeding, the homeowner usually can’t make payments because of some financial situation. A job loss or other financial setback might make it impossible to make mortgage payments. In these cases, the homeowner often tries to avoid the process, even if these efforts fail. With a voluntary foreclosure, you decide to move on, even though you could, technically, afford your mortgage payments. You want out of the house, know that you can’t get what you still owe the bank for it, and you decide it’s preferable to just move out and stop making your payments. If you take this step, though, you need to be aware of the possible ramifications. “A lender can still obtain a judgment for the full amount due,” Reischer points out. A lender’s options in the case of voluntary foreclosure depend on the state the home is in, so you want to double-check the laws before taking this drastic step. “A voluntary foreclosure will significantly and negatively affect your credit score as well,” he continues. It’s not fun to decide what to do when you owe more than your house will sell for. Look at your options, and make a choice based on your individual situation. In most cases, there is something you can do get out of the house if you need

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Inheritance Law and Your Rights

Inheritance law governs the rights of a decedent's survivors to inherit property. Depending on the type of inheritance law your state has, a surviving spouse may be able to claim an inheritance despite what you may have written into your will. This statutory right of a surviving spouse hinges on whether a state follows the community property or common law approach to spousal inheritance. Children, and sometimes grandchildren, also have a right to claim an inheritance when a parent or grandparent dies. Inheritance Rights of a Surviving Spouse Whether a state follows community property laws or common law determines how inheritance law affects the distribution of a married decedent's estate. The following are community property states: Arizona, California, Idaho, Nevada, New Mexico, Texas, Washington, Wisconsin, and Alaska (although in Alaska, there must be a written agreement between the spouses). The remaining states follow common law. Inheritance Law in Community Property States Community property is generally property acquired by either spouse during the marriage. This includes income received from work, property bought during the marriage with income from employment, and separate property that a spouse gives to the community. A spouse retains a separate interest in property acquired through the following methods: Inheritance or a gift Acquisition of the property prior to the marriage An agreement between the spouses to keep the property separate from the marriage community In a community property state, each spouse owns a one-half interest of the marital property. Spouses have the right to dispose of their share of the community property in whatever way desired. A deceased spouse, for instance, can elect to give his or her half of the community property to someone other than the surviving spouse. Spouses cannot give away the other spouse's share of the community property, however. A provision in a prenuptial agreement may also change a spouse's right to distribute the property. A spouse has the sole right to dispose of their separate property. A deceased spouse can distribute both their separate property and their share of the community property in a will. Inheritance Law in Common Law States Unlike a surviving spouse in a community property state, a spouse is not entitled to a one-half interest in all property acquired during the marriage. In a common law state, both spouses do not necessarily own the property acquired during marriage. Ownership is determined by the name on the title or by ascertaining which spouses' income purchased the property if a title is irrelevant. If, for example, only one spouse takes the title to a property, the spouse with the name on the deed owns the house even if the other spouse actually paid for it. A surviving spouse in a common law state has protection from complete disinheritance, however. Every common law state has different guidelines, but most common law states' inheritance law allows the surviving spouse to claim one-third of the deceased spouse's property. A deceased spouse can choose to leave less than a state's mandated inheritance right, but the surviving spouse may make a claim with the court to inherit the predetermined amount. The will is carried out according to the decedent's wishes if the surviving spouse agreed in writing to accept less than the statutory amount or the surviving spouse never goes to court to claim the legal share. Inheritance Rights of a Spouse after Divorce Once a divorce becomes final, many states automatically revoke gifts made in the will to the ex-spouse. In other states, a divorce has no effect on gifts to the ex-spouse. It is best to create a new will after a divorce becomes final to prevent an unintentional gift to a former spouse. Inheritance Rights of Children Unlike a spouse, a child generally has no legally protected right to inherit a deceased parent's property. The law does protect children when an unintentional omission in a will occurs, however. The law presumes that such omissions are accidental -- especially when the birth of the child occurred after the creation of the will. Depending on whether a spouse survives the decedent, the omitted child may inherit some portion of the deceased parent's estate. If the omission was intentional, though, the will should expressly state this. Inheritance Rights of Grandchildren In general, grandchildren do not have a legal right to inherit property from a grandparent. In some states, if the parent of the grandchild is deceased, however, the grandchild may have a statutory right to inherit property from a grandparent if the will does not contain an express statement of the intent to disinherit the grandchild. - See more at:

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Size Impropriety In Land Value Analysis-Land Valuation

A common public misconception is that "per unit" land values apply universally within a market locale. That is, a three acre site is sometimes thought to command the same "per acre" price as a one acre site. Similarly, a one acre retail site may be thought to carry the same "per acre" price as an adjoining ten acre parcel. Generally, sales that vary significantly in size will usually have a different "unit" value and different highest and best use.Regardless of size, the value of any parcel is predicated on highest and best use in the marketplace. Many successful investors have proven this concept by: [1] successfully assembling multiple, smaller parcels into one larger parcel whereby the whole value is greater than the sum of the parts (based upon a differing use for the property) and/or, [2] splitting a larger parcel into parts that, collectively, exceed the value of the whole. The value influences of plot size and plottage are important highest and best use considerations. The price "per square foot" or price "per acre" of a parcel can increase or decrease both above and below the optimum size configuration for a particular land use. If a site is larger than the market norm for a particular use, the value of the excess land tends to decline. Increased size decreases unit price although this decrease is not usually proportionate i.e., doubling size will not necessarily "halve" the unit price. More accurately, unit values change in accordance with a hierarchy of differing highest and best use. In another words, a larger site cannot usually be applied profitably to the same uses as a small site and vice versa. In larger plot sizes, land value can be influenced by; [1] higher unit building costs (in the case of very large buildings) resulting in greater speculation as to the potential absorption of space by the market, [2] higher carrying costs and, [3] increased capital investment requirements. Plottage can be a negative value factor if a land tract is larger than the normal configuration for a particular use type. Potential use is another consideration. Certain property types, such as manufacturing or industrial use, may command a higher price per unit value because their use could be limited in a given market. Alternately, smaller sites might be discounted if they are unable to accommodate the required separation between well and septic placements while still providing adequate space for buildings, parking, and outside storage. The presumption of highest and best use usually precludes substituting differing size parcels from one class of property to another. The impropriety of using different size comparable sale parcels is best apparent in direct sales comparison - the common technique used by real estate professionals to estimate land value. This technique, based upon the principal of substitution, holds that the value of a property replaceable in the market tends to be set by the cost of acquiring an equally desirable substitute property. But this approach can have limited use when site sales are limited and vary greatly in size. The use of larger size comparables can understate the value of a smaller property while smaller size comparables can overstate the value of a larger property. When sales of similar sized vacant parcels are unavailable for comparison, an appraiser will usually supplement improved land sales where the improvements either have marginal value or, they impair the sites highest and best use and have negative value. Using this valuation method, the salvage value of improvements, less demolition expense, is deducted from the sale price to derive net land value. This extraction process is a reasonable methodology in determining land value when property sales have outmoded industrial buildings, dilapidated farm structures, or residential buildings on commercially zoned land. In conclusion, as size variance increases, land prices tend to change inversely. The failure to adequately account for this size/price progression can distort the value estimate. Other valuation methods should be considered to support land value including supplementing comparable sales data with listings and/or applying residual techniques in income

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Different definitions and forms of residential real estate

Single-Family Home - The most common definition of a single-family home is: An individual, freestanding, unattached dwelling unit, typically built on a lot larger than the structure itself, resulting in an area surrounding the house, known as a yard. A derivative of this definition includes the single-family unit that has a condominium ownership structure. In this case, the land associated with whole ownership of the home comprises only that which supports the structure's foundation. In other words, the "yard" is co-owned in common with the rest of the residents of the community. In many markets, adjacent units that share walls and other structural components are considered to be single-family homes. While these homes have separate access to the outside and do not share plumbing or heating equipment, they do not meet the strict definition of a single-family home and are considered part of the multi-family genre. Zero-Lot-Line Home - The strict definition of a zero lot line home relates to the placement of the home on the building lot. In order for a small building lot to provide usable yard space, one side of the home is placed as close to the property line as possible. This placement typically allows marginal space between two homes on adjacent lots. Therefore, there are generally no windows on the sides of the homes closest to the property line. The zero lot line method of development has also been utilized for attached homes, which are commonly known as duplexes in which case the two homes share a common wall that is aligned with the center of the two adjoining lots. Patio Home - There are many names associated with this product type including garden home, garden villa, courtyard home, club home, cottage, and more. In any case, "patio home" most commonly refers to a single-story, single-family unit sited on a building lot that is typically not much larger than the building foundation. These products generally have a condominium ownership structure and building exteriors are typically maintained by the homeowners association. While the strictest definition focuses on the single-family configuration, the term is also used to describe multi-family products that are generally built with two to four homes per building that share at least one sidewall. In this regard, the terms villa, garden home, garden villa and club home may also apply. Villa - The "villa" has a significant history. In Roman times, the villa was an upscale country house; after the fall of the Empire, the term came to define a small, fortified farming compound, gradually re-evolving back into a luxurious country home in the Middle Ages. The definition of the present day villa in a suburban community environment has many connotations, the most common of which focuses on the traditional configuration of a multi-story, single-family home. But the term appeals to people of all economic levels and therefore, the various configurations associated with the villa are largely dependent upon location and market position, i.e., pricing. At the lower end of the price spectrum, the villa mirrors the Patio Home, i.e., a single-story, single- or multi-family product with little or no surrounding land. In the resort community environment, this product type can be an elaborate, multi-story mansion replete with a private swimming pool on several acres. In development and marketing parlance, the term has essentially become hackneyed and one must be prepared for the unexpected when considering the "villa." Cottage - The cottage has traditionally indicated a modest structure. These single-family homes may have one or two stories, but "small" is integral to the description. The lot size associated with this product type is largely dependent upon the location. In high density environments the cottage can be a zero lot line or patio product; in more rural locations, the diminutive cottage may be sited on five acres. The term is meant to evoke a sense of coziness and charm versus urban sophistication. In this regard, the cottage is found commonly in rural mountain and seaside locations. Cabin - The eco/green movement has spawned the resurgence of the cabin. This freestanding single-family product type is usually small, typically containing a second-story sleeping loft, and is more rustic in design than the cottage. Generally a second home option, the cabin can be found in a variety of rural communities and resorts throughout the country and is very prevalent in the ski resort environment. The term "cabin" has been noted in a few instances to be used for attached dwellings in buildings comprising two to four units. Attached or detached, the cabin is generally constructed of wood or logs and has a decidedly bucolic persona. Courtyard Home - This style of home is typically defined as a single-family patio home product, but can also be a multi-family (attached) product. The distinction of the Courtyard home is the private nature of the entry that is encompassed in a gated, enclosed courtyard. The larger single-family courtyard product may have an attached guest suite inherent in its design. The courtyard home is typically owned as a condominium and developed as a "maintenance-free" housing option. That said, the courtyard design has become increasingly popular at the high end of the market and can also be found under the "villa" category. Large villas with private courtyards are generally developed as single-family, wholly-owned properties. Multi-Family Housing Products - The multi-family housing category includes many configurations ranging from side-by-side townhomes and villas to high-rise buildings containing an abundance of apartment flats, and various and sundry types in between. Many of the terms used to define a particular multi-family housing product are interchangeable, making their definitions somewhat dubious. What follows represents definitions that are generally accepted by the US building industry. That said, the terms do, vary from region to region and community to community. Duplex, Triplex, Quadraplex - These multi-family housing terms simply define the number of units contained in a multi-family building. A duplex consists of two units per building; a triplex, three units per building; and a quadraplex, four units per building. While the duplex and triplex are generally built side-by-side in a row, the units in a quadraplex are generally constructed back-to-back. Townhome/Townhouse - The term townhome-or townhouse-originated in the United Kingdom and simply denoted exactly what it was - a home in town. The townhome was generally owned by a peer or member of the aristocracy, as an alternative residence to their country home, to be used when parliament was in session. The original townhouse units were attached side-by-side in a row creating the illusion of one massive building. Many have since been converted to tenements, aka rental apartments. Thanks to its urban roots, the design of the townhouse remains distinct, being relatively narrow, tall (multi-storied) and uniform. This configuration is also known as a "rowhouse." This term is not common in the US as the perception of a rowhouse is that it is smaller and less luxurious than a townhouse. In recent years, the townhouse/townhome has evolved to represent non-uniform units in suburban areas that are designed to provide the perception of a single-family home in spite of the product's inherent "attachment." The units themselves have also grown in size. While the traditional townhouse apartment is defined as a two bedroom unit with the living room in the front on the lower level, the kitchen in the back, and two bedrooms on the front and back of the upper level with a single bathroom between, contemporary designs now include three and four bedrooms, an equal number of bathrooms, and floor plans of great variety. Most modern townhomes also accommodate a one or two car garage. Apartment/Apartment Flat - Apartment is a generic term that can be applied to any multi-family product, including the multi-level townhome. However, in the strictest sense, apartments are "flats", i.e., single-level units, stacked on top of each other in multi-story buildings. This is the configuration for many condominium buildings, ergo the misperception that a "condominium" is an apartment rather than a form of ownership. Apartment flats are diverse in size and design, and include studio/efficiency units, and one, two, three, and more, bedroom floorplans. The modern apartment flat can be as large as a single-family home and can include a family room, den, home office, and/or formal dining room. Carriage Home/Coach Home - These terms are interchangeable and a hint as to their configuration lies in the moniker. This housing type traditionally had three stories; two living levels above a ground floor space used to store carriages and coaches. Today, the ground floor space contains a single-level apartment unit while the top two levels typically comprise a townhome. Some carriage/coach home buildings have just two stories, accommodating only single-level designs. While the typical carriage/coach home building will consist of four to six units - two or three single level ground floor units and two or three townhomes -- in some cases there are more single-level ground floor apartments than townhomes, giving the building a unique architectural flair. Another unique aspect of this design is the ground level entry to the top level living quarters. In this regard, many carriage/coach homes include private elevators. Condo-Hotel Residences -The condominium hotel concept took root at the height of the real estate boom as a way for the hotel developer to create cost-efficient inventory of overnight accommodations. Nevertheless, the condo-hotel unit is fee-simple deeded real estate. While the initial concept appeared to favor high-rise buildings in urban locations, this product type can take many physical forms including suites, studios and multi-bedroom designs in an apartment flat configuration, as well as attached and detached villas in a variety of locations, including destination resorts in rural and seaside areas. The key component of this concept is the management aspect that appeals to the investor and second home buyer. In this regard, the unit can be put into a management program and the unit rented out by the hotel on an overnight basis. The net proceeds from the rental are typically split between the hotel and the owner of the unit. The owner of a condo-hotel unit generally has access on demand, but may be limited to a particular period of time during the course of a given year. Branded residences, i.e., those that are marketed under the hotel brand name such as Four Seasons, Ritz-Carlton and St. Regis tend to garner the highest prices. Private Resort/Hotel Residences-The private resort residence is a wholly-owned, private property located within the confines of a full-service hotel or resort. Unlike the condo-hotel residence, the private resort/hotel property is not managed by the hotel, and therefore, is not rented out on a nightly basis. These properties can take a single-family or multi-family configuration, condominium ownership generally applies providing maintenance-free ownership, and all hotel services are available to the owner including in-room dining, valet and concierge. Branded private residences-those that are developed in conjunction with a branded hotel component-are a product that can suffer a tendency toward the extreme, with prices commonly in excess of $1 million. Private Residence Club (PRC) - Contrary to the term, this product definition is not founded in club membership. The PRC is an upscale form of fractional ownership of fee-simple, deeded, vacation property. The PRC residential product is generally larger than the standard fractional ownership unit and is decidedly more luxurious, generally resulting in higher prices. The programs associated with this product typically allow for eight to 12 co-owners per unit providing four to six weeks of guaranteed access. This usage period is more limited in comparison to the lower priced fractional products, which are often sold in quarter-shares (four owners per unit) in recognition of the fact that the upscale consumer generally has more money than time. While this may appear to be a contradiction in value, this form of ownership is indeed designed to provide a sense of exclusivity. The PRC typically does not permit overnight rental to the general public and instead preserves a sense of private ownership. This perception has theoretic value, thus equating to higher prices. The typical PRC product in a luxury resort environment is a three-bedroom/three bathroom single-level apartment unit approximately 2,500 square feet in size. Owners are referred to as "members" and as such have access to all of the amenities associated with the Private Residence Club. These typically include golf, tennis, swimming and fitness facilities. Similar to condominium ownership, an annual fee is charged for maintenance and repairs. Housing Cooperative (Co-Op) - A housing cooperative is a legal entity, usually a limited liability corporation (LLC) that owns real estate consisting of a number of individual units in one or more buildings. Each shareholder in the legal entity has the right to occupy one housing unit, often subject to an occupancy agreement, which is similar to a lease. A Co-Op shareholder does not own real estate, but a share of the legal entity that does own the real estate. Cooperative housing has a long history in the US as a means of homeownership and resident control. Beginning in the early 1900s, the concept was the most prominent form of homeownership in multi-unit buildings until the advent of the condominium movement. Historically, cooperatives have been largely confined to urban locations. Abraham Kazan, (1889-1971) is considered to be the "father of US cooperative housing." Kazan grew up an eyewitness to appalling tenement conditions in New York City. As president of the Amalgamated Clothing Workers Credit Union he formed Amalgamated Housing in the Bronx in 1927 to provide affordable housing for the middle-class workforce. New York is well known for its co-ops and more than 100,000 people live in homes today built by Kazan's efforts. Large housing cooperatives are generally managed by a board of directors elected by and from among the shareholders. In smaller co-ops, all members sit on the board. There are essentially two methods of purchasing a housing co-operative share: Market rate and limited equity. With market rate, the share price is permitted to rise on the open market and shareholders may sell at whatever price the market will bear. The Dakota, where Beatle John Lennon made his residence, is emblematic of an upscale, market-rate co-op. With a limited equity share, the co-op governs the pricing. The motivation associated with this type of arrangement lies in maintaining the property's affordability and income restrictions often apply to the buyers. Housing co-operatives are found all around the world, but are most prevalent in the US, Canada, India, Germany and the Nordic countries (Sweden, Finland and Norway.) Timeshare/Interval Ownership - The informal practice of joining with friends and family to own vacation property has been around for decades, but the development concept is comparatively new. This relatively novel development approach has many buyers confused as the terms tend to overlap and are often misunderstood. There is a distinct and vital difference between Timeshare/Interval Ownership and Fractional/Private Residence Club ownership and it has to do with what you actually own. The terms Interval and Fractional furnish hints. One alludes to a time period (interval) while the other is commonly used with respect to the co-ownership of tangible (real) property. In development parlance, Interval ownership generally refers to the Timeshare product while Fractional ownership relates to the Private Residence Club (PRC) product - not to be confused with a Destination Club, which is a separate an uniquely defined product altogether. The difference between Interval and Fractional ownership lies in the "product" that is co-owned. While Fractional ownership provides fee-simple ownership of real property evidenced by a deed, Timeshare is exactly as its name implies -- the right to use a property for a particular period of time. In this regard, the emphasis is on "time" not real property. While a time "share" is a saleable commodity and may or may not appreciate over time, it does not constitute ownership of the actual real estate. Other differences between the two include the guaranteed usage period. In the case of Timeshare, usage is generally purchased in one-week increments. The usage period may be placed in rotation so that the timeshare "owner" has access to the property across all seasonal periods. Alternatively, some programs adjust the purchase price dependent upon a selected period of use, which is guaranteed. When units are not in use by the shareholders, they are rented out to the general public. In comparison, the guaranteed access period inherent in Fractional ownership is significantly longer, ranging from a month to as many as three months, generally sub-divided into two- to four-week periods spread across all four seasons. While Fractional units can be rented out to the public, the most upscale fractional properties are not, and are instead reserved for the exclusive use of the co-owners. Further information about timeshare is available from ARDA. Destination Clubs - Once the exclusive domain of the über rich, Destination Clubs have evolved to be more inclusive, and as more and more Baby Boomers have reached their peak earning years they have opted for this less-time-consuming alternative to maintaining a vacation home. Another appealing aspect of the concept is the variety that most Destination Club portfolios provide as the properties can be located around the globe. The definition of the Destination Club has its basis in club membership, and there are essentially two basic membership structures: Equity and Non-Equity. The first Destination Club membership offering was launched in 1998. Private Retreats, since purchased by Ultimate Resort and reorganized to become Ultimate Retreats, was a non-equity program that essentially mirrored a country club membership providing the member with a right to use the club's assets. The assets of a Destination Club tend to be million-dollar-plus vacation homes. Members do not own an interest in the homes nor do they participate in any potential appreciation of the properties. Non-Equity Destination Club members pay an upfront membership fee (deposit) giving them the right to reserve and use the properties subject to availability and the Club's reservation policies. Upon resignation, a non-equity member typically receives 75% to 100% of the fee paid. However, there is no assurance that the refund will be immediately available at the time of resignation. If there are several members seeking to resign and no new members to take their places, a resigning member may have to wait to exit. The industry standard for resignation is "three in/one out" meaning for every three new members, one member may resign. In the Equity model, the member's deposit represents an interest in the club's property portfolio and any appreciation in the membership value. When exiting the club, the refundable portion of the fee may be adjusted to reflect the appreciated value of the real estate portfolio or the increase in the membership deposit for new members. Both membership structures call for the payment of annual or monthly "dues" which are used to maintain the properties. Many Destination Club properties are located in destination resorts. In this regard, members have access to the amenities on a pay-as-you-go basis. If the home is located in a private community, access to the recreational amenities may be restricted and/or require additional membership fees to use specific amenities such as the golf course, when in residence. The typical Destination Club program calls for a member-to-unit ratio of 7 to 1, and members generally have 21 to 60 days of guaranteed usage throughout the year. The predominant Destination Club property type has traditionally been a single-family home in the 2,000 to 4,000 square foot size range, but condominiums and condo-hotel suites are increasingly becoming a part of the Destination Club portfolio. The largest Destination Club is Exclusive Resorts, which has 350 properties in 40 locations. The latest incarnation within the Destination Club model is the activity-centric club. For example, The Markers has homes in 16 locations, all of which are golf communities or destination golf resorts. One of the newest hybrids is not only activity centric, but acts more like a Timeshare in that it is "points-based." The Presnell Sporting Collection offers members access to high-end fishing and hunting-oriented sporting travel experiences. Instead of buying properties to accommodate members, the Club buys blocks of time in hunting and fishing lodges around the world. Vacation time at each lodge is priced in "privileges" and membership fees escalate dependent upon the number of "privileges", i.e., length of stay in a given destination. Destination Clubs have been characterized as a "rapidly accelerating luxury-access revolution" that is being fashioned to meet demand as the concept evolves. For more information on Destination Clubs, visit Sherpa Report. Land Lease - A land lease is a type of financial arrangement in which the ground under a structure is leased, rather than sold. In this regard, the land and the structure are owned separately and independently by more than one entity. This practice occurs most commonly when an investor wants to retain title to the land but does not necessarily wish to be the developer. The investor might work with a developer to build a structure and rent or sell it, with the understanding that the land is leased and does not come with the building. This type of arrangement is common with respect to farms in rural areas, while in urban areas it is often associated with cooperatives or tenant-owned residences. Land leases are also prevalent in mobile home parks where the housing is not permanently anchored to the land, and resorts, particularly that portion dedicated to the amenities, may be constructed on land leased from a third-party or a local government. In this regard, any condo-hotel units or private residences located within the resort may be subject to the terms of the lease as well. Lease terms generally range upward to 99 years. Common-Interest Developments (CIDs) - The fastest growing segment of the housing industry has been common interest developments (CIDs), more commonly known as condominium developments. (See "Condominium Ownership") The common denominators between the terms are the form that ownership takes and the governance of the community, which can include freestanding and multi-family dwellings. In a CID, homeowners own their residence and the land upon which it is built, but co-own, "in common" the common areas, i.e., roads, sidewalks, parks, playgrounds, clubhouses, and any other amenities. This form of ownership was pioneered in the early 1960s as developers lobbied for increased density in suburban settings. A chief motivator was the Federal Housing Administration's authorization of federal home mortgage insurance in 1963 exclusively for condominium homes in subdivisions with a qualifying homeowner association. In the 1970s, escalating land costs prompted developers to increase community density, i.e., build more homes on less land, while retaining a suburban feel, spawning the popularity of "cluster homes" surrounding open green areas, maintained by the HOA. This form of development and ownership is found in all types of master-planned PUDs including golf, retirement, and resort communities. For further information on common-interest developments, visit the Community Associations Institute.   Homeowner Association (HOA) - Since 1964, homeowner associations (HOAs) have become increasingly common as residential development has become more structured and formalized. TheCommunity Associations Institute trade association estimates that HOAs governed 23 million American homes in 2006. A Homeowner Association (HOA) is an organization initially created by the developer of a master-planned community (MPC) or planned unit development (PUD) for the purpose of providing benchmarks for governance of the development, management, and sales of a residential project. Creating the governing entity allows the developer to exit the project financially and legally by transferring ownership of the association to the homeowners. This is typically accomplished after a pre-established number of properties have been sold. Most HOAs are incorporated and subject to state law governing not-for-profit corporations, but are implemented by a Board of Directors comprised of the residents (members). HOAs provide services, regulate activities, levy assessments and have the right to impose fines. Each member (resident) of a homeowners' association pays assessments that are used to cover the expenses associated with the maintenance of the development. Common expenses include landscaping of common areas, upkeep of the community amenities, insurance, management company or on-site manager costs, security personnel, etc. There are varying degrees of conformity required in a HOA-governed development. Housing style, size and color, landscaping, fencing, etc., are typically mandated, and restrictions as to the use of the property may also be imposed including the types of vehicles that may be kept at the home, and pet restrictions. When a homeowner purchases a home governed by a HOA, he/she signs a document agreeing to the covenants, conditions and restrictions associated with the development. If the property is sold, the seller ceases to be a member of the association and the new owner becomes a member. For further information about homeowners associations, visit the American Homeowners Association website. Covenants, Conditions and Restrictions (CCRCs) - CCRCs are the governing documents that dictate how the homeowner's association operates the community. The documents provide the policies, procedures, rules and regulations that the owner, their tenants and guests must follow. When buying a home, it is important to understand the restrictive covenants, i.e., deed restrictions that are in place for the real estate being purchased, as they dictate how one can and cannot use the property. Some common residential community deed restrictions include mobile homes and commercial uses. A more specific example would be the numbers of structures permitted on a given building lot. In some cases, a guesthouse would be permitted, while in others the building lot may be restricted to a singular unit. It is the responsibility of the elected Board of Directors to enforce the rules and regulations set forth in the CCRCs. Policies communicate, organize and focus the resources of the HOA. Procedures are set to accomplish a particular objective. For instance, each resident is a member of the homeowners' association and as such pays assessments to cover the expenses associated with the maintenance of the community. The procedure for the collection of these assessments would be outlined in the CCRCs. Rules, regulations and restrictions are set forth within the CCRCs to define the allowable uses of the common elements of the community, the architectural guidelines for the residences, and the behavior of residents and guests. Some examples include pets, parking, noise, exterior modifications, use of the common facilities, tenant and guest activities. If a homeowner breaks a rule, penalties can include a fine, forced compliance, and even a lawsuit. The Covenants, Conditions and Restrictions serve to provide a residential development with a standardized appearance and control over the activities that take place within its boundaries. When enforced, CCRCs effectively serve to protect property values. A buyer should receive a full copy of the CCRCs prior to closing on the purchase of property. Homeowner Association (HOA) By-Laws - The HOA by-laws set forth precise guidelines with respect to how the homeowners' association operates. Issues that are typically defined in the by-laws include the composition of the Board of Directors, the method by which the Board is elected, the terms of office including term limits, the handling of Board vacancies, when elections should take place, how the removal of Board members should be performed, and when/how often meetings should take place and the associated requirements of notification. Other issues addressed in the by-laws include voting rights and qualifications, the requirements for a quorum, ballot tallying procedures, an explanation of how funds will be handled, and by-law amendment regulations and adoption procedures. Amenities - Any tangible or intangible benefit associated with real property, particularly those that increase its attractiveness or value and contribute to its comfort or convenience, is deemed an amenity. In a residential community, tangible amenities may include golf, a swimming pool, tennis courts, dining and fitness facilities, a clubhouse, parks, dedicated walking/biking trails, a lake or fishing streams, and a manned, gated entrance. Intangible amenities may include views, nearby activities, a highly rated school, and services such as concierge, valet, and on-site program directors and instructors. Examples of amenities relative to individual homes include appliances, window treatments, specialized flooring, cabinetry and countertops, fireplaces, enclosed exterior living areas, garages, and a swimming pool or hot tub. Both community and individual home amenities add to the value of property. Wellness Amenities - Wellness and health-related activities have become increasingly popular in both residential and resort environments, particularly with the Baby Boom generation. Guided hiking and biking, fishing and kayaking, fitness facilities and programs that include classes in Yoga, Tai Chi, spinning, health and cooking, meditation, etc. are becoming common in upscale residential communities. The Spa is perhaps the most popular wellness amenity and residential communities are meeting the demand by providing Spa services if not full-service on-site Spa facilities. Family participation in wellness is being encouraged with multi-generational programs that focus on everyone from the children to the grandparents. Security - Security is a major issue with respect to today's living conditions, and in this regard, nearly all newer subdivisions, master-planned communities, and PUDs are now gated. The term "controlled access" refers to a manned gate or an electronic gate that lifts when a qualified auto with an electronic device or sticker approaches, or upon the insertion of a dedicated key card. A manned gate is typically operated by a full-time staff, generally supported by a computer system that provides the names of all residents that have property access, and accommodates guest access by resident request. Roving security guards are often employed to maintain a sense of safety on a 24-hour basis. Security staff services are typically procured from an outside resource and become an expense to the HOA. In the alternative, community watches are often established utilizing the volunteer services of the residents. Common Area - In condominium and cooperative housing projects, common areas are those that are not owned by an individual owner of a residential unit but shared by all owners, either by a percentage interest or owned by the management organization (HOA). In multi-family projects, such as condominium apartment buildings, the common areas can include the lobby, hallways, parking garages, laundry rooms, gathering spaces, etc. In residential communities, common areas may include recreational facilities, clubhouses, community centers, parks and other outdoor open space, parking, landscaping, fences, and all other jointly used space. Management of the common areas is the responsibility of the homeowners' association or the cooperative Board of Directors, which collects assessments from the owners that are applied to the maintenance, insurance, and reserves for replacement of improvements within the common

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Boundary Disputes

by: Andrew Sarazin Encountering a boundary dispute with an adjacent neighbor is a fairly common issue for landowners. There are many ways a boundary dispute can arise. Sometimes, deed descriptions are inaccurate and have been this way for a long time. Sometimes, though the neighbors all agree that the legal description is correct, one neighbor has been occupying a portion of the land for long enough to claim ownership of it, under a theory of “adverse possession.” Another possible source of dispute is when multiple, unrecorded deeds convey the same property to different people. Are you encroaching on the neighbors’ land, or are they encroaching on yours? The cause of the dispute, amount of land in question, and available options for resolution vary greatly depending on the facts of the situation. This article will discuss what to do first in the event of a dispute. Understanding the Boundary Issue in Question First, make sure you have a full understanding of the cause and nature of the dispute. You will need to get a professional analysis of whether you are encroaching on your neighbors’ property or vice versa, and find out how long the encroachment has gone on, how much land is being encroached upon, and whether permission was ever given to encroach. To obtain the needed information about your and your neighbor’s properties, you will most likely need to have a survey, appraisal, and a full title search performed. If you had any of these done when you purchased the property, and still have them, you can use them at this stage and save the expense of having them redone. However, you will most likely need to obtain new information if you must proceed to trial. During a survey, a licensed surveyor will physically locate the boundary of your property based on the legal description contained in your deed. This will help determine if your boundaries are located where you believe they are, and how much land is being encroached upon. An appraisal will tell you the market value of the piece of property in dispute. A title search will find all recorded documents in the chain of title of your property, and will show if there are any easements or deeds that may affect your ownership interest in the property. For example, the previous owner of your property may have granted an easement to the neighbor that was not discovered when you purchased the land, or may have outright deeded the property to the neighbor. The chances of something like this having occurred increase if you did not conduct a title search, but instead received a quitclaim deed when you obtained the property. If you purchased a title insurance policy covering your property (most likely a requirement if you financed your purchase using a mortgage), any issues like this should have been discovered by the title company and the title company may have to cover the costs of sorting out the matter. Consulting with an attorney at this point is also a good idea, to determine whether you have a valid claim and what additional information you will need if the issue proceeds to litigation. You may, unfortunately, discover that you have no case, or that you are in fact encroaching on your neighbor’s property just as the neighbor had claimed, in which case litigation will be futile if you cannot reach an agreement with your neighbor. Opening Discussions With Your Neighbor The area and value of land in dispute may be small enough that the issue is best resolved by mutual agreement rather than by rushing into court. Litigation costs add up quickly, and can easily exceed the value of the land in question. How you proceed greatly depends on your relationship with the neighbor. Keeping things friendly, or at least civil, is often the best approach. If your relationship with your neighbor allows, try to speak with him or her about the issue. Perhaps there’s simply a misunderstanding, which can be cleared up between the two of you. Although consulting with your attorney is advisable prior to talking with the neighbor, try to leave the attorney in the background for now – in other words, don’t get the attorney involved in communications with your neighbor, or take any action to file a lawsuit. A personal visit, phone call, letter, or even an email from you will be better received than a letter from your attorney, or actions like filing a complaint or placing stakes or ribbons on the land you claim is yours. That’s especially true if your neighbor doesn’t yet know that you believe there’s a boundary issue. You will figure out shortly after speaking with your neighbor whether attorneys will need to be brought in. Sending a Demand Letter to Your Neighbor Assuming the law is on your side, and private discussions between you and your neighbor have not been productive, a letter from your attorney  to the neighbor explaining the situation and either requesting action or containing a reasonable offer to settle can possibly resolve matters. An offer to settle may include a compromise to divide the property at issue, modify additional boundary lines not at issue, or offer or request a monetary payment to settle the issue. Even if the law is on your side, it may ultimately be cheaper (and significantly less hassle) to “purchase” the property from your neighbor rather than proceed to trial. However, your actions may also put your neighbor on the defensive. Your neighbor is likely to forward your letter to his or her attorney. Do not be offended, or interpret this to mean the neighbor is not willing to negotiate or compromise. It may simply mean that the neighbor wants to understand the options fully. After all, you sought out an attorney first. Sharing any information you have, including surveys, title work, and appraisals, can show you are being open and honest and are willing to work towards a resolution. It also gives your neighbor a full understanding of the situation without requiring him or her to separately incur these costs. (A neighbor who incurs costs will likely want to recoup these in the end.) However, don’t be surprised if your neighbor does want to obtain (and even pay for) independent information. Proceeding to Court (or Settlement) If the demand letter and other negotiations among your respective attorneys are not getting you the hoped-for results, it may be time to file a complaint in circuit court, most likely to “quiet title.” This means you ask the court to consider all your evidence and arguments (and your neighbor’s evidence and arguments) and decide who legally owns the land at issue. At this point, your attorney should already have most of the information needed for the complaint. Nevertheless, because preparing for litigation requires a great deal more research and paperwork (in order to satisfy the court’s requirements for legal briefs, exhibits, and so on) costs will begin to add up quickly. If, during the early stages of the litigation, the case appears ripe for a settlement, a conscientious attorney will try to minimize the costs of the demands placed on the opposing party. For example, the attorney might limit requests for documents known as “admissions” and “interrogatories.” Because most disputes settle short of trial, it often wise to proceed with an eye towards settlement, keeping relationships cordial and costs down, while remaining prepared for trial if it becomes unavoidable. The court may even require you to attempt mediation in order to reach a settlement. It is important to select a mediator who is experienced in real estate matters. The mediator will be able to guide the discussion and negotiation, and provide real-world insight into possible outcomes were the matter to go to trial. Retired judges often make excellent mediators in these situations, as they have probably seen and ruled on issues like yours in the past. If mediation is unsuccessful, settlement might still be possible, but your focus should now shift to trial preparation. Determine how much the land is worth to you, and whether going forward with trial is in your best interests financially and otherwise. In rare circumstances, you can recoup your costs from the other party, but often the best outcome you can hope for is to win your case and obtain clear title to the land while incurring significant expenses. The worst outcome would be to lose the case, and still be out your expenses. Sometimes a small strip of land is just not worth fighting

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

There’s a Reason It’s Called the Practice of Law

A guy walks up to a lady on a New York City street and asks, "How do you get to Carnegie Hall?" And the lady says, "Practice, young man. Practice." That joke, old as it may be, has a lot to tell us about being a great lawyer. As a partner charged with developing the talent of young lawyers who work with me, and as the mother of an aspiring tennis star, I've been giving a lot of thought to what makes a champion. Is it nature, or is it nurture? The answer, it turns out, is nurture. Thank goodness. A five-year study by researchers at the University of Chicago showed that the best determiner of what makes a champion isn't natural talent. It's drive, supplemented by early exposure, parental support and practice, practice, practice. Granted, this study was published two decades ago, but its findings are similar to those of a Florida State University researcher, whose "Cambridge Handbook of Expertise and Expert Performance" was published last month. The Chicago researchers looked at 120 of the nation's top artists, athletes and scholars and concluded that very few of them were prodigies in their field. Many, in fact, reported being unexceptional at it. They nevertheless, with ample amounts of parental support, dedicated themselves to excelling at their chosen field and, after years of hard work and practice, mastered it. What does all this have to do with lawyering? Quite a bit. Mastery of the law isn't easy. But neither is becoming an Olympic-level swimmer or a Nobel Prize-winning mathematician. The same skills that create a great athlete or a groundbreaking scientist are the same ones needed to become a proficient lawyer: a commitment to being the best, the drive to do what it takes to get there and the willingness to practice, practice, practice. Another important component of success, according to the Florida State researchers, is doing what you love, because if you don't love it, you are unlikely to work hard enough to get good. Because most people tend to dislike doing things they aren't good at, they often give up, believing they aren't talented. But what they really lack isn't talent -- it's drive. So, if you're looking to become a great lawyer, the only person who can make that happen is staring back at you in the mirror. ONWARD AND UPWARD The good news for women lawyers is that drive, determination, practice -- all those things are gender neutral. There's nothing inherently manly about hard work. Granted, men often have a leg up in this arena, given their typically exclusive access to the old boys' club, not to mention their early and ongoing involvement in sports and the competitive spirit it inspires. Nevertheless, women have proven themselves to be every bit as driven and determined as their male counterparts. That is, until their drive to succeed runs head-on into the desire to have a family. There are only 24 hours in a day, and children, husband and home often find themselves battling it out with client and boss for attention. There are no easy answers to this quandary. Some law firms try valiantly -- and, unfortunately, mostly vainly -- to solve it by offering flexible work schedules and the like. But clients and their legal problems are rarely sympathetic to such things as a child's ear infection or a soccer tournament. The problem many women lawyers face is that while trying to be an excellent lawyer and an excellent wife and mother, they end up being lousy at all three. So many, fed up with the exhaustion and the frustration, throw in the towel and leave the profession altogether. My recommendation to anyone considering that is to stop, take a deep breath and see if there's another way. If your firm offers any kind of alternative schedule, explore it. At the very least, if you can find a way to work as a contract lawyer, do that. Stay in the loop. Keep up with the law, the technology, the office gossip. You may yearn for the ability to spend hour after hour gazing at your toddler's beautiful face or waiting in the carpool line now, but in a few months, you'll wish to spend just a few hours in a nice suit in an office where nobody will follow you into the bathroom. The best news about your chosen field -- the law -- is that, in one important way, it is the polar opposite of athletics: Age doesn't mean obsolescence. In fact, most clients feel more comfortable if their lawyers have a few gray hairs. Women lawyers who sideline their professional ambitions temporarily to focus on their domestic ambitions don't have to sideline their careers completely -- or permanently. True, by working at a reduced schedule, your (usually) male colleagues who stay in the game full time will advance higher and faster than you will. That's to be expected. But if you love it -- and most of us do -- making it to the top, regardless of the timing, is still worth it. Kathleen J. Wu is a partner in Andrews Kurth in Dallas. Her practice areas include real estate, finance and business

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Big Changes in Residential Real Estate Closing

 Changes mandated by the CFPB spell the end of "Closings" and the advent of the "Consummation." The lending process for residential real estate closings is poised for dramatic changes later this year.  For loan applications commenced after August 1, 2015, lenders will take applications, make disclosures, and communicate with borrowers under new rules mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act as implemented by the Consumer Financial Protection Bureau (CFPB). In this edition of A Legal Moment, I will cover the basics of the new Loan Estimate, the new Closing Disclosure, and the rules of delivery and timing for these forms – both of which will impact scheduling and re-scheduling of closings.  Closings, by the way, are now called “consummations” under the law. Loan Estimate The first big change is the replacement of the current Good Faith Estimate and initial Truth in Lending Disclosure with a new integrated document called the Loan Estimate. The purpose of this form is to disclose a good faith estimate of the terms and costs of the loan.  Lenders must either hand deliver or mail the Loan Estimate to the borrower within three business days of the receipt of a borrower’s application. The day of the application does not count in determining the delivery deadline.  For example, if a borrower applies for the loan on Monday, the lender must deliver or mail the Loan Estimate on or before the following Thursday. Delivery or mailing of the Loan Estimate begins a seven business day waiting period before the consummation can actually occur. Saturday counts as a business day for this measurement.  In other words, if a lender delivers the Loan Estimate on Monday, October 1, consummation can occur no earlier than Tuesday, October 9. Revisions to Loan Estimates are very restricted.  The most likely reasons to trigger a revised Loan Estimate are changes requested by the borrower, a borrower’s request to lock a previously unlocked interest rate which changes the disclosure, or the borrower’s indication of an intent to close more than ten business days after the original Loan Estimate. A revised Loan Estimate triggers new deadlines.  If the lender revises the Loan Estimate, it must deliver or mail the revised Loan Estimate no later than three business days after receiving the information triggering the revision; if the the lender elects to mail the revised Loan Estimate, it must do so at least seven days prior to consummation.  Regardless of how the revision is delivered, finally, the borrower must receive the revised Loan Estimate no later than four business days before consummation. Closing Disclosure The second big change under the new rules replaces the current HUD-1 Settlement Statement and final Truth in Lending Disclosure with a new integrated Closing Disclosure. The purpose of this form is to disclose the actual terms and costs of the loan at the consummation.  Lenders must ensure, and be able to prove, that borrowers receive this form no later than three business days before consummation.  For this reason, most lenders are going to mail these forms by regular mail to take advantage of a legal presumption that mail arrives within three days of the date of mailing; in this way the lenders do not have to prove that borrowers actually received the form three business days after mailing. Taken together, these requirements mandate that theClosing Disclosure be completely prepared and mailed six business days before consummation.  Some large banks, such as Bank of America and Wells Fargo, are going to prepare these forms themselves instead of closing attorneys. Certain changes in the Closing Disclosure potentially trigger a new three-day waiting period before consummation.  These include changes in the loan’s annual percentage rate, changes in the loan product offered (e.g. from fixed rate to variable rate), or adding a prepayment penalty.  The limited changes on this list indicate that re-disclosure will not happen very often.  For any other change, the Closing Disclosure must be delivered before consummation, but there is no additional three-day waiting period. One other important fact about the new Closing Disclosure is that sellers are not allowed to see the form.  Sellers will receive a separate seller-only disclosure. Because loan applications commenced prior to August 1, 2015, will still close under the current system, there will be a period of time where closings will occur under two different rules. As you have no doubt noted, there are going to be some new very specific time requirements that will affect

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Residential Housing Post WWII

Background The end of World War II marked the beginning of a housing boom throughout the United States. Many returning soldiers became first time home owners with the help of government acts, including the National Housing Acts and the 1944 Serviceman’s Readjustment, known as the GI Bill. According to the U.S. Census Bureau, home ownership growth in South Carolina remained stagnant from 1900 up until 1940. But between 1940 and 1950, ownership climbed 15 percent (30.6 to 45.1%). By 1960 the number of home owners in the state reached 57.3 percent. Automobile ownership also drastically increased in the post-war period. The construction of improved freeways and the interstate highway system led to citizens having easy, quick commutes to work, allowing housing developments to flourish outside cities and downtowns. The proliferation of residential construction led to the expansion of planned communities and the suburbanization of many American cities. Some of these communities were planned subdivisions, with a land developer, one or two builders, and planned streets and public facilities. Other communities grew more slowly as neighborhoods developed. Neighborhoods are more likely to feature a mix of architectural styles and lot divisions. Post-war architectural trends also carried over to the country where rural residents constructed the new styles. Styles & Characteristics New residential architectural styles emerged after the war, including the splitlevel, while others that appeared earlier gained popularity, such as the Minimal Traditional and Ranch. These two styles are further discussed below because of their commonality throughout South Carolina. Residential architectural styles after World War II also include various Ranch styles, including the Transitional Ranch, A-frame, Cape Cod, bi-level, contemporary, neo-Mansard, and other revival forms. In addition, prefabricated houses became more popular. For descriptions and characteristics of these styles, please see the NCHRP Transportation Research Board’s publication A Model for Identifying and Evaluating the Historic Significance of Post-World War II Housing (PDF). The high demand for housing also created the need for a new, more affordable type of construction. Small housing styles, such as the Minimal Traditional, began popping up all over because their small, minimal design was quick and cheap to construct. Simplifying construction by mass producing materials and having construction teams consist of semi-skilled workers was also part of the answer. Materials such as plywood wall panels, sheet rock, asphalt shingles, and concrete-slab became common because of their low cost and quick installation. Although concrete gained popularity as a construction material, brick veneer construction and brick chimneys are characteristics of post-war houses as well. Siding materials varied with wood or asbestos shingles, brick veneers, clapboard, aluminum, and simulated products (Permastone, fiberboards, etc.). 1 Aluminum windows became more typical, but wood windows are also still common. The design of windows also changed from earlier housing. Before or during the war, houses typically had smaller window panes; while post-war houses feature larger window panes with decorative designs (see below). Significant Style Characteristics (may vary in appearance and use) Single-Family Ranch • One-story • Low horizontal form • Rectilinear or “L” plan • Concrete slab foundation or crawl spaces • Low-pitch gable, hip, or modified hip roof, broadside to the street • Roof materials predominantly asphalt shingle • Carport or garage • Exterior walls primarily a combination of siding materials or brick • Rectangular or square window or door openings • Steel casement and aluminum horizontal slider windows • Decorative windows: large single-pane picture windows, window walls, clerestories, bay windows, corner windows, diamond panes • Wide or prominent chimney Minimal Traditional • One or one-and-a-half stories • Simple, lacks decorative detailing • Rectilinear or “L” plan • Typically no attached garage or carport • Low or intermediate roof pitch • Eaves and rakes close building • Gable roof, often with a cross gable • Chimney • Relatively small windows with divided lights, wood or steel frame • Exterior walls typically wood siding, although aluminum is common on later examples Subdivision Development Characteristics • Landscaping features, including uniform building setbacks, lakes, streams, trees, and other park-like features • Street plans and names, especially cul-de-sacs and themed street names in the neighborhood • Signage • Schools, churches, and other community buildings highlighted or featured in the development

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Changes in the real estate market over the last 10 years

Homeowners are getting choosier. Coldwell banker says 59% of homeowners accepted the first offer on a home sale 10 years back. Now, only 46% do so, suggesting owners are pickier in selling their houses. "Walkable" communities are in demand. "There has been a rise of planned mixed-use walkable communities, appealing to both Millennials and retirees, who increasingly prefer to live in walkable communities with public transportation and cultural amenities," says John Boyd, founder of the Boyd Co., a corporate site selection firm in Princeton, N.J. Online and mobile have changed the role of brokers and agents. The actual process of finding a home has changed a lot, says Max Galka, founder ofMetrocosm.com, a statistical data firm geared toward urban communities. "Previously, it was common to find a home through a broker or agent, in classified ads and via yard signs," Galka says. "Today, the Internet is everyone's first stop. The role of brokers and agents has changed as a result. It was often necessary to go through an agent just to see what homes were available. Today, nearly every listing is posted online." Homes sell faster. Houses are moving faster because of that technology. "The 'first showing' for any home is now over the Internet," says James Simpson, chief executive atSQFT, an online real estate services site. "The second showing is in person. In years past, [having a] first showing in person wasting a lot of time for everyone." People are more willing to rent. Consumers have seen friends, family, and co-workers lose homes and property value and become slaves to their negative-equity homes, says Justin Udy, chief executive at Justin Udy & Team Real Estate in Midvale, Utah. "By experiencing a roller coaster of values and loss of property, they are more skeptical to take part in the American dream of owning their own home," he says. "Together with job instability and down payment requirements, consumers are opting to rent as opposed to own. Renting seems to be easy, less risk, and someone else can flip the bill on costly

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

5 Most Common Seller Mistakes

Mistake #1 – Overpricing Everyone wants to realize as much as possible when they list their home for sale. Here in the Lakes Region of New Hampshire, just like the rest of the country, the market is saturated with listings and there are very few buyers. Now, more than ever, if your house is not priced correctly people looking in your price range will see the deficiencies and instead opt to look at homes that are a better perceived value. If you price it too high thinking that you can negotiate downward, forget it! You may miss the many buyers who only search up to a certain price point. Inflating your price usually will lead to a much longer time on the market.  That could cost you money and inconvenience as well! Don’t become a stale listing because you overpriced your home. Overpricing can also occur when given bad advice from an agent who might not know the market very well or that is trying to “buy” your listing with a “pie-in-the-sky” number.  This leads us to: Mistake #2. Picking an agent based on sales price or commission rate Picking an agency and an agent in the Lakes Region to represent you can be confusing. A lot comes down to the agency’s reputation, their marketing program, how professional the agent is, or well…you just feel comfortable with the agent. Maybe you have used their services before. All good reasons.  But don’t base your choice on how much the agent tells you your property is worth or on the cheapest commission rate. Many times an inexperienced agent will tend to overprice a home. Unsure of how to do an accurate Comparative Market Analysis (CMA), he may pick bad or wrong comparables for the market analysis and the eager seller looks past the accuracy of what is represented. Most sellers want to believe that their property is worth more than it actually is.  You should have more than one CMA and compare what agents tell you. I have faith in my potential clients that when they are presented with “real data” they will come to the same conclusion as me. Sellers often wants to list their home with whoever will give them the cheapest commission rate. Note: Cheapest isn’t usually the best.  Why? 1. You usually get what you pay for. Believe it or not there are some heavy duty costs associated with running an agency and a lot of money is spent on advertising and marketing, equipment, office space, and support to get your property sold. If an agency is discounting commission rates they are undoubtedly cutting back on all the expenses it takes to sell your listing. 2. You usually get what you pay for. Full service counts for a lot in this business. Many times a seller will list with a discount broker from outside of our area (rather then utilize an agent in the Lakes Region). That agent (a.) doesn’t advertise in the lakes Region, (b.) doesn’t have buyers calling him looking for property in the Lakes Region because he’s not located here and (c.) doesn’t come to showingsbecause he lives too far away. Wouldn’t it make sense to pay that little extra and actually get the service you need to sell your house? 3. You usually get what you pay for. Professional, knowledgeable, successful agents in the Lakes Region—the agents that actually sell homes--- don’t sell themselves, or you, short. If an agent is willing to discount his commission just to get the listing, he’ll discount his service when it comes to the hard line negotiations and other services you are paying him to perform. A good agent will more than earn that little extra you pay to get him by making your life easier, making sure the transaction is completed smoothly, and negotiating you a better deal. 4. Yes…….You usually get what you pay for. Most sellers don’t realize that commissions are split four ways between the listing broker and agent and the selling broker and agent. The smaller the commission, the smaller the split. Sometimes it is to the point where some agents may bypass listings—or move them to the last on the list---if they feel it is not worth their effort. Mistake #3. Not heeding showing and agent feedback Lakes Region REALTORS® make a living by knowing the market. Part of that knowledge comes from listening to the feedback from other agents and buyers who see your property. It is ultimately the buying public that sets the price that your home will ultimately sell for. So if your REALTOR® tells you that the feedback he is getting is telling him that the price needs to be adjusted, certain repairs need to be done, or the property needs some sprucing up….LISTEN!...or you may be sitting on your property for many months to come!!  It may take a few showings to come to a true consensus, but take all feedback seriously or you may be waiting a long time for that one buyer who is willing to overlook all the concerns. REALTORS® see hundreds of homes per month, so having your property toured by the agents in the listing office is a good way to test the price you have on your property. Mistake #4.  Failure to make a good first impression. First impressions are the key whether you are meeting someone for the first time or opening the front door to a property you are looking at to buy. So clean up, de-clutter, finish up projects that have been stopped midway, and freshen up wherever you can. You have to look at your own property with a very critical eye---the buyer certainly will. An uncompleted project or something that needs repair may be discounted by the buyer much more than the real cost to repair. So remove as many negatives as possible! A fresh coat of paint, if necessary, is the cheapest and easiest way to make your home feel much more appealing. Your REALTOR® can make recommendations to help you stage your property to sell. Mistake #5. Thinking that classified ads and open houses sell homes. While newspaper ads and open houses can and should be a part of an overall marketing plan, it is relatively unlikely that the sale of the subject property will come from those sources. The purpose of a newspaper ad, first and foremost, is to get the buying public to call the broker’s office. It is very rare that a prospective buyer actually buys the home he calls on. It is the agent’s job to direct a prospect to a home that fits his criteria. It is far more likely that your home will be sold as a result of an agent exposing your home to a buyer that has called on an ad for another property. So don’t get anxious or upset if you don’t see your property advertised each and every week in the newspaper! Public open houses don’t work all that well in the Lakes Region!! Other areas of the country have great success and buyers flock to them…but not here. If it is the only thing you can do, if you are a For Sale by Owner, then by all means do it! And while REALTORS® do them and occasionally get someone that leads to a sale, most of the time they are held only to appease the Seller or as a last resort.  Broker open houses are utilized much more often in the Lakes Region of NH as they will expose your home to many more buyers through the agents that come to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Residential Housing after WWII

After world war two soldiers came home and mass prduced housing in suburbs became popular.  In the Kansas City Area this is reflected in many subdivisions within the I-435 loop in both Kansas and Missouri. This aerial file photo shows a portion of Levittown, New York, in 1948 shortly after the mass-produced suburb was completed on Long Island farmland in New York. This prototypical suburban community was the first of many mass-produced housing developments that went up for soldiers coming home from World War II. It also became a symbol of postwar suburbia in the U.S.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

11 Reasons Why I Never Want To Own A House Again

11 Reasons Why I Never Want To Own A House Again Kelly Phillips Erb ,FORBES STAFF Homeownership isn’t all it’s cracked up to be. Learn how to find the perfect rental and negotiate a lease that meets your needs. When my phone vibrated, I didn’t even have to look. I knew what it meant: the house had finally sold. I wasn’t sure how I was going to feel when it was finally over. I wondered if I would feel sad or anxious or regretful. What I actually felt was relief. It was a great house. It was where my children took their first steps, where they learned to ride bikes and scooters. It was the location for dinner parties and cocktail parties and birthday parties and our annual Halloween potluck. But it was time to go. We happened upon a great new house that was nearly perfect. And even better: it was a rental. I know what you’re thinking: didn’t you want to buy another house? It was a question we were asked over and over as we approached our closing. But I didn’t want to buy another house. After fifteen years, I was tired of being a homeowner. After a few months of renting, I was sold – on not buying again. There’s a lot of hype about why you need to own a house. But buying a house isn’t the key to financial security for everyone – and those alleged tax advantages? Also not quite what they’re painted to be. I hope to never own a house again. Here’s a list of eleven reasons – many of them tax-related – why:   As investments go, it’s not always a great deal. While it’s true that some homes do appreciate, so do many other assets. If you bought a house for, say, $200,000 thirty years ago, it would be worth $468,375.09 today. While that gain feels impressive, that appreciation is based solely on inflation – which means that, in theory, the same appreciation would have happened with any asset. While we did “make” money on the sale of our house, I suspect we would have had a similar increase had we invested that money in the market or in our business. The mortgage interest deduction doesn’t make up for the fact that you’re still paying a lot of interest. While I understand that it’s possible to buy a house without a mortgage, the large percentage of homeowners (more than 70%) take out a loan. With average mortgage rates at 4.3% (as of this morning), you’ll actually pay $356,307.44 for a $200,000 home: $156,307.44 in interest alone. Averaged over 30 years, that works out to a little over $5,000 per year (even though in practice you pay the most interest at the beginning). Assuming you’re in a 25% bracket – and you itemize – that works out to a tax savings of just over $1,300 per year. But the word “savings” is somewhat of a misnomer because you’re still out of pocket more than you get back in tax savings: in our example, you would “save” less than $40,000 while paying out more than $150,000 in interest. Homes often tempt people borrow more than they can afford. As Congress tosses around the idea of taking away the home mortgage interest deduction, homeowners are screaming that they won’t be able to afford their homes without it. In fact, when you’re looking to buy, most lenders and realtors will use the deduction as a selling point to boost prices. But is that a great strategy? When buying a new dress or a new car, consumers tend to focus on the cost of the item alone when determining how much to spend. But when it comes to mortgages, that number edges up because of the potential for tax savings (again, see #2). With that temptation, combined with a sluggish economy, it’s no wonder that more than 10 million homeowners are currently underwater on mortgages worth more than actual house values. We were fortunately not one of them but not for lack of the banks trying. When we bought our home, we were actually approved for a mortgage which was hundreds of thousands of dollars more than the home we ultimately bought. We opted for a less expensive home – and thankfully so. Owning a house subject to a mortgage drives up debt to income ratios. Assuming that you borrow to buy your home – again, a pretty reasonable assumption – that debt load can be a drag on your credit and ability to borrow for other things (like a new car). I’ve made no secret about the fact that I owe a significant amount in student loans. That already affects my perceived ability to pay when figuring my credit. A mortgage dramatically increases that ratio. Interestingly, our monthly rental payment is actually more than our monthly mortgage payment – but on paper, our rent is not a debt, it’s an expense. The two may be treated very differently, depending on the circumstances. A mortgage is typically 20 or 30 years while, at any given time, the current administration has only four (or possibly eight). I can’t stress this enough. The home mortgage interest deduction has been around for what seems like forever. Does that mean it that you can count on it to be around in 10, 20 or 30 years? Don’t be so sure. The deduction has become increasingly vulnerable: it has been a talking point in practically every administration from Bush to Obama, despite Reagan’s famous promise to the National Association of Realtors in a 1984 speech that he would “preserve the part of the American dream which the home mortgage interest deduction symbolizes.” Just this year, Eric J. Toder, the co-director of the Urban-Brookings Tax Policy Center, advised Congress that “[a]chieving a revenue-neutral tax reform that reduces marginal tax rates significantly would be difficult or impossible to achieve without cutting back the mortgage interest deduction or some other equally popular and widely used provisions.” A mortgage is typically 20 or 30 years. So yeah, I said that already. But I have another point: home ownership can limit your mobility. We were fortunate that we were able to write checks for our rent and our mortgage. While we could afford to make both payments, chances are that we would not have been able to obtain a mortgage for a second house while continuing to carry the first. Often, in order to move, you have to sell – or rent – your first home. I’ve been a landlord before and I’m not inclined to do it again. And selling our house in this economy was no small feat. That’s part of the reason that we stayed so long in one place: it was hard to move. In addition to our own missed opportunities, that may not be good for the country’s economy: economists Andrew Oswald and David Blanchflower found that rates of high homeownership lead to higher rates of unemployment in both the U.S. and Europe because, among other issues, owning a home may keep people from moving to areas with good jobs and creates “negative externalities.” Houses take a lot of your money. There’s a reason that many folks refer to their homes as money pits: you often put a lot of money that you’ll never see again into a home. Not all improvements are deductible. Deductible expenses are generally limited to casualty loss deductions. In most cases, significant repairs to your home merely increase your basis for purposes of calculating a gain at sale. As most taxpayers aren’t likely to experience the kind of gain that would subject them to capital gains, basis isn’t always an issue which means that those expenditures get lost. Thousands of dollars to replace the air conditioning unit? The new garbage disposal? Replacing the flooring in the kitchen? The new washer/dryer? Landscaping additions? You can’t write them off and while you may recover some dollars at sale, rarely do you recover the entire amount. If you add all of those expenditures up over a 30 year period, you might see an explanation for some of that “gain” at sale. Often homeowners get fixated on two numbers: the purchase price of the house and the selling price of the house – but don’t forget to account for all of the money you spent in between. If you do hit the home appreciation jackpot, there can be significant taxes. Not all houses bleed money. Not all appreciation can be attributed to inflation and/or a combination of home improvements – sometimes, it turns out to be a good investment. But there is a price: if the gain on the sale of your home exceeds the $250,000 exclusion (or $500,000 for married taxpayers), the proceeds over that exclusion are subject to capital gains. Additionally, under the new health care law, a Medicare tax of 3.8% will be imposed on investment/unearned income, which includes gain from the sale of your home, for high income taxpayers. High income taxpayers means those individual taxpayers reporting income over $200,000 and married taxpayers filing jointly reporting income over $250,000. I like for things to be predictable and real estate taxes can vary. While mortgage payments can remain fairly flat, assuming you have a fixed mortgage rate, you more or less know what you’re paying each year. You don’t always have the same result with real estate taxes. Your tax bill can change based on property assessments and reassessments (just ask Philadelphia) or a change in tax rates – especially in today’s climate as townships and counties search for revenue. Unlike most commercial leases, residential leases don’t tend to be “triple net” meaning that the expenses are not directly passed through but tend to be figured as part of the total rental payments. Real estate taxes are generally accounted for in the cost of the rental; when they are not, they may be limited by statute or otherwise capped. You can’t deduct a loss on the sale of your home. If I lose money on stocks, I can net those losses against other gains. If I lose money in my business, I can deduct those losses or use them to offset other gains (even in other years). But it doesn’t work that way when it comes to housing. You can never claim a capital loss on the sale of a personal residence – no matter how much it hurts. In this market, many taxpayers are finding this to be the case. That makes putting all of your investment eggs in the housing basket a risky proposition. It’s getting more difficult to claim the itemized deduction. Home mortgage interest is only deductible if you itemize on your Schedule A, meaning that only about 1/3 of taxpayers even have the option of taking the deduction. You itemize if your deductions exceed the standard deduction: for 2013, the applicable standard deduction rates are $12,200 for married taxpayers filing jointly; $8,950 for head of household; $6,100 for individual taxpayers and $6,100 for married taxpayers filing separate. Those numbers are getting harder to get to for many taxpayers, including me. Mathematically, the longer you own your house, the less you owe in interest and the smaller the deduction. Add that to the bump in the threshold for the medical expense deduction (which means that I’m not going to be able to claim those expenses in 2013), restrictions due to the Pease limitations and the bar for miscellaneous deductions, and taxpayers are increasingly finding that the deduction is actually quite elusive. I’m not saying that owning a home is a bad thing. I liked being a homeowner. I just happen to like renting more. I liked that when our oven died, it was replaced – at no additional cost to me – that same day. And I liked that as I wandered through Home Depot, I happily gazed at cabinet pulls and meandered through the garden center rather than making a beeline for caulk, wood putty or other maintenance items. Maintenance is no longer my problem. I’m also not advising folks to eschew real estate: it can be a good investment for some taxpayers. In addition to owner occupied properties, rentals can be a good financial move. While I have no desire to be a landlord again, it has been a good bet for many taxpayers. My father-in-law has rented properties for years. He realized, like many other taxpayers, that rental real estate is not only a good income stream but a forced retirement plan. But he, like other savvy real estate owners, also understands the rules and the economics, and makes decisions accordingly. What I am saying is that we shouldn’t buy into the idea that owning a home is for everyone. And it’s not just me: at the end of August, the U.S. Census Bureau reported that the home ownership rate was 65.5%, the lowest rate in the past 50 years (downloads as a pdf); adding borrowers in risk of default, the number is closer to 62%. In contrast, ownership in 2010 was nearly 69%: for purposes of context, a one-percent change in the ownership represents well over a million homeowners. That dip doesn’t spell disaster for our country. It would be a mistake to assume that countries with high incidents of home ownership are synonymous with a strong economy: Russia, Italy, Greece and Spain – countries with struggling economies – have significantly higher home ownership rates than the U.S. Conversely, some countries with traditionally strong economies like Germany, Switzerland and Japan, have lower home ownership rates than in the U.S. There are so many considerations when deciding whether to buy a home. It’s not the ‘ideal’ scenario for all families. Don’t be fooled by promises of tax savings and tax-free appreciation: that’s not always the case. A home is a huge investment so be sure to research what it might mean for you before taking the leap – and don’t be afraid to say no. I did. And tonight, as I sit on my rented porch, staring out at my rented view while my kids happily play inside a house that they’ve already made their home, I don’t regret my decision one

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

The Internet Economy

Since the day the first domain was registered in 1985, the Internet has not stopped growing. It has sailed through multiple recessions and one near-collapse and kept on increasing in use, size, reach, and impact. It has ingrained itself in daily life to the extent that most of us no longer think of it as anything new or special. The Internet has become, quite simply, indispensible. By 2016, there will be 3 billion Internet users globally—almost half the world’s population. The Internet economy will reach $4.2 trillion in the G-20 economies. If it were a national economy, the Internet economy would rank in the world’s top five, behind only the U.S., China, Japan, and India, and ahead of Germany. Across the G-20, it already amounted to 4.1 percent of GDP, or $2.3 trillion, in 2010—surpassing the economies of Italy and Brazil. The Internet is contributing up to 8 percent of GDP in some economies, powering growth, and creating jobs. The scale and pace of change is still accelerating, and the nature of the Internet—who uses it, how, and for what—is changing rapidly too. Developing G-20 countries already have 800 million Internet users, more than all the developed G-20 countries combined. Social networks reach about 80 percent of users in developed and developing economies alike. Mobile devices—smartphones and tablets—will account for four out of five broadband connections by 2016. The speed of these developments is often overlooked. Technology has long been characterized by exponential growth—in processing speed, bandwidth, and data storage, among other things—going back to Gordon Moore’s observation nearly five decades ago. The Intel 80386 microprocessor, introduced in the same year as that first domain name, held 275,000 transistors. Today, Intel’s Core i7 Sandy Bridge-E processor holds 2.27 billion transistors, or nearly 213 times as many. As the growth motors along, it is easy to lose track of just how large the exponential numbers get. The power of exponential growth is illustrated by an ancient fable, repopularized by Ray Kurzweil in his book, The Age of Spiritual Machines. It tells of a rich ruler who agrees to reward an enterprising subject starting with one grain of rice on the first square of a chessboard, then doubling the number of grains on each of the succeeding 63 squares. The ruler thinks he’s getting off easy, and by the thirty-second square, he owes a mound weighing 100,000 kilograms, a large but manageable amount. It’s in the second half of the chessboard that the real fun starts. Quickly, 100,000 becomes 400,000, then 1.6 million, and keeps growing. By the sixty-fourth square, the ruler owes his subject 461 billion metric tons, more than 4 billion times as much as on the first half of the chessboard, and about 1,000 times global rice production in 2010. The Internet has moved into the second half of the chessboard. (See Exhibit 1.) It has reached a scale and level of impact that no business, industry, or government can ignore. And like any technological phenomenon with its scale and speed, it presents myriad opportunities, which consumers have been quick and enthusiastic to grasp. Businesses, particularly small and medium enterprises (SMEs)—the growth engine of most economies—have been uneven in their uptake, but they are moving online in increasing numbers and with an increasingly intense commitment. There are threats too, some misunderstood, and policymakers and regulators alike are challenged to make the right choices in a fast-moving environment. As is often the case with fast-paced change and complex issues, many governments are still trying to determine what their role should be. Meanwhile the rice pile on the next square keeps getting bigger. This report assesses the far-reaching economic impact of the Internet. It shows how the benefits are large and getting larger, identifies the drivers behind them, and examines their clout. It quantifies gains—economic growth, consumer value, and jobs—in the context of the economies of the G-20. It demonstrates that no one—individual, business, or government—can afford to ignore the ability of the Internet to deliver more value and wealth to more consumers and citizens more broadly than any economic development since the Industrial

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Mechanic’s liens Must be done right to be Effective

By Adam R. Burrus Mechanic’s liens provide vendors and laborers with an important way of protecting themselves from the danger of not being paid. However, if the liens are not created correctly that protection can be lost. Kansas law allows an entity providing improvements on real property a mechanic’s lien for the amount of the labor, equipment, materials, or supplies furnished, plus transportation costs. Under K.S.A. § 60-1101, the lien claimant must have had a contract with the owner of the real property or the owner’s representative. The statute further provides that a mechanic’s lien will have priority over all other liens which arise after the mechanic’s lien is created. However, Kansas case law is abundantly clear that in order to hold a valid mechanic’s lien, lien claimants have the burden of bringing themselves into compliance within the provisions of the law. To comply with the mechanic’s lien statutes, a claimant must file and record a valid lien statement. A valid lien statement must include four items: 1) the name of the owner of the real property; 2) the name and address of the lien claimant; 3) a description of the real property upon which the mechanic’s lien is claimed; and 4) a reasonably itemized statement which includes the amount of the claim. K.S.A. § 60-1102(a). While the first three requirements are fairly straightforward, what qualifies as a “reasonably itemized statement” is more subjective, and has given rise to litigation. In Kopp’s Rug Co, Inc. v. Talbot, 5 Kan. App. 2d 565, 571 (1980), the court examined the meaning of the word “reasonably” in the lien statute and concluded: “Reasonable would seem to require a well-balanced statement, one that is not extreme, i.e., one that is neither excessive nor insufficient in detail; a statement that is fair and sufficient to inform the landowner of the claim and to enable the landowner to ascertain whether the work was completed and whether the charge therefor is fair.” The issue arose again in Scott v. Strickland, 10 Kan. App. 2d 14 (1984), a case in which the lien claimant attached photocopied invoices to its lien statement. The landowners in Scott argued that the poor quality of the photocopied invoices prevented them from ascertaining whether the materials were actually provided by the lien claimant and whether the amounts charged were fair. The court admitted that the specific description and charges for items were of poor quality; however, the statement was found to be sufficient because the materials used for the project could be determined and the total of each invoice could be read. While attaching invoices may satisfy the “reasonably itemized” requirement, merely attaching the contract with the landowner is likely insufficient, particularly if the contract does not indicate how the lien claimant calculated the amount due. In Huber Co. v. DeSouza, 32 Kan. App. 2d 614, 616 (1986), the court held that this deficiency was not cured simply because the lien claimant had provided the landowner with itemized billings outside of the lien statement, because “[t]he lien statement’s validity must be ascertained from its four corners.” In other words, an invalid lien statement cannot be saved by reliance upon extraneous supporting documents. The requirement of a reasonably itemized statement typically benefits the landowner; however, other stakeholders may also have the right to challenge the sufficiency of the statement. A recent decision issued by the United States Bankruptcy Court for the District of Kansas held that competing lienholders have standing to challenge the sufficiency of an itemized statement. InRIM Development, LLC v. KS Dept. of Transportaton, Case No. 10-10132 (Bankr. D. Kan. Mar. 31, 2011), the mechanic’s lien claimant argued that two other creditors holding mortgages on the subject real property could not challenge the sufficiency of the claimant’s itemized statement when the landowner itself had admitted the statement was sufficient. Further, the claimant argued it was irrelevant that the statement did not inform the mortgagees of the labor and materials provided on the real property, because the statement needed to only inform the landowner. In rejecting these arguments, Judge Robert E. Nugent noted that “Competing lienholders have a monetary interest in determining the validity and enforceability of liens claimed to be senior in priority to theirs and, accordingly, have standing to challenge the sufficiency of a lien statement.” The receipt of payment can hinge on the adequacy of lien statements. In light of the fact that these statements are open to challenge from a variety of interested parties, it is even more important that they be done correctly. Legal counsel should be consulted as to any questions or uncertainty that may arise in the preparation of these

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

HOW THE SHARING ECONOMY IS CHANGING THE MARKETPLACE

IN ABOUT 40 minutes, Cindy Manit will let a complete stranger into her car. An app on her windshield-mounted iPhone will summon her to a corner in San Francisco’s South of Market neighborhood, where a russet-haired woman in an orange raincoat and coffee-colored boots will slip into the front seat of her immaculate 2006 Mazda3 hatchback and ask for a ride to the airport. Manit has picked up hundreds of random people like this. Once she took a fare all the way across the Golden Gate Bridge to Sausalito. Another time she drove a clown to a Cirque du Soleil after-party. “People might think I’m a little too trusting,” Manit says as she drives toward Potrero Hill, “but I don’t think so.” Manit, a freelance yoga instructor and personal trainer, signed up in August 2012 as a driver for Lyft, the then-nascent ride-sharing company that lets anyone turn their car into an ad hoc taxi. Today the company has thousands of drivers, has raised $333 million in venture funding, and is considered one of the leading participants in the so-called sharing economy, in which businesses provide marketplaces for individuals to rent out their stuff or labor. Over the past few years, the sharing economy has matured from a fringe movement into a legitimate economic force, with companies like Airbnb and Uber the constant subject of IPO rumors. (One of these startups may well have filed an S-1 by the time you read this.) No less an authority than New York Times columnist Thomas Friedman has declared this the age of the sharing economy, which is “producing both new entrepreneurs and a new concept of ownership The sharing economy has come on so quickly and powerfully that regulators and economists are still grappling to understand its impact. But one consequence is already clear: Many of these companies have us engaging in behaviors that would have seemed unthinkably foolhardy as recently as five years ago. We are hopping into strangers’ cars (Lyft, Sidecar, Uber), welcoming them into our spare rooms (Airbnb), dropping our dogs off at their houses (DogVacay, Rover), and eating food in their dining rooms (Feastly). We are letting them rent our cars (RelayRides, Getaround), our boats (Boatbound), our houses (HomeAway), and our power tools (Zilok). We are entrusting complete strangers with our most valuable possessions, our personal experiences—and our very lives. In the process, we are entering a new era of Internet-enabled intimacy. This is not just an economic breakthrough. It is a cultural one, enabled by a sophisticated series of mechanisms, algorithms, and finely calibrated systems of rewards and punishments. It’s a radical next step for the ­person-to-person marketplace pioneered by eBay: a set of digi­tal tools that enable and encourage us to trust our fellow human beings. Manit is 30 years old but has the delicate frame of an adolescent. She wears a thin kelly-green hoodie and distressed blue jeans, and her cropped dark hair pokes out from under her purple stocking cap. Yet despite her seemingly vulnerable appearance, she says she has never felt threatened or uneasy while driving for Lyft. “It’s not just some person off the street,” she says, tooling under the 101 off-ramp and ticking off the ways in which driving for Lyft is different from picking up a random hitchhiker. Lyft riders must link their account to their Facebook profile; their photo pops up on Manit’s iPhone when they request a ride. Every rider has been rated by their previous Lyft drivers, so Manit can spot bad apples and avoid them. And they have to register with a credit card, so the ride is guaranteed to be paid for before they even get into her car. “I’ve never done anything like this, where I pick up random people,” Manit says, “but I’ve gotten used to it.” Then again, Manit has what academics call a low trust threshold. That is, she is predisposed to engage in behavior that other people might consider risky. “I don’t want to live my life always guarding myself. I put it out there,” she says. “But when I told my friends and family about it—even my partner at the time—they were like, uh, are you sure? This seems kind of creepy.” That skepticism reflects a widely held, deeply ingrained attitude ­reinforced by decades of warnings about poisoned Halloween candy and drink-­spiking pickup artists. No wonder some of the loftier ­sharing-­economy executives see their mission as not just building a business but fundamentally rewiring our relationships with one another. Much as the traditional Internet helped strangers meet and communicate online, they say, the modern Internet can link individuals and communities in the physical world. “The extent to which ­people are connected to each other is lower than what humans need,” NYU professor Arun Sundararajan says. “Part of the appeal of the sharing economy is helping to bridge that gap.” Lyft cofounder John Zimmer goes so far as to liken it to time he spent on the Oglala Sioux reservation in Pine Ridge, South Dakota. “Their sense of community, of connection to each other and to their land, made me feel more happy and alive than I’ve ever felt before,” he says. “I think people are craving real human interaction—it’s like an instinct. We now have the opportunity to use technology to help us get there.” But we’re not there quite yet. Data from the 2012 General Social Survey, the National Opinion Research Center’s poll of American attitudes, found that only 32 percent of respondents agreed that people could generally be trusted, down from 46 percent in 1972. More recently, an October 2013 AP-GfK poll of more than 1,200 Americans found that just 41 percent of respondents express “a great deal” or “quite a bit” of trust in the people they hire to work in their home, only 30 percent trust the cashiers who swipe their credit or debit card, and a mere 19 percent trust “people you meet when you are traveling away from home.” She pauses, mulling it over for a few more seconds.Even Manit isn’t willing to fling open her doors to every sharing service that comes along. For instance, she isn’t all that comfortable with the idea of letting strangers rent her car, as she could through companies like RelayRides or Get­around. “Someone I don’t know taking my car—that’s different,” she says. “I have to be there with them.” “What I’d wonder is, what are they doing with my car?” She lets out a little laugh. “Like, what are they doing with my car?” On an unseasonably balmy mid-drought morning in January, I walk about 20 blocks from my home on the south side of San Francisco and knock on the door of a guy named Paolo, who promptly hands over the keys to his 2013 Subaru Impreza. Paolo drives his car only on weekends, so he’s free to rent it out through RelayRides the rest of the week. Paolo says he’s never had a second thought about letting a stranger drive off with his vehicle, perhaps because he is “unreasonably trusting,” as he describes himself. (Though not, apparently, trusting enough to let me publish his real name, which is not Paolo.) I mostly avoid texting while driving Paolo’s car to Santa Clara, where I meet with Rob Chesnut. A former federal pros­ecutor, Chesnut created the trust and safety department at eBay. Just as PayPal incubated a mafia of ambitious technologists and business leaders, a related eBay mafia has spread its tendrils throughout the sharing economy, with members at Airbnb, RelayRides, Task­Rabbit, and oDesk. Chesnut himself is a senior vice president at Chegg, an online platform for college students, but he serves as an adviser to sharing companies like Elance and Poshmark. Chesnut first came to eBay as a customer in 1997, in search of a Polaroid SX-70. This was early in eBay’s development, when its trust and safety policies could be summed up by founder Pierre Omidyar’s animating premise: “People are basically good.” Chesnut did not find this particularly reassuring. “As a federal prosecutor, I’m not an altogether trusting type,” he says. “I’m used to dealing with the worst of society all the time. Now I’m going to send a cashier’s check to a total stranger?” Of course, we engage in commerce with total strangers every day. We hand our credit cards to shop clerks, get into the backseat of taxis driven by cabbies we’ve never met, ingest food prepared in closed kitchens, and ignore the fact that hotel workers with master keys could sneak into our rooms while we sleep. But each of those transactions is undergirded and supported by a complicated series of regulations, backstops, and assurances that go back to the Industrial Revolution. Before that time, Americans tended to cluster in small towns and farming communities, where citizens built tight-knit relationships over the course of many years. In an economic system like that, where everybody knows everybody else, there’s a natural incentive to treat people well: Get a bad reputation and the whole town will know about it. On a broader level, the members of these small, homogeneous communities knew that their neighbors probably saw the world in the same way they did, holding the same morals and belief systems, which made it easier to conduct business with them. That all started to change around the mid–19th century. As Ameri­cans moved from small towns to big cities, small merchants were replaced by large corporations, and local markets gave way to national distributors. Suddenly people couldn’t rely on interpersonal relationships or cultural norms to safeguard their transactions; they didn’t know, and often never even met, the ­people they were doing business with. The result, UCLA sociologist Lynne Zucker has argued, was the destruction of the trust that had sustained the US economy up until that point. In the ensuing years, formal systems sprang up as proxies for the trust that citizens had lost in one another. The decades between 1870 and 1920 saw the explosion of the “social overhead capital sector”—industries like banking, insurance, and legal services that established rules and backstops for the new business environment. Meanwhile, a slate of government regulations helped establish the rules that this new breed of corporations had to follow. “Through institutionalizing socially created mechanisms for producing trust,” Zucker writes, “the economic order was gradu­ally reconstructed.” The casual, intimate, interpersonal form of trust was replaced by a centralized system of codified safeguards. But the problem with institutionalized trust is that it can be, in tech industry parlance, a high-friction affair. eBay couldn’t require everyone with a few extra Beanie Babies to go through the regulatory rigmarole of establishing themselves as a licensed shopkeeper. So over several years, Chesnut’s team built its own trust infrastructure. It began monitoring the activity across the eBay marketplace, flagging potentially problematic sellers or buyers, providing its own payment options, and eventually guaranteeing every purchase. In so doing, eBay evolved from a passive host to an active participant in every transaction. Like the explosion of institutional banking and insurance in the early 20th century, this new system acted as a trust proxy; it didn’t require people to trust one another, because they could rely on a centralized system to protect their interests. That process has been recapitulated at companies like Airbnb. Initially, cofounders Brian Chesky, Joe Gebbia, and Nate Blecharczyk imagined the service as a kind of event-­specific craigslist, pairing renters with hosts and then leaving them to their own devices. But over the years, the company broadened its scope and took on a larger and larger role—handling all of the payments, hosting reviews, hiring professional photographers to shoot properties, and providing a platform for hosts and guests to communicate with one another. The biggest ramp-up came after the infamous “ransackgate” incident of June 2011, in which a host named EJ found her San Francisco apartment trashed by guests who stole her jewelry, hard drive, passport, and credit cards. In response, Airbnb instituted many new security provisions, set up a 24/7 customer-service hotline, established a $50,000 host guarantee—later increased to $1 million—and built a new trust and safety division. Anna Steel, a former government investigator who now serves as one of Airbnb’s lead trust and safety ­managers, was hired nearly a year after the crisis. Today she heads a team of 15 case managers, part of an 80-person group with offices in Singapore, Dublin, and San Francisco. To get a sense of her work, I drop in on a planning meeting in advance of SXSW, the Austin music and technology festival that has become one of the company’s most high-­volume events. Airbnb’s conference rooms are famous for their elaborate decor—each a re-­creation of an actual Airbnb property—but this meeting is held in a drab, unadorned space. One by one, the members of a four-woman task force discuss their progress. Emily Gonzales has been reaching out to guests that the company’s system has flagged as posing the greatest property-damage risk—large groups or first-time renters who have booked rooms in swanky homes—to remind them to take care of their hosts’ property. Jaspreet Bansal, who left her job as a criminal prosecutor in Newark in December, has been working with agents to scan the site for potentially illegitimate listings. Meanwhile, Brittany Galvan is planning to head out to Austin to handle any problems that arise. They are aided in these efforts by the huge pile of data the company has amassed. Every element of a booking—the reservation, payment, communication between host and guest, and review—takes place through Airbnb’s platform so the company can track each stay from conception to completion. If a host uses the words Western Union in a conversation with a guest—a sign that they may be trying to route around Air­bnb’s system—the company will block the message. If a host and guest are repeatedly booking rooms with one another, it could be a scam to build up fake positive reviews. And if a new host pops up and instantly starts booking expensive reservations with a new user, that could signal something like a money-­laundering racket. Airbnb’s analytics system takes factors like these into account, then assigns each reservation a “trust score.” If the score is too low, it’s automatically flagged for further investigation. (The system isn’t foolproof. In March a comedian discovered that his house had been used for a massive sex party. But Airbnb says it is largely successful; of 6 million guests in 2013, the company paid out only 700 host claims.) In a lot of ways, this process is simi­lar to the trust infrastructure that eBay developed—a machine that assumes risk on behalf of its customers and frees them from the responsibility of assessing each other’s trustworthiness. But here’s the thing: eBay is a pretty binary experience. You either get what you ordered or you don’t. For a system like that, this kind of centralized trust infrastructure is sufficient. It helps weed out fraudsters and incompetents. Similarly, licensing departments and health inspectors help to guarantee a baseline level of safety and security. You can check into a licensed hotel knowing you are in fact entering a hotel and not an organ-­harvesting lab that looks like a hotel. But they can’t guarantee you’ll have a good experience—that the bellhop won’t be a jerk or room service won’t bring you a lukewarm omelet. That’s up to the hotel company, which manages its staff to provide a standard of service. But sharing-economy companies don’t have on-site managers and staffs. They’re a ragtag collection of loosely organized individuals. Their centralized trust infrastructures may catch obvious bad actors—purveyors of fake listings, money launderers, thieves—but they won’t stop more run-of-the-mill offenders like the driver who’s got a bit of a lead foot or the houseguest who carelessly drips candle wax all over your speaker. That requires more subtle forms of social engineering. RelayRides CEO Andre Haddad compares it to parenthood. “I have three kids,” he says. “You can’t control them, but you want to nudge them to do the right thing.” And like parents, many companies are making up the rules as they go—and sometimes learning new tricks by accident. When Haddad joined RelayRides in September 2011, the company was pursuing a ­Zipcar-like model. Customers rented cars by the hour and never met the owners. They accessed and started their rentals by swiping a membership card past a reader that the company had installed in every owner’s car. But by spring 2012, RelayRides needed to make some changes. For one thing, it was clear that Avis and Hertz had a more appealing model than Zipcar; the market for traditional car rentals is nearly 60 times larger than the hourly car-sharing rental market. And the company wanted to grow around the globe, making it impractical and expensive to set up a complicated hardware installation for every new member. So, as of March 2012, RelayRides ditched the card reader. Instead, renters and owners began meeting in person to hand off keys and look over the ­vehicle. The results, Haddad says, were striking. RelayRides was just looking for a more convenient, cost-effective way to expand its business. But it turned out that the face-to-face meeting caused renters to take better care of the cars—and it made the experience better for both parties. Owners made significantly fewer damage claims under the new approach, and both renters and owners reported much higher satisfaction rates after meeting in person. “They really liked that human connection,” Haddad says. “People strike up a conversation and realize they have something in common, which boosts trust and makes people feel accountable. They’re going to have to return this car to that person and look them in the eye.” Ultimately, this is what separates companies like RelayRides from the eBay-like person-to-person marketplaces that came before. When you buy a camera on eBay, you only know your seller as NikonIcon1972. In the sharing economy, we aren’t anonymous. We may not meet our trading partners face-to-face, as in the RelayRides example. But because our transactions are often linked through our Facebook accounts—some version of our real identities—we are dealing, even virtually, with real people. It’s a digital re-­creation of the neighborly interactions that defined pre-­industrial society. Except that now our neighbor is anyone with a Facebook account. Most of these marketplaces try to maximize that feeling of interpersonal connection. That’s why Lyft—slogan: “Your friend with a car”—encourages riders to sit in the front seat like a friend rather than in the backseat like a fare. It’s why Airbnb hosts are asked to include large photos of themselves on their profiles, and why the company urges hosts and guests to communicate with each other before every stay. It’s why the Feastly website includes personal biographies of every chef and encourages pre-dinner-party communication. “There are psychological studies up the wazoo about how we mistrust people when we don’t know them,” says Charles Green, a trust expert who advises companies like Shell and Accenture. “But we don’t mess with people we know. ” Introducing people to one another may encourage them to behave better—it may reduce insurance payouts and help a company’s bottom line. But it also makes for a radically different experience than we’ve come to expect from our service economy. In my conversations with Lyft riders and drivers, practically everyone said some version of the following: “I like dealing with real ­people.” Of course, the licensed cabbie is a real person. So is the bellhop, the line cook, the kennel owner. But when we interact with them, they are operating as agents of a commercial enterprise. In the sharing economy, the commerce feels almost secondary, an afterthought to the human connection that undergirds the entire experience. (This is due in part to the fact that the payment itself so often happens electronically and invisibly.) In this way, it suggests a return to pre-industrial society, when our relationships and identities—social capital, to use the lingo—mattered just as much as the financial capital we had to spend. That’s the carrot side of a more intimate economy, the idea that treating people well will result in a better experience. There is a stick side as well: Act badly and you’ll be barred from participat­ing. Nick Grossman, a general manager at Union Square Ventures and a visiting scholar at the MIT Media Lab, says that while Uber drivers are generally positive about the service, he has spoken with some who worry about picking up a ­couple of bad reviews, falling below the acceptable rating threshold, and getting fired. (The same holds for passengers: Manit, the Lyft driver, says she won’t pick up anyone with less than a 4.3-star rating.) “There’s a legitimate question: How do we feel about living in an environment of hyper-accountability?” Grossman asks. “It’s very effective at producing certain outcomes. It’s also very Darwinian.” Just like resi­dents of pre-industrial America, sharing-economy participants know that every transaction contributes to a reputation that will follow them, potentially for the rest of their lives. Indeed, for the time being the boundaries of the sharing economy are protected fairly rigidly. If you’ve ever been caught driving more than 20 miles over the speed limit, you can’t rent a car on RelayRides. Aspiring Lyft drivers must pass a background and DMV check and get approved by a mentor, who judges applicants not just on driving ability but on personality. DogVacay hosts go through a five-step vetting process that includes training videos, quizzes, and a telephone interview. More broadly, new sharing economy companies are most likely to draw from a set of like-minded, forward-thinking early adopters. That dynamic undoubtedly has helped hosts and drivers trust their customers; studies show that we are more liable to trust ­people who seem to share our values and personal traits. (“I don’t know if I’d do this in Philly,” a San Francisco Lyft driver named Joel confesses. “But here everybody’s so nice.”) It could also explain a troubling study from two Harvard Business School professors showing that Airbnb guests pay black hosts less than their white counterparts. (The authors’ suggested solution: de-­emphasize hosts’ profile photos, which flies in the face of the company’s trust-building efforts.) But in the end, these new mechanisms for creating and safeguarding interpersonal trust may have the power to make us comfortable with people and experiences we never would have otherwise considered. Kari Sweetland, a 30-year-old HR coordinator, recently signed up for Tinder, the wildly popular hook-up app. Tinder isn’t normally considered part of the sharing economy, but it does operate by some of the same logic. Users meet potential paramours, not by answering lengthy questionnaires but by simply linking to their Facebook accounts and swiping through a series of photos. Tinder’s algorithm displays people nearby, noting who shares interests or social connections and, if both parties approve one another, lets them send messages through the app until they feel comfortable enough to meet in person. When Sweetland first signed up for Tinder, she says, she had a moment of hesitation, the vague sense that what she was about to do was a little crazy, meeting strangers based on nothing more than the swipe of a touchscreen. But then she remembered that she did something similar every time she stepped into a Lyft car or stayed at an Airbnb—which she and her friends do all the time. Suddenly, meeting a stranger didn’t seem like such a scary risk after all. It was just a regular way for her to interact with her fellow San Franciscans. “I’ve accepted that in my life, and everyone here has too,” she says. This isn’t oddball behavior, the actions of someone flaunting social norms. It’s just what people do. ­ THE EVOLUTION OF TRUST Four score and 50,000 years ago, the first chump was scammed. Since then, we’ve developed norms, structures, and safeguards to protect us while trading, even with strangers. —Julia Greenberg 50,000 BC Friend-to-Friend Buyers and sellers mainly barter and trust only friends. Trading is based on reciprocity and reputation; cheaters are shunned. 8000 BC Neighbor-to-Neighbor Small villages form; ­people begin trading with neighbors. It’s easier to trust someone when you know where they live. 1200 BC Currency Portable currency develops—first as shells, then as coins—and becomes a shared medium of exchange, replacing barter. AD 650 Paper Money Cash with no inherent value is popularized for the first time. ­People trust that bits of paper can be exchanged for real goods. AD 1000 Stranger-to-Stranger Buyers and sellers begin to trade with strangers through trusted intermediaries who bring goods to market. 1800s Person-to-­company As corporations replace local stores and markets, trust comes from regulations, insurers, banks, and law firms. 1950s Person-to-world ­People buy goods from multi­national corpora­tions. Watchdog groups, along with global regulations and banks, secure these interactions. 1990s Networked Products are purchased through websites built by companies that provide a centralized marketplace and trust infrastructure. Present Intimate ­New mechanisms emerge to secure in-­person transactions that are brokered through digital

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Pay attention to this before making a decision on choosing a listing agent

The agent suggests the highest price for your house. If you’re selling your house, get listing presentations from at least three agents, who will tell you what comparable homes have sold for and how long they take to sell. The agents are all looking at the same data, so the suggested listing price should be close. Pricing a home too high at the start often means it takes longer to sell and ultimately sells for less. “If you’re too high for the market, buyers will not even look at it because they know you’re not realistic,” says Lee, the author of eight books and a frequent speaker at real estate conferences. “The longer your property sits on the market, the more people are going to think there’s something wrong with it.” The agent does real estate on the side, part time. Whether you’re a buyer or seller, you want to choose an agent who is actively following the market every day. If you’re buying, you want an agent who can jump on new listings and show them to you immediately. If you’re the seller, you want an agent who is always available to show your home to prospective buyers. The agent is a relative. Unless your relative is a crackerjack full-time agent who specializes in your neighborhood, he or she is unlikely to do as good of a job as another agent. That can breed resentment, as well as derail your transaction. The agent doesn’t know the real estate landscape in your neighborhood. Finding a neighborhood expert is especially important in areas where moving a block can raise or lower the value of a home by $100,000. An agent who specializes in a neighborhood may also be in touch with buyers who are looking for a home just like yours or sellers who haven’t put their home on the market yet. “It’s really a very local business,” Lee says. The agent charges a lower commission. In most areas, commissions are traditionally 5 to 7 percent, split between the buying and selling agent. If the commission on your house is lower, fewer agents will show it. This doesn’t mean you can’t negotiate a slightly lower commission if one agent ends up both listing and selling the house. Some newer companies rebate part of the commission to the buyer or seller, but don’t use that as the sole reason to choose an agent. That’s only a bargain if the agent is otherwise a good fit.The agent’s face shows up with online listings. The agents’ faces are there because they paid to be there. They may or may not be the best choice for you. Don’t accept the online portal’s assertion that the agent is a neighborhood expert. Interview him or her yourself and find out. The agent doesn’t usually deal with your type of property. If you’re buying or selling a condominium, don’t pick an agent who rarely sells condos. If you’re looking for investment property, find an agent who traditionally works with investors. Many agents have multiple specialties, but you want to make sure the agent is well-versed in the type of transaction you’re doing. The agent doesn’t usually work with buyers in your price range. Some agents specialize in homes of all types in a specific area. But if you’re a first-time buyer looking for a $200,000 entry-level home, you are unlikely to get much attention from an agent who mostly handles $10 million luxury listings. The agent is a poor negotiator or fails to keep up with details of the transaction. In many cases, the most important work of an agent is not to find the home but to make sure the sale closes. That includes making sure the buyer is preapproved for a mortgage, the home is free of liens before it goes on the market, the appraisal is accurate and issues raised by the home inspection are

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Listing a property for sale?

7 Negotiating Points In Broker Listing Agreements Most sales of commercial real estate begin when the seller retains a broker. The seller’s choice of the broker can depend upon a number of factors, such as past relationship, the broker’s background and capabilities with respect to the particular property, and the amount of the commission. The next step after selection of the broker is the execution of a listing agreement, which the broker typically prepares by adapting its standard form to the proposed transaction. Listing agreements vary substantially from state to state and from broker to broker. Most listing agreements, however, address similar issues, and many of those issues are potentially very important for the seller. Some of those issues are obvious and some are not. Almost all are negotiable. Below are seven of the most important issues that the seller can negotiate in the broker’s listing agreement. Trigger for Payment of Commission For good reason, brokers have been able to prevail upon many state legislatures and some courts to provide legislation or case law to protect the broker’s right to receive a commission. This protection is often afforded by conditioning the broker’s right to receive a commission not upon closing of a sale, but merely upon producing a ready and able buyer willing to meet the seller’s price. Whether or not this result is mandated by legislation or case law, the listing agreement often provides for it as a matter of contract. While providing for payment of a commission under these circumstances protects a broker, it creates the possibility that the seller may owe the broker a commission even if the seller does not sell its property, a result clearly not anticipated by nor acceptable to the seller. Most brokers will not object to adding language to the listing agreement requiring that the sale close before the broker has earned its commission. Further, it is in the seller’s interest to expand upon this concept so that, except for specific carveouts, no other fee, compensation or reimbursement is due to the broker unless the sale closes. For instance, the seller would not want to pay the broker all or a portion of a forfeited deposit. Nor would the seller want to reimburse the broker for costs or expenses, unless the broker and the seller have specifically negotiated an expense reimbursement or “setup” provision, to reimburse the broker for certain expenses such as preparation of a brochure and advertising. If the seller agrees to such a reimbursement provision, the seller will want to consider: limiting the kinds of expenses that qualify to be reimbursed, requiring that reimbursable expenses be paid only to parties that are not affiliated with or employed by the broker and providing a cap on the seller’s maximum reimbursement obligation. Alternative Transaction While a broker will ordinarily agree that closing is a condition to payment of its commission, the broker may want additional protection by providing in the listing agreement that the broker will be entitled to a commission if the seller, rather than selling its property, enters into an “alternative transaction,” which goes to closing. Language relating to alternative transactions can be very broad, but at a minimum is intended to protect a broker if the seller enters into: a sale of the ownership interest in the entity that owns the property; a ground or other lease of the property; an option to sell the property; or a joint venture to develop the property. Alternative transaction provisions can be complicated and difficult to negotiate, largely because they are intended to cover many possible eventualities, without addressing any of them in detail. For instance, while a seller may not object to paying a commission if the seller enters into a long-term lease of the property, rather than a sale, the seller will want to know how the broker’s commission will be calculated on a lease and when it will be payable (e.g., upon lease execution or occupancy or in multiple payments). If the listing agreement addresses alternative transactions, the seller and the broker may need to spend some time thinking through and expanding upon the most likely alternatives and the applicable commission arrangements. The Tail Brokers are often concerned that an unscrupulous seller may try and avoid paying a commission by waiting until after the expiration of the listing before entering into a contract with a prospective buyer that was introduced to the property during the term of the listing. For this reason, most listing agreements provide that the seller will be required to pay the broker its commission if the seller, after the expiration of the listing, enters into a contract with a buyer who was introduced to the property while the listing was in effect. While such a provision is reasonable in concept, the seller needs to be sure it will be reasonable if applied. First, the seller must know the prospective buyers with respect to which the broker will claim a commission (knowing this may allow the seller to carve out those buyers from a subsequent listing with a different broker and avoid paying a double commission). The seller can do this by limiting the applicability of this provision to buyers whose names are on a written prospect list delivered by the broker to the seller within a specified period of time, perhaps on the order of 10 days, after the expiration of the listing. The seller should go further, however, and limit the names that may be placed on the prospect list. For instance, if the broker sent out an email blast to thousands of potential buyers, the seller would not want to receive a prospect list with thousands of names. The seller should require that as a condition to being on the prospect list, the prospect has submitted a letter of intent or a contract or that the broker has either personally taken the prospect or the prospect’s agent to the property or personally spoken with the prospect or the prospect’s agent. The seller should also require that the prospect list be timely submitted and that time is of the essence with respect to submission of the list. (Indeed, the seller should require that time is of the essence of all of the provisions of the listing.) Of course, the seller should make sure that the “tail” terminates within a specified period of time after the listing expires (three to six months would seem to be reasonable). The Seller’s Absolute Discretion The seller does not want to get into a dispute with the broker over whether or not the seller thwarted the broker’s effort to sell the property because the seller arbitrarily rejected a particular buyer or offer. To avoid such a dispute, the listing agreement should expressly provide that the seller retains absolute control over the process of picking a prospective buyer, negotiating with that buyer and consummating or not consummating closing (subject, of course, to state and federal anti-discrimination laws and the like). Some listing agreements contain language that might be read to create an implied obligation for the seller to accept an offer if it meets the listing price or to otherwise proceed during the sale process in a commercially reasonable manner. The seller should resist this type of language and should provide in the listing agreement that the seller is free to accept or reject any buyer, accept or reject any terms, terminate or continue a contract, close or not close and otherwise act with respect to the sale of the property in any manner as the seller may desire in its sole and absolute discretion. Information and Warranties Many listing agreements require the seller to provide written information regarding the property and some provide for the seller to give disclosures or representations or warranties regarding the condition of the property. Both provisions could present problems for the seller. For instance, language to the effect that the seller will provide “all documentation relating to the property” is overly broad and could give rise to potential liability on the seller’s part if the seller inadvertently fails to disclose documents in its possession. Such language could also be interpreted to require the seller to deliver documents in the possession of the seller’s attorneys, engineers or management company. And, in the absence of an express qualification, the seller could be subject to liability if some of the documents, including those prepared by third parties, contain false or incorrect statements or information. If the broker will not agree to remove entirely any requirement for the seller to provide documents, then the seller should limit the requirement to the use of the seller’s “good-faith efforts” to deliver documents and should provide that the seller’s obligation relates only to documents “in the seller’s possession.” The listing agreement should also provide that the broker must rely upon all such documents and their contents at its own risk. Similarly, language relating to disclosures, particularly broad language, is always a concern. Often the requested disclosures relate to matters such as “defects” in improvements, zoning matters, environmental matters or compliance of the property with applicable laws. The seller should avoid making any such disclosures. It is enough that the seller, in the sale contract, will carefully negotiate with the prospective buyer representations and warranties that relate to these matters. The seller should not have to take part in similar negotiations simply to enter into a listing agreement. Moreover, most sale contracts contain protective “as-is” language that provides a counterbalance to any express representations and warranties. Most sale contracts also provide that any representations or warranties relating to the property survive closing only for a limited period of time. These limitations are typically not addressed in the listing agreement. So, to the extent that the seller makes specific disclosures, representations or warranties in the listing agreement, the seller may end up with having a liability to the broker that is more expansive than the seller’s liability to the buyer. Duration of Listing/Termination Listing agreements typically are (and certainly should be) for a set period of time, often on the order of six months or a year. While this is reasonable in and of itself, there could be circumstances where a seller is unhappy with the broker’s marketing efforts or with other actions of the broker. Under such circumstances, the seller would not want to wait until the expiration of the listing in order to find a different broker. Therefore, the seller should provide a mechanism for early termination of the listing. Ideally, the seller would want the right to terminate the listing for any reason or for no reason after a relatively short period of prior notification. Similarly, the seller would want the right to terminate the listing immediately for good cause. A broker will often be amenable to reasonable provisions of this nature, especially if the broker is protected with respect to prospective buyers on a prospect list and can recoup its out-of-pocket expenses, if the termination was without good cause. Indemnification Perhaps, the most difficult provision to negotiate in a listing agreement is the indemnification provision. The broker doesn’t want to incur any liability to anyone in connection with its efforts to market the seller’s property. Accordingly, many listing agreements contain a very broad indemnification provision, requiring that the seller indemnify the broker in the event that any claim is made against the broker in any way related to the property or the broker’s efforts to market the property. While this is understandable from the broker’s perspective, the seller will not want to be responsible for anyone’s conduct except its own, and the seller will want only to be responsible for its conduct that is negligent or contrary to or constitutes a default of its obligations in the listing agreement. In addition, the seller will want cross-indemnification from the broker. The seller will want the broker’s cross-indemnification to cover the broker’s default of its obligations under the listing agreement as well as any claims resulting from the broker’s actions beyond the broker’s scope of authority set forth in the listing agreement. And, there is another issue that the seller needs to consider. The broker may negotiate with or cooperate with a different broker representing a prospective buyer. Unless a co-broker arrangement is specifically addressed in the listing agreement, the seller likely will be under the impression that the prospective buyer’s broker will be compensated out of the commission that the seller is paying to the seller’s broker. The seller will not want to be in a position where it is sued by a broker representing the buyer, particularly if that broker is upset because of a disagreement as to the sharing of the commission between that broker and the seller’s broker. The seller, therefore, would want the broker’s indemnification provision to require the broker to indemnify the seller if a claim is made against the seller by another broker, provided such claim does not result from the seller’s actions. As noted above, there is substantial variation in the form and content of listing agreements. Although most listing agreements address similar issues, those issues are often treated in very different ways. A seller who intends to deal reasonably with its broker will likely not have a problem regardless of what is contained in the listing agreement. Nevertheless, the seller cannot predict the future and cannot predict how its relationship with the broker will develop if the transaction hits unexpected bumps in the road. For this reason, the seller should carefully consider all of the issues implicated by the listing agreement, including those seven issues addressed above. —By Robert E. Scher, Ober Kaler Grimes & Shriver PC Robert Scher is a principal at Ober Kaler and chairman of the firm's real estate practice. The opinions expressed are those of the author(s) and do not necessarily reflect the views of the firm, its clients, or Portfolio Media Inc., or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

What every 22 year old graduate should know about the job market

Maybe it’s because we’re taught to find an older mentor. Or maybe it’s because people who are gray around the temples simply look wiser. Whatever the reason, when you’re fresh out of college, it’s tempting to seek career advice from the most accomplished people in the field you’re hoping to break into. But in reality, those execs chalked up most of their accomplishments in an entirely different economic, technological and professional landscape. So Fortune talked to more recent college graduates—millennials who entered the workforce in the years after the economic crash and the invention of Twitter—about what they wish they’d known about getting a toehold in their career when they were 22. Before you accept an internship, especially an unpaid internship, ask the employer this one question. “Have you ever hired an intern?” Internships have become a necessary inconvenience on the path to full-time, paid employment—even though they can sometimes seem more like a cruel prank to get recent graduates to fetch coffee and make copies for free. Occasionally an unpaid internship turns into a solid job, but often it doesn’t. Before you gratefully accept someone’s offer to work for them for free, ask about the company’s track record of hiring from their intern pool, and weigh their answer before you accept. If they’ve only ever hired one intern, but have 60 working for them at any given time, it might be best to walk away. “Sometimes it is worth it to wait and really vet these organizations. Expect better,” says Justine Dowden, who graduated in 2010 and has had six different internships or jobs since; she’s now pursuing a master’s in public health. “Try to work for a place that wants you to really grow from the experience of working for them, not just use you as expendable cheap labor. That will connect you to people. You really can’t wait around forever, but you can wait around for an internship that’s not just tweeting.” Sometimes bigger—and more established—is better. A creative startup with only five employees or a scrappy nonprofit looks cool from the outside—and it’s easy to think that you’ll be able to add a wide range of skills to your resume if everyone on staff is doing a little bit of everything. But it can also be maddening once you’ve been hired. Small upstarts often “don’t have the same HR structures as corporate places or law firms. All of the lines are blurred so it’s harder to know your position,” says Meg, a first-year associate at a law firm in Chicago, who watched many of her undergrad classmates unexpectedly struggle with the loose nature of their jobs at creative upstart companies. “Because the hierarchy wasn’t as clear, it was also harder for them to get mentors,” she adds. Beware of companies that lack a human resources department or won’t give you a concrete job description. You don’t have to move to New York. It might seem like all of your friends are moving to Bushwick, but take a wider view. There are good jobs everywhere. “Just try to look beyond NYC or Boston or SF,” says Dowden, who counts an internship in Amsterdam and a public-health job in Sacramento among her most valuable professional experiences. Don’t wait for permission to put your ideas out into the world. It’s never been easier to show employers that you have ideas worth listening to. Can’t get an informational interview with a company you’d love to work for? Sometimes it doesn’t hurt to publish your thoughts online about what the organization could be doing better. “When I was a junior in college, I had some ideas I thought Google should work on, and I wrote this blog post,” says Ted Power, who graduated in 2007. “I mocked up this concept and put it out there, and got very lucky because someone at Google happened to see it, and said oh, you should apply for an internship here.” His internship turned into a full-time job at Google GOOG 0.48% , which he later quit to instead work at a series of startups. Companies pay attention to what people say about them online, and if your tone is professional and your ideas are sound, you just might get lucky like Power did. Meet as many people as you can. And keep in touch. It might make you feel like a nag or a phony, but “all the bullshit you hear about networking is so true,” Meg says. When she first interviewed at her law firm, it went well. They told her they really liked her, but they wouldn’t be hiring any new associates that year—an all-too-common interview response in tough economic times. She kept in touch, calling them after she took the bar exam and again after she got the news that she’d passed. After her third or fourth call that ended with a polite decline, she got a call back from one of the partners, offering her a job. Meg’s pretty sure that never would have happened if she hadn’t gotten in touch with them after their initial “sorry, but we’re not hiring now.” Also, don’t be afraid to work any personal connection you have—even if those connections aren’t people who are directly hiring right now. That fellow intern you befriended last summer? She might not be a hiring manager just yet, but she probably will know before outsiders do when her company is hiring. Don’t unfriend her on Facebook just because you’re annoyed she found a job right away and you didn’t. Stay in touch. Put your Google-stalking skills to work. Your talents are wasted on your ex. Instead, read up on the places you want to hire you and the people who work there. This is what LinkedIn LNKD -1.53% is made for, but you can do better than that. Googling and combing social media can yield a surprising amount of information—so much that it’s almost like having a contact within the company. A lot of hiring managers are pretty public these days about what they look for in a new employee. Pay attention to what they’re saying. It’s ok if you don’t know what your dream job is. In fact, it might be better that way. The point of your first few jobs is just to try out different roles, responsibilities and different types of work environments. “There’s a lot of pressure to find your dream job, or something that you absolutely love,” Power says. “That can almost be counterproductive because you have such high expectations. What’s more important is trying a bunch of stuff and figuring out what you like doing day to day. There are a lot of jobs that sound amazing, but the day to day is working in Excel or something.” And if you do have a dream job, don’t write off an entry-level position just because it’s imperfect. After an internship at the White House, Meg landed a job at the Department of Justice, “which wasn’t my first choice,” she says. But in retrospect, it looks a lot better than the other political jobs she wished she’d gotten at the time. “I made $20,000 more at DOJ than you’d make at the White House,” she says. She also met a fantastic mentor at the Department of Justice, who convinced her to go to law school and ended up changing the course of her career. Remember to have fun. This is going to sound almost ridiculous, given that your first few jobs are likely to be less than ideal. But if you’re working super-long hours and finding yourself too busy to even see your friends, take a step back. You have plenty of time to work yourself to the bone later. “Young professional life is trying to figure out balance between trying to get ahead and enjoying your life,” Meg says. Sure, you have loans to pay off. You want your next job to be a fantastic one. But you shouldn’t be more stressed than your boss who makes ten times as much. Your twenties are “the time you’re supposed to be going on disaster internet dates and going out and finding excellent hangover breakfast restaurants before work the next day,” Meg says. Make the most of them.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

New ways to profit from single family homes

Two-and-a-half years into the U.S. housing recovery, the real-estate industry is rolling out new ways for individuals to invest in the property market. Brokers, property managers and others are helping buyers purchase houses in distant cities and manage them as rentals for a fee. Publicly traded trusts that collect rental income are selling shares to investors. And crowdfunding startups are matching buyers with willing lenders. The latest pitches generally aim to eliminate the day-to-day headaches of being a landlord, and the potential payoff can make the concept worth considering. Investors can buy in for the price of a single-family home or a single share of stock. But the plunge in U.S. home prices in the financial crisis should be a fresh reminder that bets on housing can sour in a hurry. The latest deals often don't depend on home values going up, which sets them apart from the house-flipping strategies that cost many home buyers dearly when the market collapsed. Yet investors could still face losses if, for example, the economy weakens and renters can't keep up with their payments. Advertisement Those who buy a rental property and then need their money back down the road could also get burned. Unlike stocks, bonds and mutual funds that can be sold quickly, it can take months to unload a house even in a strong market. And if prices decline, investors may lose a chunk of principal for good. Despite the risks, investors worried about pricey stocks and meager bond yields can be lured by the prospect of a steady income stream and average annual returns that could range from 5% to 15%, if things go well. Don't go overboard. Investors should maintain a diversified portfolio that also includes stocks, bonds and cash. Single-family homes shouldn't exceed 5% of their investments, not including their primary residence, says Jeff Sica, president of Sica Wealth Management in Morristown, N.J. For the moment, the supply of rental homes and the demand from renters are high. Some 14.9 million single-family homes were occupied by renters in 2013, up 31% since 2006, before the U.S. housing market collapsed, according to data released this past week by the U.S. Census Bureau. The vacancy rate on single-family rentals fell to 7.3% in the second quarter, down from 10% in the fourth quarter of 2008, according to the bureau. Here's what you need to know about making money in the rental market. The Traditional Route Many investors become landlords on their own. Millions of the single-family homes occupied by renters are owned by investors who have just one such rental property, estimates Jade Rahmani, who tracks the single-family rental market as an analyst at Keefe, Bruyette & Woods, an investment bank based in New York. There are many benefits to going the traditional route. You get to choose the tenants, and you decide how much rent to charge them. You don't have to pay fees to a property manager, which can eat into your returns. But it also means taking on a lot of responsibility, both when buying the property and while owning it. Would-be landlords should figure out whether they are paying a good price. That means knowing the market and hiring an inspector to determine what repairs a house may need. Buyers should lower their offer to account for expensive repairs such as to the roof or boiler, says Jack McCabe, an independent housing analyst in Deerfield Beach, Fla. Investors should plan to own a home for at least 10 years and realize that they may shell out significant sums before seeing a return on the investment, says Mr. Sica. Be careful about taking out big mortgages. "Low borrowing rates encourage speculation," he says. "Investors are constantly tempted to take cheap money and not be as diligent with the deals they do." Investors should also research the expected annual expenses, including property taxes, insurance and maintenance, says Mr. McCabe. Allow for the fact that property taxes and insurance rarely decline, and can sometimes spike suddenly. The net gain, once taxes on rental income are factored in, should be at least 8%, he says. Landlords also routinely get emergency calls from tenants about urgent repairs, so it is often best to live or work in the area to get to the property quickly, if necessary. Experts say tenants tend to take better care of a home when they know the owner is nearby. Be prepared for worst-case scenarios, and study local laws. Landlords, for example, may have limited options if a tenant stops paying rent, and evictions can take months in some places. One-Stop Shopping To many investors, doing all that work sounds hard. An expanding roster of real-estate firms promise to make the process easier—for a price. Memphis Invest, a real-estate brokerage based in Memphis, buys properties—which have often gone through foreclosure—fixes them up, rents them out and then sells them to investors. It will also manage the property for a fee. It has been operating in the Memphis area since 2004, and it expanded to Dallas in 2010 and Houston in January. HomeUnion, based in Irvine, Calif., helps clients find prospective rental properties and purchase them. The firm will then help buyers find property managers. HomeUnion launched in 2011 and operates in 15 metropolitan areas, primarily in the Southeast and Midwest, and is expanding to others by year-end. San Francisco-based Dwell Real Estate Advisors also helps buyers find rental properties to purchase. Typically, the homes already have tenants. Dwell will help clients find a property manager. The firm operates in and around Atlanta, Chicago, Dallas, Houston and San Antonio, as well as in Northern California and South Florida. The firms generally look for homes that have low prices, usually $60,000 to $150,000, but that have the potential to fetch relatively high rents. In addition to helping investors find a house to buy, the firms make it easier to invest far from home, including in markets where home prices may be lower. Mike Cook, who is 61 years old and lives in Hollister, Calif., says he has spent about $350,000 purchasing five rental homes in the Indianapolis and Cleveland areas through HomeUnion over the past 18 months or so. "I was looking for what I consider a more stable return on investment," says Mr. Cook, a manager at a construction-materials firm. "It's not about appreciation of properties. It's really about cash flow." He says he has earned a 5.5% to 7% return on each property so far, after management fees and property taxes. But investors also surrender a great deal of control in such deals, particularly if they don't live nearby. They should consider visiting the property before purchasing it, or at least request extensive pictures of the home, including all the rooms, the roof and major appliances. Research the local market, too. For example, investors can check the Bureau of Labor Statistics website to see whether the local unemployment rate is decreasing, which could suggest a smaller chance of renters falling behind on their payments. In addition, the National Association of Realtors' website provides quarterly updates on median home-sale prices in many metro areas. Rising prices suggest that investors have a better shot at recouping their cash—and possibly turning a profit—if they suddenly have to sell. There are other potential drawbacks. Memphis Invest charges a 15% to 20% premium on the homes it sells, says Chris Clothier, a partner at the firm. That could make it harder for an investor to unload the property at a profit in the near term. Fees can also add up. HomeUnion, for example, charges 1% of the purchase price annually as long as the investor owns the property. It also charges 7% to 10% of monthly rent when the home is occupied. Memphis Invest charges 9% to 10% of monthly rent, depending on the number of homes it manages for an investor. Investors should also plan to closely track a property manager's expenses and review receipts for repairs. In addition, investors should consider what could happen if the home is vacant or the renter doesn't pay. Some of the firms guarantee rent payments for a year, but even they make no long-term promises. Taking Stock Investing in a home means placing a risky and concentrated bet. So does buying shares in a company that owns homes—but the price tag can be much lower. Firms that own portfolios of single-family rentals are for the first time offering shares to the public through real-estate investment trusts, or REITs, says Jason Lail, manager of real-estate research at SNL Financial, a financial-information firm based in Charlottesville, Va. Six REITs that are entirely or primarily focused on single-family homes have started trading publicly since the end of 2012. Many of the properties were distressed homes purchased from banks at a discount, then repaired and rented out. Much of the rent the REITs collect gets passed on to investors. Shareholders must receive at least 90% of a REIT's taxable income in the form of dividends each year. Performance varies widely. For example, one such REIT, American Homes 4 Rent, has logged an 8% gain this year, including dividends, through Thursday, while another, Altisource Residential, has logged a 12% loss, according to FactSet. Investors should consider the risks of an investment that is so new. Before buying shares, investors should review a REIT's holdings by checking the firm's website and filings with the Securities and Exchange Commission. REITs that bought single-family homes around 2009 and 2010, when home prices were near bottom, may provide greater returns, says Mr. McCabe. So may REITs that are currently buying in cities where purchase prices and other costs are relatively low, such as Dallas, Indianapolis and Nashville, he says. The company's management can also be crucial. Returns could depend on the companies' access to capital and operating efficiency, among other factors, says Mr. Lail. Crowded House Crowdfunding—the practice of pooling small amounts of money from many investors—has helped budding entrepreneurs capture the imagination of strangers who combine to bankroll a dream. Recently, home buyers who think they have found a promising fixer-upper have gotten into the act. New online crowdfunding platforms that focus on housing, such as Groundfloor, iFunding and Patch of Land, have launched over the past year or so. These firms consider pitches from borrowers who want to repair a home, then sell it or rent it. The firms then post the approved projects online, listing the property, the requested loan amount, the interest rate the borrower will pay and the amount of time it will take the borrower to repay the loan. Typically, investors decide how much cash they are willing to put up. Groundfloor will accept as little as $100 per lender. Michael Patzer, a 27-year-old software engineer who lives in Atlanta, says he began making loans through Groundfloor in March and so far has helped fund seven deals by putting up $300 to $1,600 for each. The loans must each be repaid after six months, and the interest rates range from 8% to 12%. He has already been paid back on two of the deals. He chose short-term deals and focused on homes he believes are a good value in an effort to limit potential losses. "I certainly think of the risk in any of these projects," Mr. Patzer says. "This hasn't been done before." But there are limits and risks to crowdfunding. In some cases, investors may only be able to participate if they live in the same state as the house. Groundfloor currently operates only in Georgia. Others have a greater reach but are currently only available to accredited investors—individuals with annual income of more than $200,000 or a net worth of more than $1 million, excluding their primary residence. IFunding handles deals in Indiana, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Ohio, Texas and Wisconsin. Patch of Land operates in California, Florida, Georgia, Illinois, New Jersey, New York and North Carolina, and it is expanding to seven more states soon. If borrowers default, the platforms say they can foreclose on the properties and sell them to make investors whole. Some will consider renting the property instead. But investors could be at risk if home prices fall or the economy falters—two possibilities that investors who lived through the financial crisis should know are all too

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Is home ownership a thing of the past?

Kristi Taylor can pinpoint the precise moment she let go of the dream of homeownership. It was a few months ago, as she and her husband and infant son were driving through a neighborhood of homes near their apartment in Athens, Ga. "As we were passing through, I realized that I don't really look at houses like I used to, when we would point out homes and say, 'That can be ours someday,' " says Taylor, who is 28. Now, she says, "the idea of homeownership is so vague, it doesn't even strike me as something that's in our future." Taylor says she and her husband, Zach, 25, have lived in nine different places in the past five years, including stints back home with the parents — both his and hers — as they moved from place to place "chasing after jobs." A Home Of Their Own Homeownership among younger adults has shown a steady decline since the mid-2000s, according to the latest available Census data. The Taylors aren't alone. The economic hammer has fallen especially hard on 20somethings — part of the so-called Millennial Generation or Gen Y born roughly between 1975 and 1995. Plagued by high unemployment, many have had to delay careers, marriage and having children. And the idea of owning a home is more often being put off or written off entirely. In a nation where homeownership is part of the American dream, a generation of renters could alter communities where they live and redefine the idea of middle-class success. 'A Recipe For Frustration' "They've seen what their parents are dealing with, what their brothers and sisters are dealing with, in terms of being saddled with home values that are less than what was paid for," says Paul Conway, a former chief of staff for the U.S. Department of Labor who is now president of Generation Opportunity, a think tank specializing in the economics of Generation Y. Sociologist Katherine Newman, who chronicles some of the struggles in her book The Accordion Family: Boomerang Kids, Anxious Parents, and the Private Toll of Global Competition, agrees with Conway that we may be witnessing the creation of a generation of renters. "I'm hoping that the Millennial Generation doesn't set its sights on homeownership as a benchmark of economic stability, because it's going to be out of reach for so many of them that it will just be a recipe for frustration," she says. Homeownership among millennials has been on a gradual but steady decline, according to the latest available U.S. Census Bureau data. Even with big drops in housing prices and interest rates, getting a mortgage has become a lot harder since the heady days of "no income, no assets" loans that fueled the housing boom of the early 2000s. Most lenders now require a rock-steady source of income and a substantial down payment before they will even look at potential borrowers. And many millennials won't be able to reach that steep threshold. The vast majority of Americans who currently rent say they hope to buy a place of their own someday, according to a recent survey released by the Woodrow Wilson International Center. But Newman fears that for many young adults, at least, perception and reality have yet to come face-to-face. "The capacity to own a home will be powerfully affected by the slowdown in [their] earnings," she says, "especially for entry-level workers and the crushing consequences of student loan debt." Communities Need To Prepare Rolf Pendall, a housing expert at the Urban Institute think tank, says too much emphasis has been placed on homeownership in the past few decades, not only by individuals, but by governments and policymakers. So a shift in attitudes might be a good thing. In the short run, he says, local officials need to prepare for more renters. "What communities need to do to ensure they are prepared is first to make sure that there are sites where new multifamily housing can be built," he says. "And the multifamily housing that gets built needs to go in communities with high opportunity, not just communities where the schools don't perform well and where it's not safe to live." The availability — or lack thereof — of quality rental housing will put communities in competition with one another as a more mobile workforce is able to vote with its feet, says Conway of Generation Opportunity. "A question for local government leaders," he says, "is that if you have a generation that is less committed to taking a risk and buying property in that area, either because there are not jobs or because the overall national situation looks rocky, then as a local official, you absolutely have a problem for your long-term commitments, your long-term budget, your long-term obligations to such things as pension funds." Pendall thinks many or most current renters will eventually become homeowners, even if it takes them longer to make that transition than it did for their parents. "There are people who will be making the transition to homeownership sooner and there are people who will be making the transition later. And some never will. That's always been the case, but that last number will probably be larger," he says. Homeownership will be out of reach for many younger adults in the U.S., according to several sociologists and housing analysts, leading to a rise in the number of renters. In theory, fewer homeowners will mean municipalities will rake in less revenue from property taxes. But Pendall believes local governments will simply adjust to make rental properties "a larger share of the tax pie." And within those communities, some businesses will feel the pinch. Dan Ariely, a professor of psychology and behavioral economics at Duke University, says a wave of renters would have an obvious impact on the massive consumer industry that supports homeownership. "My subjective experience is that when people buy a house, they immediately start renovating and fixing it — going on Sunday afternoon to Home Depot, doing things that I think people would never do for houses that they rent," he says. But Ariely also sees a potential economic upside to a rise in renters: less of what economists call "housing lock," when homeowners can't move to take a new job because they're saddled with houses they can't sell. "If we all lived in a place where we rented more freely, moving from place to place would be easier," Ariely says. Flexibility Vs. Freedom Jason Dorsey, 33, who consults and writes about Generation Y, says when you're talking about his generation, everything is taking a back seat to the limp economy. "When we finally graduate from college, we're older than ever before. When we finally get married, we're older than ever before; finally have our first child, we're older. All of these things are pushing back," says Dorsey, author of My Reality Check Bounced! Pushing things back — that describes Neal Coleman and his wife, Rachel, both Indiana University graduate students in their mid-20s. For them, homeownership just doesn't make sense until careers, kids and finances are sorted out. "Renting is more flexible, and we're not sure where we are going to be in a few years," Coleman says. "We were also concerned about long-term financial liabilities. Grad school is transient, so we didn't want to be tied down to a house in Bloomington, Ind., if we're moving to Boston or the West Coast." Homeownership might be on the back burner, but the Colemans' views about it sound a lot like what their parents might have envisioned. "You're freer when you own your own home, your own land. You're not beholden to a renter's contract, or lease," Coleman says. "My feeling is that homeownership is an investment in being able to control your surroundings, to build a life for you and your family."

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Missouri Eviction Law

Any landlord who wishes to evict a residential tenant in Missouri must follow the steps of the Missouri eviction process. There are number of valid reasons for which a landlord may wish to evict a tenant: Holdover after expiration of lease Nonpayment of rent Damage to the rental property Violation of a lease provision Illegal gambling on the premises Illegal drug-related activity on the property Assault of another tenant or on the landlord The Missouri eviction process has two procedures for evictions: rent and possession for nonpayment of rent; and unlawful detainer. The latter process is for holdovers and for particular lease violations that warrant an eviction. No Self-Eviction No landlord may evict a tenant without a court order. Self-eviction includes such acts as turning off utilities, padlocking the doors or changing the locks, removing the tenant’s personal belongings, threatening the tenant with violence or any other action designed to force the tenant to vacate the premises. A landlord may be liable for to up to twice the damages incurred by a tenant who proves the landlord committed such acts. Notice Requirements The Missouri eviction process does not specify a particular notice requirement in cases of nonpayment of rent; only that a demand that the rent be paid. The landlord should at least give the tenant a few days to pay the overdue rent since most states have 3-7 day notice requirements. The Missouri Eviction Notice must be served either personally on the tenant or by leaving it with a person at least 15-years of age who lives on the property. If no one is present, the server may post the demand and complete a sworn affidavit attesting to service. For holdovers and lease violations such as creating a nuisance, having unauthorized persons living on the property, or for any other substantial violation, the landlord must serve a 30-day notice to vacate or to comply with the lease provision, if it can be remedied. A Missouri eviction notice does not need to be served if there is unlawful drug-related or any violent criminal activity. The landlord does not have to wait for a conviction in these cases and may immediately apply to the court to begin the eviction action. The demand to pay or the notice to vacate may be served by either the landlord or his or her representative. Rent and Possession Actions In nonpayment of rent cases and after a written demand has been made, the landlord must submit an affidavit to the circuit court where the property is located. The affidavit must set forth the terms on which the property was leased, a description of the property, the amount of rent owed, that a demand was made and that compliance was not forthcoming. Once accepted, the clerk issues a summons with a court date indicated and an order to show cause directed to the tenant why possession of the property should not be returned to the landlord. A tenant can stop the eviction and have the eviction action dismissed if he or she tenders the entire amount due along with court costs before the court date. Unlawful Detainer Actions For unlawful detainer actions, once the notice period for noncompliance with the lease or for a holdover has expired and the tenant has not complied, the landlord must submit a sworn Landlord’s Complaint to the appropriate circuit court with a description of the leased property, the nature of the noncompliance and who committed the breach. Once accepted, the clerk will issue a summons. Service of Summons The summons is to be given to the sheriff or other court officer to serve the tenant. A court date will be scheduled for not more than 21-days after the summons is issued unless the landlord requests a later date. The summons may be served personally, on a person at least 15-years of age who resides on the property, or by posting and mail. If the tenant is not served personally or on a person of suitable age, the landlord may only obtain possession of the property and may not collect any monetary damages. Also, if service is by posting, the landlord must file a motion and obtain a court order to do so. If the tenant has any counterclaims, they must be submitted in writing before the court date. Court Date Eviction trials are before a judge only. If the landlord proves his or her case or the tenant fails to appear, the court will issue a judgment for possession to the landlord. In unlawful detainer cases, the tenant may be ordered to pay double the amount of rent for the time he or she remained after the date the tenant was to vacate the property. Tenant Defenses A tenant in the Missouri eviction process may assert any of the following defenses: The breach of a lease provision is not substantial enough to warrant an eviction. The tenant had no prior knowledge of the criminal activity that is the basis of the eviction. The tenant reported the unlawful activity by another person on the lease or someone over whom the tenant has control to the landlord. The allegations are false. There was improper service. The notice does not specify a reason for eviction. The landlord waived eviction by accepting rent. The eviction is in retaliation for the tenant having filed a complaint regarding the condition of the property. The eviction is based on the tenant’s religion, race, sex, national origin, creed, sexual orientation, age, marital or family status, or disability. In Kansas City, an eviction may not be based on the tenant’s sexual orientation. Judgment and Writ of Execution After the judgement is issued, the tenant has 10-days to file an appeal. The court will issue a Writ of Execution if requested by the landlord after the 10-day period. The writ is given to the sheriff’s office, which schedules an eviction date. The writ does have an expiration date and the landlord must contact the sheriff’s office at least 7 days before the expiration of the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Benefits of Owner Financing

Offering owner financing is a sensible way to sell property and extremely common all over the country (it has been estimated that approximately 10%-15% of property sold is now done so with seller financing). Offering to finance the purchase of your property can help you sell it more quickly, may provide tax benefits and will give you a nice source of monthly income. Enclosed below are some additional benefits enjoyed by offering to provide owner financing to potential buyers. Advantages for the Property Seller The number of potential buyers for your property will increase significantly; The sale price of the property should not need to be reduced below fair market value; The property sale will close more quickly than if bank financing were used; Any potential income tax liability from the sale may be able to be deferred by the property seller; In most cases, the note created can be sold and converted into cash at any time. Advantages for the Property Buyer The buyer will not have to meet rigid bank qualifying standards; The buyer may be able to purchase a property the banks would not qualify them for; The buyer will pay lower closing costs than with bank financing; The buyer may be able to make a smaller down payment than the banks would require; The buyer may have the option to create flexible payment terms; The buyer won’t have to pay origination fees or mortgage insurance; The buyer may not have to establish a prepaid escrow account for taxes and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

11 questions to ask your property manager

While many investors spend a large amount of time and effort carefully researching the property markets and then finding the top investment, they ignore the role that a professional property manager can play in preserving their property’s capital value and maximising its income. With our property markets growing strongly and no shortage of tenants, many beginning landlords fail to ignore the relationship with their property manager as an ongoing business partnership. Too many landlords choose their property manager on fees alone. Others think they don’t need a property manager at all and can do it themselves. This is possibly because they don’t understand that property management is much more than just collecting rents. To manage your property to minimise vacancies and maximise your returns requires: Industry specific skills and knowledge such as knowing how to market your property effectively to get it exposed to the maximum number of tenants. Setting the rent at an appropriate market level to ensure quick leasing, the choice of a variety of good tenants and at the same time maximise the returns in these days of rising rents. Checking potential tenant’s references to ensure you have a reliable tenant who is unlikely to cause troubles. Drawing a fair and comprehensive lease to protect your interests as a landlord. Lodging the bond with the relevant authority. Handling repairs and maintenance with skilled, licensed tradespeople. Paying insurances and outgoings on behalf of the landlords who will work at fair prices. Keeping up to date with complex ever changing tenancy legislation. Because the relationship with our property manager will be a long and ongoing one, let’s look at how to select a top professional. FIRST, DRAW A LIST OF POTENTIAL PROPERTY MANAGERS. With new technology many property managers have centralised their services, so it’s not essential to appoint a managing agent whose office is in the same suburb as your investment property. It is important however to find someone who has the experience in the property market that your particular property is located in. I find it best to arrange to meet the short list of property managers at their offices as this gives you a great opportunity to observe them on their home turf. It will help you decide if you feel comfortable working with them and should allow you to gauge their level of professionalism. When you meet potential property managers, clarify which services are included in their proposal and ask some specific questions – for example, check how they handle arrears, routine inspections and rent reviews. Here are 11 questions that you should ask your prospective property manager: 1. Does the agency have a dedicated property management department and how many staff will be looking after my property?Property-Investment-Checklist Many agencies see property management as a “poor sister” to the more glamorous sales department and some even leave the management of client’s assets to the front desk staff and receptionists. Ensure that your agent has a dedicated property management department. It would be preferable that this department is staffed by a number of experts so there is continuity of management in the event of one property manager being ill or leaving. 2. Is a director/owner of the agency involved in the day to day management of the property management department? Most agencies have a sales department and a rental department. Generally the business owner has a sales background and not a rental background, and looks after the sales department leaving the management of their rental department to a property manager. This is often because the sales department has a higher turnover and high income. The rental department has a lower income, is more intensive and difficult to manage. You may find that an agency where the director has an active involvement of the property management department will take the business of property management more seriously. 3. How many years has the property manager looking after your property been working in real estate? This relates to the property manager and not the agency. Going to a brand name agency doesn’t mean their service is going to be any better. Many people start their career in real estate as receptionists and then move up to the property management department, and some of the top performers move into sales. Yet some individuals choose property management as a career and this is the type of person that should be looking after your property. 4. How many years has the property manager been with the agency? You should look for stability in your property manager. You want someone who will learn your property inside and out. You want to pick up the phone and talk to that person today, and in 6 months time you want to be able to talk to that same person. Due to the stresses involved in property management, the staff turnover tends to be quite high. This is another reason why you should look for an estate agent who has chosen property management as a career. 5. Does the property manager give you a written proposal? Some property managers just go out and look at your property and say “OK, we’ll put it on our books”. Look for someone who has put in the time and effort to present a professional image to you and gives you a written proposal. If they make the effort to present their services professionally to you, it is likely they will look after your property professionally also. 6. What geographic area does the property management service cover? While you should be looking for a property manager with expert local knowledge, consider what your property portfolio will look like in a couple of year’s time. Will you own a number of properties spread throughout the suburbs? You could either employ a specialist property manager in each geographic location or you could instruct a large property management company that covers a larger geographic area. Australia is now following the overseas trend in the formation of agencies that are solely dedicated to property management and cover a larger geographic area. With the advent of internet advertising and electronic banking, these “super offices” no longer need to be located in the local shopping strip to manage your properties. Many professional property investors are turning to this type of asset manager who will be able to look after their entire property portfolio. 7. Does the Property Manager hand out keys or do they attend property inspections with prospective tenants? If they just hand out the keys and let the tenant inspect the property on their own, move on to another agency. Too many things can go wrong with this approach and the security of your property is compromised. Inspecting your property with a prospective tenant means that the agent has a better opportunity to promote the property, as well a chance to get to know the tenant a little better. 8. How many properties does the manager look after? A property manager who looks after too many properties may not have time to devote the attention to your property. Some busy agencies have 200 properties per property manager. In general, this is far too many to give your property individual attention. At some boutique agencies each property manager looks after about 100-150 properties. While these agencies may charge a little more for their property management services, landlords find this extra expense translates to a trouble free investment that often produces a higher return. 9. Do you have staff available to show my property to prospective tenants six days a week? The hectic pace of life and the advertising of rental properties on the Internet 24 hours a day means a good property manager must be available to show prospective tenants your property when it best suits the tenant. 10. Do you have a system for checking prospective tenants with regard to credit worthiness, past rental history and their current employment? Ensure that your property manager subscribes to a major tenancy database and screens all prospective tenants carefully. 11. Will you go to court for me if need be and what is your success rate for previous appearances? Unfortunately, you just might have to go to the tenancy tribunal to protect your rights as a landlord. If this happens you will need an experienced property manager to represent you as tenancy laws have become quite complex. When you have chosen your property manager, establish a collaborative relationship and agree on your working parameters. Explain to them how involved you want to be in the ongoing management of your property. Make it clear what they are allowed to do without referring back to you and when you do require them to contact you. This will avoid many of the misunderstandings that arise between property managers and landlords. For example, if you signed an agreement for your property manager to spend up to $200 on repairs without obtaining permission, don’t expect them to phone you each time a tap washer needs replacing. Listen to your property manager if they suggest you undertake non-urgent repairs or maintenance on your investment. This will keep your property in top condition and you will be less likely to lose your tenants. As a property investor you have the choice of managing your investment properties yourself or delegating the day-to-day management to managing agents. Engaging a property manager is the preferred option for investors in today’s more complex property market. However, it is critical that you choose your property manager wisely as proactive property management can considerably increase the return from your investment

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

How the Internet Changed the Real Estate Industry Forever

From the MLS to personal networks, the real estate industry thrives on the timely dissemination of information. Until recently, real estate professionals were the exclusive custodians of that information, and they held it close to the vest so that prospective buyers and sellers had to seek them out. But the Internet changed everything. “For the past 200 years, real estate professionals have basically controlled 90% of the transaction,” says Rick Sharga, executive vice president of Auction.com. “The Internet has flipped the model upside down and put the customer in charge.” Information Technology’s Impact on Real Estate One of the first times that information technology affected the real estate industry was when Realtor boards automated their regional multiple listing services in the 1980s. Member brokerages could access listings, recent sales, tax information, and other property details online through dedicated computers in each office. Even when the World Wide Web became accessible to the general public in 1991, real estate professionals still marketed their services and listings through classified ads in newspapers and specialized industry magazines. For two centuries, classified ads had kept newspapers solvent, and real estate ads made up a large share of that ad revenue. But newspaper publishers couldn’t make online classified advertising work from a financial standpoint, and as they increased their prices for classified and display ads, real estate brokerages turned to other, more cost-effective online service providers. The real estate industry quickly figured out that online exposure was much broader and much more economical than anything they could do in the newspaper. The launch of Craigslist put the final nail in the coffin for classified advertising in newspapers, Sharga says. By then, the explosion of online real estate information was well underway. A Paradigm Shift for the Real Estate Industry Just as it disrupted the financial services, travel and automotive industries, the Internet—and its ubiquitous accessibility worldwide—caused a major paradigm shift in the way the real estate industry transacts business. “Since the beginning, one of the real estate industry’s biggest value propositions was that it had the list of what properties were for sale,” Sharga says. “Internet companies publish all that information and push it out to a broad audience.” Real estate listings moved from off-line listings available only to real estate professionals to online listings on major Internet portals such as AOL Real Estate, Yahoo! Real Estate, and MSN House & Home (now housed in its own section under MSN Money). “The major portals generated a tremendous amount of traffic providing real estate information to people buying and selling houses,” Sharga says. “Eventually, that led to the development of real estate portals.” Leveling the Real Estate Playing Field The real estate industry took the challenge posed by the Internet seriously, and decided to use the listing data already housed by MLSs all over the country to beat third-party information providers to the punch. And so they established their own portal: Realtor.com, which launched in 1995. “Realtor.com had the lion’s share of real estate traffic, outpacing the Internet portals,” Sharga said. “Then you had real estate sites that came out with specialty offerings, like RealtyTrac with its previously unpublished foreclosure listings, and HomeAdvisor, with lists of prescreened and customer-rated service professionals.” Consumers’ appetite for online real estate information became insatiable. The more they got, the more they wanted, and they began steering the demand. This led to a fundamental shift in the industry—until now, Realtors and the MLS had controlled what data was presented, and how it was published. But consumers wanted information that the real estate industry didn’t necessarily have much interest in displaying, such as homes that were for sale by owner, and home price estimates, which local Realtors had historically provided to buyers and sellers. New companies cropped up, seemingly overnight, to provide the kind of information—and the kind of online user experience—that consumers were demanding, leveling the playing field in the process. ForSaleByOwner.com published a national list of homes being sold without a Realtor (or a Realtor’s 6% commission). NewHomeSource.com provided information on new and under-construction homes across the country. Zillow launched its free home price “Zestimate,” and a massive database featuring virtually every home in the country—not just properties currently for sale. Other major players, such as Redfin and Trulia, competed with Zillow for consumer traffic by offering more and more local market information, home search tools, online communities, and dynamic user interfaces. The rest, as they say, is history. The Next Evolution for Real Estate The next generation of home buyers has grown up buying and selling everything online, from clothes and shoes to televisions and cars. Eventually, they’ll want to buy real estate online, too, experts say. “We’re now seeing the last step in the evolution from informational sites to transactional sites,” Sharga explains. “That’s where companies like Auction.com come into play. I believe it’s inevitable that within 10 years the majority of real estate transactions will be completed online. It’s what the next generation of home buyers will demand.” Jon Pinto, the broker and owner of Realty World/John V. Pinto & Associates in Napa, Calif., acknowledges that even the paradigm for conducting a property search is very different from what it used to be, thanks to today’s technology. “If consumers use the Internet properly, they don’t even have to get out of their pajamas,” says Pinto, who has been in the real estate industry for more than 40 years. “You can look at a satellite view of the properties to see where they sit compared to freeways and other landmarks. You can search for comps. In fact, from the time a property comes on the market, you can completely vet it, write an offer, and get it to the seller’s real estate agent in 90 minutes. “In the old days, that process would take a few weeks.” Sharga believes the industry is migrating toward a hybrid model—a best-of-both-worlds approach that combines the power of the Internet with the local market expertise and people skills of a Realtor. Real estate professionals will have a role no matter what happens. In fact, the biggest challenge faced by real estate professionals isn’t whether technology will make them obsolete, Sharga believes. It’s coming up with a new value proposition that reflects how they can help consumers in a tech-driven marketplace. “If you don’t evolve to meet the needs of your customers,” he says, “you’ll make yourself obsolete—no matter what industry you’re in.” Next: The new role of the real estate agent in the Internet Age. Joel ConeJoel Cone is a freelance writer based in south Orange County, California. For nearly a quarter century Joel’s career has focused on the residential and commercial real estate industries. After a decade as a staff writer for the Daily Journal Corp. group of newspapers, Joel was a regular contributor to California Real Estate magazine for the California Association of Realtors; was the original Orange County reporter for GlobeSt.com; wrote executive profiles for OC Metro magazine; and has been published in a number of real estate-related publications. - See more at:

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Real Estate Brokers/Unauthorized Practice of Law?

Unlike attorneys, real estate brokers do not have the same professional duties of loyalty to their clients. In many states, brokers are permitted by law to engage in "dual agency." This means they can legally represent both the buyer and the seller in a transaction provided the proper disclosures are made. This could be a problem, especially since the broker's paycheck is reliant on the transaction closing. A lawyer, on the other hand, is required to only represent the interests of one party. Since a lawyer's income is also usually not dependent on the sale actually going through, legal advice from the lawyer is more insulated from self-dealing than that from a dual agency broker. Although a residential real estate transaction seems to be standard and dependent on many pre-printed forms, the process is the modern culmination of literally thousands of years of property law development. A real estate broker and a title insurance agent will have training in real estate, but when problems with the LAW arise versus the TRANSACTION it might not be readily apparent to the broker or agent. A lawyer, on the other hand, has a broader educational background in the law in general and will be able to spot problems before they arise in contract law, environmental law, regulatory law, and (but hopefully not) criminal law. In some cases it might pay to have a lawyer looking after your interests, especially in locales that do not have standard forms or escrow closings. When a Residential Real Estate Attorney is Necessary A person's home is likely to be the most expensive investment they will purchase in their lifetime. Sometimes it might benefit a party to spend some time with a lawyer to make sure the transaction will proceed smoothly. Some times to ask for legal assistance include: (1) when a party is purchasing a home for the first time or in a new locale, (2) where the party did not have sufficient time to read up on the process, or where the process is unduly confusing, (3) where the party does not understand loan documents or the title insurance policy, (4) where the party's gut instinct is telling him or her that the broker or agent is not totally looking after the party's personal interests, or (5) whenever problems arise in the process relating to inspections, government compliance, or disputes between the parties relating to the contract

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Sellers Disclosure Statement

The Riskiest Business Property condition disclosure is a major legal risk for brokers today, according to findings from NAR’s new Legal Scan analysis. OCTOBER 2011 | BY G.M. FILISKO The more things change, the more they stay the same. At least that seems to be true in the world of real estate litigation. Turmoil in real estate markets has brought new legal challenges to brokers, including a greater likelihood of disputes surrounding property condition disclosures and commission payments. Yet agency—a broad topic that includes dual agency, buyer representation, and fiduciary duty dilemmas, among other things—continues to be an area of high risk, according to the 2011 NATIONAL ASSOCIATION OF REALTORS® Legal Scan, a biennial study that’s based on interviews with real estate commissioners and brokers, a review of cases, and a close analysis of recently enacted state statutes. The report seeks to identify current and emerging legal issues and risks. “The day-to-day reality is that every transaction is tougher today than five years ago,” says David Howell, executive vice president and chief information officer at McEnearney Associates Inc. in McLean, Va. “You have to be at the top of your game more than ever to avoid disputes.” WAIT! More Legal Challenges The 2011 NATIONAL ASSOCIATION OF REALTORS® Legal Scan highlights additional legal challenges for brokers. They include: Affiliated business arrangements. The Real Estate Settlement Procedures Act wasn’t the top area of concern for Legal Scan respondents, yet almost 64 percent said RESPA issues were the source of a “moderate or higher” number of current disputes. “The issue comes up most when affiliated business arrangements aren’t properly disclosed,” says David Howell, executive vice president and chief information officer at McEnearney Associates Inc. in McLean, Va. “If there’s an affiliated business arrangement, you have to disclose that to your client.” Fair housing. Respondents ranked four fair-housing issues—race, national-origin discrimination, sexual-orientation discrimination (not included in federal fair-housing law but often prohibited by state statute or municipal ordinances), and advertising and target marketing—as the sources of a moderate number of disputes. In addition, two fair-housing cases are among the Legal Scan’s 10 largest verdicts. In a Florida case, McClandon v. Heathrow Land Co., an ­African American woman attempted to sell her unbuilt lot, which was part of a home owners association. She won a $2.4 million verdict against the HOA for refusing to approve the sale based on a build-within-two-years rule after the HOA failed to enforce the same rule against white owners. In Teen Challenge v. Metropolitan Government of Nashville & ­Davidson County, a local government amended its zoning code and denied a building permit to prevent a Christian substance abuse center from opening a rehab facility. A jury found the government’s actions violated religious and disability protections and awarded plaintiffs $967,995. Deceptive trade practices. Nearly 60 percent of Legal Scan respondents identified deceptive trade practices and consumer protection statutes as a source of a moderate level of current disputes. There have been nearly 100 new deceptive trade practices and fraud cases since the 2009 Legal Scan; in 75 percent of those cases, the real estate practitioner prevailed. Still, three of the Legal Scan’s 10 largest verdicts involved state deceptive trade practice laws, including the highest verdict, $2.7 million. In that case, SJW Property Commerce v. Southwest ­Pinnacle Properties, brokers who were hired to find shopping center tenants were found to have defrauded the center’s developer by competing against the developer in the purchase of another property, with the intent to sell the property to another of the broker’s clients. The Law of Distress A hefty 68 percent of Legal Scan respondents ranked property condition disclosure among their top three current legal issues. The most significant development in this area is the emergence of disputes arising from distressed sales. “The typical scenario is that right before or after a closing, something gets discovered that the buyers felt should have been disclosed,” says Bill Wright, broker-owner at the seven-office RE/MAX Executive Realty in Franklin, Mass. “All our [distressed] sales are as-is with no warranties, but there still needs to be full disclosure of any known material defects.” In Massachusetts, sellers aren’t required to complete property condition disclosure forms, and some sellers, on the advice of their attorney, refuse to do so, Wright says. Nonetheless, his company now requires sellers to complete the form before his company will list their home on the market. “Listings are hard to come by, without a doubt,” Wright says. “But when I’ve had to make a phone call to the seller, I’ve always been successful in getting that disclosure form. If someone refuses to fill one out, I see red flags.” Distressed property disputes aren’t limited to property condition issues, says Dax Watson, a real estate lawyer at Mack, Drucker & Watson in Phoenix. “What we’re seeing—and my guess is it’s the trend going forward—is a large number of complaints arising out of how sales associates handle ­distressed properties.” Watson says he’s seen two common types of problems arising from short sales, resulting in lawsuits: Frustrated sellers. “The listing agent negotiates with the bank but isn’t successful at getting the sale closed, and that becomes the sales associate’s fault,” Watson says. “Sometimes it’s because the associate wasn’t paying attention to the foreclosure sale date or other deadlines. But, even if they do nothing wrong, if they don’t finalize the transaction, sales­people are going to get blamed.” Giving legal or tax advice. Never advise sellers on issues outside of your expertise. “Short sale sellers will ask, ‘Is the bank or Uncle Sam going to come after me because this sale isn’t going to cover my mortgage?’ ” Watson says. “If salespeople answer that question, that’s a violation of their license. And if they get it wrong, that’s bad. We a see a lot of litigation related to that.” To help real estate practitioners in their state reduce their risk of being sued, a team of Arizona lawyers, regulators, and REALTORS® created a short sale advisory form. It lists government resources and Web sites on short sales and expressly states that salespeople can’t give legal or tax advice. The form also urges sellers to consult a lawyer or accountant. “Some sellers aren’t going to take that advice,” says Watson. “At least sales associates have given them that disclosure.” But even with the form, Watson says, real estate professionals dealing in distressed property sales have a hard time avoiding discussions of law. In a short sale, legal issues seem to permeate the deal, says Delphine Adams, an attorney at Dickenson, Peatman & Fogarty in Santa Rosa, Calif., who defends brokers and sales associates in litigation. “Sellers will ask: ‘Can we do a short sale instead of a foreclosure? What’s involved in a foreclosure? How long will it take?’ ” Adams says. “I tell sales associates that they are there to collect information, provide comps, and list and market the property. When it comes to sellers’ best option, they have to seek legal counsel. Salespeople can’t let their desire to help get in the way of their common sense.” Watson remains concerned about future legal challenges arising from short sales. “People are in a position of stress, and even if we see a successful ­closing, they may come back and say, ‘You should have gotten me a better deal,’” he says. “I do worry about that.” Good Ol’ Agency Still Causing Trouble With the exception of property condition disclosure, Legal Scan respondents ranked agency issues in their top three legal issues more than any other topic. “When it comes to dual and buyer agency, disclosure is a concept that sales associates are continually lax in dealing with,” says Ron Hardgrove, director of real estate for the Illinois Department of Financial and Professional Regulation, Division of Profes­sional Regulation in Springfield. “Sales associates have trouble saying, ‘This is who I am and what I do, and it’s a value to you.’ ” Practitioners are supposed to disclose agency relationships at their first substantive contact with customers. But consumers complain that they were never told about dual agency or about agency relationships in general, Hardgrove says. “Salespeople fumble that, but not necessarily with intent to deceive,” he says. Sylvia Golden Norris, a real estate lawyer in Sarasota, Fla., says her clients also struggle with agency. “A large part of my practice is handling agency representation cases for big insurance carriers,” Norris says. “When we discuss the claims we’re seeing, agency is always high up there, and breach of fiduciary duty comes into play.” She says that she doesn’t think licensees really understand what a fiduciary duty is and perhaps are unclear about the breadth of responsibility owed to clients. “Know your obligations; remember whom you represent, what you’re allowed to do, and what you’re not allowed to do; and put it all in writing so everybody’s clear,” she says. Here are two scenarios that illustrate fiduciary breaches arising from not following basic training for dual agency: Not staying true to the sellers. A salesperson acting as a dual agent agrees to return the earnest money check to buyers who promise to wire the funds into the brokerage account. As the transaction nears closing, the funds are still missing in action. “From an agency perspective, the sales associate is between a rock and a hard place,” Howell says. “The salesperson wanted to accommodate the buyers’ interest but didn’t protect sellers’ interest or do what the contract called for.” Dealing with multiple offers. A salesperson presents an offer to the sellers, who begin negotiating with the potential buyers. A second, higher offer comes in, and the salesperson fails to notify the first buyers, instead presenting the second offer to the sellers, who accept it. “In the last month, I’ve had five of these same issues,” says Stacy Berman, branch manager at Long & Foster, REALTORS®, in Washington, D.C. “The listing agent forgets one crucial step. It’s a breach of the listing agent’s fiduciary duty to the sellers, who could get a higher price through negotiations.” That scenario generated one of the 10 largest damages awards in the Legal Scan. In a Louisiana case, Markovich v. Prudential Gardner, REALTORS®, a salesperson accepted a second offer while a counteroffer from another buyer was pending without informing the original buyer, his salesperson, or the seller about the second offer. The salesperson’s breach of his fiduciary duty cost him nearly $745,000. Daniel Villazon, a lawyer in Celebration, Fla., who represents brokers and sales associates before the Florida Real Estate Commission, where he was once employed, has also seen blatant breaches of fiduciary duty. Salespeople who are also members of an investment company, he says, commonly represent sellers in a short sale. “The investment company buys the property and flips it,” Villazon says. “The salesperson knows there’s someone who’ll pay a higher price, and he’s taking the property at the lower price for himself. The law’s pretty clear. Salespeople must present all offers to the sellers, and they have a fiduciary duty to get the best price for the sellers.” Agency issues can overlap with distressed sale issues. “Sales associates don’t understand they’re fiduciaries of lenders when they’re representing lenders in REO sales,” Adams says. “They owe lenders the duties they owe individual buyers or sellers. They must communicate, put things in writing, and keep on top of disclosures required of lenders.” Who Gets the Commission? Commission disputes, including procuring cause, are another significant source of current disputes, according to 44 percent of Legal Scan respondents. “I’ve never seen so many commission disputes,” Villazon says of the current environment. The most common disputes involve procuring-cause battles in which buyers see a property with one salesperson and make an offer through another salesperson or directly with the seller. To demonstrate that they are the procuring cause of the sale and are entitled to a commission, practitioners must show that they initiated an unbroken chain of events that resulted in the deal between the buyer and the seller. There’s a simple way to keep disputes from happening, Villazon says. “You’d be amazed how many salespeople I ask, ‘Do you have a buyer representation agreement?’ and they don’t,” he says. Wright attributes the increase in commission disputes to salespeople sending buyers to open ­houses unaccompanied. “The buyers don’t sign in at the open house and indicate they’re working with another salesperson,” Wright says. “We strongly urge buyers’ representatives to e-mail the listing agent and say their buyers will be coming to the open house.” In addition, sales associates sometimes fail to ask potential buyers basic questions that would alleviate the problem, Norris says. Under the REALTORS® Code of Ethics, salespeople should ask buyers if they’re already represented by someone or if they’ve worked with another salesperson before, she says. New Laws in Town Perhaps the biggest lesson to be learned from the latest Legal Scan is that staying out of legal trouble requires brokers to be vigilant about the laws that govern their business. “We’re still in an economic crisis, and our gov­ernment is going to try to find solutions, which could have a huge impact on how properties are bought and sold,” says Watson. “Pay attention to the laws that are coming into

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Enforcing a Judgement for Possession in Missouri

Your first priority may be to evict the tenant from the leased premises, which you will be entitled to do if you obtained a judgment for possession. Caution: To avoid being counter-sued by the tenant for wrongful eviction, you must have a judgment for possession enforced through the court and Sheriff's Department – see the topic "Self Help Eviction Illegal in Missouri" on the Missouri Law page. If you got a judgment for possession, the court will send a notice to the tenant advising of the judgment and the need to vacate the premises; sometimes this prompts the tenant to move, but often it does not. If the tenant does not move voluntarily after a judgment for possession is entered, how soon the judgment can be enforced depends on how the judgment was obtained. • There is no waiting period to request enforcement of a judgment for possession if the judgment was entered by consent (because there is no right to appeal a consent judgment). • If the judgment was entered because the tenant defaulted or as the result of a trial, the tenant has until the 10th court business day after entry of the judgment to file a request for a new trial, and a request for enforcement of the judgment will not be honored by the court until the 11th court business day after judgment entry. Upon the client's request, Scott Law Firm will file the necessary request with the court to issue an order to the sheriff for the eviction (called an "execution for possession"). We charge a flat fee of $20 for this service, and a sheriff's fee of $30/defendant must also be paid. After an execution for possession has been requested, you must coordinate with the sheriff's office on the eviction date and time. It will take three to five days after the request for execution is submitted to the court clerk for the execution paperwork to get to the sheriff's office, so don't call right away. When you think enough time has passed, call the sheriff's office at 875-1111 (ask for the civil process clerk) to get the name of the assigned deputy and the deputy's cell phone number. Then call the deputy to arrange a mutually agreeable time for the eviction to take place. It is generally about 10 days from the date we file the request for execution for possession until the sheriff's deputy actually arrives on the scene to supervise the eviction. At the appointed time, you must either have a key to the premises, have a locksmith on hand, or be willing to force the door. You must provide the manpower to move the tenant's property to the curb. The function of the sheriff's deputy is to stand by to preserve peace – he or she will not help remove the tenant's possessions. You may want to have a locksmith on hand in any event to change the locks unless you are confident that the tenant has surrendered all keys or left them behind in the unit. So long as you have this eviction process supervised by the sheriff's deputy, you will not be liable for loss of or damage to the tenant's property removed from the premises so long as you are not grossly negligent or intentionally damage the tenant's property. Special Note: If some of the tenant's property is clearly labeled as belonging to a third party (such as a rent-to-own store), you have a duty to set aside such property in a secure place, notify the owner identified on the label in writing by certified mail, and allow that owner five days after receipt of the notice within which to retrieve the property. It is not your responsibility if scavengers take the tenant's property that has been moved to the curb; rather it is the tenant's responsibility to safeguard and retrieve the property. In Columbia, property left at the curb after the tenant and/or scavengers remove what they want will generally be hauled away by the city trash collectors, but you may need to inform the Solid Waste Division of the Columbia Public Works Department that there will be an unusual amount of trash to be picked up. Outside of Columbia, where there is no municipal solid waste collection system, you may need to make arrangements with a private hauler to remove the items after a reasonable period of time has elapsed for the tenant to retrieve them. In the unlikely event (at least in Boone County) that you have difficulty obtaining cooperation from the sheriff's office to enforce an eviction, a statutory provision adopted in 1997 may help. It provides that if the sheriff's office fails to execute an eviction within 7 days after receipt of an execution for possession, then within 60 days of the date of judgment, in the presence of a law enforcement officer, you may break and remove locks, enter and take possession of the premises, and remove the tenant's property from the premises, subject to these conditions: • Such action must be taken without breach of peace • The law enforcement officer must first be presented with a copy of the judgment and execution for possession • The law enforcement officer must acknowledge this in writing • The acknowledgment must be filed in court by the landlord within 5 days after the eviction is completed. • When an eviction is done this way, the landlord will not be liable for loss or damage to property left behind by the tenant unless the landlord's actions are negligent, willful or

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Pros and Cons of being a Real Estate Agent

Would you like a career with a stable and steady income, guaranteed days off and a five-day workweek? Then being a real estate agent is NOT the job for you. Real estate is an unpredictable industry where the stakes are high. You’re responsible for the biggest transaction of someone’s life, so there is a lot of pressure not to screw up. On the flip side, there’s nothing more rewarding than helping someone find their dream home, especially in a competitive housing market. If you’re thinking about becoming a real estate agent, consider the following: You’re your own boss Pro: You have control over your own hours and the freedom of time and movement. You’re not chained to a desk all day and there’s no time card to punch. It can feel very liberating. I tend to work from home, which gives me more time to spend with my family. Con: You’re working when everyone else is off. Most of your customers have 9-to-5 jobs, so they’ll likely sign a contract or do a walkthrough in the evening. And don’t forget those weekend open house tours. Planning a Saturday brunch with your friend? Forget it. Your new bestie is your client, especially on the weekends. You’re the expert Pro: As a real estate agent you know the ins and outs of your community. You can recite neighborhood comps in your sleep. You know what areas have the highest-ranking schools. And you have more specific knowledge, like whether that newly listed bungalow is in a flood plain, which would require costlier insurance. Your clients can rely on you to be their trusted advisor because you’re the expert. Con: You’re being trusted with someone’s life savings. The stakes are high and even a small error can cost your client thousands of dollars. For example, if you put an offer on a home and then miss a deadline for an inspection contingency, your client could be contractually obliged to buy the house or lose their earnest money if they decide to walk away. You wear a lot of hats Pro: As an agent, you’re asked to do a lot of things that may fall outside your purview. You’re an educator, a counselor, a babysitter, a financial advisor and a life coach. Real estate purchases and sales are often prompted by life changes, such as marriage or divorce. Buying or selling a home is an emotional experience, so it’s your job to counsel your clients and guide them in the right direction. The job requires a personality that is flexible and adaptable to the needs of the customer. As an agent, you gain life skills, such as multitasking and learning how to work with different personality types. And there’s nothing more rewarding than helping someone finally find the home they’ve always wanted. Con: You put out a lot of fires. Problems come up at the last minute, and you have to think and act quickly. The day before a closing, my colleague took his customers for a final walkthrough on their new home only to find water gushing down the hardwood stairs. (Apparently a plumber had left the water running.) When last-minute issues come up, your clients may panic. But you can’t panic, too. You have to be the stable presence that allays their fears and solves problems. Real estate is a stressful business, so if you can’t solve problems — without having a meltdown of your own — then it’s probably not the right job for you. Real estate is dynamic Pro: When the market is booming, all is great in the world. Real estate feels like the best job ever. You may be so flush with cash that you’re finding $100 bills in old jacket pockets. You’re busy and not worried about where the next lead is coming from. Con: The employment outlook, the stock market and the time of year all impact the housing market. During the slow season, the job starts to feel like a grind. Agents are all scrambling for the same clients and the competition is cutthroat. The job requires someone who can adapt quickly to a changing

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Being a landlord: Is it worth it?

by Ellen Cannon Published on October 18th, 2012 This is a guest post from Holly Johnson. Holly is a 32-year-old wife, mother of two, and frugal lifestyle enthusiast. She blogs about saving money, frugal habits, and whatever is on her mind. In 2006, my husband and I bought our first rental property. We put 10 percent down ($8,500) on a small brick ranch in the same Midwestern community that we call home. I had gotten my real estate license several years prior, so I had some basic knowledge to build from. We still weren’t 100 percent sure about what we were getting into, but we thought that it would be a great opportunity to build long-term wealth. We also hoped that the home would provide a passive inceome stream for us once it was paid off. A few months later, we converted our starter home into our second rental, and we bought and moved into our third home, where we currently reside. So, there we were – 27 years old, with two rental properties and high hopes that everything would turn out as planned. Another landlord we know gave us a copy of his lease to use, and we got lots of advice from other friends who own rental property. We placed ads in the local newspaper and signs in the yards of both homes. Luckily, they both rented out quickly for the amount that we asked without much effort. We were young, dumb, and in love…and we thought that we were real estate moguls! However, the truth was quite different than what we had pictured. Soon, we found out that owning rental property requires a lot of hard work, patience, and planning. Being a landlord wasn’t turning out to be the glamorous hobby that we envisioned at all. Still, we were excited about the future and moved forward in our new role as landlords. The good Owning rental property is a great concept for building wealth. On our end, it required a cash down payment and will require years of cash support via repairs, upkeep, and major component replacements. At the same time, someone else is paying off a property for us. Once the homes are paid off, we will have two additional income streams to add to our earnings from our 9-to-5 jobs. Even after paying for repairs, the cash flow will be significant and will (hopefully) help us reach an early retirement.   We often enjoy months at a time without thinking of the properties at all. Additionally, our properties generate a small amount of side income, though at this point we use the additional funds to accelerate their payoff. The bad There are times when it is smooth sailing, but that is not always the case. Owning rental property can be a ton of work. It takes patience and the ability to deal with many different personality types. Each time one of our properties becomes vacant, we have to place ads to find a new tenant. Sometimes searching for a new tenant can bring a lot of shenanigans. For instance, we have had people lie on their application about their employment or credit rating. Others have been completely dishonest about having a job at all. After checking one person’s application, we found that they had multiple evictions on their record. Obviously, we didn’t rent to that person! Even after you find a qualified tenant, sometimes problems will still occur. Some of our tenants have been habitually late paying their rent. We have a late-fee stipulation in our lease, but we have never charged anyone. We simply don’t need the added drama, although we are probably just perpetuating the problem. Still, as long as they pay within a few days I don’t get too worried about it. We just choose to pick our battles. The good news is that the majority of people we have rented to have been absolutely pleasant.  At the same time, just like with anything else in life, there are a few bad apples mixed in to give renters a bad name. Speaking of bad apples… The ugly Occasionally, being a landlord means living out your own landlord horror story. In 2010, one of our tenant families was nearing the end of their lease. We hadn’t been called recently and – therefore – hadn’t been at the house for many months. However, I happened to drive by one day and noticed that something about the house looked really strange. I drove by again and still couldn’t put my finger on it, but we would soon find out. A few weeks later, the tenant called and wanted to arrange a meeting. We arrived at the house and walked toward the front door. As we approached, I realized why it looked so weird: The picture window on the front of the house had been replaced with a different window! I knew that this wasn’t a good sign. Apparently, they had broken it somehow. Instead of calling us, they found a salvaged window of the same size and installed it themselves. The old and wooden frame didn’t match the newer vinyl replacement windows, so it stuck out like a sore thumb. Unfortunately, that was the least of our problems. Upon entering the house, we realized that the drywall in almost every room had giant holes punched in it. The carpet, which had been new when they moved in, was stained beyond recognition. All of the interior doors in the house were missing … gone. The refrigerator was missing. Someone had busted in the front door, and the entire door frame had been hastily and obviously glued back together. The house was an absolute disaster area, and the tenant had asked us for a meeting in order to resolve the issue. After some discussion, the tenant agreed that he would pay for some of the repairs to the home in order to avoid getting sued. We spent the next month and almost $7,000 repairing all of the damage. After another friendly meeting, we reached an agreement with the tenant and he repaid approximately $3,200 toward the damage that his family had caused. He didn’t pay for all of the repairs, but we were still satisfied and ready to put it behind us. Luckily, we reached an amicable agreement with our tenant and everything turned out fine. However, we lost more than just money. While most people were celebrating the holidays, we spent the entire month of December repairing that home. Did I mention that I was pregnant at the time? Still, I had to spend my days stressed out at work and my evenings crying and painting at the rental house. I had no choice. For close to a month, the situation consumed our whole lives. We were so glad when the home was finally fixed up and ready to be rented out again. Conclusion I think back to the days when we acquired our rental properties and wonder what we were thinking. Did we really think it would be easy? Were we that naive? Did we have a long-term plan at all? Luckily, I don’t worry about it too much. I don’t regret buying our properties, and I think it was one of the best decisions we have ever made. While being a landlord can be stressful and expensive, I believe that the future rewards will be worth it. Our two rental properties will be paid off in approximately 14 years…right in time for our two small children to begin college. We could use the rental income to pay for our children’s education. We could use it to pay for their living expenses while they study. If they go to college nearby, we could even provide them with a free place to live while they pursue their schooling. Once our kids finish school, the nearly $2,000 per month in rent will be ours to save or invest. The possibilities are endless. Owning property can be very hard.  It can test your patience and even your faith in humanity. Yet, I think it is definitely worth my time and effort. While it certainly isn’t as passive as we imagined, I believe that our properties were a great investment and have no regrets at all. Is it worth it? I say yes. 3 tips for first-time landlords 1. Use your intuition. We have been advised by others to never rent to anyone with bad credit. We feel differently and tend to rent to people with bad credit as long as they are up front about it. I’m glad that we listened to ourselves because our best renters have all had terrible credit. 2. Keep your house nice. Saving money is a good thing, but don’t do it at the cost of your renters! If something breaks, have it repaired quickly and correctly. Between tenants, make sure that your home is clean and in repair. A nice clean home will attract renters who will work hard to keep it that way. 3. Have a large cash cushion. Owning rental properties means that you have more liabilities. You have more than one air-conditioner, furnace, refrigerator, and roof to worry about. You need to have enough cash to cover the cost of replacing all of these items. If you don’t have a large enough cash cushion, you should probably wait to buy rental property until you

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

The incredible shrinking work space

The “open office” environment has become increasingly popular as many corporate clients have made a concerted effort to reduce their real estate footprint while increasing collaboration among employees. The traditional “walled” exterior offices with “pens” of cubicles for support and administrative staff have been replaced by open rows of work stations and glass walled break out rooms. This environment has given rise to many variations such as “hot desking” and “hoteling” which further reduce the corporate footprint in a mobile work environment. If you are contemplating reconfiguring your workplace, careful consideration should be given to many factors in order to assure a productive and healthy work environment for your employees.  We will discuss the types of open office environments and address the pros and cons of their respective configurations. The open office environment was conceived to reduce space and/or create a more collaborative environment amongst the workforce. Where space requirements were previously 175-200 s/f per employee, the open office reduces this by a third to a half of this space.  Assuming the open office reduces the space by a third, an employer with 500 employees would reduce its space requirements from 87,500-100,000 s/f to 58,333-66,667 s/f. At a cost per square foot of $75 for Class A space, (for example only), this equates to potential savings of almost $2.5 million per year. When considering a triple net lease, corporate operating expenses are also reduced.  Lower energy and operating cost expenditures are a direct result of the reduced footprint. Another added benefit of the open office is a more productive and collaborative work environment.  Some of the inefficiencies that contribute to employee down time result from: difficulty tracking down employees, waiting to obtain information and locating a space to meet. If configured properly, the open office can potentially remove the inefficiencies from the office environment. It is imperative that, as an employer, you perform a time-motion study and have a firm understanding of both the work habits and population of your current work environment before embarking on a transition to the open space configuration. Many innovative interior design/architectural firms have questionnaires that can be distributed to employees in order to get a census of how each employee allocates their time in the office and their preferences as to what type of setting best suits their interactions with other employees. In the traditional configuration, employees who typically occupied walled offices with doors are situated in a bench, workstation environment.  Their respective subordinates and/or administrative support are generally co-located so that an open team environment is created.  Each employee in this scenario is assigned a unique, dedicated workstation.  The workstation is composed of a phone, computer, chair and possibly a storage unit/file cabinet.  Office supplies and garbage cans may be shared by teams and neighbors. Some open office environments employ collaboration tables where workers in the team can gather in the immediate, open work environment.  Conference and/or private break out rooms are necessary so that meetings can be accomplished in privacy and where the ambient noise level would disturb neighboring employees.  Depending upon the configuration and space constraints of the work stations, the employees may each be assigned a locker to store their personal effects. A HOT DESK ENVIRONMENT ALLOWS SPACE SHARING. In an effort to “haphazardly” share office space in a mobile work environment, many employers have opted for “hot desking”. In the hot desk environment, nobody is assigned a dedicated work station.  The space is allocated on a “first come first serve” basis.  The hot desk employee is identified by his colleagues upon logging into his/her work station and/or desk phone with unique credentialing.  When an employee completes their “stationary” work tasks and returns to the field, the work station is available to another employee. It is the transient use of the same work station by multiple employees that presents struggles in providing a safe, clean and healthy work environment.  The implementation of this office environment requires a thorough analysis and time motion study of employee census data so that the space can sustain the needs of the workforce at all times. If adequate space is not allocated to address the maximum census threshold, both employee productivity and morale will drop precipitously.  This office arrangement lends itself particularly well to transient employee populations that are based in a single location. In a “hoteling” environment, space is reserved and is not allocated on a first come first serve basis. The hoteling configuration works well in a mobile work environment where employees have access to an on-line repository of available workstations which they can reserve based on their specific needs. If an employee, based in the D.C. area, will be in the NYC office for several days, they can reserve a work station for the duration of their stay.  Typically, the turnover of work stations in this configuration is not as frequent as in the hot desk environment. It was mentioned previously that studies should be conducted on the employee population in order to determine if the open office environment is suitable.  It is recommended that a carefully prepared questionnaire be distributed to determine the type of office environment that that is most conducive to common tasks that are performed each day. For instance, an employee’s work day may consist of group meetings, conference calls, “heads down” or solo work, collaborative meetings, field visits, private/one-on-one meetings, etc.  In addition, certain IT and infrastructure needs may be required to support the employees in these various environments.  The questionnaire solves two issues; it identifies the most common tasks and needs of the employee population and aslo provides a venue for consensus on the transition to the open office space. Regardless of the precautions taken in transforming the workplace, other challenges arise in this environment and must be mitigated. New ground rules must be established in the open office to assure that a productive, healthy and safe environment is maintained.  One of the obvious changes that arise when “the walls come down” is the ambient noise level in the workplace.  Group conversations, conference calls, the use of speaker phones, heated discussions, etc., should be conducted in the break out rooms so as not to disrupt your neighbors.  There is a fine line between healthy, open collaboration that is not disruptive to employees involved in “heads down” work and disruptive, open discussions that impede worker productivity. Signs that are similar to those found in libraries are often helpful in gently reminding your employees that it is important to maintain the noise level of the open environment.  In addition to noise levels, the open environment puts an added emphasis on maintaining a clean and healthy workplace.  This is highlighted in the hoteling and hot desk environment where work stations are shared.  Common touch points such as the keypad, phone, mouse and chair can transmit germs and bacteria if not cleaned between each use.  Employees who decide to eat at their desks pose an additional concern to the space. Employers have implemented many measures to combat some of the health concerns noted above.  Anti bacterial wipes are often distributed throughout the work stations in an effort to “self clean” a space prior to use.  Dedicated Day Matrons have been assigned to hot desk and hoteling environments to assure that work stations are properly cleaned and maintained between uses. Still other employers have employees use their own personal, portable keyboard, mouse and handset.  It is important to establish ground rules and procedures before making the transition to the open office so that employee expectations are set correctly.  These ground rules are as unique as each company that incorporates them and should be tailored based upon the expectations of the employees and the overall company culture. No matter how successful the transition to the open office may be, there will always be dissenters who resist change.  Employees may feel that they lose a sense of identity as they are now “portable” and do not have the ability to personalize their workplace.  The removal of family photos, favorite “nick knacks”, etc. render the office impersonal and sterile in many employees’ eyes. WORKERS ARE BEING ALLOCATED LESS AND LESS WORK SPACE HR should identify employees that they feel are likely to have a negative opinion of the transition and do their best to mitigate and/or “accommodate” their needs.  Many employers provide the employees with a community bulletin board where they can personalize their respective work environment.  The bulletin board provides a venue to post new baby pictures, articles of interest, thank you cards, etc. and can go a long way in creating a sense of belonging to the disgruntled employee. As CRE facility managers are tasked with realizing increased savings from their portfolios, many of them will be considering transitioning the workforce to the open office environment. The potential for reduced footprints and the commensurate operational savings represent some of the most dramatic cost reduction measures available. These savings can be recognized but proper due diligence must be performed in order to assure a seamless transition and justify the cost-benefit paradigm this transformation

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Disclosures in A Residential Real Estate Transaction

Disclosing Defects When Selling a Home When a person is selling a home, they are generally obligated to disclose any material defects or problems in the property. While laws covering full disclosure and what constitutes a “material defect” may vary from state to state, the seller is typically obliged to inform the buyer of any defects that may cause injury or that would affect the buyer’s decisions to purchase the home or not. However, a seller is not required to disclose every single thing that is wrong with the home. Minor defects such, as sticky doors or small cracks in the wall need not be disclosed, especially if they are not hidden from the buyer. What Must Be Listed in a Disclosure Form? Many states follow the rule of “caveat emptor” or “buyer beware.” This rule states that the buyer assumes the risk of purchasing a home that contains defects. However, in addition to providing information regarding the sale of a home, such as price, age of the home, number of bedrooms or other relevant information, a seller has an affirmative duty to disclose material and dangerous defects. Some of the more major problems that a seller needs to disclose include: Leaks in the ceiling or roof Basement flooding Toxic conditions such as the presence of lead, mold, radon or asbestos Whether the home is exposed to dangerous natural conditions such as a flood zone or an earthquake fault line Faulty electrical wiring The presence of pests such as termites, insects, or rodents Mechanical problems such as heating, air condition, or other problematic appliances Deaths on the premises In addition to the duty to disclose, a seller may not engage in active concealment of defects in the property. For example, they may not paint over faulty wiring in order to conceal the problem from a potential buyer. Finally, brand new homes are subject to an implied warranty of fitness, which means that they should be sold in a condition that is generally suitable for habitation. Who Is Required to Make a Disclosure of Defects in a Real Estate Transaction? As mentioned, the seller’s duty to disclose often depends on the seriousness of the defect. The seller is basically required to disclose material, substantial defects that would affect the buyer’s decision to purchase the property. If a real estate broker or agent are representing the seller, the real estate professional will also have a duty to disclose defects. Real estate agents and brokers are held to higher standards than the average homeowner. In most states, if a real estate broker or agent knows of any major defects in the property, they must disclose it to a potential buyer even if the seller is not required to do so. What If I Was Not Informed of a Serious Defect? In order to protect yourself, you may consider having the home separately appraised and thoroughly examined for defects before purchasing the home. If you will have the home inspected, be sure to hire an independent professional who is not working in tandem with the seller or their real estate agent. If you have purchased a home and then later discovered a major defect, you may be able to recover damages. You may be able to bring a claim against the seller, or against a real estate professional who failed to make the disclosure. You may be entitled to have the seller or other party pay for repairs of the dangerous condition. If you have been injured by the dangerous defect, you may be able to recover losses for your injuries. Be sure to document any instances of injury using medical records and bills. You may also wish to take photographs or video footage of the dangerous condition so that you have a record of the defect before it is

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

How are property taxes calculated?

By Chris Seabury  | Every year, millions of homeowners deal with property taxes. In most situations, when the tax bill comes, if it seems reasonable, most people would pay it and move on with their lives. That being said, to make sure that you are not being overcharged on property taxes, it's important to understand how they are calculated and how property values are determined. Determining Property Taxes The property taxes that are being accumulated by the states and the federal governments serve as a major source of income. In most cases, these taxes come in the form of a percentage, where many different councils, boards and legislatures will decide the appropriate amount of tax revenue that needs to be raised. They will have a hearing on the budget to decide the amount of money that will be needed so that the government can cover its expenses with no financial challenges in the year ahead. The services that are normally funded by property taxes include: education, emergency services, transportation, libraries and parks as well as different recreational activities. Calculating Property Taxes The way that property taxes are calculated would be through the use of the mill levy and the assessed property value. Mill Levy or Millage Tax The mill levy is simply the tax rate levied on your property value, with one mill representing one tenth of one cent. So, for $1,000 of assessed property value, one mill would be equal to one dollar. Tax levies for each tax jurisdiction in an area are calculated separately and then all the levies are added together to determine the total mill rate for an entire region. Generally, the city, county and school district each have the power to levy against the properties in their boundaries. So each entity would calculate its required mill levy and it would all be tallied up to equal the total mill levy. As an example of a mill levy calculation, suppose the total assessed property value in a county is $100,000,000, and the county decides it needs $1,000,000 in tax revenues to run the county. The mill levy would simply be $1,000,000 divided by $100,000,000, and equals 1%. Now, suppose the city and school district calculated a mill levy of 0.5% and 3% respectively. The total mill levy for the region would be 4.5% (1+0.5+3) or 45 mills. Assessed Value of Property Property taxes are calculated by taking the mill levy, like we've determined in the previous example, and multiplying it by the assessed value of your property. The assessed value is a yearly estimation performed to decide the reasonable market value for your home based upon prevailing local real estate market conditions. The assessor will review all relevant information surrounding your property to make an estimate of the overall value. To provide you with the most accurate assessment, the assessor must look at what similar properties are selling for under the current market conditions, how much the replacement costs for the property would be, the maintenance costs for the property owner, if any improvements were completed, the amount of income you are making from the property, and the amount of interest charged to purchase or construct a property comparable to yours. After the assessor has this information, there are three ways that your property will be valued: Performing a Sales Evaluation The assessor will value your property based on similar sales which have taken place in the area. As this method is being used it is important to look at overpricing, underpricing, the location of the property and the overall state of the property. The Cost Method This is when the assessor determines your property value based on how much it would cost to replace your property. If the property is not new, assessors determine the amount of depreciation that has taken place and how much the property would be worth if it was empty. The Income Method This method is based on how much income you would make from the property if it were rented. Using this method, the assessor must be sure to consider factors such as: costs for maintaining the property, cost to manage the property, insurance, taxes and the return that you could reasonably anticipate from the property. After determining market value for the property, the assessed value will be determined by taking the actual value of the property and multiplying it by an assessment rate. The assessment rate is a uniform percentage and varies by tax jurisdiction, and could be any percentage below 100%. After getting the assessed value, it is multiplied by the mill levy to determine your taxes due. For example, suppose the assessor determines your property value is $500,000 and the assessment rate is 8%. The assessed value would be $40,000. Now taking the mill levy of 4.5% we calculated previously, the tax due would be $1,800 ($40,000 x 4.5%). The Bottom Line Property taxes can be very confusing for many homeowners. To ensure that you are paying the right amount in property tax, you must understand how the property is valued and how the taxes are

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Is your neighbor or someone else stalking you? If so what can you do?

What if you live in Missouri and have a next door neighbor that has made living next to a living hell?.  Such as spotlights being placed on the house so that at night the spotlight shines brightly all night, or verbal threats of violence repeatedly when outside your house.  Or calling the police and making false police reports.  Or your dog mysteriously dying.  What is the remedy in this situation? The most common remedy is to obtain an order of protection.  Here are the definitions in Missouri that relate to orders of protection: Pay particular attention to (f) 14 - stalking. Definitions. 455.010. As used in this chapter, unless the context clearly indicates otherwise, the following terms shall mean: (1) "Abuse" includes but is not limited to the occurrence of any of the following acts, attempts or threats against a person who may be protected pursuant to this chapter, except abuse shall not include abuse inflicted on a child by accidental means by an adult household member or discipline of a child, including spanking, in a reasonable manner: (a) "Assault", purposely or knowingly placing or attempting to place another in fear of physical harm; (b) "Battery", purposely or knowingly causing physical harm to another with or without a deadly weapon; (c) "Coercion", compelling another by force or threat of force to engage in conduct from which the latter has a right to abstain or to abstain from conduct in which the person has a right to engage; (d) "Harassment", engaging in a purposeful or knowing course of conduct involving more than one incident that alarms or causes distress to an adult or child and serves no legitimate purpose. The course of conduct must be such as would cause a reasonable adult or child to suffer substantial emotional distress and must actually cause substantial emotional distress to the petitioner or child. Such conduct might include, but is not limited to: a. Following another about in a public place or places; b. Peering in the window or lingering outside the residence of another; but does not include constitutionally protected activity; (e) "Sexual assault", causing or attempting to cause another to engage involuntarily in any sexual act by force, threat of force, duress, or without that person's consent; (f) "Unlawful imprisonment", holding, confining, detaining or abducting another person against that person's will; (2) "Adult", any person seventeen years of age or older or otherwise emancipated; (3) "Child", any person under seventeen years of age unless otherwise emancipated; (4) "Court", the circuit or associate circuit judge or a family court commissioner; (5) "Domestic violence", abuse or stalking committed by a family or household member, as such terms are defined in this section; (6) "Ex parte order of protection", an order of protection issued by the court before the respondent has received notice of the petition or an opportunity to be heard on it; (7) "Family" or "household member", spouses, former spouses, any person related by blood or marriage, persons who are presently residing together or have resided together in the past, any person who is or has been in a continuing social relationship of a romantic or intimate nature with the victim, and anyone who has a child in common regardless of whether they have been married or have resided together at any time; (8) "Full order of protection", an order of protection issued after a hearing on the record where the respondent has received notice of the proceedings and has had an opportunity to be heard; (9) "Order of protection", either an ex parte order of protection or a full order of protection; (10) "Pending", exists or for which a hearing date has been set; (11) "Petitioner", a family or household member who has been a victim of domestic violence, or any person who has been the victim of stalking or sexual assault, or a person filing on behalf of a child pursuant to section 455.503 who has filed a verified petition pursuant to the provisions of section 455.020 or section455.505; (12) "Respondent", the family or household member alleged to have committed an act of domestic violence, or person alleged to have committed an act of stalking or sexual assault, against whom a verified petition has been filed or a person served on behalf of a child pursuant to section 455.503; (13) "Sexual assault", as defined under subdivision (1) of this section; (14) "Stalking" is when any person purposely engages in an unwanted course of conduct that causes alarm to another person, or a person who resides together in the same household with the person seeking the order of protection when it is reasonable in that person's situation to have been alarmed by the conduct. As used in this subdivision: (a) "Alarm" means to cause fear of danger of physical harm; and (b) "Course of conduct" means a pattern of conduct composed of two or more acts over a period of time, however short, that serves no legitimate purpose. Such conduct may include, but is not limited to, following the other person or unwanted communication or unwanted contact. (L. 1980 S.B. 524 § 1, A.L. 1986 S.B. 450, A.L. 1989 S.B. 420, A.L. 1993 H.B. 476 & 194, A.L. 1995 S.B. 174, A.L. 1996 H.B. 1619, A.L. 2000 H.B. 1677, et al., A.L. 2004 S.B. 1211, A.L. 2009 H.B. 481, A.L. 2011 S.B. 320, A.L. 2013 H.B. 215, A.L. 2015 S.B. 321 merged with S.B.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Here is a very good link for what sellers should do first before hiring a real estate agent

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Right to Marry Ruling: How it Affects Beneficiary Rights

by John Paul Ruiz, QKA, CISP, Director of Professional Development on Jun 29, 2014 On June 26, 2015, the U.S. Supreme Court lifted the ban on same sex-marriages in the 13 states that still had them, passing a federal legislation to offer marriage licenses to same-sex couples. This validation of same-sex marriage in all 50 states may affect the beneficiary designations of your retirement plans. What does this new ruling mean for your retirement plan? What the Law Was Federal tax code provides the tax incentives found in retirement plans: tax deferment on earnings, potential tax deduction for contributions or tax-free distribution of earnings. Some of these benefits are passed on to the beneficiaries who inherit these accounts.  Spouse beneficiaries can treat the account of a deceased spouse as their own, both spouses enjoy the benefit of the savings during their retirement years. Non-spouse beneficiaries cannot treat the account as their own. However, they do receive the tax benefit upon distribution that is associated with the type of IRA they inherit (i.e.,Traditional or Roth). The protection of asset entitlement is another issue that is determined at the state level. Some states, who have adopted community or marital property law, require the spouse of a retirement account owner to waive their rights if the retirement account owner chooses to name another person or persons as the beneficiary in their account. When the Supreme Court overturned key provisions of the Defense of Marriage Act, the federal government deferred to the states to determine the legality of same-sex marriages. This meant state laws determined whether a same-sex partner was a spouse or a non-spouse for purposes of beneficiary’s options upon death and whether the same-sex partner has a legal claim to assets when the account holder names someone else as a beneficiary. What Has Changed Now that the Supreme Court has lifted the ban on same-sex marriages in all states, no state may impose its laws to determine whether a same-sex couple’s marriage is legal or not. This gives all spouses, heterosexual and same-sex marriages, the right to treatinherited IRAs as their own.  When it comes to marital and community property states, depending on where you live, may still require spousal consent to name someone other than a spouse as a beneficiary, which now is applicable to same-sex married couples. What You Need to Do Review your beneficiary designation forms. All spouses can now treat their spouse’s retirement plan as their own if named as a beneficiary. This will allow the beneficiary spouse to prolong the tax deferment of assets under the retirement plan. In community property states, retirement account holders may need spousal consent to name someone else besides spouse as their beneficiary. Consult with a competent estate planner or legal advisor to make sure that proper planning is in place to maximize federal and state estate tax

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Overview of real estate markets

The main participants in real estate markets are: Owner/user: These people are both owners and tenants. They purchase houses or commercial property as an investment and also to live in or utilize as a business. Owner: These people are pure investors. They do not consume the real estate that they purchase. Typically they rent out or lease the property to someone else. Renter: These people are pure consumers. Developers: These people prepare raw land for building, which results in new products for the market. Renovators: These people supply refurbished buildings to the market. Facilitators: This group includes banks, real estate brokers, lawyers, and others that facilitate the purchase and sale of real estate. The owner/user, owner, and renter form the demand side of the market, while the developers and renovators form the supply side. In order to apply simple supply and demand analysis to real estate markets, a number of modifications need to be made to standard microeconomic assumptions and procedures. In particular, the unique characteristics of the real estate market must be accommodated. These characteristics include: Durability. Real estate is durable. A building can last for decades or even centuries, and the land underneath it is practically indestructible. Because of this, real estate markets are modeled as astock/flow market. About 98% of supply consists of the stock of existing houses, while about 2% consists of the flow of new development. The stock of real estate supply in any period is determined by the existing stock in the previous period, the rate of deterioration of the existing stock, the rate of renovation of the existing stock, and the flow of new development in the current period. The effect of real estate market adjustments tend to be mitigated by the relatively large stock of existing buildings. Heterogeneity. Every unit of real estate is unique in terms of its location, the building, and its financing. This makes pricing difficult, increases search costs, creates information asymmetry, and greatly restricts substitutability. To get around this problem, economists, beginning with Muth (1960), define supply in terms of service units; that is, any physical unit can be deconstructed into the services that it provides. Olsen (1969) describes these units of housing services as an unobservable theoretical construct. Housing stock depreciates, making it qualitatively different from new buildings. The market-equilibrating process operates across multiple quality levels. Further, the real estate market is typically divided into residential, commercial, and industrial segments. It can also be further divided into subcategories like recreational, income-generating, historical or protected, and the like. High transaction costs. Buying and/or moving into a home costs much more than most types of transactions. The costs include search costs, real estate fees, moving costs, legal fees, land transfer taxes, and deed registration fees. Transaction costs for the seller typically range between 1.5% and 6% of the purchase price. In some countries in continental Europe, transaction costs for both buyer and seller can range between 15% and 20%. Long time delays. The market adjustment process is subject to time delays due to the length of time it takes to finance, design, and construct new supply and also due to the relatively slow rate of change of demand. Because of these lags, there is great potential for disequilibrium in the short run. Adjustment mechanisms tend to be slow relative to more fluid markets. Both an investment good and a consumption good. Real estate can be purchased with the expectation of attaining a return (an investment good), with the intention of using it (a consumption good), or both. These functions may be separated (with market participants concentrating on one or the other function) or combined (in the case of the person that lives in a house that they own). This dual nature of the good means that it is not uncommon for people to over-invest in real estate—that is, to invest more money in an asset than it is worth on the open market. Immobility. Real estate is locationally immobile (save for mobile homes, but the land underneath them is still immobile). Consumers come to the good rather than the good going to the consumer. Because of this, there can be no physical marketplace. This spatial fixity means that market adjustment must occur by people moving to dwelling units, rather than the movement of the goods. For example, if tastes change and more people demand suburban houses, people must find housing in the suburbs, because it is impossible to bring their existing house and lot to the suburb (even a mobile home owner, who could move the house, must still find a new lot). Spatial fixity combined with the close proximity of housing units in urban areas suggest the potential for externalities inherent in a given

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Avoid Common Title Problems By Better Understanding the Different Types of Ownership

We often hear from taxpayers -- all well-intentioned -- who lost or seriously compromised their valuable exemptions or Save Our Homes (SOH) protection when they made “do-it-yourself” changes to a deed. While we always recommend you seek professional advice from a qualified attorney when making title changes, the information below should help you better understand the key differences between the most common forms of home ownership if you still decide to risk making these changes on your own. Keep in mind these are VERY simplified explanations of some rather complicated legal issues. There are many variations (and legal and tax consequences) of ownership types, but this list should give you a basic understanding of these important concepts: TENANTS IN COMMON (TIC): Each of the owners owns a share of the property, which may be sold separately. Florida law presumes equal ownership interests, unless specific percentages are written in the recorded deed. Example:“To Bill Johnson and Mary Smith” would give Bill and Mary ownership of 50% each. IMPORTANT: Unless a different type of ownership (see below) is specified in the deed, law ALWAYS defaults the co-ownership to TIC. Under TIC, if only one of two owners files for homestead, the property would get 100% of the $25,000 homestead exemption -- but only 50% (the amount owned by the one who filed) of the assessed value is protected by the SOH cap. TENANTS BY THE ENTIRETY (TBTE): This applies only to a husband and wife, who should be identified in the deed as “husband and wife” or “a married couple.” This TBTE status -- which is automatic when that language is stated -- gives each spouse overlapping 100% interests, full exemption coverage (when one files), and rights of survivorship. This interest automatically converts to TIC status when the divorce is finalized (unless or until the property is transferred to one spouse pursuant to the divorce settlement or court order). Also, if co-owners marry after previously purchasing a property as single persons, please let us know about the marriage (i.e., copy of marriage certificate) so we can update our records. JOINT TENANTS WITH RIGHT OF SURVIVORSHIP (JTRS): This gives two or more unmarried co-owners legal rights to property largely similar to those granted to TBTE owners. Example: “To Mark Wright and Bill Johnson, as joint tenants with right of survivorship.” The JTRS co-owners would each own overlapping 100% interests -- and any one owner filing for homestead would qualify for 100% of the homestead and SOH coverage. When a JTRS co-owner dies, all remaining title interests are automatically divided between the living JTRS co-owner(s). We strongly urge all JTRS owners living on the property to file for homestead. LIFE ESTATE (LE): This is the present interest to use a property for life, but leaves the remainder interest (i.e., title after the life estate holder dies) to one or more future owners. Example: “To Mary Smith for her life, with the remainder to her sons Bill Johnson and Steve Johnson.”Mary (the life estate holder) is the only person eligible for homestead during her lifetime. It is also possible to create joint life estates allowing more than one person to have full rights to use the property at the same time (example: an elderly couple retain joint life estates before leaving the remainder to their child). IMPORTANT: There are different ways to create life estates -- some allow for more flexibility than others as to a future sale of the property -- so discuss this with an attorney to learn more. REMAINDER: This is the future interest that follows a life estate. Example: “To Mary Smith for her life, with the remainder to Bill Johnson.” Bill does not have any present right to possess the property until Mary dies. So long as Mary (the life estate holder) is alive, Bill (the remainder interest) is not eligible to claim homestead on the property. This is true as a matter of law even if Bill is living on the property with Mary’s permission during her lifetime. TRUSTS: Deeding ownership of a homesteaded property into a trust (revocable, irrevocable, land trust, etc.) is another common way for maintaining homestead on a property while avoiding probate and taking maximum advantage of federal tax laws. However, as these are rather complex to establish correctly -- in that the trust must be formally created before the property ownership is deeded to the trust -- speak with your attorney and/or accountant instead of attempting to do this on your own. PARTNERSHIPS, LLCs and CORPORATIONS: You will LOSE your homestead exemption (or be unable to qualify for homestead) if your property is deeded to a partnership, LLC or other corporation (including a Subchapter-S corporation). This is true even if you are the sole partner or shareholder in the entity. Courts have ruled that these entities are simply not eligible to qualify for homestead. See: Prewitt Management Corp. v. Nikolits, 795 So.2d 1001 (Florida 4th District Court of Appeals,

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Joint Tenancy

What is a Joint Tenancy? Joint tenancy is a form of ownership by two or more individuals together. It differs from other types of co-ownership in that the surviving joint tenant immediately becomes the owner of the whole property upon the death of the other joint tenant. This is called a “right of survivorship.” A joint tenancy between a husband and wife is generally known as a tenancy by the entirety. Tenancy by the entirety has some different characteristics than other joint tenancies, such as the inability of one joint tenant to sever the ownership. What is a Tenancy in Common? A tenancy in common is another form of co-ownership. It is the ownership of an asset by two or more individuals together, but without the rights of survivorship that are found in a joint tenancy. Thus, on the death of one co-owner, his or her interest will not pass to the surviving owner or owners but will pass as an individual share according to his or her will or, if there is no will, by the law determining heirs. How is a Joint Tenancy Created, and What Property Can Be So Held? State law controls the creation of a joint tenancy in both real and personal property (real property is land and attachments to the land, personal property is generally all other types of property). For transfers to two or more persons who are not husband and wife, the deed or conveyance must expressly state an intention to create a joint tenancy by noting that the property will be held not as tenants in common but as joint tenants with rights of survivorship. For transfers of personal property, such as stock certificates, the simple letters “JTWRS” may be used to designate a joint tenancy with right of survivorship. A joint tenancy can be created in almost any type of property. Different types of jointly held property have different characteristics. Either joint tenant of a bank account usually may withdraw the whole amount on deposit, depending upon the account agreement. The signatures of all joint tenants are generally required in order to transfer or sell bonds and corporate stocks. All joint tenants, and their spouses, must sign deeds and contracts to transfer or sell real estate. 1117 joint tenancy 18 Is a Joint Tenancy an Adequate Substitute for a Will? No! Only with a will can a person be certain that his or her assets will pass as intended. A will, properly written and executed, applies to all of the property of the maker for which he or she has not otherwise provided. Almost everyone should have a will, even though he or she may have provided for property to pass by other methods. A joint tenancy is not a comprehensive method of transfer and applies only to the specific property described in the instrument creating the joint tenancy. Furthermore, while a joint tenancy does provide for the surviving owner to own the property upon the death of one of the joint tenants, no provisions are included for the disposition of the property upon the death of the survivor. In addition, the joint tenant who is intended to be the survivor may die first, frustrating the intent of the parties. A properly structured will would address these and many other of life’s uncertainties. A joint tenancy is a present transfer of an actual interest in the property. Except for joint bank accounts, it cannot be revoked or reversed without the joint tenant’s cooperation, and for real property the cooperation of the joint tenant’s spouse is also required. Creating a joint tenancy with someone other than your spouse may result in a gift being subject to gift tax. A will is revocable and may be changed as circumstances change. It is the cornerstone of an effective estate plan. Will a Joint Tenancy Avoid Probate Expenses? Joint holdings may reduce probate involvement and expenses. However, while joint assets may avoid the formal estate administration that is required when property passes under a will, other costs may occur. Steps must be taken to reregister the assets in the survivor’s name and to comply with the various state and federal tax requirements. The process can be time-consuming and expensive. In addition, placing assets in joint names with another, especially someone other than a spouse, creates uncertainties and exposes the assets to the disadvantages discussed below. What Are Some Advantages of Joint Tenancy? Some of the advantages are: • Property passes to the survivor without the need for probate administration. Generally, only a death certificate is needed to establish the survivor’s ownership in the property. • Where the first to die wishes all of his or her property to pass outright to a surviving spouse, joint ownership may afford a convenient and economical way to pass title to the particular property so owned. For example, it may be advantageous for a summer home located in another state to be owned in joint names with the right of survivorship. This way, upon the death of either joint tenant, the survivor will own the home 1119 outright and the need for probate administration in the other state will be avoided. • The family residence is often held in joint names, especially where the surviving spouse is likely to continue to use the property as his or her home. In that case, joint ownership may be an appropriate method of ensuring continuity of ownership. • A joint household checking or savings account can offer a married couple both convenience and flexibility, as it makes funds immediately available in the event one spouse dies or becomes incapacitated. What Are Some Disadvantages of Joint Tenancy? A few of the disadvantages are: • The original owner of the property who subsequently placed it in a joint tenancy is no longer the sole owner. • If the original owner later desires to dispose of the property, in many cases he or she cannot sell his or her partial interest unless the other joint tenants agree and cooperate. • If both joint owners die in a common accident or disaster, and it cannot be determined who died first, the legal ownership of the property may be uncertain, resulting in additional legal costs. • If a conservator is appointed for the original owner, the probate court’s authority may be required to use the asset for that owner, increasing the cost of the conservatorship. • If minors or legally disabled adults are involved, costly and cumbersome conservatorship proceedings may be necessary. • An always present danger in joint tenancy arrangements is that the coowners may disagree. If the co-owners do disagree, a costly and time consuming lawsuit may be required for the original owner to exercise his or her rights regarding the asset. • If an asset is owned jointly prior to marriage, the original owner may lose part of the asset in a divorce. • A jointly owned asset will be subject to judgments against every owner and may be lost in the bankruptcy of any owner. • The financial management advantages of trusts are eliminated, especially where aged parents or minor children are involved, as are the possible tax savings available to trusts and estates. • Assets may not be available to the executor of a deceased joint owner’s estate. In such a situation, it may then be necessary to sell other assets in order to meet tax payments or other cash needs in order to settle the affairs of the decedent. 20 What Tax Consequences Could Result From the Creation of a Joint Tenancy? Serious tax disadvantages may result from the use of property held as a joint tenancy. If all the property owned at death – including joint property, life insurance and employee benefits – exceeds a certain exemption limit, the estate may be subject to federal and state estate taxes. Estate taxes are not avoided by joint tenancy. In many instances, all or part of jointly held property may be includable in the estate of the first joint tenant to die. An asset owned jointly may retain part of its original cost basis. Upon the sale of the asset after the death of one owner, the capital gains taxes may be significantly increased. Transferring property into joint tenancy may also result in a gift tax. While recent changes in federal tax laws have to a large extent minimized the gift tax consequences of joint ownership, especially between spouses, effective tax planning for large estates can be greatly complicated by the use of joint property arrangements. May Safe Deposit Boxes Be Jointly Held? Under Missouri statutes, safe deposit boxes may be jointly rented. This type of registration must be specifically noted in the rental agreement with the bank or safe deposit box company. With a jointly rented safe deposit box, the surviving joint tenant will have immediate access to the box upon the death of the other joint tenant. However, even though a safe deposit box is rented in joint names, that alone does not mean that all of the assets contained in the box are also jointly owned. As a result, joint ownership of a safe deposit box may complicate matters rather than making them simpler. Should I Use a Joint Account for Help in Writing Checks? No. Some people will place a child or someone else on a checking account as a joint tenant to help them write checks to assure that bills are paid in the event the original owner is unable to do so. Upon the original owner’s death, the entire account will belong to the other person; other heirs will not share in it. Oral understandings about what is to be done with the account balance upon death are frequently misunderstood and often forgotten. Furthermore, the surviving joint tenant may be subject to gift tax liability if he or she attempts to share the funds in the account with other intended heirs after the original owner’s death. Anyone with a concern or needing help in this area should see their lawyer about a durable power of attorney or place a trusted person on the account as “agent.” Alternatives to Joint Tenancy That Also Avoid Probate Missouri’s Pay On Death (“POD”), Transfer On Death (“TOD”) and Beneficiary Deed statutes provide for the disposition of many types of property at the time of 1121 death without probate proceedings and without some of the disadvantages of joint tenancies. Under these statutes, the persons who are to receive the property on the death of the original owner may be designated as beneficiaries for accounts in financial institutions, securities, real estate and other instruments of title. POD and TOD beneficiary designations and beneficiary deeds are revocable by the owner, the account or property passes outside of probate, and consent of the beneficiary to mortgage or sell the property is not required. As no present interest is transferred, no gift tax liability is incurred. The arrangement is preferable to joint tenancy in these respects. However, these designations are subject to some of the same disadvantages as jointly owned property; they are not intended to be an adequate substitute for a will or trust, since succession among intended beneficiaries usually cannot be adequately described in detail. A person should not open POD accounts or execute transfer on death instructions or beneficiary deeds without first consulting an estate planning attorney. How Can I Tell Whether or Not a Joint Tenancy is Advisable for Me? Your lawyer can advise you after he or she has been made aware of all of the facts concerning both your property and your family situation. The cost of such advice is usually quite small compared to the savings that may result and the pitfalls that can be avoided. Due to continual changes in the tax laws, the need for legal counsel is essential in estate planning. Your lawyer can help you determine what property should be owned as joint tenants or as tenants by the entireties, when POD or TOD beneficiary designations might be useful for specific gifts, when a trust might be an appropriate part of your estate plan, and what property should pass under a will and be administered in your estate. If a gift to a minor is involved, your lawyer also can tell you about the Missouri Transfers to Minors Law. In 2011, the Missouri Legislature created a trust specifically for tenancy by the entirety property called a Qualified Spousal Trust. Please talk to your legal advisor about the benefits of such a

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Interspousal Transfers Versus Quit Claim Deeds

SEARC by Kristina Otterstrom A deed is a written document that legally transfers property from one person or entity to another. Through a deed, one spouse can give his or her own property to the other, and the property becomes the receiving spouse’s separate property. There are many ways to accomplish a property transfer, but two of the most common ways to transfer property in a divorce are through an interspousal transfer deed or quit claim deed. What is an Interspousal Transfer Deed? An "interspousal transfer deed" transfers title (ownership) between a married couple. A gift given by one spouse to the other during the marriage is considered "separate" (owned separately), not "marital" (mutually-owned) property. This is important because through a deed, marital property can become separate property or vice versa, which is an important distinction in a divorce. An interspousal transfer deed can be useful when one spouse has poor credit, and the couple wants to refinance their home. To receive a better mortgage interest rate, the couple may decide to use an interspousal transfer deed to transfer title to their home to the spouse with better credit. Some other examples of circumstances where a couple might use an interspousal transfer deed include the following: one spouse wants to add the other spouse to title of separate property the couple wants to transfer title to property as a result of divorce settlement, and where one spouse must be removed from title for financial or legal reasons. What is a Quit Claim Deed? A "quit claim deed" transfers whatever interest one spouse has in property to the other spouse. An important difference between an interspousal transfer deed and a quit claim deed is that a quit claim comes with no guarantees or promises about property ownership. Some examples of circumstances where a couple might use a quit claim deed include: to transfer title to property as a result of divorce settlement, and where one spouse wants to give up interest in property. When to Use an Interspousal Transfer Deed vs. Quit Claim Deed Interspousal transfer deeds can be used to avoid tax liability when transferring property. When title to property is transferred, the county may impose a transfer tax and may reassess the value of the property which could result in higher property taxes. However, an interspousal transfer deed is a special kind of transfer that is exempt from transfer taxes and ultimately a cost-effective method of transferring property between spouses. Quit claim deeds are very simple and use a form that is easy to find online or at office supply stores. However, with a quit claim deed one spouse may give up rights to certain property but not necessarily liability for any mortgage or lien on the property. A problem could arise if one spouse is awarded the marital home in a divorce and the other spouse uses a quit claim rather than interspousal transfer deed to transfer his or her interest. The spouse that gives up his or her interest to the house may still be responsible for one-half of the mortgage debt because their liability can’t be transferred through a Quit Claim Deed. Preparing a Deed Whichever deed you decide to use, it’s important to make sure that the deed is completed and recorded correctly to be valid. The deed should be completed and must: be in writing list the spouses involved in the transfer identify the property being transferred by address and/or legal description be signed before a notary public, and be recorded in the county where the property is located. For more specific information regarding the use of interspousal transfer deeds and quit claim deeds in a divorce, please contact a local family law attorney for help. Share on

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Tenancy by the Entireties exemption for Married Couples Holds – Case Law Update

By Kansas City Divorce Attorney Mark Wortman on February 8, 2009.The Missouri Court of Appeals for the Southern District of Missouri has just recently upheld the Missouri exemption (protection from creditors) for Tenancy by the Entirety for jointly owned property by married couples. Tenancy by the Entireties is a special form of property ownership that Missouri, and some other states, reserved for married couples only. Tenancy by the Entireties means that a husband and wife own property as one person, and each of them owns a 100% interest in the property.  This is different than co-tenancy, where each owner only owns their respective interest in the property (such as when two unmarried people own property – they each own only their half).   It is presumed that jointly owned property by married couples is tenancy by the entirety, and the presumption can only be rebutted by evidence that there was consent, agreement, or acquiescence that the property was not owned in this way. Tenancy by the Entirety property is fully exempt from creditors of one spouse, and is exempt in bankruptcy provided that only one spouse is filing. If both spouses file bankruptcy, the exemption does not apply, and if a creditor trying to collect a judgment is a creditor of both spouses, the exemption does not apply.   In the recent ruling, a creditor had obtained a judgment in another state, registered it in Missouri, and attempted to collect the debt by seizing assets (known as execution) that were jointly owned by a married couple. The Court held that, even though there was some evidence that the property was only owned by one spouse, it was not enough to rebut the presumption of tenancy by the entirety, and the property was exempt from

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

10 Things Landlords Should Know About Fair Housing

By Kristi Bunge Sounds pretty simple if there are just 10 things to advise Landlords about with regard to fair housing law. Unfortunately there are more than just the 10 items listed in this article. However, these 10 are an excellent start, and knowing about fair housing will help lead to understanding what should and should not be done when renting property. Understanding fair housing is the best protection against a claim that a fair housing law has been violated. If you are an attorney advising a landlord on what to watch out for, the following items are a good start. 1. ADVERTISING. Advertising is one of the most common ways landlords find people to place in rental properties. When advertising, landlord clients should describe property attributes and/or amenities, not what they are or are not looking for in a resident. Landlords should not say “great for a young couple” as it may be considered discriminatory to families with children. Nor should landlords say “safe” or “exclusive” as this may imply they only rent to certain groups. At the end of the advertisement, landlords should use either the fair housing logo or a disclaimer such as “This community does not discriminate on the basis of race, color, religion, national origin, sex, disability or familial status.” Photographs need to be carefully considered before use in advertising and only after speaking with an attorney. 2. STEERING. “Steering” occurs when a landlord attempts to direct a resident, for whatever reason, to a specific area of the property. To help avoid claims of “steering” by a prospective resident, landlords should show all available properties to prospects, let the prospect decide what to see and what to skip, and finally present only facts about the property and the community, not about other residents or neighbors. Landlords should never say “you would really like this particular apartment because it is nice and quiet with few children around”, or “there are lots of other children in the same age group as your own” as both statements may be considered a violation of fair housing law. Failing to show a handicapped person the recreational areas (on the assumption the prospect would not use those facilities) may create potential liability. However, if a prospective resident expressly states they are not interested in seeing a specific area it is okay to skip that area. Even if asked, landlords should never comment on the “types” of persons who live in the community. 3. SCREENING/APPLICATIONS. Fair housing claims arise frequently as a result of the application and screening process. Landlords should have a written rental policy detailing the criteria necessary for approval to live in their property. The rental policy should include occupancy guidelines, availability policy, rental criteria (i.e. employment history/income, credit standards, etc.) with an explanation of what the criteria are, an outline of the application process and that your client adheres to all applicable fair housing laws. Questions included on the application should not ask about physical or mental disabilities, and landlords should limit questions about drug/alcohol use and lawsuits. Asking questions regarding prior evictions, prior money judgments, bankruptcy and why prospective residents are leaving their current landlord are acceptable and may provide important information. Once a written policy is created, the landlord should expect strict adherence and compliance with the written policy. Additionally, landlords need to keep good records of each applicant or inquiry. However, if an applicant requests a deviation from the written policy based on a disability, the landlord should consult you immediately before making a decision. 4. OCCUPANCY STANDARDS. In 1996 Congress enacted a law based upon a 1991 HUD memo stating that a 2-person-per-bedroom occupancy standard was acceptable in most situations. This is by no means a hard and fast rule with regard to the number of occupants for a particular residence. This figure can change depending on how the property is laid out. More occupants may be allowed if there are unusually large living spaces or bedrooms, and fewer occupants if the opposite holds true. Many fair housing experts believe that infants do not count when calculating occupancy standards. 5. APARTMENT RULES. It is absolutely acceptable for a landlord to have a set of “house rules” for all residents to live by. The house rules should be basic and non-discriminatory. Rules should be written so they are applicable to all residents and not just specific groups of residents. Rules stating “Children shall not roughhouse in the hallway” may be discriminatory. Using general terms such as “Residents or guests” should keep the rule unbiased, fair and applicable to all residents. Rules must be enforced uniformly against all residents and records regarding rule violations need to be kept. The records should include the time/date and manner of the violation, how the landlord became aware of the violation and what actions were taken to enforce the rule. As a special note, pool rules should be carefully scrutinized to insure they do not discriminate against children. A rule saying “no children under 4 in the pool area” is discriminatory, while a rule saying “children under 12 must be supervised by an adult over 18” is likely not discriminatory. As always, landlords should consult you for specific state or local laws on these issues as well. 6. REASONABLE ACCOMODATION. A reasonable accommodation is at the resident’s request and when a client voluntarily makes exceptions to their standard rules/policies to accommodate the resident’s disability. The requested accommodation must be reasonable and should not present an undue burden on the landlord. If the accommodation is not reasonable or if it would impose an undue hardship on the landlord, the request may be denied. If the request is denied a letter should be sent to the resident explaining the denial, the facts behind the denial, how those facts were discovered and offering to meet with the resident. Landlords should not offer to make an accommodation to a resident but should wait for a resident to request the accommodation. Offering an accommodation before it is requested may subject your client to a claim of discrimination. 7. REASONABLE MODIFICATION. This should not be confused with a reasonable accommodation. Landlords may require a resident to pay for modifications to the property and require that those modifications be removed when the resident vacates the property. If the modification were for something that federal law already requires a landlord to have in place then the landlord would be responsible for the cost of the modifications. Landlords should check with you to determine where financial responsibility for common-area modifications lay, and whether the resident would be responsible for both the installation and removal of the modifications. As with accommodations, the modifications must be reasonable. 8. RECORD KEEPING. Landlords need to keep records on all prospective residents, in addition to current/past residents. Landlords can create a system of guest cards or logs with relevant information (i.e. date/time of visit, properties shown, prospective move-in date, etc.) as well as a log of all calls made by prospective residents, even if the resident never comes to see the property. Records regarding available properties also need to be kept and updated every time there is a change in availability. Additionally, all applications should be retained, even if the applications were rejected or withdrawn. Landlords should contact you regarding how long the records should be saved in order to comply with changing requirements in federal and state law, as well as what types of records to maintain. Being able to produce consistent records showing nondiscriminatory application of written screening criteria in every case can usually successfully defend a Fair Housing claim. 9. EMPLOYEE TRAINING. Landlords need to ensure that there is a written policy to avoid claims for harassment, particularly sexual harassment. Every time a new employee joins the staff there should be a training meeting about fair housing laws and how to comply with them. The meeting should include copies of all memos regarding policies about how to comply with fair housing, what can happen to the landlord for a violation and what will happen to the employee who violates fair housing. 10. EVICTION. Landlords should not be afraid to evict a resident for legitimate reasons because of a fear of a fair housing violation claim. The rules set by the landlord apply to all residents equally. When contemplating an eviction for other than non-payment of rent advise your client to ask themselves the following two questions: (1) Has there been a serious violation of the lease agreement? (2) Do you and have you evicted other residents for the same type of problems or behavior? If the answer to these questions is yes, then an eviction would be warranted under the circumstances. Resident files should contain records of all complaints against the resident and what has been done in response to each of the complaints. HUD has historically looked for five types of documentation when dealing with fair housing claims. Landlords should document and include in resident files the following information: (1) warning letters/eviction notices, (2) written complaints by third parties, (3) written logs kept by management, (4) police records and (5) photographs. Resident file documentation needs to be consistent for all residents. This documentation may prove there was a legitimate reason, unrelated to any fair housing claims, for evicting the resident. All information contained in this article is consistent with the Fair Housing Act (42 U.S.C.A. 3601 et seq.) Information was also obtained from the Federal Housing and Urban Development website (

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

How to Profit From Your Basement Rental

Renting out part of your home can boost cash flow, but first take a look at what it takes to be a landlord. By Pat Mertz Esswein, August 2011 Homeowners feeling the pinch from the stumbling economy are tapping a source of cash close to home: their basement, attic or extra bedroom. Of course, financialhardship isn’t the only reason to rent out part of your home. This option may also appeal to you if your house feels too big or too empty (perhaps because the kids have flown the nest) or you want to supercharge your savingsor pay off your mortgage faster. How many legal hoops you’ll need to jump through depends on whether you create a separate unit in the basement or share your living space with a housemate. If you rent out a separate unit -- with a kitchen and full bath -- you’ll be subject to municipal rules that govern the conversion of a single-family dwelling into a multifamily one, as well as landlord-tenant laws. But if you share your space, you’re probably off the legal hook (although you should still check out any zoning or homeowners-association restrictions). What if you ignore the rules and rent your space under the table? A lot of landlords do, but that could have legal and financial repercussions. Advertise smart. Before you list your unit for rent, check out the amenities and rents for similar units that your competitors are advertising. The most popular spots for ads are Craigslist or www.sabbatical.com; local classifieds, list serves and bulletin boards; and the housing offices of local employers and colleges. Advertisement Most landlords include the cost of utilities in the rent or set a flat monthly fee. Often, that’s because a city may prohibit you from installing separate meters, creating a separate address for the apartment or adding a second mailbox. Fair-housing laws will govern what you can -- and can’t -- say in your rental ads and the rationale that you use for choosing one applicant over another. You can, for example, prohibit pets altogether or allow them conditionally based on breed or size. As an owner-occupant of a property with four or fewer units, you’re exempt from the requirements of the federal Fair Housing Acts, which prohibit discrimination against tenants based on race, color, religion, national origin, family status, disability or gender. However, states (notably California) and municipalities may step in with their own anti-discrimination laws. Screen tenants. Perhaps nothing could make life more miserable than a problem tenant living downstairs. You want a tenant who will pay the rent on time, take good care of your property and not create excessive noise or hassles. Ask all prospects (including co-tenants) to fill out an application so that you can verify their identity, employment, credit, rental history and references. It’s a good idea to ask them to sign a separate release that gives references permission to talk with you. To help you assess an applicant’s qualifications, hire a tenant-screening service (the cost is usually $30 to $50 per report). The service will draw and analyze data from multiple sources, including at least one of the three major credit-reporting agencies (Equifax, Experian and TransUnion) and public sources of eviction records and criminal history. Among services to consider: CoreLogic Safe-Rent Services, TransUnion SmartMove, MyScreeningReport.com, and E-Renter.com. You’ll need permission from your applicants; you can charge an application fee to cover the cost. If, based on a report, you decide not to rent to someone, you must notify him or her. One downside to using screening agencies is that public data, especially criminal history, may be neither up-to-date nor accurate.  To verify that an applicant hasn’t been evicted recently, you can ask for a current rental receipt. Portman says that nothing beats old-fashioned checking of references. One tip, though: A current landlord who wants to get rid of an undesirable tenant may offer a glowing recommendation. To get the real scoop, contact the applicant’s previous landlord. Go with a monthly lease. If you lock a renter into a year-long contract and then discover that you can’t stand your tenant, you’re stuck -- unless your tenant commits an evictable offense, such as not paying the rent. With a month-to-month lease your agreement will “self-renew” every month unless either you or your tenant calls it quits, with proper notice, for any reason that isn’t discriminatory or retaliatory. The lease form provided with Every Landlord’s Legal Guide is a master document you can amend according to your state’s law regarding such items as security deposits and your access to the apartment. You should charge a security deposit (usually limited by state law to one or two months’ rent) to cover a departing tenant’s unpaid rent or the cost to repair damage and clean beyond normal wear and tear. You may want to charge a pet-damage deposit, too. State law may require you to put the security deposit into an escrow account and pay interest on it. Call your insurance agent. With a tenant comes increased risk. Loretta Waters, of the Insurance Information Institute, which represents the insurance industry, suggests that you take these precautions: First, require tenants to show you proof of a current renters insurance policy. That will decrease the likelihood that they will sue you for the loss of their possessions after theft, flood or fire, if they could show negligence on your part. Second, notify your homeowners insurance company so that it is aware of this change in your risk profile. Eric Vaith, of USAA, says that given the access your tenant may have to your home and because theft of certain valuable items -- such as jewelry, fine art, guns and the like -- will be subject to the limits of your homeowners coverage (typically a total of $2,000 to $3,000), you should purchase a rider to cover them. Finally, consider buying a personal umbrella policy to provide liability protection beyond the limits of your homeowners policy. Don’t assume that your current liability coverage will sufficiently protect your assets. Injured renters will try to find money wherever they can, and if they sue, they may go after your future earnings, says Vaith. You can get a $1 million policy for about $150 to $200 annually; each million thereafter will run you another $60 to $100 annually. Report the income to the IRS. You generally must add rental income to your gross income for tax purposes. But you can offset it with deductible expenses related to the rental unit, such as the cost of painting the unit or buying an umbrella liability policy. You can depreciate the rental unit and the furniture and equipment you install in it, as well as deduct a prorated portion of your mortgage interest, qualified mortgage insurance premiums and real estate taxes on Schedule E of your Form 1040. For more information, see “Renting Part of Property” in IRS Publication 527, Residential Rental

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Current state of the real estate market (2015)

Wild fluctuations in the nation’s real estate cycle have taken investors on a roller coaster ride since the early part of this century. From the first decade, marked by overheated home prices in many of the nation’s most popular metropolitan areas, to the post-Great Recession era sending home values into a free fall, investors have had to adjust and adapt their investment strategies to market conditions. So, going forward, which are the best strategies to pursue? The big picture for 2015. Looking at the nation’s housing and economic indicators, there is plenty of positive news to justify continued investor optimism in 2015. Home sales – both existing and new – are projected to increase next year, which is welcome news for fix-and-flip investors. At the 2014 Realtors Conference & Expo, Lawrence Yun, chief economist for the National Association of Realtors, or NAR, predicted a rebound for existing home sales for the next two years, and he projects the national median existing-home price will rise at a moderate 4 percent in each of those years. On the new home front, David Crowe, chief economist for the National Association of Home Builders, forecasted in an Oct. 31, 2014 National Association of Home Builders webinar that multi-family housing starts were projected to increase 15 percent in the rest of 2014 and hold steady in 2015. “Multi-family housing starts have rebounded back to normal since the downturn, mostly due to the strong demand for renting,” says NAR’s Yun, who also notes that renter households have increased by 4 million since 2010, while homeowner households have decreased by 1 million. Two major concerns remain: tight lending standards, which continue to keep people who could otherwise afford to buy a home from qualifying for a loan to finance the purchase, and interest rates are expected to hit at least 5 percent by year-end. Looking at the numbers. Daren Blomquist, vice president at RealtyTrac, says he believes 2015 is going to be a better year for buy-and-hold investors than for flippers – with the caveat that real estate values vary from area to area and property to property, so investment strategies will have to adjust accordingly. According to RealtyTrac’s numbers, the volume of properties being flipped declined dramatically, down from their most recent peak of 8.8 percent of all single-family home sales in the second quarter of 2012, to 4 percent of all home sales in the third quarter of this year. “As home-price appreciation slowed down, the flippers have become less active in this market as well,” Blomquist explains. “The interesting thing is that the volume of flipping is going down, but the average profit on a flip is staying very strong. The gross profit has stayed strong for the past three years in the 30 percent range.” For buy-and-hold investors, rental properties did well in 2014, although gross rental return was down slightly in the 586 counties surveyed by RealtyTrac, compared to 2013. “This year was not as good for buying rentals as last year. Last year, we had a 10 percent return because home prices went up, even though rents went up. Returns have slipped a bit because the cost of acquisition went up,” he says. Still, Blomquist says he believes it is a good time to buy rental properties, because the dynamics of this market are right. “We will see it flatten out because home prices are starting to flatten out as well. That will allow rents to catch up with home prices, which is good for buy-and-hold investors, but not as good for the flipper,” Blomquist says. The local perspective. To best-selling real estate author, attorney and longtime investor William Bronchick, 2015 is going to be a good year in the Denver market for owning rental properties, but not as good for flippers. “It’s great market for rentals, because people still can’t get loans and there’s so many renters. The lending market is tight, so there are more renters, so higher rental rates and lower vacancies make for a great rental market,” Bronchick says. “On other hand, inventory is low, so if you can get your hands on a good motivated property, then you’re good for a flip.” Working in North Carolina and South Carolina, investor and trainer Larry Goins, says current market conditions in these states are good for both flippers and rental property owners. “There are deals to be had, but you have to work harder to get them,” Goins says. “I like to buy lower-priced houses and rent them or do lease options or seller financing.” Specializing in the Atlanta market for decades, Andy Heller, a real estate investor and trainer on these topics, says that since the market crash, a buy-and-hold strategy has made more sense, because investors could buy property very inexpensively. “Most of the country has settled into a more normal appreciation especially in the last six months or so,” Heller says. “Allowing for the fact that we’re in a time of normal appreciation, what strategy is the best? Both. We don’t have an overheated market and we don’t have a collapsing market.” In the Greater Phoenix area, supply and demand economics will dictate the right investment strategy in 2015. “The Greater Phoenix market has been in low supply and low demand for 15 months now,” says Alan Langston, executive director of the Arizona Real Estate Investors Association or AZREIA. “We’re not sure that’s going to change anytime soon. Our market’s been stagnant for a long time, but that doesn’t mean real estate investing has been bad. It’s been different.” Langston believes investors will continue to be successful, they are whether rehabbing and flipping houses, or holding on to rentals- but they will have to approach the business differently than they used to. “If you know what you’re doing as a real estate investor, you’re going to adjust what you need to adjust so you do well on your property,” Langston says. “If you’re an informed investor, you’re going to be fine,” he says. Investor activity varies by investor, region and property types. Auction.com, the largest online real estate marketplace, recently released survey data collected from investors bidding on properties across the country, which confirmed that buying property to hold and rent is currently favored over flipping nationwide. However, investor intent varies considerably between online and offline investors, regions, and property prices. The study showed that purchasing property to rent is more prevalent in the Midwest and South, whereas there appears to be a higher propensity for flipping in the Northeast. The flip versus rent split is nearly even in the West, with a very slight preference toward renting. “Real estate investors appear more likely to flip a property in those regions where home values are higher,” says Auction.com Executive Vice President Rick Sharga. “Higher prices can translate to a faster and potentially more significant short-term return on investment. The hold-and-rent strategy seems most popular in markets where home prices are lower, allowing investors to charge a more competitive monthly rental rate and still produce reasonable returns over an extended period of time." Joel Cone is a southern California-based freelance business writer who specializes in the fields of real estate, economics and law. His articles have appeared both in print and online for many publications including California Real Estate, OC Metro, GlobeSt.com and The Los Angeles Daily Journal. He is also a contributor to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Current state of the Kansas City Real Estate Market

KC Star 12/4/2015 Over the past five years, the Missouri housing market has been slow to recover. However, some argue the market’s recovery started in 2011. It wasn’t until 2012, however, that definitively confirmed the slow but steady upwards movement of Missouri’s real estate market. As perhaps the biggest beneficiary of the Missouri recovery, Kansas City is now in a great position to prosper. As a result, the Kansas City housing market could serve as a boon to real estate investors. Kansas City, like San Diego and Houston, was subjected to incredible rates of appreciation. While prices are up from last year, the rate in which they are increasing is beginning to temper. With the slow down, the current median price for a home in Kansas City is $164,300. As a comparison, the national average is $212,267. Homeowners in the Kansas City housing market have become the beneficiary of three years of appreciation, serving to drive up equity. The following highlights how much equity has been gained relative to the year of purchase: Homes purchased in the Kansas City housing market one year ago have appreciated by an average of $7,398, whereas the national average was $12,731 over the same period. Homes purchased in the Kansas City housing market three years ago have appreciated by an average of $33,477, whereas the national average was $51,204 over the same period. Homes purchased in the Kansas City housing market five years ago have appreciated by an average of $30,937, whereas the national average was $48,225 over the same period. Homes purchased in the Kansas City housing market seven years ago have depreciated by an average of $20,882, whereas the national average increased $1,750 over the same period. Homes purchased in the Kansas City housing market nine years ago have depreciated by an average of $28,538, whereas the national average increased $5,043 over the same period. Employment levels in the Kansas City area have held their own since the recovery began to gain traction. Of particular importance, however, is the third consecutive year of employment growth that has followed the recession. In fact, the job sector has returned to its pre-recession levels. Conversely, the U.S. as a whole remains more than 1.5% below its employment level at the end of the last expansion. Sales of single-family homes, condos, and townhomes make up the majority of the Missouri housing market. These types of properties make up nearly 60% of all listings in the region. The same can be said about Kansas City. Kansas City Residents are more interested in buying family homes than any other type of property in the area. Sellers, on the other hand, noticed the trend and met the demand. This would explain the overwhelming majority of single-family homes up for sale. While we have just entered into 2015, the entire Missouri housing market appears ready to make sizable strides towards recovery. For the foreseeable future, experts like the direction the state is heading However, current conditions don’t necessarily favor sellers. Even if most transactions run smoothly and the number of transactions steadily increased over the past few years, buyers still expect to get a lot of value for little money. There is a relatively small amount of homes available for sale in the Kansas City housing market. “The prices are coming up,” said realtor Cynda Rader, owner of Cynda Sells Realty Group. “We’re in a good, strong sellers market.” Perhaps even more importantly, data suggests that Cynda is correct in her assertion. As of October 2014, the market started to improve. Prices are going up because the number of homes on the market is dropping. This is just one prominent example of a housing market that is poised to make a significant rebound. In addition to rising home prices, the number of new home starts remains encouraging. According to reports, homebuilding activity reached its highest level for October in seven years. The Home Builders Association of Greater Kansas City said “465 permits for single-family home construction were issued” in the record setting month. That was the most permits the area has seen since 2007, before the recession took hold of the entire housing sector. Of the eight area counties surveyed by the association, six have increased their permit counts from the previous year. Platte County and Miami County were the only two regions to not exhibit increased permit counts. However, the recent boon in real estate is not only thanks to single-family houses. Both apartment buildings and multifamily units continue to aid in the region’s current recovery. In October, 78 multifamily housing units were added, bringing the yearly total to 3,246. That’s up from 2,493 units through the first 10 months of 2013. One more factor contributing to the recent success seen in Kansas City is the demand for what locals are calling “industrial underground space.” The underground real estate occupies more than 21.8 million square feet in the city, and is the largest of its kind in the U.S., comprising more than 7 percent of the metro’s total industrial area. Perhaps even more importantly, demand for the underground space is increasing. Manufacturing and expanding distribution centers are only making the demand for underground real estate more prevalent. The potentially lucrative, yet nontraditional, real estate may be a great niche for new investors to consider. While the cost of leasing underground space has long been lower than above ground space, the gap is narrowing. According to CoStar, “the cost of above ground industrial space in metropolitan Kansas City fell 1.7%, to an average of $ 3.99 a square foot in the 12-month period that ended in September.” Underground space, meanwhile, rose 5% to $3.43. Kansas City Housing Market Summary: Current Median Home Price: $164,300 1-Year Appreciation Rate: 2.9% 3-Year Appreciation Rate: 19.9% Unemployment Rate: 6.3% 1-Year Job Growth Rate: 0.2% Population: 467,007 Median Income:

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Beware of garage doors

From Kansas City Star 7/22/2015 - You pass through it every day, often multiple times a day. Heading to work. Dropping the kids off. Running errands. The garage door has become such an integral part of everyday life that you probably don’t pay much attention to it as you come and go, let alone stop to think about how safe it is. Would you pay attention if you knew that 1 in 15 garage doors and openers may lack the latest safety features and may not be operating properly? That’s at least one house on your street alone. As the heaviest moving object in your home, the garage door is a potential safety hazard and can harm people, pets and damage property if it’s not working properly. How can you be sure your garage door isn’t placing your family, friends or neighbors at risk? By using a simple 3-Step Safety Check. This vital test ensures your garage has effective, properly installed safety sensors (photo eyes) that prevent the garage door from closing when anything is in its path. The majority of garage door openers manufactured before 1993 aren’t equipped with these devices and should be replaced, not repaired. Even if your garage door opener was installed within the last ten years, the 3-Step Safety Check allows you to make sure it’s operating properly and is as safe as it should be. Worried about time? Though it may sound like a hassle, a simple safety check usually doesn’t take more than 45 seconds. You won’t need a toolbox of complicated gadgets either—just a few items you likely already have around the home. The safety check is as easy as 1-2-3 and can keep your garage safe and secure: 1. Check the sides of the garage door for properly installed photo eyes (black sensors), mounted no higher than 6 inches off the floor. 2. Block the photo eye with an object over 6 inches tall, and press the garage door opener’s close button. The door should not close. 3. Lay an object that is at least 1.5 inches high on the ground in the door's path, and press the close button. The door should reverse off this object. Make sure to complete garage safety checks seasonally, as often as you would change the batteries in your smoke detector. An easy way to remember is to test your garage door opener when you set your clocks forward and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Illegal use of premises in Missouri

Be carefull what you do if you are a tenant.  Missouri law allows a landlord an expedited proceedure for eviction in the case of certain illegal uses of the premises. Illegal use of premises renders lease void. 441.020. Whenever any lessee of any house, apartment or building permits any prohibited gaming table, bank or device to be set up or be kept or used upon the premises, for the purpose of gaming, or keeping in the same a bawdyhouse, brothel or common gaming house, or allowing the illegal possession, sale or distribution of controlled substances upon the premises, the lease or agreement for letting such house or building shall become void, and the lessor may enter on the premises so let, and shall have the same remedies for the recovery of the premises as in the case of a tenant holding over the tenant's

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Boundry Disputes

Humans have the territorial instincts of jungle beasts. Boundary disputes costing thousands of pounds in legal and surveyors' fees are often fought over a few centimetres. A spiral of charges can be set in train over ownership of a fence, overhanging branches, dense hedges, party walls, shared drainage or driveways. And they usually far outweigh the value of what is disputed - all because one person is not prepared to admit that he is wrong, says David Powell, a spokesman on boundary issues for the Royal Institution of Chartered Surveyors (Rics). Boundary issues are not always clear-cut. A boundary's location can change over time for many reasons, such as a diverted water course or a wooden fence that moves slightly every time it is replaced. Powell says disputes often occur when someone new moves next door and takes issue with something previous occupants have put up with for years. 'There are rarely disputes over more than 30cm. Once you get above that, there's something obvious with which to solve it.' Boundary disputes can be so ridiculous that they are downright comical. Take the case of pensioner David Jollands of Caythorpe, Lincolnshire, who, outraged about his neighbour's leylandii, urinated on them. This, over time, caused them to wither. However, many of us can be stuck with our neighbours for years, so amicable resolution to disputes is always the best route. As Sioban Calcott, executive in litigation at Brethertons Solicitors, says: 'If one party has been landed with a legal costs bill of £20,000 following a two-day trial, it does tend to place a strain on the relationship between neighbours.' Advertisement It helps to know what rules apply before tackling a problem, and to try alternative solutions before heading to court. Under Section 8 of the Anti-Social Behaviour Act 2003, owners of tall hedges can face fines of up to £1,000 if they fail to cut down their offending greenery when the council orders them to. However, hedges do not need planning permission and councils are likely to get involved only where they are more than 2m tall, evergreen and blocking a neighbour's light, access or reasonable enjoyment of their property. Fences or walls, when not facing the street, should be no higher than two metres without planning permission. Those facing the street can be up to a metre without local authority consent. Disputes over fence, wall or hedge ownership often raise blood pressure when it comes to maintenance and repair. In many cases, the deed plan of the property will show who is responsible, but not all plans indicate this. An Ordnance Survey map on which boundary lines are drawn might help, but they are unlikely to be precise. And, contrary to popular belief, the house facing the side of the fence with the structural components is not necessarily the owner. Sue Satchell, property litigation partner at international legal firm Withers, says certain presumptions will apply in absence of any indications on title deeds or other documents. 'For example, where there is nothing else to identify the boundary of land and there is a ditch or a bank, the presumption is that the person who dug the ditch dug it at the extremity of his own land and threw the soil on his own land to make a bank. Therefore the presumption is that the boundary runs along the edge of the ditch and belongs to the person on whose land it is sited.' Peter Bolton King, chief executive of the National Association of Estate Agents, says it is sometimes possible to work out the likely ownership by looking at other properties in the road. He gives the example of his own house, built in 1850, where the deeds do not show who is responsible for what. But it was possible to deduce, by looking at old town plans, in what order individual houses were built and then work out the likely ownership of boundary walls. Roger Grove, a partner at Yorkshire and Humberside-based Atteys Solicitors, says a large number of boundary disputes appear to be generated by builders and developers taking the law into their own hands. He recalls an elderly client who returned home one day to find a large section of his hedge had been removed and a line of fence positioned about 10 metres on to his land. 'For some reason, the adjoining land owner believed the land was his even though for years and years the boundary had been marked by a line of hedges and trees.' When the case went to court, the availability of aerial photographs showed clearly that the line of trees had been there for over 50 years and there could be no doubt about where the boundary was. The Access to Neighbouring Land Act 1992 says that if you need access to a neighbour's land in order to carry out work, a court will order access if the neighbour is being unreasonable. Common law dictates rules about overhanging branches. Anything that overhangs your land can be cut off and returned to your neighbour without trespassing. Satchell says rules relating to shared driveways should be in the shared driveways' title documents, which should specify the rights and obligations of both owners. Grove adds that common law recognises that the driveway should be used reasonably and, if there is excessive use - for instance, if a vehicle is parked for a long time preventing access - the neighbour would have a right to seek damages and an injunction. Anyone wishing to separate two driveways by building a wall partly on their own land and partly on that of the adjoining owner would need the other person's permission. A wall that does not overlap with your neighbour's driveway does not need agreement. People who live in semi-detached or terraced houses share a wall with neighbours known as the party wall. The neighbour's agreement must be sought before you start any work that affects this wall, such as extensions, damp proofing, some types of internal refurbishment and structural

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE TRENDS 2015

BY BETH BRAVERMAN, The Fiscal Times March 27, 2015 Along with green shoots and chirping birds, one sure sign of spring is popping up in neighborhoods across the country: For Sale signs. As the weather warms up, so does the housing market, and experts say this year’s spring selling season is shaping up to be an active one. Whether you’re buying or selling, here are the trends you need to know about. 1: Home prices are rising, even hitting record levels in some places. Home prices nationwide rose by 5.7 percent in January, compared to a year ago, with prices hitting record highs in Colorado, Texas, Wyoming, and New York. Prices are so high in certain areas that some economists are starting to worry about localized bubbles. In most markets across the country, however, gains of around 5 percent are seen as stable, sustainable growth, a welcome change after years of roller coaster changes. 2: Mortgage rates are still low … for now. At less than 3.7 percent, mortgage rates are haven’t been this favorable to consumers since 2013. “Even though rates are expected to rise as the year progresses, for now these rates are really at very low levels,” says Greg McBride, chief financial analyst at Bankrate.com. To be safe, once you’ve got a closing date, consider locking in your mortgage at today’s rock-bottom rates. 3: It’s still a seller’s market. Total housing inventory at the end of February increased 1.6 percent to 1.89 million existing homes for sale, but that’s still 0.5 percent less than a year ago. Unsold inventory is at a 4.6-month supply, giving sellers a slight advantage in today’s market. (A six-month supply is considered a healthy market.) 4: Buyers want turnkey properties. Even with tight inventory, buyers are looking for properties that are move-in ready and won’t require much more than a coat of paint. “Buyers don’t want to assume any risk with properties that need work, particularly first-time buyers with limited cash resources,” says Budge Huskey, chief executive officer at Coldwell Banker Real Estate. 5: Foreclosures are no longer a factor. After peaking in August 2006 just before the housing bubble burst, foreclosures are on pace to return to historic norms this year.  Foreclosure filings fells 4 percent in February to their lowest level since 2006. 6: Investors are backing off. Ordinary buyers in recent years often found themselves competing with investors “Today’s houses are getting less desirable for investors because price points are going higher, so it doesn’t pencil out as much,” says Daren Blomquist, RealtyTrac vice president. The share of homes going to institutional investors or all-cash buyers dropped in 2014 to the lowest level in 4 years. 7: In most places it’s much cheaper to buy than to rent. Soaring rents in recent years have made buying a home much more affordable for those who want to stay put than renting one. Nationally, U.S. renters spend an average of 30 percent of their income on rent, versus just 15 percent of income on mortgage payments. 8: Credit is getting looser. Fannie Mae and Freddie Mac have introduced new lending programs that allow borrowers to put just 3.5 percent down on a home – although this comes with risk, of course. The Federal Housing Finance Agency recently reduced the cost of mortgage insurance by half a percentage point, which will save home buyers an average of $900 per year. All of this makes it a little bit easier for first-time buyers to qualify for a home loan. “It’s still not easy to get a mortgage, but it’s not as hard as it was a couple of years ago,” says Bob Denk, an economist with the National Association of Home Builders. 9: New homes are smaller and greener. The average new home in 2015 was expected to be about 2,200 square feet, or 10 percent smaller than the average new home five years ago.  Millennial buyers and downsizing boomers want a smaller carbon footprint and a more eco-friendly home with energy-efficient windows and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Population growth north of the river remains a key asset in creating a more vibrant future for Kansas City.

BY YAEL T. ABOUHALKAH abouhalkah@kcstar.com Welcome to the fastest-growing county in the Kansas City area, where houses, schools and shops are being built to serve a flood of new residents. Welcome to … Platte County. Oh, you were thinking something else, maybe along the lines of perennial population magnet Johnson County? According to just-released U.S. Census figures as of July 1, 2014, Platte County’s population was up 6.1 percent over the 2010 Census. On the Kansas side of the state line, Johnson County had a healthy growth rate of 5.5 percent in the same four-year span. Platte County’s population is one-sixth the size of Johnson County’s, so that helps explain a little bit of the surprise factor. Yet here’s another fact that makes it clear the Missouri side of our region is having renewed success as a place where people want to buy houses, rent apartments and raise children: Add in the strong addition of residents in Clay County, and the combined population growth rate in the two Northland counties was 5.529 percent since 2010. What was that Johnson County figure again? Carry out the decimal places, and it was 5.530 percent — essentially the same. If you look at where people are choosing to live in the Kansas City area, the Northland these days is competing in many ways on equal footing with Johnson County. The Northland generally has cheaper, new housing versus dwellings in the far-out reaches of Johnson County. Much of the growing parts of the Northland are closer to downtown, which is still a large center of employment. And the Northland features well-performing school districts — especially Park Hill, Liberty and Platte County R-III — along with the large North Kansas City District. The biggest beneficiary of the Northland’s boom is the city of Kansas City. Overall, it had gained just over 11,000 people since 2010, reaching a population of 470,800. It’s still by far the largest city in the area. It’s true that a revived downtown is essential to Kansas City’s future. And city officials must try to bring economic development to the East Side. Yet while Kansas City south of the Missouri River continues to struggle to hold on to residents, the parts of the city in Clay and Platte counties don’t have that problem. Indeed, one of the banes of Kansas City — its 320-square-mile size, which makes it difficult to provide adequate public services — is helping to lure new residents and taxpayers. (On the other side of Missouri, tiny and hemmed in St. Louis continued to shed population, down to 317,419 people.) Kansas City’s good times are likely to continue, partly thanks to a large, new development area called Twin Creeks. With some hyperbole, backers say it could attract an eye-popping 70,000 residents in the next 25 or so years. The 15,000-acre project is east of Kansas City International Airport. It roughly goes from Interstate 29 east to U.S. 169, and from Barry Road to the northern city limits. The development is expected to explode in the coming years, now that some city assets such as public sewers are making it possible for construction to occur. Roadblocks exist to such a huge endeavor, starting with the fact the city might have to spend several hundred million dollars on even more infrastructure, especially to upgrade the Northland’s road system. City officials also have to continue improving public amenities such as trails, parks and libraries, all of which Johnson County has in abundance. The success of the Northland in adding people also helps make it possible for Kansas City to expand its tax base while wooing companies that want to locate close to their workers. Population growth north of the river remains a key asset in creating a more vibrant future for Kansas

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

The Tax Benefits of Equity Real Estate Investing

Written by Realty Mogul Equity real estate investing has real tax benefits The tax benefits of real estate investing are attractive, but until recently many investors had difficulty participating in commercial real estate syndications that could fully take advantage of those tax benefits.   Now, however, the advent of real estate crowdfunding sites like Realty Mogul has enabled smaller (though still accredited) investors to participate in real estate projects in ways that bring those tax advantages directly to investors. The tax benefits of direct real estate ownership are substantial and not generally available to investors in real estate investment trusts (REITs), who do not receive all the tax attributes associated with the actual ownership of real estate.   Real estate investments made through a limited partnership (LP) orlimited liability company (LLC) structure can be more attractive than REITs for several reasons, but at least some of the appeal lies in the inability of REITs to fully take advantage of the various tax shelter benefits available through the LP or LLC structure. Depreciation.  The primary tax feature of equity real estate investing is the role of the depreciationdeduction, which has long played a major part in the popularity of real estate direct participation programs involving LPs or LLCs.  This is because well-located and well-maintained real property often has a useful life longer than the depreciation recovery periods allowed by law.  The depreciation deductions thus effectively create a tax shelter for a property that likely still has a useful life following the investment period.  More accurately, the deductions create a tax deferral, since the tax basis of the property is reduced by the amount of the depreciation deductions, increasing the gain (or decreasing the loss) recognized at the time of sale.  It should be noted that some or all of this additional gain may be recaptured in the form of ordinary income, as opposed to capital gain. A particular advantage of the depreciation rules is that the basis for depreciation write-offs is the full cost of the asset.  Rarely is real estate purchased for all cash; usually, the major portion of its cost is financed through a mortgage loan or other type of debt financing.  The owner, however, gets a full depreciation deduction whether or not he pays all cash for the property, and whether or not he makes any sort of personal guarantee on a financing loan.  The reasoning for not limiting the depreciation deduction to an owner’s equity stake is that eventually the owner will have to amortize the debt obligation to complete his investment in the property.  In practice, however, mortgages usually amortize at a slow pace during the early years of ownership, and many investments are limited to 5-10 year hold periods.  Generally, then, even when depreciation deductions are compared with loan repayments, the deductions may generate more current tax savings than the outlays allocated to principal repayment on the loan. Loan Interest.  A further major tax benefit is the deductibility by the real estate operating entity of mortgage interest expense to shelter the current income from that property.  Rental properties purchased using mortgage or other financing can have the associated interest expense deducted from the rental income of that property for purposes of calculating the operating entity’s taxable income. Investors in a real estate LP or LLC usually hope that the pass-through entity will have sufficient depreciation, interest expense, and other deductions to shelter the cash flow from the property and keep that distribution of cash nontaxable (or at least tax-deferred).  These shelters can permit the entity’s partners (or members) to receive a return similar to a tax-exempt bond – only real estate returns have historically been substantially higher.  Investors may ultimately have to have some of this tax benefit "recaptured" upon a sale or other disposition of the property, but in the meantime they have substantially tax-free use of the distributed cash. Investors also often hope that the LLC will generate excess deductions and thus net operating losses (NOLs) to offset income they have earned from other passive investments.  To fully utilize these, investors must take into account the “passive loss rules” (which generally provide that losses generated by an activity characterized as a passive activity can only shelter income from other activities characterized as passive activities, and cannot offset non-passive income) and the “at risk” rules (which generally limit an investor’s ability to utilize losses generated by an activity in a given year to the amount for which the investor is considered “at risk” with respect to such activity) in evaluating the current tax savings to be recognized from a real estate investment.  If the depreciation deduction, interest expense and other items result in a net loss, such losses are subject to those passive loss rules. Along with existing cash flow and the potential for appreciation in a property, then, equity real estate investments made through pass-through vehicles like LLCs can take full advantage of the depreciation and interest expense deductions that are some of the most valuable characteristics of direct real estate investing.  These tax benefits are substantial and not generally available to investors in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Seller Financing

Seller financing can be a useful tool in a tight credit market. It allows sellers to move a home faster and get a sizable return on the investment. And buyers may benefit from less stringent qualifying and down payment requirements, more flexible rates, and better loan terms on a home that otherwise might be out of reach. Sellers willing to take on the role of financier represent only a small fraction of all sellers -- typically less than 10%. That's because the deal is not without legal, financial, and logistical hurdles. But by taking the right precautions and getting professional help, sellers can reduce the inherent risks. The Mechanics of Seller Financing In seller financing, the seller takes on the role of the lender. Instead of giving cash to the buyer, the seller extends enough credit to the buyer for the purchase price of the home, minus any down payment. The buyer and seller sign a promissory note (which contains the terms of the loan). They record a mortgage (or "deed of trust" in some states) with the local public records authority. Then the buyer pays back the loan over time, typically with interest. These loans are often short term -- for example, amortized over 30 years but with a balloon payment due in five years. The theory is that, within a few years, the home will have gained enough in value or the buyers' financial situation will have improved enough that they can refinance with a traditional lender. From the seller's standpoint, the short time period is also practical -- sellers can't count on having the same life expectancy as a mortgage lending institution, nor the patience to wait around for 30 years until the loan is paid off. In addition, sellers don't want to be exposed to the risks of extending credit longer than necessary. A seller is in the best position to offer a seller financing deal when the home is free and clear of a mortgage -- that is, when the seller's own mortgage is paid off or can, at least, be paid off using the buyer's down payment. If the seller still has a sizable mortgage on the property, the seller's existing lender must agree to the transaction. In a tight credit market, risk-averse lenders are rarely willing to take on that extra risk. Types of Seller Financing Arrangements Here's a quick look at some of the most common types of seller financing. All-inclusive mortgage. In an all-inclusive mortgage or all-inclusive trust deed (AITD), the seller carries the promissory note and mortgage for the entire balance of the home price, less any down payment. Junior mortgage. In today's market, lenders are reluctant to finance more than 80% of a home's value. Sellers can potentially extend credit to buyers to make up the difference: The seller can carry a second or "junior" mortgage for the balance of the purchase price, less any down payment. In this case, the seller immediately gets the proceeds from the first mortgage from the buyer's first mortgage lender. However, the seller's risk in carrying a second mortgage is that he or she accepts a lower priority should the borrower default. In a foreclosure or repossession, the seller's second, or junior, mortgage is paid only after the first mortgage lender is paid off and only if there are sufficient proceeds from the sale. Also, the bank may not agree to make a loan to someone carrying so much debt. Land contract. Land contracts don't pass title to the buyer, but give the buyer "equitable title," a temporarily shared ownership. The buyer makes payments to the seller and, after the final payment, the buyer gets the deed. Lease option. The seller leases the property to the buyer for a contracted term, like an ordinary rental -- except that the seller also agrees, in return for an upfront fee, to sell the property to the buyer within some specified time in the future, at agreed-upon terms (possibly including price). Some or all of the rental payments can be credited against the purchase price. Numerous variations exist on lease options. Assumable mortgage. Assumable mortgages allow the buyer to take the seller's place on the existing mortgage. Some FHA and VA loans, as well as conventional adjustable mortgage rate (ARM) loans, are assumable -- with the bank's approval. Getting Professional Help Both the buyer and seller will likely need an attorney or a real estate agent -- perhaps both -- or some other qualified professional experienced in seller financing and home transactions to write up the contract for the sale of the property, the promissory note, and any other necessary paperwork. In addition, reporting and paying taxes on a seller-financed deal can be complicated. The seller may need a financial or tax expert to provide advice and assistance. Tips to Reduce the Seller's Risk Many sellers are reluctant to underwrite a mortgage because they fear that the buyer will default (that is, not make the loan payments). But the seller can take steps to reduce the risk of default. A good professional can help the seller do the following: Require a loan application. The seller should insist that the buyer complete a detailed loan application form, and thoroughly verify all of the information the buyer provides there. That includes running a credit check and vetting employment, assets, financial claims, references, and other background information and documentation. Allow for seller approval of the buyer's finances. The written sales contract -- which specifies the terms of the deal along with the loan amount, interest rate, and term -- should be made contingent upon the seller's approval of the buyer's financial situation. Have the loan secured by the home. The loan should be secured by the property so the seller (lender) can foreclose if the buyer defaults. The home should be properly appraised at to confirm that its value is equal to or higher than the purchase price. Get a down payment. Institutional lenders ask for down payments to give themselves a cushion against the risk of losing the investment. It also gives the buyer a stake in the property and makes them less likely to walk away at the first sign of financial trouble. Sellers should do likewise and collect at least 10% of the purchase price. Otherwise, in a soft and falling market, foreclosure could leave the seller with a home that can't be sold to cover all the costs. Negotiating the Loan As with a conventional mortgage, seller financing is negotiable. To come up with an interest rate, compare current rates that are not specific to individual lenders. Use services like www.BankRate.com and www.HSH.com -- check for daily and weekly rates in the area of the property, not national rates. Be prepared to offer a competitive interest rate, low initial payments, and other concessions to lure buyers. Because sellers typically don't charge buyers points (each point is 1% of the loan amount), commissions, yield spread premiums, or other mortgage costs, they often can afford to give a buyer a better financing deal than the bank. They can also offer less stringent qualifying criteria and down payment allowances. That doesn't mean the seller must or should bow to a buyer's every whim. The seller also has a right to decent return. A favorable mortgage that comes with few costs and lower monthly payments should translate into a fair market value for the home. Hiring a Loan Servicing Company To help ease the paperwork burden, sellers can hire a loan servicing company to help draw up the mortgage, mail statements to the buyers, collect payments, and otherwise administer the mortgage. For a detailed discussion of the entire home selling process, including a variety of ways to get reluctant buyers excited about buying your home, see Selling Your House: Nolo's Essential Guide, by Ilona

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Foreclosures Further Fade Away

DAILY REAL ESTATE NEWS | WEDNESDAY, JUNE 10, 2015 Foreclosure inventory plunged nearly 25 percent in April as the number of completed foreclosures — which reflect the total number of homes actually lost — fell almost 20 percent year-over-year, according to CoreLogic's latest National Foreclosure Report. There were 40,000 completed foreclosures nationwide in April, down from 50,000 a year prior. Foreclosure levels have fallen nearly 66 percent from their peak in September 2010. 5 States With Highest Foreclosure Inventories The following states had the highest foreclosure inventory (as a percentage of all homes with a mortgage): New Jersey: 5.1% New York: 3.8% Florida: 3.1% Hawaii: 2.6% District of Columbia: 2.5%   More home owners are keeping up with their mortgage payments, with the number of loans 90 days or more past due down 22 percent year-over-year, CoreLogic's report shows. About 1.4 million mortgages are "seriously delinquent," the lowest rate since February 2008. "By mid-2011, after the Great Recession and at the trough of the house-price collapse, more than 1.5 million homes were in the foreclosure pipeline," says Frank Nothaft, chief economist for CoreLogic. "Employment recovery, foreclosure alternatives, and home-value gains have worked to reduce this inventory." The foreclosure inventory in April has fallen to one-third of its mid-2011 level, Nothaft notes. The National Association of REALTORS® reported that distressed sales, including foreclosures and short sales, accounted for 10 percent of all existing-home sales in April, below the 15 percent share a year ago. Foreclosures sold for an average discount of 20 percent below market value in April while short sales were discounted by 14 percent. Source:

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Winners and loosers if inflation rises

The word "inflation" strikes fear into the hearts of many Americans. It conjures worries of a stagnating economy, rising prices, a falling dollar and an income that just can't keep up with the cost of living. But while a high inflation rate hurts many Americans financially, others actually see a benefit. Following are some potential winners and losers in an inflationary cycle: Winners Fixed-rate mortgage holders. Anyone with large, fixed-rate debts such as mortgages benefit from higher inflation, says Mark Thoma, professor of economics at the University of Oregon in Eugene. "They're going to be paying back with devalued dollars," Thoma says. A higher inflation rate also helps homeowners who bought during the peak of the real estate boom and are now "under water" by bringing equity back into the positive column more quickly. Auto-loan holders.  Auto-loan holders who bought before inflation and locked in a relatively low interest rate benefit from high inflation because they pay off a sizable debt with devalued dollars, says Nancy Lowenberg, a financial adviser with Hiawatha, Iowa-based Securian Advisors MidAmerica. Investors in stocks. Stockholders get some protection from inflation because the same factors that raise the price of goods also raise the values of companies. "Theoretically, the value of equities varies directly and proportionally with inflation," Thoma says. "When you double all prices and wages, you double profits and you double the value of stocks, basically." Small-business owners with big fixed-rate debts. As prices for products go up, small-business owners find themselves better able to manage fixed-rate debt from investments in equipment and other business necessities, Lowenberg says. "Think about a business that's expanding and borrows money to put in state-of-the-art equipment so that it can grow," Lowenberg says. "If inflation is higher than normal, and they're getting paid more for their product because raw material prices were up and they're paying their workers more, they're paying the debt back in stable dollars." Investors in commodities. Bankrate senior financial analyst Greg McBride says commodity prices track the inflation rate closely. Buying storable commodities such as gold can be a good hedge against inflation. Losers The American economy. High inflation historically has hurt the American economy, McBride says. "If you look at periods of strong growth in U.S. history, the one constant has been a very modest rate of inflation over that time." In periods of high inflation, consumers' purchasing power falls and their standard of living slides with it. Also, borrowing to fund new businesses, buy homes and finance other tasks necessary for a healthy economy becomes more difficult as lenders jack up interest rates to hedge against further

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Financial gain better for the older generation

BY DIONNE SEARCEY  Most Americans suffered serious losses during and after the recession, knocked off balance by layoffs, stagnant pay and the collapse of home values. But apart from the super rich, one group’s fortunes appears to have held remarkably steady: seniors. Supported by income from Social Security, pensions and investments, as well as an increasing number of paychecks from delaying retirement, older people not only weathered the economic downturn that began in 2007 but made significant gains, a New York Times analysis of government data has found. As a result, America’s middle class is graying. People on the leading edge of the baby boom and those born during World War II — the 25 million Americans now between the ages of 65 and 74 — have emerged as particularly well positioned in the nation’s economic timeline. While there are plenty of individual exceptions, as a group they are better off financially than past generations and may well enjoy a more successful old age than future ones, even those merely a decade younger. “These are people who have been blessed with good economic circumstances, especially those who were able to ride the wave of postwar economic growth,” said Gary V. Engelhardt, an economist at Syracuse. “They’re definitely in a sweet spot.” Older Americans’ ability to rise during the postrecession years when most households were falling reflects a broader trend that has unfolded in recent decades. In the past, the elderly were usually poorer than other age groups. Now, they are the last generation to widely enjoy a traditional pension, and are prime beneficiaries of a government safety net targeted at older Americans. They also have profited from the long rise in real estate prices that preceded the recession. As a result, more seniors now fall into the middle class — defined in this case between the 40th and 80th income percentiles — than ever before. Median income for people 75 years and older has also risen, but not as much as it has for people in the 65-74 age group. One of this relatively fortunate group is Monette Berryhill, 72. Six days a week she descends from her second-floor apartment for a treadmill workout in the poolside fitness room of her gated complex in Waxahachie, south of Dallas. A widow who says she enjoys her freedom too much to date, Berryhill dines out with friends from time to time and recently took in a country music concert. Her yearly vacation is a San Diego trip to see grandchildren, but this year she expects to splurge on an Alaskan cruise. Berryhill’s past career in customer service at two banks did not make her rich. But her retirement is comfortable. “I feel like I’m doing all right,” said Berryhill. “I really enjoy it.” Some researchers have found that the economic success of seniors is masking an even deeper gulf in income inequality between the upper tier and everyone else than what is evident in the overall statistics. “It’s not so much that older people are experiencing unseemly gains in income,” said Alicia H. Munnell, director of the Center for Retirement Research at Boston College. “It’s more that middle-aged people are not seeing income growing or even keeping pace with inflation.” Nearly half of seniors ages 65 and up consider themselves in excellent or good shape financially, according to a Pew survey last month, in contrast to younger baby boomers, who view their circumstances less favorably. More secure in their finances, many older Americans have congregated in traditional retirement communities. The Villages — a central Florida haven for seniors, with low crime and dozens of golf courses — has been the fastest-growing U.S. metropolitan area for the last two years. Millions of other elderly people have settled in middle-income suburban and exurban areas like Waxahachie. With its muggy weather and neighborhoods of classic gingerbread houses, most seniors here are thriving, riding an overall population boom. But the current crop reflects some different choices from those who lived in the area three decades ago. For one thing, many more of them are working to supplement their income. “The whole meaning of retirement is changing,” said Gary Koenig, vice president for economic and consumer security at the AARP Public Policy Institute. “People are living longer; they have to fund more years of retirement.” Charles Kozlovsky, 73, retired from his job driving an 18-wheeler in 2009. Two years later he went to work as a school bus driver. The job keeps him busy, but the work can be stressful; on a recent day a student was suspended from his bus for bad behavior. In between routes, Kozlovsky goes to the senior center, a popular hangout for its 1,350 members that offers everything from poker games to Zumba for anyone 50 and up. For holidays, he and his wife play host to grandchildren who live nearby, setting up tables in the garage and back porch to squeeze everyone in. The couple tend their backyard lemon and peach trees; sometimes they take trips to Branson to see musical shows. Kozlovsky particularly enjoys his meticulously restored, shiny red 1957 Chevy, which he shows off in the parade at the annual National Polka Festival in nearby Ennis, Texas. “Things got a little bit better when I started driving a school bus,” Kozlovsky said. As recently as the late 1990s, only 1 in 5 Americans in their late 60s had a job. Now, that number has jumped to almost 1 in 3. And unlike in their parents’ generation, more women are earning paychecks than in the past, contributing to household income. Researchers say these factors are in large part responsible for the substantial rise in median household income that seniors in their late 60s and early 70s have experienced since 1989, even as Americans in their prime working years have mostly treaded water or lost ground. Not everyone, of course, can work later in life. Health problems and age discrimination present major hurdles. And many of those who find jobs consider them barely adequate. Pat Cherry, 72, had been earning minimum wage at a job in the library of the city-run Waxahachie Senior Center. Cherry, who is divorced, had to retire early from a bookkeeping job after an autoimmune disease caused her to miss too much work. She could barely pay her bills until she found the part-time job through a government-sponsored work program, but it expired last month. Cherry is worried no one will hire her again. “I need the money desperately,” she said. Still, for those seniors who manage to work longer, the benefits can be significant, providing a much-needed enhancement to retirement income. And for those with enough money from a job to postpone receiving their monthly checks from the government, the value of future Social Security payments rises by about 8 percent for each year of waiting, up to age 70. Social Security benefits make up more than half the total income for a majority of the nation’s elderly — 52 percent of married people and 74 percent of unmarried people, according to the federal government. Kathleen McGarry, an economist at the University of California, Los Angeles whose research focuses on the well-being of seniors, calls Social Security “the single most important tool in combating poverty among the elderly.” For Jim Engel, 72, his government benefit offered a lifeline after he lost his bakery business during the recession. The checks let him put off the sale of his nest egg, a Tennessee walking horse barn, allowing time for property values to recover. “I feel blessed,” he said. To be sure, many older people have trouble making ends meet and some are saddled with responsibilities that exceed the reaches of the safety net. Mary Walker, 74, who fled New Orleans during Hurricane Katrina with no more than an extra pair of underwear in her purse, is now raising two young great-grandchildren on her own not far from Waxahachie. “At this age I shouldn’t be struggling,” she said. But older Americans in general are significantly wealthier compared to previous generations. The median assets of people ages 65-74 doubled between 1989 and 2013, a far greater gain than other age groups experienced. And while there has been a decline from the peak since 2007, largely because of the real estate bust, this age group lost less than others. Berryhill, the widow in the gated complex, had no debt on her home on 3 acres when real estate prices were plummeting. By the time she put her house on the market in 2011, it sold in one week, at a significant profit. Besides that cushion, she gets about $1,600 a month in Social Security and has proceeds from retirement accounts. She pays nearly $900 a month for a spacious, one-bedroom apartment Government data on consumer spending reflects the new reality. Adjusted for inflation, older Americans spent 18 percent more per household in 2013 than in the late 1980s, while spending for other age groups remained relatively flat. Higher health care costs, which fall more heavily on the elderly, accounted for a portion of the difference, but seniors spent 57 percent more on entertainment, and significantly more on a wide range of items, including homes, rental cars and alcoholic beverages. Berryhill was 66 when she retired. Her husband, Warren Berryhill, died of heart problems seven years ago. At age 68, he was still working full time as a debt collector. “We thought it would give us more money to retire on when we did retire,” Berryhill said. Berryhill is much better off than her parents, who grew up during the Depression. Her father, who was a gasoline truck driver, had to retire at age 61 because of a heart ailment. Her mother did not work outside the home. They were always able to pay their bills, but Berryhill said they never took a vacation trip, let alone left Texas. “We weren’t rich but we didn’t hurt for being hungry or anything like that,” Berryhill said. She worries how her two children will fare. Their paychecks are bigger, but Social Security payouts, she fears, could be smaller when her children reach retirement age. They might have to take out loans to help pay for their children’s college educations. They have 401(k) savings plans at work but those are not as generous as her employer-sponsored pension. But she always taught her children to save, and she cannot do much more now, she says, than hope for the best. Read more here:

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

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How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Ted Ehney Jr. – Second Chances

ROB ROBERTS | KCBJ A partnership led by Ted Ehney Jr. plans to redevelop this tower and attached annex at 601 Minnesota Ave. in Kansas City, Kan., into a mixed-use property. Ted Ehney Jr., who was involved in the development of two of downtown Kansas City's largest skyscrapers before running afoul of the law, now is focusing on the revitalization of downtown Kansas City, Kan. Kansas City Kansas Properties LLC, a partnership Ehney leads, has acquired the seven-story office tower at 601 Minnesota Ave. from UMB Bank and plans to redevelop it as a mixed-use project. Ehney said the 60,000-square-foot office tower and an adjoining two-story, 15,000-square-foot annex, which his partnership also acquired, are vacant except for UMB, which has a branch on the ground floor of the tower. Despite its relatively modern exterior look, the tower was built around 1925, and Ehney said plans call for restoring the original architecture hidden behind the current facade. As part of an effort to win historic tax credits for the project, he said, Joy Coleman of Treanor Architects has been retained to help get the building placed on the National Historic Register. Ehney does not yet have an estimated project cost to share, he said, "but we're beginning to get an idea that it's not cheap." The redevelopment effort, which Ehney characterized as "a two-plus-year project," is aimed at revitalizing the property with ground-floor restaurant space (in the annex if UMB decides to remain in the tower), 25 market-rate apartments and a limited amount of office space. "I think it'll be a little jewel and a catalyst for what can be a really neat area," Ehney said. Greg Kindle, president of the Wyandotte Economic Development Council, said he is hopeful that projects like Ehney's will help attract entrepreneurial businesses outgrowing Kansas City Startup Village to the city's downtown area, which has been served by Google Fiber since February. Kindle was speaking over coffee at Cup on the Hill, a new tenant in the building at 730 Minnesota Ave. — one of two neighboring structures that Lamar Hunt Jr. is redeveloping through his partnership, Loretto Properties LLC. Like his project will be, Ehney said, the coffee shop is a "cool" addition to downtown KCK. "I think once projects like this start moving forward and more amenities are afforded to the people considering moving to the area, it will cause them to say, 'Hey, this is OK; this is cool,'" Ehney said. "People like being around cool stuff." Ehney wouldn't rule out pursuing further projects in downtown KCK, which has yet to share in the economic prosperity being experienced in western Wyandotte County. But he isn't committing himself to more, either. "We're going to do this like they catch elephants — one at a time," Ehney said. Meanwhile, however, Ehney said he plans to revive another elephant called Seabiscuit Park in the Northland, where he was developing Executive Hills North when his development empire began to crumble a quarter of a century ago. In 1990, foreclosure ended Ehney's ownership of more than $50 million worth of office, office-warehouse and retail buildings in Executive Hills North, which is near Kansas City International Airport. Ehney pleaded guilty to defrauding lenders the following year and was sentenced to 24 months in prison in 1994. He served half of that term. In 2008, Ehney announced that he was taking another run at the Northland development market with a project near KCI called Seabiscuit Park. Plans called for nearly 1 million square feet of offices, hotels and restaurants on property Ehney's Seabiscuit Park LLC bought in 2005. Nearby, Ehney had made his first attempt at a Northland comeback in 2004, when 11500 LLC, a partnership he was part of, bought the former Trans World Airlines administrative center at 11500 N.W. Ambassador Drive. Soon after the TWA building's purchase was financed with an $18 million loan from Columbian Bank and Trust Co., Ehney said, "We're going to take a landmark structure and bring it back" via about $6 million in upgrades. But 11500 LLC bought out Ehney's stake in the building in 2005, and the partnership lost the building after the Federal Deposit Insurance Corp. seized Columbian Bank and Trust in 2008. The FDIC subsequently auctioned off the $18 million note secured by the building, and the Kauffman Foundation acquired the property through a $9 million bid and foreclosure proceedings. Ehney said he still controls the 18-acre Seabiscuit Park site, which is southwest of interstates 29 and 435. "I was able to get it zoned some time back, of course with plans to move forward at that time," Ehney said. "But then the recession came so we, like so many others, were required to put our project on hold. Now, we're revisiting the previously approved plan, and there's some new and current things we're going to try to take advantage of. It will be a typical type of project that you would see around airports." Asked when Seabiscuit Park might get out of the gate, the 68-year-old developer said, "I would love to say within a year, but it will probably be longer." But even when he errs on the side of conservatism, Ehney knows his claims will be questioned by some, given his record. Here's what he said about that: "Obviously, that (jail sentence) was 20 years ago. I believe if one tries to do the right thing and treats others as he'd like to be treated, it begins to show people (he's changed). Second chances are a fabulous thing; I can't think of anyone in life who hasn't been given a second chance." Ehney, who characterized himself as "very persistent and a God-fearing person," was born and raised in Texas. He came to Kansas City and established Executive Hills Inc. here in the mid-1970s and after his prison term reportedly settled in California. But Ehney said he now lives in Kansas City and has for decades. He just doesn't like to be seen around town. "Believe it or not, I am very nonsocial," Ehney said. "I'm not rude about it. I just don't like attending social things and being recognized. Unfortunately, my career has caused that to be somewhat different, plus I'm an old guy

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Non Traditional Home Sales – Seller Financing, Lease Purchase, Installment Sales

In today's changing market homes are selling in more "nontraditional" ways than in the recent "bubbly" past.  The three most common varieties of nontraditional sale are private money (otherwise known as seller financing), lease purchase agreements and installment sales. Brian explains how regulations and laws have rendered seller financing virtually impossible, leaving the other 2 options on the table. Lease purchase agreements are where a seller agrees to rent the property to a "buyer" for some period of time, with the buyer agreeing to proceed forward with a full purchase subsequently. No equity interest is promised to the buyer until they move forward with the actual purchase or make a down payment. An installment sale is where the seller and buyer agree to a large initial down payment (nonrefundable of course) followed by additional payments at regular intervals. The buyer accrues equity in the property to some degree as they make payments against the full purchase price. Installment sale poses more inherent risks, in particular financial risks for both parties, especially if the property is already secured by a mortgage. The buyer is putting down a large piece of change without being able to foresee the future, and the seller is compromising their ownership stake by accepting payments that are partial. With lease purchases, there is less inherent financial risks but there are definite risks that the buyer or seller will get cold feet or the buyer would damage the property and move out before consummating the sale portion. For folks with poor or recovering credit and some cash in hand a nontraditional transaction may well be the only option. For sellers with homes languishing on the market, accepting a nontraditional agreement of sale may be the best hope to move

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

New Ways to Profit From Renting Out Single-Family Homes

By ANNAMARIA ANDRIOTIS Two-and-a-half years into the U.S. housing recovery, the real-estate industry is rolling out new ways for individuals to invest in the property market. Brokers, property managers and others are helping buyers purchase houses in distant cities and manage them as rentals for a fee. Publicly traded trusts that collect rental income are selling shares to investors. And crowdfunding startups are matching buyers with willing lenders. The latest pitches generally aim to eliminate the day-to-day headaches of being a landlord, and the potential payoff can make the concept worth considering. Investors can buy in for the price of a single-family home or a single share of stock. But the plunge in U.S. home prices in the financial crisis should be a fresh reminder that bets on housing can sour in a hurry. The latest deals often don't depend on home values going up, which sets them apart from the house-flipping strategies that cost many home buyers dearly when the market collapsed. Yet investors could still face losses if, for example, the economy weakens and renters can't keep up with their payments. Advertisement Those who buy a rental property and then need their money back down the road could also get burned. Unlike stocks, bonds and mutual funds that can be sold quickly, it can take months to unload a house even in a strong market. And if prices decline, investors may lose a chunk of principal for good. Despite the risks, investors worried about pricey stocks and meager bond yields can be lured by the prospect of a steady income stream and average annual returns that could range from 5% to 15%, if things go well. Don't go overboard. Investors should maintain a diversified portfolio that also includes stocks, bonds and cash. Single-family homes shouldn't exceed 5% of their investments, not including their primary residence, says Jeff Sica, president of Sica Wealth Management in Morristown, N.J. For the moment, the supply of rental homes and the demand from renters are high. Some 14.9 million single-family homes were occupied by renters in 2013, up 31% since 2006, before the U.S. housing market collapsed, according to data released this past week by the U.S. Census Bureau. The vacancy rate on single-family rentals fell to 7.3% in the second quarter, down from 10% in the fourth quarter of 2008, according to the bureau. Here's what you need to know about making money in the rental market. The Traditional Route Many investors become landlords on their own. Millions of the single-family homes occupied by renters are owned by investors who have just one such rental property, estimates Jade Rahmani, who tracks the single-family rental market as an analyst at Keefe, Bruyette & Woods, an investment bank based in New York. There are many benefits to going the traditional route. You get to choose the tenants, and you decide how much rent to charge them. You don't have to pay fees to a property manager, which can eat into your returns. But it also means taking on a lot of responsibility, both when buying the property and while owning it. Would-be landlords should figure out whether they are paying a good price. That means knowing the market and hiring an inspector to determine what repairs a house may need. Buyers should lower their offer to account for expensive repairs such as to the roof or boiler, says Jack McCabe, an independent housing analyst in Deerfield Beach, Fla. Investors should plan to own a home for at least 10 years and realize that they may shell out significant sums before seeing a return on the investment, says Mr. Sica. Be careful about taking out big mortgages. "Low borrowing rates encourage speculation," he says. "Investors are constantly tempted to take cheap money and not be as diligent with the deals they do." Investors should also research the expected annual expenses, including property taxes, insurance and maintenance, says Mr. McCabe. Allow for the fact that property taxes and insurance rarely decline, and can sometimes spike suddenly. The net gain, once taxes on rental income are factored in, should be at least 8%, he says. Landlords also routinely get emergency calls from tenants about urgent repairs, so it is often best to live or work in the area to get to the property quickly, if necessary. Experts say tenants tend to take better care of a home when they know the owner is nearby. Be prepared for worst-case scenarios, and study local laws. Landlords, for example, may have limited options if a tenant stops paying rent, and evictions can take months in some places. One-Stop Shopping To many investors, doing all that work sounds hard. An expanding roster of real-estate firms promise to make the process easier—for a price. Memphis Invest, a real-estate brokerage based in Memphis, buys properties—which have often gone through foreclosure—fixes them up, rents them out and then sells them to investors. It will also manage the property for a fee. It has been operating in the Memphis area since 2004, and it expanded to Dallas in 2010 and Houston in January. HomeUnion, based in Irvine, Calif., helps clients find prospective rental properties and purchase them. The firm will then help buyers find property managers. HomeUnion launched in 2011 and operates in 15 metropolitan areas, primarily in the Southeast and Midwest, and is expanding to others by year-end. San Francisco-based Dwell Real Estate Advisors also helps buyers find rental properties to purchase. Typically, the homes already have tenants. Dwell will help clients find a property manager. The firm operates in and around Atlanta, Chicago, Dallas, Houston and San Antonio, as well as in Northern California and South Florida. The firms generally look for homes that have low prices, usually $60,000 to $150,000, but that have the potential to fetch relatively high rents. In addition to helping investors find a house to buy, the firms make it easier to invest far from home, including in markets where home prices may be lower. Mike Cook, who is 61 years old and lives in Hollister, Calif., says he has spent about $350,000 purchasing five rental homes in the Indianapolis and Cleveland areas through HomeUnion over the past 18 months or so. "I was looking for what I consider a more stable return on investment," says Mr. Cook, a manager at a construction-materials firm. "It's not about appreciation of properties. It's really about cash flow." He says he has earned a 5.5% to 7% return on each property so far, after management fees and property taxes. But investors also surrender a great deal of control in such deals, particularly if they don't live nearby. They should consider visiting the property before purchasing it, or at least request extensive pictures of the home, including all the rooms, the roof and major appliances. Research the local market, too. For example, investors can check the Bureau of Labor Statistics website to see whether the local unemployment rate is decreasing, which could suggest a smaller chance of renters falling behind on their payments. In addition, the National Association of Realtors' website provides quarterly updates on median home-sale prices in many metro areas. Rising prices suggest that investors have a better shot at recouping their cash—and possibly turning a profit—if they suddenly have to sell. There are other potential drawbacks. Memphis Invest charges a 15% to 20% premium on the homes it sells, says Chris Clothier, a partner at the firm. That could make it harder for an investor to unload the property at a profit in the near term. Fees can also add up. HomeUnion, for example, charges 1% of the purchase price annually as long as the investor owns the property. It also charges 7% to 10% of monthly rent when the home is occupied. Memphis Invest charges 9% to 10% of monthly rent, depending on the number of homes it manages for an investor. Investors should also plan to closely track a property manager's expenses and review receipts for repairs. In addition, investors should consider what could happen if the home is vacant or the renter doesn't pay. Some of the firms guarantee rent payments for a year, but even they make no long-term promises. Taking Stock Investing in a home means placing a risky and concentrated bet. So does buying shares in a company that owns homes—but the price tag can be much lower. Firms that own portfolios of single-family rentals are for the first time offering shares to the public through real-estate investment trusts, or REITs, says Jason Lail, manager of real-estate research at SNL Financial, a financial-information firm based in Charlottesville, Va. Six REITs that are entirely or primarily focused on single-family homes have started trading publicly since the end of 2012. Many of the properties were distressed homes purchased from banks at a discount, then repaired and rented out. Much of the rent the REITs collect gets passed on to investors. Shareholders must receive at least 90% of a REIT's taxable income in the form of dividends each year. Performance varies widely. For example, one such REIT, American Homes 4 Rent, has logged an 8% gain this year, including dividends, through Thursday, while another, Altisource Residential, has logged a 12% loss, according to FactSet. Investors should consider the risks of an investment that is so new. Before buying shares, investors should review a REIT's holdings by checking the firm's website and filings with the Securities and Exchange Commission. REITs that bought single-family homes around 2009 and 2010, when home prices were near bottom, may provide greater returns, says Mr. McCabe. So may REITs that are currently buying in cities where purchase prices and other costs are relatively low, such as Dallas, Indianapolis and Nashville, he says. The company's management can also be crucial. Returns could depend on the companies' access to capital and operating efficiency, among other factors, says Mr. Lail. Crowded House Crowdfunding—the practice of pooling small amounts of money from many investors—has helped budding entrepreneurs capture the imagination of strangers who combine to bankroll a dream. Recently, home buyers who think they have found a promising fixer-upper have gotten into the act. New online crowdfunding platforms that focus on housing, such as Groundfloor, iFunding and Patch of Land, have launched over the past year or so. These firms consider pitches from borrowers who want to repair a home, then sell it or rent it. The firms then post the approved projects online, listing the property, the requested loan amount, the interest rate the borrower will pay and the amount of time it will take the borrower to repay the loan. Typically, investors decide how much cash they are willing to put up. Groundfloor will accept as little as $100 per lender. Michael Patzer, a 27-year-old software engineer who lives in Atlanta, says he began making loans through Groundfloor in March and so far has helped fund seven deals by putting up $300 to $1,600 for each. The loans must each be repaid after six months, and the interest rates range from 8% to 12%. He has already been paid back on two of the deals. He chose short-term deals and focused on homes he believes are a good value in an effort to limit potential losses. "I certainly think of the risk in any of these projects," Mr. Patzer says. "This hasn't been done before." But there are limits and risks to crowdfunding. In some cases, investors may only be able to participate if they live in the same state as the house. Groundfloor currently operates only in Georgia. Others have a greater reach but are currently only available to accredited investors—individuals with annual income of more than $200,000 or a net worth of more than $1 million, excluding their primary residence. IFunding handles deals in Indiana, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Ohio, Texas and Wisconsin. Patch of Land operates in California, Florida, Georgia, Illinois, New Jersey, New York and North Carolina, and it is expanding to seven more states soon. If borrowers default, the platforms say they can foreclose on the properties and sell them to make investors whole. Some will consider renting the property instead. But investors could be at risk if home prices fall or the economy falters—two possibilities that investors who lived through the financial crisis should know are all too

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Kansas City: Real Estate and Market Trends

By Than Merrill   Over the past five years, the Missouri housing market has been slow to recover. However, some argue the market’s recovery started in 2011. It wasn’t until 2012, however, that definitively confirmed the slow but steady upwards movement of Missouri’s real estate market. As perhaps the biggest beneficiary of the Missouri recovery, Kansas City is now in a great position to prosper. As a result, the Kansas City housing market could serve as a boon to real estate investors. Kansas City, like San Diego and Houston, was subjected to incredible rates of appreciation. While prices are up from last year, the rate in which they are increasing is beginning to temper. With the slow down, the current median price for a home in Kansas City is $164,300. As a comparison, the national average is $212,267. Homeowners in the Kansas City housing market have become the beneficiary of three years of appreciation, serving to drive up equity. The following highlights how much equity has been gained relative to the year of purchase: Homes purchased in the Kansas City housing market one year ago have appreciated by an average of $7,398, whereas the national average was $12,731 over the same period. Homes purchased in the Kansas City housing market three years ago have appreciated by an average of $33,477, whereas the national average was $51,204 over the same period. Homes purchased in the Kansas City housing market five years ago have appreciated by an average of $30,937, whereas the national average was $48,225 over the same period. Homes purchased in the Kansas City housing market seven years ago have depreciated by an average of $20,882, whereas the national average increased $1,750 over the same period. Homes purchased in the Kansas City housing market nine years ago have depreciated by an average of $28,538, whereas the national average increased $5,043 over the same period. Employment levels in the Kansas City area have held their own since the recovery began to gain traction. Of particular importance, however, is the third consecutive year of employment growth that has followed the recession. In fact, the job sector has returned to its pre-recession levels. Conversely, the U.S. as a whole remains more than 1.5% below its employment level at the end of the last expansion. Sales of single-family homes, condos, and townhomes make up the majority of the Missouri housing market. These types of properties make up nearly 60% of all listings in the region. The same can be said about Kansas City. Kansas City Residents are more interested in buying family homes than any other type of property in the area. Sellers, on the other hand, noticed the trend and met the demand. This would explain the overwhelming majority of single-family homes up for sale. While we have just entered into 2015, the entire Missouri housing market appears ready to make sizable strides towards recovery. For the foreseeable future, experts like the direction the state is heading However, current conditions don’t necessarily favor sellers. Even if most transactions run smoothly and the number of transactions steadily increased over the past few years, buyers still expect to get a lot of value for little money. There is a relatively small amount of homes available for sale in the Kansas City housing market. “The prices are coming up,” said realtor Cynda Rader, owner of Cynda Sells Realty Group. “We’re in a good, strong sellers market.” Perhaps even more importantly, data suggests that Cynda is correct in her assertion. As of October 2014, the market started to improve. Prices are going up because the number of homes on the market is dropping. This is just one prominent example of a housing market that is poised to make a significant rebound. In addition to rising home prices, the number of new home starts remains encouraging. According to reports, homebuilding activity reached its highest level for October in seven years. The Home Builders Association of Greater Kansas City said “465 permits for single-family home construction were issued” in the record setting month. That was the most permits the area has seen since 2007, before the recession took hold of the entire housing sector. Of the eight area counties surveyed by the association, six have increased their permit counts from the previous year. Platte County and Miami County were the only two regions to not exhibit increased permit counts. However, the recent boon in real estate is not only thanks to single-family houses. Both apartment buildings and multifamily units continue to aid in the region’s current recovery. In October, 78 multifamily housing units were added, bringing the yearly total to 3,246. That’s up from 2,493 units through the first 10 months of 2013. One more factor contributing to the recent success seen in Kansas City is the demand for what locals are calling “industrial underground space.” The underground real estate occupies more than 21.8 million square feet in the city, and is the largest of its kind in the U.S., comprising more than 7 percent of the metro’s total industrial area. Perhaps even more importantly, demand for the underground space is increasing. Manufacturing and expanding distribution centers are only making the demand for underground real estate more prevalent. The potentially lucrative, yet nontraditional, real estate may be a great niche for new investors to consider. While the cost of leasing underground space has long been lower than above ground space, the gap is narrowing. According to CoStar, “the cost of above ground industrial space in metropolitan Kansas City fell 1.7%, to an average of $ 3.99 a square foot in the 12-month period that ended in September.” Underground space, meanwhile, rose 5% to $3.43. Kansas City Housing Market Summary: Current Median Home Price: $164,300 1-Year Appreciation Rate: 2.9% 3-Year Appreciation Rate: 19.9% Unemployment Rate: 6.3% 1-Year Job Growth Rate: 0.2% Population: 467,007 Median Income:

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Sellers market

May 28, 2015 Kent Hoover Sellers are in the driver's seat in the housing market since there are lots of buyers looking at a limited number of houses. Sellers are in the driver's seat in the housing market since there are lots of buyers… more Pending home sales hit their highest level in nine years in April, a sign that last month’s sales decline for existing homes may be only temporary. The National Association of Realtors’ Pending Home Sales Index, which is based on contract signings, jumped to 112.4 in April, rising for the fourth consecutive month. That’s its highest level since May 2006. All four regions of the country saw more contract signings in April, led by the Northeast and Midwest. “Realtors are saying foot traffic remains elevated this spring despite limited — and in some cases severe — inventory shortages in many metro areas,” said NAR Chief Economist Lawrence Yun. “Homeowners looking to sell this spring appear to be in the driver’s seat, as there are more buyers competing for a limited number of homes available for sale. “As a result, home prices are up and accelerating in many markets.” There’s a limit, however, as to how high prices can go since mortgage interest rates are beginning to rise. “The housing market can handle interest rates well above 4 percent as long as inventory improves to slow price growth and underwriting standards ease to normal levels so that qualified buyers — especially first-time buyers — are able to obtain a mortgage,” Yun

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

All cash buyers……

One in three buyers of U.S. homes is paying cash, a record high number, according to data made available to McClatchy Newspapers. The trend is being driven by retiring baby boomers and rich investors, who unlike most first-time buyers can bypass tighter lending requirements to pay cash. They now rule the roost, composing record percentages of residential home sales. It’s meant the field is closed off for conventional purchasers in some hot markets, but in others it’s meant forward momentum for the struggling housing sector. All-cash sales as a percentage of residential real estate sales stood at 33 percent from January to March this year. That’s up from 31 percent for all of 2013 and 2011 and 29 percent for 2012. These are the highest percentages since the National Association of Realtors started collecting the data in 2008. Before that, it estimated that cash buyers historically represented less than 10 percent of all sales. The group analyzed state-level numbers on behalf of McClatchy, and it found that states such as Florida, South Carolina and Wyoming had outsized cash sales during the first quarter of 2014. The rising cash sales come despite a drop in one of the main draws for cash purchases: financially distressed properties sold through foreclosures or at a loss to the banks. “What is surprising is how cash continued to remain high even though distressed property sales are declining. Distress sales invited all the cash purchases,” said Lawrence Yun, the chief economist for the Realtors’ group. Distressed home sales declined from 26 percent of the national market in 2012 to 17 percent in 2013 to 15 percent over the first three months of 2014. It means that even as the housing market heals and conventional sales return, all-cash purchases remain a big chunk of residential sales. Yun points to a couple of trends that are driving the boom in cash purchases, trends that fall into the broader debate about rising income inequality in the United States. One driver appears to be wealthy investors, foreign and domestic, diversifying into real estate. Another is baby boomers selling homes that were paid off and retiring elsewhere with the proceeds, purchasing homes. “Trade-downs are certainly a reason,” Yun said. “The five-year bull run on the stock market is also helping the upper-end households,” he added, noting many are diversifying out of stocks after several years of big gains. That’s in line with what 41-year veteran Sandra Schede has been seeing. “The rates (of return) are so low for putting their money into the bank or investments at this time that it makes much more sense to purchase real estate using cash,” said Schede, the incoming president of the Connecticut Association of Realtors. “The rental market is really strong right now, so it gives them a better return over a short period of time.” Boomers are buying the higher-priced properties with cash, while investors tend to buy below the midpoint price. The trend raises questions about where first-time homebuyers fit in.“I am worried, honestly, about having a real-estate finance structure that enables people to borrow and get a reasonable mortgage,” said Leslie Appleton-Young, the chief economist of the California Association of Realtors. Her state sees cash buyers from China and Canada snap up investment property of all sorts in Los Angeles and the San Francisco area, and often traditional buyers “are not able to compete with all-cash,” she

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

KCLAWYER serving the following Missouri communities

kcrealestatelawyer - Mark A. Roy -  serves clients in Jackson County, Clay County, Platte County and Ray County and the communities of Kansas City, North Kansas City, Raytown, Grandview, Lee's Summit, Blue Springs, Grain Valley, Independence, Richmond, Liberty, Excelsior Springs, Kearney, Smithville, Platte City, Parkville, Weston, Gladstone and Riverside CALL 816-813-0271 OR

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

If you plan to buy your first home, trade up to a larger home, or downsize now that your children are out on their own, or are in the process of selling your property, Mark A. Roy, a real estate lawyer can provide you with insight and legal guidance from start to finish.

If you're a buyer, our lawfirm can: Explain the terms of your purchase contract Protect you from hidden liabilities with respect to your new home Review real estate documents that relate to your title, mortgage, and taxes Register legal documents pertaining to your real estate transaction Attend your closing and address your questions Ensure that you possess valid ownership documentation If you're a seller, our lawfirm can: Ensure that your purchase and sale agreement terms properly protect your interests Deal with any issues that arise with your title Represent you during negotiations with the buyer and walk you through your closing CALL MARK ROY

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Does bankruptcy ever make sense?

Filing bankruptcy can be a long-term solution for some people, depending on what the debtor is trying to accomplish.  Benefits provided by bankruptcy: Surrender – If a debtor wishes to dispose of a secured asset (an asset that has a loan attached to it), such as an unwanted car, boat or house, the debtor can accomplish this within the bankruptcy proceeding. This available option frees the debtor from having to go through the process of trying to sell an asset. Debtors will often times choose to surrender an automobile when they feel that it does not make financial sense to hold onto the vehicle. Houses are also frequently surrendered in bankruptcy when the debtor no longer wishes to keep the property, nor do they want to go through the burdensome process of trying to sell the property (especially when they will likely not receive any profit from the sale of the house). (7 or 13) Stop Creditor Calls – The filing of a bankruptcy will stop creditor calls in their tracks! This is due to the ‘automatic stay’ that immediately goes into effect upon the filing of the bankruptcy. If a creditor continues to call you or anybody else in relation to your debt, they will be violating federal law. Violation of this federal law will result in severe penalties for the creditor. (7 or 13) Stop Collection Efforts – Once a bankruptcy has been filed, your creditors are no longer allowed to contact you by any means. This means no letters, calls, emails, personal visits and threats. (7 or 13) Stop Repossessions – The filing of a bankruptcy will immediately stop any repossession efforts on behalf of your secured creditors. Even if your vehicle was already taken into possession by the creditor, we may still be able to force the creditor to return the vehicle to you! (7 or 13) Stop Wage Garnishment – If your wages are being garnished, a bankruptcy filing can stop the garnishment immediately. (7 or 13) Cramdown – Under chapter 13 bankruptcy, a debtor can ‘cramdown’ a car loan if the financing on the vehicle is at least 910 days old. Meaning, If your car was financed more than 910 days ago (about 2 ½ years ago), it may be possible to reduce the amount owed on the vehicle to reflct current market value. EXAMPLE: Your car is worth $8,000, but you owe $22,000 on the vehicle, you will likely be able to ‘cramdown’ the loan to $8,000 and that amount will represent the new loan on the vehicle. The same cramdown option may be available for the debtor on an investment property, with certain restrictions and limitations. (13 only) Lien Avoidance – A debtor in bankruptcy may be able to avoid liens on real property and other assets, thereby eliminating the debtor’s liability associated with the lien. (7 and 13) Cure mortgage arrearages – Chapter 13 bankruptcy may allow a debtor 3 to 5 years to make-up missed mortgage payments. (13 only) Cure car payment arrearages – Filing a chapter 13 bankruptcy will allow a debtor to get caught-up with car payments over a 3 to 5 year period. (13 only) Numerous Additional Benefits – Bankruptcy offers numerous additional benefits to debtors. It is necessary to met with an attorney in order to explore these additional opportunities for relief. An attorney at our firm will take the time to explain the various benefits, as well as the drawbacks, bankruptcy has to

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

From Broke to $4,600/Mo in Passive Income By Age 28

By Brandon Turner I knew it would be the worst day of my life. Throughout my childhood and teen years, I saw it coming. And it scared me to death. I’m talking about “the day after my honeymoon.” You see, I knew I had college to look forward to. After college, I had the dating world, travel, and the honeymoon to look forward to. Everyone “knows” the early twenties are the best years of a person’s life. In my mind, those glory days ended with the honeymoon — a symbolic sign that life would cease to move forward. Sure, there would be kids, vacations, raises, etc. — but I knew that the first day of adulthood had officially arrived. There would be no more levels. I had checked the box for high school, college, sex … and then what? That’s why I dreaded this day. The day when I woke up and realized that from this point on, until I hit my 60’s, I would be stuck. The thought depressed me … until I found a way out. Can you relate? For millions upon millions of adults, this is life. Your progress until finally you … just stop. You stagnate. But I found a way around it. Phew! I used real estate to create financial freedom and live a life that I wanted. By age 28, I built a rental portfolio which produced around $4,600 per month in (mostly) passive income. This post is going to share how I did it, and offer tips for how you can do the same. Why I Chose Real Estate as my Path to Freedom I have to admit, I was first sucked into real estate investing from the television. During the mid 2000’s, there were several “flipping” shows that featured an investor tackling a large remodel job and making big money fixing ugly houses and selling them for huge gains. It sounded so easy and exciting — I just had to do it. I bought a home, fixed it up, and sold it without really knowing what I was doing. (This was before the real estate crash… when anyone could flip a house!) Although I cleared around $20,000 over the year, I realized three important things about real estate: #1: Real Estate Has No Limits. My fear about reaching some final “step” was quickly washed away when I realized I could control my own future because there was no limit on what level I could take it to. I didn’t realize this at the time, but the reason I had such fear of growing old and stale is because I was an entrepreneur stuck in a day-job world. As soon as I realized there was hope – the “day after the honeymoon” never came! #2: Flipping Houses Is Not Passive Income. Yes, I made money (and spent it on my wedding.) However, it was a LOT of work, stress, and risk. I realized flipping houses was just a business. It appealed to the entrepreneur side of me – but it was still trading time for dollars, which I was beginning to see was my enemy. #3: Real Estate Can Produce Outsize Gains. For example, I bought that first home with just a couple thousand dollars down and used credit to remodel the home (not the world’s best choice, but it worked for me this time!) Had I tried to invest in stocks with that could thousand dollars -I would have possibly made a hundred bucks a year. Hardly life changing. You see –real estate is the one asset class that allows you to use creativity and sweat in the place of cash. My First Rental Property (And My First Addiction) After that first successful house flip, I was back at square one, with no home and no income. I began looking for a new home to buy — which is when I stumbled upon the concept of buying a small multifamily property. The home was a duplex located in a nice, blue-collar neighborhood. It was a bank foreclosure, so it needed a little bit of paint, carpet, and cleaning. I bought it, lived in one half, and within a couple weeks I had the other side rented out. The best part? The other unit paid the entire mortgage. More than 100% of it. Which meant I was living for free. This was my first taste of (mostly) passive income and I quickly grew addicted. I say “mostly passive” because there is work involved with managing rental property — depending on how you set up your business. In the beginning, I accepted phone calls from my tenants and did my own maintenance and repairs (though I’ve sinceoutsourced both of those tasks.) My Step-by-Step Path to Growing Passive Income As the title of this post suggests, I went from having nothing to around $4,600 per month in cash flow by the time I was 28. There is a good chance you are wondering how the heck I did this, so I’ll break it down for you here. However, keep in mind that this is just the path I took — not necessarily the path you should take. Age 22: I bought that first duplex that I lived in part and rented the other part out. I stayed for a year or so, and then moved on. The mortgage was right around $600 and I rented the other home out for $625, giving me the opportunity to live for free. As soon as I moved out, however, I rented the home I lived in for $500, providing me around $500 in extra money. However, after paying the utilities and budgeting for repairs, I ended up clearing around $300 per month. Age 22 (and a half!): I bought another house to “flip” … that ended up not selling. The market started crashing all around me, and I couldn’t sell. However, I discovered a tactic (out of necessity) that I’ve used numerous times that helped me turn this flip into a cash flowing rental that brings me around $300 per month – with no money out of pocket. I’ll talk about that strategy a bit more later in this post. Age 23: I bought “the hell house” — a home that just breaks even every month. Not cool. Age 24: This was a big year. I bought a 24-unit apartment complex, using seller financing (which means the sellers act as the bank, and I pay them the monthly mortgage payment each month.) The property was half empty when I bought it, and in rough shape. I spent more than a year turning the thing around, raising rent, fixing problems, and managing the rehab (and doing a lot of the labor myself.) In the end, this property cash flows around $2,000 per month. Age 25: Nothing. What a lame age. Age 26: I bought a triplex with some friends this year, which provides a total of around $600 per month in cash flow. I get half, so approximately $300 per month. Age 27: I bought a four-plex at the start of my 27th year of life, using a hard money loan. There is a 5th unit that I will be renting out after my refinance goes through, and I should be cash flowing around $800 per month within a few months of now. Age 28: I decided to flip a duplex a few blocks from my house, but decided to just keep it for a rental instead for a few years, maybe indefinitely. I’m working on getting a refinance on it right now, but it will be cash flowing around $500 per month when the refinance happens later this month. Age 28: I’m closing on a triplex later this week that provides around$400 per month in cash flow. So add it all up and you get $4,600 per month in fairly passive income. Of course, there’s volatility. Some months, Murphy’s Law kicks in. I deal with an eviction, a trashed unit, extra vacancies, and other problems. Other months, however, I have strong occupancy and everything runs smoothly. I plan for most problems by collecting security deposits from the tenants (sometimes as high as two months’ rent), I have my manager make frequent inspections on the units, and take quick decisive action when things go wrong. The Power of Real Estate Partners At this point, you are probably thinking, “Man! Does this guy work for the Mob?! How did he get so much money to buy all this stuff?” Here’s a secret: I’ve put almost no money into anything I’ve ever bought. Really, probably less than $5,000 total over the past seven years. How did I do this? While I used a variety of techniques (probably every method a person could) my favorite technique was to invest with partners. Essentially, my strategy looks like this: I learn everything under the sun about one specific real estate niche and strategy. I become an “expert” in that very narrow niche. I find a great deal. I negotiate a killer price. I find a partner, who wants to earn a good return but doesn’t want to be actively involved. The partner supplies the down payment and gets the loan on their credit. We both own the house jointly. I manage the property entirely and manage (outsource) every aspect of the deal. We split all profits 50/50. A lot of people ask “but why would this partner want to do this? They are paying all the money, yet giving you half the profit.” True — absolutely. However, as I often say “50% of a great deal is better than 100% of no deal.” The simple truth is that most people will not invest in real estate. They won’t take the time to learn how to evaluate or negotiate a good deal. They won’t call the agents, arrange the financing, or crawl under the houses. (Though I’ve finally outsourced the crawling-under-houses aspect!) The fact is: most people won’t invest. When I pitch a partnership, I give them an easy way to enter the field. Cool, I Got Cash. Now What? My point is not to show off, or to make it sound easy. Sure, in a 1,800-word blog post, it can seem pretty simple. But the fact is, I’ve struggled a LOT to get where I am. I’ve made more mistakes than good decisions. I’ve bought property that I later regret buying. I’ve wasted a lot of time chasing deals that made me no money at all. I’ve even lost money a few times. Reaching $4,600 in passive income took a massive amount of work. But I love it. Life did not end the day after the honeymoon. Now that I have financial freedom, I can live on my own terms. There are many ways to create freedom in your own life. Your path doesn’t have to be real estate investing. — that’s just the path I

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

US Home ownership rate will be at a plateau for several more years

Only about one in four former homeowners who lost property during the housing crash will soon become buyers again as tight credit keeps many out of the U.S. real estate market, according to a National Association of Realtors study. Of the 9.3 million owners who went through foreclosure or were forced to sell at a loss, about 950,000 already have bought again and 1.5 million more are likely to make a purchase in the next five years, the trade group said Monday. “They won’t be a significant factor to the housing market going forward,” said Lawrence Yun, chief economist at the National Association of Realtors. “The majority of the 9.3 million won’t be coming back.” The U.S. homeownership rate fell to 64 percent at the end of last year, a two-decade low and down from a high of 69.2 percent in 2004, according to Census Bureau data. The ownership rate will drop to 63.5 percent by 2016 and plateau for years, according to report last week by Goldman Sachs analysts led by Hui Shan. The 9.3 million homeowners the Realtors group studied gave up their homes through more than 5 million foreclosures and 4 million other distressed transactions since early 2007, including short sales and deeds in lieu of foreclosure, Yun said. The estimate that 950,000 buyers have returned to date is based on surveys showing they accounted for about 7 percent of existing-home sales since 2012, when those who lost property to foreclosure became eligible again for Federal Housing Administration financing, Yun said. California, Florida and Arizona, which had the highest numbers of foreclosures early in the housing crisis, will see the biggest share of return buyers over the next five years, Yun said. Many who’ve repaired their credit and hope to buy again will face challenges in areas where home prices have recovered and affordability is out of reach, such as coastal California, he said. From 2009 to 2013, tight credit stymied about 4 million potential homeowners, including both first-time buyers and so-called boomerang buyers who are coming back from losing property during the crash, according to a report issued earlier this month by Urban Institute researchers Laurie Goodman, Jun Zhu and Taz George. Strict mortgage underwriting is keeping many from re-entering the market, but the loose lending that fueled the housing bubble and ensuing crash enabled unqualified people to become owners, Yun said. “Many of them should not have gotten a mortgage to begin with,” he said. Read more here:

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Are the days of Real Estate Investment over?

Real estate has been one of the best performing assets since 2009. No, we're not talking about regular people's homes. The biggest gains have come from so-called real estate investment trusts -- REITs for short. REITs are companies that own a lot of different properties. Some REITs specialize in just one type of real estate (think apartments in California) while others own a bunch of different kinds of property such as hospitals, office buildings and malls. They make their money much like any landlord does -- by collecting rent. Investors have gobbled up REITs since 2009 for three reasons: 1) REITs trade like stocks. REITs give you real estate exposure a lot easier than having to buy and sell actual buildings. It's good for diversification, which is why sophisticated investors usually have about 5 percent or less of their portfolio in REITs. 2) REITs win big with an economic recovery. The financial crisis that triggered the Great Recession was caused largely by mortgages gone bad. That caused real estate prices to plunge. But when the economy started recovering, real estate (especially office space and urban apartments) bounced back. REITs benefited big time. 3) REITs have high dividends. Quite a few investors, especially retirees, like to have steady income from their investments. Normally they buy bonds to get that income, but the yields on bonds have been incredibly low -- think 2 percent to 2.5 percent  on U.S. government bonds. REITs, meanwhile, have been returning about 4 percent to 6 percent a year in dividends. Investors have been substituting REITs in their portfolios for bonds. It's been a shrewd move. People have received steady dividend payments while the underlying asset has risen in value nearly as much as stocks. One look at the S&P Global REIT chart shows nearly 140 percents returns since March of 2009. Now there's just one big problem: The Federal Reserve. America's central bank is signaling that it will raise interest rates, likely sometime later this year. As interest rates rise from their historic lows, so will bond yields. Suddenly investors who have been buying REITs in lieu of bonds are rethinking that decision. REITs are typically seen as more risky than bonds since REITs have a lot of the characteristics as stocks. Prepare for the REIT market to get ugly for awhile. This year is already shaping up to be a tough one. Check out the S&P Global REIT return chart. It's bounced all around and is currently flat -- 0 percent return. Many of the biggest REITs -- Simon Property Group, Ventas and Health Care REIT -- are flat to down for the year. If you look even closer, it's evident that any time investors think the Fed is likely to raise interest rates, REIT prices fall. And then when investors think the Fed will hold off -- until September or even later -- on raising rates, REITs go back up. The case for REITs: But before you write off REITs entirely, consider this: many top investment houses are advising clients to keep their REIT investments -- and even add to them a bit. Wells Fargo put out a report this week noting that "fundamentals for REITs and the underlying commercial real estate market are quite strong." State Street has gone a step further and said investors should have a modest overweight in REITs. Chief investment strategist Michael Arone sees growth potential in residential REITs now that more Americans have jobs and new home sales and housing starts are picking up. Why keep REITs now? The reason is simple: The Fed will only raise rates when it believes the economy is thriving again. It's a vote of confidence in America's growth. As the economy improves, real estate typically does well too. "The real estate cycle isn't over," says Scott Crowe, global portfolio manager of the Resource Real Estate Diversified Income Fund. If you buy into the growth story, REITs should still benefit. Crowe is looking closely at opportunities in urban apartments and office space. He likes REITs such as Essex Property Trust and Kilroy Realty

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

The effect of Inflation on Housing Prices

A house is a better hedge against inflation than a savings account. Inflation is often defined as a sustained increase in prices for a broad range of goods. Economists explain that rising prices are the symptom, however, and not the cause. The cause of inflation is the devaluation of currency, frequently brought about by the introduction of more currency into the economy. As a simplified example, say there is $100 available to purchase 100 cheese steaks. The price of a cheese steak is going to be $1. Someone prints another $100 exclusively for cheese steaks. The price of the 100 cheese steaks will become $2 each. Inflationary Effects Absent economic and supply and demand pressures, the price of goods remains the same. If the only change introduced to the economy is the addition of money, the price of goods will rise. Of course the economy is dynamic--nothing ever stays the same and there are a host of pressures starting and changing every day. But when the influence of other factors is small, more money moving around more quickly will increase the price of nearly everything. So with inflation, housing prices tend to rise. Leverage Housing is generally viewed as a good asset when it comes to inflation, in part because it will rise with the inflation rate and in part because it is a leveraged asset. When you buy real estate, you make a downpayment of perhaps 20 to 30 percent of the house price. The house price rises by the rate of inflation times the cost of the house, not by the cost of your downpayment. So if inflation doubled the value of the house, it may have quadrupled the value of your downpayment. If you took out a fixed-rate mortgage, you have done even better because you are making a payment that dropped in inflation-adjusted dollars--you are paying less for the loan than you did when you took it out. Moderating Factors Supply and demand influence prices. Even if inflation is high, an oversupply of housing will bring home prices down. Interest rates tend to go up with inflation. Mortgage rates reflect interest rates. If mortgage rates go up too high, people won&#039;t take out home loans. Demand will decrease; home prices will fall. Cyclical Effects Continued and rampant inflation harms an economy. It has devastating effects on people with fixed incomes, notably seniors. It makes it difficult to compete on an international scale because the currency becomes so devalued. And so at some point, whether through the course of events borne through devaluation or aggressive action by monetary policy to reduce the currency supply, inflation ends. It cannot, and historically never has, gone on forever. Timing Because there are so many complex, dynamic, interactive factors influencing the economy, it isn&#039;t really possible to predict inflation. But harbingers include substantial influx of spending by the government within a short time frame and an increase in the introduction of money by the treasury. These are actions taken to counteract a contraction in spending in the private sector. Once the private sector recovers to a normal pattern of spending, one might expect the combination of all three actions to result in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

THE NEW URBANISM TREND: LIVING AT THE SHOPPING CENTER

THE NEW URBANISM TREND: LIVING AT THE SHOPPING CENTER The 10-year-old Zona Rosa, the $200 million mixed-use neighborhood up north at Barry Road, is largely credited as jump-starting the latest living trend, new urbanism, in Kansas City. Residents tired of suburban sprawl and having to get in the car every time they were out of milk or eggs or needed to pick up dry cleaning are gravitating to new mini-town centers combining retail, restaurants, offices, residential living and other services in one compact, nicely landscaped “town square.” Call it the 21st-century version of “living above the shop,” but this new high-density style of residential living is attracting everyone from single, professional millennials to empty

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Tips on staging your home for showing prospective buyers

Even with forecasts for a rise in home-improvement spending this year, it’s still going to be a challenge to convince sellers to pay for upgrades that will please buyers. But with so much housing inventory available, your listings need to be looking their best. That’s why Terrylynn Fisher, CRS, GREEN, a salesperson and staging specialist with Empire Realty in Walnut Creek, Calif., helps her clients focus on the little things that will make the biggest impact at showings. “We need to try to take what sellers have and add to it to make it as appealing as possible,” Fisher says. “There are a number of affordable things you can do to improve the appearance.” Details You may not be able to convince sellers to shell out money to professionally stage their home, but getting it sparkling and clutter-free requires little more than elbow grease. After clearing away clutter, polish the hardwoods, clean the countertops, and dust the light fixtures. You can make a stainless steel sink shine with thrifty cleaning remedies such as baby oil or club soda, according to DoItYourself.com. Fisher likes Howard Products’ line, which includes Restor-A-Finish (about $5 per can). It comes in various wood finishes and can be used to polish cabinets and even blend out minor scratches and imperfections. Tips: Box it up. Most people pack up after they sell the house, but why wait? Sellers should start packing as early as possible—ideally, before they put the home on the market. Show off the laundry space. Buyers will be impressed if the laundry room is fresh, inviting, and organized. Make sure light bulbs are working, and hide soaps in a cupboard or line them neatly on a shelf. Focus their attention. Pick a focal point for each room. For example, the focal point of a bedroom is usually the bed, and for a music room, it’s the piano. If a room is mostly empty, you can help draw attention to a corner with a plant or mirror. Floors Hardwoods are on most buyers’ wish lists (red oak being the most popular, according to the National Floor Trends 2010 market study). Hardwood flooring averages about $5 to $15 per square foot, plus about $2 to $8 per square foot for installation, so it’ll be pricier than vinyl, carpet, or other options. But it can make a huge difference. You may find less expensive hardwoods by going directly to installers, who buy their inventory wholesale, Fisher notes. If it’s a small area, the upgrade won’t be as expensive, says remodeling industry expert Bill Millholland, an executive vice president with Case Design/Remodeling Inc. To imitate the look for less, try vinyl or Bamboo flooring, a sustainable resource that resembles wood but averages $4 to $6 per square foot. Tips: Call the experts. Dirty, worn carpet may benefit from professional cleaning, ranging about $180 to $390 for a 1,300-square-foot home. Refinish it for cheap. Practically any beaten-up hardwood can be salvaged with refinishing, about $340 to $900 for a 15-by-15-foot room, according to CostHelper.com. Call a professional tile company to freshen up ceramic tile grout—or, for do-it-yourselfers, hardware stores sell grout paint. Add a layer on top or bottom. One other option for lackluster flooring: Use an area rug, even over carpets. It’ll add a splash of color, and bring definition to living areas. If you’re adding inexpensive carpeting, consider upgrading the carpet pad, Fisher says. It’s only about 50 cents more per square foot and it will make a budget carpet feel luxurious, she says. Lighting New lighting fixtures are a quick way to create ambiance. Just avoid brass lighting fixtures, which had their heyday in the 1980s. More contemporary choices are brushed nickel and chrome finishes. Also, rust and oil-rubbed bronze are becoming more popular as more home owners set out to have lighting that doubles as an accent feature, says kitchen and bath designer David Alderman, 2011 National Kitchen and Bath Association president. Use lighting to highlight special features—pendant lights to show off that kitchen island or sconces to illuminate a foyer. Under-cabinet lighting in the kitchen is affordable and makes countertops sparkle, Millholland says. Fluorescent light strips tend to be more affordable and easier to install than puck lights. Tips: Go natural. Open those blinds and wipe down the windows. You’d be surprised at how much a simple window cleaning can instantly improve natural light. Save on energy costs. Compact fluorescent bulbs remain the go-to choice for energy efficiency. Early CFLs didn’t always deliver on light quality or convenience, but they now come in warm, neutral, and cool colors, and major manufacturers are now enclosing the spiral tube in a conventional bulb shape. Don’t forget the basement. The biggest problem with basements is a lack of adequate lighting. While the natural-lighting flow often can’t be altered, adding lights will create a sense of open airy space on a par with the rest of the house. Paint walls an opaque color so natural light will appear brighter. Paint A few gallons of paint can go a long way in making a home more chic—and the cost can’t be beat. Covering a 12-by-12-foot room with two coats will cost you about $50 to $100, including supplies. “A home’s interior painted in a pale yellow or light green, or even beige, gives buyers an idea of what they can do with a space,” says Bill Fields, vice president of merchandising for the Lowe’s paint division. Reserve darker or trendier colors for accent walls or to highlight details such as a fireplace or an arched doorway, says Erika Woelfel, director of color marketing at BEHR Process Corp., a paint supply company based in Santa Ana, Calif. Common color picks for accent walls are dark red, green (not lime green, though), or a stone gray. Or instead of introducing a new color, use the paint in the rest of the room as a guide, choosing a color that’s three shades darker. To bring depth to a long hallway, Fields suggests painting the wall at the end of a long hallway a different shade than the others. Tips: Shine with sheen. Flat or matte finish is difficult to clean and shows scuffs. Increasing the sheen can brighten rooms. Eggshell or satin bounces light off the walls to make spaces seem larger. Semi-gloss, higher on the sheen level, is a good option for kitchens and bathrooms since it’s easy to clean, Fields says. And gloss, the shiniest of all, is best for big “statement” areas, such as the front door, Woelfel says. But gloss accentuates flaws, so use it sparingly. Create monochromatic harmony. Use different variations of the same color throughout the home. The Paint Quality Institute, a paint education resource, refers to this as “layering.” Choose a color card, which usually has about three or four similar hues, and use two or more colors from the single card. Use the lighter colors in the main living areas and darker shades for the rooms that branch out, such as the bedrooms, Woelfel suggests. Paint the baseboards white. But don’t use stark white, which can take on gray tones against some wall colors, says Woelfel, who suggests antique white or Navajo white as better options. If the home has dated stained-wood trim, simply painting it off-white can  bring it up-to-date. But don’t forget to use a primer first. 7 Ways to Create a Cohesive Style Small updates will have a more dramatic impact if home owners are careful to keep the styles consistent and find ways to draw out the home’s best features. Here are some tips from experts on how to make small improvements pay off. Concentrate on big impact rooms.   Be selective about what you do. Kitchens and bathrooms still usually offer the most bang for your buck, says remodeling industry expert Bill Millholland, executive vice president with Case Design/Remodeling Inc. Go neutral.   Don’t introduce too much color to the “bones” of the home. You don’t want buyers to see too much bold color on cabinets and walls and say, “‘I have nothing to go with red,’” says Terrylynn Fisher, crs, green, a staging consultant at Empire Realty in Walnut Creek, Calif. “Buyers will have a tough time seeing past it.” Stay neutral with walls, cabinets, and fixtures. Bring in pops of colors through accessories. Consult an expert.   A professional stager or remodeler can work within your budget and pinpoint where best to spend your dollars. For a list of contractors or interior decorators, ask colleagues or friends for recommendations or check the Web sites of organizations such as the Real Estate Staging Association or the National Kitchen and Bath Association. Know when inexpensive won’t work.   Certain projects simply can’t be done cheaply, especially in a high-end home. “If it’s a luxury home, replacing the vanity with an off-the-shelf product from a big-box store isn’t going to cut it,” Millholland says. “Most consumers will be able to tell that you did something cheap. They won’t even see the value of it, so you’re better off cleaning what’s there and having it appear its best.” Find inspiration.   For design guidance, grab a catalog from Pottery Barn, Restoration Hardware, or Williams-Sonoma. “Anything you see in there is fairly consistent with what the average consumer is looking for,” Millholland says. Plan your budget.  Even small projects can carry a premium if a contractor is needed for installation. For labor savings, bulk your work, grouping several projects in a full day’s work rather than hiring a handyman or contractor for separate hourly jobs, Millholland says. Complement the architecture.   If it’s a two-story colonial home, avoid overly contemporary updates, such as stainless steel countertops. Likewise, if the exterior is modern or contemporary, stay away from traditional styles, such as dark wood or classic lighting fixtures, Millholland

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Getting your mortgage paid quickly and not over 15-30 years

For most people, a 30 year mortgage is the easiest path to home ownership. While a 30 year loan makes it a lot easier to land a new home, it’s also an incredibly long time to be paying off a debt. But over the life of your mortgage, your financial situation might improve, and you might consider paying down that debt faster. Here are some tips on the best ways to get it all paid off. Paying a Little More Each Month It’s tempting to just pay the minimum amount each month when it comes to paying down the mortgage. With a sum so vast, what’s an extra $40 or $50 dollars going to do each month, many people figure? But by overpaying by just a little, particularly if you start early in the life of the loan, you can shave a surprising amount of time off your mortgage. For instance, paying down an extra $40 a month on a $250,000 loan will shorten the loan by about two years. Tacking on an extra $100 per month will allow you to reduce a 30-year loan to 26 years. Refinancing You Home Refinancing can be a long process with high upfront costs, but if done correctly, it can save you a lot of money in the long run. In addition to landing a better rate with more favorable terms, you can also use the refinancing process to switch from a 30-year repayment schedule to a 10- or 15-year plan. If rates have improved enough to make refinancing worth your while, you should consider using the opportunity to switch to a faster repayment path rather than staying the course on your current repayment schedule. Switch to Bi-Weekly Payments Another method to speed up your repayment is to switch to a bi-weekly payment. With a monthly payment, you make 12 payments a year. But on a bi-weekly plan, you make a half-payment every other week. Over the course of the year, this adds up to the equivalent of 13 monthly payments. That one extra payment a year can have a major effect over the life of a loan. For instance, on a $250,000 mortgage, a bi-weekly payment schedule would have you paying off the home in a little over 25 years. You can plug in the numbers into this handy bi-weekly payment calculator to see how it would affect your mortgage payments. Lump Sum Payments Not everyone can afford an extra payment every year, or an extra amount each month. However, you might have moments where you’re flush with a little extra cash, and putting that money into paying off the mortgage, rather than splurging on something else, can make a big dent. For instance, you could designate your tax refund, yearly Christmas bonus or dividends from investments to go straight to your mortgage. It can be difficult to resist the temptation to splurge on something else with this money, but you can keep yourself on the right track by setting up a special savings account and deposit the money directly into it. Don’t Pay It Off Early The experts are divided on whether it makes good financial sense to pay off a mortgage early. On the one hand, paying it off early means less money wasted on interest payments. However, that interest is an important tax deduction, one of the largest single tax deductions for many Americans. Rather than putting the money into paying off the mortgage, some financial experts advise homeowners to pay the minimum and to put any extra money they have into investments. The money you save on taxes plus the money you make off the investment will more than outweigh the money spent on interest. Of course, this isn’t the case for everyone, and whether you come out ahead by paying it off early is going to depend on your financial situation so it’s a good idea to see a financial planner who can help you run the numbers before you make any big financial

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Ten Landlord Legal Mistakes to Avoid

Asking Discriminating Questions A landlord should refrain from asking certain questions to a prospective tenant. This is one of the more serious legal mistakes that landlords make. Because the federal Fair Housing Act prohibits a landlord from refusing to rent property to a tenant for discriminatory reasons like race, color, religion, national origin, sex or gender, disability, and familial status, a landlord should avoid questions that may appear discriminatory or suggest a discrminatory intent. For instance, questions about the severity of a disability or marital status can result in a lawsuit or in an investigation by the U.S. Department of Housing and Urban Development (HUD). A landlord does, however, have the right to use standard tenant screening methods like credit and reference checks, but weeding out tenants based on the use of discriminatory information is illegal. Failure to Make Disclosures to Prospective Tenants One of the less obvious legal mistakes is the failure to disclose important information about the rental property. Every state has different requirements, but common disclosures include the following: notice of mold when the landlord knows or has a reason to believe that it exists, information about a state's sexual offender registry, notice of sex offenders that live in the area if the landlord has actual knowledge, and disclosure of recent deaths that occurred in the rental unit. Federal law requires that a landlord disclose whether the rental unit contains lead-based paint if the property was built before 1978. Using Illegal Provisions in a Rental Agreement A residential lease agreement should not contain provisions that violate state and/or federal laws. A landlord should avoid the legal mistake of placing conditions in a rental agreement that require the tenant to waive the right to a refund of a security deposit or the right to sue the landlord. Other conditions to avoid include terms that bar tenants based on race, color, national origin, sex or gender, familial status, disability, and religion. An illegal provision may result in landlord liability for monetary damages. Failure to Provide a Safe Environment In many states, landlords are legally responsible for the failure to keep tenants safe from dangerous conditions on a property or safe from criminal activity. A landlord has a duty to make inspections and inform tenants and others that legally enter the property of hazards that exist on the premises. A landlord must take reasonable measures to ensure the safety of tenants from other tenants and from criminals that enter the property. Basic safety measures a landlord should provide include locks and adequate lighting. If a tenant sustains physical or property damage after a landlord becomes aware that the property is unsafe, an injured tenant may be able to sue and recover compensation from the landlord. Refusal to Make Repairs A rental agreement should specify who has the duty to make repairs. A landlord must make some repairs even if a rental agreement does not specify these duties. More specifically, a landlord has the duty to provide a rental unit that is fit to live in. Every state imposes an "implied warranty of habitability" on all rental premises. A habitable rental unit will provide heating, plumbing, gas, clean water, a structurally safe roof and flooring, and electricity. If a property remains in disrepair, a tenant may choose to fix the problem and deduct the cost from the rent, move out, or report the violation to a state building inspector. The failure to make these major repairs when requested can result in a lawsuit against the landlord. Disregard of a Tenant's Right to Privacy A tenant has a right to privacy. A landlord should not enter a tenant's rental unit without first giving a 24-hour written or verbal notice. A landlord can enter after giving notice when showing the unit to a prospective tenant, making a repair, or inspecting the property. It is unnecessary to provide notice when an emergency occurs. Ignoring Eviction Rules Eviction is a legal action by a landlord to remove a tenant from a rental property. Every state has laws that regulate the eviction process. A landlord can evict a tenant for the nonpayment of rent, for the failure to vacate the premises after a lease agreement has expired, for a violation of a provision in the rental contract, or if the tenant causes damage to the property and it results in a substantial decrease in the value of the property. Before throwing out a tenant, a landlord must use the eviction process. Every state has different guidelines, but most require giving the tenant a termination notice before filing an eviction lawsuit. If the landlord attempts to remove the tenant without a court order, the tenant may recover damages for the landlord's actions. Keeping Security Deposits Most lease agreements require a tenant to pay a security deposit to cover damage caused by the tenant or for a tenant's default. After a tenant moves out, a landlord can use the security deposit to fix damage caused by the tenant. A landlord, however, must provide the tenant with an itemized list of deductions and must pay the balance of the deposit to the tenant. The failure of a landlord to provide an itemized statement or the failure to return the unused portion of the security deposit can result in the landlord owing the tenant for monetary damages. Getting Rid of Abandoned Property Inappropriately When a tenant leaves items behind after vacating the property, the landlord must treat it as abandoned property. The landlord must notify the tenant of how to claim the property, the cost for storage, where to claim the property, and how long the tenant has to claim the items. If the property remains unclaimed and it is worth more than a certain amount, the landlord may sell the property at a public sale after publishing a notice of sale in a local newspaper. If the property is worth less than the state-specified amount, the landlord can either keep the property or throw it away. Inadequate Insurance on a Rental Property Besides insuring a property for destruction caused by natural disasters, a landlord should insure a property against lawsuits brought by a tenant. If a landlord illegally evicts a tenant, makes an illegal entry, or if a tenant or a person legally on the premises is injured because of a dangerous condition, insurance will cover the cost of litigation and will pay the damage

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Trends in residential real estate

BY BETH BRAVERMAN, The Fiscal Times March 27, 2015 Along with green shoots and chirping birds, one sure sign of spring is popping up in neighborhoods across the country: For Sale signs. As the weather warms up, so does the housing market, and experts say this year’s spring selling season is shaping up to be an active one. Whether you’re buying or selling, here are the trends you need to know about. 1: Home prices are rising, even hitting record levels in some places. Home prices nationwide rose by 5.7 percent in January, compared to a year ago, with prices hitting record highs in Colorado, Texas, Wyoming, and New York. Prices are so high in certain areas that some economists are starting to worry about localized bubbles. In most markets across the country, however, gains of around 5 percent are seen as stable, sustainable growth, a welcome change after years of roller coaster changes. 2: Mortgage rates are still low … for now. At less than 3.7 percent, mortgage rates are haven’t been this favorable to consumers since 2013. “Even though rates are expected to rise as the year progresses, for now these rates are really at very low levels,” says Greg McBride, chief financial analyst at Bankrate.com. To be safe, once you’ve got a closing date, consider locking in your mortgage at today’s rock-bottom rates. 3: It’s still a seller’s market. Total housing inventory at the end of February increased 1.6 percent to 1.89 million existing homes for sale, but that’s still 0.5 percent less than a year ago. Unsold inventory is at a 4.6-month supply, giving sellers a slight advantage in today’s market. (A six-month supply is considered a healthy market. 4: Buyers want turnkey properties. Even with tight inventory, buyers are looking for properties that are move-in ready and won’t require much more than a coat of paint. “Buyers don’t want to assume any risk with properties that need work, particularly first-time buyers with limited cash resources,” says Budge Huskey, chief executive officer at Coldwell Banker Real Estate. 5: Foreclosures are no longer a factor. After peaking in August 2006 just before the housing bubble burst, foreclosures are on pace to return to historic norms this year, according to RealtyTrac. Foreclosure filings fells 4 percent in February to their lowest level since 2006. 6: Investors are backing off. Ordinary buyers in recent years often found themselves competing with investors. “Today’s houses are getting less desirable for investors because price points are going higher, so it doesn’t pencil out as much,” says Daren Blomquist, RealtyTrac vice president. The share of homes going to institutional investors or all-cash buyers dropped in 2014 to the lowest level in four years. 7: In most places it’s much cheaper to buy than to rent. Soaring rents in recent years have made buying a home much more affordable for those who want to stay put than renting one. Nationally, U.S. renters spend an average of 30 percent of their income on rent, versus just 15 percent of income on mortgage payments, according to Zillow. 8: Credit is getting looser. Fannie Mae and Freddie Mac have introduced new lending programs that allow borrowers to put just 3.5 percent down on a home – although this comes with risk, of course. The Federal Housing Finance Agency recently reduced the cost of mortgage insurance by half a percentage point, which will save home buyers an average of $900 per year. All of this makes it a little bit easier for first-time buyers to qualify for a home loan. “It’s still not easy to get a mortgage, but it’s not as hard as it was a couple of years ago,” says Bob Denk, an economist with the National Association of Home Builders. 9: New homes are smaller and greener. The average new home in 2015 was expected to be about 2,200 square feet, or 10 percent smaller than the average new home five years ago. Millennial buyers and downsizing boomers want a smaller carbon footprint and a more eco-friendly home with energy-efficient windows and

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Is forgiveness of debt on a home loan taxable income?

Unfortunately - this act expired December 31st, 2014, however the exceptions below are still in effect. The Mortgage Forgiveness Debt Relief Act and Debt Cancellation If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable. The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. This provision applies to debt forgiven in calendar years 2007 through 2014. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition. More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17. The following are the most commonly asked questions and answers about The Mortgage Forgiveness Debt Relief Act and debt cancellation: What is Cancellation of Debt? If you borrow money and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt. Here’s a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you. Is Cancellation of Debt income always taxable? Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve: Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners. Bankruptcy: Debts discharged through bankruptcy are not considered taxable income. Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you. You are insolvent when your total debts are more than the fair market value of your total assets. Certain farm debts: If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income. Non-recourse loans: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral. That is, the lender cannot pursue you personally in case of default. Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income. However, it may result in other tax consequences. These exceptions are discussed in detail in Publication 4681. What is the Mortgage Forgiveness Debt Relief Act of 2007? The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007 (see News Release IR-2008-17). Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence. What does exclusion of income mean? Normally, debt that is forgiven or cancelled by a lender must be included as income on your tax return and is taxable. But the Mortgage Forgiveness Debt Relief Act allows you to exclude certain cancelled debt on your principal residence from income. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debts? No. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing separately. Does the Mortgage Forgiveness Debt Relief Act apply to debt incurred to refinance a home? Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681. How long is this special relief in effect? It applies to qualified principal residence indebtedness forgiven in calendar years 2007 through 2014. Is there a limit on the amount of forgiven qualified principal residence indebtedness that can be excluded from income? The maximum amount you can treat as qualified principal residence indebtedness is $2 million ($1 million if married filing separately for the tax year), at the time the loan was forgiven. If the balance was greater, see the instructions to Form 982 and the detailed example in Publication 4681. If the forgiven debt is excluded from income, do I have to report it on my tax return? Yes. The amount of debt forgiven must be reported on Form 982 and this form must be attached to your tax return. Do I have to complete the entire Form 982? No. Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Adjustment), is used for other purposes in addition to reporting the exclusion of forgiveness of qualified principal residence indebtedness. If you are using the form only to report the exclusion of forgiveness of qualified principal residence indebtedness as the result of foreclosure on your principal residence, you only need to complete lines 1e and 2. If you kept ownership of your home and modification of the terms of your mortgage resulted in the forgiveness of qualified principal residence indebtedness, complete lines 1e, 2, and 10b. Attach the Form 982 to your tax return. Where can I get this form? If you use a computer to fill out your return, check your tax-preparation software. You can also download the form at IRS.gov, or call 1-800-829-3676. If you call to order, please allow 7-10 days for delivery. How do I know or find out how much debt was forgiven? Your lender should send a Form 1099-C, Cancellation of Debt. The amount of debt forgiven or cancelled will be shown in box 2. If this debt is all qualified principal residence indebtedness, the amount shown in box 2 will generally be the amount that you enter on lines 2 and 10b, if applicable, on Form 982. Can I exclude debt forgiven on my second home, credit card or car loans? Not under this provision. Only cancelled debt used to buy, build or improve your principal residence or refinance debt incurred for those purposes qualifies for this exclusion. See Publication 4681 for further details. If part of the forgiven debt doesn't qualify for exclusion from income under this provision, is it possible that it may qualify for exclusion under a different provision? Yes. The forgiven debt may qualify under the insolvency exclusion. Normally, you are not required to include forgiven debts in income to the extent that you are insolvent. You are insolvent when your total liabilities exceed your total assets. The forgiven debt may also qualify for exclusion if the debt was discharged in a Title 11 bankruptcy proceeding or if the debt is qualified farm indebtedness or qualified real property business indebtedness. If you believe you qualify for any of these exceptions, see the instructions for Form 982. Publication 4681 discusses each of these exceptions and includes examples. I lost money on the foreclosure of my home. Can I claim a loss on my tax return? No. Losses from the sale or foreclosure of personal property are not deductible. If I sold my home at a loss and the remaining loan is forgiven, does this constitute a cancellation of debt? Yes. To the extent that a loan from a lender is not fully satisfied and a lender cancels the unsatisfied debt, you have cancellation of indebtedness income. If the amount forgiven or canceled is $600 or more, the lender must generally issue Form 1099-C, Cancellation of Debt, showing the amount of debt canceled. However, you may be able to exclude part or all of this income if the debt was qualified principal residence indebtedness, you were insolvent immediately before the discharge, or if the debt was canceled in a title 11 bankruptcy case. See Form 982 for details. If the remaining balance owed on my mortgage loan that I was personally liable for was canceled after my foreclosure, may I still exclude the canceled debt from income under the qualified principal residence exclusion, even though I no longer own my residence? Yes, as long as the canceled debt was qualified principal residence indebtedness. See Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Will I receive notification of cancellation of debt from my lender? Yes. Lenders are generally required to send Form 1099-C, Cancellation of Debt, when they cancel any debt of $600 or more. The amount cancelled or deemed discharged will be in box 2 of the form. What if I disagree with the amount in box 2? Contact your lender to work out any discrepancies and have the lender issue a corrected Form 1099-C. How do I report the forgiveness of debt that is excluded from gross income? (1) Check the appropriate box under line 1 on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to indicate the type of discharge of indebtedness and enter the amount of the discharged debt excluded from gross income on line 2. Any remaining canceled debt must be included as income on your tax return. (2) File Form 982 with your tax return. My student loan was cancelled; will this result in taxable income? In some cases, yes. Your student loan cancellation will not result in taxable income if you agreed to a loan provision requiring you to work in a certain profession for a specified period of time, and you fulfilled this obligation. Are there other conditions I should know about to exclude the cancellation of student debt? Yes, your student loan must have been made by: (a) the federal government, or a state or local government or subdivision; (b) a tax-exempt public benefit corporation which has control of a state, county or municipal hospital where the employees are considered public employees; or (c) a school which has a program to encourage students to work in underserved occupations or areas, and has an agreement with one of the above to fund the program, under the direction of a governmental unit or a charitable or educational organization. Can I exclude cancellation of credit card debt? In some cases, yes. Nonbusiness credit card debt cancellation can be excluded from income if the cancellation occurred in a title 11 bankruptcy case, or to the extent you were insolvent just before the cancellation. See the examples in Publication 4681. How do I know if I was insolvent? You are insolvent when your total debts exceed the total fair market value of all of your assets. Assets include everything you own, e.g., your car, house, condominium, furniture, life insurance policies, stocks, other investments, or your pension and other retirement accounts. How should I report the information and items needed to prove insolvency? Use Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to exclude canceled debt from income to the extent you were insolvent immediately before the cancellation. You were insolvent to the extent that your liabilities exceeded the fair market value of your assets immediately before the cancellation. To claim this exclusion, you must attach Form 982 to your federal income tax return. Check box 1b on Form 982, and, on line 2, include the smaller of the amount of the debt canceled or the amount by which you were insolvent immediately prior to the cancellation. You must also reduce your tax attributes in Part II of Form 982. My car was repossessed and I received a 1099-C; can I exclude this amount on my tax return? Only if the cancellation happened in a title 11 bankruptcy case, or to the extent you were insolvent just before the cancellation. See Publication 4681 for examples. Are there any publications I can read for more information? Yes. (1) Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals) addresses in a single document the tax consequences of cancellation of debt issues. (2) See the IRS news release IR-2008-17 with additional questions and answers on

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Traditional Sale vs. Auction?

When you hear of a property going to auction, do you immediately assume that the property is in the hands of a bank or a foreclosure company attempting to recover money lost on a transaction? Many people, especially those who lived through the 1980s when farming was struggling and land values crashed, assume a property, whether it is land or residential real estate, that is going to auction is doing so to recover losses. Auctioning real estate is a growing trend. Clients interested in selling real estate are quickly figuring out that auctioning real estate is a completely viable option, and not just an option to quickly recoup loss. There can be tremendous value in auctioning real estate that a traditional real estate transaction does not offer, according to Dirk Talley, broker of Show-Me Real Estate and owner of Talley and Associates Auction Services. Buyers who come to an auction are pre-qualified and ready to buy. Sellers who need to sell a property quickly because of relocation or for other reasons find the auction process much quicker because the closing on the property usually occurs within 30 days of the auction. Residential sellers are choosing to sell by auction to prevent having to prepare for and deal with multiple showings on the home they are residing in. Instead, they usually host one to two open houses prior to the auction. Several clients have been pleased with the outcome, because they felt the immediate bidding process and competition in bidding helped them achieve a higher sales price than they might have received in a traditional real estate transaction, Talley said. “Our company has been asked on several occasions if there is any protection we can offer that ensures the property will not sell below market value during the auction process,” Talley said. “There are protections we can offer during the process that would protect a seller from this happening. The answer is yes, we can offer reserve prices to ensure a satisfactory sales price. However, each property is unique; therefore it’s best to schedule an appointment to discuss all options.” However, a traditional real estate transaction does at times provide a better option for some residential real estate, Talley said. Unique properties that might be exclusive to a certain type of buyer can be handled better through a traditional real estate listing. First-time homebuyers or buyers with government financing prefer to deal with a traditional listing because of guidelines and restrictions set by the government. Missouri has been slower than many other states to adopt the auction process in real estate, Talley said. Many states in the Midwest have turned to using auctioning in real estate transactions more frequently than traditional real estate

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Hire an agent or attorney? Get both – Mark A. Roy Attorney/Broker(agent)

It's no secret that real estate agents earn high commissions. Although the commission is usually paid by the seller, the cost may be indirectly passed on to you. And real estate lawyers charge exorbitant hourly rates. This raises the question -- do you need a real estate agent or attorney to help you buy a home? What the Law Says Every state has its own set of real estate laws. For the most part, a real estate agent's help is not legally required, though agents can help you with tasks that border on legal ones, such as preparing a home purchase contract. In some states, however, only a lawyer is allowed to prepare the home purchase documents, perform a title search, and close the deal. Reasons to Hire an Agent The process of buying a house is complex, and most people find it's easiest to get through with an agent by their side. Paperwork will be flying around like a small tornado, and it can be helpful to have someone familiar with the process to deal with it. Other parts of the transaction will be happening quickly too -- hiring inspectors, negotiating over who pays for needed repairs, keeping up good relations with the sellers (through their agent) and more. All of this is second nature to an experienced agent. What's more, experienced real estate agents usually have contacts with good inspectors, mortgage loan brokers, and others who can make your buying process easier. And they know what's considered appropriate behavior and practice in your geographical area. Don't Use the Seller's Agent One of the best reasons to hire a real estate agent is that the sellers are likely to use their own agent -- and you want to keep that agent from taking over the process. In fact, the seller's agent may pressure you to let him or her represent both of you, in a "dual agency" relationship that primarily benefits the seller. (The less scrupulous sellers' agents don't make it clear that they're working for both people, but if only one agent is involved in your transaction, it's fair to assume that the agent's loyalties are with the seller.) It's better to have your own agent -- or, some experts assert, no agent at all -- than settle for dual agency. Keep Control Over the Process You're the only one who really knows what you want in a house. Even if your agent is scouting out homes for you, there's a lot to be said for scanning the listings and attending open houses yourself. You may find out that your agent doesn't understand your needs as well as you thought, or won't take you to see "FSBO" (for sale by owner) listings. (For more on what you can do on your own to find your dream house, see Beginning Your Home Search.) Educate Yourself Even if you do use an agent (or a lawyer), it's wise to learn as much as you can about the home-buying process. For example, educating yourself about the market value of comparable homes in the area will protect you against over-aggressive agents who might urge you to bid high for a particular house. And you'll prevent misunderstandings and reduce the stress of being told to "sign here" if you study the contents of the various real estate documents in advance. Reasons to Hire an Attorney Except in states where it's mandated, an ordinary real estate transaction doesn't require an attorney's help. By now, real estate transactions are so standardized that most people in your state will use the exact same purchase contract, just filling in a few blanks. However, if legal issues arise that your real estate agent can't answer, you'll need an attorney's help. Although good agents know a lot about the negotiating and contracting part of the process, they can't make judgments on legal questions. For example, what if your prospective new home has an illegal in-law unit with an existing tenant whom you want to evict in order to rent the place to a friend? Only a lawyer can tell you with any certainty whether your plans are feasible. Or what if you’d like to rent the home for an extended period, such as a year, before you’re obligated to buy it? That will require drawing up an unusual lease. Or, if you're drafting any unusual language for the purchase contract, or are concerned about some language in your mortgage, you may want to have an attorney look the documents over. How Real Estate Agents Are Paid Real estate agents normally work on commission, not salary. They receive their slice only after your home search is over, the contract negotiated, and the transaction complete. (In many cases, they end up doing a lot of work for nothing, perhaps because the buyers lost interest or can't close the deal.) The seller typically pays the commission to both the seller's agent and your agent -- usually around 5% of the sales price, to be split between the two agents. This percentage isn't cast in stone, however. For example, the seller might negotiate the percentage down if the house is particularly expensive. (And in probate sales, the court sets the commission.) Some buyers' agents have even been known to offer the buyer a percentage of their commission at closing. Variations on the typical commission arrangement also exist. For example, some buyers prefer to hire an agent and pay the commission themselves, figuring it will make the agent more loyal to the buyer's interests, and provide grounds for a drop in the sales price. Less commonly, you may find an agent willing to perform limited tasks for an hourly fee rather than a full commission (in which case you'd also want to ask the seller to bring down the sales price accordingly). Discount and rebate brokers are also available, usually providing you limited services, or interactions via the Internet, at a commission as low as 1%. Agents paid on commission have a built-in conflict of interest Even an agent who represents only you, and not the seller, has a financial interest in seeing the deal go through. While experienced, reputable agents won't let this interfere with their advice to you, it may cause less scrupulous agents to insist that you'll never get the house unless you bid high, to recommend home inspectors who make light of potential problems, or to otherwise compromise your interests. How Attorneys Are Paid Attorneys normally charge by the hour, at rates ranging from $150 to $350. You may also find attorneys who charge flat fees for specific services, such as preparing real estate closing documents. Although attorneys tend to prefer handling the entire case with a "blank check" from you regarding hours to be spent and tasks to be accomplished, you're hiring the attorney, and you can call the shots. If you prefer to hire an attorney for only a limited number of hours, or for specific tasks, such as answering a legal question or reviewing a document, you can negotiate this (and you should record your agreement in

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

3 keys to success for investors

Investors should consider three keys to success: 1. Pay off the mortgages. “Assuming you purchase property that is profitable from the start, not having a mortgage every month can significantly increase your profit," Degagne says. "I know for me, [my profit] will double in 20 years when all the mortgages are paid off.” 2. Hold the real estate for at least ten years and keep good books. “In real estate you have good years and bad years, just like you will in any business and almost any retirement investment strategy," Degagne says. "In a ten-year time frame you should see a) A trend in your real estate -- prices, costs, profit b) What your worst year was, and c) From there you should be able to figure out a solid number that you can rely on. This is by far the most important point.” 3. Have an exit strategy. “This involves planning how [the properties] will be taken care of when you're still alive, but don't want the bother of making any decisions on them," Degagne says. "For this, my suggestion is training someone who will eventually inherit them to make the decisions. Bookkeeping and day-to-day management can always be outsourced. There’s no need to be fixing toilets in the middle of the night at 70 years old.” Word to the wise: to invest in real estate, you don’t have to have a tool box and plumbing supplies. In fact, in some cases, you’re not allowed to manage or perform maintenance on such investments. For example, property can be purchased and placed in a self-directed IRA, but financial and maintenance matters should be handled by a property manager. Performing work related to the IRA asset yourself is regarded as a "prohibited transaction" by the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

REAL ESTATE SALES SUGGESTIONS

Selling your house can be one of the most tense and emotional tasks you will face in your life. For most, the house became a place to express yourself and a place where you have built some wonderful family memories. But, when it comes to selling your home, you must remember this is a business transaction and that you are trying to make someone else fall in love with your house. In order to do this, they must be able to see the home as a place for them to enjoy and build memories based on their own lifestyles and preferences. So the key is to price it right and to prepare the home for sale with neutral colors and few personal touches. Do Clean the Clutter The cheapest thing you can do to make your home ready to show is to clean up the clutter and show lots of useable space. For example, if you tend to keep small appliances and pots on the countertops, put them away so people can see the greatest amount of available counter space. Don’t Fill the Closets with Your Clutter Some people make the mistake of cleaning up the clutter by filling up the closets. The problem with that solution is that you then give the impression there isn’t enough closet space. You are better off renting a storage unit for the clutter until the house is sold. Do Make Improvements That Will Help Sell the Home Some improvements, such as landscaping, will give your home curb appeal, which helps speed up the sale of your home. Other improvements can help you increase the price of the home and make it more attractive to most buyers. The most popular is updating kitchens and bathrooms. Decks or other additions to living space can also help, but don’t expect to be fully reimbursed for these improvements. Don’t Spend on Improvements That Won’t Raise the Price Large projects that cost you big bucks won’t necessarily raise the price of your home. You’re more likely to take a loss on the amount you spend. Keep the changes small. Check with a realtor before doing any major work to find out whether the work will help sell the house and how much it might add to the price. (See Selling Your House? Avoid These Mistakes for more pitfalls to avoid.) Do Paint with Neutral Colors If you haven’t painted for years, if you have a lot of wallpaper in the home or if you have many color accent walls to match your individual style, think about repainting using neutral colors. Neutral colors provide a blank canvas so buyers can more easily picture their own decorating style in the home. A fresh paint smell also helps to improve odors in the home. Don’t Paint with Bright and Bold Colors Your favorite color might actually be one color a potential buyer hates. Even if the buyer loves your floor plan, if they think there will be a lot of work to cover over a color they don’t like, they may just move on to another similar, but more neutral home. Do Make Your Home Easily Accessible for Showings Buyers, especially those ready to make an offer, want to see the home when it is convenient for them. Often the most qualified buyers are those on a short trip to an area before a corporate move, who must find a house quickly during that trip. If your home isn’t available to show, the agent will just move on to another house. Don’t Put Up Barriers for Buyers to See the Home Some sellers make the mistake of limiting show times to when it is most convenient for them. You can almost guarantee you will miss some buyers with that strategy. You may even miss the one person who would have loved your home and made an offer that day. The Bottom Line Always price your home to sell and make it look the best it can to meet someone else’s vision of a home, which might not be your vision. The more neutral and less personal your home shows, the

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Sellers Market

All numbers appear to be indicate that as of today 4/9/2015 it is a seller market.  If you have a portfolio of properties to sell this would be a great time to do

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Homebuilder confidence is falling

Homebuilders' confidence fell in October 2014 after four months of gains that had pushed the indicator to the highest level in nine

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Mortgage rates tumble

Mortgage rates tumbled this week.  The 30 loan hit its lowest since June 2013 as Treasury bond yields marked new lows amid concern over global economic

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

KC Area sees home sales decline slightly, but prices rise

Sales of new and existing homes was down 1% from July 2013.  Existing home sales fell 1% but new home sales were up 2% from 1 year ago.  The average sale price for new and existing homes was up 4% from 1 year ago.  The existing and new homes supply of homes is at 5.3 months.  A 5 to 6 month supply of homes is generally represents a balanced

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Foreclosure activity in Kansas and Missouri dropped sharply in July 2014 compared to a year ago. 507 properties in Kansas were facing default notices, scheduled auction and bank repossessions last month. That was down 30.2 % from July 2013. However, compared to June 2013 foreclosure actions were up 24% statewide. In Missouri 736 properties were scheduled for foreclosure down 48% on an annual basis from July 2013 and down 22% from June 2013. Nationwide 109,434 properties were in some stage of the foreclosure process in July 2014, and 2% increase from July 2014. Depspite the rise, foreclosure activity was 16 % below a year ago. It was the 46th consecutive month in which activity declined on an annual basis.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

The non-traded REIT sector has experienced a flurry of liquidity events of late and that activity shows no signs of slowing. There seems to be a “perfect storm” going on in the non-traded REIT industry that is driving the trend, says Kevin Hogan, CEO of the Investment Program Association (IPA), an investor advocacy group. Many non-traded REITs are maturing at a time when property fundamentals are improving and there is an abundance of capital in the market.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Mortgage refinancing is slowing – The mortgage Bankers Association’s index decreased 2.7% in the period ending August 8th, 2014.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

June job postings highest in 13 years. According to today’s KC Star, more job openings were posted in June 2014 than any month since February 2001.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Housing momentum slows in second quarter of 2014- according to todays KC Star home price gains moderated in most of the second quarter of 2014 with appreciation reaching its slowest pace since 2012 as more houses came to market. The median price of an existing house rose 71 percent of the 173 major markets, down from 74 percent in the first quarter.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

According to today’s KC Star Average long-term mortgage rates rose slightly this week but remained near their lows for the year. Mortgage company Freddie Mac said the nationwide average for a 30 year loan increase to 4.14% from 4.12 last week. The average for the 15 year mortgage rose to 3.27 from 3.23 last week. Mortgage rates are below levels of a year ago. They have fallen in recent weeks after climbing last summer when the Federal Reserve began talking about about reducing the monthly bond purchases it was making to keep long-term borrowing rates low.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

If you live in a mobile home in Missouri or own or operate a mobil home park in Missouri you need to know about this – http://www.moga.mo.gov/statutes/chapters/chap700.htm

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

If you live in a mobil in home in Kansas, or own or operate a mobil home park in Kansas you have to read this – http://bluecollar.chatnfiles.com/projects/hcci-ks-v2/Housing/KMRLTA%20_Act_%2006.pdf

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

According to KC Star 8/6/2014 U.S. home prices rose in June 2014 by the smallest year over year amount in 20 months, slowed by modest sales and more properties coming on the market. Data provider Core-Logic said prices rose 7.5% in June compared with 12 months earlier. That’s a solid gain but less than 8.3% year over year increase in May and a recent year to year peak of 11.9% in February. Month to month, June prices rose just 1.4% in May. But CoreLogic’s monthly figures are not adjusted for seasonal patterns, such as warmer spring weather. The slowing price gains should make buying a house more affordable. Prices had risen sharply last year, along with mortgage rates.

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

Its a sellers market

The Kansas City Star reported this week that there was a 3.5 month supply of homes for sale in Kansas City, Missouri.  This makes the current market a very strong sellers market.  A 6 month supply of homes is considered a balanced market and anything more than a 6 month supply is considered a buyers market.  Evidently everyone in my subdivison must have read the article because it seems like every other home in my subdivision went up for sale last week and the list price of the homes listed seems very high.  Of course there is a difference between asking price and sales price and I intend to follow these listings over the next several months to see 1. how fast they go under contract 2. the percentage of list price to sale

How to buy or sell a House from owner without a Realtor in Kansas City KS or Saint Louis Missiouri MO

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