Daniel Dean Hartman - Show-Me Real Estate

10/28/2021

The rise in remote work is changing what many Americans want in their homes. Many companies are choosing to delay reopening or go remote full-time, and today’s buyers are looking for homes with more space to support their work needs.

04/14/2021

A recent Survey of Consumer Finances study released by the Federal Reserve reveals the net worth of homeowners is forty times greater than that of renters. If you’re wondering if homeownership is a good investment, the study clearly answers that question, and the answer is yes.

03/25/2021

Glad to have a great team working together.

02/24/2021

How Much Leverage Do Today’s House Sellers Have?

The housing market has been scorching hot over the last twelve months. Buyers and their high demand have far outnumbered sellers and a short supply of houses. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 23.7% from the same time last year while the inventory of homes available for sale is down 25.7%. There are 360,000 fewer single-family homes for sale today than there were at this time last year. This increase in demand coupled with such limited supply is leading to more bidding wars throughout the country.

Rose Quint, Assistant Vice President for Survey Research with the National Association of Home Builders (NAHB), recently reported:

“The number one reason long-time searchers haven’t made a home purchase is not because of their inability to find an affordably-priced home, but because they continue to get outbid by other offers.”

A survey in the NAHB report showed that 40% of buyers have been outbid for a home they wanted to purchase. This is more than twice the percentage in 2019, which was 19%.

What does this mean for sellers today?
It means sellers have tremendous leverage when negotiating with buyers.

In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party's leverage is based on its ability to award benefits or eliminate costs on the other side.

In today’s market, a buyer wants three things:

To buy a home
To buy now before prices continue to appreciate
To buy now and take advantage of historically low mortgage rates while they last
These three buyer needs give the homeowner tremendous leverage when selling their house. Most realize this leverage enables the seller to sell at a good price. However, there may be another need the seller has that can be satisfied by using this leverage.

Here’s an example:
Odeta Kushi, Deputy Chief Economist at First American, recently identified a situation in which many sellers are finding themselves today:

“As mortgage rates are expected to remain near 3%, millennials continue to form households and more existing homeowners tap their equity for the purchase of a better home…Many homeowners may want to upgrade, but do not for fear that they will be unable to find a home to buy.”

She then offers a possible solution:
“While the fear of not being able to find something to buy will not disappear in a limited supply environment, new housing supply can incentivize existing homeowners to move.”

There’s no doubt many sellers would love to build a new home to perfectly fit their changing wants and needs. However, most builders require that they sell their house first. If the seller sells their home, where would they live while their new home is being constructed?

Going back to the concept of leverage:
As mentioned, buyers have compelling reasons to purchase a home now, and many homeowners have challenges to address if they want to sell. Perhaps they can make a deal to satisfy each party’s needs. But how?

The seller may decide to sell their home to the buyer at today’s price, which will enable the purchaser to take advantage of current mortgage rates. In return, the buyer might lease the house back to the seller for a pre-determined length of time while the seller’s new home is being built. A true win-win negotiation.

Not every buyer will agree to such a deal – but you only need one.

That’s just one example of how a seller might be able to overcome a challenge because of the leverage they have in today’s market. Maybe you feel a need to make certain repairs before selling. Perhaps you need time to get permits or approvals for certain upgrades you made to the house. Whatever the challenge, you may be able to work it out.

Bottom Line
If you’re considering selling your house now but worry a huge obstacle stands in your way, let's connect. Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams.

The housing market has been scorching hot over the last twelve months. Buyers and their high demand have far outnumbered sellers and a short supply of houses. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 23.7% from the same time las...

02/11/2021

47% of New Buyers Surprised by How Affordable Homes Are Today:

Headlines matter. Right now, it’s hard to read about real estate without seeing a headline that suggests homes have become unaffordable for most Americans. In reality, there’s hard evidence that shows how owning a home is more affordable than renting in most parts of the country, as record-low interest rates are keeping monthly mortgage payments about 23% lower than the typical payment of 20 years ago. Despite the facts, misleading headlines persist, and they impact how hopeful homebuyers perceive the market.

In a recent survey by realtor.com, home shoppers indicated they were surprised by what they could actually afford when buying their first home. In fact, 47% discovered their budget was larger than they expected. George Ratiu, Senior Economist at realtor.com, explains:

“For first-time buyers, especially, the drop in the 30-year mortgage rate…has provided unexpected leverage. Lower rates allowed many buyers to stretch and buy more expensive homes while keeping their monthly budget the same.”

Headlines matter. Right now, it’s hard to read about real estate without seeing a headline that suggests homes have become unaffordable for most Americans. In reality, there’s hard evidence that shows how owning a home is more affordable than renting in most parts of the country, as record-low i...

02/08/2021

Over the past year, our homes have become an integral part of our lives more than ever. They’re much more than the houses we live in. They’re our workplaces, virtual schools, and safe havens that provide shelter, stability, and protection through the evolving health crisis. Today, 65.8% of Ameri...

11/24/2020

Is Buying a Home Today a Good Financial Move?

There’s no doubt 2020 has been a challenging year. A global pandemic coupled with an economic recession has caused heartache for many. However, it has also prompted more Americans to reconsider the meaning of “home.” This quest for a place better equipped to fulfill our needs, along with record-low mortgage rates, has skyrocketed the demand for home purchases.

This increase in demand, on top of the severe shortage of homes for sale, has also caused more bidding wars and thus has home prices appreciating rather dramatically. Some, therefore, have become cautious about buying a home right now.

The truth of the matter is, even though homes have appreciated by a whopping 6.7% over the last twelve months, the cost to buy a home has actually dropped. This is largely due to mortgage rates falling by a full percentage point.

Let’s take a look at the monthly mortgage payment on a $300,000 house one year ago, and then compare it with that same home today, after it has appreciated by 6.7% to $320,100

But isn’t the economy still in a recession?
Yes, it is. That, however, may make it the perfect time to buy your first home or move up to a larger one. Tom Gil, a Harvard trained negotiator and real estate investor, recently explained:

“When volatile assets are facing recessions, hard assets, such as gold and real estate, thrive. Historically speaking, residential real estate has done better compared to other markets during and after recessions.”

That thought is substantiated by the fact that homeowners have 40 times the net worth of renters. Odeta Kushi, Deputy Chief Economist for First American Financial Corporation, recently said:

“Despite the risk of volatility in the housing market, numerous studies have demonstrated that homeownership leads to greater wealth accumulation when compared with renting. Renters don’t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments, which become a form of forced savings for homeowners.”

Bottom Line
With home prices still increasing and mortgage rates perhaps poised to begin rising as well, buying your first home, or moving up to a home that better fits your current needs, likely makes a ton of sense.

There’s no doubt 2020 has been a challenging year. A global pandemic coupled with an economic recession has caused heartache for many. However, it has also prompted more Americans to reconsider the meaning of “home.” This quest for a place better equipped to fulfill our needs, along with recor...

12/09/2019

Real Estate has been around for centuries. I have shared a bit in the past on how I decided to pursue a career in real estate; wishing I would have started sooner. Before I dive into this a bit more please understand a bit about me first. I have shared in past writings about having ADHD and learning to tackle that head on. One of the negative/positive traits about ADHD is the fact that we get excited and dive headfirst into what we are doing but we also get bored very quickly. I always felt like entrepreneurship was the quickest way to independence and wealth. The crazy thing is, when all those things are mixed together, sometimes the outcome is not always ideal or positive. More on that in the future with other stories about the success and failure of some of my businesses and the destruction that can have on relationships and finances when it does not go as planned.

Real Estate is generally stable, consistent and extremely rewarding over time. Realtors can choose to practice and specialize in assisting buyers or sellers, putting together land deals, being a representative of a builder or builders, developing raw land for residential, being a leasing agent for commercial properties and commercial development, and representing buyers and sellers in commercial real estate. A realtor can also work with individual investors or a group of investors who buy, sell and invest on a regular basis.

I personally choose three areas as well as handling one-offs occasionally. I work about a third of my time with investors who buy properties, fix them up and then resell them (flip). Additionally, there are times an investor may want to hang on to the property and rent it out which is called buy and hold. This can be very time consuming and very rewarding. Recently, I spent over a year chasing down a property which sat vacant for over two years. The investor purchased the property on the courthouse steps in a foreclosure auction and now he is rehabbing the house which will go up for sale at the end of the month. This, of course, is a highly competitive market because there are a lot of investors who have worked at getting their real estate license and are doing it themselves now.

The second area I focus on is traditional buy and sell: the traditional listing of a home and reselling it, to working with buyers who are in various stages of life (first time homebuyer), the family who wants to buy some land and build their dream home as well as folks who are transitioning late in life to sell their property.

The final area I focus on is commercial. It has always been a dream of mine to be involved with commercial real estate. For example, I am working with a client now who wants to build a truck driving school. We have identified land and are going through the phase of closing on the land deal as well as rezoning it and ultimately working through the entire planning and zoning process. This is very time consuming but extremely rewarding.

I have been in real estate for two years now. My first year I completed $2.7 million in gross transactions averaging $150,000 to $175,000 per transaction. I am finishing up 2019 with $4 million in gross transactions averaging $175,000 - $195,000 per transaction. Competing with over 11,000 area realtors and large teams who are producing between $25 million and $60 million a year is a big deal to me.

Recently I was featured in the local paper Courier Tribune. It was a great honor to share a little of my story. You can find that article by clicking on the link: Smithville Realtor meets families where they are

Smithville Realtor meets families where they are

SMITHVILLE — Spending a third of his time doing the traditional buy and sell, a third with buy-and-hold properties and another third working with commercial properties, Realtor Dan Hartman of

03/20/2019

Property 5501 N Wyandotte Street, Gladstone, 64118 has 4 bedrooms, 2 bathrooms with 1600 square feet.