Carol and Terry Ronnebaum are pleased to present a fresh marketing idea for Topeka’s home building industry.  Our local community will soon be able to follow along in the on-going construction of a new home built in Topeka’s very own Lauren’s Bay Subdivision.  Terry Ronnebaum Construction, Inc.  recently broke ground on this exciting project.   Throughout the construction process the public will have the opportunity to virtually monitor and view the building progress online.

Carol created a blog,LetsDesignAHouse.com, to inform followers of the step-by-step process of construction during which choices of décor and products may be voted on by the public.  At the end of the voting period the selection will be revealed and incorporated into the home.

Elements for Voter Participation:

• Exterior paint and stone
• Cabinets, Granite tops and Hardware
• Flooring – Hardwood, Carpet, Tile Design
• Bath Design – Shower Tile design, Vanities designs and faucets
• Door handles, Lighting and Window Treatments
• Interior Paint Colors

This home, located at 4428 SW Shenandoah, is expected for completion Mid-Spring.   Carol, a licensed REALTOR® with Coldwell Banker Griffith and Blair American Home and co-owner of Terry Ronnebaum Construction, Inc. stated, “The Let’s Design A House program is intended to increase interest while educating the public in new home construction in our community, show home buyers the many benefits of a new home and encourage community and small business involvement.”  Ronnebaums have co-sponsored this project with more than 20 contractors and local area businesses.  Some of these co-sponsors and vendors with show rooms will have on display the pre-selected voting options that its business is providing for the construction of the home.

Terry Ronnebaum Construction, Inc. has designed and built 100’s of homes in Topeka, Shawnee County and surrounding areas over the past 30 years. Carol noted, “We feel that this is a great opportunity to not only provide Topeka with a custom style new home but to also help to promote the building industry in our local area. “

Visit the Site today at LetsDesignAHouse.com or visit Coldwell Banker Griffith and Blair American Home at cbkansas.com.

Ronnebaum Construction and Terry and Carol Ronnebaum reserve the right to coordinate choices over the selection process.

Approximately twenty agents from Coldwell Banker Griffith & Blair of Topeka and Lawrence joined over 600 Kansas REALTORS® at the 90th Annual Kansas Association of REALTORS® Convention in Wichita last week.

“This unusual real estate market requires REALTORS® to have the best and most current information available about everything from technology and social media to negotiation techniques,” said 2011 Kansas Association of REALTORS® President Jamie Holt of Wichita.  “The Annual Convention is a great place for REALTORS® from across the state to exchange information and ideas on how best to serve their clients.

“I’d like to commend the REALTORS® who attended this three-day event.  They have shown their commitment to quality service and professionalism by making the effort to come to Wichita to these extraordinary sessions,” Holt said.

“We sell the ‘American Dream’ every day when we help people find a home or a business location,” 2012 KAR President John Brocker of Iola said.  “But we also are lucky enough to live the American Dream by being entrepreneurs and small business owners.  While we each have our own challenges in the marketplace, we come together with the power of 7,000 members in order to advance the cause of home ownership and housing opportunities in Kansas.”

REALTORS® attended classes including “Microsoft Outlook for Real Estate” and “Reading the Signs of the Times” during the annual meeting.  The Kansas Association of REALTORS® handed out top awards at the Annual Convention, including the REALTOR® of the Year, Salesperson of the Year, and the Distinguished Service Award.

For more than 90 years, the Kansas Association of REALTORS® has been “The Voice for Real Estate” in Kansas.  The Association is a statewide community of professionals dedicated to education, research and information exchange.

New Flood Insurance Rate Maps issued by FEMA went into effect for Shawnee County on October 1, 2011. Some property owners with federally insured loans will be
getting notices from their lenders that they must obtain flood insurance or be in violation of the terms of their mortgage. There are probably about three people who actually read their mortgage when they bought or refinanced their home, but believe me, the requirement to obtain flood insurance if the property is in the flood zone is really in there.

A number of areas are new to the flood zone as of October 1 and you can check whether your property is included at snmapmod.snco.us. In an unrelated FEMA
determination, however, FEMA has ruled that the levee system protecting areas north of the Kansas River in Topeka is deficient, and since the levees were not upgraded to Post-Katrina FEMA standards by October 1, 2011, areas north of the river will be included in the high-risk flood area the next time FEMA prepares a new Flood Insurance Rate Map for Shawnee County. According to an article in the Topeka Capital-Journal on October 20, 2011, the map will not be redrawn until funds are available for such a project; and when money IS available, the process with be a 2 ½ to three-year project to complete.

What does this mean?

1. Unless the levee system is upgraded, there is an unknown area north of the Kansas River that will be included in the flood zone the next time the maps are drawn, so property owners with mortgages will be required by their lender to purchase flood insurance. (I’m guessing this area will roughly include property which was flooded in 1951.)

2. FEMA currently considers these properties to be at risk, but since the flood maps were just issued without this declaration, flood insurance will not be required by lenders.

3. But if FEMA considers the property to be at risk, shouldn’t owners have flood insurance for their own protection?

4. Flood insurance for properties not in flood zones on the map is relatively inexpensive.

5. Only government agencies can create such ridiculous circumstances.

6. Buy flood insurance if your property was under water in the 1951 flood; and if your property is in the flood zone hazard areas in the new map, buy flood insurance even if you don’t have a lender.

Sometimes I think home sellers look at the fourth quarter of the year as a hopeless time to accomplish their objective. Don’t let these fears be a self-fulfilling prophesy. I’ve looked at our company’s history of sales over the eight year period before 2010. (I ignored 2010 because the impact of the tax credit for homebuyers altered the normal proportions of home sales throughout the year.)

For those eight years, the average closed transactions in October, November and December equaled 22% of the years’ total sales. The average contracts written during the fourth quarter of those years was 18% of the total years’ written contracts. So, fourth quarter home sales are not the downer you might suspect.

Here’s one more thing to consider. Many of the home buyers in fourth quarter are moving to Topeka from outside our six-county trade area. In all likelihood, those buyers are moving here because of a job change. Last year, 12% of our company’s
fourth quarter buyers were from out of town. So, while the number of people looking for homes to buy might be less than other times of the year, they are serious buyers. Before you decide to wait until spring to put your house on the market, consider the serious buyers you might be missing, and the affordability that the current historic low interest rates produces.

Bryon Schlosser – Owner
Coldwell Banker Griffith & Blair

Coldwell Banker Griffith & Blair American Home CEO Bryon Schlosser announced the implementation of an online transaction management system effective for all company transactions closing on or after September 12, 2011. The system, known as “My Transaction™” is licensed through MarketLinx, the real estate information technology division of Core Logic, LLC.

Through a password protected login system, agents and clients will be able to immediately transmit and view documents, inspections and communications impacting their purchase or sale of property. “This is more than just a digital storage file,” said John Ringgold, the company’s Fairlawn office Supervising Broker and technology consultant. “Home owners will be able to access their records for years after their purchase and upload new documents to maintain a permanent file cabinet for their home. If they put on a new roof or install a new furnace, they can upload the invoices and warranties. Major repairs or improvements could also be recorded online. This would be a valuable resource tool for investors as well as home owners.”

The system is marketed by Real Estate Business Resources (REBR), a division of the Kansas Association of REALTORS®. Karen France, President of REBR, has worked with Barbara Rodgers, Transaction Coordinator at Coldwell Banker, since February to enter the agent, client and vendor data necessary to implement the system. “Last month, we hosted an education session for other brokers, lenders, title companies, surveyors and inspectors who will benefit from the system,” said France. “We had very positive responses from the community, and
Barb’s work, along with that of the other Transaction Coordinators at Coldwell Banker, will make this program an immediate success in the community.”

“Transaction management software has been around for years,” acknowledged Schlosser, “but figuring out who would host the data and pay for the maintenance of the systems always stood in the way of utilizing the technology. Now that we can use ‘the cloud’ for storage, we concluded that this was a level of service that we needed to provide to our agents and clients to take advantage of other technologies in communication and data management.”

Even though the long-awaited September 30 date is almost here and Shawnee County’s new FEMA flood zone maps will soon be in effect, uncertainty still persists for new buyers of homes in flood zone areas.

First, the Senate has yet to extend the authority of the National Flood Insurance Program to underwrite flood insurance policies after September 30, 2011. The US House of Representatives has extended the program for five years, but still no action in the Senate. Last year a one-year extension was approved after 60 days of no authority. Thousands of home sales were delayed or cancelled because the buyers had no affordable market to buy the flood insurance required by their lender, so it looks like we could be in for the same political embarrassment again.

A new political battle will be harming residents of North Topeka after September 30th…this time a battle between federal agencies. FEMA has declared the levees protecting North Topeka in need of repair and has set September 30th as the date the work must be accomplished by the City of Topeka and the Corps of Engineers. The City has saved up its $9 million share of the cost, but the Corps doesn’t have its share of the renovation cost. FEMA is unwilling to extend the date for repairs to be complete, so effective October 1, the residents of some undefined area North of the Kansas River are officially ineffectively protected from the dangers of flooding.

So, I thought these areas would be required by the terms of their mortgages to obtain flood insurance on October 1, 2011. (Kind of ironic since Congress has yet to extend the authority of the National Flood Insurance Program.) However, FEMA commented last week that the Flood Insurance Rate Maps are what controls that requirement, so those residents north of the river can rely on the new map to avoid the requirement to obtain coverage. (They didn’t comment on the wisdom to self-insure against the risk of flooding.) They asserted it would take at least two years for new flood zone maps to be drawn and approved, so they think they aren’t doing any harm.

Well the harm is the uncertainty. Won’t all home sellers have to disclose that flood damage is likely without improved levees? Won’t all appraisers have to take into consideration that FEMA believes the area to be at risk? Won’t all home buyers have to be made aware of the risk that some day flood insurance might be required by their lender…or by common sense? And, what area north of the river is really at risk? I’m guessing it wouldn’t be any more than the land area that was covered in the 1951 flood, but there is no map from FEMA to tell us. Maybe we could get another government agency to help us.

Shawnee County and Topeka property owners will be experiencing some new flood zone
issues as of September 30th this year.

Issue # 1: After decades, FEMA has finalized new flood zone maps for the
county which will become effective September 30, 2011. Some new areas are included
in the high risk areas (notably areas along the Shunganunga Creek watershed) and some
areas have been removed (mainly areas which are newly developed where terrain was
raised or otherwise protected.) Structures in the flood zone areas are usually always
required to have flood insurance by the terms of their mortgages. Flood insurance may
also be purchased by homeowners who have no mortgages or whose properties are
outside the high risk area, and that might be a great subject to discuss with an insurance
agent.

Issue # 2: Flood insurance is underwritten by a federally backed program known
as the National Flood Insurance Program. The authority of this program to underwrite
flood insurance expires September 30 and must be extended by Congress in order for
flood insurance policies to be purchased. The House has passed a five-year extension for
NFIP, but the Senate has yet to vote on that bill. So, any flood insurance needed after
September 30 will have to wait for enabling legislation. Last year, Congress delayed
action for 60 days past the program’s expiration. With no flood insurance available, no
sales could take place where flood insurance was required until the legislation was signed
into law. It looks like we might be heading for that situation again.

Issue # 3: Areas north of the Kansas River (notably Oakland and other Topeka
properties flooded in 1951) are excluded from the high risk flood zone only because they
are protected by a system of levees and pumping stations. FEMA has declared these
levees to be in need of renovation and has warned Topeka and the US Corps of Engineers
that the flood zone exclusion for these areas will end on September 30 if renovations are
not complete. The Corps has agreed to pay 65% of the cost, but is without funding to
honor its grant. The City has its share of the funds in reserve, but can’t start without the
Corps of Engineer’s share of the estimated $24 million project. Without another
extension of time to perform from FEMA, many homeowners in North Topeka will be
getting a letter from their lender requiring flood insurance protection effective September
30.

So, would it be too much to ask for our government to act rationally?

For many people, finding a new home is more than a matter of personal taste and individual finance – it’s a family affair. I’ve bought a house as a newlywed couple and then again with a child, but buying one now with my three boys would certainly be a different experience. For those buying a new home to accommodate a growing family, it is an exciting step in one’s life, but it can also be a balancing act.

A recent survey released by Coldwell Banker Real Estate found that 65 percent of homeowners who are also parents purchased their first home before becoming pregnant or within one year of their child’s birth. Wow, that’s a lot going on in a person’s life at one time, but it makes sense. It isn’t until you have a child that you realize just how much space this tiny, little person takes up so that apartment or condo you bought won’t cut it with a munchkin crawling around.

For those consumers who are in a position like this, Coldwell Banker has put together five tips for buying a home with a family in mind:

Proximity to family. Nearly half of the homeowner respondents in a recent survey from Coldwell Banker reported that they live less than 10 minutes from extended family members, with 72 percent choosing to live within 30 minutes. Buying a home that is close to family members can provide support, help and guidance that can be a great benefit both emotionally and financially. With extended family nearby, families have the opportunity to spend more time together and even save money on occasion. The cost of babysitters and long distance travel to visit relatives can really add up!

Existing floor plan. Each family has its own unique dynamic and should take its distinctive needs into consideration when exploring different floor plans. While having a master bedroom upstairs and the other rooms downstairs may work for some families, others may prefer to have all of the bedrooms on the same level.

Surrounding neighborhood. The neighborhood looks different from the eyes of a parent. It’s wise to get an idea of what the neighborhood offers for children, such as local recreational centers, parks or playgrounds as well as the school system, before deciding on an area to live. Coldwell Banker recommends home buyers utilize online tools such as Coldwell Banker On Location or local neighborhood sites that can offer consumers a wealth of local market information.

Future lifestyle needs. They say children grow up in the blink of an eye, and while you don’t believe at first, it’s absolutely true. Make sure the home you purchase leaves growing room and will still fit your family’s needs a few years down the road, especially if there are plans for more children.

Budget. One of the most important things for all potential homeowners to consider is their personal budget. Growing a family and having children usually means a growing list of expenses as well. Estimate monthly expenses along with a mortgage payment to ensure all financial commitments can be reasonably met.

These are just 5 simple steps for buying a home with a family, but there’s so many details involved that it certainly helps to have a trusted agent by your side to guide you through the process.

Homeowners get great tax breaks and can take advantage of building equity and the appreciation of real estate in our area. Watch the video below and find out 7 great reason you should become a homeowner!

Last week Coldwell Banker treated us to a work session in Wichita with Larry Kendall of Ft. Collins, Colorado. Larry is a legend among REALTORS® for his creation of Ninja Selling. Step 2 in the Ninja Selling Process is “Information.” Providing information to buyers and sellers, Larry reasons, is the most logical way to help prospective clients understand the process and the market. Among other information resources, Larry mentioned research gathered by PMI, LLC. PMI is the company that sells mortgage insurance…in other words, they insure lenders that their loan will be repaid in the event the borrower defaults. So, it made sense to me when Larry said he trusted forecasts of housing values gathered and published by PMI.

Since PMI is in the risk assessment business, I looked at a report they publish predicting the likelihood that a home purchased now would be worthless in two years. They call it the House Price Risk Index. PMI ranks 384 MSAs (that’s Metropolitan Statistical Areas and roughly equates to the market areas of 384 metropolitan areas.) Their last published report, on abroad-based spectrum, concludes that 41.7% of MSAs have an elevated or high risk of suffering a price decline two years from now. Those areas, as you might expect, are areas with…”higher unemployment rates, higher new foreclosure rates, lower affordability, a larger excess housing supply and more volatile house prices…” The Top 10 worst performing MSAs in the country are in Florida, Arizona and Nevada. All 10 markets were forecast to have over a 99% chance of experiencing a decline in home values two years from now.

By contrast, the Top 10 best performing markets were smaller communities, seven of which were located in North Dakota, Iowa, Oklahoma and Nebraska. Those markets were forecast to have less than a 2% chance of home prices declining two years from now. All five Kansas MSAs ranked in the “Low” range for risk of price decline in two years.

Here’s the Kansas ranking:

MSA_________________________ Change of price decline

Manhattan                                                            27.8%

Kansas City MO-KS MSA                                     23.2%

Wichita                                                                 21.4%

Topeka                                                                14.2%

Lawrence                                                             10.9%

So, what we can promote about our area is that current homeowners (according to the expert economists consulted by PMI) have an 85.8% chance in the Topeka area, and 89.1% chance in the Lawrence area, to have stable or increasing home values in two years. This is far better news than is being broadcast by the media this week based on the S & P Case-Schiller Index just released on the decline in values in the Top 20 USA Markets.

Looking for other markets? You can download a PDF version online at http://www.pmi-us/com/ERET.