How would you like to be part of adding $43M into the KC Metro economy in a single year?

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If you are a regular reader, you know that Domicile One Realty prices our listing sides a bit differently from the pack.  Where others might charge a seller a 6% commission on the sale price, we allocate 3% to the listing agent not to exceed $3950 plus 3% of sale to the buyer’s agent.  No fees at all.  It is the “not exceeding $3950” that makes such a huge difference. This means that if your home sells in excess of $133,000, you will be saving money by listing with us when compared to a 6% commission structure.

So what about the $43 million in the headline?  While preparing my year-end housing report, I wondered how much sellers would have saved if every single 2017 sale in Johnson County had been listed by Domicile One.  I compared our prices with those at a 3% listing side and I even reduced that percentage to 2% for properties over $500,000 just to be fair.  The comparison is dramatic to say the least.

      $78,131,980  versus $34,293,900 translates to a consumer savings of $43,838,080

What would it mean if that money was put into the KC Metro economy.  School tuition…  Goods and services…Business startups…Charities…College Funds…Savings Accounts and rainy day money.  The list could go on forever.

A 6% commission is so entrenched in the minds of most consumers, they don’t often think about where that money could be going and is it a sensible payment for services with today’s technology?  We hope you invite us to be one of the Realtors you interview when it is time to sell.  We will go over our services list, marketing plan and the very important net proceeds so you will have all the information put in front of you.  What will you do with your savings?

Take care,

Terry Jackson | 913-488-5623 | www.DomicileOne.com | Terry@DomicileOne.com

Copyright © 2017   Domicile One Realty, LLC   All Rights Reserved

 

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Posted in Domicile One Realty, KC Metro Home Selling, KC Metro Real Estate Report

Should I Sell my Home during the Holidays?

Notebook Cafe Xmas

Holiday decorations, the aroma of holiday baking….not a bad way to show off your home for family and friends, but what about potential home buyers?

There seems to be this idea that you shouldn’t try to sell your home during the holidays, but is this true?  I recently read an article by Mike Ferry, a well-known real estate coach, that highlights reasons to go ahead and do just that.

— He states that buyers are going to be more serious during this time and that is accurate.  Buyer’s requesting showing appointments aren’t doing so because it is part of their holiday tradition.  They are, more than likely, serious buyers and their agents (who also have holiday items to attend to) will see to that.

— Mike also mentions that the seller can control the showing schedule.  This is also a good point that sellers don’t always realize.  You don’t need to worry about people requesting showings when you don’t want them.  Just ask your listing agent to restrict those times and dates and you won’t even be bothered with the showing request.

— Holiday decorations really show off a home and yours will more than likely be “show ready” during this time due to friends and family gatherings.

So we know that buyers are serious during this time, you can control the schedule and your home will show beautifully, but what about the numbers?

If you are a regular reader, you know there are charts coming…

I pulled up sales for the past 5 years in Johnson County, KS comparing single family sales for the month of May (a reliably brisk month for sales) against December.  The number of closed sales is consistently smaller in December as opposed to May which probably does not surprise you, but read on….

Holiday Sales

What about the prices though?  With the same location and time interval, I compared average sale prices.  Many would think the sale prices would be lower, but are they?   Ho-Ho-NO!  As you can see below, December sale prices more than held their own against those in the summer.  This is a point to underscore as the perception/fear of many is lower proceeds when selling during the holidays.

Number of Sales

I hope this provides some insight to sellers contempating a sale in December.  You can see that this does not have to be a negative in pricing or flexibility.  In fact, there might even be some advantages in this seller’s market where new inventory is sorely needed.

If you would like to talk more about this topic, we’d love to hear from you.

Wishing you a Happy Holiday Season,

Terry Jackson  |  Domicile One Realty  |  913-488-5623  |  www.DomicileOne.com

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Natalie Rowe of North American Savings Bank awarded 2017 Employer-Assisted Housing Award.

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Domicile One Realty is pleased to announce this year’s KC Metro Employer-Assisted Housing award winner — Natalie Rowe of North American Savings Bank (NASB). This annual acknowledgement recognizes KC Metro professionals that take a leadership role in bringing awareness to the vital need of home buyer education.

Throughout the entire year, Natalie has tirelessly demonstrated her strong commitment and continued focus on employer outreach.  She consistently shares how employers have opportunities to play a significant role in their staff’s path to homeownership by offering home buyer education.

Terry Jackson, founder of Domicile One Realty said, “Education is a tremendous benefit to a first time home buyer and area professionals that actively support these endeavors should be recognized.  We applaud Natalie Rowe for her diligence in taking this message to the business community and hope that this recognition will complement her continued efforts.”

Almost 40,000 real estate transactions were closed in the KC Metro this year.  According to a National Association of Realtor’s Buyer Survey, four of every 10 real estate transactions involve a first time home buyer.

Click to read full press release.

 

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Posted in Domicile One Realty, Homebuyer Education KC Metro, KC Metro Home Buying | Tagged , , ,

Examining the Stigma of the “Discount” Brokerage

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I never heard the word discount used in such a disparaging way until I became a Realtor.  Who doesn’t love a discount?  In our industry, however, a discount broker is sometimes looked at sideways by a good many in the industry nationwide.  Too often, the perception of a discount or flat-fee brokerage is one of neglecting the clients or disrupting the industry itself by offering lower rates or commissions.

Not a winning endorsement is it?  Well, as a broker owner that does have pricing on the lower end, I wanted to spend some time on this topic and provide some guidance that might help clear the fog for today’s consumers.  With the right research, this could be an opportunity to examine.

Speaking of consumers, I apologize that all this confusion might impact your decision making and, potentially, your bottom line.  Assuming that all brokerages that charge less must offer less is incorrect.  When uttered by real estate professionals as a knee-jerk response to a lower-priced competitor, that simply makes folks suspicious of us all.

I won’t make the same mistake and tell you all agencies that have lower pricing are wonderful.  On the flip side, I won’t tell you firms that charge more are wrong to do so because I don’t know all of the service lists of the 1000 plus brokerages in the KC Metro.

As in everything in life, we must do our own homework.  I want to encourage you to do your own research when interviewing your listing agent.  No matter how many brokerages you interview, ask for a marketing plan, a services list, a list of client testimonials or references, the Realtor’s resume, plus their track record on sales.  This way you can see if you are comparing apples to apples because these are the differentiators….the value/experience/professionalism being provided.  You then can move forward with an educated decision based on facts no matter which brokerage gets your business.  For further assurance, arrange for a concession in the listing agreement that you can cancel your agreement if these promises are not being kept.

As for Domicile One Realty, we didn’t just throw a dart and pick our price.  We know our bottom line, costs per transaction and our monthly overhead is kept low.  It’s not a discount.  Our price is just our price.  We really do care about our clients getting as much in seller proceeds as possible and we can still do that and offer a full service experience at the same time.  If a client can even retain an additional $1,000 that doesn’t go to commissions and fees….well, that’s real money folks.  That’s a local moving truck, or books for a semester of college, a new refrigerator, or maybe a car repair….you get the idea.

Our listing service fee?  3% not to exceed $3,950 on listing side + 3% for Buyer’s Agent.  No office or transaction fees…not ever.

As usual, please don’t hesitate to contact us with any questions you might have and we’d love to be one of the brokerages you interview if you are contemplating a sale.

Thanks for visiting the blog today and I hope you have a great week!

Terry Jackson |  Domicile One Realty  |  http://www.DomicileOne.com  |  913-488-5623

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KC Metro Housing Stats — Ten Years of Septembers

September Fast Stats

Hi there, everyone.  Hope you are doing well today.

Fair warning….This might be my wonkiest blog post of all time.  If you aren’t keen on charts and statistics, I’ll catch you on the next blog post and hope you have a great day!

For those of you that stuck around…..here we go!

Looking at the full month of September fast stats, the months of supply is still deep in seller’s market territory and the inventory (active properties on the market) is again lower when compared to the previous year at this time.  What’s new, right?  We’re in a seller’s market.

This lower KC Metro inventory (properties for sale), coupled with a consistent demand, is causing these tremendous gains in sale prices, lower days on the market, and a race for buyers to get under contract rivaled only by the Oklahoma Land Rush of 1889.

I’m so used to seeing that downward arrow on inventory on the monthly updates, I wondered when was the last time we saw an increase or even holding the line?  That began my search for “10 years of Septembers” in our KC housing market.

Inventory

The top chart on this blog post shows 16.7% less housing inventory than the previous September.  They are combining new and existing homes to get that figure.  That’s fine for a quick glance, but I researched those two groups independently to get a better idea of how they have looked over the past decade.   This chart shows that almost every month of September Fast Stats indicated a decrease in inventory when compared to the same month/previous year.

Between 2007 and 2009, both new and existing home inventory was on the decline….no shock considering we were in a housing crisis at the time.  Sellers didn’t want to sell at lower prices and credit was drying up for new construction projects.  Except for a jump on existing home inventory in 2010, we continued to lose ground year over year until 2014.  I’m speculating that the bump on existing home inventory in 2010 included sellers that could no longer wait for prices to increase before they had to sell plus the short sale/foreclosure inventory flooding our KC market at that time.

By 2013 and 2014, existing home inventories had lowered to the level of home buyer demand —  a neutral market not really favoring the buyers or the sellers.  Wow,  did things change from 2015-2017.   Existing home inventory just kept right on dropping and that, coupled with a home buyer demand that didn’t let up?  Welcome to the seller’s market.

The chart below makes the point a different way.  Instead of percentage changes, it shows the number of homes for sale.  Notice the almost continuous reduction from 2011 to present.

Number of Homes for Sale

So why have existing home inventories continued to drop?  Simply put, “why do we have fewer owners selling in our metro?”  It isn’t valuation.  Seller’s could enjoy tremendous sale prices on their properties so this isn’t a waiting game on a better market.   Is it the economy?  Fewer homeowners need to sell just to capture a profit.   Are investors holding up the inventory they purchased during the slump?  Could be a contributor.  The chart below shows sales on investment properties.  They are trending up as many are wanting to take their profits, but we don’t know how much investor inventory is still out there.  I’m suspicious that there is much more particularly since large syndicates of investors have discovered that the KC Metro is a great place.

Investor Sales

 

I don’t want to paint a picture that lower inventory alone makes a seller’s market.  It’s always coupled with the demand.  Changes in demand would be impacted by unemployment or hints of big companies moving out-of-town, interest rate increases, down payment assistance availability, etc.  Since we aren’t seeing any of those types of signs that would put the brakes on home buyers, the only way this market will even out (in the short-term) is additional inventory.

So why does all of this even matter to Domicile One Realty?   We work with a great number of first time home buyers and this is a rough market for  clients to purchase in.   I would love to give them some light at the end of the tunnel so I’m searching for trends that might point to signs of a change.   It’s impossible to pick the top or bottom of the market, but I am diligently searching for that inflection point/that 4-6 months where our inventory is even or above that of a previous year.   If we can string a few of these together, we might be looking at the beginning of a change.   Believe me, if I see it, I’ll write it up in what I’m sure will be the 2nd wonkiest blog post I’ve ever written.  I’m attending a residential real estate forecast event next week and I’ll make sure to post what we learn as well.

Thanks for hanging in with me on this post and take care,

Terry Jackson  |  Domicile One Realty  |  www.DomicileOne.com  | 913-488-5623

Copyright © 2017   Domicile One Realty, LLC   All Rights Reserved

Posted in Domicile One Realty, KC Investment Homes, KC Metro Home Buying, KC Metro Home Selling, KC Metro Real Estate Report, Terry Jackson's KC Metro Real Estate Report | Tagged , , , , ,

HGTV’s Impact on First Time Home buyers in Kansas City.

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With the recent announcement of the final season of HGTV’s Fixer Upper, it seems appropriate to lend a bit of time on the impact this network has had on KC Metro home buyers….particularly first time buyers.

There is no denying that HGTV has inspired countless home buyers and owners to restore properties…bringing them back to great condition and benefiting their neighborhoods with an increase in both curb appeal and property valuation.  The before and after photos of some of these properties is simply stunning.

As a Realtor, I love it and hope it continues for as long as possible.  Another perspective I get as a real estate professional are the different types of buyers that look to bank-owned, short sales or properties in poor condition where no repairs are being made.  Basically, it is these types of homes that are typically the canvas for “HGTVers” to paint on.  Having the inspiration is one thing….acquiring the property, however, is very much another.

So what type of buyers are purchasing these “fixer upper” homes?

Buyer #1 — The Investor

Their profile is fairly straightforward.  They are buying with cash and they typically have a team they work with on renovation/repairs or have the skills themselves.  They might decide to rent the property or resell for a profit. (Click here to see our previous blog posts on purchasing investment properties).  This ain’t their first rodeo and they know what they are doing and how to maximize their purchase.

Buyer #2 — Non-investor purchasers (owner occupied) who specifically want a rehab home.

They want to occupy the property and are looking for a value.  They don’t mind the hassle of repairs/rehab.  They are either purchasing with cash or have a specific type of loan suited for the property condition they are getting into.  (ex.  Limited FHA 203K…click to go to the FHA site to learn more about loan summary and specifics).  These are wonderful products that allow you to acquire the property and the costs of the rehab in a single loan.

The big takeaway for this type of buyer is simple.  They are clear on what they want and they have done the legwork to acquire it.

They might find themselves competing for a property with investors, but at least they have the correct loan for the property condition they are going for.  In some scenarios, these buyers don’t even need to compete with the investors.   If you go to websites such as the HUDHomeStore, you will see that new listings always have an interval where only “owner occupied” buyers can bid.  This allows a non-investor a window to get their offer in and under consideration before they have to worry about the investor group.

Buyer #3 — Non investor, owner occupied who are financing the purchase… that sort of back into this space.

In a hot seller’s market, I know that buyers get frustrated having to race around to get a look at a house only to find they are in a multiple offer situation…again.  That is simply the reality of our KC Metro market right now.  Some of these buyers throw their hands up and begin to look toward what they perceive is a calmer segment of the market….bank owned properties/foreclosures and short sales.  Why not, right?  The price tag looks attractive, these don’t always fly off the market like a move-in ready home, and they feel somewhat empowered by what they see on some of these shows.

It is perfectly fine to switch gears, but it is this classification of buyer that is about to discover an entirely new process in their home buying journey.  If you want to step into this space of rehab and fixer upper, your loan product may very well have to switch gears too depending upon the property condition.  Some loans are just not a good fit for a property in need of repairs.   Remember that the lender will be sending out an appraiser to assess valuation (purchase price) and condition.  A typical FHA 203B  loan is getting appraised on what is…not what will be.

Let’s say that you do want to consider a home to renovate/repair.  You now know that there are loans that will fit that bill, but not all lenders handle renovation loans.  This means that the original lender you received pre approval from  (back when you were looking at move-in ready properties) might not be the one that gets you to the closing table.  The earlier you can speak with a Realtor or Lender on this topic, the better.

Summary:

As with all topics on this blog, you get the idea that preparation is critical in your home buying journey.   We don’t expect you to have this knowledge and know everything about these types of purchases beforehand.  We simply encourage you to reach out to us so we can advise you of your many options to get to your goal.

You may very well have a great rehab story to tell one day and we want to do all we can to help you achieve that.

Please don’t hesitate to contact us with any questions you have on this topic.

Take care,

Terry Jackson  |  Domicile One Realty  |  www.DomicileOne.com

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Posted in Domicile One Realty, Homebuyer Education KC Metro, KC Metro Home Buying | Tagged , , , ,

Is the KC Real Estate Market Showing some Signs of Softening?

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This past year and a half has been so crazy for our local real estate market.  Just a runaway for the sellers.  If you look at the sales data today, there is no doubt that the sellers are still running the board.  Still, I’m starting to see the tiniest signs of change.

 

Example #1 — The pace of sales is declining.  Only by the tiniest increments in our metro area, but that is the direction it is heading.  Granted, if it continued at this rate, we’d still be in a seller’s market for another year or more, but maybe it won’t be the insane pace it is today.  How would this look in practical terms?  Buyers might be able to think about it for a day or two!  Buyers might be able to get a second showing with friends and relatives!  They still might have competition on their offer, but they might get some additional time.  That is something they don’t get much of now.

Example #2 — The builders are back.  New residential single-family housing permits continue to trend up.  The Home Builders Association of Kansas City’s August report includes an article showing that single family home permits are up 10% over last year.

With supply increasing year over year,  this can only help our beleaguered buyers.

Example #3 — Some buyers are hitting the tilt button.

In the current market, if a buyer sees a home that has been on the market for 20 days (and is at all informed on current rate of sales), their initial reaction is usually “what’s wrong with it?”.   Could you imagine that just a handful of years after the housing “incident” (where good homes with fair prices sat on the market for a year!), we’d be hearing this type of comment?  Just shows how things do change.   More than a few times this summer, we would run into this situation.  When I’d inquire with the agents on the days on the market, we’d hear stories like the buyer got out of the contract after inspections with no repair requests.   They just got out.

This could be caused by many things no doubt, but I’ve wondered if the buyers might have initially been elated that their offer was accepted only to later regret what they had to offer to BE the primary contract.  Over this past spring and summer, buyers not only had to hustle to get to the showings before the house went under contract, but put in a mighty strong offer to be considered and full list price doesn’t do it in most scenarios.

Note:  This is why we prepare our buyers for this current market, but stress to them to make an offer that they will feel comfortable with whether they get the contract or not.   Not easy to do, but we want to get them into that mindset.

None of these examples alone or combined, will flip this market overnight.  And with more syndication of buyer groups investing in rental homes in large scale, we might see a new normal when it comes to available supply in the KC Metro.  For the time being, however, those of us that work with buyers will still be lacing up our running shoes!

If you ever have questions about a more specific area of the city, we’d love to hear from you.

Best regards,

Terry Jackson | Broker-Owner at Domicile One Realty | www.DomicileOne.com |

Copyright © 2017   Domicile One Realty, LLC   All Rights Reserved

Posted in Domicile One Realty, KC Metro Home Buying, Terry Jackson's KC Metro Real Estate Report | Tagged , , , , ,

KC Metro Area Drop sites and pickup for Limb Debri

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Hi everyone…..Hope all are well after this crazy week of storms we’ve had around here.

I’ve gathered some of the area city website links if you are need of limb/debri pickup or drop off locations.  You will want to check closely on these links for instructions.  Most city drop sites require proof of address and some have restrictions on contractors.

KCMO

 http://kcmo.gov/neighborhoods/leafbrushdropoff/

KCK

http://www.wycokck.org/Home/News-Slider-Data/Large-Set-One/News-Title-(2).aspx

Olathe

I didn’t see anything on their website, but direct number is 913-971-8600

Leawood 

http://www.leawood.org/public%20works/curbsidelimbpickup.aspx

Prairie Village 

http://pvkansas.com/Home/Components/News/News/3528/31?backlist=%2f

Overland Park 

https://www.opkansas.org/

Grandview 

I didn’t see anything on their website, but direct number is 816-316-4800

Belton

Could not find info on their webpage.  Direct # is (816) 331-4331

Shawnee http://www.cityofshawnee.org/WEB/ShawneeCMS.nsf/vwNews/743FFD791BB14AF78625812400557129?OpenDocument

Independence

From their Facebook account…..

 

If you don’t see your city on this list and need help, please reach out to me and we can see what is available in your area.

Take care,

Terry Jackson — Realtor at Domicile One Realty — 913-488-5623 — www.DomicileOne.com

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Tips on selecting your Real Estate Buyer’s agent in this Sizzling Hot Market.

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Hi everyone!  With the sizzling Kansas City weather lately, I’d say one question to ask your buyer’s agent is….”Can you handle this heat during the showings?”  Just kidding.

Back to the sizzling market though and what you need from a buyer’s agent:

#1 — Preparation.

Your buyer’s agent is going to need to walk you through the process of home buying, approximately how much you will be spending and what part of the timeline you will be spending it at.   It is worth it to spend 30-40 minutes discussing process prior to when you start to house hunt.  Why? Things move quickly once you start your showings and you want concepts to be familiar.  Another Why?  You might be eligible for down payment assistance in Missouri or Kansas and we can make you aware of area lenders that participate. Click to go to Missouri Housing Commission Programs.

#2 — Experience in both transactions and the area market.

This is a must.  Your agent needs to be familiar with many types of transactions (private, probate/trust, HUD, Fannie Mae, Freddie Mac or local bank owned) and the ends and outs of each.   Our buyer clients are committing their time and their money and need someone that can get them to the finish line without squandering either.

The area market experience is more than just area sales comparisons.  It’s understanding the pace of the market as well.  Things are moving quickly now and your buyer’s agent will need to be just as quick to get you to showings and get offers together.

#3 — Responsiveness….are you getting your calls and emails returned?

Number #1 complaint against Realtors is this issue.   Simply put, this is a must if you are going to be successful as a buyer in this market.   If you have homes you want to see, your agent will need to jump on those to get showings scheduled.   Once under contract, this agent will be responsible for critical timelines and you don’t want any surprises.

#4 — Do they have a good track record?

Check out their referrals and see what past clients think.  Are they involved in their local associations or city chambers of commerce?

#5  — Interview several agents before you select one.

Look for that experience PLUS communication skills and rapport.    You want to work with someone that is enthusiastic to walk this path with you.

Hope this is helpful to you and please do not hesitate to contact us with anything you need in your home search.  We would be thrilled to be one of the buyer’s agents that you choose to interview with.

Take care,

Terry Jackson — Domicile One Realty — www.DomicileOne.com — 913-488-5623

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Posted in Domicile One Realty, Homebuyer Education KC Metro, KC Metro Home Buying | Tagged ,

First honey bottling of the summer.

bottled honey

Hi there, everyone. Fingers crossed….It looks to be a good year for our honey production.  We were able to start some bottling last weekend and we got about 25 pounds off each hive (ten frames per hive).  It’s that nice, light, early summer hue that you get from the bees foraging on clover.

As those of you that are bee hobbyists are aware, you never really know what each season will bring and you learn something all the time.  As an example…I haven’t been very good about mowing around the hive boxes this season and some of the weeds got a bit high.   Because of it, ants were easily able to get into the hive box.  I learned that cinnamon can take care of that issue.  Who knew?

We hope to get another harvest in late summer or early fall.  Where we live and keep the hives (Northeast Kansas), we are fortunate to have a great deal of clover and a good variety of wildflowers.  This keeps them foraging for quite some time.

 

Our bottling process (remember, we are hobbyists), is to simply drive out to the property with plastic containers with lids.  We open up the super (that’s the top box) and take out the full frames that are sealed with beeswax.   These are put in the plastic containers with the tops put on.  We take them back to the house and begin to remove the beeswax layer with a hot knife and then extract the honey from the frames for straining and eventually bottling.  Once done with everything, we take those same frames back to the hive boxes and put them back in.  That’s what they mean when they say “raw and unprocessed”.  It’s wonderful to give a bottle of honey to a friend on Wednesday and share with them that it was in the hive just days ago.

Tips:

  1. If you are bottling for the first time, you will learn all of this very quickly, but this might save you some headache.  When you are working with the frames where you are bottling, everything you touch will get sticky.  Bottoms of shoes, doorknobs, absolutely everything so have plenty of wet, warm hand towels around before you begin.
  2. I’ve seen those wonderful movies where the “bee whisperer” just reaches into the hive and pulls out the honeycomb.  That is a movie.  These bees have worked long days to store that honey and they are not happy about it being robbed.  You absolutely need protection — suit up with veil, full suit and gloves and have your smoker ready to go to.

 

Hope you all have a wonderful weekend and please don’t hesitate to reach out if you need anything.

Take care,

Terry Jackson — Realtor and Broker Owner at Domicile One Realty

913-488-5623

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