Louisville Home and Condominium Buyer Guide

Sales activity up significantly

noreply@blogger.com (Unknown) — Thu, 14 May 2009 19:18:00 +0000

Sales activity is up significantly in Louisville. High inventory levels great for buying opportunity!

Kentucky Housing offers down payment funds up to $4000

noreply@blogger.com (Unknown) — Thu, 14 May 2009 19:16:00 +0000

If you qualify for Kentucky Housing financing you can get up to $4000 in down payment assistance. This is the only program offering down payment assistance!

First Time Home Buyer Tax Credit up to $8000

noreply@blogger.com (Unknown) — Thu, 14 May 2009 19:14:00 +0000

The first time home buyer tax credit can be as high as $8,000 with no repayment if youlive in the home for three years.

Sales of homes and condos in Louisville still increasing while months of inventory move lower

noreply@blogger.com (Unknown) — Sat, 17 May 2008 15:46:00 +0000

The Louisville area continues to see increases in sales of homes and condominiums as well as a reduction in months of inventory levels in both categories.

Since March of this year sales of single family homes increased by 4% and months of inventory dropped 2%. During the same period condominium sales were up 10% with months of inventory dropping 5%.

Still maybe not a trend but continued improvement.The discount from list price for both categories is ranging from 2% to 3%.

Opportunities still exist and interest rate continue to be low.

More good news, Foreclosures filings down 45% in April

noreply@blogger.com (Unknown) — Sat, 17 May 2008 15:44:00 +0000

More good news on the Louisville housing market.

Foreclosure filings in Louisville dropped 48% in April.

Nationally foreclosure rates went up 65% in April.

This points out the strength of the Louisville real estate market and how National averages have little impact on individual local markets

Louisville median price much lower than National median

noreply@blogger.com (Unknown) — Sat, 03 May 2008 17:35:00 +0000

The median home price in Louisville is $130,000, much lower than the National median price of $200,000.

Louisville continues to be a housing bargain.

Louisville area Home Sales Up, Months of Inventory Down

noreply@blogger.com (Unknown) — Wed, 09 Apr 2008 18:42:00 +0000

Recent activity in the Louisville area indicates a rise in sales and a decline in months of inventory.

Sales has risen about 30% from January with inventory levels shrinking by about 20% for the same time period.

Does this suggest a change in tide?

If you have been waiting for the bottom of the market to arrive the time could be now.

8 Tips to Guide for Your Home Search

noreply@blogger.com (Unknown) — Tue, 08 Apr 2008 15:29:00 +0000

8 Tips to Guide for Your Home Search

1. Research before you look. Decide what features you most want to have in a home, what neighborhoods you prefer, and how much you’d be willing to spend each month for housing.

2. Be realistic. It’s OK to be picky, but don’t be unrealistic with your expectations. There’s no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender and get prequalified for a mortgage. This will save you the heartache later of falling in love with a house you can’t afford.

4. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own.

5. Decide your moving timeline. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.

6. Think long term. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that will best suit you.

7. Insist on a home inspection. If possible, get a warranty from the seller to cover defects for one year.

8. Get help from a REALTOR®. Hire a real estate professional who specializes in buyer representation. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. Buyer’s reps are usually paid out of the seller’s commission payment.

Activity is increasing

noreply@blogger.com (Unknown) — Thu, 27 Mar 2008 20:17:00 +0000

I am experiencing an increase in market actvity.

Good properties are starting to move. This should start to eat up some of the 9-10 months supply of inventory. if you were trying to time the bottom of the market you might want to keep an eye open for good opportunities.

Like with the stock market, people have never figured a way to time the bottom of a market with any degree of accuracy.

Mortgage rates and the Fed discount rate

noreply@blogger.com (Unknown) — Fri, 01 Feb 2008 15:47:00 +0000

Home Mortgage rates are driven to a large extent by supply and demand. The more demand for Mortgages the higher the rate.

Recent actions by the Fed to stimulate economic growth by lowering the Discount Rate have helped to improve Wall Street's confidence in the economy which in turn tends to increase Mortgage rates. In times of strong economic growth the Fed may increase rates to curb inflation which would tend to lower Mortgage rates.

During this last week Mortgage rates dropped and then rebounded as demand for Mortgages increased. Folks were trying to take advantage of the lower rates to refinance their higher interest rate Mortgages thus increasing demand for mortgages and increases in Mortgage rates.

A more accurate gauge of where Mortgage rates may be going is 30 Year Treasury bonds. These bonds are driven more by Wall Street movement and less on the Fed's Discount Rate.

Confusing? Check with your Mortgage consultant for more information on impact to you specifically.

Maintenance Must Dos

noreply@blogger.com (Unknown) — Mon, 28 Jan 2008 19:49:00 +0000

Don't let poor maintenance affect your home's value.

Keep your furnace filters clean to increase efficiency and possible repairs

Drain your water heater once a year to remove harmful sediment.

Clean coils on baseboard heaters.

Check circuit breakers and replace weak breakers to prevent shorts.

Check under sinks for leaks to avoid water damage.

Replace major mechanicals before they go bad to prevent costly emergency repairs.

Check outside of your home to make sure there are no leaks from loose gutters, missing or damaged flashing, missing or damaged weatherstripping.

Also check for standing water around foundations, cracks in foundations or missing splash blocks on downspouts.

Make your house last longer, retain more resale value and prevent costly repairs that could have been prevented.

Are you paying too much for financing?

noreply@blogger.com (Unknown) — Wed, 23 Jan 2008 19:01:00 +0000

I work with Kim Luckett with Homeservices Lending. Her office is loacted in my office and I have found her to be very helpful. She is very straight forward and honest.

I was talking with her yesterday and she mentioned several points that are good to be aware of when discussing financing. She indicated that while interest rates are an important factor in the calculation of mortgage payments that things like; loan origination fees, private mortgage insurance, points, rate buy downs, etc... all go together to account for your monthly payment as well as closing costs.

Interest rates continue to go down and there are lots of different mortgage products that are available.

She can help you navigate through the whole process.Her number is 502-327-2516.

I think it would be worth giving her a call and see if she can help.

Buyers have the ability to buy

noreply@blogger.com (Unknown) — Mon, 31 Dec 2007 17:21:00 +0000

Since 2005 the economy has added 4 million new jobs, wages have grown by 8% and houshold wealth has grown by $5 trillion dollars.

When you add interest rates expected to remain low and availability of homes to chose from buyers will be able to find some very good investment opportunities.

Success Story

noreply@blogger.com (Unknown) — Thu, 27 Dec 2007 16:26:00 +0000

A recent client of mine was able to sell their current home in 10 days at full price and purchase their move up home at a roughly $30,000 discount from the builder.

The Louisville market remain strong despite what you might have heard.

Credit Worthiness

noreply@blogger.com (Unknown) — Tue, 18 Dec 2007 20:07:00 +0000

Your credit worthiness has always been important to the home buying process. It not only allows you to shop for the mortgage product that best fits you situation but can also affect the total cost of your mortgage.

In light of recent problems with the sub-prime mortgage market, lenders are beginning to reevaluate how they manage risk. Some are considering adding fees in order to improve their ability to be weather losses.

Don’t let your credit worthiness affect the cost you have to pay for a mortgage.

If in doubt about your situation, contact a mortgage consultant who can give you advice and direction on how to position yourself for the most cost effective mortgage possible.

National average data doesn't reflect strength of Local Markets

noreply@blogger.com (Unknown) — Thu, 06 Dec 2007 15:44:00 +0000

Louisville is akin to other local markets throughout the country that while not setting huge rates of appreciation it is also not likely to fall victim to bursting bubbles.

This was most recently reiterated by Lawrence Yun the chief economist for the National Association of Realtors

“A national picture of the real estate market is just about as valuable as giving a national high temperature for the day".

The following is an example featuring the Kansas City real estate market which in many rfespects mirrors the Louisville market.

Although the Realtors report that the national median price declined 2 percent during the third quarter compared with a year earlier, the price in the Kansas City area declined just 0.7 percent, to $157,000.

That difference speaks to the fundamental fact that Kansas City historically has not been a particularly volatile housing market. Although we didn’t soar as high during the recent housing boom, we are equally unlikely to suffer as much as the national average during the correction.
Now, consider this little nugget that often goes unnoticed amid the nationwide hand-wringing over housing.

Ninety-three of 150 metropolitan markets tracked by the Realtors actually posted median home price gains during the year ending in the third quarter. Although Kansas City wasn’t among them, most of those gainers are midsized markets in the country’s vast middle section akin to ours.

The focus on recent declines in nationwide housing values also tends to ignore the previous — and, admittedly, unsustainable — run-up in values.

Despite the recent 2 percent dip in median home prices nationwide, the Realtors report that the typical seller posted a 38.8 percent increase in value over the past six years.

Now, none of this is intended to downplay the housing market correction that is under way both here and across the country. It’s as real as the “reduced” sign down the street.

Clearly, it’s a buyer’s market, with 15,788 existing homes available for sale in the metropolitan area, according to the latest report from the Kansas City Regional Association of Realtors. That’s eight months of supply at the current sales rate, which is more than the six-month supply typically considered to be a balanced market. And that’s the main reason the sales price has slipped a bit over the past year.

But at this point it’s hardly a disaster. The local housing market is simply undergoing a needed, if painful for some sellers, market correction. Prices are coming down some to clear a backlog of accumulated inventory, and include a recent increase in foreclosure properties. But mortgage rates also are drifting lower for qualified buyers, which should help demand. And assuming the broader economy doesn’t slip into recession, the local housing market will turn the corner sometime next year.

Bottom line: It’s a great time for buyers, and a tough time for sellers. Markets adjust.

Net worth higher for home owners

noreply@blogger.com (Unknown) — Tue, 04 Dec 2007 19:16:00 +0000

According to the Federal Reserve Board they consitantly find that the net worth of a homeowner versus a renter is staggering.

The average net worth of a homewoner is $184,000 versus $4000 for renters.

Do you have the right smoke detectors installed?

noreply@blogger.com (Unknown) — Fri, 30 Nov 2007 15:18:00 +0000

In metro Louisville you are required by city ordinance to have either a hardwired smoke detector(one that uses your home's electricity for power) or a ten year non-replaceable lithium battery smoke detector.

When you sell your home you must certify that you have the appropriate smoke detector.

Even if you are not selling your home you are still liable for damages to property and residents as a result of not having the appropriate smoke detectors installed.

Not worth the risk!

Has your home been tested for Radon gas accumulations?

noreply@blogger.com (Unknown) — Thu, 29 Nov 2007 15:17:00 +0000

Radon gas is created by the decomposition of radio active material present in the earth. It dissipates very rapidly to the atmosphere. It has been linked to long term health effects.

This is only a problem is when the gas accumulates in the basement or crawl space of a home. The geological make up around the Louisville area is susceptible to radon gas accumulations.

When buying a home in the Louisville area you should seriously consider have a radon test performed during your home inspection process. If unacceptable levels of Radon gas are found you have an opportunity to ask the seller to install a radon mitigation system at their expense. Radon gas levels below 4 pCi/l are considered safe. Some home test as high as 100 plus.

Radon mitigation systems may cost $700 and up to install and can reduce radon levels to below 2 pCi/l.

Definitely worth the $80-$150 cost for the testing.

Be sure to choose the right lender

noreply@blogger.com (Unknown) — Wed, 14 Nov 2007 17:18:00 +0000

Choosing the right lender can afford you protections that may not be obvious!

Ask you realtor for the risks you may be avoiding!

Final walkthrough prior to closing

noreply@blogger.com (Unknown) — Wed, 14 Nov 2007 17:08:00 +0000

Don't forget to do a final walk through before you close on your new home!

Stake Surveys

noreply@blogger.com (Unknown) — Wed, 14 Nov 2007 16:53:00 +0000

Purchasing a stake survey is highly recommended!

Stake surveys, in a significant percentage of cases, uncover defects that could dramatically reduce your property's value.

Possibilities include;

A neighbor's house or shed could be on your property

Your house could be on top of a utility easement rendering it unmarketable

Your yard may not be as big as you think

Fences, sheds would have to be demolished if they are in a utility easement

Don't get a surprise you can't live with!

Louisville real estate areas

noreply@blogger.com (Unknown) — Sat, 10 Nov 2007 15:37:00 +0000

The Home Inspection Process

noreply@blogger.com (Unknown) — Mon, 11 Sep 2006 19:05:00 +0000

A home inspection is a critical part of the home buying process. Not only will it uncover any deficiencies your home may have it will also highlight important on-going maintenance requirements.

The first step is the selection of a licensed inspector. The most widely used method of selection is through personal referrals from friends, family or your Realtor.

Once you have selected an inspector you will need to schedule between two and four hours for completion of the inspection. This amount of time is required to thoroughly inspect your home from the ground up.

It is advisable that you attend the inspection in order to have first hand knowledge of the inspector’s findings.

Once the inspector has finished the inspection, a complete report of his finding will be created. The inspector will review the report with you.

Any safety or structural concerns will be the first priority, followed by cosmetic concerns and important features of your home such as the main water shut off valve.

Safety and structural concerns may require you to request repairs and or replacements from the Seller. You may also consider voiding the contract if the issues are serious enough. Your Realtor can assist you in making these decisions.

You will be left with a copy of your inspection for future reference.

The results of your inspection will have to, in most cases, be disclosed to future buyers. Again, your Realtor can advise you in regard to prevailing disclosure requirements.

Don't miss this important step!

Home Ownership Benefits You Might Not Realize

noreply@blogger.com (Unknown) — Thu, 04 May 2006 20:06:00 +0000

The National association of Realtors has found, through a systematic review of research, that home ownership is an unbeatable way to provide the kind of stable housing that leads to a wide variety of household benefits for the community.

Some of these are:
Higher educational performance and better behavior of children
Lower community crime rates
Lessened wlfare dependancy amoung households
More hosuehold participation in civic affairs
Better household health