The Dobbs Team Louisville KY Real Estate Blog

Red Day for Keller Williams

2012-05-13T08:22:00-07:00

Keller Williams Real Estate agents believe in giving back to their community and dedicate a day each May. The ongoing project is the West End Boys School for Keller Williams Louisville East. West End Boys School was founded in 2005 by Robert and Debbie Blair. It is a free, private, middle school for at-risk young men. The boys eat their meals and sleep here making it a true boarding school. The proof in what they do is their graduating young men. Barb LaMaster is a KW real estate agent in our office and has coordinated “Red Day” for years. Barb also puts together a Christmas meal for the boys and Barb’s fellow Keller Williams agents. Our function started with a meal with the students and faculty. Of course, the teachers were honored by starting first and the KW agents finished up. One of our goals was to get to know each young man a little better and they were scattered about with one or two fine gentleman per table. And, the word, “gentleman” would be an understatement. When they were introduced to us, they met with a firm handshake and looked us in the eye. Their table manners were impeccable. At our table, the conversation covered a lot of topics, but the highlight was Nelson Mandela and Apartheid. I asked them if they understood what Apartheid meant and further discussion ensued. I was very impressed. The West End School always has projects for volunteers and we had more jobs to do than time allowed. Three classrooms are being added this fall as part of their expansion. We cleaned and painted the ceiling grid in 3 rooms and the hallway. We also knocked down a temporary wall that was part of their current lunchroom. For those wanting fresh air, the courtyard had weeds that needed to be eliminated and mulch applied. As the old saying goes, “Many hands make light work”. This summer, the boys have a required reading list and our KW office donated books for the boys to enjoy. If you want to know more about the West End School in Louisville, or see what The Dobbs Team is up to, we would be happy to share our experiences. Or, if you want to know about the Louisville Real Estate Market, call Steve Dobbs at 502-475-3312.

Radon and the second test in Louisville KY

2012-01-09T08:24:00-07:00

In Louisville, KY and the surrounding counties, we can have a problem with Radon in our houses. The only way to know is to test. Homes with basements are not the only places that Radon can be found. Radon can be found in homes with crawl spaces and in homes on a slab foundation. The Louisville, KY area is in a belt of higher Radon levels. Consumers can ask for free Radon test kit from the state of Kentucky. This site also has a lot of information including Radon myths. Most home inspectors offer to test for Radon during their regular home inspection. Normally, they will set up a meter for at least 48 hours. The Radon meter will sample once an hour and give you a current reading as well as an average. Some of the better Radon monitors have the ability to hook up to a computer and let you print out the average results as well as a graph. This is a 48-hour graph of our house. Obviously, this house needs Radon Mitigation with an average of 12.4. What if a Radon level of over 4 picocuries is discovered in your new home? The EPA would recommend Radon mitigation by a professional. Costs can vary widely, but $800-1,000 is a decent range of what a lot of systems are installed. Converting a passive Radon system to an active system is the cheapest and mitigating a crawl space is the most expensive. A passive Radon System typically is a 3-inch pipe from the sump pump area through the roof of the house. There will be a small flow of air through the pipe that occurs naturally. Converting this to an active system would involve installing a fan in the pipe providing a constant movement of air and negative pressure under the concrete. One of the most important things in Radon Mitigation is the retest. How do you know if the radon is mitigated if you don’t test? In the example given, the retest was 6.1 and not acceptable. We were able to move the suction point and receive an acceptable reading. We have a lot of information about Radon in KY on our website and have some PDF documents from the EPA as well as information from the state of Kentucky. Feel free to contact The Dobbs Team if you have any questions about Radon or the Real Estate market in Louisville, KY.

Changes in the FHA Mortgage Market

2012-03-02T14:05:00-07:00

There have been several changes in the FHA backed mortgage market in the last year and the newest will occur on April 1. We will see upfront Mortgage Insurance increase from the current 1.0% to 1.75% that will help strengthen the capital reserves of FHA. On top of this, the annual renewal premium will be as high as 1.25%. This will significantly increase a borrower’s cost. This is important because a good many of our home buyers in Louisville utilize an FHA backed loan. As I look over my clients in the past, our first time home-buyers are often using FHA mortgages due to the low down payment required. One complaint that I hear is that MI (Mortgage Insurance) is required with an FHA loan. I think that it is hard to complain about paying mortgage insurance when you are able to buy a new home with a lot less than 20% down payment. With this being said; the increase in Mortgage Insurance on a yearly basis and upfront will make a difference in the monthly payment of our Louisville real estate clients. FHA loans will also work with some condominium purchases. The key here is for the condo development to be FHA approved. If I am showing homes to an FHA buyer, I always make sure that the condo is approved first. I don’t want to waste our time showing something that won’t work. Your FHA loan officer will be able to tell you if the condo development is approved or not. Feel free to contact Steve Dobbs with The Dobbs Team if you have any questions about this or the Louisville KY Real Estate Market.

1811 Shelbyville Rd Open House

2012-04-29T04:03:00-07:00

1811 Shelbyville Road in the Elk Creek area of Taylorsville, KY has been on the market for a while. Our sellers have found another home nearby that is calling their name. We had discussions in the past on what could be done to sell their house and price has come up several times. So now, they are serious and have had a 10% price reduction. The last weekend in April is a big push for open houses nationwide from the National Association of Realtors® (NAR). With this large price reduction and the big weekend of open houses made this a no-brainer. So, we welcome you to our featured Open House from The Dobbs Team. This home is set apart as it is fairly new and modern sitting on over 1.5 acres. The curb appeal is great as it is architecturally interesting and not a square box. The first thing that you notice is how open the floor plan is and the cathedral ceiling. The kitchen has been recently remodeled and is a sight to behold. Cherry cabinets and quartz countertops give this modern kitchen some pizzazz! The dining room is right off the kitchen and is illuminated with natural daylight from 6 windows. The great room completes this side of the house and it leads onto the deck with its panoramic view. On the first floor is a luxurious master bedroom and master bath suite. They have not one, but two walk in closets. Finishing this side of the house is a large laundry room with ceramic tile floors. The bottom floor houses the three bedrooms along with the family room and entry into the huge attached garage. One unique feature of this garage is the cabinets from the kitchen remodel have been installed here. On this floor you will also find a nice patio for some quiet entertaining. We invite you to come by our open house on April 29th. If you can’t make it, contact Steve Dobbs with The Dobbs Team and he will arrange your own private showing. If you would rather start your search on your own, feel free to use the Advance Search Tools of our Louisville MLS to find other homes for sale. Or, if you know the area desired, search for homes using a map with our Map Search Tools.

550 Watkins Glen Way

2012-04-15T06:34:00-07:00

505 Watkins Glen Way in Taylorsville, KY is our newest listing and a bit of a surprise. Before I went, I looked up the price history to see what they had paid and the features of their home at that time. My clients told me that they had made several changes; they were understating their work. Curb appeal of a home is always important and this one did not disappoint. They have spent $5,000 on landscaping and it shows. They defined their lot lines with evergreens and planted several fruit trees. I can just imagine how the place will look in a few years with some growth on the evergreens and peaches hanging from the trees. As I entered the home, I could see that the homeowners had good taste in decorating and paint colors. I asked if the carpet was new and was told that it is less than a year old. I then turned and looked at the kitchen and was blown away. They have completely remodeled the kitchen with new laminate flooring, light fixtures, granite countertops, and Stainless Steel appliances. We are talking some major bucks here. This house was also unusual as it had 4 large bedrooms and 3 full baths. The walkout basement was finished and quite the retreat. The bedroom in the basement is perfect for the teenager looking for a little privacy from the rest of the family. I don’t think that you will find a nicer home for the money than you will find at 550 Watkins Glen in Taylorsville. If you are looking in the Elk Creek, KY area, you owe it to yourself to take a look. Give Steve Dobbs with The Dobbs Team to set up with your own private showing. If you would like to see how this home compares with other homes for sale in Taylorsville, we have a custom search set up for you. For more information, call Steve Dobbs, REALTOR, at 502-475-3312.

The Dobbs Team first Flip

2012-04-05T15:37:00-07:00

The Dobbs Team has worked with several buyers for investment homes in the Louisville area and we have scored some really good deals for our investors. We had one of our remodeling experts call about a house in Highgate Springs that needed a lot of work. We did a little homework on the Jefferson County PVA site and the Louisville MLS to learn about the neighborhood of Highgate Springs. Jo and I met the owners at the property to check it out. We knew a little history of the property as the current owners bought it in 1965 and lived there for years. They moved away and decided to rent the property. A property management company was hired to look over the affairs of this house. The renter vacated after several years of renting. When the sellers got the keys back, they were shocked at the condition of their home. Many years of neglect had taken its toll. The bright spot was that it was an all brick home, it had a full basement, and it was in Highgate Springs. The negatives were the condition of a home built in 1956. Original windows, furnace, and linoleum flooring had exceeded their useful life. There was carpet over the hardwood floors in the living room soaked with dog urine. The deck was rotten and the back yard overgrown. You get the picture. We spent about 10 minutes looking at the house and made an offer on the house. The sellers wanted a few days to think about our offer and see if anyone else would possibly pay more. They accepted our offer and we closed 3 days later. Jo and I have worked on a few houses in our lifetime, but this is the first that we have purchased strictly as an investment. This is our biggest challenge to date and we are using several people to reach our goals. We will keep you updated on how The Dobbs Team in Louisville KY moves on this. If you have any questions about buying or selling an investment property in Louisville KY, contact the Dobbs Team.

Glenmary Village Condo Just Listed

2012-03-20T06:53:00-07:00

9402 Clubview is a first floor condo off Bardstown Road south of the Gene Snyder Freeway. It is a short drive to downtown Louisville, or even shorter to Mt. Washington, KY. Bates Elementary school is just north of here. The bottom line is this place is close to shopping and work! As you look for a place to hang your hat, you notice that 3 bedroom condominiums are not that common. You find this well-built condo in a great location and see that it even has a Master Suite with a spa tub! And to add to this, the floor plan is open, and the kitchen is large. No more going out to wash your clothes as a separate laundry area is conveniently located next to the kitchen. 9402 Clubview was sold new for $163,250. After a year, the owners moved out taking the kitchen cabinets and appliances with them. The present owners have given the place a facelift and remodeled with new paint throughout. They have installed new cabinets along with brand new Stainless Steel appliances. The rest of the condo and mechanicals have only had a year’s worth of wear and tear. The carpet looks next to new. Do you need immediate possession? Do you need move-in ready? Do you need your home to be affordable at $125,000? Then, this is it! The Dobbs Team would be happy to arrange a private showing for you. Feel free to give Steve Dobbs a call at 502-475-3312 and he can answer more questions or give you a personal tour.

Forest Village Patio Home Living Louisville KY

2012-03-07T12:34:00-07:00

The Dobbs Team has been in Forest Village for about 7 months. When we moved in August, the first thing I noticed was that there was no grass for ME to mow. We were so consumed with moving and getting set up, it seemed a blessing. As fall approached, leaves were starting to drop; yet we left the rakes in the attic along with the typical allergic reaction to oak leaves. As winter approached, I left the snow shovels in the attic, as I knew that the Forest Village Condo Association would take care of the streets and driveways if there were to be a significant snowfall event. We had a little snow this week, but a push broom was adequate to get the area cleared. So now, I am starting to get used to this lack of normal outdoor activity. We still pull our own weeds and maintain our shrubbery, but it is not a big deal. In Forest Village, the association maintains the horticulture in the very front. The individual homeowner can add shrubbery on the side and front nearest the living quarters. They are also responsible for maintaining what they planted. Inside the house, we still maintain and make the normal improvements that we would in a normal single family residence. There is still the toilet to fix, carpet to clean, and walls to paint that we have been used to our whole life. Is Patio Home living for you? Feel free to contact Steve Dobbs at (502) 475-3312 to discuss the pros and cons of condo-style living versus living in a stand-alone house. If interested, Forest Village Patio Homes will give an in depth description and show you Patio Homes for sale.

Dobbs Team attends the Louisville Home, Garden, and Remodel show

2012-03-04T08:36:00-07:00

The Dobbs Team attended the Louisville Home, Garden, and Remodeling Show this weekend. This is an event that has been going on for the last 60 years and is held indoors at the South Wing of the Kentucky Exposition Center. The show is produced by the Louisville Home Builders Association and is a showcase for home improvement possibilities. It seemed there was a large emphasis on outdoor living this year. There were landscaping displays and covers for your existing deck or patio. Then, we found over the top displays of what your back yard outdoor living space could become. Most all of these displays had a fire feature from a regular wood-burning fire pit to one using the convenience of gas. We both agreed that the burning fire in the middle of the water feature would be spectacular at night. We found 3 suppliers that dealt in spray on foam insulation. We learned about the difference in open-cell and closed-cell foam insulation. Just as important as insulation would be your HVAC system. We were surprised at the number of companies offering geothermal options. As real estate agents, we are always urging our clients to be sure and get their biggest bank for the buck. A bathroom re-model is usually on top of the list. The bathroom remodel people were well represented and ranged from refinishing your existing tub to a complete demo and makeover. Also high on the list that helps in resale value of your home is a modern kitchen. There were vendors exhibiting products to make your existing cabinet space more user-friendly and there were cabinet makers with exquisite cabinetry for your dream kitchen. No home show would be complete without the full complement of flooring products. We were expecting to see lots of wood floors and we did. We were not expecting to see granite floors that were made from scrap pieces of granite countertops. This recycling effort was definitely thinking out of the box and was quite attractive. Feel free to comment on what you thought were the highlights of the Louisville Home show, or contact The Dobbs Team and how some of these remodel ideas may add value to your home.

Million dollar luxury home sales in Louisville KY

2012-02-28T11:56:00-07:00

I can feel the housing economy is getting better and I wondered about luxury home sales in excess of 1 million dollars. The Dobbs Team decided a little research was in order. In 2011 there were 21 homes that sold in excess of a million dollars in the 5 county area of Greater Louisville. Excluded were sales with excess farm acreage. Only Jefferson and Oldham counties had properties that met these qualifications. All homes were existing homes with the exception of one that was new construction. The average asking price was $1.72 million and average sales price was $1.43 million with an 81.2% sale to list ratio. Average days on market were 325 days. The averages weren’t near as much fun as pulling out other data. Six of these sales happened in 36 days or less; 4 happened in less than 2 days. I think that this goes to show when you have a nice luxury property that is priced correctly, they still tend to move. Of the 4 sales happening extremely quick, one was a distressed short sale luxury home. Throwing it out of the equation, the 3 homes brought 99% of asking price. I think that this adds further emphasis that luxury houses can also bring top dollar. In general, the longer the house was on the market, the lower the sales price ratio. I looked at the ones that were on the market for over 300 days and found 9. These brought 85% of asking price; which doesn’t seem too bad. But wait, what about the sales price versus the original asking price? This got ugly… Here I found a 59% sales price to initial asking price on these luxury homes. If you have any questions or comments about the luxury home market, give Steve Dobbs a call at 502-475-3312.

4320 Lochridge Pkwy is relisted

2012-02-08T08:46:00-07:00

4320 Lochridge Parkway has been re-listed and with a much lower price. Discussions with the seller were intense and we agreed to $175,000. This is in contrast to the Zillow estimate of $196,400. Zillow website users will see this as a bargain and come running. A lot of listings give a low price per square foot but they include the basement in their figures. 4320 Lochridge is priced at $69.42 per above ground square foot. What a deal! Not only do we have one of the best prices in the neighborhood, the back yard is bisected with Stony Brook Creek. It is like your own nature preserve in the suburbs of Jeffersontown, KY. Call Steve Dobbs with the Dobbs Team for more information or see the 4320 Lochridge Pkwy here.

Inspection Stickers needed?

2012-01-11T11:03:00-07:00

One of the agents in our Louisville KY office had questions about repairs, additions, and other items and wanted to know if inspection stickers were needed. The home in question had a recently built garage with a lot of outlets. There was a new hot water in the house along with some other newer electrical items. Her concern was that there were no inspection stickers and wondered if this was legal. Her second question wondered if a plumber or electrician can inspect and then place an inspection sticker. Her third question concerned the need for an inspection sticker. The home in question was built in 1979 in Jeffersontown, KY and was bank owned. Of course, it was to be purchased “as-is”. There was no way to determine who had made the plumbing and electrical repairs / improvements in the past. The Jeffersontown Code Enforcement informed her that there is no Kentucky or city requirement that a permit sticker has to be on the electrical box. If there are any problems with the electrical box, an electrician can do the repairs. If the electrician is changing something major, he would pull a permit. However, he would only be verifying the work that he had performed. In order to verify everything, the electrician or plumber would need to remove the drywall and inspect all of the wiring and/or plumbing. This could get pretty expensive. Now the thoughts came to home insurance. As calls went to the Kentucky Farm Bureau Insurance, she was informed that an inspection permit is not a requirement for obtaining home insurance. They further stated that you cannot be denied a claim if there was a code violation. All of this information was given to the home buyer to let him make the determination if he wanted to pursue this deal. If you have any questions about this, feel free to contact us. If you are looking for a new home in the Louisville KY market, Steve Dobbs and The Dobbs Team stand ready to assist and give you the best service.

Kentucky Housing Corporation

2012-01-04T12:39:00-07:00

Real Estate agents think that this is a great time to buy with historically low home mortgage rates. Mortgage loan officers would tell you the same thing. However, some people have trouble qualifying for a loan and agents are always looking for alternatives. KY Housing Corporation (KHC) is the state finance agency with very attractive rates. They are currently quoting rates well under 4% on a 30-year fixed rate loan. Rates such as these make it much cheaper to own a home or condo then rent an apartment. They also have programs for down payment and closing cost assistance. There is usually a small premium to use their down payment assistance. KHC works with FHA, VA and RHS loans. They are not known as a sub-prime lender as they do insist on a good credit score and assurance that the borrower will pay back the loan. KHC is able to use the New Issue Bond Program (NIBP) to get these great rates. The U.S. Department of Treasury provides these funds through a federal bond purchase program. It is important to jump on these programs early. In the past, there has been a finite amount of money to loan on some of Kentucky Housing Corps special programs. As always, the early bird gets the worm. Not all mortgage companies work with KHC, so it is best to check around and find a lender that knows how to use the Kentucky Housing program. The Dobbs Team would advise you visit with a lender and see if you qualify for one of KHC’s loan programs. Feel free to give us a call and we will try to point you in the right direction. As always, The Dobbs Team is here to help you find your next home in Louisville, KY and the surrounding counties.

Is the winter a good time to look for a new home in Louisville, KY?

2011-12-16T09:33:00-07:00

There are several ways to look at this. Home Buyers that are relocating do not have much of a choice. For example, the Ford Motor Relocation has brought an influx of workers into the Metro Louisville area from all across the country. Most of these workers will start work by February 6th. Knowing that it often takes 30-45 days to close on their new home purchase, the activity has been brisk as they know that time is of the essence. Some of the new Ford workers have homes to sell first and will obtain temporary housing before making a home purchase here. These relocation purchases will drag on for a while. There are several other reasons that home buyers are looking in the winter. Their lease runs out in the winter time. They don’t want to sign another 12-month rental agreement, so they are motivated by the end of lease terms. The buyers are current homeowners who are now under contract. They need a new home, now!!! People are always looking for a bargain. The Foreclosure or Short Sale house may be just what they need for themselves, or to fix up and flip. Along this same line, investors are looking for opportunities year around. People looking for their “Dream Home”. They keep an eye out for a few key properties. When this home hits the market, our “dreamers” don’t want it to slip away. A myriad of personal reasons. At some point, they are just in the market and The Dobbs Team is there for them. With all of our buyers, we tell them that the sellers are motivated. If they were not motivated, homeowners would not have their house on the market in inclement weather. We know that the home buyers are motivated to be out bundled up for cold weather! If you have any questions about the Louisville KY home market, contact The Dobbs Team.

Should I list my home in the winter?

2011-12-12T15:20:00-07:00

I have conversations with my sellers in the Louisville KY area frequently. At this time of year, the question comes up about whether to leave the house on the market during the winter months, or even to have the listing active during the holidays. I think that it comes down to motivation. How motivated are Mr. and Mrs. Seller? I feel sure that the buyers are serious if they are out in Louisville’s winter weather. So, what is at stake? Inclement weather needs to be addressed. If it snows, and it does snow in Louisville, the sidewalks need to be cleaned. It is not a welcoming sight to the buyer’s eyes having to traipse through the snow to get to the front door. Speaking of snow or rain, there needs to be an absorbent welcome mat inside the front door. If need be, booties could be provided to protect the carpet. The seller does not want to leave their cozy, warm fire; yet the buyers expect to have the house to themselves. Sacrifices will have to be made. If the sellers truly want their home sold; it has to be shown. Refusing showings just insures that it will be on the market even longer. There are fewer properties on the market reducing the competition. Currently this amounts to 20% reduction from normal home inventory. For buyers that need to relocate or purchase immediately, this is a good thing for the sellers. The Dobbs Team thinks that sellers need to rate themselves on a motivation scale from 1-10. Is their home on the market to see what happens, or do they want to see it sold? Contact The Dobbs Team in Louisville KY and let them give you more detail.

Jefferson County Commissioner’s Sale on Liberty Street

2011-12-07T11:51:00-07:00

I had not been to the Jefferson County Commissioner’s sale in a while and had the opportunity to attend with a friend yesterday. Since Louisville and Jefferson County has merged, this is basically the Louisville Kentucky foreclosure sale. My friend had interest in a neighbor’s property and wanted some real estate expertise as he went to make his purchase. I also went to see if much has changed; it hasn’t. The December 6th sale had 142 properties on the agenda. 32 of these, or 22%, were withdrawn before the sale. Either restitution had been made, or the lender had some promise of a short sale occurring and postponed the foreclosure auction. There were 7 properties that actually changed hands. This is only 5% but is on track with all of the other sales that I have attended. Most of the sales were 2/3 of the Jefferson County Commissioner’s appraisal to avoid the right of redemption act. There were a couple of sales below this number which gives the original owner a chance to repurchase their property. Of note was a property the commissioner appraised at $17,000. The bidding was fast and furious with the bidding ending at $43,000. The weird part; the bank was the final bidder. Jewell There was another house that the commissioner appraised at $100,000. The Jefferson County PVA has it valued at $112,900. The bank made an initial bid of $160,125 and this was the only bid. Obviously, there is something that I don’t know. Back to my friend and his attempt to purchase a foreclosed home. The bidding started at 2/3 and he was the only bidder against the bank. There comes a point when the price becomes uncomfortable. The buyer has to factor in the fact that he has not been in the property and has no control until he has paid for it in full. In short, we walked away empty handed. It is more of a sure thing to buy a bank-owned foreclosure once it is on the MLS. You have the ability to at least see the interior of the home and will more than likely do a home inspection. If you want more information about the short sale process, foreclosures and short sales in the Louisville KY area, feel free to contact the Real Estate Experts at The Dobbs Team.

Patio Home Absorption Rate in Louisville KY

2011-11-17T12:43:00-07:00

This morning I had discussion with a client moving from Minnesota with the Ford Relocation to Louisville KY. She asked me about how well Patio Homes in our Louisville Market were moving. I gave her some generalities over the phone and then decided to dig up a few numbers. I know that closed home sales and new listings are up this year over last in the entire Louisville MLS. But, has the absorption rate changed? I used closed home sales in the August through October time frames for my calculations. In Jefferson County, we sold 1765 homes in this 3 month time frame for an average of 588 home sales per month. We currently have 5101 homes in the Louisville MLS inventory. By doing the math, we calculate that we have an 8.67 month supply of homes if no more come on the market. In the group of condos and patio homes, we sold 253 in the same time period or 84 per month. With a supply of 1282, this gives us a 15.2 month supply of condos and patio homes. My client’s real interest was in a patio home. In the Louisville MLS; condos, townhomes, and patio homes are grouped together. I was able to pull out the numbers for patio homes and give a more definite number. There were 38 patio homes sold out of a current inventory of 235 patio homes. This gives us an absorption rate of 12.67 per month. Doing a little more math gives us an 18 month supply of patio homes. This is definitely a buyer’s market! If you have any questions about this, feel free to contact The Dobbs Team in Louisville KY.

Luxury home short sale in Louisville KY

2011-11-10T15:09:00-07:00

The Dobbs Team had the pleasure of bringing a buyer to a short sale in the Locust Creek area of Louisville KY. This home sold for $1.2 million in 2004 and was extremely well appointed. Every luxury item that you could imagine was there and then some more. The Millwork was very extensive and very well done. Interior doors were 8’ tall. As you would expect, the kitchen was a chef’s delight. There was a separate work preparation island with a 3.5 inch butcher block counter. The basement was very well done and included a theater room and killer bar. The listing agent was excellent and did a great job in negotiating with the bank and working with their sellers. They were extremely knowledgeable about the short sale process and actually like the complexity of the challenge that short sales present. We were 80 days from offer to final close. We avoided the Jefferson County Commissioner’s sale with less than 24 hours to go. We have more detailed information about Louisville Distressed Properties on another page. The lender also did a great job. Once we received short sale approval, we had a narrow window to get the loan in place. Our loan officer was able to rise to the challenge and we closed with no hiccups. It took all parties to make the short sale on this luxury home happen. Was it a pain in the butt dealing with this short sale? Yes. Did my client get a great deal? YOU BET!! For more information on how you can get a great deal on a short sale in Louisville KY, feel free to contact the experienced agents at The Dobbs Team.

Louisville KY information

2011-10-10T08:19:00-07:00

View History of Louisville, Kentucky and over 3,000,000 other topics on Qwiki.

1811 Shelbyville Road in Taylorsville KY

2011-10-09T05:38:00-07:00

The Dobbs Team presents our newest home for sale at 1811 Shelbyville Rd is in the Elk Creek area of Spencer County, Kentucky. It is just north of Taylorsville, KY. You will find that it is a short hop to the monster Kroger in Shelbyville, or a short drive to Louisville. As you walk into this home on the gorgeous ceramic foyer tile, you will instantly notice the 11’ cathedral ceiling with Palladian window and that’s only the first sense of the quality you will feel throughout this home! As you look to the left, you will notice it’s a modern, open floor plan that is ideal for entertaining without isolating the guests or the cook The elegant kitchen has been updated with cherry cabinets and granite countertops for a true luxury touch. There is plenty of storage and a large pantry, as well as generous counter space for extensive food preparation – even with multiple cooks. The oversized island is equipped with an overhang, creating an ex tra seating area for informal dining or snacks for the kids. The dining room is just off the kitchen, and features a beautiful 5-pane bow window arrangement offering wonderful light and a panoramic view of the front lawn. This home features a nice open plan, offering a convenient flow from great room to kitchen and out to the deck. The master suite offers a generous walk-in closet and ample space for relaxing. The gorgeous master bath has a separate step-in shower and corner jetted tub along with its own walk in closet. As you would expect, both baths have ceramic tile floors. The laundry room is of note in this home due to its ceramic tile floors and cabinets with ceramic tile counter top. On the lower level, you will find three more spacious bedrooms and a large family room that opens onto the patio. This home has a huge garage, with its own roofline and separate storage space, but attached to the home. For additional storage, the cabinets previously used in the kitchen have been re-purposed in the garage! This home features 2 Heating/Air units for energy savings and added comfort, as well as a 1.5-acre lot for luxurious and private living outdoors! Since this home is in the Elk Creek area, it offers a “country living” feel while being only a short drive to the services of the Louisville or Shelbyville area. Please call today!

254 Lakewood Drive in Mt Washington KY

2011-07-10T08:57:00-07:00

Our newest listing is a patio home and we dare you to compare 254 Lakewood against the competition at Woodlake subdivision in Mt Washington, and the surrounding area. This modern patio home is the best in Woodlake and we know that you will agree. As you enter, you will notice the open floor plan and vaulted ceiling. In the kitchen there are top of the line Stainless Steel appliances with extra touches throughout. Not your average flooring here, or in the baths--This is custom ceramic tile featuring a unique design! A great addition of this patio home would be the loft area that is currently used as an office, but it could be used as a library or a craft room. Leading from the loft are 2 'bonus' areas that could be finished however you like. The area over the garage is currently used for storage, but is framed and ready to finish also. The master bedroom has a spacious feeling due to its vaulted ceiling. The master bath has a whirlpool tub, separate shower, and a dual vanity. An ADT alarm system adds to your security. Thinking ahead, the owners have wired the home to be generator ready. The Florida room has an abundance of windows with natural lighting; and leads to the patio area. The patio features 'stamped' concrete, and a view of the lake that is really nice for relaxing! Come to Woodlake and see what maintenance-free living is all about.

309 Revolutionary Rd in Louisville KY

2011-07-19T14:24:00-07:00

Come see 309 Revolutionary Road it the Yorktown neighborhood. This home has been well maintained and modernized over the years. The first floor has been opened by removing the wall between the living room and family room making it quite spacious. The fireplace mantel was added and dates back to the late 1880's. From the family room, you exit onto a patio under a trellis to enjoy the garden paradise in the backyard. To the left we have a raised garden and there is another more elaborate brick patio to the right. The kitchen and formal dining area have been merged and form a great gathering area. The island is a nice place for eating and gives more workspace for the cook. Upstairs you will find 4 good sized bedrooms including the master. Closet space here is more than adequate and will surprise you. The curb appeal is picture perfect. It is not often that you see a front porch that is 40 foot long with plenty of mature shade, to relax and chat with the neighbors in the front yard. Come see why the present owners have made this home for 20 years. Give The Dobbs Team a call to see this fine home.

Our First Video Tour of 4713 South 6th St in Louisville KY

2011-04-06T09:27:00-07:00

Virtual Tours are certainly the rage now in real estate listings. Most that I see are nothing but a rehash of the pictures already posted set to music. I have used Visual Tour in the past to make a “Virtual Tour” of a home. I used different pictures from the listing that were stitched together to create a panoramic view of the interior and exterior of the property. With encouragement from Lincoln Crum in our Keller Williams office, I used a pocket HD camera and have now finished my first video. Lincoln told me that the first one would be the hardest. I think that is for 2 reasons. The first is just getting started and making the effort. It took a while to develop a technique. The second is editing and publishing. I used iMovie on our iMac to edit and publish ours. No matter how easy the software manufacturers say it is, there is still a learning curve. Anyway, here is our first video of 4713 S. 6th Street in Louisville, KY.

FHA 203K Renovation Loan Success story in Louisville KY

2011-07-04T11:11:00-07:00

Renovation loans can be a challenge in the Louisville KY market as well as many others. We see lots of bank owned homes that need more than a little TLC to get them back in shape. These would include Fannie Mae, Freddie Mac, local banks as well as the big boys, and HUD homes. We recently bought a Fannie Mae Foreclosure that needed a lot of “Tender Loving Care”. Our issues were termite damage, dilapidated carpet, single pane windows, shingles at the end of their life, gutters, siding with holes, outdated kitchen, etc. Did I mention that it needed paint? We knew that the price was right, but we required funds for repairs as well as the regular mortgage. We initially tried to get a HomePath “Renovation” loan as that seemed like a great deal. Our first obstacle was finding a loan officer that could take care of us. In Kentucky, HomePath loans are fairly popular, but we do not have anyone writing HomePath Renovation loans within the state. To get a HomePath Renovation loan required us going to an out of state lender. We found a good loan officer in Ohio and were quickly pre-approved. As we progressed, we found that our down payment would now be 5% putting a squeeze on our cash flow. FHA has always had their regular 203b loans. They now offer a program called the 203k Renovation loan. Within this program, they have the “Streamlined” version as well as the “Standard”. The FHA Streamlined Renovation version is for expenditures of up to $35,000 and works for most people. This enabled us to roll the repairs into the cost of the initial mortgage. The list of what you can receive funding is quite large. You can’t do major remodeling such as removing a load-bearing wall. The FHA Standard Renovation loan is a different animal and something for another blog. Before we made our offer, we contacted a general contractor of our choosing and had him give us an estimate. We then felt comfortable making an offer and Fannie Mae accepted. There was some paperwork involved, but we were able to close within 45 days. Our contractor needed to show proof that he was licensed and insured and that was no big deal. As part of the appraisal process, we needed an “as-is” appraisal and a “finished” appraisal before we could get our loan. The appraiser had our work estimate in hand so he knew what we were looking to accomplish. The finished appraisal was estimated to be $15,000 more than we would have in the house. On the day of closing, our contractor was able to receive 50% up front to cover his initial outlay for materials. We are off to the races!! A couple of weeks have passed and great progress is being made. Our family moves to a newly painted and modernized home in a great neighborhood. I like a story with a good ending. For more details, feel free to contact The Dobbs Team in Louisville KY about this FHA Renovation process.

4320 Lochridge PKWY in Watterson Woods

2011-07-05T06:32:00-07:00

Welcome to 4320 Lochridge Pkwy in Watterson Woods! You will find that this is one of the largest homes in the neighborhood, and has one of the largest lots at .35 acres. As you enter the home through the great room, your eyes move towards the wood burning fireplace and vaulted ceiling. The house then flows into the modern eat-in kitchen with a gas range. The family room is more than abundant and at the present time has a billiard table as the focal point. Being fitness oriented, the sellers have a room dedicated to a home gym. The large master is conveniently located on the first floor. The master bath has room to spare with a double vanity. Three good sized bedrooms are located upstairs and there is a centrally located full bathroom. The end bedroom is special as it features its own half bath. The rear yard is quite unique and consists of 2 parts with Stony Brook Creek separating the two. The front part has a chain link fence and the rear part has a wood fence. A wooden walkway gives you access year around. The large deck looks over the back yard and is a great place to relax and listen to the bubbling creek. You will find plenty of parking here with the conventional garage plus a circular driveway. The home gym and pool table are personal items of the seller. They are available for sale separately.

10500 Fairmount Falls Way Louisville KY

2011-07-01T12:12:00-07:00

We have decided to sell our personal home and move on to the next adventure! We have done a lot of work to this home in Glenmary Estates and it shows! When you enter, you will instantly notice the gleaming hardwoods which cover the ground level, muted but attractive colors as well as upgraded, superior millwork which you will see throughout the rest of the home. The dining room to the right is totally open with elegant columns providing needed support. Ahead a few steps and to your right, you will notice the gorgeous hearth room/kitchen with granite tops, custom maple cabinets, a full-sized stainless hood, premium stainless appliances (including an Advantium oven), island with beverage cooler and beautiful tile backsplashes. No effort or expense was spared here! The hearth room is totally open to the kitchen, and just adjacent to the eat-in area. Hearth and great rooms share a see-though gas fireplace. The great room offers 18-foot ceilings, spectacular views of the wooded rear lawn through a massive wall of windows, and gracious space for entertaining or simply relaxing. There are TWO decks off this area – one accessible through the eat-in area (covered to protect you from the sun or weather), and the other from the hearth room. There is also a “back” staircase to the upper level in the hearth room – this is a unique but very functional design. At the opposite side of the home is the master suite, with vaulted ceilings, bath featuring ceramic flooring, double vanity, stand-up shower and jetted tub. On the second level, you will note three spacious bedrooms with more than adequate closet space. and a HUGE bonus room. (With a closet added, this could be a fourth bedroom on this level.) The basement features 1500 additional feet of meticulously-finished space, offering an arched double-door transom, media room, bedroom, full bath, second family room with triple full-sized windows and views of the woods. The basement also houses a nice workshop (with overhead door if you want to store your golf cart here), and offers crown molding, chair rails, bead-board/wainscoting, storage room and flooring of both ceramic and carpet. Outside, there’s a large patio below the main deck upstairs. In addition to all of this, the home has a totally-renovated half-acre lawn with full irrigation, dual high-efficiency heating/cooling systems, extensive landscaping and a cul-de-sac lot which is wooded in the rear. Everything on this home is done with superior quality. There are literally too many features to mention! Utility bills, lot map, and video of home are available. Owner/Agent. For more details on this home, you can contact Steve Dobbs with Keller Williams Louisville East at The Dobbs Team.

Jefferson County Circuit Court Commissioner Sale in Louisville KY

2011-06-21T13:42:00-07:00

Today, I went to the Jefferson County Circuit Court Master Commissioner’s sale on Liberty Street in Louisville. I had not been in a while and there was a foreclosure house in Glenmary that was on the auction block today. As always, it was a fast paced auction with each house selling in seconds. Once they read the description and ask for an opening bid, it is over very quickly. This is nothing like the old farm auctions where there strive to squeeze every drop from the buyers. You need to be ready to bid and bid quickly. Today’s Louisville commissioner’s sale had 139 properties for sale. Of these, 59 were withdrawn before the sale. It seems to be a growing trend to pull the property at the last minute as the percentage withdrawn is higher than 2 years ago. I attribute this to the short sale process actually working along a few loan modifications (very few). This left 80 properties to go under the hammer in prices ranging from $12,000 to over a million dollars. Now the interesting part, only 3 of these actually sold to someone besides the bank pressing the action. For the remaining 77, there will be more legal fees, maintenance fees, real estate commissions, etc. They will all have been 'cleansed' by the foreclosure process. Most all of the bidding started at 2/3 of the Commissioner’s appraisal done just before the sale. Only 2 properties sold lower than 2/3 as that triggers the right of redemption for the homeowner. If a property sells for less than 2/3 of the appraisal, the homeowner has a year to buy the property back at the sale price plus 10% interest. And, he keeps whatever improvements have been made in this time frame. I thought it was perplexing that several times the bid price approached or exceeded appraised price, but the foreclosing bank kept increasing their bid until they owned it. As I mentioned before, only 3 bidders were successful today. The property in Glenmary Estates that I had interest was appraised by the master commissioner at $290,000. I was the runner up bidder but quit letting the bank have the final bid of $274,000. This was 94% of appraisal. For me, this was a lot of money to invest in a house that I had never been through. I mentioned that the sale goes quickly. From start to finish, the entire sale was over in 60 minutes. This included announcements and the time getting the 3 buyers to the table to make their purchase of the foreclosed property. If you have any questions about the foreclosure process in Louisville KY, contact the The Dobbs Team in Louisville KY. You can also search for Louisville foreclosures or bank owned homes along with Louisville short sale homes on our website.

Radon in Kentucky can be a Problem

2011-06-10T13:56:00-07:00

Radon is a cancer-causing, radioactive gas. In Kentucky, around 42% of our untreated homes will have levels above the EPA action level of 4.0 pico curies per liter of air. In Louisville KY (Jefferson County), the Radon level increases to over 60%. The levels of Radon Gas depend on the type of soil and rock structure beneath our homes. The Radon levels vary across counties and will vary from house to house in the same neighborhood. Fortunately, it is usually easily mitigated by a Radon Professional. Costs will generally run $800-$1,000 and should include a follow up test showing the radon mitigation system is doing its job. In general, the longer the test the better and more accurate the tests will be. On most real estate transactions in Louisville, we receive a 48-hour test. The Dobbs Team prefers a written report with results posted hourly. This gives us the average that we need to form a decision and often a graph to see how wide the results swing. On the seller’s disclosure form, the sellers are asked if there has been any testing for Radon gas. If so, what were the results? If the home inspection results show a high level of Radon gas, the buyers most often will ask the sellers to install a Radon mitigation system. The sellers have the right to refuse; but it is now a Catch-22 situation. Let’s say the deal falls through. Since the sellers now know of a Radon Test being performed, they need to post a new home Seller’s disclosure with the tested results. This is certainly a red flag to the next prospective buyer. The Kentucky Association of Radon Professionals is active in KY and helps homeowners make informed decisions about Radon. They have produced a Consumer Guide to Radon Reduction in KY PDF file which is very informative. It can be very confusing to know what the Radon numbers actually mean. The Kentucky Association of Radon Professionals have made a chart comparing Radon exposure to smoking cigarettes and chest x-rays. In KY, we have a high percentage of cigarette smokers. Radon gas can contribute to lung problems. The EPA has also quite a bit of information about Radon and have made a booklet on the Home Buyer’s and Seller’s Guide to Radon. This is even more unbiased information on the dangers of Radon Gas. The EPA has also produced a booklet on A Citizen’s Guide to Radon. The Dobbs Team thinks that the informed consumer is the best.

576 Erin Circle Mt. Washington, KY

2011-06-08T15:17:00-07:00

Welcome to this modern split ranch in the quiet neighborhood of Wilchar Estates. Near downtown Mt Washington, Wilchar Estates is a relatively new subdivision just off Highway 44 and Old Bardstown Road – close enough for convenience to services, but far enough away to provide a quiet and peaceful environment for your family! This home is a rare find in the area due to its large lot and completely finished walkout basement. Situated on a one-third acre lot with full fencing, you will have outdoor entertainment space as well as privacy in this lovely home. The property is definitely suited for outdoor summer living, with a nice deck off the ground floor and patio area below! You will also appreciate the large storage building to minimize clutter in your garage. Inside, you will find vaulted great room which serves as the centerpiece for this lovely home, flanked by bedrooms on both sides for privacy. The open configuration also gives you ready access to the kitchen, with French doors out to the deck and the green views beyond. Entertaining will be easy, with a nice sized great room, deck, patio and open finished basement. In the Master, you will find vaulted ceilings, a nice master bath, and a huge window for excellent natural light. The Master Bath has a dual vanity, with both full bath tub and a stand-up shower. The walkout basement is fully finished and is an open design. Currently, one corner of the basement is set up as a modern home office. Another section is a family room and the balance is one big play area for the kids. Out the rear door, you will notice the nice concrete patio and a large yard which can be a play area or your own private retreat! You will find that Mount Washington KY has quite a bit to offer due to its proximity to Louisville KY. Contact the Dobbs Team to learn more about this listing or this Mt. Washington KY home showing 25 pictures.

Drastic Price Reduction in Glenmary Estates

2011-05-23T14:52:00-07:00

The seller wants this house sold and had reduced the price $22,000. It was custom built 4 years ago with only the finest materials. Seller has $545,000 invested and has reduced the price to $375,000. This home is in pristine condition as it was only lived in for 10 months. This has the most open floor plan of any house in Louisville at this price point! You can see the complete description of 10610 Fairmount Falls Way in Louisville KY. The kitchen has custom built cabinets with granite countertops. The custom built fireplace is a work of art. The master bath suite was engineered for a woman with lots of clothes. There is no carpet upstaris; it is all hardwood and ceramic tile. Be sure to contact Steve Dobbs with The Dobbs Team for more information on this or other homes in Glenmary.

Louisville KY Absorption Rate

2011-05-20T08:48:00-07:00

In our last blog, we talked about Absorption Rate and what it means. As a Louisville REALTOR, I can feel that we are in a buyer’s market, but what about analyzing this?In the last 60 days, there has been 1104 single family homes closed in Jefferson County, KY. This would give us an absorption rate of 552/month. This equates to a 10.6 month supply of homes if sales continue at this rate and no new homes are put on the market. By anyone’s definition, this is a buyer’s market.Condo sales in the last 60 days have totaled 161 in Jefferson County. We have an Absorption Rate of 80.5 per month. Using our calculator, we come up with an 18.8 month supply. WOW!Focusing on a particular area is important as the old adage of “Real Estate is local” certainly applies. The Highlands has always been a desirable area in Louisville with an eclectic feel. The shops are great and you can bike or walk and save wear and tear on your car. The single family home absorption rate of 61.5/month is compared to condos at 10.5/month. The bottom line is that we have an 8.7 month supply of SFR’s, and a 14.7 month supply of condos. Still a buyer’s market, but much higher Absorption Rate than the entire market in Jefferson County.If you have any questions about absorption rates in other areas or surrounding counties, feel free to contact us.

Absorption Rate in Louisville KY

2011-05-08T06:30:00-07:00

You may have heard about absorption rates in real estate and wondered how this applied to the Greater Louisville KY area. First we need to define Absorption Rate and how Absorption Rate is calculated. Absorption Rate is the rate at which homes are absorbed into the market. It could also be expressed as the number of months or weeks that it will take to clear the current inventory of real estate listings. A low Absorption Rate would indicate that homes are slow to sell and therefore, slowly absorbed into the market. A high Absorption Rate would be the opposite. The bottom line is that we are weighing supply and demand in the current housing market. To calculate the Absorption Rate, we would to determine how many active and pending listings are available in a certain area, price range, etc. We use “pendings” as well, because they have not truly closed or “sold” yet. We then need to know how many completed sales were in the last month (or some other time frame). Now we divide the listings available, by the listings sold last month. In the Fern Creek area, we sold 194 homes in the first 3 months of the year. We have an Absorption Rate of 64.67/month in that time period. Sometimes, Absorption Rate is expressed in months of supply. We had 846 homes to sell at the end of March giving us a 13.1 month supply. (846 homes/64.67 Absorption Rate) This example would be a low Absorption Rate. Keep in mind that this equation does not allow for new homes entering the market. What about Seller’s market versus Buyer’s market? The old rule of thumb is that we have a seller’s market when we have a high Absorption Rate of 1-4 months. A buyer’s market is from a low Absorption Rate of 7 or more months. It is easy to get lost in figures. It is best to refine the market numbers to county, market areas, price ranges, type of homes, etc. In the Louisville KY market, the Absorption Rate in Area 4 may vary widely from Area 8. Condo sales in Louisville versus stand-alone homes will be much different with condos having a much lower Absorption Rate. Another look at absorption would be price specific. A $500,000 listing will be on the market for much longer than a $100,000 listing due to the increased number of potential buyers. If you know of someone that needs to buy or sell a home in the Louisville KY area, feel free to contact us at 502-439-8437 or just send The Dobbs Team a note.

Keller Williams at the Louisville KY Derby Bed Races

2011-05-03T13:36:00-07:00

The three local Keller Williams Real Estate offices combined forces for the annual Kentucky Derby Bed Race on May 2nd. This was the first time that Keller Williams has competed even though the race has been conducted here in Louisville, KY since 1990. This is the first time that the races were held at the KFC Yum! Center. These races are termed a “zany affair” and they certainly fit the description. We started in the “Dormitory” under the Second Street Bridge. At that point, we were able to see our competition up close and enjoy the camaraderie. The competitiveness here is good natured to say the least. The Keller Williams bed had its safety inspection about 4:30. I wonder if this was analogous to a “Home Inspection in Louisville”? The Keller Williams Home bed passed the inspection with no repairs needed. The weather was tough with rain and temps in the mid-50s. At 5:00 we started the procession through the Yum! Center garage and staged just outside the court. At 6:15, we made one pass around the race course as the crowd admired our handiwork and the announcer described our bed. Our Keller Williams bed had a foam house complete with a red roof. The theme this year was about Super Heroes and the SuperFest. The Keller Williams team wore red t-shirts emblazoned with “SUPER REALTORS” and a KW in the center where an “S” would be for Superman. We all wore capes as well. (For all of those not in the know, Red and Black are Keller Williams colors.) We had a great first lap being the first to pass through the “cross”, but things did not go as well in the second lap. Unfortunately, we did get first place in the contest, but we had a lot of fun. We were the only Louisville Real Estate firm in attendance and invite the other REALTORS for next year’s event. We are looking forward to next year and WINNING! The Dobbs Team were pleased to be a part of this community event taking lots of pictures and letting the community know more about Keller Williams Real Estate Offices.

Open House in Glenmary Estates

2011-04-30T07:49:00-07:00

There will be an open house at 10610 Fairmount Falls Way this Sunday, May 1st. This custom built home is located in the prestigious section of Glenmary Estates. Glenmary Estates is a newer section of Glenmary located on the southernmost edge. The Glenmary subdivision is in the southeastern edge of Louisville KY along Bardstown Road. This 1-story ranch is a little unusual because in Glenmary; 1.5-story and 2-story homes seem to dominate. Upon entry, 12 foot ceilings and the very open floor plan give a dramatic open feel. The fireplace, with its ornate decorative wood and granite, makes it a real focal point. As you would expect, the kitchen is modern with Stainless Steel appliances and granite countertops. To give an example of quality, all of the closets including the basement have built in shelving with no wire rack shelves anywhere. It is quite obvious there was no expense spared in the construction. It was lived in for 10 months and remains in pristine condition. For more details, take the Fairmount Falls link. For a different perspective, our Keller Williams website shows information about the area. Come see The Dobbs Team in action this Sunday and see how they market homes.

Ohio River Flood Stage in Louisville KY

2011-04-29T07:07:00-07:00

Louisville KY is now at its third flood stage of the spring season; with this being the most severe. At this point, the Ohio River has appeared to crest at 8 feet above flood stage after being forecast at 10 feet. It has been a major deal to those with homes under water along the Ohio River; a minor inconvenience to most of us that have had to deal with road closings. There have been several events that have been canceled or postponed. The Dobbs Team planned on attending Waterfront Wednesday, sponsored by WFPK and the location was changed twice. The last time, it was sent indoors to Headliners and renamed, “Hell or High Water”. The great Kentucky Derby Steamboat Race has been postponed until late June. Surely the Ohio River will subside by then and the river becomes more navigable. The weather man tells us that it is bound to dry out for the “Greatest Two Minutes in Sports” also known as the Kentucky Derby. I have relocation clients from out of town in Louisville this week trying to find a home to purchase. I reassure them that this is not a regular weather pattern for us. For all of the homeowners under water in a literal sense, we hope the river recedes quickly.

Are Credit Counselors a good thing?

2011-04-28T12:55:00-07:00

I worked with a client last week that was interested in one of our home listings. They informed me that they had some credit issues in the past, but were working through those, and both had good steady jobs. I suggested a couple of loan officers that could get them approved for a home loan and to let me know the amount of the pre-approval. A few days later, my client calls me and reports that he was turned down for the home loan approval. I was expecting to hear that his credit score killed them and he tells me that it is 650. Not being a Louisville loan officer, I am thinking that this is not too bad and there is more to the story, and there was! A few months back, they had hired a “credit counselor”. They would give the counselor XX dollars a month and the counselor would pay their bills in the way that would best bring up their credit score. Now here is the rub, the Louisville, KY mortgage officer looked at the fact that they had hired a credit counselor in a negative light. The reasoning is that the couple must not be responsible if they have to hire someone to pay their bills. To say my client was unhappy, was an understatement. Here is the amazing thing, this couple had cash in the bank and thought that they were doing the best that they could to raise their credit score. Their plan was to pay off the “credit counselor” that day and take over their day to day affairs. Hopefully in 2 or 3 months, they can buy a house in Old Louisville. If you have any questions about your mortgage payments, check out our mortgage calculator at The Dobbs Team in Louisville, KY.

FHA raises their Mortgage Insurance Premium in Louisville KY

2011-04-21T11:09:00-07:00

Home buyers using FHA backed loans in Louisville KY saw a change in the annual mortgage premium payment this week. Up until April 18th, the annual premium was .90% for LTV (Loan To Value) of 95% or higher. It has now increased to 1.15%. FHA loans are still very attractive as they have one of the lowest minimum down payments required asking for only 3.5%. This is a far cry from other lenders looking for 20% down. Let’s use a $200,000 home purchase as an example. We will figure the normal amount of 3.5% down payment ($7,000). At the old rate of .90%, we would pay monthly mortgage insurance of $150 per month. At the newer increased rate of 1.15%, our monthly bill increases to $191 per month. That is $41 per month or nearly $500 per year. That will buy a lot of groceries. For a couple with a borderline debt to income ratio, this increased rate may make them become ineligible for the home of their dreams. To try several “what if” scenarios for Louisville Home loans, try the mortgage calculator and plug in different purchase price amounts. For more on this subject, see your Louisville mortgage broker, or contact us.

HotPads for the iPad in Louisville KY

2011-04-05T09:46:00-07:00

iPads are becoming more and more popular and Real Estate applications are getting more robust. HotPads is one of the latest property search sites with an application for the iPad. The bigger screen size of the iPad versus the iPhone makes it a lot more user friendly. HotPads is pretty neat to use at home, but even more fun on the road when the house that strikes your fancy is right in front of you. You can see the price and interior pictures, right from you car! It works in Louisville KY and that makes it good for my clients. The link will take you to my HotPads profile. Steve Dobbs

Staging results in Louisville KY

2011-04-03T08:27:00-07:00

I recently picked up a listing in Glenmary Estates which is one of the newer sections in the Glenmary Development. This house was vacant and in its history, had been listed with 5 other real estate agents. Among other things, we decided to rent some furniture and have it professionally staged. I had shown the house to a client a couple of months ago; he is a careful shopper and will be making a decision in May. His girlfriend liked it, but he did not care for it. I convinced him to come back for a second look last week and he reluctantly agreed. He was immediately impressed when he opened the door and ended up staying for an hour. The staging helped define area and gave the house a “lived in” look that helped him imagine what it would look like with his furniture. Our open house had people “oohing” and “aahing” equally. Now, let’s have one of them make an offer. You can see the home in question here.

Keller Williams new eEdge software Program

2011-03-31T06:17:00-07:00

The Dobbs Team is associated with Keller Williams, the second largest real estate company in the United States. By the end of 2010, they had over 79,000 associates and over 700 market centers. J.D. Power and Associates rated us highest in overall satisfaction by home buyers among the largest full-service real estate firms for the third year in a row.The real news for KW agents is the roll out of eEdge. This is a new software package that will enable us to manage our leads from our initial contact all the way to the transaction close.What does this mean to our clients? When eEdge fully rolls out, we will be more efficient. We will be able to get signatures on our iPads while we are out in the field. We also will be able to invite the listing agent, sales agent, seller and buyer into the transaction. e-Edge will give us the capability to have paperless transactions.Obviously, Keller Williams is leading the way in technology and the agents in Louisville, KY are up to the challenge.As part of the new service, we also have a new web site. http://www.findahomeinlouisvilleky.com/ Their IDX (Internet Data eXchange) features are a little different than what you see on The Dobbs Team site. On each listing from the Louisville MLS, they show the market trend for that particular zip code. They also show the nearby schools, as well as a mortgage calculator info box. On the left side of the screen, they also show nearby listings.We invite you to check out our new site.

Closing in Mt Washington KY

2011-03-27T06:44:00-07:00

The Dobbs Team closed on a house last week in Mt. Washington, KY. Seems pretty ordinary until you consider what we wanted to accomplish. Our client was a young woman that wanted to leave the apartment life. Important to her was having enough money to cancel her lease on the apartment and move into a single family residential home. We structured the deal to have minimal out of pocket expenses. We applied for a USDA/ Rural Housing Loan requiring no down payment in Bullitt County. Through some careful structuring, we were able to close with no money out of pocket. Her only costs were the home inspection. Feel free to contact us on how we were able to get this done.

Success Story by University of Louisville

2010-10-25T08:40:00-07:00

We just closed on a house that is one of my success stories. A young man was looking at an alternative to rent in Louisville, KY. We searched long and hard and found a 2 bedroom place that had been remodeled for under $50,000. It wasn’t easy finding a house in this shape in this price range. His payments including principal, interest, escrow for taxes, escrow for home insurance, and mortgage insurance are less than half of the rent he was paying. Now he has the joy of home ownership. And saving money. We found our place in the Churchill Downs and University of Louisville area. This works great as he will be attending the engineering college next year.

Condo sales still lag SFR

2010-08-24T08:03:00-07:00

We are still in a buyer's market for Louisville KY. In Jefferson County, KY, we are averaging 97 condos, patio homes and townhome sales per month since the start of 2010. At this writing, we have a 13.5 month supply. Single Family Residential Homes are a little different story. We are selling about 600 homes per month in Jefferson County, KY. This works out to about an 8 month supply. I think that low interest rates are helping us move inventory. People are comparing the rent that they are paying versus what it costs to buy a home now and often find, it makes sense to buy a house. If you have any questions, let us know!

2813 Winterhaven

2010-06-20T08:55:00-07:00

This quad level on Winterhaven was just entered on the MLS. This home is in exceptional shape and has been updated with hardwood floors, carpet, windows, heat pump, etc. One of the brighter points is the back yard. The lot is huge and fenced in and there are no rear neighbors! The location is great with just a short hop to the Watterson Expressway or Hurstbourne Parkway and I-64. The Dobbs Team has made a Visual Tour of this property. Schedule your visit today to 2813 Winterhaven Road as client is very motivated!

Condo Sales in Louisville KY

2010-05-28T07:46:00-07:00

Many of you are probably wondering if condos and patio homes are really selling. I have done a little research to put some numbers in perspective. All the figures that follow are for Jefferson County only. As I write this, there are 5909 listings in Jefferson County; of which 1321 are Condos or Patio Homes. This equates to 22.3% of the total inventory. I then wanted to see what percentage of total sales are Condos/Patio homes. Since the first of the year, there have been 416 condos sold versus 3148 total units sold; or 13.2%. In 2009 the figure was 14.1%. For the years 2006-2008, the figure averaged 15%. This year, we are averaging about 83 Condo or Patio Home sales per month in the Greater Louisville area. If we stay at this pace, we have a little less than a 16 month supply. Single Family Residential sales to date are 2735 units. This works out to 547 per month or a 8.4 month supply. So, to summarize, Condos and Patio Homes are selling, but at a much slower pace.

Norbourne Estates Open House in St Matthews

2010-06-03T13:59:00-07:00

I am holding 4009 Saint Germaine Court open this Sunday from 2-4. Norbourne Estates is an older neighborhood in St Matthews that is just wonderful! The trees are mature, grass green, streets wide, houses well maintained; what else can I say? The house is 72 years old, well built, and move in ready. At $320,000, it is priced to sell. There are several houses on the street that have had major additions to give them more square footage and their price reflects that fact. Click on Norbourne Estates to take you to this house and the other 4 houses for sale here. Come see us on Sunday!

Distressed sales in the Louisville area

2010-05-21T10:20:00-07:00

Just out of curiousity, I wondered how many sales in our MLS are distressed sales. In other words, how many are short sales, foreclosures, etc. My gut told me that as many as half the sales transferred were distressed. Since the first of the year, there have 2913 Realtor (R) sales recorded in Jefferson County alone. Our Louisville MLS does not have a check box for short sales or bank owned. So, I used a few key words in the remarks section and found that 590 were possibly distressed. This is about 20% of all sales. Now admittedly, some agents will use the phrase "not a short sale", and this would have come up in my total. However, I did not add listings that have comments in the agent notes about a short sale not listed in the general remarks, which would add to the total. So, I think that 20-25% of sales through GLAR were distressed sales of some manner. Now, to add to this. None of the FSBO data would be included in the above, since they do not use GLAR contracts. But, how many FSBO sellers are out there when the bank will pay the real estate commission? A huge item is the number of homes that transfer title between the Jefferson County Commissioner and the bank? There are 200 foreclosure sales every 2 weeks in Jefferson County. There will be about 75 each sale date that are withdrawn before the sale, leaving 125 to transfer. In a years time, that is over 3000 distressed property transfers! There have been 11 Commissioner sales so far this year. This amounts to 1300+ sales and property transfers. Adding this to my earlier totals gives me roughly 1900 distressed sales over 4200 total property transfers or 45%.

HAFA is big news

2010-04-30T06:52:00-07:00

The HAFA program is big news now. It stands for Home Affordable Foreclosure Avoidance. Distressed Properties and foreclosures have been in the news for quite a while now. This program streamlines the short sale and Deed in Lieu process. HAFA can give the homeowners up to $3,000 in relocation assistance. The servicer (read bank) will receive $1,500 to comply with this government program. Before, we were concerned with the bank going after the balance owed after the homeowner gave up their home. HAFA ensures that this will not happen. We have been helping distressed homeowners in Louisville, KY and keep current with our CDPE designation and breaking news. There is a short video on YouTube that explains what HAFA means. There is also a very informative website at http://www.cdpe.com/hafa that goes into detail about all aspects of HAFA including even more links from major lenders. Feel free to contact us with any questions.

45 Harwood Open House

2010-04-26T06:45:00-07:00

I held 45 Harwood Road which is in Louisville, KY open yesterday. This was a 57 year old house in the Glenview Manor subdivision just east of the Watterson Expressway. This house was a 3000 square foot ranch that was well maintained. Even though the weather was not the best, the traffic was great with 20 couples coming through. There was no talk of the tax credit that ends this week. These were people that were thinking of moving up (in one case downsizing). It makes me feel positive on the direction of the real estate market.

Indiana State Real Estate Test

2010-04-21T05:54:00-07:00

I passed my Indiana State Real Estate Exam this morning. This is the last step in being dual licensed in Kentucky and Indiana. I am looking forward to increased business.

March MLS numbers

2010-04-16T06:09:00-07:00

We have been seeing weekly increases for quite a while with our weekly reports. You can also get a gut feeling from how busy we have been and how busy the office is. March figures from the Greater Louisville MLS are out. This March we had 992 sales versus 808 last year; a 23% increase. We have seen continuous monthly increases over the previous year since July 2009. In the first 3 months of 2010, we sold 2339 properties versus 1967 a year ago, a 19% increase. Average and median prices are also up over last year. Houses in all price ranges are up over the same period a year ago.

Louisville Area Sales Continue to be Stronger

2010-04-05T10:29:00-07:00

Listings on the Louisville MLS continue their increase over a year ago with 708 properties listed last week versus 606 listed on the Louisville MLS last year for the same time period. Sold houses increased over last year as well. There were 269 sales in a one week period versus 198 in the same time last year. This is about a 35% increase and consistent with what we have been seeing the last few months. We were concerned about sales after April 30th. I am starting to get inquiries about listing their house in 2-3 months, so maybe we can keep things moving this summer!

Home Sales and Listings continue their increase

2010-03-29T08:56:00-07:00

Listings on the Louisville MLS continue their increase over a year ago with 693 properties listed last week versus 640 listed on the Louisville MLS last year for the same time period. Sold houses increased over last year as well. There were 196 sales in a one week period versus 175 in the same time last year. This is about a 12% increase and consistent with what we have been seeing the last few months. One thing to note that is easy to see. There are many more listings than sales in these comparable periods. This is putting more homes on the market and ensuring that this will be a “buyers” market for a while longer. We have been quite busy lately and feel sure that we will stay that way. We are seeing increased sales, but not increased prices.

Spring is coming to Louisville

2010-03-10T06:45:00-07:00

It may be me, but I can tell a change in the season. I am getting more and more calls and visits to the website. At my open house Sunday, attendance was up. For some people, this was the first time that they had been out this winter. And, they are looking at houses because they want to move. As we make small talk, I find that most will qualify for the $6500 tax credit. This is a pleasant surprise for them. I continue to talk about it as I am sure most agents do. It does seem to create a need for urgency. I look for things to get even better in Louisville Real Estate. Let’s hope the surge in buying continues past the tax credit deadline of April 30th. The Louisville Board of Realtors® reports that listings were up 21% the first week of March compared to last year. Sales were up 16% in the comparable period.

Short Sales on the increase in Louisville KY

2010-02-22T08:31:00-07:00

Short Sales are increasing and becoming easier to do. I went to school last year to learn how to do short sales. Since that time, the process is becoming more streamlined and familiar. Banks and consumers alike are moving to the short sale as an alternative to foreclosure. The banks don’t like the expense and risk that foreclosures entail. Homeowners don’t want a foreclosure on their records. There are still 200 properties offered for sale every 2 weeks at the Jefferson County Commissioner’s office. An increasing percentage of properties are withdrawn before the sale. To be withdrawn, the homeowner needed to have worked out something with the bank. They may have worked out a loan modification, brought their status up to current, or have a contract to sell their house. The Treasury Department has guidelines for short sales. The acronym is HAFA which stands for Home Affordable Foreclosure Alternative. The program, as can be expected is complex. Its purpose is to streamline use of short sales. It also provides for $1,500 to help with borrower relocation expenses. This does not take effect until April 5th, 2010. However, many lenders are implementing this earlier. What does this mean for the Louisville Market? Continued pressure as these homes will be sold to somebody for some price.

Louisville Area Sales Trends

2010-02-12T15:49:00-07:00

I went to a seminar last week, on real estate trends in our area. I will try to give you a synopsis of what I learned about the Louisville real estate market. Some of the figures given also included counties surrounding Louisville as they are considered part of the Greater Louisville Area. Depending on the area, the volume of sales was about the same for 2009 as they were for 2008. Looking closer, we find that the last half of 2009 was better than the first half. As we look at sales volume correlated to home sales price, we find that there was an increase in volume in 2009 for houses that cost $250k or less. Houses that cost $250+300k were essentially flat. Houses over 300k were lower than 2008. Houses over 400k were down even more. Average Days on Market (DOM) were about the same for both years at 50 days. Houses valued at over $500k were on the market for an average of 130+ days. The average home price in 2009 was about the same as it was in 2003 and 2004. The peak occurred in the last quarter of 2006 and first quarter of 2007. The average price for the second half of 2009 was better than the first half of 2009. A long term trend is for the second quarter of a year to have higher sales prices than the first quarter. FHA financing is on the increase. What is affecting these trends? The tax incentives are making a difference. The first time home buyer is buying houses under $200k. We see a higher volume at this level and it drags the average price down. The general feeling about the economy is better and the volume of sales is increasing. The market for high end houses is thin. (that may be an understatement) What happens when the tax incentives for first time and move up buyers expire in April? The jury is still out. We would say that the economy will drive the market from that point. For more information, give your favorite real estate agent a call.

Encouraging market

2010-02-02T17:29:00-07:00

The housing market in Louisville, Kentucky and surrounding area still looks encouraging. The listings for the last week of January were 558 compared to 307 for the same period last year. This was an increase of 251 properties or nearly 82%. My hope is that this increase was due to the positive thoughts that people have about that economy and now is the time to sell. I am sure that some of the numbers are foreclosures or short sales. As we talk to people, the mood is definitely better than a year ago. On the sales side, 170 properties closed from January 17-23, 2010 versus 128 a year ago. This was an increase of 42 homes or 33%. These are very positive numbers and reflect the trend that we saw in November and December. We hope that these trends continue for the rest of 2010!

Open House Weather

2010-01-23T15:08:00-07:00

During my open house on Sunday, the weather was crappy. 40 degrees and light rain. Yet, we had several interested buyers. As my colleagues sat around the Keller office on Monday comparing notes about the various open houses that we had held on Sunday, the consensus was that traffic was much higher than expected. And, the buyers were serious. Lets hope things continue.

$6500 move up tax credit

2010-01-14T13:13:00-07:00

Some of the increase in recent real estate sales can be attributed to the general strengthening of the economy and some to the first time home buyer’s credit. The $8,000 has definitely made a difference and brought more buyers into the market. This enabled new people to purchase homes and those owners to move up. Fortunately, this has been extended to April 30, 2010. There has been some publicity, and as Realtors®, we think sales will increase again just before the deadline. One interesting part of this extension is that a new group of homebuyers has also been targeted. People that have lived in their home for 5 consecutive years of the last 8 are now eligible for a tax credit of $6,500. As a Realtor®, I think that everyone knows this. The reality, is that few people do. As word gets out about this tax credit, we think that even more people will have an incentive to move. It is typically thought of as a “move-up” bonus, but it works in either direction. So, not only do we have the $8,000 to offer first time home buyers, we also have the $6,500 credit that affects even more people. Interest rates are still very low. We are not sure how long they will stay at this level.

First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2009

2010-01-05T21:47:00-07:00

New legislation signed on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law: extends deadlines for purchasing and closing on a home authorizes the credit for long-time homeowners buying a replacement principal residence raises the income limitations for homeowners claiming the credit Q. I bought my home in 2009 (early) and filed my 2008 tax return claiming the $7,500 first-time homebuyer credit that has to be repaid. Now the expanded law provides for an $8,000 credit that doesn’t have to be repaid. What do I need to do to get the $8,000 credit that doesn’t have to be paid back? A. You can file an amended return. Q. If I purchase a home in June 2009, and have already filed my 2008 tax return, can I amend my 2008 return or will I have to claim it on my 2009 return? A. You can either file an amended return to claim it on your 2008 return or claim it on your 2009 return. Q. I am in the process of buying a home. Can I claim the first-time homebuyer credit now? That would allow me to use the refund for a down payment. A. No. You may not claim the credit in anticipation of a purchase that has yet to happen. Until you have finalized the purchase of your home, which for most purchasers occurs at the time of the closing, you do not qualify for the credit. IRS news release 2009-27, First-Time Homebuyers Have Several Options to Maximize New Tax Credit, contains details for filing options if the home is purchased after April 15, 2009. Q: When must I pay back the credit for the home I purchased in 2009? A: Generally, there is no requirement to pay back the credit for a principal residence purchased in 2009 or early 2010. The obligation to repay the credit arises only if the home ceases to be your principal residence within 36 months from the date of purchase. The full amount of the credit received becomes due on the return for the year the home ceased being your principal residence. Q. If I claim the first-time homebuyer credit for a purchase in 2009 or early 2010 and stop using the property as my principal residence before the 36 month period expires after I purchase, how is the credit repaid and how long would I have to repay it? A. If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at the time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. Form 5405 and its instructions will be revised for tax year 2009 to include information about repayment of the credit. Q: I’m already a homeowner. If I buy another home after Nov. 6, 2009, to use as my principal residence, do I have to sell my home to qualify for the homebuyer tax credit? A: No. If you meet all of the requirements for the credit, the law does not require you to sell or otherwise dispose of your current principal residence to qualify for a credit of up to $6,500 when you buy a replacement home to use as your principal residence. The requirements are that you must buy, or enter into a binding contract to buy, the replacement principal residence after Nov. 6, 2009, and on or before April 30, 2010, and close on the home by June 30, 2010. Additionally, you must have lived in the same principal residence for any five-consecutive-year period during the eight-year period that ended on the date the replacement home is purchased. For example, if you bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/17/09) Married and Co-Purchasing Homebuyers Q. I am a long-time resident (have owned and used my current home as a principal residence for five consecutive years out of the eight-year period ending on the date of purchase of the new residence) but my spouse has lived there for only three years. Can we qualify for the long-time resident homebuyer credit if we purchase a new principal residence? A. No. Both spouses must have owned and used the same previous principal residence for five consecutive years out of the 8-year period ending on the date of purchase of the new principal residence to qualify for the credit. (12/14/09) Q. I am a long-time resident and current homeowner and my spouse is a first-time homebuyer (has had no ownership interest in a principal residence during the three-year period ending on the date of purchase of a new principal residence) and we purchased a new principal residence. Can we qualify for either the first-time homebuyer credit or the long-time resident homebuyer credit if we purchase a new principal residence? A. No. Both you and your spouse must be first-time homebuyers in order to qualify for the first-time homebuyer tax credit. Since you had an ownership interest in a principal residence during the three-year period ending on the date of purchase, neither you nor your spouse qualifies for the credit. Similarly, both you and your spouse must be long-time homeowners of the same previous principal residence in order to qualify for the long-time resident homebuyer credit. Since your spouse is not a long-time homeowner of your current principal residence, neither of you qualify for the credit. (12/14/09) Q. I am a long-time homeowner of a principal residence and my spouse is a long-time homeowner of a different principal residence. Can we qualify for the long-time resident homebuyer credit if we purchase a new principal residence? A. No. Both spouses must have owned and used the same previous principal residence for five consecutive years out of the eight-year period ending on the date of purchase of the new principal residence to be eligible for the credit. Since you and your spouse owned and used different principal residences, neither of you qualify. (12/14/09) Q. How does the allocation provision work when unmarried taxpayers purchase a home together and both qualify for the first-time homebuyer credit under different tests? A. Co-purchasers who are not married may allocate the credit using a reasonable method. A reasonable method is any method that does not allocate any portion of the credit to a taxpayer who is not eligible for that portion of the credit. The maximum credit for a taxpayer who qualifies under the long-time resident test is $6,500, and the maximum credit for a taxpayer who qualifies under the first-time homebuyer test is $8,000. One example of a reasonable method is to allocate $6,500 to the long-time resident homebuyer and $1,500 to the first-time homebuyer. (12/14/09) Home Construction Q. I plan to build a home and occupy it in 2009 or early 2010. Can I claim the first-time homebuyer credit now and use the funds toward the down payment or other ongoing construction costs? A. No. To qualify for the first time home buyer credit, the residence must be purchased. By statute, a residence which is constructed by the taxpayer is treated as purchased on the date the taxpayer first occupies the residence. (05/06/09) Q. I entered into a written home construction contract with a homebuilder before May 1, 2010, and the contract provides for completion of the home before July 1, 2010. Can I take the credit for the construction costs? A. Your home construction contract qualifies as a binding contract, entered into on or before April 30, 2010, to close on the purchase of a principal residence on or before June 30, 2010. If you occupy the home on or before June 30, 2010, and meet the other requirements, you can take the credit. (12/17/09) Q. I entered into a written home construction contract with a homebuilder before May 1, 2010, and the contract provides for completion of the home before September 1, 2010. Can I take the credit for the construction costs? A. Your home construction contract does not qualify as a binding contract to close on the purchase of a principal residence on or before June 30, 2010. Therefore, you do not qualify for the two-month extension of the deadline for completing the purchase in the case of a binding contract. However, if you occupy the home on or before April 30, 2010, and meet the other requirements, you can take the credit. If you do not occupy the home on or before June 30, 2010, you cannot take the credit. (12/17/09)

First-Time Homebuyer Tax Credit Scenarios

2010-01-05T21:44:00-07:00

The following information is reproduced directly from the IRS.gov website. S1. If a single person (Taxpayer A) qualifies as a first-time homebuyer at the time he/she purchases a home with someone (Taxpayer B) that is not a first-time homebuyer and then later that year they marry each other, is the credit still allowed? A. Eligibility for the first-time homebuyer credit is determined on the date of purchase. If Taxpayer A, a first-time homebuyer, buys a house and then later that year marries Taxpayer B, not a first-time homebuyer, the credit is allowable to Taxpayer A. Taxpayer A may take the maximum credit. S2. Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much? A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A's primary residence. S3. A taxpayer owned her principal residence. Several years ago, she decided to relocate to a rented apartment, but did not sell the former residence. Instead, she rented it out to tenants. Now the taxpayer plans to buy another house and make it her new principal residence. Does she qualify for the first-time homebuyer credit? A. A taxpayer who owned rental property within the past three years is still eligible for the credit. The taxpayer cannot have owned and used a home as his or her principal residence within the last three years. S4. If husband and wife wanted to sell the home that the wife owned when they got married, and the husband had not owned a home within the past three years, could he qualify as a first-time homebuyer for the credit even though the wife would not qualify? A. No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since the wife had ownership interest in a principal residence within the prior three years, neither taxpayer may take the first-time homebuyer credit. Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase. The husband may not take the credit even if he filed on a separate return. S5. Taxpayer purchased a home on April 24, 2008, while she was separated from her husband. Later in the year, they reconciled and were living together at the end of 2008. She has not owned a home since 2004 but he owned one which he sold in 2006. They remained married the entire time. Is the taxpayer eligible for the first-time homebuyer credit? A. No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since the husband had ownership interest in a principal residence within the prior three years, and the taxpayers were legally married, neither taxpayer may take the first-time homebuyer credit. Section 36(c)(1) requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. The wife may not take the credit even if she filed on a separate return. S6. I have been estranged from my spouse for over three years and file married filing separate. I don’t know if my spouse has owned a main home in the last three years, but I have not. If I buy a house in 2009 that otherwise qualifies for the first-time homebuyer credit, can I claim the credit? A. Section 36(c)(1) requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. If your spouse has not owned a main home in the last three years, then you may claim the credit. S7. I am separated from my spouse and considered unmarried, and qualify for the unmarried head of household filing status. My spouse has owned a main home in the last three years, but I have not. If I buy a home on May 1, 2009, that otherwise qualifies, can I claim the first-time homebuyer credit? A. No. Section 36(c)(1) requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. The taxpayer may not take the credit even if filed on a separate return. S8. A qualifying taxpayer bought a home in August 2008 that needed a lot of work before occupying. They finished the renovations and moved in the home in January 2009. Can they claim the $8,000, since they did not occupy the home until 2009? A. No. Taxpayers who purchase an existing home and renovate the property before moving in are eligible for the first-time homebuyer credit based on the date of purchase, not the date of occupancy.

Homebuyer Tax Credit Questions and Answers

2010-01-05T21:29:00-07:00

Updated Nov. 6, 2009, to note new legislation. The new legislation extends and expands the first-time homebuyer credit allowed by previous Acts. The new law: extends deadlines for purchasing and closing on a home authorizes the credit for long-time homeowners buying a replacement principal residence raises the income limitations for homeowners claiming the credit Q. What is the credit? A. The first-time homebuyer credit is a new tax credit included in the Housing and Economic Recovery Act of 2008. For homes purchased in 2008, the credit operates like an interest-free loan because it must be repaid over a 15-year period. The credit was expanded in 2009 for homes purchased in 2009, increasing the amount of the credit and eliminating the requirement to repay the credit, unless the home ceases to be your principal residence within the 36-month period beginning on the purchase date. It was further expanded in late 2009 to extend deadlines and to allow long-time homeowners buying replacement homes and people with higher incomes to qualify for the credit. (11/12/09) Q. How much is the credit? A. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 ($8,000 if you purchased your home in 2009 or early 2010) for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns. The full credit is available for homes costing $75,000 or more ($80,000 in 2009 or early 2010). Long-time homeowners who buy a replacement home after Nov. 6, 2009, or in early 2010 may qualify for a credit of up to $6,500, or $3,250 for a married person filing a separate return. (11/19/09) Q. Which home purchases qualify for the first-time homebuyer credit? A. Any home purchased as your principal residence and located in the United States qualifies. You must buy the home after April 8, 2008, and before May. 1, 2010 (with closing to take place before July 1), to qualify for the credit. For a home that you construct, the purchase date is considered to be the first date you occupy the home. Normally, taxpayers (including spouse, if married) who owned a principal residence at any time during the three years prior to the date of purchase are not eligible for the credit. This means that you can qualify for the credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase. However, a long-time homeowner can also get the credit for a qualifying replacement home purchased after Nov. 6, 2009. To qualify, you must have owned and used the same home as your principal residence for at least five consecutive years of the eight-year period ending on the date you by your new principal residence. If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return. For an eligible purchase in 2009, you can choose to claim the credit on either your 2008 or 2009 income tax return. For an eligible purchase in 2010, you can choose to claim the credit on either your 2009 or 2010 return. (11/19/09) Q. If a taxpayer purchases a mobile home (manufactured home) with land and qualifies for the credit, is the amount of the credit based on the combined cost of the home and land? A. Yes. The first-time homebuyer credit is ten percent of the purchase price of a principal residence. The total purchase price (mobile home and land) is used to determine the amount of the first-time homebuyer credit. Q. Is a taxpayer who purchases a mobile home and places the home on leased land eligible for the first-time homebuyer credit? A. Yes. A mobile home may qualify as a principal residence and it is not necessary that the taxpayer own the land to qualify for the first-time homebuyer credit. Q. Can a taxpayer who purchases a travel trailer qualify for the credit? A. A travel trailer that is affixed to land may qualify as a principal residence. Q. Can an individual who has lived in an RV qualify for the credit? A. For purposes of the first-time homebuyer credit, an RV with a built-in motor is personal property that is not affixed to land and does not qualify as a principal residence. Accordingly, someone who has owned and lived in an RV within the past three years may still qualify as a first-time homebuyer. Q. Can I apply for the credit if I bought a vacation home or rental property? A. No. Vacation homes and rental property do not qualify for this credit. Q. Who is considered to be a first-time homebuyer? A. Taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase are considered first-time homebuyers. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008. In addition, Long-time homeowners who buy a replacement home after Nov. 6, 2009 or in early 2010 can also qualify. Under this rule, you must have owned and used the same home as your principal residence for at least five consecutive years of the eight-year period ending on the date you by your new principal residence. For an eligible taxpayer who, for example, bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/19/09) Q. Can a dependent on someone else’s tax return claim the first time homebuyer credit if they otherwise qualify? A. Different rules apply depending upon whether a dependent buys a home after Nov. 6, 2009, or on or before that date. Dependents are not eligible to claim the credit on any purchase after Nov. 6, 2009. However, a dependent who buys a home on or before Nov. 6, 2009 may qualify for the credit. (11/19/09) Q. Can a minor buy a home and claim the credit? A. Usually, no. However, different rules apply to purchases after Nov. 6, 2009 and those on or before that date. Minors are generally barred from claiming the credit on home purchases after Nov. 6, 2009. To qualify for the credit, a purchaser must be at least 18 years of age on the date of purchase. For a married couple, only one spouse must meet this age requirement. A dependent is not eligible for the credit, regardless of age. For purchases on or before Nov. 6, 2009, the tax law does not bar a minor from buying a home and claiming the credit. However, taxpayers who do not otherwise qualify for the credit do not become eligible for the credit simply by using a minor child’s name. In addition, under state law, children under the age of 18 generally are not bound by any contract they sign and cannot be required to comply with the terms of the contract. Thus, it is extremely unlikely that a seller of a home, or a lender if financing is required, would enter into a bona fide sale of a home to a child. Merely using the child’s name to purchase a home does not qualify the child for the credit if, in substance, the child is not a bona fide purchaser of a home. (11/19/09) Q. When do I have to buy a new home to get the credit? A. The credit is available for eligible home purchases after April 8, 2008. You must enter into a binding contract to buy the home before May 1, 2010 and close before July 1, 2010, in order to obtain the credit. For a home you construct, the purchase date is considered to be the date you first occupy the home. (11/19/09) Q. How do I apply for the credit? A. The credit is claimed on IRS Form 5405, First-Time Homebuyer Credit, and filed with your 2008, 2009 or 2010 federal income tax return. (11/12/09) Q. I submitted an amended 2008 return for the first-time homebuyer credit more than eight weeks ago. How long will it take the IRS to process my return? A. The normal processing time for amended returns is approximately 8-12 weeks. Recent changes to the tax law have resulted and will continue to result in larger than normal volumes of amended returns. This increased volume has increased our processing time to 12-16 weeks. It is not necessary for you to follow-up with the IRS regarding your amended return if you are within these time frames. (11/23/09) Q. Are there income limits? A. Yes. The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on your modified adjusted gross income (MAGI). Different income limits apply to purchases on or before Nov. 6, 2009 and those after that date. For purchases on or before Nov. 6, 2009, for a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000. This means that the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less. For purchases after Nov. 6, 2009, for a married couple filing a joint return, the phase-out range is $225,000 to $245,000. For other taxpayers, the phase-out range is $125,000 to $145,000. This means that the full credit is available for married couples filing a joint return whose MAGI is $225,000 or less and for other taxpayers whose MAGI is $125,000 or less. (11/19/09) Q. Can a taxpayer claim the first-time homebuyer credit after entering into a contract for the purchase of a residence but before closing on the purchase? A. No. Taxpayers cannot claim the credit before there is a completed sale and purchase of the residence. The sale and purchase are generally completed at the time of closing on the purchase. (7/2/09) Q. Can a taxpayer claim the first-time homebuyer credit if the purchase is pursuant to a seller financing arrangement (for example, a contract for deed, installment land sale contract, or long-term land contract), and the seller retains legal title to secure the taxpayer's payment obligations? A. If the taxpayer obtains the "benefits and burdens" of ownership of a residence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title. Factors that indicate that a taxpayer has the benefits and burdens of ownership include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property. (7/2/09) Q. I purchased a home that qualifies for the first-time homebuyer credit. I will be renting two of the bedrooms and reporting the rental income on Schedule E. Will I still qualify for the credit if I use the home as my principal residence? A. Yes, if you meet all first-time homebuyer eligibility requirements. See Form 5405, First-Time Homebuyer Credit, for more details. Q. I purchased a duplex home with two separate dwelling units. I will live in one dwelling and will rent out the other dwelling unit and report the rental income on Schedule E. May I qualify for the first-time homebuyer credit, and what amount do I use for the purchase price to determine the amount of the credit? A. Yes, you may qualify for the credit for the dwelling unit that you use as your principal residence. To determine the amount of your credit, you must allocate the purchase price of the duplex between the two separate dwelling units. You may not use the entire purchase price of the duplex to determine the amount of your credit. Q. If two unmarried people buy a house together, how do they determine how much each may take of the credit? A. IRS Notice 2009-12 provides guidance for allocating the first-time homebuyer credit between taxpayers who are not married. Q. I am a single co-owner of a home. How do I get this credit? A. Depending on the year of purchase, you will claim the credit on your 2008, 2009 or 2010 federal income tax return. (11/19/09) Q. I don’t owe taxes and/or my income is exempt from tax and I do not have a filing requirement. Do I qualify for the credit? A. The credit is fully refundable and, if you qualify as a first-time homebuyer, having tax-exempt income will not preclude eligibility. Although there are maximum income limits for qualifying first-time homebuyers, there are no minimum income criteria. Thus, someone with no taxable income who qualifies as a first-time homebuyer may file for the sole purpose of claiming the credit for a refund. Q. Does the first-time homebuyer credit apply to homes located in the U.S. Territories? A. No. Q. Would I be considered a first time homebuyer if I owned a principal residence outside of the United States within the previous three years? A. Yes. A taxpayer who owned a principal residence outside of the United States within the last three years is not disqualified from taking the credit for a purchase within the United States. Q. If qualified, are homebuyers required to claim the first-time homebuyer credit? A. No. Q. Who cannot take the credit? A. If any of the following describe you, you cannot take the credit, even if you buy a new home: Your income exceeds the phase-out range. You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild. You do not use the home as your principal residence. You are a nonresident alien. (11/19/09) Q. Does previously inheriting a home and living in it automatically disqualify me as a first-time homebuyer if I buy a different home on or before Nov. 6, 2009? A. Yes, an ownership interest in a prior principal residence would bar you from being considered a first-time homebuyer. As long as you owned and used the prior home as your principal residence, you are not a first-time homebuyer. There is no exception for taxpayers who did not buy their prior residences. (11/19/09) Q. If I claim the first-time homebuyer credit in 2009 and stop using the property as my main home before the 36 month period expires after I purchase, how is the credit repaid and how long would I have to repay it? A. If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at the time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. Form 5405 and its instructions will be revised for tax year 2009 to include information about repayment of the credit. (05/06/09) Q. If a person does not actually make the payments on a home that’s their principal residence, but the deed and mortgage documents are in their name, can they be considered a first-time homebuyer? A. Yes. If a taxpayer purchases a home to be used as a principal residence from an unrelated person and has not owned a home within the previous 36 months, the taxpayer is eligible for the first-time homebuyer credit regardless of who makes the mortgage payment. (05/06/09) Q. Do taxpayers affected by Hurricane Katrina or other disasters qualify as first-time homebuyers if their principal residence (i.e. main home) became uninhabitable more than three years ago and they have not formally disposed of the uninhabitable home or purchased or built a new home in the interim? A. Yes. They may be eligible for the first-time homebuyer credit when they purchase a new principal residence. (11/19/09) Reproduced from the IRS Website: http://www.irs.gov/newsroom/article/0,,id=206291,00.html