The RE/MAX Associates Louisville Real Estate Blog

Why you should, or shouldn't buy a foreclosed home

2012-05-17T10:19:00-07:00

Homeowners are able to get great deals on foreclosed homes, but it is a risky process and you should be aware of those risks. There are pros and cons to buying foreclosed homes. To begin with there are several types of properties that are generally known as foreclosures. The first is pre-foreclosed homes which are in danger of becoming foreclosed, but still owned by tyhe home owner. A foreclosure is a property that is sold or repossessed by a creditor or lendor to recover the amount lost. While pre-foreclosures are trying to be sold quickly by the homeowner, foreclosures are usually sold at auction by the bank. Pros of buying a foreclosure Because you may be able to buy a home at great discount, you're winning the deal to begin with. Also if the home is in the pre-foreclosure the homeowner is trying to sell it quickly to avoid going into foreclosure. Because these homes are sold in a hurry, it gives the buyer major advantages. Most banks are often willing to sell at discounts because the longer they hold these properties the more expensive they become in terms of taxes, maintenance, etc. Foreclosures can be found at all price points like small starter homes to gigantic luxary homes, and sometimes only need some minor repairs. With some sweat equity, and some hard work to repair and upgrades a homeowner can turn a distressed home into one with some appreciation and increased value. Cons of buying a foreclosure Since a number foreclosures are sold at auction, you may have some steep competition when bidding on property. You may also have to pay cash that day for the home and may not even get to inspect the house before you buy it. Foreclosures aren't always sold with a discount. Some of the time thepre-foreclosure sellers price them higher than they're worth to try and pay a little more on their mortgage and/or taxes. Banks are looking to recoup as much of the money thats owed on the house anyway. Some lenders don't offer loans for distressed properties. Some foreclosures may need some serious and costly repairs. For example, the previous owner let the house fall into dispair because they couldn't afford to keep the house in good shape. Foreclosures are often vandalized and looted. It isn't absurd to see houses that have mjaor appliances missing or holes in the wall, or other vandalism around the property. Because foreclosures tend to sit empty for a period of time, maintenance issues may arrise. Issues like mold, rodents, water piping, could easily take a home and ruin it. It is important to do your research because some foreclosures have liens attached to them. You might find yourself paying someone else's costly debt on the property when it was never your problem to begin with. Foreclosures are often sold as is and banks won't take the bill to make the needed repairs. At times it is the buyers responsibility to begin the evition process. They have to pay legal fees to get the previous owners out of the house. Lastly, purchasing a home from a lender can be a lengthy and time consumer process that is full of red tape. AND RED TAPE SUCKS!

Refinancing Basic

2012-05-15T10:18:00-07:00

Imagine a world that the only cost when borrowing money was interest. that world would be a lot simpler. There would be no application fees, title insurance premiums or points to consider, and when rates fell you would run out a refinance. Unfortuantly life is not that easy and there are plentiful mortgage products that didn't exist a generation ago. A reduced rate is awesome, but if it locks you in it will cost you $4,000 dollars is it really worth it? If not what is a better rate worth to you? The list of one-times costs are countable and you should have a decent understanding of each one. Title insurance- title companies charge this to gaurentee your title is free of liens encrumbrances. Appraisals- This cost is to have a professional appraiser value your home. Broker Commissions- a broker that helps you find the best rate. Credit application fees, loan organization fees, paperwork processing fees, etc. This next cost is very important, but it is also optional. "Discount points" let you buy down your interest rate to a lower one. A point is normally worth one percent of the loan amount. Certain costs, if you incur, them are ongoing. Premiums for mortgage insurance, if the lender requires it, could increase your monthly payments by a few percentage pointsfor the entire life of the loan. The concept of breaking even defines the science of refinancing. An example is how many months will it take you to earn back those $3,600 in fees if your monthly rate is lowered by $100. The answer is 3 years for all you math savy people. Life would be much simpler if someone just handed you a rate sheet with the bottom line of costs saying $3,600 dollars. But it doesn't work that way, so many costs are percentages based on the amount you intend to borrow. Typically the break even question is expressed like this: what interest rate would justify the refinancing? And the best way to do that is to use a mortgage calculator!

How to Dive into a Swimming Pool Addition

2012-05-14T14:11:00-07:00

If you are considering adding a swimming pool to your property, you should remember what all it entails. it will add value and enhance your lifestyle, but it will also cost you to keep it looking refreshing, and some extra effort when you decide to sell your home. Homebuyers love and hate swimming pools, and the same thing goes for sellers. The pros and cons are many. Swimming pools can be a family oasis during the pool season or a mosquito breeding swamp during the off season. Pools can be a training arena and good work outs for athletes, but can also put little children in danger. Pools will cost you tens of thousands of dollars, and because buyers two way relationship with pools, don't expect to get the maximum return on your investment, especially in areas with harsh winters. If you are thinking about adding a swimming pool, take as much time thinking and planning about it as the contractor will take to build it. Value Factors When talking value, get the opinion of a professional appraiser as to how much value a pool can add to your home. it can be a toss up. If a neighborhood with many pools, adding one can put your home next to the value level of those homes, but in a neighborhood without many pools, adding one can decrease your value because less buyers are interested. The neighborhood also comes into play with the value scale. If your neighborhood has excellent schools, few swimming pools, low crime, and is a popular one for new comers, then a pool will surely enchance your value. It's best to talk to a real estate agent familiar with your neighborhood to determine how homes with pools sell. Also talk with home owners with big and large pools to see how they affect value and salability. Anyone considering installing a pool needs to consider Design Factors. This means once you've reached the point where the blueprint is finsihed, you've handled all the permits, the costs will start to stack up. Pull out the hoses- Use a connection of garded hoses to outline your pool and see the space lost. The hoses allow you to see which shapes and sizes are possible for your pool. Leave each design in place for a few days to see how it would look and feel. Engage the neighbors- While talking to your neighbors about pool values, especially those who put one in after they've moved in, ask them to share their pool experience. Ask about their likes and dislikes, what they would change, how long and disruptive it was to install a pool, and lastly, unexpected costs. You'll also want to inform nearby neighbors that construction will be happening in your back yard. Start a scrapbook- Start a scrapbook of images of pools from magazines, showrooms, online, etc. Collect pool images that you find appealing so you can get a sense of what kind of pool will fit your likes best. After awhile you'll find a common thread of in the type of pools you desire. Make a wish list- Go overboard and don't consider costs. From your images make a list of all the features, designs you want that would create your dream pool. Then budget what you can really afford and whittle down the list to what will actually fit in the given space. Both the value and pre-work design will help quickly get your pool off the drawing boards and into your back yard.

Is Your Mortgage Really a Debt?

2012-05-09T15:50:00-07:00

A lot of people consider a mortgage and debt when they talk about their Louisville's house mortgage. What a mortgage is, is actually a debt with an investment attached to it. Can it really be called a debt when it is an investment as well? When you are making a budget and you need to list all of your debts, your mortgage is listed as one of your debts. And when it comes time to list your investments it isn't added. This is because it is purely our mindset that makes us think of a mortgage as a debt. When looking at your assets, you can look at the glass either half empty or half full. You're mortgage is a heavy load to bear, no doubt. But you can look at it like you're struggling every month to make the payments, or you can look at it like the best investment you'll ever make and try to make extra payments to strengthen your investment. Andrew Carnegie once said, "90% of all millionaires become so through owning real estate." People who are afraid of going into debt are the reason they're still renting. These people are fine putting low-rate money into savings accounts that don't have the same ROI as the housing industry. Real estate may take a few blows here and there, but it always bounces back once you wait out the storm. The bottom line is that real estate is an investment. It's not something that can be put on a credit card like a new pair of shoes. The shoes are a debt because it will depreciate over time. Real estate is a tanglible asset that appreciates over time and can possibly lead to big money down the road.

Is an Auction the Right Move For You?

2012-05-07T10:52:00-07:00

All across the country, houses are being auctioned off thousands at a time. This is because they are distressed properties, bank owned, tax foreclosures, or the homeowner needs to sell quickly. Watching as hpomes receiver multiple bids from cash buyers can make even the most jaded seller wonder- is an auction the right move for me? And the answer is- it depends. Auctions typically suit the sellers who are willing to accept a price far below the market price who are looking to sell fast. As for the sellers who do not need to sell fast, they have many advantages; and here are five reasons some sellers prefer auctions. 1. An auction is an event- it can be marketed easily. 2. Urgency for Buyers- the auction date creates a deadline for buyers to take action. 3. Seller Control- Sellers can set a reserve price and still remain in complete control. 4. Few or No Contingencies- There are hardly any if any at all conditions of an auction sale. 5. Fast Closing- Auction sales are typically closed within 30-45 days. Real estate auctions are very similar to a regular auction, but there are a few key differences. It begins with a homeowners wanting to sell quickly and at a discounted price. Next, the property is analyzed for its market value, which is a standard appraisal. It can also be done using the county tax value, or a competitive market anaylsis. Once the real price has been established, the seller and the auctioneer agree on a price that will attract buyers. Lastly, the seller and the auctioneer agree on the type of auction that will most fit the sellers needs. Here is a list and brief discription of different styles of auctions used to sell real estate. Absolute Auction- This auction is sold to the highest qualified bidder. This means that if only one person who bids $100, gets the property. Auction with Reverse- This auction reserves the right for the seller to decline any or all bids. If a seller sets a reserve price of $200,000 and someone bids for $75,000 they can decline that bid. Ballroom Auction- This auction normally takes place in a meeting room facility where more than one property is pooled together and sold in a group. Bidder's Choice- With the approach the the winning bidder wins the right to choose a property, or properties, from a group of similar items. This is often popular with selling building lots, and condominiums. Caravan Auctions- This involves a series of on-site auctions advertised through a promotional campaign, and the properties are really close together. The seller and auctioneer travel to each property and have bidders follow them. Foreclosure sale- This is when a lender canot collect on a mortgage or loan and has asked a court to allow the sale. this type of sale is a great opportunity for investors to secure property since the lender is trying to recover as much of the loan as possible. Minimum bid auction- this type of auction is when the auctioneer will accept bids at or above the disclosed price. The minimum bid price is always stated in the brochure, in advertisements, and always announced at auctions. Sealed bid- This is a type of secret auction in which bids are submitted and viewed at a different place and time. This is not a true auction in which it allows for competition to out bid the other. THis auction works out best for the seller because it forces bidders to place their best offer on the table.

5 Ways to Sell A Home Faster, for More Money!

2012-04-25T17:05:00-07:00

Wall St. recently asked real estate experts and organizations how sellers can sell their house for the best price within the shortest amount of time. Here's what they had to say. Pay Attention to "Curb Appeal":First impressions last forever, and are critically important. Homes with pleasant exterior and landscapes usually tend to sell better. Make sure the driveway is in good condition, the house is freshly painted, and the lawn is well groomed. Set the Right Price: Real estate agents are trained to sell houses and put them on the market at the right price. They use comparable homes sold within the last 90 days to set a realistic price for the home to be sold. By setting a realistic price in the beginning, sellers are aware that this will prevent them from having to drop the price several times and sit on the market for some time. Talk About Energy Effeciency: Most buyers don't understand the concept of "green homes" but they do understand the word "savings". Agents should highlight any features in their homes such as energy effecient appliances that could save buyers money with utility costs. Give the Home Web Appeal: Photographs do an unbelievable job at givinghomes first impressions. Realtor.com claims that 6,300 photos are viewed every minute on listings posted on its site. You should use at least 12 photos per listing. Make it Move-in Ready: Fix any needed repairs whatever they may be. Even the smallest flaws in a home can distract a buyer, and should be fixed even before the home is put on the market. Some agents recommend sellers get a home inspection before even putting the home on the market which can help sellers be proactive in fixing any problems that could become a road block later on. Once a problem has presented itself, sellers and agents are obligated to fix it.

No More Low Balling

2012-04-23T07:56:00-07:00

Low Balling is the offer that is below 25% of the asking price. It usually hurts to get low balled, but it it happens all the time; and it is the most common complaint on realtors. In today's high-demand and high-cost markets the sellers are firmly in control. It is true that multiple offers on a property are the rule, and not the exception. Part of this problem could be associated with the fact that more homes are coming into the market at priced at fair market value. There is a learning curve taht sellers have had to comprehend, but since the six years since the collapse of the housing market, reality pricing is more the rule than the exception. This quote by Jayne Esposito, a San Francisco realtor, sums up her recent and most realtors recent experiences, "Sure, I've had a few buyers try to lowball and they wouldn't listen, but that didn't work out well for them." Lowballing has been a popular practice by buyers in the past, but in today's 2012 environment lowballing can be counterproductive if you truly want to buy.

What Realtors Do that You Cannot

2012-04-13T07:57:00-07:00

Good piece of advice: Don't try to buy a house without a realtor. It's a smart home-buying advantage. I have a bit if information below as to why it's so helpful to have one working with you. When you are buying a house, it's good to know some things, but not all. Have you heard the expression "a little knowledge is a dangerous thing". It's only dangerous when that little bit of knowledge gives you a false impression that you don't need to be surrouded by professionals. It's vitally important to know what you dont know. In order to buy a home successfully, you need to rely on the expertise, knowledge, and professionalism of expert real estate agents. Realtors know to business like the back of their hand and experience in every step of the buying and selling process. When you see or hear about a property that you're interested in the best thing to do is to call a realtor to make sure some professionalism is put into action. Here is a list of things realtors have that we don't. They have access to every home on the market through Multiple Listing Service, including ones that aren't listed publicly. Inside track of the deals before they even hit the market. The ability to combine your price range with your dream house checklist. Recent knowledge of comparable properties what they've sold for and how long it took. Neighborhood knowledge. Negotiating abilities with sellers on your behalf. The inside scoop from the sellers agents. Expertise to negotiate and close the deal. Legality experience on foreclosures and distressed homes. Muscle to get a deal through the escrow or "under contract" period. they know groups of referrals for inspectors, mortgage brokers, and even tradesmen for renovations. Professional advice if you have buyer's remorse. Also remember that today home purchase agreements can be ten pages or more, and agents will need to take care of all of the paperwork. This doesn't include the federal and state level mandated disclosures, and any documents created by local customs. One mistake on your part could could you thousands, so that's why its vitally important to get the professionalism of a realtor.

What to do with the House After a Divorce

2012-04-11T07:58:00-07:00

Most newly married couples buy a home together, and some marriages unfortuantly fall into a divorce. Then both partners want to continue living in the house, but cannot agree on the terms of who gets to stay. Sometimes they compromise and get a dovrce decree which one partner can sell the house and split the proceeds, or they can buy the other out in a period of time. Often times when on spouse moves out and another stays, the one who stays doesn't end up staying for very long. In one situation the person who stayed ended up refinancing the mortgage. Since the person who stayed refinanced and moved out shortly after, stopped paying the mortgage, they file for bankruptcy. So since the house is in both names at the time of the purchase, does this mean one person will lose the investment in the house. Answer: The good news is only one person refinanced the house in THEIR name only. One possible solution is for you to start making the mortgage payments for your ex-significant other, and let them sign the deed over to you. If you do this, you need to understand what value, if any, the house has left. The last thing you want to do is to take responsibility over a house that is already "underwater". The first step should be to get an appraisal on the house. If your ex-spouse doesn't like this situation, you can probably sue to start making payments. But then again you don't want to spend more than the house is worth. However, the best thing to do is to discuss this situation with your divorce attorney to find out how many options you have and which one is the best for you. They will also tell you how much this process will relatively cost.

Where to Begin with Home Insurance

2012-04-09T10:20:00-07:00

Good news for everyone is that shopping for home insurance has become a much easier task now that shopping can be done online with sites like Insweb.com. Insweb.com offers a free database which gives quotes from up to 8 insurers. They are basically a search engine comparisopn site which gives you quotes compared to another site. Picking out which insurance is right for you and your home can be a cumbersome tasks especially if it is your first time. There are numerous providers out there with countless packages, and it is very difficult to tell which one is the right one for you. There is also an article on the CNN site under the money section which i recommend reading, which discusses the top 'need to knows' about insurance. They also hold some other fabulous articles that pertain to general home ownership. Insurance coverage and requirements usually depend on which state and or country you live in. For example, residents of San Francisco have the option of buying earthquake insurance since that area is very earthquake prone. People who live in the midwest are prone to tornadoes, which in turn makes buying insurance more expensive. Regardless of where you live, it is important to always check out two or four quotes before making a purchase decision. It will save you money and it gives you piece of mind knowing you didn't just select the first insurance plan that came across your path. Goodluck in your search.

Loan Applications Rise 7% for Home Purchases

2012-04-06T08:08:00-07:00

Home purchase mortgage applications last week have risen 7.2 percent. This is the highest level since December 2, 2011 the Mortgage Bankers Association reports. They said 'Applications for to buy a home picked up last week, and are running more than two percent above the leve reported at this time last year,' says MBa'S VP of research and economics. He also said loan application for home buying from conventional loans are ten percent higher than last year. What also increased by ten percent was purchase and refinance applications for government loans. They believe this was caused by borrowers seeking to apply before the scheduled increases in insurance premiums at the start of April. Overall, mortgage applications for purchase and refinancing increased 4.8 percent last week, and applications for refinancing increased 4 percent from the previous week. this increase is the first increase in six weeks of consecutive declines. Let's hope this is the start of a popular long-term trend!

Senate Banking Democrats urge FHFA to Allow More REFIS

2012-04-04T09:28:00-07:00

Recently all twelve Democrats in the Senate Banking Committee pressured the Federal Housing Finance Agency to remove more restrictions to refinancing Fannie Mae and Freddie Mac mortgages. The FHFA eased a few rules last November under a renewed Home Affordable Refinancing Program. It lifted the loan-to-value cap, specific appraisal requirements, up front loan-level price adjustment fees, and removed some representation-and-warranty risk if the borrower refinances with the same lender. Last Friday the lawmakers sent a letter requesting more. They suggested the removal of upfront fees when Fannie and Freddie already have the credit risk. They asked for FHFA to make refinancing easier with buyers who have 20% or more in equity on their house. They also wanted to reduce more rep and warranty risk in order to remove disincentives for servicers to refinance. They explain in their letter that as citizens you all can no onger wait, and as 'elected officials' neither can they. Around 2,700 mortgages with a loan-to-value ration between 105% and 125% received HARP refinancing in December, and nearly half of the 5,100 such loans refinanced in November. More than 20,600 with LTV's between 80% and 125% received HARP refinancing which was also down 31% from the previous month. Meanwhile, mortgage rates sank below 4% last week according to Freddie Mac.

Top Cities for Foreclosure Deals

2012-04-01T18:48:00-07:00

'Impressive' would be a good word to describe the number of distressed and foreclosed homes in years the most recent years. In most towns these foreclosed properties have been drawing investors in to sign a contract. All that is fore sure is that these homes need to sell. Some investors and buyers may feel a slight sting known as guilt that they're taking advantage of sellers, but keep in mind that these homes are already in the bank's posession. These homes aren't individually owned, and buying up these homes can help reinvigorate the market. Nearly a third of today's sales consist of foreclosed homes. Most of these homes should be been put on the market a few years ago, but are just now popping up. Don't feel any guilt, because today any sale is a good sale. According to RealtyTrac.com there are great deals out there. In some towns buyers are able to buy homes at a 50% discount of more over non-distressed properties. They're reporting 'these steep foreclosure discounts are available in a wide range of markets, with a wide range of average priced homes. At the high ends of homes in San Francisco and Bridgeport, Connecticut, where the average price of a foreclosure was more than $300,000-- still 50% below the average price of homes not in foreclosure in the markets.' Some of these eleven markets had amazingly low prices below $100,000, which made affordability rates sky-high. These cities were Saginaw, Michigan; Toledo, Ohio; Memphis, Tennessee; St. Louis, Missouri; and Milwaukee, Wisconsin. The city that lead the way with an average of 68% discount was Trenton, New Jersey, where the foreclosed property was selling for an average of $108, 302. The remaining towns in the 50% discount list were Springfiled, Massachusetts; New Haven, Connecticut; and Atlanta Georgia. Other cities are still seeing major improvements of their sales being attributed to foreclosures or bank-owned properties. Most of these citites are in the state of California, or in the city of Las Vegas. These cities were some of the hardest hit cities when the real estate bubble burst when the subprime mortgage crisis came to its head. What this means is that the opportunity for great deals is ripe in these areas. Across the nation, home prices are still on the decline, but with discounts like these investors can afford for prices to dop some more before they begin seeing profits dwindle. In some areas these homes can be flipped for big profits. The time to buy and invest is now.

Setting the Right Price for Your Home

2012-03-28T15:08:00-07:00

A key element in the marketing plan is setting housing list prices. If your home is priced too low, there isn't much room for benefits; and if it's priced to high, potential buyers won't be interested. It will also sit on the market for quite a while. To find the best asking price ask your agent what the cost of recently sold homes were in your area. You should also use current market trends and evaluate the competition to find a reasonable price for your home. You may find it helpful to talk to your agent about other terms and condition, and what items should be included in the sale of them home. Both of these can make your home more appealing to potential buyers. 1.Location: this is one element you cannot escape. If your house is in a desirable area that is in demand, you will be getting a better price than other houses in other areas. 2. Condition: Potential buyers always favor houses that have constantly been maintained over houses that were neglected. 3. Desirable amenities: It's simple, houses that include popular amenities in the marketplace, it will bring a higher price. 4. Calculate the price per square foot: The average price per square foot shouldn't be the final determinant of the final asking price for your home, but it is a helpful starting point. For unique properties, a formal written appraisal can be useful. Some owners are having trouble finding the right asking prices because of a lack of activity in their area, co-owners disagreeing on prices, and unsure of where to begin. Keep in mind that appraisers consider the location of the home, it's proximity to good schools and other public facilities, the size of the lot, the size and condition of the home itself, and recent sales of comparable properties.

The Golden Rule To Selling Your Posch Palace

2012-03-26T07:55:00-07:00

You've completed all the greatest renovations on your new home by hiring a designer, shifted the Fung Shui till good auras were flowing out from every piece of furniture in the house. Even though you've spent a huge amount of money renovating, it's a given from day one in the luxary buyer's market the buyer will come in and redo everything. The buyer of your lovely mansion will sand the floors restain them, strip the bathroom and redo it, paint a few walls, add a deck, change the cabinets all because it's their taste, not yours. This is the luxary buyers market, and they're going to make their newly bought home fit to their style. So what should you do? The golden rule here is not to look at your posch palace as your maticously designed home, instead it is a commodity. All the effort and money you've put into designing your home is hopefully the thing that will allow you to sell your home quickly and at the right price. It is unlikely that you're home will sell better than the market, so get a good agent, a great CMA, and price your mansion right. In this market, you'll probably get lower than you want, and that's why it's important who will get a good agent who will actually sell the true value of your home instead of testing the market with a price above what other homes are selling for. Just remember your home is now a commodity, and people want it. Be sure to stage it properly and sell it like it's the best house in the world. Also be ready for potential buyers to bring in their cabinet maker to see what possible work could be done during an open house. You love your home now, but you'll love your next one too. One last positive note to keep in mind is that your next home will most likely be selling less than it has in a decade or more.

The Federal Reserve Beige Book

2012-03-23T16:31:00-07:00

To figure out where real estate is going in the next few months, start looking towards the Federal Reserve. Maybe you should focus on the latest pending home sales numbers? Look at both, but the key is this: The Federal Reserve's latest Beige Book Report. This report has economic data from each 12 regional banks, and nine of those 12 had positive data. Despite the bad weather at the beginning of the year, the Federal Reserve found consumer spending and manufacturing output increasing. Both of these factors are good indicators of economic growth, especially consumer spending which accounts for 70% of U.S. economic activity. A seperate report by the Commerce Department stated that consumer spending increased by half of a percent in January, which outpaced the growth for the past four months. What does all this mean? It means consumers are getting their confidence back and spending more money to fuel the economy. For the housing market, the National Association of Realtors claimed that the severe weather that tore parts of the country apart has damaged home shopping, knocking down pending home sales by 7.6 percent. Pending home sales, which are signed contracts that havent yet been closed, are still 12 percent higher than they were this time last year. It's believed that there will be a bounce back in the next few months because buyers will be rushing to sign contracts to qualify for the expiring home purchase tax credits. Home prices across the country are showing hints of improvements. According to the latest Clear Capital Price Index, prices have risen 5% on average for the most recent quarter on a year-over-year basis. What is helping this is continuing favorable financing conditions in the mortgage markets. Mortgage applications have been up 12 percent in the past few months. Goodluck

Real Estate Outlook: Jobs Key to Recovery

2012-03-21T15:07:00-07:00

Having a job is a luxary in today's economy. Their rebound is a huge factor in recovering the housing market. President Obama's proposed jobs legislation includes $15 billion dollars that would go toward fixing up and selling foreclosed homes. These homes would be sold at no profit, or at the price it cost to refurbish them. The unemployment rate remains at 9.1% and even though jobs have been growing, they're not growing fast enough to establish a true recovery. Fewer jobs means less construction, less projects completed, and less money trading hands. The U.S. Commerce Department states that some months are worse than others concerning foreclosed homes. While most declines in housing were seen on the multi-family houses, some months have seen as much as 5%. Builders are hesitant to build houses due to lack of buyers, possible foreclosures. This being the case builders confidence has declinded, but has risen slightly over the past few months, but still at a depressed level. Many consumers are still unable or unwilling to move forward with the process of buying a house. Some places around the country are growing, but we need to get the whole country on board to grow, which means we need everyone to have jobs. The only place where builders are still comfortable is the midwest. Builders have continued to confront the same challenges in accessing construction credit, obtaining accurate appraisal values for new homes, and competing against foreclosed properties that they have seen for awhile. What didn't help builder and consumer confidence was the market disruption caused by S&P downgrade and congressional gridlock on the budget deficit. In order to get this great country back on it's feet, we need our Americans to get off their butts and get job. This is just a small step towards recovery, but it gets businesses moving again and puts money in peoples hands which usually goes right back into the economy. Help your country, help yourself, and help your neighbor by getting a job.

How Does RE/MAX Look vs the Industry?

2012-03-20T12:27:00-07:00

Make 2012 a Record Year with RE/MAX Associates The numbers speak for themselves. We share what works. We seek out new knowledge.We utilize the tools provided by RE/MAX.Do you want to keep more of your money? Call Us to Make 2012 a Record Year!RE/MAX Associates502.425.4200 (Office)Judy Thompson, Broker ~502.338.3128Jude Birch

Moving with Pets

2012-03-19T07:59:00-07:00

Pet owners often face a stressful delimma when moving. They consider them as beloved family members, and want to make the moving process as easy as they can for their furry friends. Our pets are routined animals, unlike humans. Our pets look to us for providing them with nourishment, safety, and affection. It is our responsibility to make sure our pets have a low stress level during the moving process. It's very important to plan ahead when you're loading the moving vans and your house doors are likely to be open. Now wouldn't be a great time to be chasing your dog down the street, or panicking over a lost cat. Ask a friend to be a pet sitter while you're packing up the house. It also eliminates the chance of you tripping over them when going in and out of the house numerous times possibly injuring yourself or them. Also consider a kennel, but if heither of these choices is an option, keep them in fenced in or in the backyard. Because your animals are routine animals, it's a good idea to keep their eating and potty habits at their regular times. Your afternoon walks can act as your stress reliever also. Keep your pets food constant by stocking up on the brand they like before leaving town; you don't want a hunger strike! Go to the vet and make sure your pet is up-to-date on all their vaccinations. Also consider microchipping your pet incase they wander off during the move; if you don't want the microchip then you should update the tags on their collar. often times moving involves driving across states or even the entire country. Ask your vet what they recommend for distance traveling. You'll want to pack a some pet ammenities for the tiring drive. These include food, water bowl, treats, blankets, leashes, travel litters, etc. Once you're at your new home be quick in setting up their 'go to' areas. It might be wise to contain them in a bedroom or bathroom while you unload your belongings. But don't forget to show them attention to reassure your love for them and check on them often. moving is a stressful time for pets so be sure to take the compassionate steps to make it less stressful for them. Help them transition into the new home with ease.

Which Remodeling Efforts Entice Buyers

2012-03-07T10:20:00-07:00

During the past few years most sellers have chosen to stay put in their homes because tey would rather remodel than move. Someday you might want to move, so which remodeling projects help add value to your home and entice buyers? Considering the housing market as it stands today, there are a few areas that are more important than others to remodel. Here are a few areas to consider remodeling to help entice potential buyers. Aging in Place Since tough economic times are upon us through short sales and foreclosures, some families are combining homes to reduce the cost of living and living under a single roof. The National Association of Home Builders has found that 62 percent of builders in a survey were working on home projects that were helping families 'age in place'. These types of remodeling are placing a bedroom at the entry-level of a home, wider doorways that would fit a wheelchair, and accomodations that benefit the elderly like less stairs. These new accomodations were once looked at as unattractive, but since a decent amount of families are trying to age in palce they are now considered valuable. Savvy Kitchen Popular rooms that bring families together are still the kitchens and living rooms. Most families prefer to sit down and spend time together even if it means having less space to prepare a meal. Utility rooms and pantries are becoming more popular while cabinets and shelves are being customized to meet the needs of a family, which can be expensive. Kitchens are becoming more of a cooking space for chefs with open shelving and islands to help prepare food faster while still being able to mingle with guests. Totally Wired Busy workers who usally work from home are finding smart homes to be more appealing. These homes cater to the needs of people who work from home by being able to handle all the high-technology. Another benefit is having space-saving workstations in the home. The norm for many homes today are the ones that offer ceiling-to- floor bookcases and wiring for home offices. Outdoor Living Bringing the outside in has become a popular norm in the past couple years. Making the most of living spaces like the garage and outside areas is definitely a benefit. You should capitalize on expanding your outdoor living space by including areas that offer relaxing, cooking, entertainment, etc. To blend outdoor and indoor living spaces, bring some outside furniture inside. Not all remodels add value to the home, it's crucial to find a balance on which remodels add value to your home.

Should I Accept this Offer?

2012-03-06T12:38:00-07:00

Being a seller in today's market surely has its challenges. When do you know if you should accept or pass on an offer? Is the current offer a low ball offer or simply hesitating over attachment to the home. This is most crucial question to ask yourself. It's time to emotionally detach yourself from all the hard work you've put into your home. You know down to the penny what you've invested in your home, but in today's market housing prices have dipped and it's now time to look at your house in a financial perspective. Ask yourself how long your home has been on the market. If your home is new to the market and have already had multiple requests for showings, accepting the first offer can be risky. The first offer might be lower than what you were hoping for, but you may not have another offer for quite awhile. Are the terms agreeable? Some offers can will be sticklers with moving-out dates, closing cost consessions, but may be giving you the price you've asked for. You will need to have a home for yourself lined up incase the buyer wants you out in two weeks. Be sure to ask your agent about all the factors included in the sale. Another question to ask yourself is if you will lose money on the sale. In the past six years most homes have lost value, plain and simple. So can you afford to sell at the offered price, or will this loss cause you to be too far in debt on your next mortgage? Are you in risk of going into forclosure? If you are in risk of not making your mortgage payments and hurting your credit for the next seven years then you should probably sell on the lower offers. Buyers are few and far between in today's markets. Your agent has some expertise. They can tell you the market activity of your area is like, how long homes usually sit on the market, etc. If you have an offer that you think is too low, ask your agent if they think you'll receive another offer in a short period of time. Today all buyers are looking for a deal. They are aware of the fact that home prices are on the decline and that inventory outweighs demand. With this arsenal they wound your asking price with their offer price. Don't be afraid to fire back a counter offer, because if they're truly serious about your home they'll play the game. In the end, as the seller it is your decision on what deals to accept and reject. If you are considering listing your home soon or if it's already on the market it would be wise to decide your bottom line now. What is the minimum selling price you can afford? Decide what prices you will and won't sell your home for, then when offers come in you'll be ready to start making deals.

The Choices of Natural Flooring

2012-03-02T09:09:00-07:00

Quite a number of important things are going green these days. One of them is a non-toxic flooring choice. Most homeowners are giving up on the formaldehyde drenched fibers of yesterday and moving on to new a better things. The first thing you need to do is to decide which type of flooring works best for you and your home. Whatever you choose make sure you committ to it and go and get it.All natural hardwoods work well with living rooms and bedrooms, but they don't like moiste bathrooms. Time will have a much more visible effect on the wood floor in the bathroom than anyt other room. Tile works well for every room, but it's time consuming. Carpet is also good, but finding a non-toxic carpet can be difficult. The next step is to decide upon a budget. There are options for all price ranges. For instance, going green and wanting carpet doesn't mean you have to give up on the warmth that carpet provides. Traditional carpet can be somewhat cheap, the padding and glues beneath is can be the toxic underliers. The EPA claims that airborne formaldehyde really irritates the upper and lower respiratory systems. 10-20% of the U.S. population, including asthmatics are really allergic to these airborne toxins, and it's not a pleasant experience. Wool carpets are pretty, comfy, and can save you big when it comes to durability and green status. Go online and find a wool carpet store in your community. If you want a wood, bamboo is a truely renewable source. Even though it's not a hardwood, it looks like one, and it's one of the least expensive floors. natural stained hardwoods are another great choice. However, the stains produce fumes into your home for years just like paints do. Look for natural stain options. Hardwood will last for years and will only need little care throughout the years. Lastly, consider the beenfits of tile. Stone tile is unique in the way that it comes right from the earth and onto your floor requiring no chemical treatment. It's user friendly to maintain, and doesn't require any VOC finishes. Green flooring options are out there for the right price, you just have to find them. Goodluck!

Keep Your Energy Bill Low While Selling Your Home

2012-02-29T08:06:00-07:00

keeping energy costs down in the buying and selling process of a home is desirable for both buyers and sellers. Even though there are many energy-efficient options today, there's plenty of energy-suckers. It might surprise you how much extra that nice water fountain in the back yard is costing you per month when you run it 24/7 year round. Depending on the wattage needed and where you live, that nice fountain could be costing you an extra $30 per month. It's not a good feeling when your house is sitting on the market and you're still getting bills. It feels like you're throwing money down the drain. So when the home isn't being used, turn off your water appliances. When you turn off your gas and electric appliances, it isn't enough. These appliances still suck energy even when they're off. Here's a tip, when you are selling your home, show it off like a model home and leave no electrical chords laying out. By unplugging the toaster, phone charger, blender, hair dryer, etc. you will save money on your electric bills and de-clutter your home. Individually these appliances only use up a little bit of energy, but collectively they make a nice dent in the utility bills. It's nice to walk into a home and be able to see the floors and counters. This isn't just good for sellers, it's meant to help all of us. By putting away all the chords we normally see, we conserve a bit more and stop the energy bleed. It's a good diea to get your heating system checked. A buyer's home inspection will reveal issues, and you can start saving on the utilities. When a potential buyer comes around and asks whats the average electric bill for this place, youll be in good place.

5 Negotiation Need-to-Knows

2012-02-27T08:58:00-07:00

Negotiating is like a chess game. It's all about strategic thinking, talking, and asserting yourself about money matters. You've got to figure out what's in the mind of the person across from you and stay one step ahead of them. Some people enjoy negotiating so much they turn into a whole new person when they save a few bucks, and others cringe at the thought of figuring out what's in the minds of the other. It seems like every real estate pundit will now use the current market in their negotiation as a tool to get the edge on you. When it comes to buying and selling your home, there are five need-to-knows that will go a long way to protecting your interest. 1. Work from a foundation of sound information. It's critical that you find as much information as possible to use in your negotiating. You aren't in any position to negotiate unless you have the basic information about the market, what similar homes have sold for, how much above/below they have sold for, and how long do the homes normally stay on the market. Your agent will help you understand these numbers, and will reach out to the offeror's agent about what is important to their party. The offeror's agent isn't obligated to divulge information but often will to complete the transaction. It's super important to know what your own priorities are. You can only assess whether your home sale was successful if the home and the terms of the contract are worth to you. Know how much you will accept and your own priorities before negotiations begin. 2. Approach the Negotiation as a Problem-solving Challenge. Toay's negotiations are more like problem solving considering the needs that must be met of both parties. Negotiations are normally a power struggle between buyer and seller and their bargaining leverage. But another factor that really influences the way a deal goes are the banks. Banks have their own guidelines that must be met for anyhting to follow through. A lot of buyers have thought they got a great deal by getting a bargain basement price on a short sale, only to have the seller's bank condition approval of the deal on a massive increase in the sale price. The opposite is also true. Many deals fall through because the home fails to appraise for the puchase price the buyer has agreed to pay. If the buhyer can't qualify for a high enough mortgage, or the seller can't pay the mortgage balance off, there won't be a deal. Because of these reasons it's important to approach negotiating as problem solving instead of a power struggle. 3. Manage Your Own Mindset. Don't buy a home if you don't love it. It's often rational to hone in on a specific offer price based on how much you like the house, or how much you would hate to lose it. Be aware that she who is the least emotionally attatched to a particular outcome has the greatest bargaining power. The more attatched you are to a home, price, etc. the most likely you are the freak out and throw money at the situation to get your way, which in turn could make you miss important points in the contract and skip over your own needs. Knowing what is and what isn't within each parties control is key in managing your mind set. To avoid emotional exhaustion ask your agent for some help on what items are and aren't negotiable. On the other side it's important to know what items are negotiable. These items can be deposit amounts, length of escrow, seller repairs, and if the property is to be taken in as-in condition. These negotiations can empower you to maximize how compelling your offer is to the other side. 4. Minimize Time Pressures. Many buyers and sellers make offers and counter offers only because they have to be moved out buy a certain date. Because shelter is a basic human need, having to move around without a place to stay can make most of us feel ungrounded. The problem lies in that moving costs and deadlines can cost you thousands of dollars and even make some compromises in terms of the actual property itself. Some compromises that you'll regret down the road. If you are facing a deadline in moving out, you better find a plan B such as finding a rental house that will work for awhile, or a hotel. Any sort of shelter will satisfy your basic human needs. 5. Act & React Quickly- Not Impulsively. Make an offer on the house you KNOW you want. If you receive an offer or counteroffer respond to it. Remember that time is of the essence and that hesitation always leads to lost opporitunities. You can sleep on your decision overnight, but don't slep on it for a week. You don't sleep on it forever because you never know when another buyer will show up and change the dynamics of the buying process, costing you more money and time. This is why it's so important to be clear on the market data, your own budget and your own top and bottom lines from the start, so you are positioned to act quickly, strategically, and intelligently when the circumstances require.

Time to Start Saving for Your New Home

2012-02-24T16:44:00-07:00

It's very normal whe nthe holidays come around to search your couch for loose change and scrape together every dime you can. Every year is a new one where people like you search for any spare change they have to save up for some luxary they want. Some people are better at finding it than others and here's why. The money you're looking for just has to be found. These people set in motion a series of events that start with a decision and it takes off from there. Soon enough after enough decisions are made and momentum is on your side your goal is reached. To begin the process find a large bucket or glass jar. It must be big though! Label it with whatever goal you are saving up for and add your loose change in it every day. This will take time so you must have a high patience level. You also must not get discouraged and break along the way. Now that you have your goal out in the open you have to work every day to reach that goal by finding more money. the best ways to do this is to earn more money or cut back on expenses. You can surely do this with the right attitude and direction. The bucket full of change or glass jar isn't just a container full of change, it symbolizes your goal. It symbolizes you time and effort you are taking to achieve what you want. So break it out and with time you'll have some money to put towards your future home.

Carbon Monoxide Alarms are a Must Have

2012-02-22T11:03:00-07:00

It is a law that every house must have a carbon monoxide detector. In the United States over 1,500 people annually are killed from carbon monoxide poisoning. This significantly high number could be prevented. Everyone wants to keep their loved ones safe, so make sure there is a carbon monoxide detector in each sleeping area in the house. This law is a relatively newer one so let me clarify. If you have a three bedroom house with the masterbedroom on the first floor, you will need a detector on the main floor. If you have the children's bedrooms or guest bedrooms on the second floor, one needs to be up there as well. Lastly if there's an entertainment center in the basement with a cosy couch, there should be one in the basement too. Visit a local hardware store and choose which type of carbon monoxide detector you like most. Here is a helpful Youtube video, but because the design of this website is crap I cannot copy and paste anything in this space so I'll spell it out for you. Youtube>Where to install Carbon Monoxide Detectors by Sacramento Appraiser. Be safe everyone!

Be a Staging Star

2012-02-20T10:45:00-07:00

It's important to set your home as the prime example of what a selling house is supposed to be. You don't have to wait for a TV crew to come help you make your home into a new one, you can do it yourself with these tips. 1. Remove the Clutter- You need to reduce the clutter in your home to let the buyer's eyes move freely around your home. Clutter won;t allow them to see the true space your home has to offer. Their eyes will be filled with the clutter and dust on your fireplace of the living room. 2. Organize- Once the clutter is gone, it's time to organize everything you've left behind. Built-in storage units are a great way to organize everything you decided to keep. Invest in a few plastic tubs to keep all your belongings in so they aren't laying around in plain sight. It also helps to label them. 3. Clean- It's best to have your home looking like it is ready to be moved in when they buyers are ready to seal the deal. Your home needs to look and smell clean. Mop, vacuum, scrub the baseboards, and clean every surface. This is a god time to hire a cleaning service. 4. Refresh the Paint- Walls turn dingy with time, so put on a new coat to freshen the room a little. 5. Room Appropriate- Make sure when buyers are coming in to see your home they see exactly what they were expecting to see. If your house says 3 bedrooms, make sure it's not just 2 bedrooms and an office, or a craft room. 6. Create Ambiance- Ambiance is the way a home makes you feel. Some homes require a specific lighting to give a good vibe, others needs a homey and warm atmosphere. To make a home appeal to buyers you should buy a few vanilla candles, light the fireplace, get a area rugs, and bake a few cookies. 7. Staging Outdoors- Don't forget about the outdoor rooms, because buyers are placing more emphasis on the great outdoors. The way to do this is buy some simple outdoor furniture, pillows, and plants. 8. Leave No Closet Unturned- Buyers will open your closets to see the storage space. Don't store all your clutter in them, instead sort them buy color coding clothes and storing away small things. if you can afford it invest in a built-in stoage unit. 9. First Impressions- it is uber important to set the tone when a buyer looks at your house. This means set the front of your home as a prime example as to what is to come. Front doors should have a fresh coat of paint, yards should be freshly groomed, and a welcome mat or flowers are a great finishing touch. 10. New Eyes- One of the most important tips for staging your home is seeing it through fresh eyes. The way we see a new home isn't the way buyers see them. See your home through the eyes of a new buyer, and be honest with yourself. Staging your home is crucial in getting it sold. Doing these little jobs can sell a a house and inspire buyers to let it become whatever they want it to be. Give your house some care before you sell it. You and your house will surely appreciate it.

Louisville Has Plenty to Offer with Healthy Buisness Climate

2012-02-15T17:58:00-07:00

Moving a company or manufacturing plan to a different city is a major decision. The executives weigh a numerous amount of pros and cons before making an executive decision. They consider state tax codes, amount of skilled and non-skilled labor, proximity to strategic partners, and geographic location. Louisville compares rather decently to other cities for companies choosing Louisville as their headquarters. The talent base in states like New York, California, and Massachusetts have been enough for tech companies to justify those states' anti-corporate tax codes. The good news is the balance has been shifting to smaller cities lately. The tax foundation has published the tax climate index for 2012 and Kentucky ranks 22nd with an index of 5.20. The higher the index score the more favorable tax system. Indiana comes in at 11th with a score of 5.99, while Tennessee was ranked 14th and a score of 5.62. Wyoming, South Dakota, and Nevada came in the top three respectively, while California, New York, and New Jersey came in last. Coming in 22nd is pretty good even when there is room for improvement. It's better than half!! . The cost of living is also a major factor in a corporation's cost structure. They must consider cost of goods, salaries, energy costs, real estate, etc. All of these factors are weighed by decision makers. Louisville real estate matches up rather nicely to a similar city such as Charlotte, North Carolina. Louisville's average listing price is $206,000 while Charlotte's is $265,500. The average price per square foot is $94 in Louisville and $175 in Charlotte. The most impressive factor is the average number of sales. Louisville is 962, much greater than Charlottes 752. Louisvillians pay less for their homes, get more house for their money, and have a higher sale activity. If a corporation moving from a city like Charlotte to Louisville, they would experience a more business-friendly tax situation, save more money on employee salaries due to the cost of living, all while those employees get more purchasing power.

The Selling Power of a Simple Closet

2012-02-12T23:24:00-07:00

Closets are often times overlooked. They seem like an unimportant room, but actually closets are significant. Every family needs storage for clothes, food, cleaning supplies, and old personal items. But a closet can be useful and a real selling item in a house. The first thing you want to do with a closet is to get rid of all the clutter in it. Throw away the items you havent used or even seen in the past three years. Ready buyers will be turned off when they see what junk you have stored in there, so as a general rule of thumb, if you havent used it in the past three years just get rid of it. Sell it in a yard sale, donate it, or gifting it to a friend. You'll forget about those items rather quickly and your closet will thank you later. Next you want to organize your closet. Color code or group similar items. Store away seasonal clothes, put shoe boxes in one corner and jackets in the other. Tame your shoes with shoe racks beacuse you always want to see the floor of your closet. Use the same method with your kitchen pantry and bedroom closets. Every closet needs shelving. Go to the inexpensive route if you must, but get some shelves and mount them on the wall. It provides much better organization. If your budget allows, custom built-in units can impress your potential buyer and set you apart from the rest of the houses. Walk-in closets are huge selling points in a home, so you should maximize space to make them look even bigger and better. The main key with closets is to organize them by keeping them nice and tidy so buyers can see their true size. Buyers will become turned off if they see your clutter, so instead inspire them with a spacious closet.

Kitchens Sell A House

2012-02-09T15:42:00-07:00

Kitchens are the hearts of homes, and this holds true across the country. There's a lot of truth in the saying 'the stomach is the way to the heart', because the kitchen is where most time is spent as a family. It's the room everyone wakes up in in the morning, where everyone discusses their days over a snack, and where family meals are made. Kitchens are the focal piece of many family rooms, and are integral to entertaining in today's age of open floor plans. This is what makes a kitchen such an important room in the buying and selling process. Buyers want up-to-date kitchens because it's the one room owners see daily and their guests see when they visit. It's considered to be the showcase of the home. The downside of kitchens is that they are one of the most expensive rooms to renovate. They require the most labor and time effort when renovating. You cannot simply just hand a new lamp and call it complicated. Kitchens require new tile, counters, flooring, cabinets, and sometimes light fixtures. Because of today's economy most buyers don't want to spend the money on renovating a kitchen and want one that is ready to use the day they move in. When buyers are looking for up-to-date kitchens a lot of it depends on the price range your home is in. The main thing to remember when selling your house is to not over price yourself out of the market. If homes have sold in your neighborhood for $100,000 with an average kitchen, then you shouldn't renovate your kitchen to the top of the line counters. It will be more than difficult to find a buyer. It's best to scout the competition by going to open houses in your area and look at what their kitchens look like. Do these homes have new solid wood cabinets? Do they have new granite counters in today's 'hip' color? If the answer is yes, then you may want to update your kitchen to put yourself back in the market. If you are in a higher end neighborhood you should be thinking high end. Your aged home may be a good one, but a buyer will come in and see all the old kitchen appliances and become overwhelmed with the potential cost of replacing everything. If you don't have time to make the adjustments yourself, you will have to make concessions about the price. Don't get overwhelmed though, maybe all you need is a few minor changes. Maybe change the paint color to a warm, nuetral tone. Update your appliances, get rid of the clutter, paint your cabinets, change the pulls, or get a new counter top for a bargain, and it's just about done. If you do it yourself you will be saving yourself possibly a few thousand dollars. Just remember to do some research to find out what you need to do to update your kitchen to be a contender in the market. Just remember, kitchens sell houses.

Top 3 Myths about Louisville Real Estate Agents

2012-02-06T10:50:00-07:00

Myth 1: Louisville real estate agents make a ton of money. Even though this myth is a widely held opinion, it isn't true. The top performing 5% of agents make 1/3 of all the revenue, while the top 10% make 54.2%. While the average gross income for a Louisville agent in 2011 was $27,364 the mdian income was just below $13,000. Just because a handful of agents are make pretty decent money doesn't mean it's the norm for the entire industry. Keep in mind most agents are only part time. Myth 2: Agents must do everything their clients ask. An agent is defined as a business representative. A realtor is a licensed agent who adopts a higher level of service through the Realtor's Code of Ethics. The agent is supposed to protect and promote their clients best interests, and here are three kinds of requests that are not supposed to be asked of by a client. Any unlawful request, such as the Fair Housing Statutes Any legal requests, but is'nt in the clients best interest. Agent's training and experience gives them the credentials to know the difference. Any lawful request that is within the legal limits, but is beyond reasonable service. Just because the client has Wednesday off doesnt mean you should show them 65 houses in one day. Common sense is the usual winner here. Agents want to have a good experience with their clients so they are referred to friends, but if the client's requests jeapordize the agent's license there will be problems. This experience is suppose to benefit both parties, and maybe even construct a freindship. Myth 3: Agents get referral dollars from lenders, appraisers, home inspectors, etc. By law this myth isn't true. By law the only referral fee an agent can receive money from is their own broker, and that broker is only allowed to get a referral fee from another broker. How this works: Agent Q helped the Smith family buy a home several years ago, and now the Smith family is moving to Utah. Now Agent Q is trying to find another Agent in Utah that best fits the Smith family. Agent Q finally finds Agent U after several interviews and the broker of Agent U must pay a referral fee to the broker of Agent Q. Word of mouth referrals are the best ways to find a good agent you can trust. Don't take any short cuts to make/save a few extra dollars, it won't be worth it if you get caught.

Pending Home Sales Decline

2012-02-03T10:57:00-07:00

Housing has taken another hit recently with the National Association of Realtors latest pending home sales index report claims contract signings have fallen 4.6%. The good part? The rate is still 6.4% above from last years report. According to Lawrence Yun, the NAR chief economist, the housing marketing is being excessively constrained. It's a combination of weak consumer confidence and and continuing tight lending criteria has held back home buyers, even though the private sector has added almost 2 million new jobs in the past year. He also stated America's monetary policy is confusing and contradictory, because America's best financial capacity and best credit scores pay the highest mortgage interest rates. The Federal Reserve has been trying to lower mortgage rates, but more consumers are still taking out huge loans that have the highest interest rates.In order to fix this, Yun says the higher loan limits must be reinstated. The largest decline was seen in the midwest, but our region is still 12.3% higher than last year. The smallest decline was in the West where rates declined 2.1%. Reduced access to credit and ailing jobs market is continuing the put a strain on the housing market.

Decorating on a Dime

2012-02-01T19:06:00-07:00

Having a tight budget doesn't mean you can't buy nice things and be restricted to cheap furnite. You just need to know where to shop. The best way to get great deals is to find the sales. Retail businesses want you business these days, and they offer one-day sales, weekly clearance, and many offer coupons offered online. All it takes is a little research and you can find where the best deals are. Since you will be decorating on a budget, you will have to compromise on which items you buy. So the $500 flat screen TV at Best Buy will have to wait. Instead try H.H. Gregg, or Wal-Mart, they will have something similar at a cheaper price, but not the exact same TV you originally wanted. Garage, yard, and estate sales are also good spots to find good decorations. They fit well in someone else's house, so they may fit well in yours. You may find some real winning prize pieces there such as antiques and handmade pieces. Or you may find nothing, but don't ever pass up a good sale if you are looking for good deals. It's important not to get sidetracked and buy furniture pieces that don't fit your style. You will end up with more clutter than you planned. If you're really struggling tis time for plan B. Your friends probably have some cool items they are looking to get rid of, so set up a meeting with them and try to do some trading. You could also reuse your items. Go into your storage space and find some old items and be creative. See what they could serve, and where they can go and make a new statement. Also when you're strapped, don't be affraid to do-it-yourself. Most local home improvement stores offer classes and brochures on how to tile, texture paint, and upgrade other areas of your home. You can find other online tutorials on how to build furniture, shelving, and other household items. have confidence in your abilities, and save some money. You can have a great house with awesome room inside with some smart saving.

Six Helpful Mobile Apps for House Hunters

2012-01-30T10:32:00-07:00

1. Genius Scan What it does: This is a document scanner in your pocket. This allows you to take a picture of a document and email it to anyone in PDF or JPEG format. Why it's useful: Most real estate agents now use digital document signature software, which allows you to sign your name with one click. The faxing part is now outdated and is used on a device that you hold in your pocket. However, some agents are old school as well and do not accept this method of signatures. 2. Dictionary of Real Estate Terms. What it does: This app allows you to look up the annoying real estate jargon into regular English at any time you want. The dictionary includes over 3000 real estate terms, charts and graphs. Your searches can be saved and emailed to friends without the use if the internet, which is helpful when you are inspecting a home without great WiFi. Why it's useful: You will feel much more comfortable knowing what all these confusing terms mean in the process of your house hunt. 3. House Hunter What it does: This app helps house hunters organize and prioritize the homes you've seen. This app also helps you evaluate home homes you've seen by placing a scorecard inside the app. This scorecard weighs features against what you've identified as requirements and priorities you listed as most important. It includes a mortgage calculator, photo storage, and allows you to share you concern with your agent. Why it's useful: When you're looking at five houses they will probably blend together. With this app you can take pictures and weigh the priorities that are most important to you. 4. SpringPad What it does: This app helps you remember every single detail about a house you planned on remembering. You can: Scan barcodes of home furniture and appliances you plan on buying after you move in. Save ideas, addresses, online clippings from design and new sites, and to do lists from your mortgage broker. Set reminders and share your notes with you agent, and even get email alerts with the special appliances you want goes on sale. Why it's useful: You can now organize countless amounts of information in your adventure to buy a house and access it wherever you are. 5. ColorSnap What it does: Now you can take a picture of anything you want and discover the corresponsing Sherin-Williams paint color. Why it's useful: If you see a wall color you like you can simply take a picture of it and replicate the color desired. 6. Karl's Mortgage Calculator What it does: This app calculates your mortgage payments using the principal loan amount, interest and term. This app also gives a more precise idea of your monthly payments that normal calculators typically leave out. Normal calculators will leave out homeowner's dues and insurance, property taxes, and mortgage insurance. You will also be able to see the savings you could earn and how early you can pay off the mortgage. Why it's useful: If you have a mortgage calculator, you can quickly calculate how a given increase in your offer price will change your monthly payments.

Freddie Mac Means What for Louisville?

2012-01-27T12:46:00-07:00

Last August Freddie Mac issued its press release on the Economic & Housing Market Outlook. The outlook highlights: Employment has risen 117,000, which is the best it has been since April 2011. The unemployment rate decreased a tenth to 9.1%. In the first half of 2011, economic growth was figured to be about 0.8%at an annual rate, which is still too weak to create jobs to stay up with the growth of the growing labor force. Comparable to the first quarter of 2008, borrowers are paying around $130 billion less in mortgage interest today. The interest rates on 15-year fox-rate loans are always a good idea for buyers considering refinancing. It reached 3.5% in early August assuring the refinance boom continues. Freddie Mac House Price Index for the U.S. shows that prices are down 25% on average, as of June 2011 compared with its peak in 2006. They predict a reasonable time frame in the future where interest rates will stay their current range. While home values have dropped 25% in the past 5 years, Louisville has actually gained 1.5%. It's encouraging to know that employment has risen, but it needs to continue to do so along with the consumer confidence for the market to really have a good rebound. What is good for the country is good for Louisville, but on a smaller scale. Let the good news roll.

Top Seven Home Designs for 2012

2012-01-25T10:52:00-07:00

In the middle of the muck of the housing market are home design trends rising for 2012. Let's take a look at the top seven of them. 1. Home Size is Decreasing. Louisville is seeing less homes being built, and the ones that are being built are smaller in square feet on average. Families are choosing to build smaller, more effecient homes. This trend began in 2007, and the total square footage has been decreasing every year. It looks like it will continue to decrease through 2012. 2. Green Building Components. Most Americans are valuing green building materials more and more each month. This trend will not have an end in the future. A related concept is utilizing repurposed materials (recycling). So designers are finding these old recycables and reusing them in homes, which some actually do look pretty nice. 3. Reducing Home Maintenance. As we get older we won't want to keep up with more and more maintenance. Maintenance-free living is the preferred path for most home owners, but it is inevitable. However, maintenance-free living will be a major factor for homes design. Using composite building materials instead of wood reduces the need for a painter to paint the walls. Vinyl siding improves exterior of the home for the long run. 4. Flexible, Accessible Layouts. Rooms with multiple room options give home owners flexibility in choosing which room they want to serve what purpose. Larger kitchens that can hold a family dinner are replacing traditional dining rooms. Accessibility is also a new home design trend that is catching on fairly fast. People are living longer in this time period. So you will see wider door frames, lower sinks, more wheelchair ramps, and more grab bars the bathroom. Single story homes will fetch a higher price than multi-level homes (per sq. ft.) and more interested buyers due to the accessibility factor. 5. Bringing the Outside In. Since new homes being built are generally smaller (trend 1) there is a large urger to bring much of the outdoors inside. Architects and designers are working hard to maximize the indoor space, while trying to bring the outside in by building bigger windows in unfamiliar places. 6. Smart Storage Solutions. every family has a need for storage despite the home sizes shrinking. Large closets are critical, but deep storage space is a definite plus. Home owners really value extra storage spaces for today's style of living. 7. Long-term Living. The average family moves every 6.5 years. Ten years ago that number was higher, but has been decreasing with time. As the economy dipped recently, it is expected that number will level off and potentially rise again while families consider their home as more of an investment.

Which Remodeling Projects Pay Off

2012-01-25T07:08:00-07:00

Cost vs. Value: Which Remodeling Project Has Most Return in 2012? { Data shown from Remodeling Magazine, see link below to connect to their site & view all projects ROI } Based on different regions of the United States, some remodeling projects add more value than others. In our region, East South Central & in the city of Louisville, two items were shown to increase the amount of money re-couped when remodeled. Take a guess.....Major Kitchen Remodel? Master Suite Addition? Basement Remodel? Bathroom Addition? None of those! These two items would surprise a Realtor as the ONLY two remodeling projects to increase the amount of return for 2011 & 2012: 1.Finishing off an attic bedroom in a midranged home 2.Replacing a garage door in a higher priced home See More from Remodeling Magazine: Cost vs. Value Now, this is not to say that doing a major kitchen remodel, or master suite addition, basement remodel, bathroom addition or any other updating is NOT going to get back part of the money you put into the project. You are likely to get 50% - 75% back with most other big impact remodeling jobs. Just knowing that you can not expect to get a return of all of your money is certainly a better mindset prior to adding all the bells & whistles especially if you plan to sell soon. As RE/MAX Associates agent know, it's a price war and a beauty contest. Get your home staged and price it competively.

Washington's Report- Anti-foreclosure Program

2012-01-23T11:23:00-07:00

The Obama administration just revealed its scorecard on its anti-foreclosure program recently, and there's just one word for it: minimal. Roughly of the one million financially burdened homes in the country who have been given mortgage payment reductions through three month trials, only 116,000 have been given permanent load modifications from participating lenders. The Home Affordable Modification Program was the institution that created this assistance program. Also, 60,000 borrowers have been kicked out of the program for several reasons. Last year Obama and his administration said the program would help three to four million Americans in the next few years. They made this claim with very unrealistic expectations, and they know it now seeing the numbers that actually appeared. The complications that have disrupted the HAMP efforts so far: This program allowed borrowers to request three month trials without documentation of their income. Many of them were able to withstand the trial periods, but they weren't able to complete the program requirements such as documenting their income. The program was designed to withstand a 31% decrease of monthly household incomes, but it cannot withstand the common situations where job losses have sharply reduced household incomes. Most of these end up in foreclosure. The program is limited to only monthly payment reductions, not cutting its principal they owe. This program is designed to help out a few distressed homes, not the 15 million Americans who jumped into a losing battle. It's often argued that these foreclosures cannot be averted until most borrowers and lenders agree to write off some of the debt they owe. A good point to keep in mind is that buyers are not the only ones to blame. Some knew they weren't capable of making their monthly payments, but the lenders knew this too. They lent out their money for property that wasn't what they thought it was worth. In order to help the situation a little, lenders need to accept their loss, and lower a bit of the borrower's principal.

5 Helpful Things to be on Your Way to Buying a Home

2012-01-21T12:46:00-07:00

If you are planning for 2012 to be the year in which you buy yourself a home, here are five helpful things you can do to put yourself on the right path to getting there 1. Check your Credit. A bad kind of surprise is a bad credit score, but the worst kind of surprise is a bad credit score while trying to buy a new home. Recent studies have proven that most deal deals in buying a house are because of bad credit. The best way to avoid finding out you have a bad credit score is by checking it often, and taking steps to correcting it while time is still on your side. 2. Do your reasearch. It's best to know what you're getting yourself into before you actually begin the process of buying a house. the housing market is changing all the time, so stay up to date with what's changing in your area. Target states, cities, & neighborhood- be on the lookout for where you want to move. You should be considering tax rates, school districts, neighborhood character, and prices in that area. Once you have an idea of where you may want to live ask your agent to give you a brief summary of the local market conditions. Conditions such as if homes sell above or below the asking price, and how long they sit on the market. Real estate & mortgage pros- Ask your friends for referrals on an agent or broker they like. Follow it up by finding feedback on them and giving them a call. Have a conversation with them and test the waters to see if a good relationship is in the making. Short sales & REO's- there's a lot of work to be done on homes that have been a short sale and/or foreclosed. Talk to your agent because they can tell you what to expect when dealing with distressed homes. What you get for your money- everyone likes to househunt online when the weather is ugly out. However, nothing like actually being there gives you the real sense of what you could be buying, so get out there and go visit a home. 3. Build your cash cushion. No matter how much you save for your down payment, and maybe a little extra for closing costs, you could always use a little extra to activate your buying process. After the closing you can use that little extra cash to do a few repairs, upgrade a few things, and save some money to have laying around for those projects. 4. Shed some stuff. Get rid of some of your stuff. Sell it, donate it, or give it to some close friends. This way you can get some cash to put towards your savings by getting cash when you sell it, get a tax receipt, or eliminate early Christmas gifts. Either way you can gain some cash, or not spend as much on gifts for your loved ones. 5. Sit still. Contain yourself from making any significant financial moves until you buy your home. Don't quit your job to chase a dream; don't buy any cars on credit, because this will only set you back in the process of buying your home. Just keep your eye on the prize and sit still patiently.

Six ways to pay off your mortgage sooner

2012-01-18T20:30:00-07:00

1. Pay more than required each month. The best way to pay your mortgage off sooner is to pay a little bit more than you are supposed to each month. You can pay anywhere from $10 more to $1,000 more. It doesn't matter, just as long as you pay a little extra it will add up in the end. You shouldn't have to sacrifice necessities, but putting more towards your mortgage is a good habit. You'll be freeing up money down the road, which you'll be glad you have done. 2. Make extra payments. Making an additional payment per month is a bit more difficult than paying a little extra per month, even though it has the same benefit. The less debt you have, the more cash flow you have, which equals the more things you can do. One way to make extra payments is to make payments every two weeks instead of once a month. Given the math here that is 26 half-payments instead of 12 full-payments. This has the possibility to eliminate six years off a 30 year mortgage, as long as you also pay a little extra too. 3. Pay a lump sum As long as you don't have other debt, it's best to pay that little extra with (if you're lucky enough to receive) a money gift, an inheritance, a tax refund, or a bonus. These will give you a little extra money to go towards getting your debt paid of as soon as possible. 4. Refinance to speed up payoff. The idea behind refinancing is that a lower payment will free up some money you can pay towards the principal amount. The difficult part is qualifying for a new loan. The toughest challenge is declining home values. With a lower valuation, your loan-to- value ratio will be skewed, which you may have to get insurance for your loan. You will also need a strong credit score and proof of income from the previous two years. Lastly, shorten the term of the loan. 5. Shrink your housing costs. If you really want to lose the debt, selling your house and buying a more affordable one is the most effective way to do so. It's your personal choice to downsize, but it is definitely worth considering. But beware, don't think you'll beat the system by selling high and buying low. You shoud probably leave that to professional real-estate investors. 6. Tap retirement savings. Tapping into your retirement savings should be your last ditch effort to avoid forclosure. Most Americans don't have a large retirement account anyway, so don't bother reaching towards it unless you absolutly have to.

Exterior Home Improvements That Give the Greatest Returns

2012-01-16T17:58:00-07:00

When considering selling your home in the near future, you should always consider exterior remodeling to recoup most of your costs. Exterior remodeling is less expensive than interior, and generates more returns from your expenses in the selling process. The cost vs. value report shows the importance of putting your homes best facade. Exterior replacements and upgrades are normaly less expensive than interior, and can usually recoup close to 70% of the initial cost. Siding, window and door replacements add instant customer appeal all while adding value. According to the cost vs. value report seven of the top ten improvements are exterior replacements. The best replacement you can do is a fiber-cement siding replacement that is expected to recoup 78% of the total costs when it comes time to sell. A foam-backed vinyl siding can recoup 69.6% of costs, while a upscale vinyl siding expects returns of 69.5% of total costs. If you want to replace a door, the least expensive method to take is a $1,200 steel door, which is expected to recoup 73% of the costs. Lastly, a good project to undertake is replacing your garage door. Chances are it's quite old and could look a bit better. What is enticing about this project is that the cost of this project has declined 15%. The expected return on this project is 71%. So when you are thinking about selling your home, you may want to consider doing some exterior projects to boost the value of the home. When you boost the value of your home through exterior projects, you win twice. All these improvment costs can be recouped when you sell your home, and you'll be a happier person.

Which Home Improvements Generate the Greatest Returns

2012-01-16T17:31:00-07:00

RE/MAX Associates Jan 2012 Newsletter

2012-01-11T12:11:00-07:00

US Census Releases News on Housing Starts

2011-11-17T09:53:00-07:00

US Census Releases News on Housing Starts November 17, 2011 Released this morning, the US Department of Housing and Urban Development jointly with the US Census Bureau states that building permits and housing starts are up from that of October 2010, overall. Compared are structures of one unit, two to four units, and five or more units. Privately owned new homes with five or more units have increased 62.9% since 2010 in places that require a permit. The south has had an increase of 13% in the permits required for one unit privately owned homes. Authorized, but not started new construction is up 6.1% in the Midwest from last year. See the breakdown based on region of the United States or just the country as a whole & read the full report: http://www.census.gov/const/newresconst.pdf

Gene Snyder Blasting Affects East Louisville Residents

2011-10-26T05:57:00-07:00

Gene Snyder Blasting to Start Soon Will You Be Affected? Make sure to plan accordingly if you live in Eastern Jefferson County. The Department of Highways District 5 Office advises motorists that construction crews will start blasting work on the southbound shoulder of I-265 (Gene Snyder Freeway) near the U.S. 60 (Shelbyville Road) interchange Tuesday, October 25th between 1 and 4 p.m. Blasting work will continue in the same area each weekday between 1 and 4 p.m. for approximately two weeks. During blasting, traffic in both directions will be stopped from five to 15 minutes. Temporary traffic stops will also occur on Shelbyville Road between North English Station Road and Beckley Woods Drive.Motorists are encouraged to watch for traffic slowdowns in the blasting area and to consider using alternate routes. The actual starting date and duration of this work may be adjusted if inclement weather or other unforeseen delays occur. Dial 511 or log on to 511.ky.gov for the latest in traffic and travel information in the Commonwealth of Kentucky. For more information: http://transportation.ky.gov/District-5/Pages/District-5-Traffic-Advisories.aspx www.facebook.com/KYTCDistrict5

5 Credit Myths

2011-10-14T11:10:00-07:00

You're supposed to follow the financial fundamentals by paying your bils on time and keeping yourself out of credit dangers. When its time to rent, buy, or refinance, small credit score differences can cause your plan to fail. Knowing what to do will save you thousands of dollars on the lifetime of your loan. Here are five credit myths that you need to either write down, or remember when the time comes to make a property decision. Myth 1: Having mass amounts of cash, equity, a great income, makes your FICO score less relevant. truth: No matter if you eat cash for breakfast, your lender requires you to meet their FICO score for obtaining a mortgage. If you have plenty of cash, making your bills or payments shouldn't be a problem. But if you are coming from a financial rough patch, lenders don't look at your credit score on the theory that your other assets diminish your credit riskiness. The best predictor whether you will default on your loan is by looking at how you've handled your past credit. No matter how much you make, your credit score will determine if you qualify for a loan and how much your interest rate is. However, if you buy a house with all cash, you may be able to bypass the credit score. Now if you take a hard money loan out, you will be required to put down a much larger down payment and rate. Myth 2: Having no debt or late payments translates into a great credit score. Truth: Good credit differs from financial responsibility. Your FICO score measures your responsibility when it comes to debt management, given you have credit accounts. Having no credit accounts or late payments means you haven't established credit. On the opposite hand, maxing out credit cards and submitting credit applications all the time can decrease your credit score. The best practice is to have a few credit accounts, but it is imperative to manage them responsibly. Myth 3: Checking your own credit score in advance prevents any surprises when you apply for a loan. Truth: Your broker or banker has your credit score from a different source. they get your score and it may be a different number, rating scale, or line items. This is why you need to start working with your broker or banker as soon as possible to fix any errors you may run into along the way. Myth 4: Your credit score will be damaged for seven years if you've had a foreclosure or short sale. Truth: Short sales, foreclosures, late mortgage payments do appear on your credit score for seven years, but you have the power to heal that score within that time too. The loan for your next home can vary from an immediate purchase to a waiting period for several years, even after you've already lost your previous home. Your FICO score is a key criteria in a post home loss 'buy', but the time it takes to get your FICO score back up depends on how high it was before hand. It all depends, just ask your broker. Myth 5: Short sales have much less impact on your credit score than foreclosures. truth: They have the same impact, and that is the truth!

Home Improvements to Avoid When Selling your Louisville Home

2011-10-12T10:54:00-07:00

The basic idea when selling your home is to make it appeal to as many people as possible, so therefor it sells faster. When considering to make home improvements to your home, either by yourself or from a contractor, there are a few home improvements that will not add as much value to your home as you would think. So don't waste your time and money because you won't see any results when your home finally sells. Additions Every now and then adding some rooms to your home can be beneficial, but some people may find the extra room to just be added on. They see the room as unnecessary and not belonging with the rest of the house, which will ultimatly turn them off to your home. If you do choose to add on to your home, they need to be as 'natural' as possible. Being the person who lives and has lived there for awhile, you may fel the room is natural and does belong to the house. So get some advice and help from a professional about design and greatly consider their suggestions. Appropriate Finish Upgrades Any type of upgrades that you are adding to your house need to match the rest of the house. When selling your home and a room is full of new technology and fancy equipment while the rest of your home is very modern, the room will look completely out of place. Again, it is about creating the flow of the home so it all flows together. Pools Most people won't even look at a home that has a pool because of the cost a pool carries. If you are considering a pool wait until your next house to get one because clearly you're trying to sell sometime soon without limiting your market. Have a long talk with your agent about which home improvements you are considering before you actually start them. Your agent will let you know which improvements will bring you a return on your house and which ones will hinder your returns. Goodluck!

Investing in Property in Asia

2011-10-10T15:55:00-07:00

For property investors wondering if the US is the right place to invest at a time like now, I've checked out an international area as an alternative. This area is a condominium development in the suburbs of Taipei, Taiwan. There is no city website for this local area called, 'The City Peak'. What drives this market is the experienced real estate agents, and personal relationships with them, which limits the access of outside investors. These condominiums are designed so the living space is 20+ floors, and two possible retail stores on the first two floors, which actually is a western building concept. The developer hired an award winning architect and never made his building available to public investors. The average condo in Taiwan is a wall-to-wall shell with high ceilings and fire retardants. The rest of the space is left to the buyer. The condo is sold on the total square footage as is regional tradition. So a little less than half the the area you buy is made to be the common area. The buyer is still responsible for paying rent, utilities, etc. Pretty much, don't move there it sounds like it sucks, and America is much better any day of the week!

Closing of Sherman Miton Bridge Makes Louisville More Desirable

2011-10-04T13:02:00-07:00

The most recent news concerning Louisville is the closing of the Sherman Miton bridge. Louisville politicians have been arguing with East End money for more than ten years. They've been arguing about the building of the East End bridge. Engineers have estimated the cost for repairing the bridge, and the calculations still aren't complete since it took place September 8th.This may mean a few things for real estate in Louisville. One thing for sure is that if you're looking to buy a house in the Kentuckiana region, you will not want to buy one in southern Indiana. Even though 17% of the Louisville workforce is from southern Indiana, the closing of the Sherman Miton bridge will have substantial effects on commuting. Homeowners trying to sell in southern Indiana and Floyd Knobs are having a difficult time selling On the other side, homeowners trying to sell in Kentucky are seeing a small rise in sales. Areas like Crescant Hill, Highlands, Audoban Park, and downtown. The end to real estate recession isn't near. Until things are back to normal, we won't be able to evaluate the extent to which the bridge failure really affects property values and transaction.Forcasting things like these never really pans out well for anyone, so there's no reason to try and guess which way the dice will roll. Goodluck with your real estate adventures.

Top 3 Deal Breakers

2011-09-23T15:59:00-07:00

Buying a house used to be fun. All the excitment involved was an enjoyable process. Now it's more of a huge hassel. Buyers wait for roadbumps to come their way and handle them when they have to. Sometimes these bumps can be deal breakers. Here are three of the most common deal breakers and advice on how to avoid them. 1. Too Low of an Appraisal Every now and then buyers believe they are benefitted by a lower appraisal price than the agreed upon purchase price. This will force the seller to lower the price. Today most sellers rarely break even so this is the most common deal killer. If the appraisal is barely below the contract price, most sellers will bring their price down a little and the buyer will meet the seller halfway. The buyers and sellers hands are tied when they receive the appraisal. There are two things the buyer can do to minimize the risk of letting a low appraisal kill the deal. Check the comparable homes that have sold in your area with your agent. Then do not make an offer above the average range of comparables even if there are multiple offers for this property. Next consider working with a mortgage broker who originates loans through its own bank. These lenders select from a smaller pool of appraisers that are qualified and knowledable in your area. 2. Property Condition Drama Lenders today are concerned with two things: property condition and the number of distressed houses on the market. Most homes with crappy painting, faulty electrical systems, wood rot, etc. aren't likely to fare well when the appraiser walks though, let alone qualify for the asking purchase price. The seller would be willing to do some work but certainly not all if it because it probably isn't in their wallet. Prevention is the best remedy for transaction ailment. If you are considering buying a short sale or a REO the bank literally means AS-IS! You should ask your mortgage broker to fill you in on what condition your lender is stating your house to be in. keep this standard in mind while searching. Your agent will help guide you which houses will and will not pass. 3. Loan Approval Takes too Long It's common knowledge that buyers get a preapproval for a mortgage before they start house hunting. However, it's not common knowledge that this preapproval is just the tip of the iceburg. Getting your preapproval loan months before you have a contract is the best way to go because a lot can happen in the mean time. It's pretty common for contract to include a contingency period of 17 days. The appraisal may take longer than that to come in, or the underwriter will want various forms of documents just to cause problems. htey also ask you for these things at different times, so it may take longer than 17 days to get all the requested forms and have the underwriter sign off on them. Only remove your loan contingency when you get the green light. Most buyers ask to get an extension from the seller or the deal dies right there. Most sellers understand and will give you an extension, but bank sellers are hesitant to give the extension and especially when there are other offers. here is the advice. Be ready to provide document information (more than once) and do it quick. the faster you get these to the underwriter, the better things will be. it might be in your intrest to work with a mortgage broker who has previously worked with an agent. This way your agent will stay on top of any loan process road bumps and inform the listing agent about the extension instead of asking for an extension at the last minute. Good Luck

Properly Calculating the Square Footage of your Home

2011-09-21T10:24:00-07:00

When buying a house or selling property, calculating your square footage can be a complex process. Your real estate agent should measure the square footage for you, but they may leave out some important areas. It is vitally important that you get an accurate measurement and get every foot equated for. Measuring the Exterior Exterior measurements are the first piece to get calculated. The way this is done is by measuring the exterior walls first, and then a sketch is made showing the perimeter. This can be a difficult measurement depending on the landscaping. Unfinished Areas Your house may have some important unfinished areas like in the garage, or in an attic with enough space to be worthy. However, these spaces are not accounted for because they are not considered living space. Closets and Hallways These will only be counted for only if the area is finished and heated. If the closet isn't completely finished, it won't be accounted for. Bay Windows & Sloped Ceilings If you have bay window(s) and the ceiling is seven feet or taller, it will be included in the measurement. The area for sloped ceilings will only count if it is five feet or taller. The home's square footage reflects finished living space ready to be occupied by the resident. Heating has to be done by a conventional system and also must be accessible from another living space room. Steps are often missed when calculating the measurements, which is why the numbers rarely match up on the PVA or local listings. Remember that ceilings that are too low and if the space isn't finished, it won't be calculated in the measurement.

Four Ways to Personalize Your Home

2011-09-19T10:28:00-07:00

Honestly, buying a house in today's market sucks. There can be numerous let downs from financing to move-in. But one of the best parts about being a homeowner is the ability to make your house truly yours. You do this by customizing it exactly how you and your family want it. Here are four steps to personalizing your home. 1. Paint the inside and outside of your house to create the feeling you want. Painting a house is a significant part of creating your home. Studies show that the color you paint your home have great impacts on the mood levels and happiness levels of the residents inside the house. Exterior- Paint the exterior of your house to your preference. What did your dream house look like, and what color was it? Keep these in mind when deciding the color of your house. Front door, shutters, & fences- Maybe you just bought a house that is freshly painted. If so, maybe consider painting one part of the house to give it your personal touch. Rusty reds, greys, blacks, aquas, and greens all do great for a polished entrance, all while adding a specialized knocker give it 100% personalized look. Finally, painting shutters and other exterior parts are inexpensive and give your home the look that it is actually yours. Interior- When painting the inside of your home, you should aim to match colors to the purpose of the room. For example, bedrooms should resemble restfulness, bathrooms, clean, and living rooms, warming and energizing. 2. Inventory your personal items before you unpack Most home buyers are living closer to work and buying smaller homes to manage the cost of ownership. Even if your'e not moving into a small home, unpacking presents an oppritunity to customize your home to what you want to do in each room. You don't have to put your bed in your bedroom, or your kitchen table in the kitchen. It's your house put it where you want it. Make a chart that maps out all the rooms in the house, even all the closets and extra spaces. organize what you want to do in each room, and what goes in each room. This will empower you to make sure each room has been assigned its purpose. 3.Build Organization Building ad-ons to your home can be inexpensive and require little time. Building items like window seats, shelves, medicine and linen cabinets, closet organizers, etc. Karl Champley just released a book 'Same Place, More Space' about inspirations about which projecfts are possible. 4. Match your furniture to your space, your activities and your stuff. As you buy your furniture look for pieces that offer organization or storage features. For example, my family has tons of shoes for work, casual, sports, etc. and before you enter our house we have cubbys for each type of shoe. It keeps shoes from accumulating on the floor and taking up space. Also if your space inventory from your list above, has no palce to go, buy some armories. If you really want your home to look polished and like you're organized find a closed storage space for every time that should have a label.

Has the Louisville Real Estate Market Hit Bottom?

2011-09-16T11:20:00-07:00

Greedy borrowers, shady lending practices, and not much common sense from our elected officials. Since the beginning of the house crisis, not much has been done to fix it. Our forclosure numbers are through the roof, but maybe the worst hasn't come yet. Most say our recent legislation is a step in the right direction. According to the National Association of Realtors, distressed sales have peaked. Of coarse forclosures aren't going to stop tomorrow, nor the next day. But it is a positive step when there are less forclosures this month than last month. Distressed properties are homes that is drowning financially, and is drowning surrounding properties. Even if your mortgage payment is paid to date, the short sale next door or down the street are negatively affecting your home's value. Louisville doesn't have the worst housing market, however, home prices have dropped one percent from July 2010 to July 2011. Even though our Louisville market isn't the strongest, it's certainly not the worst. So where do we go now? WHo knows, but jobs are the major concern for right now. Louisville job rate hasn't declined, but has held steady at 9.5% so we'll have to endure the rough waters until this recession ends.

Four Need to Knows about Buying & Selling Simultaneously

2011-09-02T11:15:00-07:00

Buying a house was once a process that only took a couple of months. But today tight mortgage guidlines, market concerns, and distressed sales appraisal dramas extend this process all while making it much more complicated. If you're trying to buy and sell at the same time, it seems like you've undertaken all these complications twofold. However, getting educated about today's market and figuring out all your options gives you strategy. There is no need to panic and worry about all the outcomes. here are four tips that will make buying and selling your house much easier. 1. Meet with your agent way before you plan to list your house. This allows them to give you an idea on how long it will take to sell your house, and possibly how you can move it along faster. They'll give you advice when and at what price to list your house, and show you how it can realistically be expected to quicken the sale of the house. They can and will tell you what price you will most likely receive on your house. This opens up the option whether you need a short sale (if your houses' value is less than what you owe) or not. This will affect your qualifications on your loan application in the short-term. Short sales make it very difficult to get a loan for a few years, but if you want to and need to buy in the near-term with a short sale, discussing legalities and logistics must be done with your CPA, mortgage pro, or attorney. Meeting with your agent a year before you plan on moving isn't too early at all. All the information you need will come from meeting with them this early. 2. Meet with your mortgage broker before you start looking for houses or put yours on the market. Obviously this step would have been done anyway, but it is critical they walk you through this process before any major contracts are signed. Talking with them will help you: calculate the math on what you'll retain on your sale, help you know what much you can qualify to buy, what you will need to come up with for the purchase, understand whether the sale will impact your credit at all and if so by how much, and the time of the sale. There are numerous ways of figuring all this out, but talking with your mortgage pro will let you all order them before the process actually gets going. So meet with them ASAP. 3. Know your options for staying in after closing, or moving in early. Most people in this situation try to simultaneously buy and sell so they aren't wasting any money. But the truth is that in today's market, very few of these sales close on the expected date. The bank takes longer than expected to approve the appraisal of the house while the seller's bank takes forever to allow the short sale. If you are trying to sell your house before your purchase is complete, you have every right to ask for a 'rent-back' which means you can stay on the property for as long as a month. Doing this though is costly, because you will ahve to pay the buyer rent in any way that it is negotiated. Let's say you are buying after you have sold, some sellers will let you move in before finalizing a similar arrangement. They could even ask you to sign a document waiving their liabilities on your personal items. 4. Plan for gaps and overlaps. You can almost always plan on your escrow closing late. But make sure you have a backup plan for when either deal gets finalized late. It's always good to be prepared for these gaps and overlaps, so plan ahead and be prepared for them. So if you are buying before you are selling, collect yourself a cash cushion for the couple month payments you'll be forced to pay. If this option just won't work, try renting a place for a couple months while you try and find a house. You might even want to consider renting a hotel suite or a short-term vacation rental. Good Luck!

6 Insider Secrets for Open House Prep

2011-09-14T12:23:00-07:00

The most common tips for preparing a home for an open house is the usual clean, repair, stage, spruce, and deodorize. Beyond these mimimums there are better tips that most people never consider. These tips will ensure you home is looking like the hottest house on the market. 1. Look at other open houses in your neighborhood, city, and price range. Going to look at other homes gives you an idea how other homes are stacking up against your home. You will get to see how other homes are laid out in terms of viewing, cleanliness, household items, etc. Going to other open houses will let you see how a potential buyer would view your house. So take notice what other homes are doing and try to imporve yours. 2. Move. Pack up all your belongings (personal) and move them out of the house. None of your personal items should be visible in an open house. People in an open house do open closests, drawers, etc. so you may want to consider renting a storage unit for your time on the market. 3. Tell the neighbors to come over. Do you know your neighbors real well? Do they come over for dinner or parties on special occassions? Well if they don't there's a good chance they may be a bit nosy and interested in how you live. Your neighbors are probably aware of who wants to live in the neighborhood, and who they want to live there. Go ahead and invite them for the open house, it won't hurt anyone or anything. 4. Enlist the neighbors. Incase your neighbors are planning to move in the future, they want your home to seel for as much as possbile. If your home sells for a good price, it will increase the value of their home as well. Since you've already invited your neighors you should make sure they can help out as well. They can do helpful things like make sure cars aren't parked in the street in front of your home, and not letting their dog use your front lawn as their bathroom. Simple things can go a long way when selling a home. 5. Cut your neighbors grass. Are you the neighbor of the neighbor with the absurdly tall grass, and four cars parked in the yard that is an eye sore to anyone that happens to pass by? Well, if your house is on the market and you have an open house coming up, you may want to cut the grass yourself. If you go ask your neighbor to cut their grass they may get offended. If your neighbor is elderly, ill ,etc. then they probably wouldn't mind a bit if you offered to cut their grass. However, if they are perfectly healthy but never cut their grass; it is not impolite to bake a batch of brownies go offer to cut it for them. Help yourself by helping another. 6. Get over yourself. You and everyone else know you have the best taste around. I'm sure you do too. But for the sake of an open house, take down your fancy homemade art. No one cares you have the coolest art piece in the neighborhood because it's probably going with you when you move. The goal in preparing for an open house is to neutralize the decor. So instead of showing off your fashionable pieces, let your agent help you redecorate to neautralize the home. Good Luck!

Four Buyer Incentives that Sell Homes`

2011-09-12T13:46:00-07:00

In today's market one can easily find themselves to be stuck in several ways. A family finds themselves stuck with their house on the market with no bites, and stuck in their house until they sell. There's also the feeling of stuck where you've lowered your price as far as you can without having it turn into a short sale. You've already painted the house, replaced the carpet, and lowered the price as far as possible; now this is the feeling of stuck that makes you feel the situation is out of your control and there is nothing you can do to change the outcome. But here are four buyer incentive tips to guide you away from the feeling of being stuck and getting your home sold. 1. Interest rate buy-down 'Pay points' is a term often heard from sellers offering a percentage points of the sale price. These percentage points are paid to the buyer's lender as discount points that bring the buyer's interest rate down. This will decrease the pressure they feel of guessing and locking their interest rates. They'll also feel they will beat the market rate by buying your home. Seller-paid rate buy-downs save sellers money on the monthly payment of the entire lifetime of the loan. Also these points are tax deductable for the buyer. 2. Closing cost credit Most buyers that are trying to get into the market while prices are low are already finding it very difficult to come up with the money for the down payment. Most home loans require anywhere from 3-6 percent of the loan amount in cash, and the downpayment to cover other fees like closing costs. the smart sellers and their agents include their home's listing and marketing materials the offer to pay 3-6 percent of the home's sale price at the closing to void the closing costs. A closing credit cost gives an edge to buyers and makes a home much more attractive than its competitors. Your agent should help you crunch all the numbers on how much of a credit you can afford to offer, and create an overall package. 3. HOA dues credit Homeowners' Association charges monthly dues which can be a hassel. When trying to sell your house you can offer a credit at closing for a time period of your choice. Ask your agent about how to do this strategically in a way that will attract the most buyers without breaking the ethics line. 4. Broker incentives Some sellers that can' afford to take on the percentage points have a different plan. They offer a bonus percentage point in incentives to the buyer's agent, plus their commission. More than 90% of buyers ready to buy a house in today's market are represented by a broker. These brokers are looking for which client they want to take, and the one with more incentives usually wins. These incentives aren't technically 'buyer incentives' but they do lure the number of potential buyers to your home which never hurts your chances.

Hiring a Firm to Take Care of Your Appeal

2011-08-31T11:35:00-07:00

Hiring a firm to take care of your appeal process is another option not to be overlooked. However they have to option to take your case. If they choose to do so, they will charge a flat, upfront property-analysis fee and any other fees for filing. Once both parties agree to take on the case, they will give you a copy of all the comparable-sales data they need to make the assessment. From there the appeal process is straightforward. Since these firms know all the ins and outs they will most likely get you a better deal saving you time and money in court. You save this time and money because the process is filled with cumbersome paperwork and it must be accurate. It's vitally important that you know your firm that is representing you because it could all unfold to be a scam. It is recommended to find local references and their credentials before signing a contract. Within the last three years the Better Business Bureaureceived nearly 650 complaints across the nation about property-tax consultants. over half those complaints involved advertising and refund problems.

Appealing You Assessment

2011-08-29T12:09:00-07:00

The key to a successful appeal of your property value is comparable sales in your area. Most states treat the process of appeal like a less formal court hearing. Property owners come in and present their case to local officials providing evidence that their property has been incorrectly valued. the provide evidence in terms of square footage, number of rooms, amenities, and neighborhood characteristics. It is important to bring photos of your home and the legal documents required. There are several ways to check sales in your area, like the newspaper, local real-estate broker, or contacting your local assessor. the biggest mistake you could make when doing this is going on websites that state the numbers of homes sold and how much they went for. These websites' figures aren't official and will not stand up in court. The best type of sale you can be involved in is an 'arm's length' sale which is one where neither party knows the other. If one party in a sale knows the other it could end up in a lower value and won't be accepted in an appeal. Check for the same last names on sales documents to find out if it is an 'arm's length' sale or not. The appeal board will question a house that sells too quickly in a weak market. This means the seller sold his/her property in a hurry and it would't stand next to the comparable sales. A good trick is using forclosed homes, because it still counts of they are the only homes sold in your area. Assessors choose specific dates to come measure your home, which could possibly be several months before you receive your assessment notice. The weak housing market makes it obvious that people are not selling their homes, making it difficult in some places to find comparable prices. If this is your problem, you may want to hire a professional appraiser to value your home, normally ranging from $350-$600. Also appraisers charge by the hour when asked to be at an appeal hearing. Next blog is finding out about getting a firm to appeal their home's value. Stay tuned to read about it.

Checking Your Assessment

2011-08-28T09:09:00-07:00

This is a follow up from the last posting about checking your assessments. Appealing your assessment could increase your property value by large amounts. Here is how to check your assessment. Typically the period to appeal your assessment is 10-30 days. depending on your local governement. It's best to figure out the actual timeframe by calling your local assessment office. Once you have figured out the proper time frame, you need to review what is called the 'property record card' which is a summary of the characteristics of your home. Make sure each room is accounted for with no mistakes. Each extra added room drives up the value of your home. If you have recently added new additional features to your home, bec cautious of an appeal because it will drive the value up. If you feel that your property is overvalued by a few thousand dollars, then it is worth the appeal process. However, repeated flooding, leaky roof, constant breaks in floors, etc will have the effect of decreasing the value of your home, so make sure your assessor has accounted for all these. That's all for checking your assessment, but next time I will guide you through the actual process of appealing your assessment. Stay tuned for tomorrows new article.

Property Taxes

2011-08-26T11:34:00-07:00

Housing prices are decreasing in many markets, but your property tax bill is most likely increasing. But you can fight back is the good news. Propert taxes in the United States have increased 20% from 2005-2009 says the most recent data available. The median annual real-estate-tax payment was $1,917 in 2009 from $1,614 in 2005. Home prices decreased 31% in major suburban areas during the same period. Local governments normally don't measure house values every year and they have limits on property tax increases, which is why the value of a house downs't move in snyc with property taxes. That means when the market was healthier, your house value should reflect your property tax rate. There isn't much that can be done about your tax rate (set by local governments), however home owners can appeal to their local accessors to get their assessment lowered. WHich will translate into a lower tax bill. Most homeowners are paying too much for property taxes, but there are ways to get a successful appeal. You need to fact-check your accessor's work. Nearly half of all successful appeals begin when homeowners find an error in the accessor's description of their home. Finding these errors can drive up the value of your house significantly. Local officials find value in your home by house-by-house appraisals, computer models, and even ariel photogrpahs to see if there are any new additions to your house like a swimming pool etc. Since it is difficult to evaluate every house every year, they also look at recent house sales in your area. Errors are not uncommon when finding the value of your home. So if you have the money to spare, hiring a lawyer or property-tax consultant is worth it. Appealing your house value is something to look into if you think you are paying too much in property taxes. Depending on the state or area, evaluations are every year or every couple of years. So take a look if you think you're paying too much. Next time we will talk about how to check your assessment. Stay tuned!

Establish a Mortgage You Can Live With

2011-08-24T13:28:00-07:00

Establishing a Mortgage You Can Live With All lenders have a few simple formulas that calculate how much of a mortgage you can afford. Qualifying ratios is the name of these formulas because they measure the amount of money that should be spent on your motgage in relation to your income and other expenses. Keep in mind each lender has their own version of these qualifying ratios and their calculation numbers are a bit different from one another. In order to qualify for loans, your housing expenses should not exceed over 28% of your monthly income. Your monthly housing expenses include Mortgage principal, interest, taxes, and insurance. Say $30,000 is your gross annual income, then your monthly income is $2,500. Now, 28% of $2,500 is $700. You would most likely qualify for this loan because $700 is what you would pay monthly, and the lender would see you would have plenty of extra money. It is extra important that you select a home that will keep you & your family happy for years into the future. When figuring out your budget when buying a home, you absolutly need to allow room for extra expenses like maintenance and utilities. If you plan on buying an existing home, collect utility cost averages and maintenance costs from the previous owners to aid yourself in preparing for home ownership If your finances are in great condition, you could look for a home priced two or three times your yearly salary. The mortgage calculators can give you a rough estimate of how large of a mortgage you might qualify for, speaking with a lender or mortgage broker will definately give you a more accurate figure.

How to Avoid Financial Pitfalls

2011-08-22T12:47:00-07:00

How to Avoid Financial Pitfalls Buying a house is a long-term financial obligation. Legal documents must be filled out and signed, and the responsibilites are understood so you don't become a victim of fraud. When applying for a loan on your house the information you submit must be complete and accurate, and if it isn't, it is considered fraud. there are individuals who will try to persuade you to lie about your qualifications so they receive income at your expense. These people look like they're trying to help and be your friend; however they are only downplaying the seriousness of complying with the law. Don't let yourself be fooled by these people because they claim they are just rules everyone ignores, but they are just cutting the edges and trying to earn a profit. Here are some tips to avoid being caught in a financial pitfall. Be Smart- Don't sign anything unless you have read and completely understand the document. Do not sign any blank documents. It is very important to properly and honestly report your income, assets, debts, and employment. Refuse to buy property or borrow money from anyone. The disclosure of loans isn't a formality, its the law, so you have the right to know. Be Honest- Do not change your income tax returns under any circumstances. Tell the entire truth about money gifts. Do not list fake money borrows on your loan application. It is important to be truthful about credit issues, past and present. Be honest about your intention to occupt the house. Lastly, do not provide false documentation. Don-t be Discouraged- Obstacles may appear as you submit your loan application. Not to worry, everything will be fine and you will figure out how to resolve these problems. If your application is rejected, you need to find what the problem is and how it can be resolved. Possibly look for a less expensive house or save more money for your down payment. Also check around for possible and affordable housing programs you could be eligible for to help you through the home buying process.

How Much of a House Can You Afford?

2011-08-18T19:16:00-07:00

How Much of a House Can You Afford? The most important element of buying a house is trying to figure out how much you can actually afford. You do this by looking at your budget, credit reports, credit reports and scores. Once this is all figured out, you need to save as much money as possible for a down payment, closing costs, home inspections, and anything else that would be an expense in the process. Getting ready financially could take months or even years. Your credit score will tell you a lot about how long it will take. If your score is lower than preferred, you may need to take some time to build it up. If your score is below 620, lenders will see you as a risky borrower, and are less likely to loan money to you or give you a high interest rate. However, if you do qualify for a low interest rate, you will be saving a great deal of money over the life of the loan. Good luck figuring out how much of a house you can afford!

Seven Deadly Sins of Overpricing

2011-08-16T19:32:00-07:00

Seven Deadly Sins of Over Pricing Overpricing your home can have several consequencesto your potential buyers. it can limit the number of potential buyers who can't afford your home, reduce showings, and create an impression in the marketplace that homeowners aren't serious about selling their home. The last pitfall to overpricing is the beginning of homeowners reducing their price several times trying to catch up to the real market value. Let us take a look at the seven deadly sins of overpricing your home. 1. Appraisal Problems- Say you do find a buyer willing to pay the inflated price; the truth is over 90% of buyers use some type of financing to pay for their home purchase. The sale will most likely fail if the home won't appriase for the purchase price. 2. NO Showings- People looking to buy homes aren't idiots. they are familiar with the real estate market and will not even bother to look at a house much less make an offer if they know the price is too high. 3. Branding Problems- When every agent in the city finds that brand new listing to see if it is a good fit for their clients; the 'overpriced' brand takes a lot of extra effort to reignite interest in the property. 4. Selling the Competition- Low prices appear as bargains, but nothing is worse than watching your neighbor put up a 'Sold' sign right next to your 'For Sale' sign. 5. Stagnation- The longer a home sits on the market, the more it looks like it's stale. Do you ever notice a home that been for sale forever? Do you ever wonder what is wrong with that home? That house could be your house if it is overpriced. 6. Tougher Negotiations- Difficult negotiations may come about because the home has been on the market for so longand because it is overpriced compared to the competition. 7. Lost oppritunities- Being overpriced is gaurenteed to lose a percentage of potential buyers who are outside of your price. These are buyers who are considering your ballpark price, but in the end can't afford it because it is just not in their budget. Most buyers will look at 8-20 homes before making a decision. Setting a competitive price relative to the competition is a key marketing strategy if you want to get your home sold.

J.D. Power & Associates Award

2011-08-07T12:05:00-07:00

J.D. Power & Associates announced on July 27, 2011 that Remax ranked highest in customer satisfaction for buyers and sellers in 2011 residential real estate survey. It’s encouraging to know that our clients do appreciate us in this difficult market. We work hard for their continued trust and confidence while we only deliver our best efforts. Thank you to all of our clients, we appreciate your dedication to our real estate family, and we promise to continue serving you even better than before because you deserve it. Buyers Sellers

8 Signs You're Ready to Buy a House

2011-08-04T12:10:00-07:00

How do you know when you’re ready to buy a home? This checklist will make the question black and white for the first-time home buyer. These eight steps must be settled before a first-time home buyer considers buying a house. 1. Establish a budget and know how to use it-This step focuses on money management skills, because when owning a new home, money management is a must. First, make yourself a budget (if you don’t already have one) and know where the money comes from and where it goes every month. Knowing this will tell you what is affordable and what isn’t. After your financial situation is sorted, create yourself a mock budget for owning a home. Find out the cost of houses in the area, and the monthly mortgage rate. Next add in higher utility bills, homeowners insurance, property taxes, homeowners association fees, maintenance and repair costs. Consider adding in commuting costs if the commute to work is rather long. If this mock budget doesn’t balance, and within a few months your finances are dwindling, then it is not the time to purchase a home. Do not buy! 2. Have a sizeable down payment- Normally a 20% down payment of the house price will be enough to get started. It is possible to get around that 20%, but those options will cost greatly. In a slow housing market, the down payment will establish some equity incase an unprecedented move is in the future. 3. Have a reliable source of income- Owning a home is a long-term investment requiring a consistent flow of cash to pay for monthly payments and other expenses. If you’re in school, act as if you’re going back to school, have a family, and an unreliable job. Once a reliable job is in place, calculate if the payments could be paid in six months, or six years from now. Some couples can afford a house when they’re both working, but when a child comes and one has to quit working, finances begin to get difficult. 4. Have an emergency savings fund- Try and save enough cash to cover six months of living expenses; doing this will get you closer to being prepared for owning a home. If anything disrupts your steady income, a little cash must be saved until you get out of the slump. Say an illness, natural disaster, or unexpected layoff occurs and your income comes to a halt, you need enough money to pay your mortgage until you get back on your feet. 5. Have your debts under control- lenders like to make sure you'll have enough money each month to pay your obligations. So before they'll give you a mortgage, they take a look at your so-called debt-to-income ratio. They want to make sure your monthly housing costs -- including principal, interest, taxes and insurance -- will consume no more than 33% of your monthly gross income; and that your total debt payments, including your mortgage, credit cards, student loans and auto loans, will remain below 38% of your total pay. So if you have debts, it is best to pay them before applying for a loan so you can get as much money as you need. Also avoid taking on any new debt six months to a year prior to the purchase of your home. 6. Have a good credit report- Your credit score doesn’t have to be perfect in today’s market to buy a house, but it is preferred to have a good score to reduce your interest rate and lower monthly mortgage payments. The government allows you to check your credit score once a year for free, so check it and make sure no mistakes have been made. Any missed payments or other black marks could tell lenders you’re sloppy and unreliable to pay their money back. Bad credit isn’t the biggest issue to worry about. Just make sure you have credit history; take out a credit card a year before you plan to purchase a house. 7. You can make a long-term commitment- When buying a house you should plan to stay at least three to five years. Selling your house before then makes it possible to lose money on the deal. If no profit is turned, capital gains taxes must be paid if the house isn’t lived in for two years. The length of your stay becomes important now that home appreciation is slowing from its previous pace. If you are skeptical about how long you will stay in that place, it is probably best to rent. Renting isn’t always bad, because there are times in your life that renting makes more sense than buying. 8. Prepare to become your own landlord- Don’t buy because you can, buy because you are ready to live the lifestyle. Buying a house comes with many new costs and responsibilities, like fixing an appliance when it is broke instead of calling your landlord to come fix it. Another responsibility is upkeep (yard work, shoveling driveways etc.). A major question you will have to ask yourself is, “Do I have to energy, time, and desire to maintain the property? Will I have enough money to buy a lawnmower, or hiring an occasional plumber?” These steps are important ones to ask yourself before committing and buying a home. If even one of these steps cannot but met, you should wait a little longer to buy.

Four Steps to Minimize the Risk of Owning A Home

2011-08-01T11:00:00-07:00

Four steps to minimize the risk of owning a home. Years ago owning a home used to be considered a safe investment, but now it seems terrifying becuase of the damaged economy and flimsy housing market. Possible homeowners are now scared of making a commitment to such a large investment in fear of a mortgage disaster or buying a lemon. Here are four steps that will keep your confidence lifted when buying a home. 1. Stick with a fixed-rate mortgage- Even though fixed-rate mortgages are usually higher, they are gaurenteed to never change throughout the lifetime of your loan. This fixed rated eliminates the possible scary payment changes. Even though ARMs (Adjustable Rate Mortgages) are increasingly popular the interest rates are increasing. The rate was 9% in the fourth quarter of 2010, and jumped up to 12% in the first quarter of 2011. With a fixed-rate mortgage there is no fear of having your rates jump and trying to find extra money to pay your loan. You don't have to live in an interest rate obsession for the next 15, 20, 30 years because a fixed-rate mortgage gives you the predictablility of what your monthly payment will be, and that is why it is the best plan. 2. Put - and keep - a home warranty in place- the transition from renter to homeowner is a tall order in the first time homeowners mind. There are a lot of concerns with responsiblity and appliance maintence. A home warranty plan kicks in when escrow closes, depending on your plan, and will cover your home against breakdowns of major appliances like a water heater. There are even upgradable plans for roof leaks and plumbing issues. Just call the warranty company when an item breaks down and they will repair or replace the item for you. If you talk with your agent you could even negotiate for the seller to pay for the first years cost of warranty. Also renewing your warranty is very important in order to keep a cap on your repair costs. 3.Get repair bids and estimates, not just inspections- Once you have located a house and completed a contract, there is a contengency period ranging from 7-17 days which you can obtain all the inspections you want. The most common inspections are a general propety inspection, pest inspection, and roof inspection, but you may have more specialized ones if the property needs it. It gets tricky when all these inspections say your home needs repairs, but never tell how much it will cost. Talk with your agent to set up repair contractors to give bids on the work before the contingency period expires. This enables you to negotiate repair costs, and/or know what you're getting into cost wise. 4. Buy on the 10-year plan- When buying a home, only buy one that you can sustain the mortgage, buy at a price that is affordable to you and wont have to sell urgently for any reason. This step helps you plan for the future and not lose money on your home. This advice should make you ask yourself a few questions like, 'how many bedrooms do I plan to have? How much garage space will I need? Is this where I want to be located in the future?' This last step will be one to use for your future, which is where one should always be looking!

Homeownership Tax Benefits Must be Preserved

2011-07-29T12:50:00-07:00

The Mortage Interest Deduction is vital in keeping housing prices from plummeting to devestating lows, and potentially damaging the economy even further. So why would preserving the MID be crucial to uphold struggling small businesses and the middle and lower classes? The interest payments on loans are added up at Uncle Sam's collection day (April 15) and that interest is allowed to be subtracted from a citizens total yearly income, giving him/her extra cash in their pocket to put back into the economy if they choose. That is the point of the MID, which has worked so well in the past. Now we face possible changes or elimation to the tax code by Congress. They are currently considering revising the MID or eliminating it completely. Any changes to this code will have devestating consequences to the American people, especially the middle and lower classes. Changes to this law would decrease the value of homes across the nation destroying the recent progress of the weak housing market, decrease salaries of all families, destroy a few million jobs, and will have other rippling effects. It is our duty and responsibility to make sure Congress does not touch a single word to the tax code laws. To do your part, please contact your state Congressman to insist they leave the MID alone. It would benefit a few while crippling the entire nation even further if these laws are revised.

Current Mortgage Rates

2011-07-08T11:19:00-07:00

**Current Mortgage Rates** { Friday, July 15, 2011 } Courtesy Of: Bev Leonhardt NMLS #55044 502-445-2827Conventional 30 Year -----------4.625% Conventional 15 Year------------ 3.875% FHA 30 Year------------------------4.500% FHA 5 Year ARM-------------------3.500% VA 30 Year--------------------------4.500% Jumbo 30 Year---------------------5.350% Jumbo 5/1 ARM--------------------4.425% KHC 30 Year-----------------------4.875% (KHC DAP now available to $6,000 on 120 months) **Certain restrictions may apply**

Are McMansion's Loosing Their Appeal to the Masses?

2011-02-14T08:37:00-07:00

LIVING SMALLER Monday, February 14, 2011 Are McMansion's loosing there appeal to the masses? Is the small cozy cottage with the white picket fence making a comeback? It looks like home buyers are able to live in a smaller space and fix it up with all the bells and whistles. Many homeowners are paying attention to what buyers want and what the design shows are telling viewers; light, tranquil colors look best in smaller spaces. Homeowners are learning to work within their space to give it a modern appeal with a comfortable feel. The average home sizes are declining. This may have to do with the current tax credit being offered, many first time home buyers are jumping into the marketplace. Someone purchasing their first home is most likely going to be buying one that is a modest price and size. Whether first time buyer, divorcee's, aging baby boomers, or just downsizing on size & mortgage payment; many are finding creative and beautiful ways of taking their smaller space to a whole new level.LIVING BIG IN A SMALL HOME 'Although the average square footage of a new house is still double what it was in 1960, in the last year, it decreased slightly to 2,215 square feet from a high of 2,277 square feet in 2008, according to data from the U.S. Census Bureau. While the decrease doesn’t approach mid-20th century levels, it is the first drop in house size since the recession of the early 1980s.' Read More..... Article Source: Realtor MagazineIssue: February 2010By: Maggie Sieger

Questions to Ask your Listing Agent Beforehand

2011-02-11T09:51:00-07:00

1. Will my property be advertised on websites. Which ones? 2. Will there be a visual tour of the property? Online? 3. Do you put properties on classified websites like Craigslist etc? 4. Does your agency provide a VoicePad or similar service for drive by lead capture information? 5. How is the property marketed to other buyer agents? How do you get feedback? 6. How will I be communicated with regarding showings, feedback and marketing? 7. What is the phone number buyers or agents call. Who answers? 8. Will the property have a website of it's own? 9. If the buyer leaves a voice mail or e mail for more info who responds and how quickly? 10. What other marketing activities will there be? 11. Does your company have a website? Will my property be feature listed? These are extremely important questions for today's difficult housing market. If the prospective agent hesitates on these questions you may want to interview further. A good agent may not do all of these but he should do 90%.