Louisville Home buyers, Get off of the fence!

This is follow-up to a previous post. I’ve read and heard comments that buyers are afraid to purchase a home because they are afraid that they will miss a better deal. This is simply not a good strategy. Buying a home is not like waiting to buy a TV on Black Friday. There are too many variables beyond your control. In fact, even if you get a better price by waiting, you may get a worse deal.

Consider this scenario,

Last week, a property came onto the MLS for $160,000 that a buyer was interested in. If the buyer had made a reasonable offer (97% is reasonable in Louisville), he or she could have possibly purchased the home for $155,200. At the time, average interest rates were 5.82% according to Bankrate. Monthly Principal and Interest payments for this purchase would be $912.62. However, if the buyer had waited until this week, the 30-year average rate rose to 6.08% and the payment is now $938.50! To get back to $912.62, the buyer would have to get the house for approximately $150,900! This is far more unlikely.

So, now what? Should you wait and see what happens next week? The answer is a resounding NO. According to this week’s survey of 250 experts by mortgage-x.com, 37.9% believe rates will increase slightly and 41.4% believe they will fall slightly over the next 30 days. A virtual coin-flip. Stop denying yourself a home that you want out of fear of missing a better deal! If you find a home, purchase it and start earning equity. This is something that you can control!

If you are looking for a home in Louisville, Shepherdsville, or anywhere else in the Metro Area...

I am here to help

Lowes is coming to Shepherdsville

Ok, so this doesn't have much to do with the local real estate market. However, it is great news for Shepherdsville and for me. I do a great deal of remodeling work and this will reduce my travel from 6-7 miles each way to less than 2 miles. Now, if I can just figure out how to get everything I need on the first trip :).

In case you haven't seen the signs, the new store will be located on the Adam Kennedy Parkway.

Buy a home in Louisville, NOW!

As I mentioned on my website, now is a great time to buy a house in Louisville. However, judging from the sales numbers in January, many of you are missing out. Inventory levels are high, interest rates are still low, and sellers are willing to work with you. For home buyers, especially first-time home buyers, in Louisville, this is a dream scenario.

High inventory levels exist in every part of the Louisville area. Whether you are looking in Shepherdsville, Taylorsville, Crestwood, or anywhere in between, you can find a home with the features that you want and don’t have to make compromises. With today’s gas prices, you can save $300-$500 / year just by living 5 miles closer to work.

Interest rates have increased slightly over the last 2 weeks, but are still low. Considering that the median home in Louisville costs $162,000, the difference between a 30-year 6.00% loan and a 6.50% loan is $632 per year. Keep in mind that mortgage interest rates are not tied to the prime lending rate or Federal Funds rate. In fact, as we are seeing right now, mortgage rates tend to move opposite of these indicators. So, don’t think that because the Federal Reserve might lower rates again, that mortgage rates will go down further.

Price is not the only factor to negotiate when buying a home in Louisville. Most homes for sale in Jefferson, Bullitt, and Oldham counties are priced fairly and the average selling price is about 97% of the listing price. However, buyers are still able to save thousands because sellers are willing to help with closing costs, willing to make repairs or pay for upgrades, and / or willing to purchase a Home Warranty. These concessions are potentially worth thousands of dollars to you.

Now is the time to buy. As mentioned above, you can save over $1,000 just because of the number and location of homes for sale and current interest rates. The additional benefits of a home warranty and other enticements can be far more valuable. If you want to search for properties on the MLS, click here. When you are ready to buy….
I am here to help.

Louisville Real Estate: By the Numbers

The following data is a compilation of single family homes listed, pending and sold in the Louisville Metro Area for the previous week. Additionally, 4-5 areas are featured each week to provide a more in-depth look at true 'local' conditions.

Week of (2/10/08)
New Listings: 439
Pending Contracts: 218
Sales Completed: 130
Current Active (2/18/08): 8167

Featured Areas
Area 3: Brownsboro Road / Crescent Hills / St. Matthews
New Listings: 11
Pending Contracts: 7
Sales Completed: 8
Current Active (2/18/08): 184

Area 7: Fern Creek / Hikes Point / Jefferson Town (J-Town)
New Listings: 35
Pending Contracts: 16
Sales Completed: 13
Current Active (2/18/08): 600

Area 19: Spencer County
New Listings: 11
Pending Contracts: 3
Sales Completed: 3
Current Active (2/18/08): 237

Area 20: North Oldham County
New Listings: 11
Pending Contracts: 11
Sales Completed: 3
Current Active (2/18/08): 316

Tips for Louisville Home Sellers: Clean vs. ClutterFree

Look what a difference 10 minutes can make. All of the extra appliances and utensils have been put in cabinets, the top and side of the refrigerator have been cleared, and the soaps, etc have been stored neatly under the sink in a basket. The countertop appears 50% bigger at least.

If you are selling a home in Louisville, Shepherdsville, Mt Washington or Oldham County it is important to know how to properly stage your home so that it sells for the most amount of money in the least time. Tips like these are part of my comprehensive marketing plan to sell your house. Whenever you are ready, I am here to help.

Louisville Home Sellers, Don't Give Your Money Away...

…unless it is for a good cause.

As of today, 9848 single family homes and condos are listed on the MLS for sale in the Metro Louisville Area. This number represents a 10 month supply which, by definition creates a Buyer’s Market.

However, the fact that we are in a Buyer's Market does not mean that you, as a seller, have to be or act desperate. In order to sell you home for the most money in the least amount of time, you need to ...
1) Select a good agent with a strong marketing plan
2) Price the home properly
3) Prepare the home to sell.

Please notice that nowhere above does it say to tell buyers that you are desperate and/or beg them to look at your home and take it from you at any price. Despite this, almost 5% of the homes for sale in Louisville contain the phrases 'motivated' or 'bring all offers. Bullitt County and Oldham County are only slightly better.

When you include ‘Motivated Seller’ or ‘Make an Offer’ in your listing, this appeals to the wrong customer. Before a buyer even sees your home, he or she is thinking about getting a deal and YOU have given them power in the negotiation process.

If you truly need to sell your home quickly, work with your real estate agent to price the house at the lower end of the CMA range and then negotiate fairly with buyers who come because they are interested in purchasing your home not because they are interested in trying to get a great deal.

If you are going to give money away, give it here or here or to whatever worthy cause you choose to support. But, don’t give it to a buyer just because you want to generate traffic.

Use the tools available to you and close a transaction that is fair to everyone. When you are ready to sell your home....

I am here to help.

3 BR Home for Sale in Louisville

6319 Montego Bay Louisville, KY 40218
3BR, 1.5 Baths
$129,500

Relax and escape in this completely remodeled home with new countertops, new appliances (stove, over-the-counter microwave, and refrigerator!), updated lighting and hardware (brushed nickel throughout the home). Additionally, your new house has been completely painted and features new flooring including a ceramic tile entranceway and plush carpet. Both baths have new flooring, new sinks, vanities, lighting and mirrors. The enclosed patio and privacy fence in the backyard provide a terrific place to unwind. For additional peace of mind, the sellers are providing a First American Home Warranty. Agent has business relationship with sellers.

For more info, click here and enter MLS # 1194644

We Are #1

It's not bragging if you can back it up.

#1 in Louisville
#1 in the world

I am here to help.

Sellers: Are you ready?

The cliché “you never get a second chance to make a first impression” is true for home sellers now more than anytime in recent history. Today’s buyers have certain expectations that must be met in order to obtain an offer. Among them, the price must be fair, the house must be in very good to excellent condition, and the home must meet their needs AND wants. Nationally, this is a tremendous change from a few years ago. While not as pronounced, the change is noticeable here in the Louisville real estate market as well.

Depending on where you live in the Louisville area, your property will be competing with as many as 2 times the number of homes for sale as it would have if you sold 2 years ago. This means that if there were 10 similar properties in 2006, there could be 20 now. If all of the houses were identical, the odds of a buyer selecting your home would have fallen from 10% to 5%. Fortunately, all homes are not identical and, even more beneficially, you can help control whether your house will sell.

Selling a home is about creating emotion and reinforcing it with logic. To be successful, you and your real estate agent must work together as a team. If each of you takes care of your responsibilities, the whole process will be rewarding for everyone involved (buyer, seller, and agent). A good agent will make sure that the property is listed at a fair price and will provide exposure so that other agents and interested buyers can find your house easily. A very good realtor will make recommendations for updating or staging your house before it goes on the market. The rest is up to you.

When a prospective buyer comes to your house, will they see an overgrown yard, deteriorating shutters, and a broken down fence? If so, why do you think they would even come in the front door? Once inside, will they find a clean, clutter-free, and well-kept home or will they see dishes on the counter, dirty clothes on the floor, walls in need of painting, etc? If it is the latter, why do you think that they will make an offer? You must make the buyer(s) feel as though they WANT to live in this home. If you don’t, someone else will.

You have but one opportunity to create this emotion, are you ready?

Are you sure?

As always, I am here to help.

Louisville Real Estate: By the Numbers

The following data is a compilation of single family homes listed, pending and sold in the Louisville Metro Area for the previous week. Additionally, 4-5 areas are featured each week to provide a more in-depth look at true 'local' conditions.

Week of (2/3/08)

New Listings: 533
Pending Contracts: 261
Sales Completed: 128
Current Active (2/11/08): 8,136

Featured Areas

Area 2: Butchertown, Highlands, Germantown
New Listings: 23
Pending Contracts: 25
Sales Completed: 8
Current Active (2/11/08): 272

Area 6: Beuchel, Highview, Okolona, Fern Creek
New Listings: 77
Pending Contracts: 23
Sales Completed: 11
Current Active (2/11/08): 781

Area 11: Bullitt County
New Listings: 43
Pending Contracts: 20
Sales Completed: 8
Current Active (2/11/08): 597

Area 21: South Oldham County
New Listings: 17
Pending Contracts: 5
Sales Completed: 6
Current Active (2/11/08): 279