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Top 10 Tips for First-Time Home Buyers

Jan 24, 2007 Top 10 Lists

Updated: 5/15/2009

Buying a house can be intimidating. But it doesn’t have to be! Here at Louisville Homes Blog we’ve compiled the Top 10 Tips for first time home buyers. They are presented in chronological order. If you have any questions, please contact us and we’ll certainly get back to you.

1. Should I Even Buy?

There is nothing wrong with renting and in many cases it’s the smart move. A critical factor to consider is how long you expect to live in the house. Some experts believe that you’ll need to stay for at least 36 months. Of course, that will depend on the price you pay for the home, it’s current value and rate of appreciation.

It is good to note that in today’s “easy” credit environment, lenders are increasingly willing to loan large sums of money to purchase a house with a very small down payment. So, just because you don’t have a lot of money available for a down payment, it doesn’t mean you can’t buy a house.

Update 5/15/09: While creditors are still out looking for new customers, the days of loaning money to anyone with a heartbeat are past. Getting Pre-Approved is a key step to buying a home and shouldn’t be ignored.

2. Get Professional Help

No, we’re not talking about a therapist, but instead, real estate professionals. After the decision to purchase a house is made, the next thing you should do is find a quality agent—someone who understands the process and the market; someone who’ll work well with you to find that perfect house.

Then ask your Realtor® to identify a reputable lending company. Having these professionals on your team will ensure that your first-time home buying experience goes smoothly and that you make the best decisions possible.

3. Locate the Location

You can save yourself a great deal of time and energy by narrowing the field of properties you are considering. Start by identifying the part of town in which you’d like to live. Take time to consider its proximity to your job, shopping, major highways and schools, if you have children.

Also note whether an area is growing or not. Would you prefer to live in the hustle and bustle of a expanding area or would you rather find a more secluded, quiet location away from crowded roadways and busy shops. Your Realtor can help you with this. The last thing you want to do is purchase a home that doesn’t fit your lifestyle. Remember what they always say, “Location, location, location.” Yes, it’s that important.

4. Create Your Master List

One of the toughest tasks with any purchase decision is determining whether something is a want or a need. If you identify these features from the outset, before you’ve looked at a single property, then your list will have been made objectively and you won’t be susceptible to last minute temptations.

For example, if you didn’t list a inground hot tub as a need (or even a want) on your Master List, then when you visit a property that has one, you’ll be able to correctly assess the overall home and not let a single feature skew your perception.

5. Get Pre-Approved

Before you visit a single property, you should take time to sit down with your lender and determine what you feel comfortable borrowing to purchase this home. (Getting quotes from multiple lenders is even better!) Pre-qualification is a quick process that doesn’t go far enough. Pre-approval is much more thorough and basically says, Lender A with loan you “X” dollars for a house in a specific price range. It’s not the final say so but it is what most real estate professionals consider as legitimate. It doesn’t take much time and will help you zero in on the price range that is custom-fitted to your financial situation.

6. Visit Some Properties

Nothing will give you a feel for a home like visiting it in person. Have your Realtor® set up a few showings and enjoy the process. Hopefully you’re not under a time constraint and the viewings will be a fun experience. Only by visiting a few properties will you start to get a good feel for the kind of properties that exist on the market in your price range and in your desired geographic location. Don’t expect to find your dream home the first trip out. Today’s statistics show that home buyers visit an average of 10 properties before making an offer.

7. Educate Yourself

Your Realtor® will always be your most valuable resource, but you can also take advantage of the Internet in the following ways: learn more about a specific property/area; take virtual tours of houses before physically visiting them; compare characteristics of multiple properties in order to make a more informed decision.

The Internet has revolutionized the real estate industry and has given home buyers and sellers access to information that was previously unavailable. Sites like LouisvilleHomesBlog.com are free and full of targeted information for home buyers and sellers in Louisville, KY.

8. Negotiate The Deal

When it comes to negotiations, having an experienced Realtor® is vital. Understanding how the negotiation process works and the intricacies of how to best frame an offer can sometimes be the difference between getting that dream house at a price you can afford or completely missing out.

One other point, always make your offer contingent on a home inspection. (This is standard in the GLAR’s standard contract.) Your agent can recommend a good home inspector and the costs are relatively low. You certainly want to know about a leaky basement before you purchase that house… not after.

9. Insure Your Valuables

Now that you’ve got a house, you want to have it insured, right? That goes for your home’s title as well. Title insurance is relatively cheap and is becoming more and more important in today’s litigious environment.

10. Close and Move In!

It’s finally here—the big day! A house closing isn’t the most exciting experience but it’s the necessary, final step in home ownership. Then you get to move in. Hopefully, it won’t be raining and the movers won’t break (or lose) a single item.

Congratulations, you are officially a homeowner!

Tre Pryor, a lifelong resident of Louisville, is a Realtor® with Rick Shaw Realtors. A graduate of the University of Louisville with a degree in Marketing, he has 23 years of professional experience, that includes consulting Fortune 200 companies. He uses his Internet expertise to help his real estate clients realize superior results. Mr. Pryor lives with his wife, three sons and daughter in the Springhurst area of Louisville.

Tags: Kentucky, Louisville, real estate

Clark Co. Gets Delay on Tax Bill

Jan 21, 2007 Residential

Due to a delay in a study on home sale prices, the deadline for Clark County property taxes is going to be pushed back. Paying taxes later? I say, that’s a good thing.

Foreclosures Drop in December

Jan 19, 2007 Trends/Statistics

While it’s merely a dip in the growing trend, it’s still good to see that:

Foreclosures in Kentucky dropped 3.2 percent from November to December 2006…

even while:

…but rose nearly 40 percent from December 2005 to December 2006, according to the latest report from RealtyTrac. [link]

As our country continues to increase their total debt, we’ll continue to see more and more families lose their homes to foreclosure.

Louisville Home Prices Rising Faster Than Pay

Jan 16, 2007 Trends/Statistics

The Courier is reporting that home prices in the Greater Louisville area are growing faster than a typical worker’s salary:

To afford a median-priced house in the Louisville area in 2003, a buyer needed to make at least $41,141, according to the housing policy center. That amount had increased by 6 percent to $43,764 in 2005 and by 19 percent to $48,816 last year.

The median salary for a worker in the metro area was $27,269 in 2003, according to the Bureau of Labor Statistics. It rose by 3.5 percent to $28,226 by 2005, the most recent year for which data are available.

Builders should be aware of this trend and would be wise to focus on the Starter Home niche.

Great Tips for Selling Your House

Jan 15, 2007 Residential, Trends/Statistics

Steve McLinden is a Real Estate Advisor with Bankrate and he feels that ‘07 is going to be a huge year for buyers of real estate. So for the sellers among us, he’s put together a list of 7 Selling Tips for the Down Cycle:

1. Price to sell.
2. Consider all credible offers.
3. Offer to proffer.
4. Catch the wave at the source.
5. Preserve your equity.
6. Gain in a sell-buy scenario.
7. Stay if possible.

#1 is always the most important factor in selling a home and it’s even more important when there is high inventory like we currently have now in the Greater Louisville area. His other tips are valuable as well, because in this market, buyers are going to be pressing for every advantage. Good stuff Steve!

Major Case Nears Judgement

Jan 13, 2007 Trends/Statistics

Looks like we’ll have our answer one way or another in the next few weeks as a suit brought by California real estate brokers Marcus & Millichap will be given to U.S. District Judge Charles R. Simpson III for judgement. They claim our current practices (which are common to many states, by the way) are protectionist.

“I would expect in short order the judge would order (oral) argument and then take it under submission,” said assistant state Attorney General Robert Jones. [link]

What’s so difficult to understand about the rule? If you want to buy or sell property in a state (unless it’s your own), then you need to be licensed in that state. Seems pretty reasonable to me.

Housing Predictions for ‘07

Jan 11, 2007 Commercial

According to this article by author Tom Kelly, here are some of the hot items on the slate for 2007:

• Savvy buyers: Taking advantage of the continued buyer’s market.
• Better pricing: Sellers will realize that the asking price is your #1 selling advantage.
• Upscale garages: A 3-car garage is the new black.
• Caving: Personalized space for a single person.
• Dual home offices: Maybe not this year, but we’re headed in that direction.

What’s on the way out? How about:

• Selling a home “as is”. Lazy sellers won’t be maximizing anything.
• Buyer incentives: Not sure I agree with Mr. Kelly on this one because certain creative incentives can close a deal fast.
• Laminate floors: Again, there’s a time and place for laminates and they do hold up much better to traffic than hard wood.

For the full article, visit Upscale garages ‘in,’ buyer incentives ‘out’ for ‘07.

Top 10 Ways to Prepare Your Property For Sale

Jan 9, 2007 Residential, Top 10 Lists

Updated: 5/15/2009

There are literally hundreds of ways to enhance your property’s image for prospective buyers. Here at Louisville Homes Blog, we’ve identified the Top 10 Ways to Prepare Your Property For Sale to save time and get you closer to your goal of selling your home fast at the highest possible price.

1. Cleanliness Is Crucial

Perhaps something as simple as cleaning the house may seem a natural thing to do, but you’d be surprised at the number of homes that aren’t thoroughly cleaned before a showing. Pay special attention to the kitchens, first floor bathrooms and any other area where a potential buyer may be closely inspecting.

2. Landscape Works Wonders

When the lawn is cut, the planting beds are clean, the sidewalk and driveway are clear, your home is telling buyers that its current owners have taken great care of it. When prospective buyers arrive, the first impression your home will communicate to them is that this house is in great shape.

3. Organize the Clutter

While a clean house is a top priority, removing clutter by organizing household items into bins or containers compliments the cleaning process. Large plastic bins with lids can be bought inexpensively at most home improvement stores and really help in organizing basements and garages. Be careful not to toss everything into a closet as most buyers will be peeking inside those, as well.

Don’t be afraid to throw things out or donate items to charity if they still have some life in them.

4. Lights, Camera, Action

How often do you hear people praise a home for being “so light and airy”? It’s clearly something most buyers are evaluating. So make sure to replace any lightbulbs that have burned out (inside the house especially) and make sure to turn them on before a showing. Remember to open all curtains and blinds to let in the natural light too!

5. Appealing Aromas

You can enhance the experience of visiting your home not only be removing any foul or negative odors, such as litter boxes or ash trays, but by creating wonderful aromas with fresh-baked cookies or bread. It may sound clichéd but you should take advantage of every trick in the book to make your home attractive to potential buyers. You never know what just might be “icing on the cake” for some buyers.

6. Give the Pets a Vacation

Believe it or not, not everyone loves your prized, family pet. It’s generally considered a good idea to take your pet to a friend or relative’s house during a showing. Not only will a possible distraction be avoided, but buyers will be less likely to consider the wear and tear a pet may have caused to the home they are considering if there is no pet present to remind them. It’s a win-win situation!

7. Repair Wisely

Things like garage doors, screen doors, door knobs/handles, or other functional items should be in good working order. Other repairs, such as updating a dishwasher might not be a smart move. You should consult with your Realtor® about the particulars of each issue before deciding which items you’ll choose to repair.

8.Consider Off-Site Storage

Taking items typically stored in a basement or garage and moving them off-site is a wonderful idea that increases the perceived size of those areas. Since you’re planning on moving in the near future, relocating boxes filled with Christmas decorations or other home furnishings to temporary storage gives you a headstart on the move and enhances your current home to prospective buyers.

9. Safeguard Your Valuables

Thefts during open houses have been known to happen, so make the effort to store any valuables away during a showing. Things like wallets, purses, jewelry or portable electronic devices can be easily tucked away in a drawer or cabinet, or better yet, safely locked away. This also helps to clear away clutter which is always a good home preperation practice.

10. Turn Off the Noise

If you have any appliances or ceiling fans that are particularly noisy, it’s best to have them repaired, or at least turned off, during a showing. This also goes for audio coming from a TV or radio. Rather than trying to guess what style of music your buyers may like, it’s often better to have nothing playing at all and let the house speak for itself.

We hope these tips have sparked your thinking. If you have any great tips of your own, please post them a comment below. Good luck on selling your home!

Tre Pryor, a lifelong resident of Louisville, is a Realtor® with Rick Shaw Realtors. A graduate of the University of Louisville with a degree in Marketing, he has 23 years of professional experience, that includes consulting Fortune 200 companies. He uses his Internet expertise to help his real estate clients realize superior results. Mr. Pryor lives with his wife, three sons and daughter in the Springhurst area of Louisville.

Tags: Kentucky, Louisville, real estate, Selling Your Home

Kentucky Maintaining Population Balance

Jan 9, 2007 Residential, Trends/Statistics

According to a United Van Lines migration study, Kentucky’s population is holding steady. Tennessee has been gaining, whereas, Indiana and Ohio are losing population, according to the movers research.

Our neighbor, Tennessee, has consistently held a tax advantage which draws in more businesses, which in turn, draws working families. So if Governor Fletcher can gain some support for his tax reforms, Kentucky could gain even more ground.

Restaurants Add Internet, Agents Are ‘Lovin’ It’

Jan 7, 2007 Trends/Statistics

Now that McDonald’s are joining the Internet revolution, real estate professionals are getting another access point to their clients and the information their clients demand.

Steve Stratton, a McDonald’s franchisee with restaurants in Prospect, Ky., and Memphis, Ind., said the service has become popular with real estate agents meeting with clients. He said the flat-screen TVs are so popular with sports fans that he would never again build a restaurant without them.

You got that right Steve. Wendy’s? Are you listening?

Sokoler Group Tries Hand at Blog

Jan 7, 2007 General

Personally, I think it’s a great idea—a blog devoted to Real Estate here in Louisville. Which is why, of course, I started this one last month. Looks like someone else likes my idea as well.

But you might want to have an expert take a look at these technical problems as some images aren’t displaying and when you try to view them, you’ll get a scary warning like this:

Real Estate Outlook Improving

Jan 4, 2007 Trends/Statistics

While looking at things nationally, economists are expecting 2007 to be a better year for real estate. Louisville didn’t experience the big downturn of the major cities, so as they’ll experience a larger uptick, we should see small but steady improvement as sellers look for new and creative ways to make the deal.

After all, rates are still at historically low marks.