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Podcast: How to Take Advantage of Foreclosures

Mar 31, 2007 Residential

Foreclosures are up almost 60% over last year. For those losing their homes this is certainly a tragedy but for others this is an opportunity to get a great deal on a property.

As I write, Foreclosure.com lists 3,258 properties in Jefferson County as either a Foreclosure, Preforeclosure, Bankruptcy, FSBO, or Deal (whatever that is.) So there are plenty of properties to investigate, if you know what to look for.

That’s where LouisvilleHomesBlog.com comes in. Below is an 8-minute podcast from Kiplingers’s that covers some immensely important points a smart shopper should consider when analyzing your market.

Opportunities in the Housing Slowdown

Then, get out there and find your bargain!

New Home Sales Drop Again

Mar 29, 2007 Trends/Statistics

The Courier-Journal published an article Tuesday that talked about the decline in sales for new construction. On the whole the news is as expected. Some builders are feeling the pain, but the flip side (as always) is that buyers are getting great deals.

From the article:

The weakness in sales was accompanied by a drop in prices, with the median price of a new home falling to $250,000 in February, down 0.3 percent from a year ago.

When you combine that piece of information with:

“Anything under $250,000 has picked up steadily,” said Chuck Kavanaugh, executive vice president of the Home Builders Association of Louisville.

That tells this Realtor more builders need to follow the example set by companies like Ball Homes and Dominion who are catering to the under $250k buyers.

Survey Says: Technology Important, Full-Service a Must

Mar 24, 2007 Trends/Statistics

Isn’t it great when technology can make our lives easier? Of course it is. Which is why so many home buyers and sellers are looking to technology to help them in their important real estate decisions.

A new National Association of REALTORS survey shows:

Buyers used a wide array of resources in searching for a home: 85 percent used a real estate agent, 80 percent the Internet (up from 77 percent in 2005), 63 percent yard signs, 55 percent print or newspaper ads and 47 percent attended open houses.

It won’t be long before the Internet passes Agents as the #1 resource in a home search. Tools that make that process quick and easy are a huge plus. Companies that understand that power of communication tools like e-mail alerts, automated phone information lines and more powerful online listings continue to lead the market.

Another thing this survey highlights is that customers prefer full-service companies, such as Semonin, in increasing numbers.

The survey finds 83 percent of sellers use full-service brokerage, 9 percent limited services and 8 percent use minimal service, such as simply listing a property on a MLS.

The whole article—Survey Shows Buyers And Sellers Use Technology And Want Personal Services— is filled with great information so I recommend you read it all. But I’ll leave you with this last tidbit. Sellers who use Agents are getting more money for their homes than when they try and go it alone.

The median home price for sellers who use an agent is 31.9 percent higher than a home sold directly by an owner; $247,000 vs. $187,200.

Which says nothing about the peace of mind that comes from working with a professional.

Agent Tips for Better Marketing

Mar 20, 2007 Marketing

Even though I wish Claudia Wicks wouldn’t have broken her article up into four pieces (1, 2, 3 and 4) she does present some valuable information for Agents new and old.

Her #3 point—”Failing to Follow Up on Leads”—certainly is a problem solved by an easy solution. Every lead should be categorized and then pursued in order of value. Don’t let the Tyranny of the Urgent dictate which tasks you decide to attack first.

I also believe “Not Knowing What You Get for Your Money” is an important concept to consider. Too many agents these days feel that just because a co-worker put up a bus stop sign, they should too.

Every marketing activity should be attached to a measurable goal. If it’s not, you probably shouldn’t be doing it. A measurable goal could be number of leads, number of new contacts, number of downloads, deals, all the way to revenue dollars.

Like any business, objectives should be quantifiable and regularly assessed then modified. If you follow even a few of Ms. Wicks tips, I’m sure you will realize more successful marketing results.

Steps to Avoid Buyer’s Remorse in Real Estate

Mar 17, 2007 Residential

I read a very nice article on MarketWatch called Buyer’s remorse is common, but here are five ways to beat it. Especially important is 1. Do all the homework. With a decision this crucial, taking the time to cover all the bases is really a no-brainer.

I would add another step. #6. Get Free Professional Advice.

Many times buyers feel like they don’t need a REALTOR because, after all, they know what they like in a house. What buyers need to remember is that, 1) having the professional advice of a REALTOR acting in their best interest is essentially free, and 2) there are likely some properties available for purchase that aren’t listed on Realtor.com.

Because the seller is paying the commission for both their agent and the buyer’s agent, there’s really no reason to go it alone.

The Right Realtor for First Time Buyers

Mar 15, 2007 Residential

I came across this How to Buy Your First House today. It does have some common sense and valuable points, such as setting a budget and finding help, I do have to take issue with the following section:

1. Hire the dumb guy. The top agents want to make money from the top houses. You’re more of a hassle with your small budget. But the dumb guy? He’s not making as many sales. He wants to work for you (especially if he knows you want to upgrade in a few years and will need someone to sell your house and take you out to find a new house). Yet the greatest reason for hiring the dumb guy? He’ll have the inside story on everything. He’s made it to where he is through his people skills. Other agents don’t take him as a serious threat; they look at him as a friendly guy. He’s the one to share a beer with. He’ll joke about beating up cops. Other agents tell him anything. Sure, his words might embarrass the heck out of you. Yet your agent could be the one who accidentally took the key to the new house with him on vacation, so no one else could view your prospective house. Other agents will just laugh at his slip. What a silly guy! Then they might give him some hot tips because “what’s he gonna do?”

The tone of this whole section is overly flippant but I see what the author was trying to say. Sometimes a new agent may be more hungry for a sale, so they will work harder. That’s different from calling an agent “dumb.”

All the same, it’s an interesting take on the subject of buying a first home and the importance of finding a Realtor who’ll work hard for you.

House Hunters Flock to Internet in Greater Numbers

Mar 13, 2007 Trends/Statistics

Four out of five homebuyers use the Internet when shopping for a house, according to the National Association of Realtors. [link]

That’s up from 73% last year. It also underscores the importance of having a presence on the Internet.

Realtors who promote their listings on the Internet with more than just the MLS will be ahead of the game as buyers flock to sites like Realtor.com to narrow their search. When comparing properties, surveys have shown that professionally taken photographs and tons of them, lead the list of must haves.

So to all you sellers out there, make sure to include the following question when you interview Realtors for your listing:

“What kind of online listing will you create for my property?”

Of course, I’m a little biased but I’ve received quite a few compliments on my deluxe online listing.

Top 10 Things to Consider When Planning a Time to Sell

Mar 12, 2007 Top 10 Lists

When Is the Best Time to Sell My House?

If you think this is a trick question, you’d be right. There is no single “best” time to sell your home but by understanding six key factors that influence home sales, you’ll be ahead of the game.

1. Seasonal View

Conventional wisdom says that the best time to sell your home is in the Spring. While it’s true that there are more homebuyers out looking when the weather warms up, that’s only part of the equation. You’ll also want to consider how many homes are currently available to those buyers. If everyone waited until the Spring to list their homes, the market would be flooded with inventory. There is, however, one time of the year when selling your home is very difficult—the Holidays. So unless homes are moving quickly and supply is short, most Realtors^® will advise you to wait until after the New Year to list your home.

2. Supply For That Demand

As we mentioned above, the supply of homes currently on the market greatly affects how quickly a house generally sells. It’s especially important to look at those properties that are similar to yours in price and location. A licensed Realtor^® with access to your local Multiple Listing Service (MLS) can be a big help in identifying these properties. You’re much more likely to sell your home quickly if it’s one of only 10 similar houses compared to one of 100 matching properties.

3. Traffic Patterns

There are a few times where some competition is a good thing. For example, if your home is in the same subdivision as several other properties that are for sale, but your home is priced more affordably or your house has some hard to find, yet desirable features, those other properties can actually drive traffic to your home.

4. Low Interest Rates

When interest rates are low, buyers are able to get more for their money as most homebuyers finance a large portion of the cost of a new home. When more buyers are out looking, they first need to sell their current home so the number of real estate transactions rises. Our current rates for a 30-year fixed mortgage are between 5.5%-6%, which are very low historically. As recently as 1990 interest rates were in the double-digits. So as long as rates stay this low, both buyers and sellers win!

5. Days on Market

One thing all home sellers would like is a quick sale. Not only is it inconvenient for the seller to spend time cleaning the house for every showing, it’s very frustrating as time marches on and your home hasn’t sold yet. Potential buyers who learn that a property hasn’t sold for a long time period often thinks there is something “wrong” with it, which also makes it more difficult to sell. There are times when it makes good sense to take a house off the market, make some updates and possibly lower the price. Check with your Realtor^® for professional advice.

6. Prime Condition

You only have one chance to make a good first impression. We’ve all heard that before, right? The same is true of houses. Don’t put your home on the market if there are fix-it projects or upgrades still to be done. Take care of those first, get the marketing prepared and then launch the listing! Even though the average time to sell a property in Louisville is approximately 6 weeks, all houses receive the bulk of their showings during the first few weeks after the property has been listed.

7. Length of Stay

Each time you buy or sell a home, closing costs factor into the transaction. If you’ve just moved into your current property, another transaction will include another set of closing costs that contribute nothing towards the equity of your property. The longer you live at any address, the more those closing costs are spread out over a number of years.

8. Trendy Trends

There are times in a particular real estate market when certain kinds of properties are hot or “trendy.” Currently, in Louisville maintenance-free, single-story properties are in greater demand as retiring baby boomers are seeking a home that fits them. You’ll be able to get more money than is typically expected when this describes your home. Whether it is the trend towards open floor plans or away from quad levels the perception of properties rises and falls with popular opinion. If your home is currently at one of these peaks, now would be a great time to sell.

9. Family Matters

Sometimes the best time to sell a house has nothing to do with supply and demand, or house condition or any of the above factors. Sometimes you have to sell your house, because a job is forcing you to move to another city. In these cases, it’s very important to price your property appropriately from the start and then market it aggressively. You may want to move your children to a new school district and you want to be in a new house by the start of a school year. There are a number of factors that can also contribute to the best time for your personal situation.

10. It’s Up To You

While likely self-evident, the best time to sell your house is when you really want to. If you’re excited about the opportunity to move, you’ll have more energy to get the house ready for showings and the other tasks that go into a move. When you keep your eyes on the prize at the end of the race, everything goes much more smoothly.

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, Planning to Sell, real estate

Home Ownership Up for 2006

Mar 8, 2007 Trends/Statistics

I received a handful of interesting facts from the National Association of REALTORS® (NAR) today. Let me know what you think.

• The biggest group of home buyers by far is still married couples, accounting for 61% of all homes bought.
• Single women now purchase 22% of all homes. A recent Census Bureau data analysis by the New York Times concluded that 51% of all American adult women now live without a spouse. Women also account for about 57% of all college graduates, almost the reverse of the ratio of 40 years ago.
• Single men account for only 9% of purchases.
• Minority homeowners, who now account for 30% of all homes bought. Homeownership among African Americans grew from 44% to 48%, among Hispanics it grew from 43% to 49% and among Asians from 51% to 60% all during the 10 years leading up to 2005.
• The average age of the largest group of home buyers (Generation X and Y) is 35. The average age of REALTORS® is 57.
• The level of homeownership across the nation currently stands at 72%.
• Second-home buyers from abroad made about $41 billion worth of residential real estate purchases in the United States during 2005.
• Foreign buyers from Germany account for 13% of the total purchases from overseas, the largest foreign group. Latin Americans are also at 13%. Other countries at the top of the list include Japan and the United Kingdom, both at 10%.

In addition to the growth in ownership among minority groups, which is a good thing, it’s nice to see the total ownership numbers increase from 68.9% in 2005 to 72% in 2006.

The downside, which these numbers don’t indicate, is the smaller percentage of equity that owners have in today’s market compared to years past. Credit can be a dangerous thing.

Home, Garden & Remodeling Show This Weekend

Mar 7, 2007 News

Louisville is a great convention city, not just because of it’s nationally central location, but because even local organizations do a good job of promoting great events for the public.

This weekend be sure to take in the Home, Garden & Remodeling Show at the South Wing of the Kentucky Expo Center.

With more than 500 vendors, entertaining demonstrations and informative seminars, there¹s plenty to tempt homeowners to give HGTV a break and head out to the Show the weekend of March 9-11. The Home Show carries a long-held reputation throughout the region for showcasing new products and ideas each year, but this year’s vendors say that national design trends will play a prominent role in what people will experience.

Tickets are $10, Senior Citizens $9 and Children 12 & under free. Head over to the event Web site for more details.

Top 10 Tips for Relocating to Louisville

Mar 4, 2007 Top 10 Lists

Updated: 5/15/2009

As with our other Top 10 Lists, here at LHB we want to make sure you have the best possible information.

Relocating from one city to another is a major life change and can bring along a great deal of stress. Follow these helpful tips and you’ll be better prepared and far more relaxed… we promise.

1. Be Financially Smart

Not all cities are created equal, especially when it comes to their cost of living. Before you purchase a home make sure you’ll be financially prepared to live in this new city. Money Magazine’s Cost of Living Calculator makes it easy to see how a particular salary compares from one city to the next. Louisville typically favors very well against most of country.

2. Scout the Schools

If you have children, I’m sure you want them to attend the best possible schools. Your Realtor® can help you find a home in the district of the school you desire to send them. The Wikipedia has a very thorough list of schools in Louisville that you can browse on your own. (See also my own Louisville Schools page.) You can also check out the Jefferson County Public Schools site for more information. Depending on current enrollment, certain schools are near full capacity. If you want to get your child into one of these schools, it’s good to be proactive and submit the appropriate paperwork early to give your student the best possible opportunity to be accepted.

3. Check Out the Fun

There’s a lot to do in any city. Finding the best activities that fit your interests will get you off to a great start. Moxy.tv has started a big stir with their short video clips that focus on Louisville’s local scene. Sites like the Courier-Journal’s Scene cover events and entertainment, in addition to the typical news items. Louisville is known for its world famous horse racing. Churchill Downs has both spring and fall meets that attract thousands of racing fans. Fourth Street Live is a fun way to spend an evening with great restaurants, clubs and recreational activities.

4. Make a To Do List

Once you’ve bought your home, it pays to be organized. A To Do List will help you keep track of the little details and cover all the bases. Start with items that can be done early in the process, such as planning for temporary housing if you can’t immediately move into your new home when you arrive in Louisville. Then list other tasks chronologically, so that you’ll be able to chart your progress all the way up to moving day. A To Do list will help bring some sanity into the craziness of moving.

5. Ask For Help

Moving is a big job. It makes sense to ask friends or family members to help with certain jobs. Have someone take your children out for pizza while you are packing up your home. Then there’s the always unpopular request for help actually lifting boxes into the van. Consider yourself lucky if you have these loyal helpers because it’ll make the job a lot more fun. If you know someone who already lives in Louisville, they can help by visiting properties and reporting important information back to you. When it comes to moving, the more the merrier.

6. Find the Right Moving Company

When the day of the move finally comes, the last thing you want is for your movers to let you down. The cost of entry into the moving business isn’t especially large, so there are a good number of relatively new or unknown moving companies vying for your business. Sites like Epinions can help you learn what others thought of their moving company and whether or not they’d use them again. It’s also a wise move to check with the Better Business Bureau, who can alert you to complaints against companies in the area.

7. Need New Necessities?

Moving to Seattle? Better buy an umbrella or three. What about Louisville? One of the grand things about Louisville is that we get to experience all four of the seasons. Summers aren’t generally blistering hot like the Southwest but have temperatures that average in the mid-to-high 70s, while our Winters average above 32 degrees. So if you’re coming from another region and you’re not accustomed to the changing of the seasons, you might need to stock up on warm sweaters or several new swimsuits.

8. Make Utility Appointments

There are usually a million and one things to remember when moving, so why not set up your utility appointments ahead of time? Some people would rather be without food than their television, so if this describes you, contact either Louisville’s local cable provider—Insight Communications— or Dish Network or DirecTV for satellite service. Here are some additional utility contacts you’d likely want to contact ahead of time:

• Louisville Gas and Electric
• BellSouth
• Louisville Water Company

9. Temporary Housing

Some times it’s not possible to move directly into your new home and you need temporary housing. Thanks to the Internet, Web sites like Apartments.com make it easy to find information about Louisville apartments. Other options include Extended Stay Hotels or corporate housing with a group like Oakwood that will have you living in style while you wait for your new home to become available.

10. Change Your Address

Make sure to complete the appropriate form with the United States Post Office so that you’re mail will be forwarded from the previous address.

We hope these tips have sparked your thinking. If you have any great tips of your own, please post them in the comments below. We wish you the best possible move to Louisville!

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, relocation services

Title Company Fraud in Louisville

Mar 3, 2007 News

The negative example of Derby City Title and their fraud, creates a valuable lesson for home buyers. Not only should we be buying title insurance where 20 years ago that was a rarity, we should be buying it from a reputable company.

Companies like Derby City can pop-up out of nothing because barriers to entry are so small. Now families are on the brink of disaster.

Seven families could lose their homes any day now, even though they did nothing wrong. They made their house payments on time, but their homes are still going into foreclosure.

One of the reasons I chose to affiliate with Semonin Realtors is because they’re part of Home Services. Home Services is a very large organization with companies that cover every facet of the real estate transaction. From the real estate agent, to the mortgage, to title insurance, to appraisers and more—they’ve got it covered.

With a decision as important as buying a house, you certainly want to work with a reputable company and not get scammed. Calamity is just a single bad choice away.

Website Claims Louisville Housing to Fall 3.4%

Mar 2, 2007 Trends/Statistics

Anyone who deals with forecasting the future understands that it’s not an exact science. There are just too many variables. In other words, it’s tough to bet against the house and win.

Like trying to predict a sports contest or the stock market, predicting housing trends is also a risky business. The website, Housing Predictor, has recently launched to try and tackle this beast. Because it is relatively new, we can’t assess their accuracy just yet but it’ll be interesting to follow their performance over time.

So what are they predicting for Louisville?

The median price for a single family home in Louisville stands at $142,000 and should fall slightly just 3.4% through 2007.

That’s not a very sunny picture for all of us homeowners, is it? I’ve got a prediction of my own. I’ll give you 2-to-1 odds that we beat their forecast. Any takers?

Old Versions of Internet Explorer Didn’t Like LHB

Mar 1, 2007 News

Wow. I had no idea that IE 6 hated this WordPress theme so much. Guess that’s on me for not moving to the new version too quickly.

Update: I’ve spent a couple of hours fine-tuning this theme to my liking. Pardon the abrupt changes.