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Best Louisville Neighborhoods: Alia

Jul 14, 2009 Neighborhoods

Alia is a small but unique subdivision in Louisville’s East End. These high-end single family homes and condos are truly luxurious. Located just off Highway 22, near Northfield and the Woods of St. Thomas, Alia is in a great location, near shopping, restaurants and the expressways. This neighborhood began in the last 90s and is nearing completion now. Read More »

Tags: Alia, best louisville neighborhoods, Kentucky, Louisville

Positive News For Home Sales

Jun 4, 2009 News, Trends/Statistics

The Wall St. Journal is now talking about positive news regarding the housing market. There’s a change! But even this news, while positive, isn’t especially noteworthy.

In another sign that the housing market may have begun to recover, the number of people who signed contracts to purchase homes increased for the third month in a row.

The reason that this isn’t a big deal is that this data is seasonal—home sales increase from January to February; from February to March; and from March to April most every year, good market or bad.

But here’s the good part.

Year over year, the index was up 3.2%. The 6.7% monthly increase was much larger than the 0.5% gain analysts had projected.

The national year-over-year increase was far greater than analysts had projected. This is great news for home sellers in Louisville. But for buyers sitting on the fence, they should be seriously thinking about making their move now before home prices readjust upward, interest rates climb or they miss out on the government incentives.

Tags: Kentucky, Louisville, Wall St. Journal

May 2009 Home Sales in Louisville, KY

Jun 2, 2009 Trends/Statistics

Mixed again this month as East End areas are up and those to the South are down. If you didn’t see, here is last month. This is the last time I’ll post about this but if you haven’t read Louisville Kentucky Real Estate Review of 2008, here’s your chance.

Like always, if you have any questions, please don’t hesitate to contact me.

May 2009

AREA	SALES	AVERAGE	DoM
0 Central Downtown District	2	$109,000	69
1 Downtwn/Old&WestLouisville/Shively	78	$44,204	66
2 Butchertown/Highlands/Germantwn	75	$158,728	70
3 Brownsboro/StMatthews	65	$205,909	60
4 Pleasure Rdg/Valley Station	48	$80,877	69
5 Auburndale/Fairdale/Iroquois Park	47	$115,526	77
6 Buechel/Highview/Okolona/FernCreek	107	$127,435	85
7 FernCrk/Hikes Point/Jeffersontown	97	$159,955	80
8 Hurstbourne/Middletwn/Anchrg	71	$225,074	111
9 Anchrg/Lyndn/Prospct/UpRvrRd	81	$237,845	97
11 Bullitt Co.	53	$144,169	99
19 Spencer Co.	12	$187,585	177
20 Oldham Co. – North	22	$215,236	121
21 Oldham Co. – South	27	$219,656	114
30 Shelby Co.	29	$145,524	60

Source: MetroSearch, Inc. Values are not warranted by LHB.

Tags: home sales, Kentucky, Louisville, May 2009

Louisville Homes Bargains: Area 9

May 28, 2009 General, News

Location in Louisville

Area 9 in Greater Louisville’s MLS consists of such areas as Anchorage, Glenview, Lyndon, Prospect, Springhurst and many others within Jefferson County.

Winner of Best Bargain

Now I know it might be tough to swallow that a $697,300 property could possibly be a best bargain. But you have to understand that this house is on almost 3 acres in Anchorage, one of Louisville’s most affluent neighborhoods. Add to that, this is a unique, custom-built home is actually in great shape. One would expect that by updating a few things this home could appreciate significantly as we come out of the housing depression.

1800 STONE GATE RD – $697,300
57 Years Old, 3 Bedrooms, 4 Baths, 3,968 AG Finished Sq. Ft.

Other Good Deals

• 4342 ACCOMACK DR – $165,300
• 10407 SANDBOURNE WAY – $179,900
• 5801 WAVELAND CIR – $208,000
• 7005 FOXCROFT PL – $249,900
• 13203 SYCAMORE FOREST CT – $289,900
• 6101 HUNTING RD – $339,950
• 10413 WORTHINGTON LN – $465,000 (Rick Shaw Realtors)
• 2901 DOTSON DR – $759,000

Tags: Anchorage, homes for sale, Kentucky, Louisville

Best Louisville Neighborhoods: Glen Lakes

May 27, 2009 Neighborhoods

Glen Lakes is new neighborhood in the popular Eastwood area of eastern Louisville, Kentucky. Just east of Middletown and Lake Forest, Glen Lakes is building new, single-family homes with Elite Homes and McBride Homes.

Close to the Polo Fields, the Flat Rock Road area is really booming with several new developments all getting started recently. New homes start in the low $300s and go up from there. This is a lower price point than Locust Creek just a bit down the road. If you’re looking for homes less than three years old in this price range, head to Glen Lakes to see what options are available for you, or give me a call and I’ll help you. Read More »

Tags: best louisville neighborhoods, Glen Lakes, homes for sale, Kentucky, Louisville

Top 10 Ways to Find a Louisville Real Estate Bargain

May 22, 2009 News

In today’s market, the play of the day is finding a real estate bargain. You can’t walk out your front door without hearing about Foreclosures, Short Sales or any number of distressed properties. Most of this is coming from people trying to sell you their “special” list of properties.

Louisville is no different than any other city in the U.S. except that we don’t have nearly the number of these homes as do places like Las Vegas, California and Florida. (I’ve linked to this before, but I love colored maps. Here’s MSN’s Interactive Foreclosure Map.) But that doesn’t mean Louisville has no bargain buys. So for that reason, I’ve written Top 10 Ways to Find a Louisville Real Estate Bargain.

10. Above Normal Appreciation

What if you can’t purchase a home below it’s current market value but… can purchase a home that will appreciate at a faster rate than everyone else once you own it? Then that’s a deal too! Like any task that includes predicting the future, this is a tough job. Having a wealth of experience and a long-term view can make this possible but it’s often easier said than done.

9. Property Infringement

There are times when the government comes in and requires a property owner to sell a portion of their land via eminent domain. Usually this is for a road, highway or airport expansion of some sort. These sellers are anxious to sell before the work crews come and buyers can usually get quite a bargain. Just remember to do all of your due diligence beforehand, so that you fully understand the extent of the government work and are happy with that outcome before purchasing one of these homes.

8. City to City

Most people do not have the luxury to choose where they live due to job requirements. But if you are one of the lucky ones, selecting a city with great bang for your buck home prices, then you can land yourself a real estate bargain. Louisville didn’t make MSN’s 2008 MSN Real Estate best bargain markets but for years, Louisville home values have been very attractive compared to the rest of the country.

Back in December I posted Louisville Weathers the Housing Crunch; Beats Cincinnati, Indianapolis where only Nashville and Knoxville beat Louisville when comparing similar sized cities in our region. That means Louisville home values are better than Cincinnati, Evansville, Columbus, Indianapolis and Memphis.

7. Looking Ahead

In every city there are hot spots. Certain neighborhoods are more desirable than others. This changes over time, but a good Realtor® with experience can tell you which areas are currently drawing the most interest. For example, here in Louisville, the Highlands extremely popular with younger home buyers. If you’re looking to find a real estate bargain, do not purchase a home in this area, you won’t get a deal. Instead, you’ll likely overpay.

But a wise shopper will look at the surrounding neighborhoods to see where the hot trend might spread once everything has bought up in the first area. Frankfort Avenue and Clifton are neighborhoods near the Highlands. They both carry many of the same character traits and prices haven’t yet spiked for these areas like they have for the Highlands. These areas are good bets for finding yourself a real estate bargain.

6. Uniformed Sellers

For the most part, For Sale by Owners (FSBO) properties don’t meet with much success. I wrote a piece called Top 10 Things to Consider When Contemplating a FSBO that highlights some of the difficulties that FSBO’s encounter.

Every good Realtor® will tell you that the most important thing in selling a home is setting the proper asking price at the start. FSBO’s usually don’t accomplish this task. Usually they’ll overprice it, which only hurts their chances with the smaller number of people who’ll see their home. But every once in awhile, they’ll under price their home. That’s where a bargain can be found for the astute buyer.

5. Auction Properties

Going to a real estate auction might seem a bit strange to many, but there deals to be had if you’ve done your homework. Generally speaking, these properties have some kind of problem that kept them from being sold in the traditional manner. Wardlow Auctions does a good number of auctions here in town, as does ReMax 100.

4. Non-Trendy Styles

Louisville is, for the most part, a traditional city. We don’t have much in the way of ground-breaking design being created with our new construction. (Well, except for Museum Plaza.) So while a majority of homes share similar styling, many do not. These properties are overlooked by the majority of home buyers. This makes them prime targets to our bargain hunters. If you see a contemporary home for sale, chances are you’ll be able to purchase this property at or below it’s true value.

3. Relocation Nightmares

For a home seller, a relocation can be a monstrous event. For the home buyer, it can be a wonderful opportunity. Nothing pushes negotiating in the buyer’s favor like a seller who needs to be in Topeka by the first day of the next month. Their loss is almost always your gain.

2. Days on Market

Days on Market (DoM) is the total number of days that a particular property has been for sale. It just stands to reason that the longer the seller has been trying to sell, the more anxious he or she is to get it sold. These kind of sellers are much more likely to drop their asking price even further if someone (anyone!) will come and take this property off their hands. If that doesn’t sound like a bargain waiting to happen, I don’t know what does.

1. Fixer Uppers

Fixer Uppers are sometimes called Handyman Specials because whoever buys this house is most certainly going to need some work done on it before it’s ready to be lived in. Spotting these properties isn’t too difficult at most real estate agents will identify these properties as such in their listing descriptions. I would throw “As Is” properties into this category as well.

Due to the fact that in today’s market most buyers want “move in ready” homes, these fixer uppers generally are discarded from their search list. That means some lucky buyer, who has properly inspected the home’s structure and other vitals, is likely going to get one heck of a deal!

It’s important to note that while I’ve given you the best ways to find a bargain, finding them can still be tough. I wholeheartedly recommend that you take full advantage of your Realtor® to help you track down the deals.

If you don’t currently have a trusted Realtor®, please feel free to contact me. We can chat or meet for coffee. Buyers pay no commissions to agents so it rarely makes sense for any buyer to go it alone.

Tags: Clifton, Franfort Avenue, FSBO, Highlands, Kentucky, Louisville

Louisville Homes Bargains: Area 8

May 20, 2009 Bargains

Location in Louisville

Area 8 in Greater Louisville’s MLS consists of such areas as Douglass Hills, Hurstbourne, Middletown, Anchorage and parts of St. Matthews and many others within Jefferson County.

Winner of Best Bargain

As I was compiling my data for this post, one of the contenders for best bargain, a little ranch in Douglass Hills, went under contract and sold at an amazing price of $170,000. But never fear! This home in Lake Forest is quite the bargain too! It’s tough to find a quality home in Lake Forest near $300k but this one is priced to sell. Golf course view, finished basement. It should have already sold!

14808 FOREST OAKS DR – $315,000
17 Years Old, 5 Bedrooms, 4.5 Baths, 2,652 AG Finished Sq. Ft.

Other Good Deals

• 11109 HARRODS CREEK CT – $229,900
• 412 NICKLEBY WAY – $239,900
• 10401 FLORIAN RD – $265,000
• 1105 GARDEN CREEK CIR – $319,000

Tags: Anchorage, Douglass Hills, homes for sale, Hurstbourne, Kentucky, Louisville, Middletown, St. Matthews

Which Louisville Homes Are Great Deals?

May 19, 2009 General, Trends/Statistics

If you’re “old” like me, you might recall the phrase: “a stitch in time saves nine.” Or a more contemporary, “You can pay me now, or pay me later” from a Fram oil filter commercial. My point is doing your homework up front saves both time and money. It’s the smart thing to do and in real estate, it’s essential if you want to make a smart buy.

Just because the housing market has taken a dip here in Louisville, doesn’t mean that every property’s asking price is a good deal. Sure there are bargains to be found, but doing the research is the key to determining which homes are amazing deals and which are price at market value.

Louisville Isn’t Las Vegas

First, buyers need to understand that Louisville doesn’t have the large cycles of places like Florida, California or the gambling capital of Nevada. So when our prices dipped in 2008, it wasn’t a large drop like we saw in those cities, but rather a very modest drop of -2.7%.

Local expert, John Cosby, agrees:

“The market in Louisville has not been that bad, so to recover, it doesn’t have to come that far and I think in the next three years, you’re going to see real estate values go way up,” said Cosby.

A great deal of information is readily available, for free, on the Internet. But consider the source. Some information is slanted to paint a particular picture and ultimately get you to pay a subscription fee. A good number of free foreclosure lists are merely that, ploys. Because foreclosures are a hot topic in the media, scam artists play on that and catch a good number of unsuspecting victims.

At the end of the day, it’s best to get your information from an expert. A Realtor® has both the access to the data, as well as, the Code of Ethics (.pdf) to utilize it in an appropriate manner.

If you truly want to find a great deal in Louisville real estate, I recommend that you speak with a Realtor® today. Then you’ll be in the best position to take advantage of this market before prices return to normal.

Tags: Code of Ethics, John Cosby, Kentucky, Louisville, Realtor, tre pryor

Louisville Homes Bargains: Area 7

May 13, 2009 Bargains

Location in Louisville

Area 7 in Greater Louisville’s MLS consists of such areas as Fern Creek, Hikes Point, Jeffersontown, Hurstbourne and many others within Jefferson County.

Winner of Best Bargain

I selected this property because of the great price even without it being a distressed property. While the home could use some updates, it’s definitely not an “As Is”. This property is located in Hikes Point and it’s very centrally situated in a private gated community called South Fork Place, where homes rarely go up for sale. Someone is going to get a great deal, could it be you?

7403 DIEHL CT – $267,500
14 Years Old, 5 Bedrooms, 4 Baths, 3,346 AG Finished Sq. Ft.

Other Good Deals

• 9205 WATTERSON TRL – $148,900
• 6722 BLUFFVIEW CIR – $167,000
• 10531 BLACK IRON RD – $239,900
• 11210 SEWELL DR – $275,000
• 11103 HERRING CT – $275,000
• 11620 SILVER RIDGE LN – $299,900
• 6604 SYCAMORE BEND TRC -$388,000

Tags: Fern Creek, Hikes Point, homes for sale, Hurstbourne, Jeffersontown, Kentucky, Louisville

Louisville Weathers the Housing Crunch; Beats Cincinnati, Indianapolis

Dec 9, 2008 Residential, Trends/Statistics

My thanks to a reader who thoughtfully sent this in. The Wall St. Journal does certain things very well. One of them is their “handy-dandy” charts. The other is their in-depth analysis. This time with Shrinking Prices, Rising Delinquencies, they only batted .500. This was due in large part to the chart not working properly.

That’s OK, we’ll forgive them because this piece wasn’t hidden behind a subscriber log-in.

So how did we do? Since the housing market peak in the 4th quarter of 2005, the median home price in Louisville, Kentucky is up 3.2%! Now, this isn’t the 4-5% annual appreciation we’re used to seeing in our city but in a housing recession that many are calling the worst of 50 years, I’ll take it!

It’s always helpful to compare data from Louisville with other cities of similar size in our geographic region.

Relative to price at U.S. housing market peak (%)

Nashville, Tennessee 106.6
Knoxville, Tennessee 105.1
Louisville, Kentucky 103.2
Cincinnati, Ohio 99.9
Evansville, Indiana 98.2
Columbus, Ohio 97.8
Indianapolis, Indiana 97.1
Memphis, Tennessee 95.4

Turns out Louisville performs better than some, worse than others.

Louisville’s delinquency rate of 3.30 is less than the national average of 3.86 and the rate of that change also trails the national average, which is a good thing.

Should I Buy?

I’m not going to say that everyone should be buying real estate this year. It’s a complicated decision with many variables. But what I do know is that depending on your personal situation, now is a great time for families looking to move up in overall home value. In this housing market, those families will realize a substantial financial benefit. Here’s why:

“The amount you will likely lose in the sale of your current home will be more than surpassed by the amount you save on the purchase of a more expensive home.”

When you couple that fact with interest rates, assuming you can qualify, which are towards the bottom end of historical lows, making this kind of move in our market is a wise decision.

However, if your personal situation says you need to downsize or make a lateral move, then from a financial perspective, this is not the best time for you to make a move.

Tags: Kentucky, Louisville, median home value, real estate, Wall St. Journal

November 2008 Home Sales in Louisville, KY

Dec 2, 2008 Trends/Statistics

The number of sales is down this month, as expected. Each year as we head into the Holiday season activity dies down then starts back up (slowly) after the New Year. But it’s surprising to see prices up in most of the areas. In particular, Areas 7 and 8 saw solid increases and North Oldham went from an average value of $269,452 to $342,139.

Now, averages fluctuate more erratically when the sample size is low so we can’t put too much stock in these numbers. But it is interesting to see these value increases given the overall downward trend for the year. If you have any questions, please contact me.

November 2008

AREA	SALES	AVERAGE	DoM
0 Central Downtown District	7	$125,400	53
1 Downtwn/Old&WestLouisville/Shively	70	$37,355	69
2 Butchertown/Highlands/Germantwn	31	$182,980	50
3 Brownsboro/StMatthews	31	$285,642	79
4 Pleasure Rdg/Valley Station	37	$92,336	63
5 Auburndale/Fairdale/Iroquois Park	48	$99,268	66
6 Buechel/Highview/Okolona/FernCreek	88	$116,346	78
7 FernCrk/Hikes Point/Jeffersontown	57	$175,456	62
8 Hurstbourne/Middletwn/Anchrg	43	$280,655	99
9 Anchrg/Lyndn/Prospct/UpRvrRd	47	$253,565	72
11 Bullitt Co.	53	$147,775	105
19 Spencer Co.	8	$152,791	140
20 Oldham Co. – North	18	$342,139	114
21 Oldham Co. – South	20	$214,305	69
30 Shelby Co.	15	$147,765	90

Source: MetroSearch, Inc. Values are not warranted by LHB.

Tags: data, home sales, Kentucky, Louisville

October 2008 Home Sales in Louisville, KY

Nov 6, 2008 Trends/Statistics

More down than up this month, but where sale numbers are down, prices are rising. Looks like values are balancing out as we head into the Holidays. If you have any questions, please contact me.

October 2008

AREA	SALES	AVERAGE	DoM
0 Central Downtown District	8	$162,848	103
1 Downtwn/Old&WestLouisville/Shively	107	$43,226	67
2 Butchertown/Highlands/Germantwn	58	$164,055	62
3 Brownsboro/StMatthews	41	$229,671	60
4 Pleasure Rdg/Valley Station	56	$103,127	73
5 Auburndale/Fairdale/Iroquois Park	66	$99,799	93
6 Buechel/Highview/Okolona/FernCreek	115	$135,527	62
7 FernCrk/Hikes Point/Jeffersontown	80	$156,692	74
8 Hurstbourne/Middletwn/Anchrg	78	$252,153	72
9 Anchrg/Lyndn/Prospct/UpRvrRd	86	$220,969	83
11 Bullitt Co.	67	$163,767	82
19 Spencer Co.	23	$150,891	93
20 Oldham Co. – North	26	$269,452	92
21 Oldham Co. – South	29	$187,413	96
30 Shelby Co.	22	$138,559	79

Source: MetroSearch, Inc. Values are not warranted by LHB.

Tags: data, home sales, Kentucky, Louisville

Top 10 Things to Consider When Contemplating a FSBO

Oct 16, 2007 Top 10 Lists

Why It’s Tough to Sell Your Own Home
In a recent National Association of Realtors^® survey, only 13% of all transactions were done without the help of a real estate professional; 39% of those were “closely held” between parties who knew each other in advance. So clearly, it’s a tough proposal. What are the issues to consider?

1. Setting the Asking Price

The Internet is now ubiquitous. Except for a small portion of our population, the vast majority of Americans utilize the Internet for everything from emailing photos to loved ones far away, to checking the show times for a movie just down the street. With that said, there is a great deal of information available to real estate professionals that is not readily available to the public. Realtors have the expertise to analyze this data and take advantage of it.

Setting a strong but fair asking price is one of the most important factors when selling a home. Often homeowners see that a house down the street sold for $XXX but perhaps don’t know the particulars of the transaction. For example, it’s not uncommon for a seller to add funds to the sale price in order to pay for the buyers’ closing costs. This makes the true market value of the home lower than the stated sales price. Realtors can conduct research on cases like these to give their clients information that would have been impossible for them to get on their own.

2. Marketing Savvy

No two properties are identical. There’s no such thing as a commodity in real estate. Therefore, promoting a particular property should take into consideration the property’s strengths and weaknesses while keeping an eye on what the market is doing.

Realtors are professionals in the field of real estate and should be on top of all the latest trends in their home area. What was hot last year may not be highly sought after today. Putting together attractive flyers, Web sites and more are now all part of a top agent’s repertoire.

3. Importance of the MLS

Properties that are not listed on the Multiple Listing Service (MLS) suffer a huge disadvantage to properties that are. This is simply a fact of life. The MLS is the first place both homebuyers (on their own) and agents (on behalf of their clients) go to find prospective properties. Discount brokers offer to list properties on the MLS for a fee, which is a great start, but in today’s day and age of increased competition it’s really only the essential first step towards professionally marketing a piece of real estate.

4. Professional Networking

Because Realtors are focused on real estate day-in and day-out, they have built up a network of clients, partners and vendors who expand the marketing reach of each property. Here’s a situation that occurs from time to time: a Realtor allows another agent to show Listing A to her client. The client decides this home just isn’t right for her. When the Realtor follows up after the showing to see what the client thought of the visit, he learns more about her tastes and realizes another one of his listings might be a better fit. When the client gets a chance to see this other listing, she realizes that it’s a perfect fit! There is a great deal of synergy in the world of real estate and FSBO properties are often on the outside looking in.

5. Legal Aid

While they are certainly not lawyers (or even legal clerks, for that matter), Realtors are well versed in much of the legal dealings in real estate transactions. As our society grows ever more litigious it pays to be protected, especially in a purchase or sale that involves hundreds of thousands of dollars. When you add the complexities involved with issues like new government regulations, title search clouds, personal safety tests like radon inspections and a host of other legal matters involved in a real estate transaction, buyers and sellers benefit greatly by having a real estate professional on their side.

6. Expertise in Negotiating

Negotiating the sale of an average property involves a range of $20,000, if not more. While homeowners are emotionally tied to their homes, the real estate agent typically isn’t. Without the emotional tie, the agent is free to focus on the negotiations of the deal. An experienced Realtor can also help in the negotiations of requested repairs, which can easily derail a sale. Having an expert on your team alleviates some of the stress involved in negotiations and can often be the difference between a broken deal and the property closing.

7. Personal Security

There are some benefits of having a Realtor that are often missed by FSBO properties and increased personal security is one of them. When a Realtor has the property listing, they pre-screen potential buyers to make sure they are legitimate house hunters and not just wasting time. Then the Realtor accompanies the prospective buyers through the home to make sure the property is kept safe and secure. FSBO owners must show their own properties, which increases the risk of harm coming to themselves or their property.

8. Personal Time

When a homeowner lists their property with a Realtor it gives them more of their own free time to use however they like. This way the Realtor does what he does best and the homeowners can focus on their own areas of expertise. It’s a win-win!

9. Avoiding Risk/Wasted Time

The last thing homeowners want is to be on the wrong end of a bad deal. How do you know if the deal is actually bad, good or fair to both parties? Knowing what other properties are selling for in a given area is a start, but even similar properties aren’t identical. One survey showed that 83% of all properties that start off as FSBO eventually list and sell with an agent. When a Realtor markets the property through his many channels from the start, that is the optimal way to sell a home quickly at the best price.

10. Best Sale Price

The reason most people choose to go FSBO is to avoid paying a larger commission and hopefully make more money on the sale of their home. (Although the vast majority of FSBO transactions do pay a commission to the buyer’s agent.) But what many do not know is that according to a 2006 poll, the home price for sellers who use an agent is 16% higher than those who don’t.¹ There are several factors at work here. One is that homeowners often don’t price the home appropriately from the start and over time, as they continue to drop the price, it conveys the perception that their house is “unwanted.” Another big factor to consider is that when a prospective buyer negotiates with a FSBO, they often assume they will be able to get a deal on the property because they already know the FSBO isn’t paying a partial commission to a listing party.

At the end of the day, owners looking to sell their property want the best sale price possible, with the least amount of stress, in the fastest time. In order to reach those goals, statistics show that using a Realtor beats going it alone.

¹ http://www.realtor.org/

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: FSBO, Kentucky, Louisville, real estate

Top 10 Mistakes To Avoid When Selling Your Home

May 19, 2007 Top 10 Lists

Updated: 5/15/2009

In some ways, this article is similar to Top 10 Ways to Prepare Your Property For Sale. But it’s important to learn that preparing your property is just one aspect of getting your house sold.

Here at Louisville Homes Blog, we’re constantly on the lookout for ways to help our homeowners in Louisville make the most of their real estate investment. With that in mind, we present the Top 10 Mistakes to Avoid When Selling Your Home.

10. Bad Timing

Sometimes you don’t have a choice. Your boss says, “You’re moving to Cleveland” while your company refuses to help with the relocation. This is unavoidable. But if you can choose when to sell your home, here are a couple of points to remember. First, if you’ve only lived in the home a short time (a couple of years or less) perhaps consider staying a year or two longer. After only two years, you’ve barely built up enough equity in your home to cover closing costs or other fees. Second, avoid listing your home during the holidays. Most buyers are focused on family during this time rather than shopping for a new house. In real estate circles, it’s called “the dead period.”

9. Misrepresenting Your Home

While it may be tempting to describe your family room as “a dream come true with more space than you could possibly imagine” in order to entice prospective buyers, you’ve got to remember that once a buyer arrives and discovers the room is “fine” but nothing special, they’ll wonder what else you might be exaggerating about. Don’t stretch the truth about square footage either, as buyers represented by Realtors are likely to notice the deception. As in life, honesty is the best policy.

8. Lopsided Listing Contracts

When sitting down with an agent make sure you are comfortable with the length of the listing contract. This figure is completely negotiable and both parties should come to an agreement before signing. The length of the contract should be at least as long as the average Days on Market (DoM) for your area. Here in Louisville, that number is currently about 80 days, while 6 month terms are fairly common as well. It’s also a very good idea to ask about any remedies you would have if he or she doesn’t live up to their end of the bargain.

7. For Sale by Owner

The data shows that homes listed with an agent sell for 16% higher than homes sold directly by the owner. But that doesn’t mean you should always use an agent to sell your home. If your home is in one of those ultra hot neighborhoods and you’ve got a good understanding of the home selling process and you know how to price your home appropriately, then you might do quite well. Typically, those are rare situations. You should also keep in mind that there are a number of variables that might arise that would make having a professional on your team a wonderful thing. Never say “never” but you could find yourself months into the process with very few showings and even fewer offers. There’s a reason why the number of FiSBOs have dropped nationally over the past 4 years.

6. Obstructing Negotiations

When you pick up that phone and hear those wonderful words coming from the other end, “We’ve got an offer!”, you may think everything is golden. Just hold on a second. If you don’t negotiate the deal properly, things could go very wrong . I’ve found that sellers often refuse to give any ground in negotiations because they believe the buyer is already getting “a great deal.” It’s tough for sellers to be objective about their own home because they’ve built an emotional attachment to it. Having an experienced Realtor handle this aspect of the selling process may be the difference between selling your home at a great price or pushing away prospective buyers, leaving you with nothing to show for it. As you will see shortly, pricing your property correctly from the beginning is also extremely important.

5. Wrong Realtor

I can’t tell you how many times I hear someone tell me they’re using their Aunt or their sister’s cousin’s neighbor as their agent. Just because someone is related to you, doesn’t necessarily make them a good Realtor. Studies have shown that more than anything else, people want their agents to be trustworthy and professional. So when it comes time for you to sell, interview multiple agents and learn about their work ethic and their strategy for marketing your property. Some of the more successful agents feel like they’ve already paid their dues and don’t need to do the little things. It’s those “little things” that separate the good agent from the great agent.

4. Lacking a Sales Strategy

Selling your home requires more than simply getting it listed in the MLS. There are literally hundreds of ways to promote a property from the well-known: Open Houses, newspaper classifieds and post card mailings; to new techniques like qualified email leads and electronic newsletters. Not every marketing method is equally appropriate for each property. It takes experience and creativity to chart the best course.

3. Big Red Flags

There are certain problems that will scare off prospective buyers in a New York second. If your property has any of the following problems, you should quickly correct them before putting your home on the market: foul odors, visible mold or mildew, siding or gutters that are separated from house, broken doors or windows, problems with the heating/cooling systems or “soft” floors or steps. Assuredly, some problems are bigger than others but problems like these will overshadow the positive qualities of your house.

2. Neglecting Property Preparation

Before listing your home, perform the following exercise. Drive up to your house and park on the street. Walk up the drive evaluating everything from the mailbox to the lawn and landscaping all the way up to the front door. A wise person once said, “You never get a second chance to make a first impression.” What did you notice about your home?

If a buyer doesn’t like your home the first time they visit, they surely won’t return. Therefore, it’s critical to have your house “on its best behavior” when the guests arrive. Remove as much clutter as possible. Make sure the grass is nicely trimmed. Turn on all the lights and open the blinds or curtains. Any little thing you can do to show that your home is well-cared for will improve your odds of impressing those buyers. For more tips, see Top 10 Ways to Prepare Your Property For Sale.

1. Poor Pricing

Far and away, the most important aspect to selling your home is price. Simply stated, if the price is not right then buyers won’t even consider your property. This is the point where having a savvy Realtor on your team really pays off. You shouldn’t just consider comparable properties that have sold, but also what’s currently on the market. Which areas are hot? Which are over-stocked? There are a dozen important factors to consider when determining the appropriate price. In the end, a good Realtor will set an appropriate price range for you and then ask you to select the Asking Price. It’s very important that you feel comfortable with the price. Even though you can always lower your price in the future, new listings get the most attention in the first couple of weeks after they come on the market.

If you can avoid these pitfalls, I believe you’ll find yourself ahead of the game and well on your way to selling your property.

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

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

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

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

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