We always talk about things to do when buying a house but what about some things that you should not do in the course of a real estate purchase? When purchasing a home in the Louisville real estate area or any of the surrounding communities and towns, I not only want you to be aware of things that you should do the things that you should avoid as well. These things could affect your credit rating, financing, or your future life in the home.
Here are four things not to do when purchasing a home.
#1. Buy a home you know you can’t afford.
So many homeowners think that they can max out their budget and find the perfect home for them only to discover just a few months down the line that they no longer have any excess reserve each month if something should break or they ever want to make changes or upgrades. You might be approved for a certain amount but that doesn’t mean that you should always maxed out that budget. If you are approved for $400,000 that is the maximum amount your budget can afford. Anything more than that and you might really be suffering on a monthly basis with your budget. If you choose a home that’s about $380,000 then you know you can comfortably afford the mortgage payment plus set any excess aside in a savings account for repairs or replacements. If you determine now to set your budget and your search criteria lower than what you are approved for, you’ll feel more comfortable and less stressed later on.
#2. Not investigate the neighborhood.
So you may have found the perfect home for the perfect price but if you jump into...
Which is better in today’s market? Cash Flow Objectives or Quick Capital Gains?
Several years ago when the market was high, it was easy to buy a few properties, hang onto them for a few years and then flip them for quite a decent profit. Today, having that objective may be a lot farther down on the list. While this topic has been debated among investors and real estate mentors alike, the choice for property investors now is to discover what makes the most sense financially; cash flow now or capital gains appreciation later?
An investor looks at the long-term capital gains by investing in property that provides a cash flow on a monthly basis. Those looking for a short-term capital gain within an active market may also be considered more of a trader rather than an investor; trading one property for another in the hopes of gaining a profit along the way. Simultaneously, both seek to gain a profit in the long run either by building slowly or with an initial profit when the property sells.
Buying to sell is an active participant job for an investor. One must be diligent in finding the right properties, investing the right amount of funds, being cautious on their expenditures, and reselling within their profit margin. As one of the Seven Habits of Highly Effective People, begin with the end in mind. Determine what you want long-term to make a decision on how to invest today. Taking good quality investments and having them work monthly for you may offer you a better rate of return then the short-term capital game of buying and selling.
Read more: Tips to Real Estate Investing Success – Use a Mentor...
Anyone who lives in an area at risk for flooding needs flood insurance:
Between 2008 and 2012 the average residential flood claim was more than $38,000. Flood insurance is definitely a good idea to protect yourself and keep you and your finances afloat. Flood insurance is available to owners and renters of homes and condos as well as commercial owners and renters. Price will vary on how much insurance is purchased as well as what the insurance covers and how much the particular property is at risk.
Every policy form will cover the building and contents. However, contents coverage is optional so you will probably want to discuss covering your personal property with your agent. Also, be aware that there's usually a 30 day waiting period for your insurance to take effect after purchasing it.
When you go to purchase flood insurance:
You may be asked for an elevation certificate. This is a certificate that validates the lowest floor of your home relative to the ground. This certificate will only be required if your structure was built or extremely improved ON or BEFORE your communities date of the Flood Insurance Rate Map. This type of building would be considered post-FIRM. Find out if your building is post-FIRM or pre-FIRM BEFORE buying an elevation certificate. It's important to note, all property owners reserve the right to purchase elevation certificates and it MAY lower your premium.
Also, be sure to ask your insurance agent the following questions:
- What flood zone do I live in and what is the flood risk?
-Is flood insurance required for my property? Will the lender require it?
-Even if it's not required, should I still get...
As a buyer, getting a home inspection is a crucial step in the home buying process. It's not something to take lightly or a step in which to cut corners. It's important to have a professional examine the home as this is most likely the largest purchase you'll ever make.
Here are 8 crucial questions you should be asking a potential home inspector:
#1. What will the inspection cover?
Your inspector should ensure that the inspection and inspection report will meet all applicable requirements that the state of Washington requires as well as practice a code of ethics. You should ask about all the items included in the inspection ahead of time and verify that anything you are concerned about gets covered up front.
#2. How long have you been an inspector?
New inspectors simply don't have the experience that a seasoned and skilled inspector has. No amount of education can come close to the years of experience that well-seasoned inspectors have under their belt. You’ll want to make sure that they have a history in their profession and possibly a few names as referrals. Even though newer inspectors can be qualified, they may work with a partner that is more seasoned until they get the experience needed. Every home is different and the more experience an inspector has the better informed they are about certain areas of the construction of the home.
#3. Are you proficient in residential inspections?
Some building inspectors only deal with commercial so you want to verify that this is a residential inspector skilled and trained in the details of a single family house or condominium inspection.
#3. How long will the inspection take?
Most inspectors take between two and three hours to complete an inspection for a typical...
I just read this article today on MSN Money talking about millennial's using their parents home equity as a new weapon in a bidding war. Now, before you completely disregard this idea let's think about the implications of this and how it can be a benefit or a detriment to both parties.
They call it a mortgage merry-go-round; parents can refinance their home to fund the cost of their adult child's new home purchase. This makes the kid a desirable all cash buyer in an area where bidding wars are common. Certain micro markets around Nashville have become hot to seller markets and bidding wars are not uncommon. Having all cash buyer and a quick sale makes it a very attractive offer for sellers. But, do parents really do this and how beneficial is it?
Sellers typically prefer cash even though the terms may not be as attractive as a financed offer. Sellers need to weigh all costs and terms when determining which offer to choose. Use the purchase price is above the list price and it can't be appraised for the higher value, a cash offer can be very attractive. A cash offer doesn't need to be at market value because there is no appraisal there's no home loan. Sellers could get more for their home and the kids are now indebted to their parents instead of a lender.
Read More: Top 4 things all buyers wish they knew before buying
Is this a sign of how difficult it is for millennial's to get into the housing market even for a starter home? Starter homes are typically the fiercest competition and bringing in all cash offer on a starter home in any community is extremely attractive.
But what about...
Nearly all of us at some point in our lives have gone through the regret of buyer’s remorse. For some, it may be just a small sting of an embarrassing outfit and for others a large life-altering event. When that buyer’s remorse involves a major life purchase such as a home purchase it can take a long time to recover, sometimes several years.
Purchasing a home is a huge process not just because you are spending a huge sum of money, but also because of all of the details, legal jargon, insurance, relocation, repairs/maintenance, and more. Before purchasing any home there is a fair amount of homework and educating yourself on all the aspects of the large purchase you are about to make.
Here are the top things homebuyers wish they knew before taking the plunge into homeownership.
Today’s current housing market is very competitive. It is definitely a seller’s market with significantly fewer homes for sale than buyers looking to purchase, because of this it is not uncommon to end up in a bidding war for a home that has only been on the market a few days. It can be extremely frustrating and discouraging if you don’t go into the buying process with a patient outlook. It may take a few bidding wars and even looking at houses you don’t think you are going to like before you find the right home. This could take longer than you expect as well.
Don’t get impatient and settle for something you don’t truly want that won’t fit your lifestyle needs.
Know and Have Good Comprehension of Pre-approval and Loan Processes
Since home loans began it...
The final walk-through is usually conducted about 2 to 3 days before closing or's final signing. This walk-through is crucial to verifying any work that was done on the inspection report, and verify that the home is as it should be when it closes. If you don't do this final walk-through and something is broken, not working, or the house has been trashed, there's really nothing you can do about it. This is why the final walk-through is imperative to the home buying process. Here are 12 tips for your final walk-through on things to check, verify, and confirm.
#1. Set aside at least 60 minutes for the final walk-through and make sure that it is done about 2 to 3 days before final closing. If the previous sellers are already out, this is a perfect time to double check everything.
#2. Take your contract with you and your real estate agent to confirm that any items that were agreed upon to be fixed or repaired have been done and that they have left the house with the right materials and any items that were set to stay.
#3. Start on the inside and open and close all the windows and doors and check that all latches and locks work properly.
#4. Test all heating and air-conditioning systems.
#5. Confirm that all appliances are in good working order and as they should be.
#6. Flush all the toilets and check all the faucets.
#7. Test all the light switches and electrical outlets. Bring along a hairdryer or something small that can easily be plugged in to verify electricity.
#8. Test all smoke detectors and CO detectors....
Thank you for your service... first and foremost. You are what keeps us free. That being said, we want to help you however we can when it's time to sell, buy, and move. Sometimes moving in the military is a fast-paced situation and if you haven't already done it a half a dozen times you might be a little frazzled. Here are some easy tips for a smooth relocation.
#1. Get a Realtor® that is familiar with military relocations.
If your agent has never had to help a military family, move along. You need someone experienced with VA loans, relocations, and the military process. They will make sure the home as the VA-designated Minimum Property Requirements and help to make closing that much easier. Read More about the importance of your own buyer's agent.
Read More: Sell with Us, Use our Truck
#2. Have the proper paperwork.
As soon as you get your PCS orders make sure you have your mortgage pre-approval ready to go. (An experienced agent will help with this as well). Pre-approval can get you the house you want by being ahead of others out there that haven't done their financial homework ahead of time. But remember, once you've been pre-approved, don't go spending a ton of money or apply for credit. Your credit and finances will be checked prior to closing and you wouldn't want anything jeopardizing your chances of getting the loan.
#3. Research and Homework
Find out about a new place before you've even been there. With technology, we can literally plop our virtual selves in the middle of the street and check out the house from the sidewalk and the neighborhood before...
10 Questions You Should be Asking Your Real Estate Agent
...and probably aren't
If you are buying real estate and especially if this is your first time buying real estate or you just haven't purchased property in several years, things may have changed and you may just not be familiar with the process. In any case, there are questions about the property and even your real estate agent that are important to know before making a final decision. Here are some questions you should be asking a real estate agent that you probably don't even think about.
Q. Is the property in a flood zone?
Just because you don't see any water around doesn't mean that the home is not zoned in a flood zone. It's important to know this because you will need additional homeowners insurance.
Q. Is the home close to an airport, freeway or train tracks?
These may not seem obvious when you tour the home so it's important to ask, especially if it's going to be an issue for you. Is the home in a flight path or are there night trains that go by that will keep you awake or drive you crazy?
Read More: How to Find the Perfect Neighborhood
Q. How easy will this home be to resell?
Most people don't think of reselling a home before they've even purchased it but it's important to know this if you plan on selling anytime down the road. Even if you don't think you are going to sell, you never know what may come up so it's important to buy a home that has resell value.
Q. Can I have references from past clients?
When choosing to work with a buyers agent it's important...
Take a walk thru 11311 Oakhurst Road - Luxury Living and Entertaining in Lake Forest! Ranch Style With An Additional Bonus Level, Updates, Open, Spacious, 3 Master Bedrooms and Circular Drive. There are also 2 other rooms for office or craft space that are currently used as bedrooms. This custom-built home with Golf Course Views is nestled between the 11th and 12th holes in Lake Forest.
Buying an Older House and the Things to Look For
They just don’t make them like they used to. Our parents have said it, our grandparents have said it and most of us have said it about something at some point in our lifetime. Whether it be about the continually breaking washing machine, our vehicle that is always in need of maintenance, the lawnmower that doesn’t seem to cut grass, you name it, quite often it seems like the quality of “newer” things isn’t up to par. Sometimes older truly is better and this is especially true in older homes. A home with good bones has unlimited potential. While there are many different things that you should keep your eyes peeled for when buying an older home, you will find that most of the time you will be incredibly pleased with the bones of your “new” old home.
Whether your home is 30 years old or hundreds of years old, there are always things to look for before you make your purchase and dive head first into your new house. Here are a few things to keep in mind when viewing and touring houses you may soon call home:
Lead Paint: Most of us have heard about the problems that are associated with lead paint at some point in our life, however it might not click to ask about it when touring homes. Generally, any home built before 1978 should be inspected for lead paint, homes build after 1978 should be in the clear. Many houses that were built before 1978 (when lead paint was banned) may not contain it as many people had already realized this paint was deadly. Contrary to public belief, lead paint can cause health...
Moving with Children
Studies say constantly relocating to new homes can have a long lasting negative impact on a child’s development. This makes transitioning into a new home quite a daunting task that requires proper prior planning. According to Dr Shegeiro Oishi a renowned psychology professor at the University Virginia, relocating to a new house is not always bad for kids provided parents take time to make their kids comfortable with the idea of moving and make arrangements to involve children in the house hunting process. This article details some of the challenges that children face when it comes to relocating to a new home and gives effective tips that come in handy in making moving a seamless and painless experience people with kids.
Challenges Children Face When Moving To A New Home
Losing friends and peer groups - Young kids can be attached to their friends and there is no doubt many tweens and teenagers are emotionally attached to their peer groups. Relocating to a new home means abandoning relationships that they care about to start new ones in an absolutely new environment which is a very scary and nerve wrecking concept. This is particularly tough for introverted kids.
Academics suffer - If moving involves changing schools then it can detrimentally affect children’s academic performance. If moving will require changing schools then this may affect the kids’ academic work as they will have to acclimatize with the new teachers and new classmates.
Social issues - Due to anxiety and fear of...
Finding the Perfect Neighborhood in the Lousivlle KY Area
When searching for a new home often one of the main deciding factors is where the home is located. Staying within school districts, ensuring you have a short commute, staying close to your favorite shops and restaurants, the list is endless. With so many things to keep in mind it is certainly an import step to ensure your new home fits into your desired neighborhood. If you are starting your search in the Louisville area you are in luck! There are more than 15 small neighboring areas that are available for you to browse. Each offers it’s own unique features making sure that you are guaranteed to find the home of your dreams in the perfect location. We will be diving into 5 of these neighborhoods to help break down some of the main highlights each has to offer. This will help you find that special new place to call home in that perfect spot on the map.
- Springhurst: With shopping close by, Springhurst is the perfect place to gather with friends and family. Springhurst offers a great school district and is perfect for all of the adventure your family desires with it’s many outdoor activities.
- Polo Fields: If you are looking for an upscale luxurious home, this is the place for you! Featuring an 18 hole golf course,...
An open house is a great way to see different properties without the commitment and hassle of contacting a buyers agent and scheduling a showing. It's often the first step that many buyers take when they begin their search for a new home. They made tour certain neighborhoods, be on the lookout for newspaper ads and talk to brokers about different open houses in particular neighborhoods. This allows buyers to browse open houses at their leisure, ask questions and find out a little bit about the property in the neighborhood. If you're in the market for a new Louisville Kentucky home and you're currently browsing open houses here are some great questions to ask the real estate agent to find out as much about the property as possible and save yourself a lot of time.
#1. Ask why the homeowner is moving.
This is probably one of the number one question a lot of buyers agents get and it's a valid one. Even if you don't get the full story most real estate agents will let you know that either the homeowner has been relocated, there's a family status change or there moving up or downsizing. Most of the time real estate agents won't tell you if there's something really horrible about the house but they do need to disclose certain items about the house such a structural integrity, coding and zoning. Be sure to read between the lines and listen for clues on why the owner might be selling. Is there a noisy train close by? Is this a high crime neighborhood? Is it a bad school district etc. Often times by knowing why the homeowners moving can put the home in either a positive or negative light.
#2. How long has the house been on the market?
This is a great question to ask as a gives you a good idea of the timeline of the property. If the home has just been listed ask if it has ever...
Louisville home sales are up 4.7% over February 2015. The number of active listings on the market is down 20.1% compared to the same time last year. That’s why realtors are finding it tougher and tougher to find homes for anxious buyers. If the lack of inventory continues, home sales could tumble, as buyers get discouraged with the lack of options to choose from.
The absorption rate is much lower than we've seen in years. In case you don't know what the absorption rate is, imagine all homes coming on the market stopped as of this moment. The absorption rate measures the number of buyers in the marketplace, the number of sellers putting their homes on the market and the number of homes going under contract. When combined the absorption rate gives us a good indication of how the home sales market is performing.
There are several scales but the one we look at closely says that if there is a six-month supply of homes or more it's a buyers market. If there is a 5 to 6 month supply of homes it's a neutral market. Finally anything less than a five month supply of homes and were looking at a sellers market. As of this writing, the absorption rate was 3.43 month supply of homes that's a firm sellers market! Compare that to just a year ago where the absorption rate was a 4.83 month supply. Not quite a neutral market but certainly not anywhere near as hot as the market is right now!
For sellers, the good news is that homes priced right, in good condition and staged properly are selling in a matter of days. We’ve seen a number of our listings...
You certainly don't want to give away your home when selling nor do you want to pay the highest price when buying. Good negotiation skills can take years to develop and tips and strategies come from highly qualified buyers agents and listing agents. But there are ways you can negotiate for the right terms and price in your next real estate deal.
Here are 10 tips that all buyers and sellers should know when it comes to real estate negotiations.
#1. Be an effective communicator.
Before you can negotiate anything you need to be an effective communicator. If you don't how to communicate properly, appropriately or accurately, your needs and desires are simply not going to get across. You need to listen, clarify, understand the opposite parties expectations and understand your expectations as well.
#2. Know the market.
If you have no idea what an accurate price is for a particular piece of property you are negotiating in the dark. The other party might be laughing at you because you simply don't understand the current market trends and strategies. Understand if it's a buyers market or a sellers market or if the market is balanced. There's no points to request a lower price on a home if the seller has three backup offers over list price. You have to understand what you're dealing with, the current market and how to really get what you want.
Read More: 5 Things to Require...
Two New Home Communities in Louisville
Brookfield – Pulte Homes
Pulte residents who call Kentucky home, love to take advantage of all that Pulte and the Bluegrass State have to offer, from rich history set inhttps://www.weselllouisville.com/ beautiful cityscapes and countryside, to semi-custom homes furnished with...
Thinking of selling your home? Don’t wait until 2016, buyers are out there right now looking for the perfect home. Consider the fact Louisville area real estate continues to outpace last year. According to the latest numbers from the Greater Louisville Association of Realtors, homes going under contract increased a whopping 12.4% October 2015 compared to October 2014. The number of Louisville area homes closing in October 2015, up 1.3% over 2014. The absorption rate sits at a 4.4-month supply (a strong sellers market).
The numbers could be even better if there were more homes on the market. There were 17.5% fewer homes on the market last month compared to October 2014. In fact the number of homes coming on the market last month was down 2.5% compared to October last year.
So what does this all mean? The real estate market in the Louisville area continues to improve month over month. We’re seeing a number of homes that went under contract the month before not closing for a variety of reasons:
1) Appraisers found the sales contract price was higher than what comps in the area had sold for. This has been a problem but it escalated at the beginning of this year when the government instituted a random computer check of appraisals. If the computer felt the appraisal was too high it would kick it back to the appraiser to be reworked. The appraiser doesn't get more money to do the extra work so they are more conservative in the beginning. That's why we're finding more appraisals coming in low. If the buyer is unwilling to come up with cash out of pocket or the seller is unwilling to come down in price...