The RE/MAX Associates Louisville Real Estate Blog

Why Waiting For The Bottom of The Housing Market Will Cost You Money

Some people believe buying a house when it is at the bottom of the market is the best option, however that is indeed false. When home prices are low like they are now in most American cities, it is tempting to see how low they can go. What you have to realize is when buying a home you have to balance a low price bottom of the market with a low interest rate. Rates are at historic lows, which means they will rise soon enough.

So if interest rates are on the rise, but the market is still sinking, waiting another six months for it to sink even lower could cost you in the long run.

For example, if you buy a house for $450,000 and put down 20%, you will have a mortgage totaling $360,000. If your low interest rate is at 5%, your monthly mortgage payment plus principal would be $1,932.56. However, if you wait six more months an hope to get the house $10,000 cheaper at $440,000, thus with a mortgage of $352,000. By this time, the interest rate might have risen to 6%, now your monthly payment is $2,110.41. Costing you an extra $72,000 over the life of the loan.

In a buyers market there are more opportunities for negotiation. Taking the plunge and making an offer is an important step. If you come across a house you absolutely love, put your bid in and be willing to negotiate. Once a home is priced to what the current market will bear, buyers will make an offer and the house will sell no matter which way the market is headed. My point is don't let the house you love wait another six months for the market to sink. Another buyer might step in to make the offer.


BUying a House NOW is a Great Investment

It isn't difficult to see both sides of an investment argument. Assuming you can get a loan, it is difficult to argue against buying a home now.

the housing cycle is a long one, because buying a house is a long system to endure. It's not even a tenth as fast as buying a stock or bond. Hopefully you are pre-approved for a loan, otherwise you will have to submit yourself for a credit check, which is barely below the CIA background check. Then you have to get your home inspected, figure out which fees your bank charges (mostly just because we can).

So how long is a housing cycle. Pretty damn long. Get ready for the ride by talking to your real estate agent and using their advice.


All About Home Inspections

When buying a home, the general rule of thumb is to get a home inspection. Think of it as a test drive before you throw all your money towards one of the biggest investments of your life. You need to make sure you're getting a quality home. Below are a list of all the need to knows about home inspections.


     The home inspection is an examination of a home from top to bottom. Just like a doctor checkup, a home inspection notifies you of any structural repairs that need to be taken care of. Buying a home is a big purchase, so when purchasing you want to make sure you're buying a good, quality home. 99%of all agents advise the buyers to get an inspection.


     Buying a home will be an expensive endeavor, so it only makes sense to buy the best. So hire a professional when selecting a home inspector. A professional will understand the home's system You can search for a professional in your area at


     A home inspector will conduct a visual inspection from the room to the foundation. He/She looks at the roof, insulation, attic, heating and air-conditioning systems, plumbing and electrical systems, walls, ceilings, windows, floors, basement, and the foundation. They will also look at the outside of the property like, roof, driveways, fences, and overall grading of the property.


     The average inspection of a single-family home should take 2-3 hours.


     The fee for the home inspection differs, depending on size, location, age, and the services being performed. Example would be if the home is being checked for radon, or if the septic system is being examined. The average price...

Top Strategies to Stay in the Real Estate Game

Here are some very simple, but helpful tips to stay in the game of real estate.

1. Always understand insurance- insurance policies can be confusing and can often get the best of you. It's for your best interest to understand your policy completely.

2. Never keep a building empty- an empty building only costs money without making any.

3. Never buy a property that has no equity- it's just a simple business rule.

4. Only sell out of necessity- if you don't have to sell it, don't. You can make money when you have the property, but if you have to sell it because money is tight, that is the best time to sell.

5. House prices can fall- house prices can fall, and likely will fall in an unstable economy. So it's a good idea to make internal and external improvements to your home.

6. Always compare mortgage rates- this is called shopping. Shopping for the bets long-term deal can save you more than you think. 

7. Take expert advice when searching for a home inspector- some inspectors can be shiesty and not do a good job. It's worth your time to find a reliable one.

8. Always check terms of contract- hire a lawyer if needed, but make sure you understand every part of every contract you are handed. If you think you have an idea what a clause means, double check. You don't want to end up in court for something you thought you understood, but really didn't.


Fishing and Holme Selling: Not That Different?

     If you are reading this i Hope you can learn something. IF you already knew all this information then i apologize in advance for wasting your time. 

     For those of you who enjoy fishing, you might like this article. For those of you who do not enjoy fishing I would stop reading now. I enjoy fishing the most because you never know what you're going to reel in. You never know what kind of fish it is, or how big it will be. No matter who you are, fishing is a challenge. 

     what's the key to successful fishing? There are many theories, but I'll let you in on the top three. Timing, Location, and Advertising. Think about it. Fish bite your line at the right moment, and it would be super helpful to know when that moment is going to be. Location is cloth because depending on here you are, you might know the odds of what kind of fish you will pull in. Advertising would be the most important because the fish needs to want what you are offering, and they have to know that you are offering it in the first place.  

     Selling you're home isn't that much different. My point is there is nothing wrong with trying to sell your own home. You can look into it and see if your area would accommodate such a strategy nicely. Most of the time though selling it can be more challenging. Think about it. Aren't you selling your house the same way you are selling the bait to a fish. The key is to make your bait look as attractive as possible to as many fish as possible.

      So selling your home by yourself is kind of like fishing with a bare hook. It may end up to be a good deal, or you may end up just getting a nice tan. Getting your hook to be attractive for a numerous amount of fish is where the helpful advice of realtors comes in. Realtors know the timing, they know the location, and they surely know the...

Establishing a Relationship With your Real Estate Agent

     One of the most important things you can do when buying or selling property is to establish a trusting relationship with your real estate agent. It's vitally important that you have a good relationship with this person because they are the one who is going to be buying and selling your home.This is the person that will be giving you advice along the way, which is why trusting them is super important.

     Other People's Opinions- there's no doubt you will be faced with other people's opinions. You will be getting examples of what worked for other people when it came to buy and sell their home, and how it should work for you. Your agent might tell you the very opposite leaving you to be very confused.

It's important to understand that real estate transactions differ from one area of town t0o the next. If friends and family are giving you advice on selling when they live in Bowling Green, it won't be the same when you are trying to sell your home in Louisville. I would listen to your agent because they know the area and the market more than your family and friends.

     The Times Change- You may also be getting advice from people who sold their home years ago. Take this into account when you are taking your real estates advice. The markets change from one month to the next in real estate, and that's a fact.

     Experience- One thing to remember is that your friends aren't real estate agents, and the only experience they have with the industry is personal. Shrug off any pressure from outside influences and trust in your agent.

     The Agent is on Your Side- Selling your house is a win-win situation. You sell your house, and your agent makes a commission for all their hard work. Your agent has invested much time and energy into selling your house so they are sure to get a positive outcome for both parties. When you sign an agent, its crucial...