The RE/MAX Associates Louisville Real Estate Blog

Louisville Market Conditions

The average price per square foot for a Louisville home is $130, which is actually up 30% from a year ago for the same period. The median sales price for homes in Louisville was $202,644 (based on 62 home sales). Compared to the same period one year ago, the median home sales prices have increased 47%, however the number of home sales has decreased 96.6%. Currently there are 3,671 resale and new homes on the market in Louisville. The homes in re-sale, foreclosure, and auction are at 2, 864. The average listing prices for Louisville homes for sale are $212,983. This number tells us that there has been a decrease of .3%, or $632 compared to the prior week. The popular neighborhoods in Louisville include Old Louisville, Cherokee Triangle, with the average listing price of $217,777, and $449,094.

Just a little market news.

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Pre-approval vs. Pre-Qualification

Are you wanting to purchase a home, but are unsure where to start? Here are a few items to consider before-hand

1. When do I want to move?

2. What area do I want to live in?

3. How much money can I spend?

4. How do I buy a home.

     As an onlooker to a real estate company, I would highly recommend finding an agent that knows the area really well, and who also has excellent communication skills. The next step would be gaining pre-approval or pre-qualification from a lender. If you do not know any lenders, your agent should be able to help you there.

     In some cases you can gain pre-qualification in mere hours electronically. This pre-qualified letter states the amount of money you are qualified to borrow. It is all based on the information you provide like salary, debt, etc.

   Getting pre-approved takes longer because the financial information you provide is independently verified, and more information is required.

     Having a pre-approved letter to submit with an offer can make the offer much more appealing to the seller.

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The Link You Didn't Know Between Your Credit Card and Your Mortgage

     Believe it or not, but there is a link between your credit card, and your Louisville mortgage. However, it doesn't have to do with using it with an 30% interest rate. The link lies in your credit rating. If your score isn't pleasing to the eye, you may find it much more difficult to get obtain a mortgage. If you want a loan, you need to make sure your credit card payments reflect responsibility, so this way the bank will consider you a safe risk.

     Credit Card problems- If you have or had any credit card problems they will be reported to the credit agencies. Just paying one bill late can have a significant impact on the look of your score. Black marks show up anytime your payment is late; and too many of these black marks will inhibit your ability to get a loan. Always make your credit card payments on time! Lenders will see you as a responsible credit card holder. When applying for a credit card, these files will be pulled up and assessed. Having good credit history is one of the most important part of getting approved for a loan.

     Purchasing with your Credit Card- Another thing that will be looked at is how much credit you have available. If you are considering buying the newest HD TV, you should wait until you get a mortgage first before buying it.

     Applying for new Credit- Do not apply for any new credit cards when trying to get a mortgage. It is best to look like you do not need any extra credit; and when you appear like you need more credit, it will turn lenders off. When applying for a mortgage, it is best to lay low with your credit so you don't raise any red flags. Make sure you pay every bill on time, and do NOT apply for any new cards.

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Decorating for the Fall and Winter

Your curb appeal is the sex appeal of your home. Getting people interested starts on the outside, and if they like what they see they will want to come inside to know more. The exterior of your home can either attract or detract. When you are selling you want to be the prettiest home on the block, without a question. Good things to do to achieve being the prettiest house is to

1. pressure wash your house, sidewalk, and driveway

2. wash the windows

3. paint the trim of your house

4. trim bushes to look clean

5. plant flowers for the season

6. keep grass trimmed and edged properly

7. rake away all the leaves in the fall

8. remove the snow in the winter.

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Have These Items Ready When Applying for a Loan

Income items

W2 forms from previous two years

Most recent pay stubs from past two weeks

Federal tax refunds (1040's) for the last two years: ONLY IF

     you are self employed

     earn regular income from capital gains

     earn sizable interest income

     earn more than 25% of your income from commissions and bonuses

     own rental property

Year to date profit gain, or loss (self employment)

Corporate or partnership tax returns

Pension award letter

Asset items

Social security award letters

Bank statements from past two months

Statements on all stocks, bonds, etc.

Copy of latest 401K statement

Explanations for any large deposits or source of those funds

Copy of HUD1 settlement statements on recently sold homes, or estimated statement if home is for sale but not sold

Gift letter (maybe cash from relative)

      Bank statement from gifted

     Copy of check used to make gift

     Copy of deposit slip

Credit items

if you rent- copy of landlords name, address, and phone number.

 Explanations for any late payments, credit inquiries within last 90 days, judgements, collections, charge-offs, liens.

Copy of bankruptcy papers (within last seven years)

Copy of divorce statement (and settlement)

Copy of child support statement

FHA loans

Drivers license

Social Security Card

Copy of DD214

Copy of most recent mortgage bill

 

 

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Half of Mortgage Borrowers Under 40 are Underwater

     Rising home prices have helped nearly a million homeowners emerge from being underwater from their mortgages. But the younger homeowners are still struggling to stay afloat. The percentage of of borrowers who owed more on their homes than what they were worth fell to nearly 31%, which is down a few tenths of  percentage points from the previous months. Of the 15 million owners who were underwater, a significantly large number are under the age of 40.

     Nearly 48% of all underwater homeowners are under the age of 40, which is twice the rate of borrowers that are older. This creates a gridlock which has the potential to hinder the market's recovery.

     You hear about tight inventory in many markets, and it's clear where it is coming from. Having a negative equity is trapping young people in their homes, which prevents them from selling. Most of these homes are the starter-first-time buyer homes. Underwater homes that wish they could be sold have difficult decisions to make. They will either have to pay the mortgage in full at closing (which needs a bundle of cash on hand) or go through a short sale.

      Going through with a short sale however means getting the bank to forgive the difference that you still owe. If the bank won't approve of the short sale, then the sale cannot be completed. even if the sale is completed the seller takes a large dent on their credit score, which is where reluctance kicks in.

     Still many homeowners do not want to absorb the loss, They hang onto their homes hoping the prices will rebound and they can sell above water. This is such that case in states like Florida and California.

     Here's the impact of the underwater generation: This could have horrible ramifications for the economy and borrowers under 40. Many young homeowners bought their homes at the peak...

4 Ways to Help Pay off Credit Card Bills with Debt Help Options

Read on how to help pay off credit card debt with different debt help options.

1. Consolidation Loan- This type of loan can be taken from banks or a financial institution. There are two types of consolidation loans- secured and unsecured. A secured loan is one in which you take out money from your house, or property that you own. This type of loan charges low interest rates. AN unsecured loan means you take out a loan without anything held as collateral. This loan is a giant risk for the lender since there isn't anything to collect if they come up short.

2. Balance Transfer- This method allows you to take several credit card debts and transfer them to one credit card with one low interest rate. This allows you to pay off your outstanding credit card balance with ease. Once you transfer your balance to one of these cards, you should repay the balance of the card within the low introductory rate period. If you choose not to pay it off within the period, you may be charged a high interest rate on the balance amount.

3. Debt Snowball- In the debt snowball method you take all the debts you owe from lowest to highest and pay them off in that order. Once you pay off the smallest debt you move on to the next one. This method is highly advised by Dave Ramsey.

4. Debt Avalanche- This method allows you to pay off your outstanding debt from highest interest rate to lowest. Once you pay off your highest interest rate, then move to the next highest interest rate.

 

If all this fails, Call Dave Ramsey.

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Five Areas That Could Hurt Your Appraisal

When you finally decide to put your home on the market, there is one thing that can make a huge difference, and that is the appraisal. This is one area of your home that can have positive or negative consequences to the price value. Knowing which areas to give more attention than others can can lead to an increased home's value.

 UNKEMPT EXTERIOR/INTERIOR

     Having a dirty home from the outside in can not only cause potential buyers to run for the hills, but also have the appraiser shave off a a decent amount to your home's worth. An unkempt yard with bushes and shrubs growing wildly can actually take three percentage points off your home. Curb appeal is the first thing potential buyers look at, so it is crucial to have them enticed from the start, because a good looking yard actually increases the value of your home. Another point is that if your neighbor's yards look really nice, and yours isn't so nice, this could cause your appraisal to drop even more than expected.

 TRENDY REMODELS

     Remodeling can add much value to your home especially if you are adding storage, room additions, etc. However if you do a complete remodel and believe the trust cost should reflect the true value, you will be left disappointed. The best remodel you can do is adding space to your kitchen.

 UNFINISHED REMODELING PROJECTS

     Do not have the appraiser inspect when your remodels are still in the process. If you are under a time constraint, then tell your appraiser about the remodel and what plans are expected to be done.

 FORGETTING TO LIST IMPROVEMENTS

     Don't expect all improvements to help your appraisal. For instance a new roof won't count because roofs are expected to be in good condition. Make a detailed list of all the improvements...

Small Home Improvements All Add Up

In real estate, any type of improvement can leave a lasting impact on potential buyers. A good area to improve is the lawn because it takes an ordinary house into an attractive property. This emphasis on presentation applies to a residential home and even a commercial office.

Lawn care is a great way to beautify your home. All the shrubs, trees, flowers, can all be organized into a tasteful manner and create great appeal to the eye. This advice has added much value to the industry, and a giant portion of its inventory. Since this area of your property has such potential, it is vital you make the right choices about treating and maintaining your greenery.

The idea that the outside of the home can influence the evaluation of a building is all the more reason to take lawn care seriously. The only difficult part is deciding how to go about it. Will you do it yourself, and if so do you have the "taste" to put together a beautiful lawn? Or will you hire someone to revamp your lawn for a pretty penny?

There are many products out in stores to help you, but what you need to remember is that lawn care isn't a sprinkle and forget event. It takes some practice, along with wisdom how to use your money and respect of the people looking to buy your home.

It's a good habit to continually take care of your lawn so the value is always there. Once you have a feel for what you're doing you know what looks good and what doesn't. With time you can see the strengths of your property and enjoy all the outdoor amenities. 

While these points may seem obvious for a home owner, they can still be applicable to high-rise office building. A property should be attractive, accessible, comfortable, and memorable. As long as you're smart about what you're doing and don't half ass it, you can prosper.

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