Louisville Real Estate Journal

Congress Fails to Act on Loan Limits

Lamont — Mon, 24 Oct 2011 20:44:31 +0000

Congress failed to extend the FHA and GSE mortgage loan limits. On Oct. 1, those limits declined in 669 counties in 42 states, including 16 counties in KY for FHA loans. The new limits will be equal to 115% of local area median home price (from 125%). The high cost cap will fall from $729,750 to $625,500. To determine your new loan limit, find your county; if your county is not listed, your limit will not change. NAR will continue to work with Congress to attempt to restore the higher limits as quickly as possible. Click here to view county chart.

What The Heck Is A RESPA???

Lamont — Thu, 20 Oct 2011 19:08:25 +0000

The Real Estate Settlement Procedures Act, commonly referred to as RESPA, was passed by Congress in 1974 to give consumers certain information and protections when financing a home. RESPA applies whenever a consumer obtains a conventional, FHA, VA or HUD loan. RESPA is administered by HUD. The Act prohibits those involved in the settlement of a real estate deal from receiving referral fees or kickbacks that would increase the cost of settlement charges. Lenders are required to provide consumers with an information bulletin within three (3) days of application, a good faith estimate of closing costs, and a closing statement 24 hours prior to the closing. Now you know…

Stigmatized Properties (Just in time for Halloween ;-)

Lamont — Fri, 14 Oct 2011 17:54:17 +0000

There is no specific stigmatized property law in the State of Kentucky. If you want to know whether there has been a murder, suicide, violent crime or ghost in a particular home, you must ask the question. Once asked, the seller or the seller’s agent must disclose the information. However, without being asked, there may be instances where the seller has not disclosed such information, and by law is not bound to disclose. Likewise, as a seller, you must determine whether a murder, suicide, violent crime or ghost in your property has created a stigma and therefore a defect. If it is the reason that you are moving, you may want to disclose it, as that has become a stigma to you. My advice would be to disclose it anyway, as it is always better to have a knowledgeable buyer rather than one who feels duped after the closing. Buyers will find out the details of the property from neighbors or others once they move in, so it seems wise to disclose all known facts about the property.

Old School Marketing?

Lamont — Wed, 12 Oct 2011 01:24:01 +0000

Let’s go old school for a moment. Trust me; I am not saying online marketing (social media) should not be No. 1. But until humans become robots and do not have eyes, there are other ways to market as well. Here are some ideas I have come up with to market yourself offline: 1. FSBO’s- Yep, the dreaded “for sale by owner.” Yes, they can be a waste of time; but honestly, how much time does it take to ring a door bell? That’s all the time it takes to approach a FSBO. Instead of taking the usual, “Can I list your home?” approach. How about offer to do a marketing flier about the home with your info? If the seller has any buyers that are interested in the home ask them to give you a call. Offer to post their home on Twitter, Facebook, and blog about it. It can’t hurt you to try a different approach than most REALTORS®. 2. Real Estate Magazines- We all love to look through the real estate magazines that show homes for sale. Grab a bunch of these from your real estate office or from your grocery store. Then staple your business card to the front and drop off a copy monthly at your local salon, dentist and doctor offices, oil change places, etc. What does it take to do this? Some business cards, a staple, etc. Try it!! 3. Books- Yes, books are dying. But until they do, go by your local book store and find the real estate section. Stick a business card in the first chapter of every real estate and mortgage book. How long can this take???? Seven minutes per store — I timed it myself. (Not sure about this one…Lamont) 4. Magnet Sign- “No one has ever called off a car magnet.” Really? Ask around your office — someone has gotten a deal off their magnet sign on their car. Get a nice and easy-to-read magnet for your car. Heck, how else can someone tell you sell real estate when they see you at a traffic light? 5. Name Tags- Yes, trust me, I know. No one has ever said, “You look amazing in that outfit. Now if only you had a tacky looking name tag, the outfit would be complete!!” But just like with magnets, it gives you the easiest and most direct way to make sure everyone knows you sell real estate. Make sure the name tag is direct and easy to read. Heck, make it catchy. Maybe a name tag that just says “Looking to buy a home? Ask me!” How much does a name tag cost? Maybe $15 on the high side? 6. Open House- Again, no one likes them… which gives you an even better opportunity to ask REALTORS® in your office if you can hold an open house for them, for one of their listings. It helps get that REALTOR® more traffic for their listing and it helps you get some new potential buyers. You can also try this approach with smaller home builders. 7. Market to a Professional- Think of a marketing campaign and aim it at a certain professional group. Try to choose a group that has some influence on other people such as CPAs or financial advisors. Or groups that have many coworkers, such as teachers, firefighters, police officers, or HR departments. Then offer them something for free. Some examples are a free home warranty, appraisal, free iPad, or talk about a specific program that is just for them (e.g. tax credit for teachers). Then make a flyer and drop it off at schools, fire houses, offices, etc. These groups are great to market to because if you do a great job they will tell all their friends and coworkers. Like I mentioned in my previous post, online marketing should still be king. But, there are still other ways to market yourself. If business is slow, or you are new to the real estate business, then this list gives you some inexpensive easy ways to market yourself. David Krichmar has been in the real estate business since age 19 and is currently a mortgage expert in Sugar Land, Texas. Connect with him at www.daveyourmortgageguy.com or @DaveMortgageGuy.

Homeownership Matters!

Lamont — Tue, 26 Jul 2011 13:45:40 +0000

NAR’s Homeownship Matters Bus Coming to Louisville!
The National Association of REALTORS Homeownership Matters Bus to promote homeownership will be making a stop at the Greater Louisville Association of REALTORS office this Wednesday, July 27 from 11am to 2pm. So come by the Association and check out the bus! It’s a SWEET ride!

Sales Down 1.8%, Values Strong

Lamont — Tue, 18 Jan 2011 21:02:30 +0000

Despite an early surge from federal housing tax credit, Louisville home sales declined 1.8 percent in 2010 from 2009’s volume, according to figures released Thursday. But the median price of the 11,442 sales made by the Greater Louisville Association of Realtors was $138,000 last year, up from $132,000 in 2009, the association said. The slip in sales comes after a slight gain in 2009 over 2008’s volume. Still, Realtors President Lamont Breland said he was pleased with the figure. “Being down 1.8 percent for the year to me is not a bad thing when you’re in the middle of a recession,” said Breland, principal broker at the Breland Group. “We’re not that far off from the previous year, so now we just need some good economic news to keep it going.” In Southern Indiana, sales dipped 13 percent below 2009’s volume to 2,529, according to the Southern Indiana Realtors Association. Breland attributed Louisville’s strong gain in median price to a market devoid of first-time homebuyers, many of whom moved quickly in late 2009 or early 2010 to get a tax credit worth up to $8,000. Meanwhile, homes in the $200,000 to $500,000 range having been selling easier, he said. Buyers claiming the credit had to sign purchase contracts by April 30, and most eligible sales were completed by the original deadline of June 30, though Congress extended the deadline to Sept. 30 at the last minute. In the first six months of the year, when the credit was available, sales outpaced 2009’s volume by 29 percent. But in the second half of the year, without the credit, sales were down 24 percent. Mike Gandolfo, an agent with Semonin Realtors in Louisville, said the federal credit and similar deal offered by the state of Kentucky did little more than change some buyers’ timing. “All you’re doing is moving a buyer from August to April. It’s not like you’re stimulating new people to buy,” he said. “That’s exactly what happened in 2010.” Gandolfo predicts sales will be about flat this year before rebounding strongly next year due to more fundamental factors, like the dearth of newly constructed homes over the last few years. “In 2012, we’ll look really good,” he said

Source: Chris Otts, Courier Journal

Jobs, Lending Key in Market Recovery…..duh!

Lamont — Thu, 02 Dec 2010 18:28:00 +0000

Low interest rates are not enough to bring the market into full recovery, real estate prognosticators say. Kenneth Rosen, chair of the Fisher Center for Real Estate at the University of California, Berkeley, points to pent-up demand and cheap loans as pluses, but would like to see the Fed help community banks get back on their feet and resume lending. Unemployment is another enemy of a real estate recovery. Only 1.1 million of the nearly 8.5 million jobs wiped out by the recession have been added back since January, Rosen said. James Saccacio, CEO of RealtyTrac, says foreclosures are also likely to be a big factor until 2014.

Source: Inman News, Matt Carter (11/23/2010)

7 Trends That Will Drive the Future of Housing

Lamont — Tue, 23 Nov 2010 17:58:17 +0000

Hanley-Wood’s ProSalesOnline.com identifies seven trends that the magazine’s editors believe will have the biggest impact on housing in 2011.

1. Big builders are wringing the extras out of construction costs and dropping the national average cost-to-build 36 percent to $52 per square foot.
2. Starting in 2011, Energy Star will ramp up its efficient design and quality installation standards. To get Energy Star certification, builders will have to install the right insulation, HVAC systems, and other features related to energy efficiency correctly every time.
3. Sheds are the next evolution. As homes get smaller, a separate shed will become a popular home addition.
4. There are 81 million “Echo Boomers” who were born from 1981 to 1999, compared to just 78 million Baby Boomers born from 1946 to 1964. These children and grandchildren of Boomers will drive home-building for years.
5. By 2015, demographers say, more than two out of every five households occupied by Generation Y people born between 1981 and 1999 will be WINKs (women with incomes and no kids).
6. Make room for the “Sandwich Generation” – Baby Boomers living with both their kids and their parents. These families like having two master suites, a second cooking area, and lots of storage.
7. Baby Boomers want to keep working and continue to live where they have always lived. They want a first-floor master bedroom near the washer and dryer and lots of convenient storage.

Source: ProSalesOnline.com (October 2010)

Credit Score Requirements Stifling Borrowers

Lamont — Tue, 23 Nov 2010 17:49:10 +0000

Despite record-low interest rates, an increasing number of Americans can’t afford to buy a house. The nation’s two largest mortgage lenders, Wells Fargo & Co. and Bank of America Corp., have raised the minimum required credit score on FHA-insured loans to 640 from 620. Requiring a 640 credit score excludes about 15 percent of FHA borrowers, FHA commissioner David Stevens said. Such a high limit will further delay a recovery in the real estate market, says Ron Phipps, president of the National Association of REALTORS®.

Source: Bloomberg, Jody Shenn and John Gittelsohn (11/17/2010)

Why Homeownership Matters

Lamont — Mon, 15 Nov 2010 16:42:02 +0000

There’s a reason home ownership is called the American Dream.

Owning a home has long-standing government support in this country because home ownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy.

The Federal Housing Administration, Federal Home Loan Banks, and Fannie Mae were all created during the worst economic crisis our country ever faced in the Great Depression. Lawmakers back then understood the value of home ownership in fostering communities, creating social stability, and building wealth over the long term.

Home ownership didn’t create the foreclosure crisis – Wall Street greed and irresponsible lending practices did.

The real issue facing the nation’s economy right now is that many Americans can’t find meaningful work to support their families.

Housing cannot recover until jobs return to the economy.

Home ownership is an investment in your future.

Home is where we make memories, build our futures, and feel comfortable and secure.

Owning a home offers immediate shelter benefits and long-term value.

Home ownership strengthens communities. Homeowners are more likely to be involved and engaged in local issues and move less frequently than renters. This helps prevent crime, improve childhood education and support neighborhood upkeep.

Owning a home is one of the best ways to build long-term wealth, providing both equity accumulation and tax benefits over time.

A fixed-rate mortgage might last 15 to 30 years; renting is forever.

We need to ensure public policies that promote responsible, sustainable home ownership.

Anyone who is able and willing to assume the responsibilities of owning a home should have the opportunity to pursue that dream.

Realtors® care as much about keeping families in their homes as they do about helping them find the home of their dreams.

When people lose homes to foreclosure, our communities, the housing market and our economy all suffer.