Time Running out for first time home buyers

The video below explains why you might want to start looking for your first home. Some of the main points are; November 30 is the deadline to get the $8,000 tax credit, interest rates are still low, and the market is full of choices. But take a look for yourself.

http://online.wsj.com/video/clock-is-ticking-for-first-time-home-buyers/14C00BED-8BE2-4D25-AF49-C3802F7BB5CB.html

Recession Proof

Although we are in a slow market and the media is giving everyone a gloom and doom perspective about the housing industry. I can assure you of two things. First Louisville isn't as bad as some of the major markets, because there was never really a big market boom here. So our market is nearly as flooded with listings like Florida, Nevada, Arizona and California. Second there are certain parts of Louisville that are somewhat recession proof. If your inside of the Waterson freeway then you really have nothing to worry about. Houses there are selling fast and I think the trend is leading people to move closer towards the city instead of the suburbs. So if your looking to purchase a home and want a safe bet you may want to consider moving more inward instead of outward.

The Signs are a good Sign!

Just got back from the realtor store to buy some open house signs and other marketing tools. They were completely sold out of sold signs and sale pending signs. The person who runs the store said they are a hot item lately and she has to constantly order more. Maybe the signs are another sign the market is starting to pick up!

Selling a Condo?

If so make sure its in mint condition. If its not you may have a hard time selling your home, its been my experience that when people buy condos they don't go for the one with the most potential or the biggest. They go for the nicest. It's my belief the entire reason people purchase a condo is because they want maintenance free living. So if a potential buyer walks into a condo they are immediately assessing how much work its going to take to them to make this place to their liking. The one with the less work involved usually wins.

Stupid Banks

Just got a deal done with a bank owned property were there were multiple offers. Wanted to share this with you readers so you can learn from this deal. A lot of times these bank owned properties are really good deals and they get multiple offers and they can some times sell for more than what they are offered at. In this case after the property had been on the market for less then 24 hours they has already gotten an offer before we could submit ours. So we went in several thousand dollars above the asking price to ensure that we won the bid. A few days goes by and the bank counters with best and highest offer. They always do this and it's lame, I hate it. So we stayed right were we were and ended up getting the property. So just goes to show being aggressive and not backing down will sometimes get you exactly what you want.

Getting Deals Done!!

Just want to follow up my last post with some good news. I was able to get a deal done this week for a guy on a duplex that should be an absolute cash cow. He purchased it for about $1,000 under the assessed value and should be able to rent it for $900 a month. Given the place is in really bad shape in takes a special person (very handy one) to make a deal like this work. The place has about $45,000 worth of damage if you were to contract the work out... but if you can do it yourself the price tag would be about $15,000. Just goes to show that there are some great deals out there and if your capable of buying then you should.

Rental Houses

If you feel unsure about stocks and bonds and investing your money on wall street. A great alternative is to take advantage of the poor housing market and low rates and get yourself a rental house. I have a rental house that the tenants pay mortgage on every month and it is a blessing to have around tax season. Between that home and my current residence I was able to write off over $20,000 in interest payments. The best news is after 30 years you have a house that's paid for and a nice chunk of change to go towards your retirement. All you need for an investment loan is 10% down. There are plenty off opportunities for people to purchase small homes and condos for very low amounts. Its something you may want to put some thought into.

Market Picking Up?

The market could be picking up I have been showing houses and fielding phone calls at the same frequency as I was this time last year. The only problem is I have far less closing scheduled, but one has to feel like this market is heading in the right direction. With the tax credit and with rates teetering between 4.75 and 4.85 it seems like things will break lose soon and Louisville Kentucky will be back to business as usual.