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PLEASE GO TO www.locationlouisville.com FOR OUR LATEST VIDEOS AND INFORMATION FOR ALL OF YOUR REAL ESTATE NEEDS!
Today we’ve got a few different strategies for handling a common real estate dilemma: Needing to buy and sell at the same time.
Today I’m here to share some important information with homeowners and potential homebuyers here in Louisville. I’m going to focus on those of you who need to sell a property, but are also looking to buy a property at the same time. It’s a common occurrence, but it’s also a common headache that can be easily solved.
Inventory is tight in the Louisville market right now. Many people in this situation have one big fear: being homeless. You’ve got a nice house that will most likely sell quickly, but you aren't sure how quickly you’ll be able to find a new home and you don’t want to be stuck in the middle. This is a fairly common situation. There are two methods that we use to allow you to purchase a home prior to selling it. I’m going to detail them both for you today.
The first method you can utilize is a bridge loan. A bridge loan essentially bridges your two properties together, as its name implies. That gives you just one payment for both properties. Once you sell your original home, you can take that money, turn it over to the bridge loan, then refinance into a traditional mortgage. It might seem complicated, but it’s pretty traditional and pretty easy to do. We know from experience because we’ve been able to use this method plenty in the past.
The second method involves taking equity out of your home (or a home equity line of credit) to use to purchase another home. I have clients who have been in their home for quite a while with great equity positions. Even if you don’t have quite enough equity at the time to fully fund your purchase, you can borrow money against the equity in your home. This is known as a HELOC, or home equity line of credit.
However, there is a caveat here: You can not have your house on your market when you apply for this line of credit. Banks don’t like to loan on short-term investments. They would much rather have you pay a lot of money over a long period of time.
If you want to put together a plan, here’s what you should do. The first step is to apply for the HELOC, take that out, and put it in a checking account. When you find the perfect property, you may be able to apply that amount to the purchase. If you have enough cash, you can pay cash for the home and then put your home on the market. Once you sell the house, you can start paying off the HELOC, which basically becomes a second mortgage on your home. The beauty of the HELOC is that you don’t have to start paying for it until you use it.
With these two strategies, you can find the home of your dreams without having to worry about being homeless or paying for two mortgages at once. If you have any questions about either of these methods, your personal situation, or about the Louisville real estate market in general, don’t hesitate to give me a call or send me an email anytime. I would love to hear from you.
Starting your home search is an exciting process, but there are six specific mistakes that you must avoid making if you want to close on your dream home.
Here are the six things you must never ever do when searching for a home. Committing just one of these mistakes can possibly ruin your home purchase.
1. Don’t start without a Realtor. This is first on the list because it’s arguably the most important. A Realtor will have your best interests in mind. Plus, the Realtor you choose will sit you down, show you the whole home search process, and explain how it works. It’s a little bit more involved than going to a car dealership and one of the salesman saying, “Let me talk to the manager and see if I can get that price knocked down for you.” There are many steps to follow, and you want someone who has your best interests at heart involved with you.
2. Don’t deal with an online lending service or a lender who isn’t local. Make sure you deal with a local lender. I know those online lending services can look awfully nice and they can promise a lot of things, but if something goes wrong awry on the 11th hour prior to you closing on your loan and getting your dream house, you’re stuck trying to dial an 800 number instead of being able to walk into an office, look your lender in the eye, and telling them there’s a problem that needs to be fixed.
3. Don’t lowball every offer. If you’re looking at properties priced between $200,000 and $300,000, don’t think that you’ll get one of those properties for $50,000 off. You need the seller to work with you throughout the sale of the house, including during the inspection phase, so it’s a bad idea to offend them with a lowball offer.
4. Don’t underestimate your budget. If you talk to a local lender who approves you for up to $200,000 but you tell your Realtor that you’re only interested in looking at homes around $115,000 and $125,000, that’s a huge difference in price range. This means you’ll see homes with different amenities in different locations, and you might not find a home with the amenities you like in a location you desire, and vice versa. Be financially feasible and understand what you want. Talk to your Realtor and your financial provider and work out a plan that works with your budget.
5. Don’t forget the closing costs and prepaids. These are things that can be negotiated (see rule No. 1), and you need to understand what it will cost you prior to actually closing on your home. Closing costs and prepaids can qualify as their own topic, so if you have any questions regarding them, don’t hesitate to reach out to me.
6. Don’t make any large purchases prior to purchasing your home. It’s a toss-up between this rule and rule No. 1 as far as which is most important. Not making any large purchases means, among other things, no purchasing of any cars or any car leases. Also, don’t co-sign anything for anybody because, financially, you’re the one that’s on the hook. Once you qualify for a loan and start searching for a house, you’ll get all sorts of things in the mail. Put those aside and ask your Realtor and/or financial provider about them so you know what you’re getting into. A large purchase can disrupt your home buying plans, so ask questions before you move forward.
If you have any more questions about how to conduct your home search or you or anyone you know is thinking about buying, selling, or investing in real estate, don’t hesitate to reach out to us. We’d love to help you.
Winter is an amazing time of year to sell your home. Today, I’d like to share seven reasons why that is.
Too often, people believe that they need to wait until the cold weather is gone before they make their move in the market. Today, I’m here to bring you seven reasons you shouldn’t wait for the ground to thaw before you hammer in that For Sale sign.
1. Less inventory equals more attention. Serious buyers are out in full force at this time of year, and there are far fewer homes for them to look at than during other times of the year. This means that your home has a great opportunity to stand out. So, make sure it does. Remember, you can’t sell something that isn’t for sale.
2. Job relocation. When companies move their employees around, they like to schedule these relocations during the first quarter of the fiscal year. Only during winter months will you have a chance to capture these buyers. If you wait until spring to list your home, you will miss your chance to work with these highly motivated buyers.
3. Locked-in Realtors. Agents who are representing buyers at this time of year are definitely going to want to see your property. Don’t miss your opportunity to take advantage of the high levels of buyer interest you’ll see in the winter. Since there are fewer homes for sale and higher buyer demand, you have a good chance of getting multiple offers on your home.
4. No landscaping? No problem. Winter is an easy time to show your property. During winter, you don’t need to worry about spending hours on mowing the lawn or trimming the bushes. Let the elements take care of all of that. As long as your home looks clean and presentable, you’re good to go.
5. Lighter square foot. There are fewer buyers during this time of year, which means fewer people will be coming through your home. Of course, as I mentioned in the first point, the buyers that will be looking at your home are more serious and attentive. Although, you may have fewer showings, the showings you do have will be of higher quality.
6. Faster sales. Usually during the winter, the transaction will move more quickly. Loan officers and other people you’ll work with won’t be juggling as many transactions as they would be at other times of the year. This means that all the focus will be on you and your sale will probably move more quickly.
7. Higher price. Winter’s lack of inventory and high level of serious buyers means you will likely be able to get a better deal than during other times of the year. Typically, you’ll earn at or above your list price.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
Our local real estate market is heating up this winter. As a homebuyer, there are a few things you need to do in order to be successful in this fast-paced market.
The weather is getting chilly, but our local real estate market is heating up. If you are buying a home, I have three tips to help you prepare for our fast-paced market.
1. Set up immediate property alerts. Everyone starts their home search on the internet these days, so it’s important to make sure that you set up immediate property alerts. Bigger companies like Zillow, Trulia, and Realtor.com only put properties online when they feel like getting around to it. The key to getting immediate notifications about properties is to stay local.
For instance, you can register on my website, www.FindLouisvilleListings.com, and get immediate property alerts. We update our listings from the MLS every 15 minutes. Our team is also constantly searching for your home. We will update you as soon as a property that meets your criteria hits the market. It’s important that you are the first one to know when a home hits the market; if you are the second or third to know, it may already be too late.
2. Work with an aggressive real estate agent. Not all agents are created equal. The one question that you absolutely must ask when interviewing agents is, “Are you a full-time real estate agent?”
There are a lot of part-time agents out there. A part-time agent simply won’t cut it these days. You need someone who is truly dedicated to finding properties that match your criteria. As I said before, if you don’t know about a home as soon as it hits the market, it is probably too late to buy it.
Everyone in the Todd Martin Group works full-time. We have your best interests in mind, and we want to get you the best house possible.
I also recommend working with an agent who specializes in your needs. Don’t work with a jack-of-all-trades. Hire a buyer’s agent. A buyer’s agent will devote 100% of their time to finding you a home. Other agents have to split their time between homebuyers and sellers, which is not ideal for buyers in today’s competitive seller’s market.
3. Be prepared to make an aggressive offer. I know this sounds harsh. Back in the day, you could look at the property, come back for an open house, look at it one more time, and sleep on it before deciding to make an offer. There simply is no time to waste in our current market.
The best thing we can do is walk into the home search process prepared to make an aggressive offer. One thing that you can do to strengthen your offer is to get pre-approved before you start looking at homes. That way, you know exactly what you can afford and won’t waste time looking at homes above your price range. Submitting an offer with a pre-approval letter also shows the seller that you are serious about purchasing the home.
There are a few other things you can do to make your offer more appealing to sellers. We have a number of different strategies to help you get the home you want without overpaying for it. We can help you make that offer so that you still come out ahead. We will create a win-win situation, so ask us about our best strategy to get you into the house.
If you have any other questions about buying a home in this fast-paced market, just give us a call or send us an email. My team and I would be happy to help you!
If you want to be ready for the winter, you’ve got to act in the fall. Here are 10 fall maintenance projects you’ll be thankful took care of, as well as a few bonus tips.
It’s the time of year when the bitter winds and the waning sunlight make any task that doesn’t involve sweaters and cocoa sound like dull work. However, if maintenance work sounds bad now, think of what it will sound like when winter comes and everything is frigid and barren. Fall is the time to think about maintenance for your home.
Now that you have your house and you’re a seasoned homeowner, you’ll know that you’ve got to take care of your house just like you would a child. Yes, that’s correct: just like you would your own child. It’s that important that you maintain your property.
I want to talk about some of the tasks that are going to help you maintain the value and integrity of your home as the season changes. Remember, doing these now will prevent more work later on when it’s even chillier.
Care for your trees and shrubs. If you have a tree with dead wood in it, you want to make sure that it’s strongly rooted and won’t fall over if we get a heavy snowfall or a bad storm. Take care of what’s surrounding your house.
Rake your leaves. If you get a nice snow cover, you don’t want anything to suffocate your grass. Raking before the snow comes will allow your grass to grow nice and green in the spring.
Clean your gutters and your downspouts. The reason that this is important is that if we do get a freeze, you don’t want the gutters to be weighted down so much that they actually pull away from the property. That could become a problem in the future.
Check your walkways and railings. Make sure these are clear and secure.
Shut off your exterior faucets. I have a side-reeling hose on my house. It had worked fine, but when I went to turn it on, I discovered that where it had been connected had frozen, expanded, and busted. I had to get a new one. So take your hoses down and shut off all the water to the exterior. When you do this, make sure you don’t have any water in the line because that could be an issue.
Check your doors for drafts. If you notice that your doors are a little breezy, put a little bit of weather stripping around the door to help keep that warm air in and keep the cold air out.
Check your safety devices. You don’t want alarms going off for no apparent reason. Now is also a good time to check that your smoke alarms and carbon monoxide detectors are still working. Also, remove any A/C units from your windows.
Clean your dryer vents. As the moisture comes out, the cold could cause the lint to freeze up in there.
Consider an energy audit. You can always have an energy audit conducted through LG&E. They’ll be happy to come out and tell you where you might be wasting some energy.
Consider a plan for your HVAC service. You should try to have your HVAC system serviced once every six months, that way you’ll know that the mechanicals in your house are working well when the cold of winter does eventually settle in.
There are a few other things you can do to prepare your home for the cold weather as well.
For instance, make sure you seal any gaps around the exterior of your property. That way, you won’t have to deal with mice or other critters inside your home.
I also recommend stocking up on winter supplies in case of a major snowstorm. Make sure that your shovels and ice scrapers are in good shape. Pick up a bag of ice melt that is safe for any pets and plants, and restock your emergency kits for your car and your house.
If you have a snowblower, have it serviced and purchase fuel.
It’s always a good idea to clean your chimney this time of year, too.
Finally, take a day to tackle some deep-cleaning tasks that you might have missed during spring cleaning. For instance, in the kitchen, you can clean the oven, wash the walls, and scrub tile grout. A clean home will feel cozy and bright as the days get shorter and darker this season.
Like I said earlier, you should treat your house like you would your own baby.
As always, if you have any questions or know someone who’s looking to buy, sell, or invest in real estate, please don’t keep us a secret. We’re here to help, and we’re always happy to talk to you. Hope to speak with you soon!
Today I am excited to introduce you to our new buyer’s agent, Michael Kearns.
As we come into the fourth quarter of 2017, I have some exciting news to share with you.
As you know, we are always looking to add services and individuals to our team to help you with your real estate needs. That’s why we recently brought on Michael Kearns as our local buyer’s agent.
Michael has an exciting background in the insurance industry and decided to enter real estate.
“I am excited to transition from sports insurance into real estate as a buyer’s agent,” says Michael. “Being a part of this team excites me, being a Realtor excites me, and the sky seems to be the limit with this organization. I can’t wait to help you.”
A well-defined structure is vital for a successful team. At The Todd Martin Group, we do everything we can to help our agents close more deals than the average agent. Our team is designed to help new agents like Michael hit the ground running and start selling homes.
Not only does our real estate team benefit our agents, it also helps you. Since we have a number of specialists, we are able to offer a broader level of service and expertise than an individual agent.
Individual agents have to juggle paperwork, marketing, lead generation, and more all on their own. We divide up these tasks so that our buyer’s agents can focus on helping buyers and our listing agents can focus on helping sellers.
If you have any questions for Michael or you know someone who is interested in buying a home, you can reach him at 502-802-6044 or firstname.lastname@example.org.
If you know anyone who is interested in a real estate career, send them our way. Like I said, we are always looking for great new team members to provide a higher level of service to our clients.
As always, if you have any questions about the Louisville real estate market, just give me a call or send me an email. I would be happy to help you!
Multiple offer situations are common in today’s market. If you haven’t won the house of your dreams yet, you may want to consider the backup offer.
Our local real estate market is extremely competitive right now. Multiple offers are very common and buyers are getting frustrated.
Unfortunately, buyers often have to make offers on multiple houses before one finally gets accepted and they go under contract. On average, most buyers have to make offers on three to four houses before they actually land a deal.
If you’re looking for a particular property or find a house you really like but don’t get accepted, you can always ask your agent to put in a backup offer.
When you make a backup offer, it’s important to understand that you need to negotiate the contract as if the seller has not already accepted another buyer’s contract. Pretend that other contract isn’t even there.
One of the benefits of the backup offer is that you’ll actually know what the price of the property is and what condition the home is in.
The backup offer also puts you in first position if that other contract falls through. Even in a competitive market like ours, buyers can get cold feet. Maybe they don’t like some of the problems uncovered by the inspection support. Maybe the buyer loses a job or gets relocated in the middle of the transaction. Sometimes divorce proceedings can cause a real estate transaction to fall apart.
There are a number of things that can cause a buyer to back out of a contract. If that happens and you have your backup offer in place, then you are in prime position to purchase the house.
Plus, having your backup offer in place gives the seller peace of mind.
Backup offers benefit sellers as well. If you accept an offer from an unreasonable buyer, you don’t have to worry as much. You also won’t have to worry about that buyer’s financing falling through because you’ll have another offer on the backburner.
If that deal falls apart, you won’t have to go through the frustrating process of relisting your home. When your home comes back on the market after a deal falls through, you are not in as strong as a position as you were before. Some buyers might wonder what’s wrong with the property that caused your initial buyer to walk away, causing you to make less money on your home sale.
If you accept a backup offer, then you already know that there is someone ready to step in and purchase your home if your current deal falls apart.
In this competitive market, it’s important that you work with an experienced real estate agent who knows about strategies like the backup offer to help you meet your real estate goals.
If you have any other questions about backup offers or if you need help navigating this crazy real estate market, just give me a call or send me an email. I would be happy to help you!
To make sure your home smells great before showing it, try one of these seven tips.
In order to make things smell great in your home before showing it to potential buyers, try one of these seven proven methods:
Mix vinegar and water into laundry detergent and dishwasher fluid to pack an extra deodorizing punch.
Keep baking soda in your refrigerator. It will draw food odors into it and out of your fridge.
Activated charcoal helps remove litter box odors. I’m not talking about grill charcoal, either. This specific type of activated charcoal will keep your kitty box smelling clean.
Fresh-baked cookies always smell great in the home. Everyone loves the aroma of fresh-baked chocolate chip cookies, so baking some before your showing is a great way to make things smell better in your home. Just don’t burn them!
Use an air freshener, but don’t overdo it. Some buyers may have a sensitivity to these smells, so less is more.
Air freshener nightlights. These are a great option when you want to disguise the air fresheners against the wall.
Dryer sheets in clothing drawers and tennis shoes. They’ll lock in the unwanted smells and leave your clothes smelling fresh and clean.
Getting rid of the stink in the house will help you sell a lot quicker. If you have any questions or you’re looking to buy or sell a home, please give me a call. I’d be happy to help you.
Before you buy a home, there are some things you should be aware of. Here are five of them.
By this point in the year, we are definitely into the hot buying season. If you’re a first-time homebuyer out there, there are five distinct obstacles that you’ll have to face in order to get that home of your dreams. We’re going to talk a little bit about each of them and how you can make sure that these obstacles are no obstacle for you.
1. Obtaining a down payment. This is one of the hardest things for first-time homebuyers. Putting down 20% like your parents did is a lot to ask, especially with home prices where they are. The good news is that you have a lot of options. FHA loans only require a 3.5% down payment. I even have some 1% down programs that gift you $8,700 in free money. There are a lot of tips and tricks that I have at my disposal to help make that purchase more affordable for you.
2. Maintaining a credit score. It’s very crucial that you maintain a score of at least 620. If you’re not sure what your score is, I can get you a free credit report. If it’s not quite where it needs to be, I can help you get it to where it needs to be.
3. Understanding front-end and back-end lending ratios. Lenders look for front-end and back-end ratios. For front-end ratios, they typically don’t like to see anything above 33%. They also look at your debt-to-income ratio to ensure that you won’t end up house poor.
4. Having a good appraisal. We’re seeing a lot of high-priced offers in the market, but they don’t really mean anything unless the home appraises to at least that value. When a low appraisal comes in, the bank won’t lend the full amount. However, you still have options. You can negotiate with the seller and meet in the middle, or you can reduce your offer to the appraised value. You could also end up paying the difference in cash if it’s the home you really want.
5. Satisfying the loan conditions. Most people don’t understand that you aren’t pre-approved until you complete the entire loan process, which typically happens in the last few weeks of purchasing a home. You can get a jump on this process by getting a pre-approval before you even start looking at homes. Then you will know exactly what you can afford and your loan will close within two to three weeks.
If you have any questions for me or know anyone looking to buy, sell, or invest in Louisville real estate, give me a call or send me an email. I look forward to hearing from you.