Friday, February 1, 2008

Buy! Buy! Buy!

Wow! What a great time to buy a home! Interest rates are extremely low, lenders have stabilized their underwriting requirements, and there is a huge inventory of homes to choose from in the Louisville area... It's an ideal market to maximize your buying dollar!

If you are thinking of purchasing your first Louisville home my website, Louisville Homes, has loads of useful information and tutorials to help get you started.

If you would like to read about defensive buying techniques, especially when the economy exhibits some signs of challenge, go here. I have posted an article giving advice on how to take advantage of a buyer's market here. Keep in mind I think there are endless ways to structure deals that can be very beneficial in their own right, especially in the current market in the Greater Louisville Area.

There is no doubt that a savvy buyer who has properly prepared themselves financially and through thorough market research stands to be in an advantageous position presently. The mortgage rates are going to fluctuate, home prices will probably begin to rise as the market recovers, and the inventory will decrease as more and more buyers make their move. It's a great time to buy while the market adjusts!

Please feel free to contact me through my website with any questions regarding buying a home. You can also search the entire Louisville MLS for free on my site. Good luck, may this market treat you well!


Anonymous said...

Hi Joe,
Nice blog. There aren't many Louisville realtors who have a consistent online presence.

You're right on that interest rates and inventory are in the buyer's favor.

But a lot of Louisville owners are still stuck in the "flip this house" mentality and posting absurd asking prices.

As a buyer planning to relocate to Louisville sometime this year and looking in the Highlands, I am repeatedly coming across homes that are priced $100-$200k above what they appraised at within the last 12-18 months. In some cases there are improvements yes, but rarely more than $40k or so worth, and plenty don't even have that going for them.

Maybe it's because too many owners are upside down on their mortgages/HELOCs. Or a lot of amateur investors got into the market at exactly the wrong time. I don't know. Whatever it is though, their asking prices trends smell like 2005 not 2008.

As I contemplate making offers, I'd prefer to avoid bank or city appraisers, as it is in their best interest to always appraise at or near asking price. In the interest of this being a productive comment though, what 3rd-party independent appraisers do you recommend in Louisville?

I'll check back here for your answers. Thanks!

Joe Hayden Real Estate Team said...

Hi LB...

I really appreciate your comments and observations!

First, I'm not sure where you are relocating from, but in Louisville independent appraisers are not typically used to determine an offering price. The offering price comes from recently sold comparable properties, currently active comparable properties, and an analysis of the individual home's specific features, location, and condition. With that information, you as the buyer would make a determination regarding price and base your negotiations around that number.

I certainly am not discouraging you from seeking the input of an appraiser, but they are going to do essentially the same thing to determine a price and they are missing one key element: your motivation. How much you love the home, the location, it's individual features, etc., etc., etc., will play a role in pricing, along with your personal financial goals. These, and other factors, can raise or lower the price accordingly per your individual needs and an appraiser just cannot account for these changes.

If you wanted to use an appraiser as part of your pricing strategy, contact me directly for a recommendation. (Look on my website link above right for the number.)

As far as the Highlands is concerned, it is an area that has seen an increase in pricing, and it could be argued that the increases have been out of line with the market in certain areas. You mentioned a few reasons that play a role, and general market education goes a long way, as well...

The bottom line is...I would place a reduced emphasis on the prices you find on the internet and focus more on the specific features you desire, and then do your due diligence to determine a fair market price. I can help with this when you get to that point. Seller's want to sell and most are reasonable when presented with a motivated, qualified buyer, and evidence that supports the offer. No matter what, you will pay a bit of a premium for the Highland's market for a number of reasons.

I hope this reply was helpful! Feel free to contact me privately through my website if you would like a more personalized answer. With a little more knowledge of your wants and needs, I can probably save you some time and effort, and give you some guidance specific to your particular needs...

Thanks again!

Anonymous said...

Yes I agree, great blog! If you can get a house for the actual current market price, not the absurd prices that "lb" said. It is a great time to buy. A lot of people will be saying shoulda-coulda-woulda, after the market comes back!