Louisville Real Esate Tips

Do it yourself projects...where do I even begin?  That's an excellent question not only for this blog piece, but also for the idea of do it yourself project in general.  I've recently moved into a new space and have been trying to think of ways to decorate on the cheap while also adding a little bit of my own taste, flair, blood, sweat, tears, what have you, to the mix.  Now here is where my issues arise - I LOVE the idea of do it yourself projects, and I see many on the internet that look relatively easy enough and that I would enjoy having in my place, but I'm not really a handy person.  What to do?

One of the first projects that I saw that really caught my attention was for a mirror.  I want a mirror in my living room, but mirrors can be expensive.  I found a website called Dollar Store Crafts that had a really fun project for taking dollar store mirrors and combining them to make a larger, window pane style mirror that you could make for around $10.  Have I made it?  Nope.  Just today I came across Casasugar.com and they had an article about 90 DIY projects, many of which caught my eye.  Will I make any of them?  We'll see.   

I'm not really sure what my problem is where do it yourself projects are concerned.  Maybe I'm worried that my finished product won't live up to what I saw online? ...

Maybe the largest mistake I've seen from people who are wondering how to sell their house, or why their home won't sell, is a simple one to correct - don't get greedy and overprice your house from the beginning of the process.  Some sellers take that gamblers chance that their home REALLY IS worth more than what they've been told, only to put themselves in a position where their house sits on the market longer than it should.  Let's take a look at some of the pitfalls of overpricing your home:

1. Homes priced lower will sell more quickly:  Look around your neighborhood, are there homes similar to yours?  If there are homes in your area that priced lower than yours they will sell faster.  You did those sellers a favor by pricing yours above theirs, thus making their similar home look more attractive.  Do your homework, find out what other homes in your area are selling for, AND what they've historically sold for. 
2. Your home will stay for sale longer:  The goal of anyone selling their home is to sell it as quickly as possible, no one puts their home up for sale hoping to sit on it for weeks and months.  It is better to price your home right the first time than to keep adjusting the price every few months which will just make potential buyers want to negotiate even more because they will see the price has been dropping and/or will figure you're more desperate the longer your house is for sale. 
3. You will...

If you've ever thought about renting your home out for the Kentucky Derby then there are some guidelines that you should pay attention to that could help you make a little bit of cash without ever betting on a single race.  I got these tidbits from Zach Everson, owner of kentuckyderbyhomerental.com, and while it might be too late for this year, it never hurts to start planning ahead for 2013. 

1. Your home must be in a desirable location - as Zach points out, just because you own a desirable home here in Louisville doesn't mean it will rent.  The further away you get from Churchill Downs, the less likely that your home will rent.  People want to be close to the action and being close to the track makes them feel immersed in the event. 
2. Get good photos of your home - Declutter your house, raise the shades on a nice, sunny day, and take photos from angles that will make your home look as spacious as possible.  Take pictures of the front and back yards also.
3. Advertise your home on the internet - There are several options here that you can choose from.  Craigslist, which is free, but is much harder to make an imprint on.  A website such as Zach's that will help potential renters find your home, but leaves it up to you as the renter to negotiate with renters and prepare your home for their arrival.  A full-service agent who will handle everything for you, but also requires a hefty commission (up to 30% according to Zach).  Or, if you have a little tech...

Like we discussed in our blog piece the other day, the kitchen is one of the most, if not the most, important room in your house when it comes to resale value.  A well-organized kitchen is not only helpful in making cooking and cleaning easier, but is also more presentable to your guests. Here are a few tips to help maximize space in your compact kitchen. 

Avoid using the kitchen as your go-to room:  The kitchen is already one of the most used rooms in your home; so when it comes time to pay bills, do homework, or fill out your taxes, choose another common area in the house like the living room, this will help you keep unwanted items out of the kitchen that don't belong in the kitchen. 

Stash the appliances you're not using:  Look at most kitchen countertops, do you see a microwave, a blender, a coffee maker, and various other kitchen equipment laying around?  Get rid of any appliances that you don't use regularly - I'm looking at you as-seen-on-TV-item - and find places in cabinets and cupboards for other non-essentials. 

Use plastic bins and jars:  Food boxes tend to pile up everywhere.  Plastic bins keep foods fresher while allowing you to see exactly how much you have left.  You can also use glass jars if you don't have them where small children can reach them.  Used properly glass jars can look sophisticated and decorative. 

Get a spinning Tupperware set:  Don't lie, how frustrated do you get when you're searching for a matching lid to the Tupperware container you're putting your leftovers in?  Invest $15-$20 in a spinning Tupperware set.  They'll save you search hassle and take up very little space. 

Overhead...

Looking to sell your home?  The kitchen may be the key!

House flippers know it.  Stagers all across the nation know it.  Real estate agents know it.  Now you need to know it...a kitchen can sell a house.  If you've never thought about it before, then think about it now - the kitchen is the heart of the home, a focal piece of many family rooms, and where we spend a lot of our time.  Because of all of this, kitchens play a very important role in the buying and selling process.  However, kitchens can be one of the more expensive rooms to renovate; so take a few things into consideration when looking to sell your home.

• Most buyers want a kitchen that is ready to use the day they move in.
• Don't price yourself out of the market.  If homes near you are selling for $100K with tidy, but not luxury kitchens, then it's not time to spend $40K on upgrades.
• Check out the competition.  Go to open houses in your area to check out what your competitions' kitchens are like.
• Mimic your area home's kitchen style.  Wood cabinets and granite counters?  You'd be wise to consider making the same move.
• Not wanting to put in the time to upgrade?  Price concessions may be in order to entice buyers.

The key is to not let yourself get overwhelmed.  Sometimes small updates can make a big difference.  Changing the paint, uncluttering the area, changing out the handles on your drawers and cabinets, or even a faux -granite counter top.  So do a little research and make your kitchen competitive with area homes...this can make or...

If you've been on the fence about homeownership, now is the time to take action! 

Take a look at five reasons homeownership is great:

1) Equity - When you pay rent, you never see that money again. It is lining the landlord's pocket. Yes, buying a home may come with some initial costs (down-payment, closing costs, etc.), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Homeownership is about building long-term wealth.

2) Relationships- Renters tend to see their neighbors come and go quickly. Apartment complexes tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other.

3) Predictability-Well, as long as you have a fixed-rate term on your mortgage it's predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years.

4) Ownership- You can renovate, update, paint, and decorate to your heart's desire. You can plant trees, install a pool, expand the patio, or do holiday decorating! The bottom line is this is your home and you can personalize it to your taste.

5) Great Deals- It's a great time to buy....

5 Tips For Buying A Foreclosure

Buying a foreclosure is the latest rave. We get calls into our Louisville real estate office daily from Buyers wanting to take advantage of all the great foreclosures that have hit the Louisville real estate market. Buying a foreclosure is not for everyone. Lenders want to move their foreclosure inventory quickly so they turn to real estate agents to list the properties. We in turn list them on the MLS and market them to any qualified Buyers. Investors gobble up most of them but there are some savvy Buyers that make offers and win. If you are not properly educated, it can be a problem-filled process to get to the closing table. Here are 5 tips to help you successfully buy a foreclosure.

1. Use a Buyer’s Agent that is an expert in foreclosures. Don’t ever use the listing agent that represents the bank. Most Buyers think that they will get a better deal if they use the listing agent. This mistake can only cost you money, as the listing agent wants to get top dollar for their lender. Dual agency is a touchy subject and I personally do not understand how the listing agent can truly make sure you get the best deal while also making sure their lender gets the best price. The Miles & Smith Real Estate Group sell several foreclosures each year. We also guide our Buyers on the rehab process. We assist with determining value once the property is fixed up and what necessities the property should have to reach that value potential.

2. Know your financing options: All foreclosed homes are going to require a pre-approval letter submitted with any offers. They will also not accept any contingencies in the offer. Most foreclosure homes will...

What do you do when you get the phone call only weeks before you’re closing that the home doesn’t appraise for the contract price?

You are not alone as 16% of real estate agents reported that their sale fell through due to a low appraisal.

You have options and you can fight back!

Appraisals in Louisville are based on recent sales in your area. Over the past couple of years this has been challenging because values rose quickly during the boom and fell just as fast during the bust. . The deals that Buyers have received with foreclosures and short sales have created dual pricing between normal sales and distressed sales.

Appraisals are not to protect the Buyer or the Seller, but to protect the lender should the Buyer default on the loan. The lender wants to make sure that they are making a worthy investment. They want to know that if the Buyer defaults they can sell the home for what is owed. Due to the huge losses banks have taken on foreclosures in the past years, they are not taking any risks. They care more about protecting themselves from a bad investment than giving a Buyer a loan.

 So what can you do to protect yourself from having your entire home packed up a ready to move only to find out you have to unpack everything?

1. Sellers get an appraisal before you list your Louisville home for sale.
Unless you are listing your home with an experienced real estate group like www.MilesSmithGroup.com, you should consider asking a licensed appraiser to determine value. This is also a huge selling point that you can advertise to any potential Buyers. Buyers are very leery of pricing on homes and always want a deal. An appraisal...

Selling your home during the holidays can be a tough decision to make.  Holiday decorations go against the number one rule when showing your home – keep everything impersonal. It is very hard to find a balance between selling your home and celebrating the season. Below are a few helpful to do’s and don’ts to help you show your Louisville home during the holidays.

DON’T decorate the exterior of your home any earlier than 2 weeks before the holiday.

DON’T leave your decorations up for any longer than 1 week after the holiday

DON’T congest your home with decorations.

DON’T use holiday lawn ornaments

DON’T forget to salt your driveway and pathways and clear all snow and ice before a showing.

DO keep decorations to a minimum. Don’t let your decorations take away from some of the great features your home offers.

DO consider purchasing a smaller tree. A large 10” tree can crowd a room and make it feel smaller.

DO try to stick to non-specific holiday themes. Winter themes with garland, pinecones etc.

DO add to the exterior appeal of your home by adding some color with mums or poinsettias.

DO add a holiday welcome mat.

For more information feel free to visit us at www.MilesSmithGroup.com or email our listing specialist Patrice Miles with your specific questions. Patrice@MilesSmithGroup.com

One of the most important questions to be answered prior to selling in this challenging market is “how much is my home worth?”  An uninformed decision could literally end up costing you thousands of dollars!  You could potentially make the mistake of selling your home for less than it’s worth; or if you price too high you could cost yourself and your Realtor precious time by not getting the house sold and chasing the market. The only way to truly determine the fair market value of your property is to get an unbiased appraisal from a licensed professional. An appraiser will visit your home and do a thorough walk-through to determine its quality, condition, and marketability.   He will measure to determine the correct square footage.   Then, after gathering all the necessary data about your home, he will complete a thorough analysis of the neighborhood/area and current market activity as it pertains to your property.   Given this information, and other tools at his disposal, an appraiser can provide you with a professional opinion of your home’s value.   This will assist you and your Realtor with setting a listing price and during negotiations.  An appraisal will ultimately help to get the home SOLD much more quickly and for a better return on your investment!   And, if you’re a buyer in this unprecedented market (lucky you) an appraisal can help prevent you from spending too much money! Just like a home inspection, an appraisal is an essential tool to help facilitate any real estate transaction.  And remember, the appraiser does not work on commission.  ...

Traditionally many Louisvillians wait until the warmth of the Spring to place their home onto the market. The thought is that as the days heat up so does the Louisville real estate market. There is truth to this fact... The Louisville market historically is cyclical. We heat up until Derby at that point the entire town takes a week's vacation and then its back to business until mid July. At that point the real estate market peaks and then continues to slow through the Thanksgiving holiday. What many locals don't understand is the savvy benefits of putting their house up for sale during the cold winter months. However, many strategic minds are starting to understand the clear benefits of going against the grain. So why is it a good idea to put your house onto the market during the winter months? Here are a few current facts to keep in mind...

1. By going on the market during the winter sellers beat the pent up rush of homes that will come on in March. Remember the early lister catches the buyer!
2. There is currently twice as much housing inventory as we have in a typical market. But many of these homes go off the market during the winter. So, your direct competition can be as much as halved during this time!
3. Buyers are looking at 20-25 homes before they buy! This is unprecedented. Less competition means a more likely sale.
4. During the winter the buyers are typically more serious than at any other time of year. If they're looking at homes and it snowing outside you can pretty much guarantee a much greater sense of urgency. You'll have fewer lookers and more serious buyers viewing your home.
5. At present there is less discounted properties on the market. With the banks currently trying...

So your Realtor is asking you for a price reduction… You’ve had some buyer showings and the feedback has consistently been that the home needs updating. So what do you do? Well, you can reduce the price in hopes of being the best deal in the neighborhood. Then, maybe Buyers will look past the problem areas because the home will be such a good value. Or you can leave your price alone and spend the money on making the updates. Decisions, Decisions… The Miles & Smith Real Estate Group deals with these critical decisions every day. The answer to the question is twofold. Consider this… It’s a fact that over 90% of all Buyers in today’s very competitive market start their searches on the internet. If you are considering a price reduction, you’ll need to reduce your price enough to reposition your listing in a new price category search. For example, if you are currently priced at $249,900 and then reduce to $244,900, you are still attracting the same $249,900 Buyer demographic. Ultimately, you would need to do a price reduction to the $224,900-$229,900 range in order to grab the attention of a totally different Buyer. $20,000-$25,000 is a lot of money!! Think of all the wonderful updating you could do for that amount… The Miles & Smith Real Estate Group has experts on staff that can help you transform your home into something modern and beautiful on a limited budget. See example below… This property was priced at $219,900. Ultimately, to capture the attention of a different buyer and renew interest in the home, we would have needed to reduce the price down to the $204,900-$209,900 range. The feedback we had received was that the home was too small and needed too much updating for the price. Buyers were overwhelmed at the prospect and as a result continued to walk away. So, instead of doing a price reduction, the Sellers gave The Miles & Smith Real Estate Group a budget of $5000 to directly address these concerns....

Why not do both? With The Miles & Smith Real Estate Group we offer not only to sell your home but to lease it at the same time. This helps our Sellers take full advantage of the market. We do not want to leave any stone unturned. Who would lease my home? Relocation clients make up 50% of our tenants right now. These tenants are relocating to Louisville and want to get to know the area before purchasing a home. The other 50% of tenants cannot qualify for a loan so they have to rent. The lending industry has changed a lot in the past 3 years. Self employed individuals and business owners normally cannot get a loan on a home unless they show good income on their tax returns. Also, due to the short sale and foreclosure crisis we have been going through, homeowners are now homeless. These individuals have recovered from their loss and make adequate income now but because they have not met the 3 year guidelines they cannot get a home loan. How will I know they will be a good tenant? We take care of everything. All applications submitted to lease your home will be screened. We run criminal, employee, and credit checks on every individual. What do I do once I have an accepted lease? At this point you can either take over or our property management company can. Property management takes the pressure off of you. Here are a couple of ways that a good company can keep you out of trouble while your home is in the tenant’s hands: Most landlords know it only takes one bothersome tenant to cause major legal and economic headaches. A good property manager is equipped with the awareness of the latest landlord-tenant laws and will make sure that you are not leaving yourself...

The holiday season, aka winter months, finds many sellers choosing to take their homes off the market. However, those who decide to weather the variables will find some advantages to the season. Since the chill in the air causes the numbers of marketable homes and the “looky-loos” to dwindle, the buyers that do come-a-knockin’ are serious candidates and are looking to make a purchase. ‘Tis the season to capitalize on this situation! This is done through various staging features. You might be saying at this point “Not one more thing…” For that very reason it is the perfect time to bring in a professional home staging business to do the winter make-over. An hour consultation or a couple hours to transform the rooms can be just the gift that reduces your holiday check list. Before specifically addressing holiday staging tips, there are a few elements that need attention due to the seasonal change. Shorter days equate to darker spaces. The first order of business is to adjust your lighting scheme, inside and out. This time of year many buyers will be viewing the home when it is dark. It is essential to add more lamps for both mood and task activities. Amber colored bulbs in a lamp or two will turn up the toasty-warm atmosphere in a given area. For the outside create a solar light path which would effortlessly lead buyers to the front door. These affordable lights could be artfully clustered throughout the front and back yard to add a bit of sparkle and interest to areas that are not very visible. Simplicity and restraint are still the staging guideposts during the holidays but within the margins loads of cheer can be displayed. Remember you are selling real estate - not your holiday collections - the buyers need to see your home’s square footage and outstanding features.

• Exterior: A grouping of poinsettias, door wreath...

Does your realtor know how to speak the truth in love? What do we mean by that? Well many realtors can only tell customers what they want to hear. The price 'may' be too high but we'll just see. The condition of those cabinets 'may' be an issue. Those pictures 'will do'. We can 'probably' get away without staging this home. What they're essentially saying to you is; if we wait long enough, we may find a sucker who wants to pay top dollar for this house, in this condition, even in this market. If you're hearing things like this from your realtor, then do yourself a favor and find a realtor who will level with you. Find one who will tell you the price is way too high. We're getting lots of showings but no offers. The bathroom really needs to be painted before we can show this home. Those minor repairs must be fixed before we can list this home. Those are the tough conversations that have to be had. Get a realtor with the backbone to speak the truth, but also get one that can do it with grace. In this market, there's no time to play around. Get serious.

With an open house, a lot is out of the control of the seller and the realtor team. You can't force buyers and agents to come look at your home. Occasionally if the situation merits it, you can get creative with a contest or promotion. But you still can't push a button and dial up genuine interest. So what can you control? Here's a quick list. Running an ad about the open house is still often a good idea. Sharing it on Facebook, Twitter, Craigslist and on a website or blog are all givens these days. People like to consume information across several different platforms. Getting the word out to an email list and a list of agents is also crucial. Get a realtor team with a big list. Taking the little steps can also lead to an advantage for the seller. Little steps equals proper signage that actually stands up and stands out. Directional signs for hard to find neighborhoods are a must. Balloons are a part of the arsenal as well. Another big key is getting the word out to neighbors. Knocking on a few doors to see if someone has a friend, relative of business associate who may be interested in living nearby. Neighbors have a vested interest in who moves in. Remember that. Questionnaires at the open house are a great way to tweak the strategy based on early feedback. All that being said, only 4% of homes sell via open house offers. So open houses are part of an overall strategy but don't bet the house on them. Literally.

When putting your house on the market, sellers are often told you need to update this or rework that. Maybe even to repair certain areas. One particular area that often comes up is the bathroom. We are frequently asked how much it will cost to update “our bathroom”? The cost varies of course according to the bath and the house. You can spend as little as $1,500 on a repair/remodel of a full bath and as much as $45,000, or more, depending on the extent of the custom remodel. Sometimes it's better just to give the bath a “face-lift” rather than a complete remodel to get ready to sell. How to do that again depends on the house and the price range of the property you are going to sell. Your Louisville area Realtor and Home Stager will most likely offer suggestions.

Listed below are 10 helpful hints to give that bath an updated look:

1. Thoroughly clean and remove any discolored caulk and grout around the tub and or shower.
2. Thoroughly clean and remove any discolored caulk and grout around the floor and the base of the commode.
3. Replace grout with a tub and tile caulk that is available at your local hardware and or home improvement store.
4. Remove any discoloration in the commode bowl. There are many products you can use to help with this process, again they are available at your local hardware or home improvement store.
5. A fresh coat of paint always makes the bath look “newer”. 
6. Make sure all the towel bars and paper holders are secure, and replace these if they look “old”.
7. If you have a window in the bath, change the window treatments, giving the bath an updated look.
8. Install new light bulbs in the light fixtures, and clean the fixtures to “lighten...

Unlike the 70’s song answer, “…Absolutely nothing”, professionally staged homes produce positive results that statically mark an advantage for sellers in today’s real estate market. However, before looking at the numbers let’s take a moment to examine the bare bones of this newly cultivated animal. Like many professions today, areas of specialization emerge to elevate their proficiency and effectiveness. Realtors have long advised their clients to de-clutter, paint and so on in preparation for putting the property on the market. Staging has become that area of specialization which advances the home as a commodity. It has become an essential part of the marketing strategy. The staging process is a systematic and coordinated methodology in which knowledge of real estate, home renovations and creative design principles are applied to entice and stimulate a buyer to make that all important offer. Although direct in its appeal and memorable in its presentation; staging, different from interior design, is mindful first of a broad audience. While interior decorating strives to hone in and articulate the family’s style and personality, staging turns the focus outward, de-emphasizing and neutralizing personal decor. In tandem families must shift from the day-to-day functional home to one that is prepared and arranged to showcase its features.

Example of changing functional day-to-day room to a cozy place to relax and enjoy the warmth of a romantic fire:

...

Guest Post By: Robert Burge

Have you ever seen something amazing? Something funny, breathtaking, a once in a lifetime moment? You grab your camera, shoot the photo, only to realize later that it didn’t come out. Photography has become a huge industry in the last 100 years. Advertising of every kind, websites, family vacations all involve an image. With the invention of digital photography 10 years ago, everyone is now a photographer of some sort.

So what can you do to optimize your photography to ensure the best result? Or at least a better one. Well, the first thing is to know your camera. Even though camera’s are fully automatic, they still don’t know what you are trying to accomplish with every photo. You can still tell it to do things like use the flash, zoom in and out, and even when you want to take a long exposure night shot. Let’s take a look at a few of the most common mistakes people make with photography.

Mistake #1. Not turning on the flash. Without light, photography would not be possible. Can you see with no light? Neither can a camera. Light burns an image into film, or digital sensor for modern cameras. In general if the light looks to low to read a book in, odds are you need a flash to add light to the image. Some pro and advanced cameras can do very well in low light, but this is not the case with most everyday point and shoot cameras that moms carry in their purse. Flash fills in shadows, brightens the overall image, and helps people not look like zombies. Keep in mind that your flash on most cameras is only good for 10 to 15 feet. So don’t try to take photos of little Johnny on the basketball court 50 feet away. The flash will never make it to him and your photo will look more like a black hole from outer space. Unless your Captain Kirk, I don’t think that is the type of photo you want to look at.

Mistake #2 Recognizing good...