Wakefield Reutlinger Realtors

w e N e h t om t u o k Checrealtors.c WR

A Publication of Wakefield Reutlinger Realtors

Insider Real Estate

Vol. 1 No. 36 Good news for the Greater Louisville Area--year end statistics showed a sustained increase in sales volume for a 6th consecutive quarter. The annualized statistics, which include 12 month home sales by quarter since the third quarter of 2009, show a steady increase in the pace of home sales. The market continues to show improvement since the post-tax credit boost fizzled in the second quarter of 2011, said GLAR President Paul Ogden. The steady trend of improving quarters is a clear indicator the Louisville area housing market is on the right track, he added. There were 12,724 homes sold in the Greater Louisville Area by GLAR members in 2012, a 16% increase from 2011. The area also saw a 3% increase in the average price of a home which went from $163,163 in 2011 to $168,567 in 2012. The Greater Louisville Area continues to outpace the nation which saw existing home sales rise 9.2% in 2012. Keep in mind, however, that once you get into the higher price ranges in the Louisville area, the story is much different. Sales volume for homes around the $750,000 range was flat for the last 12 months and above the $950,000 level, sales fell 27%. Homes at the upper end, particularly those purchased during the mid2000s, typically arent worth what they were sold for during the markets peak years. All in all though, nearly six years after the crash, housing starts, prices and confidence are on the upswing.

1st Quarter 2013

TESTIMONIAL
Lee Jolly, Thanks for the great job you did on selling our home. You spotted its uniqueness, targeted its value, and worked effectively with both parties to seal the deal. You were awesome!
Frances and Terry

Louisville Area Home Sales Rise 16% in 2012

Homebuyers can expect a more competitive market in 2013 and should start the mortgage lending process at least three months before they plan to start seriously looking for a home because the process is expected to take several months under the new lending standards. Home sellers, in some price ranges, are shifting into the drivers seat with bidding wars expected due to the low inventory. This is already happening in the Louisville area. Lawrence Yun, chief economist for the National Association of Realtors, said pent-up demand is sustaining the market. Record low mortgage interest rates clearly are helping many home buyers, but tight inventory and restrictive mortgage underwriting standards are limiting sales, he said. The number of potential buyers who stayed on the sidelines accumulated during the recession, but they started entering the market early last year as their financial ability and confidence steadily grew along with home prices. Likely job creation and household formation will continue to fuel that growth. Both sales and prices will again be higher in 2013. On the other hand, Steven Ricchiuto, chief economist for Mizuho Securities, says higher taxes and cuts in government spending, along with still-tepid job growth, will weigh on the market this year. Youve probably already seen the best of the housing recovery, he says. And according to the most recent Kiplinger Letter, The housing industry, though on the mend, still faces a long convalescence.

For the second straight year, Southern Living magazine has named Louisville one of the tastiest towns in the south in 2013. The Derby City will be spotlighted in the mags February issue, which is on newsstands Friday. But in order to win the top honors, your help is needed. You can cast your vote in an online poll now through February 28 at www.southernliving.com/ tasty. The winner will be revealed in May. The Derby City is up against Asheville, N.C.; Atlanta; Austin, TX; Charleston, S.C.; Durham, N.C.; Greenville, S.C.; Memphis; Miami, and New Orleans.

Tasty Town

Louisville

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ALL THE WAY HOME...425-0225

This chart shows a rolling sum of 12 month home sales data, as measured each quarter.

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Volume 1 Issue 36

Fiduciary Responsibility and Real Estate Myths

price range may not consider your home because of the low price tag worrying there may be something wrong with it. Myth: The Neighborhood Realtor is the Realtors don't want to underprice or over- best one to sell your home. price your home. They have a fiduciary Truth: Realtors have been promoting themresponsibility to you to thorselves in neighborhoods for years and promote oughly research similar properties that have recently sold and carefully put together themselves as the Neighborhood Expert. a Comparative Market Analysis (CMA) to The truth is that a neighborhood expert has no advantage in selling your home faster or determine the most likely range of value. Market conditions, such as the number of for more money. Most likely your home competing homes on the market and homes will be sold to someone from outside of the that were on the market, but failed to sell, neighborhood or even from out of state. The Realtor that can do the best job of are other important components of selling is the one with the most comprehensive determining asking price. and effective marketing plan. The Myths of Real Estate! Myth: If the house sells in a few days, it There are several important real estate was under priced. myths that you should be aware of. Truth: Not necessarily; a quick sale may Myth: Real estate agents want to price mean the house was priced correctly for its homes low because theyll sell faster and easier without the agents having to do market and that buyers did their homework. Myth: Property condition is not important any work. to buyers. Truth: Professional real estate agents know that setting the price too low can be Truth: WRONG! A property in superior condition will always sell faster and for almost as harmful as setting the price too high. Buyers who are looking in a specific more money than a home in average condition

Do Realtors want to price your home lower than it is worth in order to get a quick sale?

with a lower price. Many sellers recognize this and repaint and re-carpet their homes in preparation for selling. These sellers know that home buyers purchase value and will perceive a clean, fresh home as more appealing than an average, lived-in, forgive-the-mess home. Myth: If you don't want to make repairs, lower your price. Truth: Not the best idea. A house that doesn't look its best may attract few or no offers. Condition remains critical to getting top dollar and moving a property fast. Although it can be difficult to decide which repairs to tackle, the best advice is to focus on those that offer the quickest payback, such as fixing a leaky roof. Myth: Pricing a home is a mysterious process. Truth: Your home will sell for whatever the market will bear. To determine the range of value, you simply need to see what similar homes are selling for. Because every home is unique, the final selling price will probably be determined by its condition. It is not a mysterious process.

Very Useful Websites

Weather Alerts: Warnings on winter storms, dense fog, high winds and other severe weather conditions in your area. www.wunderground.com/severe.asp Home Energy Saver: Free online evaluation of your energy usage and personalized recommendations for upgrades that can save you money. From the Lawrence Berkeley National Laboratory and the US Department of Energy. http://hes.lbl.gov/consumer Alternative Medicine: Authoritative information on preventing and treating insomnia, depression, motion sickness and other conditions through acupuncture, herbs, homeopathy, etc. From the University of Maryland Medical Center. www.umm.edu/altmed Medical Questions Answered: Look up answers to health questions posed by individuals or have your own answered for free by top doctors with whom you also can book appointments. www.ZocDoc.com Ask a Librarian: Library of Congress personnel answer reference questions through online chats or by e-mail. www.loc.gov/rr/program

Research Identifies Four Types of Buyers

Buyers are back, but theyve changed their mindset. Research points to four types of post-bust buyers: Well-researched and knowledgeable, in the know buyers have devoted hours to studying the market. This buyer views the home as a foundation for his or her life rather than as an investment vehicle. An in-the-know buyer with children researches schools before picking a neighborhood. Once theyve found it, they will not compromise on the area but may compromise on the size of the house or their commuting time in order to land at the location they desire. The wealth drain caused by the housing bust and the tight job market for young workers means multiple generations share a home. Buyers in this situation consider the needs of their immediate and extended family. As consumer confidence improves many consumers are saying no to doit-yourself projects and yes to move-in ready homes. Buyers who cut spending to survive the Great Recession plan to stick to their simpler lifestyles. No longer interested in McMansions, they now prefer smaller homes with less maintenance.

A new data-tracking component has been added to the Louisville Metro Government website dubbed LouieStat that offers citizens a much greater ability to check on how city government is operating and how well services are being delivered. Check it out: louiestat.louisvilleky.gov.

LouieStats

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F ROG S J U M P
Representing the sellers of historic "Frogs Jump Farm" in Oldham County, Dave Arnett and Tom Wakefield had the 111 acre farm on the bluffs of the Ohio River under contract in four months. The main house was built about 1835 by flat boatmen working their way along the Ohio river. Half timber floor joists with the bark still attached can be seen in the cellar. Frogs Jump, which has been in the same family for seventy years, is unique for the sophisticated architecture in a rural setting. The frame house has original floors, woodwork, mantels and a large entrance hall with wrap around staircase. Ronald Reagan was guest of honor at a party given in 1979. The wish of the sellers was accomplished with finding the ideal buyer, a couple devoted to the restoration of the home and grounds. Horses have returned to Frogs Jump where polo ponies and hounds were raised. In the final counteroffer of the sale, the sellers sent the offer folded in a silver humidor engraved with "Frogs Jump, 1933" with the admonition: "We plan to give this family heirloom to the new owners, and we hope that is you." The prized piece is ensconced in the library at Frogs Jump.
Based on excerpts from an article by Ron Phipps, past president of the National Association of Realtors: and bank statements are not enough. Explanations of all deposits and expenses over $1,000 are now required. And then there is the appraisal process. In general, you need direct, like-kind sales within six months and within a few miles of the subject property. If not, it will be a problem. What is also true is that the "appraisal review" is where the real problems occur. Someone in the process looks at the appraiser's work as something to pick apart. All of this is part of the process of compliance... to make sure the package is "perfect and complete." When Dorothy was lost in the Land of Oz and wanted to get back home, she just clicked her heels three times. Without our own ruby red slippers, what can we do to get back to a place where closings will happen on time? Here are some recommendations: 1. Understand the process, particularly underwriting criteria. 2. Whether you are a buyer or seller, be educated about the requirements. 3. Be realistic in timelines and expectations of outcomes. 4. Be proactive in real time with the process and bumps in the road. 5. Identify lenders who are most likely to close the loan. 6. Rely on the help and support of your Realtor.

Market Statistics on Louisville KY Homes for Sale

Below find statistics on homes for sale in Louisville, KY and on neighborhoods and communities in the Louisville area. Updated every day from the Louisville MLS, these market statistics include information on average sale price, average days on market, average price reduction, and more. Visit WRrealtors.com for information on your neighborhood, and we'd be happy to provide you with more detailed information including a list of recent solds in that area.

Getting to the Closing Table in 2013

If you have closed on a real estate loan recently, did it feel at times like you were in the Land of Oz? It does for many seasoned, professional realtors and their clients. So what is happening behind the Wizard of Mortgage Oz's curtain? What we know is that we have OVER corrected from the free-flow capital, no underwriting standards of 2004-2006. For example, prior to 2004, the average credit score for Fannie Mae and Freddie Mac mortgages was 720; today it is 760. This means that 15 percent of today's potential buyers cannot qualify. Why is it so much harder to get a loan commitment letter that actually means the loan will close? How can a commitment be rescinded two days before closing? The problem is that the market for mortgage backed securities is very limited. The federal government continues to buy or insure most of them, upwards of 9 out of every 10 mortgages. The government is providing the capital to keep the mortgage market, and in turn, the real estate market alive. So, strict underwriting standards are being applied precisely and aggressively. Some investors will penalize the origination loan company $30,000 if a mortgage defaults in the first year. Yes, that will make the processor obsessive! As a result, the mortgage package needs to be perfect and complete. Three years of tax returns

Interest Rates
Fixed 30 Year Fixed 15 Year Fixed FHA 30 Year Fixed 30 Year Jumbo 3.625 % 2.875 % 3.25% 4.5%

*as of February 4, 2013 - restrictions apply.

This is not intended to solicit a currently listed property.

Susannah Buecker Stevenson

Susannah specializes in relocation and buyer representation, including managing negotiations between buyers and sellers. She coordinates relocation for clients which includes a Louisville tour, placement in temporary housing, the selection of home location, touring local and regional communities, providing information on school options and tours, and building local relationships with banks, doctors, and other service providers. She currently assists recruiters and clients for a number of large and small organizations including the University of Louisville, Humana, Norton Healthcare, and Jewish Hospital. If you or anyone you know is in need of Susannahs services, call or email her today - 502-655-0300 / sbstevenson7@yahoo.com

Home of the Future is Now Jon Swartz | USA TODAY

No one lives in Microsofts model home in Redmond, Washington, but it is a template for the future. What once seemed conceivable only on The Jetsons is a real prospect in the next few years. If youve heard these utopian and futuristic promises before, only to be disappointed, this story is for you. Because as Americans embrace 2013 and the new year that is upon us, know this: The future of American homes is now. Home increasingly is where billions of dollars are expected to be spent on technology as consumers nest in their living rooms and bedrooms on smartphones, tablets and gaming consoles. Since The Jetsons animated TV show -- which touted a life-size in-home robot, a computerized kitchen and flying cars -- automated homes have been a staple in American culture, from TVs Futurama and the big screens I, Robot and Blade Runner to the pages of Wired magazine. For more than a decade, Bill Gates has rhapsodized about homes of the future. But he was able to achieve his digital dream home through his enormous wealth and contacts. Gates 66,000 square foot mansion on the shores of Lake Washington near Seattle took seven years and $63 million to build. It houses a computerized server system and a digitally controlled climate. But for most consumers, the ideal future home has been a pipe dream. For the complete article: http://www.courier-journal.com/ article/20130105/ BETTERLIFE06/301050028/Home-futurenow

Here are several design trends to keep in mind next year. Barbara Balinger 1. Smart Homes with automated controls 2. Outdoor living rooms and screened porches 3. Outdoor kitchens and vegetable gardens 4. Themed designs 5. Media rooms with a homier feel 6. New neutrals and color pops 7. More double-duty furnishings 8. Lighter looks 9. Green merchandise 10. Energy and water efficiency 11. Panelized homes 12. Handcrafted elements 13. Stylish kitchens and bathrooms

13 HOT HOME TRENDS FOR 2013

KITCHEN APPLIANCE TRENDS FOR 2013

Of course everyone wants a kitchen thats beautiful, but comfort and practicality are also musts. Here are some links to great websites that are in the know. sheknows.com realtor.org stylebust.com