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Kentucky Association of Realtors Meeting Information....

Thursday, September 27, 2007
by Mike Parker
Interested in what was discussed at  the Kentucky Assocaition of Realtors meeting?  Check out our podcast.....visit http://www.switchpod.com/f40788.html?puser=none.

Home Improvements Make A Big Difference!!!

Tuesday, September 25, 2007
by Mike Parker

Submitted by Jill Kuchle:

Many times people think by having a swimming pool or other "luxury" items inside their home, it will get them more money for their home.  Not necessarily!  A swimming pool or a built-in spa may not cause a home to sell for any additional money.  In lower price ranges, it may even hurt the sale of the home.  As the price goes up, more of the cost may be recovered but as a rough rule of thumb, you can generally only expect to get half of what the pool cost. 
 
More examples of items that don't increase value include wool or other high
quality carpeting.  Oak paneling compared to ash paneling, solid brass plumbing fixtures, and slate or aluminum roofs.  Reason being, the new buyer expects the quality to be good but will not usually pay for the top of the line.  On the other hand, there are some improvements that can cause the home to sell for more money and should be considered by homeowners especially
when updating is appropriate. 
 
 Kitchens and bathrooms will date a home quicker than anything. An updated kitchen with new appliances, counter tops and attractive cabinets will make buyers get excited and can make the difference when deciding between two homes.  A tremendous change can be made in a
bathroom by adding new light fixtures, new mirrors, and neutral paint  to
complement the colors featured in the type of flooring you have.  Don't expect a buyer to have the imagination to be able to see what your home will look like if they replace the carpet, paint, or add new appliances.  Take the time and spend the money to make these improvements before you put your home on the market. It will sell quicker and for more money than if you give the buyer an "allowance".
 
For more advice on making home improvements to sell your home quickly, contact The Team today  at 859-647-0700 or email Mike at mike@mikeparker.com .

The Northern Kentucky Real Estate Market..What Can I Expect??

Thursday, September 20, 2007
by Mike Parker
Fall is here and that should be good for the real estate market for a couple of reasons.  First, July and August are always slower than most of the year.  I call it a roller-coaster season.  You have people trying to get vacation in before school starts and then when school starts, the market (in a normal market) does not pick back up until usually 7 - 10 days AFTER Labor Day.  The second reason is the media has slowed down on chewing on the mortgage business all over the front pages of our newspapers and the TV.  This tends to scare a lot of people off.  I guess one of the advantages of bing in the real estate business for over 20 years is that you know when the market goes up and down.
 
The past 18 months have not been anything like a normal market.  I do not see our market for the next 9 months, improving.  I actually see it still staying like ti is now, maybe sliding even a little back-wards.  Look for prices to pretty much stay where they are.  I do not see any appreciation in the next 9 months.
 
The rate change has been good but it is going to take more than that to get the buyers out.  Our inventory is about 10% to 15% higher than normal, but we have 40% to 50% less buyers in the market.  That is why you are seeing longer days on the market.  Look for it to continue.
 
Here is pretty good advice.  If you are going to sell your home, price it right for the get go - AT MARKET VALUE!!  Don't give yourself room for negotiating - there is no room for that in this current market.
 
There are five things that sell real estate:
1.  Price
2.  Location
3.  Condition
4.  Terms
5.  Agent you select
 
Price and condition are HUGE in a market like this.  You have to be priced at fair market value or below, and your condition must be in TOP NOTCH- your home has to shine!!!  The front door area and walking up to the home as to be in TOP FORM!  The home has to be exceptionally clean and roomy, not too much furniture and not a bunch or toys or things laying out across the room!  Price and Condition are EVERYTHING in this market!!
 
MARKET FORECAST
 
Look for our market to stay soft, the underwriters for the mortgage companies have tightened the loop buyers have to jump through and have made it a lot tougher to get a loan.  We will see 20% to 30 % more rejections from the mortgage companies.  You will see less people applying for loans because they are scared of the process.  You can still get a 100% loan, but the cost of that loan is high and you have to have a 700 plus credit score to get it.  A lot of people just don't have that good enough of a credit score.
 
Our traffic will remain lighter than normal, it will be better than it was in July and August but lighter than the last 3 or 4 years.  If you have your home for sale or are thinking about putting your home up for sale, work on the condition and work on the price. 
 
Here is the BRIGHT side of our market.  There has NEVER been a better time to buy a home than now!!  You might be getting less for your home today, but you are saving more money buying your next home because that seller is in the same boat you are.  Builders are giving HUGE incentives to build so you can get great buys there too!! 
 
The market is what the market is.  The Northern Kentucky real estate market has run strong for the last ten years.  We did not see the appreciation that the rest of the country saw, but we did well.  Look for the next two to three years to be steady at best.
 
For any comments or questions feel free to contact at mike@mikeparker.com

Renting VS. Buying....The Pro's and Con's!!

Saturday, September 15, 2007
by Mike Parker

Submitted by Jill Kuchle:

Can't decide whether to buy or to rent???  Maybe this can help you make that decision!! 

BUYING

* You will have a GREAT tax write off.

* Your housing expense may never go up

* You can use, decorate, make physical changes to, and ENJOY your home as YOU see fit!

* You may increase your equity as your home appreciates in value.

* You are not at the mercy of your landlord.

* Your house will become "home," not a temporary living situation.

RENTING

* You will have NO tax write off.

* Your rent can go up each year, typically four to ten percent.

* You must get permission from your landlord to make ANY changes to your home.

* You have no equity built up - your money is gone for good.

* You can be evicted, lose your security deposit (attention pet owners!!!) and more!!!

* Your living situation is always temporary!!

Most people buy homes to have control over where they live.  Although investment features are important, the satisfaction of owning your own home and freedom from paying rent are VERY important as well!! 

In a survey done by the National Association of REALTORS of 6,000 homeowners and 2,000 renters - perhaps the largest ever of attitudes toward home ownership - showed that 76% of owners and 66% of renters considered pride of ownership a very important reason for buying.

Almost equal portions of owners and renters - close to 7 out of 10 - said a dislike of paying rent was an important reason to buy.  Sure renting offers a lifestyle that's nearly maintenance free, but writing a rent check is also like watching your hard earn money sail off into the sunset!!!

Believe me, sacrifices are WORTH it.....almost 7 in 10 renters in the National Association of REALTORS home ownership survey said they planned to buy a home in the future.  More than 3/4 of these people said they were willing to sacrifice to do that. 

Check out the chart below to see how the cost of renting based on a 6% rental increase each year can add up....

 
$300 per month for rent today You’ll Pay
$350 per month for rent today You’ll Pay
$400 per month for rent today You’ll Pay
$450 per month for rent today You’ll Pay
$500 per month for rent today You’ll Pay
$600 per month for rent today You’ll Pay
$700 per month for rent today You’ll Pay
This Year
$3,600
$4,200
$4,800
$5,400
$6,000
$7,200
$8,400
Next Year
$3,816
$4,452
$5,088
$5,724
$6,360
$7,632
$8,904
3rd Year
$4,045
$4,719
$5,393
$6,067
$6,742
$8,088
$9,438
4th Year
$4,288
$5,002
$5,717
$6,431
$7,147
$8,575
$10,005
5th Year
$4,545
$5,302
$6,060
$6,817
$7,576
$9,054
$10,605
6th Year
$4,818
$5,620
$6,424
$7,226
$8,031
$9,635
$11,241
7th Year
$5,107
$5,957
$6,809
$7,660
$8,513
$10,210
$11,916
8th Year
$5,413
$6,314
$7,218
$8,120
$9,023
$10,824
$12,630
9th Year
$5,738
$6,693
$7,651
$9,023
$9,564
$11,472
$13,388
10th Year
$6,082
$7,095
$8,110
$9,564
$10,138
$12,164
$14,192
TOTAL
$47,452
$55,354
$63,272
$71,175
$79,094
$94,856
$110,719

So let's get started on the purchase of your new home!!  Contact us if you would like to receive lisitngs as they hit the market via email or check out a hassle free website www.nkyhomesbyemail.com.

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Photo of Mike Parker - CRS Real Estate
Mike Parker - CRS
HUFF Realty
60 Cavalier Blvd.
Florence KY 41042
859-647-0700
859-486-3300
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