The Louisville Real Estate Blog of the Joe Hayden Real Estate Team - Your Real Estate Experts!Recently posted or modified blog posts by tag - First Time Home Buyershttps://www.joehaydenrealtor.com/blog/Copyright JoeHaydenRealtor.com2014-04-04T20:31:52-07:00tag:joehaydenrealtor.com,2012-09-20:7206Considering Painting Your Louisville Home? These are the Best Paint ColorsWhether you intend to sell your Louisville home or you are just sprucing it up, giving your home a fresh coat of paint can make all the difference. New colors will give future buyers a sense of quality when they enter your home, create a sense of unity from room to room, and highlight furniture and decorations. Here are some color ideas to get you started on your paint renovations for your home.
Exterior Paint Ideas for Great First Impressions
White and beige are exterior favorites. Colors that range from beige to tan are very popular because they complement sprawling lawns, landscaped trees, and most colors of roof. And, while painting your house tan or brown might seem boring, bold hues, like blue or green (which are generally more expensive) can be used to accent the trim.
<img src="https://assets.site-static.com/userfiles/182/image/Painting_a_Home.jpg" alt="Painting a Home" title="Painting a Home" height="300" width="450" />
White is another excellent choice—40% of people like white as an exterior option. While not the most exciting, white fits well in most neighborhoods, which is something to think about as certain locations have pre-existing color schemes.
A white exterior also promotes an image of a clean, well-kept home, and its bright visage makes it appear larger than it actually is.
Kitchen Colors Should Be Light and Calming
Oranges and reds have become common for kitchens ever since it was made evident that those colors trigger appetite at an unconscious level. But, if you intend to sell your house, you will want to make sure that the hues are soft instead of obnoxious. Dark oranges and reds feel aggressive and do not offer many options for people who might want to redecorate.
If your kitchen receives a favorable amount of sunlight, consider the use of yellow as it generates a warm, spring mood.
Earthy Tones for Wood Floors, Dining Rooms and Living Rooms
While the kitchen is a place for vibrant, lively colors, living rooms and dining rooms work well with deeper, welcoming colors. Greens, browns, blues (even some burnt reds), are relaxing in these highly social rooms because they complement the wood of tables and chairs, and the metal of cutlery and dishes.
Earthy tones are exceptional in places that incorporate wood floors, wicker style furniture, or rooms with plants and books. Think about warm reds, deep greens, and how lighter shades can be used to accent features.
Browns work to remove glare in bright rooms. Tan and sandy shades are comforting and work with black sofas. Dark blue promotes sophistication, which is excellent for visitor rooms and accent walls. No matter what you go with, earthy colors work well in tandem and, when used throughout a house, can tie a home’s decor together.
Let's not forget about neutral colors. Basically anything creamy, or off white, is always a good option. While they might seem boring, and are not regularly seen in the upscale decoration magazines, realtors always recommend them. Why? Well, for two big reasons. First, neutral colors won't scare away any sort of buyer. They are clean, bright, and can match any sort of decor. And second, they always photograph well.
So if you are having trouble deciding what color to pick, these tips should help. Never forget, that the neutral choice might be the best choice. Happy painting!
About the Author: Joe Hayden is the Team Owner and Manager of the <a itemprop="url" title="Joe Hayden Real Estate Team - Your Louisville Real Estate Experts!" href="https://www.joehaydenrealtor.com">Joe Hayden Real Estate Team</a> - Your Louisville Real Estate Experts!
2014-04-04T19:59:00-07:002014-04-04T20:31:52-07:00Joe Haydentag:joehaydenrealtor.com,2012-09-20:2507Home for Sale 9613 Walnutwood Way Louisville, Kentucky 40299This adorable brick ranch home at <a title='9613 Walnutwood Way Louisville, Kentucky 40299 Official Louisville MLS Listing' href='https://www.joehaydenrealtor.com/louisville-mls/detail/3/1326226/9613-walnutwood-way-louisville-ky-40299/'>9613 Walnutwood Way in Louisville</a> is the perfect place to call home!
<img style='display: block; margin-left: auto; margin-right: auto;' alt='9613 Walnutwood Way Louisville, Kentucky 40299 Home for Sale' src='https://assets.site-static.com/userfiles/182/image/9613_Walnutwood_Way_Louisville_Kentucky_40299_Home_for_Sale.jpg' height='299' width='499' />Welcoming you into the home is new Pergo flooring that sets a stylish tone. Entering the living room, you will enjoy the large bay window that provides lots of natural light.
<img style='display: block; margin-left: auto; margin-right: auto;' title='9613 Walnutwood Way Louisville, Kentucky 40299 Living Room' alt='9613 Walnutwood Way Louisville, Kentucky 40299 Living Room' src='https://assets.site-static.com/userfiles/182/image/9613_Walnutwood_Way_Louisville_Kentucky_40299_Living_Room.jpg' height='322' width='537' />The bright, spacious kitchen features a new ceramic tile backsplash and is able to accommodate a large table and chair set. The laundry area is tucked away just off the kitchen behind louvered doors for easy access. There is also a formal dining area with new energy-efficient French doors which lead you to the gazebo and an expanded deck area that wraps around the above-ground pool.
<img style='display: block; margin-left: auto; margin-right: auto;' title='9613 Walnutwood Way Louisville, Kentucky 40299 Deck' alt='9613 Walnutwood Way Louisville, Kentucky 40299 Deck' src='https://assets.site-static.com/userfiles/182/image/9613_Walnutwood_Way_Louisville_Kentucky_40299_Deck.jpg' height='384' width='512' />The home features 3 bedrooms with plenty of closet space. The sellers have opened a wall between two of the bedrooms to create one very large bedroom and will leave it as-is OR put the wall back to separate the rooms completely - depending on the buyer's preference.
<img style='display: block; margin-left: auto; margin-right: auto;' title='9613 Walnutwood Way Louisville, Kentucky 40299 Master Bedroom' alt='9613 Walnutwood Way Louisville, Kentucky 40299 Master Bedroom' src='https://assets.site-static.com/userfiles/182/image/9613_Walnutwood_Way_Louisville_Kentucky_40299_Master_Bedroom.jpg' height='301' width='502' />
The bathroom has been updated with a new vanity and mirror set that has a granite top. New lighting throughout the home provides an updated feel and the new paint and flooring make this a move-in ready home!
A new roof was installed in 2009, all new energy-efficient windows have just been installed in 2012 and come with a lifetime warranty that will be passed along to the lucky new owner! Both front and rear decks have been recently stained and are ready for your next pool party. The backyard has a large grassy area and is fully fenced, plus there is a storage shed for all your lawn and garden needs. There is also an outdoor storage room, just off the driveway, which was added in 2011. New professional landscaping in the front and back yard is just another reason to call 9613 Walnutwood Way your next home!
To continue your search, please visit <a title='Louisville Homes for Sale' href='https://www.joehaydenrealtor.com/'>Louisville Homes for Sale</a>.<br />2012-03-11T18:13:00-07:002012-03-11T18:41:27-07:00Joe Haydentag:joehaydenrealtor.com,2012-09-20:2202Is Buying a Foreclosure or Short Sale Home a Good Deal?As a real estate agent, especially in this market, I am frequently asked about <a title='Foreclosure Homes Louisville' href='https://www.joehaydenrealtor.com/home-buyers/foreclosures-louisville/'>Foreclosure </a>and <a title='Short Sale Homes Louisville' href='https://www.joehaydenrealtor.com/home-buyers/short-sales-louisville-ky/'>Short Sale Homes</a>. Buyers of real estate tend to believe that homes that are sold as a foreclosure or a short sale are potentially good deals, and I want to discuss the pros and cons of such homes in detail in this blog post.
<img style='display: block; margin-left: auto; margin-right: auto;' title='Louisville Short Sale Home' alt='Louisville Short Sale Home' src='https://assets.site-static.com/userfiles/182/image/Short_Sale_Home.jpg' height='185' width='272' /><br />
How Do You Define a 'Good Deal' in Real Estate?
One of the biggest challenges that anyone faces when buying a home, whether it is a foreclosure, a short sale, or any other type of transaction, is determining if the purchase holds promise to be a good deal. How do you define a 'good deal' in real estate? For some people, it is receiving a certain amount of money off of the listing price of the home during negotiations. For others, it is picking out a price for a home that meets their comfort level and if they reach that price, or better, in negotiations, then they consider themselves to have received a good deal. If we continued these examples we would find that there are dozens and dozens of scenarios that present themselves when buying a home that can leave the home buyer thinking that they have received a good deal.
Keep in mind the key words here - these few examples show a positive outcome because the buyer *thinks* that they have received a good deal, not because they objectively know that they have received a good deal. You would be shocked at how many people make important decisions in this manner and stop negotiating too soon, or buy the wrong home altogether because they think and feel that they have received a good deal. It is important to use objective research and analysis when buying real estate because what you think to be a good deal can turn out to be a terrible financial mistake once it is analyzed correctly.
<img style='display: block; margin-left: auto; margin-right: auto;' title='Louisville Foreclosure Homes' alt='Louisville Foreclosure Homes' src='https://assets.site-static.com/userfiles/182/image/Foreclosure_Home_for_Sale.jpg' height='183' width='275' /><br />
Taking a broader look at what makes a home a good deal, we have to consider the fact that you can actually buy a home at what appears to be a significant discount and the market can still decline wiping out any advantage that you negotiated. In other words, determining if you have made a good deal on a home takes time because you have to observe how the market behaves during the time period you own the home. In addition, you have to maintain and sometimes update or improve your home during your ownership if you wish to have a good deal. Most-importantly, you will never know for certain if you have made a good deal until you actually sell your home. It is only then that you can account for any gains you made on your purchase because you will have an actual number to compare to your purchase price, holding costs, and any improvements that you made to the home to determine the quality of your deal.
Are Foreclosure Homes and Short Sale Homes a Good Deal?
This brings us to foreclosure and short sale homes. Why is there a public perception that buying a foreclosure home or a short sale home is a good deal, and is that perception correct?
And the answer is - It depends... Without a doubt, it will be impossible to say definitively with any type of home purchase that you have received a 'good deal' in a market with as much latent volatility as ours currently possesses. While the downward pressure on pricing has eased over the last year, there still remains the possibility that we will see further price corrections over the next several years. By all objective measures, you could purchase a home for a price considered below market, only to have the market decline around you and wipe out any gain or advantage that you enjoyed. Of course, the opposite is true and the market could soar, increasing your gains dramatically and making you look like a real estate genius.
The real issue with buying short sale and foreclosure homes is risk. With each type of residential real estate purchase that you make, there will always be risk factors involved that temper or reduce the value of the investment. Adding in the short sale and/or foreclosure factor into the equation just increases that risk. To make sure that you get the best possible deal when buying a home, you must accurately estimate and weigh risk, and when buying a foreclosure home or a short sale home you must further increase the risk factor.
Here are several additional risk factors that you take on when buying a foreclosure or a short sale home.
Repair Costs - Typically, in a normal real estate transaction you can negotiate for necessary repairs at some point during the transaction. This is beneficial to you because if you missed something damaged or not working during your initial due diligence in the home, you can negotiate relief either through repairs or other concessions to protect your investment. With a short sale or foreclosure, it is likely that the home will be sold as-is and therefore you take it with all faults. If you failed to accurately assess the costs of updates and repairs, you can end up spending money that you did not anticipate and therefore reducing any gain or value you earned during negotiations.<br />
Time Delays - While many homes that are listed for sale that are foreclosures can close in a reasonable amount of time, homes that are a short sale can take many months to just come to terms on the property, let alone close on the home. During these extended delays interest rates can fluctuate possibly costing you more money to purchase and pay for the home. In addition, if the home is vacant during this time period, it is possible that the condition will continue to deteriorate or the home will be vandalized which again can potentially cost you additional money should you continue forward with the purchase.
No Seller's Disclosures - Depending on the type of home sale and the laws in your area, you may not have access to seller's disclosures when buying a short sale or a foreclosure home and that can hamper your ability to fully perform due diligence on the home. Seller's disclosures protect both the buyer and the seller in a transaction and without them, you will not have access to first-hand knowledge of the home's condition.
These additional risk factors are just a few of the reasons why you must be very careful when buying a short sale or a foreclosure home. It is possible with accurate and objective due diligence, and with strong negotiations, that you can secure a reasonable or good deal on a short sale or a foreclosure home. It is also possible that these and other risk factors can reduce or completely erase any advantage that you negotiated during the purchase process of the home. Some factors you will never be able to control, like the general real estate market, and some you can definitely control, ultimately by not making an offer to purchase or rejecting/counteroffering the seller's offer until you secure an objectively 'good deal'.
Hopefully, this post will give you a few things to think about when considering purchasing a short sale or a foreclosure home. It may be impossible to say for certain that you received a good deal when you purchase a foreclosure or a short sale home until you go to sell the home, but knowing the risks and the importance of objective, intelligent due diligence can help to put you in the best posibble position to gain from your purchase.
To learn more about buying foreclosure or short sale homes, please visit <a title='Louisville Real Estate' href='https://www.joehaydenrealtor.com'>Louisville Real Estate</a>.<br />2011-12-27T14:50:00-07:002012-01-11T07:25:46-07:00Joe Haydentag:joehaydenrealtor.com,2012-09-20:1309Negotiating 101 - The Sacred CowsThis is the first installment in a new series that I am going to write over the course of the next several weeks. The first few parts are not necessarily in order as they are providing component information to the entire Art of Negotiation. And in fact, since I just mentioned it - keep in mind throughout this series that there is an Art and a Science to negotiating for a home and you have to master both aspects to be successful. We will discuss the Art and Science of negotiating for a home throughout this series.
To commence this series, I want to recognize and then begin to kill off several Sacred Cows of negotiating for a home that can lead to big trouble for a home buyer. All of these Sacred Cows are initiated from the perspective of a potential home buyer and are in no particular order.
1. 'The average price reduction in the area is 5%, so I should get at least 5% off of the asking price.' - As with most price reduction arguments put forward by a potential home buyer, this Sacred Cow assumes that the home's listing price is essentially 5% over the correct market price. What happens if the asking price is 10% over the market? You run a great risk of over-paying for the home if you believe this Sacred Cow. What if the home is perfectly priced on the market and it is a competitive listing? This Sacred Cow can cause you to offer too low and potentially lose the home to a more savvy buyer.
Solution - Always objectively analyze the local market conditions affecting home pricing, the actual home's condition, appeal, and location, plus give consideration to your likely future buyer and their likely opinion of the home for a future sale.
2. 'Most homes in the area are selling for $25,000 less than asking price, so I want $25,000 off of the asking price.' - This is the exact same Sacred Cow as above only expressed in dollars as opposed to a percentage of price. It does not matter if it is a percentage reduction or a dollar figure reduction, you can make the same mistake of greatly over-paying the market or under-bidding for a competitive home. All a seller has to do to defeat a buyer that thinks like this is to raise their price by a figure close to the average area sales price and hope that the buyer does not do their homework. To make the point more clearly, taking $25,000 off of a listing that is $50,000 over-priced could be a devastating mistake for a home buyer.
Solution - It's the same as above - always objectively analyze the local market conditions affecting home pricing, the actual home's condition, appeal, and location, plus give consideration to your likely future buyer and their likely opinion of the home for a future sale.
3. 'My friends say that I should make a really low offer and see what happens. What can I lose?' - Well, you can lose time and money, plus you risk losing a great home by following this Sacred Cow. We are in a highly-distressed market right now and if you are like most home buyers that I know you are struggling to find a suitable home. Have you considered why this is so in this 'buyer's market'? It is because most home sellers with the best homes who do not have to sell are holding their homes through the downturn. It makes it much tougher to find a great home and if you fail to reasonably negotiate for and acquire the best possible home for you, you can lose the time spent searching for that home, the time it takes to find another suitable home, plus you can lose money if the home you fail to acquire is one that will hold its value or increase in value as the market slowly recovers. This is not a market that will fix mistakes buy a negligent home buyer.
Solution - Exactly the same as before - do your homework with the facts and think about the future. Keep in mind that I am not telling you to not negotiate for a home and keep in mind that home sellers frequently over-value their home and it requires aggressive negotiations to get to the correct price. I am telling you to not take a random stab in the dark about pricing as it can cost you big-time in the future. Do your due diligence!
I could go on and on with describing Sacred Cows and then offering you solutions, but you would find that I am going to be offering essentially the same solution to every Sacred Cow. You absolutely must not put bounds on yourself based upon what you hear in the media, what you hear from friends and family, what your agent tells you, or by what you believed to be true in the past.
If you are going to buy a home in this market, you have no choice but to perform your due diligence, objectively analyze the specific homes that interest you, research the actual home's appeal, condition, and location, and you must give consideration to how the home may appear to a future buyer when it comes time for you to sell.
Stay tuned for the next article in our series on Negotiating. I will continue to outline the information you need to know as we break down the Art and Science of negotiating to turn you into a <a title='Louisville Real Estate Expert' href='https://www.joehaydenrealtor.com'>Louisville Real Estate Expert</a>!2011-07-05T18:58:00-07:002011-07-05T19:13:24-07:00Joe Haydentag:joehaydenrealtor.com,2012-09-20:54What is the Legal Description of Land?The legal description of land, or a parcel of land, is the exact location of the parcel of land according to an established system. The description is legally sufficient if a competent surveyor can locate the parcel of land using that description. If someone is interested in conveying property to another person, there needs to be a detailed way of describing the boundaries of the property. A typical street address is not legally sufficient as it does not describe the boundaries of the property, only the general location.
<img src='https://assets.site-static.com/userfiles/182/image/Louisville_Kentucky_Land.jpg' alt='Louisville, Kentucky Land' title='Louisville, Kentucky Land' style='display: block; margin-left: auto; margin-right: auto;' height='174' width='290' /><br />
There are three systems currently used to legally describe property. The first is the “<a href='http://en.wikipedia.org/wiki/Metes_and_bounds' title='Metes and Bounds Survey'>Metes and Bounds</a>” system. This system uses permanent landmarks with “Metes” (distance and direction) and “Bounds” (a boundary object - a tree, a road, a creek, etc.). The surveyor would have a particular “Point of Beginning”. Then the surveyor would use measured distances and compass directions (metes) to describe the boundaries of the property, proceeding in a uniform direction around the property and ending back at the “Point of Beginning”.
<img src='https://assets.site-static.com/userfiles/182/image/Land_Survey.jpg' alt='Land Survey Louisville' title='Land Survey Louisville' style='display: block; margin-left: auto; margin-right: auto;' height='200' width='179' /><br />
The next system is the “Rectangular Survey System”. This system uses Meridian (North and South lines) and Base (East and West lines) lines to create a grid. The grid is broken down into 6 mile by 6 mile blocks called “Townships”. These townships are further divided into 1 by 1 mile blocks called sections. A parcel of land is described by using township names and section numbers, then specific portions of each section. For example “the North West ¼ of the 14th section of Newtown Township”.
<img src='https://assets.site-static.com/userfiles/182/image/Land_Louisville.jpg' alt='Land Louisville' title='Land Louisville' style='display: block; margin-left: auto; margin-right: auto;' height='165' width='306' /><br />
The last system of legally describing land is the “Lot and Block” system. Almost all modern subdivisions use this system. A surveyor creates a “Plat Map” that shows the dimensions of each property. A plat map will also show any easements used by the utility companies and the governing municipality for the property.
If you are planning on purchasing a home, make sure you understand how your property boundaries are defined. The state of Kentucky uses the Metes and Bounds system as well as the Lot and Block system. These legal descriptions of land can usually be found where ever public records are kept, i.e. the county court house. To learn more about land in the area, please visit the link <a href='https://www.joehaydenrealtor.com' title='Land in Louisville, Kentucky'>Land in Louisville</a>.2009-07-10T09:10:00-07:002011-12-10T18:23:50-07:00Joe Haydentag:joehaydenrealtor.com,2012-09-20:47Use the $8,000 First Time Home Buyer Tax Credit as a Down Payment<a title="First Time Home Buyer Tax Credit" href="http://www.hud.gov/news/release.cfm?content=pr09-072.cfm" rel="nofollow">It's official</a>! <a title="$8,000 Tax Credit First Time Home Buyer" href="https://www.joehaydenrealtor.com/blog/8000-irs-first-time-home-buyers-tax-credit/">Qualified first time home buyers</a> can use the $8,000 tax credit as a down payment towards the purchase of their new home by following certain guidelines. This change in lending policy was announced last week by the HUD Secretary and is designed to further relieve the strained housing market.<br />
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Essentially, the HUD / FHA is now going to allow certain third-party vendors to lend you the money for the $8,000 tax credit as a second mortgage on the home that you will pay off once you receive the tax credit from the IRS. There are <a href="http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-15ml.doc" rel="nofollow" title="First Time Home Buyer Tax Credit Guidelines">restrictions and guidelines</a> that will need to be met to allow first time home buyers to receive this second mortgage, but if you qualify it could potentially be a very good deal.<br />
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To use the $8,000 First Time Home Buyer Tax Credit as a down payment on a home you should first review the <a href="https://www.joehaydenrealtor.com/blog/8000-irs-first-time-home-buyers-tax-credit/#faq" rel="nofollow" title="Frequently Asked Questions about the $8,000 First Time Home Buyer Tax Credit">FAQ</a> to make a preliminary determination if you are eligible. In addition, I recommend consulting a tax professional to ensure that you are indeed eligible before making any commitments to buying a home.<br />
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Once you feel that you may qualify, <a title="Contact Joe Hayden Realtor" href="https://www.joehaydenrealtor.com/contact/">contact me</a> for further information and I will make certain all of your questions are answered.<br />
<br />2009-06-03T10:36:00-07:002009-06-03T12:03:53-07:00Joe Haydentag:joehaydenrealtor.com,2012-09-20:33Take Advantage of Low Mortgage Interest RatesThe preceding three years have delivered a beneficial home buyer’s market to the Louisville, Kentucky area, and even better, mortgage interest rates remain very low. This is the time to buy a home in Louisville.
<img title='Louisville Mortgage' alt='Louisville Mortgage' style='display: block; margin-left: auto; margin-right: auto;' src='https://assets.site-static.com/userfiles/182/image/Louisville_Mortgage.jpg' height='193' width='261' /><br />
The first step in the process of buying a home is to get your finances in order and analyzed by a mortgage lender. <a href='https://www.joehaydenrealtor.com/contact/' title='Contact Joe Hayden, Realtor Louisville, KY'>Contact me</a> and I will provide you with the names of mortgage lenders with whom my clients have had positive transactions. You need to ensure you <a href='https://www.joehaydenrealtor.com/home-buyers/expert-buyer-articles/#credit' title='Credit Report and Credit Scores'>credit report</a> is sound and your credit scores are adequate. If you have any issues with your finances, you need to begin to take action now to resolve the situation as this market may turn at any time.
The next step when buying a home is to get in touch with me to discuss the market, to develop a home buying strategy, and to begin to <a href='https://www.joehaydenrealtor.com/louisville-mls/search-form/' title='Louisville, KY MLS'>search the Louisville MLS</a> for a new home in Louisville. I can save you a significant amount of time just through a simple interview process that will help me guide you effectively in your new home purchase. In addition, I will be able to help you save money and avoid costly mistakes.
To learn more about the process of <a href='https://www.joehaydenrealtor.com'>buying a home in Louisville, Kentucky</a>, and to take advantage of the incredibly low mortgage interest rates, <a href='https://www.joehaydenrealtor.com/contact/' title='Contact Joe Hayden, Realtor'>contact me</a> today! It will be my pleasure to assist you…2009-04-07T14:01:00-07:002011-11-28T20:39:49-07:00Joe Hayden