Should sellers pay your closing costs? It's a popular trend to help buyers. We've been writing contracts with seller paid closing costs for years. We used to write the costs into a contract after the deal was negociated and signed. That cut down some objections but created others (see below)

1) We started to come across sellers who refused to change the sales prices after the contract was signed off on by both parties. We almost lost a deal over it. We even offer to eliminate commission on the increased difference.

2) Appraisals are tighter than ever and the extra closing costs can put the property price over the top. We had that happen with a condo and the deal fell almost fell apart. The buyer had to borrow money (after our client refused to meet half way and reduce sales price).

3) Most Mortgage brokers don't get it.. they tell buyers to ask for closing costs up front saying something like "Just have the seller pay closing costs". The mortgage industry ignores the fact that it effects a sellers bottom line (it makes the mortgage brokers job easier selling the loan) so the pressure of writing the contract with closing costs included up front is planted in a buyers mind. If we as realtors try to change that buyers mind (and roll in closing costs after the contract is agreed to by increasing sales price) after buyers have met with the mortgage broker we're met with resistance. The 1^st time buyer thinks they are now paying the closing costs (rolled into their mortgage). They don’t understand that if we roll in the closing costs at the start, the seller will just increase  their bottom line to compensate for the closing costs.  I know this concept may sound ridiculous but it’s true. It’s a question of semantics.. but it happens all the time.

Fellow Realtor "Frank" just wrote a post on writting in closing costs after the deal is done (what we used to do). to read his comments go here: http://blog.franklyrealty.com/2010/02/seller-closing-costs.html 

In 2009, Our Medley Sokoler Team will have sold more than 105 Louisville homes. One common question our buyers have is about crime. “What’s the crime rate like in _____”. It’s almost impossible for us to say since we don’t follow all crime statistics for given areas. However, we have a simple and easy solution. Our website We Sell Louisville has a list of links to Crime Statistics for the area. Louisville Real Estate can be a great place to invest but we understand our clients want to make sure it is safe!

 

http://www.cityrating.com/citycrime.asp?city=Louisville+Metro&state=KY

 

http://spotcrime.com/ky/louisville

 

http://www.metromapper.org/map-louisville-crime.php

 

http://www.neighborhoodscout.com/ky/louisville/crime/

New Louisville home sales numbers for November shocked everyone!. After all closings were recorded, Louisville home sales jumped by a whopping 50.28 Percent in November when compared to a November 2008 (see table below)! We can thank the $ 8000 first time home buyers tax credit for the massive increase. Looking at a breakdown of the sales, many were in the $100,000 to $200,000 price range, the target of first time buyers. Sellers of those homes moved up as homes in the $200,000 to $300,000 price point also did well.
Because of tighter mortgage requirements, slower appraisals, cold weather and the holidays home sales for December could be worse than expected. Unless we see more buyers come into the market during December and January, Home sale figures for the beginning of 2010 could fall far short of hopes and expectations.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Comp 2009 S: 552 639 832 910 1032 1284 1307 1144 1192 1201 1052 207 Ref 2008 S: 752 899 1033 1067 1232 1230 1248 1162 1108 976 698 790 % Change S: -26.59% -28.92% -19.45% -14.71% -16.23% 4.39% 4.72% -1.54% 7.58% 23.05% 50.71% -73.79%
Dollar Volume of Sold Listings
2009 2008 Diff % Chg JAN $80,294,552 $121,129,042 $40,834,490 -33.71% FEB $96,683,552 $145,437,681 $48,754,129 -33.52% MAR $124,410,664 $164,811,721 $40,401,057 -24.51% APR $142,720,922 $180,098,232 $37,377,310 -20.75% MAY $159,279,648 $206,809,802 $47,530,154 -22.98% JUN $221,245,301 $227,028,927 $5,783,626 -2.54% JUL $223,970,935 $215,807,729 -$8,163,206 3.78% AUG $185,313,250 $206,793,171 $21,479,921 -10.38% SEP $180,775,632 $172,919,727 -$7,855,905 4.54% OCT $195,028,397 $153,494,884 -$41,533,513 27.05% NOV $168,976,574 $111,626,951 -$57,349,623 51.37% DEC $33,794,007 $117,079,985 $83,285,978 -71.13%

Have you heard some of these so-called business experts on cable TV who say the $8000 first time home buyers tax credit has done nothing to help home sales or the economy? To them I simply ask what rock are you living under?

New Louisville Kentucky home sales figures for the month October tell a very positive story. The number of homes sold in October 2009 was up 21 % over same time in 2008. Homes going under contract in October 2009 were up 37 % over the year before.  Now you cable-TV business experts, please read the following sentence carefully, the majority of the homes that are selling are in the price range of first time buyers. Get it? No? Read the raw data below, the numbers tell the story.

For the rest of us tracking home sales, it’s pretty obvious that the $8000 tax rebate has helped home sales and the economy. Especially when you consider that many of the home buyers spend the tax credit money on fixing up the new house, buying new furniture and TV’s and more. Now the government is thinking about extending and possibly expanding the credit (see the latest info in the story below this one). That could go a long way to helping our economy over the slower winter home sales months. The numbers for October 2009 also show that the average selling price of homes in our area was up about ten thousand dollars from the year before. The bad news is that the time it takes to sell a home was up.

Still the overall trend is good and may continue if our lawmakers read the numbers and keep their TV’s tuned to anything other than those self proclaimed Cable TV business experts!

 

 

October 2009

 

 

October 2008

 

 

 

 

 

TOTALS REPORTS SOLD/ACTIVE RESIDENTIAL LISTINGS 01-Oct-2009 - 31-Oct-2009                      Residential Unit Sales        Total   Unit Sales                       0-2        3         4+      Resid     Condo/    Total  PRICE CLASS/TYPE    Bedrm     Bedrm     Bedrm     Sales     Co-Op     Units    $29,999 OR UNDER      27        17         6        50         2        52  $30,000 -  $39,999     8         9         5        22         2        24  $40,000 -  $49,999     7        15         2        24         0        24  $50,000 -  $59,999     1         8         1        10         4        14  $60,000 -  $69,999     8        14         3        25         4        29  $70,000 -  $79,999     5        18         4        27         4        31  $80,000 -  $89,999    14        37         5        56        11        67  $90,000 -  $99,999    11        46         5        62        12        74 $100,000 - $119,999    17       102        19       138        39       177 $120,000 - $139,999    10       102        23       135        19       154 $140,000 - $159,999     6        80        17       103        16       119 $160,000 - $179,999     8        54        28        90         9        99 $180,000 - $199,999     3        28        25        56         8        64 $200,000 - $249,999     2        57        46       105         4       109 $250,000 - $299,999     2        21        38        61         5        66 $300,000 - $399,999     1         7        45        53         8        61 $400,000 - $499,999     0         1        15        16         1        17 $500,000 OR OVER        0         3        23        26         3        29 Total Types:          130       619       310      1059       151      1210   Average Price:     $88,376  $137,523  $250,036  $164,425  $152,193  $162,899   Median Price:     $126,500  $126,500  $212,500  $135,500  $118,000  $133,250   Average DOM:        66.72     77.72     88.32     79.47     117.5     84.22   Average CDOM:        87.7    118.58    150.94    124.26    195.28    133.13

These days it can take as many as 45 days to from the time you find a home to the day you close on it. Up until recently a loan officer could get it closed within 30 days. But because of appraiser and underwriting problems the amount of time to close a loan has been extended. Were thrilled to report that Dan and Leigh Anne McNamara’s closing went as smooth as we’ve seen in months. In fact we listed and sold their home in 3 or 4 days and closed on their new home in less than 45 days. In this day and age that’s a good thing! The Medley Sokoler Team can help you as well! Head to www.weselllouisville.com for more info.

Facing Foreclosure? Steve and Deb were, until they called us. In today’s Louisville Real Estate market, trying to sell a home when you’re behind on the mortgage and owe more to the bank than the home is worth is... well... next to impossible. When the Medley Sokoler team steps in, we help you get out from under the house mortgage in the form of a Short Sale. We’re advanced CDPE’s who have a proven track record and are ready to help. For more information call Bob Sokoler (502) 376-5483 or head to www.weselllouisville.com . We can help you avoid a foreclosure it’s that simple. Just listen to Steve and Deb in the video above.

 

A new report by U.S. News and World report picked Louisville Kentucky as one of the “10 Cities primed for a Real Estate Recovery”!  There are a number of reasons Louisville made the top 10 list, but generally the article sites Louisville’s real estate market never seeing large appreciation. That meant less room for Louisville Real Estate prices to fall. The article points to the recent Ford Motor plant layoffs and cutback in manufacturing. But on a positive note the story in the magazine also points to the recent UPS expansion and attendance at job fairs has been on the decline. The Medley Sokoler team has been swamped during the past couple of days with 5 contracts accepted in 4 days. Remember that the $8000 first time home buyers tax credit will end at the end of November 2009. If you’re a first time buyer should be looking for a home now. To see homes, or to have us set you up on an MLS search immediately contact the Medley Sokoler Team call (502) 376-5483 or head to www.weselllouisville.com or www.louisvillehomestoday.com.

With help from Short Sales and Foreclosures Louisville area home sales in the month of July jumped through the roof. Of the 1276 home sales (21 percent of which were Short Sales and Foreclosures), Louisville saw a 21% increase in the number of homes sold from July 2008. Additionally homes going under contract in July 2009 compared to the year before were up 32%.                                                                                                                               

Breaking down the numbers, most home sales were in the 100,000- 160,000 and 200,000-250,000 price ranges. It’s obvious to many that the $8000 first time home buyers tax credit and lower interest rates played a major part in the homes sales increase. The people living in those entry levels homes typically purchased their next Louisville home in the 200,000-250,000 price range.

July 2009

 

 

 

July 2008

 

 

TOTALS REPORTS SOLD/ACTIVE RESIDENTIAL LISTINGS 01-Jul-2009 - 31-Jul-2009 Residential Unit Sales        Total   Unit Sales 0-2        3         4+      Resid     Condo/    Total PRICE CLASS/TYPE    Bedrm     Bedrm     Bedrm     Sales     Co-Op     Units   $29,999 OR UNDER      27        16        11        54         0        54 $30,000 -  $39,999     7        11         4        22         0        22 $40,000 -  $49,999     4        15         4        23         2        25 $50,000 -  $59,999     3        20         1        24         4        28 $60,000 -  $69,999     3        16         1        20         5        25 $70,000 -  $79,999    11        21         3        35         5        40 $80,000 -  $89,999     9        35         5        49         5        54 $90,000 -  $99,999     6        36         5        47        11        58 $100,000 - $119,999    28        74        14       116        27       143 $120,000 - $139,999    19        99        38       156        26       182 $140,000 - $159,999     7        84        25       116        16       132 $160,000 - $179,999     4        61        15        80        12        92 $180,000 - $199,999     5        52        21        78         4        82 $200,000 - $249,999     2        65        59       126        10       136 $250,000 - $299,999     0        23        46        69         4        73 $300,000 - $399,999     0        15        51        66         7        73 $400,000 - $499,999     0         4        23        27         3        30 $500,000 OR OVER        0         1        25        26         1        27 Total Types:          135       648       351      1134       142      1276   Average Price:     $88,784  $142,779  $265,027  $174,190  $152,654  $171,793